Document:

a101termloancreditagreem

Exhibit 10.1       TERM LOAN CREDIT AGREEMENT  among  ATKORE INC.,  as Parent,  ATKORE INTERNATIONAL, INC.,  as Borrower,  The Several Lenders from Time to Time Parties Hereto,  and  JPMORGAN CHASE BANK, N.A.,  as Administrative Agent and Collateral Agent  Dated as of May 26, 2021  FIFTH THIRD BANK, CREDIT SUISSE LOAN FUNDING LLC, ROYAL BANK OF CANADA AND  CITIGROUP GLOBAL MARKETS INC.,   as Co-Documentation Agents,  and  JPMORGAN CHASE BANK, N.A. and WELLS FARGO SECURITIES, LLC,  as Joint Lead Arrangers and Joint Bookrunners        

 

  i  Table of Contents  Page  SECTION 1    Definitions  1.1 Defined Terms ............................................................................................................................................... 1  1.2 Other Definitional and Interpretive Provisions ........................................................................................... 57  1.3 ABL/Term Loan Intercreditor Agreement .................................................................................................. 58  1.4 Divisions ..................................................................................................................................................... 59  1.5 Interest Rates; LIBOR Notification ............................................................................................................. 59  SECTION 2    Amount and Terms of Commitments  2.1 Initial Term Loans ....................................................................................................................................... 59  2.2 Notes ........................................................................................................................................................... 60  2.3 Procedure for Initial Term Loan Borrowing ................................................................................................ 60  2.4 [Reserved] ................................................................................................................................................... 60  2.5 Repayment of Loans. ................................................................................................................................... 61  2.6 [Reserved] ................................................................................................................................................... 61  2.7 [Reserved] ................................................................................................................................................... 61  2.8 Incremental Facilities .................................................................................................................................. 61  2.9 Permitted Debt Exchanges .......................................................................................................................... 64  2.10 Extension of Term Loans ............................................................................................................................ 65  2.11 Specified Refinancing Facilities .................................................................................................................. 67  SECTION 3    [Reserved]  SECTION 4    General Provisions Applicable to Loans  4.1 Interest Rates and Payment Dates ............................................................................................................... 69  4.2 Conversion and Continuation Options ........................................................................................................ 70  4.3 Minimum Amounts; Maximum Sets ........................................................................................................... 70  4.4 Optional and Mandatory Prepayments ........................................................................................................ 70  4.5 Administrative Agent’s Fee; Other Fees ..................................................................................................... 78  4.6 Computation of Interest and Fees ................................................................................................................ 79  4.7 Alternate Rate of Interest ............................................................................................................................ 79  

 

  ii  4.8 Pro Rata Treatment and Payments .............................................................................................................. 81  4.9 Illegality ...................................................................................................................................................... 82  4.10 Requirements of Law .................................................................................................................................. 82  4.11 Taxes ........................................................................................................................................................... 83  4.12 Indemnity .................................................................................................................................................... 87  4.13 Certain Rules Relating to the Payment of Additional Amounts .................................................................. 87  SECTION 5    Representations and Warranties  5.1 Financial Condition ..................................................................................................................................... 89  5.2 No Change; Solvent .................................................................................................................................... 89  5.3 Corporate Existence; Compliance with Law ............................................................................................... 89  5.4 Corporate Power; Authorization; Enforceable Obligations ......................................................................... 89  5.5 No Legal Bar ............................................................................................................................................... 90  5.6 No Material Litigation ................................................................................................................................. 90  5.7 No Default ................................................................................................................................................... 90  5.8 Ownership of Property; Liens ..................................................................................................................... 90  5.9 Intellectual Property .................................................................................................................................... 90  5.10 Taxes ........................................................................................................................................................... 90  5.11 Federal Regulations ..................................................................................................................................... 91  5.12 ERISA ......................................................................................................................................................... 91  5.13 Collateral ..................................................................................................................................................... 91  5.14 Investment Company Act; Other Regulations ............................................................................................. 92  5.15 Subsidiaries ................................................................................................................................................. 92  5.16 Purpose of Loans ......................................................................................................................................... 92  5.17 Environmental Matters ................................................................................................................................ 92  5.18 No Material Misstatements ......................................................................................................................... 93  5.19 Labor Matters .............................................................................................................................................. 93  5.20 Insurance ..................................................................................................................................................... 93  5.21 Anti-Corruption Laws and Sanctions .......................................................................................................... 93  5.22 Affected Financial Institutions .................................................................................................................... 93  SECTION 6  6.1 Conditions to Initial Extension of Credit on the Closing Date .................................................................... 94  6.2 Conditions to Each Extension of Credit ...................................................................................................... 95  SECTION 7    Affirmative Covenants  

 

  iii  7.1 Financial Statements ................................................................................................................................... 96  7.2 Certificates; Other Information ................................................................................................................... 97  7.3 Payment of Taxes ........................................................................................................................................ 98  7.4 Conduct of Business and Maintenance of Existence; Compliance with Contractual Obligations and  Requirements of Law .................................................................................................................................. 98  7.5 Maintenance of Property; Insurance ............................................................................................................ 98  7.6 Inspection of Property; Books and Records; Discussions ........................................................................... 99  7.7 Notices......................................................................................................................................................... 99  7.8 Environmental Laws ................................................................................................................................. 100  7.9 After-Acquired Real Property and Fixtures; Subsidiaries ......................................................................... 101  7.10 Use of Proceeds ......................................................................................................................................... 102  7.11 Commercially Reasonable Efforts to Maintain Ratings ............................................................................ 103  7.12 Accounting Changes ................................................................................................................................. 103  7.13 Post-Closing Requirements ....................................................................................................................... 103  SECTION 8    Negative Covenants  8.1 Limitation on Indebtedness ....................................................................................................................... 104  8.2 Limitation on Restricted Payments ........................................................................................................... 108  8.3 Limitation on Restrictive Agreements ....................................................................................................... 111  8.4 Limitation on Sales of Assets and Subsidiary Stock ................................................................................. 113  8.5 Limitations on Transactions with Affiliates .............................................................................................. 114  8.6 Limitation on Liens ................................................................................................................................... 115  8.7 Limitation on Fundamental Changes ......................................................................................................... 116  8.8 Change of Control; Limitation on Amendments ....................................................................................... 117  8.9 Limitation on Lines of Business ................................................................................................................ 117  8.10 Permitted Activities ................................................................................................................................... 117  SECTION 9    Events of Default  9.1 Events of Default ....................................................................................................................................... 118  9.2 Remedies Upon an Event of Default ......................................................................................................... 120  SECTION 10    The Agents and the Other Representatives  10.1 Appointment .............................................................................................................................................. 120  10.2 The Administrative Agent and Affiliates .................................................................................................. 121  

 

  iv  10.3 Action by an Agent ................................................................................................................................... 121  10.4 Exculpatory Provisions.............................................................................................................................. 121  10.5 Acknowledgement and Representations by Lenders ................................................................................. 122  10.6 Indemnity; Reimbursement by Lenders .................................................................................................... 123  10.7 Right to Request and Act on Instructions .................................................................................................. 123  10.8 Collateral Matters ...................................................................................................................................... 124  10.9 Successor Agent ........................................................................................................................................ 126  10.10 [Reserved] ................................................................................................................................................. 126  10.11 Withholding Tax ....................................................................................................................................... 126  10.12 Other Representatives................................................................................................................................ 127  10.13 Administrative Agent May File Proofs of Claim ...................................................................................... 127  10.14 Application of Proceeds ............................................................................................................................ 127  10.15 Credit Bidding ........................................................................................................................................... 128  10.16 Certain ERISA Matters ............................................................................................................................. 129  SECTION 11    Miscellaneous  11.1 Amendments and Waivers ......................................................................................................................... 130  11.2 Notices....................................................................................................................................................... 133  11.3 No Waiver; Cumulative Remedies ............................................................................................................ 135  11.4 Survival of Representations and Warranties ............................................................................................. 135  11.5 Payment of Expenses and Taxes ............................................................................................................... 135  11.6 Successors and Assigns; Participations and Assignments ......................................................................... 136  11.7 Adjustments; Set-off; Calculations; Computations ................................................................................... 141  11.8 Judgment ................................................................................................................................................... 141  11.9 Counterparts; Integration; Effectiveness; Electronic Execution ................................................................ 142  11.10 Severability ............................................................................................................................................... 143  11.11 Integration ................................................................................................................................................. 143  11.12 Governing Law .......................................................................................................................................... 143  11.13 Submission to Jurisdiction; Waivers ......................................................................................................... 143  11.14 Acknowledgements ................................................................................................................................... 144  11.15 Waiver of Jury Trial .................................................................................................................................. 144  11.16 Confidentiality ........................................................................................................................................... 144  11.17 Incremental Indebtedness; Additional Indebtedness ................................................................................. 145  11.18 USA PATRIOT Act Notice ....................................................................................................................... 145  11.19 Reinstatement ............................................................................................................................................ 145  11.20 Acknowledgement and Consent to Bail-In of Affected Financial Institutions .......................................... 145  

 

  v  11.21 Acknowledgement Regarding Any Supported QFCs ................................................................................ 146           

 

  vi      SCHEDULES  A -- Commitments and Addresses  1.1(e) -- Existing Liens  1.1(f) -- Existing Investments  5.4 -- Consents Required  5.6 -- Litigation  5.8 -- Real Property  5.9 -- Intellectual Property Claims  5.15 -- Subsidiaries  5.17 -- Environmental Matters  5.20 -- Insurance  7.2 -- Website Address for Electronic Financial Reporting  8.1 -- Existing Indebtedness  8.5 -- Affiliate Transactions    EXHIBITS  A -- Form of Term Loan Note  B-1 -- Form of Guarantee and Collateral Agreement  B-2   Form of Canadian Guarantee and Collateral Agreement  C -- Borrowing Request  D -- Form of U.S. Tax Compliance Certificate  E -- Form of Assignment and Acceptance  F -- Interest Election Request  G -- [Reserved]  H -- Form of Solvency Certificate  I-1 -- Form of Increase Supplement  I-2 -- Form of Lender Joinder Agreement  J-1 -- Form of ABL/Term Loan Intercreditor Agreement  J-2 -- [Reserved]  J-3 -- [Reserved]  K -- [Reserved]  L -- Secretary’s Certificate  M -- Officer’s Certificate  N -- Form of Acceptance and Prepayment Notice  O -- Form of Discount Range Prepayment Notice  P -- Form of Discount Range Prepayment Offer  Q -- Form of Solicited Discounted Prepayment Notice  R -- Form of Solicited Discounted Prepayment Offer  S -- Form of Specified Discount Prepayment Notice  T -- Form of Specified Discount Prepayment Response  U -- Form of Compliance Certificate  

 

    CREDIT AGREEMENT, dated as of May 26, 2021, among ATKORE INC., a Delaware corporation  (and as further defined in Subsection 1.1, “Parent”), ATKORE INTERNATIONAL, INC., a Delaware corporation  (and as further defined in Subsection 1.1, the “Borrower”), the several banks and other financial institutions from time  to time party hereto (as further defined in Subsection 1.1, the “Lenders”), and JPMORGAN CHASE BANK, N.A., as  administrative agent (in such capacity and as further defined in Subsection 1.1, the “Administrative Agent”) for the  Lenders hereunder and as collateral agent (in such capacity and as further defined in Subsection 1.1, the “Collateral  Agent”) for the Secured Parties (as defined below).  The parties hereto agree as follows:  SECTION 1    Definitions  1.1 Defined Terms.  As used in this Agreement, the following terms shall have the following  meanings:  “ABL Agent”: Wells Fargo Bank, National Association, in its capacity as administrative agent and  collateral agent under the ABL Facility Documents, or any successor administrative agent or collateral agent under  the ABL Facility Documents.  “ABL Facility Documents”: the “Loan Documents” as defined in the Senior ABL Facility  Agreement, as the same may be amended, supplemented, waived, otherwise modified, extended, renewed, refinanced  or replaced from time to time.  “ABL Facility Loans”:  the loans borrowed under the Senior ABL Facility.  “ABL Facility Obligations”:  the “Obligations” as defined in the Senior ABL Facility Agreement.   “ABL Priority Collateral”:  as defined in the ABL/Term Loan Intercreditor Agreement whether or  not the same remains in full force and effect.  “ABL/Term Loan Intercreditor Agreement”:  the Intercreditor Agreement, dated as of May 26,  2021, among the Collateral Agent, the ABL Agent (in its capacity as collateral agent under the ABL Facility  Documents) and certain other parties party thereto from time to time and acknowledged by certain of the Loan Parties  in the form attached hereto as Exhibit J-1, as the same may be amended, supplemented, waived or otherwise modified  from time to time in accordance with the terms hereof and thereof.  “ABR Loans”:  Loans to which the rate of interest applicable is based upon the Alternate Base Rate.   “Accelerated”:  as defined in Subsection 9.1(e).  “Acceleration”:  as defined in Subsection 9.1(e).  “Acceptable Discount”:  as defined in Subsection 4.4(l)(iv)(2).  “Acceptable Prepayment Amount”:  as defined in Subsection 4.4(l)(iv)(3).  “Acceptance and Prepayment Notice”:  a written notice from the Borrower setting forth the  Acceptable Discount pursuant to Subsection 4.4(l)(iv)(2) substantially in the form of Exhibit N.  “Acceptance Date”:  as defined in Subsection 4.4(l)(iv)(2).  “Acquired Indebtedness”:  Indebtedness of a Person (i) existing at the time such Person becomes a  Subsidiary or (ii) assumed in connection with the acquisition of assets from such Person, in each case other than  

 

  - 2 -  Indebtedness Incurred in connection with, or in contemplation of, such Person becoming a Subsidiary or such  acquisition of assets. Acquired Indebtedness shall be deemed to be Incurred on the date of the related acquisition of  assets from any Person or the date the acquired Person becomes a Subsidiary.  “Acquisition Indebtedness”:  Indebtedness of (A) any Group Member Incurred to finance or  refinance, or otherwise Incurred in connection with, any acquisition of any assets (including Capital Stock), business  or Person, or any merger, amalgamation or consolidation of any Person with or into any Group Member, or (B) any  Person that is acquired by or merged, amalgamated or consolidated with or into any Group Member (including  Indebtedness thereof Incurred in connection with any such acquisition, merger, amalgamation or consolidation).  “Additional Agent”:  as defined in the ABL/Term Loan Intercreditor Agreement, any Junior Lien  Intercreditor Agreement or any Other Intercreditor Agreement, as applicable.  “Additional Assets”:  (i) any property or assets that replace the property or assets that are the subject  of an Asset Disposition; (ii) any property or assets (other than Indebtedness and Capital Stock) used or to be used by  any Group Member or otherwise useful in a Related Business, and any capital expenditures in respect of any property  or assets already so used; (iii) the Capital Stock of a Person that is engaged in a Related Business and becomes a  Restricted Subsidiary as a result of the acquisition of such Capital Stock by the Borrower or another Restricted  Subsidiary; or (iv) Capital Stock of any Person that at such time is a Restricted Subsidiary acquired from a third party.  “Additional Incremental Lender”:  as defined in Subsection 2.8(b).  “Additional Indebtedness”:  as defined in the ABL/Term Loan Intercreditor Agreement, any Junior  Lien Intercreditor Agreement or any Other Intercreditor Agreement, as applicable.  “Additional Obligations”: senior or subordinated Indebtedness (which Indebtedness may be (x)  secured by a Lien ranking pari passu to the Lien securing the Loan Document Obligations, (y) secured by a Lien  ranking junior to the Lien securing the Loan Document Obligations or (z) unsecured), including customary bridge  financings, in each case issued or incurred by the Borrower, a Guarantor or an Escrow Subsidiary, the terms of which  Indebtedness (i) do not provide for a maturity date or weighted average life to maturity earlier than the Initial Term  Loan Maturity Date or shorter than the remaining weighted average life to maturity of the Initial Term Loans, as the  case may be (other than an earlier maturity date and/or shorter weighted average life to maturity (1) for customary  bridge financings, which, subject to customary conditions, would either be automatically converted into or required  to be exchanged for permanent financing which does not provide for an earlier maturity date or a shorter weighted  average life to maturity than the Initial Term Loan Maturity Date or the remaining weighted average life to maturity  of the Initial Term Loans, as applicable or (2) pursuant to an escrow or similar arrangement with respect to the proceeds  of such Additional Obligation), (ii) to the extent such Indebtedness is subordinated, provide for customary payment  subordination to the Loan Document Obligations under the Loan Documents as reasonably determined by the  Borrower in good faith, (iii) do not provide for any mandatory repayment or redemption from the Net Cash Proceeds  of Asset Dispositions (other than any Asset Disposition in respect of any assets, business or Person the acquisition of  which was financed, all or in part, with such Additional Obligations and the disposition of which was contemplated  by any definitive agreement in respect of such acquisition) or Recovery Events or from Excess Cash Flow, to the  extent the Net Cash Proceeds of such Asset Disposition or Recovery Event or such Excess Cash Flow are required to  be applied to repay the Initial Term Loans hereunder pursuant to Subsection 4.4(e), on more than a ratable basis with  the Initial Term Loans (after giving effect to any amendment in accordance with Subsection 11.1(d)(vi)) and (iv) such  Indebtedness contains mandatory prepayment and redemption terms, covenants and events of default that are either  (x) customary for similar Indebtedness in light of then-prevailing market conditions (it being understood and agreed  that such Indebtedness shall include financial maintenance covenants only to the extent any such financial maintenance  covenant is (1) applicable only to periods after the Maturity Date then in effect at the time of incurrence thereof or (2)  included in or added to the Loan Documents for the benefit of the Lenders) or (y) when taken as a whole (other than  interest rates, rate floors, fees and optional prepayment or redemption terms), not materially more favorable to the  lenders or investors providing such Additional Obligations, as the case may be, than those set forth in the Loan  Documents are with respect to the Lenders (other than covenants or other provisions applicable only to periods after  the Maturity Date then in effect at the time of incurrence thereof or that are included in or added to the Loan Documents  for the benefit of the Lenders), in the case of each of clauses (x) and (y), as conclusively determined by the Borrower  in good faith; provided that (a) other than with respect to proceeds of such Additional Obligations which are subject  

 

  - 3 -  to an escrow or similar arrangement and any related deposit of cash, Cash Equivalents or Temporary Cash Investments  to cover interest and premium in respect of such Additional Obligations, such Indebtedness shall not be secured by  any Lien on any asset of any Loan Party that does not also secure the Loan Document Obligations, or be guaranteed  by any Person other than the Guarantors (it being understood that the primary obligation of an Escrow Subsidiary  shall not constitute a guarantee by a Person other than a Guarantor), (b) if secured by Collateral, such Indebtedness  (and all related Obligations) shall be subject to the terms of the ABL/Term Loan Intercreditor Agreement or an Other  Intercreditor Agreement and (c) if secured by Term Loan Priority Collateral on a senior basis to the Liens on such  Collateral securing the Senior ABL Facility and on a junior basis to the Liens on such Collateral securing the Loan  Document Obligations, such Indebtedness (and all related Obligations) shall be subject to the terms of a Junior Lien  Intercreditor Agreement or an Other Intercreditor Agreement.  “Additional Obligations Documents”:  any document or instrument (including any guarantee,  security agreement or mortgage and which may include any or all of the Loan Documents) issued or executed and  delivered with respect to any Additional Obligations, Rollover Indebtedness, Letter of Credit Facilities or any  Indebtedness Incurred pursuant to Subsection 8.1(b)(xvii) by any Loan Party.  “Additional Specified Refinancing Lender”:  as defined in Subsection 2.11(b).  “Adjusted LIBO Rate”:  with respect to any Eurodollar Borrowing for any Interest Period, an interest  rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest  Period multiplied by (b) the Statutory Reserve Rate.   “Administrative Agent”:  JPMorgan Chase Bank, N.A. (or any of its designated branch offices or  affiliates), in its capacity as administrative agent for the Lenders hereunder and shall include any successor to the  Administrative Agent appointed pursuant to Subsection 10.9.  “Affected Financial Institution”:  (a) any EEA Financial Institution or (b) any UK Financial  Institution.  “Affected Loans”:  as defined in Subsection 4.9.  “Affiliate”:  as to any specified Person, any other Person, directly or indirectly, controlling or  controlled by or under direct or indirect common control with such specified Person. For the purposes of this  definition, “control” when used with respect to any Person means the power to direct the management and policies of  such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and  the terms “controlling” and “controlled” have meanings correlative to the foregoing.  “Affiliate Transaction”:  as defined in Subsection 8.5(a).  “Agents”:  the collective reference to the Administrative Agent and the Collateral Agent and  “Agent” shall mean any of them.  “Agreement”:  this Credit Agreement, as amended, supplemented, waived or otherwise modified  from time to time.   “Alternate Base Rate”:  for any day, a rate per annum equal to the greatest of (a) the Prime Rate in  effect on such day, (b) the NYFRB Rate in effect on such day plus 1⁄2 of 1% and (c) the Adjusted LIBO Rate for a one  month Interest Period on such day (or if such day is not a Business Day, the immediately preceding Business Day)  plus 1%; provided that for the purpose of this definition, the Adjusted LIBO Rate for any day shall be based on the  LIBO Screen Rate (or if the LIBO Screen Rate is not available for such one month Interest Period, the LIBO  Interpolated Rate) at approximately 11:00 a.m. London time on such day.  Any change in the Alternate Base Rate due  to a change in the Prime Rate, the NYFRB Rate or the Adjusted LIBO Rate shall be effective from and including the  effective date of such change in the Prime Rate, the NYFRB Rate or the Adjusted LIBO Rate, respectively.  If the  Alternate Base Rate is being used as an alternate rate of interest pursuant to Subsection 4.7 (for the avoidance of doubt,  only until the Benchmark Replacement has been determined pursuant to Subsection 4.7(b)), then the Alternate Base  

 

  - 4 -  Rate shall be the greater of clauses (a) and (b) above and shall be determined without reference to clause (c) above.   For the avoidance of doubt, if the Alternate Base Rate as determined pursuant to the foregoing would be less than  1.50%, such rate shall be deemed to be 1.50% for purposes of this Agreement.  “Amendment”:  as defined in Subsection 8.3(c).  “Ancillary Document”:  as defined in Subsection 11.9.  “Anti-Corruption Laws”:  all laws, rules, and regulations of any jurisdiction applicable to the  Borrower or any of its Subsidiaries from time to time concerning or relating to bribery or corruption.  “Applicable Discount”:  as defined in Subsection 4.4(l)(iii)(2).  “Applicable Margin”:  in respect of Initial Term Loans (i) with respect to ABR Loans, 1.00% per  annum, and (ii) with respect to Eurodollar Loans, 2.00% per annum.  “Applicable Reference Period”: as of any date of determination, the most recently ended Reference  Period for which financial statements with respect to each Fiscal Quarter included in such Reference Period have been  delivered pursuant to Section 7.1(a) or 7.1(b) (or, prior to the delivery of any such financial statements, the Reference  Period ended March 26, 2021).  “Approved Fund”:  as defined in Subsection 11.6(b)(ii).  “Asset Disposition”:  any sale, lease, transfer or other disposition of shares of Capital Stock of a  Restricted Subsidiary (other than directors’ qualifying shares, or (in the case of a Foreign Subsidiary) to the extent  required by applicable Requirement of Law), property or other assets (each referred to for the purposes of this  definition as a “disposition”) by any Group Member (including any disposition by means of a merger, consolidation,  amalgamation or similar transaction) other than (i) a disposition to a Group Member, (ii) a disposition in the ordinary  course of business, (iii) a disposition of Cash Equivalents, Investment Grade Securities or Temporary Cash  Investments, (iv) the sale or discount (with or without recourse, and on customary or commercially reasonable terms,  as determined by the Borrower in good faith) of accounts receivable or notes receivable arising in the ordinary course  of business, or the conversion or exchange of accounts receivable for notes receivable, (v) any Restricted Payment  Transaction, (vi) a disposition that is governed by Subsection 8.7, (vii) any Financing Disposition, (viii) any “fee in  lieu” or other disposition of assets to any Governmental Authority that continue in use by any Group Member, so long  as such Group Member may obtain title to such assets upon reasonable notice by paying a nominal fee, (ix) any  exchange of property pursuant to or intended to qualify under Section 1031 (or any successor section) of the Code, or  any exchange of equipment to be leased, rented or otherwise used in a Related Business, (x) any financing transaction  with respect to property built or acquired by any Group Member after the Closing Date, including any sale/leaseback  transaction or asset securitization, (xi) any disposition arising from foreclosure, condemnation, eminent domain, or  similar action with respect to any property or other assets, or exercise of termination rights under any lease, license,  concession or other agreement, or necessary or advisable (as determined by the Borrower in good faith) in order to  consummate any acquisition of any Person, business or assets, or pursuant to buy/sell arrangements under any joint  venture or similar agreement or arrangement or of non-core assets acquired in connection with any acquisition of any  Person, business or assets or any Investment, (xii) any disposition of Capital Stock, Indebtedness or other securities  of an Unrestricted Subsidiary, (xiii) a disposition of Capital Stock of a Restricted Subsidiary pursuant to an agreement  or other obligation with or to a Person (other than a Group Member) from whom such Restricted Subsidiary was  acquired, or from whom such Restricted Subsidiary acquired its business and assets (having been newly formed in  connection with such acquisition), entered into in connection with such acquisition, (xiv) a disposition of not more  than 5.0% of the outstanding Capital Stock of a Foreign Subsidiary that has been approved by the Board of Directors,  (xv) any disposition or series of related dispositions for aggregate consideration not to exceed the greater of  $30,000,000 and 2.00% of Consolidated Total Assets (as of the date on which a binding commitment for such  disposition was entered into), (xvi) the abandonment or other disposition of patents, trademarks or other intellectual  property that are, in the reasonable judgment of the Borrower, no longer economically practicable to maintain or useful  in the conduct of the business of the Borrower and its Subsidiaries taken as a whole, (xvii) any license, sublicense or  other grant of rights in or to any trademark, copyright, patent or other intellectual property, (xviii) any Exempt Sale  and Leaseback Transaction, (xix) the creation or granting of any Lien permitted under this Agreement or (xx) any  

 

  - 5 -  sale, transfer, conveyance or other disposition of receivables pursuant to an electronic payment service to facilitate  the processing of receivables in connection with cash management of the Group Members; provided that any  disposition by any Group Member of material Intellectual Property (excluding, for the avoidance of doubt, any non- exclusive license, sublicense or other grant of rights in or to any trademark, copyright, patent or other intellectual  property) to an Unrestricted Subsidiary shall be considered an “Asset Disposition”.  “Assignee”:  as defined in Subsection 11.6(b)(i).  “Assignment and Acceptance”:  an Assignment and Acceptance, substantially in the form of Exhibit  E hereto.  “Available Tenor”:  as of any date of determination and with respect to the then-current Benchmark,  as applicable, any tenor for such Benchmark or 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 clause (f) of Subsection 4.7.  “Bail-In Action”:  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”:  (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).  “Bank Products Agreement”:  any agreement pursuant to which a bank or other financial institution  agrees to provide (a) treasury services, (b) credit card, merchant card, purchasing card or stored value card services  (including the processing of payments and other administrative services with respect thereto), (c) cash management  services (including controlled disbursements, automated clearinghouse transactions, return items, netting, overdrafts,  depository, lockbox, stop payment, electronic funds transfer, information reporting, wire transfer and interstate  depository network services) and (d) other banking products or services as may be requested by any Group Member  (other than letters of credit and other than loans and advances except indebtedness arising from services described in  clauses (a) through (c) of this definition).  “Bank Products Obligations”:  of any Person means the obligations of such Person pursuant to any  Bank Products Agreement.  “Bankruptcy Code”: Title 11 of the United States Code (11 U.S.C. § 101 et seq.), as now and  hereafter in effect, or any successor statute.  “Bankruptcy Event”: with respect to any Person, such Person becomes the subject of a voluntary or  involuntary bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, custodian,  assignee for the benefit of creditors or similar Person charged with the reorganization or liquidation of its business  appointed for it, or, in the good faith determination of the Administrative Agent, has taken any action in furtherance  of, or indicating its consent to, approval of, or acquiescence in, any such proceeding or appointment or has had any  order for relief in such proceeding entered in respect thereof; provided that a Bankruptcy Event shall not result solely  by virtue of any ownership interest, or the acquisition of any ownership interest, in such Person by a Governmental  Authority or instrumentality thereof, unless such ownership interest results in or provides such Person with immunity  from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment  on its assets or permits such Person (or such Governmental Authority or instrumentality) to reject, repudiate, disavow  or disaffirm any contracts or agreements made by such Person.  

 

  - 6 -  “Bankruptcy Plan”: a reorganization or plan of liquidation pursuant to any Debtor Relief Laws.   “Bankruptcy Proceeding”:  any voluntary or involuntary bankruptcy, reorganization, insolvency or  liquidation proceeding.  “Benchmark”:  initially, the LIBO Rate; provided that if a Benchmark Transition Event, a Term  SOFR Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have  occurred with respect to the LIBO Rate or the then-current Benchmark, then “Benchmark” means the applicable  Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate  pursuant to clause (b) or clause (c) of Subsection 4.7.  “Benchmark Replacement”:  for any Available Tenor, the first alternative set forth in the order  below that can be determined by the Administrative Agent for the applicable Benchmark Replacement Date (in  consultation with the Borrower):  (1) the sum of: (a) Term SOFR and (b) the related Benchmark Replacement Adjustment;  (2) the sum of: (a) Daily Simple SOFR and (b) the related Benchmark Replacement  Adjustment;  (3) 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 (i) any selection or recommendation of a replacement benchmark rate or  the mechanism for determining such a rate by the Relevant Governmental Body or (ii) 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 in the United States and (b) the  related Benchmark Replacement Adjustment;  provided that, in the case of clause (1), such 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; provided further that, notwithstanding anything to the contrary in this Agreement or in any other Loan  Document, upon the occurrence of a Term SOFR Transition Event, and the delivery of a Term SOFR Notice,  on the  applicable Benchmark Replacement Date the “Benchmark Replacement” shall revert to and shall be deemed to be the  sum of (a) Term SOFR and (b) the related Benchmark Replacement Adjustment, as set forth in clause (1) of this  definition (subject to the first proviso above).  If the Benchmark Replacement as determined pursuant to clause (1), (2) or (3) above 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.  “Benchmark Replacement Adjustment”:  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:  (1) for purposes of clauses (1) and (2) of the definition of “Benchmark Replacement,” the first  alternative set forth in the order below that can be determined by the Administrative Agent (in consultation  with the Borrower):  (a) the spread adjustment, or method for calculating or determining such spread adjustment,  (which may be a positive or negative value or zero) as of the Reference Time such Benchmark Replacement  is first set for such Interest Period that has been selected or recommended by the Relevant Governmental  Body for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for  the applicable Corresponding Tenor;  

 

  - 7 -  (b) the spread adjustment (which may be a positive or negative value or zero) as of the  Reference Time such Benchmark Replacement is first set for such Interest Period that would apply to the  fallback rate for a derivative transaction referencing the ISDA Definitions to be effective upon an index  cessation event with respect to such Benchmark for the applicable Corresponding Tenor; and  (2) for purposes of clause (3) 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 for the  applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a spread  adjustment, or method for calculating or determining such spread adjustment, for the replacement of such  Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body  on the applicable Benchmark Replacement Date and/or (ii) 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 Benchmark with the applicable Unadjusted Benchmark Replacement  for dollar-denominated syndicated credit facilities at such time;  provided that, in the case of clause (1) above, such adjustment is displayed on a screen or other information service  that publishes such Benchmark Replacement Adjustment from time to time as selected by the Administrative Agent  in its reasonable discretion.  “Benchmark Replacement Conforming Changes”:  with respect to any Benchmark Replacement,  any technical, administrative or operational changes (including changes to the definition of “Alternate 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 (in consultation with the Borrower) decides in its reasonable discretion 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”:  with respect to any Benchmark, the earliest to occur of the  following events with respect to such then-current Benchmark:  (1) in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later  of (a) the date of the public statement or publication of information referenced therein and (b) the 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);  (2) in the case of clause (3) of the definition of “Benchmark Transition Event,” the date of the  public statement or publication of information referenced therein;  (3) in the case of a Term SOFR Transition Event, the date that is thirty (30) days after the date  a Term SOFR Notice is provided to the Lenders and the Borrower pursuant to Subsection 4.7(c); or  (4) in the case of an Early Opt-in Election, the sixth (6th) Business Day after the date notice  of such Early Opt-in Election 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 is provided to the Lenders, written notice of objection to such Early Opt-in Election  from Lenders comprising the Required Lenders.  

 

  - 8 -  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 (1) or (2) 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”:  with respect to any Benchmark, the occurrence of one or more of  the following events with respect to the then-current Benchmark:  (1) 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);  (2) 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 Federal  Reserve Board, the NYFRB, 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  (3) 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) 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”:  the period (if any) (x) beginning at the time that a Benchmark  Replacement Date pursuant to clauses (1) or (2) 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 Subsection 4.7 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 Subsection 4.7.  “Benefit Plans”: any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title  I of ERISA, (b) a “plan” as defined in and subject to Section 4975 of the Code or (c) any Person whose assets include  (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the  assets of any such “employee benefit plan” or “plan”.  “Benefited Lender”:  as defined in Subsection 11.7(a).   “BHC Act Affiliate”:  an “affiliate’ (as such term is defined under, and interpreted in accordance  with, 12 U.S.C. 1841(k)) of such party.  “Board”:  the Board of Governors of the Federal Reserve System.  

 

  - 9 -  “Board of Directors”:  for any Person, the board of directors or other governing body of such Person  or, if such Person does not have such a board of directors or other governing body and is owned or managed by a  single entity, the board of directors or other governing body of such entity, or, in either case, any committee thereof  duly authorized to act on behalf of such board of directors or other governing body. Unless otherwise provided, “Board  of Directors” means the Board of Directors of the Borrower.  “Borrower”:  Atkore International, Inc., a Delaware corporation, and any successor in interest  thereto.  “Borrower Offer of Specified Discount Prepayment”:  the offer by the Borrower to make a voluntary  prepayment of Term Loans at a specified discount to par pursuant to Subsection 4.4(l)(ii).  “Borrower Solicitation of Discount Range Prepayment Offers”:  the solicitation by the Borrower of  offers for, and the corresponding acceptance, if any, by a Lender of a voluntary prepayment of Term Loans at a  specified range at a discount to par pursuant to Subsection 4.4(l)(iii).  “Borrower Solicitation of Discounted Prepayment Offers”:  the solicitation by the Borrower of  offers for, and the subsequent acceptance, if any, by a Lender of a voluntary prepayment of Term Loans at a discount  to par pursuant to Subsection 4.4(l)(iv).  “Borrowing”:  the borrowing of one Type of Loan of a single Tranche from all the Lenders having  Initial Term Loan Commitments or other commitments of the respective Tranche on a given date (or resulting from a  conversion or conversions on such date) having, in the case of Eurodollar Loans, the same Interest Period.  “Borrowing Date”:  any Business Day specified in a notice delivered pursuant to Subsection 2.3 as  a date on which the Borrower requests the Lenders to make Loans hereunder.  “Borrowing Request”: a request by the Borrower for a borrowing of Loans in accordance with  Section 2.2, which shall be substantially in the form of Exhibit C or any other form approved by the Administrative  Agent.   “Business Day”:  a day other than a Saturday, Sunday or other day on which commercial banks in  New York, New York are authorized or required by law to close, except that, when used in connection with a  Eurodollar Loan, “Business Day” shall mean any Business Day on which dealings in Dollars between banks may be  carried on in London, England and New York, New York.  “Canadian Defined Benefit Plan”: each Canadian Pension Plan which contains a “defined benefit  provision” as defined in subsection 147.1(1) of the Income Tax Act (Canada).  “Canadian Pension Event”: the occurrence of any of the following: (i) a Restricted Subsidiary  initiates any action or filing to voluntarily terminate or wind-up (in whole or in part) a Canadian Defined Benefit Plan;  (ii) the institution of proceedings by a Governmental Authority to terminate or wind-up (in whole or in part) any  Canadian Defined Benefit Plan; (iii) the wind-up or termination (in whole or in part) of a Canadian Defined Benefit  Plan; (iv) the appointment by any Governmental Authority of a replacement administrator or trustee to wind-up or  terminate (in whole or in part) a Canadian Defined Benefit Plan; (v) the withdrawal of any Restricted Subsidiary from  any “multi-employer pension plan” as defined in the Pension Benefits Act (Ontario), or any similar plan subject to  any other applicable federal or provincial pension standards legislation in Canada, where any additional contributions  from the Restricted Subsidiary are triggered by such withdrawal, or (vii) any statutory deemed trust or Lien arises in  connection with a Canadian Pension Plan.  “Canadian Pension Plan”: each Foreign Pension Plan that is a “registered pension plan” as defined  in subsection 248(1) of the Income Tax Act (Canada) and/or is subject to any applicable federal or provincial pension  standards legislation in Canada, but does not include the Canada Pension Plan or the Quebec Pension Plan as  maintained by the Government of Canada or the Province of Quebec, respectively.  

 

  - 10 -  “Canadian Guarantee and Collateral Agreement”: the Canadian Guarantee and Collateral  Agreement delivered to the Collateral Agent as of the Closing Date, substantially in the form of Exhibit B-2 hereto,  as the same may be amended, supplemented, waived or otherwise modified from time to time.  “Capital Expenditures”:  for any period, the aggregate of all expenditures (whether paid in cash or  accrued as liabilities and including in all events all amounts expended or capitalized under leases evidencing  Capitalized Lease Obligations) by the Group Members during such period that, in conformity with GAAP, are or are  required to be included as capital expenditures on a consolidated statement of cash flows of Parent.  “Capital Stock”:  as to any Person, any and all shares or units of, rights to purchase, warrants or  options for, or other equivalents of or interests in (however designated) equity of such Person, including any Preferred  Stock, but excluding any debt securities convertible into such equity.  “Capitalized Lease Obligation”:  an obligation that is required to be classified and accounted for as  a capitalized or financing lease (and, for the avoidance of doubt, not an operating lease) for financial reporting  purposes in accordance with GAAP. The Stated Maturity of any Capitalized Lease Obligation shall be the date of the  last payment of rent or any other amount due under the related lease.  “Captive Insurance Subsidiary”:  any Subsidiary of the Borrower that is subject to regulation as an  insurance company (or any Subsidiary thereof).  “Cash Capped Incremental Amount”:  as of any date, an amount equal to (a) the greater of (i)  $500,000,000 and (ii) 100% of Consolidated EBITDA calculated on a pro forma basis for the Applicable Reference  Period less (b) (i) the aggregate principal amount of Incremental Loans established in reliance on the Cash Capped  Incremental Amount and (ii) Indebtedness Incurred in reliance on the Cash Capped Incremental Amount pursuant to  Subsection 8.1(b)(x) or Subsection 8.1(b)(xvi).  “Cash Equivalents”:  any of the following:  (a) money, (b) securities issued or fully guaranteed or  insured by the United States of America, Canada, the United Kingdom or a member state of the European Union or  any agency or instrumentality of any thereof, (c) time deposits, certificates of deposit or bankers’ acceptances of (i)  any bank or other institutional lender under this Agreement, the Senior ABL Facility or any affiliate thereof or (ii) any  commercial bank having capital and surplus in excess of $500,000,000 (or the foreign currency equivalent thereof as  of the date of such investment) and the commercial paper of the holding company of which is rated at least A-2 or the  equivalent thereof by S&P or at least P-2 or the equivalent thereof by Moody’s (or, if at such time neither is issuing  ratings, a comparable rating of another nationally recognized rating agency), (d) repurchase obligations with a term  of not more than seven days for underlying securities of the types described in clauses (b) and (c) above entered into  with any financial institution meeting the qualifications specified in clause (c)(i) or (c)(ii) above, (e) money market  instruments, commercial paper or other short-term obligations rated at least A-2 or the equivalent thereof by S&P or  at least P-2 or the equivalent thereof by Moody’s (or, if at such time neither is issuing ratings, a comparable rating of  another nationally recognized rating agency), (f) investments in money market funds subject to the risk limiting  conditions of Rule 2a-7 or any successor rule of the SEC under the Investment Company Act of 1940, as amended,  (g) investments similar to any of the foregoing denominated in foreign currencies approved by the Board of Directors,  and (h) solely with respect to any Captive Insurance Subsidiary, any investment that any such Person is permitted to  make in accordance with applicable law.  “Change in Law”:  as defined in Subsection 4.11(a).  “Change of Control”:  (i) any “person” or “group” (as such terms are used in Sections 13(d) and  14(d) of the Exchange Act) shall be the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under the  Exchange Act) of (A) more than 35.0% of the total voting power of all outstanding shares of Parent; (ii) Parent shall  cease to own, directly or indirectly, 100.0% of the Capital Stock of the Borrower (or any Successor Borrower); or (iii)  a “Change of Control” as defined in the Senior ABL Facility. Notwithstanding anything to the contrary in the  foregoing, the Transactions shall not constitute or give rise to a Change of Control.  “Change of Control Offer”:  as defined in Subsection 8.8(a).  

 

  - 11 -  “Closing Date”:  May 26, 2021.  “Code”:  the Internal Revenue Code of 1986, as amended from time to time.  “Collateral”:  all assets of the Loan Parties, now owned or hereafter acquired, upon which a Lien is  purported to be created by any Security Document.  “Collateral Agent”:  as defined in the Preamble hereto and shall include any successor to the  Collateral Agent appointed pursuant to Subsection 10.9.  “Collateral Representative”:  (i) if the ABL/Term Loan Intercreditor Agreement is then in effect,  the ABL Agent, (ii) if the Junior Lien Intercreditor Agreement is then in effect, the Senior Priority Representative (as  defined therein) and (iii) if any Other Intercreditor Agreement is then in effect, the Person acting as representative for  the Collateral Agent and the Secured Parties thereunder for the applicable purpose contemplated by this Agreement  and the Guarantee and Collateral Agreement.  “Collection Amounts”:  as defined in Section 10.14.  “Commitment”:  as to any Lender, such Lender’s Initial Term Loan Commitments and Incremental  Commitments, as the context requires.  “Commodities Agreement”:  in respect of a Person, any commodity futures contract, forward  contract, option or similar agreement or arrangement (including derivative agreements or arrangements), as to which  such Person is a party or beneficiary.  “Commonly Controlled Entity”:  an entity, whether or not incorporated, which is under common  control with the Borrower within the meaning of Section 4001 of ERISA or is part of a group which includes the  Borrower and which is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of  Section 302 of ERISA and Section 412 of the Code, is treated as a single employer with the Borrower under Sections  414(m) and (o) of the Code.  “Compliance Certificate”:  as defined in Subsection 7.2(a).  “Conduit Lender”:  any special purpose corporation organized and administered by any Lender for  the purpose of making Loans otherwise required to be made by such Lender and designated by such Lender in a  written instrument delivered to the Administrative Agent (a copy of which shall be provided by the Administrative  Agent to the Borrower on request); provided that the designation by any Lender of a Conduit Lender shall not relieve  the designating Lender of any of its obligations under this Agreement, including its obligation to fund a Loan if, for  any reason, its Conduit Lender fails to fund any such Loan, and the designating Lender (and not the Conduit Lender)  shall have the sole right and responsibility to deliver all consents and waivers required or requested under this  Agreement with respect to its Conduit Lender, and provided, further, that no Conduit Lender shall (a) be entitled to  receive any greater amount pursuant to any provision of this Agreement, including Subsection 4.10, 4.11, 4.12 or 11.5,  than the designating Lender would have been entitled to receive in respect of the extensions of credit made by such  Conduit Lender if such designating Lender had not designated such Conduit Lender hereunder, (b) be deemed to have  any Commitment or (c) be designated if such designation would otherwise increase the costs of any Facility to the  Borrower.  “Consolidated EBITDA”:  for any period, the Consolidated Net Income for such period, plus (x) the  following to the extent deducted in calculating such Consolidated Net Income, without duplication:  (i) provision for  all taxes (whether or not paid, estimated or accrued) based on income, profits or capital (including penalties and  interest, if any), (ii) Consolidated Interest Expense, all items excluded from the definition of Consolidated Interest  Expense pursuant to clause (iii) thereof (other than Special Purpose Financing Expense), any Special Purpose  Financing Fees, and to the extent not reflected in Consolidated Interest Expense, costs of surety bonds in connection  with financing activities, (iii) depreciation, (iv) amortization (including but not limited to amortization of goodwill  and intangibles and amortization and write-off of financing costs), (v) any non-cash charges or non-cash losses, (vi)  

 

  - 12 -  any expenses or charges related to any equity offering, Investment or Indebtedness permitted by this Agreement  (whether or not consummated or Incurred, and including any offering or sale of Capital Stock of a Parent Entity), (vii)  the amount of any loss attributable to non-controlling interests, (viii) all deferred financing costs written off and  premiums paid in connection with any early extinguishment of Hedging Obligations or other derivative instruments,  (ix) [reserved], (x) interest and investment income, (xi) the amount of loss on any Financing Disposition, (xii) expenses  or charges incurred in respect of restructuring initiatives, cost savings initiatives and other similar initiatives and (xiii)  any costs or expenses pursuant to any management or employee stock option or other equity-related plan, program or  arrangement, or other benefit plan, program or arrangement, or any equity subscription or equityholder agreement, to  the extent funded with cash proceeds contributed to the capital of Parent, Holdings or the Borrower or an issuance of  Capital Stock of Parent, Holdings or the Borrower (other than Disqualified Stock) and excluded from the calculation  set forth in Subsection 8.2(a)(3)(B), plus (y) “run-rate” cost savings, operating expense reductions, operating  improvements and synergies of the Group Members related to mergers, amalgamations and other business  combinations, acquisitions, divestitures, restructurings, cost savings initiatives and other similar initiatives (i)  projected by the Borrower in good faith to be realized as the result of actions taken or to be taken on or prior to the  date that is 18 months after the date of any such initiative or transaction and (ii) that are reasonably identifiable and  factually supportable in the good faith determination of the Borrower (calculated on a pro forma basis as though such  cost savings had been realized on the first day of such period), net of the amount of actual benefits realized during  such period from such actions (which adjustments may be incremental to pro forma adjustments made pursuant to the  proviso to the definition of “Consolidated First Lien Leverage Ratio”, “Consolidated Fixed Charge Coverage Ratio,”  “Consolidated Secured Leverage Ratio” or “Consolidated Total Leverage Ratio”); provided that the aggregate amount  added back pursuant to this clause (y) in any period shall not exceed 25% of Consolidated EBITDA (calculated before  giving effect to any such addback) for such period.  “Consolidated First Lien Indebtedness”:  as of any date of determination, (i) an amount equal to the  Consolidated Total Indebtedness (without regard to clause (ii) of the definition thereof) as of such date that in each  case is then secured by Liens on property or assets of any Group Member  (other than (x) Indebtedness secured by a  Lien ranking junior to or subordinated to the Liens securing the Loan Document Obligations and (y) property or assets  held in a defeasance or similar trust or arrangement for the benefit of the Indebtedness secured thereby), minus (ii) the  sum of (A) the amount of such Indebtedness consisting of Indebtedness of a type referred to in, or Incurred pursuant  to, Subsection 8.1(b)(ix) and (B) Unrestricted Cash of the Group Members.  “Consolidated First Lien Leverage Ratio”:  as of any date of determination, the ratio of (i)  Consolidated First Lien Indebtedness as at such date to (ii) the aggregate amount of Consolidated EBITDA for the  Applicable Reference Period; provided that the Consolidated First Lien Leverage Ratio shall be calculated on a Pro  Forma Basis.  “Consolidated Fixed Charges”:  with respect to any Person for any period (and with respect to  Parent, Holdings, the Borrower and the Restricted Subsidiaries, such Persons on a consolidated basis), without  duplication, the sum of:   (1) Consolidated Interest Expense for such period; plus   (2) Disqualified Stock dividends paid, accrued or scheduled to be paid or accrued during such  period, excluding dividends paid in Capital Stock that is not Disqualified Stock; plus   (3) Preferred Stock dividends paid, accrued or scheduled to be paid or accrued during such  period, excluding dividends paid in Capital Stock that is not Disqualified Stock.  “Consolidated Fixed Charge Coverage Ratio”:  as of any date of determination, the ratio of (i) the  aggregate amount of Consolidated EBITDA for the Applicable Reference Period to (ii) Consolidated Fixed Charges  for the Applicable Reference Period; provided that   (1) if, since the beginning of such period, any Group Member has Incurred any Indebtedness  or Parent has issued any Designated Preferred Stock that remains outstanding on such date of determination  or if the transaction giving rise to the need to calculate the Consolidated Fixed Charge Coverage Ratio is an  Incurrence of Indebtedness or an issuance of Designated Preferred Stock of Parent, Consolidated Fixed  

 

  - 13 -  Charges for such period shall be calculated after giving effect on a pro forma basis to such Indebtedness or  Designated Preferred Stock as if such Indebtedness or Designated Preferred Stock had been Incurred or  issued, as applicable, on the first day of such period (except that in making such computation, the amount of  Indebtedness under any revolving credit facility outstanding on the date of such calculation shall be computed  based on (A) the average daily balance of such Indebtedness during such Applicable Reference Period or  such shorter period for which such facility was outstanding or (B) if such facility was created after the end  of such Applicable Reference Period, the average daily balance of such Indebtedness during the period from  the date of creation of such facility to the date of such calculation),  (2) if, since the beginning of such period, any Group Member has repaid, repurchased,  redeemed, defeased or otherwise acquired, retired or discharged any Indebtedness, or any Designated  Preferred Stock of Parent that is no longer outstanding on such date of determination (each, a “Discharge”)  or if the transaction giving rise to the need to calculate the Consolidated Fixed Charge Coverage Ratio  involves a Discharge of Indebtedness (in each case other than Indebtedness Incurred under any revolving  credit facility unless such Indebtedness has been repaid with an equivalent permanent reduction in  commitments thereunder) or a Discharge of Designated Preferred Stock of Parent, Consolidated EBITDA  and Consolidated Fixed Charges for such period shall be calculated after giving effect on a pro forma basis  to such Discharge of Indebtedness or Designated Preferred Stock, including with the proceeds of such new  Indebtedness or such new Designated Preferred Stock of Parent, as if such Discharge had occurred on the  first day of such period,  (3) if, since the beginning of such period, any Group Member shall have made a Sale  (including any Sale occurring in connection with a transaction causing a calculation to be made hereunder),  the Consolidated EBITDA for such period shall be reduced by an amount equal to the Consolidated EBITDA  (if positive) attributable to the assets that are the subject of such Sale for such period or increased by an  amount equal to the Consolidated EBITDA (if negative) attributable thereto for such period and Consolidated  Fixed Charges for such period shall be reduced by an amount equal to (A) the Consolidated Interest Expense  attributable to any Indebtedness of any Group Member repaid, repurchased, redeemed, defeased or otherwise  acquired, retired or discharged with respect to such Group Member in connection with such Sale for such  period (including but not limited to through the assumption of such Indebtedness by another Person) plus (B)  if the Capital Stock of any Restricted Subsidiary is disposed of in such Sale or any Restricted Subsidiary is  designated as an Unrestricted Subsidiary, the Consolidated Interest Expense for such period attributable to  the Indebtedness of such Restricted Subsidiary to the extent such Group Member is no longer liable for such  Indebtedness after such Sale,  (4) if, since the beginning of such period, any Group Member (by merger, consolidation,  amalgamation or otherwise) shall have made a Purchase (including any Purchase occurring in connection  with a transaction causing a calculation to be made hereunder), Consolidated EBITDA and Consolidated  Fixed Charges for such period shall be calculated after giving pro forma effect thereto (including the  Incurrence of any related Indebtedness) as if such Purchase occurred on the first day of such period, and  (5) if, since the beginning of such period, any Person became a Restricted Subsidiary or was  merged, amalgamated or consolidated with or into any Group Member, and since the beginning of such  period such Person shall have Discharged any Indebtedness or made any Sale or Purchase that would have  required an adjustment pursuant to clause (2), (3) or (4) above if made by any Group Member since the  beginning of such period, Consolidated EBITDA and Consolidated Fixed Charges for such period shall be  calculated after giving pro forma effect thereto as if such Discharge, Sale or Purchase occurred on the first  day of such period;   For purposes of this definition, whenever pro forma effect is to be given to any Sale, Purchase or other transaction, or  the amount of income or earnings relating thereto and the amount of Consolidated Interest Expense associated with  any Indebtedness Incurred, Designated Preferred Stock issued, or Indebtedness or Designated Preferred Stock repaid,  repurchased, redeemed, defeased or otherwise acquired, retired or discharged in connection therewith, the pro forma  calculations in respect thereof (including in respect of anticipated cost savings or synergies relating to any such Sale,  Purchase or other transaction) shall be as determined in good faith by the Chief Financial Officer or a Responsible  Officer of the Borrower; provided that with respect to cost savings or synergies relating to any Sale, Purchase or other  

 

  - 14 -  transaction, the related actions are expected by Parent, Holdings or the Borrower to be taken no later than 18 months  after the date of determination and such cost savings or synergies shall be subject to (and included in) the cap set forth  in clause (y) of Consolidated EBITDA. If any Indebtedness bears a floating rate of interest and is being given pro  forma effect, the interest expense on such Indebtedness shall be calculated as if the rate in effect on the date of  determination had been the applicable rate for the entire period (taking into account any Interest Rate Agreement  applicable to such Indebtedness).  If any Indebtedness bears, at the option of Parent, Holdings, the Borrower or a  Restricted Subsidiary, a rate of interest based on a prime or similar rate, a Eurodollar interbank offered rate or other  fixed or floating rate, and such Indebtedness is being given pro forma effect, the interest expense on such Indebtedness  shall be calculated by applying such optional rate as Parent, Holdings, the Borrower or such Restricted Subsidiary  may designate.  If any Indebtedness that is being given pro forma effect was Incurred under a revolving credit facility,  the interest expense on such Indebtedness shall be computed based upon the average daily balance of such  Indebtedness during the applicable period. Interest on a Capitalized Lease Obligation shall be deemed to accrue at an  interest rate determined in good faith by a responsible financial or accounting officer of the Borrower (which  determination shall be conclusive) to be the rate of interest implicit in such Capitalized Lease Obligation in accordance  with GAAP.   “Consolidated Interest Expense”:  for any period, (i) the total interest expense of the Group Members  to the extent deducted in calculating Consolidated Net Income, net of any interest income of the Group Members,  including any such interest expense consisting of (A) interest expense attributable to Capitalized Lease Obligations  (excluding, for the avoidance of doubt, any lease, rental or other expense in connection with a lease that is not a  Capitalized Lease Obligation), (B) amortization of debt discount, (C) interest in respect of Indebtedness of any other  Person that has been Guaranteed by any Group Member, but only to the extent that such interest is actually paid by  any Group Member, (D) non-cash interest expense, (E) the interest portion of any deferred payment obligation, and  (F) commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance  financing, plus (ii) Preferred Stock dividends paid in cash in respect of Disqualified Stock of Parent, Holdings or the  Borrower held by Persons other than a Group Member or in respect of Designated Preferred Stock of Parent pursuant  to Subsection 8.2(b)(xi)(A), minus (iii) to the extent otherwise included in such interest expense referred to in clause  (i) above, Special Purpose Financing Expense, accretion or accrual of discounted liabilities not constituting  Indebtedness, expense resulting from discounting of Indebtedness in conjunction with recapitalization or purchase  accounting, any “additional interest” in respect of registration rights arrangements for any securities, amortization or  write-off of financing costs, and any expensing of bridge, commitment or other financing fees in each case under  clauses (i) through (iii) above as determined on a Consolidated basis in accordance with GAAP; provided that gross  interest expense shall be determined after giving effect to any net payments made or received by the Borrower and its  Restricted Subsidiaries with respect to Interest Rate Agreements.  “Consolidated Net Income”:  for any period, the net income (loss) of the Group Members,  determined on a Consolidated basis in accordance with GAAP and before any reduction in respect of Preferred Stock  dividends; provided that, without duplication, there shall not be included in such Consolidated Net Income:  (i) any net income (loss) of any Person if such Person is not a Group Member, except that (A)  any Group Member’s net income for such period shall be increased by the aggregate amount actually  dividended or distributed or that (as determined by the Borrower in good faith) could have been dividended  or distributed by such Person during such period to a Group Member as a dividend or other distribution  (subject, in the case of a dividend or other distribution to a Restricted Subsidiary, to the limitations contained  in clause (ii) below), to the extent not already included therein, and (B) any Group Member’s equity in the  net loss of such Person shall be included to the extent of the aggregate Investment of any Group Member in  such Person,  (ii) solely for purposes of determining the amount available for Restricted Payments under  Subsection 8.2(a)(3)(A) and Excess Cash Flow, any net income (loss) of any Restricted Subsidiary that is not  a Subsidiary Guarantor if such Restricted Subsidiary is subject to restrictions, directly or indirectly, on the  payment of dividends or the making of similar distributions by such Restricted Subsidiary, directly or  indirectly, to Parent, Holdings or the Borrower by operation of the terms of such Restricted Subsidiary’s  charter or any agreement, instrument, judgment, decree, order, statute or governmental rule or regulation  applicable to such Restricted Subsidiary or its stockholders (other than (x) restrictions that have been waived  or otherwise released, (y) restrictions pursuant to this Agreement, the other Loan Documents or the ABL  

 

  - 15 -  Facility Documents, and (z) restrictions in effect on the Closing Date with respect to a Restricted Subsidiary  and other restrictions with respect to such Restricted Subsidiary that taken as a whole are not materially less  favorable to the Lenders than such restrictions in effect on the Closing Date as determined by the Borrower  in good faith), except that (A) the Borrower’s equity in the net income of any such Restricted Subsidiary for  such period shall be included in such Consolidated Net Income up to the aggregate amount of any dividend  or distribution that was or that (as determined by the Borrower in good faith) could have been made by such  Restricted Subsidiary during such period to the Borrower or another Restricted Subsidiary (subject, in the  case of a dividend that could have been made to another Restricted Subsidiary, to the limitation contained in  this clause (ii)) and (B) the net loss of such Restricted Subsidiary shall be included to the extent of the  aggregate Investment of any Group Member in such Restricted Subsidiary,  (iii) (x) any gain or loss realized upon the sale, abandonment or other disposition of any asset  of any Group Member (including pursuant to any sale/leaseback transaction) that is not sold, abandoned or  otherwise disposed of in the ordinary course of business (as determined by the Borrower in good faith) and  (y) any gain or loss realized upon the disposal, abandonment or discontinuation of operations of any Group  Member,  (iv) any extraordinary, unusual or nonrecurring gain, loss or charge (including fees, expenses  and charges associated with the Transactions and any acquisition, merger, amalgamation or consolidation  after the Closing Date or any accounting change),  (v) the cumulative effect of a change in accounting principles,  (vi) all deferred financing costs written off and premiums paid in connection with any early  extinguishment of Indebtedness or Hedging Obligations or other derivative instruments,  (vii) any unrealized gains or losses in respect of Hedge Agreements,  (viii) any unrealized foreign currency translation gains or losses, including in respect of  Indebtedness of any Person denominated in a currency other than the functional currency of such Person,  (ix) any non-cash compensation charge arising from any grant of limited liability company  interests, stock, stock options or other equity based awards,  (x) to the extent otherwise included in Consolidated Net Income, any unrealized foreign  currency translation gains or losses, including in respect of Indebtedness or other obligations of any Group  Member owing to any Group Member,  (xi) any non-cash charge, expense or other impact attributable to application of the purchase or  recapitalization method of accounting (including the total amount of depreciation and amortization, cost of  sales or other non-cash expense resulting from the write-up of assets to the extent resulting from such  purchase or recapitalization accounting adjustments), non-cash charges for deferred tax valuation allowances  and non-cash gains, losses, income and expenses resulting from fair value accounting required by the  applicable standard under GAAP,  (xii) expenses related to the conversion of various employee benefit programs in connection  with the Transactions, and non-cash compensation related expenses, and  (xiii) to the extent covered by insurance and actually reimbursed (or the Borrower has  determined that there exists reasonable evidence that such amount will be reimbursed by the insurer and such  amount is not denied by the applicable insurer in writing within 180 days and is reimbursed within 365 days  of the date of such evidence (with a deduction in any future calculation of Consolidated Net Income for any  amount so added back to the extent not so reimbursed within such 365-day period)), any expenses with  respect to liability or casualty events or business interruption; provided, further, that the exclusion of any  

 

  - 16 -  item pursuant to the foregoing clauses (i) through (xiii) shall also exclude the tax impact of any such item, if  applicable.  In the case of any unusual or nonrecurring gain, loss or charge not included in Consolidated Net  Income pursuant to clause (iv) above in any determination thereof, the Borrower will deliver a certificate of a  Responsible Officer to the Administrative Agent promptly after the date on which Consolidated Net Income is so  determined, setting forth the nature and amount of such unusual or nonrecurring gain, loss or charge.  Notwithstanding  the foregoing, for the purpose of Subsection 8.2(a)(3)(A) only, there shall be excluded from Consolidated Net Income,  without duplication, any income consisting of dividends, repayments of loans or advances or other transfers of assets  from Unrestricted Subsidiaries to a Group Member, and any income consisting of return of capital, repayment or other  proceeds from dispositions or repayments of Investments consisting of Restricted Payments, in each case to the extent  such income would be included in Consolidated Net Income and such related dividends, repayments, transfers, return  of capital or other proceeds are applied by the Borrower to increase the amount of Restricted Payments permitted  under Subsection 8.2(a)(3)(C) or (D).  “Consolidated Secured Indebtedness”:  as of any date of determination, (i) an amount equal to the  Consolidated Total Indebtedness (without regard to clause (ii) of the definition thereof) as of such date that in each  case is then secured by Liens on property or assets of the Group Members, minus (ii) the sum of (A) the amount of  such Indebtedness consisting of Indebtedness of a type referred to in, or Incurred pursuant to, Subsection 8.1(b)(ix)  and (B) Unrestricted Cash of the Group Members.  “Consolidated Secured Leverage Ratio”:  as of any date of determination, the ratio of (i)  Consolidated Secured Indebtedness as at such date to (ii) the aggregate amount of Consolidated EBITDA for the  Applicable Reference Period; provided that the Consolidated Secured Leverage Ratio shall be calculated on a Pro  Forma Basis.  “Consolidated Total Assets”:  as of any date of determination, the total assets, in each case that is  or would be reflected on the consolidated balance sheet of Parent as at the end of the most recently ended Fiscal  Quarter of Parent for which a balance sheet is available, determined on a Consolidated basis in accordance with GAAP  (and, in the case of any determination relating to any Incurrence of Indebtedness or Liens or any Investment, on a pro  forma basis including any property or assets being acquired in connection therewith).  “Consolidated Total Indebtedness”:  as of any date of determination, an amount equal to (i) the  aggregate principal amount of outstanding Indebtedness of the Group Members as of such date consisting of (without  duplication) Indebtedness for borrowed money (including Purchase Money Obligations and unreimbursed outstanding  drawn amounts under funded letters of credit); Capitalized Lease Obligations; debt obligations evidenced by bonds,  debentures, notes or similar instruments; Disqualified Stock; and (in the case of any Restricted Subsidiary that is not  a Subsidiary Guarantor) Preferred Stock, determined on a Consolidated basis in accordance with GAAP (excluding  items eliminated in Consolidation, and for the avoidance of doubt, excluding Hedging Obligations) minus (ii) the sum  of (A) the amount of such Indebtedness consisting of Indebtedness of a type referred to in, or Incurred pursuant to,  Subsection 8.1(b)(ix) and (B) Unrestricted Cash of the Group Members.  “Consolidated Total Leverage Ratio”:  as of any date of determination, the ratio of (i) Consolidated  Total Indebtedness as at such date  to (ii) the aggregate amount of Consolidated EBITDA for the Applicable Reference  Period; provided that the Consolidated Total Leverage Ratio shall be calculated on a Pro Forma Basis.  “Consolidated Working Capital”:  at any date, the excess of (a) the sum of all amounts (other than  cash, Cash Equivalents and Temporary Cash Investments) that would, in conformity with GAAP, be set forth opposite  the caption “total current assets” (or any like caption) on a consolidated balance sheet of Parent at such date excluding  the current portion of current and deferred income taxes over (b) the sum of all amounts that would, in conformity  with GAAP, be set forth opposite the caption “total current liabilities” (or any like caption) on a consolidated balance  sheet of Parent on such date, including deferred revenue but excluding, without duplication, (i) the current portion of  any Funded Debt, (ii) all Indebtedness consisting of Loans, ABL Facility Loans or Unsecured Notes to the extent  otherwise included therein, (iii) the current portion of interest and (iv) the current portion of current and deferred  income taxes.  

 

  - 17 -  “Consolidation”:  the consolidation of the accounts of the Group Members in accordance with  GAAP; provided that “Consolidation” will not include consolidation of the accounts of any Unrestricted Subsidiary,  but the interest of any Group Member in any Unrestricted Subsidiary will be accounted for as an investment. The term  “Consolidated” has a correlative meaning.  “Contract Consideration”:  as defined in the definition of “Excess Cash Flow.”  “Contractual Obligation”:  as to any Person, any provision of any material security issued by such  Person or of any material agreement, instrument or other undertaking to which such Person is a party or by which it  or any of its property is bound.  “Contribution Amounts”:  the aggregate amount of capital contributions applied by the Borrower to  permit the Incurrence of Contribution Indebtedness pursuant to Subsection 8.1(b)(xi).  “Contribution Indebtedness”:  Indebtedness of the Group Members in an aggregate principal amount  not greater than the aggregate amount of cash contributions (other than Excluded Contributions, the proceeds from  the issuance of Disqualified Stock or contributions by the Group Members) made to the capital of Parent after the  Closing Date (whether through the issuance or sale of Capital Stock or otherwise); provided that such Contribution  Indebtedness (a) is Incurred within 180 days after the receipt of the related cash contribution and (b) is so designated  as Contribution Indebtedness pursuant to a certificate of a Responsible Officer of the Borrower on the date of  Incurrence thereof.  “Corresponding Tenor”:  with respect to any Available Tenor, 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.  “Covered Entity”:  any of the following:  (i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R.  § 252.82(b);  (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R.  § 47.3(b); or  (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. §  382.2(b).  “Covered Party”:  as defined in Subsection 11.21.  “Currency Agreement”:  in respect of a Person, any foreign exchange contract, currency swap  agreement or other similar agreement or arrangements (including derivative agreements or arrangements), as to which  such Person is a party or a beneficiary.   “Daily Simple SOFR”:  for any day, SOFR, with the conventions for this rate (which may include  a lookback) being established by the Administrative Agent in accordance with the conventions for this rate selected  or recommended by the Relevant Governmental Body for determining “Daily Simple SOFR” for 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”: the Bankruptcy Code, Companies’ Creditors Arrangement Act (Canada),  Bankruptcy and Insolvency Act (Canada), the Winding Up and Restructuring Act (Canada), any Canadian corporate  statute where such statute is used to propose an arrangement involving the compromise of claims of creditors 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, Canada or other applicable  jurisdictions from time to time in effect.   

 

  - 18 -  “Declined Amounts”:  the sum of (x) the Term Loan Declined Amounts and (y) the amount of  Excess Cash Flow and Net Cash Proceeds of any Asset Disposition offered (to the extent any Group Member is  required by the terms thereof) to prepay, repay or purchase other Indebtedness that is secured by the Collateral on a  pari passu basis with the Loan Document Obligations which the holders of such Indebtedness decline to accept  pursuant to the terms equivalent to Subsection 4.4(h).  “Default”:  any of the events specified in Subsection 9.1, whether or not any requirement for the  giving of notice (other than, in the case of Subsection 9.1(e), a Default Notice), the lapse of time, or both, or any other  condition specified in Subsection 9.1, has been satisfied.  “Default Notice”:  as defined in Subsection 9.1(e).  “Default Right”:  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.  “Deposit Account”:  any deposit account (as such term is defined in Article 9 of the UCC).  “Designated Noncash Consideration”:  the Fair Market Value of noncash consideration received by  a Group Member in connection with an Asset Disposition that is so designated as Designated Noncash Consideration  pursuant to a certificate of a Responsible Officer of the Borrower, setting forth the basis of such valuation.  “Designated Preferred Stock”:  Preferred Stock of Parent (other than Disqualified Stock) that is  issued after the Closing Date for cash (other than to a Restricted Subsidiary) and is so designated as Designated  Preferred Stock, pursuant to a certificate of a Responsible Officer of the Borrower; provided that the cash proceeds of  such issuance shall be excluded from the calculation set forth in Subsection 8.2(a)(3)(B).  “Designation Date”:  as defined in Subsection 2.10(f).  “Discharge”:  as defined in clause (2) of the definition of “Consolidated Fixed Charge Coverage  Ratio.”  “Discount Prepayment Accepting Lender”:  as defined in Subsection 4.4(l)(ii)(2).  “Discount Range”:  as defined in Subsection 4.4(l)(iii)(1).  “Discount Range Prepayment Amount”:  as defined in Subsection 4.4(l)(iii)(1).  “Discount Range Prepayment Notice”:  a written notice of the Borrower Solicitation of Discount  Range Prepayment Offers made pursuant to Subsection 4.4(l) substantially in the form of Exhibit O.  “Discount Range Prepayment Offer”:  the irrevocable written offer by a Lender, substantially in the  form of Exhibit P, submitted in response to an invitation to submit offers following the Administrative Agent’s receipt  of a Discount Range Prepayment Notice.  “Discount Range Prepayment Response Date”: as defined in Subsection 4.4(l)(iii)(1).  “Discount Range Proration”:  as defined in Subsection 4.4(l)(iii)(3).  “Discounted Prepayment Determination Date”: as defined in Subsection 4.4(l)(iv)(3).  “Discounted Prepayment Effective Date”:  in the case of a Borrower Offer of Specified Discount  Prepayment, Borrower Solicitation of Discount Range Prepayment Offers or Borrower Solicitation of Discounted  Prepayment Offers, or otherwise, five Business Days following the receipt by each relevant Lender of notice from the  Administrative Agent in accordance with Subsection 4.4(l)(ii), Subsection 4.4(l)(iii) or Subsection 4.4(l)(iv), as  applicable unless a shorter period is agreed to between the Borrower and the Administrative Agent.  

 

  - 19 -  “Discounted Term Loan Prepayment”:  as defined in Subsection 4.4(l)(i).  “Disinterested Directors”:  with respect to any Affiliate Transaction, one or more members of the  Board of Directors of the Borrower, or one or more members of the Board of Directors of a Parent Entity, having no  material direct or indirect financial interest in or with respect to such Affiliate Transaction. A member of any such  Board of Directors shall not be deemed to have such a financial interest by reason of such member’s holding Capital  Stock of the Borrower or any Parent Entity or any options, warrants or other rights in respect of such Capital Stock.  “disposition”:  as defined in the definition of the term “Asset Disposition” in this Subsection 1.1.  “Disqualified Party”:  unless otherwise consented to in writing by the Borrower, (i) any (x)  competitor of the Group Members that is in the same or a similar line of business as the Group Members and is  designated in writing by the Borrower to the Administrative Agent or (y) any affiliate of such competitor, which  affiliate is either designated in writing by the Borrower to the Administrative Agent or clearly identifiable solely by  similarity of its name to such competitor and (ii) any (x) Persons designated in writing by the Borrower to the  Administrative Agent on or prior to the date hereof or (y) any affiliate of such Person, which affiliate is either  designated in writing by the Borrower to the Administrative Agent or clearly identifiable solely by similarity of its  name to such Person (other than affiliates that constitute bona fide debt funds primarily investing in loans); provided  that the Borrower shall not designate any Person that is a Lender, or that has entered into a trade to become a Lender,  at the time of designation as a “Disqualified Party”; provided further that provided that no designation of a Disqualified  Party shall become effective until three Business Days after such written notice is delivered to  JPMDQ_Contact@jpmorgan.com.  “Disqualified Stock”:  with respect to any Person, any Capital Stock (other than Management Stock)  that by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable or  exercisable) or upon the happening of any event (other than following the occurrence of a Change of Control or other  similar event described under such terms as a “change of control” or an Asset Disposition or other disposition) (i)  matures or is mandatorily redeemable pursuant to a sinking fund obligation or otherwise, (ii) is convertible or  exchangeable for Indebtedness or Disqualified Stock or (iii) is redeemable at the option of the holder thereof (other  than following the occurrence of a Change of Control or other similar event described under such terms as a “change  of control” or an Asset Disposition or other disposition), in whole or in part, in each case on or prior to the Initial Term  Loan Maturity Date; provided that Capital Stock issued to any employee benefit plan, or by any such plan to any  employees of Parent, Holdings, the Borrower or any Subsidiary, shall not constitute Disqualified Stock solely because  it may be required to be repurchased or otherwise acquired or retired in order to satisfy applicable statutory or  regulatory obligations.  “Dollars” and “$”:  dollars in lawful currency of the United States of America.  “Domestic Subsidiary”:  any Restricted Subsidiary of the Borrower other than a Foreign Subsidiary.  “Early Opt-in Election”:  if the then current Benchmark is the LIBO Rate, the occurrence of:  (1) a notification by the Administrative Agent in consultation with the Borrower 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  (2) the joint election by the Administrative Agent and the Borrower to trigger a fallback from  the LIBO Rate and the provision, as applicable, by the Administrative Agent of written notice of such election to the  Borrower and the Lenders.  “ECF Payment Date”:  as defined in Subsection 4.4(e)(iii).  

 

  - 20 -  “ECF Prepayment Amount”:  as defined in Subsection 4.4(e)(iii).  “EEA Financial Institution”:  (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”:  any of the member states of the European Union, Iceland, Liechtenstein,  and Norway.  “EEA Resolution Authority”:  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 Signature”:  an electronic sound, symbol, or process attached to, or associated with, a  contract or other record and adopted by a Person with the intent to sign, authenticate or accept such contract or record.  “Eligible Assignee”: (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund, (d) any  commercial bank and (e) any other financial institution or investment fund engaged as a primary activity in the  ordinary course of its business in making or investing in commercial loans or debt securities, other than, in each case,  (i) a natural person or (ii) except to the extent permitted under Sections 2.9 and 11.6(h), any Group Member or (iii) a  Disqualified Party.  “Environmental Costs”:  any and all costs or expenses (including attorney’s, legal counsel’s and  consultant’s fees, investigation and laboratory fees, response costs, fines, penalties, court costs and litigation expenses,  fines, penalties, damages, settlement payments, judgments and awards), of whatever kind or nature, known or  unknown, contingent or otherwise, arising out of, or in any way relating to, any actual or alleged violation of,  noncompliance with or liability under any Environmental Laws. Environmental Costs include any and all of the  foregoing, without regard to whether they arise out of or are related to any past, pending or threatened proceeding of  any kind.  “Environmental Laws”:  any and all U.S., Canadian or foreign, federal, state, provincial, territorial,  local or municipal laws, rules, orders, enforceable guidelines and orders-in-council, regulations, legislation, statutes,  ordinances, codes, decrees, directives, by-laws, guidelines, policies, interpretations, decisions and such requirements  of any Governmental Authority properly promulgated and having the force and effect of law or other Requirements  of Law (including common law) regulating, relating to or imposing liability or standards of conduct concerning  protection of human health (as it relates to exposure to Materials of Environmental Concern) or the environment, as  have been, or now or at any relevant time hereafter are, in effect.   “Environmental Permits”:  any and all permits, licenses, registrations, notifications, exemptions and  any other authorization required under any Environmental Law.  “ERISA”:  the Employee Retirement Income Security Act of 1974, as amended from time to time.  “Escrow Borrower” as defined in Subsection 2.8(a).  “Escrow Subsidiary”:  a Wholly Owned Domestic Subsidiary formed or established for the purpose  of Incurring Indebtedness the proceeds of which will be subject to an escrow or other similar arrangement; provided  that upon the termination of all such escrow or similar arrangement of such Subsidiary, such Subsidiary shall cease to  constitute an “Escrow Subsidiary” hereunder and shall merge with and into the Borrower in accordance with  Subsection 8.7.  Prior to its merger with and into the Borrower, each Escrow Subsidiary shall not own, hold or  otherwise have any interest in any material assets other than the proceeds of the applicable Indebtedness Incurred by  such Escrow Subsidiary and any cash, Cash Equivalents or Temporary Cash Investments invested in such Escrow  Subsidiary to cover interest and premium in respect of such Indebtedness.  

 

  - 21 -  “EU Bail-In Legislation Schedule”:  the EU Bail-In Legislation Schedule published by the Loan  Market Association (or any successor person), as in effect from time to time.  “Eurodollar”:  when used in reference to any Loan or Borrowing, refers to whether such Loan, or  the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted LIBO  Rate.  “Event of Default”:  any of the events specified in Subsection 9.1; provided that any requirement  for the giving of notice, the lapse of time, or both, or any other condition, has been satisfied.  “Excess Cash Flow”:  for any period, an amount equal to the excess of:  (a) the sum, without duplication, of  (i) Consolidated Net Income for such period,  (ii) an amount equal to the amount of all non-cash charges to the extent deducted in calculating  such Consolidated Net Income and cash receipts to the extent excluded in calculating such Consolidated Net  Income (except to the extent such cash receipts are attributable to revenue or other items that would be  included in calculating Consolidated Net Income for any prior period),  (iii) decreases in Consolidated Working Capital for such period (other than any such decreases  arising (x) from any acquisition or disposition of (a) any business unit, division, line of business or Person or  (b) any assets other than in the ordinary course of business (each, an “ECF Acquisition” or “ECF  Disposition”, respectively) by the Group Members completed during such period, (y) from the application of  purchase accounting or (z) as a result of the reclassification of any balance sheet item from short-term to  long-term or vice versa),  (iv) an amount equal to the aggregate net non-cash loss on Asset Dispositions (or any  disposition specifically excluded from the definition of the term “Asset Disposition”) by the Group Members  during such period (other than in the ordinary course of business) to the extent deducted in calculating such  Consolidated Net Income,  (v) cash receipts in respect of Hedge Agreements during such period to the extent not  otherwise included in calculating such Consolidated Net Income, and  (vi) any extraordinary, unusual or nonrecurring cash gain,   over (b) the sum, without duplication, of  (i) an amount equal to the amount of all non-cash credits included in calculating such  Consolidated Net Income and cash charges to the extent not deducted in calculating such Consolidated Net  Income,  (ii) without duplication of amounts deducted pursuant to clause (xi) below in prior years, the  amount of Capital Expenditures either made in cash or accrued during such period (provided that, whether  any such Capital Expenditures shall be deducted for the period in which cash payments for such Capital  Expenditures have been paid or the period in which such Capital Expenditures have been accrued shall be at  the Borrower’s election; provided, further, that, in no case shall any accrual of a Capital Expenditure which  has previously been deducted give rise to a subsequent deduction upon the making of such Capital  Expenditure in cash in the same or any subsequent period), except to the extent that such Capital Expenditures  were financed with the proceeds of long-term Indebtedness of the Group Members (unless such Indebtedness  has been repaid),  

 

  - 22 -  (iii) the aggregate amount of all principal payments, purchases or other retirements of  Indebtedness of the Group Members (including (A) the principal component of payments in respect of  Capitalized Lease Obligations, (B) the amount of any repayment of Term Loans pursuant to Subsection 2.2(b)  and (C) the amount of a mandatory prepayment of Term Loans pursuant to Subsection 4.4(e)(i) and any  mandatory prepayment, repayment or redemption of Pari Passu Indebtedness pursuant to requirements under  the agreements governing such Pari Passu Indebtedness similar to the requirements set forth in Subsection  4.4(e)(i), to the extent required due to an Asset Disposition (or any disposition specifically excluded from the  definition of the term “Asset Disposition”) that resulted in an increase to Consolidated Net Income and not  in excess of the amount of such increase, but excluding (w) all other prepayments of Loans, (x) all  prepayments of loans under the Senior ABL Facility, (y) all prepayments of Pari Passu Indebtedness and (z)  all prepayments of any other revolving loans (other than Incremental Revolving Loans hereunder and Pari  Passu Indebtedness) to the extent there is not an equivalent permanent reduction in commitments thereunder)  made during such period, except to the extent financed with the proceeds of long-term Indebtedness of the  Group Members,  (iv) an amount equal to the aggregate net non-cash gain on Asset Dispositions (or any  disposition specifically excluded from the definition of the term “Asset Disposition”) by the Group Members  during such period (other than in the ordinary course of business) to the extent included in calculating such  Consolidated Net Income,  (v) increases in Consolidated Working Capital for such period (other than any such increases  arising (x) from any ECF Acquisition or ECF Disposition by Group Members completed during such period,  (y) from the application of purchase accounting or (z) as a result of the reclassification of any balance sheet  item from short-term to long-term or vice versa),  (vi) payments by Group Members during such period in respect of long-term liabilities of the  Group Members other than Indebtedness, to the extent not already deducted in calculating Consolidated Net  Income,  (vii) without duplication of amounts deducted pursuant to clause (xi) below in prior fiscal years,  the aggregate amount of cash consideration paid by the Group Members (on a consolidated basis) in  connection with Investments (including acquisitions) made during such period constituting “Permitted  Investments” (other than Permitted Investments of the type described in clause (iii) of the definition thereof  and intercompany Investments by and among Group Members) or made pursuant to Subsection 8.2 to the  extent that such Investments were financed with internally generated cash flow of the Group Members,  (viii) the amount of Restricted Payments (other than Investments) made in cash during such  period (on a consolidated basis) by the Group Members pursuant to Subsection 8.2(b) (other than Subsections  8.2(b)(vi) and (xvi)), to the extent such Restricted Payments were financed with internally generated cash  flow of the Group Members,  (ix) the aggregate amount of expenditures actually made by the Group Members in cash during  such period (including expenditures for the payment of financing fees) to the extent that such expenditures  are not expensed during such period and are not deducted in calculating Consolidated Net Income,  (x) the aggregate amount of any premium, make-whole or penalty payments actually paid in  cash by the Group Members during such period that are made in connection with any prepayment of  Indebtedness to the extent that such payments are not deducted in calculating Consolidated Net Income,  (xi) at the Borrower’s election, without duplication of amounts deducted from Excess Cash  Flow in prior periods, the aggregate consideration required to be paid in cash by the Group Members pursuant  to binding contracts (the “Contract Consideration”) entered into prior to or during such period relating to  Investments constituting “Permitted Investments” (other than Permitted Investments of the type described in  clause (iii) of the definition thereof and intercompany Investments by and among the Group Members) or  made pursuant to Subsection 8.2 or Capital Expenditures to be consummated or made during the period of  four consecutive Fiscal Quarters of the Borrower following the end of such period; provided that to the extent  

 

  - 23 -  the aggregate amount of internally generated cash actually utilized to finance such Investments and Capital  Expenditures during such period of four consecutive Fiscal Quarters is less than the Contract Consideration,  the amount of such shortfall shall be added to the calculation of Excess Cash Flow at the end of such period  of four consecutive Fiscal Quarters,  (xii) the amount of taxes (including penalties and interest) paid in cash or tax reserves set aside  or payable (without duplication) in such period to the extent they exceed the amount of tax expense deducted  in calculating such Consolidated Net Income for such period,  (xiii) cash expenditures in respect of Hedge Agreements during such period to the extent not  deducted in calculating such Consolidated Net Income; and  (xiv) any extraordinary, unusual or nonrecurring cash loss or charge (including fees, expenses  and charges associated with the Transactions and any acquisition, merger, amalgamation or consolidation  after the Closing Date).  “Exchange Act”:  the Securities Exchange Act of 1934, as amended from time to time.  “Excluded Assets”:  as defined in the Guarantee and Collateral Agreement.  “Excluded Contribution”:  Net Cash Proceeds, or the Fair Market Value (as of the date of  contribution) of property or assets, received by the Borrower as capital contributions to the Borrower after the Closing  Date or from the issuance or sale (other than to a Restricted Subsidiary) of Capital Stock (other than Disqualified  Stock) of the Borrower, in each case to the extent designated as an Excluded Contribution pursuant to a certificate of  a Responsible Officer of the Borrower and not previously included in the calculation set forth in Subsection  8.2(a)(3)(B)(x) for purposes of determining whether a Restricted Payment may be made.   “Excluded Information”:  as defined in Subsection 4.4(l)(i).  “Excluded Subsidiary”:  at any date of determination, any Subsidiary of the Borrower:  (a) that is an Immaterial Subsidiary;  (b) that is prohibited by Requirement of Law or Contractual Obligations existing on the  Closing Date (or, in the case of any newly acquired Subsidiary, in existence at the time of acquisition but not  entered into in contemplation thereof) from Guaranteeing, or granting Liens to secure, the Loan Document  Obligations or if Guaranteeing, or granting Liens to secure, the Loan Document Obligations would require  governmental (including regulatory) consent, approval, license or authorization unless such consent,  approval, license or authorization has been received;  (c) with respect to which the Borrower and the Administrative Agent reasonably agree in  writing that the burden or cost or other consequences of providing a guarantee of the Loan Document  Obligations shall be excessive in view of the benefits to be obtained by the Lenders therefrom;  (d) with respect to which the provision of such guarantee of the Loan Document Obligations  would result in material adverse tax consequences to Holdings or one of its Subsidiaries (as reasonably  determined by the Borrower and notified in writing to the Administrative Agent);  (e) that is a Subsidiary of a Foreign Subsidiary;  (f) that is a joint venture or Non-Wholly Owned Subsidiary;  (g) that is an Unrestricted Subsidiary;  (h) that is a Captive Insurance Subsidiary;  

 

  - 24 -  (i) that is a Special Purpose Entity; or  (j) that is a Subsidiary formed solely for the purpose of (x) becoming a Parent Entity, or (y)  merging with the Borrower in connection with another Subsidiary becoming a Parent Entity, in each case to  the extent such entity becomes a Parent Entity or is merged with the Borrower within 60 days of the formation  thereof, or otherwise creating or forming a Parent Entity;  (k) that is a Subsidiary acquired by the Borrower or any Subsidiary and, at the time of the  relevant acquisition, is an obligor in respect of Acquired Indebtedness to the extent (and solely for so long  as) the documents or instruments governing the applicable Acquired Indebtedness prohibits such Subsidiary  from granting a Guarantee of the Loan Document Obligations; or  (l) that is an Escrow Subsidiary;  provided that, notwithstanding the foregoing, any Subsidiary that Guarantees the payment of the Senior ABL Facility  Agreement shall not be an Excluded Subsidiary.  Subject to the proviso in the preceding sentence, any Subsidiary that fails to meet the foregoing requirements as of the  last day of the period of the most recent four consecutive Fiscal Quarters for which consolidated financial statements  of Parent are available shall continue to be deemed an Excluded Subsidiary hereunder until the date that is 60 days  following the date on which such annual or quarterly financial statements were required to be delivered pursuant to  Subsection 7.1 with respect to such period.  “Excluded Taxes”:  (a) any Taxes measured by or imposed upon the net income of any Agent or  Lender or its applicable lending office, or any branch or affiliate thereof, and all franchise Taxes, branch profit Taxes,  Taxes on doing business or Taxes measured by or imposed upon the overall capital or net worth of any such Agent or  Lender or its applicable lending office, or any branch or affiliate thereof, in each case imposed:  (i) by the jurisdiction  under the laws of which such Agent or Lender, applicable lending office, branch or affiliate is organized or is located,  or in which its principal executive office is located, or any nation within which such jurisdiction is located or any  political subdivision thereof; or (ii) by reason of any connection between the jurisdiction imposing such Tax and such  Agent or Lender, applicable lending office, branch or affiliate other than a connection arising solely from such Agent  or Lender having executed, delivered or performed its obligations under, or received payment under or enforced, this  Agreement or any Notes, and (b) any Tax imposed by FATCA.  “Exempt Sale and Leaseback Transaction”:  any Sale and Leaseback Transaction (a) in which the  sale or transfer of property occurs within 180 days of the acquisition of such property by a Group Member or (b) that  involves property with a book value equal to the greater of $30,000,000 and 1.75% of Consolidated Total Assets (as  of the date on which a legally binding commitment for such Sale and Leaseback Transaction was entered into) or less  and is not part of a series of related Sale and Leaseback Transactions involving property with an aggregate value in  excess of such amount and entered into with a single Person or group of Persons. For purposes of the foregoing, “Sale  and Leaseback Transaction” means any arrangement with any Person providing for the leasing by a Group Member  of real or personal property that has been or is to be sold or transferred by such Group Member to such Person or to  any other Person to whom funds have been or are to be advanced by such Person on the security of such property or  rental obligations of such Group Member.  “Existing Credit Agreement”:  the Amended and Restated First Lien Credit Agreement, dated as of  December 22, 2016, by and among the Borrower, Deutsche Bank AG New York Branch, as administrative agent and  collateral agent and the lenders party thereto, as amended, restated, amended and restated, supplemented or otherwise  modified.  “Existing Term Loans”:  as defined in Subsection 2.10(a).  “Existing Term Tranche”:  as defined in Subsection 2.10(a).  “Extended Term Loans”:  as defined in Subsection 2.10(a).  

 

  - 25 -  “Extended Term Tranche”:  as defined in Subsection 2.10(a).  “Extending Lender”:  as defined in Subsection 2.10(b).  “Extension”:  as defined in Subsection 2.10(b).  “Extension Amendment”:  as defined in Subsection 2.10(c).  “Extension Date”:  as defined in Subsection 2.10(d).  “Extension Election”:  as defined in Subsection 2.10(b).  “Extension of Credit”:  as to any Lender, the making of an Initial Term Loan (excluding any  Supplemental Term Loans being made under the Initial Term Loan Tranche) or an Incremental Revolving Loan (other  than the initial extension of credit thereunder).  “Extension Request”:  as defined in Subsection 2.10(a).  “Extension Request Deadline”:  as defined in Subsection 2.10(b).  “Extension Series”:  all Extended Term Loans that are established pursuant to the same Extension  Amendment (or any subsequent Extension Amendment to the extent such Extension Amendment expressly provides  that the Extended Term Loans provided for therein are intended to be part of any previously established Extension  Series) and that provide for the same interest margins and amortization schedule.  “Facility”:  each of (a) the Initial Term Loan Commitments and the Extensions of Credit made  thereunder (the “Initial Term Loan Facility”), (b) Incremental Term Loans of the same Tranche, (c) Incremental  Revolving Commitments of the same Tranche and Extensions of Credit made thereunder, (d) any Extended Term  Loans of the same Extension Series, (e) any Specified Refinancing Term Loans of the same Tranche and (f) any other  committed facility hereunder and extensions of credit made thereunder, and collectively the “Facilities.”  “Fair Market Value”:  with respect to any asset or property, the fair market value of such asset or  property as determined in good faith by senior management of the Borrower or the Board of Directors, whose  determination shall be conclusive.  “FATCA”:  Sections 1471 through 1474 of the Code as in effect on the Closing Date (and any  amended or successor provisions that are substantively comparable), and any regulations or other administrative  authority promulgated thereunder, any agreements entered into pursuant to Section 1471(b)(1) of the Code, any  intergovernmental agreement entered into in connection with any of the foregoing and any fiscal or regulatory  legislation, rules or practices adopted pursuant to any such intergovernmental agreement, or any treaty or convention  among Governmental Authorities and implementing the foregoing.   “FCA”:  as defined in Subsection 1.5.  “Federal Funds Effective Rate”:  for any day, the rate calculated by the NYFRB based on such day’s  federal funds transactions by depositary institutions, as determined in such manner as  shall be set forth on the  NYFRB’s Website  from time to time, and published on the next succeeding Business Day by the NYFRB as the  effective federal funds rate; provided that if the Federal Funds Effective Rate as so determined would be less than  zero, such rate shall be deemed to be zero for the purposes of this Agreement.  “Fee Letter”:  the Fee Letter, dated as of May 7, 2021, between the Borrower and JPMorgan Chase  Bank, N.A.  

 

  - 26 -  “Financing Disposition”:  any sale, transfer, conveyance or other disposition of, or creation or  Incurrence of any Lien on, property or assets by the Borrower or any Subsidiary thereof to or in favor of any Special  Purpose Entity, or by any Special Purpose Subsidiary, in each case in connection with the Incurrence by a Special  Purpose Entity of Indebtedness, or obligations to make payments to the obligor on Indebtedness, which may be secured  by a Lien in respect of such property or assets.  “FIRREA”:  the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended  from time to time.   “first priority”:  (a) with respect to any Lien purported to be created in any Collateral pursuant to  any Security Document, that such Lien is the most senior Lien to which such Collateral is subject (subject to Liens  permitted hereunder that are non-consensual Liens arising by operation of law) and (b) with respect to any Lien  purported to be created in any asset of the Group Members (other than Collateral), that such Lien is the most senior  Lien to which such asset is subject (subject to Liens permitted hereunder that are non-consensual Liens arising by  operation of law).  For purposes of this definition, a Lien purported to be created in any Collateral pursuant to any  Security Document will be construed as the “most senior Lien” to which such Collateral is subject, notwithstanding  the existence of a Permitted Lien on the Collateral that is pari passu with the Lien on such Collateral, so long as such  Permitted Lien is subject to the terms of the ABL/Term Loan Intercreditor Agreement, a Junior Lien Intercreditor  Agreement or an Other Intercreditor Agreement.  “Fiscal Quarter”:  successive 13-week periods (each such 13 week period to begin on a Saturday  and (other than as set forth in the definition of Fiscal Year) end on a Friday) of Parent of any Fiscal Year; provided  that for any 53-week Fiscal Year, the last Fiscal Quarter of such Fiscal Year shall consist of the successive 14-week  period from and including the first day after the third Fiscal Quarter of such Fiscal Year through and including the last  day of such Fiscal Year.  “Fiscal Year”:  any period of 52 or 53 weeks ending on September 30th of any calendar year.  “Fixed GAAP Date”:  the Closing Date; provided that at any time after the Closing Date, the  Borrower may by written notice to the Administrative Agent elect to change the Fixed GAAP Date to be the date  specified in such notice, and upon such notice, the Fixed GAAP Date shall be such date for all periods beginning on  and after the date specified in such notice.  “Fixed GAAP Terms”:  (a) the definitions of the terms “Capital Expenditures”, “Capitalized Lease  Obligation”, “Consolidated EBITDA”, “Consolidated Fixed Charge Coverage Ratio”, “Consolidated Interest  Expense”, “Consolidated Net Income”, “Consolidated First Lien Indebtedness”, “Consolidated First Lien Leverage  Ratio”, “Consolidated Secured Indebtedness”, “Consolidated Secured Leverage Ratio”, “Consolidated Total Assets”,  “Consolidated Total Indebtedness”, “Consolidated Total Leverage Ratio”, “Consolidated Working Capital”,  “Consolidation”, “Excess Cash Flow”, ““Inventory” or “Receivables”, (b) all defined terms in this Agreement to the  extent used in or relating to any of the foregoing definitions, and all ratios and computations based on any of the  foregoing definitions, and (c) any other term or provision of this Agreement or the Loan Documents that, at the  Borrower’s election, may be specified by the Borrower by written notice to the Administrative Agent from time to  time.  “Flood Insurance Laws”:  collectively, (a) the National Flood Insurance Act of 1968, (b) the Flood  Disaster Protection Act of 1973, (c) the National Flood Insurance Reform Act of 1994, (d) the Flood Insurance Reform  Act of 2004 and (e) Biggert-Waters Flood Insurance Reform Act of 2012, in each case, as now or hereafter in effect  or any successor thereto.  “Floor”:  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 the LIBO  Rate.  

 

  - 27 -   “Foreign Pension Plan”:  a registered pension plan which is subject to applicable pension legislation  other than ERISA or the Code, including a Canadian Pension Plan, which a Restricted Subsidiary sponsors or  maintains, or to which it makes or is obligated to make contributions.  “Foreign Plan”:  each Foreign Pension Plan, deferred compensation or other retirement or  superannuation plan, fund, program, agreement, commitment or arrangement whether oral or written, funded or  unfunded, sponsored, established, maintained or contributed to, or required to be contributed to, or with respect to  which any liability is borne, outside the United States of America, by the Group Members, other than any such plan,  fund, program, agreement or arrangement sponsored by a Governmental Authority.  “Foreign Subsidiary”:  any Subsidiary of the Borrower (a) that is organized under the laws of any  jurisdiction outside of the United States of America and any Subsidiary of such Foreign Subsidiary or (b) that is a  Foreign Subsidiary Holdco. Any subsidiary of the Borrower which is organized and existing under the laws of Puerto  Rico or any other territory of the United States of America shall be a Foreign Subsidiary.  “Foreign Subsidiary Holdco”:  any Restricted Subsidiary of the Borrower, so long as such Restricted  Subsidiary has no material assets other than securities or indebtedness of one or more Foreign Subsidiaries (or  Subsidiaries thereof), intellectual property relating to such Foreign Subsidiaries (or Subsidiaries thereof), and/or other  assets (including cash, Cash Equivalents and Temporary Cash Investments) relating to an ownership interest in any  such securities, indebtedness, intellectual property or Subsidiaries. Any Subsidiary which is a Foreign Subsidiary  Holdco that fails to meet the foregoing requirements as of the last day of the period for which consolidated financial  statements of Parent are available shall continue to be deemed a “Foreign Subsidiary Holdco” hereunder until the date  that is 60 days following the date on which such annual or quarterly financial statements were required to be delivered  pursuant to Subsection 7.1 with respect to such period.  “Funded Debt”:  all Indebtedness of the Group Members for borrowed money that matures more  than one year from the date of its creation or matures within one year from such date that is renewable or extendable,  at the option of the applicable Group Member, to a date more than one year from such date or arises under a revolving  credit or similar agreement that obligates the lender or lenders to extend credit during a period of more than one year  from such date, including all amounts of such debt required to be paid or prepaid within one year from the date of its  creation and, in the case of the Borrower, Indebtedness in respect of the Term Loans.  “GAAP”:  generally accepted accounting principles in the United States of America as in effect on  the Fixed GAAP Date (for purposes of the Fixed GAAP Terms) and as in effect from time to time (for all other  purposes of this Agreement), including those set forth in the opinions and pronouncements of the Accounting  Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the  Financial Accounting Standards Board or in such other statements by such other entity as approved by a significant  segment of the accounting profession, and subject to the following sentence. If at any time the SEC permits or requires  U.S. domiciled companies subject to the reporting requirements of the Exchange Act to use IFRS in lieu of GAAP for  financial reporting purposes, the Borrower may elect by written notice to the Administrative Agent to so use IFRS in  lieu of GAAP and, upon any such notice, references herein to GAAP shall thereafter be construed to mean (a) for  periods beginning on and after the date specified in such notice, IFRS as in effect on the date specified in such notice  (for purposes of the Fixed GAAP Terms) and as in effect from time to time (for all other purposes of this Agreement)  and (b) for prior periods, GAAP as defined in the first sentence of this definition. All ratios and computations based  on GAAP contained in this Agreement shall be computed in conformity with GAAP.  “Governmental Authority”:  the government of the United States, Canada or any other nation, or of  any political subdivision thereof, whether state, provincial, territorial, municipal or local, and any agency, authority,  instrumentality, regulatory body, court, tribunal, central bank or other entity exercising executive, legislative, judicial,  taxing, regulatory, enforcement or administrative powers or functions of or pertaining to government (including any  supranational bodies such as the European Union or the European Central Bank).  “Group Members”: the collective reference to Parent, Holdings, the Borrower and the Borrower’s  Restricted Subsidiaries.  

 

  - 28 -  “Guarantee”:  any obligation, contingent or otherwise, of any Person directly or indirectly  guaranteeing any Indebtedness or other obligation of any other Person; provided that the term “Guarantee” shall not  include endorsements for collection or deposit in the ordinary course of business. The term “Guarantee” used as a  verb has a corresponding meaning.  “Guarantee and Collateral Agreement”:  the Guarantee and Collateral Agreement delivered to the  Collateral Agent as of the Closing Date, substantially in the form of Exhibit B-1 hereto, as the same may be amended,  supplemented, waived or otherwise modified from time to time.  “Guarantee Obligation”:  as to any Person (the “guaranteeing person”), any obligation of (a) the  guaranteeing person or (b) another Person (including any bank under any letter of credit) to induce the creation of  which the guaranteeing person has issued a reimbursement, counterindemnity or similar obligation, in either case  guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends or other obligations (the “primary  obligations”) of any other third Person (the “primary obligor”) in any manner, whether directly or indirectly, including  any such obligation of the guaranteeing person, whether or not contingent, (i) to purchase any such primary obligation  or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (A) for the purchase or  payment of any such primary obligation or (B) to maintain working capital or equity capital of the primary obligor or  otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase property, securities or services  primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to  make payment of such primary obligation or (iv) otherwise to assure or hold harmless the owner of any such primary  obligation against loss in respect thereof; provided, however, that the term Guarantee Obligation shall not include  endorsements of instruments for deposit or collection in the ordinary course of business. The amount of any Guarantee  Obligation of any guaranteeing person shall be deemed to be the lower of (a) an amount equal to the stated or  determinable amount of the primary obligation in respect of which such Guarantee Obligation is made and (b) the  maximum amount for which such guaranteeing person may be liable pursuant to the terms of the instrument  embodying such Guarantee Obligation, unless such primary obligation and the maximum amount for which such  guaranteeing person may be liable are not stated or determinable, in which case the amount of such Guarantee  Obligation shall be such guaranteeing person’s maximum reasonably anticipated liability in respect thereof as  determined by the Borrower in good faith.  “Guarantor Subordinated Obligations”:  with respect to a Subsidiary Guarantor, any Indebtedness  of such Subsidiary Guarantor (whether outstanding on the Closing Date or thereafter Incurred) that is expressly  subordinated in right of payment to the obligations of such Subsidiary Guarantor under its Guaranty pursuant to a  written agreement.  “Guarantors”:  the collective reference to Parent, Holdings (or any Successor Holding Company in  respect thereof pursuant to and as defined in Subsection 9.16(e) of the Guarantee and Collateral Agreement) and each  Subsidiary Guarantor; individually, a “Guarantor.”  “Guaranty”:  the guaranty of the Loan Document Obligations of the Borrower under the Loan  Documents provided pursuant to the Guarantee and Collateral Agreement, Canadian Guarantee and Collateral  Agreement or pursuant to a guaranty in such other form as may be agreed between the Borrower and the  Administrative Agent.  “Hedge Agreements”: collectively, Interest Rate Agreements, Currency Agreements and  Commodities Agreements.  “Hedging Obligations”:  as to any Person, the obligations of such Person pursuant to any Interest  Rate Agreement, Currency Agreement or Commodities Agreement.  “Holdings”:  Atkore International Holdings Inc., a Delaware corporation, and any successor in  interest thereto.  “Identified Participating Lenders”:  as defined in Subsection 4.4(l)(iii)(3).   

 

  - 29 -  “Identified Qualifying Lenders”:  as defined in Subsection 4.4(l)(iv)(3).  “IFRS”:  International Financial Reporting Standards and applicable accounting requirements set  by the International Accounting Standards Board or any successor thereto (or the Financial Accounting Standards  Board, the Accounting Principles Board of the American Institute of Certified Public Accountants, or any successor  to either such board, or the SEC, as the case may be), as in effect from time to time.  “Immaterial Subsidiary”:  any Subsidiary of the Borrower designated as such in writing by the  Borrower to the Administrative Agent that (i) (x) contributed 5.00% or less of Consolidated EBITDA for the period  of the most recent four consecutive Fiscal Quarters ending prior to the date of such determination for which  consolidated financial statements of Parent are available, and (y) had consolidated assets representing 5.00% or less  of Consolidated Total Assets as of the end of the most recently ended financial period for which consolidated financial  statements of Parent are available; and (ii) together with all other Immaterial Subsidiaries designated pursuant to the  preceding clause (i), (x) contributed 5.00% or less of Consolidated EBITDA for the period of the most recent four  consecutive Fiscal Quarters ending prior to the date of such determination for which consolidated financial statements  of Parent are available, and (y) had consolidated assets representing 5.00% or less of Consolidated Total Assets as of  the end of the most recently ended financial period for which consolidated financial statements of Parent are available.  Any Subsidiary so designated as an Immaterial Subsidiary that fails to meet the foregoing requirements as of the last  day of the period of the most recent four consecutive Fiscal Quarters for which consolidated financial statements of  Parent are available shall continue to be deemed an “Immaterial Subsidiary” hereunder until the date that is 60 days  following the date on which such annual or quarterly financial statements were required to be delivered pursuant to  Subsection 7.1(a) or 7.1(b) with respect to such period.  “Impacted LIBO Rate Interest Period”:  as defined in the definition of “LIBO Rate.”  “Increase Supplement”:  as defined in Subsection 2.8(c).  “Incremental Commitment Amendment”:  as defined in Subsection 2.8(d).  “Incremental Commitments”:  as defined in Subsection 2.8(a).  “Incremental Indebtedness”:  Indebtedness Incurred by the Borrower pursuant to and in accordance  with Subsection 2.8.  “Incremental Lenders”:  as defined in Subsection 2.8(b).  “Incremental Letter of Credit Commitments”:  as defined in Subsection 2.8(a).  “Incremental Loans”:  as defined in Subsection 2.8(d).  “Incremental Revolving Commitments”:  as defined in Subsection 2.8(a).  “Incremental Revolving Loans”:  any loans drawn under an Incremental Revolving Commitment.  “Incremental Term Loan”:  any Incremental Loan made pursuant to an Incremental Term Loan  Commitment.  “Incremental Term Loan Commitments”:  as defined in Subsection 2.8(a).  “Incur”:  issue, assume, enter into any Guarantee of, incur or otherwise become liable for; and the  terms “Incurs,” “Incurred” and “Incurrence” shall have a correlative meaning; provided that any Indebtedness or  Capital Stock of a Person existing at the time such Person becomes a Subsidiary (whether by merger, consolidation,  amalgamation, acquisition or otherwise) shall be deemed to be Incurred by such Subsidiary at the time it becomes a  Subsidiary. Accrual of interest, the accretion of accreted value, the payment of interest in the form of additional  Indebtedness, and the payment of dividends on Capital Stock constituting Indebtedness in the form of additional shares  

 

  - 30 -  of the same class of Capital Stock, will not be deemed to be an Incurrence of Indebtedness. Any Indebtedness issued  at a discount (including Indebtedness on which interest is payable through the issuance of additional Indebtedness)  shall be deemed Incurred at the time of original issuance of the Indebtedness at the initial accreted amount thereof.  “Indebtedness”:  with respect to any Person on any date of determination (without duplication):  (i) the principal of indebtedness of such Person for borrowed money;  (ii) the principal of obligations of such Person evidenced by bonds, debentures, notes or other  similar instruments;  (iii) all reimbursement obligations of such Person in respect of letters of credit, bankers’  acceptances or other similar instruments (the amount of such obligations being equal at any time to the  aggregate then undrawn and unexpired amount of such letters of credit, bankers’ acceptances or other  instruments plus the aggregate amount of drawings thereunder that have not then been reimbursed);  (iv) all obligations of such Person to pay the deferred and unpaid purchase price of property  (except Trade Payables), which purchase price is due more than one year after the date of placing such  property in final service or taking final delivery and title thereto;  (v) all Capitalized Lease Obligations of such Person;  (vi) the redemption, repayment or other repurchase amount of such Person with respect to any  Disqualified Stock of such Person or (if such Person is a Subsidiary of the Borrower other than a Subsidiary  Guarantor) any Preferred Stock of such Subsidiary, but excluding, in each case, any accrued dividends (the  amount of such obligation to be equal at any time to the maximum fixed involuntary redemption, repayment  or repurchase price for such Capital Stock, or if less (or if such Capital Stock has no such fixed price), to the  involuntary redemption, repayment or repurchase price therefor calculated in accordance with the terms  thereof as if then redeemed, repaid or repurchased, and if such price is based upon or measured by the fair  market value of such Capital Stock, such fair market value shall be as determined in good faith by senior  management of the Borrower, the Board of Directors of the Borrower or the Board of Directors of the issuer  of such Capital Stock);  (vii) all Indebtedness of other Persons secured by a Lien on any asset of such Person, whether  or not such Indebtedness is assumed by such Person; provided that the amount of Indebtedness of such Person  shall be the lesser of (A) the fair market value of such asset at such date of determination (as determined in  good faith by the Borrower) and (B) the amount of such Indebtedness of such other Persons;  (viii) all Guarantees by such Person of Indebtedness of other Persons, to the extent so Guaranteed  by such Person; and  (ix) to the extent not otherwise included in this definition, net Hedging  Obligations of such  Person (the amount of any such obligation to be equal at any time to the termination value of such agreement  or arrangement giving rise to such Hedging Obligation that would be payable by such Person at such time).  The amount of Indebtedness of any Person at any date shall be determined as set forth above or as  otherwise provided for in this Agreement, or otherwise shall equal the amount thereof that would appear as a liability  on a balance sheet of such Person (excluding any notes thereto) prepared in accordance with GAAP.  “Indemnified Liabilities”:  as defined in Subsection 11.5(d).  “Indemnitee”:  as defined in Subsection 11.5(d).  “Initial Agreement”:  as defined in Subsection 8.3(c).  

 

  - 31 -  “Initial Lien”:  as defined in Subsection 8.6.  “Initial Term Loan”:  as defined in Subsection 2.1.  “Initial Term Loan Commitment”:  as to any Lender, its obligation to make Initial Term Loans to  the Borrower pursuant to Subsection 2.1 in an aggregate amount not to exceed at any one time outstanding the amount  set forth opposite such Lender’s name in Schedule A under the heading “Initial Term Loan Commitment”; collectively,  as to all the Lenders, the “Initial Term Loan Commitments.” The original aggregate amount of the Initial Term Loan  Commitments on the Closing Date is $400,000,000.  “Initial Term Loan Facility”:  as defined in the definition of “Facility.”  “Initial Term Loan Maturity Date”:  May 26, 2028.  “Insolvency”:  with respect to any Multiemployer Plan, the condition that such Plan is insolvent  within the meaning of Section 4245 of ERISA.  “Installment Date”:  as defined in Subsection 2.2(b).  “Intellectual Property”:  as defined in Subsection 5.9.  “Intercreditor Agreement Supplement”:  as defined in Subsection 10.8(a).  “Interest Election Request”:  a request by the Borrower to convert or continue a Borrowing in  accordance with Section 4.2 and the definition of “Interest Period”, which shall be substantially in the form of Exhibit  F or any other form approved by the Administrative Agent.  “Interest Payment Date”:  (a) with respect to any ABR Loan, the last Business Day of each March,  June, September and December to occur while such Loan is outstanding, and the final maturity date of such Loan, (b)  as to any Eurodollar Loan having an Interest Period of three months or less, the last day of such Interest Period, and  (c) as to any Eurodollar Loan having an Interest Period longer than three months, (i) each day which is three months,  or a whole multiple thereof, after the first day of such Interest Period and (ii) the last day of such Interest Period.   “Interest Period”:  with respect to any Eurodollar Loan,   (a) initially, the period commencing on the borrowing or conversion date, as the case may be,  with respect to such Eurodollar Loan and ending one, three or six months thereafter, as selected by the Borrower in  its Borrowing Request or Interest Election Request, as the case may be, given with respect thereto; and  (b) thereafter, each period commencing on the last day of the next preceding Interest Period  applicable to such Eurodollar Loan and ending one, three or six months thereafter, as selected by the Borrower by  irrevocable notice in an Interest Election Request submitted to the Administrative Agent not later than 12:00 Noon,  New York City time, on the date that is three Business Days prior to the last day of the then current Interest Period  with respect thereto; provided that all of the foregoing provisions relating to Interest Periods are subject to the  following:  (i) if any Interest Period would otherwise end on a day that is not a Business Day,  such Interest Period shall be extended to the next succeeding Business Day unless the result of such extension  would be to carry such Interest Period into another calendar month in which event such Interest Period shall  end on the immediately preceding Business Day;  (ii) the Borrower may not select an Interest Period in respect of any Loans that would  extend beyond the applicable Maturity Date;  

 

  - 32 -  (iii) 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 a calendar month;   (iii) the Borrower shall select Interest Periods so as not to require a scheduled payment  of any Eurodollar Loan during an Interest Period for such Eurodollar Loan; and  (iv) no tenor that has been removed from this definition pursuant to Subsection 4.7(f)  shall be available for specification in such Borrowing Request or Interest Election Request.    “Interest Rate Agreement”:  with respect to any Person, any interest rate protection agreement,  future agreement, option agreement, swap agreement, cap agreement, collar agreement, hedge agreement or other  similar agreement or arrangement (including derivative agreements or arrangements), as to which such Person is a  party or a beneficiary.  “Inventory”:  goods held for sale, lease or use by a Person in the ordinary course of business, net of  any reserve for goods that have been segregated by such Person to be returned to the applicable vendor for credit, as  determined in accordance with GAAP.  “Investment”:  in any Person by any other Person, any direct or indirect advance, loan or other  extension of credit (other than to customers, dealers, licensees, franchisees, suppliers, consultants, directors, officers  or employees of any Person in the ordinary course of business) or capital contribution (by means of any transfer of  cash or other property to others or any payment for property or services for the account or use of others) to, or any  purchase or acquisition of Capital Stock, Indebtedness or other similar instruments issued by, such Person. For  purposes of the definition of “Unrestricted Subsidiary” and Subsection 8.2 only, (i) “Investment” shall include the  portion (proportionate to the Borrower’s equity interest in such Subsidiary) of the Fair Market Value of the net assets  of any Subsidiary of the Borrower at the time that such Subsidiary is designated an Unrestricted Subsidiary; provided  that upon a redesignation of such Subsidiary as a Restricted Subsidiary, the Borrower shall be deemed to continue to  have a permanent “Investment” in an Unrestricted Subsidiary in an amount (if positive) equal to (x) such “Investment”  in such Subsidiary at the time of such redesignation less (y) the portion (proportionate to the Borrower’s equity interest  in such Subsidiary) of the Fair Market Value of the net assets of such Subsidiary at the time of such redesignation,  and (ii) any property transferred to or from an Unrestricted Subsidiary shall be valued at its fair market value (as  determined in good faith by the Borrower) at the time of such transfer and (iii) for purposes of Subsection 8.2(a)(3)(C),  the amount resulting from the redesignation of any Unrestricted Subsidiary as a Restricted Subsidiary shall be the Fair  Market Value of the Investment in such Unrestricted Subsidiary at the time of such redesignation.  Guarantees shall  not be deemed to be Investments. The amount of any Investment outstanding at any time shall be the original cost of  such Investment, reduced (at the Borrower’s option) by any dividend, distribution, interest payment, return of capital,  repayment or other amount or value received in respect of such Investment; provided that to the extent that the amount  of Restricted Payments outstanding at any time pursuant to Subsection 8.2(a) is so reduced by any portion of any such  amount or value that would otherwise be included in the calculation of Consolidated Net Income, such portion of such  amount or value shall not be so included for purposes of calculating the amount of Restricted Payments that may be  made pursuant to Subsection 8.2(a).  “Investment Company Act”:  the Investment Company Act of 1940, as amended from time to time.  “Investment Grade Rating”:  a rating equal to or higher than Baa3 (or the equivalent) by Moody’s  and BBB- (or the equivalent) by S&P, or any equivalent rating by any other Rating Agency.  “Investment Grade Securities”:  (i) securities issued or directly and fully guaranteed or insured by  the United States government or any agency or instrumentality thereof (other than Cash Equivalents); (ii) debt  securities or debt instruments with an Investment Grade Rating, but excluding any debt securities or instruments  constituting loans or advances among the Borrower and its Subsidiaries; (iii) investments in any fund that invests  exclusively in investments of the type described in clauses (i) and (ii) above, which fund may also hold cash pending  investment or distribution; and (iv) corresponding instruments in countries other than the United States customarily  utilized for high quality investments.  

 

  - 33 -  “ISDA Definitions”:  the 2006 ISDA Definitions published by the International Swaps and  Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any  successor definitional booklet for interest rate derivatives published from time to time by the International Swaps and  Derivatives Association, Inc. or such successor thereto.  “Junior Capital”:  collectively, any Indebtedness of any Parent Entity or the Borrower that (i) is not  secured by any asset of the Borrower or any Restricted Subsidiary, (ii) is expressly subordinated to the prior payment  in full of the Loan Document Obligations hereunder on terms reasonably acceptable to the Administrative Agent, (iii)  has a final maturity date that is not earlier than, and provides for no scheduled payments of principal prior to, the date  that is 91 days after the Initial Term Loan Maturity Date (other than through conversion or exchange of any such  Indebtedness for Capital Stock (other than Disqualified Stock) of the Borrower, Capital Stock of any Parent Entity or  any other Junior Capital), (iv) has no mandatory redemption or prepayment obligations other than (a) obligations that  are subject to the prior payment in full in cash of the Term Loans and (b) pursuant to an escrow or similar arrangement  with respect to the proceeds of such Junior Capital and (v) does not require the payment of cash interest until the date  that is 91 days after the Initial Term Loan Maturity Date.  “Junior Debt”:  any Subordinated Obligations and Guarantor Subordinated Obligations.  “Junior Lien Intercreditor Agreement”:  an intercreditor agreement in form and substance  reasonably acceptable to the Administrative Agent, entered into as required by the terms hereof, as amended,  supplemented, waived or otherwise modified from time to time.  “LCT Election”:  as defined in Subsection 1.2(i)(ii).   “LCT Test Date”:  as defined in Subsection 1.2(i)(ii).  “Lead Arrangers”:  JPMorgan Chase Bank, N.A. and Wells Fargo Securities, LLC.  “Lender Joinder Agreement”:  as defined in Subsection 2.8(c).  “Lender-Related Person”:  as defined in Section 11.5.  “Lenders”:  the several lenders from time to time parties to this Agreement together with, in the case  of any such lender that is a bank or financial institution, any affiliate of any such bank or financial institution through  which such bank or financial institution elects, by notice to the Administrative Agent and the Borrower, to make any  Loans available to the Borrower; provided that for all purposes of voting or consenting with respect to (a) any  amendment, supplementation or modification of any Loan Document, (b) any waiver of any of the requirements of  any Loan Document or any Default or Event of Default and its consequences or (c) any other matter as to which a  Lender may vote or consent pursuant to Subsection 11.1, the bank or financial institution making such election shall  be deemed the “Lender” rather than such affiliate, which shall not be entitled to so vote or consent.  “Letter of Credit Facility”:  any facility, in each case with one or more banks or other lenders,  institutions or financing providers providing for letters of credit or bank guarantees, in each case including all  agreements, instruments and documents executed and delivered pursuant to or in connection with any of the foregoing.   “Leverage Excess Proceeds”:  as defined in Subsection 8.4(b).  “Liabilities”:  collectively, any and all claims, obligations, liabilities, causes of action, actions, suits,  proceedings, investigations, judgments, decrees, losses, damages, fees, costs and expenses (including interest,  penalties and fees and disbursements of attorneys, legal counsel, accountants, investment bankers and other  professional advisors), in each case whether incurred, arising or existing with respect to third parties or otherwise at  any time or from time to time.  “LIBO Interpolated Rate”:  at any time, with respect to any Eurodollar Borrowing and for any  Interest Period, the rate per annum (rounded to the same number of decimal places as the LIBO Screen Rate)  

 

  - 34 -  determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error)  to be equal to the rate that results from interpolating on a linear basis between: (a) the LIBO Screen Rate for the longest  period (for which the LIBO Screen Rate is available for Dollars) that is shorter than the Impacted LIBO Rate Interest  Period; and (b) the LIBO Screen Rate for the shortest period (for which the LIBO Screen Rate is available for Dollars)  that exceeds the Impacted LIBO Rate Interest Period, in each case, at such time; provided that if any LIBO Interpolated  Rate shall be less than 0.50%, such rate shall be deemed to be 0.50% for the purposes of this Agreement.  “LIBO Rate”:  with respect to any Eurodollar Borrowing and for any Interest Period, the LIBO  Screen Rate at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest  Period; provided that if the LIBO Screen Rate shall not be available at such time for such Interest Period (an “Impacted  LIBO Rate Interest Period”) with respect to Dollars then the LIBO Rate shall be the LIBO Interpolated Rate.  “LIBO Screen Rate”:  for any day and time, with respect to any Eurodollar Borrowing and for any  Interest Period, the London interbank offered rate as administered by ICE Benchmark Administration (or any other  Person that takes over the administration of such rate) for Dollars for a period equal in length to such Interest Period  as displayed on such day and time on pages LIBOR01 or LIBOR02 of the Reuters screen that displays such rate (or,  in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen  that displays such rate, or on the appropriate page of such other information service that publishes such rate from time  to time as selected by the Administrative Agent in its reasonable discretion); provided that if the LIBO Screen Rate  as so determined would be less than 0.50%, such rate shall be deemed to be 0.50% for the purposes of this Agreement.  “LIBOR” has the meaning assigned to such term in Subsection 1.5.  “Lien”:  any mortgage, pledge, security interest, encumbrance, hypothec, lien or charge of any kind  (including any conditional sale or other title retention agreement or lease in the nature thereof).  “Limited Condition Transaction”:  (x) any acquisition, including by way of merger, amalgamation,  consolidation or other business combination or the acquisition of Capital Stock or otherwise, by one or more of the  Borrower and its Restricted Subsidiaries of any assets, business or Person or any other Investment permitted by this  Agreement whose consummation is not conditioned on the availability of, or on obtaining, third party financing or (y)  any redemption, repurchase, defeasance, satisfaction and discharge or repayment of Indebtedness, Disqualified Stock  or Preferred Stock requiring irrevocable notice in advance of such redemption, repurchase, defeasance, satisfaction  and discharge or prepayment.  “Loan”:  each Initial Term Loan, Incremental Term Loan, Extended Term Loan, Specified  Refinancing Term Loan and Incremental Revolving Loan, as the context shall require; collectively, the “Loans.”  “Loan Document Obligations”:  obligations of the Borrower and the other Loan Parties from time  to time arising under or in respect of the due and punctual payment of (i) the principal of and premium, if any, and  interest (including interest accruing during (or that would accrue but for) the pendency of any bankruptcy, insolvency,  receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Loans,  when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise and  (ii) all other monetary obligations, including fees, costs, expenses and indemnities, whether primary, secondary, direct,  contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy,  insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding),  of the Borrower and the other Loan Parties under this Agreement and the other Loan Documents.  “Loan Documents”:  this Agreement, any Notes, the Guarantee and Collateral Agreement, the  ABL/Term Loan Intercreditor Agreement, each Junior Lien Intercreditor Agreement (on and after the execution  thereof), each Other Intercreditor Agreement (on and after the execution thereof) and any other Security Documents,  each as amended, supplemented, waived or otherwise modified from time to time.  “Loan Parties”:  Parent, Holdings (or any Successor Holding Company in respect thereof pursuant  to and as defined in Subsection 9.16(e) of the Guarantee and Collateral Agreement), the Borrower and the Subsidiary  Guarantors; individually, a “Loan Party.”   

 

  - 35 -  “Management Advances”:  (1) loans or advances made to directors, management members, officers,  employees or consultants of any Parent Entity, the Borrower or any Restricted Subsidiary (x) in respect of travel,  entertainment or moving related expenses incurred in the ordinary course of business, (y) in respect of moving related  expenses incurred in connection with any closing or consolidation of any facility, or (z) in the ordinary course of  business and (in the case of this clause (z)) not exceeding $10,000,000 in the aggregate outstanding at any time, (2)  promissory notes of Management Investors acquired in connection with the issuance of Management Stock to such  Management Investors, (3) Management Guarantees, or (4) other Guarantees of borrowings by Management Investors  in connection with the purchase of Management Stock, which Guarantees are permitted under Subsection 8.1.  “Management Guarantees”:  guarantees (x) of up to an aggregate principal amount outstanding at  any time of $20,000,000 of borrowings by Management Investors in connection with their purchase of Management  Stock or (y) made on behalf of, or in respect of loans or advances made to, directors, officers, employees or consultants  of any Parent Entity, the Borrower or any Restricted Subsidiary (1) in respect of travel, entertainment and moving  related expenses incurred in the ordinary course of business, or (2) in the ordinary course of business and (in the case  of this clause (2)) not exceeding $10,000,000 in the aggregate outstanding at any time.  “Management Indebtedness”:  Indebtedness Incurred to (a) any Person other than a Management  Investor of up to an aggregate principal amount outstanding at any time of $15,000,000, and (b) any Management  Investor, in each case with respect to clauses (a) and (b), to finance the repurchase or other acquisition of Capital Stock  of the Borrower, any Restricted Subsidiary or any Parent Entity (including any options, warrants or other rights in  respect thereof) from any Management Investor, which repurchase or other acquisition of Capital Stock is permitted  by Subsection 8.2.  “Management Investors”:  the management members, officers, directors, employees and other  members of the management of any Parent Entity, the Borrower or any of their respective Subsidiaries, or family  members or relatives of any of the foregoing, or trusts, partnerships or limited liability companies for the benefit of  any of the foregoing, or any of their heirs, executors, successors and legal representatives, who at any date beneficially  own or have the right to acquire, directly or indirectly, Capital Stock of the Borrower, any Restricted Subsidiary or  any Parent Entity.  “Management Stock”:  Capital Stock of the Borrower, any Restricted Subsidiary or any Parent  Entity (including any options, warrants or other rights in respect thereof) held by any of the Management Investors.  “Margin Stock”:  as defined in Regulation U of the Board as from time to time in effect and all  official rulings and interpretations thereunder or thereof.  “Material Adverse Effect”:  a material adverse effect on (a) the business, operations, property or  condition (financial or otherwise) of the Group Members taken as a whole, (b) the validity or enforceability as to the  Loan Parties (taken as a whole) party thereto of the Loan Documents taken as a whole or (c) the rights or remedies of  the Agents and the Lenders under the Loan Documents, in each case taken as a whole.  “Material Subsidiaries”:  Restricted Subsidiaries of the Borrower constituting, individually or in the  aggregate (as if such Restricted Subsidiaries constituted a single Subsidiary), a “significant subsidiary” in accordance  with Rule 1-02 under Regulation S-X.  “Materials of Environmental Concern”:  any pollutants, contaminants, hazardous or toxic substances  or materials or wastes defined, listed, or regulated as such in or under, or which may give rise to liability under, any  applicable Environmental Law, including gasoline, petroleum (including crude oil or any fraction thereof), petroleum  products or by-products, asbestos and polychlorinated biphenyls.  “Maturity Date”:  the Initial Term Loan Maturity Date, for any Extended Term Tranche the  “Maturity Date” set forth in the applicable Extension Amendment, for any Incremental Commitments the “Maturity  Date” set forth in the applicable Incremental Commitment Amendment and for any Specified Refinancing Tranche  the “Maturity Date” set forth in the applicable Specified Refinancing Amendment, as the context may require.   

 

  - 36 -  “Maximum Incremental Facilities Amount”:  at any date of determination, the sum of (i) the Cash  Capped Incremental Amount plus (ii) the Voluntary Prepayment Amount plus (iii) with respect to any Pari Passu  Indebtedness, an unlimited amount if, after giving effect to the Incurrence of such amount (or on the date of the initial  commitment to lend such additional amount after giving pro forma effect to the Incurrence of the entire committed  amount of such additional amount), the Consolidated First Lien Leverage Ratio shall not exceed (x) 3.75 to 1.00 or  (y) in the case of any such Incurrence in connection with a Permitted Acquisition, the Consolidated First Lien Leverage  Ratio for the Applicable Reference Period, calculated on a pro forma basis immediately prior to giving pro forma  effect to such Permitted Acquisition and Incurrence (as set forth in a certificate of a Responsible Officer of the  Borrower delivered to the Administrative Agent at the time of such Incurrence, together with calculations  demonstrating compliance with such ratio (amounts Incurred pursuant to this clause (iii), the “Ratio Incremental  Facility”) (it being understood that (A) pro forma effect shall be given to the entire committed amount of any such  additional amount on the date of initial borrowing of such Indebtedness or entry into the definitive agreement  providing the commitment to fund such Indebtedness and such committed amount may thereafter be borrowed and  reborrowed in whole or in part, from time to time, without further compliance with this clause (iii) and (B) for purposes  of so calculating the Consolidated First Lien Leverage Ratio under this clause (iii), any additional amount Incurred  pursuant to this clause (iii) shall be treated as if such amount is Consolidated First Lien Indebtedness, regardless of  whether such amount is actually secured or is secured by Liens ranking junior to the Liens securing the Loan Document  Obligations); provided that, at the Borrower’s option, capacity under the Ratio Incremental Facility shall be deemed  to be used before capacity under the Cash Capped Incremental Amount or the Voluntary Prepayment Amount.  “Minimum Exchange Tender Condition”:  as defined in Subsection 2.9(b).   “Minimum Extension Condition”:  as defined in Subsection 2.10(g).  “Modifying Lender”:  as defined in Subsection 11.1(h).  “Moody’s”:  Moody’s Investors Service, Inc., and its successors.  “Mortgaged Fee Properties”:  the collective reference to each real property owned in fee by the Loan  Parties as of the Closing Date and listed on Schedule 5.8 or required to be mortgaged as Collateral pursuant to the  requirements of Subsection 7.9, including the land and all buildings, improvements, structures and fixtures now or  subsequently located thereon and owned by any such Loan Party, in each case, unless and until such time as the  Mortgage on such real property is released in accordance with the terms and provisions hereof and thereof.  “Mortgages”:  each of the mortgages and deeds of trust, or similar security instruments executed  and delivered by any Loan Party to the Collateral Agent, in form and substance reasonably acceptable to the  Administrative Agent and Borrower, as the same may be amended, amended and restated, supplemented, or otherwise  modified from time to time.  “Multiemployer Plan”:  a Plan which is a multiemployer plan as defined in Section 4001(a)(3) of  ERISA.  “Net Available Cash”:  from an Asset Disposition or Recovery Event, an amount equal to the cash  payments received (including any cash payments received by way of deferred payment of principal pursuant to a note  or installment receivable or otherwise, but only as and when received, but excluding any other consideration received  in the form of assumption by the acquiring Person of Indebtedness or other obligations relating to the properties or  assets that are the subject of such Asset Disposition or Recovery Event or received in any other non-cash form)  therefrom, in each case net of (i) all legal, title and recording tax expenses, commissions and other fees and expenses  incurred, and all Federal, state, provincial, foreign and local taxes required to be paid or to be accrued as a liability  under GAAP, in each case, as a consequence of, or in respect of, such Asset Disposition or Recovery Event (including  as a consequence of any transfer of funds in connection with the application thereof in accordance with Subsection  8.4), (ii) all payments made, and all installment payments required to be made, on any Indebtedness (other than  Indebtedness secured by Liens on the Collateral that are required by the express terms of this Agreement to be pari  passu with or junior to the Liens on the Term Loan Priority Collateral securing the Loan Document Obligations) (x)  that is secured by any assets subject to such Asset Disposition or involved in such Recovery Event, in accordance with  the terms of any Lien upon such assets, or (y) that must by its terms, or in order to obtain a necessary consent to such  

 

  - 37 -  Asset Disposition, or by applicable law, be repaid out of the proceeds from such Asset Disposition or Recovery Event,  including but not limited to any payments required to be made to increase borrowing availability under any revolving  credit facility, (iii) all distributions and other payments required to be made to minority interest holders in Subsidiaries  or joint ventures as a result of such Asset Disposition or Recovery Event, or to any other Person (other than the Group  Members) owning a beneficial interest in the assets disposed of in such Asset Disposition or subject to such Recovery  Event, (iv) any liabilities or obligations associated with the assets disposed of in such Asset Disposition, or involved  in such Recovery Event and retained, indemnified or insured by the Group Members after such Asset Disposition or  Recovery Event, including pension and other post-employment benefit liabilities, liabilities related to environmental  matters, and liabilities relating to any indemnification obligations associated with such Asset Disposition or Recovery  Event, (v) in the case of an Asset Disposition, the amount of any purchase price or similar adjustment (x) claimed by  any Person to be owed by the Group Members, until such time as such claim shall have been settled or otherwise  finally resolved, or (y) paid or payable by any Group Member, in each case in respect of such Asset Disposition, and  (vi) in the case of any Recovery Event, any amount thereof that constitutes or represents reimbursement or  compensation for any amount previously paid or to be paid by the Borrower or any of its Subsidiaries.  “Net Cash Proceeds”:  with respect to any issuance or sale of any securities of Parent, Holdings, the  Borrower or any Subsidiary by any Group Member, or any capital contribution, or any Incurrence of Indebtedness,  the cash proceeds of such issuance, sale, contribution or Incurrence net of attorneys’ fees, legal counsel’s fees,  accountants’ fees, underwriters’ or placement agents’ fees, discounts or commissions and brokerage, consultant and  other fees actually incurred in connection with such issuance, sale, contribution or Incurrence and net of all taxes paid  or payable as a result, or in respect, thereof.  “Non-Consenting Lender”:  as defined in Subsection 11.1(g).  “Non-Excluded Taxes”:  all Taxes other than Excluded Taxes imposed on or with respect to any  payment made by or on account of any obligation of the Borrower under any Loan Document.   “Non-Extending Lender”:  as defined in Subsection 2.10(e).  “Non-Modifying Lender”:  as defined in Subsection 11.1(h).  “Non-Wholly Owned Subsidiary”:  each Subsidiary that is not a Wholly Owned Subsidiary.  “Note”:  as defined in Subsection 2.2(a).  “NYFRB”:  the Federal Reserve Bank of New York.  “NYFRB Rate”:  for any day, the greater of (a) the Federal Funds Effective Rate in effect on such  day and (b) the Overnight Bank Funding Rate in effect on such day (or for any day that is not a Business Day, for the  immediately preceding Business Day); provided that if none of such rates are published for any day that is a Business  Day, the term “NYFRB Rate” means the rate for a federal funds transaction quoted at 11:00 a.m. on such day received  by the Administrative Agent from a federal funds broker of recognized standing selected by it; provided, further, that  if any of the aforesaid rates as so determined be less than zero, such rate shall be deemed to be zero for purposes of  this Agreement.  “NYFRB’s Website”:  the website of the NYFRB at http://www.newyorkfed.org, or any successor  source.  “Obligations”:  with respect to any Indebtedness, any principal, premium (if any), interest (including  interest accruing on or after the filing of any petition in bankruptcy or for reorganization relating to any Group Member  whether or not a claim for post-filing interest is allowed in such proceedings), fees, charges, expenses, reimbursement  obligations, Guarantees of such Indebtedness (or of Obligations in respect thereof), other monetary obligations of any  nature and all other amounts payable thereunder or in respect thereof.  “Offered Amount”:  as defined in Subsection 4.4(l)(iv)(1).  

 

  - 38 -  “Offered Discount”:  as defined in Subsection 4.4(l)(iv)(1).  “OID”:  as defined in Subsection 2.8(d).  “Organizational Documents”:  with respect to any Person, (a) the articles of incorporation, certificate  of incorporation or certificate of formation (or the equivalent organizational documents) of such Person and (b) the  bylaws or operating agreement (or the equivalent governing documents) of such Person.  “Other Intercreditor Agreement”:  an intercreditor agreement in form and substance reasonably  satisfactory to the Borrower and the Collateral Agent.  “Other Representatives”:  the Lead Arrangers and Fifth Third Bank, Credit Suisse Loan Funding  LLC, Royal Bank of Canada and Citigroup Global Markets Inc., each in its capacity as co-documentation Agent.  “Outstanding Amount”:  with respect to the Loans on any date, the principal amount thereof after  giving effect to any borrowings and prepayments or repayments thereof occurring on such date.   “Overnight Bank Funding Rate”:  for any day, the rate comprised of both overnight federal funds  and overnight Eurodollar borrowings denominated in Dollars by U.S.-managed banking offices of depository  institutions, as such composite rate shall be determined by the NYFRB as set forth on the NYFRB’s Website from  time to time, and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate.  “Parent Entity”:  any of Parent and Holdings.  “Pari Passu Indebtedness”:  Indebtedness secured by a Lien on the Term Loan Priority Collateral  ranking pari passu with the Liens securing the Loan Document Obligations.   “Participant”:  as defined in Subsection 11.6(c).  “Participant Register”:  as defined in Subsection 11.6(b)(v).  “Participating Lender”:  as defined in Subsection 4.4(l)(iii)(2).  “Patriot Act”:  as defined in Subsection 11.18.  “Payment”: as defined in Subsection 10.5(c).  “Payment Notice”:  as defined in Subsection 10.5(c)(ii).  “PBGC”:  the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV  of ERISA (or any successor thereto).  “Permitted Acquisition”: the purchase or other acquisition (including by merger, consolidation or  amalgamation) by any Group Member of all or a majority of the Capital Stock of, or all or substantially all of the  property of, any Person, or of any business or division of any Person or any Investment by a Group Member in a  Restricted Subsidiary that serves to increase the Capital Stock ownership of such Group Member in such Restricted  Subsidiary.  “Permitted Debt Exchange”:  as defined in Subsection 2.9(a).  “Permitted Debt Exchange Notes”:  as defined in Subsection 2.9(a).  ”Permitted Debt Exchange Offer”:  as defined in Subsection 2.9(a).  

 

  - 39 -  “Permitted Investment”:  an Investment by any Group Member in, or consisting of, any of the  following:  (i) a Group Member, or a Person that will, upon the making of such Investment, become a  Restricted Subsidiary (and any Investment held by such Person that was not acquired by such Person, or  made pursuant to a commitment by such Person that was not entered into, in contemplation of so becoming  a Restricted Subsidiary);  (ii) another Person if as a result of such Investment such other Person is merged, amalgamated  or consolidated with or into, or transfers or conveys all or substantially all its assets to, or is liquidated into,  a Group Member (and, in each case, any Investment held by such other Person that was not acquired by such  Person, or made pursuant to a commitment by such Person that was not entered into, in contemplation of  such merger, consolidation, amalgamation or transfer);  (iii) Temporary Cash Investments, Investment Grade Securities or Cash Equivalents;  (iv) receivables owing to any Group Member, if created or acquired in the ordinary course of  business;  (v) any securities or other Investments received as consideration in, or retained in connection  with, sales or other dispositions of property or assets, including Asset Dispositions made in compliance with  Subsection 8.4;  (vi) securities or other Investments received in settlement of debts created in the ordinary  course of business and owing to, or of other claims asserted by, any Group Member, or as a result of  foreclosure, perfection or enforcement of any Lien, or in satisfaction of judgments, including in connection  with any bankruptcy proceeding or other reorganization of another Person;  (vii) Investments in existence or made pursuant to legally binding written commitments in  existence on the Closing Date and set forth on Schedule 1.1(f) and, in each case, any extension, modification,  replacement, reinvestment or renewal thereof; provided that the amount of any such Investment may be  increased in such extension, modification, replacement, reinvestment or renewal only (x) as required by the  terms of such Investment or binding commitment as in existence on the Closing Date or (y) as otherwise  permitted by this Agreement;  (viii) Currency Agreements, Interest Rate Agreements, Commodities Agreements and related  Hedging Obligations, which obligations are Incurred in compliance with Subsection 8.1;  (ix) pledges or deposits (x) with respect to leases or utilities provided to third parties in the  ordinary course of business or (y) otherwise described in the definition of “Permitted Liens” or made in  connection with Liens permitted under Subsection 8.6;  (x) (1) Investments in or by any Special Purpose Subsidiary, or in connection with a Financing  Disposition by, to, in or in favor of any Special Purpose Entity, including Investments of funds held in  accounts permitted or required by the arrangements governing such Financing Disposition or any related  Indebtedness, or (2) any promissory note issued by the Borrower or any Parent Entity; provided that if such  Parent Entity receives cash from the relevant Special Purpose Entity in exchange for such note, an equal cash  amount is contributed by any Parent Entity to the Borrower;  (xi) bonds secured by assets leased to and operated by any Group Member that were issued in  connection with the financing of such assets so long as any Group Member may obtain title to such assets at  any time by paying a nominal fee, canceling such bonds and terminating the transaction;  (xii) [reserved];  

 

  - 40 -  (xiii) any Investment to the extent made using Capital Stock of Parent (other than Disqualified  Stock) or Junior Capital as consideration;  (xiv) Management Advances;  (xv) Investments in Related Businesses in an aggregate amount outstanding at any time not to  exceed an amount equal to the greater of $90,000,000 and 5.50% of Consolidated Total Assets;  (xvi) any transaction to the extent it constitutes an Investment that is permitted by and made in  accordance with the provisions of Subsection 8.5(b) (except transactions described in clauses (i), (ii)(4), (iii),  (v), (vi) and (ix) therein), including any Investment pursuant to any transaction described in Subsection  8.5(b)(ii) (whether or not any Person party thereto is at any time an Affiliate of the Borrower);  (xvii) any Investment by any Captive Insurance Subsidiary in connection with the provision of  insurance to Parent, Holdings, the Borrower or any of its Subsidiaries, which Investment is made in the  ordinary course of business of such Captive Insurance Subsidiary, or by reason of applicable law, rule,  regulation or order, or that is required or approved by any regulatory authority having jurisdiction over such  Captive Insurance Subsidiary or its business, as applicable; and  (xviii) other Investments in an aggregate amount outstanding at any time not to exceed an amount  equal to the greater of $100,000,000 and 6.00% of Consolidated Total Assets.  If any Investment pursuant to clause (xv) or (xviii) above, or Subsection 8.2(b)(vi) or (xv), as  applicable, is made in any Person that is not a Restricted Subsidiary and such Person thereafter (A) becomes a  Restricted Subsidiary or (B) is merged, amalgamated or consolidated into, or transfers or conveys all or substantially  all of its assets to, or is liquidated into, a Group Member, then such Investment shall thereafter be deemed to have  been made pursuant to clause (i) or (ii) above, respectively, and not clause (xv) or (xviii) above, or Subsection  8.2(b)(vi) or (xv), as applicable, to the extent of such Investment remaining at such Subsidiary immediately after its  redesignation as a Restricted Subsidiary.  “Permitted Liens”:  (a) Liens for taxes, assessments or other governmental charges not yet delinquent or the  nonpayment of which in the aggregate would not reasonably be expected to have a material adverse effect on the  Group Members or that are being contested in good faith and by appropriate proceedings if adequate reserves with  respect thereto are maintained on the books of a Group Member in accordance with GAAP;  (b) Liens with respect to outstanding motor vehicle fines and carriers’, warehousemen’s,  mechanics’, landlords’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course of business in  respect of obligations that are not overdue for a period of more than 60 days or that are bonded or that are being  contested in good faith and by appropriate proceedings;  (c) pledges, deposits or Liens in connection with workers’ compensation, professional liability  insurance, insurance programs, unemployment insurance and other social security and other similar legislation or other  insurance-related obligations (including pledges or deposits securing liability to insurance carriers under insurance or  self-insurance arrangements);  (d) pledges, deposits or Liens to secure the performance of bids, tenders, trade, government or  other contracts (other than for borrowed money), obligations for utilities, leases, licenses, statutory obligations,  completion guarantees, surety, judgment, appeal or performance bonds, other similar bonds, instruments or  obligations, and other obligations of a like nature incurred in the ordinary course of business;  (e) easements (including reciprocal easement agreements), rights-of-way, building, zoning  and similar restrictions, utility agreements, covenants, reservations, restrictions, encroachments, charges, and other  similar encumbrances or title defects incurred, or leases or subleases granted to others, in the ordinary course of  

 

  - 41 -  business, which do not in the aggregate materially interfere with the ordinary conduct of the business of the Group  Members, taken as a whole;  (f) Liens existing on, or provided for under written arrangements existing on, the Closing Date  and set forth on Schedule 1.1(e), or (in the case of any such Liens securing Indebtedness of a Group Member existing  or arising under written arrangements existing on the Closing Date) securing any Refinancing Indebtedness in respect  of such Indebtedness (other than Indebtedness Incurred under Subsection 8.1(b)(i) and secured under clause (k)(1) of  this definition), so long as the Lien securing such Refinancing Indebtedness is limited to all or part of the same property  or assets (plus improvements, accessions, proceeds or dividends or distributions in respect thereof) that secured (or  under such written arrangements could secure) the original Indebtedness;  (g) (i) mortgages, liens, security interests, restrictions, encumbrances or any other matters of  record that have been placed by any developer, landlord or other third party on property over which the Group  Members have easement rights or on any leased property and subordination or similar agreements relating thereto and  (ii) any condemnation or eminent domain proceedings affecting any real property;  (h) Liens securing Indebtedness (including Liens securing any Obligations in respect thereof)  consisting of Hedging Obligations, Bank Products Obligations, Purchase Money Obligations or Capitalized Lease  Obligations Incurred in compliance with Subsection 8.1;  (i) Liens arising out of judgments, decrees, orders or awards in respect of which the Group  Members shall in good faith be prosecuting an appeal or proceedings for review, which appeal or proceedings shall  not have been finally terminated, or if the period within which such appeal or proceedings may be initiated shall not  have expired;  (j) leases, subleases, licenses or sublicenses to or from third parties;  (k) Liens securing Indebtedness (including Liens securing any Obligations in respect thereof)  consisting of (1) Indebtedness Incurred in compliance with Subsection 8.1(b)(i) pursuant to (a) this Agreement and  the other Loan Documents, (b) the Senior ABL Facility and the ABL Facility Documents, (c) any Permitted Debt  Exchange Notes (and any Refinancing Indebtedness in respect thereof) and (d) any Rollover Indebtedness (and any  Refinancing Indebtedness in respect thereof); provided, that the only assets securing any such Indebtedness (or  Obligations in respect thereof) shall be Collateral and any such Liens on Collateral pursuant to (x) subclauses (b), (c)  and (d) of this clause (k)(1) shall be subject to the ABL/Term Loan Intercreditor Agreement or an Other Intercreditor  Agreement, as applicable, and (y) subclauses (c) and (d) of this clause (k)(1) which are senior to the Liens on the Term  Loan Priority Collateral securing the Senior ABL Facility and pari passu or junior to the Liens on the Term Loan  Priority Collateral securing the Loan Document Obligations shall be subject to a Junior Lien Intercreditor Agreement  or an Other Intercreditor Agreement, as applicable, (2) Indebtedness Incurred in compliance with clauses (b)(iv),  (b)(v), (b)(vii) or (b)(viii) of Subsection 8.1, (3) Indebtedness Incurred in compliance with clause (b)(xvii) of  Subsection 8.1; provided, that the only assets securing any such Indebtedness (or Obligations in respect thereof) shall  be Collateral and any Liens pursuant to this clause (k)(3) securing such Indebtedness (or Obligations in respect thereof)  shall rank junior to the Liens securing the Loan Document Obligations and shall be subject to a Junior Lien  Intercreditor Agreement, (4) (A) Acquisition Indebtedness Incurred in compliance with Subsection 8.1(b)(x); provided  that with respect to any such Acquisition Indebtedness Incurred (and not assumed) by a Loan Party, such Liens shall  only be on the Collateral and shall be subject to (I) the ABL/Term Loan Intercreditor Agreement or an Other  Intercreditor Agreement, as applicable, and (II) a Junior Lien Intercreditor Agreement or an Other Intercreditor  Agreement, as applicable or (B) any Refinancing Indebtedness Incurred in respect thereof, (5) Indebtedness of any  Restricted Subsidiary that is not a Subsidiary Guarantor (limited, in the case of this clause (k)(5), to Liens on any of  the property and assets of any Restricted Subsidiary that is not a Subsidiary Guarantor), or (6) obligations in respect  of Management Advances or Management Guarantees, in each case under the foregoing clauses (1) through (6)  including Liens securing any Guarantee of any thereof;  (l) Liens existing on property or assets of a Person at, or provided for under written  arrangements existing at, the time such Person becomes a Subsidiary of the Borrower (or at the time the Borrower or  a Restricted Subsidiary acquires such property or assets, including any acquisition by means of a merger,  amalgamation or consolidation with or into any Group Member); provided, however, that such Liens and arrangements  

 

  - 42 -  are not created in connection with, or in contemplation of, such other Person becoming such a Subsidiary (or such  acquisition of such property or assets), and that such Liens are limited to all or part of the same property or assets (plus  improvements, accessions, proceeds or dividends or distributions in respect thereof) that secured (or, under the written  arrangements under which such Liens arose, could secure) the obligations to which such Liens relate; provided,  further, that for purposes of this clause (l), if a Person other than the Borrower is the Successor Borrower with respect  thereto, any Subsidiary thereof shall be deemed to become a Subsidiary of the Borrower, and any property or assets  of such Person or any such Subsidiary shall be deemed acquired by the Borrower or a Restricted Subsidiary, as the  case may be, when such Person becomes such Successor Borrower;  (m) Liens on Capital Stock, Indebtedness or other securities of an Unrestricted Subsidiary or  any joint venture that is not a Subsidiary of the Borrower that secure Indebtedness or other obligations of such  Unrestricted Subsidiary or joint venture, respectively;  (n) any encumbrance or restriction (including, but not limited to, pursuant to put and call  agreements or buy/sell arrangements) with respect to Capital Stock of any joint venture or similar arrangement  pursuant to any joint venture or similar agreement;  (o) Liens securing Indebtedness (including Liens securing any Obligations in respect thereof)  consisting of Refinancing Indebtedness Incurred in respect of any Indebtedness (other than any Indebtedness described  in clause (k)(1) above of this definition) secured by, or securing any refinancing, refunding, extension, renewal or  replacement (in whole or in part) of any other obligation secured by, any other Permitted Liens; provided that any  such new Lien is limited to all or part of the same property or assets (plus improvements, accessions, proceeds or  dividends or distributions in respect thereof) that secured (or, under the written arrangements under which the original  Lien arose, could secure) the obligations to which such Liens relate;  (p) Liens (1) arising by operation of law (or by agreement to the same effect) in the ordinary  course of business, including, without limitation, Liens arising under or by reason of the Perishable Agricultural  Commodities Act of 1930, as amended from time to time, and Liens on goods in favor of customs and revenue  authorities arising as a matter of law to secure customs duties in connection with the importation of such goods, (2)  on property or assets under construction (and related rights) in favor of a contractor or developer or arising from  progress or partial payments by a third party relating to such property or assets, (3) on Margin Stock, if and to the  extent the value of all Margin Stock of the Group Members exceeds 25% of the value of the total assets subject to  Subsection 8.6, (4) on cash set aside at the time of the Incurrence of any Indebtedness or government securities  purchased with such cash, in either case to the extent that such cash or government securities prefund the payment of  interest on such Indebtedness and are held in an escrow account or similar arrangement to be applied for such purpose,  (5) securing or arising by reason of any netting or set-off arrangement entered into in the ordinary course of banking  or other trading activities (including in connection with purchase orders and other agreements with customers), (6) in  favor of any Group Member (other than Liens on property or assets of any Loan Party in favor of any Restricted  Subsidiary that is not a Subsidiary Guarantor), (7) arising out of conditional sale, title retention, consignment or similar  arrangements for the sale of goods entered into in the ordinary course of business, (8) on inventory or other goods and  proceeds securing obligations in respect of bankers’ acceptances issued or created to facilitate the purchase, shipment  or storage of such inventory or other goods, (9) relating to pooled deposit or sweep accounts to permit satisfaction of  overdraft, cash pooling or similar obligations incurred in the ordinary course of business, (10) attaching to commodity  trading or other brokerage accounts incurred in the ordinary course of business, (11) arising in connection with  repurchase agreements permitted under Subsection 8.1 on assets that are the subject of such repurchase agreements or  (12) on any amounts (limited to the principal amount of the applicable Indebtedness and any cash, Cash Equivalents  and Temporary Cash Investments deposited to cover interest and premium in respect of such Indebtedness) held by a  trustee or escrow agent under any indenture or other debt agreement governing Indebtedness issued in escrow pursuant  to customary escrow arrangements (as determined by the Borrower in good faith) pending the release thereof to the  extent that such Lien is limited to such principal amount of Indebtedness (and any cash, Cash Equivalents and  Temporary Cash Investments deposited to cover interest and premium in respect of such Indebtedness) held in escrow,  or under any indenture or other debt agreement pursuant to customary discharge, redemption or defeasance provisions  (as determined by the Borrower in good faith);  

 

  - 43 -  (q) other Liens securing Indebtedness or other obligations that in the aggregate do not exceed  an amount equal to the greater of $65,000,000 and 4.00% of Consolidated Total Assets at the time of Incurrence of  such Indebtedness or other obligations;  (r) Liens securing Indebtedness (including Liens securing any Obligations in respect thereof)  or other obligations of, or in favor of, any Special Purpose Entity, or in connection with a Special Purpose Financing  or otherwise, Incurred pursuant to clause (b)(ix) of Subsection 8.1;  (s) Liens on the Collateral securing Indebtedness (including Liens securing any Obligations in  respect thereof) consisting of Indebtedness Incurred in compliance with Subsection 8.1(b)(xvi); provided that any such  Liens shall be subject to the ABL/Term Loan Intercreditor Agreement or an Other Intercreditor Agreement and, if  such Liens are junior in priority to the Liens on the Collateral securing the Loan Document Obligations, such Liens  shall be subject to a Junior Lien Intercreditor Agreement or an Other Intercreditor Agreement; and  (t) Liens on receivables sold pursuant to clause (xx) of the definition of “Asset Disposition”.  For purposes of determining compliance with this definition, (s) a Lien need not be incurred solely  by reference to one category of Permitted Liens described in this definition but may be incurred under any combination  of such categories (including in part under one such category and in part under any other such category), (t) the  principal amount of Indebtedness secured by a Lien under any category of Permitted Liens shall be determined after  giving effect to the application of proceeds of any such Indebtedness to refinance any such other Indebtedness, (u) in  the event that a Lien (or any portion thereof) meets the criteria of one or more of such categories of Permitted Liens,  the Borrower shall, in its sole discretion, classify or reclassify such Lien (or any portion thereof) in any manner that  complies with this definition, (v) any Lien securing Indebtedness that was permitted to secure such Indebtedness at  the time of the Incurrence of such Indebtedness shall also be permitted to secure any increase in the amount of such  Indebtedness in connection with the accrual of interest, the accretion of accreted value, the payment of interest in the  form of additional Indebtedness and the payment of dividends on Capital Stock constituting Indebtedness in the form  of additional shares of the same class of Capital Stock, (w) [reserved], (x) [reserved], (y) if any Liens securing  Indebtedness are Incurred to refinance Liens securing Indebtedness initially Incurred (or, to refinance Liens Incurred  to refinance Liens initially Incurred) in reliance on a basket measured by reference to a percentage of Consolidated  Total Assets at the time of Incurrence of such Indebtedness or other obligations, and is refinanced by any Indebtedness  or other obligation secured by any Lien incurred by reference to such category of Permitted Liens, and such refinancing  would cause the percentage of Consolidated Total Assets to be exceeded if calculated based on the Consolidated Total  Assets on the date of such refinancing, such percentage of Consolidated Total Assets shall not be deemed to be  exceeded (and such refinancing Lien shall be deemed permitted) so long as the principal amount of such refinancing  Indebtedness or other obligations does not exceed an amount equal to the principal amount of such Indebtedness or  other obligations being refinanced, plus the aggregate amount of fees, underwriting discounts, premiums and other  costs and expenses (including accrued and unpaid interest) Incurred or payable in connection with such refinancing  and (z) if any Indebtedness or other obligation is secured by any Lien outstanding under any category of Permitted  Liens measured by reference to a dollar amount, and is refinanced by any Indebtedness or other obligation secured by  any Lien Incurred by reference to such category of Permitted Liens, and such refinancing (or any subsequent  refinancing) would cause such dollar amount to be exceeded, such dollar amount shall not be deemed to be exceeded  (and such refinancing Lien shall be deemed permitted) so long as the principal amount of such refinancing  Indebtedness or other obligation does not exceed an amount equal to the principal amount of such Indebtedness being  refinanced, plus the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses  (including accrued and unpaid interest) Incurred or payable in connection with such refinancing.   “Permitted Payment”:  as defined in Subsection 8.2(b).  “Person”:  an individual, partnership, limited partnership, limited Liability partnership, corporation,  company, limited liability company, unlimited liability corporation, business trust, joint stock company, trust,  unincorporated association, joint venture, Governmental Authority or other entity of whatever nature.  “PPSA”:  the Personal Property Security Act (Ontario), including the regulations thereto; provided,  that, if perfection or the effect of perfection or non-perfection or the priority of any Lien created hereunder or under  any other Loan Document on the Collateral is governed by the personal property security legislation or other applicable  

 

  - 44 -  legislation with respect to personal property security in effect in a jurisdiction in Canada other than the Province of  Ontario, “PPSA” means the Personal Property Security Act or such other applicable legislation (including the Civil  Code of Quebec) in effect from time to time in such other jurisdiction in Canada for purposes of the provisions hereof  relating to such perfection, effect of perfection or non-perfection or priority.  “Plan”:  at a particular time, any employee benefit plan which is covered by ERISA and in respect  of which the Borrower or a Commonly Controlled Entity is an “employer” as defined in Section 3(5) of ERISA.  “Platform”:  IntraLinksTM, DebtDomain, SyndTrak, ClearPar or any other electronic platform  chosen by the Administrative Agent to be its electronic transmission system.  “Preferred Stock”:  as applied to the Capital Stock of any corporation or company, Capital Stock of  any class or classes (however designated) that by its terms is preferred as to the payment of dividends, or as to the  distribution of assets upon any voluntary or involuntary liquidation or dissolution of such corporation or company,  over Capital Stock of any other class of such corporation or company.  “Prepayment Date”:  as defined in Subsection 4.4(h).  “Prime Rate”: the rate of interest last quoted by The Wall Street Journal as the “Prime Rate” in the  U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the  Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the “bank prime  loan” rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the  Administrative Agent) or any similar release by the Federal Reserve Board (as determined by the Administrative  Agent). Each change in the Prime Rate shall be effective from and including the date such change is publicly  announced or quoted as being effective.  “Pro Forma Basis”: with respect to any calculation of the Consolidated First Lien Leverage Ratio,  the Consolidated Secured Leverage Ratio or the Consolidated Total Leverage Ratio for any measurement period:  (1) if, since the beginning of such period, any Group Member shall have disposed of any  company, any business or any group of assets constituting an operating unit of a business, including any such  disposition occurring in connection with a transaction causing a calculation to be made hereunder, or  designated any Restricted Subsidiary as an Unrestricted Subsidiary (any such disposition or designation, a  “Sale”), the Consolidated EBITDA for such period shall be reduced by an amount equal to the Consolidated  EBITDA (if positive) attributable to the assets that are the subject of such Sale for such period or increased  by an amount equal to the Consolidated EBITDA (if negative) attributable thereto for such period;  (2) if, since the beginning of such period, any Group Member (by merger, amalgamation,  consolidation or otherwise) shall have made an Investment in any Person that thereby becomes a Restricted  Subsidiary, or otherwise acquired any company, any business or any group of assets constituting an operating  unit of a business, including any such Investment or acquisition occurring in connection with a transaction  causing a calculation to be made hereunder, or designated any Unrestricted Subsidiary as a Restricted  Subsidiary (any such Investment, acquisition or designation, a “Purchase”), Consolidated EBITDA for such  period shall be calculated after giving pro forma effect thereto as if such Purchase occurred on the first day  of such period, and  (3) if, since the beginning of such period, any Person became a Restricted Subsidiary or was  merged, amalgamated or consolidated with or into any Group Member, and since the beginning of such  period such Person shall have made any Sale or Purchase that would have required an adjustment pursuant  to clause (1) or (2) above if made by any Group Member since the beginning of such period, Consolidated  EBITDA for such period shall be calculated after giving pro forma effect thereto as if such Sale or Purchase  occurred on the first day of such period.  For purposes of this definition, whenever pro forma effect is to be given to any Sale, Purchase or  other transaction, or the amount of income or earnings relating thereto, the pro forma calculations in respect thereof  

 

  - 45 -  (including in respect of anticipated cost savings or synergies relating to any such Sale, Purchase or other transaction)  shall be as determined in good faith by the Chief Financial Officer or another Responsible Officer of the Borrower;  provided that with respect to cost savings or synergies relating to any Sale, Purchase or other transaction, the related  actions are expected by the Borrower to be taken no later than 18 months after the date of determination and such cost  savings or synergies shall be subject to (and included in) the cap set forth in clause (y) of Consolidated EBITDA.  “Proceeding”:  any claim, litigation, investigation, action, suit, arbitration or administrative, judicial  or regulatory action or proceeding in any jurisdiction.   “PCMLTFA”:  the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada).  “Purchase”:  as defined in clause (2) of the definition of “Pro Forma Basis.”  “PTE”: a prohibited transaction class exemption issued by the U.S. Department of Labor, as any  such exemption may be amended from time to time.  “Purchase Money Obligations”:  any Indebtedness Incurred to finance or refinance the acquisition,  leasing, construction or improvement of property (real or personal) or assets, and whether acquired through the direct  acquisition of such property or assets or the acquisition of the Capital Stock of any Person owning such property or  assets, or otherwise.  “QFC”:  has the meaning assigned to the term “qualified financial contract” in, and shall be  interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).  “QFC Credit Support”:  as defined in Subsection 11.21.  “Qualifying Lender”:  as defined in Subsection 4.4(l)(iv)(3).  “Rating Agency”:  Moody’s or S&P or, if Moody’s or S&P or both shall not make a rating on the  applicable security or instrument publicly available, a nationally recognized statistical rating agency or agencies, as  the case may be, selected by the Borrower which shall be substituted for Moody’s or S&P or both, as the case may be.  “Ratio Incremental Facility”:  as defined in the definition of “Maximum Incremental Facilities  Amount”.  “Receivable”:  a right to receive payment pursuant to an arrangement with another Person pursuant  to which such other Person is obligated to pay, as determined in accordance with GAAP.  “Recovery Event”:  any settlement of or payment in respect of any property or casualty insurance  claim or any condemnation proceeding relating to any asset of any Group Member constituting Collateral giving rise  to Net Available Cash to such Group Member, as the case may be, in excess of $10,000,000, to the extent that such  settlement or payment does not constitute reimbursement or compensation for amounts previously paid by any Group  Member in respect of such casualty or condemnation.  “Reference Period”:  as of any date of determination, the period of the most recent four consecutive  Fiscal Quarters ending prior to such date of determination for which consolidated financial statements of Parent are  available.  “Reference Time”:  with respect to any setting of the then-current Benchmark means (1) if such  Benchmark is the LIBO Rate, 11:00 a.m. (London time) on the day that is two London banking days preceding the  date of such setting or (2) if such Benchmark is not the LIBO Rate, the time determined by the Administrative Agent  in its reasonable discretion.  

 

  - 46 -  “refinance”:  refinance, refund, replace, renew, repay, modify, restate, defer, substitute, supplement,  reissue, resell or extend (including pursuant to any defeasance or discharge mechanism); and the terms “refinances,”  “refinanced” and “refinancing” as used for any purpose in this Agreement shall have a correlative meaning.  “Refinancing Agreement”:  as defined in Subsection 8.3(c).  “Refinancing Indebtedness”: Indebtedness that is Incurred to refinance Indebtedness Incurred  pursuant to this Agreement and the Loan Documents, the Senior ABL Facility, the Unsecured Notes and any  Indebtedness (or unutilized commitment in respect of Indebtedness) existing on the Closing Date and set forth on  Schedule 8.1 or Incurred (or established) in compliance with this Agreement (including Indebtedness of the Borrower  that refinances Indebtedness of any Group Member (to the extent permitted in this Agreement) and Indebtedness of  any Restricted Subsidiary that refinances Indebtedness of another Restricted Subsidiary) including Indebtedness that  refinances Refinancing Indebtedness, and Indebtedness Incurred pursuant to a commitment that refinances any  Indebtedness or unutilized commitment; provided that (1) if the Indebtedness being refinanced is Subordinated  Obligations or Guarantor Subordinated Obligations, the Refinancing Indebtedness (x) has a final Stated Maturity at  the time such Refinancing Indebtedness is Incurred that is equal to or greater than the final Stated Maturity of the  Indebtedness being refinanced (or, if shorter, the Maturity Date of the Initial Term Loans), (y) has a weighted average  life to maturity at the time such Refinancing Indebtedness is Incurred that is equal to or longer than the remaining  weighted average life to maturity of the Indebtedness being refinanced (or, if shorter, the remaining weighted average  life to maturity of the Initial Term Loans) and (z) if an Event of Default under Subsection 9.1(a) or (f) is continuing,  is subordinated in right of payment to the Loan Document Obligations to the same extent as the Indebtedness being  refinanced, (2) such Refinancing Indebtedness is Incurred in an aggregate principal amount (or if issued with original  issue discount, an aggregate issue price) that is equal to or less than the sum of (x) the aggregate principal amount  then outstanding of the Indebtedness being refinanced, plus (y) an amount equal to any unutilized commitment relating  to the Indebtedness being refinanced or otherwise then outstanding under the financing arrangement being refinanced  to the extent the unutilized commitment being refinanced could be drawn in compliance with Subsection 8.1  immediately prior to such refinancing, plus (z) fees, underwriting discounts, premiums and other costs and expenses  (including accrued and unpaid interest) Incurred or payable in connection with such refinancing, (3) Refinancing  Indebtedness shall not include (x) Indebtedness of a Restricted Subsidiary that is not a Subsidiary Guarantor that  refinances Indebtedness of a Loan Party that could not have been initially Incurred by such Restricted Subsidiary  pursuant to Subsection 8.1 or (y) Indebtedness of a Group Member that refinances Indebtedness of an Unrestricted  Subsidiary, (4) if the Indebtedness being refinanced constitutes Additional Obligations, Rollover Indebtedness,  Permitted Debt Exchange Notes or Loan Document Obligations Incurred pursuant to Subsection 8.1(b)(i) (or  Refinancing Indebtedness in respect of the foregoing Indebtedness), (w) the Refinancing Indebtedness complies with  the requirements of the definition of “Additional Obligations” (other than clause (ii) thereof), (x) if the Indebtedness  being refinanced is unsecured and an Event of Default under Subsection 9.1(a) or (f) is continuing, the Refinancing  Indebtedness is unsecured and (y) if the Indebtedness being refinanced is secured by a Lien on Collateral ranking  junior to the Liens on Collateral securing the Loan Document Obligations and an Event of Default under Subsection  9.1(a) or (f) is continuing, the Refinancing Indebtedness is unsecured or secured by a Lien on Collateral ranking junior  to the Liens on Collateral securing the Loan Document Obligations and (5) if the Indebtedness being refinanced was  Indebtedness outstanding under this Agreement, Additional Obligations or required to include the Required Debt  Terms, the mandatory prepayment and redemption terms, covenants and events of default of such Indebtedness or  such Refinancing Indebtedness are either not materially more favorable (taken as a whole, as conclusively determined  by the Borrower in good faith) to the lenders providing such Indebtedness than those terms (taken as a whole)  applicable to the original Indebtedness (except to the extent such terms apply solely to any period after the Maturity  Date or are applied for the benefit of the Term Loans then outstanding).   “Refunding Capital Stock”:  as defined in Subsection 8.2(b)(i).  “Register”:  as defined in Subsection 11.6(b)(iv).  “Regulation D”:  Regulation D of the Board as in effect from time to time.  “Regulation S-X”:  Regulation S-X promulgated by the SEC, as in effect on the Closing Date.  “Regulation T”:  Regulation T of the Board as in effect from time to time.   

 

  - 47 -  “Regulation U”:  Regulation U of the Board as in effect from time to time.   “Regulation X”:  Regulation X of the Board as in effect from time to time.  “Reinvestment Period”:  as defined in Subsection 8.4(b)(i).  “Related Business”:  those businesses in which the Group Members are engaged on the Closing  Date, or that are similar, related, complementary, incidental or ancillary thereto or extensions, developments or  expansions thereof.  “Related Parties”:  with respect to any Person, such Person’s affiliates and the partners, officers,  directors, trustees, employees, equity holders, shareholders, members, attorneys and other legal counsel and advisors,  agents and controlling persons of such Person and of such Person’s affiliates and “Related Party” shall mean any of  them.  “Relevant Governmental Body”: the Federal Reserve Board and/or the NYFRB, or a committee  officially endorsed or convened by the Federal Reserve Board and/or the NYFRB or, in each case, any successor  thereto.  “Relevant Screen Rate”:  the LIBO Screen Rate.  “Reportable Event”:  any of the events set forth in Section 4043(c) of ERISA, other than those events  as to which the 30 day notice period is waived under PBGC Regulation Section 4043 or any successor regulation  thereto.  “Repricing Transaction”:  the prepayment, refinancing, substitution or replacement of all or a  portion of the Initial Term Loans (including, without limitation, as may be effected through any amendment, waiver  or modification to this Agreement relating to the interest rate for, or weighted average yield of, the Initial Term Loans),  (a) if the primary purpose of such prepayment, refinancing, substitution, replacement, amendment, waiver or  modification is (as reasonably determined by the Borrower in good faith) to refinance the Initial Term Loans at a  lower “effective yield” (taking into account, among other factors, margin, upfront or similar fees or original issue  discount shared with all providers of such financing, but excluding the effect of any arrangement, commitment,  underwriting, structuring, syndication or other fees payable in connection therewith that are not shared with all  providers of such financing, and without taking into account any fluctuations in the Adjusted LIBO Rate, but including  any LIBOR floor or similar floor that is higher than the then Adjusted LIBO Rate), (b) if the prepayment, refinancing,  substitution, replacement, amendment, waiver or modification is effectuated by the incurrence by any Group Member  of new Indebtedness, such new Indebtedness is first lien secured bank financing, and (c) if such prepayment,  refinancing, substitution, replacement, amendment, waiver or modification results in first lien secured bank financing  having an “effective yield” (as reasonably determined by the Administrative Agent, in consultation with the Borrower,  consistent with generally accepted financial practices, after giving effect to, among other factors, margin, upfront or  similar fees or original issue discount shared with all providers of such financing (calculated based on assumed four- year average life and without present value discount), but excluding the effect of any arrangement, commitment,  underwriting, structuring, syndication or other fees payable in connection therewith that are not shared with all  providers of such financing, and without taking into account any fluctuations in the Adjusted LIBO Rate, but including  any LIBOR floor or similar floor that is higher than the then applicable Adjusted LIBO Rate) that is less than the  “effective yield” (as reasonably determined by the Administrative Agent, in consultation with the Borrower, on the  same basis) of the Initial Term Loans prior to being so prepaid, refinanced, substituted or replaced or subject to such  amendment, waiver or modification to this Agreement.  “Required Lenders”:  Lenders the Term Credit Percentages of which aggregate to greater than  50.0%.  “Required Debt Terms”: with respect to any Indebtedness, that such Indebtedness (i) does not  provide for a maturity date or weighted average life to maturity earlier than the Initial Term Loan Maturity Date or  shorter than the remaining weighted average life to maturity of the Initial Term Loans, as the case may be (other than  

 

  - 48 -  an earlier maturity date and/or shorter weighted average life to maturity for customary bridge financings, which,  subject to customary conditions, would either be automatically converted into or required to be exchanged for  permanent financing which does not provide for an earlier maturity date or a shorter weighted average life to maturity  than the Initial Term Loan Maturity Date or the remaining weighted average life to maturity of the Initial Term Loans,  as applicable) and (ii) contains mandatory prepayment and redemption terms, covenants and events of default that are  (x) customary for similar Indebtedness in light of then-prevailing market conditions (it being understood and agreed  that such Indebtedness shall include financial maintenance covenants only to the extent any such financial maintenance  covenant is (1) applicable only to periods after the Maturity Date then in effect at the time of incurrence thereof or (2)  included in or added to the Loan Documents for the benefit of the Lenders to the extent and during the time period  such covenant is in effect for the benefit of the holders of such other Indebtedness) (y) when taken as a whole, not  materially more favorable to the lenders or investors providing such Indebtedness, as the case may be, than those set  forth in the Loan Documents are with respect to the Lenders (other than covenants or other provisions applicable only  to periods after the Maturity Date then in effect at the time of incurrence thereof or that are included in or added to the  Loan Documents for the benefit of the Lenders to the extent and during the time period such other covenants or  provisions are in effect for the benefit of the holders of such other Indebtedness) or (z) are reasonably acceptable to  the Administrative Agent, in the case of each of clauses (x) and (y), as conclusively determined by the Borrower in  good faith.   “Requirement of Law”:  as to any Person, the Organizational Documents of such Person, and any  law, statute, ordinance, code, decree, treaty, rule or regulation or determination of an arbitrator or a court or other  Governmental Authority, in each case applicable to or binding upon such Person or any of its material property or to  which such Person or any of its material property is subject, including laws, ordinances and regulations pertaining to  zoning, occupancy and subdivision of real properties; provided that the foregoing shall not apply to any non-binding  recommendation of any Governmental Authority.  “Resolution Authority”:  an EEA Resolution Authority or, with respect to any UK Financial  Institution, a UK Resolution Authority.  “Responsible Officer”:  as to any Person, any of the following officers of such Person:  (a) the chief  executive officer or the president of such Person and, with respect to financial matters, the chief financial officer, the  treasurer or the controller of such Person; (b) any vice president of such Person or, with respect to financial matters,  any assistant treasurer or assistant controller of such Person, who has been designated in writing to the Administrative  Agent or the Collateral Agent as a Responsible Officer by such chief executive officer or president of such Person or,  with respect to financial matters, such chief financial officer of such Person; (c) with respect to Subsection 7.7 and  ERISA matters and without limiting the foregoing, the general counsel of such Person; and (d) any other individual  designated as a “Responsible Officer” for the purposes of this Agreement by the Board of Directors or equivalent  body of such Person.  “Restricted Payment”:  as defined in Subsection 8.2(a).  “Restricted Payment Transaction”:  any Restricted Payment permitted pursuant to Subsection 8.2,  any Permitted Payment, any Permitted Investment, or any transaction specifically excluded from the definition of the  term “Restricted Payment” (including pursuant to the exception contained in clause (i) of such definition and the  parenthetical exclusions contained in clauses (ii) and (iii) of such definition).  “Restricted Subsidiary”:  any Subsidiary of the Borrower other than an Unrestricted Subsidiary.  “Reuters”:  as applicable, Thomson Reuters Corp., Refinitiv, or any successor thereto.  “Rollover Indebtedness”:  Indebtedness of any Loan Party issued to any Lender in lieu of such  Lender’s pro rata portion of any repayment of Term Loans made pursuant to Subsection 4.4(a) or (e); so long as (other  than in connection with a refinancing in full of the Facilities) such Indebtedness would not have a weighted average  life to maturity earlier than the remaining weighted average life to maturity of the Term Loans being repaid.  

 

  - 49 -  “S&P”:  Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies, Inc., and  its successors.  “Sale”:  as defined in clause (1) of the definition of “Pro Forma Basis.”  “Sanctioned Country”:  at any time, a country, region or territory which is itself the subject or target  of any Sanctions (at the time of this Agreement, Crimea, Cuba, Iran, North Korea and Syria).  “Sanctioned Person”:  at any time, (a) any Person listed in any Sanctions-related list of designated  Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S.  Department of State, Global Affairs Canada or any other department of the Government of Canada, the United Nations  Security Council, the European Union, any European Union member state, Her Majesty’s Treasury of the United  Kingdom or other relevant sanctions authority, (b) any Person operating, organized or resident in a Sanctioned  Country, (c) any Person owned or controlled by any such Person or Persons described in the foregoing clauses (a) or  (b), or (d) any Person otherwise the subject of any Sanctions.  “Sanctions”:  all economic or financial sanctions or trade embargoes imposed, administered or  enforced from time to time by (a) the U.S. government, including those administered by the Office of Foreign Assets  Control of the U.S. Department of the Treasury or the U.S. Department of State, or (b) the United Nations Security  Council, Global Affairs Canada or any other department of the Government of Canada, the European Union, any  European Union member state, Her Majesty’s Treasury of the United Kingdom or other relevant sanctions authority.  “SEC”:  the United States Securities and Exchange Commission.  “Secured Parties”:  the “Secured Parties” as defined in the Guarantee and Collateral Agreement.  “Securities Act”:  the Securities Act of 1933, as amended from time to time.  “Security Documents”:  the collective reference to each Mortgage related to any Mortgaged Fee  Property, the Guarantee and Collateral Agreement, the Canadian Guarantee and Collateral Agreement and all other  similar security documents hereafter delivered to the Collateral Agent granting or perfecting a Lien on any asset or  assets of any Loan Party to secure the obligations and liabilities of the Loan Parties hereunder and/or under any of the  other Loan Documents or to secure any guarantee of any such obligations and liabilities, including any security  documents executed and delivered or caused to be delivered to the Collateral Agent pursuant to Subsection 7.9(a),  7.9(b), 7.9(c) or 7.9(d), in each case, as amended, supplemented, waived or otherwise modified from time to time.  “Senior ABL Facility”:  the collective reference to the Senior ABL Facility Agreement, any ABL  Facility Documents, any notes and letters of credit issued pursuant thereto and any guarantee and collateral agreement,  patent and trademark security agreement, mortgages, letter of credit applications and other guarantees, pledge  agreements, security agreements and collateral documents, and other instruments and documents, executed and  delivered pursuant to or in connection with any of the foregoing, in each case as the same may be amended,  supplemented, waived or otherwise modified from time to time, or refunded, refinanced, restructured, replaced,  renewed, repaid, increased or extended from time to time (whether in whole or in part, whether with the original agent  and lenders or other agents and lenders or otherwise, and whether provided under the original Senior ABL Facility  Agreement or one or more other credit agreements, indentures or financing agreements or otherwise, unless such  agreement, instrument or document expressly provides that it is not intended to be and is not a Senior ABL Facility).  Without limiting the generality of the foregoing, the term “Senior ABL Facility” shall include any agreement (i)  changing the maturity of any Indebtedness Incurred thereunder or contemplated thereby, (ii) adding Subsidiaries of  the Borrower as additional borrowers or guarantors thereunder, (iii) increasing the amount of Indebtedness Incurred  thereunder or available to be borrowed thereunder or (iv) otherwise altering the terms and conditions thereof.  “Senior ABL Facility Agreement”:  the Amended and Restated Credit Agreement, dated as of  August 28, 2020, as amended through the date hereof, among Parent, the Borrower, the other borrowers party thereto  from time to time, the lenders and other financial institutions party thereto from time to time and Wells Fargo Bank,  National Association, as administrative agent and collateral agent thereunder, as such agreement may be amended,  

 

  - 50 -  supplemented, waived or otherwise modified from time to time or refunded, refinanced, restructured, replaced,  renewed, repaid, increased or extended from time to time (whether in whole or in part, whether with the original  administrative agent and lenders or other agents and lenders or otherwise, and whether provided under the original  Senior ABL Facility Agreement or one or more other credit agreements or otherwise, unless such agreement,  instrument or other document expressly provides that it is not intended to be and is not a Senior ABL Facility  Agreement). Any reference to the Senior ABL Facility Agreement hereunder shall be deemed a reference to each  Senior ABL Facility Agreement then in existence.  “Senior Indebtedness”: as defined in Subsection 11.1(a)(vii).  “Set”:  the collective reference to Eurodollar Loans of a single Tranche, the then current Interest  Periods with respect to all of which begin on the same date and end on the same later date (whether or not such  Eurodollar Loans shall originally have been made on the same day).  “Settlement Service”:  as defined in Subsection 11.6(b).  “Single Employer Plan”:  any Plan which is covered by Title IV or Section 302 of ERISA or Section  412 of the Code, but which is not a Multiemployer Plan.  “SOFR”:  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”:  the NYFRB (or a successor administrator of the secured overnight  financing rate).  “SOFR Administrator’s Website”:  the NYFRB’s website, 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.  “Solicited Discount Proration”:  as defined in Subsection 4.4(l)(iv)(3).  “Solicited Discounted Prepayment Amount”:  as defined in Subsection 4.4(l)(iv)(1).  “Solicited Discounted Prepayment Notice”:  an irrevocable written notice of a Borrower Solicitation  of Discounted Prepayment Offer made pursuant to Subsection 4.4(l)(iv) substantially in the form of Exhibit Q.  “Solicited Discounted Prepayment Offer”:  the irrevocable written offer by each Lender,  substantially in the form of Exhibit R, submitted following the Administrative Agent’s receipt of a Solicited  Discounted Prepayment Notice.  “Solicited Discounted Prepayment Response Date”:  as defined in Subsection 4.4(l)(iv)(1).  “Solvent” and “Solvency”:  with respect to the Borrower and its Restricted Subsidiaries on a  consolidated basis after giving effect to the Transactions on the Closing Date means (i) the Fair Value and Present  Fair Salable Value of the assets of the Borrower and its Restricted Subsidiaries taken as a whole exceed their Stated  Liabilities and Identified Contingent Liabilities; (ii) the Borrower and its Restricted Subsidiaries taken as a whole do  not have Unreasonably Small Capital; and (iii) the Borrower and its Restricted Subsidiaries taken as a whole will be  able to pay their Stated Liabilities and Identified Contingent Liabilities as they mature (all capitalized terms used in  this definition (other than “Borrower” and “Restricted Subsidiary” which have the meanings set forth in this  Agreement) shall have the meaning assigned to such terms in the form of solvency certificate attached hereto as  Exhibit H).  “Special Purpose Entity”:  (x) any Special Purpose Subsidiary or (y) any other Person that is engaged  in the business of (i) acquiring, selling, collecting, financing or refinancing Receivables, accounts (as defined in the  

 

  - 51 -  Uniform Commercial Code or the PPSA, as applicable, as in effect in any jurisdiction from time to time), other  accounts and/or other receivables, and/or related assets and/or (ii) financing or refinancing in respect of Capital Stock  of any Special Purpose Subsidiary.  “Special Purpose Financing”:  any financing or refinancing of assets consisting of or including  Receivables of any Group Member that have been transferred to a Special Purpose Entity or made subject to a Lien in  a Financing Disposition (including any financing or refinancing in respect of Capital Stock of a Special Purpose  Subsidiary held by another Special Purpose Subsidiary).  “Special Purpose Financing Expense”:  for any period, (a) the aggregate interest expense for such  period on any Indebtedness of any Special Purpose Subsidiary that is a Restricted Subsidiary, which Indebtedness is  not recourse to any Group Member that is not a Special Purpose Subsidiary (other than with respect to Special Purpose  Financing Undertakings), and (b) Special Purpose Financing Fees.  “Special Purpose Financing Fees”:  distributions or payments made directly or by means of  discounts with respect to any participation interest issued or sold in connection with, and other fees paid to a Person  that is not a Restricted Subsidiary in connection with, any Special Purpose Financing.  “Special Purpose Financing Undertakings”:  representations, warranties, covenants, indemnities,  guarantees of performance and (subject to clause (y) of the proviso below) other agreements and undertakings entered  into or provided by any Group Member that the Borrower determines in good faith (which determination shall be  conclusive) are customary or otherwise necessary or advisable in connection with a Special Purpose Financing or a  Financing Disposition; provided that (x) it is understood that Special Purpose Financing Undertakings may consist of  or include (i) reimbursement and other obligations in respect of notes, letters of credit, surety bonds and similar  instruments provided for credit enhancement purposes, (ii) Hedging Obligations or other obligations relating to  Interest Rate Agreements, Currency Agreements or Commodities Agreements entered into by any Group Member, in  respect of any Special Purpose Financing or Financing Disposition, or (iii) any Guarantee in respect of customary  recourse obligations (as determined in good faith by the Borrower, which determination shall be conclusive) in  connection with any Special Purpose Financing or Financing Disposition, including in respect of Liabilities in the  event of any involuntary case commenced with the collusion of any Special Purpose Subsidiary or any Affiliate  thereof, or any voluntary case commenced by any Special Purpose Subsidiary, under any applicable bankruptcy law,  and (y) subject to the preceding clause (x), any such other agreements and undertakings shall not include any  Guarantee of Indebtedness of a Special Purpose Subsidiary by any Group Member that is not a Special Purpose  Subsidiary.  “Special Purpose Subsidiary”:  any Subsidiary of the Borrower that (a) is engaged solely in (x) the  business of (i) acquiring, selling, collecting, financing or refinancing Receivables, accounts (as defined in the Uniform  Commercial Code or the PPSA, as applicable, as in effect in any jurisdiction from time to time) and other accounts  and receivables (including any thereof constituting or evidenced by chattel paper, instruments or general intangibles),  all proceeds thereof and all rights (contractual and other), collateral and other assets relating thereto, and/or (ii) owning  or holding Capital Stock of any Special Purpose Subsidiary and/or engaging in any financing or refinancing in respect  thereof, and (y) any business or activities incidental or related to such business, and (b) is designated as a “Special  Purpose Subsidiary” by the Borrower.  “Specified Discount”:  as defined in Subsection 4.4(l)(ii)(1).  “Specified Discount Prepayment Amount”:  as defined in Subsection 4.4(l)(ii)(1).  “Specified Discount Prepayment Notice”:  an irrevocable written notice of the Borrower Offer of  Specified Discount Prepayment made pursuant to Subsection 4.4(l)(ii) substantially in the form of Exhibit S.  “Specified Discount Prepayment Response”:  the written response by each Lender, substantially in  the form of Exhibit T, to a Specified Discount Prepayment Notice.  “Specified Discount Prepayment Response Date”:  as defined in Subsection 4.4(l)(ii)(1).  

 

  - 52 -  “Specified Discount Proration”:  as defined in Subsection 4.4(l)(ii)(3).  “Specified Existing Term Tranche”:  as defined in Subsection 2.10(a)(ii).  “Specified Refinancing Amendment”:  an amendment to this Agreement effecting the incurrence of  Specified Refinancing Term Loan Facilities in accordance with Subsection 2.11.  “Specified Refinancing Indebtedness”:  Indebtedness incurred by the Borrower pursuant to and in  accordance with Subsection 2.11.  “Specified Refinancing Lenders”:  as defined in Subsection 2.11(b).  “Specified Refinancing Term Loan Facilities”:  as defined in Subsection 2.11(a).  “Specified Refinancing Term Loans”:  as defined in Subsection 2.11(a).  “Specified Refinancing Tranche”:  Specified Refinancing Term Loan Facilities with the same terms  and conditions made on the same day and any Supplemental Term Loan in respect thereof added to such Tranche  pursuant to Subsection 2.8.  “Stated Maturity”:  with respect to any Indebtedness, the date specified in such Indebtedness as the  fixed date on which the payment of principal of such Indebtedness is due and payable, including pursuant to any  mandatory redemption provision (but excluding any provision providing for the repurchase or repayment of such  Indebtedness at the option of the holder thereof upon the happening of any contingency).  “Statutory Reserve Rate”:  a fraction (expressed as a decimal), the numerator of which is the number  one and the denominator of which is the number one minus the aggregate of the maximum reserve percentage  (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the  Federal Reserve Board to which the Administrative Agent is subject with respect to the Adjusted LIBO Rate for  Eurodollar funding (currently referred to as “Eurodollar liabilities” in Regulation D) or any other reserve ratio or  analogous requirement of any central banking or financial regulatory authority imposed in respect of the maintenance  of the Commitments or the funding of the Loans.  Such reserve percentage shall include those imposed pursuant to  Regulation D.  Eurodollar Loans shall be deemed to constitute Eurodollar funding and to be subject to such reserve  requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time  to any Lender under Regulation D or any comparable regulation.  The Statutory Reserve Rate shall be adjusted  automatically on and as of the effective date of any change in any reserve percentage.  “Submitted Amount”:  as defined in Subsection 4.4(l)(iii)(1).  “Submitted Discount”:  as defined in Subsection 4.4(l)(iii)(1).  “Subordinated Obligations”:  any Indebtedness of the Borrower (whether outstanding on the Closing  Date or thereafter Incurred) that is expressly subordinated in right of payment to the Loan Document Obligations  pursuant to a written agreement.  “Subsection 2.10 Additional Amendment”:  as defined in Subsection 2.10(c).  “Subsidiary”:  as to any Person, a corporation, partnership, limited partnership, limited liability  company, unlimited liability corporation or other entity (a) of which shares of stock or other ownership interests having  ordinary voting power (other than stock or such other ownership interests having such power only by reason of the  happening of a contingency) to elect a majority of the Board of Directors or other managers of such corporation,  partnership, limited partnership, limited liability company, unlimited liability corporation or other entity are at the  time owned, directly or indirectly through one or more intermediaries, or both, by such Person, or (b) the management  of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person  and, in the case of this clause (b), which is treated as a consolidated subsidiary for accounting purposes. Unless  

 

  - 53 -  otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary  or Subsidiaries of the Borrower.  “Subsidiary Guarantor”:  (x) each Domestic Subsidiary (other than any Excluded Subsidiary) of the  Borrower which executes and delivers a Guaranty pursuant to Subsection 7.9 or otherwise, in each case, unless and  until such time as the respective Subsidiary Guarantor (a) ceases to constitute a Domestic Subsidiary of the Borrower  in accordance with the terms and provisions hereof, (b) is designated an Unrestricted Subsidiary pursuant to the terms  of this Agreement or (c) is released from all of its obligations under the Guaranty in accordance with the terms and  provisions thereof and (y) each other Subsidiary of the Borrower which the Borrower causes to execute and deliver a  Guaranty pursuant to the last sentence of Subsection 7.9(b) or otherwise, in each case, unless and until such time as  the respective Subsidiary Guarantor (a) ceases to constitute a Subsidiary of the Borrower in accordance with the terms  and provisions hereof, (b) is designated an Unrestricted Subsidiary pursuant to the terms of this Agreement or (c) is  released from all of its obligations under the Guaranty in accordance with terms and provisions thereof.  “Successor Borrower”:  as defined in Subsection 8.7(a)(i).  “Supplemental Revolving Commitments”:  as defined in Subsection 2.8(a).  “Supplemental Term Loan Commitments”:  as defined in Subsection 2.8(a).  “Supplemental Term Loans”:  Term Loans made in respect of Supplemental Term Loan  Commitments.  “Supported QFC”:  as defined in Section 11.21.  “Swap Agreement”:  any agreement with respect to any swap, forward, future or derivative  transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies,  commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of  economic, financial or pricing risk or value or any similar transaction or any combination of these transactions;  provided that no phantom stock or similar plan providing for payments only on account of services provided by current  or former directors, officers, employees or consultants of the Borrower or the Subsidiaries shall be a Swap Agreement.  “Taxes”:  any and all present or future income, stamp or other taxes, levies, imposts, duties, charges,  fees, deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any  Governmental Authority.  “Temporary Cash Investments”:  any of the following:  (i) any investment in (x) direct obligations  of the United States of America, Canada, the United Kingdom, a member state of the European Union or any country  in whose currency funds are being held pending their application in the making of an investment or capital expenditure  by the Borrower or a Restricted Subsidiary in that country or with such funds, or any agency or instrumentality of any  thereof, or obligations Guaranteed by the United States of America, the United Kingdom or a member state of the  European Union or any country in whose currency funds are being held pending their application in the making of an  investment or capital expenditure by the Borrower or a Restricted Subsidiary in that country or with such funds, or  any agency or instrumentality of any of the foregoing, or obligations guaranteed by any of the foregoing or (y) direct  obligations of any foreign country recognized by the United States of America rated at least “A” by S&P or “A-1” by  Moody’s (or, in either case, the equivalent of such rating by such organization or, if no rating of S&P or Moody’s then  exists, the equivalent of such rating by any nationally recognized rating organization), (ii) overnight bank deposits,  and investments in time deposit accounts, certificates of deposit, bankers’ acceptances and money market deposits (or,  with respect to foreign banks, similar instruments) maturing not more than one year after the date of acquisition thereof  issued by (x) any bank or other institutional lender under this Agreement or any Senior ABL Facility or any affiliate  thereof or (y) a bank or trust company that is organized under the laws of the United States of America, any state  thereof or any foreign country recognized by the United States of America having capital and surplus aggregating in  excess of $250,000,000 (or the foreign currency equivalent thereof) and whose long term debt is rated at least “A” by  S&P or “A-1” by Moody’s (or, in either case, the equivalent of such rating by such organization or, if no rating of  S&P or Moody’s then exists, the equivalent of such rating by any nationally recognized rating organization) at the  

 

  - 54 -  time such Investment is made, (iii) repurchase obligations with a term of not more than 30 days for underlying  securities or instruments of the types described in clause (i) or (ii) above entered into with a bank meeting the  qualifications described in clause (ii) above, (iv) Investments in commercial paper, maturing not more than 270 days  after the date of acquisition, issued by a Person (other than that of the Borrower or any of its Subsidiaries), with a  rating at the time as of which any Investment therein is made of “P-2” (or higher) according to Moody’s or “A-2” (or  higher) according to S&P (or, in either case, the equivalent of such rating by such organization or, if no rating of S&P  or Moody’s then exists, the equivalent of such rating by any nationally recognized rating organization), (v)  Investments in securities maturing not more than one year after the date of acquisition issued or fully guaranteed by  any state, commonwealth or territory of the United States of America, or by any political subdivision or taxing  authority thereof, and rated at least “A” by S&P or “A” by Moody’s (or, in either case, the equivalent of such rating  by such organization or, if no rating of S&P or Moody’s then exists, the equivalent of such rating by any nationally  recognized rating organization), (vi) Indebtedness or Preferred Stock (other than of the Borrower or any of its  Subsidiaries) having a rating of “A” or higher by S&P or “A2” or higher by Moody’s (or, in either case, the equivalent  of such rating by such organization or, if no rating of S&P or Moody’s then exists, the equivalent of such rating by  any nationally recognized rating organization), (vii) investment funds investing 95.0% of their assets in securities of  the type described in clauses (i) through (vi) above (which funds may also hold cash pending investment and/or  distribution), (viii) any money market deposit accounts issued or offered by a domestic commercial bank or a  commercial bank organized and located in a country recognized by the United States of America, in each case, having  capital and surplus in excess of $250,000,000 (or the foreign currency equivalent thereof), or investments in money  market funds subject to the risk limiting conditions of Rule 2a-7 (or any successor rule) of the SEC under the  Investment Company Act of 1940, as amended and (ix) similar investments approved by the Board of Directors in the  ordinary course of business.  “Term Credit Percentage”:  as to any Lender at any time, the percentage of the aggregate outstanding  Term Loans (if any) of the Lenders and aggregate unused Term Loan Commitments of the Lenders (if any) then  constituted by such Lender’s outstanding Term Loans (if any) and such Lender’s unused Term Loan Commitments  (if any).  “Term Loan Commitment”:  as to any Lender, the aggregate of its Initial Term Loan Commitments,  Incremental Term Loan Commitment and Supplemental Term Loan Commitments; collectively as to all Lenders the  “Term Loan Commitments.”  “Term Loan Declined Amount”:  as defined in Subsection 4.4(h).  “Term Loan Priority Collateral”:  “Note Priority Collateral” as defined in the ABL/Term Loan  Intercreditor Agreement, whether or not the same remains in full force and effect.  “Term Loans”:  the Initial Term Loans, Incremental Term Loans, Extended Term Loans and  Specified Refinancing Term Loans, as the context shall require.  “Term SOFR”: 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”:  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”:  the determination by the Administrative Agent (in consultation  with the Borrower) 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 or an Early Opt-in Election, as applicable, has previously occurred resulting in a Benchmark  Replacement in accordance with Subsection 4.7 that is not Term SOFR.  

 

  - 55 -  “Trade Payables”:  with respect to any Person, any accounts payable or any indebtedness or  monetary obligation to trade creditors created, assumed or guaranteed by such Person arising in the ordinary course  of business in connection with the acquisition of goods or services.  “Tranche”:  (i) with respect to Term Loans or commitments, refers to whether such Term Loans or  commitments are (1) Initial Term Loans or Initial Term Loan Commitments, (2) Incremental Loans or Incremental  Term Loan Commitments with the same terms and conditions made on the same day and any Supplemental Term  Loans added to such Tranche pursuant to Subsection 2.8, (3) Extended Term Loans (of the same Extension Series) or  (4) Specified Refinancing Term Loan Facilities with the same terms and conditions made on the same day and any  Supplemental Term Loans added to such Tranche pursuant to Subsection 2.8 and (ii) with respect to Incremental  Revolving Loans or commitments, refers to whether such Incremental Revolving Loans or commitments are  Incremental Revolving Commitments or Incremental Revolving Loans with the same terms and conditions made on  the same day and any Supplemental Revolving Commitments and Loans in respect thereof added to such Tranche  pursuant to Subsection 2.8.  “Transactions”:  collectively, any or all of the following (whether taking place prior to, on or  following the date hereof): (i) the entry into this Agreement and the other Loan Documents and the Incurrence of  Indebtedness hereunder, (ii) the issuance of the Unsecured Notes, (iii) the payoff of the Existing Credit Agreement  and (iv) all other transactions relating to any of the foregoing (including payment of fees and expenses related to any  of the foregoing).  “Transferee”:  any Participant or Assignee.  “Transformative Acquisition”: any merger, acquisition, Investment, dissolution, liquidation,  consolidation, amalgamation or disposition, in any such case by any Group Member that is not permitted by the terms  of any Loan Document immediately prior to the consummation of such transaction.  “Treasury Capital Stock”:  as defined in Subsection 8.2(b)(i).  “Type”:  when used in reference to any Loan or Borrowing, refers to whether the rate of interest on  such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted LIBO Rate or the  Alternate Base Rate.  “UCC”:  the Uniform Commercial Code as in effect in the State of New York from time to time.  “UK Financial Institutions”:  any BRRD Undertaking (as such term is defined under the PRA  Rulebook (as amended from 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”:  the Bank of England or any other public administrative authority  having responsibility for the resolution of any UK Financial Institution.  “Unadjusted Benchmark Replacement”:  the applicable Benchmark Replacement excluding the  related Benchmark Replacement Adjustment.  “United States Person”:  any United States person within the meaning of Section 7701(a)(30) of the  Code.  “Unrestricted Cash”:  at any date of determination, (a) the aggregate amount of cash, Cash  Equivalents and Temporary Cash Investments included in the cash accounts that would be listed on the consolidated  balance sheet of Parent prepared in accordance with GAAP as of the end of the most recent four consecutive Fiscal  Quarters ending prior to the date of such determination for which consolidated financial statements of Parent are  available to the extent such cash is not classified as “restricted” for financial statement purposes (unless so classified  

 

  - 56 -  solely because of any provision under the Loan Documents or any other agreement or instrument governing other  Indebtedness that is subject to the ABL/Term Loan Intercreditor Agreement, a Junior Lien Intercreditor Agreement  or any Other Intercreditor Agreement governing the application thereof or because they are subject to a Lien securing  the Loan Document Obligations, the ABL Facility Obligations or other Indebtedness that is subject to the ABL/Term  Loan Intercreditor Agreement, a Junior Lien Intercreditor Agreement or any Other Intercreditor Agreement), plus (b)  the proceeds from any Incurrence of Incremental Term Loans since the date of such consolidated balance sheet and  on or prior to the date of determination that are (in the good faith judgment of the Borrower) intended to be used for  working capital purposes.  “Unrestricted Subsidiary”:  (i) any Subsidiary of the Borrower that at the time of determination is  an Unrestricted Subsidiary, as designated by the Board of Directors in the manner provided below, and (ii) any  Subsidiary of an Unrestricted Subsidiary. The Board of Directors may designate any Subsidiary of the Borrower  (including any newly acquired or newly formed Subsidiary of the Borrower) to be an Unrestricted Subsidiary unless  such Subsidiary or any of its Subsidiaries owns any Capital Stock or Indebtedness of, or owns or holds any Lien on  any property of, the Borrower or any other Restricted Subsidiary of the Borrower that is not a Subsidiary of the  Subsidiary to be so designated; provided, that (A) such designation was made at or prior to the Closing Date, or (B)  the Subsidiary to be so designated has total consolidated assets of $1,000 or less or (C) if such Subsidiary has  consolidated assets greater than $1,000, then such designation would be permitted under Subsection 8.2 and (D)  immediately after such designation, no Event of Default under Subsection 9.1(a) or (f) shall have occurred and be  continuing. The Board of Directors may designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided,  that immediately after giving effect to such designation (1) (x) the Borrower could Incur at least $1.00 of additional  Indebtedness under Subsection 8.1(a) or (y) the Consolidated Fixed Charge Coverage Ratio would be equal to or  greater than it was immediately prior to giving effect to such designation or (z) such Subsidiary shall be a Special  Purpose Subsidiary with no Indebtedness outstanding other than Indebtedness that can be Incurred (and upon such  designation shall be deemed to be Incurred and outstanding) pursuant to Subsection 8.1(b) and (2) immediately after  such designation, no Event of Default under Subsection 9.1(a) or (f) shall have occurred and be continuing; provided,  further, that (x) in no event shall any Subsidiary be designated an Unrestricted Subsidiary if such Subsidiary or any  subsidiary of such Subsidiary owns material Intellectual Property and (y) in no event shall any Subsidiary be  designated an Unrestricted Subsidiary if such Subsidiary is a “restricted subsidiary” under the Unsecured Notes or the  Senior ABL Facility. Any such designation by the Board of Directors shall be evidenced to the Administrative Agent  by promptly filing with the Administrative Agent a copy of the resolution of the Borrower’s Board of Directors giving  effect to such designation and a certificate of a Responsible Officer of the Borrower certifying that such designation  complied with the foregoing provisions.  “Unsecured Notes”: the 4.250% senior unsecured notes issued and sold pursuant to the Unsecured  Notes Indenture.  “Unsecured Notes Indenture”: the Indenture, dated as of May 26, 2021, by and among Parent, as  issuer, Holdings, the Borrower, the Subsidiary Guarantors and The Bank of New York Mellon Trust Company, N.A.,  as trustee, as the same may be amended, restated, amended and restated, modified and/or supplemented from time to  time in accordance with the terms hereof.   “U.S. Special Resolution Regime”:  as defined in Subsection 11.21.  “U.S. Tax Compliance Certificate”:  as defined in Subsection 4.11(b)(ii)(2).  “Voluntary Prepayment Amount”: as of any date, an amount equal to (a) the sum of the aggregate  principal amount of all optional prepayments and buy-backs (with respect to buy-backs, valued at the par value of  Term Loans so acquired) of Term Loans made after the Closing Date and prior to such date (excluding prepayments  made with the proceeds of long-term Indebtedness) less (b) the aggregate principal amount of Incremental Loans  established prior to such date in reliance on the Voluntary Prepayment Amount.   “Wholly Owned Domestic Subsidiary”:  as to any Person, any Domestic Subsidiary of such Person  of which such Person owns, directly or indirectly through one or more Wholly Owned Subsidiaries, all of the Capital  Stock of such Domestic Subsidiary other than directors qualifying shares or shares held by nominees.  

 

  - 57 -  “Wholly Owned Subsidiary”:  as to any Person, any Subsidiary of such Person of which such Person  owns, directly or indirectly through one or more Wholly Owned Subsidiaries, all of the Capital Stock of such  Subsidiary other than directors qualifying shares or shares held by nominees.  “Write-Down and Conversion Powers”:  (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.  1.2 Other Definitional and Interpretive Provisions. Unless otherwise specified therein, all  terms defined in this Agreement shall have the defined meanings when used in any Notes, any other Loan Document  or any certificate or other document made or delivered pursuant hereto.  (a) As used herein and in any Notes and any other Loan Document, and any certificate or other  document made or delivered pursuant hereto or thereto, accounting terms relating to the Borrower and its Restricted  Subsidiaries not defined in Subsection 1.1 and accounting terms partly defined in Subsection 1.1, to the extent not  defined, shall have the respective meanings given to them under GAAP.  (b) The words “hereof”, “herein” and “hereunder” and words of similar import when used in  this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and  Section, Subsection, Schedule and Exhibit references are to this Agreement unless otherwise specified. The words  “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation.” Any  reference herein to any Person shall be construed to include such Person’s successors and assigns permitted hereunder.   (c) For purposes of determining any financial ratio or making any financial calculation for any  fiscal quarter (or portion thereof) ending prior to the Closing Date, the components of such financial ratio or financial  calculation shall be determined on a pro forma basis to give effect to the Transactions as if they had occurred at the  beginning of such four-quarter period.  (d) Unless the Borrower elects otherwise, if any Group Member in connection with any  transaction or series of such related transaction (i) incurs Indebtedness, creates Liens, makes dispositions, makes  Investments, makes Restricted Payments, designates any Subsidiary as restricted or unrestricted or repays any  Indebtedness or takes any other action under or as permitted by a ratio-based basket or exception and (ii) incurs  Indebtedness, creates Liens, makes dispositions, makes Investments, makes Restricted Payments, designates any  Subsidiary as restricted or unrestricted or repays any Indebtedness or takes any other action under a non-ratio-based  basket or exception (which shall occur within five Business Days of the events in clause (i) above), then the applicable  ratio will be calculated with respect to any such action under the applicable ratio-based basket or exception without  regard to any such action under such non-ratio-based basket or exception made in connection with such transaction or  series of related transactions.  (e) Any financial ratios required to be satisfied in order for a specific action to be permitted  under this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the  result to one place more than the number of places by which such ratio is expressed herein and rounding the result up  or down to the nearest number (rounding up if there is no nearest number).  (f) Any references in this Agreement to “cash and/or Cash Equivalents”, “cash, Cash  Equivalents and/or Temporary Cash Investments” or any similar combination of the foregoing shall be construed as  not double counting cash or any other applicable amount which would otherwise be duplicated therein.  

 

  - 58 -  (g) The meanings given to terms defined herein shall be equally applicable to both the singular  and plural forms of such terms.  (h) In connection with any action being taken in connection with a Limited Condition  Transaction, for purposes of determining compliance with any provision of this Agreement which requires that no  Default, Event of Default or specified Event of Default, as applicable, has occurred, is continuing or would result from  any such action, as applicable, such condition shall, at the option of the Borrower, be deemed satisfied, so long as no  Default, Event of Default or specified Event of Default, as applicable, exists on the date the definitive agreements for  such Limited Condition Transaction are entered into or irrevocable notice of redemption, repurchase, defeasance,  satisfaction and discharge or repayment of Indebtedness, Disqualified Stock or Preferred Stock is given. For the  avoidance of doubt, if the Borrower has exercised its option under the first sentence of this clause (h), and any Default,  Event of Default or specified Event of Default, as applicable, occurs following the date the definitive agreements for  the applicable Limited Condition Transaction were entered into or irrevocable notice of redemption, repurchase,  defeasance, satisfaction and discharge or repayment of Indebtedness, Disqualified Stock or Preferred Stock is given  and prior to the consummation of such Limited Condition Transaction, any such Default, Event of Default or specified  Event of Default, as applicable, shall be deemed to not have occurred or be continuing for purposes of determining  whether any action being taken in connection with such Limited Condition Transaction is permitted hereunder.  (i) In connection with any action being taken in connection with a Limited Condition  Transaction, for purposes of:  (i) determining compliance with any provision of this Agreement which requires the  calculation of the Consolidated First Lien Leverage Ratio, the Consolidated Fixed Charge Coverage Ratio,  the Consolidated Secured Leverage Ratio or the Consolidated Total Leverage Ratio; or  (ii) testing baskets set forth in this Agreement (including baskets measured as a percentage of  Consolidated Total Assets);  in each case, at the option of the Borrower (the Borrower’s election to exercise such option in connection with any  Limited Condition Transaction, an “LCT Election”), the date of determination of whether any such action is permitted  hereunder, shall be deemed to be the date the definitive agreements for such Limited Condition Transaction are entered  into or irrevocable notice of redemption, repurchase, defeasance, satisfaction and discharge or repayment of  Indebtedness, Disqualified Stock or Preferred Stock is given, as applicable (the “LCT Test Date”), and if, after giving  pro forma effect to the Limited Condition Transaction and the other transactions to be entered into in connection  therewith (including any Incurrence or Discharge of Indebtedness and the use of proceeds of such Incurrence) as if  they had occurred at the beginning of the most recent four consecutive fiscal quarters ending prior to the LCT Test  Date for which consolidated financial statements of Parent are available, the Borrower could have taken such action  on the relevant LCT Test Date in compliance with such ratio, basket or amount, such ratio, basket or amount shall be  deemed to have been complied with. For the avoidance of doubt, if the Borrower has made an LCT Election and any  of the ratios, baskets or amounts for which compliance was determined or tested as of the LCT Test Date are exceeded  as a result of fluctuations in any such ratio or basket, including due to fluctuations in exchange rates or in Consolidated  EBITDA or Consolidated Total Assets of the Borrower or the Person subject to such Limited Condition Transaction,  at or prior to the consummation of the relevant transaction or action, such baskets, ratios or amounts will not be deemed  to have been exceeded as a result of such fluctuations. If the Borrower has made an LCT Election for any Limited  Condition Transaction, then in connection with any subsequent calculation of any ratio, basket or amount with respect  to the Incurrence of Indebtedness or Liens, or the making of Restricted Payments, Asset Dispositions, mergers, the  conveyance, lease or other transfer of all or substantially all of the assets of the Borrower or the designation of an  Unrestricted Subsidiary on or following the relevant LCT Test Date and prior to the earlier of the date on which such  Limited Condition Transaction is consummated or the definitive agreement for such Limited Condition Transaction  is terminated or expires without consummation of such Limited Condition Transaction, any such ratio, basket or  amount shall be calculated on a pro forma basis assuming such Limited Condition Transaction and other transactions  in connection therewith (including any Incurrence or Discharge of Indebtedness and the use of proceeds thereof) have  been consummated.  1.3 ABL/Term Loan Intercreditor Agreement. This Agreement is an “Original Term Loan  Agreement” under and as defined in the ABL/Term Loan Intercreditor Agreement.  Subsection 8.6 is designated as  

 

  - 59 -  the covenant hereunder applicable for purposes of the definition of “Additional Indebtedness” under the ABL/Term  Loan Intercreditor Agreement.  Subsection 8.1 is designated as the covenant hereunder applicable for purposes of the  definition of “Additional Specified Indebtedness” under the ABL/Term Loan Intercreditor Agreement.  1.4 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 and acquired on the first date of its  existence by the holders of its Capital Stock at such time.  1.5 Interest Rates; LIBOR Notification.  The interest rate on Eurodollar Loans is determined  by reference to the LIBO Rate, which is derived from the London interbank offered rate (“LIBOR”) 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, the U.K. Financial Conduct Authority (“FCA”) publicly announced that: i)  immediately after December 31, 2021, publication of all seven euro LIBOR settings, all seven Swiss Franc LIBOR  settings, the spot next, 1-week, 2-month and 12-month Japanese Yen LIBOR settings, the overnight, 1-week, 2-month  and 12-month British Pound Sterling LIBOR settings, and the 1-week and 2-month U.S. Dollar LIBOR settings will  permanently cease; immediately after June 30, 2023, publication of the overnight and 12-month U.S. Dollar LIBOR  settings will permanently cease; immediately after December 31, 2021, the 1-month, 3-month and 6-month Japanese  Yen LIBOR settings and the 1-month, 3-month and 6-month British Pound Sterling LIBOR settings will cease to be  provided or, subject to consultation by the FCA, be provided on a changed methodology (or “synthetic”) basis and no  longer be representative of the underlying market and economic reality they are intended to measure and that  representativeness will not be restored; and immediately after June 30, 2023, the 1-month, 3-month and 6-month U.S.  Dollar LIBOR settings will cease to be provided or, subject to the FCA’s consideration of the case, be provided on a  synthetic basis and no longer be representative of the underlying market and economic reality they are intended to  measure and that representativeness will not be restored.  There is no assurance that dates announced by the FCA will  not change or that the administrator of LIBOR and/or regulators will not take further action that could impact the  availability, composition, or characteristics of LIBOR or the currencies and/or tenors for which LIBOR is published.   Each party to this agreement should consult its own advisors to stay informed of any such developments.  Public and  private sector industry initiatives are currently underway to identify new or alternative reference rates to be used in  place of LIBOR.  Upon the occurrence of a Benchmark Transition Event, a Term SOFR Transition Event or an Early  Opt-in Election, Subsection 4.7(b) and (c) provide a mechanism for determining an alternative rate of interest.  The  Administrative Agent will promptly notify the Borrower, pursuant to Subsection 4.7(e), of any change to the reference  rate upon which the interest rate on Eurodollar Loans is based.  However, the Administrative Agent does not warrant  or accept any responsibility for, and shall not have any liability with respect to, the administration, submission or any  other matter related to LIBOR or other rates in the definition of “LIBO Rate” or with respect to any alternative or  successor rate thereto, or replacement rate thereof (including, without limitation, (1) any such alternative, successor  or replacement rate implemented pursuant to Subsection 4.7(b) or (c), whether upon the occurrence of a Benchmark  Transition Event, a Term SOFR Transition Event or an Early Opt-in Election, and (2) the implementation of any  Benchmark Replacement Conforming Changes pursuant to Subsection 4.7(d)), including without limitation, whether  the composition or characteristics of any such alternative, successor or replacement reference rate will be similar to,  or produce the same value or economic equivalence of the LIBO Rate or have the same volume or liquidity as did the  London interbank offered rate (or the euro interbank offered rate, as applicable) prior to its discontinuance or  unavailability.  The Administrative Agent and its affiliates and/or other related entities may engage in transactions  that affect the calculation of any alternative, successor or alternative rate (including any Benchmark Replacement)  and/or any relevant adjustments thereto, in each case, in a manner adverse to the Borrower.  SECTION 2    Amount and Terms of Commitments  2.1 Initial Term Loans. Subject to the terms and conditions hereof, each Lender holding an  Initial Term Loan Commitment severally agrees to make, in Dollars, in a single draw on the Closing Date, one or  more term loans (each, an “Initial Term Loan”) to the Borrower in an aggregate principal amount not to exceed the  

 

  - 60 -  amount set forth opposite such Lender’s name in Schedule A under the heading “Initial Term Loan Commitment”, as  such amount may be adjusted or reduced pursuant to the terms hereof, which Initial Term Loans:  (i) except as hereinafter provided, shall, at the option of the Borrower, be incurred and  maintained as, and/or converted into, ABR Loans or Eurodollar Loans; and  (ii) shall be made by each such Lender in an aggregate principal amount which does not exceed  the Initial Term Loan Commitment of such Lender.  Without limitation of Subsection 2.8 and 8.1(b)(i), once repaid, Initial Term Loans incurred  hereunder may not be reborrowed. On the Closing Date (after giving effect to the incurrence of Initial Term Loans on  such date), the Initial Term Loan Commitment of each Lender shall terminate.  2.2 Notes.  (a)  The Borrower agrees that, upon the request to the Administrative Agent by any  Lender made on or prior to the Closing Date or in connection with any assignment pursuant to Subsection 11.6(b), in  order to evidence such Lender’s Loan, the Borrower shall execute and deliver to such Lender a promissory note  substantially in the form of Exhibit A (as amended, supplemented, replaced or otherwise modified from time to time,  a “Note”), in each case with appropriate insertions therein as to payee, date and principal amount, payable to such  Lender and in a principal amount equal to the unpaid principal amount of the applicable Loans made (or acquired by  assignment pursuant to Subsection 11.6(b)) by such Lender to the Borrower. Each Note shall be dated the Closing  Date and shall be payable as provided in Subsection 2.2(b) and provide for the payment of interest in accordance with  Subsection 4.1.  (b) The Initial Term Loans of all the Lenders shall be payable in consecutive quarterly  installments beginning on September 30, 2021 up to and including the Initial Term Loan Maturity Date (subject to  reduction as provided in Subsection 4.4), on the dates (each such date, an “Installment Date”) and in the principal  amounts, subject to adjustment as set forth below, equal to the respective amounts set forth below (together with all  accrued interest thereon) opposite the applicable Installment Dates (or, if less, the aggregate amount of such Initial  Term Loans then outstanding):  Date Amount  Each March 31, June 30, September 30 and  December 31 ending prior to the Initial Term  Loan Maturity Date  0.25% of the aggregate initial principal  amount of the Initial Term Loans on the  Closing Date  Initial Term Loan Maturity Date all unpaid aggregate principal amounts of any  outstanding Initial Term Loans    2.3 Procedure for Initial Term Loan Borrowing. The Borrower shall have given the  Administrative Agent notice (which notice must have been received by the Administrative Agent prior to 12:00 Noon,  New York City time (or such later time as may be agreed by the Administrative Agent in its reasonable discretion),  and shall be irrevocable after funding) at least one Business Day prior to the Closing Date specifying the amount of  the Initial Term Loans to be borrowed.  Upon receipt of such notice, the Administrative Agent shall promptly notify  each applicable Lender thereof.  Each Lender having an Initial Term Loan Commitment will make the amount of its  pro rata share of the Initial Term Loan Commitments available to the Administrative Agent, in each case for the  account of the Borrower at the office of the Administrative Agent specified in Subsection 11.2 prior to 10:00 A.M.,  New York City time (or, if the time period for the Borrower’s delivery of notice was extended, such later time as  agreed to by the Borrower and the Administrative Agent in its reasonable discretion, but in no event less than one hour  following notice), on the Closing Date in funds immediately available to the Administrative Agent. The  Administrative Agent shall on such date credit the account of the Borrower on the books of the Administrative Agent  with the aggregate of the amounts made available to the Administrative Agent by the Lenders and in like funds as  received by the Administrative Agent.  2.4 [Reserved]  

 

  - 61 -  2.5 Repayment of Loans.  (a) The Borrower hereby unconditionally promises to pay to the  Administrative Agent in Dollars for the account of each Lender the then unpaid principal amount of each Initial Term  Loan of such Lender made to the Borrower, on the Initial Term Loan Maturity Date (or such earlier date on which the  Initial Term Loans become due and payable pursuant to Section 9). The Borrower hereby further agrees to pay interest  on the unpaid principal amount of such Initial Term Loans from time to time outstanding from the date hereof until  payment in full thereof at the rates per annum, and on the dates, set forth in Subsection 4.1.  (b) Each Lender shall maintain in accordance with its usual practice an account or accounts  evidencing indebtedness of the Borrower to such Lender resulting from each Loan of such Lender from time to time,  including the amounts of principal and interest payable and paid to such Lender from time to time under this  Agreement.  (c) The Administrative Agent shall maintain the Register pursuant to Subsection 11.6(b), and  a subaccount therein for each Lender, in which shall be recorded (i) the amount of each Loan made hereunder, the  Type thereof and each Interest Period, if any, applicable thereto, (ii) the amount of any principal or interest due and  payable or to become due and payable from the Borrower to each applicable Lender hereunder and (iii) the amount of  any sum received by the Administrative Agent hereunder from the Borrower and each applicable Lender’s share  thereof.  (d) The entries made in the Register and the accounts of each Lender maintained pursuant to  Subsection 2.5(c) shall, to the extent permitted by applicable law, be prima facie evidence of the existence and amounts  of the obligations of the Borrower therein recorded; provided, however, that the failure of any Lender or the  Administrative Agent to maintain the Register or any such account, or any error therein, shall not in any manner affect  the obligation of the Borrower to repay (with applicable interest) the Loans made to the Borrower by such Lender in  accordance with the terms of this Agreement.  2.6 [Reserved]  2.7 [Reserved]  2.8 Incremental Facilities. (a) So long as no Event of Default under Subsection 9.1(a) or (f)  exists or would arise therefrom, the Borrower shall have the right, on behalf of itself, or in the case of Incremental  Loans (as defined below) the proceeds of which will be subject to an escrow or other similar arrangement, an Escrow  Subsidiary (any such Escrow Subsidiary, an “Escrow Borrower”), at any time and from time to time after the Closing  Date, (i) to request new term loan commitments under one or more new term loan credit facilities to be included in  this Agreement (the “Incremental Term Loan Commitments”), (ii) to increase the Existing Term Loans by requesting  new term loan commitments to be added to an Existing Term Tranche (the “Supplemental Term Loan Commitments”),  (iii) to increase any existing Incremental Revolving Commitments by requesting new Incremental Revolving  Commitments be added to an existing tranche of Incremental Revolving Commitments (the “Supplemental Revolving  Commitments”), (iv) to request new commitments under one or more new revolving facilities to be included in this  Agreement (the “Incremental Revolving Commitments”), and (v) to request new letter of credit facility commitments  under one or more new letter of credit facilities to be included in this Agreement (the “Incremental Letter of Credit  Commitments” and, together with the Incremental Term Loan Commitments, Supplemental Term Loan  Commitments, Supplemental Revolving Commitments and the Incremental Revolving Commitments, the  “Incremental Commitments”); provided that, (i) the aggregate amount of Incremental Commitments permitted  pursuant to this Subsection 2.8 shall not exceed, at the time the respective Incremental Commitment becomes effective  (and after giving effect to the Incurrence of Indebtedness in connection therewith and the application of proceeds of  any such Indebtedness, including to refinance other Indebtedness), an amount that could then be Incurred under this  Agreement in compliance with the Maximum Incremental Facilities Amount, (ii) if any portion of an Incremental  Commitment is to be incurred in reliance on clause (iii) of the definition of “Maximum Incremental Facilities  Amount”, the Borrower shall have delivered a certificate to the Administrative Agent, certifying compliance with the  financial test set forth in such clause (together with calculations demonstrating compliance with such test) and (iii) if  any portion of an Incremental Commitment is to be incurred in reliance on clause (i) or clause (ii) of the definition of  “Maximum Incremental Facilities Amount”, the Borrower shall have delivered a certificate to the Administrative  Agent, certifying the amount of the available basket in such clause to be used for the incurrence of such Incremental  Commitment. Any loans made in respect of any such Incremental Commitment (other than Supplemental Term Loan  

 

  - 62 -  Commitments and Supplemental Revolving Commitments) shall be made by creating a new Tranche. Each  Incremental Commitment made available pursuant to this Subsection 2.8 shall be in a minimum aggregate amount of  at least $10,000,000 and in integral multiples of $5,000,000 in excess thereof (or in such lower minimum amounts or  multiples as agreed to by the Administrative Agent in its reasonable discretion).  (b) Each request from the Borrower pursuant to this Subsection 2.8 shall set forth the requested  amount and proposed terms of the relevant Incremental Commitments. The Incremental Commitments (or any portion  thereof) may be made by any existing Lender or by any other bank or other financial institution (any such bank or  other financial institution, an “Additional Incremental Lender”, and the Additional Incremental Lenders together with  any existing Lender providing Incremental Commitments, the “Incremental Lenders”); provided that if such  Additional Incremental Lender is not already a Lender hereunder or an Affiliate of a Lender hereunder or an Approved  Fund, the consent of the Administrative Agent and (in the case of a Supplemental Revolving Commitment) the consent  of any swingline lender or letter of credit issuing lender that would have credit exposure to such Additional  Incremental Lender (in each case, such consent not to be unreasonably withheld or delayed) shall be required . The  Borrower may agree, in its sole discretion, to accept a lesser amount of any Incremental Commitment than originally  requested. In the event there are Lenders and Additional Incremental Lenders that have committed to an Incremental  Commitment in excess of the maximum amount requested (or permitted), then the Borrower shall have the right to  allocate such commitments on whatever basis the Borrower determines is appropriate.  (c) Supplemental Term Loan Commitments and Supplemental Revolving Commitments shall  become commitments under this Agreement pursuant to a supplement specifying the Tranche of Term Loans or  Incremental Revolving Commitments to be increased, executed by the Borrower and each increasing Lender  substantially in the form attached hereto as Exhibit I-1 (the “Increase Supplement”) or by each Additional Incremental  Lender substantially in the form attached hereto as Exhibit I-2 (the “Lender Joinder Agreement”), as the case may be,  which shall be delivered to the Administrative Agent for recording in the Register. Upon effectiveness of the Lender  Joinder Agreement each Additional Incremental Lender shall be a Lender for all intents and purposes of this  Agreement and the term loan made pursuant to such Supplemental Term Loan Commitment shall be a Term Loan or  commitments made pursuant to such Supplemental Revolving Commitment shall be Incremental Revolving  Commitments, as applicable. Each Increase Supplement and/or Lender Joinder Agreement may, without the consent  of any other Lender, effect such amendments to any Loan Documents (including amendments to Subsection 2.2(b) to  increase the amortization payments thereunder to allow for the applicable Incremental Loans to be fungible with an  existing Tranche of Term Loans hereunder) as may be necessary or appropriate, in the opinion of the Borrower and  the Administrative Agent, to effect the provisions of this Subsection 2.8(c).  (d) Incremental Commitments (other than Supplemental Term Loan Commitments and  Supplemental Revolving Commitments) shall become commitments under this Agreement pursuant to an amendment  (an “Incremental Commitment Amendment”) to this Agreement and, as appropriate, the other Loan Documents,  executed by the Borrower, an Escrow Borrower (if applicable), and each applicable Incremental Lender. An  Incremental Commitment Amendment may, without the consent of any other Lender, effect such amendments to any  Loan Documents as may be necessary or appropriate, in the opinion of the Borrower and the Administrative Agent,  to effect the provisions of this Subsection 2.8; provided, however, that (i) (A) the Incremental Commitments will not  be guaranteed by any Subsidiary of the Borrower other than the Subsidiary Guarantors (it being understood that the  primary obligation of an Escrow Borrower shall not constitute a guarantee by a Subsidiary that is not a Subsidiary  Guarantor), will be guaranteed by Parent and Holdings, and (other than with respect to proceeds of such Incremental  Commitments which are subject to an escrow or other similar arrangement and any related deposit of cash, Cash  Equivalents or Temporary Cash Investments to cover interest and premium in respect of such Incremental  Commitments) will be secured on a pari passu by the same Collateral securing the Loan Document Obligations, (B)  the Incremental Commitments and any incremental loans drawn thereunder (the “Incremental Loans”) shall rank pari  passu in right of payment with the Loan Document Obligations and (C) no Incremental Commitment Amendment  may provide for (I) any Incremental Commitment or any Incremental Loans to be secured by any Lien on any asset  (other than proceeds of Incremental Loans which are subject to an escrow or similar arrangement and any related  deposit of cash, Cash Equivalents or Temporary Cash Investments to cover interest and premium in respect of such  Incremental Loans) of any Loan Party that does not also secure the Loan Document Obligations and (II) so long as  any Initial Term Loans are outstanding, any mandatory prepayment from the Net Cash Proceeds of Asset Dispositions  (other than any Asset Disposition in respect of any assets, business or Person the acquisition of which was financed,  all or in part, with Incremental Loans provided pursuant to such Incremental Commitment Amendment and the  

 

  - 63 -  disposition of which was contemplated by any definitive agreement in respect of such acquisition) or Recovery Event  or from Excess Cash Flow, to the extent the Net Cash Proceeds of such Asset Disposition or Recovery Event or such  Excess Cash Flow are required to be applied to repay the Initial Term Loans pursuant to Subsection 4.4(e), on more  than a ratable basis with the Initial Term Loans (after giving effect to any amendment in accordance with Subsection  11.1(d)(vi)); (ii) no Lender will be required to provide any such Incremental Commitment unless it so agrees; (iii) the  maturity date and the weighted average life to maturity of such Incremental Term Loan Commitments shall be no  earlier than or shorter than, as the case may be, the Initial Term Loan Maturity Date or the remaining weighted average  life to maturity of the Initial Term Loans, as applicable (other than an earlier maturity date and/or shorter weighted  average life to maturity (1) for customary bridge financings, which, subject to customary conditions (as determined  by the Borrower in good faith), would either be automatically converted into or required to be exchanged for  permanent financing which does not provide for an earlier maturity date or a shorter weighted average life to maturity  than the Initial Term Loan Maturity Date or the remaining weighted average life to maturity of the Initial Term Loans,  as applicable or (2) pursuant to an escrow or similar arrangement with respect to the proceeds of such Incremental  Term Loans); (iv) the interest rate margins and (subject to clause (iii) above) amortization schedule applicable to the  loans made pursuant to the Incremental Commitments shall be determined by the Borrower and the applicable  Incremental Lenders; provided that in the event that the applicable interest rate margins for any floating rate broadly  syndicated term loans denominated in Dollars with a Stated Maturity that is earlier than 12 months following the Initial  Term Loan Maturity Date Incurred by the Borrower under any Incremental Term Loan Commitment, made on or prior  to the 12-month anniversary of the Closing Date, are higher than the applicable interest rate margin for the Initial  Term Loans by more than 50 basis points, then the effective interest rate margin for the applicable Initial Term Loans  at the time such Incremental Commitments become effective shall be increased to the extent necessary so that the  applicable interest rate margin for such Initial Term Loans is equal to the applicable interest rate margins for such  Incremental Term Loan Commitment minus 50 basis points (the number of basis points by which the then effective  interest rate margin is increased, the “Increased Amount”); provided, further that, in determining the applicable interest  rate margins for the applicable Initial Term Loans and the Incremental Term Loans, (A) original issue discount  (“OID”) or upfront fees payable generally to all participating Lenders in lieu of OID (which shall be deemed to  constitute like amounts of OID) payable by the Borrower to the Lenders under such Initial Term Loans or any  Incremental Term Loan in the initial primary syndication thereof shall be included (with OID and upfront fees being  equated to interest based on an assumed four-year life to maturity) (provided that, if such Initial Term Loans are issued  in a manner such that all such Initial Term Loans were not issued with a uniform amount of OID or upfront fees within  the Tranche of Initial Term Loans, the amount of OID and upfront fees attributable to the entire Tranche of Initial  Term Loans shall be determined on a weighted average basis); (B) any arrangement, structuring or other fees payable  in connection with the Incremental Term Loans that are not shared with all Additional Incremental Lenders providing  such Incremental Term Loans shall be excluded; (C) any amendments to the Applicable Margin on the applicable  Initial Term Loans that became effective subsequent to the Closing Date but prior to the time of such Incremental  Term Loans shall also be included in such calculations, (D) if the Incremental Term Loans include an interest rate  floor greater than the interest rate floor applicable to the applicable Initial Term Loans, such increased amount shall  be equated to the applicable interest rate margin for purposes of determining whether an increase to the Applicable  Margin for such Initial Term Loans shall be required, to the extent an increase in the interest rate floor for such Initial  Term Loans would cause an increase in the interest rate then in effect thereunder, and in such case the interest rate  floor (but not the Applicable Margin) applicable to such Initial Term Loans shall be increased by such amount, (E) if  the Incremental Term Loans include an interest rate floor lower than the interest rate floor applicable to the Initial  Term Loans or do not include any interest rate floor, to the extent a reduction in the interest rate floor for such Initial  Term Loans would cause a reduction in the interest rate then in effect thereunder, an amount equal to the difference  between the interest rate floor applicable to the Initial Term Loans and the interest rate floor applicable to such  Incremental Term Loans (which shall be deemed to equal 0% for any Incremental Term Loans without any interest  rate floor), but which in any event shall not exceed the maximum amount by which a reduction in the interest rate  floor applicable to the Initial Term Loans would cause a reduction in the interest rate then in effect thereunder, shall  reduce the applicable interest rate margin of the applicable Incremental Terms Loans for purposes of determining  whether an increase to the Applicable Margin for such Initial Term Loans shall be required and (F) if the applicable  Initial Term Loans include a pricing grid the interest rate margins in such pricing grid which are not in effect at the  time the applicable Incremental Commitments become effective shall also each be increased by an amount equal to  the Increased Amount; (v) such Incremental Commitment Amendment may provide (1) for the inclusion, as  appropriate, of Additional Incremental Lenders in any required vote or action of the Required Lenders or of the  Lenders of each Tranche hereunder, (2) class voting and other class protections for any additional credit facilities, (3)  for the amendment of the definitions of “Additional Obligations”, “Disqualified Stock”, “Junior Capital” and  

 

  - 64 -  “Refinancing Indebtedness” and Subsection 8.8(b), in each case only to extend the maturity date and the weighted  average life to maturity requirements, from the Initial Term Loan Maturity Date and remaining weighted average life  to maturity of the Initial Term Loans to the extended maturity date and the remaining weighted average life to maturity  of such Incremental Term Loans, as applicable, (4) in the case of an Incremental Revolving Commitment or an  Incremental Letter of Credit Commitment, add appropriate modifications to Subsection 2.8 to provide for “amend and  extend” mechanics for Incremental Revolving Commitments and Incremental Letter of Credit Commitments (and  related Obligations) and appropriate modifications to Subsection 2.10 to provide for “refinancing facilities” mechanics  for Incremental Revolving Commitments and Incremental Letter of Credit Commitments (and related Obligations), in  each case under this clause (4) as otherwise agreed by the Borrower, the Administrative Agent and the Lenders  providing such Commitments (including any swingline lender or issuing lender) and (5) for the amendment of clause  (iii) of the definition of “Additional Obligations” to provide for the applicable mandatory prepayment protections to  apply to such Incremental Term Loans; and (vi) the other terms and documentation in respect thereof, to the extent  not consistent with this Agreement as in effect prior to giving effect to the Incremental Commitment Amendment,  shall otherwise be reasonably satisfactory to the Borrower; provided that to the extent such terms and documentation  are not consistent with, in the case of Incremental Term Loans, the terms and documentation governing the Initial  Term Loans (except to the extent permitted by clauses (iii), (iv) or (v) above), they shall be reasonably satisfactory to  the Borrower and the Administrative Agent.  2.9 Permitted Debt Exchanges. (a) Notwithstanding anything to the contrary contained in this  Agreement, pursuant to one or more offers (each, a “Permitted Debt Exchange Offer”) made from time to time by the  Borrower to all Lenders (other than any Lender that, if requested by the Borrower, is unable to certify that it is either  a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act) or an institutional “accredited  investor” (as defined in Rule 501 under the Securities Act)) with outstanding Term Loans of a particular Tranche, as  selected by the Borrower, the Borrower may from time to time following the Closing Date consummate one or more  exchanges of Term Loans of such Tranche for Additional Obligations in the form of notes (such notes, “Permitted  Debt Exchange Notes,” and each such exchange a “Permitted Debt Exchange”), so long as the following conditions  are satisfied:  (i) the aggregate principal amount (calculated on the face amount thereof) of Term Loans exchanged  shall be equal to or more than the aggregate principal amount (calculated on the face amount thereof) of Permitted  Debt Exchange Notes issued in exchange for such Term Loans, (ii) the aggregate principal amount (calculated on the  face amount thereof) of all Term Loans exchanged by the Borrower pursuant to any Permitted Debt Exchange shall  automatically be cancelled and retired by the Borrower on the date of the settlement thereof (and, if requested by the  Administrative Agent, any applicable exchanging Lender shall execute and deliver to the Administrative Agent an  Assignment and Acceptance, or such other form as may be reasonably requested by the Administrative Agent, in  respect thereof pursuant to which the respective Lender assigns its interest in the Term Loans being exchanged  pursuant to the Permitted Debt Exchange to the Borrower for immediate cancellation), (iii) if the aggregate principal  amount of all Term Loans (calculated on the face amount thereof) tendered by Lenders in respect of the relevant  Permitted Debt Exchange Offer (with no Lender being permitted to tender a principal amount of Term Loans which  exceeds the principal amount of the applicable Tranche actually held by it) shall exceed the maximum aggregate  principal amount of Term Loans offered to be exchanged by the Borrower pursuant to such Permitted Debt Exchange  Offer, then the Borrower shall exchange Term Loans subject to such Permitted Debt Exchange Offer tendered by such  Lenders ratably up to such maximum amount based on the respective principal amounts so tendered, (iv) each such  Permitted Debt Exchange Offer shall be made on a pro rata basis to the Lenders (other than any Lender that, if  requested by the Borrower, is unable to certify that it is either a “qualified institutional buyer” (as defined in Rule  144A under the Securities Act) or an institutional “accredited investor” (as defined in Rule 501 under the Securities  Act)) based on their respective aggregate principal amounts of outstanding Term Loans of the applicable Tranche, (v)  all documentation in respect of such Permitted Debt Exchange shall be consistent with the foregoing and all written  communications generally directed to the Lenders in connection therewith shall be in form and substance consistent  with the foregoing and made in consultation with the Administrative Agent and (vi) any applicable Minimum  Exchange Tender Condition shall be satisfied. Notwithstanding anything to the contrary herein, no Lender shall have  any obligation to agree to have any of its Loans exchanged pursuant to any Permitted Debt Exchange Offer.  (b) With respect to all Permitted Debt Exchanges effected by the Borrower pursuant to this  Subsection 2.9, (i) such Permitted Debt Exchanges (and the cancellation of the exchanged Term Loans in connection  therewith) shall not constitute voluntary or mandatory payments or prepayments for purposes of Subsection 4.4 and  (ii) such Permitted Debt Exchange Offer shall be made for not less than $10,000,000 in aggregate principal amount  of Term Loans (or, in each case, such lower principal amount as agreed to by the Administrative Agent in its reasonable  

 

  - 65 -  discretion); provided that subject to the foregoing clause (ii), the Borrower may at its election specify as a condition  (a “Minimum Exchange Tender Condition”) to consummating any such Permitted Debt Exchange that a minimum  amount (to be determined and specified in the relevant Permitted Debt Exchange Offer in the Borrower’s discretion)  of Term Loans be tendered.  (c) In connection with each Permitted Debt Exchange, the Borrower shall provide the  Administrative Agent at least ten Business Days’ (or such shorter period as may be agreed by the Administrative  Agent) prior written notice thereof, and the Borrower and the Administrative Agent, acting reasonably, shall mutually  agree to such procedures as may be necessary or advisable to accomplish the purposes of this Subsection 2.9 and  without conflict with Subsection 2.9(d); provided that the terms of any Permitted Debt Exchange Offer shall provide  that the date by which the relevant Lenders are required to indicate their election to participate in such Permitted Debt  Exchange shall be not less than five Business Days following the date on which the Permitted Debt Exchange Offer  is made (or such shorter period as may be agreed to by the Administrative Agent in its reasonable discretion).  (d) The Borrower shall be responsible for compliance with, and hereby agrees to comply with,  all applicable securities and other laws in connection with each Permitted Debt Exchange, it being understood and  agreed that (x) neither the Administrative Agent nor any Lender assumes any responsibility in connection with the  Borrower’s compliance with such laws in connection with any Permitted Debt Exchange (other than the Borrower’s  reliance on any certificate delivered by a Lender pursuant to Subsection 2.9(a) above for which such Lender shall bear  sole responsibility) and (y) each Lender shall be solely responsible for its compliance with any applicable “insider  trading” laws and regulations to which such Lender may be subject under the Securities Exchange Act of 1934, as  amended.  2.10 Extension of Term Loans.  (a) The Borrower may at any time and from time to time request  that all or a portion of the Term Loans of one or more Tranches (including any Extended Term Loans) existing at the  time of such request (each, an “Existing Term Tranche” and the Term Loans of such Tranche, the “Existing Term  Loans”) be converted to extend the scheduled maturity date(s) of any payment of principal with respect to all or a  portion of any principal amount of any Existing Term Tranche (any such Existing Term Tranche which has been so  extended, an “Extended Term Tranche”, and the Term Loans of such Tranche, the “Extended Term Loans”) and to  provide for other terms consistent with this Subsection 2.10; provided that (i) any such request shall be made by the  Borrower to all Lenders with Term Loans, with a like maturity date (whether under one or more Tranches) on a pro  rata basis (based on the aggregate outstanding principal amount of the applicable Term Loans), and (ii) any applicable  Minimum Extension Condition shall be satisfied unless waived by the Borrower. In order to establish any Extended  Term Tranche, the Borrower shall provide a notice to the Administrative Agent (who shall provide a copy of such  notice to each of the Lenders of the applicable Existing Term Tranche) (an “Extension Request”) setting forth the  proposed terms of the Extended Term Tranche to be established, which terms shall be identical to those applicable to  the Existing Term Tranche from which they are to be extended (the “Specified Existing Term Tranche”), except (x)  all or any of the final maturity dates of such Extended Term Tranches may be delayed to later dates than the final  maturity dates of the Specified Existing Term Tranche, (y) (A) the interest margins with respect to the Extended Term  Tranche may be higher or lower than the interest margins for the Specified Existing Term Tranche and/or (B)  additional fees may be payable to the Lenders providing such Extended Term Tranche in addition to or in lieu of any  increased margins contemplated by the preceding clause (A), in each case to the extent provided in the applicable  Extension Amendment, and (z) amortization with respect to the Extended Term Tranche may be greater or lesser than  amortization for the Specified Existing Term Tranche, so long as the Extended Term Tranche does not have a weighted  average life to maturity shorter than the remaining weighted average life to maturity of the Specified Existing Term  Tranche; provided that, notwithstanding anything to the contrary in this Subsection 2.10 or otherwise, assignments  and participations of Extended Term Tranches shall be governed by the same or, at the Borrower’s discretion, more  restrictive assignment and participation provisions than the assignment and participation provisions applicable to  Initial Term Loans set forth in Subsection 11.6. No Lender shall have any obligation to agree to have any of its Existing  Term Loans converted into an Extended Term Tranche pursuant to any Extension Request. Any Extended Term  Tranche shall constitute a separate Tranche of Term Loans from the Specified Existing Term Tranches and from any  other Existing Term Tranches (together with any other Extended Term Tranches so established on such date).  (b) The Borrower shall provide the applicable Extension Request at least ten Business Days  (or such shorter period as the Administrative Agent may agree in its reasonable discretion) prior to the date on which  Lenders under the applicable Existing Term Tranche(s) are requested to respond. Any Lender (an “Extending Lender”)  

 

  - 66 -  wishing to have all or a portion of its Specified Existing Term Tranche converted into an Extended Term Tranche  shall notify the Administrative Agent (each, an “Extension Election”) on or prior to the date specified in such  Extension Request of the amount of its Specified Existing Term Tranche that it has elected to convert into an Extended  Term Tranche. In the event that the aggregate amount of the Specified Existing Term Tranche subject to Extension  Elections exceeds the amount of Extended Term Tranches requested pursuant to the Extension Request, the Specified  Existing Term Tranches subject to Extension Elections shall be converted to Extended Term Tranches on a pro rata  basis based on the amount of Specified Existing Term Tranches included in each such Extension Election. In  connection with any extension of Term Loans pursuant to this Subsection 2.10 (each, an “Extension”), the Borrower  shall agree to such procedures regarding timing, rounding and other administrative adjustments to ensure reasonable  administrative management of the credit facilities hereunder after such Extension, as may be established by, or  acceptable to, the Administrative Agent, in each case acting reasonably to accomplish the purposes of this Subsection  2.10. The Borrower may amend, revoke or replace an Extension Request pursuant to procedures reasonably acceptable  to the Administrative Agent at any time prior to the date (the “Extension Request Deadline”) on which Lenders under  the applicable Existing Term Tranche are requested to respond to the Extension Request. Any Lender may revoke an  Extension Election at any time prior to 5:00 p.m. on the date that is two Business Days prior to the Extension Request  Deadline, at which point the Extension Election becomes irrevocable (unless otherwise agreed by the Borrower). The  revocation of an Extension Election prior to the Extension Request Deadline shall not prejudice any Lender’s right to  submit a new Extension Election prior to the Extension Request Deadline.  (c) Extended Term Tranches shall be established pursuant to an amendment (an “Extension  Amendment”) to this Agreement (which may include amendments to (i) provisions related to maturity, interest  margins, fees or amortization referenced in clauses (x) through (z) of Subsection 2.10(a), (ii) the definitions of  “Additional Obligations”, “Disqualified Stock”, “Junior Capital” and “Refinancing Indebtedness” and Subsection  8.8(b) to amend the maturity date and the weighted average life to maturity requirements, from the Initial Term Loan  Maturity Date and remaining weighted average life to maturity of the Initial Term Loans to the extended maturity date  and the remaining weighted average life to maturity of such Extended Term Tranche, as applicable and (iii) clause  (iii) of the definition of “Additional Obligations” to provide for the applicable mandatory prepayment protections to  apply to such Extended Term Tranche, and which in each case, except to the extent expressly contemplated by the  third to last sentence of this Subsection 2.10(c) and notwithstanding anything to the contrary set forth in Subsection  11.1, shall not require the consent of any Lender other than the Extending Lenders with respect to the Extended Term  Tranches established thereby) executed by the Loan Parties, the Administrative Agent, and the Extending Lenders.  No Extension Amendment shall provide for any Extended Term Tranche in an aggregate principal amount that is less  than $10,000,000 (or such lower principal amount as agreed to by the Administrative Agent in its reasonable  discretion). Notwithstanding anything to the contrary in this Agreement and without limiting the generality or  applicability of Subsection 11.1 to any Subsection 2.10 Additional Amendments, any Extension Amendment may  provide for additional terms and/or additional amendments other than those referred to or contemplated above (any  such additional amendment, a “Subsection 2.10 Additional Amendment”) to this Agreement and the other Loan  Documents; provided that such Subsection 2.10 Additional Amendments do not become effective prior to the time  that such Subsection 2.10 Additional Amendments have been consented to (including pursuant to consents applicable  to holders of any Extended Term Tranches provided for in any Extension Amendment) by such of the Lenders, Loan  Parties and other parties (if any) as may be required in order for such Subsection 2.10 Additional Amendments to  become effective in accordance with Subsection 11.1; provided, further, that no Extension Amendment may provide  for any Extended Term Tranche to be secured by any Collateral or other assets of any Loan Party that does not also  secure the Specified Existing Term Tranche. It is understood and agreed that each Lender has consented for all  purposes requiring its consent, and shall at the effective time thereof be deemed to consent to each amendment to this  Agreement and the other Loan Documents authorized by this Subsection 2.10 and the arrangements described above  in connection therewith except that the foregoing shall not constitute a consent on behalf of any Lender to the terms  of any Subsection 2.10 Additional Amendment.  In connection with any Extension Amendment, at the request of the  Administrative Agent or the Extending Lenders, the Borrower shall deliver an opinion of counsel reasonably  acceptable to the Administrative Agent as to the enforceability of this Agreement as amended by such Extension  Amendment, and such of the other Loan Documents (if any) as may be amended thereby.  (d) Notwithstanding anything to the contrary contained in this Agreement, on any date on  which any Existing Term Tranche is converted to extend the related scheduled maturity date(s) in accordance with  clause (a) above (an “Extension Date”), in the case of the Specified Existing Term Tranche of each Extending Lender,  the aggregate principal amount of such Specified Existing Term Tranche shall be deemed reduced by an amount equal  

 

  - 67 -  to the aggregate principal amount of Extended Term Tranche so converted by such Lender on such date, and such  Extended Term Tranches shall be established as a separate Tranche from the Specified Existing Term Tranche and  from any other Existing Term Tranches (together with any other Extended Term Tranches so established on such  date).  (e) If, in connection with any proposed Extension Amendment, any Lender declines to consent  to the applicable extension on the terms and by the deadline set forth in the applicable Extension Request (each such  other Lender, a “Non-Extending Lender”) then the Borrower may, on notice to the Administrative Agent and the Non- Extending Lender, (i) replace such Non-Extending Lender by causing such Lender to (and such Lender shall be  obligated to) assign pursuant to Subsection 11.6 (with the assignment fee and any other costs and expenses to be paid  by the Borrower in such instance) all of its rights and obligations under this Agreement to one or more assignees;  provided that neither the Administrative Agent nor any Lender shall have any obligation to the Borrower to find a  replacement Lender; provided, further, that the applicable assignee shall have agreed to provide Extended Term Loans  on the terms set forth in such Extension Amendment; and provided, further, that all obligations of the Borrower owing  to the Non-Extending Lender relating to the Existing Term Loans so assigned shall be paid in full by the assignee  Lender (or, at its option, the Borrower) to such Non-Extending Lender concurrently with such Assignment and  Acceptance or (ii) if no Event of Default exists under Subsection 9.1(a) or (f), upon notice to the Administrative Agent,  prepay the Existing Term Loans, in whole or in part, subject to Subsection 4.12, without premium or penalty.  In  connection with any such replacement under this Subsection 2.10, if the Non-Extending Lender does not execute and  deliver to the Administrative Agent a duly completed Assignment and Acceptance and/or any other documentation  necessary or appropriate to reflect such replacement by the later of (A) the date on which the replacement Lender  executes and delivers such Assignment and Acceptance and/or such other documentation and (B) the date as of which  all obligations of the Borrower owing to the Non-Extending Lender relating to the Existing Term Loans so assigned  shall be paid in full by the assignee Lender (or, at its option, the Borrower) to such Non-Extending Lender, then such  Non-Extending Lender shall be deemed to have executed and delivered such Assignment and Acceptance and/or such  other documentation as of such date, the Administrative Agent shall record such assignment in the Register and the  Borrower shall be entitled (but not obligated) to execute and deliver such Assignment and Acceptance and/or such  other documentation on behalf of such Non-Extending Lender.  (f) Following any Extension Date, with the written consent of the Borrower, any  Non- Extending Lender may elect to have all or a portion of its Existing Term Loans deemed to be an Extended Term Loan  under the applicable Extended Term Tranche on any date (each date a “Designation Date”) prior to the maturity date  of such Extended Term Tranche; provided that such Lender shall have provided written notice to the Borrower and  the Administrative Agent at least 10 Business Days prior to such Designation Date (or such shorter period as the  Administrative Agent may agree in its reasonable discretion). Following a Designation Date, the Existing Term Loans  held by such Lender so elected to be extended will be deemed to be Extended Term Loans of the applicable Extended  Term Tranche, and any Existing Term Loans held by such Lender not elected to be extended, if any, shall continue to  be “Existing Term Loans” of the applicable Tranche.  (g) With respect to all Extensions consummated by the Borrower pursuant to this Subsection  2.10, (i) such Extensions shall not constitute optional or mandatory payments or prepayments for purposes of  Subsection 4.4 and (ii) no Extension Request is required to be in any minimum amount or any minimum increment;  provided that the Borrower may at its election specify as a condition (a “Minimum Extension Condition”) to  consummating any such Extension that a minimum amount (to be determined and specified in the relevant Extension  Request in the Borrower’s sole discretion and may be waived by the Borrower) of Existing Term Loans of any or all  applicable Tranches be extended. The Administrative Agent and the Lenders hereby consent to the transactions  contemplated by this Subsection 2.10 (including, for the avoidance of doubt, payment of any interest, fees or premium  in respect of any Extended Term Loans on such terms as may be set forth in the relevant Extension Request) and  hereby waive the requirements of any provision of this Agreement (including Subsections 4.4 and 4.8) or any other  Loan Document that may otherwise prohibit any such Extension or any other transaction contemplated by this  Subsection 2.10.  2.11 Specified Refinancing Facilities.  (a) The Borrower may, from time to time, add one or  more new term loan facilities (the “Specified Refinancing Term Loan Facilities”) to the Facilities to refinance all or  any portion of any Tranche of Term Loans then outstanding under this Agreement; provided that (i) the Specified  Refinancing Term Loan Facilities will not be guaranteed by any Subsidiary of the Borrower other than the Subsidiary  

 

  - 68 -  Guarantors, will be guaranteed by Parent and Holdings, and will be secured on a pari passu or (at the Borrower’s  option) junior basis by the same Collateral securing the Loan Document Obligations (so long as any such Specified  Refinancing Amendments (and related Obligations) are subject to a Junior Lien Intercreditor Agreement or an Other  Intercreditor Agreement), (ii) the Specified Refinancing Term Loan Facilities and any term loans drawn thereunder  (the “Specified Refinancing Term Loans”) shall rank pari passu in right of payment with or (at the Borrower’s option)  junior to the Loan Document Obligations, (iii) no Specified Refinancing Amendment may provide for any Specified  Refinancing Term Loan Facility or any Specified Refinancing Term Loans to be secured by any Collateral or other  assets of any Loan Party that do not also secure the Loan Document Obligations, (iv) the Specified Refinancing Term  Loan Facilities will have such pricing, amortization (subject to clause (vi) below) and optional and mandatory  prepayment terms as may be agreed by the Borrower and the applicable Lenders thereof, (v) the maturity date and the  weighted average life to maturity of the Specified Refinancing Term Loan Facilities shall be no earlier than or shorter  than, as the case may be, the Maturity Date of the Tranche of Term Loans being refinanced or the remaining weighted  average life to maturity of the Term Loans being refinanced, as applicable (other than an earlier maturity date and/or  shorter weighted average life to maturity for customary bridge financings, which, subject to customary conditions,  would either be automatically converted into or required to be exchanged for permanent financing which does not  provide for an earlier maturity date or a shorter weighted average life to maturity than the Maturity Date of the Tranche  of Term Loans being refinanced or the remaining weighted average life to maturity of the Term Loans being  refinanced, as applicable), (vi) the Net Cash Proceeds of such Specified Refinancing Term Loan Facility shall be  applied, substantially concurrently with the incurrence thereof, to the pro rata prepayment of outstanding Loans being  so refinanced, in each case pursuant to Section 4.4; and (vii) the Specified Refinancing Term Loan Facilities shall not  have a principal or commitment amount greater than the Loans being refinanced plus the aggregate amount of all fees,  underwriting discounts, premiums and other costs and expenses incurred in connection with such refinancing.  (b) Each request from the Borrower pursuant to this Subsection 2.11 shall set forth the  requested amount and proposed terms of the relevant Specified Refinancing Term Loan Facility. The Specified  Refinancing Term Loan Facilities (or any portion thereof) may be made by any existing Lender or by any other bank  or financial institution (any such bank or other financial institution, an “Additional Specified Refinancing Lender”,  and the Additional Specified Refinancing Lenders together with any existing Lender providing Specified Refinancing  Term Loan Facilities, the “Specified Refinancing Lenders”); provided that if such Additional Specified Refinancing  Lender is not already a Lender hereunder or an Affiliate of a Lender hereunder or an Approved Fund, the consent of  the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required.  (c) Specified Refinancing Term Loan Facilities shall become facilities under this Agreement  pursuant to a Specified Refinancing Amendment to this Agreement and, as appropriate, the other Loan Documents,  executed by the Borrower and each applicable Specified Refinancing Lender. Any Specified Refinancing Amendment  may, without the consent of any other Lender, effect such amendments to any Loan Documents as may be necessary  or appropriate, in the opinion of the Borrower and the Administrative Agent, to effect the provisions of this Subsection  2.11, in each case on terms consistent with this Section 2.11.  (d) Any loans made in respect of any such Specified Refinancing Term Loan Facility shall be  made by creating a new Tranche. Each Specified Refinancing Term Loan Facility made available pursuant to this  Subsection 2.11 shall be in a minimum aggregate amount of at least $10,000,000 and in integral multiples of  $5,000,000 in excess thereof (or such lower minimum amounts or multiples as agreed to by the Administrative Agent  in its reasonable discretion).  (e) The Administrative Agent shall promptly notify each Lender as to the effectiveness of each  Specified Refinancing Amendment. Each of the parties hereto hereby agrees that, upon the effectiveness of any  Specified Refinancing Amendment, this Agreement shall be deemed amended to the extent (but only to the extent)  necessary to reflect the existence and terms of the Specified Refinancing Term Loan Facilities incurred pursuant  thereto (including the addition of such Specified Refinancing Term Loan Facilities as separate “Facilities” and  “Tranches” hereunder and treated in a manner consistent with the Facilities being refinanced, including for purposes  of prepayments and voting). Any Specified Refinancing Amendment may, without the consent of any Person other  than the Borrower, the Administrative Agent (such consent not to be unreasonably withheld, delayed or conditioned)  and the Lenders providing such Specified Refinancing Term Loan Facilities, effect such amendments to this  Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the  Administrative Agent and the Borrower, to effect the provisions of this Section 2.11.   

 

  - 69 -  SECTION 3    [Reserved]  SECTION 4    General Provisions Applicable to Loans  4.1 Interest Rates and Payment Dates. (a) Each Eurodollar Loan shall bear interest for each  day during each Interest Period with respect thereto at a rate per annum equal to the Adjusted LIBO Rate determined  for such day plus the Applicable Margin in effect for such day.  (b) Each ABR Loan shall bear interest for each day that it is outstanding at a rate per annum  equal to the Alternate Base Rate in effect for such day plus the Applicable Margin in effect for such day.  (c) If all or a portion of (i) the principal amount of any Loan, (ii) any interest payable thereon  or (iii) any other amount payable hereunder shall not be paid when due (whether at the Stated Maturity, by acceleration  or otherwise), such overdue amount shall bear interest at a rate per annum which is (x) in the case of overdue principal,  the rate that would otherwise be applicable thereto pursuant to the relevant foregoing provisions of this Subsection  4.1, plus 2.00% and (y) in the case of other amounts (including overdue interest), the rate described in clause (b) of  this Subsection 4.1 for ABR Loans accruing interest at the Alternate Base Rate plus 2.00%, in each case from the date  of such nonpayment until such amount is paid in full (after as well as before judgment).  (d) Interest shall be payable in arrears on each Interest Payment Date; provided that interest  accruing pursuant to clause (c) of this Subsection 4.1 shall be payable from time to time on demand exercised in  accordance with Subsection 9.2.  (e) It is the intention of the parties hereto to comply strictly with applicable usury laws;  accordingly, it is stipulated and agreed that the aggregate of all amounts which constitute interest under applicable  usury laws, whether contracted for, charged, taken, reserved, or received, in connection with the indebtedness  evidenced by this Agreement or any Notes, or any other document relating or referring hereto or thereto, now or  hereafter existing, shall never exceed under any circumstance whatsoever the maximum amount of interest allowed  by applicable usury laws.  (f) Criminal Code (Canada). Notwithstanding anything to the contrary contained in any Loan  Document, if any provision of any Loan Document would obligate any Credit Party to make any payment of interest  or other amount payable to the Administrative Agent or the Lenders in an amount or calculated at a rate which would  be prohibited by law or would result in a receipt by the Administrative Agent or such Lender of interest at a criminal  rate (as construed under the Criminal Code (Canada)), then notwithstanding that provision, that amount or rate shall  be deemed to have been adjusted with retroactive effect to the maximum amount or rate of interest, as the case may  be, as would not be so prohibited by law or result in a receipt by the Administrative Agent or such Lender of interest  at a criminal rate, the adjustment to be effected, to the extent necessary, as follows: (i) firstly, by reducing the amount  or rate of interest required to be paid to the Administrative Agent or such Lender under this Agreement; and (ii)  thereafter, by reducing any fees, commissions, premiums and other amounts required to be paid to the Administrative  Agent or such Lender which would constitute interest for purposes of Section 347 of the Criminal Code (Canada).  (g) Interest Act (Canada). Solely for purposes of disclosure pursuant to the Interest Act  (Canada), the annual rates of interest or fees to which the rates of interest or fees provided in this Agreement or the  other Loan Documents (and stated herein or therein, as applicable, to be computed on the basis of a 360 day year or  any other period of time less than a calendar year) are equivalent are the rates so determined multiplied by the actual  number of days in the applicable calendar year and divided by 360 or the actual number of days in such other period  of time, respectively. For the purposes of the Interest Act (Canada), the principle of deemed reinvestment of interest  will not apply to any interest calculation under this Agreement or the other Loan Documents, and the rates of interest  stipulated in this Agreement or the other Loan Documents are intended to be nominal rates and not effective rates or  yields.  

 

  - 70 -  4.2 Conversion and Continuation Options. (a) Subject to its obligations pursuant to Subsection  4.12(c), the Borrower may elect from time to time to convert outstanding Loans of a given Tranche from Eurodollar  Loans to ABR Loans by the Borrower giving the Administrative Agent irrevocable notice of such election prior to  1:00 P.M., New York City time two Business Days (or such shorter period as may be agreed by the Administrative  Agent in its reasonable discretion) prior to such election. The Borrower may elect from time to time to convert  outstanding Loans of a given Tranche from ABR Loans to Eurodollar Loans, by the Borrower giving the  Administrative Agent irrevocable notice of such election prior to 1:00 P.M., New York City time at least three  Business Days (or such shorter period as may be agreed by the Administrative Agent in its reasonable discretion) prior  to such election. Any such Interest Election Request shall specify the length of the initial Interest Period or Interest  Periods therefor. Upon receipt of any such notice the Administrative Agent shall promptly notify each affected Lender  thereof. All or any part of outstanding Eurodollar Loans or ABR Loans may be converted as provided herein; provided  that (i) (unless the Required Lenders otherwise consent) no Loan may be converted into a Eurodollar Loan when any  Default or Event of Default has occurred and is continuing and, in the case of any Default (other than a Default under  Subsection 9.1(f)), the Administrative Agent has given notice to the Borrower that no such conversions may be made  and (ii) no Loan may be converted into a Eurodollar Loan after the date that is one month prior to the applicable  Maturity Date.  (b) Any Eurodollar Loan may be continued as such upon the expiration of the then current  Interest Period with respect thereto by the Borrower giving notice to the Administrative Agent by submitting an  Interest Election Request of the length of the next Interest Period to be applicable to such Eurodollar Loan, determined  in accordance with the applicable provisions of the term “Interest Period” set forth in Subsection 1.1; provided that  no Eurodollar Loan may be continued as such (i) (unless the Required Lenders otherwise consent) when any Default  or Event of Default has occurred and is continuing and, in the case of any Default (other than a Default under  Subsection 9.1(f)), the Administrative Agent has given notice to the Borrower that no such continuations may be made  or (ii) after the date that is one month prior to the applicable Maturity Date, and provided, further, that if the Borrower  shall fail to give any required notice as described above in this clause (b) or if such continuation is not permitted  pursuant to the preceding proviso such Eurodollar Loans shall be automatically converted to ABR Loans on the last  day of such then expiring Interest Period. Upon receipt of any such notice of continuation pursuant to this Subsection  4.2(b), the Administrative Agent shall promptly notify each affected Lender thereof.  4.3 Minimum Amounts; Maximum Sets. All borrowings, conversions and continuations of  Loans hereunder and all selections of Interest Periods hereunder shall be in such amounts and be made pursuant to  such elections so that, after giving effect thereto, the aggregate principal amount of the Eurodollar Loans comprising  each Set shall be equal to $5,000,000 or a whole multiple of $1,000,000 in excess thereof and so that there shall not  be more than 20 Sets at any one time outstanding.  4.4 Optional and Mandatory Prepayments. (a) Optional Prepayment of Term Loans. The  Borrower may at any time and from time to time prepay the Term Loans made to it, in whole or in part, subject to  Subsection 4.12, without premium or penalty (except as provided in Subsection 4.5(b)), upon notice by the Borrower  to the Administrative Agent prior to 1:00 P.M., New York City time at least three Business Days (or such shorter  period as may be agreed by the Administrative Agent in its reasonable discretion) prior to the date of prepayment (in  the case of Eurodollar Loans), or prior to 12:00 P.M., New York City time on the date of prepayment (in the case of  ABR Loans) (or such later time as may be agreed by the Administrative Agent in its reasonable discretion). Such  notice shall specify, in the case of any prepayment of Term Loans, the applicable Tranche being repaid, and if a  combination thereof, the principal amount allocable to each, the date and amount of prepayment and whether the  prepayment is of Eurodollar Loans or ABR Loans or a combination thereof, and, in each case if a combination thereof,  the principal amount allocable to each. Any such notice may state that such notice is conditioned upon the occurrence  or non-occurrence of any event specified therein (including the effectiveness of other credit facilities), in which case  such notice may be revoked by the Borrower (by written notice to the Administrative Agent on or prior to the specified  effective date) if such condition is not satisfied. Upon the receipt of any such notice the Administrative Agent shall  promptly notify each affected Lender thereof. If any such notice is given and not revoked, the amount specified in  such notice shall be due and payable on the date specified therein, together with (if a Eurodollar Loan is prepaid other  than at the end of the Interest Period applicable thereto) any amounts payable pursuant to Subsection 4.12. Partial  prepayments pursuant to this Subsection 4.4(a) shall be in multiples of $1,000,000; provided that, notwithstanding the  foregoing, any Term Loan may be prepaid in its entirety. Each prepayment of Initial Term Loans pursuant to this  Subsection 4.4(a) made on or prior to the six-month anniversary of the Closing Date in an amount equal to the Net  

 

  - 71 -  Cash Proceeds received by any Group Member from its incurrence of new Indebtedness under first lien secured bank  financing in a Repricing Transaction shall be accompanied by the payment of the fee required by Subsection 4.5(b).  (b) [Reserved].  (c) [Reserved].  (d) [Reserved].  (e) (i) The Borrower shall, in accordance with Subsection 4.4(g), prepay the Term Loans to  the extent required by Subsection 8.4(b) (subject to Subsection 8.4(c)), (ii) if on or after the Closing Date, any Group  Member shall Incur Indebtedness for borrowed money (excluding Indebtedness permitted pursuant to Subsection 8.1  other than Specified Refinancing Term Loans), the Borrower shall, in accordance with Subsection 4.4(g), prepay (or,  exchange for Rollover Indebtedness) the Term Loans (or, in the case of the Incurrence of any Specified Refinancing  Term Loans, the Tranche of Term Loans being refinanced) in an amount equal to 100.0% of the Net Cash Proceeds  thereof (plus any portion of such Indebtedness which represents Rollover Indebtedness) minus the portion of such Net  Cash Proceeds applied (to the extent Parent, Holdings, the Borrower or any of its Subsidiaries is required by the terms  thereof) to prepay, repay or purchase Pari Passu Indebtedness on a no more than pro rata basis with the Term Loans,  in each case with such prepayment to be made on or before the fifth Business Day following notice given to each  Lender of the Prepayment Date, as contemplated by Subsection 4.4(h) and (iii) the Borrower shall, in accordance with  Subsection  4.4(g), prepay the Term Loans within 120 days following the last day of the immediately preceding Fiscal  Year (commencing with the Fiscal Year ending on or about September 30, 2022) (each, an “ECF Payment Date”)  (provided that, for the avoidance of doubt, no such prepayment shall be required with respect to the Fiscal Year ended  on or about September 30, 2021), in an amount equal to (A) (1) 50.0% (as may be adjusted pursuant to the last proviso  of this clause (iii)) of the Borrower’s Excess Cash Flow for such Fiscal Year, if and to the extent that the amount of  such Excess Cash Flow exceeds $5,000,000 minus (2) the sum of (w) the aggregate principal amount of Term Loans  (including Incremental Term Loans, Extended Term Loans and Specified Refinancing Term Loans) prepaid pursuant  to Subsection 4.4(a), Incremental Revolving Loans voluntarily prepaid to the extent accompanied by a corresponding  permanent Incremental Revolving Commitment reduction, Pari Passu Indebtedness (in the case of revolving loans, to  the extent accompanied by a corresponding permanent commitment reduction) voluntarily prepaid, repaid,  repurchased or retired and any prepayment of Term Loans (including Incremental Term Loans, Extended Term Loans  and Specified Refinancing Term Loans) pursuant to Subsection 4.4(l) (provided that such deduction for prepayments  pursuant to Subsection 4.4(l) shall be limited to the actual cash amount of such prepayment), in each case during such  Fiscal Year (which, in any event, shall not include any designated prepayment pursuant to clause (x) below), (x) the  aggregate principal amount of Term Loans (including Incremental Term Loans, Extended Term Loans and Specified  Refinancing Term Loans) prepaid pursuant to Subsection 4.4(a), Incremental Revolving Loans voluntarily prepaid to  the extent accompanied by a corresponding permanent Incremental Revolving Commitment reduction,  Pari Passu Indebtedness (in the case of revolving loans, to the extent accompanied by a corresponding permanent  commitment reduction) voluntarily prepaid, repaid, repurchased or retired and any prepayment of Term Loans  (including Incremental Term Loans, Extended Term Loans and Specified Refinancing Term Loans) pursuant to  Subsection 4.4(l) (provided that such deduction for prepayments pursuant to Subsection 4.4(l) shall be limited to the  actual cash amount of such prepayment), in each case during the period beginning with the day following the last day  of such Fiscal Year and ending on the ECF Payment Date and stated by the Borrower as prepaid pursuant to this  Subsection 4.4(e)(iii) (provided that no prepayments made pursuant to the other clauses of this Subsection 4.4(e) shall  be included in Subsections 4.4(e)(iii)(A)(2)(w) or (x)), (y) any ABL Facility Loans prepaid to the extent accompanied  by a corresponding permanent commitment reduction under the Senior ABL Facility during such Fiscal Year (which,  in any event, shall not include any designated prepayment pursuant to clause (z) below), and (z) the aggregate principal  amount of ABL Facility Loans prepaid to the extent accompanied by a corresponding permanent commitment  reduction under the Senior ABL Facility during the period beginning with the day following the last day of such Fiscal  Year and ending on the ECF Payment Date and stated by the Borrower as prepaid pursuant to this Subsection  4.4(e)(iii), in each case, excluding prepayments funded with proceeds from the Incurrence of long-term Indebtedness  (the amount described in this clause (A), the “ECF Prepayment Amount”) minus (B) the portion of such ECF  Prepayment Amount applied or offered (to the extent Parent, Holdings, the Borrower or any of its Subsidiaries is  required by the terms thereof) to prepay, repay or purchase Pari Passu Indebtedness on no more than a pro rata basis  with the Term Loans; provided that such percentage in clause (1) above shall be reduced to (x) 25% if the Consolidated  First Lien Leverage Ratio as of the last day of the immediately preceding Fiscal Year was less than or equal to  

 

  - 72 -  3.00:1.00 but greater than 2.50:1.00 and (y) 0% if the Consolidated First Lien Leverage Ratio as of the last day of the  immediately preceding Fiscal Year was less than or equal to 2.50:1.00.  Nothing in this Subsection 4.4(e) shall limit  the rights of the Agents and the Lenders set forth in Section 9.   (f) [Reserved].  (g) Subject to the last sentence of Subsection 4.4(h) and Subsection 4.4(k), each prepayment  of Term Loans pursuant to Subsection 4.4(e) (other than a prepayment with the proceeds of Specified Refinancing  Term Loans) shall be allocated pro rata among the Initial Term Loans, the Incremental Term Loans, the Extended  Term Loans and the Specified Refinancing Term Loans; provided, that at the request of the Borrower, in lieu of such  application on a pro rata basis among all Tranches of Term Loans, such prepayment may be applied to any Tranche  of Term Loans so long as the maturity date of such Tranche of Term Loans precedes the maturity date of each other  Tranche of Term Loans then outstanding or, in the event more than one Tranche of Term Loans shall have an identical  maturity date that precedes the maturity date of each other Tranche of Term Loans then outstanding, to such Tranches  on a pro rata basis.  Each prepayment of Term Loans pursuant to Subsection 4.4(a) shall be applied within each  applicable Tranche of Term Loans to the respective installments of principal thereof in the manner directed by the  Borrower (or, if no such direction is given, in direct order of maturity). Each prepayment of Term Loans pursuant to  Subsection 4.4(e) shall be applied within each applicable Tranche of Term Loans, first, to the accrued interest on the  principal amount of Term Loans being prepaid and, second, to the respective installments of principal thereof in the  manner directed by the Borrower (or, if no such direction is given in direct order of maturity). Notwithstanding any  other provision of this Subsection 4.4, a Lender may, at its option, and if agreed by the Borrower, in connection with  any prepayment of Term Loans pursuant to Subsection 4.4(a) or (e), exchange such Lender’s portion of the Term Loan  to be prepaid for Rollover Indebtedness, in lieu of such Lender’s pro rata portion of such prepayment (and any such  Term Loans so exchanged shall be deemed repaid for all purposes under the Loan Documents).  (h) The Borrower shall give notice to the Administrative Agent of any mandatory prepayment  of the Term Loans (x) pursuant to Subsection 4.4(e)(iii), three Business Days prior to the date on which such payment  is due and (y) pursuant to any other provision of Subsection 4.4(e), promptly (and in any event within five Business  Days) upon becoming obligated to make such prepayment. Such notice shall state that the Borrower is offering to  make or will make such mandatory prepayment (i) in the case of mandatory prepayments pursuant to Subsection  4.4(e)(i), on or before the date specified in Subsection 8.4(b) and (ii) in the case of mandatory prepayments pursuant  to any other clause of Subsection 4.4(e), on or before the date specified in such clause, as the case may be (each, a  “Prepayment Date”). Subject to the following sentence, once given, such notice shall be irrevocable and all amounts  subject to such notice shall be due and payable on the Prepayment Date (except as otherwise provided in the last  sentence of this Subsection 4.4(h)). Any such notice of prepayment pursuant to Subsection 4.4(e) may state that such  notice is conditioned upon the occurrence or non-occurrence of any event specified therein (including the effectiveness  of other credit facilities), in which case such notice may be revoked by the Borrower (by written notice to the  Administrative Agent, on or prior to the specified effective date) if such condition is not satisfied.  Upon receipt by  the Administrative Agent of such notice, the Administrative Agent shall immediately give notice to each Lender of  the prepayment and the Prepayment Date.  The Borrower (in its sole discretion) may give each Lender the option (in  its sole discretion) to elect to decline any such prepayment (other than a prepayment pursuant to Subsection 4.4(e)(ii),  except as otherwise provided for in the last sentence of Subsection 4.4(g)) by giving notice of such election in writing  to the Administrative Agent by 11:00 A.M., New York City time, on the date that is three Business Days (or such  shorter period as may be agreed by the Administrative Agent in its reasonable discretion) prior to the Prepayment  Date. Upon receipt by the Administrative Agent of such notice, the Administrative Agent shall immediately notify the  Borrower of such election. Any amount (the “Term Loan Declined Amount”) so declined by any Lender may, at the  option of the Borrower, be applied to the payment or prepayment of Indebtedness, including any Junior Debt, or  otherwise be retained by the Borrower and its Restricted Subsidiaries and/or applied by the Borrower or any of its  Restricted Subsidiaries in any manner not inconsistent with this Agreement.  (i) Without limitation of Subsections 2.8 and 8.1(b)(i), amounts prepaid on account of Term  Loans pursuant to Subsection 4.4(a), (e) or (l) may not be reborrowed.  (j) Notwithstanding the foregoing provisions of this Subsection 4.4, if at any time any  prepayment of Loans pursuant to Subsection 4.4(a), or (e) would result, after giving effect to the procedures set forth  in this Agreement, in the Borrower incurring breakage costs under Subsection 4.12 as a result of Eurodollar Loans  

 

  - 73 -  being prepaid other than on the last day of an Interest Period with respect thereto, then, the Borrower may, so long as  no Default or Event of Default shall have occurred and be continuing, in its sole discretion, initially (i) deposit a  portion (up to 100.0%) of the amounts that otherwise would have been paid in respect of such Eurodollar Loans with  the Administrative Agent (which deposit must be equal in amount to the amount of such Eurodollar Loans not  immediately prepaid), to be held as security for the obligations of the Borrower to make such prepayment pursuant to  a cash collateral agreement to be entered into on terms reasonably satisfactory to the Administrative Agent with such  cash collateral to be directly applied upon the first occurrence thereafter of the last day of an Interest Period with  respect to such Eurodollar Loans (or such earlier date or dates as shall be requested by the Borrower) or (ii) make a  prepayment of Loans in accordance with Subsection 4.4(a) with an amount equal to a portion (up to 100.0%) of the  amounts that otherwise would have been paid in respect of such Eurodollar Loans (which prepayment, together with  any deposits pursuant to clause (i) above, must be equal in amount to the amount of such Eurodollar Loans not  immediately prepaid); provided that, in the case of either clause (i) or (ii) above, such unpaid Eurodollar Loans shall  continue to bear interest in accordance with Subsection 4.1 until such unpaid Eurodollar Loans or the related portion  of such Eurodollar Loans, as the case may be, have or has been prepaid. In addition, if the Borrower reasonably  determines in good faith that any amounts attributable to Foreign Subsidiaries that are required to be applied to prepay  Term Loans pursuant to Subsection 4.4(e)(i) or (iii) (x) would result in material adverse tax consequences to Holdings  or any of its Restricted Subsidiaries or (y) could reasonably be expected to be prohibited or delayed by applicable law  from being repatriated, then, in each case, then the Borrower shall not be required to prepay such amounts as required  thereunder; provided that, in the case of clauses (x) and (y), the Borrower shall take commercially reasonable actions  to permit repatriation of the proceeds subject to such prepayments in order to effect such prepayments without  incurring material adverse tax consequences.  (k) Notwithstanding anything to the contrary herein, this Subsection 4.4 may be amended (and  the Lenders hereby irrevocably authorize the Administrative Agent to enter into any such amendments) to the extent  necessary to reflect differing amounts payable, and priorities of payments, to Lenders participating in any new classes  or tranches of Term Loans added pursuant to Subsections 2.8, 2.10 and 2.11, as applicable, or pursuant to any other  credit or letter of credit facility added pursuant to Subsection 2.8 or 11.1(e).  (l) Notwithstanding anything in any Loan Document to the contrary, so long as no Event of  Default under Subsection 9.1(a) or (f) has occurred and is continuing, the Borrower may prepay the outstanding Term  Loans on the following basis:  (i) The Borrower shall have the right to make a voluntary prepayment of Term Loans at a  discount to par (such prepayment, the “Discounted Term Loan Prepayment”) pursuant to a Borrower Offer  of Specified Discount Prepayment, a Borrower Solicitation of Discount Range Prepayment Offers, or a  Borrower Solicitation of Discounted Prepayment Offers, in each case made in accordance with this  Subsection 4.4(l); provided that the Borrower shall not initiate any action under this Subsection 4.4(l) in order  to make a Discounted Term Loan Prepayment unless (1) at least ten Business Days shall have passed since  the consummation of the most recent Discounted Term Loan Prepayment as a result of a prepayment made  by the Borrower on the applicable Discounted Prepayment Effective Date (or such shorter period as agreed  to by the Administrative Agent in its reasonable discretion) or (2) at least three Business Days shall have  passed since the date the Borrower was notified that no Lender was willing to accept any prepayment of any  Term Loan at the Specified Discount, within the Discount Range or at any discount to par value, as applicable,  or in the case of Borrower Solicitation of Discounted Prepayment Offers, the date of the Borrower’s election  not to accept any Solicited Discounted Prepayment Offers made by a Lender (or such shorter period as agreed  to by the Administrative Agent in its reasonable discretion). Each Lender participating in any Discounted  Term Loan Prepayment acknowledges and agrees that in connection with such Discounted Term Loan  Prepayment, (1) the Borrower then may have, and later may come into possession of, information regarding  the Term Loans or the Loan Parties hereunder that is not known to such Lender and that may be material to  a decision by such Lender to participate in such Discounted Term Loan Prepayment (“Excluded  Information”), (2) such Lender has independently and, without reliance on Parent, Holdings, the Borrower,  any of its Subsidiaries, the Administrative Agent or any of their respective Affiliates, has made its own  analysis and determination to participate in such Discounted Term Loan Prepayment notwithstanding such  Lender’s lack of knowledge of the Excluded Information and (3) none of Parent, Holdings, the Borrower, its  Subsidiaries, the Administrative Agent, or any of their respective Affiliates shall have any liability to such  Lender, and such Lender hereby waives and releases, to the extent permitted by law, any claims such Lender  

 

  - 74 -  may have against Parent, Holdings, the Borrower, its Subsidiaries, the Administrative Agent, and their  respective Affiliates, under applicable laws or otherwise, with respect to the nondisclosure of the Excluded  Information. Each Lender participating in any Discounted Term Loan Prepayment further acknowledges that  the Excluded Information may not be available to the Administrative Agent or the other Lenders. Any Term  Loans prepaid pursuant to this Subsection 4.4(l) shall be immediately and automatically cancelled.  (ii) Borrower Offer of Specified Discount Prepayment. (1) The Borrower may from time to  time offer to make a Discounted Term Loan Prepayment by providing the Administrative Agent with three  Business Days’ (or such shorter period as may be agreed by the Administrative Agent in its reasonable  discretion) notice in the form of a Specified Discount Prepayment Notice; provided that (I) any such offer  shall be made available, at the sole discretion of the Borrower, to each Lender or to each Lender with respect  to any Tranche on an individual Tranche basis, (II) any such offer shall specify the aggregate Outstanding  Amount offered to be prepaid (the “Specified Discount Prepayment Amount”), the Tranches of Term Loans  subject to such offer and the specific percentage discount to par value (the “Specified Discount”) of the  Outstanding Amount of such Term Loans to be prepaid, (III) the Specified Discount Prepayment Amount  shall be in an aggregate amount not less than $5,000,000 and whole increments of $500,000, and (IV) each  such offer shall remain outstanding through the Specified Discount Prepayment Response Date. The  Administrative Agent will promptly provide each relevant Lender with a copy of such Specified Discount  Prepayment Notice and a form of the Specified Discount Prepayment Response to be completed and returned  by each such Lender to the Administrative Agent (or its delegate) by no later than 5:00 P.M., New York City  time, on the third Business Day after the date of delivery of such notice to the relevant Lenders (or such later  date designated by the Administrative Agent and approved by the Borrower) (the “Specified Discount  Prepayment Response Date”).  (2) Each relevant Lender receiving such offer shall notify the Administrative Agent  (or its delegate) by the Specified Discount Prepayment Response Date whether or not it agrees to  accept a prepayment of any of its relevant then outstanding Term Loans at the Specified Discount  and, if so (such accepting Lender, a “Discount Prepayment Accepting Lender”), the amount of such  Lender’s Outstanding Amount and Tranches of Term Loans to be prepaid at such offered discount.  Each acceptance of a Discounted Term Loan Prepayment by a Discount Prepayment Accepting  Lender shall be irrevocable. Any Lender whose Specified Discount Prepayment Response is not  received by the Administrative Agent by the Specified Discount Prepayment Response Date shall  be deemed to have declined to accept such Borrower Offer of Specified Discount Prepayment.  (3) If there is at least one Discount Prepayment Accepting Lender, the Borrower will  make prepayment of outstanding Term Loans pursuant to this Subsection 4.4(l)(ii) to each Discount  Prepayment Accepting Lender in accordance with the respective Outstanding Amount and Tranches  of Term Loans specified in such Lender’s Specified Discount Prepayment Response given pursuant  to the foregoing clause (2); provided that, if the aggregate Outstanding Amount of Term Loans  accepted for prepayment by all Discount Prepayment Accepting Lenders exceeds the Specified  Discount Prepayment Amount, such prepayment shall be made pro rata among the Discount  Prepayment Accepting Lenders in accordance with the respective Outstanding Amounts accepted  to be prepaid by each such Discount Prepayment Accepting Lender and the Administrative Agent  (in consultation with the Borrower and subject to rounding requirements of the Administrative  Agent made in its reasonable discretion) will calculate such proration (the “Specified Discount  Proration”). The Administrative Agent shall promptly, and in any case within three Business Days  following the Specified Discount Prepayment Response Date, notify (I) the Borrower of the  respective Lenders’ responses to such offer, the Discounted Prepayment Effective Date and the  aggregate Outstanding Amount of the Discounted Term Loan Prepayment and the Tranches to be  prepaid, (II) each Lender of the Discounted Prepayment Effective Date, and the aggregate  Outstanding Amount and the Tranches of all Term Loans to be prepaid at the Specified Discount on  such date, and (III) each Discount Prepayment Accepting Lender of the Specified Discount  Proration, if any, and confirmation of the Outstanding Amount, Tranche and Type of Term Loans  of such Lender to be prepaid at the Specified Discount on such date. Each determination by the  Administrative Agent of the amounts stated in the foregoing notices to the Borrower and Lenders  shall be conclusive and binding for all purposes absent manifest error. The payment amount  

 

  - 75 -  specified in such notice to the Borrower shall be due and payable by the Borrower on the Discounted  Prepayment Effective Date in accordance with Subsection 4.4(l)(vi) below (subject to Subsection  4.4(l)(x) below).  (iii) Borrower Solicitation of Discount Range Prepayment Offers. (1) The Borrower may from  time to time solicit Discount Range Prepayment Offers by providing the Administrative Agent with three  Business Days’ (or such shorter period as may be agreed by the Administrative Agent in its reasonable  discretion) notice in the form of a Discount Range Prepayment Notice; provided that (I) any such solicitation  shall be extended, at the sole discretion of the Borrower, to each Lender or to each Lender with respect to  any Tranche on an individual Tranche basis, (II) any such notice shall specify the maximum aggregate  Outstanding Amount of the relevant Term Loans that the Borrower is willing to prepay at a discount (the  “Discount Range Prepayment Amount”), the Tranches of Term Loans subject to such offer and the maximum  and minimum percentage discounts to par (the “Discount Range”) of the Outstanding Amount of such Term  Loans willing to be prepaid by the Borrower, (III) the Discount Range Prepayment Amount shall be in an  aggregate amount not less than $5,000,000 and whole increments of $500,000, and (IV) each such solicitation  by the Borrower shall remain outstanding through the Discount Range Prepayment Response Date. The  Administrative Agent will promptly provide each relevant Lender with a copy of such Discount Range  Prepayment Notice and a form of the Discount Range Prepayment Offer to be submitted by a responding  relevant Lender to the Administrative Agent (or its delegate) by no later than 5:00 P.M., New York City time,  on the third Business Day after the date of delivery of such notice to the relevant Lenders (or such later date  as may be designated by the Administrative Agent and approved by the Borrower) (the “Discount Range  Prepayment Response Date”). Each relevant Lender’s Discount Range Prepayment Offer shall be irrevocable  and shall specify a discount to par within the Discount Range (the “Submitted Discount”) at which such  Lender is willing to allow prepayment of any or all of its then outstanding Term Loans and the maximum  aggregate Outstanding Amount and Tranches of such Term Loans such Lender is willing to have prepaid at  the Submitted Discount (the “Submitted Amount”). Any Lender whose Discount Range Prepayment Offer is  not received by the Administrative Agent by the Discount Range Prepayment Response Date shall be deemed  to have declined to accept a Discounted Term Loan Prepayment of any of its Term Loans at any discount to  their par value within the Discount Range.  (2) The Administrative Agent shall review all Discount Range Prepayment Offers  received by it by the Discount Range Prepayment Response Date and will determine (in consultation  with the Borrower and subject to rounding requirements of the Administrative Agent made in its  reasonable discretion) the Applicable Discount and Term Loans to be prepaid at such Applicable  Discount in accordance with this Subsection 4.4(l)(iii). The Borrower agrees to accept on the  Discount Range Prepayment Response Date all Discount Range Prepayment Offers received by  Administrative Agent by the Discount Range Prepayment Response Date, in the order from the  Submitted Discount that is the largest discount to par to the Submitted Discount that is the smallest  discount to par, up to and including the Submitted Discount that is the smallest discount to par within  the Discount Range (such Submitted Discount that is the smallest discount to par being referred to  as the “Applicable Discount”) which yields a Discounted Term Loan Prepayment in an aggregate  Outstanding Amount equal to the lesser of (I) the Discount Range Prepayment Amount and (II) the  sum of all Submitted Amounts. Each Lender that has submitted a Discount Range Prepayment Offer  to accept prepayment at a discount to par that is larger than or equal to the Applicable Discount shall  be deemed to have irrevocably consented to prepayment of Term Loans equal to its Submitted  Amount (subject to any required proration pursuant to the following Subsection 4.4(l)(iii)(3)) at the  Applicable Discount (each such Lender, a “Participating Lender”).  (3) If there is at least one Participating Lender, the Borrower will prepay the  respective outstanding Term Loans of each Participating Lender in the aggregate Outstanding  Amount and of the Tranches specified in such Lender’s Discount Range Prepayment Offer at the  Applicable Discount; provided that if the Submitted Amount by all Participating Lenders offered at  a discount to par greater than the Applicable Discount exceeds the Discount Range Prepayment  Amount, prepayment of the Outstanding Amount of the relevant Term Loans for those Participating  Lenders whose Submitted Discount is a discount to par greater than or equal to the Applicable  Discount (the “Identified Participating Lenders”) shall be made pro rata among the Identified  

 

  - 76 -  Participating Lenders in accordance with the Submitted Amount of each such Identified  Participating Lender and the Administrative Agent (in consultation with the Borrower and subject  to rounding requirements of the Administrative Agent made in its reasonable discretion) will  calculate such proration (the “Discount Range Proration”). The Administrative Agent shall  promptly, and in any case within three Business Days following the Discount Range Prepayment  Response Date, notify (w) the Borrower of the respective Lenders’ responses to such solicitation,  the Discounted Prepayment Effective Date, the Applicable Discount, and the aggregate Outstanding  Amount of the Discounted Term Loan Prepayment and the Tranches to be prepaid, (x) each Lender  of the Discounted Prepayment Effective Date, the Applicable Discount, and the aggregate  Outstanding Amount and Tranches of all Term Loans to be prepaid at the Applicable Discount on  such date, (y) each Participating Lender of the aggregate Outstanding Amount and Tranches of such  Lender to be prepaid at the Applicable Discount on such date, and (z) if applicable, each Identified  Participating Lender of the Discount Range Proration.  Each  determination by the Administrative  Agent of the amounts stated in the foregoing notices to the Borrower and Lenders shall be conclusive  and binding for all purposes absent manifest error. The payment amount specified in such notice to  the Borrower shall be due and payable by the Borrower on the Discounted Prepayment Effective  Date in accordance with Subsection 4.4(l)(vi) below (subject to Subsection 4.4(l)(x) below).  (iv) Borrower Solicitation of Discounted Prepayment Offers. (1) The Borrower may from time  to time solicit Solicited Discounted Prepayment Offers by providing the Administrative Agent with three  Business Days’ (or such shorter period as may be agreed by the Administrative Agent in its reasonable  discretion) notice in the form of a Solicited Discounted Prepayment Notice; provided that (I) any such  solicitation shall be extended, at the sole discretion of the Borrower, to each Lender or to each Lender with  respect to any Tranche on an individual Tranche basis, (II) any such notice shall specify the maximum  aggregate Outstanding Amount of the Term Loans and the Tranches of Term Loans the Borrower is willing  to prepay at a discount (the “Solicited Discounted Prepayment Amount”), (III) the Solicited Discounted  Prepayment Amount shall be in an aggregate amount not less than $5,000,000 and whole increments of  $500,000, and (IV) each such solicitation by the Borrower shall remain outstanding through the Solicited  Discounted Prepayment Response Date. The Administrative Agent will promptly provide each relevant  Lender with a copy of such Solicited Discounted Prepayment Notice and a form of the Solicited Discounted  Prepayment Offer to be submitted by a responding Lender to the Administrative Agent (or its delegate) by  no later than 5:00 P.M., New York City time on the third Business Day after the date of delivery of such  notice to the relevant Lenders (or such later date as may be designated by the Administrative Agent and  approved by the Borrower) (the “Solicited Discounted Prepayment Response Date”). Each Lender’s Solicited  Discounted Prepayment Offer shall (x) be irrevocable, (y) remain outstanding until the Acceptance Date, and  (z) specify both a discount to par (the “Offered Discount”) at which such Lender is willing to allow  prepayment of its then outstanding Term Loans and the maximum aggregate Outstanding Amount and  Tranches of such Term Loans (the “Offered Amount”) such Lender is willing to have prepaid at the Offered  Discount. Any Lender whose Solicited Discounted Prepayment Offer is not received by the Administrative  Agent by the Solicited Discounted Prepayment Response Date shall be deemed to have declined prepayment  of any of its Term Loans at any discount to their par value.  (2) The Administrative Agent shall promptly provide the Borrower with a copy of all  Solicited Discounted Prepayment Offers received by it by the Solicited Discounted Prepayment  Response Date. The Borrower shall review all such Solicited Discounted Prepayment Offers and  select, at its sole discretion, the smallest of the Offered Discounts specified by the relevant  responding Lenders in the Solicited Discounted Prepayment Offers that the Borrower is willing to  accept (the “Acceptable Discount”), if any; provided that the Acceptable Discount shall not be an  Offered Discount that is larger than the smallest Offered Discount for which the sum of all Offered  Amounts affiliated with Offered Discounts that are larger than or equal to such smallest Offered  Discount would, if purchased at such smallest Offered Discount, yield an amount at least equal to  the Solicited Discounted Prepayment Amount. If the Borrower elects to accept any Offered Discount  as the Acceptable Discount, then as soon as practicable after the determination of the Acceptable  Discount, but in no event later than by the third Business Day after the date of receipt by the  Borrower from the Administrative Agent of a copy of all Solicited Discounted Prepayment Offers  pursuant to the first sentence of this clause (2) (the “Acceptance Date”), the Borrower shall submit  

 

  - 77 -  an Acceptance and Prepayment Notice to the Administrative Agent setting forth the Acceptable  Discount. If the Administrative Agent shall fail to receive an Acceptance and Prepayment Notice  from the Borrower by the Acceptance Date, the Borrower shall be deemed to have rejected all  Solicited Discounted Prepayment Offers.  (3) Based upon the Acceptable Discount and the Solicited Discounted Prepayment  Offers received by Administrative Agent by the Solicited Discounted Prepayment Response Date,  within three Business Days after receipt of an Acceptance and Prepayment Notice (the “Discounted  Prepayment Determination Date”), the Administrative Agent will determine (in consultation with  the Borrower and subject to rounding requirements of the Administrative Agent made in its  reasonable discretion) the aggregate Outstanding Amount and the Tranches of Term Loans (the  “Acceptable Prepayment Amount”) to be prepaid by the Borrower at the Acceptable Discount in  accordance with this Subsection 4.4(l)(iv). If the Borrower elects to accept any Acceptable Discount,  then the Borrower agrees to accept all Solicited Discounted Prepayment Offers received by the  Administrative Agent by the Solicited Discounted Prepayment Response Date, in the order from  largest Offered Discount to smallest Offered Discount, up to and including the Acceptable Discount.  Each Lender that has submitted a Solicited Discounted Prepayment Offer to accept prepayment at  an Offered Discount that is greater than or equal to the Acceptable Discount shall be deemed to have  irrevocably consented to prepayment of Term Loans equal to its Offered Amount (subject to any  required proration pursuant to the following sentence) at the Acceptable Discount (each such  Lender, a “Qualifying Lender”). The Borrower shall prepay outstanding Term Loans pursuant to  this Subsection 4.4(l)(iv) to each Qualifying Lender in the aggregate Outstanding Amount and of  the Tranches specified in such Lender’s Solicited Discounted Prepayment Offer at the Acceptable  Discount; provided that if the aggregate Offered Amount by all Qualifying Lenders whose Offered  Discount is greater than or equal to the Acceptable Discount exceeds the Solicited Discounted  Prepayment Amount, prepayment of the Outstanding Amount of the Term Loans for those  Qualifying Lenders whose Offered Discount is greater than or equal to the Acceptable Discount (the  “Identified Qualifying Lenders”) shall be made pro rata among the Identified Qualifying Lenders in  accordance with the Offered Amount of each such Identified Qualifying Lender and the  Administrative Agent (in consultation with the Borrower and subject to rounding requirements of  the Administrative Agent made in its reasonable discretion) will calculate such proration (the  “Solicited Discount Proration”). On or prior to the Discounted Prepayment Determination Date, the  Administrative Agent shall promptly notify (w) the Borrower of the Discounted Prepayment  Effective Date and Acceptable Prepayment Amount comprising the Discounted Term Loan  Prepayment and the Tranches to be prepaid, (x) each Lender of the Discounted Prepayment Effective  Date, the Acceptable Discount, and the Acceptable Prepayment Amount of all Term Loans and the  Tranches to be prepaid at the Applicable Discount on such date, (y) each Qualifying Lender of the  aggregate Outstanding Amount and the Tranches of such Lender to be prepaid at the Acceptable  Discount on such date, and (z) if applicable, each Identified Qualifying Lender of the Solicited  Discount Proration. Each determination by the Administrative Agent of the amounts stated in the  foregoing notices to the Borrower and Lenders shall be conclusive and binding for all purposes  absent manifest error. The payment amount specified in such notice to the Borrower shall be due  and payable by the Borrower on the Discounted Prepayment Effective Date in accordance with  Subsection 4.4(l)(vi) below (subject to Subsection 4.4(l)(x) below).  (v) Expenses. In connection with any Discounted Term Loan Prepayment, the Borrower and  the Lenders acknowledge and agree that the Administrative Agent may require as a condition to any  Discounted Term Loan Prepayment, the payment of reasonable out-of-pocket costs and expenses from the  Borrower in connection therewith.  (vi) Payment. If any Term Loan is prepaid in accordance with Subsections 4.4(l)(ii) through  (iv) above, the Borrower shall prepay such Term Loans on the Discounted Prepayment Effective Date. The  Borrower shall make such prepayment to the Administrative Agent, for the account of the Discount  Prepayment Accepting Lenders, Participating Lenders, or Qualifying Lenders, as applicable, at the  Administrative Agent’s office in immediately available funds not later than 11:00 A.M., New York City time,  on the Discounted Prepayment Effective Date and all such prepayments shall be applied to the remaining  

 

  - 78 -  principal installments of the Term Loans in inverse order of maturity. The Term Loans so prepaid shall be  accompanied by all accrued and unpaid interest on the par principal amount so prepaid up to, but not  including, the Discounted Prepayment Effective Date. Each prepayment of the outstanding Term Loans  pursuant to this Subsection 4.4(l) shall be paid to the Discount Prepayment Accepting Lenders, Participating  Lenders, or Qualifying Lenders, as applicable. The aggregate Outstanding Amount of the Tranches of the  Term Loans outstanding shall be deemed reduced by the full par value of the aggregate Outstanding Amount  of the Tranches of Term Loans prepaid on the Discounted Prepayment Effective Date in any Discounted  Term Loan Prepayment. The Lenders hereby agree that, in connection with a prepayment of Term Loans  pursuant to this Subsection 4.4(l) and notwithstanding anything to the contrary contained in this Agreement,  (i) interest in respect of the Term Loans may be made on a non-pro rata basis among the Lenders holding  such Term Loans to reflect the payment of accrued interest to certain Lenders as provided in this Subsection  4.4(l)(vi) and (ii) all subsequent prepayments and repayments of the Term Loans (except as otherwise  contemplated by this Agreement) shall be made on a pro rata basis among the respective Lenders based upon  the then outstanding principal amounts of the Term Loans then held by the respective Lenders after giving  effect to any prepayment pursuant to this Subsection 4.4(l) as if made at par. It is also understood and agreed  that prepayments pursuant to this Subsection 4.4(l) shall not be subject to Subsection 4.4(a), or, for the  avoidance of doubt, Subsection 11.7(a) or the pro rata allocation requirements of Subsection 4.8(a).  (vii) Other Procedures. To the extent not expressly provided for herein, each Discounted Term  Loan Prepayment shall be consummated pursuant to procedures consistent with the provisions in this  Subsection 4.4(l), established by the Administrative Agent acting in its reasonable discretion and as  reasonably agreed by the Borrower.  (viii) Notice. Notwithstanding anything in any Loan Document to the contrary, for purposes of  this Subsection 4.4(l), each notice or other communication required to be delivered or otherwise provided to  the Administrative Agent (or its delegate) shall be deemed to have been given upon the Administrative  Agent’s (or its delegate’s) actual receipt during normal business hours of such notice or communication;  provided that any notice or communication actually received outside of normal business hours shall be  deemed to have been given as of the opening of business on the next Business Day.  (ix) Actions of Administrative Agent. Each of the Borrower and the Lenders acknowledges and  agrees that the Administrative Agent may perform any and all of its duties under this Subsection 4.4(l) by  itself or through any Affiliate of the Administrative Agent and expressly consents to any such delegation of  duties by the Administrative Agent to such Affiliate and the performance of such delegated duties by such  Affiliate. The exculpatory provisions in this Agreement shall apply to each Affiliate of the Administrative  Agent and its respective activities in connection with any Discounted Term Loan Prepayment provided for  in this Subsection 4.4(l) as well as to activities of the Administrative Agent in connection with any  Discounted Term Loan Prepayment provided for in this Subsection 4.4(l).  (x) Revocation. The Borrower shall have the right, by written notice to the Administrative  Agent, to revoke in full (but not in part) its offer to make a Discounted Term Loan Prepayment and rescind  the applicable Specified Discount Prepayment Notice, Discount Range Prepayment Notice or Solicited  Discounted Prepayment Notice therefor at its discretion at any time on or prior to the applicable Specified  Discount Prepayment Response Date (and if such offer is so revoked, any failure by the Borrower to make  any prepayment to a Lender pursuant to this Subsection 4.4(l) shall not constitute a Default or Event of  Default under Subsection 9.1 or otherwise).  (xi) No Obligation. This Subsection 4.4(l) shall not (i) require the Borrower to undertake any  prepayment pursuant to this Subsection 4.4(l) or (ii) limit or restrict the Borrower from making voluntary  prepayments of the Term Loans in accordance with the other provisions of this Agreement.  4.5 Administrative Agent’s Fee; Other Fees.  (a) The Borrower agrees to pay to the  Administrative Agent the fees set forth in the Fee Letter on the payment dates set forth therein.  (b) If on or prior to the six-month anniversary of the Closing Date the Borrower makes an  optional prepayment in full of the Initial Term Loans in an amount equal to the Net Cash Proceeds received by any  

 

  - 79 -  Group Member from its incurrence of new Indebtedness under first lien secured bank financing in a Repricing  Transaction (other than any Repricing Transaction that occurs in connection with (i) a Change of Control or (ii)  Transformative Acquisition), the Borrower shall pay to the Administrative Agent, for the ratable account of each  Lender, a prepayment premium of 1.0% of the aggregate principal amount of Initial Term Loans being prepaid. If, on  or prior to the six-month anniversary of the Closing Date, any Lender is replaced pursuant to Subsection 11.1(g) or  11.1(h) in connection with any amendment of this Agreement (including in connection with any refinancing  transaction permitted under Subsection 11.6(g) to replace the Initial Term Loans) that results in a Repricing  Transaction (other than any Repricing Transaction that occurs in connection with (i) a Change of Control or (ii)  Transformative Acquisition), such Lender (and not any Person who replaces such Lender pursuant to Subsection  2.10(e) or 11.1(g)) shall receive a fee equal to 1.0% of the principal amount of the Initial Term Loans of such Lender  assigned to a replacement Lender pursuant to Subsection 2.10(e) or 11.1(g) or 11.1(h).  4.6 Computation of Interest and Fees.   (a) Interest (other than interest based on the Prime Rate) shall be calculated on the basis of a  360-day year for the actual days elapsed; and interest based on the Prime Rate shall be calculated on the basis of a  365-day year (or 366-day year, as the case may be) for the actual days elapsed. The Administrative Agent shall as  soon as practicable notify the Borrower and the affected Lenders of each determination of an Adjusted LIBO Rate.  Any change in the interest rate on a Loan resulting from a change in the Alternate Base Rate or the Statutory Reserve  Rate shall become effective as of the opening of business on the day on which such change becomes effective. The  Administrative Agent shall as soon as practicable notify the Borrower and the affected Lenders of the effective date  and the amount of each such change in interest rate.  (b) Each determination of an interest rate by the Administrative Agent pursuant to any  provision of this Agreement shall be conclusive and binding on the Borrower and the Lenders in the absence of  manifest error. The Administrative Agent shall, at the request of the Borrower or any Lender, deliver to the Borrower  or such Lender a statement showing in reasonable detail the calculations used by the Administrative Agent in  determining any interest rate pursuant to Subsection 4.1, excluding any LIBO Rate which is based upon the Reuters  Monitor Money Rates Service page and any ABR Loan which is based upon the Alternate Base Rate.  4.7 Alternate Rate of Interest.  (a)  Subject to clauses (b), (c), (d), (e), (f) and (g) of this  Subsection 4.7, if prior to the commencement of any Interest Period for a Eurodollar Borrowing:  (i) the Administrative Agent determines (which determination shall be conclusive absent  manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate or  the LIBO Rate, as applicable (including because the Relevant Screen Rate is not available or published on a  current basis), for Dollars and such Interest Period or payment period, as applicable; or  (ii) the Administrative Agent is advised by the Required Lenders that the Adjusted LIBO Rate,  the LIBO Rate, as applicable, for Dollars and such Interest Period or payment period, as applicable, will not  adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or  its Loan) included in such Borrowing for Dollars and such Interest Period or payment period, as applicable;  then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone, telecopy or  electronic mail as promptly as practicable thereafter. If any Eurodollar Loan is outstanding on the date of the  Borrower’s receipt of such notice from the Administrative Agent, then until the Administrative Agent notifies the  Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, then on the last day of the  Interest Period applicable to such Loan (or the next succeeding Business Day if such day is not a Business Day), such  Loan shall be converted by the Administrative Agent to, and shall constitute, an ABR Loan on such day.  (b) Notwithstanding anything to the contrary herein or in any other Loan Document (and any  Swap Agreement shall be deemed not to be a “Loan Document” for purposes of this Subsection 4.7), if a Benchmark  Transition Event or an Early Opt-in 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 (1) or (2) of the definition of “Benchmark Replacement” for  such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes  

 

  - 80 -  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 (3) 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.  (c) Notwithstanding anything to the contrary herein or in any other Loan Document and  subject to the proviso below in this paragraph, 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 (c) 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 the occurrence of a Term SOFR Transition Event and may do so in its reasonable  discretion (upon consultation with the Borrower).  (d) In connection with the implementation of a Benchmark Replacement, the Administrative  Agent will have the right, upon consultation with the Borrower, 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.   (e) The Administrative Agent will promptly notify the Borrower and the Lenders of (1) any  occurrence of a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-in Election, as  applicable, and its related Benchmark Replacement Date (2) the implementation of any Benchmark Replacement, (3)  the effectiveness of any Benchmark Replacement Conforming Changes, (4) the removal or reinstatement of any tenor  of a Benchmark pursuant to clause (f) below and (5) 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 Subsection 4.7, 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 Subsection 4.7.  (f) 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), (6) if the then-current  Benchmark is a term rate (including Term SOFR or the LIBO Rate) and either (a) 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 (b) 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 (upon consultation with the Borrower)  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 (7) if a tenor that was removed pursuant to clause (i) above either (a) is  subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or  (b) 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 (upon consultation with the Borrower) may  modify the definition of “Interest Period” for all Benchmark settings at or after such time to reinstate such previously  removed tenor.  (g) Upon the Borrower’s receipt of notice of the commencement of a Benchmark  Unavailability Period, the Borrower may revoke any request for a Eurodollar Borrowing of, conversion to or  

 

  - 81 -  continuation of Eurodollar Loans to be made, converted or continued during any Benchmark Unavailability Period  and, failing that, the Borrower will be deemed to have converted any request for a Eurodollar Borrowing into a request  for a Borrowing of or conversion to ABR Loans.  Furthermore, if any Eurodollar Loan is outstanding on the date of  the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, then until such time as  a Benchmark Replacement is implemented pursuant to this Subsection 4.7, then on the last day of the Interest Period  applicable to such Loan (or the next succeeding Business Day if such day is not a Business Day), such Loan shall be  converted by the Administrative Agent to, and shall constitute, an ABR Loan on such day.   4.8 Pro Rata Treatment and Payments. (a) Except as expressly otherwise provided herein, each  payment (including each prepayment, but excluding payments made pursuant to Subsections 2.8, 2.9, 2.10, 2.11,  4.5(b), 4.9, 4.10, 4.11, 4.12, 4.13(d), 11.1(g), 11.1(h) or 11.6) by the Borrower on account of principal of and interest  on account of any Loans of a given Tranche (other than (v) payments in respect of any difference in the Applicable  Margin, Adjusted LIBO Rate or Alternate Base Rate in respect of any Tranche, (w) any payments pursuant to  Subsection 4.4(e) to the extent declined by any Lender in accordance with Subsection 4.4(h), (x) any payments  pursuant to Subsection 4.4(l) which shall be allocated as set forth in Subsection 4.4(l) and (y) any prepayments  pursuant to Subsection 11.6(h)(2)) shall be allocated by the Administrative Agent pro rata according to the respective  outstanding principal amounts of such Loans of such Tranche then held by the respective Lenders; provided that a  Lender may, at its option, and if agreed by the Borrower, exchange such Lender’s portion of a Term Loan to be prepaid  for Rollover Indebtedness, in lieu of such Lender’s pro rata portion of such prepayment, pursuant to the last sentence  of Subsection 4.4(g). All payments (including prepayments) to be made by the Borrower hereunder, whether on  account of principal, interest, fees or otherwise, shall be made without set-off or counterclaim and shall be made on  or prior to the time expressly required hereunder or under such other Loan Document for such payment (or, if no such  time is expressly required, prior to 12:00 noon, New York City time), on the due date thereof to the Administrative  Agent for the account of the Lenders holding the relevant Loans, the Lenders, the Administrative Agent, or the Other  Representatives, as the case may be, at the Administrative Agent’s office specified in Subsection 11.2, in Dollars in  immediately available funds. Payments received by the Administrative Agent after such time shall be deemed to have  been received on the next Business Day. The Administrative Agent shall distribute such payments to such Lenders or  Other Representatives, as the case may be, if any such payment is received prior to 12:00 noon, New York City time,  on a Business Day, in like funds as received prior to the end of such Business Day and otherwise the Administrative  Agent shall distribute such payment to such Lenders or Other Representatives, as the case may be, on the next  succeeding Business Day. If any payment hereunder (other than payments on the Eurodollar Loans) becomes due and  payable on a day other than a Business Day, the maturity of such payment shall be extended to the next succeeding  Business Day, and, with respect to payments of principal, interest thereon shall be payable at the then applicable rate  during such extension. If any payment on a Eurodollar Loan becomes due and payable on a day other than a Business  Day, the maturity of such payment shall be extended to the next succeeding Business Day (and, with respect to  payments of principal, interest thereon shall be payable at the then applicable rate during such extension) unless the  result of such extension would be to extend such payment into another calendar month, in which event such payment  shall be made on the immediately preceding Business Day. This Subsection 4.8(a) may be amended in accordance  with Subsection 11.1(d) to the extent necessary to reflect differing amounts payable, and priorities of payments, to  Lenders participating in any new Tranches added pursuant to Subsections 2.8, 2.10 and 2.11, as applicable.  (b) Unless the Administrative Agent shall have been notified in writing by any Lender prior to  a borrowing that such Lender will not make the amount that would constitute its share of such borrowing available to  the Administrative Agent, the Administrative Agent may assume that such Lender is making such amount available  to the Administrative Agent, and the Administrative Agent may, in reliance upon such assumption, make available to  the Borrower in respect of such borrowing a corresponding amount. If such amount is not made available to the  Administrative Agent by the required time on the Borrowing Date therefor, such Lender shall pay to the  Administrative Agent on demand, such amount with interest thereon at a rate equal to the daily average NYFRB Rate  for the period until such Lender makes such amount immediately available to the Administrative Agent. A certificate  of the Administrative Agent submitted to any Lender with respect to any amounts owing under this Subsection 4.8(b)  shall be conclusive in the absence of manifest error. If such Lender’s share of such borrowing is not made available  to the Administrative Agent by such Lender within three Business Days of such Borrowing Date, the Administrative  Agent shall notify the Borrower of the failure of such Lender to make such amount available to the Administrative  Agent and the Administrative Agent shall also be entitled to recover such amount with interest thereon at the rate per  annum applicable to ABR Loans hereunder on demand from the Borrower; provided that the foregoing notice and  recovery provisions shall not apply to the funding of Initial Term Loans on the Closing Date.  

 

  - 82 -  4.9 Illegality. Notwithstanding any other provision herein, if the adoption of or any change in  any Requirement of Law or in the interpretation or application thereof in each case occurring after the Closing Date  shall make it unlawful for any Lender to make or maintain any Eurodollar Loans as contemplated by this Agreement  (“Affected Loans”), (a) such Lender shall promptly give written notice of such circumstances to the Borrower and the  Administrative Agent (which notice shall be withdrawn whenever such circumstances no longer exist), (b) the  commitment of such Lender hereunder to make Affected Loans, continue Affected Loans as such and convert an ABR  Loan to an Affected Loan shall forthwith be cancelled and, until such time as it shall no longer be unlawful for such  Lender to make or maintain such Affected Loans, such Lender shall then have a commitment only to make an ABR  Loan when an Affected Loan is requested and (c) such Lender’s Loans then outstanding as Affected Loans, if any,  shall be converted automatically to ABR Loans on the respective last days of the then current Interest Periods with  respect to such Affected Loans or within such earlier period as required by law. If any such conversion or prepayment  of an Affected Loan occurs on a day which is not the last day of the then current Interest Period with respect thereto,  the Borrower shall pay to such Lender such amounts, if any, as may be required pursuant to Subsection 4.12.  4.10 Requirements of Law. (a) If the adoption of or any change in any Requirement of Law or  in the interpretation or application thereof applicable to any Lender, or compliance by any Lender with any request or  directive (whether or not having the force of law) from any central bank or other Governmental Authority, in each  case made subsequent to the Closing Date (or, if later, the date on which such Lender becomes a Lender):  (i) shall subject such Lender to any Tax of any kind whatsoever with respect to any Eurodollar  Loans made or maintained by it or its obligation to make or maintain Eurodollar Loans, or change the basis  of taxation of payments to such Lender in respect thereof, in each case, except for Non-Excluded Taxes and  Excluded Taxes;  (ii) shall impose, modify or hold applicable any reserve, special deposit, compulsory loan or  similar requirement against assets held by, deposits or other liabilities in or for the account of, advances,  loans or other extensions of credit by, or any other acquisition of funds by, any office of such Lender which  is not otherwise included in the determination of the LIBO Rate hereunder; or   (iii) shall impose on such Lender any other condition (excluding any Tax of any kind  whatsoever);   and the result of any of the foregoing is to increase the cost to such Lender, by an amount which such Lender deems  to be material, of making, converting into, continuing or maintaining Eurodollar Loans or to reduce any amount  receivable hereunder in respect thereof, then, in any such case, upon notice to the Borrower from such Lender, through  the Administrative Agent in accordance herewith, the Borrower shall promptly pay such Lender, upon its demand,  any additional amounts necessary to compensate such Lender for such increased cost or reduced amount receivable  with respect to such Eurodollar Loans; provided that, in any such case, the Borrower may elect to convert the  Eurodollar Loans made by such Lender hereunder to ABR Loans by giving the Administrative Agent at least one  Business Day’s (or such shorter period as may be agreed by the Administrative Agent in its reasonable discretion)  notice of such election, in which case the Borrower shall promptly pay to such Lender, upon demand, without  duplication, amounts theretofore required to be paid to such Lender pursuant to this Subsection 4.10(a) and such  amounts, if any, as may be required pursuant to Subsection 4.12. If any Lender becomes entitled to claim any  additional amounts pursuant to this Subsection 4.10(a), it shall provide prompt notice thereof to the Borrower, through  the Administrative Agent, certifying (x) that one of the events described in this clause (a) has occurred and describing  in reasonable detail the nature of such event, (y) as to the increased cost or reduced amount resulting from such event  and (z) as to the additional amount demanded by such Lender and a reasonably detailed explanation of the calculation  thereof. Such a certificate as to any additional amounts payable pursuant to this Subsection 4.10(a) submitted by such  Lender, through the Administrative Agent, to the Borrower shall be conclusive in the absence of manifest error.  Notwithstanding anything to the contrary in this Subsection 4.10(a), the Borrower shall not be required to compensate  a Lender pursuant to this Subsection 4.10(a) (i) for any amounts incurred more than six months prior to the date that  such Lender notifies the Borrower of such Lender’s intention to claim compensation therefor or (ii) for any amounts,  if such Lender is applying this provision to the Borrower in a manner that is inconsistent with its application of  “increased cost” or other similar provisions under other syndicated credit agreements to similarly situated borrowers.  This covenant shall survive the termination of this Agreement and the payment of the Loans and all other amounts  payable hereunder.  

 

  - 83 -  (b) If any Lender shall have determined that the adoption of or any change in any Requirement  of Law regarding capital adequacy or liquidity or in the interpretation or application thereof or compliance by such  Lender or any corporation controlling such Lender with any request or directive regarding capital adequacy or liquidity  (whether or not having the force of law) from any Governmental Authority, in each case, made subsequent to the  Closing Date, does or shall have the effect of reducing the rate of return on such Lender’s or such corporation’s capital  as a consequence of such Lender’s obligations hereunder to a level below that which such Lender or such corporation  could have achieved but for such change or compliance (taking into consideration such Lender’s or such corporation’s  policies with respect to capital adequacy) by an amount deemed by such Lender to be material, then from time to time,  within ten Business Days after submission by such Lender to the Borrower (through the Administrative Agent) of a  written request therefor certifying (x) that one of the events described in this clause (b) has occurred and describing  in reasonable detail the nature of such event, (y) as to the reduction of the rate of return on capital resulting from such  event and (z) as to the additional amount or amounts demanded by such Lender or corporation and a reasonably  detailed explanation of the calculation thereof, the Borrower shall pay to such Lender such additional amount or  amounts as will compensate such Lender or corporation for such reduction. Such a certificate as to any additional  amounts payable pursuant to this Subsection 4.10(b) submitted by such Lender, through the Administrative Agent, to  the Borrower shall be conclusive in the absence of manifest error. Notwithstanding anything to the contrary in this  Subsection 4.10(b), the Borrower shall not be required to compensate a Lender pursuant to this Subsection 4.10(b) (i)  for any amounts incurred more than six months prior to the date that such Lender notifies the Borrower of such  Lender’s intention to claim compensation therefor or (ii) for any amounts, if such Lender is applying this provision to  the Borrower in a manner that is inconsistent with its application of “increased cost” or other similar provisions under  other syndicated credit agreements to similarly situated borrowers. This covenant shall survive the termination of this  Agreement and the payment of the Loans and all other amounts payable hereunder.  (c) Notwithstanding anything herein to the contrary, the Dodd Frank Wall Street Reform and  Consumer Protection Act, and all requests, rules, regulations, guidelines and directives promulgated thereunder or  issued in connection therewith, and all requests, rules, guidelines or directives promulgated by the Bank for  International Settlements, the Basel Committee on Banking Supervision (or any successor authority) or the United  States or foreign regulatory authorities, in each case pursuant to Basel III, in each case shall be deemed to have been  enacted, adopted or issued, as applicable, subsequent to the Closing Date for all purposes herein.  4.11 Taxes. (a) Except as provided below in this Subsection 4.11 or as required by law (which,  for purposes of this Subsection 4.11 shall include FATCA), all payments made by the Borrower or the Agents under  this Agreement and any Notes shall be made free and clear of, and without deduction or withholding for or on account  of any Taxes; provided that if any Non-Excluded Taxes are required to be withheld from any amounts payable by the  Borrower to any Agent or any Lender hereunder or under any Notes, the amounts so payable by the Borrower shall  be increased to the extent necessary to yield to such Agent or such Lender (after payment of all Non-Excluded Taxes)  interest or any such other amounts payable hereunder at the rates or in the amounts specified in this Agreement;  provided, however, that the Borrower shall be entitled to deduct and withhold, and the Borrower shall not be required  to indemnify for, any Non-Excluded Taxes, and any such amounts payable by the Borrower to or for the account of  any Agent or Lender shall not be increased (x) if such Agent or Lender fails to comply with the requirements of clause  (b), (c), (d) or (e) of this Subsection 4.11 or with the requirements of Subsection 4.13, or (y) with respect to any Non- Excluded Taxes imposed in connection with the payment of any fees paid under this Agreement unless such Non- Excluded Taxes are imposed as a result of a Change in Law, or (z) with respect to any Non-Excluded Taxes imposed  by the United States or any state or political subdivision thereof, unless such Non-Excluded Taxes are imposed as a  result of a change in treaty, law or regulation that occurred after such Agent became an Agent hereunder or such  Lender became a Lender hereunder (or, if such Agent or Lender is a non-U.S. intermediary or flow-through entity for  U.S. federal income tax purposes, after the relevant beneficiary or member of such Agent or Lender became such a  beneficiary or member, if later) (any such change, at such time, a “Change in Law”). Whenever any Non-Excluded  Taxes are payable by the Borrower pursuant to this Section 4.11(a), as soon as practicable thereafter the Borrower  shall send to the Administrative Agent a certified copy of an original official receipt received by the Borrower showing  payment thereof or other evidence of such payment reasonably satisfactory to the Administrative Agent. If the  Borrower fails to pay any Non-Excluded Taxes when due to the appropriate Governmental Authority in accordance  with applicable law or the Borrower fails to remit to the Administrative Agent the required receipts or other required  documentary evidence, the Borrower shall indemnify the Administrative Agent, the Lenders and the Agents for any  incremental Taxes, interest or penalties that may become payable by the Administrative Agent or any Lender as a  

 

  - 84 -  result of any such failure. The agreements in this Subsection 4.11 shall survive the termination of this Agreement and  the payment of the Term Loans and all other amounts payable hereunder.  (b) Each Agent and each Lender that is not a United States Person shall:  (i) (1) on or before the date of any payment by the Borrower under this Agreement or any  Notes to, or for the account of, such Agent or Lender, deliver to the Borrower and the Administrative Agent  (A) two accurate and complete original signed Internal Revenue Service Forms W-8BEN or Internal Revenue  Service Forms W-8BEN-E, as appropriate (certifying that it is a resident of the applicable country within the  meaning of the income tax treaty between the United States and that country) or Forms W-8ECI, or successor  applicable form, as the case may be, in each case certifying that it is entitled to receive all payments under  this Agreement and any Notes without deduction or withholding of any United States federal income taxes,  and (B) such other forms, documentation or certifications, as the case may be, certifying that it is entitled to  an exemption from United States backup withholding tax with respect to payments under this Agreement and  any Notes;  (2) deliver to the Borrower and the Administrative Agent two further accurate and  complete original signed forms or certifications provided in Subsection 4.11(b)(i)(1) on or before  the date that any such form or certification expires or becomes obsolete and after the occurrence of  any event requiring a change in the most recent form or certificate previously delivered by it to the  Borrower;  (3) obtain such extensions of time for filing and completing such forms or  certifications as may reasonably be requested by the Borrower or the Administrative Agent; and  (4) deliver, to the extent legally entitled to do so, upon reasonable request by the  Borrower, to the Borrower and the Administrative Agent such other forms as may be reasonably  required in order to establish the legal entitlement of such Lender to an exemption from, or reduction  of, withholding with respect to payments under this Agreement and any Notes; provided that, in  determining the reasonableness of a request under this clause (4), such Lender shall be entitled to  consider the cost (to the extent unreimbursed by any Loan Party) which would be imposed on such  Lender of complying with such request; or   (ii) in the case of any such Lender that is not a “bank” within the meaning of Section  881(c)(3)(A) of the Code and is claiming the so-called “portfolio interest exemption”,  (1) represent to the Borrower and the Administrative Agent that it is not (A) a bank  within the meaning of Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the  Borrower within the meaning of Section 881(c)(3)(B) of the Code, or (C) a “controlled foreign  corporation” described in Section 881(c)(3)(C) of the Code;  (2) deliver to the Borrower on or before the date of any payment by the Borrower  with a copy to the Administrative Agent, (A) two certificates substantially in the form of Exhibit D  hereto (any such certificate a “U.S. Tax Compliance Certificate”) and (B) two accurate and complete  original signed Internal Revenue Service Forms W-8BEN or Internal Revenue Service Forms W- 8BEN-E, as appropriate, or successor applicable form, certifying to such Lender’s legal entitlement  at the date of such form to an exemption from U.S. withholding tax under the provisions of Section  871(h) or Section 881(c) of the Code with respect to payments to be made under this Agreement  and any Notes and (C) such other forms, documentation or certifications, as the case may be  certifying that it is entitled to an exemption from United States backup withholding tax with respect  to payments under this Agreement and any Notes (and shall also deliver to the Borrower and the  Administrative Agent two further accurate and complete original signed forms or certificates on or  before the date it expires or becomes obsolete and after the occurrence of any event requiring a  change in the most recently provided form or certificate and, if necessary, obtain any extensions of  time reasonably requested by the Borrower or the Administrative Agent for filing and completing  such forms or certificates); and  

 

  - 85 -  (3) deliver, to the extent legally entitled to do so, upon reasonable request by the  Borrower, to the Borrower and the Administrative Agent such other forms as may be reasonably  required in order to establish the legal entitlement of such Lender to an exemption from, or reduction  of, withholding with respect to payments under this Agreement and any Notes; provided that, in  determining the reasonableness of a request under this clause (3), such Lender shall be entitled to  consider the cost (to the extent unreimbursed by the Borrower) which would be imposed on such  Lender of complying with such request; or  (iii) in the case of any such Agent or Lender that is a non-U.S. intermediary or flow-through  entity for U.S. federal income tax purposes,  (1) on or before the date of any payment by the Borrower under this Agreement or  any Notes to, or for the account of, such Agent or Lender, deliver to the Borrower and the  Administrative Agent two accurate and complete original signed Internal Revenue Service Forms  W-8IMY and, if any beneficiary or member of such Lender is claiming the so-called “portfolio  interest exemption”, (I) represent to the Borrower and the Administrative Agent that such Lender is  not (A) a bank within the meaning of Section 881(c)(3)(A) of the Code, (B) a “10 percent  shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or (C) a  “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code, and (II) also deliver  to the Borrower and the Administrative Agent two U.S. Tax Compliance Certificates certifying to  such Lender’s legal entitlement at the date of such certificate to an exemption from U.S. withholding  tax under the provisions of Section 881(c) of the Code with respect to payments to be made under  this Agreement and any Notes; and  (2) with respect to each beneficiary or member of such Agent or Lender that is not  claiming the so-called “portfolio interest exemption”, also deliver to the Borrower and the  Administrative Agent (I) two accurate and complete original signed Internal Revenue Service Forms  W-8BEN or Internal Revenue Service Forms W-8BEN-E, as appropriate (certifying that such  beneficiary or member is a resident of the applicable country within the meaning of the income tax  treaty between the United States and that country), Forms W-8ECI or Forms W-9, or successor  applicable form, as the case may be, in each case so that each such beneficiary or member is entitled  to receive all payments under this Agreement and any Notes without deduction or withholding of  any United States federal income taxes and (II) such other forms, documentation or certifications,  as the case may be, certifying that each such beneficiary or member is entitled to an exemption from  United States backup withholding tax with respect to all payments under this Agreement and any  Notes; and  (3) with respect to each beneficiary or member of such Lender that is claiming the  so-called “portfolio interest exemption”, (I) represent to the Borrower and the Administrative Agent  that such beneficiary or member is not (1) a bank within the meaning of Section 881(c)(3)(A) of the  Code, (2) a “10 percent shareholder” of the Borrower or any Parent Entity within the meaning of  Section 881(c)(3)(B) of the Code, or (3) a “controlled foreign corporation” described in Section  881(c)(3)(C) of the Code, and (II) also deliver to the Borrower and the Administrative Agent two  U.S. Tax Compliance Certificates from each beneficiary or member and two accurate and complete  original signed Internal Revenue Service Forms W-8BEN or Internal Revenue Service Forms W- 8BEN-E, as appropriate, or successor applicable form, certifying to such beneficiary’s or member’s  legal entitlement at the date of such certificate to an exemption from U.S. withholding tax under the  provisions of Section 871(h) or Section 881(c) of the Code with respect to payments to be made  under this Agreement and any Notes, and (III) also deliver to the Borrower and the Administrative  Agent such other forms, documentation or certifications, as the case may be, certifying that it is  entitled to an exemption from United States backup withholding tax with respect to payments under  this Agreement and any Notes;  (4) deliver to the Borrower and the Administrative Agent two further accurate and  complete original signed forms, certificates or certifications referred to above on or before the date  any such form, certificate or certification expires or becomes obsolete, or any beneficiary or member  

 

  - 86 -  changes, and after the occurrence of any event requiring a change in the most recently provided  form, certificate or certification and obtain such extensions of time reasonably requested by the  Borrower or the Administrative Agent for filing and completing such forms, certificates or  certifications; and  (5) deliver, to the extent legally entitled to do so, upon reasonable request by the  Borrower, to the Borrower and the Administrative Agent such other forms as may be reasonably  required in order to establish the legal entitlement of such Agent or Lender (or beneficiary or  member) to an exemption from, or reduction of, withholding with respect to payments under this  Agreement and any Notes; provided that in determining the reasonableness of a request under this  clause (5) such Agent or Lender shall be entitled to consider the cost (to the extent unreimbursed by  the Borrower) which would be imposed on such Agent or Lender (or beneficiary or member) of  complying with such request;   unless, in any such case (other than with respect to United States backup withholding tax), there has been a Change in  Law which renders all such forms inapplicable or which would prevent such Agent or such Lender (or such beneficiary  or member) from duly completing and delivering any such form with respect to it and such Agent or such Lender so  advises the Borrower and the Administrative Agent.  (c) Each Lender and each Agent, in each case that is a United States Person, shall, on or before  the date of any payment by the Borrower under this Agreement or any Notes to such Lender or Agent, deliver to the  Borrower and the Administrative Agent two accurate and complete original signed Internal Revenue Service Forms  W-9, or successor form, certifying that such Lender or Agent is a United States Person and that such Lender or Agent  is entitled to complete exemption from United States backup withholding tax.  (d) Notwithstanding the foregoing, if the Administrative Agent is not a United States Person,  on or before the date of any payment by the Borrower under this Agreement or any Notes to the Administrative Agent,  the Administrative Agent shall:  (i) deliver to the Borrower (A) two accurate and complete original signed Internal Revenue  Service Forms W-8ECI, or successor applicable form, with respect to any amounts payable to the  Administrative Agent for its own account, (B) two accurate and complete original signed Internal Revenue  Service Forms W-8IMY, or successor applicable form, with respect to any amounts payable to the  Administrative Agent for the account of others, certifying that it is a “U.S. branch” and that the payments it  receives for the account of others are not effectively connected with the conduct of its trade or business in  the United States and that it is using such form as evidence of its agreement with the Borrower to be treated  as a U.S. person with respect to such payments (and the Borrower and the Administrative Agent agree to so  treat the Administrative Agent as a U.S. person with respect to such payments as contemplated by U.S.  Treasury Regulation § 1.1441-1(b)(2)(iv)) and (C) such other forms or certifications as may be sufficient  under applicable law to establish that the Administrative Agent is entitled to receive any payment by the  Borrower under this Agreement or any Notes (whether for its own account or for the account of others)  without deduction or withholding of any United States federal income taxes;  (ii) deliver to the Borrower two further accurate and complete original signed  forms or  certifications provided in Subsection 4.11(d)(i) on or before the date that any such form or certification  expires or becomes obsolete and after the occurrence of any event requiring a change in the most recent form  or certificate previously delivered by it to the Borrower; and  (iii) obtain such extensions of time for filing and completing such forms or certifications as  may reasonably be requested by the Borrower or the Administrative Agent;   unless in any such case (other than with respect to United States backup withholding tax) there has been a Change in  Law which renders all such forms inapplicable or which would prevent the Administrative Agent from duly  completing and delivering any such form with respect to it and the Administrative Agent so advises the Borrower.  

 

  - 87 -  (e) If a payment made to a Lender under any Loan Document would be subject to U.S. federal  withholding tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements  of FATCA, such Lender shall deliver to the Administrative Agent and the Borrower, at the time or times prescribed  by law and at such time or times reasonably requested by the Administrative Agent or the Borrower, such  documentation prescribed by applicable law and such additional documentation reasonably requested by the  Administrative Agent or the Borrower as may be necessary for the Administrative Agent and the Borrower to comply  with their respective obligations (including any applicable reporting requirements) under FATCA, to determine  whether such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct  and withhold from such payment. For the avoidance of doubt, the Borrower and the Administrative Agent shall be  permitted to withhold any Taxes imposed by FATCA. Solely for purposes of this clause (e), FATCA shall include any  amendments made to FATCA after the date of this Agreement.  4.12 Indemnity. The Borrower agrees to indemnify each Lender in respect of Extensions of  Credit made, or requested to be made, to the Borrower, and to hold each such Lender harmless from any loss or  expense which such Lender may sustain or incur (other than through such Lender’s bad faith, gross negligence or  willful misconduct as determined by a court of competent jurisdiction in a final and nonappealable decision) as a  consequence of (a) default by the Borrower in making a borrowing of, conversion into or continuation of Eurodollar  Loans after the Borrower has given a notice requesting the same in accordance with the provisions of this Agreement,  (b) default by the Borrower in making any prepayment or conversion of Eurodollar Loans after the Borrower has given  a notice thereof in accordance with the provisions of this Agreement or (c) the making of a payment or prepayment of  Eurodollar Loans or the conversion of Eurodollar Loans on a day which is not the last day of an Interest Period with  respect thereto. Such indemnification may include an amount equal to the excess, if any, of (i) the amount of interest  which would have accrued on the amount so prepaid, or converted, or not so borrowed, converted or continued, for  the period from the date of such prepayment or conversion or of such failure to borrow, convert or continue to the last  day of the applicable Interest Period (or, in the case of a failure to borrow, convert or continue, the Interest Period that  would have commenced on the date of such failure) in each case at the applicable rate of interest for such Eurodollar  Loans provided for herein (excluding, however, the Applicable Margin included therein, if any) over (ii) the amount  of interest (as reasonably determined by such Lender) which would have accrued to such Lender on such amount by  placing such amount on deposit for a comparable period with leading banks in the interbank Eurodollar market. If any  Lender becomes entitled to claim any amounts under the indemnity contained in this Subsection 4.12, it shall provide  prompt notice thereof to the Borrower, through the Administrative Agent, certifying (x) that one of the events  described in clause (a), (b) or (c) has occurred and describing in reasonable detail the nature of such event, (y) as to  the loss or expense sustained or incurred by such Lender as a consequence thereof and (z) as to the amount for which  such Lender seeks indemnification hereunder and a reasonably detailed explanation of the calculation thereof. Such a  certificate as to any indemnification pursuant to this Subsection 4.12 submitted by such Lender, through the  Administrative Agent, to the Borrower shall be conclusive in the absence of manifest error. The Borrower shall pay  such Lender the amount shown as due on any such certificate within five Business Days after receipt thereof. This  covenant shall survive the termination of this Agreement and the payment of the Term Loans and all other amounts  payable hereunder.  4.13 Certain Rules Relating to the Payment of Additional Amounts.   (a) Upon the request, and  at the expense of the Borrower, each Lender and Agent to which the Borrower is required to pay any amount pursuant  to Subsection 4.10, 4.11 or 11.5, and any Participant in respect of whose participation such payment is required, shall  reasonably afford the Borrower the opportunity to contest, and reasonably cooperate with the Borrower in contesting,  the imposition of any Tax giving rise to such payment; provided that (i) such Lender or Agent shall not be required to  afford the Borrower the opportunity to so contest unless the Borrower shall have confirmed in writing to such Lender  or Agent its obligation to pay such amounts pursuant to this Agreement and (ii) the Borrower shall reimburse such  Lender or Agent for its reasonable attorneys’, legal counsels’ and accountants’ fees and disbursements incurred in so  cooperating with the Borrower in contesting the imposition of such Tax; provided, however, that notwithstanding the  foregoing no Lender or Agent shall be required to afford the Borrower the opportunity to contest, or cooperate with  the Borrower in contesting, the imposition of any Taxes, if such Lender or Agent in its sole discretion in good faith  determines that to do so would have an adverse effect on it.  (b) If a Lender changes its applicable lending office (other than (i) pursuant to clause (c) below  or (ii) after an Event of Default under Subsection 9.1(a) or (f) has occurred and is continuing) and the effect of such  

 

  - 88 -  change, as of the date of such change, would be to cause the Borrower to become obligated to pay any additional  amount under Subsection 4.10 or 4.11, the Borrower shall not be obligated to pay such additional amount.  (c) If a condition or an event occurs which would, or would upon the passage of time or giving  of notice, result in the payment of any additional amount to any Lender or Agent by the Borrower pursuant to  Subsection 4.10 or 4.11 or result in Affected Loans or commitments to make Affected Loans being automatically  converted to ABR Loans or commitments to make ABR Loans, as the case may be, pursuant to Subsection 4.9, such  Lender or Agent shall promptly notify the Borrower and the Administrative Agent and shall take such steps as may  reasonably be available to it to mitigate the effects of such condition or event (which shall include efforts to rebook  the Loans and Commitments held by such Lender at another lending office, or through another branch or an affiliate,  of such Lender); provided that such Lender or Agent shall not be required to take any step that, in its reasonable  judgment, would be materially disadvantageous to its business or operations or would require it to incur additional  costs (unless the Borrower agrees to reimburse such Lender or Agent for the reasonable incremental out-of-pocket  costs thereof).  (d) If the Borrower shall become obligated to pay additional amounts pursuant to Subsection  4.10 or 4.11 and any affected Lender shall not have promptly taken steps necessary to avoid the need for payments  under Subsection 4.10 or 4.11 or if Affected Loans or commitments to make Affected Loans are automatically  converted to ABR Loans or commitments to make ABR Loans, as the case may be, under Subsection 4.9 and any  affected Lender shall not have promptly taken steps necessary to avoid the need for such conversion under Subsection  4.9, the Borrower shall have the right, for so long as such obligation remains, (i) with the assistance of the  Administrative Agent to seek one or more substitute Lenders reasonably satisfactory to the Administrative Agent and  the Borrower to purchase the affected Loan, in whole or in part, at an aggregate price no less than such Loan’s principal  amount plus accrued interest, and assume the affected obligations under this Agreement, or (ii) so long as no Event of  Default under Subsection  9.1(a) or (f) then exists or will exist immediately after giving effect to the respective  prepayment, upon notice to the Administrative Agent to prepay the affected Loan, in whole or in part, subject to  Subsection 4.12, without premium or penalty. In the case of the substitution of a Lender, then, the Borrower, the  Administrative Agent, the affected Lender, and any substitute Lender shall execute and deliver an appropriately  completed Assignment and Acceptance pursuant to Subsection 11.6(b) to effect the assignment of rights to, and the  assumption of obligations by, the substitute Lender; provided that any fees required to be paid by Subsection 11.6(b)  in connection with such assignment shall be paid by the Borrower or the substitute Lender. In the case of a prepayment  of an affected Loan, the amount specified in the notice shall be due and payable on the date specified therein, together  with any accrued interest to such date on the amount prepaid. In the case of each of the substitution of a Lender and  of the prepayment of an affected Loan, the Borrower shall first pay the affected Lender any additional amounts owing  under Subsections 4.10 and 4.11 (as well as any commitment fees and other amounts then due and owing to such  Lender, including any amounts under this Subsection 4.13) prior to such substitution or prepayment. In the case of the  substitution of a Lender pursuant to this Subsection 4.13(d), if the Lender being replaced does not execute and deliver  to the Administrative Agent a duly completed Assignment and Acceptance and/or any other documentation necessary  to reflect such replacement by the later of (a) the date on which the assignee Lender executes and delivers such  Assignment and Acceptance and/or such other documentation and (b) the date as of which all obligations of the  Borrower owing to such replaced Lender relating to the Loans and participations so assigned shall be paid in full by  the assignee Lender and/or the Borrower to such Lender being replaced, then the Lender being replaced shall be  deemed to have executed and delivered such Assignment and Acceptance and/or such other documentation as of such  date and the Borrower shall be entitled (but not obligated) to execute and deliver such Assignment and Acceptance  and/or such other documentation on behalf of such Lender.  (e) If any Agent or any Lender receives a refund directly attributable to Taxes for which the  Borrower has made payments pursuant to Subsection 4.10(a), 4.11(a) or 11.5, such Agent or such Lender, as the case  may be, shall promptly pay such refund (together with any interest with respect thereto received from the relevant  taxing authority, but net of any reasonable out-of-pocket expense incurred in connection therewith) to the Borrower;  provided, however, that the Borrower agrees promptly to return such refund (together with any interest with respect  thereto due to the relevant taxing authority) (free of all Non-Excluded Taxes) to such Agent or the applicable Lender,  as the case may be, upon receipt of a notice that such refund is required to be repaid to the relevant taxing authority.  (f) The obligations of any Agent, Lender or Participant under this Subsection 4.13 shall  survive the termination of this Agreement and the payment of the Term Loans and all amounts payable hereunder.  

 

  - 89 -  SECTION 5    Representations and Warranties  To induce the Administrative Agent and each Lender to make the Extensions of Credit requested to  be made by it on the Closing Date and on each other date thereafter on which an Extension of Credit is made, each of  Parent and the Borrower with respect to itself and the Group Members, hereby represents and warrants, on the Closing  Date, in each case after giving effect to the Transactions, and on every other date thereafter on which an Extension of  Credit is made, to the Administrative Agent and each Lender that:  5.1 Financial Condition. (a) (i) The audited consolidated balance sheets of Parent as of  September 30, 2020 and September 30, 2019 and the related consolidated statements of operations, comprehensive  income (loss), shareholders’ equity and cash flows of Parent for the Fiscal Years ended September 30, 2020 and  September 30, 2019, reported on by and accompanied by unqualified reports from Deloitte & Touche LLP, and (ii)  the unaudited consolidated balance sheets of Parent and the related consolidated statements of operations,  comprehensive income (loss), shareholders’ equity and cash flows of Parent for the Fiscal Quarter ended March 26,  2021, present fairly, in all material respects, the consolidated financial condition as at such date, and the consolidated  statements of operations and consolidated cash flows for the period then ended, of Parent. All such financial  statements, including the related schedules and notes thereto, have been prepared in accordance with GAAP  consistently applied throughout the periods covered thereby (except as approved by a Responsible Officer, and  disclosed in any such schedules and notes).  (b) As of the Closing Date, except as set forth in the financial statements referred to in  Subsection 5.1(a), there are no liabilities of any Loan Party of any kind, whether accrued, contingent, absolute,  determined, determinable or otherwise, which would reasonably be expected to result in a Material Adverse Effect.  5.2 No Change; Solvent. Since September 30, 2020, there has been no development or event  relating to or affecting any Loan Party which has had or would be reasonably expected to have a Material Adverse  Effect (after giving effect to (i) the consummation of the Transactions, (ii) the making of the Extensions of Credit to  be made on the Closing Date and the application of the proceeds thereof as contemplated hereby, and (iii) the payment  of actual or estimated fees, expenses, financing costs and tax payments related to the transactions contemplated  hereby). As of the Closing Date, after giving effect to the consummation of the Transactions to be consummated on  the Closing Date, the Borrower, together with its Restricted Subsidiaries, is Solvent.  5.3 Corporate Existence; Compliance with Law. Each of the Loan Parties (a) is duly organized,  validly existing and (to the extent applicable in the relevant jurisdiction) in good standing under the laws of the  jurisdiction of its incorporation or formation, except (other than with respect to the Borrower), to the extent that the  failure to be organized, existing and (to the extent applicable) in good standing would not reasonably be expected to  have a Material Adverse Effect, (b) has the legal right to own and operate its property, to lease the property it operates  as lessee and to conduct the business in which it is currently engaged, except to the extent that the failure to have such  legal right would not be reasonably expected to have a Material Adverse Effect, (c) is duly qualified as a foreign  corporation or limited liability company and (to the extent applicable in the relevant jurisdiction) in good standing  under the laws of each jurisdiction where its ownership, lease or operation of property or the conduct of its business  requires such qualification, other than in such jurisdictions where the failure to be so qualified and (to the extent  applicable) in good standing would not be reasonably expected to have a Material Adverse Effect and (d) is in  compliance with all Requirements of Law, except to the extent that the failure to comply therewith would not, in the  aggregate, be reasonably expected to have a Material Adverse Effect.  5.4 Corporate Power; Authorization; Enforceable Obligations. Each Loan Party has the  corporate or other organizational power and authority, and the legal right, to make, deliver and perform the Loan  Documents to which it is a party and, in the case of the Borrower, to obtain Extensions of Credit hereunder, and each  such Loan Party has taken all necessary corporate or other organizational action to authorize the execution, delivery  and performance of the Loan Documents to which it is a party and, in the case of the Borrower, to authorize the  Extensions of Credit to it, if any, on the terms and conditions of this Agreement and any Notes. No consent or  authorization of, filing with, notice to or other similar act by or in respect of, any Governmental Authority or any other  Person is required to be obtained or made by or on behalf of any Loan Party in connection with the execution, delivery,  

 

  - 90 -  performance, validity or enforceability of the Loan Documents to which it is a party or, in the case of the Borrower,  with the Extensions of Credit to it, if any, hereunder, except for (a) consents, authorizations, notices and filings  described in Schedule 5.4, all of which have been obtained or made prior to the Closing Date, (b) filings to perfect the  Liens created by the Security Documents, and (c) consents, authorizations, notices and filings which the failure to  obtain or make would not reasonably be expected to have a Material Adverse Effect. This Agreement has been duly  executed and delivered by Parent and the Borrower, and each other Loan Document to which any Loan Party is a party  will be duly executed and delivered on behalf of such Loan Party. This Agreement constitutes a legal, valid and  binding obligation of Parent and the Borrower and each other Loan Document to which any Loan Party is a party  when executed and delivered will constitute a legal, valid and binding obligation of such Loan Party, enforceable  against such Loan Party in accordance with its terms, in each case except as enforceability may be limited by applicable  domestic or foreign bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of  creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity  or at law).  5.5 No Legal Bar. The execution, delivery and performance of the Loan Documents by any of  the Loan Parties, the Extensions of Credit hereunder and the use of the proceeds thereof (a) will not violate any  Requirement of Law or Contractual Obligation of such Loan Party in any respect that would reasonably be expected  to have a Material Adverse Effect, (b) will not result in, or require the creation or imposition of any Lien (other than  Liens securing the Loan Document Obligations or otherwise permitted hereby) on any of its properties or revenues  pursuant to any such Requirement of Law or Contractual Obligation and (c) will not violate any provision of the  Organizational Documents of such Loan Party or any of the Restricted Subsidiaries, except (other than with respect  to the Borrower) as would not reasonably be expected to have a Material Adverse Effect.  5.6 No Material Litigation. No litigation, investigation or proceeding of or before any arbitrator  or Governmental Authority is pending or, to the knowledge of Parent and the Borrower, threatened by or against any  Group Member or against any of their respective properties or revenues, (a) except as described on Schedule 5.6,  which is so pending or threatened at any time on or prior to the Closing Date and relates to any of the Loan Documents  or any of the transactions contemplated hereby or thereby or (b) which would be reasonably expected to have a  Material Adverse Effect.  5.7 No Default. None of the Group Members is in default under or with respect to any of its  Contractual Obligations in any respect which would be reasonably expected to have a Material Adverse Effect. Since  the Closing Date, no Default or Event of Default has occurred and is continuing.  5.8 Ownership of Property; Liens. Each of the Group Members has good title in fee simple to,  or a valid leasehold interest in, all of its material real property located in the United States of America and Canada,  and good title to, or a valid leasehold interest in, all its other material property located in the United States of America,  except those for which the failure to have such good title or such leasehold interest would not be reasonably expected  to have a Material Adverse Effect, and none of such real or other property is subject to any Lien, except for Liens  permitted hereby (including Permitted Liens). Schedule 5.8 sets forth all fee owned properties of the Loan Parties with  a fair market value of over $12,500,000 as of the Closing Date.  5.9 Intellectual Property. Each Group Member owns beneficially, or has the legal right to use,  all United States, Canadian and foreign patents, patent applications, trademarks, trademark applications, trade names,  copyrights, and rights in know-how and trade secrets necessary for each of them to conduct its business as currently  conducted (the “Intellectual Property”) except for those the failure to own or have such legal right to use would not  be reasonably expected to have a Material Adverse Effect. Except as provided on Schedule 5.9, no claim has been  asserted in writing and is pending by any Person against any Group Member challenging the use of any Intellectual  Property or the validity or effectiveness of any such Intellectual Property, nor does Parent or the Borrower know of  any such claim, and, to the knowledge of Parent and the Borrower, the use of such Intellectual Property by any Group  Member does not infringe on the rights of any Person, except for such claims and infringements which in the aggregate,  would not be reasonably expected to have a Material Adverse Effect.  5.10 Taxes. To the knowledge of Parent and the Borrower, (1) each Group Member has filed or  caused to be filed all material tax returns which are required to be filed by it and has paid (a) all Taxes shown to be  due and payable on such returns and (b) all Taxes shown to be due and payable on any assessments of which it has  

 

  - 91 -  received notice made against it or any of its property (including the Mortgaged Fee Properties) and all other Taxes  imposed on it or any of its property by any Governmental Authority; and (2) no Tax Liens have been filed (except for  Liens for Taxes not yet due and payable), and no claim is being asserted in writing, with respect to any such Taxes (in  each case other than in respect of any such (i) Taxes with respect to which the failure to pay, in the aggregate, would  not have a Material Adverse Effect or (ii) Taxes the amount or validity of which are currently being contested in good  faith by appropriate proceedings diligently conducted and with respect to which reserves in conformity with GAAP  have been provided on the books of Parent, Holdings, the Borrower or its Restricted Subsidiaries, as the case may be).  5.11 Federal Regulations. No part of the proceeds of any Extensions of Credit will be used for  any purpose which violates the provisions of the Regulations of the Board, including Regulation T, Regulation U or  Regulation X of the Board. If requested by any Lender or the Administrative Agent, the Borrower will furnish to the  Administrative Agent and each Lender a statement to the foregoing effect in conformity with the requirements of FR  Form G-3 or FR Form U-1, referred to in said Regulation U.  5.12 ERISA. (a) During the five year period prior to each date as of which this representation is  made, or deemed made, none of the following events or conditions, either individually or in the aggregate, has resulted  or is reasonably likely to result in a Material Adverse Effect:  (i) a Reportable Event with respect to a Single Employer  Plan, (ii) a failure to satisfy the minimum funding standard (within the meaning of Section 412 of the Code or Section  302 of ERISA) with respect to a Single Employer Plan, (iii) any noncompliance with the applicable provisions of  ERISA or the Code with respect to any Plan, (iv) a termination of a Single Employer Plan (other than a standard  termination pursuant to Section 4041(b) of ERISA), (v) a Lien on the property of Borrower or any Commonly  Controlled Entity  in favor of the PBGC or a Single Employer Plan, (vi) a complete or partial withdrawal from any  Multiemployer Plan by the Borrower or any Commonly Controlled Entity, (vii) Insolvency of any Multiemployer  Plan; or (viii) any transactions that resulted or could reasonably be expected to result in any liability to the Borrower  or any Commonly Controlled Entity under Section 4069 of ERISA or Section 4212(c) of ERISA.  (b) With respect to any Foreign Plan, none of the following events or conditions exists and is  continuing that, either individually or in the aggregate, would reasonably be expected to have a Material Adverse  Effect:  (i) substantial non-compliance with its terms and with the requirements of any and all applicable laws, statutes,  rules, regulations and orders, (ii) failure to be maintained, where required, in good standing with applicable regulatory  authorities, (iii) any obligation of any Group Member in connection with the termination or partial termination of, or  withdrawal from, any Foreign Plan, (iv) any Lien on the property of any Group Member in favor of a Governmental  Authority as a result of any action or inaction regarding a Foreign Plan, (v) for each Foreign Plan which is a funded  or insured plan, failure to be funded or insured on an ongoing basis to the extent required by applicable non-U.S. law  (using actuarial methods and assumptions which are consistent with the valuations last filed with the applicable  Governmental Authorities), (vi) any facts that, to the best knowledge of each of Parent and the Borrower or any of its  Restricted Subsidiaries, exist that would reasonably be expected to give rise to a dispute and any pending or threatened  disputes that, to the best knowledge of each of Parent and the Borrower or any of its Restricted Subsidiaries, would  reasonably be expected to result in a material liability to any Group Member concerning the assets of any Foreign  Plan (other than individual claims for the payment of benefits); (vii) failure to make all contributions in a timely  manner to the extent required by applicable non-U.S. law; and (viii) a Canadian Pension Event.  As of the Closing  Date, no Foreign Plan is a Canadian Defined Benefit Plan.  5.13 Collateral. Upon execution and delivery thereof by the parties thereto, the Guarantee and  Collateral Agreement, the Canadian Guarantee and Collateral Agreement and the Mortgages (if any) will be effective  to create (to the extent described therein) in favor of the Collateral Agent for the benefit of the Secured Parties, a valid  and enforceable security interest in or liens on the Collateral described therein, except as to enforcement, as may be  limited by applicable domestic or foreign bankruptcy, insolvency, fraudulent conveyance or preference,  reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, general equitable  principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair  dealing. When (a) all Filings (as defined in the Guarantee and Collateral Agreement) have been completed, (b) all  applicable Instruments, Chattel Paper and Documents (each as described therein) constituting Collateral a security  interest in which is perfected by possession have been delivered to, and/or are in the continued possession of, the  Collateral Agent, the applicable Collateral Representative or any Additional Agent, as applicable (or their respective  agents appointed for purposes of perfection), in accordance with the applicable ABL/Term Loan Intercreditor  Agreement, Junior Lien Intercreditor Agreement or Other Intercreditor Agreement, (c) all Deposit Accounts and  

 

  - 92 -  Pledged Stock (each as defined in the Guarantee and Collateral Agreement) a security interest in which is required by  the Security Documents to be perfected by “control” (as described in the Uniform Commercial Code as in effect in  each applicable jurisdiction (in the case of Deposit Accounts) and the State of New York (in the case of Pledged Stock)  from time to time) are under the “control” of the Collateral Agent, the Administrative Agent, the applicable Collateral  Representative or any Additional Agent, as applicable (or their respective agents appointed for purposes of perfection),  in accordance with the applicable ABL/Term Loan Intercreditor Agreement, Junior Lien Intercreditor Agreement or  Other Intercreditor Agreement, and (d) the Mortgages (if any) have been duly recorded in the proper recorders’ offices  or appropriate public records and the mortgage recording fees and taxes in respect thereof, if any, are paid and  compliance is otherwise had with the formal requirements of state or local law applicable to the recording of real  property mortgages generally, the security interests and liens granted pursuant to the Guarantee and Collateral  Agreement and the Mortgages shall constitute (to the extent described therein and with respect to the Mortgages, only  as relates to the real property security interests and liens granted pursuant thereto) a perfected security interest in (to  the extent intended to be created thereby and required to be perfected under the Loan Documents), all right, title and  interest of each pledgor or mortgagor (as applicable) party thereto in the Collateral described therein (excluding  Commercial Tort Claims, as defined in the Guarantee and Collateral Agreement, other than such Commercial Tort  Claims set forth on Schedule 6 thereto (if any)) with respect to such pledgor or mortgagor (as applicable).  Notwithstanding any other provision of this Agreement, capitalized terms that are used in this Subsection 5.13 and  not defined in this Agreement are so used as defined in the applicable Security Document.  5.14 Investment Company Act; Other Regulations. The Borrower is not an “investment  company”, or a company “controlled” by an “investment company”, within the meaning of the Investment Company  Act. The Borrower is not subject to regulation under any federal or state statute or regulation (other than Regulation  X of the Board) which limits its ability to incur Indebtedness as contemplated hereby.  5.15 Subsidiaries. Schedule 5.15 sets forth all the Subsidiaries of the Borrower at the Closing  Date, the jurisdiction of their organization and the direct or indirect ownership interest of the Borrower therein.  5.16 Purpose of Loans. The proceeds of Loans shall be used by the Borrower (i) in the case of  the Initial Term Loans funded on the Closing Date, to effect, in part, the Transactions, and to pay certain fees and  expenses relating thereto, and (ii) in the case of all other Loans, to finance the working capital, capital expenditures,  business requirements of the Borrower and its Subsidiaries and for other purposes not prohibited by this Agreement.  5.17 Environmental Matters. Except as disclosed on Schedule 5.17 or as would not, individually  or in the aggregate, reasonably be expected to have a Material Adverse Effect:  (a) The Group Members:  (i) are, and within the period of all applicable statutes of limitation  have been, in compliance with all applicable Environmental Laws; (ii) hold all Environmental Permits (each of which  is in full force and effect) required for any of their current operations or for any property owned, leased, or otherwise  operated by any of them and reasonably expect to timely obtain without material expense all such Environmental  Permits required for planned operations; (iii) are, and within the period of all applicable statutes of limitation have  been, in compliance with all of their Environmental Permits; and (iv) believe they will be able to maintain compliance  with Environmental Laws and Environmental Permits, including any reasonably foreseeable future requirements  thereof.  (b) Materials of Environmental Concern have not been transported, disposed of, emitted,  discharged, or otherwise released or threatened to be released, to, at or from any real property presently or to the  knowledge of Parent and the Borrower formerly owned, leased or operated by any Group Member or at any other  location, which would reasonably be expected to (i) give rise to liability or other Environmental Costs of any Group  Member under any applicable Environmental Law, or (ii) interfere with the planned or continued operations of the  Group Members, or (iii) impair the fair saleable value of any real property owned by any Group Member that is part  of the Collateral.  (c) There is no judicial, administrative, or arbitral proceeding (including any notice of  violation or alleged violation) under any Environmental Law to which any Group Member is, or to the knowledge of  any Group Member is reasonably likely to be, named as a party that is pending or, to the knowledge of any Group  Member, threatened in writing.  

 

  - 93 -  (d) No Group Member  has received any written request for information, or been notified that  it is a potentially responsible party, under the federal Comprehensive Environmental Response, Compensation, and  Liability Act or any similar Environmental Law, or received any other written request for information from any  Governmental Authority with respect to any Materials of Environmental Concern.  (e) No Group Member has entered into or agreed to any consent decree, order, or settlement  or other agreement, nor is subject to any judgment, decree, or order or other agreement, in any judicial, administrative,  arbitral, or other forum, relating to compliance with or liability under any Environmental Law.  5.18 No Material Misstatements. The written information, reports, financial statements, exhibits  and schedules furnished by or on behalf of the Borrower to the Administrative Agent, the Other Representatives and  the Lenders on or prior to the Closing Date in connection with the negotiation of any Loan Document or included  therein or delivered pursuant thereto, taken as a whole, did not contain as of the Closing Date any material  misstatement of fact and did not omit to state as of the Closing Date any material fact necessary to make the statements  therein, in the light of the circumstances under which they were made, not materially misleading in their presentation  of the Group Members taken as a whole. It is understood that (a) no representation or warranty is made concerning  the forecasts, estimates, pro forma information, projections and statements as to anticipated future performance or  conditions, and the assumptions on which they were based or concerning any information of a general economic nature  or general information about Borrower’s and its Subsidiaries’ industry, contained in any such information, reports,  financial statements, exhibits or schedules, except that, in the case of such forecasts, estimates, pro forma information,  projections and statements, as of the date such forecasts, estimates, pro forma information, projections and statements  were generated, (i) such forecasts, estimates, pro forma information, projections and statements were based on the  good faith assumptions of the management of the Borrower and (ii) such assumptions were believed by such  management to be reasonable and (b) such forecasts, estimates, pro forma information and statements, and the  assumptions on which they were based, may or may not prove to be correct.  5.19 Labor Matters. There are no strikes pending or, to the knowledge of Parent or the Borrower,  reasonably expected to be commenced against any Group Member which, individually or in the aggregate, would  reasonably be expected to have a Material Adverse Effect. The hours worked and payments made to employees of  any of the Group Members have not been in violation of any applicable laws, rules or regulations, except where such  violations would not reasonably be expected to have a Material Adverse Effect.  5.20 Insurance. Schedule 5.20 sets forth a complete and correct listing as of the date that is two  Business Days prior to the Closing Date of all insurance that is (a) maintained by the Loan Parties (other than Holdings)  and (b) material to the business and operations of the Group Members taken as a whole, with the amounts insured  (and any deductibles) set forth therein.  5.21 Anti-Corruption Laws and Sanctions. Each of Parent, Holdings and the Borrower has  implemented and maintains in effect policies and procedures designed to ensure compliance by Parent, Holdings, the  Borrower and its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption  Laws and applicable Sanctions, and each Group Member and their respective officers and directors and to the  knowledge of each of Parent and the Borrower its employees and agents, are in compliance with (a) the PATRIOT  Act, (b) the Trading with the Enemy Act, as amended, (c) the PCMLTFA and (d) Anti-Corruption Laws and applicable  Sanctions in all material respects. Neither any Loan Party nor, any of their respective directors or officers, except as  would not reasonably be expected to have a Material Adverse Effect, (i) any Restricted Subsidiary that is not a Loan  Party or (ii) to the knowledge of each of Parent and the Borrower, any agent or employee of any Group Member, is a  Sanctioned Person. No Borrowing or Letter of Credit, use of proceeds or other transaction contemplated by this  Agreement will violate any Anti-Corruption Law or applicable Sanctions. Notwithstanding the foregoing, nothing  herein shall require any Loan Party organized under the laws of Canada or a subdivision thereof or any of their  Subsidiaries which are organized or incorporated under the law of Canada or any subdivision thereof (each such party,  a “Canadian Party”), to take action or refrain from taking any action, to the extent such provisions would otherwise  contravene, or require any notification to the Attorney General of Canada under the Foreign Extraterritorial Measures  (United States) Order, 1992, by any such Canadian Party and this Agreement, including, without limitation, Section  5.21, Section 7.4 and Section 7.10, shall be limited and interpreted accordingly.    5.22 Affected Financial Institutions.  No Loan Party is an Affected Financial Institution.  

 

  - 94 -  SECTION 6  6.1 Conditions to Initial Extension of Credit on the Closing Date. This Agreement, including  the agreement of each Lender to make the initial Extension of Credit requested to be made by it, shall become effective  on the date on which the following conditions precedent shall have been satisfied or waived:  (a) Loan Document. The Administrative Agent shall have received (i) this Agreement,  executed and delivered by the Borrower and Parent, (ii) the Guarantee and Collateral Agreement, executed and  delivered by Parent, Holdings, the Borrower and each Subsidiary Guarantor, (iii) the Canadian Guarantee and  Collateral Agreement executed and delivered by Columbia-MBF Inc. and (iv) the ABL/Term Loan Intercreditor  Agreement, executed and delivered by Parent, Holdings, the Borrower and each Subsidiary Guarantor.  (b) Transactions.  Substantially concurrently with the initial funding of the Term Loans, (i) the  Unsecured Notes shall have been issued and (ii) the repayment and termination of all Indebtedness outstanding under  the Existing Credit Agreement shall have been consummated and all commitments in respect thereof, and any security  interests and guaranties granted in connection therewith, if any, shall have been terminated and released (or have been  authorized to be released pursuant to a customary payoff letter or provision shall have been made for the repayment  or constructive discharge of such Indebtedness).    (c) Financial Information.  The Administrative Agent shall have received (i) audited  consolidated balance sheets of Parent as of September 30, 2020 and September 30, 2019, (ii) audited consolidated  statements of operations, comprehensive income (loss), shareholders’ equity and cash flows of Parent for the Fiscal  Years ended September 30, 2020 and September 30, 2019, and (iii) unaudited consolidated balance sheets and related  consolidated statements of operations, comprehensive income (loss), shareholders’ equity and cash flows of the  Borrower for the Fiscal Quarter ended March 26, 2021.  (d) Fees.  All costs, fees and expenses required to be paid or reimbursed by the Borrower to  the Administrative Agent, the Other Representatives and the Lenders in connection with this Agreement (including  the reasonable and documented fees and expenses of legal counsel to the Administrative Agent) and all costs, fees and  expenses required to be paid or reimbursed by the Borrower pursuant to the letter agreements entered into with any  Other Representative shall have been paid or shall have been authorized to be deducted from the proceeds of the initial  extensions of credit under this Agreement to the extent due and invoiced to the Borrower at least three Business Days  prior to the date hereof.  (e) Legal Opinions. The Administrative Agent shall have received the executed legal opinions  of Mayer Brown LLP, counsel to the Borrower and its Restricted Subsidiaries, McMillan LLP, and certain other local  counsel to the Borrower and its Restricted Subsidiaries, as reasonably requested by the Administrative Agent, each in  form and substance reasonably acceptable to the Administrative Agent.  (f) Secretary’s Certificate.  The Administrative Agent shall have received (i) a certificate of  each Loan Party, dated the Closing Date, substantially in the form of Exhibit L, with appropriate insertions and  attachments, including (A) the certificate, articles or memorandum of incorporation, in the case of a Loan Party that  is a corporation, and certificate of formation, in the case of a Loan Party that is a limited liability company, in each  case, certified by the relevant authority of the jurisdiction of organization of such Loan Party as of a recent date, (B)  the bylaws and any shareholders’ agreement, in the case of a Loan Party that is a corporation, and limited liability  company agreement or operating agreement, in the case of a Loan Party that is a limited liability company, certified  as of the Closing Date by its secretary, an assistant secretary or a Responsible Officer as being in full force and effect  without modification or amendment, (C) resolutions of the governing bodies of each Loan Party approving and  authorizing the execution, delivery and performance of Loan Documents to which it is a party, certified as of the  Closing Date by its secretary, an assistant secretary or a Responsible Officer as being in full force and effect without  modification or amendment and (D) signature and incumbency certificates of the Responsible Officers of each Loan  Party executing the Loan Documents to which it is a party, and (ii) a good standing certificate for each Loan Party  from its jurisdiction of organization.  (g) Officer’s Certificate. The Administrative Agent shall have received a certificate from the  Borrower, dated the Closing Date, substantially in the form of Exhibit M hereto.  

 

  - 95 -  (h) Solvency Certificate.  The Administrative Agent shall have received a solvency certificate  from a Responsible Officer in the form of Exhibit H.  (i) [Reserved].  (j) Filings, Registrations and Recordings.  Each document (including any Uniform  Commercial Code or PPSA financing statement) required by the Security Documents or under law or reasonably  requested by the Administrative Agent to be filed, registered or recorded in order to create in favor of the  Administrative Agent, for the benefit of the Secured Parties, a perfected Lien on the Collateral described therein, prior  and superior in right to any other Person (other than with respect to Liens expressly permitted by Section 8.6), shall  be in proper form for filing, registration or recordation.  (k) Patriot Act and PCMLTFA.  The Administrative Agent shall have received, at least three  Business Days prior to the Closing Date, all documentation and other customary information about any Loan Party to  the extent reasonable and customary and requested by the Administrative Agent in writing at least 10 Business Days  prior to the Closing Date that is reasonably required by United States and Canadian bank regulatory authorities under  applicable “know your customer”, beneficial ownership and anti-money laundering rules and regulations, including  the Patriot Act and the PCMLTFA, as applicable.  The Administrative Agent shall notify the Borrower and the Lenders of the Closing Date, and such notice  shall be conclusive and binding.  6.2 Conditions to Each Extension of Credit. The agreement of each Lender to make any  Extension of Credit requested to be made by it on any date (other than an Extension of Credit under an Incremental  Facility incurred in connection with a Limited Condition Transaction, which shall be subject to the provisions of  Section 1.2(h)) is subject to the satisfaction or waiver of the following conditions precedent:  (a) Notice. With respect to any Loan, the Administrative Agent shall have received a duly  executed notice of borrowing.  (b) Representations and Warranties. Each of the representations and warranties made by any  Loan Party pursuant to this Agreement or any other Loan Document (or in any amendment, modification or  supplement hereto or thereto) to which it is a party, and each of the representations and warranties contained in any  certificate furnished at any time by or on behalf of any Loan Party pursuant to this Agreement or any other Loan  Document shall, except to the extent that they relate to a particular date, be true and correct in all material respects on  and as of such date as if made on and as of such date.  (c) No Default. No Default or Event of Default shall have occurred and be continuing on such  date or after giving effect to the Extensions of Credit requested to be made on such date.  Each Extension of Credit (other than an Extension of Credit under an Incremental Facility incurred  in connection with a Limited Condition Transaction, which shall be subject to the provisions of Section 1.2(h)) by or  on behalf of the Borrower hereunder shall constitute a representation and warranty by the Borrower as of the date of  such borrowing that the conditions contained in this Subsection 6.2 have been satisfied.  SECTION 7    Affirmative Covenants  Each of Parent and the Borrower hereby agrees that, from and after the Closing Date until payment  in full of the Loans and all other Loan Document Obligations then due and owing to any Lender or any Agent  hereunder, the Borrower shall and (except in the case of delivery of financial information, reports and notices) Parent  and the Borrower shall cause each Group Member to:  

 

  - 96 -  7.1 Financial Statements. Furnish to the Administrative Agent for delivery to each Lender (and  the Administrative Agent agrees to make and so deliver such copies):  (a) as soon as available, but in any event not later than the fifth Business Day after the 90th  day following the end of each Fiscal Year of Parent ending after the Closing Date (or such longer period as would be  permitted by the SEC if Parent (or any Parent Entity whose financial statements satisfy Parent’s reporting obligations  under this Section 7.1(a)) were then subject to SEC reporting requirements as a non-accelerated filer), a copy of the  consolidated balance sheet of Parent as at the end of such year and the related consolidated statements of operations,  comprehensive income (loss), shareholders’ equity and cash flows for such year, setting forth, in each case, in  comparative form the figures for and as of the end of the previous year, reported on without a “going concern” or like  qualification or exception, or qualification arising out of the scope of the audit (provided that such report may contain  a “going concern” or like qualification or exception, or qualification arising out of the scope of the audit, if such  qualification or exception is related solely to (i) an upcoming Maturity Date hereunder or an upcoming “maturity date”  under any other Indebtedness Incurred in compliance with this Agreement, (ii) any potential inability to satisfy any  financial maintenance covenant included in any Indebtedness of Parent or its Subsidiaries on a future date in a future  period or (iii) the activities, operations, financial results, assets or liabilities of any Unrestricted Subsidiary), by  Deloitte & Touche LLP or other independent certified public accountants of nationally recognized standing (it being  agreed that the furnishing of (x) the Borrower’s or any Parent Entity’s annual report on Form 10-K for such year, as  filed with the SEC, or (y) the financial statements of any Parent Entity that would satisfy the requirements for inclusion  in a Form 10-K, will, in each case, satisfy the obligation under this Subsection 7.1(a) with respect to such year,  including with respect to the requirement that such financial statements be reported on without a “going concern” or  like qualification or exception, or qualification arising out of the scope of the audit, so long as the report included in  such Form 10-K does not contain any “going concern” or like qualification or exception (other than a “going concern”  or like qualification or exception with respect to (i) an upcoming Maturity Date hereunder or an upcoming “maturity  date” under any other Indebtedness Incurred in compliance with this Agreement, (ii) any potential inability to satisfy  any financial maintenance covenant included in any Indebtedness of Parent or its Subsidiaries on a future date or in a  future period or (iii) the activities, operations, financial results, assets or liabilities of any Unrestricted Subsidiary));  (b) as soon as available, but in any event not later than the fifth Business Day following the  45th day following the end of each of the first three quarterly periods of each Fiscal Year of Parent commencing with  the Fiscal Quarter ending June 30, 2021 (or such longer period as would be permitted by the SEC if the Borrower or  any Parent Entity whose financial statements satisfy the Borrower’s reporting obligations under this Section 7.1(b))  were then subject to SEC reporting requirements as a non-accelerated filer), the unaudited consolidated balance sheet  of Parent as at the end of such quarter and the related unaudited consolidated statements of operations, comprehensive  income (loss), shareholders’ equity and cash flows of Parent for such quarter and the portion of the Fiscal Year through  the end of such quarter, setting forth in comparative form the figures for and as of the corresponding periods of the  previous year, in each case certified by a Responsible Officer of the Borrower as being fairly stated in all material  respects (subject to normal year-end audit and other adjustments) (it being agreed that the furnishing of (x) Parent’s  or any Parent Entity’s quarterly report on Form 10-Q for such quarter, as filed with the SEC, or (y) the financial  statements of any Parent Entity that would satisfy the requirements for inclusion in a Form 10-Q, will, in each case,  satisfy the obligations under this Subsection 7.1(b) with respect to such quarter;  (c) to the extent applicable, concurrently with any delivery of consolidated financial  statements referred to in Subsections 7.1(a) and (b) above, related unaudited condensed consolidating financial  statements and appropriate reconciliations reflecting the material adjustments necessary (as determined by the  Borrower in good faith) to eliminate the accounts of Unrestricted Subsidiaries (if any) from such consolidated financial  statements; and  (d) all such financial statements delivered pursuant to Subsection 7.1(a) or (b) to (and, in the  case of any financial statements delivered pursuant to Subsection 7.1(b) shall be certified by a Responsible Officer of  Parent to) fairly present in all material respects the financial condition of Parent and its Subsidiaries in conformity  with GAAP and to be (and, in the case of any financial statements delivered pursuant to Subsection 7.1(b) shall be  certified by a Responsible Officer of Parent as being) in reasonable detail and prepared in accordance with GAAP  applied consistently throughout the periods reflected therein and with prior periods that began on or after December  22, 2010 (except as disclosed therein, and except, in the case of any financial statements delivered pursuant to  Subsection 7.1(b), for the absence of certain notes).  

 

  - 97 -  Notwithstanding anything in clauses (a) or (b) of this Subsection 7.1 to the contrary, except as  expressly required with respect to Unrestricted Subsidiaries in clause (c) above, in no event shall any annual or  quarterly financial statements delivered pursuant to clauses (a) or (b) of this Subsection 7.1 be required to (x) include  any separate consolidating financial information with respect to the Borrower, any Subsidiary Guarantor or any other  Affiliate of the Borrower, or any separate financial statements or information for the Borrower, any Subsidiary  Guarantor or any Affiliate of the Borrower, (y) comply with Section 302, Section 404 and Section 906 of the Sarbanes  Oxley Act of 2002, as amended, or related items 307, 308 and 308T of Regulation S-K under the Securities Act and  (z) comply with Rule 3-05, Rule 3-09, Rule 3-10 and Rule 3-16 of Regulation S-X under the Securities Act.  7.2 Certificates; Other Information. Furnish to the Administrative Agent for delivery to each  Lender (and the Administrative Agent agrees to make and so deliver such copies):  (a) concurrently with the delivery of the financial statements and reports referred to in  Subsections 7.1(a) and (b), a certificate signed by a Responsible Officer of Parent in substantially the form of Exhibit  U or such other form as may be agreed between Parent and the Administrative Agent (a “Compliance Certificate”) (i)  stating that, to the best of such Responsible Officer’s knowledge, each of the Group Members during such period has  observed or performed all of its covenants and other agreements, and satisfied every condition, contained in this  Agreement or the other Loan Documents to which it is a party to be observed, performed or satisfied by it, and that  such Responsible Officer has obtained no knowledge of any Default or Event of Default, except, in each case, as  specified in such certificate, and (ii) commencing with the Compliance Certificate for the Fiscal Year ended September  30, 2022, if (A) delivered with the financial statements required by Subsection 7.1(a) and (B) the Consolidated First  Lien Leverage Ratio as of the last day of the immediately preceding Fiscal Year was greater than or equal to 2.50:1.00,  set forth in reasonable detail the amount of (and the calculations required to establish the amount of) Excess Cash  Flow for the respective Fiscal Year covered by such financial statements;  (b) within five Business Days after the same are filed, copies of all financial statements and  periodic reports which Parent may file with the SEC or any successor or analogous Governmental Authority;  (c) within five Business Days after the same are filed, copies of all registration statements and  any amendments and exhibits thereto, which Parent may file with the SEC or any successor or analogous  Governmental Authority;  (d) promptly, such additional financial and other information regarding the Loan Parties and  their Restricted Subsidiaries as any Agent or the Required Lenders through the Administrative Agent may from time  to time reasonably request; and  (e) promptly upon reasonable request from the Administrative Agent calculations of  Consolidated EBITDA and other Fixed GAAP Terms as reasonably requested by the Administrative Agent promptly  following receipt of a written notice from the Borrower electing to change the Fixed GAAP Date, which calculations  shall show the calculations of the respective Fixed GAAP Terms both before and after giving effect to the change in  the Fixed GAAP Date and identify the material change(s) in GAAP giving rise to the change in such calculations.  Documents required to be delivered pursuant to Subsection 7.1(a), 7.1(b), 7.1(c), 7.2(a), 7.2(b),  7.2(c), 7.2(d) or 7.2(e) may at the Borrower’s option 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 (or any Parent Entity’s) website on the Internet at the website address listed on Schedule 7.2 (or such other  website address as the Borrower may specify by written notice to the Administrative Agent from time to time); or (ii)  on which such documents are posted on the Borrower’s (or any Parent Entity’s) behalf on an Internet or intranet  website to which each Lender and the Administrative Agent have access (whether a commercial, third-party website  (including any website maintained by the SEC) or whether sponsored by the Administrative Agent). Following the  electronic delivery of any such documents by posting such documents to a website in accordance with the preceding  sentence (other than the posting by the Borrower of any such documents on any website maintained for or sponsored  by the Administrative Agent), the Borrower shall promptly provide the Administrative Agent notice of such delivery  (which notice may be by facsimile or electronic mail) and the electronic location at which such documents may be  accessed; provided that, in the absence of bad faith, the failure to provide such prompt notice shall not constitute a  Default hereunder.  

 

  - 98 -  7.3 Payment of Taxes. Pay, discharge or otherwise satisfy at or before maturity or before they  become delinquent, as the case may be, all taxes except where the amount or validity thereof is currently being  contested in good faith by appropriate proceedings diligently conducted and reserves in conformity with GAAP with  respect thereto have been provided on the books of the Borrower or any of its Restricted Subsidiaries, as the case may  be, or except to the extent that failure to do so, in the aggregate, would not reasonably be expected to have a Material  Adverse Effect.  7.4 Conduct of Business and Maintenance of Existence; Compliance with Contractual  Obligations and Requirements of Law. Preserve, renew and keep in full force and effect its existence and take all  reasonable action to maintain all rights, privileges and franchises necessary or desirable in the normal conduct of the  business of the Borrower and its Restricted Subsidiaries, taken as a whole, except as otherwise permitted pursuant to  Subsection 8.4 or 8.7; provided that the Group Members shall not be required to maintain any such rights, privileges  or franchises and the Borrower’s Restricted Subsidiaries shall not be required to maintain such existence, if the failure  to do so would not reasonably be expected to have a Material Adverse Effect; Parent will, and will cause each of its  Subsidiaries to, comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or  its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to  result in a Material Adverse Effect.  Parent will maintain in effect and enforce policies and procedures designed to  ensure compliance by the Parent, its Subsidiaries and their respective directors, officers, employees and agents with  Anti-Corruption Laws and applicable Sanctions.  7.5 Maintenance of Property; Insurance. (a) (i) Keep all property necessary in the business of  the Group Members, taken as a whole, in good working order and condition, except where failure to do so would not  reasonably be expected to have a Material Adverse Effect; (ii) use commercially reasonable efforts to maintain with  financially sound and reputable insurance companies (or any Captive Insurance Subsidiary) insurance on, or self- insure, all property material to the business of the Group Members, taken as a whole, in at least such amounts and  against at least such risks (but including in any event public liability and business interruption) as are usually insured  against in the same general area by companies engaged in the same or a similar business; (iii) furnish to the  Administrative Agent, upon written request, information in reasonable detail as to the insurance carried; (iv) use  commercially reasonable efforts to maintain property and liability policies that provide that in the event of any  cancellation thereof during the term of the policy, either by the insured or by the insurance company, the insurance  company shall provide to the Administrative Agent at least 30 days’ prior written notice thereof, or in the case of  cancellation for non-payment of premium, ten days’ prior written notice thereof; (v) in the event of any material  change in any of the property or liability policies referenced in the preceding clause (iv), use commercially reasonable  efforts to provide the Administrative Agent with at least 30 days’ prior written notice thereof; and (vi) use  commercially reasonable efforts to ensure, that subject to the ABL/Term Loan Intercreditor Agreement, any Junior  Lien Intercreditor Agreement or any Other Intercreditor Agreement, at all times the Collateral Agent for the benefit  of the Secured Parties, shall be named as an additional insured with respect to liability policies maintained by each  Loan Party and the Collateral Agent for the benefit of the Secured Parties, shall be named as loss payee with respect  to the property insurance maintained by the Loan Parties; provided that, unless an Event of Default shall have occurred  and be continuing, (A) the Collateral Agent shall turn over to the Borrower any amounts received by it as an additional  insured or loss payee under any property insurance maintained by Parent and its Subsidiaries, (B) the Collateral Agent  agrees that the Parent and/or its applicable Subsidiary shall have the sole right to adjust or settle any claims under such  insurance and (C) all proceeds from a Recovery Event shall be paid to the Borrower.  (b) With respect to each property of the Loan Parties subject to a Mortgage:  (i) If any portion of any such property is located in an area identified as a special flood hazard  area by the Federal Emergency Management Agency or other applicable agency, such Loan Party shall  maintain or cause to be maintained, flood insurance to the extent required by, and in compliance with, the  Flood Insurance Laws and deliver to the Administrative Agent evidence of such insurance in form and  substance reasonably acceptable to the Administrative Agent.  (ii) The applicable Loan Party promptly shall comply with and conform to (A) all provisions  of each such insurance policy, and (B) all requirements of the insurers applicable to such party or to such  property or to the use, manner of use, occupancy, possession, operation, maintenance, alteration or repair of  

 

  - 99 -  such property, except for such non-compliance or non-conformity as would not, individually or in the  aggregate, reasonably be expected to have a Material Adverse Effect.  (iii) If the Borrower is in default of its obligations to insure or deliver any such prepaid policy  or policies, the result of which would reasonably be expected to have a Material Adverse Effect, then the  Administrative Agent, at its option upon ten days’ written notice to the Borrower, may effect such insurance  from year to year at rates substantially similar to the rate at which any Group Member had insured such  property, and pay the premium or premiums therefor, and the Borrower shall pay to the Administrative Agent  on demand such premium or premiums so paid by the Administrative Agent with interest from the time of  payment at a rate per annum equal to 2.00%.  (iv) If such property, or any part thereof, shall be destroyed or damaged and the reasonably  estimated cost thereof would exceed $12,500,000, the Borrower shall give prompt notice thereof to the  Administrative Agent. All insurance proceeds paid or payable in connection with any damage or casualty to  any property shall be applied in the manner specified in the proviso to Subsection 7.5(a).  7.6 Inspection of Property; Books and Records; Discussions. In the case of the Borrower, keep  proper books and records in a manner to allow financial statements to be prepared in conformity with GAAP  consistently applied in respect of all material financial transactions and matters involving the material assets and  business of the Group Members, taken as a whole; and permit representatives of the Administrative Agent to visit and  inspect any of its properties and examine and, to the extent reasonable, make abstracts from any of its books and  records and to discuss the business, operations, properties and financial and other condition of the Group Members  with officers of the Group Members and with its independent certified public accountants, in each case at any  reasonable time, upon reasonable notice; provided that (a) except during the continuation of an Event of Default, only  one such visit shall be at the Borrower’s expense, and (b) during the continuation of an Event of Default, the  Administrative Agent or its representatives may do any of the foregoing at the Borrower’s expense; and provided,  further, that representatives of the Borrower may be present during any such visits, discussions and inspections.  Notwithstanding anything to the contrary in Subsection 7.2(d) or in this Subsection 7.6, none of the Group Members  will be required to disclose or permit the inspection or discussion of, any document, information or other matter (i)  that constitutes non-financial trade secrets or non-financial proprietary information, (ii) in respect of which disclosure  to the Administrative Agent or the Lenders (or their respective representatives) is prohibited by Requirement of Law  or any binding agreement or (iii) that is subject to attorney client, solicitor client or similar privilege or constitutes  attorney or legal counsel work product.  7.7 Notices. Promptly give notice to the Administrative Agent and each Lender of:  (a) as soon as possible after a Responsible Officer of the Borrower knows thereof, the  occurrence of any Default or Event of Default;  (b) as soon as possible after a Responsible Officer of the Borrower knows thereof, any default  or event of default under any Contractual Obligation of any Group Member, other than as previously disclosed in  writing to the Lenders, which would reasonably be expected to have a Material Adverse Effect;  (c) as soon as possible after a Responsible Officer of the Borrower knows thereof, the  occurrence of (i) any default or event of default under the Senior ABL Facility, (ii) any default or event of default  under the Unsecured Notes, or (iii) any payment default under any Additional Obligations Documents or under any  agreement or document governing other Indebtedness, in each case relating to Indebtedness in an aggregate principal  amount equal to or greater than $50,000,000;  (d) as soon as possible after a Responsible Officer of the Borrower knows thereof, any  litigation, investigation or proceeding affecting the Borrower or any of its Restricted Subsidiaries that would  reasonably be expected to have a Material Adverse Effect;  (e) the following events, as soon as possible and in any event within 30 days after a  Responsible Officer of the Borrower knows thereof:  (i) the occurrence or expected occurrence of any Reportable  

 

  - 100 -  Event (or similar event) with respect to any Single Employer Plan (or Foreign Plan), a failure to make any required  contribution to a Single Employer Plan, Multiemployer Plan or Foreign Plan, the creation of any Lien on the property  of the Borrower or any Commonly Controlled Entity in favor of the PBGC, a Plan or a Foreign Plan or any withdrawal  from, or the full or partial termination, Insolvency of, any Multiemployer Plan or Foreign Plan; or (ii) the institution  of proceedings or the taking of any other formal action by the PBGC or the Borrower or any Commonly Controlled  Entity or any Multiemployer Plan which would reasonably be expected to result in the withdrawal from, or the  termination, Insolvency of, any Single Employer Plan, Multiemployer Plan or Foreign Plan; or (iii) the occurrence or  expected occurrence of any Canadian Pension Event; provided, however, that no such notice will be required under  clause (i) through (iii) above unless the event giving rise to such notice, when aggregated with all other such events  under clause (i) through (iii) above, would be reasonably expected to result in a Material Adverse Effect;  (f) as soon as possible after a Responsible Officer of the Borrower knows thereof, (i) any  release or discharge by any Group Member of any Materials of Environmental Concern required to be reported under  applicable Environmental Laws to any Governmental Authority, unless the Borrower reasonably determines that the  total Environmental Costs arising out of such release or discharge would not reasonably be expected to have a Material  Adverse Effect, (ii) any condition, circumstance, occurrence or event not previously disclosed in writing to the  Administrative Agent that would reasonably be expected to result in liability or expense under applicable  Environmental Laws, unless the Borrower reasonably determines that the total Environmental Costs arising out of  such condition, circumstance, occurrence or event would not reasonably be expected to have a Material Adverse  Effect, or would not reasonably be expected to result in the imposition of any lien or other material restriction under  Environmental Law on the title, ownership or transferability of any facilities and properties owned, leased or operated  by any Group Member that would reasonably be expected to result in a Material Adverse Effect; and (iii) any proposed  action to be taken by any Group Member that would reasonably be expected to subject any Group Member to any  material additional or different requirements or liabilities under Environmental Laws, unless the Borrower reasonably  determines that the total Environmental Costs arising out of such proposed action would not reasonably be expected  to have a Material Adverse Effect; and  (g) as soon as possible after a Responsible Officer of the Borrower knows thereof, any loss,  damage, or destruction to a significant portion of the Term Loan Priority Collateral, whether or not covered by  insurance.  Each notice pursuant to this Subsection 7.7 shall be accompanied by a statement of a Responsible  Officer of the Borrower (and, if applicable, the relevant Restricted Subsidiary) setting forth details of the occurrence  referred to therein and stating what action the Borrower (or, if applicable, the relevant Restricted Subsidiary) proposes  to take with respect thereto.  7.8 Environmental Laws. (a) (i) Comply substantially with, and require substantial compliance  by all tenants, subtenants, contractors, and invitees with, all applicable Environmental Laws; (ii) obtain, comply  substantially with and maintain any and all Environmental Permits necessary for its operations as conducted and as  planned; and (iii) require that all tenants, subtenants, contractors, and invitees obtain, comply substantially with and  maintain any and all Environmental Permits necessary for their operations as conducted and as planned, with respect  to any property leased or subleased from, or operated by any Group Member. For purposes of this Subsection 7.8(a),  noncompliance shall not constitute a breach of this covenant; provided that, upon learning of any actual or suspected  noncompliance, any affected Group Member shall promptly undertake and diligently pursue reasonable efforts, if any,  to achieve compliance, and provided, further, that in any case such noncompliance would not reasonably be expected  to have a Material Adverse Effect.  (b) Promptly comply, in all material respects, with all orders and directives of all  Governmental Authorities regarding Environmental Laws, other than such orders or directives (i) as to which the  failure to comply would not reasonably be expected to result in a Material Adverse Effect or (ii) as to which:  (x)  appropriate reserves have been established in accordance with GAAP; (y) an appeal or other appropriate contest is or  has been timely and properly taken and is being diligently pursued in good faith; and (z) if the effectiveness of such  order or directive has not been stayed, the failure to comply with such order or directive during the pendency of such  appeal or contest would not reasonably be expected to have a Material Adverse Effect.  

 

  - 101 -  7.9 After-Acquired Real Property and Fixtures; Subsidiaries. (a) With respect to any owned  real property or fixtures thereon located in the United States of America, in each case with a purchase price or a fair  market value at the time of acquisition of at least $12,500,000, in which any Loan Party acquires ownership rights at  any time after the Closing Date (or owned by any Subsidiary that becomes a Loan Party after the Closing Date),  promptly grant to the Collateral Agent for the benefit of the Secured Parties, a Lien of record on all such owned real  property and fixtures pursuant to a Mortgage or otherwise, upon terms reasonably satisfactory in form and substance  to the Collateral Agent and in accordance with any applicable requirements of any Governmental Authority (including  any required appraisals of such property under FIRREA and flood determinations under Regulation H of the Board  and, to the extent such property is located in a special flood hazard area, evidence of flood insurance in accordance  with Subsection 7.5 hereof); provided that (i) nothing in this Subsection 7.9 shall defer or impair the attachment or  perfection of any security interest in any Collateral covered by any of the Security Documents which would attach or  be perfected pursuant to the terms thereof without action by any Group Member or any other Person and (ii) no such  Lien shall be required to be granted as contemplated by this Subsection 7.9 on any owned real property or fixtures the  acquisition of which is, or is to be, within 180 days of such acquisition, financed or refinanced, in whole or in part  through the incurrence of Indebtedness, until such Indebtedness is repaid in full (and not refinanced) or, as the case  may be, the Borrower determines not to proceed with such financing or refinancing. In connection with any such grant  to the Collateral Agent, for the benefit of the Secured Parties, of a Lien of record on any such real property pursuant  to a Mortgage or otherwise in accordance with this Subsection 7.9, such Group Member shall deliver or cause to be  delivered to the Collateral Agent corresponding UCC fixture filings and any surveys, appraisals (including any  required appraisals of such property under FIRREA), title insurance policies, local law enforceability legal opinions  and other documents in connection with such grant of such Lien obtained by it in connection with the acquisition of  such ownership rights in such real property or as the Collateral Agent shall reasonably request (in light of the value of  such real property and the cost and availability of such UCC fixture filings, surveys, appraisals, title insurance policies,  local law enforceability legal opinions and other documents and whether the delivery of such UCC fixture filings,  surveys, appraisals, title insurance policies, legal opinions and other documents would be customary in connection  with such grant of such Lien in similar circumstances) and Phase I environmental assessment reports, if available.  (b) With respect to any Domestic Subsidiary that is a Wholly Owned Subsidiary (other than  an Excluded Subsidiary) (i) created or acquired subsequent to the Closing Date by the Borrower or any of its Domestic  Subsidiaries that are Wholly Owned Subsidiaries (other than an Excluded Subsidiary), (ii) being designated as a  Restricted Subsidiary, (iii) ceasing to be an Immaterial Subsidiary, a Foreign Subsidiary Holdco or other Excluded  Subsidiary as provided in the applicable definition thereof after the expiry of any applicable period referred to in such  definition or (iv) that becomes a Domestic Subsidiary as a result of a Permitted Investment or a transaction pursuant  to, and permitted by, Subsection 8.2 or 8.7 (other than an Excluded Subsidiary), promptly notify the Administrative  Agent of such occurrence and, if the Administrative Agent or the Required Lenders so request, promptly (i) cause the  Loan Party that is required to grant to the Collateral Agent, for the benefit of the Secured Parties, a perfected first  priority security interest (as and to the extent provided in the Guarantee and Collateral Agreement) in the Capital Stock  of such new Domestic Subsidiary owned directly by the Borrower or any of its Domestic Subsidiaries that are Wholly  Owned Subsidiaries (other than Excluded Subsidiaries) to execute and deliver a Supplemental Agreement (as defined  in the Guarantee and Collateral Agreement) pursuant to Section 9.15 of the Guarantee and Collateral Agreement, (ii)  deliver to the Collateral Agent, the applicable Collateral Representative or any Additional Agent, in accordance with  the applicable ABL/Term Loan Intercreditor Agreement, Junior Lien Intercreditor Agreement or Other Intercreditor  Agreement, the certificates (if any) representing such Capital Stock, together with undated stock powers, executed  and delivered in blank by a duly authorized officer of the parent of such new Domestic Subsidiary, and (iii) cause such  new Domestic Subsidiary (A) to become a party to the Guarantee and Collateral Agreement and (B) to take all actions  reasonably deemed by the Collateral Agent to be necessary or advisable to cause the Lien created by the Guarantee  and Collateral Agreement in such new Domestic Subsidiary’s Collateral to be duly perfected in accordance with all  applicable Requirements of Law (as and to the extent provided in the Guarantee and Collateral Agreement), including  the filing of financing statements in such jurisdictions as may be reasonably requested by the Collateral Agent. In  addition, the Borrower may (with the written consent of the Administrative Agent) cause any Subsidiary that is not  required to become a Subsidiary Guarantor to become a Subsidiary Guarantor by executing and delivering an  Assumption Agreement (as defined in the Guarantee and Collateral Agreement) and taking all actions described in  this Subsection 7.9(b) (or with respect to Foreign Subsidiaries, as otherwise agreed to with the Administrative Agent)  to perfect the Liens on the Capital Stock and Collateral of such Subsidiary. With respect to any Foreign Subsidiary  which the Borrower has previously caused to become a Subsidiary Guarantor pursuant to the terms of the Loan  Documents, the Borrower may rescind such election if the guarantee, grant of collateral or pledge of securities by such  

 

  - 102 -  Foreign Subsidiary becomes illegal in the jurisdiction of organization or in any jurisdiction where assets comprising  Collateral are located or causes a materially negative tax liability for Parent or any of its Subsidiaries or if such Foreign  Subsidiary is released from its Guarantee obligations under the Senior ABL Facility.  (c) With respect to any Foreign Subsidiary or Domestic Subsidiary that is a Non-Wholly  Owned Subsidiary created or acquired subsequent to the Closing Date by the Borrower or any of its Domestic  Subsidiaries that are Wholly Owned Subsidiaries (in each case, other than any Excluded Subsidiary), the Capital Stock  of which is owned directly by the Borrower or a Domestic Subsidiary that is a Wholly Owned Subsidiary (other than  an Excluded Subsidiary), promptly notify the Administrative Agent of such occurrence and if the Administrative  Agent or the Required Lenders so request, promptly (i) cause the Loan Party that is required to grant to the Collateral  Agent, for the benefit of the Secured Parties, a perfected first priority security interest (as and to the extent provided  in the Guarantee and Collateral Agreement) in the Capital Stock of such new Subsidiary that is directly owned by the  Borrower or any Domestic Subsidiary that is a Wholly Owned Subsidiary (other than an Excluded Subsidiary) to  execute and deliver a Supplemental Agreement (as defined in the Guarantee and Collateral Agreement) pursuant to  Section 9.15 of the Guarantee and Collateral Agreement and (ii) to the extent reasonably deemed advisable by the  Collateral Agent, deliver to the Collateral Agent, the applicable Collateral Representative or any Additional Agent, in  accordance with the applicable ABL/Term Loan Intercreditor Agreement, Junior Lien Intercreditor Agreement or  Other Intercreditor Agreement, the certificates, if any, representing such Capital Stock, together with undated stock  powers, executed and delivered in blank by a duly authorized officer of the relevant parent of such new Subsidiary  and take such other action as may be reasonably deemed by the Collateral Agent to be necessary or desirable to perfect  the Collateral Agent’s security interest therein (in each case as and to the extent required by the Guarantee and  Collateral Agreement); provided that in either case in no event shall more than 65.0% of each series of Capital Stock  of any new Foreign Subsidiary be required to be so pledged.  (d) At its own expense, execute, acknowledge and deliver, or cause the execution,  acknowledgement and delivery of, and thereafter register, file or record in an appropriate governmental office, any  document or instrument reasonably deemed by the Collateral Agent to be necessary or desirable for the creation,  perfection and priority and the continuation of the validity, attachment, perfection and priority of the foregoing Liens  or any other Liens created pursuant to the Security Documents (to the extent the Collateral Agent determines, in its  reasonable discretion, that such action is required to ensure the perfection or the enforceability as against third parties  of its security interest in such Collateral) in each case in accordance with, and to the extent required by, the Guarantee  and Collateral Agreement.  (e) Notwithstanding anything to the contrary in this Agreement, (A) the foregoing  requirements shall be subject to the terms of the ABL/Term Loan Intercreditor Agreement, any Junior Lien  Intercreditor Agreement or any Other Intercreditor Agreement and, in the event of any conflict with such terms, the  terms of the ABL/Term Loan Intercreditor Agreement, any Junior Lien Intercreditor Agreement or any Other  Intercreditor Agreement, as applicable, shall control, (B) no security interest or lien is or will be granted pursuant to  any Loan Document or otherwise in any right, title or interest of any of Parent, Holdings, the Borrower or any of its  Subsidiaries in, and “Collateral” shall not include, any Excluded Asset, (C) no Loan Party or any Affiliate thereof  shall be required to take any action in any non-U.S. jurisdiction or required by the laws of any non-U.S. jurisdiction  in order to create any security interests in assets located or titled outside of the U.S. or to perfect any security interests,  it being understood that there shall be no security agreements or pledge agreements governed under the laws of any  non-U.S. jurisdiction, other than with respect to the Canadian Guarantee and Collateral Agreement, (D) to the extent  not automatically perfected by filings under the Uniform Commercial Code, PPSA or similar personal property  registry system of each applicable jurisdiction, no Loan Party shall be required to take any actions in order to perfect  any security interests granted with respect to any assets specifically requiring perfection through control (including  cash, cash equivalents, deposit accounts, securities accounts, but excluding Capital Stock required to be delivered  pursuant to Subsections 7.9(b) and (c) above), and (E) nothing in this Subsection 7.9 shall require that any Subsidiary  grant a Lien with respect to any property or assets in which such Subsidiary acquires ownership rights to the extent  that the Borrower and the Administrative Agent reasonably determine in writing that the costs or other consequences  to Parent or any of its Subsidiaries of the granting of such a Lien is excessive in view of the benefits that would be  obtained by the Secured Parties.  7.10 Use of Proceeds. Use the proceeds of Loans only for the purposes set forth in Subsection  5.16. The Borrower will not request any Borrowing, and the Borrower shall not use, and shall procure that its  

 

  - 103 -  Subsidiaries and its or their respective directors, officers, employees and agents shall not use, the proceeds of the  Loans (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or  anything else of value, to any Person in violation of any Anti-Corruption Laws, (B) for the purpose of funding or  financing or facilitating any activities, or business or transaction of or with any Sanctioned Person, or in any  Sanctioned Country, except to the extent permitted for a Person required to comply with Sanctions, or (C) in any  manner that would result in the violation of  any Sanctions applicable to any party hereto.  7.11 Commercially Reasonable Efforts to Maintain Ratings. At all times, the Borrower shall use  commercially reasonable efforts to maintain ratings of the Initial Term Loans and a corporate rating and corporate  family rating, as applicable, for the Borrower by each of S&P and Moody’s.  7.12 Accounting Changes. Parent will, for financial reporting purposes, cause Parent’s Fiscal  Year to end on September 30th of each calendar year; provided that Parent may, upon written notice to the  Administrative Agent, change the financial reporting convention specified above to any other financial reporting  convention reasonably acceptable to the Administrative Agent, in which case the Borrower and the Administrative  Agent will, and are hereby authorized by the Lenders to, make any adjustments to this Agreement that are necessary  in order to reflect such change in financial reporting.  7.13 Post-Closing Requirements.  (a) The applicable Loan Parties shall obtain and deliver to the Administrative Agent, within  one hundred and fifty (150) days after the Closing Date (unless waived or extended by Administrative Agent in its  sole discretion), the following:  (i) Mortgage with respect to each Mortgaged Fee Property listed on Schedule 5.8, executed  and delivered by a duly authorized officer of the Loan Party signatory thereto;  (ii) an executed legal opinion of local counsel from each jurisdiction in which each Mortgaged  Fee Property is located, with respect to collateral security matters in connection with the Mortgages, each in  form and substance reasonably satisfactory to the Administrative Agent;  (iii) in respect of each of the Mortgaged Fee Properties, an irrevocable written commitment to  issue a mortgagee’s title policy or marked up unconditional binder for such insurance dated as of the date the  applicable Mortgage is recorded. Each such policy shall (a) be in the amount of 100% of fair market value  of the Mortgaged Fee Property; (b) insure that the Mortgage insured thereby creates a valid Lien on the  Mortgaged Fee Properties encumbered thereby free and clear of all defects and encumbrances, except as may  be approved by the Administrative Agent, and except for Permitted Liens; (c) name the Collateral Agent as  the insured thereunder; (d) contain such endorsements and affirmative coverage, as reasonably requested by  the Administrative Agent; and (e) otherwise be in form and substance reasonably satisfactory to the  Administrative Agent. The Collateral Agent shall have received evidence reasonably satisfactory to it that all  premiums in respect of each such policy, and all charges for mortgage recording tax, if any, have been paid;   (iv) new ALTA surveys (or existing surveys together with affidavits of no-change to the title  insurance company in lieu thereof) in such form as is sufficient to cause the title insurance company to delete  the standard “survey exception” from, and to issue survey related endorsements to, the title insurance policies  delivered with respect to the Mortgaged Fee Properties; and  (v) a completed “Life-of-Loan” Federal Emergency Management Agency standard flood  hazard determination with respect to each Mortgaged Fee Property, and, to the extent such flood hazard  determination indicates that a Mortgaged Fee Property is located in a special flood hazard area: (a) a notice  about special flood hazard area status and flood disaster assistance duly executed by the Borrower, and (b)  evidence of flood insurance as set forth in Subsection 7.5  (b) The applicable Loan Parties shall deliver to the Administrative Agent within thirty (30)  days after the Closing Date (unless waived or extended by Administrative Agent in its sole discretion), (i) the  

 

  - 104 -  certificates (if any) representing the shares of Capital Stock pledged pursuant to the Guarantee and Collateral  Agreement or Canadian Guarantee and Collateral Agreement, together with an undated endorsement for each such  certificate executed in blank by a duly authorized officer of the pledgor thereof and (ii) each promissory note (if any)  pledged to the Administrative Agent pursuant to the Guarantee and Collateral Agreement endorsed (without recourse)  in blank (or accompanied by an executed transfer form in blank) by the pledgor thereof; and  (c) The applicable Loan Parties shall deliver to the Administrative Agent within thirty (30)  days after the Closing Date (unless waived or extended by Administrative Agent in its sole discretion), the insurance  certificates and endorsements as required by Subsection 7.5(a)  SECTION 8    Negative Covenants  Each of Parent and the Borrower hereby agrees that, from and after the Closing Date until payment  in full of the Loans and all other Loan Document Obligations then due and owing to any Lender or any Agent  hereunder:  8.1 Limitation on Indebtedness. (a) The Group Members will not Incur any Indebtedness;  provided, however, that any Group Member may Incur unsecured Indebtedness if on the date of the Incurrence of such  Indebtedness, after giving effect to the Incurrence thereof (or on the date of the initial borrowing of such Indebtedness  or entry into the definitive agreement providing the commitment to fund such Indebtedness after giving pro forma  effect to the Incurrence of the entire committed amount, in which case such committed amount may thereafter be  borrowed and reborrowed in whole or in part, from time to time without further compliance with this proviso), the  Consolidated Fixed Charge Coverage Ratio would be equal to or greater than 2.00:1.00; provided that any such  Indebtedness shall be subject to the Required Debt Terms; provided, further, that the aggregate principal amount of  Indebtedness that may be Incurred pursuant to this Subsection 8.1(a), by Restricted Subsidiaries that are not Subsidiary  Guarantors or Escrow Subsidiaries shall not exceed the greater of (x) $125,000,000 and (y) 7.75% of Consolidated  Total Assets.  (b) Notwithstanding the foregoing Subsection 8.1(a), the Group Members may Incur the  following Indebtedness:  (i) Indebtedness Incurred by Parent, Holdings, the Borrower, a Guarantor or an Escrow  Subsidiary (a) pursuant to this Agreement and the other Loan Documents, (b) pursuant to the Senior ABL  Facility in an aggregate principal amount not to exceed $475,000,000 (and any Refinancing Indebtedness in  respect thereof), (c) pursuant to the Unsecured Notes in an aggregate principal amount not to exceed  $400,000,000 (and any Refinancing Indebtedness in respect thereof), (d) constituting Rollover Indebtedness  (and Refinancing Indebtedness in respect thereof) and (e) in respect of Permitted Debt Exchange Notes  Incurred pursuant to a Permitted Debt Exchange in accordance with Subsection 2.9 (and any Refinancing  Indebtedness in respect thereof);  (ii) Indebtedness of any Group Member to any other Group Member; provided that in the case  of this Subsection 8.1(b)(ii), any subsequent issuance or transfer of any Capital Stock of such Restricted  Subsidiary to which such Indebtedness is owed, or other event, that results in such Restricted Subsidiary  ceasing to be a Restricted Subsidiary or any other subsequent transfer of such Indebtedness (except to a  Group Member) will be deemed, in each case, an Incurrence of such Indebtedness by the issuer thereof not  permitted by this Subsection 8.1(b)(ii);  (iii) (A) any Indebtedness outstanding (or Incurred pursuant to any commitment outstanding)  on the Closing Date and set forth on Schedule 8.1 and (B) any Refinancing Indebtedness Incurred in respect  of any Indebtedness (or unutilized commitments) described in this Subsection 8.1(b)(iii) or Subsection 8.1(a);  (iv) Purchase Money Obligations, Capitalized Lease Obligations, and in each case any  Refinancing Indebtedness with respect thereto; provided that the aggregate principal amount of such  

 

  - 105 -  Purchase Money Obligations Incurred to finance the acquisition of Capital Stock of any Person, at any time  outstanding pursuant to this clause shall not exceed an amount equal to the greater of $45,000,000 and 2.75%  of Consolidated Total Assets;  (v) Indebtedness (A) supported by a letter of credit issued in compliance with this Subsection  8.1 in a principal amount not exceeding the face amount of such letter of credit or (B) consisting of  accommodation guarantees for the benefit of trade creditors of any Group Member;  (vi) (A) Guarantees by any Group Member of Indebtedness or any other obligation or liability  of any Group Member (other than any Indebtedness Incurred by such Group Member in violation of this  Subsection 8.1), or (B) without limiting Subsection 8.6, Indebtedness of any Group Member arising by reason  of any Lien granted by or applicable to such Person securing Indebtedness of any Group Member (other than  any Indebtedness Incurred by such Group Member in violation of this Subsection 8.1);  (vii) Indebtedness of any Group Member (A) arising from the honoring of a check, draft or  similar instrument of such Person drawn against insufficient funds in the ordinary course of business  (provided that such Indebtedness is extinguished in the ordinary course of business), or (B) consisting of  guarantees, indemnities, obligations in respect of earnouts or other purchase price adjustments, or similar  obligations, Incurred in connection with the acquisition or disposition of any business, assets or Person;  (viii) Indebtedness of any Group Member in respect of (A) letters of credit, bankers’ acceptances  or other similar instruments or obligations issued, or relating to liabilities or obligations incurred, in the  ordinary course of business (including those issued to governmental entities in connection with self-insurance  under applicable workers’ compensation statutes), (B) completion guarantees, surety, judgment, appeal or  performance bonds, or other similar bonds, instruments or obligations, provided, or relating to liabilities or  obligations incurred, in the ordinary course of business, (C) Hedging Obligations, entered into for bona fide  hedging purposes, (D) Management Guarantees or Management Indebtedness, (E) the financing of insurance  premiums in the ordinary course of business, (F) take-or-pay obligations under supply arrangements incurred  in the ordinary course of business, (G) netting, overdraft protection and other arrangements arising under  standard business terms of any bank at which any Group Member maintains an overdraft, cash pooling or  other similar facility or arrangement, (H) Junior Capital in an amount not to exceed the greater of (1)  $60,000,000 and (2) 3.75% of Consolidated Total Assets in the aggregate at any one time outstanding, (I)  Bank Products Obligations or (J) any Sale and Leaseback Transaction;  (ix) Indebtedness (A) of a Special Purpose Subsidiary secured by a Lien on all or part of the  assets disposed of in, or otherwise Incurred in connection with, a Financing Disposition or (B) otherwise  Incurred in connection with a Special Purpose Financing; provided that (1) such Indebtedness is not recourse  to any Group Member that is not a Special Purpose Subsidiary (other than with respect to Special Purpose  Financing Undertakings); (2) in the event such Indebtedness shall become recourse to any Group Member  that is not a Special Purpose Subsidiary (other than with respect to Special Purpose Financing Undertakings),  such Indebtedness will be deemed to be, and must be classified by the Borrower as, Incurred at such time (or  at the time initially Incurred) under one or more of the other provisions of this Subsection 8.1 for so long as  such Indebtedness shall be so recourse; and (3) in the event that at any time thereafter such Indebtedness shall  comply with the provisions of the preceding subclause (1), the Borrower may classify such Indebtedness in  whole or in part as Incurred under this Subsection 8.1(b)(ix);  (x) Indebtedness of (A) any Group Member Incurred to finance or refinance, or otherwise  Incurred in connection with, any acquisition of assets (including Capital Stock), business or Person, or any  merger, amalgamation or consolidation of any Person with or into any Group Member; or (B) any Person  that is acquired by or merged, amalgamated or consolidated with or into a Group Member (including  Indebtedness thereof Incurred in connection with any such acquisition, merger, amalgamation or  consolidation), in an amount equal to (with respect to Indebtedness of any Loan Party) the Cash Capped  Incremental Amount plus (with respect to Indebtedness of any Group Member) an unlimited amount so long  as after giving pro forma effect to the Incurrence of such Indebtedness under this clause (x), (1) if such  Indebtedness is first priority secured Indebtedness, the Consolidated First Lien Leverage Ratio does not  exceed (x) 3.75 to 1.00 or (y) the Consolidated First Lien Leverage Ratio immediately prior to giving pro  

 

  - 106 -  forma effect to such Permitted Acquisition and Incurrence, (2) if such Indebtedness is secured but is not first  priority secured Indebtedness, the Consolidated Secured Leverage Ratio does not exceed (x) 4.50 to 1.00 or  (y) the Consolidated Secured Leverage Ratio immediately prior to giving pro forma effect to such Permitted  Acquisition and Incurrence or (3) if such Indebtedness is unsecured, the Consolidated Total Leverage Ratio  does not exceed (x) 5.50:1.00 or (y) the Consolidated Total Leverage Ratio immediately prior to giving pro  forma effect to such Permitted Acquisition and Incurrence; provided, that any such Indebtedness (other than  any such Indebtedness assumed or acquired and not Incurred in connection with any such acquisition, merger,  amalgamation or consolidation) shall be subject to the Required Debt Terms; provided, further, that if, at the  Borrower’s option, on the date of the initial borrowing of such Indebtedness or entry into the definitive  agreement providing the commitment to fund such Indebtedness, pro forma effect is given to the Incurrence  of the entire committed amount of such Indebtedness, such committed amount may thereafter be borrowed  and reborrowed, in whole or in part, from time to time, without further compliance with this clause (x); and  any Refinancing Indebtedness with respect to any such Indebtedness;  (xi) Contribution Indebtedness and any Refinancing Indebtedness with respect thereto;  (xii) Indebtedness issuable upon the conversion or exchange of shares of Disqualified Stock  issued in accordance with Subsection 8.1(a), and any Refinancing Indebtedness with respect thereto;  (xiii) Indebtedness of the Group Members in an aggregate principal amount at any time  outstanding not exceeding an amount equal to the greater of $135,000,000 and 8.25% of Consolidated Total  Assets;  (xiv) Indebtedness of the Group Members Incurred as consideration in connection with any  acquisition of assets (including Capital Stock), business or Person, or any merger, amalgamation or  consolidation of any Person with or into a Group Member, and any Refinancing Indebtedness with respect  thereto, in an aggregate principal amount at any time outstanding not exceeding an amount equal to the  greater of (1) $35,000,000 and (2) 2.00% of Consolidated Total Assets;   (xv) Indebtedness of Foreign Subsidiaries in an aggregate principal amount at any time  outstanding not exceeding the greater of (i) $65,000,000 and (ii) 4.00% of Consolidated Total Assets;  (xvi) Indebtedness Incurred by the Loan Parties constituting Additional Obligations in an  aggregate principal amount equal to (a) the Cash Capped Incremental Amount plus (b) an unlimited amount  so long as after giving pro forma effect to the Incurrence of such Indebtedness under this clause (xvi), (1) if  such Indebtedness is secured by Liens ranking pari passu with the Liens securing the Loan Document  Obligations, the Consolidated First Lien Leverage Ratio does not exceed (x) 3.75 to 1.00 or (y) in the case  of any such Incurrence in connection with a Permitted Acquisition, the Consolidated First Lien Leverage  Ratio immediately prior to giving pro forma effect to such Permitted Acquisition and Incurrence, (2) if such  Indebtedness is secured by Liens ranking junior to the Liens securing the Loan Document Obligations, the  Consolidated Secured Leverage Ratio does not exceed (x) 4.50 to 1.00 or (y) in the case of any such  Incurrence in connection with a Permitted Acquisition, the Consolidated Secured Leverage Ratio  immediately prior to giving pro forma effect to such Permitted Acquisition and Incurrence or (3) if such  Indebtedness is unsecured, the Consolidated Total Leverage Ratio does not exceed (x) 5.50:1.00 or (y) in the  case of any such Incurrence in connection with a Permitted Acquisition, the Consolidated Total Leverage  Ratio immediately prior to giving pro forma effect to such Permitted Acquisition and Incurrence; and  (xvii) Indebtedness of Loan Parties in an aggregate amount not to exceed the greater of (a)  $50,000,000 and (b) 3.0% of Consolidated Total Assets; provided that such Indebtedness is subject to the  Required Debt Terms.  (c) For purposes of determining compliance with, and the outstanding principal amount of any  particular Indebtedness Incurred pursuant to and in compliance with, this Subsection 8.1, (i) any other obligation of  the obligor on such Indebtedness (or of any other Person who could have Incurred such Indebtedness under this  Subsection 8.1) arising under any Guarantee, Lien or letter of credit, bankers’ acceptance or other similar instrument  or obligation supporting such Indebtedness shall be disregarded to the extent that such Guarantee, Lien or letter of  

 

  - 107 -  credit, bankers’ acceptance or other similar instrument or obligation secures the principal amount of such  Indebtedness; (ii) in the event that Indebtedness Incurred pursuant to Subsection 8.1(b) meets the criteria of more than  one of the types of Indebtedness described in Subsection 8.1(b), the Borrower, in its sole discretion, shall classify such  item of Indebtedness and may include the amount and type of such Indebtedness in one or more of the clauses or  subclauses of Subsection 8.1(b) (including in part under one such clause or subclause and in part under another such  clause or subclause); provided that (if the Borrower shall so determine) any Indebtedness Incurred pursuant to (x)  Subsection 8.1(b)(xiii) shall cease to be deemed Incurred or outstanding for purposes of such clause or subclause but  shall be deemed Incurred for the purposes of Subsection 8.1(a) from and after the first date on which any Group  Member could have Incurred such Indebtedness under Subsection 8.1(a) without reliance on such clause or subclause  and (y) the Cash Capped Incremental Amount or pursuant to the Voluntary Prepayment Amount shall cease to be  deemed Incurred or outstanding for purposes of such definition but shall be deemed Incurred for purposes of the Ratio  Incremental Facility from and after the first date on which the Borrower could have Incurred such Indebtedness under  the Ratio Incremental Facility without reliance on such provision; (iii) in the event that Indebtedness could be Incurred  in part under Subsection 8.1(a), the Borrower, in its sole discretion, may classify a portion of such Indebtedness as  having been Incurred under Subsection 8.1(a) and the remainder of such Indebtedness as having been Incurred under  Subsection 8.1(b); (iv) the amount of Indebtedness issued at a price that is less than the principal amount thereof shall  be equal to the amount of the liability in respect thereof determined in accordance with GAAP; (v) the principal  amount of Indebtedness outstanding under any subclause of Subsection 8.1, including for purposes of any  determination of the “Maximum Incremental Facilities Amount”, shall be determined after giving effect to the  application of proceeds of any such Indebtedness to refinance any such other Indebtedness, (vi) if any Indebtedness is  Incurred to refinance Indebtedness initially Incurred (or, to refinance Indebtedness Incurred to refinance Indebtedness  initially Incurred) in reliance on any provision of Subsection 8.1(b) measured by reference to a percentage of  Consolidated Total Assets at the time of Incurrence, and such refinancing would cause such percentage of  Consolidated Total Assets to be exceeded if calculated based on the Consolidated Total Assets on the date of such  refinancing, such percentage of Consolidated Total Assets shall not be deemed to be exceeded (and such refinancing  Indebtedness shall be deemed permitted) so long as the principal amount of such refinancing Indebtedness does not  exceed an amount equal to the principal amount of such Indebtedness being refinanced, plus the aggregate amount of  fees, underwriting discounts, premiums and other costs and expenses (including accrued and unpaid interest) Incurred  or payable in connection with such refinancing; and (vii) if any Indebtedness is Incurred to refinance Indebtedness  initially Incurred (or, Indebtedness Incurred to refinance Indebtedness initially Incurred) in reliance on any provision  of Subsection 8.1(b) measured by a dollar amount, such dollar amount shall not be deemed to be exceeded (and such  refinancing Indebtedness shall be deemed permitted) to the extent the principal amount of such newly Incurred  Indebtedness does not exceed an amount equal to the principal amount of such Indebtedness being refinanced, plus  the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses (including accrued and  unpaid interest) Incurred or payable in connection with such refinancing. Notwithstanding anything herein to the  contrary, Indebtedness Incurred by the Borrower on the Closing Date under this Agreement shall be classified as  Incurred under Subsection 8.1(b), and not under Subsection 8.1(a).  (d) For purposes of determining compliance with any provision of Subsection 8.1(b) (or any  category of Permitted Liens described in the definition thereof) measured by a dollar amount or by reference to a  percentage of Consolidated Total Assets, in each case, for the Incurrence of Indebtedness or Liens securing  Indebtedness denominated in a foreign currency, the dollar equivalent principal amount of such Indebtedness Incurred  pursuant thereto shall be calculated based on the relevant currency exchange rate in effect on the date that such  Indebtedness was Incurred, in the case of term Indebtedness, or first committed, in the case of revolving or deferred  draw Indebtedness; provided that (x) the dollar equivalent principal amount of any such Indebtedness outstanding on  the Closing Date shall be calculated based on the relevant currency exchange rate in effect on the Closing Date, (y) if  such Indebtedness is Incurred to refinance other Indebtedness denominated in a foreign currency (or in a different  currency from such Indebtedness so being Incurred), and such refinancing would cause the applicable provision of  paragraph (b) above (or category of Permitted Liens) measured by a dollar amount or by reference to a percentage of  Consolidated Total Assets, as applicable, to be exceeded if calculated at the relevant currency exchange rate in effect  on the date of such refinancing, such provision of Subsection 8.1(b) (or category of Permitted Liens) measured by a  dollar amount or by reference to a percentage of Consolidated Total Assets, as applicable, shall be deemed not to have  been exceeded so long as the principal amount of such refinancing Indebtedness does not exceed (i) the outstanding  or committed principal amount (whichever is higher) of such Indebtedness being refinanced plus (ii) the aggregate  amount of fees, underwriting discounts, premiums and other costs and expenses (including accrued and unpaid  interest) Incurred or payable in connection with such refinancing and (z) the dollar equivalent principal amount of  

 

  - 108 -  Indebtedness denominated in a foreign currency and Incurred pursuant to this Agreement shall be calculated based on  the relevant currency exchange rate in effect on, at the Borrower’s option, (A) the Closing Date, (B) any date on which  any of the respective commitments under this Agreement shall be reallocated between or among facilities or  subfacilities hereunder or thereunder, or on which such rate is otherwise calculated for any purpose thereunder or (C)  the date of such Incurrence. The principal amount of any Indebtedness Incurred to refinance other Indebtedness, if  Incurred in a different currency from the Indebtedness being refinanced, shall be calculated based on the currency  exchange rate applicable to the currencies in which such respective Indebtedness is denominated that is in effect on  the date of such refinancing.  (e) For the avoidance of doubt, Refinancing Indebtedness in respect of Indebtedness incurred  pursuant to a Dollar-denominated basket shall not increase capacity to incur Indebtedness under such Dollar- denominated basket, and such Dollar-denominated basket shall be deemed to continue to be utilized by the amount of  such permitted refinancing unless and until the Indebtedness incurred to effect such permitted refinancing is no longer  outstanding.  8.2 Limitation on Restricted Payments. (a) Parent and the Borrower shall not, and shall not  permit any Group Member, directly or indirectly, to (i) declare or pay any dividend or make any distribution on or in  respect of its Capital Stock (including any such payment in connection with any merger, amalgamation or  consolidation to which the Borrower is a party) except (x) dividends or distributions payable solely in its Capital Stock  (other than Disqualified Stock) and (y) dividends or distributions payable to any Group Member (and, in the case of  any Restricted Subsidiary making such dividend or distribution, to other holders of its Capital Stock on no more than  a pro rata basis, measured by value), (ii) purchase, redeem, retire or otherwise acquire for value any Capital Stock of  Parent, Holdings or the Borrower held by Persons other than a Group Member (other than any acquisition of Capital  Stock deemed to occur upon the exercise of options if such Capital Stock represents a portion of the exercise price  thereof), (iii) voluntarily purchase, repurchase, redeem, defease or otherwise voluntarily acquire or retire for value,  prior to scheduled maturity, scheduled repayment or scheduled sinking fund payment, any Junior Debt (other than a  purchase, repurchase, redemption, defeasance or other acquisition or retirement for value in anticipation of satisfying  a sinking fund obligation, principal installment or final maturity, in each case due within one year of the date of such  purchase, repurchase, redemption, defeasance or other acquisition or retirement), or (iv) make any Investment (other  than a Permitted Investment) in any Person (any such dividend, distribution, purchase, repurchase, redemption,  defeasance, other acquisition or retirement or Investment being herein referred to as a “Restricted Payment”), if at the  time a Group Member makes such Restricted Payment after giving effect thereto:  (1) an Event of Default shall have occurred and be continuing (or would result  therefrom);  (2) with respect to any Restricted Payment other than Investments, the Consolidated  Secured Leverage Ratio exceeds 4.50:1.00; or  (3) the aggregate amount of such Restricted Payment and all other Restricted  Payments (the amount so expended, if other than in cash, to be as determined in good faith by the  Board of Directors, whose determination shall be conclusive and evidenced by a resolution of the  Board of Directors) declared or made subsequent to the Closing Date pursuant to this Subsection  8.2(a) and then outstanding would exceed, without duplication, the sum of:  (A) 50.0% of the Consolidated Net Income accrued during the period (treated  as one accounting period) beginning on May 26, 2021 to the end of the most recent Fiscal  Quarter ending prior to the date of such Restricted Payment for which consolidated  financial statements of Parent are available (or, in case such Consolidated Net Income shall  be a negative number, 100.0% of such negative number);  (B) the aggregate Net Cash Proceeds and the fair value (as determined in  good faith by the Borrower) of property or assets received (x) by Parent as capital  contributions to Parent after the Closing Date or from the issuance or sale (other than to a  Group Member) of its Capital Stock (other than Disqualified Stock) after the Closing Date  (other than Excluded Contributions and Contribution Amounts) or (y) by any Group  

 

  - 109 -  Member from the Incurrence by any Group Member after the Closing Date of Indebtedness  that shall have been converted into or exchanged for Capital Stock of Parent (other than  Disqualified Stock), plus the amount of any cash and the fair value (as determined in good  faith by the Borrower) of any property or assets, received by any Group Member upon such  conversion or exchange;  (C) (i) the aggregate amount of cash and the fair value (as determined in good  faith by the Borrower) of any property or assets received from dividends, distributions,  interest payments, return of capital, repayments of Investments or other transfers of assets  to any Group Member from any Unrestricted Subsidiary, including dividends or other  distributions related to dividends or other distributions made pursuant to Subsection  8.2(b)(ix), plus (ii) the aggregate amount resulting from the redesignation of any  Unrestricted Subsidiary as a Restricted Subsidiary (valued in each case as provided in the  definition of “Investment”);  (D) in the case of any disposition or repayment of any Investment  constituting a Restricted Payment (without duplication of any amount deducted in  calculating the amount of Investments at any time outstanding included in the amount of  Restricted Payments), the aggregate amount of cash and the fair value (as determined in  good faith by the Borrower) of any property or assets received by the Group Members with  respect to all such dispositions and repayments; and  (E) $50,000,000.  (b) The provisions of Subsection 8.2(a) do not prohibit any of the following (each, a “Permitted  Payment”):  (i) (x) any purchase, redemption, repurchase, defeasance or other acquisition or retirement of  Capital Stock of the Borrower (“Treasury Capital Stock”) or any Junior Debt made by exchange (including  any such exchange pursuant to the exercise of a conversion right or privilege in connection with which cash  is paid in lieu of the issuance of fractional shares) for, or out of the proceeds of the issuance or sale of, Capital  Stock of Parent (other than Disqualified Stock and other than Capital Stock issued or sold to a Group Member  or a Subsidiary) (“Refunding Capital Stock”) or a capital contribution to Parent, in each case other than  Excluded Contributions and Contribution Amounts; provided, that the Net Cash Proceeds from such  issuance, sale or capital contribution shall be excluded in subsequent calculations under Subsection  8.2(a)(3)(B); and (y) if immediately prior to such acquisition or retirement of such Treasury Capital Stock,  dividends thereon were permitted pursuant to Subsection 8.2(b)(xi), dividends on such Refunding Capital  Stock in an aggregate amount per annum not exceeding the aggregate amount per annum of dividends so  permitted on such Treasury Capital Stock;  (ii) any dividend paid or redemption made within 60 days after the date of declaration thereof  or of the giving of notice thereof, as applicable, if at such date of declaration or the giving of such notice,  such dividend or redemption would have complied with this Subsection 8.2;  (iii) Investments or other Restricted Payments in an aggregate amount outstanding at any time  not to exceed the amount of Excluded Contributions;   (iv) loans, advances, dividends or distributions by the Borrower to any Parent Entity (whether  made directly or indirectly) to permit any Parent Entity to repurchase or otherwise acquire its Capital Stock  (including any options, warrants or other rights in respect thereof), or payments by the Borrower to  repurchase or otherwise acquire Capital Stock of any Parent Entity or the Borrower (including any options,  warrants or other rights in respect thereof), in each case from current or former Management Investors  (including any repurchase or acquisition by reason of the Borrower or any Parent Entity retaining any Capital  Stock, option, warrant or other right in respect of tax withholding obligations, and any related payment in  respect of any such obligation), such payments, loans, advances, dividends or distributions not to exceed  $20,000,000 in any Fiscal Year; provided that any unused portion of such amount for any Fiscal Year may  

 

  - 110 -  be carried forward to succeeding Fiscal Years so long as the aggregate amount of all Restricted Payments  made pursuant to this clause (iv) in any Fiscal Year (after giving effect to such carry-forward) shall not  exceed $40,000,000; provided, further, that any cancellation of Indebtedness owing to any Group Member  by any current or former Management Investor in connection with any repurchase or other acquisition of  Capital Stock (including any options, warrants or other rights in respect thereof) from any Management  Investor shall not constitute a Restricted Payment for purposes of this covenant or any other provision of this  Agreement;  (v) [reserved];  (vi) Restricted Payments (including loans or advances) in an aggregate amount outstanding at  any time not to exceed an amount (net of repayments of any such loans or advances) equal to the sum of (x)  the greater of (i) $150,000,000 and (ii) 9.0% of Consolidated Total Assets plus (y) the aggregate of all  Declined Amounts;  (vii) [reserved];  (viii) payments by Parent to holders of Capital Stock of Parent in lieu of issuance of fractional  shares of such Capital Stock;  (ix) dividends or other distributions of, or Investments paid for or made with, Capital Stock,  Indebtedness or other securities of Unrestricted Subsidiaries;  (x) [reserved];  (xi) (A) dividends on any Designated Preferred Stock of Parent issued after the date hereof;  provided that at the time of such issuance and after giving effect thereto on a pro forma basis, the  Consolidated Fixed Charge Coverage Ratio would be at least 2.00:1.00; (B) loans, advances, dividends or  distributions to any Parent Entity to permit dividends on any Designated Preferred Stock of Parent issued  after the date hereof; provided that the aggregate amount of all loans, advances, dividends or distributions  paid pursuant to this subclause (B) shall not exceed the net proceeds of such issuance of Designated Preferred  Stock; or (C) any dividend on Refunding Capital Stock of Parent that is Preferred Stock; provided that at the  time of the declaration of such dividend and after giving effect thereto on a pro forma basis, the Consolidated  Fixed Charge Coverage Ratio would be at least 2.00:1.00;  (xii) distributions or payments of Special Purpose Financing Fees;  (xiii) the declaration and payment of dividends to holders of any class or series of Disqualified  Stock, or of any Preferred Stock of a Restricted Subsidiary, Incurred in accordance with the terms of  Subsection 8.1;  (xiv) any purchase, redemption, repurchase, defeasance or other acquisition or retirement of any  Junior Debt (v) made by exchange for, or out of the proceeds of the Incurrence of, (1) Refinancing  Indebtedness Incurred in compliance with Subsection 8.1 or (2) new Indebtedness of the Borrower, or a  Restricted Subsidiary, as the case may be, Incurred in compliance with Subsection 8.1, so long as such new  Indebtedness satisfies all requirements for “Refinancing Indebtedness” set forth in the definition thereof  applicable to a refinancing of such Junior Debt, (w) from Net Available Cash or an equivalent amount to the  extent permitted by Subsection 8.4, (x) from declined amounts as contemplated by Subsection 4.4(h), (y)  following the occurrence of a Change of Control (or other similar event described therein as a “change of  control”), but only if the Borrower shall have complied with Subsection 8.8(a) prior to purchasing,  redeeming, repurchasing, defeasing, acquiring or retiring such Junior Debt or (z) constituting Acquired  Indebtedness;  (xv) Investments in Unrestricted Subsidiaries in an aggregate amount outstanding at any time  not exceeding an amount equal to the greater of $65,000,000 and 4.00% of Consolidated Total Assets; and  

 

  - 111 -  (xvi) any Restricted Payment; provided that on a pro forma basis after giving effect to such  Restricted Payment (A) with respect to any Restricted Payment other than an Investment, the Consolidated  Total Leverage Ratio would be equal to or less than 3.50:1.00 and (B) with respect to any Restricted Payment  that is an Investment, the Consolidated Total Leverage Ratio would be equal to or less than 4.00:1.00;   provided that (A) in the case of Subsections 8.2(b)(ii), usage of such basket shall be deemed to be a usage of the  applicable provision of Subsection 8.2 with which such dividend or redemption would originally have complied, (B)  no Investment in any Unrestricted Subsidiary of material Intellectual Property may be made other than pursuant to  Subsection 8.2(b)(xv) and (C) solely with respect to Subsection 8.2(b)(vi) and (xvi), no Event of Default shall have  occurred and be continuing at the time of any such Permitted Payment after giving effect thereto. The Borrower, in its  sole discretion, may classify any Investment or other Restricted Payment as being made in part under one of the clauses  or subclauses of this Subsection 8.2(b) (or, in the case of any Investment, the clauses or subclauses of Permitted  Investments) and in part under one or more other such clauses or subclauses (or, as applicable, clauses or subclauses).  Notwithstanding any other provision of this Agreement, this Agreement shall not restrict any  redemption or other payment by any Group Member made as a mandatory principal redemption or other payment in  respect of Junior Debt pursuant to an “AHYDO saver” provision of any agreement or instrument in respect of Junior  Debt, and the Borrower’s determination in good faith of the amount of any such “AHYDO saver” mandatory principal  redemption or other payment shall be conclusive and binding for all purposes under this Agreement.  8.3 Limitation on Restrictive Agreements. Parent and the Borrower will not, and will not  permit any Group Member to, create or otherwise cause to exist or become effective any consensual encumbrance or  restriction on (i) the ability of any Group Member (other than any Foreign Subsidiaries or any Excluded Subsidiaries)  to create, incur, assume or suffer to exist any Lien in favor of the Lenders in respect of obligations and liabilities under  this Agreement or any other Loan Documents upon any of its property, assets or revenues constituting Term Loan  Priority Collateral as and to the extent contemplated by this Agreement and the other Loan Documents, whether now  owned or hereafter acquired or (ii) the ability of any Restricted Subsidiary to (x) pay dividends or make any other  distributions on its Capital Stock or pay any Indebtedness or other obligations owed to the Borrower, (y) make any  loans or advances to the Borrower or (z) transfer any of its property or assets to the Borrower (provided that dividend  or liquidation priority between classes of Capital Stock, or subordination of any obligation (including the application  of any remedy bars thereto) to any other obligation, will not be deemed to constitute such an encumbrance or  restriction), except any encumbrance or restriction:  (a) pursuant to an agreement or instrument in effect at or entered into on the Closing Date, this  Agreement and the other Loan Documents, the Unsecured Notes Indenture, the Senior ABL Facility and the ABL  Facility Documents, the ABL/Term Loan Intercreditor Agreement and, on and after the execution and delivery thereof,  any Junior Lien Intercreditor Agreement, any Other Intercreditor Agreement, any Permitted Debt Exchange Notes  (and any related documents) and any Additional Obligations Documents;   (b) pursuant to any agreement or instrument of a Person, or relating to Indebtedness or Capital  Stock of a Person, which Person is acquired by or merged, amalgamated or consolidated with or into any Group  Member, or which agreement or instrument is assumed by any Group Member in connection with an acquisition of  assets from such Person or any other transaction entered into in connection with any such acquisition, merger,  amalgamation or consolidation, as in effect at the time of such acquisition, merger, consolidation or transaction (except  to the extent that such Indebtedness was incurred to finance, or otherwise in connection with, such acquisition, merger,  amalgamation, consolidation or transaction); provided that for purposes of this Subsection 8.3(b), if a Person other  than the Borrower is the Successor Borrower with respect thereto, any Subsidiary thereof or agreement or instrument  of such Person or any such Subsidiary shall be deemed acquired or assumed, as the case may be, by the Borrower or  a Restricted Subsidiary, as the case may be, when such Person becomes such Successor Borrower;  (c) pursuant to an agreement or instrument (a “Refinancing Agreement”) effecting a  refinancing of Indebtedness Incurred or outstanding pursuant or relating to, or that otherwise extends, renews, refunds,  refinances or replaces, any agreement or instrument referred to in Subsection 8.3(a) or (b) or this Subsection 8.3(c)  (an “Initial Agreement”) or that is, or is contained in, any amendment, supplement or other modification to an Initial  Agreement or Refinancing Agreement (an “Amendment”); provided, however, that the encumbrances and restrictions  contained in any such Refinancing Agreement or Amendment taken as a whole are not materially less favorable to the  

 

  - 112 -  Lenders than encumbrances and restrictions contained in the Initial Agreement or Initial Agreements to which such  Refinancing Agreement or Amendment relates (as determined in good faith by the Borrower);  (d) (i) pursuant to any agreement or instrument that restricts in a customary manner (as  determined by the Borrower in good faith) the assignment or transfer thereof, or the subletting, assignment or transfer  of any property or asset subject thereto, (ii) by virtue of any transfer of, agreement to transfer, option or right with  respect to, or Lien on, any property or assets of any Group Member not otherwise prohibited by this Agreement, (iii)  contained in mortgages, pledges or other security agreements securing Indebtedness or other obligations of the  Borrower or a Restricted Subsidiary to the extent restricting the transfer of the property or assets subject thereto, (iv)  pursuant to customary provisions (as determined by the Borrower in good faith) restricting dispositions of real property  interests set forth in any reciprocal easement agreements of any Group Member, (v) pursuant to Purchase Money  Obligations that impose encumbrances or restrictions on the property or assets so acquired, (vi) on cash or other  deposits or net worth or inventory imposed by customers or suppliers under agreements entered into in the ordinary  course of business, (vii) pursuant to customary provisions (as determined by the Borrower in good faith) contained in  agreements and instruments entered into in the ordinary course of business (including but not limited to leases and  licenses) or in joint venture and other similar agreements or in shareholder, partnership, limited liability company and  other similar agreements in respect of non-wholly owned Restricted Subsidiaries, (viii) that arises or is agreed to in  the ordinary course of business and does not detract from the value of property or assets of any Group Member in any  manner material to the Borrower or such Restricted Subsidiary or (ix) pursuant to Hedging Obligations or Bank  Products Obligations;  (e) with respect to any agreement for the direct or indirect disposition of Capital Stock of any  Person, property or assets, imposing restrictions with respect to such Person, Capital Stock, property or assets pending  the closing of such disposition;  (f) by reason of any applicable law, rule, regulation or order, or required by any regulatory  authority having jurisdiction over any Group Member or any of their businesses, including any such law, rule,  regulation, order or requirement applicable in connection with such Restricted Subsidiary’s status (or the status of any  Subsidiary of such Restricted Subsidiary) as a Captive Insurance Subsidiary;   (g) pursuant to an agreement or instrument (i) relating to any Indebtedness permitted to be  Incurred subsequent to the Closing Date pursuant to Subsection 8.1 (x) if the encumbrances and restrictions contained  in any such agreement or instrument taken as a whole are not materially less favorable to the Lenders than the  encumbrances and restrictions contained in the Initial Agreements (as determined in good faith by the Borrower), or  (y) if such encumbrance or restriction is not materially more disadvantageous to the Lenders than is customary in  comparable financings (as determined in good faith by the Borrower) and either (1) the Borrower determines in good  faith that such encumbrance or restriction will not materially affect the Borrower’s ability to create and maintain the  Liens on the Term Loan Priority Collateral pursuant to the Security Documents and make principal or interest  payments on the Loans or (2) such encumbrance or restriction applies only if a default occurs under a circumstance  described in Subsection 9.1(f) or in respect of a payment or financial covenant relating to such Indebtedness, (ii)  relating to any sale of receivables by or Indebtedness of a Foreign Subsidiary or (iii) relating to Indebtedness of or a  Financing Disposition by or to or in favor of any Special Purpose Entity;  (h) any agreement relating to intercreditor arrangements and related rights and obligations, to  or by which the Lenders and/or the Administrative Agent, the Collateral Agent or any other agent, trustee or  representative on their behalf may be party or bound at any time or from time to time, and any agreement providing  that in the event that a Lien is granted for the benefit of the Lenders another Person shall also receive a Lien, which  Lien is permitted by Subsection 8.6;  (i) any agreement governing or relating to Indebtedness and/or other obligations and liabilities  secured by a Lien permitted by Subsection 8.6 (in which case any restriction shall only be effective against the assets  subject to such Lien, except as may be otherwise permitted under this Subsection 8.3); or  (j) pursuant to any agreement or arrangement entered into in connection with a disposition  pursuant to clause (xx) of the definition of “Asset Disposition” (in which case any restriction shall only be effective  against the assets sold pursuant to such Asset Disposition).  

 

  - 113 -  8.4 Limitation on Sales of Assets and Subsidiary Stock.  (a) Parent and the Borrower will not,  and will not permit any Group Member to, make any Asset Disposition unless:  (i) the Borrower or such Restricted Subsidiary receives consideration (including by way of  relief from, or by any other Person assuming responsibility for, any liabilities, contingent or otherwise) at the  time of such Asset Disposition at least equal to the fair market value (as of the date on which a legally binding  commitment for such Asset Disposition was entered into) of the shares and assets subject to such Asset  Disposition as such fair market value shall be reasonably determined by the Borrower, whose determination  shall be conclusive (including as to the value of all noncash consideration);  (ii) in the case of any Asset Disposition (or series of related Asset Dispositions) having a fair  market value (as determined by the Borrower in good faith as of the date on which a legally binding  commitment for such Asset Disposition was entered into) of $40,000,000 or more, at least 75.0% of the  consideration therefor (excluding, in the case of an Asset Disposition (or series of related Asset Dispositions),  any consideration by way of relief from, or by any other Person assuming responsibility for, any liabilities,  contingent or otherwise, that are not Indebtedness) received by the Borrower or such Restricted Subsidiary  is in the form of cash; and  (iii) to the extent required by Subsection 8.4(b), an amount equal to 100.0% (as may be adjusted  pursuant to the final proviso of Subsection 8.4(b)) of the Net Available Cash from such Asset Disposition is  applied by the Borrower (or any Restricted Subsidiary, as the case may be) as provided therein.  Notwithstanding the foregoing, in no event shall any Group Member make any Asset Disposition in respect  of material Intellectual Property to any Unrestricted Subsidiary unless such Asset Disposition is to effect an  Investment permitted pursuant to Subsection 8.2(b)(xv).  (b) In the event that on or after the Closing Date any Group Member shall make an Asset  Disposition or a Recovery Event in respect of Collateral shall occur, subject to Subsection 8.4(a), an amount equal to  100.0% (as may be adjusted pursuant to the final proviso of this Subsection 8.4(b)) of the Net Available Cash from  such Asset Disposition or Recovery Event shall be applied by any Group Member, as the case may be) as follows:  (i) first, either (x) if the applicable Group Member elects, to the extent such Asset Disposition  or Recovery Event is an Asset Disposition or Recovery Event in respect of assets that constitute ABL Priority  Collateral, to purchase, redeem, repay or prepay, to the extent any Group Member is required by the terms  thereof, Indebtedness under the Senior ABL Facility or (in the case of letters of credit, bankers’ acceptances  or other similar instruments issued thereunder) cash collateralize any such Indebtedness within the time  period required by such Indebtedness after the later of the date of such Asset Disposition or Recovery Event,  as the case may be, and the date of receipt of such Net Available Cash or (y) to the extent the applicable  Group Member elects (by delivery of an officer’s certificate by a Responsible Officer to the Administrative  Agent) to invest in Additional Assets (including by means of an investment in Additional Assets by a  Restricted Subsidiary with an amount equal to Net Available Cash received by the applicable Group Member)  within 365 days after the later of the date of such Asset Disposition or Recovery Event, as the case may be,  and the date of receipt of such Net Available Cash (such period the “Reinvestment Period”) or, if such  investment in Additional Assets is a project authorized by the Board of Directors that will take longer than  such 365 days to complete and is subject to a binding written commitment entered into during the  Reinvestment Period, an additional 180 days after the last day of the Reinvestment Period (it being  understood and agreed that if no such investment is made within the Reinvestment Period as extended by this  clause (y), the Borrower shall make the prepayments required by Subsection 8.4(b)(ii) on the earlier to occur  of (I) the last day of such Reinvestment Period as extended by this clause (y) and (II) the date the Borrower  elects not to pursue such investment);  (ii) second, (1) if no application of Net Available Cash election is made pursuant to preceding  clause (i) with respect to such Asset Disposition or Recovery Event or (2) if such election is made to the  extent of the balance of such Net Available Cash or equivalent amount after application in accordance with  Subsection 8.4(b)(i), within ten Business Days after the end of the Reinvestment Period specified in clause  (i) above (as extended pursuant to clause (y) of such clause (i)), to purchase, redeem, repay, prepay, make an  

 

  - 114 -  offer to prepay or repurchase, or deliver a notice of redemption, in accordance with Subsection 4.4(e)(i)  (subject to Subsection 4.4(h)) or the agreements or instruments governing the relevant Indebtedness described  in clause (B) below (subject to any provision under such agreement or instrument analogous to Subsection  4.4(h)), as applicable, (A) the Term Loans and (B) to the extent any Group Member is required by the terms  thereof, any Pari Passu Indebtedness on a pro rata basis with the Term Loans; and  (iii) third, to the extent of the balance of such Net Available Cash or equivalent amount after  application in accordance with Subsections 8.4(b)(i) and (ii) above, to fund (to the extent consistent with any  other applicable provision of this Agreement) any general corporate purpose (including but not limited to the  repurchase, repayment or other acquisition or retirement of Junior Debt);   provided, however, that in connection with any prepayment, repayment, purchase or redemption of Indebtedness  pursuant to clause (ii) above, the applicable Group Member will retire such Indebtedness and will cause the related  loan commitment (if any) to be permanently reduced in an amount equal to the principal amount so prepaid, repaid,  purchased or redeemed; provided, further, that the applicable Group Member may elect to invest in Additional Assets  prior to receiving the Net Available Cash attributable to any given Asset Disposition (provided that, such investment  shall be made no earlier than the earliest of notice of the relevant Asset Disposition to the Administrative Agent,  execution of a definitive agreement for the relevant Asset Disposition, and consummation of the relevant Asset  Disposition) and deem the amount so invested to be applied pursuant to and in accordance with Subsection 8.4(b)(i)  above with respect to such Asset Disposition; provided, further, that the percentage first set forth above in this  Subsection 8.4(b) shall be reduced to (x) 50.0% if the Consolidated First Lien Leverage Ratio at the time of such Asset  Disposition (or, at the Borrower’s option, on the date a legally binding commitment for such Asset Disposition was  entered into) is less than or equal to 3.00:1.00 but greater than 2.50:1.00 or (y) 0% if the Consolidated First Lien  Leverage Ratio at the time of such Asset Disposition (or, at the Borrower’s option, on the date a legally binding  commitment for such Asset Disposition was entered into) is less than or equal to 2.50:1.00 (any Net Available Cash  in respect of Asset Dispositions not required to be applied in accordance with this Subsection 8.4(b) as a result of the  application of this proviso shall collectively constitute “Leverage Excess Proceeds”).  (c) Notwithstanding the foregoing provisions of this Subsection 8.4, the Group Members shall  not be required to apply any Net Available Cash or equivalent amount in accordance with this Subsection 8.4 except  to the extent that (x) the aggregate Net Available Cash from all Asset Dispositions and Recovery Events in respect of  Collateral or equivalent amount that is not applied in accordance with this Subsection 8.4 (excluding all Leverage  Excess Proceeds) exceeds $20,000,000 (and only amounts in excess of such $20,000,000 shall be required to be so  applied) or (y) the terms of any Pari Passu Indebtedness would require Net Available Cash or the equivalent amount  from such Asset Dispositions and Recovery Events to be applied to purchase, redeem, repay or prepay such  Indebtedness prior to reaching such $20,000,000 threshold.  (d) For the purposes of Subsection 8.4(a)(ii), the following are deemed to be cash:  (1)  Temporary Cash Investments and Cash Equivalents, (2) the assumption of Indebtedness of any Group Member (other  than Disqualified Stock of Parent) and the release of such Group Member from all liability on payment of the principal  amount of such Indebtedness in connection with such Asset Disposition, (3) Indebtedness of any Restricted Subsidiary  that is no longer a Restricted Subsidiary as a result of such Asset Disposition, to the extent that each other Group  Member is released from any Guarantee of payment of the principal amount of such Indebtedness in connection with  such Asset Disposition, (4) securities received by any Group Member from the transferee that are converted by such  Group Member into cash within 180 days, (5) consideration consisting of Indebtedness of any Group Member, (6)  Additional Assets, and (7) any Designated Noncash Consideration received by any Group Member in an Asset  Disposition having an aggregate fair market value (as determined by the Borrower in good faith), taken together with  all other Designated Noncash Consideration received pursuant to this clause (7), not to exceed an aggregate amount  at any time outstanding equal to the greater of $65,000,000 and 4.00% of Consolidated Total Assets (with the fair  market value (as determined by the Borrower in good faith) of each item of Designated Noncash Consideration being  measured on the date a legally binding commitment for such Asset Disposition (or, if later, for the payment of such  item) was entered into and without giving effect to subsequent changes in value).  8.5 Limitations on Transactions with Affiliates. (a) Parent and the Borrower will not, and will  not permit any Group Member to, directly or indirectly, enter into or conduct any transaction or series of related  transactions (including the purchase, sale, lease or exchange of any property or the rendering of any service) with any  

 

  - 115 -  Affiliate of the Borrower (an “Affiliate Transaction”) involving aggregate consideration in excess of $15,000,000  unless (i) the terms of such Affiliate Transaction are not materially less favorable to the applicable Group Member, as  the case may be, than those that could be obtained at the time in a transaction with a Person who is not such an Affiliate  and (ii) if such Affiliate Transaction involves aggregate consideration in excess of $30,000,000 the terms of such  Affiliate Transaction have been approved by a majority of the Board of Directors. For purposes of this Subsection  8.5(a), any Affiliate Transaction shall be deemed to have satisfied the requirements set forth in this Subsection 8.5(a)  if (x) such Affiliate Transaction is approved by a majority of the Disinterested Directors or (y) in the event there are  no Disinterested Directors, a fairness opinion is provided by a nationally recognized appraisal or investment banking  firm with respect to such Affiliate Transaction.  (b) The provisions of Subsection 8.5(a) will not apply to:  (i) any Restricted Payment Transaction,  (ii) (1) the entering into, maintaining or performance of any employment or consulting  contract, collective bargaining agreement, benefit plan, program or arrangement, related trust agreement or  any other similar arrangement for or with any current or former management member, employee, officer or  director or consultant of or to the Borrower, any Restricted Subsidiary or any Parent Entity heretofore or  hereafter entered into in the ordinary course of business, including vacation, health, insurance, deferred  compensation, severance, retirement, savings or other similar plans, programs or arrangements, (2) payments,  compensation, performance of indemnification or contribution obligations, the making or cancellation of  loans in the ordinary course of business to any such management members, employees, officers, directors or  consultants, (3) any issuance, grant or award of stock, options, other equity related interests or other  securities, to any such management members, employees, officers, directors or consultants, (4) the payment  of reasonable fees to directors of the Borrower or any of its Subsidiaries or any Parent Entity (as determined  in good faith by the Borrower, such Subsidiary or such Parent Entity), or (5) Management Advances and  payments in respect thereof (or in reimbursement of any expenses referred to in the definition of such term),  (iii) any transaction between or among any of the Group Members, or one or more Special  Purpose Entities,  (iv) any transaction arising out of agreements or instruments in existence on the Closing Date  and set forth on Schedule 8.5, and any payments made pursuant thereto,  (v) any transaction in the ordinary course of business on terms that are fair to the Group  Members in the reasonable determination of the Board of Directors or senior management of the Borrower,  or are not materially less favorable to the applicable Group Member than those that could be obtained at the  time in a transaction with a Person who is not an Affiliate of the Borrower,  (vi) any transaction in the ordinary course of business, or approved by a majority of the Board  of Directors, between any Group Member and any Affiliate of the Borrower controlled by the Borrower that  is a joint venture or similar entity,  (vii) [reserved],  (viii) [reserved], and  (ix) any issuance or sale of Capital Stock (other than Disqualified Stock) of the Borrower or  Junior Capital or any capital contribution to the Borrower.  8.6 Limitation on Liens. Parent and the Borrower shall not, and shall not permit any Group  Member to, directly or indirectly, create or permit to exist any Lien (other than Permitted Liens) on any of its property  or assets (including Capital Stock of any other Person), whether owned on the Closing Date or thereafter acquired,  securing any Indebtedness (the “Initial Lien”).  

 

  - 116 -  8.7 Limitation on Fundamental Changes. (a) The Borrower will not consolidate with or merge  or amalgamate with or into, or convey, lease or otherwise transfer all or substantially all its assets to, any Person,  unless:  (i) the resulting, surviving or transferee Person (the “Successor Borrower”) will be a Person  organized and existing under the laws of the United States of America, any State thereof or the District of  Columbia and the Successor Borrower (if not the Borrower) will expressly assume all the obligations of the  Borrower under this Agreement and the Loan Documents to which it is a party by executing and delivering  to the Administrative Agent a joinder or one or more other documents or instruments in form reasonably  satisfactory to the Administrative Agent;  (ii) immediately after giving effect to such transaction (and treating any Indebtedness that  becomes an obligation of the Successor Borrower or any Restricted Subsidiary as a result of such transaction  as having been Incurred by the Successor Borrower or such Restricted Subsidiary at the time of such  transaction), no Default will have occurred and be continuing;   (iii) immediately after giving effect to such transaction, either (A) the Borrower (or, if  applicable, the Successor Borrower with respect thereto) could Incur at least $1.00 of additional Indebtedness  pursuant to Subsection 8.1(a) or (B) the Consolidated Fixed Charge Coverage Ratio of Parent would equal  or exceed the Consolidated Fixed Charge Coverage Ratio of Parent immediately prior to giving effect to such  transaction;  (iv) each Guarantor (other than (x) any Subsidiary Guarantor that will be released from its  obligations under its Guaranty in connection with such transaction and (y) any party to any such  consolidation, amalgamation or merger) shall have delivered a joinder or other document or instrument in  form reasonably satisfactory to the Administrative Agent, confirming its Guaranty (other than any Guaranty  that will be discharged or terminated in connection with such transaction);  (v) each Guarantor (other than (x) any Subsidiary that will be released from its grant or pledge  of Collateral under the Guarantee and Collateral Agreement in connection with such transaction and (y) any  party to any such consolidation, amalgamation or merger) shall have by a supplement to the Guarantee and  Collateral Agreement or another document or instrument affirmed that its obligations thereunder shall apply  to its Guaranty as reaffirmed pursuant to clause (iv) above;  (vi) each mortgagor of a Mortgaged Fee Property (other than (x) any Subsidiary that will be  released from its grant or pledge of Collateral under the Guarantee and Collateral Agreement in connection  with such transaction and (y) any party to any such consolidation or merger) shall have affirmed that its  obligations under the applicable Mortgage shall apply to its Guarantee as reaffirmed pursuant to clause (iv);  and  (vii) the Borrower will have delivered to the Administrative Agent a certificate signed by a  Responsible Officer and a legal opinion, each to the effect that such consolidation, amalgamation, merger or  transfer complies with the provisions described in this Subsection 8.7(a); provided that (x) in giving such  opinion such counsel may rely on such certificate of a Responsible Officer as to compliance with the  foregoing clauses (ii) and (iii) of this Subsection 8.7(a) and as to any matters of fact, and (y) no such legal  opinion will be required for a consolidation, amalgamation, merger or transfer described in Subsection 8.7(d).  (b) Any Indebtedness that becomes an obligation of the Borrower (or, if applicable, any  Successor Borrower with respect thereto) or any Restricted Subsidiary (or that is deemed to be Incurred by any  Restricted Subsidiary that becomes a Restricted Subsidiary) as a result of any such transaction undertaken in  compliance with this Subsection 8.7, and any Refinancing Indebtedness with respect thereto, shall be deemed to have  been Incurred in compliance with Subsection 8.1.  (c) Upon any transaction involving the Borrower in accordance with Subsection 8.7(a) in  which the Borrower is not the Successor Borrower, the Successor Borrower will succeed to, and be substituted for,  

 

  - 117 -  and may exercise every right and power of, the Borrower under the Loan Documents, and shall become the “Borrower”  for all purposes of Loan Documents, and thereafter the predecessor Borrower shall be relieved of all obligations and  covenants under the Loan Documents, and shall cease to constitute the “Borrower” for all purposes of the Loan  Documents, except that the predecessor Borrower in the case of a lease of all or substantially all its assets will not be  released from the obligation to pay the principal of and interest on the Term Loans.  (d) Clauses (ii) and (iii) of Subsection 8.7(a) will not apply to any transaction in which (I) the  Borrower consolidates or merges with or into or transfers all or substantially all its properties and assets to (x) an  Affiliate incorporated or organized for the purpose of reincorporating or reorganizing the Borrower in another  jurisdiction or changing its legal structure to a corporation, limited liability company or other entity or (y) a Restricted  Subsidiary of the Borrower so long as all assets of the Borrower and the Restricted Subsidiaries immediately prior to  such transaction (other than Capital Stock of such Restricted Subsidiary) are owned by such Restricted Subsidiary and  its Restricted Subsidiaries immediately after the consummation thereof or (II) an Escrow Subsidiary merges with and  into the Borrower. Subsection 8.7(a) will not apply to any transaction in which any Restricted Subsidiary consolidates  with, merges into or transfers all or part of its assets to the Borrower.  8.8 Change of Control; Limitation on Amendments. Parent and the Borrower shall not and  shall not permit any Group Member to, directly or indirectly:  (a) In the event of the occurrence of a Change of Control, repurchase or repay any Indebtedness  then outstanding pursuant to any Junior Debt or any portion thereof, unless the Borrower shall have, at its option, (i)  made payment in full of the Term Loans and any other amounts then due and owing to any Lender or the  Administrative Agent hereunder and under any Note or (ii) made an offer (a “Change of Control Offer”) to pay the  Term Loans and any amounts then due and owing to each Lender and the Administrative Agent hereunder and under  any Note and shall have made payment in full thereof to each such Lender or the Administrative Agent which has  accepted such offer. Upon the Borrower making payment in full of the Loans as provided in clause (i) of this  Subsection 8.8(a), or making a Change of Control Offer in accordance with clause (ii) of this Subsection 8.8(a)  (whether or not in connection with any repayment or repurchase of Indebtedness outstanding pursuant to Junior Debt),  any Event of Default arising under Subsection 9.1(k) by reason of such Change of Control shall be deemed not to have  occurred or be continuing.  (b) if an Event of Default under Subsection 9.1(a) or (f) is continuing, amend, supplement,  waive or otherwise modify any of the provisions of any indenture, instrument or agreement evidencing Subordinated  Obligations or Guarantor Subordinated Obligations in a manner that (i) changes the subordination provisions of such  Indebtedness or (ii) shortens the maturity date of such Indebtedness to a date prior to the Initial Term Loan Maturity  Date or provides for a shorter weighted average life to maturity than the remaining weighted average life to maturity  of the Initial Term Loans; provided that, notwithstanding the foregoing, the provisions of this Subsection 8.8(b) shall  not restrict or prohibit any refinancing of Indebtedness (in whole or in part) permitted pursuant to Subsection 8.1.  (c) Amend, supplement, waive or otherwise modify the terms of any Permitted Debt Exchange  Notes, any Additional Obligations or any Refinancing Indebtedness in respect of the foregoing or any indenture or  agreement pursuant to which such Permitted Debt Exchange Notes, Additional Obligations or Refinancing  Indebtedness have been issued or incurred in any manner inconsistent with the requirements of the definition of  “Refinancing Indebtedness”, assuming for purposes of this Subsection 8.8(c) that such amendment, supplement,  waiver or modification, mutatis mutandis, is a refinancing of such Additional Obligations, Permitted Debt Exchange  Notes or Refinancing Indebtedness, as applicable.  8.9 Limitation on Lines of Business. Parent and the Borrower shall not, and shall not permit  any Group Members to, directly or indirectly, enter into any business, either directly or through any Restricted  Subsidiary, except for those businesses of the same general type as those in which the Group Members are engaged  in on the Closing Date or which are reasonably related thereto and any business related thereto.  8.10 Permitted Activities. Parent shall not own any Capital Stock other than Capital Stock in  Holdings or the Borrower (or Successor Borrower).  Holdings shall not own any equity interests other than Capital  Stock in the Borrower (or Successor Borrower).  

 

  - 118 -  8.11  Canadian Defined Benefit Plans.  The Group Members shall not sponsor, maintain,  participate in, contribute to, or otherwise assume any liability in respect of, any Canadian Defined Benefit Plan,  without the prior written consent of the Administrative Agent.     SECTION 9    Events of Default  9.1 Events of Default. Any of the following from and after the Closing Date shall constitute an  “Event of Default”:  (a) The Borrower shall fail to pay any principal of any Loan when due in accordance with the  terms hereof (whether at stated maturity, by mandatory prepayment or otherwise); or the Borrower shall fail to pay  any interest on any Loan, or any other amount payable hereunder, within five Business Days after any such interest  or other amount becomes due in accordance with the terms hereof; or  (b) Any representation or warranty made or deemed made by any Loan Party herein or in any  other Loan Document (or in any amendment, modification or supplement hereto or thereto) or which is contained in  any certificate furnished at any time by or on behalf of any Loan Party pursuant to this Agreement or any such other  Loan Document shall prove to have been incorrect in any material respect on or as of the date made or deemed made;  or  (c) Any Loan Party shall default in the payment, observance or performance of any term,  covenant or agreement contained in Subsection 7.7(a) or Section 8; or  (d) Any Loan Party shall default in the observance or performance of any other agreement  contained in this Agreement or any other Loan Document (other than as provided in clauses (a) through (c) of this  Subsection 9.1), and such default shall continue unremedied for a period of, in the case of a default with respect to  reporting obligations under Subsection 7.1, 60 days, and in the case of any other default, 30 days, in each case after  the earlier of (A) the date on which a Responsible Officer of the Borrower becomes aware of such failure and (B) the  date on which written notice thereof shall have been given to the Borrower by the Administrative Agent or the  Required Lenders; or  (e) Any Loan Party or any of its Restricted Subsidiaries shall (i) default in (x) any payment of  principal of or interest on any Indebtedness (excluding Indebtedness hereunder) in excess of $50,000,000 or (y) in the  payment of any Guarantee Obligation in respect of Indebtedness in excess of $50,000,000, beyond the period of grace,  if any, provided in the instrument or agreement under which such Indebtedness or Guarantee Obligation was created;  (ii) default in the observance or performance of any other agreement or condition relating to any Indebtedness  (excluding Indebtedness hereunder) or Guarantee Obligation referred to in clause (i) above or contained in any  instrument or agreement evidencing, securing or relating thereto (other than a failure to provide notice of a default or  an event of default under such instrument or agreement or default in the observance of or compliance with any financial  maintenance covenant), or any other event shall occur or condition exist, the effect of which default or other event or  condition is to cause, or to permit the holder or holders of such Indebtedness or beneficiary or beneficiaries of such  Guarantee Obligation (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to  cause, with the giving of notice or lapse of time if required, such Indebtedness to become due prior to its stated maturity  or such Guarantee Obligation to become payable (an “Acceleration”; and the term “Accelerated” shall have a  correlative meaning), and such time shall have lapsed and, if any notice (a “Default Notice”) shall be required to  commence a grace period or declare the occurrence of an event of default before notice of Acceleration may be  delivered, such Default Notice shall have been given and (in the case of the preceding clause (i) or (ii)) such default,  event or condition shall not have been remedied or waived by or on behalf of the holder or holders of such Indebtedness  or Guarantee Obligation (provided that the preceding clause (ii) shall not apply to (x) secured Indebtedness that  becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness, if such  sale or transfer is permitted hereunder or (y) any termination event or similar event pursuant to the terms of any Hedge  Agreement); or (iii) in the case of any Indebtedness or Guarantee Obligations referred to in clause (i) above containing  

 

  - 119 -  or otherwise requiring observance or compliance with any financial maintenance covenant, default in the observance  of or compliance with such financial maintenance covenant such that such Indebtedness or Guarantee Obligation shall  have been Accelerated and such Acceleration shall not have been rescinded; or  (f) If (i) Parent, Holdings, the Borrower or any Material Subsidiary of the Borrower shall  commence any case, proceeding or other action (A) under any existing or future law of any jurisdiction, domestic or  foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief  entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement,  adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts (excluding,  in each case, the solvent liquidation or reorganization of any Foreign Subsidiary of the Borrower that is not a Loan  Party), or (B) seeking appointment of a receiver, interim receiver, receivers, receiver and manager, trustee, custodian,  conservator or other similar official for it or for all or any substantial part of its assets, or Parent, Holdings, the  Borrower or any Material Subsidiary of the Borrower shall make a general assignment for the benefit of its creditors;  or (ii) there shall be commenced against Parent, Holdings, the Borrower or any Material Subsidiary of the Borrower  any case, proceeding or other action of a nature referred to in clause (i) above which (A) results in the entry of an  order for relief or any such adjudication or appointment or (B) remains undismissed, undischarged, unstayed or  unbonded for a period of 60 days; or (iii) there shall be commenced against Parent, Holdings, the Borrower or any  Material Subsidiary of the Borrower any case, proceeding or other action seeking issuance of a warrant of attachment,  execution, distraint or similar process against all or any substantial part of its assets which results in the entry of an  order for any such relief which shall not have been vacated, discharged, stayed or bonded pending appeal within 60  days from the entry thereof; or (iv) Parent, Holdings, the Borrower or any Material Subsidiary of the Borrower shall  take any corporate or other similar organizational action in furtherance of, or indicating its consent to, approval of, or  acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above; or (v) Parent, Holdings, the Borrower or any  Material Subsidiary of the Borrower shall be generally unable to, or shall admit in writing its general inability to, pay  its debts as they become due; or  (g) (i) Any failure to satisfy the minimum funding standard (within the meaning of Section  412 of the Code or Section 302 of ERISA), whether or not waived, shall exist with respect to any Single Employer  Plan or any Lien in favor of the PBGC or a Single Employer Plan shall arise on the assets of either of the Borrower or  any Commonly Controlled Entity, (ii) a Reportable Event shall occur with respect to, or proceedings shall commence  to have a trustee appointed, or a trustee shall be appointed, to administer or to terminate, any Single Employer Plan,  which Reportable Event or commencement of proceedings or appointment of a trustee is in the reasonable opinion of  the Administrative Agent likely to result in the termination of such Plan for purposes of Title IV of ERISA, (iii) any  Single Employer Plan shall terminate for purposes of Title IV of ERISA other than in a standard termination pursuant  to Section 4041(b) of ERISA, (iv) either of the Borrower or any Commonly Controlled Entity shall, or in the  reasonable opinion of the Administrative Agent is reasonably likely to, incur any liability in connection with a  withdrawal from, or the Insolvency of, a Multiemployer Plan, (v) a Canadian Pension Event shall occur or exist, or  (vi) any other event or condition shall occur or exist with respect to a Plan or Foreign Plan; and in each case in clauses  (i) through (vi) above, such event or condition, together with all other such events or conditions, if any, would be  reasonably expected to result in a Material Adverse Effect; or  (h) One or more judgments or decrees shall be entered against any Group Member  involving  in the aggregate at any time a liability (not covered by insurance as to which the relevant insurance company has not  denied coverage) of $50,000,000 or more, and all such judgments or decrees shall not have been vacated, discharged,  stayed or bonded pending appeal within 60 days from the entry thereof; or  (i) (i) The Guarantee and Collateral Agreement shall, or any other Security Document  covering a significant portion of the Term Loan Priority Collateral shall (at any time after its execution, delivery and  effectiveness) cease for any reason to be in full force and effect (other than pursuant to the terms hereof or thereof),  or any Loan Party which is a party to any such Security Document shall so assert in writing or (ii) the Lien created by  any of the Security Documents shall cease to be perfected and enforceable in accordance with its terms or of the same  effect as to perfection and priority purported to be created thereby with respect to any significant portion of the Term  Loan Priority Collateral (other than in connection with any termination of such Lien in respect of any Collateral as  permitted hereby or by any Security Document) and such failure of such Lien to be perfected and enforceable with  such priority shall have continued unremedied for a period of 20 days; or  

 

  - 120 -  (j) Any Loan Party shall assert in writing that any of the ABL/Term Loan Intercreditor  Agreement, any Junior Lien Intercreditor Agreement (after execution and delivery thereof) or any Other Intercreditor  Agreement (after execution and delivery thereof) shall have ceased for any reason to be in full force and effect (other  than pursuant to the terms hereof or thereof) or shall knowingly contest, or knowingly support any other Person in any  action that seeks to contest, the validity or effectiveness of any such intercreditor agreement (other than pursuant to  the terms hereof or thereof); or  (k) Subject to the Borrower’s option to make a payment in full of all of the Term Loans, or to  make a Change of Control Offer, each in accordance with Subsection 8.8(a) (whether or not in connection with any  repayment or repurchase of Indebtedness outstanding pursuant to any Junior Debt), a Change of Control shall have  occurred.  9.2 Remedies Upon an Event of Default.  (a) If any Event of Default occurs and is continuing,  then, and in any such event, (A) if such event is an Event of Default specified in clause (i) or (ii) of Subsection 9.1(f)  with respect to the Borrower, automatically the Loans hereunder (with accrued interest thereon) and all other amounts  owing under this Agreement shall immediately become due and payable, and (B) if such event is any other Event of  Default, with the consent of the Required Lenders, the Administrative Agent may, or upon the request of the Required  Lenders, the Administrative Agent shall, by notice to the Borrower, declare the Loans hereunder (with accrued interest  thereon) and all other amounts owing under this Agreement to be due and payable forthwith, whereupon the same  shall immediately become due and payable.  (b) Except as expressly provided above in this Section 9, to the maximum extent permitted by  applicable law, presentment, demand, protest and all other notices of any kind are hereby expressly waived.  SECTION 10    The Agents and the Other Representatives  10.1 Appointment.  (a) Each Lender hereby irrevocably designates and appoints the Agents as  the agents of such Lender under this Agreement and the other Loan Documents, and each such Lender irrevocably  authorizes each Agent, in such capacity, to take such action on its behalf under the provisions of this Agreement and  the other Loan Documents and to exercise such powers and perform such duties as are expressly delegated to or  required of such Agent by the terms of this Agreement and the other Loan Documents, together with such other powers  as are reasonably incidental thereto. Notwithstanding any provision to the contrary elsewhere in this Agreement, the  Agents and the Other Representatives shall not have any duties or responsibilities, except, in the case of the  Administrative Agent and the Collateral Agent, those expressly set forth herein, or any fiduciary relationship with any  Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this  Agreement or any other Loan Document or otherwise exist against any Agent or the Other Representatives.  (b) Each of the Agents may perform any of their respective duties under this Agreement, the  other Loan Documents and any other instruments and agreements referred to herein or therein by or through its  respective officers, directors, agents, employees or affiliates, or delegate any and all such rights and powers to, any  one or more sub-agents appointed by such Agent (it being understood and agreed, for avoidance of doubt and without  limiting the generality of the foregoing, that the Administrative Agent and the Collateral Agent may perform any of  their respective duties under the Security Documents by or through one or more of their respective affiliates). Each  Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through  their respective Related Parties. The exculpatory provisions of this Section 10 shall apply to any such sub-agent and  to the Related Parties of each 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 Agent.  (c) Except for Subsections 10.5, 10.8(a), (b), (c) and (e) and (to the extent of the Borrower’s  rights thereunder and the conditions included therein) 10.9, the provisions of this Section 10 are solely for the benefit  of the Agents and the Lenders, and neither the Borrower nor any other Loan Party shall have rights as a third party  beneficiary of any of such provisions.  

 

  - 121 -  10.2 The Administrative Agent and Affiliates. Each person serving as an 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 an Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the  context otherwise requires, include each person serving as an Agent hereunder in its individual capacity. Such person  and its affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity  for and generally engage in any kind of business with Parent, Holdings, the Borrower or any Subsidiary or other  Affiliate thereof as if such person were not an Agent hereunder and without any duty to account therefor to the Lenders.  10.3 Action by an Agent. In performing its functions and duties under this Agreement, (a) each  Agent shall act solely as an agent for the Lenders and, as applicable, the other Secured Parties, and (b) no Agent  assumes any (and shall not be deemed to have assumed any) relationship of agency or trust with or for the Borrower  or any of its Subsidiaries. Each Agent may execute any of its duties under this Agreement and the other Loan  Documents by or through agents or attorneys-in-fact (including the Collateral Agent in the case of the Administrative  Agent), and shall be entitled to advice of counsel concerning all matters pertaining to such duties. No Agent shall be  responsible for the negligence or misconduct of any agents or attorneys-in-fact or counsel selected by it with  reasonable care.  10.4 Exculpatory Provisions. (a) No Agent shall have any duties or obligations except those  expressly set forth herein and in the other Loan Documents. Without limiting the generality of the foregoing, no Agent:  (i) shall be subject to any fiduciary or other implied duties, regardless of whether a Default  has occurred and is continuing;  (ii) shall 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  such 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 such Agent shall not be required to take any action that, in its judgment or the judgment of its counsel,  may expose such Agent to liability or that is contrary to any Loan Document or applicable Requirement of  Law; and   (iii) shall, except as expressly set forth herein and in the other Loan Documents, have any duty  to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any  of its Affiliates that is communicated to or obtained by the person serving as such Agent or any of its affiliates  in any capacity.  (b) Neither the Agent nor its Related Parties shall be liable for any action taken or not taken  by it (x) 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 such Agent shall believe in good faith shall be necessary, under the circumstances as  provided in Subsection 9.2 or Subsection 11.1, as applicable) or (y) in the absence of its own bad faith, gross  negligence or willful misconduct. Neither the Agent nor its Related Parties shall be deemed to have knowledge of any  Default unless and until notice describing such Default (and stating that it is a “notice of default”) is given to such  Agent by the Borrower or a Lender and no Agent shall have any duty or liability whatsoever to the Borrower, the  Guarantors or the Lenders for monitoring the list or entities of, or monitoring or enforcing the provisions related to,  Disqualified Parties.  (c) No Agent shall be responsible for or have any duty to ascertain or inquire into (i) any  statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii)  the contents of any certificate, report, statement, agreement or other document delivered hereunder or thereunder or  in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other  terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability,  effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or  document or the creation, perfection or priority of any Lien purported to be created by the Security Documents  (including, for the avoidance of doubt, in connection with the Agent’s reliance on any Electronic Signature transmitted  by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page)  or (v) the satisfaction of any condition set forth in herein, other than to confirm receipt of items expressly required to  

 

  - 122 -  be delivered to such Agent. Without limiting the generality of the foregoing, the use of the term “agent” in this  Agreement with reference to the Administrative Agent or the Collateral 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 as  used merely as a matter of market custom and is intended to create or reflect only an administrative relationship  between independent contracting parties.  (d) Each party to this Agreement acknowledges and agrees that the Administrative Agent may  use an outside service provider for the tracking of all UCC and PPSA financing statements required to be filed pursuant  to the Loan Documents and notification to the Administrative Agent, of, among other things, the upcoming lapse or  expiration thereof, and that any such service provider will be deemed to be acting at the request and on behalf of the  Borrower and the other Loan Parties. No Agent shall be liable for any action taken or not taken by any such service  provider.  10.5 Acknowledgement and Representations by Lenders. (a) Each Lender expressly  acknowledges that none of the Agents or the Other Representatives nor any of their officers, directors, employees,  agents, attorneys-in-fact or affiliates has made any representations or warranties to it and that no act by any Agent or  any Other Representative hereafter taken, including any review of the affairs of the Borrower or any other Loan Party,  shall be deemed to constitute any representation or warranty by such Agent or such Other Representative to any  Lender. Each Lender further represents and warrants to the Agents, the Other Representatives and each of the Loan  Parties that it has had the opportunity to review each document made available to it on the Platform in connection with  this Agreement and has acknowledged and accepted the terms and conditions applicable to the recipients thereof. Each  Lender represents to the Agents, the Other Representatives and each of the Loan Parties that, independently and  without reliance upon any Agent, the Other Representatives or any other Lender, and based on such documents and  information as it has deemed appropriate, it has made and will make, its own appraisal of and investigation into the  business, operations, property, financial and other condition and creditworthiness of Holdings and the Borrower and  the other Loan Parties, it has made its own decision to make its Loans hereunder and enter into this Agreement and it  will make its own decisions in taking or not taking any action under this Agreement and the other Loan Documents  and, except as expressly provided in this Agreement, neither the Agents nor any Other Representative shall have any  duty or responsibility, either initially or on a continuing basis, to provide any Lender or the holder of any Note with  any credit or other information with respect thereto, whether coming into its possession before the making of the  Loans or at any time or times thereafter. Each Lender represents to each other party hereto that (i) it is a bank, savings  and loan association or other similar savings institution, insurance company, investment fund or company or other  financial institution which makes or acquires commercial loans in the ordinary course of its business and that it is  participating hereunder as a Lender for such commercial purposes and (ii) it has the knowledge and experience to be  and is capable of evaluating the merits and risks of being a Lender hereunder. Each Lender acknowledges and agrees  to comply with the provisions of Subsection 11.6 applicable to the Lenders hereunder.  (b) Each Lender, by delivering its signature page to this Agreement on the Closing Date, or  delivering its signature page to any other Loan Document pursuant to which it shall become a Lender hereunder, shall  be deemed to have acknowledged receipt of, and consented to and approved, each Loan Document and each other  document required to be delivered to, or be approved by or satisfactory to, the Administrative Agent or the Lenders  on the Closing Date.  (c) (i)  Each Lender  hereby agrees that (x) if the Administrative Agent notifies such Lender  that the Administrative Agent has determined in its sole discretion that any funds received by such Lender from the  Administrative Agent or any of its Affiliates (whether as a payment, prepayment or repayment of principal, interest,  fees or otherwise; individually and collectively, a “Payment”) were erroneously transmitted to such Lender (whether  or not known to such Lender), and demands the return of such Payment (or a portion thereof), such Lender shall  promptly, but in no event later than one Business Day thereafter, return to the Administrative Agent the amount of  any such Payment (or portion thereof) as to which such a demand was made in same day funds, together with interest  thereon in respect of each day from and including the date such Payment (or portion thereof) was received by such  Lender to the date such amount is repaid to the Administrative Agent at the greater of the NYFRB Rate and a rate  determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from  time to time in effect, and (y) to the extent permitted by applicable law, such Lender shall not assert, and hereby  waives, as to the Administrative Agent, 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 Payments received, including  

 

  - 123 -  without limitation any defense based on “discharge for value” or any similar doctrine.  A notice of the Administrative  Agent to any Lender under this Subsection 10.5(c) shall be conclusive, absent manifest error.  (ii) Each Lender hereby further agrees that if it receives a 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 sent by the Administrative Agent (or any of its Affiliates) with respect to such Payment  (a “Payment Notice”) or (y) that was not preceded or accompanied by a Payment Notice, it shall be on notice,  in each such case, that an error has been made with respect to such Payment.  Each Lender agrees that, in  each such case, or if it otherwise becomes aware a Payment (or portion thereof) may have been sent in error,  such Lender shall promptly notify the Administrative Agent of such occurrence and, upon demand from the  Administrative Agent, it shall promptly, but in no event later than one Business Day thereafter, return to the  Administrative Agent the amount of any such Payment (or portion thereof) as to which such a demand was  made in same day funds, together with interest thereon in respect of each day from and including the date  such Payment (or portion thereof) was received by such Lender to the date such amount is repaid to the  Administrative Agent at the greater of the NYFRB Rate and a rate determined by the Administrative Agent  in accordance with banking industry rules on interbank compensation from time to time in effect.  (iii) The Borrower and each other Loan Party hereby agrees that (x) in the event an erroneous  Payment (or portion thereof) are not recovered from any Lender that has received such Payment (or portion  thereof) for any reason, the Administrative Agent shall be subrogated to all the rights of such Lender with  respect to such amount and (y) an erroneous Payment shall not pay, prepay, repay, discharge or otherwise  satisfy any Obligations owed by the Borrower or any other Loan Party.  (iv) Each party’s obligations under this Subsection 10.5(c) shall survive the resignation or  replacement of the Administrative Agent or any transfer of rights or obligations by, or the replacement of, a  Lender, the termination of the Commitments or the repayment, satisfaction or discharge of all Obligations  under any Loan Document.   10.6 Indemnity; Reimbursement by Lenders. (a) To the extent that the Borrower or any other  Loan Party for any reason fails to indefeasibly pay any amount required under Subsection 11.5 to be paid by it to the  Administrative Agent (or any sub-agent thereof), or the Collateral Agent (or any sub-agent thereof), or any Related  Party of any of the foregoing, each Lender severally agrees to pay ratably according to their respective Term Credit  Percentages on the date on which the applicable unreimbursed expense or indemnity payment is sought under this  Subsection 10.6 such unpaid amount and agrees to indemnify and hold the Administrative Agent (or any sub-agent  thereof) harmless (such indemnity shall be effective whether or not the related losses, claims, damages, liabilities and  related expenses are incurred or asserted by any party hereto or any third party); 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 Collateral Agent (or any sub-agent thereof),  or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent) or  the Collateral Agent (or any sub-agent thereof), in connection with such capacity. The obligations of the Lenders  under this Subsection 10.6 are subject to the provisions of Subsection 4.8.  (b) Any Agent shall be fully justified in failing or refusing to take any action hereunder and  under any other Loan Document (except actions expressly required to be taken by it hereunder or under the Loan  Documents) unless it shall first be indemnified to its satisfaction by the Lenders pro rata against any and all liability,  cost and expense that it may incur by reason of taking or continuing to take any such action.  (c) All amounts due under this Subsection 10.6 shall be payable not later than three Business  Days after demand therefor. The agreements in this Subsection 10.6 shall survive the payment of the Loans and all  other amounts payable hereunder.  10.7 Right to Request and Act on Instructions.  (a) Each Agent may at any time request instructions from the Lenders with respect to any  actions or approvals which by the terms of this Agreement or of any of the Loan Documents an Agent is permitted or  desires to take or to grant, and if such instructions are promptly requested, the requesting Agent shall be absolutely  

 

  - 124 -  entitled as between itself and the Lenders to refrain from taking any action or to withhold any approval and shall not  be under any liability whatsoever to any Lender for refraining from any action or withholding any approval under any  of the Loan Documents until it shall have received such instructions from Required Lenders or all or such other portion  of the Lenders as shall be prescribed by this Agreement. Without limiting the foregoing, no Lender shall have any  right of action whatsoever against any Agent as a result of an Agent acting or refraining from acting under this  Agreement or any of the other Loan Documents in accordance with the instructions of the Required Lenders (or all or  such other portion of the Lenders as shall be prescribed by this Agreement) and, notwithstanding the instructions of  the Required Lenders (or such other applicable portion of the Lenders), an Agent shall have no obligation to any  Lender to take any action if it believes, in good faith, that such action would violate applicable law or exposes an  Agent to any liability for which it has not received satisfactory indemnification in accordance with the provisions of  Subsection 10.6.  (b) Each Agent shall be entitled to rely upon, and shall not incur any liability for relying upon,  any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic  message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been  signed, sent or otherwise authenticated by the proper person. Each Agent also may rely upon any statement made to  it orally or by telephone and believed by it to have been made by the proper person, and shall not incur any liability  for relying thereon. In determining compliance with any condition hereunder to the making of a Loan that by its terms  must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition is  satisfactory to such Lender unless the Administrative Agent shall have received notice to the contrary from such  Lender prior to the making of such Loan. Each Agent may consult with legal counsel (who may be counsel for the  Borrower), independent accountants and other experts selected by it, and shall be entitled to rely upon the advice of  any such counsel, accountants or experts and shall not be liable for any action taken or not taken by it in accordance  with such advice.  10.8 Collateral Matters. (a) Each Lender authorizes and directs the Administrative Agent and  the Collateral Agent to enter into (x) the Security Documents, the ABL/Term Loan Intercreditor Agreement, any  Junior Lien Intercreditor Agreement and any Other Intercreditor Agreement for the benefit of the Lenders and the  other Secured Parties, (y) any amendments, amendments and restatements, restatements or waivers of or supplements  to or other modifications to the Security Documents, the ABL/Term Loan Intercreditor Agreement, any Junior Lien  Intercreditor Agreement and any Other Intercreditor Agreement or other intercreditor agreements in connection with  the incurrence by any Loan Party or any Subsidiary thereof of Additional Indebtedness (each, an “Intercreditor  Agreement Supplement”) to permit such Additional Indebtedness to be secured by a valid, perfected lien (with such  priority as may be designated by the Borrower or relevant Subsidiary, to the extent such priority is permitted by the  Loan Documents) and (z) any Incremental Commitment Amendment as provided in Subsection 2.8 together with any  escrow agreements in connection therewith, any Increase Supplement as provided in Subsection 2.8, any Lender  Joinder Agreement as provided in Subsection 2.8, any agreement required in connection with a Permitted Debt  Exchange Offer pursuant to Subsection 2.9, any Extension Amendment as provided in Subsection 2.10 and any  Specified Refinancing Amendment as provided in Subsection 2.11. Each Lender hereby agrees, and each holder of  any Note by the acceptance thereof will be deemed to agree, that, except as otherwise set forth herein, any action taken  by the Administrative Agent, Collateral Agent or the Required Lenders in accordance with the provisions of this  Agreement, the Security Documents, the ABL/Term Loan Intercreditor Agreement, any Junior Lien Intercreditor  Agreement, any Other Intercreditor Agreement, any Intercreditor Agreement Supplement, any Incremental  Commitment Amendment and any escrow agreement entered into in connection therewith, any Increase Supplement,  any Lender Joinder Agreement or any agreement required in connection with a Permitted Debt Exchange Offer or any  Extension Amendment or any Specified Refinancing Amendment and the exercise by the Agents or the Required  Lenders of the powers set forth herein or therein, together with such other powers as are reasonably incidental thereto,  shall be authorized and binding upon all of the Lenders. The Collateral Agent is hereby authorized on behalf of all of  the Lenders, without the necessity of any notice to or further consent from any Lender, from time to time, to take any  action with respect to any applicable Collateral or Security Documents which may be necessary to perfect and maintain  perfected the security interest in and liens upon the Collateral granted pursuant to the Security Documents. Each  Lender agrees that it will not have any right individually to enforce or seek to enforce any Security Document or to  realize upon any Collateral for the Loans unless instructed to do so by the Collateral Agent, it being understood and  agreed that such rights and remedies may be exercised only by the Collateral Agent. The Collateral Agent may grant  extensions of time for the creation and perfection of security interests in or the obtaining of title insurance, legal  opinions or other deliverables with respect to particular assets or the provision of any guarantee by any Subsidiary  

 

  - 125 -  (including extensions beyond the Closing Date or in connection with assets acquired, or Subsidiaries formed or  acquired, after the Closing Date) where it determines that such action cannot be accomplished without undue effort or  expense by the time or times at which it would otherwise be required to be accomplished by this Agreement or the  Security Documents.  (b) The Lenders hereby authorize each Agent, in each case at its option and in its discretion,  (A) to release any Lien granted to or held by such Agent upon any Collateral (i) upon termination of the Commitments  and payment and satisfaction of all of the Loan Document Obligations under the Loan Documents at any time arising  under or in respect of this Agreement or the Loan Documents or the transactions contemplated hereby or thereby that  are then due and unpaid, (ii) constituting property being sold or otherwise disposed of (to Persons other than a Loan  Party) upon the sale or other disposition thereof, (iii) owned by any Subsidiary Guarantor which becomes an Excluded  Subsidiary or ceases to be a Restricted Subsidiary of the Borrower or constituting Capital Stock or other equity  interests of an Excluded Subsidiary (provided that the release of any assets if a Subsidiary Guarantor becomes an  Excluded Subsidiary of the type described in clause (f) of the definition thereof shall only be permitted if such  Subsidiary Guarantor is or becomes an Excluded Subsidiary for a bona fide legitimate business purpose of the Group  Members and not for the primary purpose of evading the collateral and guarantee requirements of the Loan Documents  (as determined by the Borrower in good faith), (iv) if approved, authorized or ratified in writing by the Required  Lenders (or such greater amount, to the extent required by Subsection 11.1) or (v) as otherwise may be expressly  provided in the relevant Security Documents, (B) enter into any intercreditor agreement (including the ABL/Term  Loan Intercreditor Agreement, a Junior Lien Intercreditor Agreement and any Other Intercreditor Agreement) on  behalf of, and binding with respect to, the Lenders and their interest in designated assets, to give effect to any Special  Purpose Financing, including to clarify the respective rights of all parties in and to designated assets; (C) at the written  request of the Borrower to subordinate any Lien (or to confirm the absence of any Lien) on any Excluded Assets or  any other property granted to or held by such Agent, as the case may be under any Loan Document to the holder of  any Permitted Lien (other than Permitted Liens securing the Obligations under the Loan Documents or that are  required by the express terms of this Agreement to be pari passu with or junior to the Liens on the Collateral securing  the Loan Document Obligations pursuant to the ABL/Term Loan Intercreditor Agreement, a Junior Lien Intercreditor  Agreement or an Other Intercreditor Agreement), (D) to release any Subsidiary Guarantor from its Obligations under  any Loan Documents to which it is a party if such Person ceases to be a Restricted Subsidiary of the Borrower or  becomes an Excluded Subsidiary (provided that the release of a Subsidiary Guarantor if it becomes an Excluded  Subsidiary of the type described in clause (f) of the definition thereof shall only be permitted if such Subsidiary  Guarantor is or becomes an Excluded Subsidiary for a bona fide legitimate business purpose of the Group Members  and not for the primary purpose of evading the collateral and guarantee requirements of the Loan Documents (as  determined by the Borrower in good faith) and (E) to release any Lien granted to or held by such Agent upon any  ABL Priority Collateral to the extent required pursuant to the terms of the ABL/Term Loan Intercreditor Agreement  or any Other Intercreditor Agreement. Upon request by any Agent, at any time, the Required Lenders or all or such  other portion of the Lenders as shall be prescribed by this Agreement will confirm in writing any Agent’s authority to  release particular types or items of Collateral pursuant to this Subsection 10.8.  (c) The Lenders hereby authorize the Administrative Agent and the Collateral Agent, as the  case may be, in each case at its option and in its discretion, to enter into any amendment, amendment and restatement,  restatement, waiver, supplement or modification, and to make or consent to any filings or to take any other actions, in  each case as contemplated by Subsection 11.17. Upon request by any Agent, at any time, the Required Lenders will  confirm in writing the Administrative Agent’s and the Collateral Agent’s authority under this Subsection 10.8(c).  (d) No Agent shall have any obligation whatsoever to the Lenders to assure that the Collateral  exists or is owned by any Group Member or is cared for, protected or insured or that the Liens granted to any Agent  herein or pursuant hereto have been properly or sufficiently or lawfully created, perfected, protected or enforced or  are entitled to any particular priority, or to exercise or to continue exercising at all or in any manner or under any duty  of care, disclosure or fidelity any of the rights, authorities and powers granted or available to the Agents in this  Subsection 10.8 or in any of the Security Documents, it being understood and agreed by the Lenders that in respect of  the Collateral, or any act, omission or event related thereto, each Agent may act in any manner it may deem  appropriate, in its sole discretion, given such Agent’s own interest in the Collateral as a Lender and that no Agent  shall have any duty or liability whatsoever to the Lenders, except for its gross negligence or willful misconduct as  determined by a court of competent jurisdiction in a final and non-appealable decision.  

 

  - 126 -  (e) Notwithstanding any provision herein to the contrary, any Security Document may be  amended (or amended and restated), restated, waived, supplemented or modified as contemplated by and in accordance  with either Subsection 11.1 or 11.17, as applicable, with the written consent of the Agent party thereto and the Loan  Party party thereto.  (f) The Collateral Agent may, and hereby does, appoint the Administrative Agent as its agent  for the purposes of holding any Collateral and/or perfecting the Collateral Agent’s security interest therein and for the  purpose of taking such other action with respect to the collateral as such Agents may from time to time agree.  10.9 Successor Agent. (a)  Subject to the appointment of a successor as set forth herein, the  Administrative Agent and the Collateral Agent may resign as Administrative Agent or Collateral Agent, respectively,  in each case upon thirty days’ notice to the Administrative Agent, the Lenders and the Borrower, as applicable. If the  Administrative Agent or the Collateral Agent shall resign as Administrative Agent or Collateral Agent, as applicable,  under this Agreement and the other Loan Documents, then the Required Lenders shall appoint from among the Lenders  a successor agent for the Lenders, which such successor agent shall be subject to approval by the Borrower; provided  that such approval by the Borrower in connection with the appointment of any successor Administrative Agent shall  only be required so long as no Event of Default under Subsection 9.1(a) or (f) has occurred and is continuing; provided  further, that the Borrower shall not unreasonably withhold its approval of any successor Administrative Agent. Upon  the successful appointment of a successor agent, such successor agent shall succeed to the rights, powers and duties  of the Administrative Agent or the Collateral Agent, as applicable, and the term “Administrative Agent” or “Collateral  Agent”, as applicable, shall mean such successor agent effective upon such appointment and approval, and the former  Agent’s rights, powers and duties as Administrative Agent or Collateral Agent, as applicable, shall be terminated,  without any other or further act or deed on the part of such former Agent or any of the parties to this Agreement or  any holders of the Loans. After any retiring Agent’s resignation or removal as Agent, the provisions of this Section 10  (including this Subsection 10.9) shall inure to its benefit as to any actions taken or omitted to be taken by it while it  was Agent under this Agreement and the other Loan Documents. 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  (b) Notwithstanding paragraph (a) of this Section 10.9, in the event no successor Agent shall  have been so appointed and shall have accepted such appointment within 30 days after the retiring Agent gives notice  of its intent to resign, the retiring Agent may give notice of the effectiveness of its resignation to the Lenders and the  Borrower, whereupon, on the date of effectiveness of such resignation stated in such notice, (i) the retiring Agent shall  be discharged from its duties and obligations hereunder and under the other Loan Documents; provided that, solely  for purposes of maintaining any security interest granted to the Collateral Agent under any Security Document for the  benefit of the Secured Parties, the retiring Collateral Agent shall continue to be vested with such security interest as  collateral agent for the benefit of the Secured Parties, and continue to be entitled to the rights set forth in such Security  Document and Loan Document, and, in the case of any Collateral in the possession of the Collateral Agent, shall  continue to hold such Collateral, in each case until such time as a successor Agent is appointed and accepts such  appointment in accordance with this Section 10.9 (it being understood and agreed that the retiring Agent shall have  no duty or obligation to take any further action under any Security Document, including any action required to  maintain the perfection of any such security interest), and (ii) the Required Lenders shall succeed to and become  vested with all the rights, powers, privileges and duties of the retiring Agent; provided that (A) all payments required  to be made hereunder or under any other Loan Document to the Agent for the account of any Person other than the  Agent shall be made directly to such Person and (B) all notices and other communications required or contemplated  to be given or made to the Agent shall directly be given or made to each Lender. Following the effectiveness of the  Agent’s resignation from its capacity as such, the provisions of this Article and Section 11.3, as well as any  exculpatory, reimbursement and indemnification provisions set forth in any other Loan Document, shall continue in  effect for the benefit of such retiring 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 Agent was acting as Agent and in respect of the matters  referred to in the proviso under clause (i) above.  10.10 [Reserved].  10.11 Withholding Tax. To the extent required by any applicable law, each Agent may withhold  from any payment to any Lender an amount equivalent to any applicable withholding tax, and in no event shall such  

 

  - 127 -  Agent be required to be responsible for or pay any additional amount with respect to any such withholding. If the  Internal Revenue Service or any other Governmental Authority asserts a claim that any Agent did not properly  withhold tax from amounts paid to or for the account of any Lender because the appropriate form was not delivered  or was not properly executed or because such Lender failed to notify such Agent of a change in circumstances which  rendered the exemption from or reduction of withholding tax ineffective or for any other reason, without limiting the  provisions of Subsection 4.11(a) or 4.12, such Lender shall indemnify such Agent fully for all amounts paid, directly  or indirectly, by such Agent as tax or otherwise, including any penalties or interest and together with any expenses  incurred and shall make payable in respect thereof within 30 days after demand therefor. A certificate as to the amount  of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest  error.  Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time  owing to such Lender under this Agreement or any other Loan Document against any amount due the Administrative  Agent under this Subsection 10.11. The agreements in this Subsection 10.11 shall survive the resignation and/or  replacement of the Administrative Agent, any assignment of rights by, or the replacement of, a Lender and the  repayment, satisfaction or discharge of all other Loan Document Obligations.  10.12 Other Representatives. None of the entities identified as joint bookrunners and joint lead  arrangers pursuant to the definition of Other Representative contained herein, shall have any duties or responsibilities  hereunder or under any other Loan Document in its capacity as such.  Without limiting the foregoing, no Other  Representative shall have nor be deemed to have a fiduciary relationship with any Lender. At any time that any Lender  serving as an Other Representative shall have transferred to any other Person (other than any of its affiliates) all of its  interests in the Loans and in the Commitments, such Lender shall be deemed to have concurrently resigned as such  Other Representative.  10.13 Administrative Agent May File Proofs of Claim.  In case of the pendency of any  Bankruptcy Proceeding or any other judicial proceeding relative to any Loan Party, the Administrative Agent  (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration  or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) is  hereby authorized by the Lenders, by intervention in such proceeding or otherwise:  (a) to file and prove a claim for the whole amount of the principal and interest owing and  unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents  as may be necessary or advisable in order to have the claims of the Lenders, and the Administrative Agent (including  any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, and the  Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the  Administrative Agent under Subsections 4.5 and 11.5) allowed in such judicial proceeding;  (b) to collect and receive any monies or other property payable or deliverable on any such  claims and to distribute the same;   and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial  proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, if the  Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the  Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the  Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under  Subsections 4.5 and 11.5.   10.14 Application of Proceeds. The Lenders, the Administrative Agent and the Collateral Agent  agree, as among such parties, as follows:  subject to the terms of the ABL/Term Loan Intercreditor Agreement, any  Junior Lien Intercreditor Agreement, any Other Intercreditor Agreement or any Intercreditor Agreement Supplement,  after the occurrence and during the continuance of an Event of Default, all amounts collected or received by the  Administrative Agent, the Collateral Agent or any Lender on account of amounts then due and outstanding under any  of the Loan Documents (the “Collection Amounts”) shall, except as otherwise expressly provided herein, be applied  as follows:  first, to pay all reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees and  other legal counsel fees to the extent provided herein) due and owing hereunder of the Administrative Agent and the  Collateral Agent in connection with enforcing the rights of the Agents and the Lenders under the Loan Documents  (including all expenses of sale or other realization of or in respect of the Collateral and any sums advanced to the  

 

  - 128 -  Collateral Agent or to preserve its security interest in the Collateral), second, to pay all reasonable out-of-pocket costs  and expenses (including reasonable attorneys’ fees and other legal counsel fees to the extent provided herein) due and  owing hereunder of each of the Lenders in connection with enforcing such Lender’s rights under the Loan Documents,  third, to pay interest on Loans then outstanding; fourth, to pay principal of Loans then outstanding and obligations  under Interest Rate Agreements, Currency Agreements, Commodities Agreements, Bank Products Agreements and  Management Guarantees permitted hereunder and secured by the Guarantee and Collateral Agreement, ratably among  the applicable Secured Parties in proportion to the respective amounts described in this clause “fourth” payable to  them, and fifth, to pay the surplus, if any, to whomever may be lawfully entitled to receive such surplus. To the extent  any amounts available for distribution pursuant to clause “third” or “fourth” above are insufficient to pay all  obligations described therein in full, such moneys shall be allocated pro rata among the applicable Secured Parties in  proportion to the respective amounts described in the applicable clause at such time. This Subsection 10.14 may be  amended (and the Lenders hereby irrevocably authorize the Administrative Agent to enter into any such amendment)  to the extent necessary to reflect differing amounts payable, and priorities of payments, to Lenders participating in  any new classes or tranches of loans added pursuant to Subsections 2.8, 2.10 and 2.11, as applicable.  Notwithstanding the foregoing, Excluded Obligations (as defined in the Guarantee and Collateral  Agreement) with respect to any Guarantor shall not be paid with amounts received from such Guarantor or its assets  and such Excluded Obligations shall be disregarded in any application of Collection Amounts pursuant to the  preceding paragraph.  10.15 Credit Bidding. The Secured Parties hereby irrevocably authorize the Administrative  Agent, at the direction of the Required Lenders, to credit bid all or any portion of the Loan Document Obligations  (including by accepting some or all of the Collateral in satisfaction of some or all of the Loan Document Obligations  pursuant to a deed in lieu of foreclosure or otherwise) and in such manner purchase (either directly or through one or  more acquisition vehicles) all or any portion of the Collateral (a) at any sale thereof conducted under the provisions  of the Bankruptcy Code, including under Sections 363, 1123 or 1129 of the Bankruptcy Code, or any similar laws in  any other jurisdictions to which a Loan Party is subject, or (b) at any other sale, foreclosure or acceptance of collateral  in lieu of debt conducted by (or with the consent or at the direction of) the Administrative Agent (whether by judicial  action or otherwise) in accordance with any applicable law. In connection with any such credit bid and purchase, the  Loan Document Obligations owed to the Secured Parties shall be entitled to be, and shall be, credit bid by the  Administrative Agent at the direction of the Required Lenders on a ratable basis (with Loan Document Obligations  with respect to contingent or unliquidated claims receiving contingent interests in the acquired assets on a ratable basis  that shall vest upon the liquidation of such claims in an amount proportional to the liquidated portion of the contingent  claim amount used in allocating the contingent interests) for the asset or assets so purchased (or for the equity interests  or debt instruments of the acquisition vehicle or vehicles that are issued in connection with such purchase). In  connection with any such bid, (i) the Administrative Agent shall be authorized to form one or more acquisition vehicles  and to assign any successful credit bid to such acquisition vehicle or vehicles, (ii) each of the Secured Parties’ ratable  interests in the Loan Document Obligations which were credit bid shall be deemed without any further action under  this Agreement to be assigned to such vehicle or vehicles for the purpose of closing such sale, (iii) the Administrative  Agent shall be authorized to adopt documents providing for the governance of the acquisition vehicle or vehicles  (provided that any actions by the Administrative Agent with respect to such acquisition vehicle or vehicles, including  any disposition of the assets or equity interests thereof, shall be governed, directly or indirectly, by, and the governing  documents shall provide for, control by the vote of the Required Lenders or their permitted assignees under the terms  of this Agreement or the governing documents of the applicable acquisition vehicle or vehicles, as the case may be,  irrespective of the termination of this Agreement and without giving effect to the limitations on actions by the Required  Lenders contained in Section 10.4 of this Agreement), (iv) the Administrative Agent on behalf of such acquisition  vehicle or vehicles shall be authorized to issue to each of the Secured Parties, ratably on account of the relevant Loan  Document Obligations which were credit bid, interests, whether as equity, partnership interests, limited partnership  interests or membership interests, in any such acquisition vehicle and/or debt instruments issued by such acquisition  vehicle, all without the need for any Secured Party or acquisition vehicle to take any further action, and (v) to the  extent that Loan Document Obligations that are assigned to an acquisition vehicle are not used to acquire Collateral  for any reason (as a result of another bid being higher or better, because the amount of Loan Document Obligations  assigned to the acquisition vehicle exceeds the amount of Loan Document Obligations credit bid by the acquisition  vehicle or otherwise), such Loan Document Obligations shall automatically be reassigned to the Secured Parties pro  rata with their original interest in such Loan Document Obligations and the equity interests and/or debt instruments  issued by any acquisition vehicle on account of such Loan Document Obligations shall automatically be cancelled,  

 

  - 129 -  without the need for any Secured Party or any acquisition vehicle to take any further action. Notwithstanding that the  ratable portion of the Loan Document Obligations of each Secured Party are deemed assigned to the acquisition vehicle  or vehicles as set forth in clause (ii) above, each Secured Party shall execute such documents and provide such  information regarding the Secured Party (and/or any designee of the Secured Party which will receive interests in or  debt instruments issued by such acquisition vehicle) as the Administrative Agent may reasonably request in connection  with the formation of any acquisition vehicle, the formulation or submission of any credit bid or the consummation of  the transactions contemplated by such credit bid.  10.16 Certain ERISA Matters  (a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party  hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases  being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for  the benefit of the Borrower or any other Loan Party, that at least one of the following is and will be true  (i) such Lender is not using “plan assets” (within the meaning of Section 3(42) of ERISA or  otherwise) of one or more Benefit Plans with respect to such Lender’s entrance into, participation in,  administration of and performance of the Loans, or this Agreement  (ii)  the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class  exemption for certain transactions determined by independent qualified professional asset managers), PTE  95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1  (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91- 38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a  class exemption for certain transactions determined by in-house asset managers), is applicable with respect  to such Lender’s entrance into, participation in, administration of and performance of the Loans, 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, and this Agreement, (C) the entrance into, participation in, administration of  and performance of the Loans, 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, and this Agreement, or  (iv)  such other representation, warranty and covenant as may be agreed in writing between the  Administrative Agent, in its sole discretion, and such Lender.  (b) In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true  with respect to a Lender or (2) a Lender has provided another representation, warranty and covenant in accordance  with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of  the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender  party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent  and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that the  Administrative Agent is not a fiduciary with respect to the assets of such Lender involved in such Lender’s entrance  into, participation in, administration of and performance of the Loans, and this Agreement (including in connection  with the reservation of exercise or any rights by the Administrative Agent under this Agreement, any Loan Document  or any documents related hereto or thereto).  SECTION 11    Miscellaneous  

 

  - 130 -  11.1 Amendments and Waivers. (a) Neither this Agreement nor any other Loan Document, nor  any terms hereof or thereof, may be amended, supplemented, modified or waived except in accordance with the  provisions of this Subsection 11.1. The Required Lenders may, or, with the written consent of the Required Lenders,  the Administrative Agent may, from time to time, (x) enter into with the respective Loan Parties hereto or thereto, as  the case may be, written amendments, supplements or modifications hereto and to the other Loan Documents for the  purpose of adding any provisions to this Agreement or to the other Loan Documents or changing, in any manner the  rights or obligations of the Lenders or the Loan Parties hereunder or thereunder or (y) waive at any Loan Party’s  request, on such terms and conditions as the Required Lenders or the Administrative Agent, as the case may be, may  specify in such instrument, any of the requirements of this Agreement or the other Loan Documents or any Default or  Event of Default and its consequences; provided, however, that amendments pursuant to Subsections 11.1 (d) and (f)  may be effected without the consent of the Required Lenders to the extent provided therein; provided further, that no  such waiver and no such amendment, supplement or modification shall:  (i) (A) reduce or forgive the amount or extend the scheduled date of maturity of any Loan or  of any scheduled installment thereof (including extending any Maturity Date), (B) reduce the stated rate of  any interest, commission or fee payable hereunder (other than as a result of any waiver of the applicability  of any post-default increase in interest rates), (C) extend the scheduled date of any payment of any Lenders’  Loans, or (D) change the currency in which any Loan is payable, in each case without the consent of each  Lender directly and adversely affected thereby (it being understood that amendments to, or waivers or  modifications of any conditions precedent, representations, warranties, covenants, Defaults or Events of  Default or of a mandatory repayment of the Loans of all Lenders shall not constitute an extension of the  scheduled date of maturity, any scheduled installment, or the scheduled date of payment of the Loans of any  Lender);  (ii) amend, modify or waive any provision of this Subsection 11.1(a) or reduce the percentage  specified in the definition of “Required Lenders,” or consent to the assignment or transfer by the Borrower  of any of its rights and obligations under this Agreement and the other Loan Documents (other than pursuant  to Subsection 8.7 or 11.6(a)), in each case without the written consent of all the Lenders;  (iii) release Guarantors accounting for all or substantially all of the value of the Guarantee of  the Loan Document Obligations pursuant to the Guarantee and Collateral Agreement, or, in the aggregate (in  a single transaction or a series of related transactions), all or substantially all of the Term Loan Priority  Collateral without the consent of all of the Lenders, except as expressly permitted hereby or by any Security  Document (as such documents are in effect on the date hereof or, if later, the date of execution and delivery  thereof in accordance with the terms hereof);  (iv) require any Lender to make Loans having an Interest Period of longer than six months or  shorter than one month without the consent of such Lender;  (v) amend, modify or waive any provision of Section 10 without the written consent of the  then Agents;  (vi) amend, modify or waive any provision of Subsection 10.1(a), 10.4 or 10.12 without the  written consent of any Other Representative directly and adversely affected thereby;  (vii) amend, waive or modify any term or provision of any Loan Document to permit the  issuance or Incurrence of Indebtedness (including any exchange of existing Indebtedness that results in  another class of Indebtedness) with respect to which (x) the Liens on the assets securing the Obligations  under any class would be subordinated to any other Indebtedness or (y) all or any portion of the Obligations  under any class would be subordinated in right of payment (any such other Indebtedness or obligations  referred to in clause (x) or (y) above, to which such Liens securing any of the Obligations or such Obligations,  as applicable, are subordinated, “Senior Indebtedness”), in each case, shall not be permitted without the  written consent of all the Lenders under such class directly and adversely affected thereby; provided,  however, that no such consent shall be required in the case of clause (x) or (y) above if each directly and  adversely affected Lender has been offered a bona fide opportunity to fund or otherwise provide its pro rata  share (based on the amount of Obligations that are adversely affected thereby held by each Lender and  

 

  - 131 -  calculated immediately prior to any applicable amendment or incurrence of Senior Indebtedness) of the  Senior Indebtedness on the same terms (other than bona fide backstop fees on customary market terms and  reimbursement of counsel fees and other expenses in connection with the negotiation of the terms of such  transaction; such fees and expenses, “Ancillary Fees”) as offered to all other providers (or their Affiliates) of  the Senior Indebtedness, which offer to each directly and adversely affected Lender (1) shall be a written  offer describing the material terms (other than Ancillary Fees) of the arrangements pursuant to which the  Senior Indebtedness is to be provided and (2) shall remain open to each adversely affected Lender for a period  of not less than five Business Days (or such lesser time as reasonably agreed by the applicable Lender with  respect to itself);  (viii) amend, waive or modify Section 4.8 or Section 11.7(a) in a manner that would alter the pro  rata sharing of payments required thereby without the written consent of each Lender directly and adversely  affected thereby; or  (ix) amend or modify any provision of Section 6.4 of the Guarantee and Collateral Agreement  in a manner that would alter the application of proceeds required thereby, without the consent of each Lender  directly affected thereby.  (b) Any waiver and any amendment, supplement or modification pursuant to this Subsection  11.1 shall apply to each of the Lenders and shall be binding upon the Loan Parties, the Lenders, the Agents and all  future holders of the Loans.  In the case of any waiver, each of the Loan Parties, the Lenders and the Agents shall be  restored to their former position and rights hereunder and under the other Loan Documents, and any Default or Event  of Default waived shall be deemed to be cured and not continuing; but no such waiver shall extend to any subsequent  or other Default or Event of Default, or impair any right consequent thereon.  (c) [Reserved].  (d) Notwithstanding any provision herein to the contrary, this Agreement and the other Loan  Documents may be amended (i) to cure any ambiguity, mistake, omission, defect, or inconsistency with the consent  of the Borrower and the Administrative Agent, (ii) in accordance with Subsection 2.8 to incorporate the terms of any  Incremental Commitments (including to add a new revolving facility or letter of credit facility under this Agreement  with respect to any Incremental Revolving Commitment or Incremental Letter of Credit Commitment or to add an  escrow arrangement) with the written consent of the Borrower and Lenders providing such Incremental Commitments,  (iii) in accordance with Subsection 2.10 to effectuate an Extension with the written consent of the Borrower and the  Extending Lenders, (iv) in accordance with Subsection 2.11 to incorporate the terms of any Specified Refinancing  Term Loan Facilities with the consent of the Borrower and the applicable Specified Refinancing Lenders, (v) in  accordance with Subsection 7.12, to change the financial reporting convention, (vi) with the consent of the Borrower  and the Administrative Agent (in each case such consent not to be unreasonably withheld or delayed), in the event any  mandatory prepayment or redemption provision in respect of the Net Cash Proceeds of Asset Dispositions or Recovery  Events or from Excess Cash Flow included or to be included in any Incremental Commitment Amendment or any  Indebtedness constituting Additional Obligations or that would constitute Additional Obligations would result in  Incremental Term Loans or Additional Obligations, as applicable, being prepaid or redeemed on a more than ratable  basis with the Term Loans in respect of the Net Cash Proceeds from any such Asset Disposition or Recovery Event  or Excess Cash Flow prepayment to the extent such Net Cash Proceeds or Excess Cash Flow are required to be applied  to repay Term Loans hereunder pursuant to Subsection 4.4(e), to provide for mandatory prepayments of the Initial  Term Loans such that, after giving effect thereto, the prepayments made in respect of such Incremental Term Loans  or Additional Obligations, as applicable, are not on more than a ratable basis, (vii) with the consent of the Borrower  and the Administrative Agent, to incorporate any mandatory prepayment or redemption terms, covenants or events of  default in respect of any Additional Obligations or Indebtedness subject to Required Debt Terms that are materially  more favorable to the lenders or investors providing such Indebtedness than those set forth in the Loan Documents  and (viii) to waive, amend or modify this Agreement or any other Loan Document in a manner that by its terms affects  the rights or duties under this Agreement or any other Loan Document of Lenders holding Loans or Commitments of  a particular Tranche (but not the Lenders holding Loans or Commitments of any other Tranche), by an agreement or  agreements in writing entered into by the Borrower and the requisite percentage in interest of the Lenders with respect  to such Tranche that would be required to consent thereto under this Subsection if such Lenders were the only Lenders  hereunder at the time. Without limiting the generality of the foregoing, any provision of this Agreement and the other  

 

  - 132 -  Loan Documents, including Subsection 4.4, 4.8 or 10.14 hereof, may be amended as set forth in the immediately  preceding sentence pursuant to any Incremental Commitment Amendment, any Extension Amendment or any  Specified Refinancing Amendment, as the case may be, to provide for non-pro rata borrowings and payments of any  amounts hereunder as between any Tranches, including the Term Loans, any Incremental Commitments or  Incremental Loans, any Extended Term Tranche and any Specified Refinancing Tranche, or to provide for the  inclusion, as appropriate, of the Lenders of any Extended Term Tranche, Specified Refinancing Tranche, Incremental  Commitments or Incremental Loans in any required vote or action of the Required Lenders or of the Lenders of each  Tranche hereunder. The Administrative Agent hereby agrees (if requested by the Borrower) to execute any amendment  referred to in this clause (d) or an acknowledgement thereof.  (e) Notwithstanding any provision herein to the contrary, this Agreement may be amended (or  deemed amended) or amended and restated with the written consent of the Required Lenders, the Administrative  Agent and the Borrower (x) to add one or more additional credit facilities to this Agreement and to permit the  extensions of credit from time to time outstanding thereunder and the accrued interest and fees in respect thereof to  share ratably in the benefits of this Agreement and the other Loan Documents with the existing Facilities and the  accrued interest and fees in respect thereof, (y) to include, as appropriate, the Lenders holding such credit facilities in  any required vote or action of the Required Lenders or of the Lenders of each Facility hereunder and (z) to provide  class protection for any additional credit facilities.  (f) Notwithstanding any provision herein to the contrary, any Security Document may be  amended (or amended and restated), restated, waived, supplemented or modified as contemplated by Subsection 11.17  with the written consent of the Agent party thereto and the Loan Party party thereto.  (g) If, in connection with any proposed change, waiver, discharge or termination of or to any  of the provisions of this Agreement and/or any other Loan Document as contemplated by Subsection 11.1(a), the  consent of each Lender or each affected Lender, as applicable, is required and the consent of the Required Lenders at  such time is obtained but the consent of one or more of such other Lenders whose consent is required is not obtained  (each such Lender, a “Non-Consenting Lender”) then the Borrower may, on notice to the Administrative Agent and  the Non-Consenting Lender, (A) replace such Non-Consenting Lender by causing such Lender to (and such Lender  shall be obligated to) assign pursuant to Subsection 11.6 (with the assignment fee and any other costs and expenses to  be paid by the Borrower in such instance) all of its rights and obligations under this Agreement to one or more  assignees; provided that neither the Administrative Agent nor any Lender shall have any obligation to the Borrower  to find a replacement Lender; provided, further, that the applicable assignee shall have agreed to the applicable change,  waiver, discharge or termination of this Agreement and/or the other Loan Documents; and provided, further, that all  obligations of the Borrower owing to the Non-Consenting Lender relating to the Loans, Commitments and  participations so assigned shall be paid in full by the assignee Lender (or, at its option, by the Borrower) to such Non- Consenting Lender concurrently with such Assignment and Acceptance or (B) so long as no Event of Default under  Subsection 9.1(a) or (f) then exists or will exist immediately after giving effect to the respective prepayment, prepay  the Loans and, if applicable, terminate the Commitments of such Non-Consenting Lender, in whole or in part, subject  to Subsection 4.12, without premium or penalty. In connection with any such replacement under this Subsection  11.1(g), if the Non-Consenting Lender does not execute and deliver to the Administrative Agent a duly completed  Assignment and Acceptance and/or any other documentation necessary to reflect such replacement by the later of (a)  the date on which the replacement Lender executes and delivers such Assignment and Acceptance and/or such other  documentation and (b) the date as of which all obligations of the Borrower owing to the Non-Consenting Lender  relating to the Loans, Commitments and participations so assigned shall be paid in full by the assignee Lender to such  Non-Consenting Lender, then such Non-Consenting Lender shall be deemed to have executed and delivered such  Assignment and Acceptance and/or such other documentation as of such date and the Borrower shall be entitled (but  not obligated) to execute and deliver such Assignment and Acceptance and/or such other documentation on behalf of  such Non-Consenting Lender, and the Administrative Agent shall record such assignment in the Register.  (h) Notwithstanding anything to the contrary herein, at any time and from time to time, upon  notice to the Administrative Agent (who shall promptly notify the applicable Lenders) specifying in reasonable detail  the proposed terms thereof, the Borrower may make one or more loan modification offers to all the Lenders of any  Facility that would, if and to the extent accepted by any such Lender, (a) change the Applicable Margin and/or fees  payable with respect to the Loans and/or Commitments under such Facility (in each case solely with respect to the  Loans and Commitments of accepting Lenders in respect of which an acceptance is delivered) and (b) treat the Loans  

 

  - 133 -  and/or Commitments so modified as a new “Facility” and a new “Tranche” for all purposes under this Agreement;  provided that (i) such loan modification offer is made to each Lender under the applicable Facility on the same terms  and subject to the same procedures as are applicable to all other Lenders under such Facility (which procedures in any  case shall be reasonably satisfactory to the Administrative Agent) and (ii) no loan modification shall affect the rights  or duties of, or any fees or other amounts payable to, the Administrative Agent, without its prior written consent. In  connection with any such loan modification, the Borrower and each accepting Lender shall execute and deliver to the  Administrative Agent such agreements and other documentation as the Administrative Agent shall reasonably specify  to evidence the acceptance of the applicable loan modification offer and the terms and conditions thereof, and this  Agreement and the other Loan Documents shall be amended in writing (which may be executed and delivered by the  Borrower and the Administrative Agent and shall be effective only with respect to the applicable Loans and  Commitments of Lenders that shall have accepted the relevant loan modification offer (and only with respect to Loans  and Commitments as to which any such Lender has accepted the loan modification offer) (each such accepting Lender,  a “Modifying Lender”)) to the extent necessary or appropriate, in the judgment of the Administrative Agent, to reflect  the existence of, and to give effect to the terms and conditions of, the applicable loan modification (including the  addition of such modified Loans and/or Commitments as a “Facility” or a “Tranche” hereunder). No Lender shall have  any obligation whatsoever to accept any loan modification offer, and may reject any such offer in its sole discretion  (each such non-accepting Lender, a “Non-Modifying Lender”). The Borrower shall have the right, at its sole expense  and effort (A) to seek one or more Persons reasonably satisfactory to the Administrative Agent and the Borrower to  each become a substitute Lender and assume all or part of the Commitment of any Non-Modifying Lender and the  Borrower, the Administrative Agent and any such substitute Lender shall execute and deliver, and such Non- Modifying Lender shall thereupon be deemed to have executed and delivered, a duly completed Assignment and  Acceptance to effect such substitution or (B) upon notice to the Administrative Agent, and, at the Borrower’s option,  to prepay the Loans and/or terminate the Commitments of such Non-Modifying Lender, in whole or in part, without  premium or penalty (except as provided in Subsection 4.5(b)).  11.2 Notices. (a) All notices, requests, and demands to or upon the respective parties hereto to  be effective shall be in writing (including facsimile or electronic mail), and, unless otherwise expressly provided  herein, shall be deemed to have been duly given or made when delivered by hand, or three days after being deposited  in the mail, postage prepaid, or, in the case of facsimile notice or electronic mail, 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), or, in the case of delivery by a nationally recognized overnight courier, when received, addressed  as follows in the case of the Borrower, the Administrative Agent and the Collateral Agent, and as set forth in Schedule  A in the case of the other parties hereto, or to such other address as may be hereafter notified by the respective parties  hereto and any future holders of the Loans:  The Borrower: Atkore International, Inc.  16100 S. Lathorp Avenue  Harvey, IL  60426  Attention:  General Counsel  Email:  legal@atkore.com  With copies (which shall not constitute  notice) to:    Mayer Brown LLP  1221 Avenue of the Americas  New York, NY 10020-1001  Attention:  Mae R. Rogers  Facsimile:  (212) 849 5737  Telephone:  (212) 506 2694  Email:  mrogers@mayerbrown.com  The Administrative Agent/the Collateral  Agent:  JPMorgan Chase Bank, N.A.  Mail Code IL1-0010, L2 Floor   JPM Loan & Agency Services   10 S. Dearborn Street   Chicago, IL 60603  Attention: Naveen Pattasseril  Facsimile: (302) 634 3301  

 

  - 134 -  Telephone: (302) 6345 634  E-mail: naveen.pattasseril@chase.com    provided that any notice, request or demand to or upon the Administrative Agent or the Lenders pursuant to Subsection  4.2, 4.4 or 4.8 shall not be effective until received.  (b) Without in any way limiting the obligation of any Loan Party and its Subsidiaries to  confirm in writing any telephonic notice permitted to be given hereunder, the Administrative Agent may prior to  receipt of written confirmation act without liability upon the basis of such telephonic notice, believed by the  Administrative Agent in good faith to be from a Responsible Officer of a Loan Party.  (c) Loan Documents may be transmitted and/or signed by facsimile or other electronic means  (i.e., a “pdf” or “tiff”). The effectiveness of any such documents and signatures shall, subject to applicable law, have  the same force and effect as manually signed originals and shall be binding on each Loan Party, each Agent and each  Lender. The Administrative Agent may also require that any such documents and signatures be confirmed by a  manually signed original thereof; provided that the failure to request or deliver the same shall not limit the  effectiveness of any facsimile or other electronic document or signature.  (d) Notices and other communications to the Lenders hereunder may be delivered or furnished  by electronic communication (including electronic mail and Internet or intranet websites). Notices or communications  posted to an Internet or intranet website shall be deemed received upon the posting thereof. Each of the Lenders and  the Borrower hereby approves distribution of the communications through the Platform and understands and assumes  the risks of such distribution.  (e) THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” NEITHER THE  ADMINISTRATIVE AGENT, THE OTHER REPRESENTATIVES, NOR ANY OF THEIR RELATED PARTIES  WARRANT THE ACCURACY OR COMPLETENESS OF MATERIALS AND/OR INFORMATION PROVIDED  BY OR ON BEHALF OF THE BORROWER HEREUNDER (THE “BORROWER MATERIALS”) OR THE  ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR  OMISSIONS FROM THE BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED  OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A  PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM  VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE ADMINISTRATIVE AGENT, OTHER  REPRESENTATIVES, NOR ANY OF THEIR RELATED PARTIES IN CONNECTION WITH THE BORROWER  MATERIALS OR THE PLATFORM.  IN NO EVENT SHALL THE ADMINISTRATIVE AGENT, OTHER  REPRESENTATIVES, NOR ANY OF THEIR RELATED PARTIES HAVE ANY LIABILITY TO ANY LOAN  PARTY, ANY LENDER, OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND,  INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES  OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF ANY LOAN  PARTY’S OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE  INTERNET OR THE APPROVED ELECTRONIC PLATFORM, EXCEPT TO THE EXTENT OF DIRECT  DAMAGES THAT ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY A FINAL AND  NONAPPEALABLE JUDGMENT TO HAVE RESULTED FROM THE GROSS NEGLIGENCE, BAD FAITH OR  WILLFUL MISCONDUCT OF THE ADMINISTRATIVE AGENT, SUCH OTHER REPRESENTATIVES, OR  SUCH RELATED PARTY, AS APPLICABLE.  (f) Each Lender agrees that notice to it (as provided in the next sentence) specifying that  communications have been posted to the Platform shall constitute effective delivery of the communications to such  Lender for purposes of the Loan Documents. Each Lender agrees to notify the Administrative Agent in writing (which  could be in the form of electronic communication) from time to time of such Lender’s change its address, email,  facsimile or telephone number for notices and other communications hereunder.  (g) 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.  

 

  - 135 -  11.3 No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on  the part of any Agent, any Lender or any Loan Party, any right, remedy, power or privilege hereunder or under the  other Loan Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy,  power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy,  power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of  any rights, remedies, powers and privileges provided by law.  11.4 Survival of Representations and Warranties. All representations and warranties made  hereunder and in the other Loan Documents (or in any amendment, modification or supplement hereto or thereto) and  in any certificate delivered pursuant hereto or such other Loan Documents shall survive the execution and delivery of  this Agreement and the making of the Loans hereunder.  11.5 Payment of Expenses and Taxes. The Borrower agrees (a) to pay or reimburse the Agents  and the Other Representatives for (1) all their reasonable and documented out-of-pocket costs and expenses incurred  in connection with (i) the syndication of the Facilities and the development, preparation, execution and delivery of,  and any amendment, supplement or modification to, this Agreement and the other Loan Documents and any other  documents prepared in connection herewith or therewith, (ii) the consummation and administration of the  transactions (including the syndication of the Initial Term Loan Commitments) contemplated hereby and thereby and  (iii) efforts to monitor the Loans and verify, protect, evaluate, assess, appraise, collect, sell, liquidate or otherwise  dispose of any of the Collateral in accordance with the terms of the Loan Documents, and (2) the reasonable and  documented fees and disbursements of Simpson Thacher & Bartlett LLP and Osler, Hoskin & Harcourt LLP solely in  their capacity as counsel to the Administrative Agent, and such other special or local counsel, consultants, advisors,  appraisers and auditors whose retention (other than during the continuance of an Event of Default) is approved by the  Borrower, (b) to pay or reimburse each Lender, each Lead Arranger and the Agents for all their reasonable and  documented out-of-pocket costs and expenses incurred in connection with the enforcement of any rights under this  Agreement, the other Loan Documents and any other documents prepared in connection herewith or therewith,  including the fees and disbursements of counsel to the Agents (limited to one firm of counsel for the Agents and, if  necessary, one firm of local counsel in each appropriate jurisdiction, in each case for the Agents and in the case of a  conflict of interest, one additional counsel to the affected Lenders, taken as a whole ), (c) to pay, indemnify, or  reimburse each Lender, each Lead Arranger and the Agents for, and hold each Lender, each Lead Arranger and the  Agents harmless from, any and all recording and filing fees and any and all liabilities with respect to, or resulting from  any delay in paying, any stamp, documentary, excise and other similar taxes, if any, which may be payable or  determined to be payable in connection with the execution, delivery or enforcement of, or consummation or  administration of any of the transactions contemplated by, or any amendment, supplement or modification of, or any  waiver or consent under or in respect of, this Agreement, the other Loan Documents and any such other documents,  and (d) to pay, indemnify or reimburse each Lender, each Lead Arranger, each Agent (and any sub-agent thereof) and  each Related Party of any of the foregoing Persons (each, an “Indemnitee”) for, and hold each Indemnitee harmless  from and against, any and all other liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,  expenses or disbursements of any kind or nature whatsoever (in the case of fees and disbursements of counsel, limited  to one firm of counsel for all Indemnitees and, if necessary, one firm of local counsel in each appropriate jurisdiction,  in each case for all Indemnitees (and, in the case of an actual or perceived conflict of interest where the Indemnitee  affected by such conflict informs the Borrower of such conflict and thereafter, after receipt of the Borrower’s consent  (which shall not be unreasonably withheld), retains its own counsel, of another firm of counsel for such affected  Indemnitee)) arising out of or relating to any actual or prospective claim, litigation, investigation or proceeding,  whether based on contract, tort or any other theory, brought by a third party or by the Borrower or any other Loan  Party and regardless of whether any Indemnitee is a party thereto, with respect to the execution, delivery, enforcement,  performance and administration of this Agreement, the other Loan Documents and any such other documents,  including any of the foregoing relating to the use of proceeds of the Loans, or the violation of, noncompliance with or  liability under, any Environmental Law applicable to the operations of the Borrower or any of its Restricted  Subsidiaries or any of the property of the Borrower or any of its Restricted Subsidiaries (all the foregoing in this clause  (d), collectively, the “Indemnified Liabilities”); provided that the Borrower shall not have any obligation hereunder  to any Lead Arranger, any Other Representative, any Agent (or any sub-agent thereof) or any Lender (or any Related  Party of any such Lead Arranger, Other Representative, Agent (or any sub-agent thereof) or Lender) with respect to  Indemnified Liabilities arising from (i) the gross negligence, bad faith or willful misconduct of such Lead Arranger,  Other Representative, Agent (or any sub-agent thereof) or Lender (or any Related Party of such Lead Arranger, Other  Representative, Agent (or any sub-agent thereof) or Lender), as the case may be, as determined by a court of competent  

 

  - 136 -  jurisdiction in a final and non-appealable decision, (ii) a material breach of the Loan Documents by such Lead  Arranger, Other Representative, Agent (or any sub-agent thereof) or Lender (or any Related Party of such Lead  Arranger, Other Representative, Agent (or any sub-agent thereof) or Lender), as the case may be, as determined by a  court of competent jurisdiction in a final and non-appealable decision or (iii) claims against such Indemnitee or any  Related Party brought by any other Indemnitee that do not involve claims against any Lead Arranger or Agent in its  capacity as such. Neither the Borrower nor any Indemnitee shall be liable for any indirect, special, punitive or  consequential damages hereunder; provided that nothing contained in this sentence shall limit the Borrower’s  indemnity or reimbursement obligations under this Subsection 11.5 to the extent such indirect, special, punitive or  consequential damages are included in any third party claim in connection with which such Indemnitee is entitled to  indemnification hereunder. All amounts due under this Subsection 11.5 shall be payable not later than 30 days after  written demand therefor. Statements reflecting amounts payable by the Loan Parties pursuant to this Subsection 11.5  shall be submitted to the address of the Borrower set forth in Subsection 11.2, or to such other Person or address as  may be hereafter designated by the Borrower in a notice to the Administrative Agent. Notwithstanding the foregoing,  except as provided in Subsections 11.5(b) and (c) above, the Borrower shall have no obligation under this Subsection  11.5 to any Indemnitee with respect to any tax, levy, impost, duty, charge, fee, deduction or withholding imposed,  levied, collected, withheld or assessed by any Governmental Authority.  The agreements in this Subsection 11.5 shall  survive repayment of the Loans and all other amounts payable hereunder.  To the extent permitted by applicable law (i) the Borrower shall not assert, and the Borrower hereby waives,  any claim against the Agent, any Other Representative, and any Lender, and any Related Party of any of the foregoing  Persons (each such Person being called a “Lender-Related Person”) for any Liabilities arising from the use by others  of information or other materials (including any personal data) obtained through telecommunications, electronic or  other information transmission systems (including the Internet), except to the extent such Liabilities are found by a  final and nonappealable judgment of a court of competent jurisdiction to have resulted from (x) the bad faith, gross  negligence or willful misconduct of such Person and (ii) no party hereto shall assert, and each such party hereby  waives, any Liabilities against any other party hereto, on any theory of liability, for special, indirect, consequential or  punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this  Agreement, any other Loan Document, or any agreement or instrument contemplated hereby or thereby, the  Transactions, any Loan or the use of the proceeds thereof; provided that, nothing in this paragraph shall relieve the  Borrower of any obligation it may have to indemnify an Indemnitee, as provided in the foregoing paragraph, against  any special, indirect, consequential or punitive damages asserted against such Indemnitee by a third party.  All amounts due under this Section 11.5 shall be payable not later than 30 days after receipt of written demand  therefor together with reasonably detailed backup documentation.  The agreements in this Section 11.5 shall survive  the termination of this Agreement and the repayment of the Loans and all other amounts payable hereunder.  11.6 Successors and Assigns; Participations and Assignments.  (a) The provisions of this  Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and  assigns permitted hereby, except that (i) other than in accordance with Subsection 8.7, the Borrower shall not assign  or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and  any attempted assignment or transfer by the Borrower without such consent shall be null and void) and (ii) no Lender  may assign or otherwise transfer its rights or obligations hereunder except in accordance with Subsection 2.10(e),  Subsection 4.13(d), Subsection 11.1(g), Subsection 11.1(h) or this Subsection 11.6.  (b) (i) Subject to the conditions set forth in Subsection 11.6(b)(ii) below, any Lender other  than a Conduit Lender may, in the ordinary course of business and in accordance with applicable law, assign (other  than to a Disqualified Party or any natural person) to one or more assignees (each, an “Assignee”) all or a portion of  its rights and obligations under this Agreement (including its Commitments and/or Loans, pursuant to an Assignment  and Acceptance) with the prior written consent (such consent not to be unreasonably withheld or delayed) of:   (A) the Borrower; provided that no consent of the Borrower shall be required  for an assignment (x) of Term Loans to a Lender, an Affiliate of a Lender, or an Approved  Fund (as defined below) and, (y) if an Event of Default under Subsection 9.1(a) or (f) with  respect to the Borrower has occurred and is continuing, to any other Person; provided,  further, that the Borrower shall be deemed to have consented to any such assignment unless  

 

  - 137 -  the Borrower shall object thereto by written notice to the Administrative Agent within five  Business Days after having received notice thereof; and   (B) the Administrative Agent (such consent not to be unreasonably  withheld); provided that no consent of the Administrative Agent shall be required for an  assignment to a Lender or an Affiliate of a Lender or an Approved Fund.  (ii) Assignments shall be subject to the following additional conditions:  (A) except in the case of an assignment to a Lender, an Affiliate of a Lender  or an Approved Fund or an assignment of the entire remaining amount of the assigning  Lender’s Commitments or Loans under any Facility, the amount of the Commitments or  Loans of the assigning Lender subject to each such assignment (determined as of the date  the Assignment and Acceptance with respect to such assignment is delivered to the  Administrative Agent) shall be in an amount of an integral multiple of not less than  $500,000 unless the Borrower and the Administrative Agent otherwise consent; provided  that (1) no such consent of the Borrower shall be required if an Event of Default under  Subsection 9.1(a) or (f) with respect to the Borrower has occurred and is continuing and  (2) such amounts shall be aggregated in respect of each Lender and its Affiliates or  Approved Funds, if any;  (B) the parties to each assignment shall execute and deliver to the  Administrative Agent an Assignment and Acceptance, together with a processing and  recordation fee of $3,500 (unless waived by the Administrative Agent in its sole  discretion);  (C) the Assignee, if it shall not be a Lender, shall deliver to the  Administrative Agent an administrative questionnaire;  (D) [reserved]; and  (E) any Term Loans acquired by any Group Member shall be retired and  cancelled promptly upon acquisition thereof.  For the purposes of this Subsection 11.6, the term “Approved Fund” has the following  meaning:  “Approved Fund” means any Person (other than a natural person) that is engaged in  making, purchasing, holding or investing in bank loans and similar extensions of credit in the  ordinary course and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or  (c) an entity or an Affiliate of an entity that administers or manages a Lender. Notwithstanding the  foregoing, no Lender shall be permitted to make assignments under this Agreement to any  Disqualified Party, except to the extent the Borrower has consented to such assignment in writing  (in which case such Lender will not be considered a Disqualified Party solely for that particular  assignment).  (iii) Subject to acceptance and recording thereof pursuant to clause (b)(iv)  below, from and  after the effective date specified in each Assignment and Acceptance the Assignee thereunder shall be a party  hereto and, to the extent of the interest assigned by such Assignment and Acceptance, 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 Acceptance, be released from its obligations under this Agreement  (and, in the case of an Assignment and Acceptance 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 (and bound by any related obligations under) Subsections 4.10, 4.11, 4.12, 4.13 and 11.5,  and bound by its continuing obligations under Subsection 11.16. Any assignment or transfer by a Lender of  rights or obligations under this Agreement that does not comply with Subsection 2.10(e), Subsection 4.13(d),  Subsection 11.1(g), Subsection 11.1(h) or this Subsection 11.6 shall, to the extent it would comply with  

 

  - 138 -  Subsection 11.6(c), be treated for purposes of this Agreement as a sale by such Lender of a participation in  such rights and obligations in accordance with clause (c) of this Subsection 11.6.  (iv) The Borrower hereby designates the Administrative Agent, and the Administrative Agent  agrees, to serve as the Borrower’s agent, solely for purposes of this Subsection 11.6, to maintain at one of its  offices a copy of each Assignment and Acceptance delivered to it and a register for the recordation of the  names and addresses of the Lenders, and the Commitments of, and interest and principal amount of the Loans  owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the  Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the  Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a  Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register  shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to  time upon reasonable prior notice. In no event shall the Administrative Agent be obligated to ascertain,  monitor or inquire as to whether any prospective assignee is a Disqualified Party.  (v) Each Lender that sells a participation shall, acting for itself and, solely for  this purpose, as  an 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, Commitments or other  obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any  obligation to disclose all or any portion of the Participant Register to any Person (including the identity of  any Participant or any information relating to a Participant’s interest in any commitments, loans, letters of  credit or its other obligations under any Loan Document) except to the extent that such disclosure is necessary  (x) 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 or (y) for the Borrower to enforce its rights  hereunder. The entries in the Participant Register shall be conclusive absent manifest error, and a 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.  (vi) Upon its receipt of a duly completed Assignment and Acceptance executed by an assigning  Lender (unless such assignment is being made in accordance with Subsection 2.10(d), Subsection 4.13(d),  Subsection 11.1(g), Subsection 11.1(h) or Subsection 11.6(f), in which case the effectiveness of such  Assignment and Acceptance shall not require execution by the assigning Lender) and an Assignee, the  Assignee’s completed administrative questionnaire (unless the Assignee shall already be a Lender  hereunder), the processing and recordation fee referred to in this Subsection 11.6(b) and any written consent  to such assignment required by this Subsection 11.6(b), the Administrative Agent shall accept such  Assignment and Acceptance, record the information contained therein in the Register. No assignment shall  be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this  clause (vi).  (vii) On or prior to the effective date of any assignment pursuant to this Subsection 11.6(b), the  assigning Lender shall surrender to the Administrative Agent any outstanding Notes held by it evidencing  the Loans or Commitments, as applicable, which are being assigned. Any Notes surrendered by the assigning  Lender shall be returned by the Administrative Agent to the Borrower marked “cancelled.”  Notwithstanding the foregoing provisions of this Subsection 11.6(b) or any other provision of this  Agreement, if the Borrower shall have consented thereto in writing in its sole discretion, the Administrative  Agent shall have the right, but not the obligation, to effectuate assignments of Loans, Incremental  Commitments and Initial Term Loan Commitments via an electronic settlement system acceptable to  Administrative Agent and the Borrower as designated in writing from time to time to the Lenders by  Administrative Agent (the “Settlement Service”). At any time when the Administrative Agent elects, in its  sole discretion, to implement such Settlement Service, each such assignment shall be effected by the  assigning Lender and proposed Assignee pursuant to the procedures then in effect under the Settlement  Service, which procedures shall be subject to the prior written approval of the Borrower and shall be  consistent with the other provisions of this Subsection 11.6(b). Each assigning Lender and proposed Assignee  shall comply with the requirements of the Settlement Service in connection with effecting any assignment of  Loans and Commitments pursuant to the Settlement Service. Assignments and assumptions of Loans and  

 

  - 139 -  Commitments shall be effected by the provisions otherwise set forth herein until the Administrative Agent  notifies the Lenders of the Settlement Service as set forth herein. The Borrower may withdraw its consent to  the use of the Settlement Service at any time upon notice to the Administrative Agent, and thereafter  assignments and assumptions of the Loans and Commitments shall be effected by the provisions otherwise  set forth herein.  Furthermore, no Assignee, which as of the date of any assignment to it pursuant to this Subsection  11.6(b) would be entitled to receive any greater payment under Subsection 4.10, 4.11, 4.12 or 11.5 than the  assigning Lender would have been entitled to receive as of such date under such Subsections with respect to  the rights assigned shall notwithstanding anything to the contrary in this Agreement be entitled to receive  such greater payments unless the assignment was made after an Event of Default under Subsection 9.1(a) or  (f) has occurred and is continuing or the Borrower has expressly consented in writing to waive the benefit of  this provision at the time of such assignment.  (c) (i) Any Lender other than a Conduit Lender may, in the ordinary course of its  business and in accordance with applicable law, without the consent of the Borrower or the Administrative Agent, sell  participations (other than to any Disqualified Party or a natural person) to one or more banks or other entities (a  “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a  portion of its Initial Term Loan Commitments, Incremental Commitments and the Loans owing to it); provided that  (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely  responsible to the other parties hereto for the performance of such obligations, (C) such Lender shall remain the holder  of any such Loan for all purposes under this Agreement and the other Loan Documents and (D) the Borrower, the  Administrative Agent and the Lenders shall continue to deal solely and directly with such Lender in connection with  such Lender’s rights and obligations under this Agreement. Any agreement 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, supplement, modification or waiver of any provision of this Agreement; provided that such agreement  may provide that such Lender will not, without the consent of the Participant, agree to any amendment, supplement,  modification or waiver that (1) requires the consent of each Lender directly affected thereby pursuant to the second  proviso to the second sentence of Subsection 11.1(a) and (2) directly affects such Participant. Subject to Subsection  11.6(c)(ii), the Borrower agrees that each Participant shall be entitled to the benefits of (and shall have the related  obligations under) Subsections 4.10, 4.11, 4.12, 4.13 and 11.5 to the same extent as if it were a Lender and had acquired  its interest by assignment pursuant to Subsection 11.6(b). To the extent permitted by law, each Participant also shall  be entitled to the benefits of Subsection 11.7(b) as though it were a Lender; provided that such Participant shall be  subject to Subsection 11.7(a) as though it were a Lender.  (ii) No Loan Party shall be obligated to make any greater payment under Subsection 4.10, 4.11  or 11.5 than it would have been obligated to make in the absence of any participation, unless the sale of such  participation is made with the prior written consent of the Borrower and the Borrower expressly waives the  benefit of this provision at the time of such participation. Any Participant that is not incorporated under the  laws of the United States of America or a state thereof shall not be entitled to the benefits of Subsection 4.11  unless such Participant complies with Subsection 4.11(b) and provides the forms and certificates referenced  therein to the Lender that granted such participation.  (d) Any Lender, without the consent of the Borrower or the Administrative Agent, may at any  time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations  of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or central bank  of a member state of the European Union, and this Subsection 11.6 shall not apply to any such pledge or assignment  of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any  of its obligations hereunder or substitute (by foreclosure or otherwise) any such pledgee or Assignee for such Lender  as a party hereto.  (e) No assignment or participation made or purported to be made to any Assignee or  Participant shall be effective without the prior written consent of the Borrower if it would require the Borrower to  make any filing with any Governmental Authority or qualify any Loan or Note under the laws of any jurisdiction, and  the Borrower shall be entitled to request and receive such information and assurances as it may reasonably request  

 

  - 140 -  from any Lender or any Assignee or Participant to determine whether any such filing or qualification is required or  whether any assignment or participation is otherwise in accordance with applicable law.  (f) Notwithstanding the foregoing, any Conduit Lender may assign any or all of the Loans it  may have funded hereunder to its designating Lender without the consent of the Borrower or the Administrative Agent  and without regard to the limitations set forth in Subsection 11.6(b). The Borrower, each Lender and the  Administrative Agent hereby confirms that it will not institute against a Conduit Lender or join any other Person in  instituting against a Conduit Lender any domestic or foreign bankruptcy, reorganization, arrangement, insolvency or  liquidation proceeding under any state, federal or provincial bankruptcy or similar law, for one year and one day after  the payment in full of the latest maturing commercial paper note issued by such Conduit Lender; provided, however,  that each Lender designating any Conduit Lender hereby agrees to indemnify, save and hold harmless each other party  hereto for any loss, cost, damage or expense arising out of its inability to institute such a proceeding against such  Conduit Lender during such period of forbearance. Each such indemnifying Lender shall pay in full any claim received  from the Borrower pursuant to this Subsection 11.6(f) within 30 Business Days of receipt of a certificate from a  Responsible Officer of the Borrower specifying in reasonable detail the cause and amount of the loss, cost, damage or  expense in respect of which the claim is being asserted, which certificate shall be conclusive absent manifest error.  Without limiting the indemnification obligations of any indemnifying Lender pursuant to this Subsection 11.6(f), in  the event that the indemnifying Lender fails timely to compensate the Borrower for such claim, any Loans held by the  relevant Conduit Lender shall, if requested by the Borrower, be assigned promptly to the Lender that administers the  Conduit Lender and the designation of such Conduit Lender shall be void.  (g) If the Borrower wishes to replace the Loans under any Facility with ones having different  terms, it shall have the option, with the consent of the Administrative Agent and subject to at least three Business  Days’ (or such shorter period as agreed to by the Administrative Agent in its reasonable discretion) advance notice to  the Lenders under such Facility, instead of prepaying the Loans to be replaced, to (i) require the Lenders under such  Facility to assign such Loans to the Administrative Agent or its designees and (ii) amend the terms thereof in  accordance with Subsection 11.1. Pursuant to any such assignment, all Loans to be replaced shall be purchased at par  (allocated among the Lenders under such Facility in the same manner as would be required if such Loans were being  optionally prepaid by the Borrower), accompanied by payment of any accrued interest and fees thereon and any  amounts owing pursuant to Subsection 4.12. By receiving such purchase price, the Lenders under such Facility shall  automatically be deemed to have assigned the Loans under such Facility pursuant to the terms of the form of the  Assignment and Acceptance, the Administrative Agent shall record such assignment in the Register and accordingly  no other action by such Lenders shall be required in connection therewith. The provisions of this clause (g) are intended  to facilitate the maintenance of the perfection and priority of existing security interests in the Collateral during any  such replacement.  (h) Notwithstanding anything to the contrary contained herein, (x) any Lender may, at any  time, assign all or a portion of its rights and obligations under this Agreement in respect of its Loans or Commitments  to any Group Member and (y) any Group Member may, from time to time, purchase or prepay Loans, in each case,  on a non-pro rata basis through (1) Dutch auction procedures open to all applicable Lenders on a pro rata basis in  accordance with customary procedures to be agreed between the Borrower and the Administrative Agent (or other  applicable agent managing such auction); provided that any such Dutch auction by any Group Member shall be made  in accordance with Subsection 4.4(l) or (2) open market purchases; provided further that: any such Term Loans  acquired by a Group Member shall be retired or cancelled promptly upon the acquisition thereof.  (i) (i)  If any assignment or participation is made to any Disqualified Party in violation  of this Section 11.6, the Borrower may, at its sole expense and effort, upon notice to the applicable Disqualified Party  and the Administrative Agent, (A) purchase or prepay such Loans by paying the lowest of (x) the principal amount  thereof and (y) the amount that such Disqualified Party paid to acquire such Loans, in each case plus accrued interest,  accrued fees and all other amounts (other than principal amounts) payable to it hereunder and/or (B) require such  Disqualified Party to assign, without recourse (in accordance with and subject to the restrictions contained in this  Section 11.6), all of its interest, rights and obligations under this Agreement to one or more Eligible Assignees at the  lowest of (x) the principal amount thereof and (y) the amount that such Disqualified Party paid to acquire such  interests, rights and obligations, in each case plus accrued interest, accrued fees and all other amounts (other than  principal amounts) payable to it hereunder    

 

  - 141 -  (ii) Notwithstanding anything to the contrary contained in this Agreement, Disqualified Parties  (A) will not (x) have the right to receive information, reports or other materials provided to Lenders by any  Group Member, the Administrative Agent or any other Lender, (y) attend or participate in meetings attended  by the Lenders and the Administrative Agent, or (z) access any electronic site established for the Lenders or  confidential communications from counsel to or financial advisors of the Administrative Agent or the  Lenders and (B) (x) for purposes of any consent to any amendment, waiver or modification of, or any action  under, and for the purpose of any direction to the Administrative Agent or any Lender to undertake any action  (or refrain from taking any action) under this Agreement or any other Loan Document, each Disqualified  Party will be deemed to have consented in the same proportion as the Lenders that are not Disqualified Party  consented to such matter, and (y) for purposes of voting on any Bankruptcy Plan, each Disqualified Party  party hereto hereby agrees (1) not to vote on such Bankruptcy Plan, (2) if such Disqualified Party does vote  on such Bankruptcy Plan notwithstanding the restriction in the foregoing clause (1), such vote will be deemed  not to be in good faith and shall be “designated” pursuant to Section 1126(e) of the Bankruptcy Code (or any  similar provision in any other Debtor Relief Laws), and such vote shall not be counted in determining whether  the applicable class has accepted or rejected such Bankruptcy Plan in accordance with Section 1126(c) of the  Bankruptcy Code (or any similar provision in any other Debtor Relief Laws) and (3) not to contest any request  by any party for a determination by the United States Bankruptcy Court (or other applicable court of  competent jurisdiction) effectuating the foregoing clause (2).  (j) Notwithstanding the foregoing provisions of this Subsection 11.6, nothing in this  Subsection 11.6 is intended to or should be construed to limit the Borrower’s right to prepay the Loans as provided  hereunder, including under Subsection 4.4.  11.7 Adjustments; Set-off; Calculations; Computations.  (a) If any Lender (a “Benefited  Lender”) shall at any time receive any payment of all or part of its Loans, or interest thereon, or receive any collateral  in respect thereof (whether voluntarily or involuntarily, by set-off, pursuant to events or proceedings of the nature  referred to in Subsection 9.1(f), or otherwise (except pursuant to Subsection 2.8, 2.9, 2.10, 2.11, 4.4, 4.5(b), 4.9, 4.10,  4.11, 4.12, 4.13(d), 11.1(g), 11.1(h) or 11.6)), in a greater proportion than any such payment to or collateral received  by any other Lender, if any, in respect of such other Lender’s Loans owing to it, or interest thereon, such Benefited  Lender shall purchase for cash from the other Lenders an interest (by participation, assignment or otherwise) in such  portion of each such other Lender’s Loans owing to it, or shall provide such other Lenders with the benefits of any  such collateral, or the proceeds thereof, as shall be necessary to cause such Benefited Lender to share the excess  payment or benefits of such collateral or proceeds ratably with each of the Lenders; provided, however, that if all or  any portion of such excess payment or benefits is thereafter recovered from such Benefited Lender, such purchase  shall be rescinded, and the purchase price and benefits returned, to the extent of such recovery, but without interest.  (b) In addition to any rights and remedies of the Lenders provided by law, each Lender shall  have the right, without prior notice to the Borrower, any such notice being expressly waived by the Borrower to the  extent permitted by applicable law, upon the occurrence of an Event of Default under Subsection 9.1(a) to set-off and  appropriate and apply against any amount then due and payable under Subsection 9.1(a) by the Borrower any and all  deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness  or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at  any time held or owing by such Lender or any branch or agency thereof to or for the credit or the account of the  Borrower. Each Lender agrees promptly to notify the Borrower and the Administrative Agent after any such set-off  and application made by such Lender; provided that the failure to give such notice shall not affect the validity of such  set-off and application.  11.8 Judgment.  (a) If, for the purpose of obtaining or enforcing judgment against any Loan  Party in any court in any jurisdiction, it becomes necessary to convert into any other currency (such other currency  being hereinafter in this Subsection 11.8 referred to as the “Judgment Currency”) an amount due under any Loan  Document in any currency (the “Obligation Currency”) other than the Judgment Currency, the conversion shall be  made at the rate of exchange prevailing on the Business Day immediately preceding the date of actual payment of the  amount due, in the case of any proceeding in the courts of any other jurisdiction that will give effect to such conversion  being made on such date, or the date on which the judgment is given, in the case of any proceeding in the courts of  any other jurisdiction (the applicable date as of which such conversion is made pursuant to this Subsection 11.8 being  hereinafter in this Subsection 11.8 referred to as the “Judgment Conversion Date”).  

 

  - 142 -  (b) If, in the case of any proceeding in the court of any jurisdiction referred to in  Subsection  11.8(a), there is a change in the rate of exchange prevailing between the Judgment Conversion Date and the date of  actual receipt for value of the amount due, the applicable Loan Party shall pay such additional amount (if any, but in  any event not a lesser amount) as may be necessary to ensure that the amount actually received in the Judgment  Currency, when converted at the rate of exchange prevailing on the date of payment, will produce the amount of the  Obligation Currency which could have been purchased with the amount of the Judgment Currency stipulated in the  judgment or judicial order at the rate of exchange prevailing on the Judgment Conversion Date. Any amount due from  any Loan Party under this Subsection 11.8(b) shall be due as a separate debt and shall not be affected by judgment  being obtained for any other amounts due under or in respect of any of the Loan Documents.  (c) The term “rate of exchange” in this Subsection 11.8 means the rate of exchange at which  the Administrative Agent, on the relevant date at or about 12:00 noon, New York City time, would be prepared to sell,  in accordance with its normal course foreign currency exchange practices, the Obligation Currency against the  Judgment Currency.  11.9 Counterparts; Integration; Effectiveness; Electronic Execution.  (a) This Agreement may  be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute  an original, but all of which when taken together shall constitute a single contract.  This Agreement, the other Loan  Documents and any separate letter agreements with respect to fees payable to the Administrative Agent 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 6.1, this  Agreement shall become effective when it shall have been executed by the Administrative Agent and when the  Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each  of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their  respective successors and assigns.  (b) Delivery of an executed counterpart of a signature page of (x) this Agreement, (y) any other  Loan Document and/or (z) any document, amendment, approval, consent, information, notice (including, for the  avoidance of doubt, any notice delivered pursuant to Section 11.2), certificate, request, statement, disclosure or  authorization related to this Agreement, any other Loan Document and/or the transactions contemplated hereby and/or  thereby (each an “Ancillary Document”) that is an Electronic Signature transmitted by telecopy, emailed pdf. or any  other electronic means that reproduces an image of an actual executed signature page shall be effective as delivery of  a manually executed counterpart of this Agreement, such other Loan Document or such Ancillary Document, as  applicable.  The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to this  Agreement, any other Loan Document and/or any Ancillary Document shall be deemed to include Electronic  Signatures, deliveries or the keeping of records in any electronic form (including deliveries by telecopy, emailed pdf.  or any other electronic means that reproduces an image of an actual executed signature page), each of which shall be  of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the  use of a paper-based recordkeeping system, as the case may be; provided that nothing herein shall require the  Administrative Agent to accept Electronic Signatures in any form or format without its prior written consent and  pursuant to procedures approved by it; provided, further, without limiting the foregoing, (i) to the extent the  Administrative Agent has agreed to accept any Electronic Signature, the Administrative Agent and each of the Lenders  shall be entitled to rely on such Electronic Signature purportedly given by or on behalf of the Borrower or any other  Loan Party without further verification thereof and without any obligation to review the appearance or form of any  such Electronic signature and (ii) upon the request of the Administrative Agent or any Lender, any Electronic  Signature  shall be promptly followed by a manually executed counterpart.  Without limiting the generality of the  foregoing, the Borrower and each Loan Party 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, the Borrower and the Loan Parties, Electronic Signatures transmitted by telecopy,  emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page and/or any  electronic images of this Agreement,  any other Loan Document and/or any Ancillary Document shall have the same  legal effect, validity and enforceability as any paper original, (B) the Administrative Agent and each of the Lenders  may, at its option, create one or more copies of this Agreement, any other Loan Document and/or any Ancillary  Document in the form of an imaged electronic record in any format, which shall be deemed created in the ordinary  course of such Person’s business, and destroy the original paper document (and all such electronic records shall be  considered an original for all purposes and shall have the same legal effect, validity and enforceability as a paper  

 

  - 143 -  record), (C) waives any argument, defense or right to contest the legal effect, validity or enforceability of this  Agreement, any other Loan Document and/or any Ancillary Document based solely on the lack of paper original  copies of this Agreement, such other Loan Document and/or such Ancillary Document, respectively, including with  respect to any sig-nature pages thereto and (D) waives any claim against any Lender-Related Person for any Liabilities  arising solely from the Administrative Agent’s and/or any Lender’s reliance on or use of Electronic Signatures and/or  transmissions by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed  signature page, including any Liabilities arising as a result of the failure of the Borrower and/or any Loan Party to use  any available security measures in connection with the execution, delivery or transmission of any Electronic Signature.  11.10 Severability. Any provision of this Agreement which is prohibited or unenforceable in any  jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without  invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not  invalidate or render unenforceable such provision in any other jurisdiction.  11.11 Integration. This Agreement and the other Loan Documents represent the entire agreement  of each of the Loan Parties party hereto, the Administrative Agent and the Lenders with respect to the subject matter  hereof, and there are no promises, undertakings, representations or warranties by any of the Loan Parties party hereto,  the Administrative Agent or any Lender relative to the subject matter hereof not expressly set forth or referred to  herein or in the other Loan Documents.  11.12 Governing Law. THIS AGREEMENT AND ANY NOTES AND THE RIGHTS AND  OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT AND ANY NOTES SHALL BE GOVERNED  BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW  YORK, WITHOUT GIVING EFFECT TO ITS PRINCIPLES OR RULES OF CONFLICT OF LAWS TO THE  EXTENT SUCH PRINCIPLES OR RULES ARE NOT MANDATORILY APPLICABLE BY STATUTE AND  WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.  11.13 Submission to Jurisdiction; Waivers. Each party hereto hereby irrevocably and  unconditionally:  (a) submits for itself and its property in any legal action or proceeding relating to this  Agreement and the other Loan Documents to which it is a party, or for recognition and enforcement of any judgment  in respect thereof, to the exclusive general jurisdiction of the United States District Court for the Southern District of  New York (or if such court lacks subject matter jurisdiction, Supreme Court of the State of New York for the County  of New York) and appellate courts therefrom; provided that nothing contained herein or in any other Loan Document  will prevent any Lender or the Administrative Agent from bringing any action to enforce any award or judgment or,  solely in the case of the Administrative Agent, exercise any right under the Security Documents or against any  Collateral or any other property of any Loan Party in any other forum in which jurisdiction can be established;  (b) consents that any such action or proceeding may be brought in such courts and waives any  objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that  such action or proceeding was brought in an inconvenient forum and agrees not to plead or claim the same;  (c) agrees that service of process in any such action or proceeding may be effected by mailing  a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to the  Borrower, the applicable Lender or the Administrative Agent, as the case may be, at the address specified in Subsection  11.2 or at such other address of which the Administrative Agent, any such Lender and the Borrower shall have been  notified pursuant thereto;  (d) agrees that nothing herein shall affect the right to effect service of process in any other  manner permitted by law or (subject to clause (a) above) shall limit the right to sue in any other jurisdiction; and  (e) waives, to the maximum extent not prohibited by law, any right it may have to claim or  recover in any legal action or proceeding referred to in this Subsection 11.13 any indirect, special, consequential or  punitive damages.  

 

  - 144 -  11.14 Acknowledgements. The Borrower hereby acknowledges that:  (a) it has been advised by counsel in the negotiation, execution and delivery of this Agreement  and the other Loan Documents;  (b) neither any Agent nor any Other Representative or Lender has any fiduciary, advisory or  agency relationship with or duty to the Loan Parties arising out of or in connection with this Agreement or any of the  other Loan Documents, and the relationship between the Administrative Agent and Lenders, on the one hand, and the  Loan Parties, on the other hand, in connection herewith or therewith is solely that of creditor and debtor; and  (c) no joint venture is created hereby or by the other Loan Documents or otherwise exists by  virtue of the transactions contemplated hereby and thereby among the Lenders or among the Borrower and the  Lenders;  (d) the Loan Parties are capable of evaluating and understanding, and the Loan Parties  understand and accept, the terms, risks and conditions of the transactions contemplated by this Agreement and the  other Loan Documents,  (e) the Loan Parties have been advised that the Agent, the Lenders and the Other  Representatives are engaged in a broad range of transactions that may involve interests that differ from the Loan  Parties’ interests and that the Agent, the Lenders and the Other Representatives have no obligation to disclose such  interests and transactions to the Loan Parties; and  (f) none of the Agent, the Lenders or the Other Representatives have any obligation to the  Loan Parties or their affiliates with respect to the transactions contemplated by this Agreement or the other Loan  Documents except those obligations expressly set forth herein or therein or in any other express writing executed and  delivered by such the Agent, the Lenders or the Other Representatives and the Loan Parties or any such affiliate.  11.15 Waiver of Jury Trial. EACH OF THE BORROWER, THE AGENTS AND THE  LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL  ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY NOTES OR ANY OTHER LOAN  DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.  11.16 Confidentiality.  (a) Each Agent, each Other Representative and each Lender agrees to keep  confidential any information (a) provided to it by or on behalf of Parent, Holdings or the Borrower or any of their  respective Subsidiaries pursuant to or in connection with the Loan Documents or (b) obtained by such Lender based  on a review of the books and records of Parent, Holdings or the Borrower or any of their respective Subsidiaries;  provided that nothing herein shall prevent any Lender from disclosing any such information (i) to any Agent, any  Other Representative or any other Lender, (ii) to any Transferee, or prospective Transferee or any creditor or any  actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and  its obligations which agrees to comply with the provisions of this Subsection 11.16 pursuant to a written instrument  (or electronically recorded agreement from any Person listed above in this clause (ii), in respect to any electronic  information (whether posted or otherwise distributed on any Platform)) for the benefit of the Borrower (it being  understood that each relevant Lender shall be solely responsible for obtaining such instrument (or such electronically  recorded agreement)), (iii) to its Affiliates and the employees, officers, partners, directors, agents, attorneys, legal  counsel, accountants and other professional advisors of it and its Affiliates; provided that such Lender shall inform  each such Person of the agreement under this Subsection 11.16 and take reasonable actions to cause compliance by  any such Person referred to in this clause (iii) with this agreement (including, where appropriate, to cause any such  Person to acknowledge its agreement to be bound by the agreement under this Subsection 11.16), (iv) upon the request  or demand of any Governmental Authority having jurisdiction over such Lender or its affiliates or to the extent  required in response to any order of any court or other Governmental Authority or as shall otherwise be required  pursuant to any Requirement of Law; provided that, other than with respect to any disclosure to any bank regulatory  authority, such Lender shall, unless prohibited by any Requirement of Law, notify the Borrower of any disclosure  pursuant to this clause (iv) as far in advance as is reasonably practicable under such circumstances, (v) which has been  publicly disclosed other than in a breach of this Agreement, (vi) in connection with the exercise of any remedy  hereunder, under any Loan Document or under any Interest Rate Agreement, (vii) in connection with periodic  

 

  - 145 -  regulatory examinations and reviews conducted by the National Association of Insurance Commissioners or any  Governmental Authority having jurisdiction over such Lender or its affiliates (to the extent applicable), (viii) in  connection with any litigation to which such Lender (or, with respect to any Interest Rate Agreement, any Affiliate of  any Lender party thereto) may be a party subject to the proviso in clause (iv) above, and (ix) if, prior to such  information having been so provided or obtained, such information was already in an Agent’s or a Lender’s possession  on a non-confidential basis without a duty of confidentiality to the Borrower being violated. Notwithstanding any  other provision of this Agreement, any other Loan Document or any Assignment and Acceptance, the provisions of  this Subsection 11.16 shall survive with respect to each Agent and Lender until the second anniversary of such Agent  or Lender ceasing to be an Agent or a Lender, respectively.  (b) Each Lender acknowledges that any such information referred to in Subsection 11.16(a),  and any information (including requests for waivers and amendments) furnished by the Borrower or the Administrative  Agent pursuant to or in connection with this Agreement and the other Loan Documents, may include material non- public information concerning the Borrower, the other Loan Parties and their respective Affiliates or their respective  securities. Each Lender represents and confirms that such Lender has developed compliance procedures regarding the  use of material non-public information; that such Lender will handle such material non-public information in  accordance with those procedures and applicable law, including United States federal and state securities laws; and  that such Lender has identified to the Administrative Agent a credit contact who may receive information that may  contain material non-public information in accordance with its compliance procedures and applicable law.  11.17 Incremental Indebtedness; Additional Indebtedness. In connection with the Incurrence by  any Loan Party or any Subsidiary thereof of any Incremental Indebtedness, Specified Refinancing Indebtedness or  Additional Indebtedness, each of the Administrative Agent and the Collateral Agent agree to execute and deliver the  ABL/Term Loan Intercreditor Agreement, any Junior Lien Intercreditor Agreement or any Other Intercreditor  Agreement or any Intercreditor Agreement Supplement and amendments, amendments and restatements, restatements  or waivers of or supplements to or other modifications to, any Security Document (including but not limited to any  Mortgages and UCC fixture filings), and to make or consent to any filings or take any other actions in connection  therewith, as may be reasonably deemed by the Borrower to be necessary or reasonably desirable for any Lien on the  assets of any Loan Party permitted to secure such Incremental Indebtedness, Specified Refinancing Indebtedness or  Additional Indebtedness to become a valid, perfected lien (with such priority as may be designated by the relevant  Loan Party or Subsidiary, to the extent such priority is permitted by the Loan Documents) pursuant to the Security  Document being so amended, amended and restated, restated, waived, supplemented or otherwise modified or  otherwise.  11.18 USA PATRIOT Act Notice. Each 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”), 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 to identify each  Loan Party in accordance with the Patriot Act or the PCMLTFA, as applicable, and the Borrower agrees to provide  such information from time to time to any Lender.   11.19 Reinstatement. This Agreement shall remain in full force and effect and continue to be  effective should any petition or other proceeding be filed by or against any Loan Party for liquidation or reorganization,  should any Loan Party become insolvent or make an assignment for the benefit of any creditor or creditors or should  an interim receiver, receiver, receiver and manager or trustee be appointed for all or any significant part of any Loan  Party’s assets, and shall continue to be effective or to be reinstated, as the case may be, if at any time payment and  performance of the obligations of the Borrower under the Loan Documents, or any part thereof, is, pursuant to  applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the  obligations, whether as a fraudulent preference, reviewable transaction or otherwise, all as though such payment or  performance had not been made. In the event that any payment, or any part thereof, is rescinded, reduced, restored or  returned, the obligations of the Borrower hereunder shall be reinstated and deemed reduced only by such amount paid  and not so rescinded, reduced, restored or returned.  11.20 Acknowledgement and Consent to Bail-In of Affected Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or  understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial  

 

  - 146 -  Institution arising under any Loan Document 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 entity, or a bridge institution that may be issued  to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by  it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document;  or  (iii) the variation of the terms of such liability in connection with the exercise of the Write- Down and Conversion Powers of the applicable Resolution Authority.  Notwithstanding anything to the contrary herein, nothing contained in this Subsection 11.20 shall  modify or otherwise alter the rights or obligations under this Agreement or any other Loan Document with respect to  any liability that is not a liability of any Affected Financial Institution arising under any Loan Document.  11.21 Acknowledgement Regarding Any Supported QFCs. To the extent that the Loan  Documents provide support, through a guarantee or otherwise, for Swap Agreements or any other agreement or  instrument that is a QFC (such support “QFC Credit Support” and each such QFC a “Supported QFC”), the parties  acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation  under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection  Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such  Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan  Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or  of the United States or any other state of the United States):  In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to  a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such  QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support,  and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will  be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the  Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed  by the laws of the United States or a state of the United States.  In the event a Covered Party or a BHC Act Affiliate  of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under  the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be  exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could  be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed  by the laws of the United States or a state of the United States.  Without limitation of the foregoing, it is understood  and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights  of any Covered Party with respect to a Supported QFC or any QFC Credit Support.  For purposes of this Section 11.21, “Defaulting Lender” means any Lender that (a) has failed, within two  Business Days of the date required to be funded or paid, to (i) fund any portion of its Loans or (ii) pay over to any  Loan Party any other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such Lender  notifies the Administrative Agent in writing that such failure is the result of such Lender’s good faith determination  that a condition precedent to funding (specifically identified and including the particular default, if any) has not been  satisfied, (b) has notified the Borrower or any Loan Party in writing, or has made a public statement to the effect, that  

 

  - 147 -  it does not intend or expect to comply with any of its funding obligations under this Agreement (unless such writing  or public statement indicates that such position is based on such Lender’s good faith determination that a condition  precedent (specifically identified and including the particular default, if any) to funding a loan under this Agreement  cannot be satisfied) or generally under other agreements in which it commits to extend credit, (c) has failed, within  three Business Days after request by a Loan Party, acting in good faith, to provide a certification in writing from an  authorized officer of such Lender that it will comply with its obligations (and is financially able to meet such  obligations as of the date of certification) to fund prospective Loans under this Agreement, provided that such Lender  shall cease to be a Defaulting Lender pursuant to this clause (c) upon such Loan Party’s receipt of such certification  in form and substance satisfactory to it and the Administrative Agent, or (d) has become the subject of (A) a  Bankruptcy Event or (B) a Bail-In Action.  [Remainder of this page intentionally left blank.  Signature pages follow.] 

 

  [Signature Page to Term Loan Credit Agreement]  EXECUTED as of the date first written above.  ATKORE INTERNATIONAL, INC.      By: /s/ John Deitzer   Name: John Deitzer  Title: Vice President, Treasurer and                Assistant Corporate Secretary      ATKORE INC.      By: /s/ John Deitzer   Name: John Deitzer  Title: Vice President, Treasury & Investor                Relations     

 

  [Signature Page to Term Loan Credit Agreement]  JPMORGAN CHASE BANK, N.A.      By: /s/ Stephanie Lis   Name: Stephanie Lis  Title: Authorized Officerex102creditagreement

Exhibit 10.2  AMENDMENT NUMBER ONE TO CREDIT AGREEMENT  THIS AMENDMENT NUMBER ONE TO CREDIT AGREEMENT (this “Amendment”),  dated as of May 26, 2021, is entered into by and among ATKORE INTERNATIONAL, INC., a Delaware  corporation (together with its successors and assigns, the “Parent Borrower”), the Subsidiary Borrowers party hereto  (together with the Parent Borrower, jointly and severally, collectively, the “Borrowers” and each individually, a  “Borrower”), the lenders identified on the signature pages hereof (such lenders, and the other lenders party to the  below-defined Credit Agreement, together with their respective successors and permitted assigns, each individually,  a “Lender”, and collectively, the “Lenders”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a  national banking association, as administrative agent (in such capacity, the “Administrative Agent”) for the Lenders  hereunder, as collateral agent (in such capacity, the “Collateral Agent”) for the Secured Parties and the Issuing  Lenders, as swingline lender (in such capacity, the “Swingline Lender”) and as an Issuing Lender, and in light of the  following:  W I T N E S S E T H  WHEREAS, the Borrowers, Lenders, and the Administrative Agent are parties to that certain  Amended and Restated Credit Agreement, dated as of August 28, 2020 (as amended, restated, supplemented, or  otherwise modified from time to time, the “Credit Agreement”);  WHEREAS, the Loan Parties intend to enter into that certain Term Loan Credit Agreement of even  date herewith, in the form attached hereto as Exhibit B (such Term Loan Credit Agreement in such form, the “Term  Loan Credit Agreement”), by and among the Borrowers, JPMORGAN CHASE BANK, N.A., as administrative  agent and collateral agent, pursuant to which, among other things, the lenders party thereto extended a term loan in  the aggregate principal amount of $400,000,000 to certain of the Borrowers;  WHEREAS, Atkore Inc. (“Ultimate Parent”), the indirect parent of the Borrowers, will issue up to  $400,000,000 aggregate principal amount of its 4.25% Senior Notes due 2031 (the “Notes”) pursuant to an indenture,  dated as of even date herewith, among Ultimate Parent, the guarantors party thereto and The Bank of New York  Mellon Trust Company, N.A. (the “Indenture”), and become a Guarantor (as defined in the Term Loan Credit  Agreement) under the Term Loan Credit Agreement (such transaction, together with the entry into the Term Loan  Credit Agreement, the “Designated Transactions”),  WHEREAS, the Borrowers have requested that the Administrative Agent and Lenders make certain  amendments to the Credit Agreement;  WHEREAS, upon the terms and conditions set forth herein, the Administrative Agent and Lenders  are willing to make certain amendments to the Credit Agreement as further described herein.  NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein  contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby  acknowledged, the parties hereby agree as follows:  1. Defined Terms.  All initially capitalized terms used herein (including the preamble and recitals  hereof) without definition shall have the meanings ascribed thereto in the Credit Agreement (including Schedule 1.1  thereto).  2. Amendments to Credit Agreement.  Subject to the satisfaction (or waiver in writing by the  Administrative Agent) of the conditions precedent set forth in Section 3 hereof, the Credit Agreement is hereby  amended by deleting the stricken text (indicated textually in the same manner as the following example:  stricken  text) and to add the double-underlined text (indicated textually in the same manner as the following example:  double- underlined text) as set forth on Annex A hereto.  

 

   2      3. Conditions Precedent to Amendment. The satisfaction (or waiver in writing by the Administrative  Agent) of each of the following shall constitute conditions precedent to the effectiveness of the Amendment (such  date being the “Amendment Number One Effective Date”):  (a) The Administrative Agent shall have received (i) this Amendment, duly executed by the  parties hereto; and (ii) the reaffirmation and consent of each Guarantor in the form attached hereto as Exhibit A, duly  executed by the parties thereto, and each of the foregoing shall be in full force and effect.  (b) The Administrative Agent shall have received each of the following documents (the  “Designated Transaction Documents”), each in form and substance satisfactory to the Administrative Agent, each  duly executed and delivered by the parties thereto, and each such document shall be in full force and effect:  i. the Canadian Guarantee and Collateral Agreement;  ii. the Term Loan Credit Agreement;  iii. that certain Guarantee and Collateral Agreement, by and among Ultimate Parent,  the Borrowers, and JPMorgan Chase Bank, N.A., in its capacity as collateral agent for the Secured Parties (as defined  in the Term Loan Credit Agreement) under the Term Loan Credit Agreement;  iv. that certain Canadian Guarantee and Collateral Agreement, by and among  Columbia-MBF Inc. and JPMorgan Chase Bank, N.A., in its capacity as collateral agent for the Secured Parties (as  defined in the Term Loan Credit Agreement) under the Term Loan Credit Agreement;  v. the Indenture; and  vi. the Intercreditor Agreement.  (c) The Administrative Agent shall have received an executed legal opinion of (i) Debevoise  & Plimpton LLP, counsel to each of the Borrowers and the other Loan Parties, (ii) Richards, Layton & Finger, P.A.,  special Delaware counsel to certain of the Loan Parties, (iii) Holland & Hart LLP, special Nevada counsel to certain  of the Loan Parties, and (iv) McMillan LLP, special Ontario counsel to certain of the Loan Parties, in each case, in  form and substance satisfactory to the Administrative Agent, with respect to such matters as the Administrative Agent  may reasonably request.  (d) The Administrative Agent shall have received a certificate from each of the Borrowers and  each other Loan Party, dated as of the Amendment Number One Effective Date, substantially in the form of Exhibit  G to the Credit Agreement, with appropriate insertions and attachments of resolutions or other actions, in form and  substance reasonably satisfactory to the Administrative Agent, evidence of incumbency and the signature of  authorized signatories and Organizational Documents, executed by a Responsible Officer and the Secretary or any  Assistant Secretary or other authorized representative of such Loan Party; provided that, in lieu of delivering any  insertion or attachment thereto, any Loan Party may certify that any such insertion or attachment applicable to it has  not changed since that delivered on the Closing Date.  (e) (i) There shall have been no amendments, modifications or supplements to the Designated  Transaction Documents that are (individually or in the aggregate) adverse to the interests of the Administrative Agent  or any other Secured Party other than with the consent of the Administrative Agent, and (ii) each of the Designated  Transaction Documents shall have been duly executed and delivered by the parties thereto, and the same shall be in  full force and effect.  (f) The Designated Transactions shall have been consummated in accordance with the terms  and conditions of the Term Loan Credit Agreement and the Indenture, as applicable.  (g) The Administrative Agent shall have received a certificate of the chief financial officer of  the Parent Borrower certifying the Solvency, after giving effect to the this Amendment and the transactions  

 

   3      contemplated hereby, of the Parent Borrower and its Restricted Subsidiaries on a consolidated basis in substantially  the form of Exhibit I to the Credit Agreement  (h) After giving effect to this Amendment, each of the representations and warranties  contained herein, in the Credit Agreement, and in the other Loan Documents, in each case shall be true and correct in  all material respects on and as of the date hereof as if made on and as of such date (except to the extent any such  representation or warranty relates to an earlier date, in which case such representations and warranties shall have been  true and correct in all material respects as of such earlier date).  (i) Borrowers shall pay concurrently with the closing of the transactions evidenced by this  Amendment, all reasonable and documented out-of-pocket fees, costs, expenses and taxes then payable pursuant to  the Credit Agreement and Section 6 of this Amendment’ provided that such amounts are invoiced to the Parent  Borrower at least two business days prior to the First Amendment Effective Date.  (j) The Administrative Agent shall have received, in immediately available funds, the  Amendment Fee referred to in Section 7 hereof.  4. Representations and Warranties. Parent Borrower with respect to itself and its Restricted  Subsidiaries hereby represents and warrants to the Administrative Agent and each Lender as follows:  (a) Each of the Loan Parties (i) is duly organized, validly existing and (to the extent applicable  in the relevant jurisdiction) in good standing under the laws of the jurisdiction of its incorporation or formation, except  (other than with respect to any Borrower), to the extent that the failure to be in good standing would not reasonably  be expected to have a Material Adverse Effect, (ii) has the corporate or other organizational power and authority, and  the legal right, to own and operate its property, to lease the property it operates as lessee and to conduct the business  in which it is currently engaged, except to the extent that the failure to have such legal right would not be reasonably  expected to have a Material Adverse Effect, (iii) is duly qualified as a foreign corporation or limited liability company  and (to the extent applicable in the relevant jurisdiction) in good standing under the laws of each jurisdiction where  its ownership, lease or operation of property or the conduct of its business requires such qualification, other than in  such jurisdictions where the failure to be so qualified and (to the extent applicable) in good standing would not be  reasonably expected to have a Material Adverse Effect and (iv) is in compliance with all Requirements of Law, except  to the extent that the failure to comply therewith would not, in the aggregate, be reasonably expected to have a Material  Adverse Effect.  (b) Each Loan Party has the corporate or other organizational power and authority, and the  legal right, to make, deliver and perform this Amendment, and each such Loan Party has taken all necessary corporate  or other organizational action to authorize the execution, delivery and performance of this Amendment, on the terms  and conditions of this Amendment. No consent or authorization of, filing with, notice to or other similar act by or in  respect of, any Governmental Authority or any other Person is required to be obtained or made by or on behalf of any  Loan Party in connection with the execution, delivery, performance, validity or enforceability of this Amendment,  except for (i) consents, authorizations, notices and filings which have been obtained or made prior to the Amendment  Number One Effective Date, (ii) filings to perfect the Liens created by the Security Documents, and (iii) consents,  authorizations, notices and filings which the failure to obtain or make would not reasonably be expected to have a  Material Adverse Effect. This Amendment has been duly executed and delivered by each Borrower, and each other  Loan Document to which any Loan Party is a party will be duly executed and delivered on behalf of such Loan Party.  This Amendment constitutes a legal, valid and binding obligation of each of the Borrowers and each other Loan  Document to which any Loan Party is a party when executed and delivered will constitute a legal, valid and binding  obligation of such Loan Party, enforceable against such Loan Party in accordance with its terms, except as  enforceability may be limited by applicable domestic or foreign bankruptcy, insolvency, reorganization, moratorium,  arrangement or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles  (whether enforcement is sought by proceedings in equity or at law).  (c) The execution, delivery and performance of this Amendment by any of the Loan Parties (i)  will not violate any Requirement of Law or Contractual Obligation of such Loan Party in any respect that would  reasonably be expected to have a Material Adverse Effect and (ii) will not result in, or require the creation or  

 

   4      imposition of any Lien (other than Liens securing the Obligations or otherwise permitted under the Credit Agreement)  on any of its properties or revenues pursuant to any such Requirement of Law or Contractual Obligation.  (d) No Default or Event of Default has occurred and is continuing as of the date of the  Amendment Number One Effective Date, and no condition exists which constitutes a Default or an Event of Default.  (e) The representations and warranties set forth in this Amendment, the Credit Agreement, as  amended by this Amendment and after giving effect to this Amendment, and the other Loan Documents to which it is  a party are true and correct in all material respects on and as of the date hereof as if made on and as of such date  (except to the extent any such representation or warranty relates to an earlier date, in which case such representations  and warranties shall have been true and correct in all material respects as of such earlier date).  5. Payment of Costs and Fees.  On the Amendment Number One Effective Date, the Borrowers shall  pay to the Administrative Agent all reasonable, documented and invoiced out-of-pocket expenses (including, without  limitation, the reasonable, documented and invoiced out-of-pocket fees and expenses of one firm of counsel for the  Administrative Agent and, if necessary one firm of local counsel in each appropriate jurisdiction, retained by the  Administrative Agent) in connection with the preparation, negotiation, execution and delivery of this Amendment and  any documents and instruments relating hereto in accordance with Section 11.5 of the Credit Agreement.  6. Amendment Fee.   On or before the Amendment Number One Effective Date, the Borrowers shall  pay to the Administrative Agent, for the ratable account of each Lender party hereto (each, a “Consenting Lender”)  an amendment fee in the amount equal to 0.20% multiplied by the aggregate principal amount of Loans and  Commitments (without duplication) of each Consenting Lender (the “Amendment Fee”) in immediately available  funds.  Such Amendment Fee shall be fully earned and non-refundable on the Amendment Number One Effective  Date.      7. Release.  (a) Effective on the date hereof, each Borrower and each Guarantor, for itself and on behalf of  its successors, assigns, and officers, directors, employees, agents and attorneys, and any Person acting for or on behalf  of, or claiming through it, hereby waives, releases, remises and forever discharges the Administrative Agent, the  Collateral Agent and each Lender, each of their respective Affiliates, and each of their respective successors and  assigns, past, present and future officers, directors, employees, limited partners, general partners, investors, attorneys,  assigns, subsidiaries, shareholders, trustees, agents and other professionals and all other persons and entities to whom  any member of the Lenders would be liable if such persons or entities were found to be liable to such Borrower or  Guarantor (each a “Releasee” and collectively, the “Releasees”), from any and all past, present and future claims,  suits, liens, lawsuits, adverse consequences, amounts paid in settlement, debts, deficiencies, diminution in value,  disbursements, demands, obligations, liabilities, causes of action, damages, losses, costs and expenses of any kind or  character,  whether based in equity, law, contract, tort, implied or express warranty, strict liability, criminal or civil  statute or common law (each a “Claim” and collectively, the “Claims”), whether known or unknown, fixed or  contingent, direct, indirect, or derivative, asserted or unasserted, matured or unmatured, foreseen or unforeseen, past  or present, liquidated or unliquidated, suspected or unsuspected, which such Borrower or Guarantor ever had from the  beginning of the world, now has, or might hereafter have against any such Releasee which relates, directly or indirectly  to the Credit Agreement, any other Loan Document, or to any acts or omissions of any such Releasee with respect to  the Credit Agreement or any other Loan Document, or to the lender-borrower relationship evidenced by the Loan  Documents, except for the duties and obligations set forth in this Amendment.  As to each and every Claim released  hereunder, each Borrower and each Guarantor hereby represents that it has received the advice of legal counsel with  regard to the releases contained herein, and having been so advised, specifically waives the benefit of the provisions  of Section 1542 of the Civil Code of California which provides as follows:  

 

   5      “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR  RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR  AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER,  WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE  DEBTOR OR RELEASED PARTY.”  As to each and every Claim released hereunder, each Borrower and each Guarantor also waives the  benefit of each other similar provision of applicable federal or state law (including without limitation the laws of the  State of New York), if any, pertaining to general releases after having been advised by its legal counsel with respect  thereto.  Each Borrower and each Guarantor acknowledges that it may hereafter discover facts different from  or in addition to those now known or believed to be true with respect to such Claims and agrees that this instrument  shall be and remain effective in all respects notwithstanding any such differences or additional facts.  Each Borrower  and each Guarantor understands, acknowledges and agrees that the release set forth above may be pleaded as a full  and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which  may be instituted, prosecuted or attempted in breach of the provisions of such release  (b) Each Borrower and each Guarantor, for itself and on behalf of its successors, assigns, and  officers, directors, employees, agents and attorneys, and any Person acting for or on behalf of, or claiming through it,  hereby absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of each Releasee above  that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) any Releasee on the basis of any  Claim released, remised and discharged by such Person pursuant to the above release.  Each Borrower and each  Guarantor further agrees that it shall not dispute the validity or enforceability of the Credit Agreement or any of the  other Loan Documents or any of its obligations thereunder, or the validity, priority, enforceability or the extent of the  Collateral Agent’s Lien on any item of Collateral under the Credit Agreement or the other Loan Documents.  If any  Borrower, any Guarantor, or any of their respective successors, assigns, or officers, directors, employees, agents or  attorneys, or any Person acting for or on behalf of, or claiming through it violate the foregoing covenant, such Person,  for itself and its successors, assigns and legal representatives, agrees to pay, in addition to such other damages as any  Releasee may sustain as a result of such violation, all attorneys’ fees and costs incurred by such Releasee as a result  of such violation.  8. CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER; JUDICIAL REFERENCE  PROVISION.  THIS AMENDMENT SHALL BE SUBJECT TO THE PROVISIONS REGARDING CHOICE  OF LAW AND VENUE, JURY TRIAL WAIVER AND JUDICIAL REFERENCE PROVISION SET FORTH  IN SECTION 12 OF THE CREDIT AGREEMENT, AND SUCH PROVISIONS ARE INCORPORATED  HEREIN BY REFERENCE, MUTATIS MUTANDIS.  9. Amendments.   This Amendment cannot be altered, amended, changed or modified in any respect  except in accordance with Section 14.1 of the Credit Agreement.  10. Counterpart Execution; Electronic Execution.  This Amendment, any documents executed in  connection herewith, and any notices under this Amendment or any other Loan Document, may be executed by means  of (i) an electronic signature that complies with the federal Electronic Signatures in Global and National Commerce  Act, state enactments of the Uniform Electronic Transactions Act, or any other relevant and applicable electronic  signatures law; (ii) an original manual signature; or (iii) a faxed, scanned or photocopied manual signature. Each  electronic signature or faxed, scanned, or photocopied manual signature shall, for all purposes, have the same validity,  legal effect, and admissibility in evidence as an original manual signature. The Administrative Agent reserves the  right, in its sole discretion, to accept, deny, or condition acceptance of any electronic signature on this Amendment or  on any notice delivered to the Administrative Agent under this Amendment. This Amendment may be executed in any  number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered,  shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same  Amendment.  Delivery of an executed counterpart of this Amendment by telefacsimile or other electronic method of  transmission shall be equally as effective as delivery of an original executed counterpart of this Amendment.  Any  party delivering an executed counterpart of this Amendment by telefacsimile or other electronic method of  

 

   6      transmission also shall deliver an original executed counterpart of this Amendment, but the failure to deliver an  original executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment.  11. Effect on Loan Documents.  (a) The Credit Agreement, as amended hereby, and each of the other Loan Documents shall  be and remain in full force and effect in accordance with their respective terms and hereby are ratified and confirmed  in all respects.  The execution, delivery, and performance of this Amendment shall not operate, except as expressly  set forth herein, as a modification or waiver of any right, power, or remedy of any Agent or any Lender under the  Credit Agreement or any other Loan Document.  Except for the amendments to the Credit Agreement expressly set  forth herein, the Credit Agreement and the other Loan Documents shall remain unchanged and in full force and effect.   The waivers, consents and modifications set forth herein are limited to the specifics hereof (including facts or  occurrences on which the same are based), shall not apply with respect to any facts or occurrences other than those on  which the same are based, shall neither excuse any future non-compliance with the Loan Documents nor operate as a  waiver of any Default or Event of Default, shall not operate as a consent to any further waiver, consent or amendment  or other matter under the Loan Documents, and shall not be construed as an indication that any future waiver or  amendment of covenants or any other provision of the Credit Agreement will be agreed to, it being understood that  the granting or denying of any waiver or amendment which may hereafter be requested by the Borrowers remains in  the sole and absolute discretion of the Agents and Lenders.  To the extent that any terms or provisions of this  Amendment conflict with those of the Credit Agreement or the other Loan Documents, the terms and provisions of  this Amendment shall control.  (b) Upon and after the effectiveness of this Amendment, each reference in the Credit  Agreement to “this Agreement”, “hereunder”, “herein”, “hereof” or words of like import referring to the Credit  Agreement, and each reference in the other Loan Documents to “the Credit Agreement”, “thereunder”, “therein”,  “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit  Agreement as modified and amended hereby.  (c) To the extent that any of the terms and conditions in any of the Loan Documents shall  contradict or be in conflict with any of the terms or conditions of the Credit Agreement, after giving effect to this  Amendment, such terms and conditions are hereby deemed modified or amended accordingly to reflect the terms and  conditions of the Credit Agreement as modified or amended hereby.  (d) This Amendment is a Loan Document.  (e) This Amendment shall be subject to the provisions regarding construction set forth in  Section 1.2 of the Credit Agreement, and such provisions are incorporated herein by reference, mutatis mutandis.  12. Integration.  This Amendment, together with the other Loan Documents, represent the entire  agreement of each of the Loan Parties party hereto and thereto, the Administrative Agent and the Lenders with respect  to the subject matter hereof, and there are no promises, undertakings, representations or warranties by any of the Loan  Parties party hereto, the Administrative Agent or any Lender relative to the subject matter hereof not expressly set  forth or referred to herein or in the other Loan Documents as applicable.  13. Reaffirmation of Obligations.  Each Borrower hereby (a) acknowledges and reaffirms its obligations  owing to the Administrative Agent, the Collateral Agent and each other Secured Party under each Loan Document to  which it is a party, and (b) agrees that each of the Loan Documents to which it is a party is and shall remain in full  force and effect.  Each Borrower hereby (i) further ratifies and reaffirms the validity and enforceability of all of the  Liens and security interests heretofore granted, pursuant to and in connection with the Guarantee and Collateral  Agreements or any other Loan Document to the Collateral Agent, on behalf and for the benefit of each Secured Party,  as collateral security for the obligations under the Loan Documents in accordance with their respective terms, and (ii)  acknowledges that all of such Liens and security interests, and all Collateral heretofore pledged as security for such  obligations, continue to be and remain collateral for such obligations from and after the date hereof (including, without  limitation, from after giving effect to this Amendment).  

 

   7      14. Ratification.  Each Borrower hereby restates, ratifies and reaffirms each and every term and  condition set forth in the Credit Agreement and the Loan Documents effective as of the date hereof and as modified  hereby.  15. Severability.  Any provision of this Amendment which is prohibited or unenforceable in any  jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without  invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not  invalidate or render unenforceable such provision in any other jurisdiction.  [Signature pages follow]  

 

      IN WITNESS WHEREOF, the parties have entered into this Amendment as of the date first above  written.  PARENT BORROWER:  ATKORE INTERNATIONAL, INC.  By:     Name:  Title:         

 

      AGENT AND LENDERS:  WELLS FARGO BANK, NATIONAL  ASSOCIATION,  as Administrative Agent, Collateral Agent,  Issuing Lender, Lender and Swingline Lender  By:    Name:  Title:     

 

  EXHIBIT A    REAFFIRMATION AND CONSENT  All capitalized terms used herein but not otherwise defined herein shall have the meanings ascribed  to them in that certain Credit Agreement by an among ATKORE INTERNATIONAL, INC., a Delaware corporation  (together with its successors and assigns, the “Parent Borrower”), the Subsidiary Borrowers party hereto (together  with the Parent Borrower, jointly and severally, collectively, the “Borrowers” and each individually, a “Borrower”),  the lenders identified on the signature pages hereof (such lenders, and the other lenders party to the below-defined  Credit Agreement, together with their respective successors and permitted assigns, each individually, a “Lender”, and  collectively, the “Lenders”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking  association, as administrative agent (in such capacity, the “Administrative Agent”) for the Lenders hereunder, as  collateral agent (in such capacity, the “Collateral Agent”) for the Secured Parties and the Issuing Lenders, as swingline  lender (in such capacity, the “Swingline Lender”) and as an Issuing Lender.  Reference is made to that certain  Amendment Number One to Credit Agreement, dated as of the date hereof (the “Amendment”), by and among the  Parent Borrower, the Administrative Agent and the Lenders signatory thereto.  The undersigned Guarantors each hereby (a) represents and warrants to Agents and Lenders that the  execution, delivery, and performance of this Reaffirmation and Consent (i) are within its powers, (ii) have been duly  authorized by all necessary action, and (iii) do not and will not (A) violate any material provision of federal, state, or  local law or regulation applicable to it or its Subsidiaries, the Governing Documents of it or its Subsidiaries, or any  order, judgment, or decree of any court or other Governmental Authority binding on it or its Subsidiaries, (B) conflict  with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any material  agreement of it or its Subsidiaries where any such conflict, breach or default could individually or in the aggregate  reasonably be expected to have a Material Adverse Effect, (C) result in or require the creation or imposition of any  Lien of any nature whatsoever upon any assets of such Guarantor, other than Permitted Liens, or (D) require any  approval of any holder of its Equity Interests or any approval or consent of any Person under any of its or its  Subsidiaries’ material agreements, other than consents or approvals that have been obtained and that are still in force  and effect and except, in the case of material agreements, for consents or approvals, the failure to obtain could not  individually or in the aggregate reasonably be expected to cause a Material Adverse Effect; (b) consents to the  amendment of the Credit Agreement as set forth in the Amendment and any waivers granted therein, including, without  limitation, the release granted in Section 7 thereof; (c) acknowledges and reaffirms its obligations owing to the Lender  Group and the Bank Product Providers under any Loan Document to which it is a party; (d) agrees that each of the  Loan Documents to which it is a party is and shall remain in full force and effect; (e) reaffirms, acknowledges, agrees  and confirms that it has granted to the Collateral Agent a perfected security interest in the Collateral pursuant to the  Loan Documents in order to secure all of its present and future Indebtedness to the Lender Group and the Bank Product  Providers; (f) represents and warrants that it has read and understands the Amendment (including, without limitation,  the release granted in Section 7 of the Amendment) and this Reaffirmation and Consent, has consulted with and been  represented by independent legal counsel of its own choosing in negotiations for and the preparation of such Loan  Documents, has read such Loan Documents in full and final form, and has been advised by its counsel of its rights  and obligations hereunder and thereunder; and (g) agrees to the release provisions set forth in Section 7 of the  Amendment which are incorporated herein by reference as if set forth herein in their entirety and were binding on  each Guarantor mutatis mutandis.  Without limiting the generality of the foregoing, each of the undersigned hereby  restates, ratifies and reaffirms each and every term and condition set forth in the Credit Agreement and the other Loan  Documents to which it is a party effective as of the date hereof and as amended by the Amendment.  All Indebtedness  owing by each of the undersigned are unconditionally owing by such Person to the Lender Group and the Bank Product  Providers, without offset, defense (other than defense of payment), withholding, counterclaim or deduction of any  kind, nature or description whatsoever.  Although each of the undersigned has been informed of the matters set forth herein and has  acknowledged and agreed to same, they each understand that neither any Agent nor any Lender has any obligations  to inform it of such matters in the future or to seek its acknowledgment or agreement to future amendments, and  nothing herein shall create such a duty.  This Reaffirmation and Consent may be executed in any number of  counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be  deemed to be an original, and all of which, when taken together, shall constitute but one and the same Reaffirmation  and Consent.  This Reaffirmation and Consent may be executed by means of (i) an electronic signature that complies  

 

    with the federal Electronic Signatures in Global and National Commerce Act, state enactments of the Uniform  Electronic Transactions Act, or any other relevant and applicable electronic signatures law; (ii) an original manual  signature; or (iii) a faxed, scanned or photocopied manual signature. Each electronic signature or faxed, scanned, or  photocopied manual signature shall, for all purposes, have the same validity, legal effect, and admissibility in evidence  as an original manual signature. The Administrative Agent reserves the right, in its sole discretion, to accept, deny, or  condition acceptance of any electronic signature on this Amendment or on any notice delivered to the Administrative  Agent under this Amendment. The validity of this Reaffirmation and Consent, the construction, interpretation, and  enforcement hereof, and the rights of the parties hereto with respect to all matters arising hereunder or related hereto  shall be determined under, governed by, and construed in accordance with the laws of the State of New York.    [Signature page follows]    

 

    IN WITNESS WHEREOF, the undersigned have each caused this Reaffirmation and Consent to  be executed and delivered as of the date of the Amendment.    GUARANTORS:  

 

      EXHIBIT B    TERM LOAN CREDIT AGREEMENT  (See attached)      

 

Annex A      $325,000,000  AMENDED AND RESTATED CREDIT AGREEMENT  among  ATKORE INC.,  as Ultimate Parent  ATKORE INTERNATIONAL, INC.,  and  THE SUBSIDIARY BORROWERS PARTY HERETO,  as Borrowers,  THE LENDERS  FROM TIME TO TIME PARTIES HERETO,  WELLS FARGO BANK, NATIONAL ASSOCIATION,  as Swingline Lender, Issuing Lender, Administrative Agent and Collateral Agent,  and  the other Issuing Lenders party hereto  dated as of August 28, 2020,  as amended on May 26, 2021,       WELLS FARGO BANK, NATIONAL ASSOCIATION  and  JPMORGAN CHASE BANK, N.A.  as Joint Lead Arrangers and Joint Bookrunners  and  FIFTH THIRD BANK, NATIONAL ASSOCIATION  as Syndication Agent     

 

  i    TABLE OF CONTENTS  PAGE  SECTION 1 Definitions......................................................................................................................................... 1  1.1 Defined Terms .................................................................................................................................. 1  1.2 Other Definitional and Interpretive Provisions ............................................................................... 61  SECTION 2 Amount and Terms of Commitments .............................................................................................. 64  2.1 Commitments .................................................................................................................................. 64  2.2 Procedure for Revolving Credit Borrowing .................................................................................... 66  2.3 Termination or Reduction of Commitments ................................................................................... 67  2.4 Swingline Commitments ................................................................................................................. 67  2.5 Repayment of Loans ....................................................................................................................... 70  2.6 Accordion Facility........................................................................................................................... 71  2.7 Refinancing Amendments ............................................................................................................... 74  2.8 Extension of Commitments ............................................................................................................. 75  2.9 Designated Account ........................................................................................................................ 77  SECTION 3 Letters of Credit .............................................................................................................................. 77  3.1 L/C Commitment ............................................................................................................................ 77  3.2 Procedure for Issuance of Letters of Credit .................................................................................... 78  3.3 Fees, Commissions and Other Charges ........................................................................................... 80  3.4 L/C Participations ........................................................................................................................... 80  3.5 Reimbursement Obligation of the Borrowers ................................................................................. 81  3.6 Obligations Absolute....................................................................................................................... 82  3.7 L/C Disbursements .......................................................................................................................... 82  3.8 L/C Request .................................................................................................................................... 83  3.9 L/C Cash Collateralization .............................................................................................................. 83  3.10 Additional Issuing Lenders ............................................................................................................. 83  3.11 Resignation or Removal of the Issuing Lender ............................................................................... 84  SECTION 4 General Provisions Applicable to Loans and Letters of Credit ....................................................... 84  4.1 Interest Rates and Payment Dates ................................................................................................... 84  4.2 Conversion and Continuation Options ............................................................................................ 85  4.3 Minimum Amounts of Sets ............................................................................................................. 85  4.4 Optional and Mandatory Prepayments ............................................................................................ 85  4.5 Commitment Fees; Administrative Agent’s Fee; Other Fees .......................................................... 87  4.6 Computation of Interest and Fees ................................................................................................... 87  4.7 Special Provisions Applicable to Interest Rate ............................................................................... 88  4.8 Pro Rata Treatment and Payments .................................................................................................. 90  4.9 Illegality .......................................................................................................................................... 91  4.10 Requirements of Law ...................................................................................................................... 91  4.11 Taxes ............................................................................................................................................... 93  4.12 Indemnity ........................................................................................................................................ 97  4.13 Certain Rules Relating to the Payment of Additional Amounts ...................................................... 98  4.14 Controls on Prepayment if Aggregate Outstanding Credit Exceeds Aggregate Revolving  Credit Loan Commitments .............................................................................................................. 99  4.15 Defaulting Lenders .......................................................................................................................... 99  4.16 Cash Management ......................................................................................................................... 101  SECTION 5 Representations and Warranties .................................................................................................... 104  5.1 Financial Condition ....................................................................................................................... 104  5.2 No Change; Solvent ...................................................................................................................... 105  5.3 Corporate Existence; Compliance with Law ................................................................................. 105  5.4 Corporate Power; Authorization; Enforceable Obligations .......................................................... 105  5.5 No Legal Bar ................................................................................................................................. 106  

 

  ii    5.6 No Material Litigation .................................................................................................................. 106  5.7 No Default ..................................................................................................................................... 106  5.8 Ownership of Property; Liens ....................................................................................................... 106  5.9 Intellectual Property ...................................................................................................................... 106  5.10 [Reserved] ..................................................................................................................................... 106  5.11 Taxes ............................................................................................................................................. 106  5.12 Federal Regulations....................................................................................................................... 107  5.13 ERISA; Canadian Pension Plans ................................................................................................... 107  5.14 Collateral ....................................................................................................................................... 108  5.15 Investment Company Act; Other Regulations............................................................................... 108  5.16 Subsidiaries ................................................................................................................................... 108  5.17 Purpose of Loans ........................................................................................................................... 108  5.18 Environmental Matters .................................................................................................................. 108  5.19 No Material Misstatements ........................................................................................................... 109  5.20 [Reserved] ..................................................................................................................................... 109  5.21 Labor Matters ................................................................................................................................ 109  5.22 Insurance ....................................................................................................................................... 109  5.23 Eligible Accounts .......................................................................................................................... 110  5.24 Eligible Inventory ......................................................................................................................... 110  5.25 OFAC; Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws .................................. 110  SECTION 6 Conditions Precedent .................................................................................................................... 110  6.1 Conditions to Initial Extension of Credit ...................................................................................... 110  6.2 Conditions to Each Extension of Credit After the Closing Date ................................................... 113  SECTION 7 Affirmative Covenants .................................................................................................................. 114  7.1 Financial Statements ..................................................................................................................... 114  7.2 Certificates; Other Information ..................................................................................................... 115  7.3 Payment of Obligations ................................................................................................................. 117  7.4 Conduct of Business and Maintenance of Existence ..................................................................... 117  7.5 Maintenance of Property; Insurance ............................................................................................. 118  7.6 Inspection of Property; Books and Records; Discussions ............................................................. 118  7.7 Notices .......................................................................................................................................... 119  7.8 Environmental Laws ..................................................................................................................... 120  7.9 Subsidiaries ................................................................................................................................... 121  7.10 [Reserved] ..................................................................................................................................... 123  7.11 Use of Proceeds ............................................................................................................................. 123  7.12 Post-Closing Security Perfection .................................................................................................. 123  7.13 [Reserved] ..................................................................................................................................... 123  7.14 Changes in Fiscal Year ................................................................................................................. 123  7.15 OFAC; Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws .................................. 123  SECTION 8 Negative Covenants ...................................................................................................................... 124  8.1 Financial Condition Covenant....................................................................................................... 124  8.2 Limitation on Fundamental Changes ............................................................................................ 124  8.3 Limitation on Restricted Payments ............................................................................................... 125  8.4 Limitations on Certain Acquisitions ............................................................................................. 127  8.5 Limitation on Dispositions of Collateral ....................................................................................... 128  8.6 Limitation on Optional Payments and Modifications of Subordinated Debt Instruments  and Other Documents .................................................................................................................... 129  8.7 [Reserved]. .................................................................................................................................... 130  8.8 Limitation on Negative Pledge Clauses ........................................................................................ 130  8.9 Limitation on Lines of Business ................................................................................................... 131  8.10 Limitations on Currency, Commodity and Other Hedging Transactions ...................................... 132  8.11 Limitations on Transactions with Affiliates .................................................................................. 132  8.12 Limitations on Investments ........................................................................................................... 133  

 

  iii    8.13 Limitations on Indebtedness ......................................................................................................... 136  8.14 Limitations on Liens ..................................................................................................................... 141  8.15 Canadian Defined Benefit Pension Plans ...................................................................................... 145  SECTION 9 Events of Default .......................................................................................................................... 146  9.1 Events of Default .......................................................................................................................... 146  9.2 Remedies Upon an Event of Default ............................................................................................. 148  SECTION 10 The Agents and the Other Representatives ................................................................................... 148  10.1 Appointment ................................................................................................................................. 148  10.2 The Administrative Agent and Affiliates ...................................................................................... 149  10.3 Action by an Agent ....................................................................................................................... 149  10.4 Exculpatory Provisions ................................................................................................................. 149  10.5 Acknowledgement and Representations by Lenders ..................................................................... 150  10.6 Indemnity; Reimbursement by Lenders ........................................................................................ 151  10.7 Right to Request and Act on Instructions; Reliance ...................................................................... 151  10.8 Collateral Matters .......................................................................................................................... 152  10.9 Successor Agent ............................................................................................................................ 153  10.10 Swingline Lender .......................................................................................................................... 154  10.11 Withholding Tax ........................................................................................................................... 154  10.12 Other Representatives ................................................................................................................... 154  10.13 Appointment of Borrower Representatives ................................................................................... 155  10.14 Administrative Agent May File Proofs of Claim .......................................................................... 155  10.15 Application of Proceeds ................................................................................................................ 155  10.16 Certain ERISA Matters ................................................................................................................. 156  10.17 Erroneous Payments. ..................................................................................................................... 158  SECTION 11 Miscellaneous ............................................................................................................................... 159  11.1 Amendments and Waivers ............................................................................................................ 159  11.2 Notices .......................................................................................................................................... 162  11.3 No Waiver; Cumulative Remedies ................................................................................................ 164  11.4 Survival of Representations and Warranties ................................................................................. 164  11.5 Payment of Fees, Expenses and Taxes .......................................................................................... 164  11.6 Successors and Assigns; Participations and Assignments............................................................. 168  11.7 Adjustments; Set-off; Calculations; Computations ....................................................................... 172  11.8 Judgment ....................................................................................................................................... 173  11.9 Counterparts .................................................................................................................................. 173  11.10 Severability ................................................................................................................................... 174  11.11 Integration ..................................................................................................................................... 174  11.12 Governing Law ............................................................................................................................. 174  11.13 Submission to Jurisdiction; Waivers ............................................................................................. 174  11.14 Acknowledgements ....................................................................................................................... 175  11.15 Waiver Of Jury Trial ..................................................................................................................... 175  11.16 Confidentiality .............................................................................................................................. 175  11.17 Accordion Indebtedness; Additional Indebtedness ....................................................................... 176  11.18 USA Patriot Act Notice ................................................................................................................. 176  11.19 Electronic Execution ..................................................................................................................... 176  11.20 Joint and Several Liability; Postponement of Subrogation ........................................................... 177  11.21 Reinstatement ................................................................................................................................ 177  11.22 Designated Cash Management Agreements, Designated Hedging Agreements and  Designated Vendor Financing Arrangements ............................................................................... 177  11.23 Acknowledgement and Consent to Bail-In of EEA Financial Institutions .................................... 178  11.24 Acknowledgement Regarding Any Supported QFCs.................................................................... 179  11.25 Cash Management Party ............................................................................................................... 179  11.26 No Novation .................................................................................................................................. 180  

 

  iv    SCHEDULES    A Commitments  A-1.1(j) Authorized Persons  A-1.1(k) Administrative Agent’s Account  B Financial Centers of Designated Foreign Currency  1.1(a) [Reserved]  1.1(b) Disposition of Certain Assets  1.1(c) Owned Real Property  1.1(d) [Reserved]  1.1(e) [Reserved]  1.1(f) Existing Investments  1.1(g) Loans and Advances to Directors and Employees  1.1(h) Designated Cash Management Agreements, Designated Hedging Agreements, Designated Vendor  Financing Arrangements  1.1(i) L/C Sublimits  1.1(j) Unrestricted Subsidiaries  2.9 Designated Account  4.16(a) DDAs  5.2 Material Adverse Effect Disclosure  5.4 Consents Required  5.6 Litigation  5.9 Intellectual Property Claims  5.13(c) Canadian Pension Plans  5.16 Subsidiaries  5.18 Environmental Matters  5.22 Insurance  6.1(f) Lien Searches  7.2(a) Collateral Reporting  7.2(b) Website Address  7.12 Post-Closing Collateral Requirements  8.11 Affiliate Transactions   8.13(d) Closing Date Existing Indebtedness  8.14(b) Existing Liens    

 

  v    EXHIBITS    A-1 Form of Revolving Credit Note  A-2 Form of Swingline Note  B-1 Form of Amended and Restated Guarantee and Collateral Agreement  B-2 Form of Canadian Guarantee and Collateral Agreement  C [Reserved]  D Form of U.S. Tax Compliance Certificate  E Form of Assignment and Acceptance  F Form of Swingline Loan Participation Certificate  G Form of Secretary’s Certificate  H Form of Officer’s Certificate  I Form of Solvency Certificate  J-1  Form of Borrowing Request  J-2 Form of L/C Request  K Form of Borrowing Base Certificate  L Form of Lender Joinder Agreement  M [Reserved]  N Form of Subsidiary Borrower Joinder  O  [Reserved]  P  [Reserved]  Q  Form of Compliance Certificate  

 

    AMENDED AND RESTATED CREDIT AGREEMENT, dated as of August 28, 2020, among Atkore  International, Inc., a Delaware corporation (together with its successors and assigns, the “Parent Borrower”), the  Subsidiary Borrowers from time to time party hereto (together with the Parent Borrower, jointly and severally,  collectively, the “Borrowers” and each individually, a “Borrower”), the several banks and other financial institutions  from time to time party hereto (as further defined in Subsection 1.1, the “Lenders”), the issuing lenders from time to  time party hereto (as further defined in Subsection 1.1, the “Issuing Lenders”) and WELLS FARGO BANK,  NATIONAL ASSOCIATION, as administrative agent (in such capacity, the “Administrative Agent”) for the  Lenders hereunder, as collateral agent (in such capacity, the “Collateral Agent”) for the Secured Parties and the  Issuing Lenders, as swingline lender (in such capacity, the “Swingline Lender”) and as an Issuing Lender.  The parties hereto hereby agree as follows:  W I T N E S S E T H:  WHEREAS, the Parent Borrower, the Administrative Agent, the Collateral Agent and certain lenders are  party to that certain Existing Credit Agreement (as defined below);  WHEREAS, the parties desire to amend and restate the Existing Credit Agreement on the terms and  conditions set forth herein to effect the Transactions;  WHEREAS, it is the intent of the parties hereto that this Agreement not constitute novation of the  obligations and liabilities existing under the Existing Credit Agreement which remain outstanding or evidence  repayment of any such obligations and liabilities and that this Agreement amends and restates in its entirety the  Existing Credit Agreement and re-evidence the obligations of the Borrowers outstanding thereunder as Obligations  of the Borrowers under this Agreement; and  WHEREAS, in order to (i) effect the Transactions, including the payments of fees, costs and expenses  relating thereto and (ii) finance the working capital, capital expenditures and other general corporate purposes of the  Parent Borrower and its Subsidiaries, the Parent Borrower and the Subsidiary Borrowers have requested that the  Lenders make the Loans and issue and participate in the Letters of Credit provided for herein.  NOW, THEREFORE, in consideration of the premises and the mutual agreements contained herein, the  parties hereto agree to amend and restate the Existing Credit Agreement as follows:  SECTION 1 Definitions  1.1 Defined Terms. As used in this Agreement, the following terms shall have the following meanings:  “30-Day Specified Availability”:  as of the date of any Specified Transaction (after giving effect thereto) or  any other date of determination, the sum of (x) the quotient obtained by dividing (a) the sum of each day’s aggregate  amount of Available Loan Commitments during the thirty (30) consecutive day period immediately preceding such  Specified Transaction plus the sum of each day’s Specified Suppressed Availability during such period (in each case,  calculated on a pro forma basis to include the borrowing or repayment of any Loans or issuance or cancellation of  any Letters of Credit in connection with such Specified Transaction) by (b) thirty (30) plus (y) Specified  Unrestricted Cash as of the date of such Specified Transaction or any other date of determination.  “ABL Priority Collateral”:  as defined in the Intercreditor Agreement as in effect on the date hereof or  modified with the consent of the Required Lenders and whether or not the same remains in full force and effect.  “ABR”:  when used in reference to any Loan or Borrowing, is used when such Loan, or the Loans  comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate.  “ABR Loans”:  Loans to which the rate of interest applicable is based upon the Alternate Base Rate.  “Acceleration”:  as defined in Subsection 9.1(e).  

 

  2  “Accordion Facility” and “Accordion Facilities”:  as defined in Subsection 2.6(a).  “Accordion Facility Increase”:  as defined in Subsection 2.6(a).  “Accordion Indebtedness”:  Indebtedness incurred by any Borrower pursuant to and in accordance with  Subsection 2.6.  “Accordion Revolving Credit Commitment Effective Date”:  as defined in Subsection 2.6(d).  “Accordion Revolving Credit Commitments”:  as defined in Subsection 2.6(a).  “Accordion Term Loans”:  as defined in Subsection 2.6(a).  “Account Debtor”:  each Person who is obligated on an Account, Chattel Paper or General Intangible.   “Account Party”:  as defined in Subsection 11.5(c).    “Accounts”:  “accounts” as defined in Article 9 of the UCC and, with respect to any Person, all such  Accounts of such Person, whether now existing or existing in the future, including (a) all accounts receivable of  such Person (whether or not specifically listed on schedules furnished to the Administrative Agent), including all  accounts created by or arising from all of such Person’s sales of goods or rendition of services made under any of its  trade names, or through any of its divisions, (b) all unpaid rights of such Person (including rescission, replevin,  reclamation and stopping in transit) relating to the foregoing or arising therefrom, (c) all rights to any goods  represented by any of the foregoing, including returned or repossessed goods, (d) all reserves and credit balances  held by such Person with respect to any such accounts receivable of any Account Debtors, (e) all letters of credit,  guarantees or collateral for any of the foregoing and (f) all insurance policies or rights relating to any of the  foregoing.  “Acquired Indebtedness”:  Indebtedness of a Person (i) existing at the time such Person becomes a  Subsidiary or (ii) assumed in connection with the acquisition of assets from such Person, in each case other than  Indebtedness incurred in connection with, or in contemplation of, such Person becoming a Subsidiary or such  acquisition of assets.  Acquired Indebtedness shall be deemed to be incurred on the date of the related acquisition of  assets from any Person or the date the acquired Person becomes a Subsidiary.  “Acquisition Consideration”:  the purchase consideration for any acquisition and all other payments by the  Ultimate Parent or any of its Restricted Subsidiaries in exchange for, or as part of, or in connection with, any  acquisition, consisting of cash or by exchange of property (other than Capital Stock of any Parent Entity) or the  assumption of Indebtedness payable at or prior to the consummation of such acquisition or deferred for payment at  any future time (provided that any such future payment is not subject to the occurrence of any contingency). For  purposes of the foregoing, any Acquisition Consideration consisting of property shall be valued at the Fair Market  Value thereof, measured on the date a legally binding commitment for such acquisition (or, if later, for payment of  such item) was entered into and without giving effect to subsequent changes in value.  “Additional Agent”:  as defined in the Intercreditor Agreement.  “Additional Assets”:  (a) any property or assets that replace the property or assets that are the subject of an  Asset Sale; (b) any property or assets (other than Indebtedness and Capital Stock) used or to be used by the Ultimate  Parent or a Restricted Subsidiary or otherwise useful in a business permitted by Subsection 8.9 and any capital  expenditures in respect of any property or assets already so used; (c) the Capital Stock of a Person that is engaged in  a business permitted by Subsection 8.9 and becomes a Restricted Subsidiary as a result of the acquisition of such  Capital Stock by the Ultimate Parent or another Restricted Subsidiary; or (d) Capital Stock of any Person that at  such time is a Restricted Subsidiary acquired from a third party.  “Additional Indebtedness”:  as defined in the Intercreditor Agreement.  

 

  3  “Additional Lender”:  as defined in Subsection 2.6(a).  “Additional Obligations”:  senior or subordinated Indebtedness (which Indebtedness may be (w) secured by  a Lien ranking pari passu with the Lien securing the Cash Flow Priority Obligations (which shall, for the avoidance  of doubt, rank junior to the Lien securing this Facility with respect to the ABL Priority Collateral), (x) secured by a  Lien ranking junior to the Lien securing the Cash Flow Priority Obligations, (y) unsecured or (z) in the case of  Indebtedness issued or incurred by an Escrow Subsidiary, secured by a Lien on the proceeds of such Additional  Obligations which were subject to an escrow or similar arrangement and Liens on any related deposit of cash, Cash  Equivalents or Temporary Cash Investments to cover interest and premium in respect of such Additional  Obligations), including customary bridge financings, in each case issued or incurred by any Loan Party or any  Escrow Subsidiary in compliance with Subsection 8.13.  “Additional Obligations Documents”:  any document or instrument (including any guarantee, security  agreement or mortgage and which may include any or all of the Term Loan Documents) issued or executed and  delivered with respect to any Additional Obligations or Rollover Indebtedness by any Loan Party or Escrow  Subsidiary with respect to any Additional Obligations or Rollover Indebtedness.  “Adjusted LIBOR Rate”:  with respect to any Borrowing of Eurodollar Loans for any Interest Period, an  interest rate per annum determined by the Administrative Agent to be equal to the LIBOR Rate for such Borrowing  of Eurodollar Loans in effect for such Interest Period divided by 1 minus the Statutory Reserves (if any) for such  Borrowing of Eurodollar Loans for such Interest Period.  “Administrative Agent”:  as defined in the Preamble hereto and shall include any successor to the  Administrative Agent appointed pursuant to Subsection 10.9.  “Administrative Agent’s Account”:  the Deposit Account of Administrative Agent identified on Schedule  A-1.1(k) to this Agreement (or such other Deposit Account of Administrative Agent that has been designated as  such, in writing, by Administrative Agent to Borrowers and the Lenders).  “Affected BA Rate”:  as defined in Subsection 4.7.  “Affected Daily Rate”:  as defined in Subsection 4.7.   “Affected Eurodollar Rate”:  as defined in Subsection 4.7.  “Affected Loans”:  as defined in Subsection 4.9.  “Affiliate”:  as to any specified Person, any other Person, directly or indirectly, controlling or controlled by  or under direct or indirect common control with such specified Person. For the purposes of this definition, “control”  when used with respect to any Person means the possession, directly or indirectly through one or more  intermediaries, of the power to direct or cause the direction of the management and policies of such Person, directly  or indirectly, whether through the ownership of voting securities, by contract or otherwise; provided that, solely with  respect to the definition of Borrowing Base Eligible Accounts and Subsection 8.11, (a) if any Person so owns or  otherwise has the power to vote 20% or more of the Voting Stock of such Person, then both such Persons shall be  Affiliates of each other, (b) each director (or comparable manager) of a Person shall be deemed to be an Affiliate of  such Person, and (c) each partnership in which a Person is a general partner shall be deemed an Affiliate of such  Person; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.   “Agency Resignation and Appointment Agreement”: the Resignation, Waiver, Consent and Appointment  Agreement, dated as of August 28, 2020, by and among the Parent Borrower, Subsidiary Guarantors, Agents, and  UBS AG, Stamford Branch, in its capacity as resigning administrative agent and collateral agent.  “Agent Advance”:  as defined in Subsection 2.1(c).  “Agent Advance Period”:  as defined in Subsection 2.1(c).  

 

  4  “Agents”:  the collective reference to the Administrative Agent and the Collateral Agent and “Agent” shall  mean any of them.  “Aggregate Lender Exposure”:  the sum of the Dollar Equivalent of (a) the aggregate principal amount of  all Revolving Credit Loans then outstanding, (b) the aggregate amount of all L/C Obligations at such time and (c)  the aggregate amount of all Swingline Exposure at such time.  “Aggregate Outstanding Credit”:  as to any Revolving Credit Lender at any time, an amount equal to the  sum of (a) the aggregate principal amount of all Revolving Credit Loans made by such Revolving Credit Lender  then outstanding (including in the case of Revolving Credit Loans then outstanding in any Designated Foreign  Currency, the Dollar Equivalent of the aggregate principal amount thereof), (b) the aggregate amount equal to such  Revolving Credit Lender’s Commitment Percentage of the L/C Obligations then outstanding and (c) the aggregate  amount equal to such Revolving Credit Lender’s Commitment Percentage, if any, of the Swingline Loans then  outstanding.  “Agreement”:  this Credit Agreement, as amended, supplemented, waived or otherwise modified from time  to time.  “Alternate Base Rate”:  for any day, a fluctuating rate per annum equal to the greatest of (a) the Base Rate  in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus 0.50% and (c) the Adjusted  LIBOR Rate for an Interest Period of one-month beginning on such day (or if such day is not a Business Day, on the  immediately preceding Business Day) plus 1.00%. If the Administrative Agent shall have determined (which  determination shall be conclusive absent manifest error) that it is unable to ascertain the Federal Funds Effective  Rate or the Adjusted LIBOR Rate for any reason, including the inability or failure of the Administrative Agent to  obtain sufficient quotations in accordance with the terms of the definition thereof, the Alternate Base Rate shall be  determined without regard to clause (b) or (c) above, as the case may be, of the preceding sentence until the  circumstances giving rise to such inability no longer exist. Any change in the Alternate Base Rate due to a change in  the Base Rate, the Federal Funds Effective Rate or the Adjusted LIBOR Rate shall be effective on the effective date  of such change in the Base Rate, the Federal Funds Effective Rate or the Adjusted LIBOR Rate, respectively.  “Anti-Corruption Laws”: the FCPA, the U.K. Bribery Act of 2010, as amended, the Corruption of Foreign  Public Official Act (Canada), as amended, and all other applicable laws and regulations or ordinances concerning or  relating to bribery, money laundering or corruption in any jurisdiction in which any Loan Party or any of its  Subsidiaries or Affiliates is located or is doing business.  “Anti-Money Laundering Laws”: the applicable laws or regulations in any jurisdiction in which any Loan  Party or any of its Subsidiaries or Affiliates is located or is doing business that relates to money laundering, any  predicate crime to money laundering, or any financial record keeping and reporting requirements related thereto  “Applicable Commitment Fee Rate”:  with respect to commitment fees payable hereunder, a rate per  annum equal to 0.30%; provided that, commencing with the first full fiscal quarter following the First Amendment  Effective Date, for any period the aggregate Available Loan Commitments expressed as a percentage of Availability  are less than 50%, the Applicable Commitment Fee Rate shall be 0.25%.   “Applicable Margin”:  a rate per annum equal to the rate set forth below for the applicable type of Loan and  opposite the applicable aggregate Available Loan Commitments expressed as a percentage of Availability:  Aggregate Available  Loan Commitments  Eurodollar  Loans ABR Loans BA Equivalent Loans  Canadian Prime Rate  Loans    Level I:  Less than or equal to  20%    1.75%    0.75%    1.75%    0.75%    Level II:    1.50%    0.50%    1.50%    0.50%  

 

  5  Aggregate Available  Loan Commitments  Eurodollar  Loans ABR Loans BA Equivalent Loans  Canadian Prime Rate  Loans  Greater than 20% but  less than or equal to 60%    Level III:  Greater than 60%    1.25%    0.25%    1.25%    0.25%  Each change in the Applicable Margin resulting from a change in the aggregate Available Loan Commitments shall  be effective with respect to all Loans and Letters of Credit outstanding on and after the date of delivery to the  Administrative Agent of the Borrowing Base Certificate required by Subsection 7.2(f) indicating such change until  the date immediately preceding the next date of delivery of such Borrowing Base Certificate indicating another such  change; provided that, until delivery of the first Borrowing Base Certificate following the Closing Date, the  aggregate Available Loan Commitments shall be deemed to be in Level III. Notwithstanding the foregoing, the  aggregate Available Loan Commitments shall be deemed to be in Level I at any time (after expiration of the  applicable cure period) during which the Parent Borrower has failed to deliver the Borrowing Base Certificate  required by Subsection 7.2(f).  In addition, at all times while an Event of Default known to the Parent Borrower shall have occurred and be  continuing, the Applicable Margin shall not decrease from that previously in effect as a result of the delivery of such  Borrowing Base Certificate.  “Approved Fund”:  as defined in Subsection 11.6(b).  “Asset Sale”:  any sale, issuance, conveyance, transfer, lease or other disposition including by way of a  Delaware LLC Division (a “Disposition”), by the Parent Borrower or any other Loan Party in one or a series of  related transactions, of any real or personal, tangible or intangible, property (including Capital Stock) of the Parent  Borrower or any of its Restricted Subsidiaries, other than:  (a) the sale or other Disposition of obsolete, worn out or surplus property, whether now owned or  hereafter acquired, in the ordinary course of business;  (b) the sale or other Disposition of any property (including Inventory) in the ordinary course of  business;  (c) the sale or discount without recourse of accounts receivable or notes receivable arising in the  ordinary course of business, or the conversion or exchange of accounts receivable into or for notes receivable, in  connection with the compromise or collection thereof; provided that, in the case of any Foreign Subsidiary of the  Ultimate Parent, any such sale or discount may be with recourse if such sale or discount is consistent with customary  practice in such Foreign Subsidiary’s country of business;  (d) as permitted by Subsection 8.2(b) or pursuant to any Exempt Sale and Leaseback Transaction;  (e) subject to any applicable limitations set forth in Subsection 8.2, Dispositions of any assets or  property by the Ultimate Parent or any of its Restricted Subsidiaries to the Ultimate Parent, any Subsidiary  Guarantor or any Wholly Owned Subsidiary of the Ultimate Parent;  (f) the abandonment or other Disposition of patents, trademarks or other intellectual property that are,  in the reasonable judgment of the Parent Borrower no longer economically reasonable to maintain or useful in the  conduct of the business of the Ultimate Parent and its Subsidiaries taken as a whole, and (ii) any license, sublicense  or other grant of rights in or to Intellectual Property (in each case, other than an exclusive license of Intellectual  Property owned by the Ultimate Parent or any of its Restricted Subsidiaries) in the ordinary course of business;  (g) any Disposition by the Ultimate Parent or any of its Restricted Subsidiaries for aggregate  consideration not to exceed the greater of (x) $30,000,000 and (y) 2.00% of Consolidated Total Assets;  

 

  6  (h) any Disposition set forth on Schedule 1.1(b);  (i) any Delaware LLC Division if such Delaware Divided LLC becomes a Restricted Subsidiary;  (j) any Disposition of cash, Cash Equivalents or Temporary Cash Investments as consideration for a  transaction not prohibited under this Agreement;  (k) to the extent constituting a Disposition, any Restricted Payment Transaction;  (l) any “fee in lieu” or other disposition of assets to any Governmental Authority that continue in use  by the Ultimate Parent or any Restricted Subsidiary, so long as the Ultimate Parent or any Restricted Subsidiary may  obtain title to such assets upon reasonable notice by paying a nominal fee;  (m) any exchange of property pursuant to or intended to qualify under Section 1031 (or any successor  section) of the Code, or any exchange of equipment to be leased, rented or otherwise used in a Related Business;  (n) any disposition arising from foreclosure, condemnation, eminent domain, or similar action with  respect to any property or other assets, or exercise of termination rights under any lease, license, concession or other  agreement, or necessary or advisable (as determined by the Parent Borrower in good faith) in order to consummate  any acquisition of any Person, business or assets, or pursuant to buy/sell arrangements under any joint venture or  similar agreement or arrangement;  (o) the sale or other Disposition of accounts receivable, or participations therein, and assets related to  such accounts receivable in connection with any Receivables Facility permitted pursuant to this Agreement; and  (p) to the extent constituting a Disposition, the creation or granting of any Lien permitted under this  Agreement.  “Assignee”:  as defined in Subsection 11.6(b)(i).  “Assignment and Acceptance”:  an Assignment and Acceptance, substantially in the form of Exhibit E  hereto.   “Authorized Person”:  any one of the individuals identified as an officer of a Borrower on Schedule A-1.1(j)  to this Agreement, or any other individual identified by Borrower Representative as an authorized person and  authenticated through Administrative Agent’s electronic platform or portal in accordance with its procedures for  such authentication.  “Auto-Renewal L/C”:  as defined in Subsection 3.1(c).  “Availability”:  the lesser of (x) the aggregate Commitments as in effect at such time and (y) the Borrowing  Base at such time (based on the Borrowing Base Certificate last delivered).  “Availability Reserves”:  reserves, if any, (1) established by the Administrative Agent from time to time  hereunder in its Permitted Discretion against the Borrowing Base, including such reserves, subject to Subsection  2.1(b), as the Administrative Agent, in its Permitted Discretion, determines as being appropriate to reflect any  impairment to the value of the enforceability or priority of the Lien on, or the ability to enforce upon, realize, access,  appraise, finish, repair or inspect, the Collateral consisting of Eligible Accounts or Eligible Inventory included in the  Borrowing Base (including (x) in connection with the disposition of any such Eligible Accounts or Eligible  Inventory (including, without limitation, pursuant to a Special Purpose Financing (as defined in the Term Loan  Credit Agreement), a Sale and Leaseback Transaction or transactions related to a Receivables Facility), and (y)  claims that the Administrative Agent determines will need to be satisfied in connection with the realization upon  such Collateral), (2) constituting Designated Cash Management Reserves, Designated Hedging Reserves or  Designated Vendor Financing Reserves established in accordance with Subsection 11.22(a), (3) constituting  

 

  7  Dilution Reserves, (4) constituting Canadian Priority Payables Reserves, or (5) established by the Administrative  Agent from time to time hereunder on and after the date that is 91 days prior to the maturity of any tranche of term  loans under the Term Loan Credit Facility and there is $100,000,000 or less in principal amount outstanding under  such tranche of term loans, in an amount up to, but not in excess of, the outstanding principal amount of term loans  under such tranche (and any such Availability Reserves under this clause (5) will be reduced by the amount of any  prepayment of principal amount of such tranche of term loans not in violation of this Agreement).   “Available Accordion Amount”:  at any time, the excess, if any, of (a) the sum of $150,000,000 over (b)  the sum of the aggregate principal amount of all Accordion Term Loans made plus all Accordion Revolving Credit  Commitments established prior to such date pursuant to Subsection 2.6.  “Available Excluded Contribution Amount Basket”:  as of any date, the excess, if any, of (a) the Net  Proceeds from Excluded Contributions received by the Parent Borrower as of such date, minus (b) the Net Proceeds  from Excluded Contributions as of such date designated or applied prior to such date, or on such date in a separate  designation or application, to an Investment made pursuant to Subsection 8.12(v), cash consideration for  acquisitions made pursuant to Subsection 8.4(b)(iii)(2)(y), or any payments, prepayments, repurchases or  redemptions of Restricted Indebtedness made pursuant to Subsection 8.6(a).  “Available Loan Commitment”:  as to any Lender at any time, an amount equal to the excess, if any, of (a)  the lesser of (i) the amount of such Lender’s Commitment at such time and (ii) the amount equal to such Lender’s  Commitment Percentage of the Borrowing Base over (b) the sum of (i) the aggregate unpaid principal amount at  such time of all Revolving Credit Loans made by such Lender (including in the case of Revolving Credit Loans  made by such Lender in any Designated Foreign Currency, the Dollar Equivalent of the aggregate unpaid principal  amount thereof), (ii) the amount equal to such Lender’s Commitment Percentage of the aggregate unpaid principal  amount at such time of all Swingline Loans and (iii) the amount equal to such Lender’s Commitment Percentage of  the outstanding L/C Obligations at such time. For purposes of the Payment Conditions the aggregate Available Loan  Commitments shall be calculated on a pro forma basis to include the borrowing or repayment of any Loans or  issuance or cancellation of any Letters of Credit in connection with the proposed transaction.  “Available Tenor”: as of any date of determination and with respect to the then-current Benchmark, as  applicable, (x) if the then-current Benchmark is a term rate, any tenor for such Benchmark that is or may be used  for determining the length of an Interest Period or (y) otherwise, any payment period for interest calculated with  reference to such Benchmark, as applicable, pursuant to this Agreement as of such date.   “BA Equivalent Loan”:  any Loan in Canadian Dollars bearing interest at a rate determined by reference to  the BA Rate in accordance with the provisions of Section 2.   “BA Rate”:  the average rate per annum as reported on the Reuters Screen CDOR Page (or any successor  page or such other page or commercially available service displaying Canadian interbank bid rates for Canadian  Dollar bankers’ acceptances as the Administrative Agent may designate from time to time, or if no such substitute  service is available, the rate quoted by a Schedule I bank under the Bank Act (Canada) selected by the  Administrative Agent at which such bank is offering to purchase Canadian Dollar bankers’ acceptances) as of 10:00  a.m. Eastern (Toronto) time on the date of commencement of the requested Interest Period, for a term, and in an  amount, comparable to the Interest Period and the amount of the BA Equivalent Loan requested (whether as an  initial  BA Equivalent Loan or as a continuation of a BA Equivalent Loan or as a conversion of a Canadian Prime  Rate Loan to a  BA Equivalent Loan) by any Borrower in accordance with this Agreement (and, if any such reported  rate is below zero, then the rate determined pursuant to this clause (b) shall be deemed to be zero).  Each  determination of the BA Rate shall be made by the Administrative Agent and shall be conclusive in the absence of  manifest error.  “Bail-In Action”:  the exercise of any Write-Down and Conversion Powers by the applicable EEA  Resolution Authority in respect of any liability of an EEA Financial Institution.  

 

  8  “Bail-In Legislation”:  with respect to any EEA Member Country implementing Article 55 of the Bank  Recovery and Resolution Directive, the implementing law for such EEA Member Country from time to time which  is described in the EU Bail-In Legislation Schedule.  “Bank Products Affiliate”:  an “ABL Bank Products Affiliate” as defined in the Intercreditor Agreement.  “Bank Products Agreement”:  any agreement pursuant to which a bank or other financial institution agrees  to provide (a) treasury services, (b) credit card, merchant card, purchasing card or stored value card services  (including the processing of payments and other administrative services with respect thereto), (c) cash management  services (including controlled disbursements, automated clearinghouse transactions, return items, netting, overdrafts,  depository, lockbox, stop payment, electronic funds transfer, information reporting, wire transfer and interstate  depository network services), (d) other banking products or services as may be requested by the Ultimate Parent or  any Restricted Subsidiary (other than letters of credit and other than loans and advances except indebtedness arising  from services described in clauses (a) through (c) of this definition) or (e) a Receivables Facility (other than (x) any  true sale or (y) any such Receivables Facility consummated by a bankruptcy remote entity).  “Bank Products Collateralization”: providing cash collateral (pursuant to documentation reasonably  satisfactory to Administrative Agent) to be held by Administrative Agent for the benefit of the Cash Management  Party in an amount equal to either (x) 103% of the principal amount of the then existing Bank Products Obligations  (other than Hedging Obligations) or (y) the amount agreed in writing between the Borrower Representative and the  provider of any Bank Products Obligations (with a copy of such written agreement provided to the Administrative  Agent).   “Bank Products Obligations”: of any Person means, collectively and without duplication, (x) the  obligations of such Person pursuant to any Bank Products Agreement and (y) all amounts that Administrative Agent  or any Lender is obligated to pay to a Cash Management Party as a result of Administrative Agent or such Lender  purchasing participations from, or executing guarantees or indemnities or reimbursement obligations to, a Cash  Management Party with respect to Cash Management Arrangements provided by such Cash Management Party to a  Loan Party or any of its Subsidiaries.     “Base Rate”:  the greatest of (a) the Federal Funds Effective Rate plus 1⁄2%, (b) the Adjusted LIBOR Rate  (which rate shall be calculated based upon an Interest Period of one month and shall be determined on a daily basis),  plus one percentage point and (c) the rate of interest announced, from time to time, within Wells Fargo at its  principal office in San Francisco as its “prime rate”, with the understanding that the “prime rate” is one of Wells  Fargo’s base rates (not necessarily the lowest of such rates) and serves as the basis upon which effective rates of  interest are calculated for those loans making reference thereto and is evidenced by the recording thereof after its  announcement in such internal publications as Wells Fargo may designate (and, if any such announced rate is below  zero, then the rate determined pursuant to this clause (c) shall be deemed to be zero).  “Benchmark”: initially, LIBOR Rate; provided that if a replacement of the Benchmark has occurred  pursuant to Subsection 4.7(c), then “Benchmark” means the applicable Benchmark Replacement to the extent that  such Benchmark Replacement has replaced such prior benchmark rate. Any reference to “Benchmark” shall include,  as applicable, the published component used in the calculation thereof.  “Benchmark Replacement”: for any Available Tenor:  (a) For purposes of Subsection 4.7(c)(i), the first alternative set forth below that can be determined by  the Administrative Agent (in consultation with the Borrower Representative):  (i) the sum of: (i) Term SOFR and (ii) 0.11448% (11.448 basis  points) for an Available Tenor of one-month’s duration, 0.26161% (26.161 basis points) for an  Available Tenor of three-months’ duration, and 0.42826% (42.826 basis points) for an Available  Tenor of six-months’ duration, or  

 

  9  (ii) the sum of: (i) Daily Simple SOFR and (ii) the spread adjustment  selected or recommended by the Relevant Governmental Body for the replacement of the tenor of  the LIBOR Rate with a SOFR-based rate having approximately the same length as the interest  payment period specified in Subsection 4.7(c)(i); and  (b) For purposes of Subsection 4.7(c)(ii), the sum of (a) the alternate benchmark rate and (b) an  adjustment (which may be a positive or negative value or zero), in each case, that has been selected by the  Administrative Agent and the Borrower Representative as the replacement for such Available Tenor of such  Benchmark giving due consideration to any evolving or then-prevailing market convention, including any applicable  recommendations made by the Relevant Governmental Body, for U.S. dollar-denominated syndicated credit facilities  at such time;   provided that, if the Benchmark Replacement as determined pursuant to clause (a) or (b) above 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.  “Benchmark Replacement Conforming Changes”: with respect to any Benchmark Replacement, any  technical, administrative or operational changes (including changes to the definition of “ABR,” 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, the applicability and  length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational  matters) that the Administrative Agent (in consultation with the Borrower Representative) 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 Transition Event”: with respect to any then-current Benchmark other than the LIBOR Rate,  the occurrence of a public statement or publication of information by or on behalf of the administrator of the then- current Benchmark, the regulatory supervisor for the administrator of such Benchmark, the Board of Governors of  the Federal Reserve System, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over  the administrator for such Benchmark, a resolution authority with jurisdiction over the administrator for such  Benchmark or a court or an entity with similar insolvency or resolution authority over the administrator for such  Benchmark, announcing or stating that (a) such administrator has ceased or will cease on a specified date to provide  all Available Tenors of such Benchmark, 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 (b) all Available Tenors of such Benchmark are or will no longer be representative of the underlying market and  economic reality that such Benchmark is intended to measure and that representativeness will not be restored.  “Beneficial Ownership Certification”: a certification regarding beneficial ownership as required by the  Beneficial Ownership Regulation.   “Beneficial Ownership Regulation”: 31 C.F.R. § 1010.230.    “Benefited Lender”:  as defined in Subsection 11.7(a).  “Benefit Plan”: any of (a) an “employee benefit plan” (as defined in Section 3(3) of ERISA) that is subject  to Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Code to which Section 4975 of the Code applies  or (c) any Person whose assets include (for purposes of the Plan Asset Regulations or otherwise for purposes of Title  I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.  “Blocked Account Agreement”:  as defined in Subsection 4.16(b)(iv).  

 

  10  “Blocked Accounts”:  as defined in Subsection 4.16(b)(iv).  “Board”:  the Board of Governors of the Federal Reserve System.  “Board of Directors”:  for any Person, the board of directors or other governing body of such Person or, if  such Person does not have such a board of directors or other governing body and is owned or managed by a single  entity, the board of directors or other governing body of such entity, or, in either case, any committee thereof duly  authorized to act on behalf of such board of directors or other governing body. Unless otherwise provided, “Board of  Directors” means the Board of Directors of the Borrower Representative.  “Borrower Materials”:  as defined in Subsection 11.2(e).  “Borrower Representative”: the Parent Borrower or such other Borrower as may be designated as the  “Borrower Representative” by the Borrowers from time to time, in each case in its capacity as Borrower  Representative pursuant to the provisions of Subsection 10.13.  “Borrowers”:  as defined in the Preamble hereto.  “Borrowing”:  the borrowing of one Type of Loan of a single Tranche and currency by the Borrowers (on a  joint and several basis), from all the Lenders having Commitments of the respective Tranche on a given date (or  resulting from a conversion or conversions on such date) having in the case of Eurodollar Loans and BA Equivalent  Loans the same Interest Period.  “Borrowing Base”:  as of any date of determination, the result of:  (a) 85% of the amount of Borrowing Base Eligible Accounts of the Borrowers and the Subsidiary  Guarantors, plus  (b) the lesser of  (i) 80% times the Borrowing Base Eligible Inventory of the  Borrowers and the Subsidiary Guarantors, valued at the lower of cost, calculated on a first-in, first- out basis, and fair market value, and  (ii) 85% times the Net Orderly Liquidation Value of Borrowing  Base Eligible Inventory of the Borrowers and the Subsidiary Guarantors, minus  (c) the amount of all Availability Reserves, minus  (d)  the outstanding principal amount of any Accordion Term Loans.  Notwithstanding anything to the contrary herein, the Borrowing Base Eligible Accounts and Borrowing  Base Eligible Inventory owned by any Loan Party organized outside the United States included in the Borrowing  Base shall not exceed $15,000,000 in the aggregate at any one time.  “Borrowing Base Certificate”:  as defined in Subsection 7.2(f).  “Borrowing Base Eligible Accounts” or “Eligible Accounts”:  those Accounts created by each of the  Borrowers and the Subsidiary Guarantors in the ordinary course of its business, arising out of its sale, lease or rental  of goods or rendition of services, that comply in all material respects with each of the representations and warranties  respecting Eligible Accounts made in the Loan Documents, and that are not excluded as ineligible by virtue of one  or more of the excluding criteria set forth below. In determining the amount to be included, Eligible Accounts shall  be calculated net of customer deposits and unapplied cash. Eligible Accounts shall not include the following:  

 

  11  (a) Accounts (A) that the Account Debtor has failed to pay within the lesser of (x) 90 days from the  original invoice date or (y) 60 days past the due date in the original invoice; provided, solely with respect to  Accounts with payment terms of 91 to 120 days, this clause (A) shall not exclude up to an aggregate amount of  $7,000,000 of such Accounts until the applicable Account Debtor has failed to pay within 30 days past the due date  in the original invoice, or (B) with payment terms of more than 120 days,  (b) Accounts owed by an Account Debtor (or its Affiliates) where 50% or more of the total amount of  all Accounts owed by that Account Debtor (or its Affiliates) are deemed ineligible under clause (a) above,  (c) Without duplication, the amount of any credit balances greater than 90 days past their original  invoice date with respect to any Account,  (d) Accounts with respect to which the Account Debtor is (i) an Affiliate of any Loan Party or (ii) an  employee or agent of any Loan Party or any Affiliate of a Loan Party (other than any agent engaged in the ordinary  course of business of selling the goods or services of any Loan Party, so long as the arrangements between such  agent and any Loan Party are on an arms’ length basis and a Loan Party is responsible for billing and collecting the  applicable Accounts),  (e) Accounts arising in a transaction wherein goods are placed on consignment and the consigned  goods relating to such Account have not yet been sold by the consignee, or Accounts arising in a transaction wherein  goods are sold pursuant to a guaranteed sale, a sale or return, a sale on approval, a bill and hold (to the extent it  remains unpaid), or any other terms by reason of which the payment by the Account Debtor may be conditional  (other than, for the avoidance of doubt, a rental or lease basis),  (f) Accounts that are not payable in Dollars or Canadian Dollars,  (g) Accounts with respect to which the Account Debtor is a Person other than a Governmental  Authority unless:  (i) the Account Debtor (A) is a natural person with a billing address in the United States or  Canada, (B) maintains its Chief Executive Office in the United States or Canada, or (C) is organized under the laws  of the United States, Canada or any state, territory, province or subdivision thereof; or (ii) (A) the Account is  supported by an irrevocable letter of credit satisfactory to the Administrative Agent, in its Permitted Discretion (as  to form, substance, and issuer or domestic confirming bank), that has been delivered to the Administrative Agent  and is directly drawable by the Administrative Agent, or (B) the Account is covered by credit insurance in form,  substance, and amount, and by an insurer, satisfactory to the Administrative Agent, in its Permitted Discretion,  (h) Accounts with respect to which the Account Debtor is (x) the government of any country or  sovereign state other than the United States and Canada, (y) any state, province, municipality, or other political  subdivision of the United States or Canada, or (z) any department, agency, public corporation, or other  instrumentality of the United States or Canada or any  entity described in the immediately preceding clause (x),  unless, with respect to any Account Debtor described in this clause (h), (i) the Account is supported by an  irrevocable letter of credit satisfactory to the Administrative Agent, in its Permitted Discretion (as to form, substance,  and issuer or domestic confirming bank) that has been delivered to the Administrative Agent and is directly  drawable by the Administrative Agent, or (ii) the Account is covered by credit insurance in form, substance, and  amount, and by an insurer, satisfactory to the Administrative Agent, in its Permitted Discretion; provided that the  Parent Borrower shall not be required to satisfy either condition set forth in the preceding clauses (i) or (ii) with  respect to Accounts with respect to which the Account Debtor is any entity described in clause (y) or (z) above in an  amount not to exceed, together with any Accounts not excluded from the Borrowing Base pursuant to the proviso in  the immediately following clause (i) below, $5,000,000 in the aggregate,  (i) Accounts with respect to which the Account Debtor is (i) the federal government of Canada or any  department, agency or instrumentality of Canada or (ii) the federal government of the United States or any  department, agency or instrumentality of the United States (exclusive, however, of Accounts with respect to which  the applicable Borrower or Subsidiary Guarantor has complied, to the reasonable satisfaction of the Administrative  Agent, in the case of clause (i) with the Financial Administration Act (Canada), and, in the case of clause (ii), the  

 

  12  Assignment of Claims Act of 1940 (31 USC Section 3727)); provided that the Parent Borrower shall not be required  to comply with the Financial Administration Act (Canada) or the Assignment of Claims Act of 1940 (31 USC  Section 3727), as applicable, with respect to Accounts described in this clause (i) shall in an amount not to exceed,  together with any Accounts not excluded from the Borrowing Base pursuant to the proviso in the immediately  preceding clause (h) above, $5,000,000 in the aggregate,  (j) Accounts (i) with respect to which the Account Debtor is a creditor of any Borrower or Subsidiary  Guarantor, has or has asserted a right of setoff, or has disputed its obligation to pay all or any portion of the Account,  to the extent (including with respect to rebates or chargebacks) of such claim, right of setoff, or dispute; provided  that Accounts with respect to which the Account Debtor is a creditor of any Borrower or Subsidiary Guarantor, has  or has asserted a right of setoff, or has disputed its obligation to pay all or any portion of the Account, in an  aggregate amount not to exceed $10,000,000 shall not be excluded by virtue of this clause if the Borrower  Representative delivers to the Administrative Agent a “no off-set” letter with respect to such Accounts in form and  substance reasonably satisfactory to the Administrative Agent, or (ii) that comprise service charges or finance  charges.  (k) Accounts with respect to an Account Debtor whose total obligations owing to the Parent Borrower  or any Subsidiary of the Parent Borrower exceed 15% (which amount may be increased to 20% in the case of (x) not  more than one Account Debtor (which Account Debtor shall have at such time a corporate credit rating from S&P  and Moody’s that is not less than investment-grade and which shall be specified in the applicable Borrowing Base  Certificate) and (y) not more than one other Account Debtor disclosed to and reasonably acceptable to the  Administrative Agent) to the extent of the obligations owing by such Account Debtor in excess of such percentages;  provided, however, that the amount of Eligible Accounts that are excluded because they exceed the foregoing  percentages shall be determined by the Administrative Agent based on all of the otherwise Eligible Accounts prior  to giving effect to any eliminations based upon the foregoing concentration limit,  (l) Accounts with respect to which the Account Debtor is insolvent, is subject to an insolvency  proceeding, has gone out of or ceased doing business, or as to which any Borrower or Subsidiary Guarantor has  received notice of an imminent insolvency proceeding unless such Account is supported by a letter of credit  satisfactory to the Collateral Agent, in its Permitted Discretion (as to form, substance (including without limitation  the face amount thereof), and issuer or domestic confirming bank), that has been delivered to the Administrative  Agent and is directly drawable by the Administrative Agent,  (m) Accounts that (x) are not subject to a valid and perfected first priority Lien in favor of the  Collateral Agent pursuant to the relevant Security Document (as and to the extent provided therein (it being agreed  that in no event shall any Excluded Assets be deemed to be Eligible Accounts hereunder)) or (y) are not ABL  Priority Collateral (as defined in the Intercreditor Agreement),  (n) Accounts with respect to which (i) the goods giving rise to such Account have not been shipped  and billed to the Account Debtor, or (ii) the services giving rise to such Account have not been performed and billed  to the Account Debtor,  (o) Accounts, the collection of which the Administrative Agent, in its Permitted Discretion, believes  to be doubtful, including by reason of the Account Debtor’s financial condition,  (p) Accounts (i) that represent the right to receive progress payments or other advance billings that are  due prior to the completion of performance by the applicable Borrower or Subsidiary Guarantor of the subject  contract for goods or services or (ii) that represent credit card sales in an aggregate amount in excess of $500,000,  (q) Accounts with respect to which the Account Debtor is a Sanctioned Person or Sanctioned Country,  (r) Accounts owned by any Immaterial Guarantor that is subject to any case, action or proceeding of  the type that would constitute an Event of Default under Subsection 9.1(f) hereof if such Guarantor were a Material  Guarantor,  

 

  13  (s) Accounts owned by a target acquired in connection with a Permitted Acquisition or Permitted  Investment, or Accounts owned by a Person that is joined to this Agreement as a Borrower (including as a Successor  Borrower) or to the applicable Guarantee and Collateral Agreement as a Subsidiary Guarantor pursuant to the  provisions hereof or thereof, as applicable, until the completion of a field examination with respect to such Accounts,  in each case, reasonably satisfactory to the Administrative Agent in its Permitted Discretion (it being understood and  agreed that the Administrative Agent will use commercially reasonable efforts to complete such field examination as  soon as practicable), or  (t) Accounts that are sold or pledged (or purported to be so sold or pledged) pursuant to any  Receivables Facility.  Notwithstanding the foregoing, the Administrative Agent may, from time to time, in the exercise of its Permitted  Discretion, on not less than 10 Business Days’ prior notice to the Parent Borrower, change the criteria for Eligible  Accounts based on:  (i) an event, condition or other circumstance arising after the Closing Date, (ii) an event,  condition or other circumstance existing on the Closing Date to the extent the Administrative Agent had no  knowledge thereof on or prior to the Closing Date (including, for the avoidance of doubt, any event, condition or  other circumstance related to COVID-19 and the impacts related thereto which occur on or after the Closing Date),  in either case under clause (i) or (ii), which adversely affects, or would reasonably be expected to adversely affect,  Eligible Accounts as determined by the Administrative Agent in the exercise of its Permitted Discretion or (iii) the  result of a field examination performed by or on behalf of the Administrative Agent (which field examination shall  be subject to the terms of Subsection 7.6). Any such change in criteria shall have a reasonable relationship to the  event, condition or other circumstance that is the basis for such change. Upon delivery of the notice of such change  pursuant to the foregoing sentence, the Administrative Agent shall be available to discuss the proposed change, and  the applicable Borrower may take such action as may be required so that the event, condition or circumstance that is  the basis for such change no longer exists, in a manner and to the extent reasonably satisfactory to the  Administrative Agent in the exercise of its Permitted Discretion. Any Accounts of the Borrowers and the Subsidiary  Guarantors that are not Eligible Accounts shall nevertheless be part of the Collateral as and to the extent provided in  the Security Documents.  “Borrowing Base Eligible Inventory” or “Eligible Inventory”: all Inventory of the Borrowers and the  Subsidiary Guarantors, except for any Inventory:  (a) that is damaged, unfit for sale, has failed inspection or has been quarantined;  (b) that is not of a type held for sale by any of the Borrowers or any Subsidiary Guarantor in the  ordinary course of business as is being conducted by each such party;  (c) (x) that is not subject to a valid and perfected first priority Lien in favor of the Collateral Agent, as  applicable, pursuant to a Security Document (as and to the extent provided therein (it being agreed that in no event  shall any Excluded Assets be deemed to be Eligible Inventory hereunder)) or (y) that is not ABL Priority Collateral;  (d) that is not owned by any of the Borrowers or any Subsidiary Guarantor;  (e) that is (x) not located on premises owned by any Borrower or any Subsidiary Guarantor or in  transit between premises owned by any Borrower or any Subsidiary Guarantor and listed on Schedule 1.1(c) (as the  same may be modified from time to time by written notice to the Administrative Agent) or (y) located on, or in  transit between, premises leased by any of the Borrowers or any applicable Subsidiary Guarantor, or stored with a  bailee, warehouseman, processor or similar Person, unless (i) the Administrative Agent has given its prior consent  thereto, (ii) with respect to Inventory described in clause (y), a Lien waiver and collateral access agreement, in form  and substance reasonably satisfactory to the Administrative Agent has been delivered to the Administrative Agent or  (iii) Availability Reserves with respect to such premises or storage reasonably satisfactory to the Administrative  Agent in its Permitted Discretion, but in no event to exceed the aggregate of three (3) months’ rent, licensing fee or  similar amount with respect to each such location, have been established with respect thereto; provided that  Inventory described in this clause (e) shall not be excluded by virtue of this clause (e) to the extent such Inventory  

 

  14  has an aggregate book value of less than 3.0% of the Borrowing Base as then in effect (based on the Borrowing Base  Certificate last delivered); provided further that (x) no Inventory located on premises that are closed or inaccessible  (during normal business hours) to the Administrative Agent shall constitute Borrowing Base Eligible Inventory or  Eligible Inventory; provided that if a premises is closed or inaccessible, as applicable, as a result of a natural disaster  or medical pandemic or epidemic, the Inventory at such premises shall continue to constitute Borrowing Base  Eligible Inventory and Eligible Inventory for a period of 5 consecutive days following the date of such closure or  inaccessibility, as applicable, so long as the Inventory at such premises does not exceed more than 10% of the  aggregate value of all Eligible Inventory in the aggregate and (y) no Inventory stored at any location holding less  than $100,000 of Inventory in the aggregate shall constitute Borrowing Base Eligible Inventory or Eligible  Inventory;  (f) that is placed on consignment (including, for the avoidance of doubt, any Specified Consignment  Inventory); provided that Inventory placed on consignment by a Borrower or Subsidiary Guarantor up to a  maximum aggregate amount of $20,000,000 shall not be excluded by virtue of this clause (f) to the extent that (i)  such Borrower or Subsidiary Guarantor has a perfected purchase money security interest in such consigned  Inventory and such security interest is assigned to the Collateral Agent and (ii) such consigned Inventory is  segregated at the consignee’s location; provided further that (x) the condition set forth in clause (i) of the preceding  proviso shall not be required to be satisfied with respect to inventory not in excess of $1,250,000 in the aggregate;  (g) that consists of display items, samples or packing or shipping materials, packaging, manufacturing  supplies or replacement or spare parts not considered for sale in the ordinary course of business;  (h) that consists of goods which have been returned by the buyer, other than goods that are  undamaged or that are resaleable in the normal course of business;  (i) that does not comply in all material respects with each of the representations and warranties  respecting Eligible Inventory made in the Loan Documents;  (j) that consists of Materials of Environmental Concern that can be transported or sold only with  licenses that are not readily available;  (k) that is covered by negotiable document of title, unless such document has been delivered to the  Administrative Agent;  (l) that is bill and hold Inventory;  (m) that is located outside the United States of America or Canada;   (n) that consists of goods that are obsolete, slow moving or restrictive items, or goods that constitute  packaging and shipping materials, or supplies used or consumed in the business of the Parent Borrower and its  Subsidiaries;  (o) that is owned by any Immaterial Guarantor that is subject to any case, action or proceeding of the  type that would constitute an Event of Default under Subsection 9.1(f) hereof if such Guarantor were a Material  Guarantor; or  (p) that was acquired in connection with a Permitted Acquisition or Permitted Investment, or such  Inventory is owned by a Person that is joined to this Agreement as a Borrower (including as a Successor Borrower)  or to the applicable Guarantee and Collateral Agreement as a Subsidiary Guarantor pursuant to the provisions hereof  or thereof, as applicable, until the completion of an Appraisal of such Inventory and the completion of a field  examination with respect to such Inventory that is reasonably satisfactory to the Administrative Agent in its  Permitted Discretion (it being understood and agreed that the Administrative Agent will use commercially  reasonably efforts to complete such field examination as soon as practicable).  

 

  15  Notwithstanding the foregoing, the Administrative Agent may, from time to time, in the exercise of its  Permitted Discretion, on not less than 10 Business Days’ prior notice to the Parent Borrower, change the criteria for  Eligible Inventory based on either:  (i) an event, condition or other circumstance arising after the Closing Date, or (ii)  an event, condition or other circumstance existing on the Closing Date to the extent the Administrative Agent had no  knowledge thereof on or prior to the Closing Date (including, for the avoidance of doubt, any event, condition or  other circumstance related to COVID-19 and the impacts related thereto which occur on or after the Closing Date),  in either case under clause (i) or (ii), which adversely affects, or would reasonably be expected to adversely affect,  Eligible Inventory in any material respect as determined by the Administrative Agent in the exercise of its Permitted  Discretion. Any such change in criteria shall have a reasonable relationship to the event, condition or other  circumstance that is the basis for such change. Upon delivery of the notice of such change pursuant to the foregoing  sentence, the Administrative Agent shall be available to discuss the proposed change, and the applicable Borrower  may take such action as may be required so that the event, condition or circumstance that is the basis for such  change no longer exists, in a manner and to the extent reasonably satisfactory to the Administrative Agent in the  exercise of its Permitted Discretion. Any Inventory of the Borrowers and the Subsidiary Guarantors that is not  Eligible Inventory shall nevertheless be part of the Collateral as and to the extent provided in the Security  Documents.  “Borrowing Date”:  any Business Day specified in a notice delivered pursuant to Subsection 2.2, 2.4, or 3.2  as a date on which the Borrower Representative requests the Lenders to make Loans hereunder or an Issuing Lender  to issue Letters of Credit hereunder.  “Business”:  (a) the design, manufacture and distribution of electrical conduit, armored electrical cable and  metal structural building framing and cable management systems, (b) the design, manufacture, fabrication and  distribution of steel tube, plate and pipe products, and (c) the provision of conceptual design, engineering and  installation services regarding strut related applications.  “Business Day”:  a day other than a Saturday, Sunday or other day on which commercial banks in New  York, New York (or with respect only to Letters of Credit issued by an Issuing Lender not located in the City of  New York, the location of such Issuing Lender) are authorized or required by law to close, except that, (a) when  used in connection with a Eurodollar Loan, “Business Day” shall mean, in the case of any Eurodollar Loan in  Dollars, any Business Day on which dealings in Dollars between banks may be carried on in London, England and  New York, New York, (b) when used in connection with a BA Equivalent Loan or Canadian Prime Rate Loan,  “Business Day” shall mean any Business Day on which dealings in Canadian Dollars between banks may be carried  on in Toronto, Canada or New York, New York and (c) in the case of any Eurodollar Loan in any Designated  Foreign Currency, a day on which dealings in such Designated Foreign Currency between banks may be carried on  in London, England, New York, New York and the principal financial center of such Designated Foreign Currency  as set forth on Schedule B.  “Canadian Defined Benefit Pension Plan”:  a Canadian Pension Plan that contains a “defined benefit  provision” as defined in subsection 147(1) of the Income Tax Act (Canada).  “Canadian Dollars” or “Cdn$”:  dollars in the lawful currency of Canada, as in effect from time to time.  “Canadian Dollar Sublimit”: $15,000,000.  “Canadian Guarantee and Collateral Agreement”:  the Canadian Guarantee and Collateral Agreement  delivered to the Collateral Agent as of August 28, 2020, substantially in the form of Exhibit B-2 hereto, as the same  may be amended, supplemented, waived or otherwise modified from time to time.  “Canadian Loan Party” means any Loan Party that is incorporated, amalgamated, continued or organized  under the laws of Canada or any province or territory thereof and “Canadian Loan Parties” means all of them.  “Canadian MEPP”: a Canadian Pension Plan that is a multi-employer or multiemployer plan as defined in  the Pension Benefits Act (Ontario) or an equivalent plan under the pension standards legislation of any other  applicable jurisdiction in Canada or pursuant to the Income Tax Act (Canada).  

 

  16  “Canadian Pension Plan”: each “registered pension plan” as that term is defined under the Income Tax Act  (Canada) or plan which qualifies as a “pension plan” that is subject to, or required to be registered under, any  Canadian federal, provincial or territorial law, that is maintained or contributed to by the Borrowers or any  Restricted Subsidiary thereof for its employees or former employees or in respect of which any Loan Party or any  Subsidiary thereof has any obligation, including a Canadian Defined Benefit Pension Plan but excluding any benefit  plans, programs or agreements that are mandated by applicable Laws, and excluding any Canadian MEPP.  “Canadian Pension Termination Event”: the (a) failure by any Loan Party to make required contributions  when due to any Canadian Pension Plan in accordance with its terms and applicable laws; (b) withdrawing by any  Loan Party from a Canadian MEPP where such Loan Party is obligated to provide any contributions or funding or  payments in respect of any deficit; (c) the voluntary full or partial wind up of a Canadian Pension Plan by any Loan  Party or any Subsidiary thereof or initiation of any action or filing to do so; (d) the institution of proceedings by any  Governmental Authority to terminate in whole or in part or have a trustee appointed to administer any Canadian  Pension Plan; or (e) any other event or condition which might constitute grounds for the termination of, winding up  or partial termination of, or the appointment of a trustee to administer, any Canadian Pension Plan; to the extent, in  each such case, that such Canadian Pension Termination Event could reasonably be expected to result in material  liabilities of the Parent Borrower or any of its Restricted Subsidiaries.  “Canadian Prime Rate”: for any day, a rate per annum equal to the greater of (a) the BA Rate existing on  such day (which rate shall be calculated based upon an Interest Period of 1 month), plus 1 percentage point, and (b)  the “prime rate” for Canadian Dollar commercial loans made in Canada as reported by Thomson Reuters under  Reuters Instrument Code <CAPRIME=> on the “CA Prime Rate (Domestic Interest Rate) – Composite Display”  page (or any successor page or such other commercially available service or source (including the Canadian Dollar  “prime rate” announced by a Schedule I bank under the Bank Act (Canada)) as Administrative Agent may designate  from time to time).  Each determination of the Canadian Prime Rate shall be made by Administrative Agent and  shall be conclusive in the absence of manifest error.  “Canadian Priority Payables”:  at any time, without duplication, (a) the full amount of the liabilities of a  Loan Party at such time which (i) have a trust or deemed trust imposed to provide for their payment or have imposed  a Lien or charge ranking or capable of ranking senior to or pari passu with Liens securing the Obligations on any of  the Borrowing Base Eligible Accounts or Borrowing Base Eligible Inventory of a Loan Party under federal,  provincial, county, district, municipal, or local law in Canada or (ii) have a right imposed to provide for payment  ranking or capable of ranking senior to or pari passu with the Obligations under Canadian law, regulation or  directive, including, in respect of (A) sales tax, goods and services tax, value added tax, harmonized sales tax,  amounts currently or past due and not paid for realty, municipal or similar taxes, (B) all amounts currently or past  due and not contributed, remitted or paid to any Canadian Pension Plans, and other pension fund obligations and  contributions whether or not due (including in respect of any unfunded liability, solvency deficiency or wind-up  deficiency, hypothetical or otherwise), (C) any amounts due and not paid for wages, vacation pay, and other  compensation amounts (including severance pay) payable under the Wage Earner Protection Program Act (Canada),  the Bankruptcy and Insolvency Act (Canada) or the Companies’ Creditors Arrangement Act (Canada), (D) amounts  due and not paid pursuant to any legislation on account of workers’ compensation, employment insurance or  vacation pay, (E) all amounts deducted or withheld and not paid and remitted when due under the Income Tax Act  (Canada), and (b) the amount equal to the percentage applicable to Inventory in the calculation of the Borrowing  Base multiplied by the aggregate value of the Eligible Inventory of such Borrower which Administrative Agent, in  its Permitted Discretion, considers is or may be subject to retention of title by a supplier or a right of a supplier to  recover possession thereof, as to which such supplier’s right has priority over the security interests, liens or charges  securing the Obligations, including, without limitation, Borrowing Base Eligible Inventory subject to the right of the  supplier to retain possession of the goods or to the proceeds of sale, whether pursuant to a contractual retention of  title clauses in favor of the supplier or otherwise, Borrowing Base Eligible Inventory subject to a right of a supplier  to repossess goods pursuant to Section 81.1 of the Bankruptcy and Insolvency Act (Canada) or any other applicable  laws granting revendication or similar rights to unpaid suppliers or any similar laws of Canada (provided, that, to the  extent such Inventory has been identified and has been excluded from Borrowing Base Eligible Inventory, the  amount owing to the supplier shall not be considered a Canadian Priority Payable).  “Canadian Priority Payables Reserves”:  reserves in respect of Canadian Priority Payables.  

 

  17  “Capital Expenditures”:  with respect to any Person for any period, the aggregate of all expenditures by  such Person and its consolidated Restricted Subsidiaries during such period (exclusive of (i) expenditures made for  Permitted Investments (ii) expenditures made for acquisitions permitted by Subsection 8.4), (iii) interest capitalized  during such period to the extent relating to capital expenditures or (iv) expenditures made with the proceeds of any  equity securities issued or capital contributions received, or Indebtedness incurred, by the Ultimate Parent or any of  its consolidated Restricted Subsidiaries) that, in each case, in accordance with GAAP, are required to be included as  capital expenditures on a consolidated statement of cash flows of such Person.  “Capital Stock”:  as to any Person, any and all shares or units of, rights to purchase, warrants or options for,  or other equivalents of or interests in (however designated) equity of such Person, including any Preferred Stock, but  excluding any debt securities convertible into such equity.  “Captive Insurance Subsidiary”:  any Subsidiary of the Parent Borrower that is subject to regulation as an  insurance company (or any Subsidiary thereof).  “Cash Equivalents”:  (a) securities issued or fully guaranteed or insured by the government of the United  States, Canada or the United Kingdom or any agency or instrumentality thereof, (b) time deposits, certificates of  deposit or bankers’ acceptances of (i) any Lender or affiliate thereof or (ii) any commercial bank having capital and  surplus in excess of $500,000,000 (or the foreign currency equivalent thereof as of the date of such investment) and  the commercial paper of the holding company of which is rated at least A-2 or the equivalent thereof by Standard &  Poor’s Ratings Group (a division of The McGraw Hill Companies Inc.) or any successor rating agency (“S&P”) or  at least P-2 or the equivalent thereof by Moody’s Investors Service, Inc. or any successor rating agency (“Moody’s”)  (or if at such time neither is issuing ratings, then a comparable rating of such other nationally recognized rating  agency as shall be approved by the Administrative Agent in its reasonable judgment), (c) repurchase obligations  with a term of not more than seven days for underlying securities of the types described in clauses (a) and (b) above  entered into with any financial institution meeting the qualifications specified in clause (b) above, (d) money market  instruments, as shall be approved by the Administrative Agent in its reasonable judgment), commercial paper or  other short-term obligations rated at least A-1 or the equivalent thereof by S&P or at least P-1 or the equivalent  thereof by Moody’s (or if at such time neither is issuing ratings, a comparable rating of another nationally  recognized rating agency as shall be approved by the Administrative Agent in its reasonable judgment), (e)  investments in money market funds complying with the risk limiting conditions of Rule 2a-7 or any successor rule  of the United States Securities and Exchange Commission under the Investment Company Act, and (f) investments  similar to any of the foregoing denominated in foreign currencies approved by the Board of Directors, in each case  provided in clauses (a), (b), (c) and (f) above only, maturing within twelve months after the date of acquisition.  “Cash Flow Priority Collateral”:  “Term Loan Priority Collateral” as defined in the Intercreditor Agreement  as in effect on the date hereof or modified with the consent of the Required Lenders and whether or not the same  remains in full force and effect.   “Cash Flow Priority Obligations”:  “Term Loan Obligations” as defined in the Intercreditor Agreement as  in effect on the date hereof or modified with the consent of the Required Lenders and whether or not the same  remains in full force and effect.  “Cash Management Arrangements”:  any agreement or arrangement relating to treasury, depositary and  cash management services or automated clearinghouse transfer of funds.  “Cash Management Party”:  any Bank Products Affiliate party to a Bank Products Agreement.  “CDD Rule”:  the Customer Due Diligence Requirements for Financial Institutions issued by the U.S.  Department of Treasury Financial Crimes Enforcement Network under the Bank Secrecy Act (such rule published  May 11, 2016 and effective May 11, 2018, as amended from time to time).  “Change in Law”:  the occurrence after the date of this Agreement of: (a) the adoption or effectiveness of  any law, rule, regulation, judicial ruling, judgment or treaty, (b) any change in any law, rule, regulation, judicial  ruling, judgment or treaty or in the administration,  interpretation, implementation or application by any  

 

  18  Governmental Authority of any law, rule, regulation, guideline or treaty, or (c) the making or issuance by any  Governmental Authority of any request, rule, guideline or directive, whether or not having the force of law;  provided, that notwithstanding anything in this Agreement 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 concerning capital adequacy 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 shall, in each case, be deemed to be a “Change in Law,”  regardless of the date enacted, adopted or issued.  “Change of Control”:  (i) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of  the Exchange Act as in effect on the Closing Date) shall be the “beneficial owner” of (A) so long as Holdings is a  Subsidiary of any Parent Entity, shares or units of Voting Stock having more than 50.0% of the total voting power of  all outstanding shares of such Parent Entity (other than a Parent Entity that is a Subsidiary of another Parent Entity)  and (B) if Holdings is not a Subsidiary of any Parent Entity, shares or units of Voting Stock having more than 50.0%  of the total voting power of all outstanding shares of Holdings; (ii) Holdings shall cease to own, directly or  indirectly, 100.0% of the Capital Stock of the Parent Borrower (or any Successor Borrower), unless Holdings and  the Parent Borrower shall have been merged, consolidated or amalgamated with one another in accordance with  Subsection 8.2; or (iii) the occurrence of a “Change of Control” as defined in the Term Loan Credit Agreement.  “Chattel Paper”:  “chattel paper” (as such term is defined in Article 9 of the UCC).  “Chief Executive Office”:  with respect to any Person, the location from which such Person manages the  main part of its business operations or other affairs.  “Closing Date”:  August 28, 2020.  “Code”:  the Internal Revenue Code of 1986, as amended from time to time.  “Collateral”:  all assets of the Loan Parties, now owned or hereafter acquired, upon which a Lien is  purported to be created by any Security Document.  “Collateral Agent”:  as defined in the Preamble hereto, and shall include any successor to the Collateral  Agent appointed pursuant to Subsection 10.9.  “Committed Lenders”:  Wells Fargo, JPMorgan Chase Bank, N.A., Fifth Third Bank, National Association,  Royal Bank of Canada, Credit Suisse AG, New York Branch and Citibank, N.A.   “Commitment”:  as to any Lender, the commitment, if any, of such Lender to make Extensions of Credit to  the Borrowers in the amount set forth opposite such Lender’s name in Schedule A hereto or as may subsequently be  set forth in the Register from time to time. The amount of the aggregate Commitments of the Lenders as of the  Closing Date is $325,000,000.  “Commitment Percentage”:  of any Lender at any time shall be that percentage which is equal to a fraction  (expressed as a percentage) the numerator of which is the Commitment of such Lender at such time and the  denominator of which is the aggregate Commitments at such time; provided that for purposes of Subsections 4.15(d)  and 4.15(e), the denominator shall be calculated disregarding the Commitment of any Defaulting Lender to the  extent its Swingline Exposure or L/C Obligations are reallocated to the Non-Defaulting Lenders; provided, further,  that if any such determination is to be made after the Commitments (and the related Commitments of the Lenders)  has (or have) terminated, the determination of such percentages shall be made immediately before giving effect to  such termination.  “Commitment Period”:  the period from and including the Closing Date to but not including the  Termination Date, or such earlier date as the Commitments shall terminate as provided herein.  

 

  19  “Commodity Exchange Act”:  the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time  to time, and any successor statute thereto.  “Commonly Controlled Entity”:  an entity, whether or not incorporated, which is under common control  with the Parent Borrower within the meaning of Section 4001 of ERISA or is part of a group which includes the  Parent Borrower and which is treated as a single employer under Section 414(b) or (c) of the Code or, solely for  purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Sections  414(m) and (o) of the Code.  “Compliance Certificate”:  as defined in Subsection 7.2(b).  “Concentration Account”:  any concentration account maintained by any of the Borrowers or Subsidiaries  that are Guarantors (other than any such concentration account if (i) such concentration account is an Excluded  Account or (ii) all of the funds and other assets owned by such Borrower or Subsidiary that is a Guarantor held in  such concentration account are excluded from the Collateral pursuant to any Security Document, including Excluded  Assets) into which the funds in any DDA are transferred on a periodic basis as provided for in Subsection 4.16(b).   All funds in any Concentration Account shall be conclusively presumed to be Collateral and proceeds of Collateral  and the Agents and the Lenders shall have no duty to inquire as to the source of the amounts on deposit in such  Concentration Account, subject to the Security Documents and the Intercreditor Agreement.  “Conduit Lender”:  any special purpose corporation organized and administered by any Lender for the  purpose of making Loans otherwise required to be made by such Lender and designated by such Lender in a written  instrument delivered to the Administrative Agent (a copy of which shall be provided by the Administrative Agent to  the Borrower Representative on request); provided that the designation by any Lender of a Conduit Lender shall not  relieve the designating Lender of any of its obligations under this Agreement, including its obligation to fund a Loan  if, for any reason, its Conduit Lender fails to fund any such Loan, and the designating Lender (and not the Conduit  Lender) shall have the sole right and responsibility to deliver all consents and waivers required or requested under  this Agreement with respect to its Conduit Lender, and provided, further, that no Conduit Lender shall (a) be entitled  to receive any greater amount pursuant to any provision of this Agreement, including without limitation Subsection  4.10, 4.11, 4.12 or 11.5, than the designating Lender would have been entitled to receive in respect of the extensions  of credit made by such Conduit Lender if such designating Lender had not designated such Conduit Lender  hereunder, (b) be deemed to have any Commitment or (c) be designated if such designation would otherwise  increase the costs of any Facility to any Borrower.  “Confidential Information Memorandum”:  that certain Atkore Memo dated July 28, 2020 and furnished to  the Lenders.  “Consolidated Fixed Charge Coverage Ratio”: (a) as of the last day of any period, the ratio of   (a) an amount equal to   (i) EBITDA for such period minus  (ii) the unfinanced portion of all Capital Expenditures (excluding any Capital  Expenditure made in an amount equal to all or part of the proceeds, applied within twelve months  of receipt thereof, of   (x) any casualty insurance, condemnation or eminent domain or   (y) any sale of assets (other than Inventory)) of Ultimate Parent and its  consolidated Restricted Subsidiaries during such period, to   (b) the sum, without duplication, of   

 

  20  (i) Debt Service Charges payable in cash by Ultimate Parent and its consolidated  Restricted Subsidiaries during such period plus   (ii) federal, state and foreign income taxes paid in cash by Ultimate Parent and its  consolidated Restricted Subsidiaries (net of refunds received) for the period of four full fiscal  quarters ending on such date plus   (iii) the aggregate amount of Restricted Payments made pursuant to Subsection 8.3(l)  during such period plus  (iv)  cash paid by Ultimate Parent during the relevant period pursuant to any of clauses (f)  and (i) of Subsection 8.3;   provided that upon the date on which any Liquidity Event first occurs and while the same shall be continuing, the  Consolidated Fixed Charge Coverage Ratio shall be calculated as of the end of the most recently completed fiscal  quarter of Ultimate Parent ended on or after June 30, 2020, for which financial statements shall have been required  to be delivered under Subsection 7.1(a) or (b).  “Consolidated Interest Expense”:  for any period, an amount equal to   (a) interest expense (accrued and paid or payable in cash for such period, and in any event excluding  any amortization or write off of financing costs) on Indebtedness of the Ultimate Parent and its consolidated  Restricted Subsidiaries for such period minus   (b) interest income (accrued and received or receivable in cash for such period) of the Ultimate Parent  and its consolidated Restricted Subsidiaries for such period, in each case determined on a consolidated basis in  accordance with GAAP.  “Consolidated Net Income”:  for any period, the net income (loss) of Ultimate Parent and its Restricted  Subsidiaries, determined on a consolidated basis in accordance with GAAP and before any reduction in respect of  Preferred Stock dividends; provided that, without duplication, there shall not be included in such Consolidated Net  Income:  (a) any net income (loss) of any Person if such Person is not the Ultimate Parent or a Restricted  Subsidiary, except that (A) Ultimate Parent’s or any Restricted Subsidiary’s net income for such period shall be  increased by the aggregate amount actually dividended or distributed or that (as determined by the Borrower in good  faith) could have been dividended or distributed by such Person during such period to Ultimate Parent or a  Restricted Subsidiary as a dividend or other distribution (after taking into account any restrictions, directly or  indirectly, on the payment of dividends or the making of similar distributions by such Restricted Subsidiary, directly  or indirectly, to Ultimate Parent by operation of the terms of such Restricted Subsidiary’s charter or any agreement,  instrument, judgment, decree, order, statute or governmental rule or regulation applicable to such Restricted  Subsidiary or its stockholders), to the extent not already included therein, and (B) Ultimate Parent’s or any  Restricted Subsidiary’s equity in the net loss of such Person shall be included to the extent of the aggregate  Investment of Ultimate Parent or any of its Restricted Subsidiaries in such Person,  (b) [reserved],  (c) (x) any gain or loss realized upon the sale, abandonment or other disposition of any asset of  Ultimate Parent or any Restricted Subsidiary (including pursuant to any sale/leaseback transaction) that is not sold,  abandoned or otherwise disposed of in the ordinary course of business (as determined by the Parent Borrower in  good faith) and (y) any gain or loss realized upon the disposal, abandonment or discontinuation of operations of  Ultimate Parent or any Restricted Subsidiary,  

 

  21  (d) any extraordinary, unusual or nonrecurring gain, loss or charge (including fees, expenses and  charges associated with the Transactions and any acquisition, merger or consolidation after the Closing Date or any  accounting change),  (e) the cumulative effect of a change in accounting principles,  (f) all deferred financing costs written off and premiums paid in connection with any early  extinguishment of Indebtedness or Hedging Obligations or other derivative instruments,  (g) any unrealized gains or losses in respect of Hedging Agreements,  (h) any unrealized foreign currency translation gains or losses, including in respect of Indebtedness of  any Person denominated in a currency other than the functional currency of such Person,  (i) any non-cash compensation charge arising from any grant of limited liability company interests,  stock, stock options or other equity based awards,  (j) to the extent otherwise included in Consolidated Net Income, any unrealized foreign currency  translation gains or losses, including in respect of Indebtedness or other obligations of Ultimate Parent or any  Restricted Subsidiary owing to the Parent Borrower or any Restricted Subsidiary,  (k) any non-cash charge, expense or other impact attributable to application of the purchase or  recapitalization method of accounting (including the total amount of depreciation and amortization, cost of sales or  other non-cash expense resulting from the write-up of assets to the extent resulting from such purchase or  recapitalization accounting adjustments), non-cash charges for deferred tax valuation allowances and non-cash gains,  losses, income and expenses resulting from fair value accounting required by the applicable standard under GAAP,  (l) expenses related to the conversion of various employee benefit programs in connection with the  Transactions, and non-cash compensation related expenses, and  (m) to the extent covered by insurance and actually reimbursed (or the Parent Borrower has  determined that there exists reasonable evidence that such amount will be reimbursed by the insurer and such  amount is not denied by the applicable insurer in writing within 180 days and is reimbursed within 365 days of the  date of such evidence (with a deduction in any future calculation of Consolidated Net Income for any amount so  added back to the extent not so reimbursed within such 365-day period)), any expenses with respect to liability or  casualty events or business interruption,  provided, further, that the exclusion of any item pursuant to the foregoing clauses (a) through (m) shall also exclude  the tax impact of any such item, if applicable.  In the case of any unusual or nonrecurring gain, loss or charge not included in Consolidated Net Income  pursuant to clause (d) above in any determination thereof, the Parent Borrower will deliver a certificate of a  Responsible Officer to the Administrative Agent promptly after the date on which Consolidated Net Income is so  determined, setting forth the nature and amount of such unusual or nonrecurring gain, loss or charge.    “Consolidated Total Assets”:  as of any date of determination, the total assets, in each case reflected on the  consolidated balance sheet of Ultimate Parent and its Restricted Subsidiaries as at the end of the most recently ended  fiscal quarter of Ultimate Parent for which financial statements have been or are required to have been delivered  pursuant to Subsection 7.1(a) or 7.1(b), determined on a consolidated basis in accordance with GAAP (and, in the  case of any determination relating to any incurrence of Indebtedness or Liens or any Investment or any acquisition  pursuant to Subsection 8.4, on a Pro Forma Basis including any property or assets being acquired in connection  therewith).  “Contingent Obligation”: with respect to any Person, any obligation of such Person guaranteeing any  obligation that does not constitute Indebtedness (a “primary obligation”) of any other Person (the “primary obligor”)  

 

  22  in any manner, whether directly or indirectly, including any obligation of such Person, solely for so long as and to  the extent such obligation is contingent (and not fixed or known), (1) to purchase any such primary obligation or any  property constituting direct or indirect security therefor, (2) to advance or supply funds (a) for the purchase or  payment of any such primary obligation, or (b) to maintain working capital or equity capital of the primary obligor  or otherwise to maintain the net worth or solvency of the primary obligor, or (3) to purchase property, securities or  services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary  obligor to make payment of such primary obligation against loss in respect thereof.   “Contractual Obligation”:  as to any Person, any provision of any material security issued by such Person  or of any material agreement, instrument or other undertaking to which such Person is a party or by which it or any  of its property is bound.  “Core Concentration Account”:  as defined in Subsection 4.16(c).  “Covered Liability”:  as defined in Subsection 11.23.   “Covered Party”:  as defined in Subsection 11.24.  “COVID-19”: the novel coronavirus disease, COVID-19 virus (SARS-COV-2 and all related strains and  sequences) or mutation (or antigenic shift or drift) thereof or a disease or public health emergency resulting  therefrom.  “Credit Agreement Refinancing Indebtedness”:  any secured Indebtedness incurred or otherwise obtained  by the Borrowers under and in accordance with the terms of this Agreement in the form of revolving commitments  or term loans in exchange for, or to extend, renew, replace or refinance, in whole or part, existing Accordion Term  Loans, outstanding Revolving Credit Loans or Commitments hereunder (including any successive Credit Agreement  Refinancing Indebtedness obtained pursuant to a prior Refinancing Amendment) (“Refinanced Debt”); provided that:  (a) such Refinanced Debt shall be repaid and the commitments with respect thereto terminated and all  accrued interest, fees and premiums (if any) in connection therewith shall be paid, on the date such Credit  Agreement Refinancing Indebtedness is issued, incurred or obtained; provided that to the extent that such  Refinanced Debt consists, in whole or in part, of Commitments or Other Revolving Credit Commitments (or  Revolving Credit Loans, Other Revolving Credit Loans or Swingline Loans incurred pursuant to any Commitments  or Other Revolving Credit Commitments), such Commitments or Other Revolving Credit Commitments, as  applicable, shall be terminated, the proceeds of such Credit Agreement Refinancing Indebtedness shall be applied to  the prepayment of outstanding Term Loans, outstanding Revolving Credit Loans, or reduction of Commitments in  respect of the Revolving Credit Facility being so refinanced on a pro rata basis within each Tranche being  refinanced and all accrued fees in connection therewith shall be paid, on the date such Credit Agreement  Refinancing Indebtedness is issued, incurred or obtained;  (b) such Indebtedness (including, if such Indebtedness includes any Other Revolving Credit  Commitments, the unused portion of such Other Revolving Credit Commitments) shall:  (i) be governed by the terms of this Agreement (as amended by  any Refinancing Amendment) and the Security Documents and no other loan agreement, note  purchase agreement or other similar agreement and the Lenders with respect to such Indebtedness  shall execute an assumption agreement, reasonably satisfactory to the Administrative Agent,  pursuant to which such Lenders agree to be bound by the terms of this Agreement as Lenders;  provided that the terms and conditions of such Indebtedness (as amended by such Refinancing  Amendment but excluding pricing and optional prepayment or redemption terms) shall be  substantially similar to, or (taken as a whole) not more favorable to the investors providing such  Indebtedness than the terms and conditions of the applicable Refinanced Debt as reasonably  determined by the Parent Borrower in good faith (except with respect to any terms (including  covenants) and conditions contained in such Indebtedness that are applicable only after the then  applicable Termination Date); provided, further, that the terms and conditions applicable to such  

 

  23  Indebtedness may provide for any additional or different financial or other covenants or other  provisions that are agreed between the Parent Borrower and the applicable Lenders and applicable  only during periods after the Termination Date that is in effect on the date such Credit Agreement  Refinancing Indebtedness is incurred or obtained,  (ii) be in an original aggregate principal amount not greater than  the aggregate principal amount of the Refinanced Debt except by any amount equal to unpaid  accrued interest and premium (including applicable prepayment penalties) thereon plus  underwriting discounts, original issue discount, commissions, fees and other costs and expenses  incurred in connection therewith (and, in the case of Refinanced Debt consisting, in whole or in  part, of unused Commitments or Other Revolving Credit Commitments, the amount thereof),  (iii) not mature or have scheduled amortization or commitment  reductions, as applicable, sooner or greater than the same under such Refinanced Debt and not be  subject to mandatory redemption, repurchase, prepayment or sinking fund obligation (except  customary prepayments with respect to lender exposure or outstandings exceeding commitments  or the borrowing base and customary asset sale or change of control provisions), in each case prior  to the Termination Date,  (iv) only be secured by assets consisting of Collateral on a pari  passu basis (but without regard to the control of remedies) with the Obligations and not be secured  by any property or assets of Holdings, the Borrowers or any Restricted Subsidiary other than the  Collateral; provided that such Obligations (including the Credit Agreement Refinancing  Indebtedness) shall be secured by the Security Documents and the Lenders with respect to such  Credit Agreement Refinancing Indebtedness shall have authorized the Collateral Agent to act as  their Agent to take any action with respect to any applicable Collateral or Security Documents  which may be necessary to perfect and maintain perfected the security interest in and liens upon  the Collateral granted pursuant to the Security Documents,  (v) rank pari passu in right of payment and of security with the  Obligations hereunder (including being entitled to the benefits of the same place in the waterfall as  the Refinanced Loans and Commitments) and at any time that a Default or an Event of Default  exists, all prepayments of Other Term Loans and Other Revolving Credit Loans (other than in  respect of the Last-Out Tranche) shall be made on a pro rata basis,  (vi) be part of, and count against, the Borrowing Base on the same  basis as the Refinanced Debt and  (vii) not refinance the commitments in respect of the Last-Out  Tranche unless (1) the Loans comprising the Last-Out Tranche are the only Loans outstanding and  (2) the Commitments for the Revolving Credit Facility (excluding the Last-Out Tranche) have  been terminated.  “Customary Permitted Liens”:  as defined in Subsection 8.14(c).   “Daily One Month LIBOR Rate”: as to any day, the rate per annum as published by ICE Benchmark  Administration Limited (or any successor or other commercially available source of the London interbank offered  rate as the Administrative Agent may designate from time to time) as of 11:00 a.m., London time, on such day (or,  for any day that is not a Business Day, the immediately preceding Business Day) for Dollar deposits for a one- month period (and, if any such published rate is below zero, then the rate determined pursuant to this definition shall  be deemed to be zero); provided that, upon the occurrence of a Benchmark Transition Event, the Benchmark  Replacement will replace such rate per annum. Each determination of Daily One Month LIBOR Rate shall be made  by the Administrative Agent and shall be conclusive in the absence of manifest error.  

 

  24  “Daily Rate Loans”: Loans the rate of interest applicable to which is based upon the Daily One Month  LIBOR Rate.  “Daily Simple SOFR”: 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 this rate  recommended by the Relevant Governmental Body for determining “Daily Simple SOFR” for syndicated business  loans; provided, that if the Administrative Agent (in consultation with the Borrower Representative) 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.  “DDA”:  any checking or other demand deposit bank account maintained by any Borrower or Subsidiary  Guarantor (other than any such checking or other demand deposit account if (i) such checking or other demand  deposit account is an Excluded Account or (ii) all of the funds and other assets owned by a Borrower or Subsidiary  Guarantor held in such checking or other demand deposit account are excluded from the Collateral pursuant to any  Security Document, including Excluded Assets) into which the proceeds of ABL Priority Collateral are deposited or  are expected to be deposited. All funds in any DDA shall be conclusively presumed to be Collateral and proceeds of  Collateral and the Agents and the Lenders shall have no duty to inquire as to the source of the amounts on deposit in  such DDA, subject to the Security Documents and the Intercreditor Agreement.  “Debt Obligations”:  with respect to any Indebtedness, any principal, premium (if any), interest (including  interest accruing on or after the filing of any petition in bankruptcy or for reorganization whether or not a claim for  post-filing interest is allowed in such proceedings), fees, charges, expenses, reimbursement obligations, other  monetary obligations of any nature and all other amounts payable thereunder or in respect thereof.  “Debt Service Charges”:  for any period, the sum of (a) Consolidated Interest Expense plus (b) scheduled  principal payments required to be made (after giving effect to any prepayments paid in cash that reduce the amount  of such required payments) on account of Indebtedness of Ultimate Parent and its consolidated Restricted  Subsidiaries of the type permitted by Subsections 8.13(a), 8.13(c) and (to the extent relating to any renewal,  extension, refinancing or refunding of the foregoing) 8.13(i)(ii) hereof including the full amount of any non-recourse  Indebtedness (excluding, in each case, principal payments of the obligations hereunder, payments to reimburse any  drawings under any commercial letters of credit, and any payments on Indebtedness required to be made on the final  maturity date thereof, but including any obligations in respect of Financing Leases) for such period plus (c)  scheduled mandatory payments on account of Disqualified Capital Stock of Ultimate Parent and its consolidated  Restricted Subsidiaries (whether in the nature of dividends, redemption, repurchase or otherwise) required to be  made during such period, in each case determined on a consolidated basis in accordance with GAAP.  “Default”:  any of the events specified in Subsection 9.1, whether or not any requirement for the giving of  notice (other than, in the case of Subsection 9.1(e), a Default Notice), the lapse of time, or both, or any other  condition specified in Subsection 9.1, has been satisfied.  “Default Notice”:  as defined in Subsection 9.1(e).  “Defaulting Lender”:  any Lender or Agent whose acts or failure to act, whether directly or indirectly,  cause it to meet any part of the definition of Lender Default.  “Defaulting Lender Rate”:  (a) for the first three days from and after the date the relevant payment is due,  the Base Rate, and (b) thereafter, the interest rate then applicable to Revolving Credit Loans that are ABR Loans  (inclusive of the Applicable Margin applicable thereto).  “Delaware Divided LLC”:  any Delaware LLC which has been formed upon the consummation of a  Delaware LLC Division.  “Delaware LLC”:  any limited liability company organized or formed under the laws of the State of  Delaware.  

 

  25  “Delaware LLC Division”:  the statutory division of any Delaware LLC into two or more Delaware LLCs  pursuant to Section 18-217 of the Delaware Limited Liability Company Act.  “Deposit Account”:  any “deposit account” (as such term is defined in Article 9 of the UCC).  “Designated Account”: the Deposit Account of the Borrower Representative identified on Schedule 2.9 (or  such other Deposit Account of the Borrower Representative located at the Designated Account Bank that has been  designated as such, in writing, by the Borrower Representative to the Administrative Agent).  “Designated Account Bank”: the financial institution specified on Schedule 2.9 (or such other bank that is  located within the United States that has been designated as such, in writing, by the Borrower Representative to the  Administrative Agent).  “Designated Cash Management Agreements”:  Bank Products Agreements with any Cash Management  Party that (i) are secured by Liens on ABL Priority Collateral pursuant to the Security Documents, and (ii) have  been designated as a “Designated Cash Management Agreement” by the Borrower Representative to the  Administrative Agent in accordance with Subsection 11.22(a); provided that each Bank Products Agreement listed  on Schedule 1.1(h) shall be deemed a “Designated Cash Management Agreement” on the Closing Date.  “Designated Cash Management Reserves”:  such reserves as may be established or modified by the  Administrative Agent in accordance with Subsection 11.22(a) with respect to anticipated monetary obligations under  Designated Cash Management Agreements owing to any  Cash Management Party in the amount specified by the  Borrower Representative in writing to the Administrative Agent in a notice delivered pursuant to Subsection  11.22(a), which amount shall, subject to the restrictions set forth in Subsection 11.22(a), be increased or decreased  with respect to any existing Designated Cash Management Agreement at any time upon further written notice from  the Borrower Representative to the Administrative Agent in accordance with the last sentence of Subsection  11.22(a).  “Designated Foreign Currency”:  Canadian Dollars and the lawful currency of any country in which any  Loans are made, in each case, in the sole discretion of the Administrative Agent and the Lenders making such Loans.  “Designated Hedging Agreements”:  Interest Rate Protection Agreements, Hedging Agreements or other  Permitted Hedging Arrangements with any Hedging Party that (i) are secured by Liens on ABL Priority Collateral  pursuant to the Security Documents and (ii) have been designated as a “Designated Hedging Agreement” by the  Borrower Representative to the Administrative Agent in accordance with Subsection 11.22(a); provided that each  Interest Rate Protection Agreement, Hedging Agreement or other Permitted Hedging Arrangement listed on  Schedule 1.1(h) shall be deemed a “Designated Hedging Agreement” on the Closing Date.  “Designated Hedging Reserves”:  such reserves as may be established or modified by the Administrative  Agent in accordance with Subsection 11.22(a) with respect to anticipated monetary obligations under Designated  Hedging Agreements owing to any Hedging Party in the amount specified by the Borrower Representative in  writing to the Administrative Agent in a notice delivered pursuant to Subsection 11.22(a), which amount shall,  subject to the restrictions set forth in Subsection 11.22(a), be increased or decreased with respect to any existing  Designated Hedging Agreement at any time upon further written notice from the Borrower Representative to the  Administrative Agent in accordance with the last sentence of Subsection 11.22(a).  “Designated Noncash Consideration”:  the Fair Market Value of noncash consideration received by the  Ultimate Parent or one of its Restricted Subsidiaries in connection with an Asset Sale that is so designated as  Designated Noncash Consideration pursuant to a certificate signed by a Responsible Officer of the Parent Borrower,  setting forth the basis of such valuation.  “Designated Vendor Financing Arrangements”:  Vendor Financing Arrangements that (i) are secured by  Liens on ABL Priority Collateral pursuant to the Security Documents and (ii) have been designated as a “Designated  Vendor Financing Arrangement” by the Borrower Representative to the Administrative Agent in accordance with  

 

  26  Subsection 11.22(a); provided that each Vendor Financing Arrangement listed on Schedule 1.1(h) shall be deemed a  “Designated Vendor Financing Arrangement” on the Closing Date.  “Designated Vendor Financing Reserves”:  such reserves as may be established or modified by the  Administrative Agent from time to time in its Permitted Discretion as being appropriate to reflect the liabilities and  obligations of the Loan Parties and their Subsidiaries under Designated Vendor Financing Arrangements.  “Designation Date”:  as defined in Subsection 2.8(e).  “Dilution”:  as of any date of determination, a percentage, based upon the experience of the immediately  prior 12 months, that is the result of dividing the Dollar amount of (a) bad debt  write-downs, discounts, advertising  allowances, credits, or other dilutive items with respect to Borrowers’ Accounts during such period, by (b)  Borrowers’ billings with respect to Accounts during such period.  “Dilution Reserve”:  as of any date of determination, an amount sufficient to reduce the advance rate  against Eligible Accounts by the extent to which Dilution is in excess of 5.0%.  “Discharge”: as defined in the definition of “Pro Forma Basis” or “Pro Forma Compliance” in this  Subsection 1.1.  “Disinterested Director”:  as defined in Subsection 8.11.  “Disposition”:  as defined in the definition of the term “Asset Sale” in this Subsection 1.1.  “Disqualified Capital Stock”:  with respect to any Person, any Capital Stock (other than Management Stock)  which by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable or  exercisable), or upon the happening of any event (other than following the occurrence of a Change of Control or  other similar event described under such terms as a “change of control” or an Asset Sale or other disposition),  (a) matures or is mandatorily redeemable pursuant to a sinking fund obligation or otherwise, (b) is convertible or  exchangeable for Indebtedness or Disqualified Capital Stock or (c) is redeemable at the option of the holder thereof  (other than following the occurrence of a Change of Control or other similar event described under such terms as a  “change of control” or an Asset Sale or other disposition), in whole or in part, in each case on or prior to the  Termination Date; provided that Capital Stock issued to any employee benefit plan, or by any such plan to any  employees of the Ultimate Parent or any Subsidiary, shall not constitute Disqualified Capital Stock solely because it  may be required to be repurchased or otherwise acquired or retired in order to satisfy applicable statutory or  regulatory obligations.  “Disqualified Lender”:  (i) any competitor of the Parent Borrower and its Restricted Subsidiaries that is in  the same or a similar line of business as the Parent Borrower and its Restricted Subsidiaries or any controlled  affiliate of such competitor designated in writing by the Borrower Representative to the Administrative Agent from  time to time and (ii) any Affiliate of any Lender that is engaged as principal primarily in private equity, venture  capital or mezzanine financing.  “Dollar Equivalent”:  at the time of determination thereof (a) with respect to Dollars, the amount in Dollars,  and (b) with respect to any amount denominated in any foreign currency (including, without limitation, any  Designated Foreign Currency), an amount in Dollars equivalent to such principal amount or such other amount  calculated on the basis of the Spot Rate of Exchange.  “Dollars” and “$”:  dollars in the lawful currency of the United States of America.  “Domestic Subsidiary”:  any Restricted Subsidiary of Ultimate Parent which is not a Foreign Subsidiary.  “Dominion Event”:  the determination by the Administrative Agent that the Specified Availability for any  three (3) consecutive Business Days is less than the greater of (x) $22,000,000 and (y) 10.0% of Availability at such  time; provided that the Administrative Agent has notified the Borrower Representative thereof; provided, further,  

 

  27  that if the occurrence of a Dominion Event shall be due solely to a fluctuation in currency exchange rates occurring  within the two Business Day period immediately preceding such occurrence, and one or more of the Borrowers,  within two Business Days following receipt of such notice from the Administrative Agent, repay Loans in an  amount such that the Specified Availability following such payment exceeds the greater of (x) $22,000,000 and  (y) 10.0% of Availability at such time, a Dominion Event shall be deemed not to have occurred. The occurrence of a  Dominion Event shall be deemed continuing notwithstanding that Specified Availability may thereafter exceed the  amount set forth in the preceding sentence unless and until for 30 consecutive days the Specified Availability exceed  the greater of (x) $22,000,000 and (y) 10.0% of Availability at such time, in which event a Dominion Event shall no  longer be deemed to be continuing; provided that a Dominion Event may not be cured as contemplated by this  sentence more than three (3) times in any four fiscal quarter period.  “Drawing Document”: any Letter of Credit or other document presented for purposes of drawing under any  Letter of Credit, including by electronic transmission such as SWIFT, electronic mail, facsimile or computer  generated communication.  “Early Opt-in Effective Date”: with respect to any Early Opt-in Election, the sixth (6th) Business Day after  the date notice of such Early Opt-in Election 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 is provided to the Lenders, written notice of objection to such Early Opt-in Election from Lenders  comprising the Required Lenders.  “Early Opt-in Election” means the occurrence of:  (a) a notification by the Administrative Agent in consultation with the Borrower Representative to (or the  request by the Borrower Representative to the Administrative Agent to notify) each of the other parties hereto that at  least five (5) currently outstanding U.S. 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 Representative to trigger a fallback from  the LIBOR Rate and the provision by the Administrative Agent of written notice of such election to the Lenders.  “EBITDA”: for any period, the sum of   (a) Consolidated Net Income for such period adjusted   (i) to exclude the following items (without duplication) of income  or expense to the extent that such items are included in the calculation of Consolidated Net Income:    (A) Consolidated Interest Expense,   (B) any non-cash expenses and charges,   (C) total income tax expense,   (D) depreciation expense,   (E) the expense associated with amortization of  intangible and other assets (including amortization or other expense recognition of any  costs associated with asset write-ups in accordance with SFAS Nos. 141 and 142),   (F) non-cash provisions for reserves for discontinued  operations,   

 

  28  (G) any extraordinary, unusual or non-recurring  gains or losses or charges or credits, including but not limited to any expenses relating to  the Transactions and any non-recurring or extraordinary items paid or accrued during  such period relating to deferred compensation owed to any Management Investor that  was cancelled, waived or exchanged in connection with the grant to such Management  Investor of the right to receive or acquire shares of common stock of Holdings or any  Parent Entity,  (H) any gain or loss associated with the sale or write- down of assets not in the ordinary course of business,   (I) any income or loss accounted for by the equity  method of accounting (except in the case of income to the extent of the amount of cash  dividends or cash distributions actually paid to the Ultimate Parent or any of its  Restricted Subsidiaries by the entity accounted for by the equity method of accounting),   (J) the amount of any non-cash loss or gain  attributable to non-controlling interests,   (K) the cumulative effect of a change in accounting  principles,   (L) any unrealized foreign currency transaction gains  or losses in respect of Indebtedness of any Person denominated in a currency other than  the functional currency of such Person,   (M) any unrealized foreign currency translation or  transaction gains or losses in respect of Indebtedness or other obligations of the Ultimate  Parent or any Restricted Subsidiary owing to the Ultimate Parent or any Restricted  Subsidiary, and   (N) [reserved],  (ii) minus the amount of all dividends paid by Ultimate Parent  during the relevant period pursuant to any of clauses (b) and (c) of Subsection 8.3 (in each case,  unless and to the extent (x) the amount paid with such dividends by Holdings or any Parent Entity  would not, if the respective expense or other item had been incurred directly by Ultimate Parent,  have reduced EBITDA determined in accordance with the foregoing provisions of this definition  or (y) such dividend is paid by Ultimate Parent in respect of an expense or other item that has  resulted in, or will result in, a reduction of EBITDA, as calculated pursuant to clause (a) above),  plus   (b) the amount of net “run-rate” cost savings, operating expense reductions, operating improvements  and synergies of Ultimate Parent, Holdings, the Borrowers and the Borrowers’ Restricted Subsidiaries related to  mergers and other business combinations, acquisitions, divestitures, restructurings, cost savings initiatives and other  similar initiatives projected by the Parent Borrower in good faith to be realized as the result of actions taken or to be  taken on or prior to the date that is 18 months after the Closing Date, or 18 months after the consummation of any  operational change, respectively, and prior to or during such period (calculated on a Pro Forma Basis as though such  cost savings had been realized on the first day of such period) (including cost savings projected to be realized as a  result of the operation of the Business on a stand-alone basis), net of the amount of actual benefits realized during  such period from such actions, in an aggregate amount not to exceed 25% of EBITDA (calculated after giving effect  to such cost savings) in any period of four fiscal quarters.  

 

  29   “EEA Financial Institution”:  (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 and is subject to the  supervision of an EEA Resolution Authority, 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 of an EEA Resolution Authority with its parent.  “EEA Member Country”:  any of the member states of the European Union, Iceland, Liechtenstein and  Norway.  “EEA Resolution Authority”:  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.  “Engagement Letter”: the Engagement Letter (including the annexes and exhibits thereto) dated as of July 8,  2020, between Wells Fargo and the Parent Borrower.  “Environmental Costs”:  any and all costs or expenses (including attorney’s and consultant’s fees,  investigation and laboratory fees, response costs, court costs and litigation expenses, fines, penalties, damages,  settlement payments, judgments and awards), of whatever kind or nature, known or unknown, contingent or  otherwise, arising out of, or in any way relating to, any actual or alleged violation of, noncompliance with or liability  under any Environmental Laws. Environmental Costs include any and all of the foregoing, without regard to  whether they arise out of or are related to any past, pending or threatened proceeding of any kind.  “Environmental Laws”:  any and all U.S. or foreign federal, state, provincial, territorial, foreign, local or  municipal laws, rules, orders, enforceable guidelines and orders-in-council, regulations, statutes, ordinances, codes,  decrees, and such requirements of any Governmental Authority properly promulgated and having the force and  effect of law or other Requirements of Law (including common law) regulating, relating to or imposing liability or  standards of conduct concerning protection of human health (as it relates to exposure to Materials of Environmental  Concern) or the environment, as have been, or now or at any relevant time hereafter are, in effect.  “Environmental Permits”:  any and all permits, licenses, registrations, notifications, exemptions and any  other authorization required under any Environmental Law.  “ERISA”:  the Employee Retirement Income Security Act of 1974, as amended from time to time.  “Erroneous Payment”: as defined in Subsection 10.17(a).  “Erroneous Payment Deficiency Assignment”: as defined in Subsection 10.17(d).  “Erroneous Payment Impacted Class”: as defined in Subsection 10.17(d).  “Erroneous Payment Return Deficiency”: as defined in Subsection 10.17(d).  “Escrow Subsidiary”: a Wholly Owned Subsidiary that is a Domestic Subsidiary formed or established for  the purpose of incurring Indebtedness the proceeds of which will be subject to an escrow or other similar  arrangement; provided that upon the termination of all such escrow or similar arrangement of such Subsidiary, such  Subsidiary shall cease to constitute an “Escrow Subsidiary” hereunder and shall merge with and into Ultimate Parent  or one of its Restricted Subsidiaries that is a Loan Party in accordance with Subsection 8.2.  Prior to its merger with  and into such Person, each Escrow Subsidiary shall not own, hold or otherwise have any interest in any material  assets other than the proceeds of the applicable Indebtedness incurred by such Escrow Subsidiary and any cash,  Cash Equivalents or Temporary Cash Investments invested in such Escrow Subsidiary to cover interest and premium  in respect of such Indebtedness.  

 

  30  “EU Bail-In Legislation Schedule”:  the EU Bail-In Legislation Schedule published by the Loan Market  Association (or any successor person), as in effect from time to time.  “Euro” or “€”: the single lawful currency of the member states of the European Union that have the euro as  its lawful currency in accordance with legislation of the European Union relating to Economic and Monetary Union.    “Eurodollar Loans”:  Loans the rate of interest applicable to which is based upon the Adjusted LIBOR Rate.  “Event of Default”:  any of the events specified in Subsection 9.1, provided that any requirement for the  giving of notice, the lapse of time, or both, or any other condition, has been satisfied.  “Exchange Act”:  the Securities Exchange Act of 1934, as amended from time to time.  “Excluded Accounts”:  (a) deposit accounts the balance of which consists exclusively of and used  exclusively for (i) withheld income taxes and federal, state or local employment taxes in such amounts as are  required in the reasonable judgment of the Parent Borrower to be paid to the Internal Revenue Service or state or  local government agencies within the following two months with respect to employees of any of the Loan Parties  and (ii) amounts required to be paid over to an employee benefit plan pursuant to DOL Reg. Sec. 2510.3-102 on  behalf of or for the benefit of employees of one or more Loan Parties, (b) deposit accounts constituting (and the  balance of which consists solely of funds set aside to be used in connection with) taxes accounts and payroll and  (c) petty cash accounts established (or otherwise maintained) by Ultimate Parent and its Subsidiaries that do not  have cash balances at any time exceeding $1,000,000 in the aggregate for all such petty cash accounts.  “Excluded Assets”:  as defined in the U.S. Guarantee and Collateral Agreement or the Canadian Guarantee  and Collateral Agreement, as applicable.  “Excluded Contribution”:  Net Proceeds from the private issuance or sale (other than to a Restricted  Subsidiary) of Capital Stock (other than Disqualified Capital Stock) by the Parent Borrower, to the extent designated  as an “Excluded Contribution” in a certificate of a Responsible Officer of the Parent Borrower delivered to the  Administrative Agent.  “Excluded Liability”:  any liability that is excluded under the Bail-In Legislation from the scope of any  Bail-In Action including, without limitation, any liability excluded pursuant to Article 44 of the Bank Recovery and  Resolution Directive.  “Excluded Subsidiary”:  at any date of determination, any Subsidiary of the Parent Borrower:  (a) that is an Immaterial Subsidiary (other than an Immaterial Guarantor);  (b) that is prohibited by Requirement of Law or Contractual Obligations existing on the Closing Date  (or, in the case of any newly acquired Subsidiary, in existence at the time of acquisition but not entered into in  contemplation thereof) from Guaranteeing, or granting Liens to secure, the Obligations or if Guaranteeing, or  granting Liens to secure, the Obligations would require governmental (including regulatory) consent, approval,  license or authorization unless such consent, approval, license or authorization has been received;  (c) with respect to which the Parent Borrower and the Administrative Agent reasonably agree in  writing that the burden or cost or other consequences of providing a guarantee of the Obligations shall be excessive  in view of the benefits to be obtained by the Lenders therefrom;  (d) with respect to which the provision of such guarantee of the Obligations would result in material  adverse tax consequences to Holdings or one of its Subsidiaries (as determined by the Parent Borrower in good faith  and notified in writing to the Administrative Agent);  

 

  31  (e) that is a Subsidiary of a Foreign Subsidiary;  (f) that is a joint venture or is not a Wholly Owned Subsidiary;  (g) that is an Unrestricted Subsidiary;  (h) that is a Captive Insurance Subsidiary;  (i) that is a special purpose entity; or  (j) that is a Subsidiary formed solely for the purpose of (x) becoming a Parent Entity, or (y) merging  with the Parent Borrower in connection with another Subsidiary becoming a Parent Entity, in each case to the extent  such entity becomes a Parent Entity or is merged with the Parent Borrower within 60 days of the formation thereof,  or otherwise creating or forming a Parent Entity;  (k) that is a Subsidiary acquired by the Parent Borrower or any Subsidiary and, at the time of the  relevant acquisition, is an obligor in respect of Acquired Indebtedness to the extent (and solely for so long as) the  documents or instruments governing the applicable Acquired Indebtedness prohibits such Subsidiary from granting a  Guarantee of the Obligations; provided that no such prohibition shall have been placed upon such Subsidiary in  connection with, or in contemplation of, such Person becoming a Subsidiary; or  (l) that is an Escrow Subsidiary;  provided that, notwithstanding the foregoing, any Subsidiary that Guarantees the payment of the Cash Flow Priority  Obligations shall not be an Excluded Subsidiary.  Subject to the proviso in the preceding sentence, any Subsidiary that fails to meet the foregoing  requirements as of the last day of the period of the most recent four consecutive Fiscal Quarters for which  consolidated financial statements of Ultimate Parent are available shall continue to be deemed an Excluded  Subsidiary hereunder until the date that is 60 days following the date on which such annual or quarterly financial  statements were required to be delivered pursuant to Subsection 7.1 with respect to such period.  “Excluded Swap Obligation”:  with respect to any Guarantor, any obligation (a “Swap Obligation”) to pay  or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of section  1a(47) of the Commodity Exchange Act, if, and to the extent that, all or a portion of the guaranty of such Guarantor  of, or the grant by such Guarantor of a security interest to secure such Swap Obligation (or any guaranty thereof) is  or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures  Trading Commission (or the application or official interpretation of any thereof).  “Excluded Taxes”:  (a) any Taxes measured by or imposed upon the net income of any Agent or Lender or  its applicable lending office, or any branch or affiliate thereof, and all franchise Taxes, branch Taxes, Taxes on  doing business or Taxes measured by or imposed upon the overall capital or net worth of any such Agent or Lender  or its applicable lending office, or any branch or affiliate thereof, in each case imposed:  (i) by the jurisdiction under  the laws of which such Agent or Lender, applicable lending office, branch or affiliate is organized or is located, or in  which its principal executive office is located, or any nation within which such jurisdiction is located or any political  subdivision thereof; or (ii) by reason of any connection between the jurisdiction imposing such Tax and such Agent  or Lender, applicable lending office, branch or affiliate other than a connection arising solely from such Agent or  Lender having executed, delivered or performed its obligations under, or received payment under or enforced, this  Agreement or any Notes, (b) any Tax imposed by FATCA, (c) in the case of a Lender, U.S. or Canadian federal  withholding Taxes imposed on amounts payable (including, for the avoidance of doubt, any fees) to or for the  account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on  the date on which (i) such Lender acquires such interest in the applicable Commitment or the applicable Loan (other  than, in each case, pursuant to an assignment request by any Borrower) or (ii) such Lender changes its lending office,  except in each case to the extent that amounts with respect to such Taxes were payable pursuant to Subsection 4.11  

 

  32  either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender  immediately before it changed its lending office, and (d) withholding Taxes imposed under Part XIII of the Income  Tax Act (Canada) payable as a result of a Lender not dealing at arm’s length within the  meaning of the Income Tax  Act (Canada) (“Arm’s Length”) with a Canadian Loan Party (other than where the non-Arm’s Length transaction  arises as a result of such Lender having executed, delivered, become a party to, performed its obligations under,  received payments under, received or perfected a security interest under, engaged in any other transaction pursuant  to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document) or being a  "specified non-resident shareholder" (as that term is defined in subsection 18(5) of the Income Tax Act (Canada)) of  a Canadian Loan Party or a Person not dealing at Arm’s Length with such a "specified non-resident shareholder"  (other than where such Lender is a specified non-resident shareholder or does not deal at Arm’s Length with a  specified non-resident shareholder as a result of such Lender having executed, delivered, become a party to,  performed its obligations under, received payments under, received or perfected a security interest under, engaged in  any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or  Loan Document).  “Exempt Sale and Leaseback Transaction”: any Sale and Leaseback Transaction (a) in which the sale or  transfer of property occurs within 180 days of the acquisition of such property by Ultimate Parent or any of its  Restricted Subsidiaries or (b) that involves property with a book value of the greater of $30,000,000 and 1.75% of  Consolidated Total Assets or less, and is not part of a series of related Sale and Leaseback Transactions involving  property with an aggregate value in excess of such amount and entered into with a single Person or group of Persons.  “Existing Credit Agreement”:  the ABL Credit Agreement, dated as of December 22, 2010, as amended as  of February 3, 2011, October 23, 2013, April 9, 2014, November 12, 2015 and December 22, 2016, among the  Parent Borrower, the subsidiary borrowers party thereto, the lenders from time to time party thereto and UBS AG,  Stamford Branch, as Swingline Lender, Issuing Lender, Administrative Agent and Collateral Agent.  “Existing Loan Documents”:  the “Loan Documents” as defined in the Existing Credit Agreement   “Existing Credit Facility Transactions”:  the (i) the resignation and appointment of Agents pursuant to the  Agency Resignation and Appointment Agreement, (ii) the assignment by existing lenders of their Obligations and  Commitments under and as defined in the Existing Credit Agreement pursuant to Assignment and Acceptances  under and as defined in the Existing Credit Agreement, (iii) the cash collateralization of any existing Letters of  Credit under and as defined in the Existing Credit Agreement on terms reasonably satisfactory to the Administrative  Agent, (iv) the amendment and restatement of the Existing Credit Agreement and certain of the other Existing Loan  Documents, and (iv) the assignment to the Collateral Agent of all Liens securing the foregoing (other than (1) Liens  on fee owned real property and (2) certain UCC financing statements specified in the Agency Resignation and  Appointment Agreement, in each case which shall be released in connection therewith), in each case in accordance  with their respective terms.  “Extended Revolving Credit Commitment”:  as defined in Subsection 2.8(a).  “Extended Term Loans”:  as defined in Subsection 2.8(a).  “Extending Revolving Credit Lender”:  as defined in Subsection 2.8(a).  “Extending Lenders”:  as defined in Subsection 2.8(a).  “Extending Term Lenders”:  as defined in Subsection 2.8(a).  “Extension”:  as defined in Subsection 2.8(a).  “Extension of Credit”:  as to any Lender, the making of a Loan, or, in the case of Subsection 2.4(d),  participation in a Loan by such Lender or the issuance of, or participation in, a Letter of Credit by such Lender.  “Extension Offer”:  as defined in Subsection 2.8(a).  

 

  33  “Facility”:  each of (a) the Commitments and the Extensions of Credit made thereunder and (b) any other  committed facility hereunder and the Extensions of Credit made thereunder, and collectively, the “Facilities”.  “Fair Market Value”:  with respect to any asset or property, the fair market value of such asset or property  as determined in good faith by senior management of the Borrower Representative or the Board of Directors, whose  determination shall be conclusive.  “FATCA”:  Sections 1471 through 1474 of the Code as in effect on the Closing Date (and any amended or  successor provisions that are substantively comparable), any regulations or other administrative authority  promulgated thereunder, any agreements entered into pursuant to Section 1471(b)(1) of the Code, any  intergovernmental agreement entered into in connection with any of the foregoing and any fiscal or regulatory  legislation, rules or practices adopted pursuant to any such intergovernmental agreement.  “FCPA”:  Foreign Corrupt Practices Act (15 U.S.C. § 78dd-1 et seq.), as amended from time to time.  “Federal District Court”:  as defined in Subsection 11.13(a).  “Federal Funds Effective Rate”:  for any period, a fluctuating interest rate per annum equal to, for each day  during such period, the weighted average of the rates on overnight federal funds transactions with members of the  Federal Reserve System of the United States, as published on the next succeeding Business Day by the Federal  Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of  the quotations for such day on such transactions received by Administrative Agent from three federal funds brokers  of recognized standing selected by it. If the Federal Funds Effective Rate is less than zero, it shall be deemed zero  for purposes of this Agreement.  “Federal Reserve Bank of New York’s Website” means the website of the Federal Reserve Bank of New  York at http://www.newyorkfed.org, or any successor source.  “Fee Letter”:  the fee letter agreement, dated as of the date hereof, among Wells Fargo and the Parent  Borrower.  “Financial Covenant Debt”:  with respect to any Person, without duplication, Indebtedness of the type  specified in clauses (a) through (f) of the definition of “Indebtedness” plus, without duplication, any Guarantee  Obligations in respect thereof; provided, however, that Indebtedness of the type specified in clause (d) of the  definition thereof shall only be included on the date Indebtedness of such Person is being determined to the extent  such Indebtedness identified in such clause constitutes a non-contingent reimbursement obligation owing at such  time and clause (e) of the definition thereof shall not include payments required upon any early termination on the  date Indebtedness of such Person is being determined if no such early termination has occurred.  “Financing Documentation”:  the Loan Documents and the Term Loan Documents, in each case including  any Interest Rate Protection Agreements related thereto.  “Financing Lease”:  any lease of property, real or personal, the obligations of the lessee in respect of which  are required to be capitalized and accounted for as a financing lease (and not, for the avoidance of doubt, as an  operating lease) on the balance sheet of such lessee for financial reporting purposes in accordance with GAAP. The  Stated Maturity of any Indebtedness under a Financing Lease shall be the scheduled date under the terms thereof of  the last payment of rent or any other amount due under such Financing Lease.  Notwithstanding anything to the  contrary contained in this definition of “Financing Lease” or elsewhere in this Agreement, at the Company’s option,  only those leases that would constitute Financing Leases in conformity with GAAP prior to the adoption of ASU No.  2016-02 by the Financial Accounting Standards Board shall be considered Financing Leases, and all calculations  and deliverables under this Agreement or any other Loan Document shall be made or delivered, as applicable, in  accordance therewith.  “Financing Lease Obligation”:  an obligation under any Financing Lease.  

 

  34  “FIRREA”:  the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended from  time to time.  “First Amendment Effective Date”: May 26, 2021.  “first priority”:  with respect to any Lien purported to be created in any Collateral pursuant to any Security  Document, that such Lien is the most senior Lien to which such Collateral is subject (subject to Customary  Permitted Liens and Liens permitted under Subsection 8.14(h)).  “Fiscal Period”:  each monthly accounting period of Ultimate Parent calculated in accordance with the  fiscal calendar of Ultimate Parent.  “Fiscal Quarter”:  successive 13-week periods (each such 13 week period to begin on a Saturday and (other  than as set forth in the definition of Fiscal Year) end on a Friday of Ultimate Parent of any Fiscal Year); provided  that for any 53-week Fiscal Year, the last Fiscal Quarter of such Fiscal Year shall consist of the successive 14-week  period from and including the first day after the third Fiscal Quarter of such Fiscal Year through and including the  last day of such Fiscal Year.  “Fiscal Year”:  any period of 52 or 53 weeks ending September 30th of any calendar year.  “Fixed GAAP Date”:  the Closing Date, provided that at any time after the Closing Date, the Borrower  Representative may by written notice to the Administrative Agent elect to change the Fixed GAAP Date to be the  date specified in such notice, and upon such notice, the Fixed GAAP Date shall be such date for all periods  beginning on and after the date specified in such notice.  “Fixed GAAP Terms”:  (a) the covenants contained in Subsections 8.1 and 8.13, and the defined terms  “Borrowing Base”, “Capital Expenditures”, “Consolidated Fixed Charge Coverage Ratio”, “Consolidated Interest  Expense”, “Consolidated Net Income”, “Consolidated Total Assets”, “Debt Service Charges”, “EBITDA”,  “Financial Covenant Debt”, “Foreign Borrowing Base”, “Pro Forma Basis”, “Pro Forma Compliance” or “Secured  Leverage Ratio”, (b) all defined terms in this Agreement to the extent used in or relating to any of the foregoing  definitions, and all ratios and computations based on any of the foregoing definitions, and (c) any other term or  provision of this Agreement or the Loan Documents that, at the Parent Borrower’s election, may be specified by the  Borrower Representative by written notice to the Administrative Agent from time to time.  “Floor”: 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 the LIBOR  Rate.  “Foreign Borrowing Base”:  the sum of (1) 85.0% of the book value of Inventory of the Parent Borrower’s  Foreign Subsidiaries, (2) 85.0% of the book value of Receivables of the Parent Borrower’s Foreign Subsidiaries and  (3) cash, Cash Equivalents and Temporary Cash Investments of the Parent Borrower’s Foreign Subsidiaries (in each  case, determined as of the end of the most recently ended Fiscal Period of the Parent Borrower for which internal  consolidated financial statements of the Parent Borrower are available, and, in the case of any determination relating  to any incurrence of Indebtedness, on a pro forma basis including (x) any property or assets of a type described  above acquired since the end of such Fiscal Period and (y) any property or assets of a type described above being  acquired in connection therewith); provided that no Inventory or Receivable of a Foreign Subsidiary shall be  included in the Foreign Borrowing Base if the same is included in the Borrowing Base pursuant to this Agreement.  “Foreign Pension Plan”:  a registered pension plan which is subject to applicable pension legislation other  than ERISA or the Code, which a Restricted Subsidiary sponsors or maintains, or to which it makes or is obligated  to make contributions, including a Canadian Pension Plan.  “Foreign Plan”:  each Foreign Pension Plan, deferred compensation or other retirement or superannuation  plan, fund, program, agreement, commitment or arrangement whether oral or written, funded or unfunded,  sponsored, established, maintained or contributed to, or required to be contributed to, or with respect to which any  

 

  35  liability is borne, outside the United States of America, by Ultimate Parent or any of its Restricted Subsidiaries,  other than any such plan, fund, program, agreement or arrangement sponsored by a Governmental Authority.  “Foreign Subsidiary”:  any Subsidiary of the Parent Borrower (a) that is organized and existing under the  laws of any jurisdiction outside of the United States of America and any Subsidiary of such Foreign Subsidiary or (b)  that is a Foreign Subsidiary Holdco. Any subsidiary of the Parent Borrower which is organized and existing under  the laws of Puerto Rico or any other territory of the United States of America shall be a Foreign Subsidiary.  “Foreign Subsidiary Holdco”:  any Restricted Subsidiary of the Ultimate Parent, so long as such Restricted  Subsidiary has no material assets other than securities or Indebtedness of one or more Foreign Subsidiaries (or  Subsidiaries thereof), intellectual property relating to such Foreign Subsidiaries (or Subsidiaries thereof) and other  assets (including cash, Cash Equivalents and Temporary Cash Investments) relating to an ownership interest in any  such securities, indebtedness, intellectual property or Subsidiaries. Any Subsidiary which is a Foreign Subsidiary  Holdco that fails to meet the foregoing requirements as of the last day of the period for which consolidated financial  statements of the Ultimate Parent are available shall continue to be deemed a “Foreign Subsidiary Holdco”  hereunder until the date that is 60 days following the date on which such annual or quarterly financial statements  were required to be delivered pursuant to Subsection 7.1 with respect to such period.  “Funding Losses”: the failure to borrow, convert or continue to prepay Eurodollar Loans on the date  specified thereto.  “GAAP”:  generally accepted accounting principles in the United States of America as in effect on the  Fixed GAAP Date (for purposes of the Fixed GAAP Terms) and as in effect from time to time (for all other  purposes of this Agreement), including those set forth in the opinions and pronouncements of the Accounting  Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of  the Financial Accounting Standards Board or in such other statements by such other entity as approved by a  significant segment of the accounting profession, and subject to the following sentence. If at any time the SEC  permits or requires U.S. domiciled companies subject to the reporting requirements of the Exchange Act to use IFRS  in lieu of GAAP for financial reporting purposes, the Borrower Representative may elect by written notice to the  Administrative Agent to so use IFRS in lieu of GAAP and, upon any such notice, references herein to GAAP shall  thereafter be construed to mean (a) for periods beginning on and after the date specified in such notice, IFRS as in  effect on the date specified in such notice (for purposes of the Fixed GAAP Terms) and as in effect from time to  time (for all other purposes of this Agreement) and (b) for prior periods, GAAP as defined in the first sentence of  this definition; provided that, promptly upon reasonable request from the Administrative Agent, Ultimate Parent  shall provide reconciliations of EBITDA and other Fixed GAAP Terms as reasonably requested by the  Administrative Agent substantially concurrently with delivery of the financial statements delivered pursuant to  Subsection 7.1(a) or (b) for each period for which such provisions require comparative figures for and as of the  corresponding periods of the previous year (it being understood and agreed that, with respect to EBITDA or any  other Fixed GAAP Term, any reconciliation filed with the United States Securities and Exchange Commission shall  satisfy this requirement to the extent such filing complies with SEC requirements). All ratios and computations  based on GAAP contained in this Agreement shall be computed in conformity with GAAP.  “General Intangibles”:  “general intangibles” (as such term is defined in Article 9 of the UCC) and  “intangibles” (as such term is defined in the PPSA), including payment intangibles, contract rights, rights to  payment, rights arising under common law, statutes, or regulations, choses or things in action, goodwill, patents,  trade names, trade secrets, trademarks, servicemarks, copyrights, blueprints, drawings, purchase orders, customer  lists, monies due or recoverable from pension funds, route lists, rights to payment and other rights under any royalty  or licensing agreements, infringement claims, computer programs, information contained on computer disks or tapes,  software, literature, reports, catalogs, insurance premium rebates, tax refunds, and tax refund claims, and any and all  supporting obligations in respect thereof, and any other personal property other than Accounts, Deposit Accounts,  goods, Investment Property, and Negotiable Collateral.  “Governmental Authority”:  the government of the United States or any other nation, or of any political  subdivision thereof, whether state, provincial or local, and any agency, authority, instrumentality, regulatory body,  court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative  

 

  36  powers or functions of or pertaining to government (including any supranational bodies such as the European Union  or the European Central Bank).  “Guarantee”:  any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any  Indebtedness or other obligation of any other Person; provided that the term “Guarantee” shall not include  endorsements for collection or deposit in the ordinary course of business. The term “Guarantee” used as a verb has a  corresponding meaning.  “Guarantee and Collateral Agreement”:  the U.S. Guarantee and Collateral Agreement and/or the Canadian  Guarantee and Collateral Agreement, as the context may require.  “Guarantee Obligation”:  as to any Person (the “guaranteeing person”), any obligation of (a) the  guaranteeing person or (b) another Person (including any bank under any letter of credit) to induce the creation of  which the guaranteeing person has issued a reimbursement, counterindemnity or similar obligation, in either case  guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends or other obligations (the “primary  obligations”) of any other third Person (the “primary obligor”) in any manner, whether directly or indirectly,  including any such obligation of the guaranteeing person, whether or not contingent, (i) to purchase any such  primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (A)  for the purchase or payment of any such primary obligation or (B) to maintain working capital or equity capital of  the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase  property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the  ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or hold  harmless the owner of any such primary obligation against loss in respect thereof; provided, however, that the term  Guarantee Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course  of business. The amount of any Guarantee Obligation of any guaranteeing person shall be deemed to be the lower of  (a) an amount equal to the stated or determinable amount of the primary obligation in respect of which such  Guarantee Obligation is made and (b) the maximum amount for which such guaranteeing person may be liable  pursuant to the terms of the instrument embodying such Guarantee Obligation, unless such primary obligation and  the maximum amount for which such guaranteeing person may be liable are not stated or determinable, in which  case the amount of such Guarantee Obligation shall be such guaranteeing person’s maximum reasonably anticipated  liability in respect thereof as determined by the Parent Borrower in good faith.  “Guarantors”:  the collective reference to Holdings (unless and until Holdings is released from all of its  obligations pursuant to Subsection 9.16(h) of the Guarantee and Collateral Agreement) and each Subsidiary  Guarantor (each individually, a “Guarantor”).  “Hedging Affiliate”:  an “ABL Hedging Affiliate” as defined in the Intercreditor Agreement.   “Hedging Agreement”:  any Interest Rate Protection Agreement, Commodities Agreement, Currency  Agreement (each as defined in the Intercreditor Agreement) or any other credit or equity swap, collar, cap, floor or  forward rate agreement, or other agreement or arrangement designed to protect against fluctuations in interest rates  or currency, commodity, credit or equity values or creditworthiness (including, without limitation, any option with  respect to any of the foregoing and any combination of the foregoing agreements or arrangements), and any  confirmation executed in connection with any such agreement or arrangement.  “Hedging Arrangement”:  as defined in Subsection 8.10.  “Hedging Obligations”:  as to any Person, any and all obligations of such Person arising under, owing  pursuant to, or existing in respect of any Hedging Agreement entered into with one or more Hedging Affiliates,  whether absolute or contingent, due or to become due, now existing or hereafter arising.  “Hedging Party”:  any Hedging Affiliate party to an Interest Rate Protection Agreement, Hedging  Agreement or other Permitted Hedging Arrangement.  

 

  37  “Holdings”:  Atkore International Holdings Inc., a Delaware corporation, and any successor in interest  thereto, including any Successor Holding Company (as defined in the Guarantee and Collateral Agreement) subject  to Section 9.16(e) of the Guarantee and Collateral Agreement.  “Immaterial Guarantor”:  any Subsidiary Guarantor that:  (a) (x) contributed not in excess of 5.0% of EBITDA for the period of four Fiscal Quarters most  recently ended for which financial statements have been or are required to have been delivered pursuant to  Subsection 7.1(a) or 7.1(b) prior to the date of determination, and (y) had consolidated assets representing not in  excess of 5.0% of Consolidated Total Assets as of the end of the most recently ended financial period for which  consolidated financial statements of Ultimate Parent are available; and  (b) together with all other Subsidiary Guarantors pursuant to the preceding clause (a)(x) contributed  5.0% or less of EBITDA for the period of four Fiscal Quarters most recently ended for which financial statements  have been or are required to have been or were required to be delivered pursuant to Subsection 7.1(a) or 7.1(b) prior  to the date of determination, and (y) had consolidated assets representing 5.0% or less of Consolidated Total Assets  as of the end of the most recently ended fiscal period for which financial statements have been or are required to  have been or were required to be delivered pursuant to Subsection 7.1(a) or 7.1(b) prior to the date of determination.  “Immaterial Subsidiary”:  any Subsidiary of Ultimate Parent designated as such in writing by Ultimate  Parent to the Administrative Agent that (i) (x) contributed 5.0% or less of EBITDA for the period of four Fiscal  Quarters most recently ended for which financial statements have been or are required to have been delivered  pursuant to Subsection 7.1(a) or 7.1(b) prior to the date of determination, and (y) had consolidated assets  representing 5.0% or less of Consolidated Total Assets as of the end of the most recently ended fiscal period for  which financial statements have been or are required to have been or were required to be delivered pursuant to  Subsection 7.1(a) or 7.1(b) prior to the date of determination; and (ii) together with all other Immaterial Subsidiaries  designated pursuant to the preceding clause (i), (x) contributed 5.0% or less of EBITDA for the period of four Fiscal  Quarters most recently ended for which financial statements have been or are required to have been delivered  pursuant to Subsection 7.1(a) or 7.1(b) prior to the date of determination, and (y) had consolidated assets  representing 5.0% or less of Consolidated Total Assets as of the end of the most recently ended fiscal period for  which financial statements have been or are required to have been or were required to be delivered pursuant to  Subsection 7.1(a) or 7.1(b) prior to the date of determination.  Any Subsidiary so designated as an Immaterial  Subsidiary that fails to meet the foregoing requirements as of the last day of the period of the most recent four  consecutive Fiscal Quarters for which consolidated financial statements of Ultimate Parent are available shall  continue to be deemed an “Immaterial Subsidiary” hereunder until the date that is 60 days following the date on  which such annual or quarterly financial statements were required to be delivered pursuant to Subsection 7.1(a) or  7.1(b) with respect to such period.  “Increased Monitoring Threshold”:  as defined in Subsection 7.6(b).  “Indebtedness”: of any Person at any date,   (a) all indebtedness of such Person for borrowed money or for the deferred purchase price of property  or services (other than trade liabilities incurred in the ordinary course of business and payable in accordance with  customary practices),  (b) any other indebtedness of such Person which is evidenced by a note, bond, debenture or similar  instrument,   (c) all obligations of such Person under Financing Leases,   (d) all obligations of such Person in respect of letters of credit, bankers’ acceptances or other similar  instruments issued or created for the account of such Person,   

 

  38  (e) for purposes of Subsection 9.1(e) only, all obligations of such Person in respect of interest rate  protection agreements, interest rate futures, interest rate options, interest rate caps and any other interest rate hedge  arrangements,   (f) all indebtedness or obligations of the types referred to in the preceding clauses (a) through (e) to  the extent secured by any Lien on any property owned by such Person even though such Person has not assumed or  otherwise become liable for the payment thereof (provided that, (A) solely with respect to any such indebtedness or  obligations secured by a Lien that is (x) not on any asset or other property constituting ABL Priority Collateral or (y)  junior to the Liens granted in favor of the Collateral Agent on any asset or other property constituting ABL Priority  Collateral, the amount of Indebtedness of such Person shall be the lesser of (i) the fair market value of such asset at  such date of determination (as determined in good faith by the Parent Borrower, which determination shall be  conclusive) and (ii) the amount of such Indebtedness of such other Persons, and (B) in the case of any other  indebtedness or obligations, the amount of Indebtedness of such Person shall be the outstanding amount of all  obligations thereunder) and  (g) Guarantee Obligations of such Person in respect of any Indebtedness of the type described in the  preceding clauses (a) through (f);   provided that, unless the obligations under a Vendor Financing Arrangement are secured by a Lien on the Collateral  (excluding, for the avoidance of doubt, security in the form of cash collateral or letters of credit) ranking pari passu  with the Liens securing the Obligations, for all purposes under this Agreement, Indebtedness shall not include any  obligations whatsoever in respect of Vendor Financing Arrangements except to the extent that such obligations  constituting Indebtedness are recourse to such Person; provided, further, that, Indebtedness shall not include (u) any  liability for federal, state, provincial, local or other taxes owed or owing to any government or other taxing authority,  (x) the amount or validity of which are currently being contested in good faith by appropriate proceedings diligently  conducted and (y) with respect to which reserves in conformity with GAAP have been provided on the books of  Ultimate Parent or its Restricted Subsidiaries, as the case may be; provided that the reserves referenced this clause (y)  shall not be required prior to the last day of the first full Fiscal Quarter following the date on which such liability  arose, (v) purchase price holdbacks in respect of a portion of the purchase price of an asset to satisfy warranty or  other unperformed obligations of the respective seller, (w) obligations, to the extent such obligations constitute  Indebtedness, under any agreement that has been defeased or satisfied and discharged pursuant to the terms of such  agreement, (x) Contingent Obligations incurred in the ordinary course of business or consistent with past practice, (y)  in connection with the purchase by Ultimate Parent or any Restricted Subsidiary of any business, any post-closing  payment adjustments to which the seller may become entitled to the extent such payment is determined by a final  closing balance sheet or such payment depends on the performance of such business after the closing; provided,  however, that, at the time of closing, the amount of any such payment is not determinable and, to the extent such  payment thereafter becomes fixed and determined, the amount is paid in a timely manner or (z) for the avoidance of  doubt, any obligations or liabilities which would be required to be classified and accounted for as an operating lease  for financial reporting purposes in accordance with GAAP; provided that notwithstanding anything to the contrary  contained in this definition of “Financing Lease” or elsewhere in this Agreement, at the Company’s option, only  those leases that would constitute Financing Leases in conformity with GAAP prior to the adoption of ASU No.  2016-02 by the Financial Accounting Standards Board shall be considered Financing Leases, and all calculations  and deliverables under this Agreement or any other Loan Document shall be made or delivered, as applicable, in  accordance therewith.  “Individual Lender Exposure”:  of any Revolving Credit Lender, at any time, the sum of (a) the aggregate  principal amount of all Revolving Credit Loans made by such Lender then outstanding, (b) the sum of such Lender’s  Commitment Percentage in each then outstanding Letter of Credit multiplied by the sum of the Stated Amount of the  respective Letters of Credit and any Unpaid Drawings relating thereto and (c) such Lender’s Commitment  Percentage of the Swingline Loans then outstanding.  “Insolvency”:  with respect to any Multiemployer Plan, the condition that such Plan is insolvent within the  meaning of Section 4245 of ERISA.  “Insolvent”:  pertaining to a condition of Insolvency.  

 

  39  “Intellectual Property”:  as defined in Subsection 5.9.  “Intercreditor Agreement”:  the Intercreditor Agreement, dated as of May 26, 2021, among the ABL Agent  (as defined therein), JPMorgan Chase Bank, N.A. in its capacity as collateral agent under the Term Loan Documents,  the Collateral Agent and certain other parties party thereto from time to time and acknowledged by certain of the  Loan Parties, as the same may be further amended, supplemented, waived or otherwise modified from time to time  in accordance with the terms hereof and thereof.  “Interest Payment Date”:  (a) as to any ABR Loan or Daily Rate Loan, the first calendar day of each  January, April, July and October to occur while such Loan is outstanding, and the final maturity date of such Loan,  (b) as to any Eurodollar Loan or BA Equivalent Loan having an Interest Period of three months or less, the last day  of such Interest Period, and (c) as to any Eurodollar Loan or BA Equivalent Loan having an Interest Period longer  than three months, (i) each day which is three months, or a whole multiple thereof, after the first day of such Interest  Period and (ii) the last day of such Interest Period.  “Interest Period”:  with respect to any Eurodollar Loan or BA Equivalent Loan:  (a) initially, the period commencing on the borrowing or conversion date, as the case may be, with  respect to such Eurodollar Loan or BA Equivalent Loan and ending one, three or six months (or, if required pursuant  to Subsection 2.1(a), or agreed to by each affected Lender, nine months or twelve months) thereafter, as selected by  the Borrower Representative in its notice of borrowing or notice of conversion, as the case may be, given with  respect thereto; provided that, notwithstanding the foregoing, an Interest Period of one week shall be available for  Swingline Loans; and  (b) thereafter, each period commencing on the last day of the next preceding Interest Period  applicable to such Eurodollar Loan or BA Equivalent Loan and ending one week or one, two or three (or if required  pursuant to Subsection 2.1(a) or agreed to by each affected Lender nine months) thereafter, as selected by the  Borrower Representative by irrevocable notice to the Administrative Agent not less than three Business Days (or  such shorter period as may be agreed by the Administrative Agent in its reasonable discretion) prior to the last day  of the then current Interest Period with respect thereto; provided that all of the foregoing provisions relating to  Interest Periods are subject to the following:  (i) if any Interest Period would otherwise end on a day that is not  a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless  the result of such extension would be to carry such Interest Period into another calendar month in  which event such Interest Period shall end on the immediately preceding Business Day;  (ii) any Interest Period that would otherwise extend beyond the  Termination Date shall (for all purposes other than Subsection 4.12) end on the Termination Date;  (iii) 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 a calendar month;  and  (iv) the Borrower Representative shall select Interest Periods so as  not to require a scheduled payment of any Eurodollar Loan or BA Equivalent Loan during an  Interest Period for such Loan.  “Interest Rate Protection Agreement”:  any interest rate protection agreement, interest rate future, interest  rate option, interest rate cap or collar or other interest rate hedge arrangement in form and substance, and for a term,  reasonably satisfactory to the Administrative Agent to or under which the Parent Borrower or any of its Restricted  Subsidiaries is or becomes a party or a beneficiary.  

 

  40  “Inventory”:  “inventory” (as such term is defined in Article 9 of the UCC).  “Investment”:  in any Person by any other Person, any direct or indirect advance, loan or other extension of  credit (other than to customers, dealers, licensees, franchisees, suppliers, consultants, directors, officers or  employees of any Person in the ordinary course of business) or capital contribution (by means of any transfer of cash  or other property to others or any payment for property or services for the account or use of others) to, or any  purchase or acquisition of Capital Stock, Indebtedness or other similar instruments issued by, such Person and any  other items that are or would be classified as investments on a balance sheet prepared in accordance with GAAP.  For purposes of the definition of “Unrestricted Subsidiary” and Subsection 8.12 only, (i) “Investment” shall include  the portion (proportionate to the Parent Borrower’s equity interest in such Subsidiary) of the Fair Market Value of  the net assets of any Subsidiary of the Parent Borrower at the time that such Subsidiary is designated as an  Unrestricted Subsidiary, provided that upon a redesignation of such Subsidiary as a Restricted Subsidiary, the Parent  Borrower shall be deemed to continue to have a permanent “Investment” in an Unrestricted Subsidiary in an amount  (if positive) equal to (x) the Parent Borrower’s “Investment” in such Subsidiary at the time of such redesignation  less (y) the portion (proportionate to the Parent Borrower’s equity interest in such Subsidiary) of the Fair Market  Value of the net assets of such Subsidiary at the time of such redesignation and (ii) any property transferred to or  from an Unrestricted Subsidiary shall be valued at its Fair Market Value at the time of such transfer. Guarantees  shall not be deemed to be Investments. The amount of any Investment outstanding at any time shall be the original  cost of such Investment, reduced (at the Parent Borrower’s option) by any dividend, distribution, interest payment,  return of capital, repayment or other amount or value received in respect of such Investment.  “Investment Company Act”:  the Investment Company Act of 1940, as amended from time to time.  “Investment Grade Rating”:  a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and  BBB- (or the equivalent) by S&P, or any equivalent rating by any other nationally recognized rating agency.  “Investment Grade Securities”:  (i) securities issued or directly and fully guaranteed or insured by the  United States government or any agency or instrumentality thereof (other than Cash Equivalents); (ii) debt securities  or debt instruments with an Investment Grade Rating, but excluding any debt securities or instruments constituting  loans or advances among Ultimate Parent and its Subsidiaries; (iii) investments in any fund that invests exclusively  in investments of the type described in clauses (i) and (ii) above, which fund may also hold immaterial amounts of  cash pending investment or distribution; and (iv) corresponding instruments in countries other than the United States  customarily utilized for high quality investments.  “Investment Property”:  “investment property” (as such term is defined in Article 9 of the UCC) and any  and all supporting obligations in respect thereof.  “ISP”:  the International Standby Practices (1998), International Chamber of Commerce Publication No.  590.  “Issuer Document”: with respect to any Letter of Credit, a letter of credit application, a letter of credit  agreement, or any other document, agreement or instrument entered into (or to be entered into) by a Borrower in  favor of an Issuing Lender and relating to such Letter of Credit.  “Issuing Lender”:  as the context may require, (a) each of Wells Fargo and JPMorgan Chase Bank, N.A., in  each case in its capacity as issuer of Letters of Credit issued by it; (b) any other Lender that may become an Issuing  Lender pursuant to Subsections 3.10 and 3.11 in its capacity as issuer of Letters of Credit issued by such Lender; or  (c) collectively, all of the foregoing.  “known to the Borrowers”:  the actual knowledge of any Responsible Officer of the Parent Borrower of any  particular fact, event or circumstance or the knowledge such Person would have obtained after the exercise of  reasonable diligence.  “Last-Out Tranche”:  as defined in Subsection 2.6(b).  

 

  41  “L/C Fee Payment Date”:  with respect to any Letter of Credit, the first Business Day following the last day  of each March, June, September and December to occur after the date of issuance thereof to and including the first  such day to occur on or after the date of expiry thereof; provided that if any L/C Fee Payment Date would otherwise  occur on a day that is not a Business Day, such L/C Fee Payment Date shall be the immediately preceding Business  Day.  “L/C Fees”:  the fees specified in Subsection 3.3.  “L/C Obligations”:  at any time, an amount equal to the sum of (a) the aggregate then undrawn and  unexpired amount of the then outstanding Letters of Credit (including in the case of outstanding Letters of Credit in  any Designated Foreign Currency, the Dollar Equivalent of the aggregate then undrawn and unexpired amount  thereof) and (b) the aggregate amount of drawings under Letters of Credit which have not then been reimbursed  pursuant to Subsection 3.5(a) (including in the case of Letters of Credit in any Designated Foreign Currency, the  Dollar Equivalent of the unreimbursed aggregate amount of drawings thereunder, to the extent that such amount has  not been converted into Dollars in accordance with Subsection 3.5(a)).  “L/C Request”:  a letter of credit request in the form of Exhibit J attached hereto or, in such form as the  applicable Issuing Lender may specify from time to time, requesting the applicable Issuing Lender to issue a Letter  of Credit.  “L/C Sublimit”: with respect to each Issuing Lender, (i) the amounts set forth on Schedule 1.1(i)  representing the maximum aggregate face amount of Letters of Credit that may be issued by such Issuing Lender  and (ii) with respect to any other Person that becomes an Issuing Lender pursuant to Subsection 3.10, such amount  as agreed to in writing by the Parent Borrower and such Person at the time such Person becomes an Issuing Lender;  provided in each case that the Parent Borrower and any Issuing Lender may, from time to time by written agreement  delivered to the Administrative Agent, modify the amount of such Issuing Lender’s L/C Sublimit without the prior  consent of any other party. The initial aggregate L/C Sublimit of all Issuing Lenders is $50,000,000.  “LCT Election”:  as defined in Subsection 1.2(i).  “LCT Test Date”:  as defined in Subsection 1.2(i).  “Lead Arrangers”:  Wells Fargo and JPMorgan Chase Bank, N.A. as Joint Lead Arrangers and Joint  Bookmanagers.  “Lender Default”:  (a) the refusal (which may be given verbally or in writing and has not been retracted) or  failure of any Lender (including any Agent in it capacity as Lender) to make available its portion of any incurrence  of Loans or reimbursement obligations required to be made hereunder, which refusal or failure is not cured within  two Business Days after the date of such refusal or failure, (b) the failure of any Lender (including any Agent in its  capacity as Lender) to pay over to the Administrative Agent, any Issuing Lender or any other Lender any other  amount required to be paid by it hereunder within one Business Day of the date when due, unless the subject of a  good faith dispute, (c) a Lender (including any Agent in its capacity as Lender) has notified the Parent Borrower or  the Administrative Agent that it does not intend to comply with its funding obligations hereunder, (d) a Lender  (including any Agent in its capacity as Lender) has failed, within three Business Days after request by the  Administrative Agent, to confirm that it will comply with its funding obligations hereunder or (e) an Agent or a  Lender has admitted in writing that it is insolvent or such Agent or Lender becomes subject to a Lender-Related  Distress Event or Bail-In Action.  “Lender Joinder Agreement”:  as defined in Subsection 2.6(c)(i).  “Lender-Related Distress Event”:  with respect to any Agent or Lender (each, a “Distressed Person”), a  voluntary or involuntary case with respect to such Distressed Person under any debt relief law, or a custodian,  conservator, receiver or similar official is appointed for such Distressed Person or any substantial part of such  Distressed Person’s assets, or such Distressed Person makes a general assignment for the benefit of creditors or is  otherwise adjudicated as, or determined by any Governmental Authority having regulatory authority over such  

 

  42  Distressed Person to be, insolvent or bankrupt; provided that a Lender-Related Distress Event shall not be deemed to  have occurred solely by virtue of the ownership or acquisition of any equity interests in any Agent or Lender or any  person that directly or indirectly controls such Agent or Lender by a Governmental Authority or an instrumentality  thereof.  “Lenders”:  the several lenders from time to time parties to this Agreement together with, in the case of any  such lender that is a bank or financial institution, any affiliate of any such bank or financial institution through  which such bank or financial institution elects, by notice to the Administrative Agent and the Borrower  Representative to make any Revolving Credit Loans, Swingline Loans or Letters of Credit available to any Borrower,  provided that for all purposes of voting or consenting with respect to (a) any amendment, supplementation or  modification of any Loan Document, (b) any waiver of any of the requirements of any Loan Document or any  Default or Event of Default and its consequences or (c) any other matter as to which a Lender may vote or consent  pursuant to Subsection 11.1, the bank or financial institution making such election shall be deemed the “Lender”  rather than such affiliate, which shall not be entitled to so vote or consent.  “Letter of Credit Collateralization”: either (a) providing cash collateral (pursuant to documentation  reasonably satisfactory to Administrative Agent (including that Administrative Agent has a first priority perfected  Lien in such cash collateral), including provisions that specify that the Letter of Credit Fees and all commissions,  fees, charges and expenses provided for in Subsection 3.3 (including any fronting fees) will continue to accrue while  the Letters of Credit are outstanding) to be held by Administrative Agent for the benefit of the Revolving Credit  Lenders in an amount equal to 103% of the then existing L/C Obligations, (b) delivering to Administrative Agent  documentation executed by all beneficiaries under the Letters of Credit, in form and substance reasonably  satisfactory to Administrative Agent and Issuing Lender, terminating all of such beneficiaries’ rights under the  Letters of Credit, or (c) providing Administrative Agent with a standby letter of credit, in form and substance  reasonably satisfactory to Administrative Agent, from a commercial bank reasonably acceptable to Administrative  Agent in an amount equal to 103% of the then existing L/C Obligations (it being understood that all fees in respect  of letters of credit (including fronting fees) set forth in this Agreement will continue to accrue while the Letters of  Credit are outstanding and that any such fees that accrue must be an amount that can be drawn under any such  standby letter of credit).  “Letter of Credit Exposure”: as of any date of determination with respect to any Lender, such Lender’s  participation in the L/C Obligations pursuant to Subsection 3.4(a) on such date.  “Letters of Credit” or “L/Cs”:  letters of credit issued by any Issuing Lender for the account of the  Borrowers pursuant to Section 3.  “LIBOR Rate”: the rate per annum as published by ICE Benchmark Administration Limited (or any  successor page or other commercially available source as the Agent may designate from time to time) as of 11:00  a.m., London time, two Business Days prior to the commencement of the requested Interest Period, for a term, and  in an amount, comparable to the Interest Period and the amount of the Eurodollar Loan requested (whether as an  initial Eurodollar Loan or as a continuation of a Eurodollar Loan or as a conversion of an ABR Loan to a Eurodollar  Loan) by Borrowers in accordance with this Agreement (and, if any such published rate is below zero, then the  LIBOR Rate shall be deemed to be zero). Each determination of the LIBOR Rate shall be made by the Agent and  shall be conclusive in the absence of manifest error.  “Lien”:  any mortgage, pledge, hypothecation, assignment, security interest, encumbrance, lien, hypothec  or charge of any kind (including, without limitation, any conditional sale or other title retention agreement or lease  in the nature thereof).  “Limited Condition Transaction”:  (x) any acquisition, including by way of merger, amalgamation,  consolidation or other business combination or the acquisition of Capital Stock or otherwise, by one or more of the  Parent Borrower and its Subsidiaries of any assets, business or Person or any other Investment permitted by this  Agreement in each case, whose consummation is not conditioned on the availability of, or on obtaining, third party  financing or (y) any redemption, repurchase, defeasance, satisfaction and discharge or repayment of Indebtedness,  Disqualified Capital Stock or Preferred Stock requiring irrevocable notice in advance of such redemption,  repurchase, defeasance, satisfaction and discharge or repayment.  

 

  43  “Liquidity Event”:  the determination by the Administrative Agent that Specified Availability on any day is  less than the greater of (x) $22,000,000 and (y) 10.0% of Availability at such time; provided that the Administrative  Agent has notified the Borrower Representative thereof; provided, further, that if the occurrence of a Liquidity  Event shall be due solely to a fluctuation in currency exchange rates occurring within the two Business Day period  immediately preceding such occurrence, and one or more of the Borrowers, within two Business Days following  receipt of such notice from the Administrative Agent, repay Loans in an amount such that the Specified Availability  following such payment exceeds the greater of (x) $22,000,000 and (y) 10.0% of Availability at such time, a  Liquidity Event shall be deemed not to have occurred. The occurrence of a Liquidity Event shall be deemed  continuing notwithstanding that Specified Availability may thereafter exceed the amount set forth in the preceding  sentence unless and until for 30 consecutive days the Specified Availability exceed the greater of (x) $22,000,000  and (y) 10.0% of Availability at such time, in which event a Liquidity Event shall no longer be deemed to be  continuing.   “Loan”:  a Revolving Credit Loan or a Swingline Loan, as the context shall require; collectively, the  “Loans”.  “Loan Account”:  as defined in Subsection 2.5(e).   “Loan Documents”:  this Agreement, the Fee Letter, any Notes, the L/C Requests, the Intercreditor  Agreement, the Guarantee and Collateral Agreements and any other Security Documents, each as amended,  supplemented, waived or otherwise modified from time to time and any other agreement entered into by any one or  more of the Loan Parties, on the one hand, and the Administrative Agent, the Collateral Agent, an Issuing Lender or  any Lender, on the other hand, that expressly relates to this Agreement and has ongoing obligations for the Loan  Parties.  “Loan Parties”:  Ultimate Parent, Holdings (unless and until Holdings is released from all of its obligations  pursuant to Subsection 9.16(h) of the Guarantee and Collateral Agreement), the Borrowers and the Subsidiary  Guarantors; individually, a “Loan Party”.  “Management Advances”:  (1) loans or advances made to directors, management members, officers,  employees or consultants of any Parent Entity, the Parent Borrower or any Restricted Subsidiary (x) in respect of  travel, entertainment or moving related expenses incurred in the ordinary course of business, (y) in respect of  moving related expenses incurred in connection with any closing or consolidation of any facility, or (z) in the  ordinary course of business and (in the case of this clause (z)) not exceeding $10,000,000 in the aggregate  outstanding at any time, (2) promissory notes of Management Investors acquired in connection with the issuance of  Management Stock to such Management Investors, or (3) other Guarantees of borrowings by Management Investors  in connection with the purchase of Management Stock, which Guarantees are permitted under Subsection 8.13.   “Management Investors”:  the management members, officers, directors, employees and other members of  the management of any Parent Entity, the Parent Borrower or any of their respective Subsidiaries, or family  members or relatives of any of the foregoing, or trusts, partnerships or limited liability companies for the benefit of  any of the foregoing, or any of their heirs, executors, successors and legal representatives, who at any date of  determination beneficially own or have the right to acquire, directly or indirectly, Capital Stock of the Parent  Borrower, any Restricted Subsidiary or any Parent Entity.  “Management Stock”:  Capital Stock of the Parent Borrower, any Restricted Subsidiary (including any  options, warrants or other rights in respect thereof) held by any of the Management Investors.  “Management Subscription Agreements”:  one or more stock subscription, stock option, grant or other  agreements which have been or may be entered into between the Parent Borrower, any Restricted Subsidiary or any  Parent Entity and one or more Management Investors (or any of their heirs, successors, assigns, legal representatives  or estates), with respect to the issuance to and/or acquisition, ownership and/or disposition by any of such parties of  common stock of the Parent Borrower, any Restricted Subsidiary or any Parent Entity, or options, warrants, units or  other rights in respect of common stock of the Parent Borrower, any Restricted Subsidiary or any Parent Entity, any  agreements entered into from time to time by transferees of any such stock, options, warrants or other rights in  

 

  44  connection with the sale, transfer or reissuance thereof, and any assumptions of any of the foregoing by third parties,  as amended, supplemented, waived or otherwise modified from time to time.  “Mandatory Revolving Credit Loan Borrowing”:  as defined in Subsection 2.4(c).  “Margin Stock”:  as defined in Regulation U of the Board as from time to time in effect and all official  rulings and interpretations thereunder or thereof.  “Market Capitalization”:  an amount equal to (i) the total number of issued and outstanding shares of  capital stock of the Parent Borrower or any Parent Entity on the date of declaration of the relevant dividend or  making of any other Restricted Payment, as applicable, multiplied by (ii) the arithmetic mean of the closing prices  per share of such capital stock on the New York Stock Exchange (or, if the primary listing of such capital stock is on  another exchange, on such other exchange) for the 30 consecutive trading days immediately preceding the date of  declaration of such dividend.  “Material Adverse Effect”:  a material adverse effect on (a) the business, operations, property or condition  (financial or otherwise) of Ultimate Parent and its Restricted Subsidiaries taken as a whole, (b) the validity or  enforceability as to the Loan Parties (taken as a whole) party thereto of the Loan Documents taken as a whole or  (c) the rights or remedies of the Agents and the Lenders under the Loan Documents (including with respect to the  Collateral comprising the Borrowing Base), in each case taken as a whole.  “Material Guarantor”:  Holdings and any Subsidiary Guarantor other than an Immaterial Guarantor.  “Material Opinion Guarantor”:  any Subsidiary that becomes a Subsidiary Guarantor, and the Eligible  Accounts and Eligible Inventory of such Subsidiary would comprise more than 2.5% of the Borrowing Base based  on the Borrowing Base Certificate most recently delivered under Subsection 7.2(f) and such Subsidiary’s Eligible  Accounts and Eligible Inventory as of the date such Borrowing Base Certificate reported the Borrowing Base.  “Material Subsidiaries”:  Restricted Subsidiaries of Ultimate Parent constituting, individually or in the  aggregate (as if such Restricted Subsidiaries constituted a single Subsidiary), a “significant subsidiary” in  accordance with Rule 1-02 under Regulation S-X.  “Materials of Environmental Concern”:  any hazardous or toxic substances or materials or wastes defined,  listed, or regulated as such in or under, or which may give rise to liability under, any applicable Environmental Law,  including gasoline, petroleum (including crude oil or any fraction thereof), petroleum products or by-products,  asbestos, polychlorinated biphenyls and urea-formaldehyde insulation.  “Maximum Incremental Facilities Amount”:  at any date of determination, the sum of (i) the greater of (x)  $500,000,000 and (y) EBITDA for the four fiscal quarters ended on or most recently prior to such date for which  financial statements have been delivered pursuant to Subsection 7.1 (amounts incurred pursuant to this clause (i), the  “Cash Capped Incremental Facility”) plus (ii) an unlimited amount if, after giving effect to the incurrence of such  amount (or on the date of the initial commitment to lend such additional amount after giving pro forma effect to the  incurrence of the entire committed amount of such additional amount), the Consolidated First Lien Leverage Ratio  (as defined in and calculated in accordance with the terms of the Term Loan Credit Agreement applicable to the  “Maximum Incremental Facilities Amount” and the “Ratio Incremental Facility” each under and as defined therein)  shall not exceed (x) 3.75 to 1.00 or (y) in the case of any such incurrence in connection with a Permitted Acquisition  (as defined in the Term Loan Credit Agreement), the Consolidated First Lien Leverage Ratio of Ultimate Parent  would equal or be less than the Consolidated First Lien Leverage Ratio of Ultimate Parent calculated on a pro forma  basis after giving effect to such Permitted Acquisition and Incurrence (in each case, as set forth in a certificate of a  Responsible Officer of the Parent Borrower delivered to the Administrative Agent at the time of such incurrence,  together with calculations demonstrating compliance with such ratio (amounts incurred pursuant to this clause (ii),  the “Ratio Incremental Facility”); (it being understood that (A) pro forma effect shall be given to the entire  committed amount of any such additional amount on the date of initial borrowing of such Indebtedness or entry into  the definitive agreement providing the commitment to fund such Indebtedness, such committed amount may  thereafter be borrowed and reborrowed in whole or in part, from time to time, without further compliance with this  

 

  45  clause (ii) and (B) for purposes of so calculating the Consolidated First Lien Leverage Ratio (as defined in the Term  Loan Credit Agreement) under this clause (ii), any additional amount incurred pursuant to this clause (ii) shall be  treated as if such amount is Consolidated First Lien Indebtedness (as defined in the Term Loan Credit Agreement),  regardless of whether such amount is actually secured or is secured by Liens ranking junior to the Liens securing the  Loan Document Obligations (as defined in the Term Loan Credit Agreement)) plus (iii) an additional amount equal  to the aggregate amount of all voluntary prepayments and buy-backs (with respect to buy-backs, valued at the pay  value of loans so acquired) of loans under the Term Loan Credit Agreement, unless such voluntary prepayments or  buy-backs, as applicable, were financed with the proceeds of refinancings of long-term Indebtedness (the  “Voluntary Prepayment Incremental Facility”); provided that, at the Parent Borrower’s option, capacity under the  Ratio Incremental Facility shall be deemed to be used before capacity under the Cash Capped Incremental Facility  and the Voluntary Prepayment Incremental Facility.  “Minimum Extension Condition”:  as defined in Subsection 2.8(b).  “Moody’s”:  as defined in the definition of “Cash Equivalents” in this Subsection 1.1.  “Multiemployer Plan”:  a Plan which is a multiemployer plan as defined in Section 4001(a)(3) of ERISA.  “Negotiable Collateral”:  letters of credit, letter of credit rights, instruments, promissory notes, drafts,  documents, and chattel paper (including electronic chattel paper and tangible chattel paper), and any and all  supporting obligations in respect thereof.  “Net Orderly Liquidation Value”:  the orderly liquidation value (net of costs and expenses estimated to be  incurred in connection with such liquidation) of the Loan Parties’ Inventory that is estimated to be recoverable in an  orderly liquidation of such Inventory expressed as a percentage of the net book value thereof, such percentage to be  as determined from time to time by reference to the most recent Inventory appraisal completed by a qualified third- party appraisal company (approved by the Administrative Agent in its Permitted Discretion) delivered to the  Administrative Agent.  “Net Proceeds”:  with respect to any new public or private issuance or sale of any securities or any capital  contribution (whether of property or assets, including cash), an amount equal to the gross proceeds in cash and Cash  Equivalents (or with respect to capital contributions of non-cash property or assets, the Fair Market Value) of such  issuance, sale or contribution net of attorneys’ fees, accountants’ fees, underwriters’ or placement agents’ fees,  discounts or commissions, and brokerage, consultant and other fees actually incurred in connection with such  issuance, sale or contribution and net of taxes paid or payable as a result, or in respect, thereof.  “New York Courts”:  as defined in Subsection 11.13(a).  “New York Supreme Court”:  as defined in Subsection 11.13(a).  “Non-Defaulting Lender”:  Any Lender other than a Defaulting Lender.  “Non-Excluded Taxes”:  all Taxes other than Excluded Taxes.  “Non-Extending Lender”:  any Lender that does not accept an Extension Offer.  “Non-Loan Party”:  each Subsidiary of Ultimate Parent that is not a Loan Party.  “Notes”:  the collective reference to the Revolving Credit Notes and the Swingline Note.  “Obligations”:  obligations of the Loan Parties from time to time arising under or in respect of the due and  punctual payment of (i) the principal of and premium, if any, and interest (including interest accruing during (or  would accrue but for) the pendency of any bankruptcy, insolvency, receivership or other similar proceeding,  regardless of whether allowed or allowable in such proceeding) on the Loans, when and as due, whether at maturity,  by acceleration, upon one or more dates set for prepayment or otherwise, (ii) each payment required to be made in  

 

  46  respect of any Letter of Credit, when and as due, including payments in respect of Reimbursement Obligations and  interest thereon, (iii) all other monetary obligations, including fees, costs, expenses and indemnities, whether  primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the  pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or  allowable in such proceeding), of the Loan Parties under this Agreement and the other Loan Documents, (iv) all  Bank Products Obligations and (v) all Vendor Financing Obligations. For the avoidance of doubt, any Loan made by  any foreign or domestic branch or Affiliate of any Lender pursuant to this Agreement shall constitute Obligations  under this Agreement and the other Loan Documents; provided that, notwithstanding anything to the contrary herein,  the Obligations shall exclude Excluded Swap Obligations.  “OFAC”:  The Office of Foreign Assets Control of the U.S. Department of the Treasury.  “Optional Payments”:  as defined in Subsection 8.6(e).  “Organizational Documents”:  with respect to any Person, (a) the articles of incorporation, certificate of  incorporation or certificate of formation (or the equivalent organizational documents) of such Person and (b) the  bylaws or operating agreement (or the equivalent governing documents) of such Person.  “Other Representatives”:  (x) each of Wells Fargo and JPMorgan Chase Bank, N.A., in their collective  capacity as Joint Lead Arrangers and Joint Bookmanagers, and (y) Fifth Third Bank, National Association, in its  capacity as Syndication Agent.  “Other Revolving Credit Commitments”:  one or more Tranches of revolving credit commitments  hereunder or extended Commitments in respect of the Revolving Credit Facility that result from a Refinancing  Amendment.  “Other Revolving Credit Loans”:  the Revolving Credit Loans made pursuant to any Other Revolving  Credit Commitment.  “Other Term Loans”:  one or more Tranches of term loan commitments hereunder that result from a  Refinancing Amendment.  “Other Term Commitments”:  one or more Tranches of term Loans that result from a Refinancing  Amendment.  “Parent Borrower”:  as defined in the Preamble hereto.  “Parent Entity”:  any of Ultimate Parent, Holdings, any Other Parent, and any other Person that is a  Subsidiary of Ultimate Parent, Holdings or any Other Parent, and of which Parent Borrower is a Subsidiary, in each  case, solely for so long as Parent Borrower is a Subsidiary of such Person. As used herein, “Other Parent” means a  Person of which Parent Borrower becomes a Subsidiary after the Closing Date that is designated by the Parent  Borrower as an “Other Parent”; provided that either (x) immediately after Parent Borrower first becomes a  Subsidiary of such Person, more than 50% of the Voting Stock of such Person shall be held by one or more Persons  that held more than 50% of the Voting Stock of a Parent Entity of the Parent Borrower immediately prior to Parent  Borrower first becoming such Subsidiary or (y) such Person shall be deemed not to be an Other Parent for the  purpose of determining whether a Change of Control shall have occurred by reason of Parent Borrower first  becoming a Subsidiary of such Person.   “Parent Entity Expenses”: expenses, taxes and other amounts incurred or payable by any Parent Entity in  respect of which the Parent Borrower is permitted to make dividends, payments or distributions pursuant to  Subsection 8.3.  “Patriot Act”:  as defined in Subsection 11.18.  “Payment Conditions”:  the tests in Subsections 8.2(a), 8.2(b), 8.3(a), 8.4(b)(iii)(1), 8.5, 8.6(a) and 8.12(a).   

 

  47  “Payment Recipient”: as defined in Subsection 10.17(a).  “PBGC”:  the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of  ERISA (or any successor thereto).  “Permitted Acquisition”:  as defined in Subsection 8.4(b).  “Permitted Discretion”:  the commercially reasonable judgment of the Administrative Agent exercised in  good faith in accordance with customary business practices for comparable asset-based lending transactions, as to  any factor which the Administrative Agent reasonably determines:  (a) will or reasonably could be expected to  adversely affect in any material respect the value of any Eligible Inventory or Eligible Accounts, the enforceability  or priority of the applicable Agent’s Liens thereon, the ability to appraise or inspect the ABL Priority Collateral or  the amount which any Agent, the Lenders or any Issuing Lender would be likely to receive (after giving  consideration to delays in payment and costs of enforcement) in the liquidation of such Eligible Inventory or  Eligible Accounts or (b) is evidence that any collateral report or financial information delivered to the  Administrative Agent by any Person on behalf of the applicable Borrower is incomplete, inaccurate or misleading in  any material respect. In exercising such judgment, the Administrative Agent may consider, without duplication, such  factors already included in or tested by the definition of Eligible Inventory or Eligible Accounts, as well as any of  the following:  (i) changes after the Closing Date in any material respect in demand for, pricing of, or product mix of  Inventory; (ii) changes after the Closing Date in any material respect in any concentration of risk with respect to  Accounts; and (iii) any other factors arising after the Closing Date that change in any material respect the credit risk  of lending to the Borrowers on the security of the Eligible Inventory or Eligible Accounts.  “Permitted Hedging Arrangements”:  as defined in Subsection 8.10.  “Permitted Indebtedness”:  as defined in Subsection 8.13.  “Permitted Investments”:  as defined in Subsection 8.12.   “Permitted Jurisdiction”: any of Canada, the United Kingdom, Australia, New Zealand, Germany, Austria,  Ireland, Switzerland, The Netherlands, Luxembourg, Belgium, Denmark, Finland, Sweden, the British Virgin  Islands, the Cayman Islands, and any other jurisdiction approved in writing by the Administrative Agent and the  Required Lenders.  “Permitted Liens”:  as defined in Subsection 8.14.  “Person”:  an individual, partnership, corporation, company, limited liability company, business trust, joint  stock company, trust, unincorporated association, joint venture, Governmental Authority or other entity of whatever  nature.  “Plan”:  at a particular time, any employee benefit plan which is covered by ERISA and in respect of which  Ultimate Parent or a Commonly Controlled Entity is an “employer” as defined in Section 3(5) of ERISA.  “Plan Asset Regulations”: 29 CFR § 2510.3-101 et seq., as modified by Section 3(42) of ERISA, as  amended from time to time.  “Platform”:  as defined in Subsection 11.2(e).  “Pound Sterling” or “£”: pounds sterling in the lawful currency of the United Kingdom, as in effect from  time to time.  “PPSA”: the Personal Property Security Act (Ontario), including the regulations thereto; provided, that, if  perfection or the effect of perfection or non-perfection or the priority of any Lien created hereunder or under any  other Loan Document on the Collateral is governed by the personal property security legislation or other applicable  legislation with respect to personal property security in effect in a jurisdiction in Canada other than the Province of  

 

  48  Ontario, “PPSA” means the Personal Property Security Act or such other applicable legislation (including the Civil  Code of Quebec) in effect from time to time in such other jurisdiction in Canada for purposes of the provisions  hereof relating to such perfection, effect of perfection or non-perfection or priority.  “Preferred Stock”:  as applied to the Capital Stock of any corporation or company, Capital Stock of any  class or classes (however designated) that by its terms is preferred as to the payment of dividends, or as to the  distribution of assets upon any voluntary or involuntary liquidation or dissolution of such corporation or company,  over Capital Stock of any other class of such corporation or company.  “Pro Forma Basis” or “Pro Forma Compliance”:  with respect to any determination for any period, that  such determination shall be made giving pro forma effect to any event that by the terms of the Loan Documents  requires compliance on a “Pro Forma Basis” or “Pro Forma Compliance”, together with all transactions relating  thereto, in each case consummated during such period or thereafter and on or prior to the date of determination  (including any incurrence, assumption, refinancing or repayment of Indebtedness), as if such acquisition, investment,  sale (or other disposition), other event and related transactions had been consummated on the first day of such period,  in each case based on historical results accounted for in accordance with GAAP, and taking into account  adjustments consistent with the definition of EBITDA, including the amount (for the avoidance of doubt, without  duplication of any such amount added to EBITDA for any such period) of net cost savings projected by the Parent  Borrower in good faith to be realized as the result of actions taken or to be taken on or prior to the date that is 12  months after the closing date of such transaction and prior to or during such period (calculated on a Pro Forma Basis  as though such cost savings had been realized on the first day of such period), net of the amount of actual benefits  realized during such period from such actions, in an aggregate amount not to exceed 15% of EBITDA (calculated  before giving effect to such cost savings) in any period of four fiscal quarters. For purposes of making any  computation referred to in the preceding sentence, if, since the beginning of such period, (1) Ultimate Parent or any  Restricted Subsidiary has incurred any Indebtedness that remains outstanding on such date of determination or if the  transaction giving rise to the need to calculate the Consolidated Fixed Charge Coverage Ratio is an incurrence of  Indebtedness by Ultimate Parent or any Restricted Subsidiary, EBITDA and Consolidated Interest Expense for such  period shall be calculated after giving effect on a pro forma basis to such Indebtedness as if such Indebtedness had  been incurred on the first day of such period, (2) Ultimate Parent or any Restricted Subsidiary has repaid,  repurchased, redeemed, defeased or otherwise acquired, retired or discharged any Indebtedness that is no longer  outstanding on such date of determination (each, a “Discharge”) or if the transaction giving rise to the need to  calculate the Consolidated Fixed Charge Coverage Ratio involves a Discharge of Indebtedness (in each case other  than Indebtedness incurred under any revolving credit facility unless such Indebtedness has been repaid with an  equivalent permanent reduction in commitments thereunder), EBITDA and Consolidated Interest Expense for such  period shall be calculated after giving effect on a pro forma basis to such Discharge of Indebtedness, including with  the proceeds of such new Indebtedness, as if such Discharge had occurred on the first day of such period, (3)  Ultimate Parent or any Restricted Subsidiary shall have disposed of any company, any business or any group of  assets constituting an operating unit of a business, including any such disposition occurring in connection with a  transaction causing a calculation to be made hereunder, or designated any Restricted Subsidiary as an Unrestricted  Subsidiary (any such disposition or designation, a “Sale”), the EBITDA for such period shall be reduced by an  amount equal to the EBITDA (if positive) attributable to the company, business, group of assets or Subsidiary that is  the subject of such Sale for such period or increased by an amount equal to the EBITDA (if negative) attributable  thereto for such period and Consolidated Interest Expense for such period shall be reduced by an amount equal to (A)  the Consolidated Interest Expense attributable to any Indebtedness of Ultimate Parent or any Restricted Subsidiary  repaid, repurchased, redeemed, defeased or otherwise acquired, retired or discharged with respect to Ultimate Parent  and its continuing Restricted Subsidiaries in connection with such Sale for such period (including but not limited to  through the assumption of such Indebtedness by another Person) plus (B) if the Capital Stock of any Restricted  Subsidiary is disposed of in such Sale or any Restricted Subsidiary is designated as an Unrestricted Subsidiary, the  Consolidated Interest Expense for such period attributable to the Indebtedness of such Restricted Subsidiary to the  extent Ultimate Parent and its continuing Restricted Subsidiaries are no longer liable for such Indebtedness after  such Sale, (4) Ultimate Parent or any Restricted Subsidiary (by merger, consolidation or otherwise) shall have made  an Investment in any Person that thereby becomes a Restricted Subsidiary, or otherwise acquired any company, any  business or any group of assets constituting an operating unit of a business, including any such Investment or  acquisition occurring in connection with a transaction causing a calculation to be made hereunder, or designated any  Unrestricted Subsidiary as a Restricted Subsidiary (any such Investment, acquisition or designation, a “Purchase”),  EBITDA and Consolidated Interest Expense for such period shall be calculated after giving pro forma effect thereto  

 

  49  (including the incurrence of any related Indebtedness) as if such Purchase occurred on the first day of such period,  and (5) any Person became a Restricted Subsidiary or was merged or consolidated with or into Ultimate Parent or  any Restricted Subsidiary, and since the beginning of such period such Person shall have Discharged any  Indebtedness or made any Sale or Purchase that would have required an adjustment pursuant to clause (2), (3) or (4)  above if made by Ultimate Parent or a Restricted Subsidiary since the beginning of such period, EBITDA and  Consolidated Interest Expense for such period shall be calculated after giving pro forma effect thereto as if such  Discharge, Sale or Purchase occurred on the first day of such period. For purposes of this definition, whenever pro  forma effect is to be given to any Sale, Purchase or other transaction, or the amount of income or earnings relating  thereto and the amount of Consolidated Interest Expense associated with any Indebtedness incurred, repaid,  repurchased, redeemed, defeased or otherwise acquired, retired or discharged in connection therewith, the pro forma  calculations in respect thereof shall be as determined in good faith by a Responsible Officer of the Borrower  Representative.  If any Indebtedness bears a floating rate of interest and is being given pro forma effect, the interest  expense on such Indebtedness shall be calculated as if the rate in effect on the date of determination had been the  applicable rate for the entire period (taking into account any Interest Rate Protection Agreement applicable to such  Indebtedness).  If any Indebtedness bears, at the option of Ultimate Parent or a Restricted Subsidiary, a rate of  interest based on a prime or similar rate, a eurocurrency interbank offered rate or other fixed or floating rate, and  such Indebtedness is being given pro forma effect, the interest expense on such Indebtedness shall be calculated by  applying such optional rate as Ultimate Parent or such Restricted Subsidiary may designate.  Interest on a Financing  Lease Obligation shall be deemed to accrue at an interest rate determined in good faith by a responsible financial or  accounting officer of Ultimate Parent to be the rate of interest implicit in such Financing Lease Obligation in  accordance with GAAP.   “Projections”: those financial projections included in the confidential information memoranda and related  material prepared in connection with the syndication of the Facility and provided to the Lenders on or about July 16,  2020.   “PTE”:  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”:  as defined in Subsection 11.2(e).  “Purchase”: as defined in the definition of “Pro Forma Basis” or “Pro Forma Compliance” in this  Subsection 1.1.  “Purchase Money Obligation”:  any Indebtedness incurred to finance or refinance the acquisition, leasing,  construction or improvement of property (real or personal) or assets, and whether acquired through the direct  acquisition of such property or assets or the acquisition of the Capital Stock of any Person owning such property or  assets, or otherwise.  “QFC”:  has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in  accordance with, 12 U.S.C. § 5390(c)(8)(D).  “QFC Credit Support”:  as defined in Subsection 11.24.  “Receivable”:  a right to receive payment pursuant to an arrangement with another Person pursuant to  which such other Person is obligated to pay, as determined in accordance with GAAP.  “Receivables Facility”: any of one or more receivables financing facilities (and any guarantee of such  financing facility by a non-Loan Party), as amended, supplemented, modified, extended, renewed, restated, or  refunded from time to time, the obligations of which are non-recourse (except for customary representations,  warranties, covenants, indemnities, guarantees of performance and other similar agreements and undertakings made  in connection with such facilities) to the Ultimate Parent and the Restricted Subsidiaries (other than one or more  Receivables Subsidiaries and the non-Loan Party guarantor thereof) pursuant to which the Ultimate Parent or any  Restricted Subsidiary sells, directly or indirectly, grants a security interest in or otherwise transfers its accounts  receivable to either (i) a Lender of an Affiliate of a Lender or (ii) a Receivables Subsidiary that in turn funds such  purchase by purporting to sell, grant a security interest in or otherwise transfer its accounts receivable to a Lender of  

 

  50  an Affiliate of a Lender or borrowing from a Lender of an Affiliate of a Lender or from another Receivables  Subsidiary that in turn funds itself by borrowing from such a Lender of an Affiliate of a Lender; provided that the  aggregate amount of Indebtedness under a Receivables Facility shall not exceed $50,000,000 at any one time  outstanding.  “Receivables Subsidiary”: any Restricted Subsidiary formed for the purpose of facilitating or entering into  one or more Receivables Facilities, and in each case engages only in business or activities reasonably related or  incidental thereto and/or owning or holding the Capital Stock of another Person formed for the purposes of engaging  in a Receivables Facility and to which the Ultimate Parent or any Restricted Subsidiary transfers accounts  receivables and assets related to such accounts receivable.  “Recovery Event”:  any settlement of or payment in respect of any property or casualty insurance claim or  any condemnation proceeding relating to any asset of Ultimate Parent or any of its Restricted Subsidiaries.  “refinance”:  refinance, refund, replace, renew, repay, modify, restate, defer, substitute, supplement, reissue,  resell or extend (including pursuant to any defeasance or discharge mechanism); and the terms “refinances,”  “refinanced” and “refinancing” as used for any purpose in this Agreement shall have a correlative meaning.  “Refinanced Debt”:  as defined in the definition of “Credit Agreement Refinancing Indebtedness.”  “Refinancing Amendment”:  an amendment to this Agreement in form and substance reasonably  satisfactory to the Administrative Agent and the institutions providing such Credit Agreement Refinancing  Indebtedness executed by each of (a) the Parent Borrower, (b) the Administrative Agent and (c) each financial  institution that agrees to provide any portion of the Credit Agreement Refinancing Indebtedness being incurred  pursuant thereto, in accordance with Subsection 2.7.  “Register”:  as defined in Subsection 11.6(b)(iv).  “Regulation S-X”:  Regulation S-X promulgated by the United States Securities and Exchange Commission,  as in effect on the Closing Date.  “Regulation T”:  Regulation T of the Board as in effect from time to time.  “Regulation U”:  Regulation U of the Board as in effect from time to time.  “Regulation X”:  Regulation X of the Board as in effect from time to time.  “Reimbursement Obligations”:  the obligation of the applicable Borrower to reimburse the applicable  Issuing Lender pursuant to Subsection 3.5(a) for amounts drawn under the applicable Letters of Credit.  “Related Business”:  those businesses in which the Ultimate Parent or any of its Subsidiaries is engaged on  the Closing Date, or that are similar, related, complementary, incidental or ancillary thereto or extensions,  developments or expansions thereof.  “Related Parties”:  with respect to any Person, such Person’s affiliates and the partners, officers, directors,  trustees, employees, equity holders, shareholders, members, attorneys and other advisors, agents and controlling  persons of such person and of such person’s affiliates and “Related Party” shall mean any of them.  “Related Taxes”:  (x) any taxes, charges or assessments, including but not limited to sales, use, transfer,  rental, ad valorem, value added, stamp, property, consumption, franchise, license, capital, net worth, gross receipts,  excise, occupancy, intangibles or similar taxes, charges or assessments (other than federal, state or local taxes  measured by income and federal, state or local withholding imposed by any government or other taxing authority on  payments made by any Parent Entity other than to another Parent Entity), required to be paid by any Parent Entity by  virtue of its being incorporated or having Capital Stock outstanding (but not by virtue of owning stock or other  equity interests of any corporation or other entity other than the Parent Borrower, any of its Subsidiaries or any  

 

  51  Parent Entity), or being a holding company parent of the Parent Borrower, any of its Subsidiaries or any Parent  Entity or receiving dividends from or other distributions in respect of the Capital Stock of the Parent Borrower, any  of its Subsidiaries or any Parent Entity, or having guaranteed any obligations of the Parent Borrower or any  Subsidiary thereof, or having made any payment in respect of any of the items for which the Parent Borrower or any  of its Subsidiaries is permitted to make payments to any Parent Entity pursuant to Subsection 8.3, or acquiring,  developing, maintaining, owning, prosecuting, protecting or defending its intellectual property and associated rights  (including but not limited to receiving or paying royalties for the use thereof), or assertions of infringement,  misappropriation, dilution or other violation of third-party intellectual property or associated rights, to the extent  relating to the business or businesses of the Parent Borrower or any Subsidiary thereof, (y) any taxes attributable to  any taxable period (or portion thereof) ending on or prior to the Closing Date, or to the consummation of any of the  Transactions, or to any Parent Entity’s receipt of (or entitlement to) any payment in connection with the  Transactions, including any payment received after the Closing Date pursuant to any agreement related to the  Transactions or (z) any other federal, state, foreign, provincial or local taxes measured by income for which any  Parent Entity is liable up to an amount not to exceed, with respect to federal taxes, the amount of any such taxes that  the Parent Borrower and its Subsidiaries would have been required to pay on a separate company basis, or on a  consolidated basis as if the Parent Borrower had filed a consolidated return on behalf of an affiliated group (as  defined in Section 1504 of the Code) of which it were the common parent, or with respect to state, foreign,  provincial and local taxes, the amount of any such taxes that the Parent Borrower and its Subsidiaries would have  been required to pay on a separate company basis, or on a consolidated, combined, unitary or affiliated basis as if the  Parent Borrower had filed a consolidated, combined unitary or affiliated return on behalf of an affiliated group (as  defined in the applicable state, foreign, provincial or local tax laws for filing such return) consisting only of the  Parent Borrower and its Subsidiaries. Taxes include all interest, penalties and additions relating thereto.  “Relevant Governmental Body”:  the Board of Governors of the Federal Reserve System or the Federal  Reserve Bank of New York, or a committee officially endorsed or convened by the Board of Governors of the Federal  Reserve System or the Federal Reserve Bank of New York, or any successor thereto.  “Reportable Event”:  any of the events set forth in Section 4043(c) of ERISA, other than those events as to  which the 30 day notice period is waived under PBGC Regulation Section 4043 or any successor regulation thereto.  “Required Lenders”:  Lenders the sum of whose outstanding Commitments (or after the termination thereof,  outstanding Individual Lender Exposures) represent a majority of aggregate Commitments (or after the termination  thereof, the sum of the Individual Lender Exposures) at such time; provided that the Commitments (or Individual  Lender Exposures) held or deemed held by Defaulting Lenders shall be excluded for purposes of making a  determination of Required Lenders.  “Requirement of Law”:  as to any Person, the Organizational Documents of such Person, and any law,  statute, ordinance, code, decree, treaty, rule or regulation or determination of an arbitrator or a court or other  Governmental Authority, in each case applicable to or binding upon such Person or any of its material property or to  which such Person or any of its material property is subject, including laws, ordinances and regulations pertaining to  zoning, occupancy and subdivision of real properties; provided that the foregoing shall not apply to any non-binding  recommendation of any Governmental Authority.  “Responsible Officer”:  as to any Person, any of the following officers of such Person:  (a) the chief  executive officer or the president of such Person and, with respect to financial matters, the chief financial officer, the  treasurer, the controller or the vice president–finance (or substantial equivalent) of such Person, (b) any vice  president of such Person or, with respect to financial matters, any assistant treasurer or assistant controller of such  Person, in each case who has been designated in writing to the Administrative Agent or the Collateral Agent as a  Responsible Officer by such chief executive officer or president of such Person or, with respect to financial matters,  by such chief financial officer of such Person, (c) with respect to Subsection 7.7 and without limiting the foregoing,  the general counsel of such Person and (d) with respect to ERISA matters, the senior vice president–human  resources (or substantial equivalent) of such Person; and (e) any other individual designated as a “Responsible  Officer” for purposes of this Agreement by the Board of Directors or equivalent body of such person.  “Restricted Indebtedness”:  as defined in Subsection 8.6(a).  

 

  52  “Restricted Payment”:  any dividend or any other payment whether direct or indirect (other than dividends  payable solely in common stock of the Parent Borrower or options, warrants or other rights to purchase common  stock of the Parent Borrower) on, or any payment on account of, or any setting apart of assets for a sinking or other  analogous fund for, the purchase, redemption, defeasance, retirement or other acquisition of, any shares of any class  of Capital Stock of the Parent Borrower (other than any acquisition of Capital Stock deemed to occur upon the  exercise of options if such Capital Stock represents a portion of the exercise price thereof) or any warrants or options  to purchase any such Capital Stock, whether now or hereafter outstanding, or any other distribution (other than (x)  distributions payable solely in common stock of the Parent Borrower or (y) options, warrants or other rights to  purchase common stock of the Parent Borrower) in respect thereof, either directly or indirectly, whether in cash or  property or in obligations of the Parent Borrower or its Restricted Subsidiaries, other than one payable solely to any  Borrower or one or more Subsidiary Guarantors.  “Restricted Payment Transaction”:  any Restricted Payment permitted pursuant to Subsection 8.3, any  Permitted Investment, any transaction specifically excluded from the definition of the term “Restricted Payment”  (including pursuant to the exceptions contained the parenthetical exclusions of such definition) or any Investment or  acquisition permitted pursuant to Subsection 8.4.  “Restricted Subsidiary”:  any Subsidiary of Ultimate Parent other than an Unrestricted Subsidiary.  “Revolving Credit Facility”:  the revolving credit facility available to the Borrowers hereunder.  “Revolving Credit Lender”:  any Lender having a Commitment hereunder and/or a Revolving Credit Loan  outstanding hereunder.  “Revolving Credit Loan”:  a Loan made pursuant to Subsection 2.1(a).  “Revolving Credit Note”:  as defined in Subsection 2.1(d).  “Revolving Exposure”:  at any time the Dollar Equivalent of the aggregate principal amount at such time of  all outstanding Revolving Credit Loans. The Revolving Exposure of any Revolving Credit Lender at any time shall  equal its Commitment Percentage of the aggregate Revolving Exposure at such time.  “Rollover Indebtedness”:  Indebtedness of a Loan Party issued to any lender under the Term Loan Credit  Facility in lieu of such lender’s pro rata portion of any repayment of Term Loans made pursuant to and in  accordance with the terms of the Term Loan Credit Agreement.  “S&P”:  as defined in the definition of the term “Cash Equivalents” in this Subsection 1.1.  “Sale and Leaseback Transaction”:  any arrangement with any Person providing for the leasing by Ultimate  Parent or any of its Restricted Subsidiaries of real or personal property which has been or is to be sold or transferred  by Ultimate Parent or any such Restricted Subsidiary to such Person or to any other Person to whom funds have  been or are to be advanced by such Person on the security of such property or rental obligations of Ultimate Parent  or such Restricted Subsidiary.  “Sanctioned Country”: a country or territory that is a target of comprehensive Sanctions, including without  limitation Cuba, Iran, North Korea, Syria and the Crimea region of Ukraine.  “Sanctioned Person”: (a) a Person on any list of targets identified or designated pursuant to any Sanctions,  (b) a Person or legal entity that is a target of Sanctions, (c) any Person operating, organized or resident in a  Sanctioned Country, (d) an agency of or organization controlled by a Sanctioned Country or (e) any Person directly  or indirectly owned or controlled (individually or in the aggregate) by or acting on behalf of any such Person or  Persons described in clauses (a) to (d) above.  “Sanctions”: individually and collectively, respectively, any and all economic sanctions, trade sanctions,  financial sanctions, sectoral sanctions, secondary sanctions, trade embargoes anti-terrorism laws and other sanctions  

 

  53  laws, regulations or embargoes, including those imposed, administered or enforced from time to time by:  (a) the  United States of America, including those administered by OFAC, the U.S. Department of State, the U.S.  Department of Commerce, or through any existing or future executive order, (b) the United Nations Security  Council, (c) the European Union, (d) Her Majesty’s Treasury of the United Kingdom, or (d) any other Governmental  Authority, to the extent applicable to any Loan Party or any of its Subsidiaries.  “Secured Leverage Ratio”:  as of any date of determination, the ratio (calculated on a Pro Forma Basis) of  (a) Financial Covenant Debt of Ultimate Parent and its Restricted Subsidiaries determined on a consolidated basis in  accordance with GAAP as at such date secured by Liens on property or assets of Ultimate Parent and its Restricted  Subsidiaries (other than property or assets held in a defeasance or similar trust or arrangement for the benefit of the  Indebtedness secured thereby so long as the liability would no longer appear on the balance sheet of Ultimate Parent  in accordance with GAAP) minus Unrestricted Cash to (b) EBITDA of Ultimate Parent and its Restricted  Subsidiaries for the four fiscal quarters ended on or most recently prior to such date for which financial statements  have been delivered pursuant to Subsection 7.1; provided that, in the event that the Parent Borrower shall classify  Indebtedness incurred on the date of determination as secured in part pursuant to Subsection 8.14(s) in respect of  Indebtedness incurred pursuant to Subsection 8.13(c) and in part pursuant to another clause of Subsection 8.14 in  respect of Indebtedness incurred pursuant to another clause of Subsection 8.13, any calculation of the Secured  Leverage Ratio, including in the definition of “Secured Ratio Indebtedness”, shall not include any such Indebtedness  (and shall not give effect to any discharge of Indebtedness from the proceeds thereof) not incurred pursuant to  Subsections 8.14(s) and 8.13(c).  “Secured Parties”:  the “Secured Parties” as defined in the Guarantee and Collateral Agreement.  “Secured Ratio Indebtedness”: Indebtedness of any Borrower evidenced by any notes, other debt securities,  or other indebtedness; provided that (i) immediately after giving effect to each issuance of such Secured Ratio  Indebtedness, the Secured Leverage Ratio is less than or equal to 5.50:1.00 and (ii) any such Secured Ratio  Indebtedness shall be (x) secured on a junior basis with this Facility with respect to the ABL Priority Collateral and  on a pari passu or junior basis with Cash Flow Priority Obligations (or any renewal, extension, refinancing,  replacement and refunding indebtedness in respect thereof permitted by the terms of this Agreement) with respect to  the Cash Flow Priority Collateral and (y) subject to the terms of the Intercreditor Agreement or another intercreditor  agreement in form and substance satisfactory to the Administrative Agent.  “Security Documents”:  the collective reference to the Guarantee and Collateral Agreements and all other  similar security documents hereafter delivered to the Collateral Agent granting or perfecting a Lien on any asset or  assets of any Person to secure the obligations and liabilities of the Loan Parties hereunder and/or under any of the  other Loan Documents or to secure any guarantee of any such obligations and liabilities, including any security  documents executed and delivered or caused to be delivered to the Collateral Agent pursuant to Subsection 7.9(b) or  7.9(c), in each case, as amended, supplemented, waived or otherwise modified from time to time.  “Set”:  the collective reference to Eurodollar Loans or BA Equivalent Rate Loans of a single Tranche, the  then current Interest Periods with respect to all of which begin on the same date and end on the same later date  (whether or not such Loans shall originally have been made on the same day).  “Settlement Service”:  as defined in Subsection 11.6(b).  “Single Employer Plan”:  any Plan which is covered by Title IV or Section 302 of ERISA or Section 412 of  the Code, but which is not a Multiemployer Plan.  “SOFR”: with respect to any day, a rate per annum equal to the secured overnight financing rate for such  Business Day published by the Federal Reserve Bank of New York (or a successor administrator of the secured  overnight financing rate) on the Federal Reserve Bank of New York’s Website (or any successor source for the  secured overnight financing rate identified as such by the administrator of the secured overnight financing rate from  time to time).  

 

  54  “Solvent” and “Solvency”:  with respect to any Person on a particular date, the condition 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 as such debts and liabilities 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 amount of capital and (e) in the case of any Loan Party formed under the laws of Canada or a province or  territory thereof, is not an “insolvent person” within the meaning of such term in the Bankruptcy and Insolvency Act  (Canada).  “Specified Availability”: at any time, the sum of (i) the aggregate Available Loan Commitments of all  Lenders plus (ii) Specified Unrestricted Cash, plus (iii) Specified Suppressed Availability.  “Specified Consignment Inventory”: any Inventory subject to an arrangement pursuant to which (x) such  Inventory is placed with an intermediary for the purpose of marketing and resale by such Person for which the  Parent Borrower or the applicable Subsidiary Guarantor receives payment directly from third-party purchaser of  such Inventory, (y) the Parent Borrower or the applicable Loan Party retains title to such Inventory until the  purchase thereof by such third-party purchaser, and (z) the Parent Borrower or applicable Subsidiary Guarantor pays  to the intermediary a commission in respect of such third-party purchase.  “Specified Default”:  (a) the occurrence and continuance of an Event of Default under Subsection 9.1(b) as  a result of a material breach of any representation or warranty set forth in Subsection 5.23 or Subsection 5.24, (b) the  occurrence and continuance of an Event of Default under Subsection 9.1(c) as a result of the failure of any Loan  Party to comply with the terms of Subsection 4.16 or a failure to comply with the delivery obligations with respect  to Borrowing Base Certificates set forth in Subsection 7.2(f) or (c) the occurrence and continuance of an Event of  Default under Subsection 9.1(a) or Subsection 9.1(f).  “Specified Representation”:  the representations set forth in (i) the last sentence of Subsection 5.2, (ii)  Subsections 5.3(a) (with respect to due organization and valid existence), 5.4 (other than the second sentence  thereof), 5.12 and 5.14 (subject to such limitations as may be agreed between the Borrower Representative and the  applicable Additional Lenders), (iii) the first sentence of Subsection 5.15, (iv) (as relates to Sanctions only) the third  sentence of 5.25 and (v) (as relates to the use of proceeds of the Loans made on the date of the funding of the  applicable Accordion Facility Increase not violating Sanctions) the fourth sentence of 5.25.  “Specified Suppressed Availability”:  the amount, if positive, by which the Borrowing Base exceeds the  aggregate amount of the Commitments; provided that if aggregate Available Loan Commitments of all Lenders are  less than the lesser of (i) 5% of the lesser of (x) the aggregate amount of the Commitments and (y) the Borrowing  Base and (ii) $15,000,000, Specified Suppressed Availability shall be zero.  “Specified Transaction”:  (a) any Restricted Payment pursuant to Subsection 8.3(j), (b) any acquisition  permitted pursuant to Subsection 8.4(b)(iii)(1), (c) any investment permitted pursuant to clause (a) of the definition  of “Permitted Investment”, (d) any payment, repurchase or redemption pursuant to Subsection 8.6(a); (e) any merger,  consolidation, amalgamation or asset sale pursuant to Subsection 8.2(a) or 8.2(b), and (f) any Asset Sale pursuant to  Subsection 8.5.  “Specified Unrestricted Cash”:  as of any date of determination, an amount equal to all Unrestricted Cash  of the Parent Borrower and its Restricted Subsidiaries that, in the case of cash, is deposited in (i) DDAs or (ii) any  other deposit accounts, in each case described in (i) or (ii) with respect to which a control agreement is in place  between the applicable Loan Party, the applicable depositary institution and the Administrative Agent or the  Collateral Agent (or over which any such Agent has “control” whether or not pursuant to a control agreement) or  that, in the case of Cash Equivalents, (i) the Collateral Agent has a valid and perfected Lien in such Cash  Equivalents and (ii) such Cash Equivalents are not in a securities account in respect of which the applicable Loan  Party has entered into a “control agreement” with the applicable broker or securities intermediary for purposes of  perfecting a security interest in favor of a third party; provided that, solely for the purpose of determining whether  

 

  55  there has been a Dominion Event or a Liquidity Event, such Unrestricted Cash shall be in an amount not to exceed  the lesser of (x) 5.0% of Availability and (y) $15,000,000.  “Spot Rate of Exchange”:  with respect to any foreign currency, at any date of determination thereof, the  arithmetic average of the spot rates of exchange of Wells Fargo in the market where its foreign currency exchange  operations in respect of such currency are then being conducted at approximately 11:00 a.m. New York time on such  date for delivery two (2) Business Days later; provided that with respect to any Letters of Credit denominated in any  Designated Foreign Currency (x) for the purposes of determining the Dollar Equivalent of L/C Obligations and for  the calculation of L/C Fees and related commissions, the Spot Rate of Exchange shall be calculated on the first  Business Day of each month.  “Springing Maturity Date”: as defined in the definition of “Termination Date” in this Subsection 1.1.  “Standard Letter of Credit Practice”: for each Issuing Lender, any domestic or foreign law or letter of credit  practices applicable in the city in which Issuing Lender issued the applicable Letter of Credit or, for its branch or  correspondent, such laws and practices applicable in the city in which it has advised, confirmed or negotiated such  Letter of Credit, as the case may be, in each case, (a) which letter of credit practices are of banks that regularly issue  letters of credit in the particular city, and (b) which laws or letter of credit practices are required or permitted under  ISP or UCP, as chosen in the applicable Letter of Credit.  “Standby Letter of Credit”:  as defined in Subsection 3.1(b).  “Stated Amount”:  at any time, as to any Letter of Credit, (i) if the Letter of Credit is denominated in  Dollars, the maximum amount available to be drawn thereunder (regardless of whether any conditions for drawing  could then be met) and (ii) if the Letter of Credit is denominated in a Designated Foreign Currency, the Dollar  Equivalent of the maximum amount available to be drawn under the Letter of Credit (regardless of whether any  conditions for drawing could then be met).  “Stated Maturity”:  with respect to any Indebtedness, the date specified in such Indebtedness as the fixed  date on which the payment of principal of such Indebtedness is due and payable, including pursuant to any  mandatory redemption provision (but excluding any provision providing for the repurchase or repayment of such  Indebtedness at the option of the holder thereof upon the happening of any contingency).  “Statutory Reserves”:  for any day as applied to a Eurodollar Loan, the average maximum rate at which  reserves (including any marginal, supplemental or emergency reserves) are required to be maintained during such  Interest Period under Regulation D by member banks of the United States Federal Reserve System in New York  City with deposits exceeding one billion dollars against “Eurocurrency liabilities” (as such term is used in  Regulation D). Eurodollar Loans shall be deemed to constitute Eurocurrency liabilities and to be subject to such  reserve requirements without benefit of or credit for proration, exceptions or offsets which may be available from  time to time to any Lender under Regulation D.  “Subsidiary”:  as to any Person, a corporation, partnership, limited liability company or other entity (a) of  which shares of stock or other ownership interests having ordinary voting power (other than stock or such other  ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the  board of directors or other managers of such corporation, partnership, limited liability company or other entity are at  the time owned by such Person, or (b) the management of which is otherwise controlled, directly or indirectly  through one or more intermediaries, or both, by such Person and, in the case of this clause (b), which is treated as a  consolidated subsidiary for accounting purposes. Unless otherwise qualified, all references to a “Subsidiary” or to  “Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of the Parent Borrower.  “Subsidiary Borrower Joinder”:  a joinder in substantially the form of Exhibit N hereto, to be executed by  each Subsidiary Borrower designated as such after the Closing Date.  

 

  56  “Subsidiary Borrowers”:  each Domestic Subsidiary that is a Wholly-Owned Subsidiary and a Restricted  Subsidiary that becomes a Borrower after five (5) days’ written notice to the Administrative Agent pursuant to a  Subsidiary Borrower Joinder, together with their respective successors and assigns.   “Subsidiary Guarantor”:  (x) each Domestic Subsidiary that is a Wholly Owned Subsidiary (other than any  Borrower or Excluded Subsidiary) of the Parent Borrower which executes and delivers a Subsidiary Guaranty, in  each case, unless and until such time as the respective Subsidiary Guarantor (a) ceases to constitute a Domestic  Subsidiary of the Parent Borrower in accordance with the terms and provisions hereof, (b) is designated an  Unrestricted Subsidiary pursuant to the terms of this Agreement or (c) is released from all of its obligations under  the Subsidiary Guaranty in accordance with terms and provisions thereof and (y) each other Subsidiary of the Parent  Borrower which the Parent Borrower causes to execute and deliver a Subsidiary Guaranty pursuant to Subsection  7.9(b) or (c), in each case, unless and until such time as the respective Subsidiary Guarantor (a) ceases to constitute a  Domestic Subsidiary of the Parent Borrower in accordance with the terms and provisions hereof, (b) is designated an  Unrestricted Subsidiary pursuant to the terms of this Agreement, (c) is released from all of its obligations under the  Subsidiary Guaranty in accordance with terms and provisions thereof or (d) ceases to be so designated pursuant to  Subsection 7.9(b).  “Subsidiary Guaranty”:  the guaranty of the Obligations of the Borrowers under the Loan Documents  provided pursuant to the Guarantee and Collateral Agreement or pursuant to a guaranty in such other form as may be  agreed between the Parent Borrower and the Administrative Agent.  “Successor Borrower”:  as defined in Subsection 8.2(a).  “Supermajority Lenders”:  Lenders the sum of whose outstanding Commitments (or after the termination  thereof, outstanding Individual Lender Exposures) representing more than 662/3% of the sum of the aggregate  amount of the total Commitments less the Commitments of all Defaulting Lenders (or after the termination thereof,  the sum of the Individual Lender Exposures of Non-Defaulting Lenders) at such time.  “Supported QFC”:  as defined in Subsection 11.24.  “Swingline Commitment”:  the Swingline Lender’s obligation to make Swingline Loans pursuant to  Subsection 2.4.  “Swingline Exposure”:  at any time the aggregate principal amount at such time of all outstanding  Swingline Loans. The Swingline Exposure of any Revolving Credit Lender at any time shall equal its Commitment  Percentage of the aggregate Swingline Exposure at such time.  “Swingline Lender”:  as defined in the Preamble hereto.  “Swingline Loan Participation Certificate”:  a certificate in substantially the form of Exhibit F hereto.  “Swingline Loans”:  as defined in Subsection 2.4(a).  “Swingline Note”:  as defined in Subsection 2.4(b).  “Syndication Agent”:  Fifth Third Bank, National Association, in its capacity as syndication agent.  “Target Amount”:  an amount which, when aggregated with all other amounts remaining on deposit in all  DDAs and Concentration Accounts at any one time, does not exceed $5,000,000.  “Tax Sharing Agreement”:  the Tax Sharing Agreement among Atkore Inc. (f/k/a Atkore International  Group, Inc.), Holdings and the Parent Borrower to be entered into on or prior to the Closing Date, as the same may  be amended, supplemented, waived or otherwise modified from time to time.  

 

  57  “Taxes”:  any and all present or future income, stamp or other taxes, levies, imposts, duties, charges, fees,  deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental  Authority, including any interest, additions to tax or penalties applicable thereto.   “Temporary Cash Investments”:  any of the following:  (i) any investment in direct obligations of the  United States of America, Canada, the United Kingdom, or any agency or instrumentality of any thereof, or  obligations Guaranteed by the United States of America, Canada, the United Kingdom, or any agency or  instrumentality of any of the foregoing, or obligations guaranteed by any of the foregoing, (ii) overnight bank  deposits, and investments in time deposit accounts, certificates of deposit, bankers’ acceptances and money market  deposits (or, with respect to foreign banks, similar instruments) maturing not more than one year after the date of  acquisition thereof issued by (x) any bank or other institutional lender under this Agreement or the Term Loan  Credit Agreement or any affiliate thereof or (y) a bank or trust company that is organized under the laws of the  United States of America, any state thereof or any foreign country recognized by the United States of America  having capital and surplus aggregating in excess of $500,000,000 (or the foreign currency equivalent thereof) and  whose long term debt is rated at least “A” by S&P or “A-1” by Moody’s (or, in either case, the equivalent of such  rating by such organization or, if no rating of S&P or Moody’s then exists, the equivalent of such rating by any  nationally recognized rating organization) at the time such Investment is made, (iii) repurchase obligations with a  term of not more than seven days for underlying securities or instruments of the types described in clause (i) or (ii)  above entered into with a bank meeting the qualifications described in clause (ii) above, (iv) Investments in  commercial paper, maturing not more than 270 days after the date of acquisition, issued by a Person (other than that  of the Parent Borrower or any of its Subsidiaries), with a rating at the time as of which any Investment therein is  made of “P-1” (or higher) according to Moody’s or “A-1” (or higher) according to S&P (or, in either case, the  equivalent of such rating by such organization or, if no rating of S&P or Moody’s then exists, the equivalent of such  rating by any nationally recognized rating organization), (v) Investments in securities maturing not more than one  year after the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United  States of America, or by any political subdivision or taxing authority thereof, and rated at least “A” by S&P or “A”  by Moody’s (or, in either case, the equivalent of such rating by such organization or, if no rating of S&P or Moody’s  then exists, the equivalent of such rating by any nationally recognized rating organization), (vi) [reserved], (vii)  investment funds investing 95.0% of their assets in securities of the type described in clauses (i) through (vi) above  (which funds may also hold cash pending investment and/or distribution), (viii) any money market deposit accounts  issued or offered by a domestic commercial bank or a commercial bank organized and located in a country  recognized by the United States of America, in each case, having capital and surplus in excess of $500,000,000 (or  the foreign currency equivalent thereof), or investments in money market funds subject to the risk limiting  conditions of Rule 2a-7 (or any successor rule) of the SEC under the Investment Company Act of 1940, as amended  and (ix) similar investments approved by the Board of Directors in the ordinary course of business.  “Term Loan”:  Accordion Term Loans, Extended Term Loans and Other Term Loans.  “Term Loan Credit Agreement”:  the Term Loan Credit Agreement, dated as of May 26, 2021, among  Ultimate Parent, the Parent Borrower, the lenders party thereto from time to time and JPMorgan Chase Bank, N.A.,  as administrative agent and collateral agent, as such agreement may be amended, supplemented, waived or  otherwise modified from time to time or refunded, refinanced, restructured, replaced, renewed, repaid, increased or  extended from time to time (whether in whole or in part, whether with the original administrative agent and lenders  or other agents and lenders or otherwise, and whether provided under the original Term Loan Credit Agreement or  one or more other credit agreements, indentures or financing agreements or otherwise, unless such agreement,  instrument or document expressly provides that it is not intended to be and is not a Term Loan Credit Agreement  hereunder). Any reference to the Term Loan Credit Agreement hereunder shall be deemed a reference to each Term  Loan Credit Agreement then in existence.  “Term Loan Credit Facility”:  the collective reference to the Term Loan Credit Agreement, any Term Loan  Documents, any notes and letters of credit issued pursuant thereto and any guarantee and collateral agreement,  patent and trademark security agreement, mortgages, letter of credit applications and other guarantees, pledge  agreements, security agreements and collateral documents, and other instruments and documents, executed and  delivered pursuant to or in connection with any of the foregoing, in each case as the same may be amended,  supplemented, waived or otherwise modified from time to time, or refunded, refinanced, restructured, replaced,  renewed, repaid, increased or extended from time to time (whether in whole or in part, whether with the original  

 

  58  agent and lenders or other agents and lenders or otherwise, and whether provided under the original Term Loan  Credit Agreement or one or more other credit agreements, indentures or financing agreements or otherwise, unless  such agreement, instrument or document expressly provides that it is not intended to be and is not a Term Loan  Credit Facility). Without limiting the generality of the foregoing, the term “Term Loan Credit Facility” shall include  any agreement (i) changing the maturity of any Indebtedness incurred thereunder or contemplated thereby,  (ii) adding Subsidiaries of the Parent Borrower as additional borrowers or guarantors thereunder, (iii) increasing the  amount of Indebtedness incurred thereunder or available to be borrowed thereunder or (iv) otherwise altering the  terms and conditions thereof.  “Term Loan Documents”:  the “Loan Documents,” each as defined in the Term Loan   Credit Agreement, as the same may be amended, supplemented, waived or otherwise modified from time to time or  refunded, refinanced, restructured, replaced, renewed, repaid, increased or extended from time to time.  “Term SOFR”:  for the applicable corresponding tenor, the forward-looking term rate based on SOFR that  has been selected or recommended by the Relevant Governmental Body.  “Termination Date”:  May 26, 2026; provided, that (x) if greater than $100,000,000 in principal amount  shall remain outstanding under the Term Loan Credit Facility on the date that is 91 days prior to the Stated Maturity  of the loans issued thereunder (the “Springing Maturity Date”), or (y) if, after giving effect to any reserve described  in clause (3) of the definition of “Availability Reserves,” a Liquidity Event has occurred, then, in each case, the  Termination Date shall instead be the Springing Maturity Date; provided, further, that, in each case, if any such day  is not a Business Day, the Termination Date shall be the Business Day immediately following such day.   “Tranche”:  each Tranche of Loans available hereunder, with there being two tranches on the Closing Date;  namely, Revolving Credit Loans and Swingline Loans.  “Transactions”:  collectively, any or all of the following (whether taking place prior to, on or following the  date hereof):  (i) the entry into this Agreement and incurrence of Indebtedness hereunder by one or more of Holdings,  the Parent Borrower and its Restricted Subsidiaries or any other Borrower, (ii) all other transactions relating to any  of the foregoing (including payment of fees and expenses related to any of the foregoing) and (iii) the Existing  Credit Facility Transactions.  “Transferee”:  any Participant or Assignee.  “Type”:  the type of Loan determined based on the currency in which the same is denominated, and the  interest option applicable thereto, with there being multiple Types of Loans hereunder, namely ABR Loans,  Eurodollar Loans and Daily Rate Loans in Dollars and Canadian Prime Rate Loans and BA Equivalent Loans in the  Designated Foreign Currency.  “UCC”:  the Uniform Commercial Code as in effect in the State of New York from time to time.  “Ultimate Parent”:  among Atkore Inc., a Delaware corporation, together with its successors and assigns.  “Underfunding”:  the excess of the present value of all accrued benefits under a Plan (based on those  assumptions used to fund such Plan), determined as of the most recent annual valuation date, over the value of the  assets of such Plan allocable to such accrued benefits.  “Uniform Customs”:  the Uniform Customs and Practice for Documentary Credits (2007 Revision),  International Chamber of Commerce Publication No. 600, as the same may be amended from time to time.  “United States Person”:  any United States person within the meaning of Section 7701(a)(30) of the Code.  “Unpaid Drawing”:  drawings on Letters of Credit that have not been reimbursed by the applicable  Borrower.  

 

  59  “Unrestricted Cash”:  at any date of determination, (x) the aggregate amount of cash, Cash Equivalents and  Temporary Cash Investments included in the cash accounts that would be listed on the consolidated balance sheet of  Ultimate Parent prepared in accordance with GAAP as of the end of the most recent fiscal quarter for which  financial statements were delivered pursuant to Subsections 7.1(a) and (b) plus (y) the proceeds from any incurrence  of Indebtedness borrowed since the date of such consolidated balance sheet and on or prior to the date of such  determination that are (as determined in good faith by the Parent Borrower) intended to be used for working capital  purpose, in each case described in clause (x) or (y), solely to the extent such cash or proceeds are not classified as  “restricted” for financial statement purposes (unless so classified solely because of any provision under the Loan  Documents or any other agreement or instrument governing other Indebtedness that is subject to the Intercreditor  Agreement or because they are subject to a Lien securing Indebtedness that is subject to the Intercreditor  Agreement).  “Unrestricted Subsidiary”:  any Subsidiary of the Parent Borrower designated at any time by the Parent  Borrower as an Unrestricted Subsidiary hereunder by written notice to the Administrative Agent; provided that the  Parent Borrower shall only be permitted to so designate an Unrestricted Subsidiary so long as:  (a) immediately before and after such designation, no Default or Event of Default shall have occurred  and be continuing;  (b) no Subsidiary may be designated as an Unrestricted Subsidiary if it is a “Restricted Subsidiary”  for the purpose of any Indebtedness of Ultimate Parent or its Restricted Subsidiaries;   (c) (i) such designation was made on the Closing Date, each of which is listed on Schedule  1.1(j); or  (ii) the Subsidiary to be so designated has Consolidated Total  Assets of $1,000 or less at the time of designation; or  (iii) if such Subsidiary has Consolidated Total Assets greater than  $1,000 at the time of designation, then immediately after giving effect to such designation,  Ultimate Parent and its Restricted Subsidiaries shall be in compliance, on a Pro Forma Basis, with  the covenant set forth in Subsection 8.1, whether or not a Liquidity Event has occurred and is  continuing, as demonstrated to the reasonable satisfaction of the Administrative Agent; and  (d) no Subsidiary shall be designated as an Unrestricted Subsidiary if such Subsidiary owns (directly  or indirectly) any Capital Stock or Indebtedness of, or holds any Liens on any property of, any Borrower or any  Restricted Subsidiary that is not a Subsidiary of the Subsidiary to be so designated.  The designation of any Subsidiary as an Unrestricted Subsidiary shall constitute an Investment by the  Parent Borrower therein (and must comply as such with the limitations on Investments under Subsection 8.12) at the  date of designation in an amount equal to the net book value of the Parent Borrower’s Investment therein.  The Borrower Representative shall only be permitted to designate an Unrestricted Subsidiary as a  Restricted Subsidiary so long as:  (a) immediately after such designation, no Default or Event of Default shall have occurred and be  continuing; and  (b) immediately after giving effect to such designation, Ultimate Parent and its Restricted Subsidiaries  shall be in compliance, on a Pro Forma Basis, with the covenant set forth in Subsection 8.1, whether or not a  Liquidity Event has occurred and is continuing, as demonstrated to the reasonable satisfaction of the Administrative  Agent.  

 

  60  The designation of any Unrestricted Subsidiary as a Restricted Subsidiary shall constitute the incurrence at  the time of designation of any Indebtedness or Liens of such Subsidiary existing at such time.   Any such designation of a Subsidiary as either an Unrestricted Subsidiary or a Restricted Subsidiary shall  be evidenced to the Administrative Agent by promptly filing with the Administrative Agent a copy of the resolution  of the Parent Borrower’s Board of Directors giving effect to such designation and a certificate of a Responsible  Officer of the Parent Borrower certifying that such designation complied with the foregoing provisions.  “Unutilized Commitment”:  with respect to any Lender at any time, an amount equal to the remainder of (x)  such Lender’s Commitment as in effect at such time less (y) such Lender’s Individual Lender Exposure at such time  (excluding any Swingline Exposure of such Lender).  “U.S. Guarantee and Collateral Agreement”: the Amended and Restated Guarantee and Collateral  Agreement delivered to the Collateral Agent as of August 28, 2020, substantially in the form of Exhibit B-1 hereto,  as the same may be amended, supplemented, waived or otherwise modified from time to time.  “U.S. Special Resolution Regimes”:  as defined in Subsection 11.24.  “U.S. Tax Compliance Certificate”:  as defined in Subsection 4.11(b)(ii)(2).  “Vendor Affiliate”:  an “ABL Vendor Affiliate” as defined in the Intercreditor Agreement.  “Vendor Financing Arrangement”:  any supply chain financing arrangement, structured vendor payable  program, payables financing arrangement, reverse factoring arrangement or any other similar arrangement or  program pursuant to which the Parent Borrower or any of its Restricted Subsidiaries provides a vendor an option to  factor such vendor’s receivables from the Parent Borrower or such Restricted Subsidiary to any Lender or any  Affiliate of any Lender.  “Vendor Financing Obligations”: as to any Person, any and all obligations of such Person arising under,  owing pursuant to, or existing in respect of any Vendor Financing Arrangement entered into with one or more  Lenders or Affiliates of any Lender, whether absolute or contingent, due or to become due, now existing or hereafter  arising; provided that the aggregate amount of Vendor Financing Obligations shall not exceed $75,000,000 at any  one time outstanding.  “Voluntary Prepayment Incremental Facility”:  as defined in the definition of “Maximum Incremental  Facilities Amount”.  “Voting Stock”:  as to any entity, all classes of Capital Stock of such entity then outstanding and normally  entitled to vote in the election of directors, managing members or similar individuals or all interests in such entity  with the ability to control the management or actions of such entity.  “Wells Fargo”: Wells Fargo Bank, National Association.  “Wholly Owned Domestic Subsidiary”:  as to any Person, any Domestic Subsidiary of such Person of  which such Person owns, directly or indirectly through one or more Wholly Owned Subsidiaries, all of the Capital  Stock of such Domestic Subsidiary other than directors qualifying shares or shares held by nominees.  “Wholly Owned Subsidiary”:  as to any Person, any Subsidiary of such Person of which such Person owns,  directly or indirectly through one or more Wholly Owned Subsidiaries, all of the Capital Stock of such Subsidiary  other than directors qualifying shares or shares held by nominees.  “Write-Down and Conversion Powers”:  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.  

 

  61  1.2 Other Definitional and Interpretive Provisions. Unless otherwise specified therein, all terms  defined in this Agreement shall have the defined meanings when used in any Notes, any other Loan Document or  any certificate or other document made or delivered pursuant hereto.  (a) As used herein and in any Notes and any other Loan Document, and any certificate or other  document made or delivered pursuant hereto or thereto, accounting terms relating to Ultimate Parent and its  Restricted Subsidiaries not defined in Subsection 1.1 and accounting terms partly defined in Subsection 1.1, to the  extent not defined, shall have the respective meanings given to them under GAAP.  (b) The words “hereof”, “herein” and “hereunder” and words of similar import when used in this  Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and  Section, Subsection, Schedule and Exhibit references are to this Agreement unless otherwise specified. The words  “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The word  “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase “and/or”. Any reference  herein to any financial statements of Holdings shall be construed to include financial statements of Holdings or any  Parent Entity whose financial statements satisfy Subsection 7.1. All references to the terms “province” and  “provincial” shall be construed to include “territory” and “territorial”. With respect to any Default or Event of  Default, the words “exists,” “is continuing” or similar expressions with respect thereto shall mean that such Default  or Event of Default has occurred and has not yet been cured or waived.  (c) Financial ratios and other financial calculations pursuant to this Agreement, including calculations  pursuant to Subsection 8.1 shall, following any transaction described in the definition of “Pro Forma Basis,” be  calculated on a Pro Forma Basis until the completion of four full fiscal quarters following such transaction.  (d) Any financial ratios required to be maintained pursuant to this Agreement (or required to be  satisfied in order for a specific action to be permitted under this Agreement) shall be calculated by dividing the  appropriate component by the other component, carrying the result to one place more than the number of places by  which such ratio is expressed herein and rounding the result up or down to the nearest number (rounding up if there  is no nearest number).  (e) Any references in this Agreement to “cash and/or Cash Equivalents”, “cash, Cash Equivalents  and/or Temporary Cash Investments” or any similar combination of the foregoing shall be construed as not double  counting cash or any other applicable amount which would otherwise be duplicated therein.  (f) The meanings given to terms defined herein shall be equally applicable to both the singular and  plural forms of such terms.  (g) The Borrowing Base shall be calculated without duplication of, including without duplication of  any reserves, items that are otherwise addressed or excluded through eligibility criteria or items that are factored into  the calculation of collection rates or collection percentages.  (h) In connection with any action being taken in connection with a Limited Condition Transaction  (other than a borrowing of Revolving Credit Loans hereunder), for purposes of determining compliance with any  provision of this Agreement which requires that no Default, Event of Default, Specified Default or specified Default  or Event of Default, as applicable, has occurred, is continuing or would result from any such action, as applicable,  such condition shall, at the option of the Parent Borrower, be deemed satisfied, so long as no Default, Event of  Default, Specified Default or specified Default or Event of Default, as applicable, exists on the date (x) a definitive  agreement for such Limited Condition Transaction is entered into, (y) in connection with an acquisition to which the  United Kingdom City Code on Takeovers and Mergers (or any equivalent thereof under the laws, rules or  regulations in any other applicable jurisdiction) applies, on which a “Rule 2.7 announcement” of a firm intention to  make an offer in respect of a target of a Limited Condition Transaction is made (or the equivalent notice under such  equivalent laws, rules or regulations in such other applicable jurisdiction) or (z)  notice of redemption, repurchase,  defeasance, satisfaction and discharge or repayment of Indebtedness, Disqualified Capital Stock or Preferred Stock  is given. For the avoidance of doubt, if the Parent Borrower has exercised its option under the first sentence of this  

 

  62  clause (h), and any Default, Event of Default, Specified Default or specified Default or Event of Default, as  applicable, occurs following the date (x) a definitive agreement for the applicable Limited Condition Transaction  was entered into, (y) in connection with an acquisition to which the United Kingdom City Code on Takeovers and  Mergers (or any equivalent thereof under the laws, rules or regulations in any other applicable jurisdiction) applies,  on which a “Rule 2.7 announcement” of a firm intention to make an offer in respect of a target of a Limited  Condition Transaction is made (or the equivalent notice under such equivalent laws, rules or regulations in such  other jurisdiction) or (z)  notice of redemption, repurchase, defeasance, satisfaction and discharge or repayment of  Indebtedness, Disqualified Capital Stock or Preferred Stock is given and prior to the consummation of such Limited  Condition Transaction, any such Default, Event of Default, Specified Default or specified Default or Event of  Default, as applicable, shall be deemed to not have occurred or be continuing for purposes of determining whether  any action being taken in connection with such Limited Condition Transaction is permitted hereunder.  (i) In connection with any action being taken in connection with a Limited Condition Transaction  (other than a borrowing of Revolving Credit Loans hereunder), for purposes of:  (i) determining compliance with any provision of this Agreement  which requires the calculation of the Consolidated Fixed Charge Coverage Ratio or the Secured  Leverage Ratio (but not, for the avoidance of doubt, in determining compliance with the Payment  Conditions for any purpose hereunder); or  (ii) testing baskets set forth in this Agreement (including baskets  measured as a percentage of Consolidated Total Assets) but not, for the avoidance of doubt, in  determining compliance with the Payment Conditions for any purpose hereunder; or  (iii) any other determination as to whether any such Limited  Condition Transaction and any related transactions (including any financing thereof, but  excluding a borrowing of Revolving Credit Loans) complies with the covenants or agreements  contained in this Agreement;  in each case, at the option of the Parent Borrower (the Parent Borrower’s election to exercise such option in  connection with any Limited Condition Transaction, an “LCT Election”), the date of determination of whether any  such action is permitted hereunder, shall be deemed to be the date (x) a definitive agreement for such Limited  Condition Transaction is entered into, (y) in connection with an acquisition to which the United Kingdom City Code  on Takeovers and Mergers (or any equivalent thereof under the laws, rules or regulations in any other applicable  jurisdiction) applies, on which a “Rule 2.7 announcement” of a firm intention to make an offer in respect of a target  of a Limited Condition Transaction is made (or the equivalent notice under such equivalent laws, rules or  regulations in such other applicable jurisdiction) or (z) notice of redemption, repurchase, defeasance, satisfaction  and discharge or repayment of Indebtedness, Disqualified Capital Stock or Preferred Stock is given, as applicable  (the “LCT Test Date”), and if, after giving pro forma effect to the Limited Condition Transaction and the other  transactions to be entered into in connection therewith (including any incurrence or Discharge of Indebtedness and  Liens and the use of proceeds thereof) as if they had occurred at the beginning of the most recent four consecutive  fiscal quarters ending prior to the LCT Test Date for which consolidated financial statements of the Ultimate Parent  are available, the Parent Borrower could have taken such action on the relevant LCT Test Date in compliance with  such ratio, basket or amount, such ratio, basket or amount shall be deemed to have been complied with provided that  compliance with such ratios, baskets or amounts (and any related requirements and conditions) shall not be  determined or tested at any time after the applicable LCT Test Date for such Limited Condition Transaction and any  actions or transactions related thereto (including any incurrence or Discharge of Indebtedness and Liens and the use  of proceeds thereof). Consolidated Interest Expense for purposes of the Consolidated Fixed Charge Coverage Ratio  will be calculated using an assumed interest rate based on the indicative interest margin contained in any financing  commitment documentation with respect to such Indebtedness or, if no such indicative interest margin exists, as  determined by the Parent Borrower in good faith. For the avoidance of doubt, if the Parent Borrower has made an  LCT Election and any of the ratios, baskets or amounts for which compliance was determined or tested as of the  LCT Test Date are exceeded as a result of fluctuations in any such ratio, basket or amount, including due to  fluctuations in exchange rates or in EBITDA or Consolidated Total Assets of Ultimate Parent or the Person subject  to such Limited Condition Transaction or any applicable currency exchange rate, at or prior to the consummation of  

 

  63  the relevant transaction or action, such ratios, baskets or amounts will not be deemed to have been exceeded as a  result of such fluctuations. If the Parent Borrower has made an LCT Election for any Limited Condition Transaction,  then in connection with any subsequent calculation of any ratio, basket or amount with respect to the incurrence or  Discharge of Indebtedness or Liens, or the making of Restricted Payments, Asset Sales, mergers, the conveyance,  lease or other transfer of all or substantially all of the assets of the Parent Borrower or the designation of an  Unrestricted Subsidiary on or following the relevant LCT Test Date and prior to the earlier of the date on which (1)  such Limited Condition Transaction is consummated, (2) the definitive agreement for, or firm offer in respect of,  such Limited Condition Transaction (if an acquisition or investment) is terminated or expires without consummation  of such Limited Condition Transaction or (3) such notice of redemption, repurchase, defeasance, satisfaction and  discharge or repayment of Indebtedness, Disqualified Capital Stock or Preferred Stock is revoked or expires without  consummation, any such ratio, basket or amount shall be calculated on a pro forma basis assuming such Limited  Condition Transaction and other transactions in connection therewith (including any incurrence or Discharge of  Indebtedness and Liens and the use of proceeds thereof) have been consummated.   (j) Any reference herein or in any other Loan Document to (i) a transfer, assignment, sale, disposition  or transfer, or similar term, shall be deemed to apply to a division of or by a limited liability company, or an  allocation of assets to a series of a limited liability company (collectively, a “Division”), as if it were a transfer,  assignment, sale or transfer, or similar term, as applicable, to a separate Person, and (ii) a merger, consolidation,  amalgamation or consolidation, or similar term, shall be deemed to apply to the division of or by a limited liability  company, or an allocation of assets to a series of a limited liability company, or the unwinding of such a division or  allocation, as if it were a merger, consolidation, amalgamation or consolidation or similar term, as applicable, with a  separate Person.   (k) Any reference herein or in any other Loan Document to the satisfaction, repayment, or payment in  full of the Obligations shall mean (a) the payment or repayment in full in immediately available funds of (i) the  principal amount of, and interest accrued and unpaid with respect to, all outstanding Loans, together with the  payment of premium, if any, applicable to the repayment of the Loans, (ii) pursuant to Subsection 11.5(a)(b), the  payment of all reasonable, documented and invoiced out-of-pocket Lender costs and expenses upon notice to the  Borrower Representative, (iii) all fees or charges that have accrued hereunder or under any other Loan Document  (including the L/C Fee and the commitment fee for any Unutilized Commitment of any Revolving Credit Lender  pursuant to Subsection 4.5) and are unpaid, (b) in the case of contingent reimbursement obligations with respect to  Letters of Credit, providing Letter of Credit Collateralization, (c) in the case of obligations with respect to Cash  Management Arrangements (other than Hedging Obligations), providing Bank Products Collateralization (unless  any such Cash Management Arrangements will be rolled, terminated or otherwise secured under any future credit  arrangements or collateral agreements of the Loan Parties and their Subsidiaries, in each case, subject to terms and  pursuant to documentation reasonably satisfactory to the Administrative Agent), (d) the receipt by the  Administrative Agent of cash collateral in order to secure any other contingent Obligations for which a claim or  demand for payment has been made on or prior to such time, such cash collateral to be in such amount as the  reasonable, documented and invoiced out-of-pocket expenses related to such contingent Obligations, (e) the  payment or repayment in full in immediately available funds of all other outstanding Obligations other than (i)  unasserted contingent indemnification Obligations, (ii) any Cash Management Arrangements that, at such time, are  allowed by the applicable Cash Management Party to remain outstanding without being required to be repaid or cash  collateralized, (iii) any Hedging Obligations that, at such time, are allowed to remain outstanding without being  required to be repaid (unless rolled or otherwise transferred to a new credit facility or collateral arrangement of the  Loan Parties, in each case, subject to terms and pursuant to documentation reasonably satisfactory to the  Administrative Agent) and (iv) any Vendor Financing Obligations that, at such time, are allowed to remain  outstanding without being required to be repaid (unless rolled or otherwise transferred to a new credit facility or  collateral arrangement of the Loan Parties, in each case, subject to terms and pursuant to documentation reasonably  satisfactory to the Administrative Agent), and (f) the termination of all of the Commitments of the Lenders.  Any  reference herein to any Person shall be construed to include such Person’s successors and assigns.  Any requirement  of a writing contained herein or in any other Loan Document shall be satisfied by the transmission of a record.  (l) Except as otherwise expressly provided herein, for purposes of any determination under Section 2,  Section 5, Section 7, Section 8 or Section 9 or any determination under any other provision of this Agreement  expressly requiring the use of a current exchange rate, all amounts incurred, outstanding or proposed to be incurred  

 

  64  or outstanding in currencies other than Dollars shall be translated into Dollars using the Spot Rate of Exchange for  such currency in effect on the date of such determination; provided, however, that for purposes of determining  compliance with any provisions of Section 8 if the transaction contemplated therein is effected in a currency other  than Dollars, no Default or Event of Default shall be deemed to have occurred solely as a result of changes in the  Spot Rate of Exchange occurring after the time such transaction is consummated (or such other date of  determination as expressly provided therein).  For purposes of Subsection 8.1, amounts in currencies other than  Dollars shall be translated into Dollars at the Spot Rate of Exchange used in preparing the most recently delivered  financial statements pursuant to Subsection 7.1(a) or (b).  (m) Terms defined in the UCC used but not defined herein, shall have the respective meanings given  to them under the UCC and comparable terms when used in the Loan Documents in relational to Collateral subject  to the PPSA shall have the meanings ascribed to such terms in the PPSA.  (n) Any representation or warranty, affirmative or negative covenant, Default, Event of Default or any  other provision in this Agreement relating to any Loan Party organized in Canada or any province, city or other  political subdivision thereof, including, without limitation, those related to Canadian pensions, guarantees and  collateral, will only be applicable during such times that there are Loan Parties organized in Canada.  SECTION 2 Amount and Terms of Commitments  2.1 Commitments.  (a) Subject to and upon the terms and conditions set forth herein, each Lender severally agrees to  make, at any time and from time to time on or after the Closing Date and prior to the Termination Date, a Revolving  Credit Loan or Revolving Credit Loans to the Borrowers (on a joint and several basis as between the Borrowers),  which Revolving Credit Loans:  (i) shall be denominated in Dollars or in a Designated Foreign  Currency; provided that (A) only ABR Loans and Eurodollar Loans may be denominated in  Dollars and (B) only Canadian Prime Rate Loans or BA Equivalent Loans may be denominated  in Canadian Dollars; provided, further that the aggregate principal amount of Loans denominated  in Canadian Dollars outstanding at any time shall not exceed the Canadian Dollar Sublimit;  (ii) shall, at the option of the Borrowers, be incurred and  maintained as, and/or converted into, ABR Loans, Eurodollar Loans, Canadian Prime Rate Loans  or BA Equivalent Loans, provided that except as otherwise specifically provided in Subsections  4.9 and 4.10, all Revolving Credit Loans comprising the same Borrowing shall at all times be of  the same Type;  (iii) may be repaid and reborrowed in accordance with the  provisions hereof;  (iv) shall not be made (and shall not be required to be made) by any  Lender to the extent the incurrence thereof (after giving effect to the use of the proceeds thereof  on the date of the incurrence thereof to repay any amounts theretofore outstanding pursuant to  this Agreement) would cause the Individual Lender Exposure of such Lender to exceed the  amount of its Commitment at such time;  (v) shall not be made (and shall not be required to be made) by any  Lender to the extent the incurrence thereof (after giving effect to the use of the proceeds thereof  on the date of the incurrence thereof to repay any amounts theretofore outstanding pursuant to  this Agreement) would cause the Dollar Equivalent of the Aggregate Lender Exposure to exceed  the lesser of (x) total Commitments as then in effect and (y) the Borrowing Base at such time  (based on the Borrowing Base Certificate last delivered); and  

 

  65  (vi) shall not be made (and shall not be required to be made) by any  Lender to the extent any such Revolving Credit Loans to be made on any date, individually or in  the aggregate, exceed the then Available Loan Commitments.  (b) Notwithstanding anything to the contrary in Subsection 2.1(a) or elsewhere in this Agreement, the  Administrative Agent shall have the right to establish Availability Reserves in such amounts, and with respect to  such matters, as the Administrative Agent in its Permitted Discretion shall deem necessary or appropriate, against  the Borrowing Base including reserves with respect to (i) sums that the Borrowers are or will be required to pay or  remit (such as taxes (including payroll and sales taxes), assessments, insurance premiums, employee withholdings  and remittances or, in the case of leased assets, rents or other amounts payable under such leases) and have not yet  paid and (ii) amounts owing by the Borrowers or, without duplication, their respective Restricted Subsidiaries to any  Person to the extent secured by a Lien on, or trust over, any of the ABL Priority Collateral, which Lien or trust, in  the Permitted Discretion of the Administrative Agent is capable of ranking senior in priority to or pari passu with  one or more of the Liens in the ABL Priority Collateral granted in the Security Documents (such as Liens or trusts in  favor of landlords, warehousemen, carriers, mechanics, materialmen, laborers, or suppliers, or Liens or trusts for ad  valorem, excise, sales, or other taxes where given priority under applicable law) in and to such item of the ABL  Priority Collateral; provided that (w) with respect to any Availability Reserve (other than any Designated Hedging  Reserves, Designated Cash Management Reserves or Designated Vendor Financing Reserves), the Administrative  Agent shall have provided the applicable Borrower reasonable advance notice of any such establishment (it being  understood and agreed that four (4) Business Days’ advance notice shall be deemed reasonable for the purposes of  this clause (w)); provided that (A) no Borrower may obtain any new Revolving Credit Loans (including Swingline  Loans) or Letters of Credit to the extent that any such Revolving Credit Loan (including Swingline Loans) or Letter  of Credit would cause the aggregate amount of Available Loan Commitments to be less than zero after giving effect  to the establishment or increase of such Availability Reserve as set forth in such notice; (B) no such prior notice  shall be required during the continuance of any Event of Default; (C) no such prior notice shall be required with  respect to any Availability Reserve established in respect of any Lien that has priority over the Collateral Agent’s  Liens on the ABL Priority Collateral; and (D)(x) with respect to any Designated Vendor Financing Reserves, the  Administrative Agent may establish such Designated Vendor Financing Reserves and may increase, reduce or  eliminate the amount of any existing Designated Vendor Financing Reserves in its Permitted Discretion (subject to  the limitations set forth in Subsection 11.22(a)), and (y) with respect to any Designated Hedging Reserves,  Designated Cash Management Reserves or Designated Vendor Financing Reserves, (i) the Administrative Agent  may establish such Designated Hedging Reserves, Designated Cash Management Reserves or Designated Vendor  Financing Reserves pursuant to Subsection 11.22(a) immediately upon receiving notice in writing from the  Borrower Representative of a Designated Hedging Agreement, a Designated Cash Management Agreement or a  Designated Vendor Financing Arrangement, as applicable, and (ii) the Administrative Agent shall increase, reduce  or eliminate the amount of any existing Designated Hedging Reserve, existing Designated Cash Management  Reserve or existing Designated Vendor Financing Reserve, as applicable, immediately upon receiving written notice  of any adjustment to the amount of such existing Designated Hedging Reserve, existing Designated Cash  Management Reserve or existing Designated Vendor Financing Reserve, as applicable, from the Borrower  Representative pursuant to the last sentence of Subsection 11.22(a) (provided that the Administrative Agent shall not  be obligated to establish or increase any Designated Hedging Reserve, Designated Cash Management Reserve or  Designated Vendor Financing Reserve if at the time of, and after give effect to, such establishment or increase, the  aggregate amount of the Available Loan Commitments would be less than zero); and provided, further, that the  Administrative Agent may only establish an Availability Reserve after the Closing Date (x) based on an event,  condition or other circumstance arising after the Closing Date (which shall, for the avoidance of doubt, exclude any  Canadian Priority Payable Reserve, Designated Cash Management Reserve, Designated Hedging Reserve or  Designated Vendor Financing Reserve) or (y) based on an event, condition or other circumstance existing on the  Closing Date to the extent the Administrative Agent had no knowledge thereof on or prior to the Closing Date  (including, for the avoidance of doubt, in the case any event, condition or other circumstance related to COVID-19  and the impacts related thereto which occurs on or after the Closing Date, to the extent that such event, condition or  other circumstance adversely impacts the Loan Parties to a greater extent than on or prior to the Closing Date). The  amount of any such Availability Reserve shall have a reasonable relationship to the event, condition or other matter  that is the basis for the Availability Reserve. Upon delivery of such notice, the Administrative Agent shall be  available to discuss any proposed Availability Reserve, and the Borrowers may take such action as may be required  so that the event, condition or matter that is the basis for such Availability Reserve or increase no longer exists, in a  manner and to the extent reasonably satisfactory to the Administrative Agent in the exercise of its Permitted  

 

  66  Discretion. In no event shall such notice and opportunity limit the right of the Administrative Agent to establish such  Availability Reserve, unless the Administrative Agent shall have determined in its Permitted Discretion that the  event, condition or other matter that is the basis for such Availability Reserve no longer exists or has otherwise been  adequately addressed by the applicable Borrower. In the event that the event, condition or other matter giving rise to  the establishment of any Availability Reserve shall cease to exist (unless there is a reasonable prospect that such  event, condition or other matter will occur again within a reasonable period of time thereafter), the Availability  Reserve established pursuant to such event, condition or other matter, shall be discontinued. Notwithstanding  anything herein to the contrary, Availability Reserves shall not duplicate eligibility criteria contained in the  definition of “Eligible Accounts” or “Eligible Inventory” and vice versa, or reserves or criteria deducted in  computing the net book value of Eligible Inventory or the Net Orderly Liquidation Value of Eligible Inventory and  vice versa.  (c) In the event the Borrowers are unable to comply with (i) the borrowing base limitations set forth in  Subsection 2.1(a) or (ii) the conditions precedent to the making of Revolving Credit Loans or the issuance of Letters  of Credit set forth in Section 6, the Lenders authorize the Administrative Agent, for the account of the Lenders, to  make Revolving Credit Loans to the Borrowers, which may only be made as ABR Loans (each, an “Agent  Advance”) for a period commencing on the date the Administrative Agent first receives a notice of Borrowing  requesting an Agent Advance until the earliest of (i) the 30th Business Day after such date, (ii) the date the  respective Borrowers or Borrower are again able to comply with the Borrowing Base limitations and the conditions  precedent to the making of Revolving Credit Loans and issuance of Letters of Credit, or obtains an amendment or  waiver with respect thereto and (iii) the date the Required Lenders instruct the Administrative Agent to cease  making Agent Advances (in each case, the “Agent Advance Period”). The Administrative Agent shall not make any  Agent Advance to the extent that at such time the amount of such Agent Advance (A) when added to the aggregate  outstanding amount of all other Agent Advances made to the Borrowers at such time, would exceed 5% of the  Borrowing Base at such time (based on the Borrowing Base Certificate last delivered) or (B) when added to the  Aggregate Lender Exposure as then in effect (immediately prior to the incurrence of such Agent Advance), would  exceed the total Commitments at such time. It is understood and agreed that, subject to the requirements set forth  above, Agent Advances may be made by the Administrative Agent in its discretion to the extent the Administrative  Agent deems such Agent Advances necessary or desirable (x) to preserve and protect the applicable Collateral, or  any portion thereof, (y) to enhance the likelihood of, or maximize the amount of, repayment of the Loans and other  obligations of the Loan Parties hereunder and under the other Loan Documents or (z) to pay any other amount  chargeable to or required to be paid by the Borrowers pursuant to the terms of this Agreement, including payments  of reimbursable expenses and other sums payable under the Loan Documents, and that the Borrowers shall have no  right to require that any Agent Advances be made.  (d) Each Borrower agrees that, upon the request to the Administrative Agent by any Revolving Credit  Lender made on or prior to the Closing Date or in connection with any assignment pursuant to Subsection 11.6(b), in  order to evidence such Lender’s Revolving Credit Loans, such Borrower will execute and deliver to such Lender a  promissory note substantially in the form of Exhibit A-1 hereto, with appropriate insertions as to payee, date and  principal amount (each, as amended, supplemented, replaced or otherwise modified from time to time, a “Revolving  Credit Note”), payable to such Lender and in a principal amount equal to the aggregate unpaid principal amount of  all Revolving Credit Loans made by such Revolving Credit Lender to such Borrower. Each Revolving Credit Note  shall (i) be dated the Closing Date, (ii) be stated to mature on the Termination Date and (iii) provide for the payment  of interest in accordance with Subsection 4.1.  2.2 Procedure for Revolving Credit Borrowing. Each of the Borrowers may borrow under the  Commitments during the Commitment Period on any Business Day, provided that the Borrower Representative shall  give the Administrative Agent irrevocable (in the case of any notice except notice with respect to the initial  Extension of Credit hereunder, which shall be irrevocable after the funding) notice (which may be delivered through  Administrative Agent’s electronic platform or portal and which must be received by the Administrative Agent prior  to (a) 11:00 A.M., New York City time, at least three Business Days prior to the requested Borrowing Date, if all or  any part of the requested Revolving Credit Loans are to be initially Eurodollar Loans or BA Equivalent Loans or (b)  11:00 A.M., New York City time, at least one Business Day prior to the requested Borrowing Date, for ABR Loans  or Canadian Prime Rate Loans) specifying (i) the identity of a Borrower, (ii) the amount to be borrowed, (iii) the  requested Borrowing Date, (iv) whether the borrowing is to be of Eurodollar Loans or BA Equivalent Loans, ABR  

 

  67  Loans, Canadian Prime Rate Loans or a combination thereof and (v) if the borrowing is to be entirely or partly of  Eurodollar Loans or BA Equivalent Loans, the respective amounts of each such Type of Loan and the respective  lengths of the initial Interest Periods therefor. Each borrowing shall be in an amount equal to (x) in the case of ABR  Loans or Canadian Prime Rate Loans, except any ABR Loan or Canadian Prime Rate Loan to be used solely to pay  a like amount of outstanding Reimbursement Obligations or Swingline Loans, in multiples of $1,000,000 or  Cdn$1,000,000, as applicable, (or, if the Commitments then available (as calculated in accordance with Subsection  2.1(a) are less than $1,000,000 or Cdn$1,000,000, as applicable, such lesser amount) and (y) in the case of  Eurodollar Loans or BA Equivalent Loans, $1,000,000 or Cdn$1,000,000, as applicable, or a whole multiple of  $500,000 or Cdn$500,000, as applicable, in excess thereof). Upon receipt of any such notice from the Borrower  Representative the Administrative Agent shall promptly notify each applicable Revolving Credit Lender thereof.  Subject to the satisfaction of the conditions precedent specified in Subsection 6.2, each applicable Revolving Credit  Lender will make the amount of its pro rata share of each borrowing of Revolving Credit Loans available to the  Administrative Agent for the account of the Borrower identified in such notice at the office of the Administrative  Agent specified in Subsection 11.2 prior to 2:00 P.M. (in the case of ABR Loans or Canadian Prime Rate Loans)  and 12:00 P.M. (in the case of all other Loans) (or 10:00 A.M., in the case of the initial borrowing hereunder), New  York City time, or at such other office of the Administrative Agent or at such other time as to which the  Administrative Agent shall notify such Borrower reasonably in advance of the Borrowing Date with respect thereto,  on the Borrowing Date requested by such Borrower in Dollars or the applicable Designated Foreign Currency and in  funds immediately available to the Administrative Agent. Each Lender may, at its option, make the amount of its pro  rata share of each borrowing of Revolving Credit Loans available to the Administrative Agent for the account of the  applicable Borrower by causing any foreign or domestic branch or Affiliate of such Lender to make such Loan;  provided that any exercise of such option shall not affect the obligation of such Borrower to repay such Loan in  accordance with the terms of this Agreement. All borrowing requests which are not made on-line via Administrative  Agent’s electronic platform or portal shall be subject to (and unless Administrative Agent elects otherwise in the  exercise of its sole discretion, such borrowings shall not be made until the completion of) Administrative Agent’s  authentication process (with results satisfactory to Administrative Agent) prior to the funding of any such requested  Revolving Credit Loan. This Subsection 2.2 shall be subject to Subsection 4.7.  2.3 Termination or Reduction of Commitments. Subject to Subsection 5.12, the Parent Borrower by  written request by an Authorized Person (on behalf of itself and each other applicable Borrower) shall have the right,  upon not less than three Business Days’ (or such shorter period as may be agreed by the Administrative Agent in its  reasonable discretion) notice to the Administrative Agent (who will promptly notify the Lenders), to terminate the  Commitments, or, from time to time, to reduce the amount of the Commitments; provided that no such termination  or reduction shall be permitted if, after giving effect thereto and to any prepayments of the Revolving Credit Loans  and Swingline Loans made on the effective date thereof, the aggregate principal amount of the Revolving Credit  Loans and Swingline Loans then outstanding (including in the case of Revolving Credit Loans then outstanding in  any Designated Foreign Currency, the Dollar Equivalent of the aggregate principal amount thereof), when added to  the sum of the then outstanding L/C Obligations, would exceed the Commitments then in effect and provided,  further, that any such notice of termination delivered by the Parent Borrower may state that such notice is  conditioned upon the occurrence or non-occurrence of any event specified therein (including the effectiveness of  other credit facilities), in which case such notice may be revoked by the Parent Borrower (by written notice to the  Administrative Agent on or prior to the specified effective date) if such condition is not satisfied. Any such  reduction shall be in an amount equal to $5,000,000 or a whole multiple of $1,000,000 in excess thereof and shall  reduce permanently the applicable Commitments then in effect.  2.4 Swingline Commitments.   (a) Subject to the terms and conditions hereof, the Swingline Lender agrees to make swingline loans  (individually, a “Swingline Loan”; collectively, the “Swingline Loans”) to any of the Borrowers from time to time  during the Commitment Period in an aggregate principal amount at any one time outstanding not to exceed  $35,000,000; provided that at no time may the sum of the then outstanding Swingline Loans, Revolving Credit  Loans (including in the case of Revolving Credit Loans then outstanding in any Designated Foreign Currency, the  Dollar Equivalent of the aggregate principal amount thereof) and L/C Obligations exceed the lesser of (1) the  Commitments then in effect and (2) the Borrowing Base then in effect (based on the most recent Borrowing Base  Certificate) (it being understood and agreed that the Administrative Agent shall calculate the Dollar Equivalent of  

 

  68  the then outstanding Revolving Credit Loans in any Designated Foreign Currency on the date the notice of  borrowing of Swingline Loans is given for purposes of determining compliance with this Subsection 2.4). Swingline  Loans shall be made in minimum amounts of $1,000,000 or Cdn$1,000,000, as applicable, and integral multiples of  $500,000 or Cdn$500,000, as applicable, above such amount. Amounts borrowed by any Borrower under this  Subsection 2.4 may be repaid and, through but excluding the Termination Date, reborrowed. All Swingline Loans  made to any Borrower shall be made in Dollars as ABR Loans or Daily Rate Loans or Canadian Dollars as Canadian  Prime Rate Loans, as applicable, and shall not be entitled to be converted into Eurodollar Loans or BA Equivalent  Loans; provided, that the aggregate principal amount of Loans denominated in Canadian Dollars outstanding at any  time shall not exceed the Canadian Dollar Sublimit. Any Daily Rate Loan may be continued as such upon the  expiration of the then current one month interest period with respect thereto by the Borrower Representative giving  notice to the Administrative Agent; provided that Daily Rate Loans may not be continued as such (i) (unless the  Required Lenders otherwise consent) when any Default or Event of Default has occurred and is continuing and, in  the case of any Default, the Administrative Agent has given notice to the Borrower Representative that no such  continuations may be made or (ii) after the date that is one month prior to the applicable Termination Date, and  provided, further, that if the Borrower Representative shall fail to give any required notice as described above or if  such continuation is not permitted, and in the case of clause (i) and (ii) above, such Daily Rate Loans shall be  automatically converted to ABR Loans on the last day of such then expiring one month interest period.  The  Borrower Representative (on behalf of itself or any other Borrower as the case may be), shall give the Swingline  Lender irrevocable notice (which notice must be received by the Swingline Lender prior to 12:00 Noon, New York  City time, on the requested Borrowing Date) specifying (1) the identity of a Borrower, (2) the amount of the  requested Swingline Loan and (3) whether the Borrowing is to be of ABR Loans, Daily Rate Loans or Canadian  Prime Rate Loans. The proceeds of the Swingline Loans will be made available by the Swingline Lender to the  Borrower identified in such notice at an office of the Swingline Lender by crediting the account of such Borrower at  such office with such proceeds in Dollars or Canadian Dollars.  (b) Each of the Borrowers agrees that, upon the request to the Administrative Agent by the Swingline  Lender made on or prior to the Closing Date or in connection with any assignment pursuant to Subsection 11.6(b), in  order to evidence the Swingline Loans such Borrower will execute and deliver to the Swingline Lender a promissory  note substantially in the form of Exhibit A-2 hereto, with appropriate insertions (as the same may be amended,  supplemented, replaced or otherwise modified from time to time, the “Swingline Note”), payable to the Swingline  Lender and representing the obligation of such Borrower to pay the amount of the Swingline Commitment or, if less,  the unpaid principal amount of the Swingline Loans made to such Borrower, with interest thereon as prescribed in  Subsection 4.1. The Swingline Note shall (i) be dated the Closing Date, (ii) be stated to mature on the Termination  Date and (iii) provide for the payment of interest in accordance with Subsection 4.1.  (c) The Swingline Lender, at any time in its sole and absolute discretion may, and, at any time as  there shall be a Swingline Loan outstanding for more than seven Business Days, the Swingline Lender shall, on  behalf of the Borrower to which the Swingline Loan has been made (which hereby irrevocably directs and  authorizes such Swingline Lender to act on its behalf), request (provided that such request shall be deemed to have  been automatically made upon the occurrence of an Event of Default under Subsection 9.1(f)) each Lender,  including the Swingline Lender, to make a Revolving Credit Loan as an ABR Loan or, at the option of the Parent  Borrower, a Daily Rate Loan in an amount equal to such Lender’s Commitment Percentage of the principal amount  of all Swingline Loans made in Dollars (each, a “Mandatory Revolving Credit Loan Borrowing”) in an amount  equal to such Lender’s Commitment Percentage of the principal amount of all of the Swingline Loans (collectively,  the “Refunded Swingline Loans”) outstanding on the date such notice is given; provided that the provisions of this  Subsection 2.4 shall not affect the obligations of any Borrower to prepay Swingline Loans in accordance with the  provisions of Subsection 4.4(c). Unless the Commitments shall have expired or terminated (in which event the  procedures of clause (d) of this Subsection 2.4 shall apply), each Lender hereby agrees to make the proceeds of its  Revolving Credit Loan (including any Eurodollar Loan) available to the Administrative Agent for the account of the  Swingline Lender at the office of the Administrative Agent prior to 11:00 A.M., New York City time, in funds  immediately available on the Business Day next succeeding the date such notice is given notwithstanding (i) that the  amount of the Mandatory Revolving Credit Loan Borrowing may not comply with the minimum amount for  Revolving Credit Loans otherwise required hereunder, (ii) whether any conditions specified in Section 6 are then  satisfied, (iii) whether a Default or an Event of Default then exists, (iv) the date of such Mandatory Revolving Credit  Loan Borrowing and (v) the amount of the Commitment of such, or any other, Lender at such time. The proceeds of  

 

  69  such Revolving Credit Loans (including without limitation, any Eurodollar Loan) shall be immediately applied to  repay the Refunded Swingline Loans.  (d) If the Commitments shall expire or terminate at any time while Swingline Loans are outstanding,  each Lender shall, at the option of the Swingline Lender, exercised reasonably, either (i) notwithstanding the  expiration or termination of the Commitments, make a Loan as an ABR Loan or, at the option of the Parent  Borrower, a Daily Rate Loan (which Revolving Credit Loan shall be deemed a “Revolving Credit Loan” for all  purposes of this Agreement and the other Loan Documents) or (ii) purchase an undivided participating interest in  such Swingline Loans, in either case in an amount equal to such Lender’s Commitment Percentage determined on  the date of, and immediately prior to, expiration or termination of the Commitments of the aggregate principal  amount of such Swingline Loans; provided, that in the event that any Mandatory Revolving Credit Loan Borrowing  cannot for any reason be made on the date otherwise required above (including as a result of the commencement of a  proceeding under any domestic or foreign bankruptcy, reorganization, dissolution, insolvency, receivership,  administration or liquidation or similar law with respect to any Borrower), then each Lender hereby agrees that it  shall forthwith purchase (as of the date the Mandatory Revolving Credit Loan Borrowing would otherwise have  occurred, but adjusted for any payments received from such Borrower on or after such date and prior to such  purchase) from the Swingline Lender such participations in such outstanding Swingline Loans as shall be necessary  to cause such Lenders to share in such Swingline Loans ratably based upon their respective Commitment  Percentages, provided, further, that (x) all interest payable on the Swingline Loans shall be for the account of the  Swingline Lender until the date as of which the respective participation is required to be purchased and, to the extent  attributable to the purchased participation, shall be payable to the participant from and after such date and (y) at the  time any purchase of participations pursuant to this sentence is actually made, the purchasing Lender shall be  required to pay the Swingline Lender interest on the principal amount of the participation purchased for each day  from and including the day upon which the Mandatory Revolving Credit Loan Borrowing would otherwise have  occurred to but excluding the date of payment for such participation, at the rate otherwise applicable to Revolving  Credit Loans made as ABR Loans or Daily Rate Loans as applicable. Each Lender will make the proceeds of any  Revolving Credit Loan made pursuant to the immediately preceding sentence available to the Administrative Agent  for the account of the Swingline Lender at the office of the Administrative Agent prior to 11:00 A.M., New York  City time, in funds immediately available on the Business Day next succeeding the date on which the Commitments  expire or terminate and in the currency in which such Swingline Loans were made. The proceeds of such Revolving  Credit Loans shall be immediately applied to repay the Swingline Loans outstanding on the date of termination or  expiration of the Commitments. In the event that the Lenders purchase undivided participating interests pursuant to  the first sentence of this clause (d), each Lender shall immediately transfer to the Swingline Lender, in immediately  available funds and in the currency in which such Swingline Loans were made, the amount of its participation and  upon receipt thereof the Swingline Lender will deliver to such Lender a Swingline Loan Participation Certificate  dated the date of receipt of such funds and in such amount.  (e) Whenever, at any time after the Swingline Lender has received from any Lender such Lender’s  participating interest in a Swingline Loan, the Swingline Lender receives any payment on account thereof (whether  directly from a Borrower or otherwise, including proceeds of Collateral applied thereto by the Swingline Lender), or  any payment of interest on account thereof, the Swingline Lender will, if such payment is received prior to 11:00  A.M., New York City time, on a Business Day, distribute to such Lender its pro rata share thereof prior to the end of  such Business Day and otherwise, the Swingline Lender will distribute such payment on the next succeeding  Business Day (appropriately adjusted, in the case of interest payments, to reflect the period of time during which  such Lender’s participating interest was outstanding and funded); provided, however, that in the event that such  payment received by the Swingline Lender is required to be returned, such Lender will return to the Swingline  Lender any portion thereof previously distributed by the Swingline Lender to it.  (f) Each Lender’s obligation to make the Revolving Credit Loans and to purchase participating  interests with respect to Swingline Loans in accordance with Subsections 2.4(c) and 2.4(d) shall be absolute and  unconditional and shall not be affected by any circumstance, including without limitation (i) any set-off,  counterclaim, recoupment, defense or other right that such Lender or any of the Borrowers may have against the  Swingline Lender, any of the Borrowers or any other Person for any reason whatsoever; (ii) the occurrence or  continuance of a Default or an Event of Default; (iii) any adverse change in condition (financial or otherwise) of any  of the Borrowers; (iv) any breach of this Agreement or any other Loan Document by any of the Borrowers, any  

 

  70  other Loan Party or any other Lender; (v) any inability of any of the Borrowers to satisfy the conditions precedent to  borrowing set forth in this Agreement on the date upon which such Revolving Credit Loan is to be made or  participating interest is to be purchased or (vi) any other circumstance, happening or event whatsoever, whether or  not similar to any of the foregoing.  2.5 Repayment of Loans.   (a) Each Borrower hereby unconditionally promises to pay to the Administrative Agent (in the  currency in which such Loan is denominated) for the account of:  (i) each Lender the then unpaid principal amount  of each Revolving Credit Loan of such Lender made to such Borrower, on the Termination Date (or such earlier date  on which the Revolving Credit Loans become due and payable pursuant to Section 9); and (ii) the Swingline Lender,  the then unpaid principal amount of the Swingline Loans made to such Borrower, on the Termination Date (or such  earlier date on which the Swingline Loans become due and payable pursuant to Section 9). Each Borrower hereby  further agrees to pay interest (which payments shall be in the same currency in which the respective Loan referred to  above is denominated) on the unpaid principal amount of such Loans from time to time outstanding from the date  hereof until payment in full thereof at the rates per annum, and on the dates, set forth in Subsection 4.1.  (b) Each Lender (including the Swingline Lender) shall maintain in accordance with its usual practice  an account or accounts evidencing indebtedness of each of the Borrowers to such Lender resulting from each Loan  of such Lender from time to time, including the amounts of principal and interest payable and paid to such Lender  from time to time under this Agreement.  (c) The Administrative Agent shall maintain the Register pursuant to Subsection 11.6(b), and a  subaccount therein for each Lender, in which shall be recorded (i) the amount of each Loan made hereunder, the  Type thereof, the Borrowers to which such Loan is made, each Interest Period, if any, applicable thereto and  whether such Loans are Revolving Credit Loans or Swingline Loans, (ii) the amount of any principal or interest due  and payable or to become due and payable from each of the Borrowers to each applicable Lender hereunder and (iii)  the amount of any sum received by the Administrative Agent hereunder from each of the Borrowers and each  applicable Lender’s share thereof.  (d) The entries made in the Register and the accounts of each Lender maintained pursuant to  Subsection 2.5(c) shall, to the extent permitted by applicable law, be prima facie evidence of the existence and  amounts of the obligations of each of the Borrowers therein recorded; provided, however, that the failure of any  Lender or the Administrative Agent to maintain the Register or any such account, or any error therein, shall not in  any manner affect the obligation of the any Borrower to repay (with applicable interest) the Loans made to such  Borrower by such Lender in accordance with the terms of this Agreement.  (e) The Administrative Agent shall maintain an account on its books in the name of Borrowers (the  “Loan Account”) on which Borrowers will be charged with the Term Loans, all Revolving Credit Loans (including  the Administrative Agent Advances and Swingline Loans) made by the Administrative Agent, Swingline Lender, or  the Lenders to any Borrower or for any Borrower’s account, the Letters of Credit issued or arranged by any Issuing  Lender for any Borrower’s account, and with all other payment Obligations hereunder or under the other Loan  Documents, including, accrued interest, fees and expenses.  In accordance with Subsection 2.5(e), the Loan Account  will be credited with all payments received by the Administrative Agent from the Borrowers or for the Borrowers’  account.  The Administrative Agent shall make available to the Parent Borrower monthly statements regarding the  Loan Account, including the principal amount of the Revolving Credit Loans (and Term Loans, if applicable),  interest accrued hereunder, fees accrued or charged hereunder or under the other Loan Documents, and each such  statement, absent manifest error, shall be conclusively presumed to be correct and accurate and constitute an account  stated between the Borrowers and the Lenders unless, within 30 days after the Administrative Agent first makes  such a statement available to the Parent Borrower, the Parent Borrower shall deliver to the Administrative Agent  written objection thereto describing the error or errors contained in such statement.  (f) Each Borrower hereby authorizes the Administrative Agent, from time to time without prior notice  to any Borrower, to charge to the Loan Account (A) on each Interest Payment Date, all interest accrued during the  

 

  71  applicable period on the Revolving Credit Loans (or the Term Loan, if applicable) hereunder, (B) on each L/C Fee  Payment Date, all L/C Fees accrued or chargeable hereunder during the prior quarter, (C) as and when due and  payable, all other fees payable hereunder or under any of the other Loan Documents, and (D) if the Borrowers do  not pay any other payment obligations payable under any Loan Document within 30 days of the date of the  Borrower Representative’s receipt of written notice thereof, any amount of such other payment obligations; provided  that no error made by the Administrative Agent in so charging the Loan Account shall result in a Default or an Event  of Default under this Agreement to the extent such Default or Event of Default would not have occurred but for such  error; provided further, that the 30-day period following the Borrower Representative’s receipt of written notice set  forth in the foregoing clause (D) shall not be applicable (and the Administrative Agent shall be entitled to  immediately charge to the Loan Account) at any time that an Event of Default has occurred and is continuing.  All  amounts (including interest, fees, costs, expenses, or other amounts payable hereunder or under any other Loan  Document) charged to the Loan Account shall thereupon constitute Revolving Credit Loans hereunder, shall  constitute Obligations hereunder, and shall initially accrue interest at the rate then applicable to Revolving Credit  Loans that are ABR Loans (unless and until converted into Eurodollar Loans in accordance with the terms of this  Agreement).  (g) The receipt of any payment item by the Administrative Agent shall not be required to be  considered a payment on account unless such payment item is a wire transfer of immediately available funds made  to the Administrative Agent’s Account or unless and until such payment item is honored when presented for  payment.  Should any payment item not be honored when presented for payment, then the Borrowers shall be  deemed not to have made such payment; provided, that if the sole reason that such payment item is not honored is  because of the gross negligence or willful misconduct of the Administrative Agent, no Default or Event of Default  shall occur until the third Business Day following the date on which the Borrower Representative receives notice  that such payment was not honored (or such longer period until the Administrative Agent’s gross negligence or  willful misconduct has ceased).  Anything to the contrary contained herein notwithstanding, any payment item shall  be deemed received by the Administrative Agent only if it is received into the Administrative Agent’s Account on a  Business Day on or before 2:00 p.m. New York City time.  If any payment item is received into the Administrative  Agent’s Account on a non-Business Day or after 2:00 p.m. New York City time on a Business Day (unless the  Administrative Agent, in its sole discretion, elects to credit it on the date received), it shall be deemed to have been  received by the Administrative Agent as of the opening of business on the immediately following Business Day. For  the avoidance of doubt, any payments deposited into a Blocked Account shall be deemed not to be received by the  Administrative Agent on any Business Day unless immediately available funds have been credited to the  Administrative Agent’s Account prior to 2:00 p.m. New York City time. on such Business Day.  (h) The receipt of any payment item by the Administrative Agent shall not be required to be  considered a payment on account unless such payment item is a wire transfer of immediately available funds made  to the Administrative Agent’s Account or unless and until such payment item is honored when presented for  payment.  Should any payment item not be honored when presented for payment, then the Borrowers shall be  deemed not to have made such payment; provided, that if the sole reason that such payment item is not honored is  because of the gross negligence or willful misconduct of the Administrative Agent, no Default or Event of Default  shall occur until the third Business Day following the date on which the Borrower Representative receives notice  that such payment was not honored (or such longer period until the Administrative Agent’s gross negligence or  willful misconduct has ceased).  2.6 Accordion Facility.  (a) So long as no Event of Default exists or would arise therefrom, the Borrowers shall have the right,  at any time and from time to time after the Closing Date, to request (i) an increase of the aggregate amount of the  then outstanding Commitments (the “Accordion Revolving Credit Commitments”) after the Closing Date or (ii) one  or more term loans (the “Accordion Term Loans” and together with the Accordion Revolving Credit Commitments,  collectively, the “Accordion Facilities” and each, an “Accordion Facility”). Notwithstanding anything to contrary  herein, the principal amount of any Accordion Term Loans or Accordion Revolving Credit Commitments shall not  exceed the Available Accordion Amount at such time. The Parent Borrower may seek to obtain Accordion  Revolving Credit Commitments or Accordion Term Loans from other Persons in an amount equal to the amount of  the increase in the total Commitments or total Accordion Term Loans, as applicable, requested by the Borrowers and  

 

  72  not accepted by the existing Lenders (each an “Accordion Facility Increase,” and each Person extending, or Lender  extending, Accordion Revolving Credit Commitments or Accordion Term Loans, an “Additional Lender”), provided,  however, that (i) no Lender shall be obligated to provide an Accordion Facility Increase as a result of any such  request by the Borrowers, and (ii) any Additional Lender which is not an existing Lender shall be subject to the  approval of, the Administrative Agent, each Issuing Lender and the Borrowers (each such approval not to be  unreasonably withheld). Each Accordion Facility Increase shall be in a minimum aggregate amount of at least  $15,000,000 and in integral multiples $5,000,000 in excess thereof. Any Accordion Facility Increase may be  denominated in Dollars, any Designated Foreign Currency and, to the extent that every Lender and Additional  Lender providing such Accordion Facility Increase has agreed to make Loans in another agreed currency, such other  currency.  Each Accordion Facility shall be incurred under this Agreement.  (b) (i) Any Accordion Term Loans (A) may not be guaranteed by any Subsidiaries of Ultimate  Parent other than the Guarantors and shall rank pari passu in right of (x) priority with respect to the Collateral and (y)  payment with respect to the Obligations in respect of the Commitments and any existing Accordion Term Loans, (B)  shall be part of, and count against, the Borrowing Base, (C) shall not have a final maturity that is earlier than the  Termination Date, (D) shall not amortize at a rate greater than 5.0% per annum, (E) for purposes of prepayments,  shall be treated no more favorably than the Loans, (F) may not be secured by any Collateral or other assets of any  Loan Party that do not also secure the Loans and (G) shall otherwise be on terms as are reasonably satisfactory to the  Administrative Agent.  (ii) Any Accordion Revolving Credit Commitments (A) may not be  guaranteed by any Subsidiaries of Ultimate Parent other than the Guarantors and shall rank pari  passu in right of (x) priority with respect to the Collateral and (y) payment with respect to the  Obligations in respect of the Commitments in effect prior to the Accordion Revolving Credit  Commitment Effective Date, (B) shall be on terms and pursuant to the documentation applicable  to the existing Commitments; provided that if the Applicable Margin relating to the Accordion  Revolving Credit Commitments may exceed the Applicable Margin relating to the Commitments  in effect prior to the Accordion Revolving Credit Commitment Effective Date so long as the  Applicable Margins relating to all Revolving Credit Loans shall be adjusted to be equal to the  Applicable Margin payable to the Lenders providing such Accordion Revolving Credit  Commitments.  (iii) The Accordion Facilities may be in the form of a separate  “first-in, last-out” tranche (the “Last-Out Tranche”) with a separate borrowing base against the  ABL Priority Collateral and interest rate margins in each case to be agreed upon (which, for the  avoidance of doubt, shall not require any adjustment to the Applicable Margin of other Revolving  Credit Loans pursuant to clause (ii) above) among the Parent Borrower, the Administrative Agent  and the Lenders providing the Last-Out Tranche so long as (1) any loans under the Last-Out  Tranche may not be guaranteed by any Subsidiaries of Ultimate Parent other than the Guarantors  and shall rank pari passu in right of priority with respect to the Collateral, (2) if availability  under the Last-Out Tranche exceeds $0, any extension of credit under the Revolving Credit  Facility thereafter requested shall be made under the Last-Out Tranche until the Last-Out  Tranche availability no longer exceeds $0, (3) as between (x) the Revolving Credit Facility (other  than the Last-Out Tranche), the Accordion Term Loans (unless otherwise agreed in writing  between the Administrative Agent and any Additional Agent) and, at the Parent Borrower’s  election, Designated Hedging Arrangements and Designated Cash Management Arrangements  permitted hereunder and secured by the Guarantee and Collateral Agreement and (y) the Last-Out  Tranche, all proceeds from the liquidation or other realization of the Collateral (including ABL  Priority Collateral) shall be applied first to obligations owing under, or with respect to, the  Revolving Credit Facility (other than the Last-Out Tranche), the Accordion Term Loans (unless  otherwise agreed in writing between the Administrative Agent and any Additional Agent),  Designated Hedging Arrangements and Designated Cash Management Arrangements permitted  hereunder and secured by the Guarantee and Collateral Agreement and second to the Last-Out  Tranche, (4) no Borrower may prepay Revolving Credit Loans under the Last-Out Tranche or  terminate or reduce the commitments in respect thereof at any time that other Revolving Credit  Loans or Accordion Term Loans are outstanding (unless otherwise agreed in writing among the  

 

  73  Administrative Agent, the Required Lenders and any Additional Agent), (5) the Required  Lenders (calculated as including Lenders under the Accordion Facilities and the Last-Out  Tranche) shall, subject to the terms of the Intercreditor Agreement, control exercise of remedies  in respect of the ABL Priority Collateral and (6) no changes affecting the priority status of the  Revolving Credit Facility (other than the Last-Out Tranche) or the Accordion Term Loans  (unless otherwise agreed in writing between the Administrative Agent and any Additional Agent)  vis-à-vis the Last-Out Tranche may be made without the consent of the Required Lenders under  the Revolving Credit Facility, other than in respect of the Last-Out Tranche, or the Accordion  Term Loans, as the case may be.  (c) Subject to Subsection 5.12, no Accordion Facility Increase shall become effective unless and until  each of the following conditions have been satisfied:  (i) The Borrowers, the Administrative Agent, and any Additional  Lender shall have executed and delivered a joinder to the Loan Documents (“Lender Joinder  Agreement”) in substantially the form of Exhibit L hereto or in such other form as may be  appropriate in the opinion of the Parent Borrower and the Administrative Agent;  (ii) The Borrowers shall have paid such fees and other  compensation to the Additional Lenders and to the Administrative Agent as the Borrowers, the  Administrative Agent and such Additional Lenders shall agree;  (iii) The Borrower Representative shall deliver to the  Administrative Agent and the Lenders an opinion or opinions, in form and substance reasonably  satisfactory to the Administrative Agent from counsel to the applicable Borrowers reasonably  satisfactory to the Administrative Agent and dated such date;  (iv) A Revolving Credit Note (to the extent requested) will be  issued at the applicable Borrowers’ expense, to each such Additional Lender, to be in conformity  with requirements of Subsection 2.1(d) (with appropriate modification) to the extent necessary to  reflect the new Commitment of each Additional Lender;  (v) The Parent Borrower shall deliver a certificate certifying that  (A) (x) in the case of a Limited Condition Transaction, the Specified Representations and (y) the  representations and warranties made by Ultimate Parent and its Restricted Subsidiaries contained  herein and in the other Loan Documents are true and correct in all material respects on and as of  the Accordion Revolving Credit Commitment 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 as of such earlier date, (B) no Specified Default has occurred and  is continuing and (C) Ultimate Parent would be in compliance, on a Pro Forma Basis, with  Subsection 8.1 recomputed as of the last day of the most recently ended fiscal quarter of Ultimate  Parent for which financial statements are available, whether or not compliance with Subsection  8.1 is otherwise required at such time; and  (vi) The applicable Borrowers and Additional Lenders shall have  delivered such other instruments, documents and agreements as the Administrative Agent may  reasonably have requested in order to effectuate the documentation of the foregoing.  (d) (i) In the case of any Accordion Facility Increase constituting Accordion Revolving Credit  Commitments, the Administrative Agent shall promptly notify each Lender as to the effectiveness of such  Accordion Facility Increase (with each date of such effectiveness being referred to herein as an “Accordion  Revolving Credit Commitment Effective Date”), and at such time (i) the Commitments under, and for all purposes  of, this Agreement shall be increased by the aggregate amount of such Accordion Revolving Credit Commitments,  (ii) Schedule A shall be deemed modified, without further action, to reflect the revised Commitments and  

 

  74  Commitment Percentages of the Lenders and (iii) this Agreement shall be deemed amended, without further action,  to the extent necessary to reflect any such Accordion Revolving Credit Commitments.  (ii) In the case of any Accordion Facility Increase, the  Administrative Agent, the Additional Lenders and the Borrowers agree to enter into any  amendment required to incorporate the addition of the Accordion Revolving Credit  Commitments and the Accordion Term Loans, the pricing of the Accordion Revolving Credit  Commitments and the Accordion Term Loans, the maturity date of the Accordion Revolving  Credit Commitments and the Accordion Term Loans and such other amendments as may be  necessary or appropriate in the reasonable opinion of the Administrative Agent and the  Borrowers in connection therewith. The Lenders hereby irrevocably authorize the Administrative  Agent to enter into such amendments.  (e) In connection with the Accordion Facility Increases hereunder, the Lenders and the Borrowers  agree that, notwithstanding anything to the contrary in this Agreement, (i) the applicable Borrowers shall, in  coordination with the Administrative Agent, (x) repay applicable outstanding Revolving Credit Loans of certain  Lenders, and obtain applicable Revolving Credit Loans from certain other Lenders (including the Additional  Lenders), or (y) take such other actions as reasonably may be required by the Administrative Agent to the extent  necessary so that the Lenders effectively participate in each of the outstanding Revolving Credit Loans, as  applicable, pro rata on the basis of their Commitment Percentages (determined after giving effect to any increase in  the Commitments pursuant to this Subsection 2.6), and (ii) the applicable Borrowers shall pay to the Lenders any  costs of the type referred to in Subsection 4.12 in connection with any repayment and/or Revolving Credit Loans  required pursuant to preceding clause (i). Without limiting the obligations of the Borrowers provided for in this  Subsection 2.6, the Administrative Agent and the Lenders agree that they will use commercially reasonable efforts  to attempt to minimize the costs of the type referred to in Subsection 4.12 which the Borrowers would otherwise  incur in connection with the implementation of an increase in the Commitments.  2.7 Refinancing Amendments.   (a) So long as no Specified Default exists or would arise therefrom, at any time after the Closing Date,  the Borrowers may obtain, from any Lender, any Additional Lender or any other Person, Credit Agreement  Refinancing Indebtedness in respect of the Facility (which for purposes of this clause (a) will be deemed to include  any then outstanding (w) Other Term Loans, (x) Accordion Term Loans, (y) Other Revolving Credit Loans and (z)  Loans provided against the Accordion Revolving Credit Commitments, but will exclude the commitments in respect  of the Last-Out Tranche unless (1) the Loans comprising the Last-Out Tranche are the only Loans outstanding and  (2) the Commitments for the Revolving Credit Facility (excluding the Last-Out Tranche) have been terminated) in  the form of (i) one or more Other Term Loans or Other Term Loan Commitments, (ii) one or more Other Revolving  Credit Loans or Other Revolving Credit Commitments, or (iii) in the case of the Last-Out Tranche, a new “first-in,  last-out” tranche, as the case may be, in each case pursuant to a Refinancing Amendment. Each Tranche of Credit  Agreement Refinancing Indebtedness incurred under this Subsection 2.7 shall be in an aggregate principal amount  that is (x) not less than $15,000,000 in the case of Other Term Loans or $15,000,000 in the case of Other Revolving  Credit Loans and (y) an integral multiple of $5,000,000 in excess thereof (or, in each case, in such lower minimum  amounts or multiples as agreed by the Administrative Agent in its reasonable discretion).  (b) The effectiveness of any Refinancing Amendment shall be subject to the satisfaction on the date  thereof of each of the conditions set forth in Subsections 6.2(a) and 6.2(b) and, to the extent reasonably requested by  the Administrative Agent, receipt by the Administrative Agent of legal opinions, board resolutions, officers’  certificates and/or reaffirmation agreements substantially consistent with those delivered on the Closing Date under  Subsection 6.1 (other than changes to such legal opinions resulting from a change in law, change in fact or change to  counsel’s form of opinion). Any Refinancing Amendment may provide for the issuance of Letters of Credit for the  account of any Borrower, or the provision to the Borrowers of Swingline Loans, pursuant to any Other Revolving  Credit Commitments established thereby, in each case on terms substantially equivalent to the terms applicable to  Letters of Credit and Swingline Loans under the Commitments.  

 

  75  (c) The Administrative Agent shall promptly notify each Lender as to the effectiveness of each  Refinancing Amendment. Each of the parties hereto hereby agrees that, upon the effectiveness of any Refinancing  Amendment, this Agreement shall be deemed amended to the extent (but only to the extent) necessary to reflect the  existence and terms of the Credit Agreement Refinancing Indebtedness incurred pursuant thereto (including any  amendments necessary to treat the Loans and Commitments subject thereto as Other Term Loans, Other Revolving  Credit Loans, Other Revolving Credit Commitments and/or Other Term Commitments). The Lenders hereby  irrevocably authorize the Administrative Agent to enter into any Refinancing Amendment to effect such  amendments to this Agreement and the other Loan Documents and such technical amendments as may be necessary  or appropriate, in the reasonable opinion of the Administrative Agent and the Parent Borrower, to effect the  provisions of this Subsection 2.7. In addition, if so provided in the relevant Refinancing Amendment and with the  consent of each Issuing Lender, participations in Letters of Credit expiring on or after the Termination Date shall be  partially or entirely reallocated from Lenders holding Commitments to Lenders holding extended revolving  commitments in accordance with the terms of such Refinancing Amendment; provided, however, that such  participation interests shall, upon receipt thereof by the relevant Lenders holding Commitments, be deemed to be  participation interests in respect of such Commitments and the terms of such participation interests (including,  without limitation, the commission applicable thereto) shall be adjusted accordingly.  2.8 Extension of Commitments.   (a) Notwithstanding anything to the contrary in this Agreement, pursuant to one or more offers (each,  an “Extension Offer”) made from time to time by the Borrowers to all Revolving Credit Lenders of Commitments,  with a like maturity date, or all lenders with Term Loans, with a like maturity date, in each case on a pro rata basis  (based on the aggregate outstanding principal amount of the applicable Commitments or Term Loans, as applicable)  and on the same terms to each such Lender, the Borrowers are hereby permitted to consummate from time to time  transactions with individual Lenders that accept the terms contained in such Extension Offers to extend the maturity  date of each such Lender’s Commitments or Term Loans, as applicable, and otherwise modify the terms of such  Revolving Credit Commitments or Term Loans pursuant to the terms of the relevant Extension Offer (including,  without limitation, by increasing the interest rate or fees payable in respect of, or changing the amortization or  prepayment provisions of, such Commitments (and related outstandings) or Term Loans) (each, an “Extension”, and  each group of Commitments or Term Loans, as applicable, as so extended, as well as the original Commitments or  Term Loans (not so extended), as applicable, being a “tranche”; any Extended Revolving Credit Commitments shall  constitute a separate tranche of Commitments from the tranche of Commitments from which they were converted  and any Extended Term Loans shall constitute a separate tranche of Term Loans from the tranche of Term Loans  from which they were converted), so long as the following terms are satisfied:  (i) no Specified Default shall have  occurred and be continuing at the time the offering document in respect of an Extension Offer is delivered to the  Lenders, (ii) except as to interest rates, fees, final maturity, amortization and prepayment provisions (which shall be  determined by the Parent Borrower and set forth in the relevant Extension Offer), (x) the Commitment of any  Revolving Credit Lender that agrees to an extension with respect to such Commitment (an “Extending Revolving  Credit Lender”) extended pursuant to an Extension (an “Extended Revolving Credit Commitment”), and the related  outstandings, shall be a Commitment (or related outstandings, as the case may be) with the same terms as the  original Commitments (and related outstandings) and (y) the Term Loans of any Lender that agrees to an extension  with respect to such Term Loans (an “Extending Term Lender” and together with any Extending Revolving Credit  Lender, if any, collectively, “Extending Lenders”) pursuant to an Extension (“Extended Term Loans”) shall have the  same terms as the original Term Loans; provided that (x) subject to the provisions of Section 3 and Subsection 2.4 to  the extent dealing with Letters of Credit and Swingline Loans which mature or expire after a maturity date when  there exist Extended Revolving Credit Commitments with a longer maturity date, all Letters of Credit and Swingline  Loans shall be participated in on a pro rata basis by all Lenders with Commitments in accordance with their  Commitment Percentage of the Commitments and all borrowings under Commitments and repayments thereunder  shall be made on a pro rata basis (except for (A) payments of interest and fees at different rates on Extended  Revolving Credit Commitments (and related outstandings) and (B) repayments required upon the maturity date of  the non-extending Commitments) and (y) at no time shall there be Commitments hereunder (including Extended  Revolving Credit Commitments and any original Commitments) which have more than two different maturity dates,  unless otherwise agreed by the Administrative Agent and the Parent Borrower (including agreements as to additional  administrative fees to be paid by the Borrowers), and (ii) any applicable Minimum Extension Condition shall be  satisfied unless waived by the Borrowers.  

 

  76  (b) With respect to all Extensions consummated by the Borrowers pursuant to this Subsection 2.8, (i)  such Extensions shall not constitute optional or mandatory payments or prepayments for purposes of Subsection 4.4  and (ii) no Extension Offer is required to be in any minimum amount or any minimum increment, provided that the  Parent Borrower may at its election specify as a condition (a “Minimum Extension Condition”) to consummating  any such Extension that a minimum amount (to be determined and specified in the relevant Extension Offer in the  Parent Borrower’s sole discretion and which may be waived by the Parent Borrower) of Commitments or Term  Loans, as applicable, of any or all applicable tranches be extended. The Administrative Agent and the Lenders  hereby consent to the transactions contemplated by this Subsection 2.8 (including, for the avoidance of doubt,  payment of any interest, fees or premium in respect of any Extended Revolving Credit Commitments or Extended  Term Loans, as applicable, on such terms as may be set forth in the relevant Extension Offer) and hereby waive the  requirements of any provision of this Agreement (including, without limitation, Subsections 4.4 and 4.8) or any  other Loan Document that may otherwise prohibit any such Extension or any other transaction contemplated by this  Subsection 2.8.  (c) No consent of any Lender or the Administrative Agent shall be required to effectuate any  Extension, other than (A) the consent of each Lender agreeing to such Extension with respect to its Commitments or  Term Loans (or a portion thereof) and (B) with respect to any Extension of the Commitments, the consent of each  Issuing Lender and the Swingline Lender, which consent shall not be unreasonably withheld, conditioned or delayed.  All Extended Revolving Credit Commitments and Extended Term Loans and all obligations in respect thereof shall  be Obligations under this Agreement and the other Loan Documents that are secured by the Collateral on a pari  passu basis with all other applicable Obligations under this Agreement and the other Loan Documents. The Lenders  hereby irrevocably authorize the Administrative Agent to enter into amendments to this Agreement and the other  Loan Documents with the Parent Borrower as may be necessary in order to establish new tranches or sub-tranches in  respect of Commitments or Term Loans so extended, permit the repayment of non-extending Loans on the  Termination Date and such technical amendments as may be necessary or appropriate in the reasonable opinion of  the Administrative Agent and the Parent Borrower in connection therewith, in each case on terms consistent with  this Subsection 2.8. On and after the Termination Date with respect to the Revolving Credit Commitment and  Revolving Credit Loans of any Lender that has not extended its Revolving Credit Commitments and Revolving  Credit Loans beyond such Termination Date pursuant to this Subsection 2.8(c), the Letter of Credit Exposure of  such Revolving Credit Lender shall be reallocated to Revolving Credit Lenders that have extended their Revolving  Credit Loans and Revolving Credit Commitments beyond such Termination Date pro rata in accordance with the  Revolving Credit Commitments and Revolving Credit Loans of all Revolving Credit Lenders that have so extended  their Revolving Credit Commitments and Revolving Credit Loans.  Notwithstanding the provisions of this  Subsection 2.8, the Administrative Agent shall have the right to resign on the Termination Date in accordance with,  and subject to the requirements of, Subsection 10.9.  (d) In connection with any Extension, the Parent Borrower shall provide the Administrative Agent at  least 5 Business Days’ (or such shorter period as may be agreed by the Administrative Agent in its reasonable  discretion) prior written notice thereof, and shall agree to such procedures (including, without limitation, regarding  timing, rounding and other adjustments and to ensure reasonable administrative management of the credit facilities  hereunder after such Extension), if any, as may be established by, or acceptable to, the Administrative Agent, in  each case acting reasonably to accomplish the purposes of this Subsection 2.8.  (e) Following any Extension, with the consent of the Parent Borrower, any Non-Extending Lender  may elect to have all or a portion of its existing Commitments or Term Loans deemed to be an Extended Revolving  Credit Commitment or Extended Term Loan, as applicable under the applicable extended tranche on any date (each  date a “Designation Date”) prior to the maturity date or termination date, as applicable, of such extended tranche;  provided that (i) such Lender shall have provided written notice to the Borrower Representative and the  Administrative Agent at least 10 Business Days prior to such Designation Date (or such shorter period as the  Administrative Agent may agree in its reasonable discretion) and (ii) no more than three Designation Dates may  occur in any one-year period without the written consent of the Administrative Agent.  Following a Designation  Date, the existing Commitments or Term Loans, as applicable, held by such Lender so elected to be extended will be  deemed to be an Extended Revolving Credit Commitment or Extended Term Loan, as applicable, and any existing  Commitments or Term Loans, as applicable, held by such Lender not elected to be extended, if any, shall continue to  be existing Commitments or Term Loans, as applicable.  

 

  77  2.9 Designated Account. The Administrative Agent is authorized to make the Revolving Credit Loans,  any Swingline Loan and any other Extension of Credit, and each Issuing Lender is authorized to issue the Letters of  Credit, under this Agreement based upon written instructions received from a Responsible Officer of the Borrower  Representative or without instructions if pursuant to Subsection 2.5(f).  Unless otherwise agreed by Agent and  Borrowers, any Revolving Credit Loan or Swingline Loan requested by Borrowers and made by Agent or the  Lenders hereunder shall be made to the Designated Account.  SECTION 3 Letters of Credit  3.1 L/C Commitment.   (a) Subject to the terms and conditions hereof, each Issuing Lender, in reliance on the agreements of  the other Revolving Credit Lenders set forth in Subsection 3.4(a), agrees to issue letters of credit (the letters of credit  issued on and after the Closing Date pursuant to this Section 3, collectively, the “Letters of Credit”) for the account  of the applicable Borrower or (if required by the applicable Issuing Lender, so long as a Borrower is a co-applicant  and jointly and severally liable thereunder) any Restricted Subsidiary on any Business Day during the Commitment  Period but in no event later than the 5th day prior to the Termination Date in such form as may be approved from  time to time by the Issuing Lender; provided that no Letter of Credit shall be issued if, after giving effect to such  issuance, (i) the aggregate Extensions of Credit to the Borrowers would exceed the applicable limitations set forth in  Subsection 2.1 (it being understood and agreed that the Administrative Agent shall calculate the Dollar Equivalent  of the then outstanding Revolving Credit Loans in any Designated Foreign Currency on the date on which the  Borrower Representative has requested that the applicable Issuing Lender issue a Letter of Credit for purposes of  determining compliance with this clause (i)), (ii) the L/C Obligations in respect of Letters of Credit would exceed  $50,000,000, (iii) the aggregate amount of all Letters of Credit issued by each Issuing Lender and outstanding at any  time shall not exceed at any time such Issuing Lender’s L/C Sublimit or (iv) the Aggregate Outstanding Credit of all  the Revolving Credit Lenders would exceed the Commitments of all the Revolving Credit Lenders then in effect.  (b) Each Letter of Credit shall be denominated in Dollars and shall be either (i) a standby letter of  credit issued to support obligations of the Parent Borrower or any of its Restricted Subsidiaries, contingent or  otherwise, which finance or otherwise arise in connection with the working capital and business needs of the Parent  Borrower and its Restricted Subsidiaries incurred in the ordinary course of business (a “Standby Letter of Credit”),  or (ii) a commercial letter of credit in respect of the purchase of goods or services by the Parent Borrower or any of  its Restricted Subsidiaries in the ordinary course of business, and unless otherwise agreed by the Administrative  Agent expire no later than the earlier of (A) one year after its date of issuance and (B) the 5th Business Day prior to  the Termination Date; provided that, notwithstanding any extension of the Termination Date pursuant to Subsection  2.8, unless otherwise agreed, no Issuing Lender shall be obligated to issue a Letter of Credit that expires beyond the  non-extended Termination Date. Unless otherwise expressly agreed by the applicable Issuing Lender and Borrowers  when a Letter of Credit is issued, (i) the rules of the ISP shall apply to each standby Letter of Credit, and (ii) the  rules of the UCP shall apply to each commercial Letter of Credit. Each standby Letter of Credit shall expire not later  than the date that is 12 months after the date of the issuance of such Letter of Credit; provided, that any standby  Letter of Credit may provide for the automatic extension thereof for any number of additional periods each of up to  one year in duration; provided further, that with respect to any Letter of Credit which extends beyond the  Termination Date, Letter of Credit Collateralization shall be provided therefor on or before the date that is five (5)  Business Days prior to the Termination Date.  Each commercial Letter of Credit shall expire on the earlier of (i) 120  days after the date of the issuance of such commercial Letter of Credit and (ii) five Business Days prior to the  Termination Date. Each Issuing Lender shall be deemed to have acted with due diligence and reasonable care if such  Issuing Lender’s conduct is in accordance with Standard Letter of Credit Practice or in accordance with this  Agreement.  (c) Notwithstanding anything to the contrary in Subsection 3.1(b), if the Borrower Representative so  requests in any L/C Request, the applicable Issuing Lender may, in its sole and absolute discretion, agree to issue a  Letter of Credit that has automatic renewal provisions (each, an “Auto-Renewal L/C”); provided that any such Auto- Renewal L/C must permit the applicable Issuing Lender to prevent any such renewal 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 in each such twelve-month period to be agreed upon at the time such Letter  

 

  78  of Credit is issued. Unless otherwise directed by the applicable Issuing Lender, the applicable Borrower shall not be  required to make a specific request to such Issuing Lender for any such renewal. Once an Auto-Renewal L/C has  been issued, the Lenders shall be deemed to have authorized (but may not require) the applicable Issuing Lender to  permit the renewal of such Letter of Credit at any time to an extended expiry date not later than the earlier of (i) one  year from the date of such renewal and (ii) the 5th Business Day prior to the Termination Date; provided that such  Issuing Lender shall not permit any such renewal if (x) such Issuing Lender has determined that it would have no  obligation at such time to issue such Letter of Credit in its renewed form under the terms hereof (by reason of the  provisions of Subsection 3.2(c) or otherwise), or (y) it has received notice on or before the day that is two Business  Days before the date which has been agreed upon pursuant to the proviso of the first sentence of this clause (c), (1)  from the Administrative Agent that any Lender directly affected thereby has elected not to permit such renewal or (2)  from the Administrative Agent, any Lender or Borrower that one or more of the applicable conditions specified in  Section 6 are not then satisfied, or that the issuance of such Letter of Credit would violate Subsection 3.1.  (d) Each Letter of Credit issued by an Issuing Lender shall be deemed to constitute a utilization of the  Commitments, and shall be participated in (as more fully described in the following Subsection 3.4) by the Lenders  in accordance with their respective Commitment Percentages. All Letters of Credit issued hereunder shall be  denominated in Dollars or in the respective Designated Foreign Currency requested by the Borrower Representative  and shall be issued for the account of the applicable Borrower or (if required by the applicable Issuing Lender, so  long as a Borrower is a co-applicant and jointly and severally liable thereunder) any Restricted Subsidiary.  (e) Unless otherwise agreed by the applicable Issuing Lender and the Parent Borrower, each Letter of  Credit shall be governed by, and shall be construed in accordance with, the laws of the State of New York, and to  the extent not prohibited by such laws, the ISP shall apply to each Standby Letter of Credit and the Uniform  Customs shall apply to each commercial Letter of Credit. The ISP shall not in any event apply to this Agreement.  3.2 Procedure for Issuance of Letters of Credit.   (a) The Borrower Representative may, from time to time during the Commitment Period but in no  event later than the 30th day prior to the Termination Date, request that an Issuing Lender issue a Letter of Credit by  delivering to such Issuing Lender and the Administrative Agent at its address for notices specified herein, an L/C  Request therefor in the form Exhibit J-2 hereto (completed to the reasonable satisfaction of such Issuing Lender),  and such other certificates, documents and other papers and information as such Issuing Lender may reasonably  request. Each L/C Request shall be in form and substance reasonably satisfactory to Administrative Agent and such  Issuing Lender and (i) shall specify (A) the amount of such Letter of Credit, (B) the date of issuance, amendment,  renewal, or extension of such Letter of Credit, (C) the proposed expiration date of such Letter of Credit, (D) the  name and address of the beneficiary of the Letter of Credit, and (E) such other information (including the  Designated Foreign Currency in which the requested Letter of Credit is to be denominated (or specify that the  requested Letter of Credit is to be denominated in Dollars), the conditions to drawing, and, in the case of an  amendment, renewal, or extension, identification of the Letter of Credit to be so amended, renewed, or extended) as  shall be reasonably necessary to prepare, amend, renew, or extend such Letter of Credit, (ii) shall be accompanied  by such Issuer Documents as Administrative Agent or such Issuing Lender may reasonably request or require, to the  extent that such requests or requirements are consistent with the Issuer Documents that such Issuing Lender  generally requests for Letters of Credit in similar circumstances. Upon receipt of any L/C Request, such Issuing  Lender will process such L/C Request and the certificates, documents and other papers and information delivered to  it in connection therewith in accordance with its customary procedures and shall promptly issue the Letter of Credit  requested thereby (but in no event shall an Issuing Lender be required, unless otherwise agreed to by such Issuing  Lender, to issue any Letter of Credit earlier than five (5) Business Days after its receipt of the L/C Request therefor  and all such other certificates, documents and other papers and information relating thereto) by issuing the original  of such Letter of Credit to the beneficiary thereof or as otherwise may be agreed by such Issuing Lender and the  Parent Borrower. The applicable Issuing Lender shall furnish a copy of such Letter of Credit to the Borrower  Representative promptly following the issuance thereof. No Issuing Lender shall amend, cancel or waive  presentation of any Letter of Credit, or replace any lost, mutilated or destroyed Letter of Credit, without the prior  written consent of the Parent Borrower. Upon the issuance of any Letter of Credit or amendment, renewal, extension  or modification to a Letter of Credit, the applicable Issuing Lender shall promptly notify the Administrative Agent,  who shall promptly notify each Lender, thereof, which notice shall be accompanied by a copy of such Letter of  

 

  79  Credit or amendment, renewal, extension or modification to a Letter of Credit and the amount of such Lender’s  respective participation in such Letter of Credit pursuant to Subsection 3.4. If the applicable Issuing Lender is not  the same person as the Administrative Agent, on the first Business Day of each calendar month, such Issuing Lender  shall provide to the Administrative Agent a report listing all outstanding Letters of Credit and the amounts and  beneficiaries thereof and the Administrative Agent shall promptly provide such report to each Lender.  Any Issuing Lender (other than Wells Fargo or any of its Affiliates) shall notify Administrative Agent in writing no  later than the Business Day prior to the Business Day on which such Issuing Lender issues any Letter of Credit.  In  addition, each Issuing Lender (other than Wells Fargo or any of its Affiliates) shall, on the first Business Day of  each week, submit to Administrative Agent a report detailing the daily undrawn amount of each Letter of Credit  issued by such Issuing Lender during the prior calendar week.  Each Letter of Credit shall be in form and substance  reasonably acceptable to such Issuing Lender.   Each request for the issuance of a Letter of Credit, or the amendment, renewal, or extension of any outstanding  Letter of Credit, shall be subject to the applicable Issuing Lender’s authentication procedures with results  satisfactory to such Issuing Lender.  Each Issuing Lender’s records of the content of any such request will be  conclusive. Notwithstanding anything to the contrary herein, each Issuing Lender may, but shall not be obligated to,  issue a Letter of Credit that supports the obligations of a Loan Party or one of its Subsidiaries in respect of (x) a  lease of real property, or (y) an employment agreement (which, for the avoidance of doubt, will not include Letters  of Credit for workers’ compensation obligations).  (b) The making of each request for a Letter of Credit by the Borrower Representative shall be deemed  to be a representation and warranty by the Borrower Representative that such Letter of Credit may be issued in  accordance with, and will not violate the requirements of, Subsection 3.1. Unless the applicable Issuing Lender has  received notice from the Required Lenders before it issues a Letter of Credit that one or more of the applicable  conditions specified in Section 6 are not then satisfied, or that the issuance of such Letter of Credit would violate  Subsection 3.1, then such Issuing Lender may issue the requested Letter of Credit for the account of the applicable  Borrower or Subsidiary in accordance with such Issuing Lender’s usual and customary practices.  (c) No Issuing Lender shall be under any obligation to issue any Letter of Credit if  (i) any order, judgment or decree of any Governmental Authority  or arbitrator shall by its terms purport to enjoin or restrain such Issuing Lender from issuing such  Letter of Credit, or any Requirement of Law applicable to such Issuing Lender or any request or  directive (whether or not having the force of law) from any banking regulatory authority with  jurisdiction over such Issuing Lender shall prohibit the issuance of letters of credit generally;  (ii) the issuance of such Letter of Credit would violate one or more  existing (as of the date hereof) policies of such Issuing Lender consistently applied by such  Issuing Lender to borrowers generally; or  (iii) there shall be imposed on such Issuing Lender or any other  Secured Party any other condition regarding any Letter of Credit (for the avoidance of doubt,  other than any condition set forth in this Agreement or the other Loan Documents),   and the result of the foregoing is to increase, directly or indirectly, the cost to such Issuing Lender  or any other Secured Party of issuing, making, participating in, or maintaining any Letter of Credit or to  reduce the amount receivable in respect thereof, then, and in any such case, the Administrative Agent may,  at any time within a reasonable period after the additional cost is incurred or the amount received is  reduced, notify the Borrowers, and the Borrowers shall pay within 30 days after demand therefor, such  amounts as the Administrative Agent may specify to be necessary to compensate such Issuing Lender or  any other Secured Party for such additional cost or reduced receipt, together with interest on such amount  from the date of such demand until payment in full thereof at the rate then applicable to Base Rate Loans  hereunder; provided, that (A) Borrowers shall not be required to provide any compensation pursuant to this  Subsection 3.2(c) for any such amounts incurred more than 180 days prior to the date on which the demand  

 

  80  for payment of such amounts is first made to Borrowers, and (B) if an event or circumstance giving rise to  such amounts is retroactive, then the 180-day period referred to above shall be extended to include the  period of retroactive effect thereof. The determination by Administrative Agent of any amount due  pursuant to this Subsection 3.2(c), as set forth in a certificate setting forth the calculation thereof in  reasonable detail, shall, in the absence of manifest or demonstrable error, be final and conclusive and  binding on all of the parties hereto.  3.3 Fees, Commissions and Other Charges.   (a) Each Borrower agrees to pay to the Administrative Agent a letter of credit commission with  respect to each Letter of Credit issued by such Issuing Lender on its behalf, computed for the period from and  including the date of issuance of such Letter of Credit through to the expiration date of such Letter of Credit,  computed at a rate per annum equal to the Applicable Margin then in effect for Eurodollar Loans calculated on the  basis of a 360 day year, of the aggregate amount available to be drawn under such Letter of Credit, payable quarterly  in arrears on each L/C Fee Payment Date with respect to such Letter of Credit and on the Termination Date or such  earlier date as the Commitments shall terminate as provided herein. Such commission shall be payable to the  Administrative Agent for the account of the applicable Revolving Credit Lenders to be shared ratably among them  in accordance with their respective Commitment Percentages. Each Borrower shall pay to the relevant Issuing  Lender a fee equal to 1/8 of 1% per annum of the aggregate amount available to be drawn under such Letter of  Credit, payable quarterly in arrears on each L/C Fee Payment Date with respect to such Letter of Credit and on the  Termination Date or such other date as the Commitments shall terminate. Such commissions and fees shall be  nonrefundable. Such fees and commissions shall be payable in Dollars, notwithstanding that a Letter of Credit may  be denominated in any Designated Foreign Currency. In respect of a Letter of Credit denominated in any Designated  Foreign Currency, such fees and commissions shall be converted into Dollars at the Spot Rate of Exchange. If any  Issuing Lender makes a payment under a Letter of Credit, Borrowers shall pay to Administrative Agent an amount  equal to the applicable L/C Disbursement on the Business Day such L/C Disbursement is made and, in the absence  of such payment, the amount of the L/C Disbursement immediately and automatically shall be deemed to be a  Revolving Credit Loan hereunder (notwithstanding any failure to satisfy any condition precedent set forth in Section  6) and, initially, shall bear interest at the rate then applicable to Revolving Credit Loans that are ABR Loans. If a  L/C Disbursement is deemed to be a Revolving Credit Loan hereunder, Borrowers’ obligation to pay the amount of  such L/C Disbursement to the applicable Issuing Lender shall be automatically converted into an obligation to pay  the resulting Revolving Credit Loan.  (b) In addition to the foregoing commissions and fees, each Borrower agrees to pay or reimburse the  applicable Issuing Lender for such normal and customary costs and expenses as are incurred or charged by such  Issuing Lender in issuing, effecting payment under, amending or otherwise administering any Letter of Credit issued  by such Issuing Lender within 10 days after demand therefor.  (c) The Administrative Agent shall, promptly following any receipt thereof, distribute to the  applicable Issuing Lender and the applicable Lenders all commissions and fees received by the Administrative  Agent for their respective accounts pursuant to this Subsection 3.3.  3.4 L/C Participations.   (a) By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount  thereof) and without any further action on the part of the applicable Issuing Lender or the Lenders, each Issuing  Lender hereby irrevocably grants to each Lender, and each Lender hereby acquires from such Issuing Lender, a  participation in such Letter of Credit equal to such Lender’s Commitment Percentage of the aggregate amount  available to be drawn under such Letter of Credit. Each Lender acknowledges and agrees that its obligation to  acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and  shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter  of Credit or the occurrence and continuance of a Default or reduction or termination of the Commitments, or  expiration, termination or cash collateralization of any Letter of Credit and that each such payment shall be made  without any offset, abatement, withholding or reduction whatsoever. All calculations of the Lenders’ Commitment  Percentages shall be made from time to time by the Administrative Agent, which calculations shall be conclusive  

 

  81  absent manifest error. Promptly following receipt of a notice of a L/C Disbursement pursuant to Subsection 3.2,  each Revolving Credit Lender agrees to fund its Pro Rata Share of any Revolving Credit Loan deemed made  pursuant to Subsection 3.2 on the same terms and conditions as if Borrowers had requested the amount thereof as a  Revolving Credit Loan and Administrative Agent shall promptly pay to Issuing Lender the amounts so received by it  from the Revolving Credit Lenders.  Each such Revolving Credit Lender agrees to pay to Administrative Agent, for  the account of the applicable Issuing Lender, such Revolving Credit Lender’s pro rata share of any L/C  Disbursement made by such Issuing Lender under the applicable Letter of Credit.  In consideration and in  furtherance of the foregoing, each Revolving Credit Lender hereby absolutely and unconditionally agrees to pay to  Administrative Agent, for the account of such Issuing Lender, such Revolving Credit Lender’s pro rata share of each  L/C Disbursement made by such Issuing Lender and not reimbursed by Borrowers on the date due as provided in  Subsection 3.2 or of any reimbursement payment that is required to be refunded (or that Administrative Agent or  such Issuing Lender elects, based upon the advice of counsel, to refund) to Borrowers for any reason.  If any such  Revolving Credit Lender fails to make available to Administrative Agent the amount of such Revolving Credit  Lender’s pro rata share of a L/C Disbursement as provided in this Section, such Revolving Credit Lender shall be  deemed to be a Defaulting Lender and Administrative Agent (for the account of such Issuing Lender) shall be  entitled to recover such amount on demand from such Revolving Credit Lender together with interest thereon at the  Defaulting Lender Rate until paid in full.  (b) If the Borrowers fail to reimburse the applicable Issuing Lender on the due date as provided in  Subsection 3.5, such Issuing Lender shall notify the Administrative Agent and the Administrative Agent shall notify  each Lender of the applicable L/C Disbursement, the payment then due from the Borrowers in respect thereof and  such Lender’s Commitment Percentage thereof. Each Lender shall pay by wire transfer of immediately available  funds to the Administrative Agent not later than 2:00 p.m., New York City time, on such date (or, if such Lender  shall have received such notice later than 12:00 noon, New York City time, on any day, not later than 11:00 a.m.,  New York City time, on the next succeeding Business Day), an amount equal to such Lender’s Commitment  Percentage of the unreimbursed L/C Disbursement in the same manner as provided in Subsection 2.2 with respect to  Loans made by such Lender, and the Administrative Agent will promptly pay to the applicable Issuing Lender the  amounts so received by it from the Lenders. The Administrative Agent will promptly pay to the applicable Issuing  Lender any amounts received by it from the Borrowers pursuant to the above clause (a) prior to the time that any  Lender makes any payment pursuant to the preceding sentence and any such amounts received by the  Administrative Agent from the Borrowers thereafter will be promptly remitted by the Administrative Agent to the  Lender that shall have made such payments and to such Issuing Lender, as appropriate.  (c) If any Lender shall not have made its Commitment Percentage of such L/C Disbursement  available to the Administrative Agent as provided above, each of such Lender and each Borrower severally agrees to  pay interest on such amount, for each day from and including the date such amount is required to be paid in  accordance with the foregoing to but excluding the date such amount is paid, to the Administrative Agent for the  account of the applicable Issuing Lender at (i) in the case of Borrower, the rate per annum set forth in Subsection  3.5(b) and (ii) in the case of such Lender, at a rate determined by the Administrative Agent in accordance with  banking industry rules or practices on interbank compensation.  3.5 Reimbursement Obligation of the Borrowers.   (a) Each Borrower hereby agrees to reimburse each Issuing Lender, upon receipt by the Borrower  Representative of notice from the applicable Issuing Lender of the date and amount of a draft presented under any  Letter of Credit issued on its behalf and paid by such Issuing Lender (an “L/C Disbursement”), for the amount of  such draft so paid and any taxes, fees, charges or other costs or expenses reasonably incurred by such Issuing Lender  in connection with such payment. Each such payment shall be made to the applicable Issuing Lender, at its address  for notices specified herein, in the currency in which such Letter of Credit is denominated (except that, in the case of  any Letter of Credit denominated in any Designated Foreign Currency, in the event that such payment is not made to  such Issuing Lender within three Business Days of the date of receipt by the Borrower Representative of such notice,  upon notice by such Issuing Lender to the Borrower Representative, such payment shall be made in Dollars, in an  amount equal to the Dollar Equivalent of the amount of such payment converted on the date of such notice into  Dollars at the Spot Rate of Exchange on such date) and in immediately available funds, no later than 3:00 P.M.,  New York City time, on the date on which the Borrower Representative receives such notice, if received prior to  

 

  82  11:00 A.M., New York City Time, on a Business Day and otherwise, no later than 3:00 P.M., New York City time,  on the next succeeding Business Day; provided that the Borrowers may, subject to the conditions to borrowing set  forth herein, request in accordance with Subsection 2.2 that such payment be financed with ABR Loans or  Swingline Loans or Canadian Prime Rate Loans in an equivalent amount and, to the extent so financed, the  Borrowers’ obligation to make such payment shall be discharged and replaced by the resulting ABR Loans or  Swingline Loans or Canadian Prime Rate Loans. Any conversion by an Issuing Lender of any payment to be made  in respect of any Letter of Credit denominated in any Designated Foreign Currency into Dollars in accordance with  this Subsection 3.5(a) shall be conclusive and binding upon each Borrower and the applicable Revolving Credit  Lenders in the absence of manifest error; provided that upon the request of the Borrower Representative or any  Revolving Credit Lender, the applicable Issuing Lender shall provide to the Borrower Representative or Revolving  Credit Lender a certificate including reasonably detailed information as to the calculation of such conversion.  (b) Interest shall be payable on any and all amounts remaining unpaid (taking the Dollar Equivalent of  any amounts denominated in any Designated Foreign Currency, as determined by the Administrative Agent in its  reasonable discretion) by the Borrowers under this Subsection 3.5(b) from the date the draft presented under the  affected Letter of Credit is paid to the date on which the applicable Borrower is required to pay such amounts  pursuant to clause (a) above at the rate which would then be payable on any outstanding ABR Loans that are  Revolving Credit Loans and (ii) thereafter until payment in full at the rate which would be payable on any  outstanding ABR Loans that are Revolving Credit Loans which were then overdue. All Letter of Credit fees payable  hereunder, and all fronting fees and all commissions, other fees, charges and expenses provided for in Subsection  3.3 shall be due and payable, in arrears, on the first Business Day of each month.  3.6 Obligations Absolute. The Reimbursement Obligations of Borrowers as provided in Subsection  3.5 shall be absolute, unconditional and irrevocable, and shall be paid and performed strictly in accordance with the  terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or  enforceability of any Letter of Credit or this Agreement, or any term or provision therein; (ii) any draft or other  document presented under a Letter of Credit being proved to be forged, fraudulent, invalid or insufficient in any  respect or any statement therein being untrue or inaccurate in any respect; (iii) payment by any Issuing Lender under  a Letter of Credit against presentation of a draft or other document that fails to comply with the terms of such Letter  of Credit; (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might,  but for the provisions of this Section 3, constitute a legal or equitable discharge of, or provide a right of setoff  against, the obligations of Borrower hereunder; (v) the fact that a Default shall have occurred and be continuing; or  (vi) any material adverse change in the business, property, results of operations, prospects or condition, financial or  otherwise, of Ultimate Parent and its Restricted Subsidiaries. None of the Agents, the Lenders, the Issuing Lenders  or any of their affiliates shall have any liability or responsibility by reason of or in connection with the issuance or  transfer of any Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of the  circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in  transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit  (including any document required to make a drawing thereunder), any error in interpretation of technical terms or  any consequence arising from causes beyond the control of the Issuing Lenders; provided that the foregoing shall  not be construed to excuse any Issuing Lender from liability to the Borrowers to the extent of any direct damages (as  opposed to consequential damages, claims in respect of which are hereby waived by the Borrowers to the extent  permitted by applicable Requirements of Law) suffered by the Borrowers that are caused by such Issuing Lender’s  failure to exercise care when determining whether drafts and other documents presented under a Letter of Credit  comply with the terms thereof. The parties hereto expressly agree that, in the absence of gross negligence or willful  misconduct on the part of the applicable Issuing Lender (as finally determined by a court of competent jurisdiction),  such Issuing Lender shall be deemed to have exercised care in each such determination. In furtherance of the  foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented  which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the applicable Issuing  Lender may, in its sole discretion, either accept and make payment upon such documents without responsibility for  further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment  upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.  3.7 L/C Disbursements. The applicable Issuing Lender shall, promptly following its receipt thereof,  examine all documents purporting to represent a demand for payment under a Letter of Credit. Such Issuing Lender  

 

  83  shall promptly give written notice to the Administrative Agent and the Borrower Representative of such demand for  payment and whether such Issuing Lender has made or will make an L/C Disbursement thereunder; provided that  any failure to give or delay in giving such notice shall not relieve Borrower of its Reimbursement Obligation to such  Issuing Lender and the Lenders with respect to any such L/C Disbursement (other than with respect to the timing of  such Reimbursement Obligation set forth in Subsection 3.5).  3.8 L/C Request. To the extent that any provision of any L/C Request related to any Letter of Credit is  inconsistent with the provisions of this Section 3, the provisions of this Section 3 shall apply.  3.9 L/C Cash Collateralization.  (a) If (i) any Event of Default shall occur and be continuing, or (ii) the aggregate amount of Available  Loan Commitments shall at any time be less than zero, then on the third Business Day following the date when the  Parent Borrower receives notice from Administrative Agent or the Required Lenders (or, if the maturity of the  Obligations has been accelerated, Revolving Credit Lenders with Letter of Credit Exposure representing greater than  50% of the total Letter of Credit Exposure) demanding Letter of Credit Collateralization pursuant to this Subsection  3.9 upon such demand, Borrowers shall provide Letter of Credit Collateralization with respect to the then existing  L/C Obligations.  If Borrowers are required to provide Letter of Credit Collateralization hereunder as a result of the  occurrence of an Event of Default, any cash collateral held by the Administrative Agent as a result of such Letter of  Credit Collateralization shall be returned by Administrative Agent to Borrowers promptly, but in no event later than  three Business Days, after such Event of Default has been waived or cured in accordance with this Agreement.  (b) In the event of a direct conflict between the provisions of this Subsection 3.9 and any provision  contained in any Issuer Document, it is the intention of the parties hereto that such provisions be read together and  construed, to the fullest extent possible, to be in concert with each other.  In the event of any actual, irreconcilable  conflict that cannot be resolved as aforesaid, the terms and provisions of this Subsection 3.9 shall control and govern.  (c) At the Borrowers’ costs and expense, the Borrowers shall execute and deliver to each applicable  Issuing Lender such additional certificates, instruments and/or documents and take such additional action as may be  reasonably requested by such Issuing Lender to enable such Issuing Lender to issue any Letter of Credit pursuant to  this Agreement and related Issuer Document, to protect, exercise and/or enforce such Issuing Lenders’ rights and  interests under this Agreement or to give effect to the terms and provisions of this Agreement or any Issuer  Document.  Each Borrower irrevocably appoints each Issuing Lender as its attorney-in-fact and, if such Issuing  Lender has made a request for the same in writing to the Borrower Representative, following the earlier of (x) the  fifth Business Day after the Borrower Representative has provided affirmative confirmation of receipt of such  written request to such Issuing Lender or (y) the tenth Business Day after written notice is given to the Borrower  Representative pursuant to the terms hereof, authorizes such Issuing Lender, without notice to any Borrower, to  execute and deliver ancillary documents and letters customary in the letter of credit business that may include but  are not limited to advisements, indemnities, checks, bills of exchange and issuance documents. The power of  attorney granted by the Borrowers is limited solely to such actions related to the issuance, confirmation or  amendment of any Letter of Credit and to ancillary documents or letters customary in the letter of credit business.  This appointment is coupled with an interest.  3.10 Additional Issuing Lenders. The Parent Borrower may, at any time and from time to time with the  consent of the Administrative Agent (which consent shall not be unreasonably withheld, conditioned or delayed) and  such Lender, designate one or more additional Lenders to act as an issuing lender under the terms of this Agreement.  Any Lender designated as an issuing lender pursuant to this Subsection 3.10 shall be deemed to be an “Issuing  Lender” (in addition to being a Lender) in respect of Letters of Credit issued or to be issued by such Lender, and,  with respect to such Letters of Credit, such term shall thereafter apply to the other Issuing Lender or Issuing Lenders  and such Lender. The Administrative Agent shall notify the Lenders of any such additional Issuing Lender. If at any  time there is more than one Issuing Lender hereunder, the Parent Borrower may, in its discretion, select which  Issuing Lender is to issue any particular Letter of Credit.  

 

  84  3.11 Resignation or Removal of the Issuing Lender. Any Issuing Lender may resign as Issuing Lender  hereunder at any time upon at least 30 days’ prior notice to the Lenders, the Administrative Agent and the Borrower  Representative. Any Issuing Lender may be replaced at any time by written agreement among the Parent Borrower,  each Agent, the replaced Issuing Lender and the successor Issuing Lender. The Administrative Agent shall notify  the Lenders of any such resignation or replacement of an Issuing Lender. At the time any such resignation of an  Issuing Lender shall become effective, the Borrowers shall pay all unpaid fees accrued for the account of the retiring  Issuing Lender pursuant to Subsection 3.3. From and after the effective date of any such resignation or replacement,  (i) the successor Issuing Lender shall have all the rights and obligations of an Issuing Lender under this Agreement  with respect to Letters of Credit to be issued by it thereafter and (ii) references herein to the term “Issuing Lender”  shall be deemed to refer to such successor or to any previous Issuing Lender, or to such successor and all previous  Issuing Lenders, as the context shall require. After the resignation or replacement of an Issuing Lender, the retiring  or replaced Issuing Lender shall remain a party hereto and shall continue to have all the rights and obligations of an  Issuing Lender under this Agreement with respect to Letters of Credit issued by it prior to such resignation or  replacement, but shall not be required to issue additional Letters of Credit.  SECTION 4 General Provisions Applicable to Loans and Letters  of Credit  4.1 Interest Rates and Payment Dates.   (a) Each (i) Eurodollar Loan shall bear interest for each day during each Interest Period with respect  thereto at a rate per annum equal to the Adjusted LIBOR Rate determined for such day plus the Applicable Margin  in effect for such day, (ii) Daily Rate Loans shall bear interest at a rate per annum equal to the Daily One Month  LIBOR Rate determined for such day plus the Applicable Margin in effect for such day and (iii) BA Equivalent  Loans shall bear interest (computed on the basis of the actual number of days elapsed over a year of 365 or 366 days,  as applicable) at a rate per annum that shall be equal to the BA Rate determined for such day, plus the Applicable  Margin in effect for such day for BA Equivalent Loans.  (b) Each ABR Loan denominated in Dollars shall bear interest for each day that it is outstanding at a  rate per annum equal to the ABR in effect for such day plus the Applicable Margin in effect for such day and each  Canadian Prime Rate Loan shall bear interest for each day that it is outstanding at a rate per annum equal to the  Canadian Prime Rate in effect for such day plus the Applicable Margin in effect for such day.  (c) If all or a portion of (i) the principal amount of any Loan, (ii) any interest payable thereon or (iii)  any commitment fee, letter of credit commission, letter of credit fee or other amount payable hereunder shall not be  paid when due (whether at the Stated Maturity, by acceleration or otherwise), such overdue amount shall bear  interest at a rate per annum which is (x) in the case of overdue principal, the rate that would otherwise be applicable  thereto pursuant to the relevant foregoing provisions of this Subsection 4.1 plus 2.00%, (y) in the case of overdue  interest, the rate that would be otherwise applicable to principal of the related Loan pursuant to the relevant  foregoing provisions of this Subsection 4.1 (other than clause (x) above) plus 2.00% and (z) in the case of, fees,  commissions or other amounts, the rate described in clause (b) of this Subsection 4.1 for ABR Loans that are  Revolving Credit Loans accruing interest at the Alternate Base Rate plus 2.00%, in each case from the date of such  nonpayment until such amount is paid in full (as well as after any judgment relating thereto).  (d) Interest shall be payable in arrears on each Interest Payment Date, provided that interest accruing  pursuant to clause (c) of this Subsection 4.1 shall be payable from time to time on demand.  (e) It is the intention of the parties hereto to comply strictly with applicable usury laws; accordingly, it  is stipulated and agreed that the aggregate of all amounts which constitute interest under applicable usury laws,  whether contracted for, charged, taken, reserved, or received, in connection with the indebtedness evidenced by this  Agreement or any Notes, or any other document relating or referring hereto or thereto, now or hereafter existing,  shall never exceed under any circumstance whatsoever the maximum amount of interest allowed by applicable usury  laws.  

 

  85  4.2 Conversion and Continuation Options.   (a) The applicable Borrowers may elect from time to time to convert outstanding Revolving Credit  Loans from (i) Eurodollar Loans to ABR Loans or (ii) BA Equivalent Loans to Canadian Prime Rate Loans by the  Borrower Representative giving the Administrative Agent irrevocable notice of such election prior to 9:00 A.M.,  New York City time two Business Days prior to such election, provided that any such conversion of Eurodollar  Loans or BA Equivalent Loans may only be made on the last day of an Interest Period with respect thereto. The  Borrowers may elect from time to time to convert outstanding Revolving Credit Loans (x) from ABR Loans to  Eurodollar Loans or (y) from Canadian Prime Rate Loans to BA Equivalent Loans, by the Borrower Representative  giving the Administrative Agent irrevocable notice of such election prior to 11:00 A.M., New York City time at  least three Business Days’ prior to such election. Any such notice of conversion to Eurodollar Loans or BA  Equivalent Loans shall specify the length of the initial Interest Period or Interest Periods therefor. Upon receipt of  any such notice the Administrative Agent shall promptly notify each affected Lender thereof. All or any part of  outstanding Eurodollar Loans, BA Equivalent Loans, ABR Loans or Canadian Prime Rate Loans may be converted  as provided herein, provided that (i) (unless the Required Lenders otherwise consent) no Loan may be converted  into a Eurodollar Loan or BA Equivalent Loan when any Default or Event of Default has occurred and is continuing  and, in the case of any Default, the Administrative Agent has given notice to the Borrower Representative that no  such conversions may be made and (ii) no Loan may be converted into a Eurodollar Loan or BA Equivalent Loan  after the date that is one month prior to the Termination Date.  (b) Any Eurodollar Loan or BA Equivalent Loan may be continued as such upon the expiration of the  then current Interest Period with respect thereto by the Borrower Representative giving notice to the Administrative  Agent of the length of the next Interest Period to be applicable to such Loan, determined in accordance with the  applicable provisions of the term “Interest Period” set forth in Subsection 1.1, provided that no Eurodollar Loan or  BA Equivalent Loan may be continued as such (i) (unless the Required Lenders otherwise consent) when any  Default or Event of Default has occurred and is continuing and, in the case of any Default, the Administrative Agent  has given notice to the Borrower Representative that no such continuations may be made or (ii) after the date that is  one month prior to the applicable Termination Date, and provided, further, that if the Borrower Representative shall  fail to give any required notice as described above in this clause (b) or if such continuation is not permitted pursuant  to the preceding proviso such Eurodollar Loans or BA Equivalent Loans shall be automatically converted to ABR  Loans or Canadian Prime Rate Loans, as applicable, on the last day of such then expiring Interest Period. Upon  receipt of any such notice of continuation pursuant to this Subsection 4.2(b), the Administrative Agent shall  promptly notify each affected Lender thereof.  4.3 Minimum Amounts of Sets. All borrowings, conversions and continuations of Loans hereunder  and all selections of Interest Periods hereunder shall be in such amounts and be made pursuant to such elections so  that, after giving effect thereto, the aggregate principal amount of the Eurodollar Loans comprising each Set shall be  equal to $1,000,000 or a whole multiple of $500,000 in excess thereof and BA Equivalent Loans comprising each  Set shall be equal to Cdn$1,000,000 or a whole multiple of Cdn$500,000 in excess thereof and so that there shall not  be more than eight (8) Sets at any one time outstanding; provided that not more than three (3) Sets at any one time  shall be Eurodollar Loans with a one-week Interest Period.  4.4 Optional and Mandatory Prepayments.   (a) Each of the Borrowers may at any time and from time to time prepay the Loans made to it and the  Reimbursement Obligations in respect of Letters of Credit issued for its account, in whole or in part, subject to  Subsection 4.12, without premium or penalty but including, for the avoidance of doubt, accrued interest, upon notice  by the Borrower Representative to the Administrative Agent prior to 11:00 A.M., New York City time at least three  Business Days (or such shorter period as may be agreed by the Administrative Agent in its reasonable discretion)  prior to the date of prepayment (in the case of Eurodollar Loans or BA Equivalent Loans and Reimbursement  Obligations outstanding in any Designated Foreign Currency), prior to 11:00 A.M., New York City time (or such  later time as may be agreed by the Administrative Agent in its reasonable discretion) on at least one Business Day  prior to the date of prepayment (in the case of ABR Loans and Canadian Prime Rate Loans other than Swingline  Loans) or same-day notice by the Borrower Representative to the Administrative Agent (in the case of (x) Swingline  Loans and (y) Reimbursement Obligations outstanding in Dollars or a Designated Foreign Currency). Such notice  

 

  86  shall be irrevocable except as set forth in Subsection 4.4(g). Such notice shall specify, in the case of any prepayment  of Loans, the identity of the prepaying Borrower, the date and amount of prepayment and whether the prepayment is  (i) of Revolving Credit Loans or Swingline Loans, or a combination thereof, and (ii) of Eurodollar Loans, BA  Equivalent Loans, ABR Loans or Canadian Prime Rate Loans or a combination thereof, and, in each case if a  combination thereof, the principal amount allocable to each and, in the case of any prepayment of Reimbursement  Obligations, the date and amount of prepayment, the identity of the applicable Letter of Credit or Letters of Credit  and the amount allocable to each of such Reimbursement Obligations. Upon the receipt of any such notice the  Administrative Agent shall promptly notify each affected Lender thereof. If any such notice is given, the amount  specified in such notice shall be due and payable on the date specified therein, together with (if a Eurodollar Loan or  BA Equivalent Loan is prepaid other than at the end of the Interest Period applicable thereto) any amounts payable  pursuant to Subsection 4.12, the Revolving Credit Loans and the Reimbursement Obligations pursuant to this  Section shall (unless the Parent Borrower otherwise directs) be applied, first, to payment of the Swingline Loans  then outstanding, second, to payment of the Revolving Credit Loans then outstanding, third, to payment of any  Reimbursement Obligations then outstanding and, last, to cash collateralize any outstanding L/C Obligation on  terms reasonably satisfactory to the Administrative Agent; provided, further, that any pro rata calculations required  to be made pursuant to this Subsection 4.4(a) in respect to any Loan denominated in a Designated Foreign Currency  shall be made on a Dollar Equivalent basis. Partial prepayments pursuant to this Subsection 4.4(a) shall be in  multiples of $1,000,000 or Cdn$1,000,000, as applicable, provided that, notwithstanding the foregoing, any Loan  may be prepaid in its entirety.  (b) On any day (other than during an Agent Advance Period) on which the Aggregate Lender  Exposure or the unpaid balance of Extensions of Credit to, or for the account of, the Borrowers exceeds the  Borrowing Base (based on the Borrowing Base Certificate last delivered) or the total Commitments at such time, the  Borrowers shall prepay on such day the principal of outstanding Revolving Credit Loans in an amount equal to such  excess. If, after giving effect to the prepayment of all outstanding Revolving Credit Loans, the aggregate amount of  the L/C Obligations exceeds the Borrowing Base at such time (based on the Borrowing Base Certificate last  delivered), the Borrowers shall pay to the Administrative Agent on such day an amount of cash and/or Cash  Equivalents equal to the amount of such excess (up to a maximum amount equal to such L/C Obligations at such  time), such cash and/or Cash Equivalents to be held as security for all obligations of the Borrowers to the Issuing  Lenders and the Revolving Credit Lenders hereunder in a cash collateral account to be established by, and under the  sole dominion and control of, the Administrative Agent.  (c) The Borrowers shall prepay all Swingline Loans then outstanding simultaneously with each  borrowing by them of Revolving Credit Loans.  (d) Prepayments pursuant to Subsection 4.4(b) shall be applied, first, to prepay Swingline Loans then  outstanding, second, to prepay Revolving Credit Loans then outstanding, third, to pay any Reimbursement  Obligations then outstanding and, last, to cash collateralize all L/C Obligations on terms reasonably satisfactory to  the Administrative Agent.  (e) For avoidance of doubt, the Commitments shall not be correspondingly reduced by the amount of  any prepayments of Revolving Credit Loans, payments of Reimbursement Obligations and cash collateralizations of  L/C Obligations, in each case, made under Subsections 4.4(b).  (f) Notwithstanding the foregoing provisions of this Subsection 4.4, if at any time any prepayment of  the Loans pursuant to Subsection 4.4(a) or 4.4(b) would result, after giving effect to the procedures set forth in this  Agreement, in any Borrower incurring breakage costs under Subsection 4.12 as a result of Eurodollar Loans or BA  Equivalent Loans being prepaid other than on the last day of an Interest Period with respect thereto, then, the  relevant Borrower may, so long as no Default or Event of Default shall have occurred and be continuing, in its sole  discretion, initially (i) deposit a portion (up to 100%) of the amounts that otherwise would have been paid in respect  of such Eurodollar Loans or BA Equivalent Loans with the Administrative Agent (which deposit must be equal in  amount to the amount of such Eurodollar Loans or BA Equivalent Loans not immediately prepaid), to be held as  security for the obligations of such Borrowers to make such prepayment pursuant to a cash collateral agreement to  be entered into on terms reasonably satisfactory to the Administrative Agent with such cash collateral to be directly  applied upon the first occurrence thereafter of the last day of an Interest Period with respect to such Eurodollar  

 

  87  Loans or BA Equivalent Loans (or such earlier date or dates as shall be requested by such Borrower) or (ii) make a  prepayment of the Revolving Credit Loans in accordance with Subsection 4.4(a) with an amount equal to a portion  (up to 100%) of the amounts that otherwise would have been paid in respect of such Eurodollar Loans or BA  Equivalent Loans (which prepayment, together with any deposits pursuant to clause (i) above, must be equal in  amount to the amount of such Eurodollar Loans or BA Equivalent Loans not immediately prepaid); provided that,  notwithstanding anything in this Agreement to the contrary, none of the Borrowers may request any Extension of  Credit under the Commitments that would reduce the aggregate amount of the Available Loan Commitments to an  amount that is less than the amount of such prepayment until the related portion of such Eurodollar Loans or BA  Equivalent Loans have been prepaid upon the first occurrence thereafter of the last day of an Interest Period with  respect to such Eurodollar Loans or BA Equivalent Loans; provided that, in the case of either clause (i) or (ii), such  unpaid Eurodollar Loans or BA Equivalent Loans shall continue to bear interest in accordance with Subsection 4.1  until such unpaid Eurodollar Loans or BA Equivalent Loans or the related portion of such Eurodollar Loans or BA  Equivalent Loans, as the case may be, have or has been prepaid.  (g) If a notice of prepayment in connection with a repayment of all outstanding Loans is given in  connection with a conditional notice of termination of Commitments as contemplated by Subsection 2.3, then such  notice of prepayment may be revoked if such notice of termination is revoked in accordance with Subsection 2.3.  (h) Notwithstanding anything to the contrary herein, this Subsection 4.4 may be amended (and the  Lenders hereby irrevocably authorize the Administrative Agent to enter into any such amendments) to the extent  necessary to reflect differing amounts payable, and priorities of payments, to Lenders participating in any new  classes or tranches of Loans added pursuant to Subsections 2.6, 2.7 and 2.8, as applicable.  4.5 Commitment Fees; Administrative Agent’s Fee; Other Fees. Each Borrower agrees to pay to the  Administrative Agent, for the account of each Lender, a commitment fee for the period from and including the first  day of the Commitment Period to the Termination Date, computed at the Applicable Commitment Fee Rate on the  average daily amount of the Unutilized Commitment of such Revolving Credit Lender during the period for which  payment is made, payable quarterly in arrears on the first calendar day of each January, April, July and October and  on the Termination Date or such earlier date as the Commitments shall terminate as provided herein, commencing  on the first such date to occur after the date hereof.  Each Borrower further agrees to pay to the Administrative Agent the fees set forth in the Fee Letter.  4.6 Computation of Interest and Fees.   (a) Interest (other than interest based on the Alternate Base Rate, Canadian Prime Rate or BA Rate)  shall be calculated on the basis of a 360-day year for the actual days elapsed; and commitment fees and interest  based on the Alternate Base Rate, Canadian Prime Rate or BA Rate shall be calculated on the basis of a 365-day  year (or 366-day year, as the case may be) for the actual days elapsed. The Administrative Agent shall as soon as  practicable notify the Parent Borrower and the affected Lenders of each determination of an Adjusted LIBOR Rate  or Daily One Month LIBOR Rate. Any change in the interest rate on a Loan resulting from a change in the Alternate  Base Rate, the Canadian Prime Rate or the Statutory Reserves shall become effective as of the opening of business  on the day on which such change becomes effective. The Administrative Agent shall as soon as practicable notify  the Parent Borrower and the affected Lenders of the effective date and the amount of each such change in interest  rate.  (b) Each determination of an interest rate by the Administrative Agent pursuant to any provision of  this Agreement shall be conclusive and binding on each of the Borrowers and the Lenders in the absence of manifest  error. The Administrative Agent shall, at the request of the Borrower Representative or any Lender, deliver to the  Borrower Representative or such Lender a statement showing in reasonable detail the calculations used by the  Administrative Agent in determining any interest rate pursuant to Subsection 4.1, excluding any LIBOR Rate which  is based upon the Reuters Monitor Money Rates Service page, any BA Rate which is based on the Reuters Screen  CDOR Page, any Daily One Month LIBOR Rate that is based upon the ICE Benchmark Administration Limited  page and any ABR Loan which is based upon the Alternate Base Rate or any Canadian Prime Rate Loan based on  the Canadian Prime Rate.  

 

  88  (c) For the purposes of the Interest Act (Canada), in any case in which an interest or fee rate is stated  in this Agreement to be calculated on the basis of a number of days that is other than the number in a calendar year,  the yearly rate to which such interest or fee rate is equivalent is equal to such interest or fee rate multiplied by the  actual number of days in the year in which the relevant interest or fee payment accrues and divided by the number of  days used as the basis for such calculation.  4.7 Special Provisions Applicable to Interest Rate.  (a) The LIBOR Rate may be adjusted by the Administrative Agent with respect to any Lender on a  prospective basis to take into account any additional or increased costs to such Lender of maintaining or obtaining  any eurodollar deposits or increased costs (other than Taxes which shall be governed by Subsection 4.11), in each  case, due to changes in applicable law occurring subsequent to the commencement of the then applicable Interest  Period, including any Change in Law and changes in the reserve requirements imposed by the Board of Governors,  which additional or increased costs would increase the cost of funding or maintaining loans bearing interest at the  LIBOR Rate.  In any such event, the affected Lender shall give Borrower Representative and the Administrative  Agent notice of such a determination and adjustment and the Administrative Agent promptly shall transmit the  notice to each other Lender and, upon its receipt of the notice from the affected Lender, the Borrowers may, by  notice to such affected Lender (A) require such Lender to furnish to Borrowers a statement setting forth in  reasonable detail the basis for adjusting such LIBOR Rate and the method for determining the amount of such  adjustment, or (B) repay the Eurodollar Loans of such Lender with respect to which such adjustment is made  (together with any amounts due as a result of Funding Losses).  (b) Subject to the provisions set forth in Subsection 4.7(c), if prior to the first day of any Interest  Period, the Administrative Agent shall have determined (which determination shall be conclusive and binding upon  each of the Borrowers) that, by reason of circumstances affecting the relevant market, adequate and reasonable  means do not exist for ascertaining the LIBOR Rate with respect to any Eurodollar Loan (the “Affected Eurodollar  Rate”), the Daily One Month LIBOR Rate with respect to any Daily Rate Loan (the “Affected Daily Rate”) or the  BA Rate (the “Affected BA Rate”) with respect to any BA Equivalent Loans for such Interest Period, the  Administrative Agent shall give telecopy or telephonic notice thereof to the Parent Borrower and the Lenders as  soon as practicable thereafter. If such notice is given (a) any Eurodollar Loans, Daily Rate Loans or BA Equivalent  Loans the rate of interest applicable to which is based on the Affected Eurodollar Rate, the Affected Daily Rate or  the Affected BA Rate, as applicable, requested to be made on the first day of such Interest Period shall be made as  ABR Loans, Daily Rate Loans or Canadian Prime Rate Loans, as applicable and (b) any Loans that were to have  been converted on the first day of such Interest Period to or continued as Eurodollar Loans, Daily Rate Loans or BA  Equivalent Loans the rate of interest applicable to which is based upon the Affected Eurodollar Rate, the Affected  Daily Rate or Affected BA Rate shall be converted to or continued as ABR Loans or Canadian Prime Rate Loans, as  applicable. Until such notice has been withdrawn by the Administrative Agent, no further Eurodollar Loans, Daily  Rate Loans or BA Equivalent Loans the rate of interest applicable to which is based upon the Affected Eurodollar  Rate, the Affected Daily Rate or Affected BA Rate shall be made or continued as such, nor shall any of the  Borrowers have the right to convert ABR Loans, Daily Rate Loans or Canadian Prime Rate Loans to Eurodollar  Loans or BA Equivalent Loans, as applicable, the rate of interest applicable to which is based upon the Affected  Eurodollar Rate, the Affected Daily Rate or Affected BA Rate.   (c) Benchmark Replacement Setting.  Notwithstanding anything to the contrary herein or in any other  Loan Document:  (i) Benchmark Replacement. On March 5, 2021 the Financial  Conduct Authority (“FCA”), the regulatory supervisor of the LIBOR Rate’s administrator  (“IBA”), announced in a public statement the future cessation or loss of representativeness of  overnight/Spot Next, one-week, 1-month, 2-month, 3-month, 6-month and 12-month LIBOR  Rate tenor settings. On the earlier of (x) the date that all Available Tenors of the LIBOR Rate  have either permanently or indefinitely ceased to be provided by IBA or have been announced by  the FCA pursuant to public statement or publication of information to be no longer representative  and (y) the Early Opt-in Effective Date, if the then-current Benchmark is the LIBOR Rate, the  Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any  

 

  89  other Loan Document in respect of any setting of such Benchmark on such day and all  subsequent settings without any amendment to, or further action or consent of any other party to  this Agreement or any other Loan Document. If the Benchmark Replacement is Daily Simple  SOFR, all interest payments will be payable on a monthly basis.  (ii) Replacing Future Benchmarks. Upon the occurrence of a  Benchmark Transition Event, the Benchmark Replacement will replace the then-current  Benchmark for all purposes hereunder and under any Loan Document in respect of any  Benchmark setting at or after 5:00 p.m. 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. At any time that the  administrator of the then-current Benchmark has permanently or indefinitely ceased to provide  such Benchmark or such Benchmark has been announced by the regulatory supervisor for the  administrator of such Benchmark pursuant to public statement or publication of information to be  no longer representative of the underlying market and economic reality that such Benchmark is  intended to measure and that representativeness will not be restored, the Borrower may revoke  any request for a borrowing of, conversion to or continuation of Loans to be made, converted or  continued that would bear interest by reference to such Benchmark until the Borrower’s receipt of  notice from the Administrative Agent that a Benchmark Replacement has replaced such  Benchmark, and, failing that, the Borrower will be deemed to have converted any such request  into a request for a borrowing of or conversion to ABR Loans. During the period referenced in the  foregoing sentence, the component of ABR based upon the Benchmark will not be used in a  determination of ABR.  (iii) Benchmark Replacement Conforming Changes. In connection  with the implementation and administration of a Benchmark Replacement, the Administrative  Agent will have the right, upon consultation with the Borrower Representative, 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.  (iv) Unavailability of Tenor of Benchmark. At any time (including in  connection with the implementation of a Benchmark Replacement), (i) if the then-current  Benchmark is a term rate (including Term SOFR or the LIBOR Rate), then the Administrative  Agent (upon consultation with the Borrower Representative) may remove any tenor of such  Benchmark that is unavailable or non-representative for Benchmark (including Benchmark  Replacement) settings and (ii) the Administrative Agent (upon consultation with the Borrower  Representative) may reinstate any such previously removed tenor for Benchmark (including  Benchmark Replacement) settings.  (v) Notices; Standards for Decisions and Determinations. The  Administrative Agent will promptly notify the Borrower and the Lenders of (i) the  implementation of any Benchmark Replacement and (ii) the effectiveness of any Benchmark  Replacement Conforming Changes. 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, 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, 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 hereto, except, in  each case, as expressly required pursuant to this Subsection 4.7(c).  

 

  90  4.8 Pro Rata Treatment and Payments.   (a) Except as expressly otherwise provided herein, each borrowing of Revolving Credit Loans (other  than Swingline Loans) by any of the applicable Borrowers from the Lenders hereunder shall be made, each payment  by any of the Borrowers on account of any commitment fee in respect of the Commitments hereunder shall be  allocated by the Administrative Agent and any reduction of the Commitments of the Lenders, as applicable, shall be  allocated by the Administrative Agent in each case pro rata according to the Commitment Percentages of the  Lenders. Except as expressly otherwise provided herein, each payment (including each prepayment (but excluding  payments made pursuant to Subsection 2.6, 2.7, 2.8, 4.5, 4.9, 4.10, 4.11, 4.12,  4.13(d), 4.15(c) or 11.1(g))) by any  of the applicable Borrowers on account of principal of and interest on any Revolving Credit Loans shall be allocated  by the Administrative Agent pro rata according to the respective outstanding principal amounts of such Revolving  Credit Loans then held by the relevant Revolving Credit Lenders, and each payment on account of principal of and  interest on any loans made pursuant to any Tranche established after the date of this Agreement shall be allocated  pro rata (or as may otherwise be provided for in the applicable amendment to this Agreement relating to such  Tranche) among the Lenders with Accordion Term Loans in respect thereof or with participations in such Tranche  (in each case subject to any limitations on non-pro rata payments otherwise provided for in Subsection 2.6(b)(i)(E)  or 2.6(b)(iii)). All payments (including prepayments) to be made by any of the Borrowers hereunder, whether on  account of principal, interest, fees, Reimbursement Obligations or otherwise, shall be made without set-off or  counterclaim and shall be made on or prior to the time expressly required hereunder or under such other Loan  Document for such payment (or, if no such time is expressly required, prior to 2:00 p.m., New York City time (or  such later time as may be agreed by the Administrative Agent in its reasonable discretion)), on the due date thereof  to the Administrative Agent for the account of the Lenders holding the relevant Loans, the Lenders, the  Administrative Agent, or the Other Representatives, as the case may be, at the Administrative Agent’s office  specified in Subsection 11.2, in Dollars, or, in the case of Loans outstanding in any Designated Foreign Currency  and L/C Obligations in any Designated Foreign Currency, such Designated Foreign Currency and, whether in  Dollars or any Designated Foreign Currency, in immediately available funds. Payments received by the  Administrative Agent after such time shall be deemed to have been received on the next Business Day. The  Administrative Agent shall distribute such payments to such Lenders or Other Representatives, as the case may be,  if any such payment is received prior to 2:00 P.M., New York City time, on a Business Day, in like funds as  received prior to the end of such Business Day and otherwise the Administrative Agent shall distribute such  payment to such Lenders or Other Representatives, as the case may be, on the next succeeding Business Day. If any  payment hereunder (other than payments on the Eurodollar Loans, Daily Rate Loans or BA Equivalent Loans)  becomes due and payable on a day other than a Business Day, the maturity of such payment shall be extended to the  next succeeding Business Day, and, with respect to payments of principal, interest thereon shall be payable at the  then applicable rate during such extension. If any payment on a Eurodollar Loan, Daily Rate Loan or BA Equivalent  Loan becomes due and payable on a day other than a Business Day, the maturity of such payment shall be extended  to the next succeeding Business Day (and, with respect to payments of principal, interest thereon shall be payable at  the then applicable rate during such extension) unless the result of such extension would be to extend such payment  into another calendar month, in which event such payment shall be made on the immediately preceding Business  Day. Any pro rata calculations required to be made pursuant to this Subsection 4.8(a) in respect to any Revolving  Credit Loan denominated in a Designated Foreign Currency shall be made on a Dollar Equivalent basis. This  Subsection 4.8(a) may be amended to the extent necessary to reflect differing amounts payable, and priorities of  payments, to Lenders participating in any new classes or tranches of loans added pursuant to Subsections 2.6, 2.7  and 2.8, as applicable.  (b) Unless the Administrative Agent shall have been notified in writing by any Lender prior to a  borrowing that such Lender will not make the amount that would constitute its share of such borrowing available to  the Administrative Agent, the Administrative Agent may assume that such Lender is making such amount available  to the Administrative Agent, and the Administrative Agent may, in reliance upon such assumption, make available  to the applicable Borrowers in respect of such borrowing a corresponding amount. If such amount is not made  available to the Administrative Agent by the required time on the Borrowing Date therefor, such Lender shall pay to  the Administrative Agent on demand, such amount with interest thereon at a rate equal to (i) in the case of Loans to  be made in any Designated Foreign Currency, the rate customary in such Designated Foreign Currency for  settlement of similar inter-bank obligations, or (ii) in the case of Loans to be made in Dollars, the daily average  Federal Funds Effective Rate for the period until such Lender makes such amount immediately available to the  

 

  91  Administrative Agent. A certificate of the Administrative Agent submitted to any Lender with respect to any  amounts owing under this Subsection 4.8(b) shall be conclusive in the absence of manifest error. If such Lender’s  share of such borrowing is not made available to the Administrative Agent by such Lender by 10:00 a.m. on the  Business Day that is the first Business Day after such Borrowing Date, (x) the Administrative Agent shall notify the  Parent Borrower of the failure of such Lender to make such amount available to the Administrative Agent and the  Administrative Agent shall also be entitled to recover such amount with interest thereon at the rate per annum  applicable to, in the case of Loans to be made in Dollars, ABR Loans hereunder or, in the case of Loans to be made  in any Designated Foreign Currency, the rate per annum applicable to such Loans pursuant to Subsection 4.1, in  either case on demand, from such Borrower and (y) then such Borrower may, without waiving or limiting any rights  or remedies it may have against such Lender hereunder or under applicable law or otherwise, borrow a like amount  on an unsecured basis from any commercial bank for a period ending on the date upon which such Lender does in  fact make such borrowing available, provided that at the time such borrowing is made and at all times while such  amount is outstanding such Borrower would be permitted to borrow such amount pursuant to Subsection 2.1.  If the  amount that a Lender is required to remit is made available to Administrative Agent, then such payment to  Administrative Agent shall constitute such Lender’s Revolving Credit Loan for all purposes of this Agreement.  If  such amount is not made available to Administrative Agent on the Business Day following the Borrowing Date,  Administrative Agent will notify the Parent Borrower of such failure to fund and, upon demand by the  Administrative Agent, the Borrowers shall pay such amount to the Administrative Agent for the Administrative  Agent’s account, together with interest thereon for each day elapsed since the date of such borrowing, at a rate per  annum equal to the interest rate applicable at the time to the Revolving Credit Loans composing such borrowing.  4.9 Illegality. Notwithstanding any other provision herein, if the adoption of or any change in any  Requirement of Law or in the interpretation or application thereof occurring after the Closing Date shall make it  unlawful for any Lender to make or maintain any Eurodollar Loans, Daily Rate Loans or BA Equivalent Loans as  contemplated by this Agreement (“Affected Loans”), (a) such Lender shall promptly give written notice of such  circumstances to the Borrower Representative and the Administrative Agent (which notice shall be withdrawn  whenever such circumstances no longer exist), (b) the commitment of such Lender hereunder to make Affected  Loans, continue Affected Loans as such and convert an ABR Loan or Canadian Prime Rate Loan to an Affected  Loan shall forthwith be cancelled and, until such time as it shall no longer be unlawful for such Lender to make or  maintain such Affected Loans, such Lender shall then have a commitment only to make an ABR Loan or Canadian  Prime Rate Loan (as applicable) (or a Swingline Loan) when an Affected Loan is requested and (c) such Lender’s  Loans then outstanding as Affected Loans, if any, shall be converted automatically to ABR Loans or Canadian  Prime Rate Loans, as applicable on the respective last days of the then current Interest Periods with respect to such  Loans or within such earlier period as required by law. If any such conversion or prepayment of an Affected Loan  occurs on a day which is not the last day of the then current Interest Period with respect thereto, the applicable  Borrower shall pay to such Lender such amounts, if any, as may be required pursuant to Subsection 4.12.  4.10 Requirements of Law.  (a) If the adoption of or any change in any Requirement of Law or in the interpretation or application  thereof applicable to any Lender or any Issuing Lender, or compliance by any Lender or any Issuing Lender with  any request or directive (whether or not having the force of law) from any central bank or other Governmental  Authority, in each case made subsequent to the Closing Date (or, if later, the date on which such Lender becomes a  Lender or such Issuing Lender becomes an Issuing Lender):  (i) shall subject such Lender or such Issuing Lender to any Tax of  any kind whatsoever with respect to any Letter of Credit, any L/C Request, any Eurodollar Loans,  Daily Rate Loans or any BA Equivalent Loans made or maintained by it or its obligation to make  or maintain Eurodollar Loans, Daily Rate Loans or BA Equivalent Loans, or change the basis of  taxation of payments to such Lender in respect thereof, in each case, except for Non-Excluded  Taxes, Taxes imposed by FATCA and Taxes measured by or imposed upon the net income, or  franchise Taxes, or Taxes measured by or imposed upon overall capital or net worth, or branch  Taxes (in the case of such capital, net worth or branch Taxes, imposed in lieu of such net income  Tax), of such Lender, such Issuing Lender or its applicable lending office, branch, or any affiliate  thereof;  

 

  92  (ii) shall impose, modify or hold applicable any reserve, special  deposit, compulsory loan or similar requirement against assets held by, deposits or other  liabilities in or for the account of, advances, loans or other extensions of credit by, or any other  acquisition of funds by, any office of such Lender which is not otherwise included in the  determination of the Eurodollar Rate, Daily One Month LIBOR Rate or BA Rate, as the case  may be, hereunder; or  (iii) shall impose on such Lender or such Issuing Lender any other  condition (excluding any tax of any kind whatsoever);  and the result of any of the foregoing is to increase the cost to such Lender or such Issuing Lender, by an amount  which such Lender or such Issuing Lender deems to be material, of making, converting into, continuing or  maintaining Eurodollar Loans, Daily Rate Loans or BA Equivalent Loans or issuing or participating in Letters of  Credit or to reduce any amount receivable hereunder in respect thereof, then, in any such case, upon notice to the  Parent Borrower from such Lender, through the Administrative Agent in accordance herewith, the applicable  Borrower shall promptly pay such Lender or such Issuing Lender, upon its demand, any additional amounts  necessary to compensate such Lender for such increased cost or reduced amount receivable with respect to such  Eurodollar Loans, Daily Rate Loans, BA Equivalent Loans, or Letters of Credit, provided that, in any such case,  such Borrower may elect to convert the Eurodollar Loans, Daily Rate Loans and/or BA Equivalent Loans made by  such Lender hereunder to ABR Loans or Canadian Prime Rate Loans, as applicable, by giving the Administrative  Agent at least one Business Day’s (or such shorter period as may be agreed by the Administrative Agent in its  reasonable discretion) notice of such election, in which case such Borrower shall promptly pay to such Lender, upon  demand, without duplication, amounts theretofore required to be paid to such Lender pursuant to this Subsection  4.10(a) and such amounts, if any, as may be required pursuant to Subsection 4.12. If any Lender becomes entitled to  claim any additional amounts pursuant to this Subsection 4.10(a), it shall provide prompt notice thereof to the Parent  Borrower, through the Administrative Agent, certifying (x) that one of the events described in this clause (a) has  occurred and describing in reasonable detail the nature of such event, (y) as to the increased cost or reduced amount  resulting from such event and (z) as to the additional amount demanded by such Lender and a reasonably detailed  explanation of the calculation thereof. Such a certificate as to any additional amounts payable pursuant to this  Subsection 4.10(a) submitted by such Lender, through the Administrative Agent, to the Parent Borrower shall be  conclusive in the absence of manifest error. Notwithstanding anything to the contrary in this Subsection 4.10(a), the  Borrowers shall not be required to compensate a Lender (i) pursuant to this Subsection 4.10(a) for any amounts  incurred more than nine months prior to the date that such Lender notifies the Borrower Representative of such  Lender’s intention to claim compensation therefor (except that, if the adoption of or change in any Requirement of  Law or in the interpretation or application thereof giving rise to such increased costs or reductions is retroactive,  then provided such Lender shall, within nine months of such adoption, change, interpretation or application, have  notified the Borrower Representative of such Lender’s intention to claim compensation therefor, the nine-month  period first referred to in this sentence shall be extended to include the period of retroactive effect thereof) and  (ii) for any increased costs, if such Lender is applying this provision to the Borrowers in a manner that is  inconsistent with its application of “increased cost” or other similar provisions under other credit agreements to  similarly situated borrowers. This covenant shall survive the termination of this Agreement and the payment of the  Loans and all other amounts payable hereunder.  (b) If any Lender or any Issuing Lender shall have determined that the adoption of or any change in  any Requirement of Law regarding capital adequacy or liquidity or in the interpretation or application thereof or  compliance by such Lender or such Issuing Lender or any corporation controlling such Lender or such Issuing  Lender with any request or directive regarding capital adequacy or liquidity (whether or not having the force of law)  from any Governmental Authority, in each case, made subsequent to the Closing Date, does or shall have the effect  of reducing the rate of return on such Lender’s or such corporation’s capital as a consequence of such Lender’s or  such Issuing Lender’s obligations hereunder or under or in respect of any Letter of Credit to a level below that  which such Lender or such corporation could have achieved but for such change or compliance (taking into  consideration such Lender’s or such Issuing Lender’s or such corporation’s policies with respect to capital adequacy)  by an amount deemed by such Lender or such Issuing Lender to be material, then from time to time, within ten  Business Days after submission by such Lender to the Parent Borrower (with a copy to the Administrative Agent) of  a written request therefor certifying (x) that one of the events described in this clause (b) has occurred and  describing in reasonable detail the nature of such event, (y) as to the reduction of the rate of return on capital  

 

  93  resulting from such event and (z) as to the additional amount or amounts demanded by such Lender or such Issuing  Lender or corporation and a reasonably detailed explanation of the calculation thereof, the applicable Borrower shall  pay to such Lender such additional amount or amounts as will compensate such Lender or corporation for such  reduction. Such a certificate as to any additional amounts payable pursuant to this Subsection 4.10(b) submitted by  such Lender, through the Administrative Agent, to the Parent Borrower shall be conclusive in the absence of  manifest error. Notwithstanding anything to the contrary in this Subsection 4.10(b), the Borrowers shall not be  required to compensate a Lender (i) pursuant to this Subsection 4.10(b) for any amounts incurred more than nine  months prior to the date that such Lender notifies the Borrower Representative of such Lender’s intention to claim  compensation therefor (except that, if the adoption of or change in any Requirement of Law or in the interpretation  or application thereof giving rise to such increased costs or reductions is retroactive, then provided such Lender shall,  within nine months of such adoption, change, interpretation or application, have notified the Borrower  Representative of such Lender’s intention to claim compensation therefor, the nine-month period first referred to in  this sentence shall be extended to include the period of retroactive effect thereof) and (ii) for any increased costs, if  such Lender is applying this provision to the Borrowers in a manner that is inconsistent with its application of  “increased cost” or other similar provisions under other credit agreements to similarly situated borrowers. This  covenant shall survive the termination of this Agreement and the payment of the Loans and all other amounts  payable hereunder.  (c) Notwithstanding anything herein to the contrary, the Dodd Frank Wall Street Reform and  Consumer Protection Act, and all requests, rules, regulations, guidelines and directives promulgated thereunder or  issued in connection therewith and all requests, rules, guidelines or directives promulgated by the Bank for  International Settlements, the Basel Committee on Banking Supervision (or any successor authority) or the United  States or foreign regulatory authorities, in each case pursuant to Basel III, in each case shall be deemed to have been  enacted, adopted or issued, as applicable, subsequent to the Closing Date for all purposes herein.  4.11 Taxes.   (a) Except as provided below in this Subsection 4.11 or as required by law (which, for purposes of  this Subsection 4.11, shall include FATCA), all payments made by or on behalf of the Borrowers under this  Agreement and any Notes shall be made free and clear of, and without deduction or withholding for or on account of  any Taxes; provided that if any Non-Excluded Taxes are required to be withheld or deducted from any amounts  payable by such Borrower to any Agent or any Lender hereunder or under any Notes, the amounts so payable by  such Borrower shall be increased so that after such deduction or withholding has been made (including such  deductions and withholdings applicable to additional sums payable under this Subsection 4.11), such Agent or such  Lender receives an amount equal to the sum it would have received had no such deduction or withholding been  made; provided, however, that each of the Borrowers shall be entitled to deduct and withhold, and the Borrowers  shall not be required to indemnify for, any Non-Excluded Taxes, and any such amounts payable by any Borrower to  or for the account of any Agent or Lender shall not be increased if such Agent or Lender fails to comply with the  requirements of clauses (b), (c) or (d) of this Subsection 4.11 or with the requirements of Subsection 4.13. Whenever  any Non-Excluded Taxes are payable by any Borrower, as promptly as possible thereafter such Borrower shall send  to the Administrative Agent for its own account or for the account of the respective Lender or Agent, as the case  may be, a certified copy of an original official receipt received by such Borrower showing payment thereof. If any  Borrower fails to pay any Non-Excluded Taxes when due to the appropriate Governmental Authority in accordance  with applicable law or fails to remit to the Administrative Agent the required receipts or other required documentary  evidence, such Borrower shall indemnify the Administrative Agent, the Lenders and the Agents for any incremental  Taxes, interest or penalties that may become payable by the Administrative Agent or any Lender as a result of any  such failure. The agreements in this Subsection 4.11 shall survive the termination of this Agreement and the  payment of the Loans and all other amounts payable hereunder.  (b) Each Agent and each Lender that is not a United States Person shall:  (i) (1) on or before the date of any payment by any of the  Borrowers under this Agreement or any Notes to, or for the account of, such Agent or Lender,  deliver to the Borrowers and the Administrative Agent (A) two accurate and complete signed  copies of Internal Revenue Service Forms W-8BEN-E (certifying that it is a resident of the  

 

  94  applicable country within the meaning of the income tax treaty between the United States and  that country) or Forms W-8ECI, or successor applicable form, as the case may be, in each case  certifying that it is entitled to receive all payments under this Agreement and any Notes without  deduction or withholding or at a reduced rate of deduction or withholding of any United States  federal income taxes, and (B) such other forms, documentation or certifications, as the case may  be, certifying that it is entitled to an exemption from United States backup withholding tax with  respect to payments under this Agreement and any Notes;  (2) deliver to the Borrowers and the Administrative Agent  two further accurate and complete signed copies of any such forms or certifications provided in  Subsection 4.11(b)(i)(1) on or before the date that any such form or certification expires or  becomes obsolete and after the occurrence of any event requiring a change in the most recent form  or certificate previously delivered by it to the Borrowers; and  (3) obtain such extensions of time for filing and completing  such forms or certifications as may reasonably be requested by any Borrower or the  Administrative Agent; and  (4) deliver, to the extent legally entitled to do so, upon  reasonable request by any Borrower, to the Borrower Representative and the Administrative Agent  such other forms as may be reasonably required in order to establish the legal entitlement of such  Lender to an exemption from, or reduction of, withholding with respect to payments under this  Agreement and any Notes, provided that such Lender shall not be required to deliver any forms  under this paragraph (4) if in such Lender’s reasonable judgment the completion, execution or  delivery of such forms would subject such Lender to any material unreimbursed cost or expense or  would materially prejudice the legal or commercial position of such Lender; and  (ii) in the case of any such Lender that is not a “bank” within the  meaning of Section 881(c)(3)(A) of the Code and is claiming the so-called “portfolio interest  exemption”,  (1) represent to the Borrowers and the Administrative Agent  that it is not (A) a bank within the meaning of Section 881(c)(3)(A) of the Code, (B) a “10 percent  shareholder” of any Borrower within the meaning of Section 881(c)(3)(B) of the Code, or (C) a  “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code;  (2) deliver to the Borrowers on or before the date of any  payment by any of the Borrowers with a copy to the Administrative Agent, (A) two certificates  substantially in the form of Exhibit D hereto (any such certificate a “U.S. Tax Compliance  Certificate”) and (B) two accurate and complete signed copies of Internal Revenue Service Forms  W-8BEN-E, or successor applicable form, certifying to such Lender’s legal entitlement at the date  of such form to an exemption from U.S. withholding tax under the provisions of Section 871(h) or  Section 881(c) of the Code with respect to payments to be made under this Agreement and any  Notes and (C) such other forms, documentation or certifications, as the case may be certifying that  it is entitled to an exemption from United States backup withholding tax with respect to payments  under this Agreement and any Notes (and shall also deliver to the Borrower Representative and  the Administrative Agent two further accurate and complete signed copies of forms or certificates  on or before the date it expires or becomes obsolete and after the occurrence of any event  requiring a change in the most recently provided form or certificate and, if necessary and to the  extent reasonably requested by the Borrower Representative or the Administrative Agent in  writing, at the Borrowers’ sole cost and expense, apply to the applicable taxing authority for any  extension of time available to the Administrative Agent for filing or completing such forms or  certificates); and  (3) deliver, to the extent legally entitled to do so, upon  reasonable request by any Borrower, to the Borrowers and the Administrative Agent such other  

 

  95  forms as may be reasonably required in order to establish the legal entitlement of such Lender to  an exemption from, or reduction of, withholding with respect to payments under this Agreement  and any Notes, provided that in determining the reasonableness of a request under this clause (3)  such Lender shall be entitled to consider the cost (to the extent unreimbursed by any of the  Borrowers) which would be imposed on such Lender of complying with such request; or  (iii) in the case of any such Agent or Lender that is a non-U.S.  intermediary or flow-through entity for U.S. federal income tax purposes,  (1) on or before the date of any payment by any of the  Borrowers under this Agreement or any Notes to, or for the account of, such Agent or Lender,  deliver to the Borrowers and the Administrative Agent two accurate and complete signed copies of  Internal Revenue Service Forms W-8IMY, or successor applicable form, and, if any beneficiary or  member of such Lender is claiming the so-called “portfolio interest exemption”, (I) represent to  the Borrowers and the Administrative Agent that such Agent or Lender is not (A) a bank within  the meaning of Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of any  Borrower” within the meaning of Section 881(c)(3)(B) of the Code, or (C) a “controlled foreign  corporation” described in Section 881(c)(3)(C) of the Code, and (II) also deliver to the Borrowers  and the Administrative Agent two U.S. Tax Compliance Certificates certifying to such Agent’s or  Lender’s legal entitlement at the date of such certificate to an exemption from U.S. withholding  tax under the provisions of Section 881(c) of the Code with respect to payments to be made under  this Agreement and any Notes; and  (A) with respect to each beneficiary or member of such  Agent or Lender that is not claiming the so-called “portfolio interest exemption”, also  deliver to the Borrowers and the Administrative Agent (I) two accurate and complete  signed copies of Internal Revenue Service Form W-8BEN-E (certifying that such  beneficiary or member is a resident of the applicable country within the meaning of the  income tax treaty between the United States and that country), Forms W-8ECI or Forms  W-9, or successor applicable form, as the case may be, in each case so that each such  beneficiary or member is entitled to receive all payments under this Agreement and any  Notes without deduction or withholding or at a reduced rate of deduction or withholding  of any United States federal income taxes and (II) such other forms, documentation or  certifications, as the case may be, certifying that each such beneficiary or member is  entitled to an exemption from United States backup withholding tax with respect to all  payments under this Agreement and any Notes; and  (B) with respect to each beneficiary or member of such  Lender that is claiming the so-called “portfolio interest exemption”, (I) represent to the  Borrowers and the Administrative Agent that such beneficiary or member is not (1) a  bank within the meaning of Section 881(c)(3)(A) of the Code, (2) a “10 percent  shareholder” of any Borrower” within the meaning of Section 881(c)(3)(B) of the Code,  or (3) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code,  and (II) also deliver to the Borrower Representative and the Administrative Agent two  U.S. Tax Compliance Certificates from each beneficiary or member and two accurate and  complete signed copies of Internal Revenue Service Forms W-8BEN-E, or successor  applicable form, certifying to such beneficiary’s or member’s legal entitlement at the date  of such certificate to an exemption from U.S. withholding tax under the provisions of  Section 871(h) or Section 881(c) of the Code with respect to payments to be made under  this Agreement and any Notes, and (III) also delivers to Borrowers and the  Administrative Agent such other forms, documentation or certifications, as the case may  be, certifying that it is entitled to an exemption from United States backup withholding  tax with respect to payments under this Agreement and any Notes;  (2) deliver to the Borrowers and the Administrative Agent  two further accurate and complete signed copies of forms, certificates or certifications referred to  

 

  96  above on or before the date any such form, certificate or certification expires or becomes obsolete,  or any beneficiary or member changes, and after the occurrence of any event requiring a change in  the most recently provided form, certificate or certification and, if necessary and to the extent  reasonably requested by the Borrower Representative or the Administrative Agent in writing, at  the Borrowers’ sole cost and expense, apply to the applicable taxing authority for any extension of  time available to the Administrative Agent for filing or completing such forms, certificates or  certifications; and  (3) deliver, to the extent legally entitled to do so, upon  reasonable request by any Borrower, to the Borrowers and the Administrative Agent such other  forms as may be reasonably required in order to establish the legal entitlement of such Agent or  Lender (or beneficiary or member) to an exemption from, or reduction of, withholding with  respect to payments under this Agreement and any Notes, provided that in determining the  reasonableness of a request under this clause (iii) such Agent or Lender shall be entitled to  consider the cost (to the extent unreimbursed by any of the Borrowers) which would be imposed  on such Agent or Lender (or beneficiary or member) of complying with such request;  unless in any such case (other than with respect to United States backup withholding tax) there has been a Change in  Law which renders all such forms inapplicable or which would prevent such Agent or such Lender (or such  beneficiary or member) from duly completing and delivering any such form with respect to it and such Agent or  such Lender so advises the Parent Borrower and the Administrative Agent.  (c) Each Lender and each Agent, in each case that is a United States Person shall on or before the date  of any payment by any Borrower under this Agreement or any Notes to such Lender or Agent, deliver to such  Borrower Representative and the Administrative Agent two accurate and complete signed copies of Internal  Revenue Service Forms W-9, or successor applicable form, certifying that such Lender or Agent is a United States  Person and that such Lender or Agent is entitled to complete exemption from United States backup withholding tax.  (d) Notwithstanding the foregoing, on or before the date of any payment by any of the Borrowers  under this Agreement or any Notes to the Administrative Agent, the Administrative Agent shall, if the  Administrative Agent is not a United States Person:  (i) deliver to the Borrowers (A) two accurate and complete signed  copies of Internal Revenue Service Forms W-8ECI, or successor applicable form, with respect to  any amounts payable to the Administrative Agent for its own account, (B) two accurate and  complete signed copies of Internal Revenue Service Forms W-8IMY, or successor applicable  form, with respect to any amounts payable to the Administrative Agent for the account of others,  certifying that it is a “U.S. branch” and that the payments it receives for the account of others are  not effectively connected with the conduct of its trade or business in the United States and that it  is using such form as evidence of its agreement with the Borrowers to be treated as a U.S. person  with respect to such payments (and the Borrowers and the Administrative Agent agree to so treat  the Administrative Agent as a U.S. person with respect to such payments as contemplated by U.S.  Treasury Regulation § 1.1441-1(b)(2)(iv)) and (C) such other forms or certifications as may be  sufficient under applicable law to establish that the Administrative Agent is entitled to receive  any payment by any of the Borrowers under this Agreement or any Notes (whether for its own  account or for the account of others) without deduction or withholding of any United States  federal income taxes;   (ii) deliver to the Borrowers two further accurate and complete  signed copies of forms or certifications provided in Subsection 4.11(d)(i) on or before the date  that any such form or certification expires or becomes obsolete and after the occurrence of any  event requiring a change in the most recent form or certificate previously delivered by it to the  Borrowers; and  

 

  97  (iii) if necessary and to the extent reasonably requested by the  Borrower Representative or the Administrative Agent in writing, at the Borrowers’ sole cost and  expense, apply to the applicable taxing authority for any extension of time available to the  Administrative Agent for filing or completing such forms or certificates,  unless in any such case (other than with respect to United States backup withholding tax) there has been a Change in  Law which renders all such forms inapplicable or which would prevent the Administrative Agent from duly  completing and delivering any such form with respect to it and the Administrative Agent so advises the Borrower  Representative.  (e) If a payment made to an Agent or a Lender under any Loan Document would be subject to U.S.  federal withholding tax imposed by FATCA if such Agent or Lender were to fail to comply with the applicable  reporting requirements of FATCA, such Agent or Lender shall deliver to the Administrative Agent and the  Borrowers, at the time or times prescribed by law and at such time or times reasonably requested by the  Administrative Agent or the Borrowers, such documentation prescribed by applicable law and such additional  documentation reasonably requested by the Administrative Agent or the Borrowers as may be necessary for the  Administrative Agent and the Borrowers to comply with their respective obligations (including any applicable  reporting requirements) under FATCA, to determine whether such Agent or  Lender has complied with such Agent’s  or Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment. For  the avoidance of doubt, the Borrowers and the Administrative Agent shall be permitted to withhold any Taxes  imposed by FATCA.    (f) For purposes of this Subsection 4.11 and for purposes of Subsection 4.13, the term “Lender”  includes any Issuing Lender.  (g) The Borrowers shall indemnify each Agent and Lender, within 10 days after demand therefor, for  the full amount of any Non-Excluded Taxes (including Non-Excluded Taxes imposed or asserted on or attributable  to amounts payable under this Section) payable or paid by such Agent or Lender or required to be withheld or  deducted from a payment to such Agent or Lender and any reasonable expenses arising therefrom or with respect  thereto, whether or not such Non-Excluded Taxes were correctly or legally imposed by the relevant Governmental  Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender or  Agent (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a  Lender, shall be conclusive absent manifest error.  4.12 Indemnity. Each Borrower agrees, jointly and severally, to indemnify each Lender in respect of  Extensions of Credit made, or requested to be made, to the Borrowers and to hold each such Lender harmless from  any loss or expense which such Lender may sustain or incur (other than through such Lender’s gross negligence or  willful misconduct as determined by a court of competent jurisdiction in a final and nonappealable decision) as a  consequence of (a) default by such Borrower in making a borrowing of, conversion into or continuation of  Eurodollar Loans, Daily Rate Loans or BA Equivalent Loans after the Parent Borrower has given a notice requesting  the same in accordance with the provisions of this Agreement, (b) default by such Borrower in making any  prepayment or conversion of Eurodollar Loans, Daily Rate Loans or BA Equivalent Loans after the Borrower  Representative has given a notice thereof in accordance with the provisions of this Agreement or (c) the making of a  payment or prepayment of Eurodollar Loans, Daily Rate Loans or BA Equivalent Loans or the conversion of  Eurodollar Loans, Daily Rate Loans or BA Equivalent Loans on a day which is not the last day of an Interest Period  with respect thereto. Such indemnification may include an amount equal to the excess, if any, of (i) the amount of  interest which would have accrued on the amount so prepaid, or converted, or not so borrowed, converted or  continued, for the period from the date of such prepayment or conversion or of such failure to borrow, convert or  continue to the last day of the applicable Interest Period (or, in the case of Daily Rate Loans, the one month interest  period applicable thereto) (or, in the case of a failure to borrow, convert or continue, the Interest Period (or, in the  case of Daily Rate Loans, the one month interest period applicable thereto) that would have commenced on the date  of such failure) in each case at the applicable rate of interest for such Eurodollar Loans, Daily Rate Loans or BA  Equivalent Loans, as applicable, provided for herein (excluding, however, the Applicable Margin included therein, if  any) over (ii) the amount of interest (as reasonably determined by such Lender) which would have accrued to such  Lender on such amount by placing such amount on deposit for a comparable period with leading banks in the  

 

  98  interbank eurodollar market. If any Lender becomes entitled to claim any amounts under the indemnity contained in  this Subsection 4.12, it shall provide prompt notice thereof to the Parent Borrower, through the Administrative  Agent, certifying (x) that one of the events described in clause (a), (b) or (c) has occurred and describing in  reasonable detail the nature of such event, (y) as to the loss or expense sustained or incurred by such Lender as a  consequence thereof and (z) as to the amount for which such Lender seeks indemnification hereunder and a  reasonably detailed explanation of the calculation thereof. Such a certificate as to any indemnification pursuant to  this Subsection 4.12 submitted by such Lender, through the Administrative Agent, to the Parent Borrower shall be  conclusive in the absence of manifest error. The Parent Borrower shall pay (or cause the relevant Borrower to pay)  such Lender the amount shown as due on any such certificate within five Business Days after receipt thereof. This  covenant shall survive the termination of this Agreement and the payment of the Loans and all other amounts  payable hereunder.  4.13 Certain Rules Relating to the Payment of Additional Amounts.   (a) [Reserved].  (b) If a Lender changes its applicable lending office (other than (i) pursuant to clause (c) below or (ii)  after an Event of Default under Subsection 9.1(a) or 9.1(f) has occurred and is continuing) and the effect of such  change, as of the date of such change, would be to cause any of the Borrowers to become obligated to pay any  additional amount under Subsection 4.10 or 4.11, such Borrower shall not be obligated to pay such additional  amount.  (c) If a condition or an event occurs which would, or would upon the passage of time or giving of  notice, result in the payment of any additional amount to any Lender or Agent by any of the Borrowers pursuant to  Subsection 4.10 or 4.11 or result in Affected Loans or commitments to make Affected Loans being automatically  converted to ABR Loans or commitments to make ABR Loans, as the case may be, pursuant to Subsection 4.9, such  Lender or Agent shall promptly notify the Parent Borrower and the Administrative Agent and shall take such steps  as may reasonably be available to it to mitigate the effects of such condition or event (which shall include efforts to  rebook the Loans held by such Lender at another lending office, or through another branch or an affiliate, of such  Lender); provided that such Lender shall not be required to take any step that, in its reasonable judgment, would be  materially disadvantageous to its business or operations or would require it to incur additional costs (unless the  Parent Borrower agrees to reimburse such Agent or Lender for the reasonable incremental out-of-pocket costs  thereof).  (d) If any of the Borrowers shall become obligated to pay additional amounts pursuant to Subsection  4.10 or 4.11 and any affected Lender shall not have promptly taken steps necessary to avoid the need for payments  under Subsection 4.10 or 4.11 or if Affected Loans or commitments to make Affected Loans are automatically  converted to ABR Loans or commitments to make ABR Loans, as the case may be, under Subsection 4.9 and any  affected Lender shall not have promptly taken steps necessary to avoid the need for such conversion under  Subsection 4.9, the Parent Borrower, the applicable Borrower shall have the right, for so long as such obligation  remains, with the assistance of the Administrative Agent to seek one or more substitute Lenders reasonably  satisfactory to the Administrative Agent and such Borrower to purchase the affected Loan, in whole or in part, at an  aggregate price no less than such Loan’s principal amount plus accrued interest, and assume the affected obligations  under this Agreement. In the case of the substitution of a Lender, then, the Parent Borrower, any other applicable  Borrower, the Administrative Agent, the affected Lender, and any substitute Lender shall execute and deliver an  appropriately completed Assignment and Acceptance pursuant to Subsection 11.6(b) to effect the assignment of  rights to, and the assumption of obligations by, the substitute Lender; provided that any fees required to be paid by  Subsection 11.6(b) in connection with such assignment shall be paid by the Parent Borrower or the substitute Lender.  In the case of a prepayment of an affected Loan, the amount specified in the notice shall be due and payable on the  date specified therein, together with any accrued interest to such date on the amount prepaid. In the case of each of  the substitution of a Lender and of the prepayment of an affected Loan, the applicable Borrower shall first pay the  affected Lender any additional amounts owing under Subsections 4.10 and 4.11 (as well as any commitment fees  and other amounts then due and owing to such Lender, including any amounts under this Subsection 4.13) prior to  such substitution or prepayment. In the case of the substitution of a Lender pursuant to this Subsection 4.13(d) or  Subsection 4.15(c)(i), if the Lender being replaced does not execute and deliver to the Administrative Agent a duly  

 

  99  completed Assignment and Acceptance and/or any other documentation necessary to reflect such replacement by the  later of (a) the date on which the assignee Lender executes and delivers such Assignment and Acceptance and/or  such other documentation and (b) the date as of which all obligations of the Borrowers owing to such replaced  Lender relating to the Loans and participations so assigned shall be paid in full by the assignee Lender and/or the  Borrower Representative to such Lender being replaced, then the Lender being replaced shall be deemed to have  executed and delivered such Assignment and Acceptance and/or such other documentation as of such date and the  applicable Borrower shall be entitled (but not obligated) to execute and deliver such Assignment and Acceptance  and/or such other documentation on behalf of such Lender.  (e) If any Agent or any Lender receives a refund directly attributable to Taxes for which any of the  Borrowers has made additional payments pursuant to Subsection 4.10(a) or 4.11(a), such Agent or such Lender, as  the case may be, shall promptly pay such refund (together with any interest with respect thereto received from the  relevant taxing authority, but net of any reasonable cost incurred in connection therewith) to such Borrower;  provided, however, that such Borrower agrees promptly to return such refund (together with any interest with  respect thereto due to the relevant taxing authority) to such Agent or the applicable Lender, as the case may be, upon  receipt of a notice that such refund is required to be repaid to the relevant taxing authority.  Notwithstanding  anything to the contrary in this paragraph (e), in no event will any Agent of any Lender be required to pay any  amount to any Borrower pursuant to this paragraph (e) the payment of which would place such Agent or Lender in a  less favorable net after-Tax position than such Agent or Lender would have been in if the Tax subject to  indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the  indemnification payments or additional amounts with respect to such Tax had never been paid.  This paragraph shall  not be construed to require any Agent or Lender to make available its Tax returns (or related work papers and advice  prepared by outside advisors) any Borrower or to any other Person  (f) The obligations of any Agent, Lender or Participant under this Subsection 4.13 shall survive the  termination of this Agreement and the payment of the Loans and all amounts payable hereunder.  4.14 Controls on Prepayment if Aggregate Outstanding Credit Exceeds Aggregate Revolving Credit  Loan Commitments.   (a) In addition to the provisions set forth in Subsection 4.4(b), the Parent Borrower will implement  and maintain internal controls to monitor the borrowings and repayments of Loans by the Borrowers and the  issuance of and drawings under Letters of Credit, with the object of (A) preventing any request for an Extension of  Credit that would result in (i) the Aggregate Outstanding Credit with respect to all of the Revolving Credit Lenders  (including the Swingline Lender) being in excess of the aggregate Commitments then in effect or (ii) any other  circumstance under which an Extension of Credit would not be permitted pursuant to Subsection 2.1(a) and of (B)  promptly identifying any circumstance where, by reason of changes in exchange rates, the Aggregate Outstanding  Credit with respect to all of the Revolving Credit Lenders (including the Swingline Lender) exceeds the aggregate  Commitments then in effect.  (b) The Administrative Agent will calculate the Aggregate Outstanding Credit with respect to all of  (A) the Revolving Credit Lenders and (B) the Lenders (in each case, including the Swingline Lender) from time to  time, and in any event not less frequently than once during each calendar week. In making such calculations, the  Administrative Agent will rely on the information most recently received by it from the Swingline Lender in respect  of outstanding Swingline Loans and from the Issuing Lenders in respect of outstanding L/C Obligations.  4.15 Defaulting Lenders. Notwithstanding anything contained in this Agreement to the contrary, if any  Revolving Credit Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as such  Revolving Credit Lender is a Defaulting Lender:  (a) no commitment fee shall accrue for the account of a Defaulting Lender so long as such Lender  shall be a Defaulting Lender (except to the extent it is payable to the Issuing Lender pursuant to clause (d)(v) below);  

 

  100  (b) in determining the Required Lenders or Supermajority Lenders, any Lender that at the time is a  Defaulting Lender (and the Revolving Credit Loans and/or Commitment of such Defaulting Lender) shall be  excluded and disregarded;  (c) the Parent Borrower shall have the right, at its sole expense and effort, (i) to seek one or more  Persons reasonably satisfactory to the Administrative Agent and the Parent Borrower to each become a substitute  Revolving Credit Lender and assume all or part of the Commitment of any Defaulting Lender and the Parent  Borrower, the Administrative Agent and any such substitute Revolving Credit Lender shall execute and deliver, and  such Defaulting Lender shall thereupon be deemed to have executed and delivered, an appropriately completed  Assignment and Acceptance to effect such substitution or (ii) so long as no Event of Default then exists or will exist  immediately after giving effect to the respective prepayment, upon notice to the Administrative Agent, to prepay the  Loans and, at the Parent Borrower’s option, terminate the Commitments of such Defaulting Lender, in whole or in  part, without premium or penalty;  (d) if any Swingline Exposure exists or any L/C Obligations exist at the time a Revolving Credit  Lender becomes a Defaulting Lender then:  (i) all or any part of such Swingline Exposure and L/C Obligations  shall be re-allocated among the Non-Defaulting Lenders in accordance with their respective  Commitment Percentages but only to the extent the sum of all Non-Defaulting Lenders’  Revolving Exposures plus such Defaulting Lender’s Swingline Exposure and L/C Obligations  does not exceed the total of all Non-Defaulting Lenders’ Commitments;  (ii) if the reallocation described in clause (i) above cannot, or can  only partially, be effected, the Borrowers shall within one Business Day following notice by the  Administrative Agent (x) first, prepay such Defaulting Lender’s Swingline Exposure and (y)  second, cash collateralize such Defaulting Lender’s L/C Obligations (after giving effect to any  partial reallocation pursuant to clause (i) above) on terms reasonably satisfactory to the  Administrative Agent for so long as such L/C Obligations are outstanding;  (iii) if any portion of such Defaulting Lender’s L/C Obligations is  cash collateralized pursuant to clause (ii) above, the Borrowers shall not be required to pay the  L/C Fee for participation with respect to such portion of such Defaulting Lender’s L/C Exposure  so long as it is cash collateralized;  (iv) if any portion of such Defaulting Lender’s L/C Obligations is  reallocated to the Non-Defaulting Lenders pursuant to clause (i) above, then the letter of credit  commission with respect to such portion shall be allocated among the Non-Defaulting Lenders in  accordance with their Commitment Percentages; or  (v) if any portion of such Defaulting Lender’s L/C Obligations is  neither cash collateralized nor reallocated pursuant to this Subsection 4.15(d), then, without  prejudice to any rights or remedies of the Issuing Lender or any Revolving Credit Lender  hereunder, the commitment fee that otherwise would have been payable to such Defaulting  Lender (with respect to the portion of such Defaulting Lender’s Commitment that was utilized by  such L/C Obligations) and the letter of credit commission payable with respect to such  Defaulting Lender’s L/C Obligations shall be payable to the Issuing Lender until such L/C  Obligations are cash collateralized and/or reallocated;  (e) so long as any Lender is a Defaulting Lender, the Swingline Lender shall not be required to fund  any Swingline Loan and the Issuing Lender shall not be required to issue, amend or increase any Letter of Credit,  unless they are respectively satisfied that the related exposure will be 100% covered by the Commitments of the  Non-Defaulting Lenders and/or cash collateralized on terms reasonably satisfactory to the Administrative Agent,  and participations in any such newly issued or increased Letter of Credit or newly made Swingline Loan shall be  

 

  101  allocated among Non-Defaulting Lenders in accordance with their respective Commitment Percentages (and  Defaulting Lenders shall not participate therein);  (f) any amount payable to such Defaulting Lender hereunder (whether on account of principal,  interest, fees or otherwise and including any amount that would otherwise be payable to such Defaulting Lender  pursuant to Subsection 11.7) may, in lieu of being distributed to such Defaulting Lender, be retained by the  Administrative Agent in a segregated non-interest bearing account and, subject to any applicable Requirements of  Law, be applied at such time or times as may be determined by the Administrative Agent (i) first, to the payment of  any amounts owing by such Defaulting Lender to the Administrative Agent hereunder, (ii) second, pro rata, to the  payment of any amounts owing by such Defaulting Lender to the Issuing Lender or Swingline Lender hereunder, to  the extent the portion of a Letter of Credit Disbursement was required to be, but was not, paid by such Defaulting  Lender, (iii) third, to the funding of any Loan or the funding or cash collateralization of any participation in any  Swingline Loan or Letter of Credit 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, (iv) fourth, if so determined by the  Administrative Agent and the Parent Borrower, held in such account as cash collateral for future funding obligations  of such Defaulting Lender under this Agreement, (v) fifth, pro rata, to the payment of any amounts owing to the  Borrowers or the Lenders as a result of any judgment of a court of competent jurisdiction obtained by Borrower or  any Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under  this Agreement and (vi) sixth, to such Defaulting Lender or as otherwise directed by a court of competent  jurisdiction; provided that if such payment is (x) a prepayment of the principal amount of any Loans or  Reimbursement Obligations in respect of L/C Disbursements in respect of which a Defaulting Lender has funded its  participation obligations and (y) made at a time when the conditions set forth in Subsection 6.2 are satisfied, such  payment shall be applied solely to prepay the Loans of, and Reimbursement Obligations owed to, all Non- Defaulting Lenders pro rata prior to being applied to the prepayment of any Loans, or Reimbursement Obligations  owed to, any Defaulting Lender; and  (g) In the event that the Administrative Agent, the Borrower Representative, each applicable Issuing  Lender or the Swingline Lender, as the case may be, each agrees that a Defaulting Lender has adequately remedied  all matters that caused such Lender to be a Defaulting Lender, then the Swingline Exposure and L/C Obligations of  the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment and on such date such Lender  shall purchase at par such of the Loans of the other Lenders as the Administrative Agent shall determine may be  necessary in order for such Lender to hold such Loans in accordance with its Commitment Percentage. The rights  and remedies against a Defaulting Lender under this Subsection 4.15 are in addition to other rights and remedies that  the Borrowers, the Administrative Agent, the Issuing Lenders, the Swingline Lender and the Non-Defaulting  Lenders may have against such Defaulting Lender. The arrangements permitted or required by this Subsection 4.15  shall be permitted under this Agreement, notwithstanding any limitation on Liens or the pro rata sharing provisions  or otherwise.  (h) Additionally, Issuing Lender shall have no obligation to issue or extend a 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 Issuing Lender from issuing such Letter of Credit, or any law applicable to Issuing Lender or any request or  directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over Issuing  Lender shall prohibit or request that Issuing Lender refrain from the issuance of letters of credit generally or such  Letter of Credit in particular, (B) the issuance of such Letter of Credit would violate one or more policies of Issuing  Lender applicable to letters of credit generally, or (C) if amounts demanded to be paid under any Letter of Credit  will not or may not be in United States Dollars (or any Designated Foreign Currency in which such Letter of Credit  was originally issued).  4.16 Cash Management.   (a) Annexed hereto as Schedule 4.16(a), as the same may be modified from time to time by notice to  the Administrative Agent, is a schedule of all DDAs and Concentration Accounts that are maintained by the Loan  Parties, which schedule includes, with respect to each depository (i) the name and address of such depository; (ii)  the account number(s) (and account name(s) of such account(s)) maintained with such depository; and (iii) a contact  person at such depository.  

 

  102  (b) Except as otherwise agreed by the Administrative Agent, each Loan Party shall (i) within 120 days  after the Closing Date, establish and maintain their DDAs and Concentration Accounts with Wells Fargo, one of its  affiliates or another bank reasonably acceptable to the Administrative Agent, (ii) deliver to the Administrative Agent  notifications executed on behalf of each such Loan Party to each depository institution with which any DDA (other  than Excluded Accounts) is maintained, in form reasonably satisfactory to the Administrative Agent of the  Administrative Agent’s interest in such DDA, (iii) instruct each depository institution for a DDA (other than  Excluded Accounts) in excess of the Target Amount (individually or in the aggregate with all other DDAs) and  available at the close of each Business Day in such DDA to be swept to one of the Loan Parties’ Concentration  Accounts no less frequently than on a daily basis, such instructions to be irrevocable unless otherwise agreed to by  the Administrative Agent, (iv) enter into a blocked account agreement (each, a “Blocked Account Agreement”), in  form reasonably satisfactory to the Administrative Agent, with the Administrative Agent or the Collateral Agent and  any bank with which such Loan Party maintains a Concentration Account into which the DDAs (other than  Excluded Accounts) are swept (each such account of a Loan Party that is a Borrower or a Subsidiary Guarantor, a  “Blocked Account” and collectively, the “Blocked Accounts”), covering each such Concentration Account  maintained with such bank, and (v) within 180 days of the Closing Date, (A) instruct all Account Debtors of such  Loan Party that remit payments of Accounts of such Account Debtor regularly by check pursuant to arrangements  with such Loan Party to remit all such payments to the applicable “P.O. Boxes” or “Lockbox Addresses” with  respect to the applicable DDA or Concentration Account, which remittances shall be collected by the applicable  bank and deposited in the applicable DDA or Concentration Account or (B) cause the checks of any such Account  Debtors to be deposited in the applicable DDA or Concentration Account within two Business Days after such check  is received by such Loan Party. All amounts received by Ultimate Parent or any of its Domestic Subsidiaries that is a  Loan Party in respect of any Account, in addition to all other cash received from any other source, shall upon receipt  of such amount or cash (other than any such amount (i) to be deposited in Excluded Accounts or (ii) cash excluded  from the Collateral pursuant to any Security Document) be deposited into a DDA (other than an Excluded Account)  or Concentration Account. Each Loan Party agrees that it will not cause proceeds of such DDAs (other than  Excluded Accounts) to be otherwise redirected.  (c) Each Blocked Account Agreement shall require, after the occurrence and during the continuance  of an Event of Default or a Dominion Event, the ACH or wire transfer no less frequently than once per Business  Day (unless the Commitments have been terminated and the monetary obligations hereunder then due and owing  and under the other Loan Documents have been paid in full and all Letters of Credit have either been terminated or  expired (unless cash collateralized or otherwise provided for in a manner reasonably satisfactory to the  Administrative Agent)), of all available cash balances and cash receipts, including the then contents or then entire  ledger balance of each Blocked Account net of such minimum balance (not to exceed $1,500,000 per account or  $5,000,000 in the aggregate), if any, required by the bank at which such Blocked Account is maintained to an  account maintained by the Administrative Agent at Wells Fargo (or any of its affiliates or another bank of  recognized standing reasonably selected by the Administrative Agent with the reasonable consent of the Parent  Borrower) (the “Core Concentration Account”). Each Loan Party agrees that it will not cause proceeds of any  Blocked Account to be otherwise redirected.  (d) In the event that there is a Dominion Event but an Event of Default has not occurred and been  continuing, all collected amounts received in the Core Concentration Account shall be distributed and applied on a  daily basis in the following order (in each case, to the extent the Administrative Agent has actual knowledge of the  amounts owing or outstanding as described below and after giving effect to the application of any such amounts  constituting proceeds from any Collateral otherwise required to be applied pursuant to the terms of the respective  Security Document or the Intermediator Agreement):  (1) first, to the payment (on a ratable basis) of any outstanding  expenses actually due and payable to the Administrative Agent, the Collateral Agent, under any of the Loan  Documents and to repay or prepay outstanding Revolving Credit Loans advanced by the Administrative Agent; (2)  second, to the extent all amounts referred to in preceding clause (1) have been paid in full, to pay (on a ratable basis)  all outstanding expenses actually due and payable to each Issuing Lender under any of the Loan Documents and to  repay all outstanding Unpaid Drawings and all interest thereon; (3) third, to the extent all amounts referred to in  preceding clauses (1) and (2) have been paid in full, to pay (on a ratable basis) all accrued and unpaid interest  actually due and payable on the Revolving Credit Loans and all accrued and unpaid Fees actually due and payable to  the Administrative Agent the Issuing Lenders and the Lenders under any of the Loan Documents; (4) fourth, to the  extent all amounts referred to in preceding clauses (1) through (3), inclusive, have been paid in full, to repay (on a  

 

  103  ratable basis) the outstanding principal of Revolving Credit Loans (whether or not then due and payable); (5) fifth, to  the extent all amounts referred to in preceding clauses (1) through (4), inclusive, have been paid in full, to pay (on a  ratable basis) all outstanding obligations of the Borrowers then due and payable to the Administrative Agent, the  Collateral Agent, and the Lenders under this Agreement; and (6) sixth, to the extent all amounts referred to in  preceding clauses (1) through (5), inclusive, have been paid in full, to pay (on a ratable basis) all other outstanding  obligations of the Borrowers then due and payable to the Administrative Agent, the Collateral Agent, and the  Lenders under any of the Loan Documents. This Subsection 4.16(d) may be amended (and the Lenders hereby  irrevocably authorize the Administrative Agent to enter into such amendments) to the extent necessary to reflect  differing amounts payable, and priorities of payments, to Lenders participating in any new classes or tranches of  loans added pursuant to Subsections 2.6, 2.7 and 2.8, as applicable, in accordance with Subsection 11.1(d).  In the  event there is a Dominion Event and an Event of Default has occurred and been continuing, all collected amounts  received in the Core Concentration Account shall be distributed and applied on a daily basis as contemplated by  Subsection 10.15.  (e) If, at any time after the occurrence and during the continuance of an Event of Default or a  Dominion Event as to which the Administrative Agent has notified the Borrower Representative, any cash, Cash  Equivalents or Temporary Cash Investments owned by any Loan Party (other than (i) de minimis cash, Cash  Equivalents or Temporary Cash Investments from time to time inadvertently misapplied by any Loan Party, (ii) cash  and Cash Equivalents deposited or to be deposited in an Excluded Account and (iii) cash, Cash Equivalents or  Temporary Cash Investments that are (or are in any account that is) excluded from the Collateral pursuant to any  Security Document, including Excluded Assets and (iv) cash, Cash Equivalents or Temporary Cash Investments in  the Asset Sales Proceeds Account (as defined in the Intercreditor Agreement, if any) are deposited to any account, or  held or invested in any manner, otherwise than in a Blocked Account subject to a Blocked Account Agreement (or a  DDA which is swept daily to such Blocked Account), the Administrative Agent shall be entitled to require the  applicable Loan Party to close such account and have all funds therein transferred to a Blocked Account, and to  cause all future deposits to be made to a Blocked Account.  (f) The Borrowers and Subsidiary Guarantors, respectively, may close DDAs or Concentration  Accounts and/or open new DDAs or new Concentration Accounts, subject to, in the case of any new Concentration  Account, (i) the contemporaneous execution and delivery to the Administrative Agent of a Blocked Account  Agreement consistent with the provisions of this Subsection 4.16 with respect to each such new Concentration  Account or (ii) other arrangements reasonably satisfactory to the Administrative Agent.  (g) The Core Concentration Account shall at all times be under the sole dominion and control of the  Administrative Agent. Each Loan Party hereby acknowledges and agrees that, except to the extent otherwise  provided in the Guarantee and Collateral Agreement or the Intercreditor Agreement (x) such Loan Party has no right  of withdrawal from the Core Concentration Account, (y) the funds on deposit in the Core Concentration Account  shall at all times continue to be collateral security for all of the Obligations of the Loan Parties hereunder and under  the other Loan Documents, and (z) the funds on deposit in the Core Concentration Account shall be applied as  provided in this Agreement and the Intercreditor Agreement. In the event that, notwithstanding the provisions of this  Subsection 4.16, any Loan Party receives or otherwise has dominion and control of any proceeds or collections  required to be transferred to the Core Concentration Account pursuant to Subsection 4.16(c), such proceeds and  collections shall be held in trust by such Loan Party for the Administrative Agent, shall not be commingled with any  of such Loan Party’s other funds or deposited in any account of such Loan Party (other than any bank account by  which such Borrower or Subsidiary Guarantor received or acquired dominion or control over such proceeds and  collections or with any funds in such bank account) and shall promptly be deposited into the Core Concentration  Account or dealt with in such other fashion as such Loan Party may be instructed by the Administrative Agent.  (h) So long as (x) no Event of Default has occurred and is continuing or (y) no Dominion Event has  occurred and is continuing, the Loan Parties may direct, and shall have sole control over, the manner of disposition  of funds in the Blocked Accounts.  (i) Any amounts held or received in the Core Concentration Account (including all interest and other  earnings with respect hereto, if any) at any time (x) when all of the monetary obligations due and owing hereunder  and under the other Loan Documents have been satisfied or (y) all Events of Default and Dominion Events have  

 

  104  been cured or waived, shall (subject in the case of clause (x) to the provisions of the Intercreditor Agreement), be  remitted to the operating bank account of the applicable Borrower.  (j) Notwithstanding anything herein to the contrary, the Loan Parties shall be deemed to be in  compliance with the requirements set forth in this Subsection 4.16 during the initial sixty (60) day period  commencing on the Closing Date to the extent that the arrangements described above are established and effective  not later than the date that is 60 days following the Closing Date or such later date as the Administrative Agent, in  its sole discretion, may agree.  (k) In the event that a Loan Party acquires new demand deposit accounts or new concentration  accounts in connection with an acquisition, the Parent Borrower will procure that such Loan Party shall within sixty  (60) days of the date of such acquisition (or such longer period as may be agreed by the Administrative Agent) cause  such new demand deposit accounts or new concentration accounts to comply with the applicable requirements of  Subsection 4.16(b) (including, with respect to any new concentration account, by entering into a Blocked Account  Agreement) or shall enter into other arrangements consistent with the provisions of this Subsection 4.16 and  otherwise reasonably satisfactory to the Administrative Agent with respect to such new or acquired concentration  accounts or DDAs.  SECTION 5 Representations and Warranties  To induce the Administrative Agent and each Lender to make the Extensions of Credit requested to be  made by it on the Closing Date and on each Borrowing Date thereafter, each of Ultimate Parent and the Parent  Borrower with respect to itself and its respective Restricted Subsidiaries, hereby represents and warrants, on the  Closing Date, in each case after giving effect to the Transactions (solely to the extent required to be true and correct  for such Extension of Credit pursuant to Subsection 6.1), and on every Borrowing Date thereafter on which an  Extension of Credit is made (solely to the extent required to be true and correct for such Extension of Credit  pursuant to Subsection 6.2) to the Administrative Agent and each Lender that:  5.1 Financial Condition.   (a) The audited consolidated balance sheets of Holdings as of September 30, 2019, September 30,  2018 and September 30, 2017 and the consolidated statements of income, parent company equity and cash flows for  the Fiscal Years ended September 30, 2019, September 30, 2018 and September 30, 2017, reported on by and  accompanied by unqualified reports from Deloitte & Touche LLP, present fairly, in all material respects, the  consolidated financial condition as at such date, and the consolidated statements of operations and consolidated cash  flows for the respective Fiscal Years then ended, of the Business. All such financial statements, including the related  schedules and notes thereto, have been prepared in accordance with GAAP consistently applied throughout the  periods covered thereby (except as approved by a Responsible Officer, and disclosed in any such schedules and  notes, and subject to the omission of footnotes from such unaudited financial statements). During the period from  September 30, 2019 to and including the Closing Date, except as permitted under this Agreement, there has been no  sale, transfer or other disposition by the Business of any material part of its business or property and no purchase or  other acquisition by the Business of any business or property (including any Capital Stock of any other Person)  material in relation to the consolidated financial condition of the Business, taken as a whole, in each case, which is  not reflected in the foregoing financial statements or in the notes thereto and has not otherwise been disclosed in  writing to the Lenders on or prior to the Closing Date.  (b) Except as set forth in the financial statements referred to in Subsection 5.1(a), there are no  liabilities of any Loan Party of any kind, whether accrued, contingent, absolute, determined, determinable or  otherwise, which could reasonably be expected to result in a Material Adverse Effect.  (c) The Projections have been prepared by management of Ultimate Parent in good faith based upon  assumptions believed by management to be reasonable at the time of preparation thereof (it being understood that  such Projections, and the assumptions on which they were based, may or may not prove to be correct).  As of the  Closing Date, the information included in the Beneficial Ownership Certification is true and correct in all respects.  

 

  105  5.2 No Change; Solvent. Since September 30, 2019, except as and to the extent disclosed on Schedule  5.2, there has been no development or event relating to or affecting any Loan Party which has had or would be  reasonably expected to have a Material Adverse Effect (after giving effect to (i) the consummation of the  Transactions, (ii) the making of the Extensions of Credit to be made on the Closing Date and the application of the  proceeds thereof as contemplated hereby, and (iii) the payment of actual or estimated fees, expenses, financing costs  and tax payments related to the transactions contemplated hereby). Since September 30, 2019, except as otherwise  permitted under this Agreement and each other Loan Document, no dividends or other distributions have been  declared, paid or made upon the Capital Stock of the Parent Borrower, nor has any of the Capital Stock of the Parent  Borrower been redeemed, retired, purchased or otherwise acquired for value by the Parent Borrower or any of its  Restricted Subsidiaries. After giving effect to the execution and delivery of this Agreement and the borrowing of  any Revolving Credit Loans or other extensions of credit hereunder on the Closing Date (if any) or on any other date  this representation is required to be made pursuant to this Agreement (on a pro forma basis giving effect to the  transactions that required this representation to be made), the Parent Borrower and its Restricted Subsidiaries, on a  consolidated basis, are Solvent.  5.3 Corporate Existence; Compliance with Law. Each of the Loan Parties (a) is duly organized,  validly existing and (to the extent applicable in the relevant jurisdiction) in good standing under the laws of the  jurisdiction of its incorporation or formation, except (other than with respect to any Borrower), to the extent that the  failure to be in good standing would not reasonably be expected to have a Material Adverse Effect, (b) has the  corporate or other organizational power and authority, and the legal right, to own and operate its property, to lease  the property it operates as lessee and to conduct the business in which it is currently engaged, except to the extent  that the failure to have such legal right would not be reasonably expected to have a Material Adverse Effect, (c) is  duly qualified as a foreign corporation or limited liability company and (to the extent applicable in the relevant  jurisdiction) in good standing under the laws of each jurisdiction where its ownership, lease or operation of property  or the conduct of its business requires such qualification, other than in such jurisdictions where the failure to be so  qualified and (to the extent applicable) in good standing would not be reasonably expected to have a Material  Adverse Effect and (d) is in compliance with all Requirements of Law, except to the extent that the failure to comply  therewith would not, in the aggregate, be reasonably expected to have a Material Adverse Effect.  5.4 Corporate Power; Authorization; Enforceable Obligations. Each Loan Party has the corporate or  other organizational power and authority, and the legal right, to make, deliver and perform the Loan Documents to  which it is a party and, in the case of each of the Borrowers, to obtain Extensions of Credit hereunder, and each such  Loan Party has taken all necessary corporate or other organizational action to authorize the execution, delivery and  performance of the Loan Documents to which it is a party and, in the case of each of the Borrowers, to authorize the  Extensions of Credit to it, if any, on the terms and conditions of this Agreement, any Notes and the L/C Requests.  No consent or authorization of, filing with, notice to or other similar act by or in respect of, any Governmental  Authority or any other Person is required to be obtained or made by or on behalf of any Loan Party in connection  with the execution, delivery, performance, validity or enforceability of the Loan Documents to which it is a party or,  in the case of each of the Borrowers, with the Extensions of Credit to it, if any, hereunder, except for (a) consents,  authorizations, notices and filings described in Schedule 5.4, all of which have been obtained or made prior to the  Closing Date, (b) filings to perfect the Liens created by the Security Documents, and (c) consents, authorizations,  notices and filings in connection with the Assignment of Claims Act of 1940, as amended (31 U.S.C. § 3727 et seq.)  or the Financial Administration Act (Canada), as applicable, in respect of Contracts (as defined in the applicable  Guarantee and Collateral Agreement), Accounts (as defined in the applicable Guarantee and Collateral Agreement)  or receivables of Holdings, the Parent Borrower and its Restricted Subsidiaries the obligor in respect of which is the  United States of America or Canada, or, in each case, any department, agency or instrumentality thereof and (d)  consents, authorizations, notices and filings which the failure to obtain or make would not reasonably be expected to  have a Material Adverse Effect. This Agreement has been duly executed and delivered by Ultimate Parent and each  Borrower, and each other Loan Document to which any Loan Party is a party will be duly executed and delivered on  behalf of such Loan Party. This Agreement constitutes a legal, valid and binding obligation of Ultimate Parent and  each of the Borrowers and each other Loan Document to which any Loan Party is a party when executed and  delivered will constitute a legal, valid and binding obligation of such Loan Party, enforceable against such Loan  Party in accordance with its terms, except as enforceability may be limited by applicable domestic or foreign  bankruptcy, insolvency, reorganization, moratorium, arrangement or similar laws affecting the enforcement of  

 

  106  creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in  equity or at law).  5.5 No Legal Bar. The execution, delivery and performance of the Loan Documents by any of the  Loan Parties, the Extensions of Credit hereunder and the use of the proceeds thereof (a) will not violate any  Requirement of Law or Contractual Obligation of such Loan Party in any respect that would reasonably be expected  to have a Material Adverse Effect and (b) will not result in, or require the creation or imposition of any Lien (other  than Liens securing the Obligations or otherwise permitted under this Agreement) on any of its properties or  revenues pursuant to any such Requirement of Law or Contractual Obligation.  5.6 No Material Litigation. No litigation, investigation or proceeding of or before any arbitrator or  Governmental Authority is pending or, to the knowledge of Ultimate Parent and the Parent Borrower, threatened by  or against Ultimate Parent or any of its Restricted Subsidiaries or against any of their respective properties or  revenues, (a) except as described on Schedule 5.6, which is so pending or threatened at any time on or prior to the  Closing Date and relates to any of the Loan Documents or any of the transactions contemplated hereby or thereby or  (b) which would be reasonably expected to have a Material Adverse Effect.  5.7 No Default. Neither Ultimate Parent nor any of its Restricted Subsidiaries is in default under or  with respect to any of its Contractual Obligations in any respect which would be reasonably expected to have a  Material Adverse Effect. Since the Closing Date, no Default or Event of Default has occurred and is continuing.  5.8 Ownership of Property; Liens. Each of Ultimate Parent and its Restricted Subsidiaries has good  title in fee simple to, or a valid leasehold interest in, all its material real property located in the United States of  America and Canada, and good title to, or a valid leasehold interest in, all its other material property located in the  United States of America and Canada, except those for which the failure to have such good title or such leasehold  interest would not be reasonably expected to have a Material Adverse Effect, and none of such real or other property  is subject to any Lien, except for Permitted Liens.   5.9 Intellectual Property. Ultimate Parent and each of its Restricted Subsidiaries owns beneficially, or  has the legal right to use, all United States and foreign patents, patent applications, trademarks, trademark  applications, trade names, copyrights, and rights in know-how and processes necessary for each of them to conduct  its business as currently conducted (the “Intellectual Property”) except for those the failure to own or have such  legal right to use would not be reasonably expected to have a Material Adverse Effect. Except as provided on  Schedule 5.9, no claim has been asserted and is pending by any Person against Ultimate Parent or any of its  Restricted Subsidiaries challenging or questioning the use of any such Intellectual Property or the validity or  effectiveness of any such Intellectual Property, nor does Ultimate Parent or the Parent Borrower know of any such  claim, and, to the knowledge of Ultimate Parent and the Parent Borrower, the use of such Intellectual Property by  Ultimate Parent and its Restricted Subsidiaries does not infringe on the rights of any Person, except for such claims  and infringements which in the aggregate, would not be reasonably expected to have a Material Adverse Effect.  5.10 [Reserved].  5.11 Taxes. To the knowledge of Ultimate Parent and the Parent Borrower, (1) each of Ultimate Parent,  Holdings, the Parent Borrower and its Restricted Subsidiaries has filed or caused to be filed all material tax returns  which are required to be filed by it and has paid (a) all Taxes shown to be due and payable on such returns and (b)  all Taxes shown to be due and payable on any assessments of which it has received notice made against it or any of  its property and all other Taxes imposed on it or any of its property by any Governmental Authority; and (2) no Tax  Liens have been filed (except for Liens for Taxes not yet due and payable), and no claim is being asserted in writing,  with respect to any such Taxes (in each case under the preceding clauses (1) and (2) other than in respect of any  such (i) Taxes with respect to which the failure to pay, in the aggregate, would not have a Material Adverse Effect or  (ii) Taxes the amount or validity of which are currently being contested in good faith by appropriate proceedings  diligently conducted and with respect to which reserves in conformity with GAAP have been provided on the books  of Ultimate Parent, Holdings, the Parent Borrower or its Restricted Subsidiaries, as the case may be).  

 

  107  5.12 Federal Regulations. No part of the proceeds of any Extensions of Credit will be used for any  purpose which violates the provisions of the Regulations of the Board, including without limitation, Regulation T,  Regulation U or Regulation X of the Board. If requested by any Lender or the Administrative Agent, the Parent  Borrower will furnish to the Administrative Agent and each Lender a statement to the foregoing effect in conformity  with the requirements of FR Form G-3 or FR Form U-1, referred to in said Regulation U.  Neither any Loan Party  nor any of its Subsidiaries owns any Margin Stock (other than a de minimis amount) or is engaged principally, or as  one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any  Margin Stock.  5.13 ERISA; Canadian Pension Plans.   (a) During the five year period prior to each date as of which this representation is made, or deemed  made, with respect to any Plan, none of the following events or conditions, either individually or in the aggregate,  has resulted or is reasonably likely to result in a Material Adverse Effect:  (i) a Reportable Event; (ii) an  “accumulated deficiency” (within the meaning of Section 412 of the Code or Section 302 of ERISA); (iii) any  noncompliance with the applicable provisions of ERISA or the Code; (iv) a termination of a Single Employer Plan  (other than a standard termination pursuant to Section 4041(b) of ERISA); (v) a Lien on the property of the Parent  Borrower or its Restricted Subsidiaries in favor of the PBGC or a Plan; (vi) a complete or partial withdrawal from  any Multiemployer Plan by the Parent Borrower or any Commonly Controlled Entity; (vii) the Insolvency of any  Multiemployer Plan; (viii) any transaction that resulted or could reasonably be expected to result in any liability to  the Parent Borrower or any Commonly Controlled Entity under Section 4069 of ERISA or Section 4212(c) of  ERISA.  (b) With respect to any Foreign Plan, none of the following events or conditions exists and is  continuing that, either individually or in the aggregate, would reasonably be expected to have a Material Adverse  Effect:  (i) substantial non-compliance with its terms and with the requirements of any and all applicable laws,  statutes, rules, regulations and orders; (ii) failure to be maintained, where required, in good standing with applicable  regulatory authorities; (iii) any obligation of Ultimate Parent or its Restricted Subsidiaries in connection with the  termination or partial termination of, or withdrawal from, any Foreign Plan; (iv) any Lien on the property of  Ultimate Parent or its Restricted Subsidiaries in favor of a Governmental Authority as a result of any action or  inaction regarding a Foreign Plan; (v) for each Foreign Plan which is a funded or insured plan, failure to be funded  or insured on an ongoing basis to the extent required by applicable non-U.S. law (using actuarial methods and  assumptions which are consistent with the valuations last filed with the applicable Governmental Authorities, if  applicable); (vi) any facts that, to the best knowledge of each of Ultimate Parent and the Parent Borrower or any of  its Restricted Subsidiaries, exist that would reasonably be expected to give rise to a dispute and any pending or  threatened disputes that, to the best knowledge of each of Ultimate Parent and the Parent Borrower or any of its  Restricted Subsidiaries, would reasonably be expected to result in a material liability to Ultimate Parent or any of its  Restricted Subsidiaries concerning the assets of any Foreign Plan (other than individual claims for the payment of  benefits); and (vii) failure to make all contributions in a timely manner to the extent required by applicable non-U.S.  law.  (c) As of the Closing Date, Schedule 5.13(c) lists all Canadian Pension Plans maintained or  contributed to by each Loan Party. As of the Closing Date, none of the Canadian Pension Plans is a Canadian MEPP  or a Canadian Defined Benefit Pension Plan. Except to the extent that any failure to do so would not reasonably be  expected to have a Material Adverse Effect: (i) the Canadian Pension Plans are duly registered under the Income  Tax Act (Canada) (if such registration is required) and under all other applicable laws which require registration and  no event has occurred which would reasonably be expected to cause the loss of such registered status (ii) all  obligations of each of the Loan Parties (including fiduciary, funding, investment and administration obligations)  required to be performed in connection with the Canadian Pension Plans and the funding agreements therefor have  been performed on a timely basis and in compliance with the terms of such plans and agreements, any applicable  collective bargaining agreement and all laws; (iii) all employer and employee payments, contributions or premiums  to be remitted, paid to or in respect of each Canadian Pension Plan have been paid or remitted in a timely fashion in  accordance with the terms thereof, any funding agreement and all applicable laws; (iv) there are no outstanding  disputes concerning the assets of the Canadian Pension Plans; and (v) there have been no improper withdrawals or  applications of the assets of the Canadian Pension Plans. No promises of benefit improvements under the Canadian  

 

  108  Pension Plans have been made by the Loan Parties except where such improvement would not reasonably be  expected to have a Material Adverse Effect. As of the Closing Date, no Canadian Pension Termination Event has  occurred.  5.14 Collateral. Upon execution and delivery thereof by the parties thereto, each Guarantee and  Collateral Agreement will be effective to create (to the extent described therein) in favor of the Collateral Agent for  the ratable benefit of the Secured Parties, a legal, valid and enforceable security interest in or liens on the Collateral  described therein, except as to enforcement, as may be limited by applicable domestic or foreign bankruptcy,  insolvency, fraudulent conveyance, reorganization, moratorium, arrangement and other similar laws relating to or  affecting creditors’ rights’ generally, general equitable principles (whether considered in a proceeding in equity or at  law) and an implied covenant of good faith and fair dealing. When (a) the actions specified in Schedule 3 to the  applicable Guarantee and Collateral Agreement have been completed, (b) all applicable Instruments, Chattel Paper  and Documents (each as described therein) constituting Collateral a security interest in which is perfected by  possession have been delivered to, and/or are in the continued possession of, the Collateral Agent and (c) all Deposit  Accounts and Pledged Stock (each as defined in the applicable Guarantee and Collateral Agreement) a security  interest in which is required to be or is perfected by “control” (as described in the Uniform Commercial Code as in  effect in the State of New York from time to time or, to the extent applicable, the applicable Canadian securities  transfer legislation) are under the “control” of the Collateral Agent or the Administrative Agent, as agent for the  Collateral Agent and as directed by the Collateral Agent, the security interests and liens granted pursuant to the  Guarantee and Collateral Agreement shall constitute (to the extent described therein) a perfected security interest in  (to the extent intended to be created thereby and required to be perfected under the Loan Documents), all right, title  and interest of each pledgor party thereto in the Collateral described therein (excluding Commercial Tort Claims, as  defined in the applicable Guarantee and Collateral Agreement, other than such Commercial Tort Claims set forth on  Schedule 7 thereto (if any)) with respect to such pledgor. Notwithstanding any other provision of this Agreement,  capitalized terms that are used in this Subsection 5.14 and not defined in this Agreement are so used as defined in  the applicable Security Document.  5.15 Investment Company Act; Other Regulations. None of the Borrowers is an “investment company”,  or a company “controlled” by an “investment company”, within the meaning of the Investment Company Act. None  of the Borrowers is subject to regulation under any Federal or State statute or regulation (other than Regulation X of  the Board) which limits its ability to incur Indebtedness as contemplated hereby.  5.16 Subsidiaries. Schedule 5.16 sets forth all the Subsidiaries of Holdings at the First Amendment  Effective Date (after giving effect to the Transactions), the jurisdiction of their organization and the direct or indirect  ownership interest of Holdings therein.  5.17 Purpose of Loans. The proceeds of Revolving Credit Loans and Swingline Loans shall be used by  the Borrowers to (i) effect the Transactions, including the payments of fees, costs and expenses relating thereto and  (ii) finance the working capital, capital expenditures and other general corporate purposes of the Parent Borrower  and its Subsidiaries.  5.18 Environmental Matters. Other than as disclosed on Schedule 5.18 or exceptions to any of the  following that would not, individually or in the aggregate, reasonably be expected to give rise to a Material Adverse  Effect:  (a) Ultimate Parent and its Restricted Subsidiaries:  (i) are, and within the period of all applicable  statutes of limitation have been, in compliance with all applicable Environmental Laws; (ii) hold all Environmental  Permits (each of which is in full force and effect) required for any of their current operations or for any property  owned, leased, or otherwise operated by any of them and reasonably expect to timely obtain without material  expense all such Environmental Permits required for planned operations; (iii) are, and within the period of all  applicable statutes of limitation have been, in compliance with all of their Environmental Permits; and (iv) believe  they will be able to maintain compliance with Environmental Laws, including any reasonably foreseeable future  requirements thereto.  

 

  109  (b) Materials of Environmental Concern have not been transported, disposed of, emitted, discharged,  or otherwise released or threatened to be released, to or at any real property presently or formerly owned, leased or  operated by Ultimate Parent or any of its Restricted Subsidiaries or at any other location, which would reasonably be  expected to (i) give rise to liability or other Environmental Costs of Ultimate Parent or any of its Restricted  Subsidiaries under any applicable Environmental Law, or (ii) interfere with the planned or continued operations of  Ultimate Parent and its Restricted Subsidiaries, or (iii) impair the fair saleable value of any real property owned by  Ultimate Parent or any of its Restricted Subsidiaries that is part of the Collateral.  (c) There is no judicial, administrative, or arbitral proceeding (including any notice of violation or  alleged violation) under any Environmental Law to which Ultimate Parent or any of its Restricted Subsidiaries is, or  to the knowledge of Ultimate Parent, the Parent Borrower or any of its Restricted Subsidiaries is reasonably likely to  be, named as a party that is pending or, to the knowledge of Ultimate Parent, the Parent Borrower or any of its  Restricted Subsidiaries, threatened.  (d) Neither Ultimate Parent nor any of its Restricted Subsidiaries has received any written request for  information, or been notified that it is a potentially responsible party, under the federal Comprehensive  Environmental Response, Compensation, and Liability Act or any similar Environmental Law, or received any other  written request for information from any Governmental Authority with respect to any Materials of Environmental  Concern.  (e) Neither Ultimate Parent nor any of its Restricted Subsidiaries has entered into or agreed to any  consent decree, order, or settlement or other agreement, nor is subject to any judgment, decree, or order or other  agreement, in any judicial, administrative, arbitral, or other forum, relating to compliance with or liability under any  Environmental Law.  5.19 No Material Misstatements. The written information (including the Confidential Information  Memorandum), reports, financial statements, exhibits and schedules furnished by or on behalf of the Parent  Borrower to the Administrative Agent, the Other Representatives and the Lenders on or prior to the Closing Date in  connection with the negotiation of any Loan Document or included therein or delivered pursuant thereto, taken as a  whole, did not contain as of the Closing Date any material misstatement of fact and did not omit to state as of the  Closing Date any material fact necessary to make the statements therein, in the light of the circumstances under  which they were made, not materially misleading in their presentation of Ultimate Parent and its Restricted  Subsidiaries taken as a whole. It is understood that (a) no representation or warranty is made concerning the  forecasts, estimates, pro forma information, projections and statements as to anticipated future performance or  conditions, and the assumptions on which they were based or concerning any information of a general economic  nature or general information about the Parent Borrower’s and its Subsidiaries’ industry, contained in any such  information, reports, financial statements, exhibits or schedules, except that, in the case of such forecasts, estimates,  pro forma information, projections and statements, as of the date such forecasts, estimates, pro forma information,  projections and statements were generated, (i) such forecasts, estimates, pro forma information, projections and  statements were based on the good faith assumptions of the management of the Parent Borrower and (ii) such  assumptions were believed by such management to be reasonable and (b) such forecasts, estimates, pro forma  information and statements, and the assumptions on which they were based, may or may not prove to be correct.  5.20 [Reserved].  5.21 Labor Matters. There are no strikes pending or, to the knowledge of Ultimate Parent or the Parent  Borrower, reasonably expected to be commenced against Ultimate Parent or any of its Restricted Subsidiaries which,  individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. The hours worked  and payments made to employees of Ultimate Parent and each of its Restricted Subsidiaries have not been in  violation of any applicable laws, rules or regulations, except where such violations would not reasonably be  expected to have a Material Adverse Effect.  5.22 Insurance. Schedule 5.22 sets forth a complete and correct listing as of the date that is two  Business Days prior to the Closing Date of all insurance that is (a) maintained by the Loan Parties (other than  

 

  110  Holdings) and (b) material to the business and operations of Ultimate Parent and its Restricted Subsidiaries taken as  a whole, with the amounts insured (and any deductibles) set forth therein.  5.23 Eligible Accounts. As of the date of any Borrowing Base Certificate, all Accounts included in the  calculation of Eligible Accounts on such Borrowing Base Certificate satisfy all requirements of an “Eligible  Account” hereunder.  5.24 Eligible Inventory. As of the date of any Borrowing Base Certificate, the Inventory included in the  calculation of Eligible Inventory on such Borrowing Base Certificate satisfy in all material respects the requirements  of an “Eligible Inventory” hereunder.  5.25 OFAC; Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws. No Loan Party nor any  of its Subsidiaries nor, to the knowledge of such Loan Party, any director, officer, employee, agent or Affiliate of  such Loan Party or such Subsidiary (a) is a Sanctioned Person, (b) has any assets located in any Sanctioned Country,  in violation of Sanctions, or (c) derives revenues from investments in, or transactions with Sanctioned Persons or in  Sanctioned Countries, in violation of Sanctions.  Each of the Loan Parties and its Subsidiaries has implemented and  maintains in effect policies and procedures reasonably designed to ensure compliance with all applicable Sanctions,  Anti-Corruption Laws and Anti-Money Laundering Laws.  Each of the Loan Parties and its Subsidiaries, and to the  knowledge of each such Loan Party, each director, officer, employee, agent and Affiliate of each such Loan Party  and each such Subsidiary, is in compliance with all applicable Sanctions, Anti-Corruption Laws and Anti-Money  Laundering Laws in all material respects.  No proceeds of any Loan made or Letter of Credit issued hereunder will  be used to fund any operations in, finance any investments or activities in, or make any payments to, a Sanctioned  Person or a Person in a Sanctioned Country in violation of Sanctions, or otherwise used in any manner that would  result in a violation of any Sanctions, Anti-Corruption Law or Anti-Money Laundering Law by any Person  (including any Lender, Cash Management Party or other individual or entity participating in any transaction).   Notwithstanding the foregoing, nothing herein shall require any Loan Party organized under the laws of Canada or a  subdivision thereof or any of their Subsidiaries which are organized or incorporated under the law of Canada or any  subdivision thereof (each such party, a “Canadian Party”), to take action or refrain from taking any action, to the  extent such provisions would otherwise contravene, or require any notification to the Attorney General of Canada  under the Foreign Extraterritorial Measures (United States) Order, 1992, by any such Canadian Party and this  Subsection 5.25, Subsection 7.11 and Subsection 7.15 shall be limited and interpreted accordingly.  SECTION 6 Conditions Precedent  6.1 Conditions to Initial Extension of Credit. The entry into this Agreement by the parties hereto shall  become effective on the date on which the following conditions precedent shall have been satisfied or waived,  provided, however, that the conditions set forth in this Subsection 6.1, if not satisfied or waived on the date of this  Agreement, shall be deemed to have been satisfied for all purposes hereunder:  (a) Loan Documents. The Administrative Agent shall have received (or, in the case of Holdings, shall  receive substantially concurrently with the satisfaction of the other conditions precedent set forth in this Subsection  6.1) the following Loan Documents, executed and delivered as required below:  (i) this Agreement, executed and delivered by a duly authorized  officer of each Borrower;   (ii) the U.S. Guarantee and Collateral Agreement, executed and  delivered by a duly authorized officer of each Loan Party required to be a signatory thereto;  (iii) the Canadian Guarantee and Collateral Agreement, executed  and delivered by a duly authorized officer of each Loan Party required to be a signatory thereto;  (iv) the Fee Letter, executed and delivered by a duly authorized  officer of each Borrower;  

 

  111  (v) the Agency Resignation and Appointment Agreement, executed  and delivered by a duly authorized officer of each Loan Party required to be a signatory thereto;  and  (vi) the Assignment and Acceptances, executed and delivered by  the parties thereto, pursuant to which certain of the lenders under the Existing Credit Agreement  assign to certain parties that will be Lenders their Commitments and Obligations under and as  defined in the Existing Credit Agreement, as more fully set forth therein.  (b) Existing Credit Facility Transactions. The Existing Credit Facility Transactions shall be  consummated substantially concurrently with the initial Extension of Credit to be made on the Closing Date.  (c) [Reserved].  (d) Financial Information. The Committed Lenders shall have received (i) audited financial statements  of Holdings for the three Fiscal Years ended September 30, 2019, September 30, 2018 and September 30, 2017, in  each case, certified by the Parent Borrower’s independent registered public accountants and (ii) unaudited  consolidated financial statements for Holdings for each subsequent fiscal quarter after September 30, 2019 ended at  least 45 days prior to the Closing Date.  (e) Lien Searches.  The Administrative Agent shall have received the results of a search by a Person  reasonably satisfactory to the Administrative Agent, of the UCC, judgment and tax lien filings which have been filed  with respect to personal property of the Loan Parties in any of the jurisdictions set forth in Schedule 6.1(f), and the  results of such search shall not reveal any liens other than Permitted Liens.  (f) Legal Opinions. The Administrative Agent shall have received the following executed legal  opinions, each in form and substance reasonably satisfactory to the Administrative Agent:  (i) executed legal opinion of Debevoise & Plimpton LLP, counsel  to each of the Borrowers and the other Loan Parties;  (ii) executed legal opinion of Richards, Layton & Finger, P.A.,  special Delaware counsel to certain of the Loan Parties;  (iii) executed legal opinion of Holland & Hart LLP, special Nevada  counsel to certain of the Loan Parties; and  (iv) executed legal opinion of McMillan LLP, special Ontario  counsel to certain of the Loan Parties.  (g) Officer’s Certificate. The Administrative Agent shall have received a certificate from the Parent  Borrower, dated the Closing Date, substantially in the form of Exhibit H hereto.  (h) Perfected Liens. The Collateral Agent shall have obtained a valid security interest in the Collateral  covered by the applicable Guarantee and Collateral Agreement (to the extent and with the priority contemplated  therein and the Intercreditor Agreement); and all documents, instruments, filings and recordations reasonably  necessary in connection with the perfection and, in the case of the filings with the United States Patent and  Trademark Office, the United States Copyright Office and the Canadian Intellectual Property Office, protection of  such security interests shall have been executed and delivered or made, or, in the case of UCC or PPSA filings,  written authorization to make such UCC or PPSA filings shall have been delivered to the Collateral Agent, and none  of such Collateral shall be subject to any other pledges, security interests or mortgages except for Permitted Liens or  pledges or security interests to be released on the Closing Date substantially concurrently with the effectiveness of  this Agreement.  

 

  112  (i) [Reserved].  (j) [Reserved].  (k) Fees. The Lead Arrangers and the Agents and the Lenders, respectively, shall have received all  fees and expenses related to the Transactions payable to them to the extent due (which may be offset against the  proceeds of the Facilities), including without limitation, the reasonable and documented out-of-pocket fees, costs  and expenses required to be paid on the Closing Date pursuant to the Engagement Letter.  (l) Secretary’s Certificate. The Administrative Agent shall have received a certificate from each of  the Borrowers and each other Loan Party, dated the Closing Date, substantially in the form of Exhibit G hereto, with  appropriate insertions and attachments of resolutions or other actions, in form and substance reasonably satisfactory  to the Administrative Agent, evidence of incumbency and the signature of authorized signatories and Organizational  Documents, executed by a Responsible Officer and the Secretary or any Assistant Secretary or other authorized  representative of such Loan Party.  (m) [Reserved].  (n) [Reserved].  (o) [Reserved].  (p) Insurance. The Parent Borrower shall have used reasonable best efforts to cause the  Administrative Agent to have been named as additional insured with respect to liability policies and the Collateral  Agent to have been named as lender loss payee with respect to the property insurance maintained by each Borrower  and the Subsidiary Guarantors; provided that if the Administrative Agent shall not have been named as additional  insured with respect to liability policies and the Collateral Agent shall not have been named as lender loss payee  with respect to such property insurance after the Parent Borrower’s commercially reasonable efforts to do so, then  such naming the Administrative Agent and Collateral as such shall not constitute a condition precedent to the initial  Extension of Credit hereunder if the Parent Borrower agrees to so name the Administrative Agent and Collateral  Agent as such pursuant to arrangements to be mutually agreed by the Parent Borrower and the Administrative Agent  acting reasonably.  (q) No Material Adverse Effect. Since September 30, 2019, there shall not have been any event,  development or state of circumstances that has had or would reasonably be expected to have, individually or in the  aggregate, a Material Adverse Effect; provided that, solely with respect to this clause (q), events, developments or  states of circumstances relating to the Loan Parties arising directly from COVID-19 shall not constitute a “Material  Adverse Effect” so long as (A) no such event, development or state of circumstances impacts the business of the  Loan Parties to a greater extent than (i) any such event, development or state of circumstances did on or prior to the  Closing Date or (ii) comparable businesses in the industry in which the Loan Parties operate and (B) such event,  development or circumstance is disclosed in writing to the Administrative Agent or otherwise publicly disclosed in  filings made by Holdings or the Parent Borrower with the United States Securities and Exchange Commission, in  each case, at least one Business Day prior to the Closing Date.  (r) [Reserved].  (s) [Reserved].  (t) Solvency. The Administrative Agent shall have received a certificate of the chief financial officer  of the Parent Borrower certifying the Solvency, after giving effect to the Transactions, of the Parent Borrower and  its Restricted Subsidiaries on a consolidated basis in substantially the form of Exhibit I hereto.  

 

  113  (u) Available Loan Commitments. After giving effect to any borrowing on the Closing Date, the  amount of Available Loan Commitments (determined for this purpose only without giving effect to any L/C  Obligation) shall equal or exceed $150,000,000.  (v) [Reserved].  (w) Appraisal. The Administrative Agent shall have received (i) appraisal valuations of the ABL  Priority Collateral of the Loan Parties and (ii) the results of a completed field examination with respect to the ABL  Priority Collateral to be included in calculating the Borrowing Base and of the relevant accounting systems, policies  and procedures of the Parent Borrower and its Restricted Subsidiaries, in each case reasonably satisfactory to the  Administrative Agent.  The Administrative Agent confirms receipt of all items required pursuant to this clause (w).  (x) [Reserved].  (y) Patriot Act. The Administrative Agent and the Committed Lenders shall have received at least  three days prior to the Closing Date all documentation and other information about the Loan Parties required by  regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations,  including without limitation the Patriot Act that has been requested in writing at least five days prior to the Closing  Date.  (z) Representations and Warranties. Each of the representations and warranties made by any Loan  Party pursuant to this Agreement or any other Loan Document (or in any amendment, modification or supplement  hereto or thereto) to which it is a party, and each of the representations and warranties contained in any certificate  furnished at any time by or on behalf of any Loan Party pursuant to this Agreement or any other Loan Document  shall be true and correct in all material respects on and as of such date as if made on and as of such date (except to  the extent any such representation or warranty relates to an earlier date, in which case such representations and  warranties shall have been true and correct in all material respects as of such earlier date).  (aa) Borrowing Notice or L/C Request. With respect to the initial Extensions of Credit, the  Administrative Agent shall have received a notice of such Borrowing as required by Subsection 2.2 or 2.4, as  applicable (or such notice shall have been deemed given in accordance with Subsection 2.2 or 2.4, as applicable).  With respect to the issuance of any Letter of Credit, the applicable Issuing Lender shall have received a L/C Request,  completed to its satisfaction, and such other certificates, documents and other papers and information as such  Issuing Lender may reasonably request.  The making of the initial Extensions of Credit by the Lenders hereunder shall conclusively be deemed to  constitute an acknowledgement by the Administrative Agent and each Lender that each of the conditions precedent  set forth in this Subsection 6.1 shall have been satisfied in accordance with its respective terms or shall have been  irrevocably waived by such Person.  6.2 Conditions to Each Extension of Credit After the Closing Date. The agreement of each Lender to  make any Extension of Credit requested to be made by it on any date after the Closing Date (including each  Swingline Loan made after the Closing Date) is subject to the satisfaction or waiver of the following conditions  precedent:  (a) Representations and Warranties. (i) In the case of any Extension of Credit other than an Extension  of Credit made in connection with a Limited Condition Transaction, each of the representations and warranties made  by any Loan Party pursuant to this Agreement or any other Loan Document (or in any amendment, modification or  supplement hereto or thereto) to which it is a party, and each of the representations and warranties contained in any  certificate furnished at any time by or on behalf of any Loan Party pursuant to this Agreement or any other Loan  Document shall, except to the extent that they relate to a particular date, be true and correct in all material respects  on and as of such date as if made on and as of such date and (ii) in the case of any Extension of Credit made in  connection with a Limited Condition Transaction, the Specified Representations shall, except to the extent they  

 

  114  relate to a particular date, be true and correct in all material respects on and as of such date as if made on and as of  such date.  (b) No Default. No Default or Event of Default shall have occurred and be continuing on such date or  after giving effect to the Extensions of Credit requested to be made on such date.  (c) Borrowing Notice or L/C Request. With respect to any Borrowing, the Administrative Agent shall  have received a notice of such Borrowing as required by Subsection 2.2 or 2.4, as applicable (or such notice shall  have been deemed given in accordance with Subsection 2.2 or 2.4, as applicable). With respect to the issuance of  any Letter of Credit, the applicable Issuing Lender shall have received a L/C Request, completed to its satisfaction,  and such other certificates, documents and other papers and information as such Issuing Lender may reasonably  request.  Each borrowing of Loans by and each Letter of Credit issued on behalf of any of the Borrowers hereunder  shall constitute a representation and warranty by the Parent Borrower as of the date of such borrowing or such  issuance that the conditions contained in this Subsection 6.2 have been satisfied (excluding, for the avoidance of  doubt, the initial Extensions of Credit hereunder).  SECTION 7 Affirmative Covenants  Each of Ultimate Parent and the Parent Borrower hereby agrees that, from and after the Closing Date and  so long as the Commitments remain in effect, and thereafter until payment in full of the Loans, all Reimbursement  Obligations and all other Obligations then due and owing to any Lender or any Agent hereunder and termination or  expiration of all Letters of Credit (unless cash collateralized or otherwise provided for in a manner reasonably  satisfactory to the Administrative Agent), each of Ultimate Parent and the Parent Borrower shall and (except in the  case of delivery of financial information, reports and notices) shall cause each of its respective Restricted  Subsidiaries to:  7.1 Financial Statements. Furnish to the Administrative Agent for delivery to each Lender (and the  Administrative Agent agrees to make and so deliver such copies):  (a) as soon as available, but in any event not later than the fifth Business Day after the 90th day  following the end of each Fiscal Year of Ultimate Parent ending on or after the Closing Date (or such longer period  as would be permitted by the United States Securities and Exchange Commission if Ultimate Parent (or any Parent  Entity whose financial statements satisfy Ultimate Parent’s reporting obligations under this Subsection 7.1(a)) were  then subject to United States Securities and Exchange Commission reporting requirements as a non-accelerated  filer), a copy of the consolidated balance sheet of Ultimate Parent as at the end of such year and the related  consolidated statements of operations, comprehensive income (loss), shareholders’ equity and cash flows for such  year, setting forth, in each case, in comparative form the figures for and as of the end of the previous year, reported  on without a “going concern” or like qualification or exception, or qualification arising out of the scope of the audit  (provided that such report may contain a “going concern” or like qualification or exception, or qualification arising  out of the scope of the audit, if such qualification or exception arises solely with respect to or results solely from (i)  an upcoming Stated Maturity hereunder or an upcoming “maturity date” under the any Indebtedness Incurred in  compliance with this Agreement, (ii) any potential or actual inability to satisfy any financial maintenance covenant  included in any Indebtedness of Ultimate Parent or its Subsidiaries, or (iii) the activities, operations, financial results,  assets or liabilities of any Unrestricted Subsidiary, by Deloitte & Touche LLP or other independent certified public  accountants of nationally recognized standing reasonably acceptable to the Administrative Agent in its reasonable  discretion (it being agreed that (x) any “Big 4” accounting firm, BDO, RSC and Grant Thornton shall be deemed  acceptable to the Administrative Agent and (y) the furnishing of (x) the Parent Borrower’s or any Parent Entity’s  annual report on Form 10-K for such year, as filed with the United States Securities and Exchange Commission or  (y) the financial statements of any Parent Entity that would satisfy the requirements for inclusion in a Form 10-K,  will, in each case satisfy the obligation under this Subsection 7.1(a) with respect to such year, including with respect  to the requirement that such financial statements be reported on without a “going concern” or like qualification or  exception, or qualification arising out of the scope of the audit, so long as the report included in such Form 10-K or  accompanying such financial statements, as applicable, does not contain any “going concern” or like qualification or  

 

  115  exception (other than a “going concern” or like qualification or exception with respect to (i) an upcoming Stated  Maturity hereunder or an upcoming “maturity date” under any Indebtedness Incurred in compliance with this  Agreement, (ii) any potential or actual inability to satisfy any financial maintenance covenant included in any  Indebtedness of the Parent Borrower or its Subsidiaries, or (iii) the activities, operations, financial results, assets or  liabilities of any Unrestricted Subsidiary;  (b) as soon as available, but in any event not later than the fifth Business Day after the 45th day  following the end of each of the first three quarterly periods of each Fiscal Year of Ultimate Parent (or such longer  period as would be permitted by the United States Securities and Exchange Commission if Ultimate Parent (or any  Parent Entity whose financial statements satisfy Holdings’ reporting obligations under this Subsection 7.1(b)) were  then subject to United States Securities and Exchange Commission reporting requirements as a non-accelerated  filer), the unaudited consolidated balance sheet of Ultimate Parent as at the end of such quarter and the related  unaudited consolidated statements of operations, comprehensive income (loss), shareholders’ equity and cash flows  of Ultimate Parent for such quarter and the portion of the Fiscal Year through the end of such quarter, setting forth  in comparative form the figures for and as of the corresponding periods of the previous year, in each case certified  by a Responsible Officer of the Parent Borrower as being fairly stated in all material respects (subject to normal  year-end audit and other adjustments) (it being agreed that the furnishing of (x) the Parent Borrower’s or any Parent  Entity’s quarterly report on Form 10-Q for such quarter, as filed with the United States Securities and Exchange  Commission, or (y) the financial statements of any Parent Entity that would satisfy the requirements for inclusion in  a Form 10-Q, will, in each case, satisfy the obligations under this Subsection 7.1(b) with respect to such quarter;   (c) to the extent applicable, concurrently with any delivery of consolidated financial statements  referred to in Subsections 7.1(a) and 7.1(b) above, related unaudited condensed consolidating financial statements  and appropriate reconciliations reflecting the material adjustments necessary (as determined by the Parent Borrower  in good faith) to eliminate the accounts of Unrestricted Subsidiaries (if any) from such consolidated financial  statements; and  (d) all such financial statements delivered pursuant to Subsection 7.1(a) or (b) to (and, in the case of  any financial statements delivered pursuant to Subsection 7.1(b) shall be certified by a Responsible Officer of  Ultimate Parent to) fairly present in all material respects the financial condition of Ultimate Parent and, if applicable  the applicable Parent Entity and, its Subsidiaries in conformity with GAAP and to be (and, in the case of any  financial statements delivered pursuant to Subsection 7.1(b) shall be certified by a Responsible Officer of Ultimate  Parent as being) in reasonable detail and prepared in accordance with GAAP applied consistently throughout the  periods reflected therein and with prior periods that began on or after the Closing Date (except as approved by such  accountants or officer, as the case may be, and disclosed therein, and except, in the case of any financial statements  delivered pursuant to Subsection 7.1(b), for the absence of certain notes).  7.2 Certificates; Other Information. Furnish to the Administrative Agent for delivery to each Lender  (and the Administrative Agent agrees to make and so deliver such copies):  (a) The Parent Borrower (i) will deliver to the Administrative Agent each of the reports set forth on  Schedule 7.2(a) at the times specified therein, and (ii) agrees to use commercially reasonable efforts in cooperation  with the Administrative Agent to facilitate and implement a system of electronic collateral reporting in order to  provide electronic reporting of each of the items set forth on such Schedule;  (b) concurrently with the delivery of the financial statements and reports referred to in Subsections  7.1(a) and 7.1(b), a certificate signed by a Responsible Officer of the Borrower Representative in substantially the  form of Exhibit Q or such other form as may be agreed between the Borrower Representative and the Administrative  Agent (a “Compliance Certificate”) (i) stating that, to the best of such Responsible Officer’s knowledge, each of  Ultimate Parent, Holdings, the Parent Borrower and its Restricted Subsidiaries during such period has observed or  performed all of its covenants and other agreements, and satisfied every condition, contained in this Agreement or  the other Loan Documents to which it is a party to be observed, performed or satisfied by it, and that such  Responsible Officer has obtained no knowledge of any Default or Event of Default, except, in each case, as  specified in such certificate, and (ii) setting forth a reasonably detailed calculation of the Consolidated Fixed Charge  Coverage Ratio for the applicable four fiscal quarter period (whether or not a Liquidity Event has occurred and is  

 

  116  continuing) and, if applicable, demonstrating compliance with Subsection 8.1 (in the case of a certificate furnished  with the financial statements referred to in Subsections 7.1(a) and 7.1(b));  (c) within five (5) Business Days after the same are filed, copies of all registration statements and any  amendments and exhibits thereto, which Ultimate Parent may file with the SEC or any successor or analogous  Governmental Authority, and such other documents or instruments as may be reasonably requested by the  Administrative Agent in connection therewith;  (d) within five Business Days after the same are sent, copies of all financial statements and reports  which Ultimate Parent sends to its public security holders, and within five Business Days after the same are filed,  copies of all financial statements and periodic reports which Holdings or the Parent Borrower may file with the  United States Securities and Exchange Commission or any successor or analogous Governmental Authority;  (e) promptly upon reasonable request from the Administrative Agent, calculations of EBITDA and  other Fixed GAAP Terms as reasonably requested by the Administrative Agent promptly following receipt of a  written notice from the Parent Borrower electing to change the Fixed GAAP Date, which calculations shall show the  calculations of the respective Fixed GAAP Terms both before and after giving effect to the change in the Fixed  GAAP Date and identify the material change(s) in GAAP giving rise to the change in such calculations; and  (f) not later than 5:00 P.M., New York City time, on or before the fourteenth Business Day of each  Fiscal Quarter of the Parent Borrower (or (i) more frequently as the Parent Borrower may elect, so long as the same  frequency of delivery is maintained by the Parent Borrower for the immediately following 90 day period, (ii) not  later than 5:00 P.M., New York City time, on or before the fourteenth Business Day of each Fiscal Period, if at any  time any of (A) (x) the Aggregate Lender Exposure is greater than $65,000,000 or (y) the aggregate Available Loan  Commitment is less than $200,000,000, and continuing until such time as no condition in clause (x) or (y) above  exists for a period of 30 consecutive days or (B) if (1) the Parent Borrower has a corporate credit rating of B1 or  below from Moody’s, (2) the Parent Borrower has a corporate credit rating of B+ or below from S&P and (3) any  Revolving Credit Loan is outstanding (provided that the requirement to deliver monthly Borrowing Base Certificates  shall revert to quarterly Borrowing Base Certificates at such time as no condition in clause (1), (2) or (3) above  exists for a period of 30 consecutive days), (iii) not later than 5:00 P.M., New York City time, on or before  Wednesday of each week during any period (a) commencing on the date on which (x) a Dominion Event has  occurred, (y) a Specified Default has occurred or (z) the Parent Borrower has failed to deliver any financial  statements required by Subsection 7.1(a) and (b) ending on the first date thereafter on which such Dominion Event  has ended or such Specified Default has been cured), a borrowing base certificate setting forth the Borrowing Base  (with supporting calculations) substantially in the form of Exhibit K hereto (each, a “Borrowing Base Certificate”),  which shall be prepared as of the last Business Day of the preceding Fiscal Quarter of the Parent Borrower (or (x)  such other applicable date to be agreed by the Parent Borrower and the Administrative Agent in the case of clause (i)  or (ii) above or (y) the previous Friday in the case of clause (iii) above) in the case of each subsequent Borrowing  Base Certificate; provided that a revised Borrowing Base Certificate based on the Borrowing Base Certificate most  recently delivered shall be delivered within five Business Days after (1) the occurrence of a Recovery Event, (2) the  consummation of a sale or other transfer of ABL Priority Collateral (in a transaction or series of related transactions)  not in the ordinary course of business (including, without limitation, in connection with a Receivables Facility) or  any bulk sale of Inventory, in each case with an aggregate value in excess of $10,000,000, (3) in connection with a  Vendor Financing Arrangement excluded from the definition of “Indebtedness” pursuant to the second proviso  therein or (4) any merger, consolidation or disposition pursuant to clause (2) of the last proviso of each of  Subsection 8.2(a) or 8.2(b), as applicable, giving pro forma effect to such Recovery Event, such sale or bulk sale or  such merger, consolidation or disposition, unless, in the case of clauses (1), (2) or (3) the pro forma effect of such  event was already reflected on such Borrowing Base Certificate last delivered. Each such Borrowing Base  Certificate shall include such supporting information as may be reasonably requested from time to time by the  Administrative Agent;   (g) as soon as available, but in any event not later than the fifth Business Day following the 90th day  after the beginning of each Fiscal Year of the Parent Borrower, a copy of the annual business plan by the Parent  Borrower of the projected operating budget (including an annual consolidated balance sheet, income statement and  statement of cash flows of the Parent Borrower and its Restricted Subsidiaries for each fiscal quarter of such Fiscal  

 

  117  Year prepared in reasonable detail), each such business plan to be accompanied by a certificate signed by a  Responsible Officer of the Parent Borrower to the effect that such Responsible Officer believes such projections to  have been prepared on the basis of reasonable assumptions at the time of preparation and delivery thereof;  (h) promptly (but in no event later than five Business Days thereafter), notice of any disposition of  Eligible Accounts or Eligible Inventory (including, without limitation, pursuant to a Special Purpose Financing (as  defined in the Term Loan Credit Agreement), a Sale and Leaseback Transaction or transactions related to a  Receivables Facility), which notice shall include the amount attributable to such assets in the most recently delivered  Borrowing Base Certificate, as determined in good faith by the Parent Borrower; provided that such notice shall be  delivered to the Administrative Agent at least three Business Days prior to the consummation of any Special  Purpose Financing or Receivables Facility involving Eligible Accounts or Eligible Inventory in excess of  $10,000,000 (in any transaction or series of related transactions) in the aggregate; and  (i) promptly, such additional financial and other information as any Agent or the Required Lenders  through the Administrative Agent may from time to time reasonably request.  Documents required to be delivered pursuant to Subsection 7.1 or 7.2 may at the Parent Borrower’s option be  delivered electronically and, if so delivered, shall be deemed to have been delivered on the date (A) in the case of  any such documents other than documents required to be delivered pursuant to Subsection 7.2(f) (i) on which the  Parent Borrower posts such documents on the Parent Borrower’s (or any Parent Entity’s) website on the Internet at  the website address listed on Schedule 7.2(b) (or such other website address as the Parent Borrower may specify by  written notice to the Administrative Agent from time to time) and provides a link thereto (accompanied by any  further information necessary to access such documents) to the Administrative Agent, or (ii) on which such  documents are posted on the Parent Borrower’s (or any Parent Entity’s) behalf on an Internet or intranet website to  which each Lender and the Administrative Agent have access (whether a commercial, third-party website (including  any website maintained by the Securities and Exchange Commission) or whether sponsored by the Administrative  Agent) and provides a link thereto (accompanied by any further information necessary to access such documents) to  the Administrative Agent, and (B) in the case of any such documents required to be delivered pursuant to Subsection  7.2(f), on which the Parent Borrower provides a link thereto (accompanied by any further information necessary to  access such documents) to the Administrative Agent on the Parent Borrower’s (or any Parent Entity’s) website on  the Internet at the website address listed on Schedule 7.2(b) (or such other website address as the Parent Borrower  may specify by written notice to the Administrative Agent from time to time). Following the electronic delivery of  any such documents by posting such documents to a website and providing the necessary information in accordance  with the preceding sentence (other than the posting by the Parent Borrower of any such documents on any website  maintained for or sponsored by the Administrative Agent), the Parent Borrower shall promptly provide the  Administrative Agent notice of such delivery (which notice may be by facsimile or electronic mail) and the  electronic location at which such documents may be accessed; provided that, in the absence of bad faith, the failure  to provide such prompt notice shall not constitute a Default hereunder.  7.3 Payment of Obligations. Pay, discharge or otherwise satisfy at or before maturity or before they  become delinquent, as the case may be, all its material obligations, including Taxes, except where the amount or  validity thereof is currently being contested in good faith by appropriate proceedings diligently conducted and  reserves in conformity with GAAP with respect thereto have been provided on the books of Ultimate Parent or any  of its Restricted Subsidiaries, as the case may be, or except to the extent that failure to do so, in the aggregate, would  not reasonably be expected to have a Material Adverse Effect.  7.4 Conduct of Business and Maintenance of Existence. Preserve, renew and keep in full force and  effect its existence and take all reasonable action to maintain all rights, privileges and franchises necessary or  desirable in the normal conduct of the business of the Parent Borrower and its Restricted Subsidiaries, taken as a  whole, except as otherwise permitted pursuant to Subsection 8.2 or 8.5, provided that Ultimate Parent and its  Restricted Subsidiaries shall not be required to maintain any such rights, privileges or franchises and the Parent  Borrower’s Restricted Subsidiaries shall not be required to maintain such existence, if the failure to do so would not  reasonably be expected to have a Material Adverse Effect; Ultimate Parent  will, and will cause each of its  Subsidiaries to, comply with all laws, rules, regulations and orders of any Governmental Authority applicable to it or  its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to  

 

  118  result in a Material Adverse Effect.  Ultimate Parent will maintain in effect and enforce policies and procedures  designed to ensure compliance by Ultimate Parent, its Subsidiaries and their respective directors, officers,  employees and agents in Anti-Corruption Laws and applicable Sanctions.  7.5 Maintenance of Property; Insurance. (i) Keep all property necessary in the business of Ultimate  Parent and its Restricted Subsidiaries, taken as a whole, in good working order and condition, except where failure  to do so would not reasonably be expected to have a Material Adverse Effect; (ii) maintain with financially sound  and reputable insurance companies (or any Captive Insurance Subsidiary) insurance on, or self insure, all property  material to the business of Ultimate Parent and its Restricted Subsidiaries, taken as a whole, in at least such amounts  and against at least such risks (but including in any event public liability, product liability and business interruption)  as are usually insured against in the same general area by companies engaged in the same or a similar business; (iii)  furnish to the Administrative Agent, upon written request, information in reasonable detail as to the insurance  carried; (iv) maintain property and liability policies that provide that in the event of any material change in the  policy, or any cancellation thereof during the term of the policy, either by the insured or by the insurance company,  the insurance company shall provide to the secured party at least thirty (30) days prior written notice thereof, or in  the case of cancellation for non-payment of premium, ten (10) days prior written notice thereof; and (v) ensure that  at all times, subject to the Intercreditor Agreement and Subsection 6.1(p) hereof, the Collateral Agent for the benefit  of the Secured Parties, shall be named as an additional insured with respect to liability policies and the Collateral  Agent for the benefit of the Secured Parties, shall be named as lender loss payee with respect to the property  insurance maintained by each Borrower and each Subsidiary Guarantor; provided that, unless an Event of Default or  a Dominion Event shall have occurred and be continuing, (A) the Collateral Agent shall turn over to the Parent  Borrower any amounts received by it as lender loss payee under any property insurance maintained by the Parent  Borrower and its Restricted Subsidiaries, (B) the Collateral Agent agrees that the Parent Borrower and/or the  applicable Subsidiary Guarantor shall have the sole right to adjust or settle any claims under such insurance and (C)  all proceeds from a Recovery Event shall be paid to the Parent Borrower.  7.6 Inspection of Property; Books and Records; Discussions.   (a) (i) In the case of the Parent Borrower, keep proper books and records in a manner to allow  financial statements to be prepared in conformity with GAAP consistently applied in respect of all material financial  transactions and matters involving the material assets and business of Ultimate Parent and its Restricted Subsidiaries,  taken as a whole; and (ii) permit representatives of the Administrative Agent to visit and inspect any of its properties  and examine and, to the extent reasonable, make abstracts from any of its books and records and to discuss the  business, operations, properties and financial and other condition of Ultimate Parent and its Restricted Subsidiaries  with officers and employees of Ultimate Parent and its Restricted Subsidiaries and with its independent certified  public accountants, in each case at any reasonable time, upon reasonable notice; provided that (a) except during the  continuation of an Event of Default, only one such visit per year shall be at the Parent Borrower’s expense, and (b)  during the continuation of an Event of Default, the Administrative Agent or its representatives may do any of the  foregoing at the Parent Borrower’s expense and provided, further, representatives of the Borrower Representative  may be present during any such visits, discussions and inspections. Each Borrower shall keep records of its  Inventory in a manner to allow the Borrowing Base Certificate to be prepared in accordance with this Agreement.  Notwithstanding anything to the contrary in Subsection 7.2(f) or in this Subsection 7.6, none of Ultimate Parent or  any Restricted Subsidiary will be required to disclose, or permit the inspection or discussion of, any document,  information or other matter (i) in respect of which disclosure to the Administrative Agent or the Lenders (or their  respective representatives) is prohibited by Law or any binding agreement or (ii) that is subject to attorney-client or  similar privilege or constitutes attorney work product. Each Borrower shall, at Borrowers’ expense, conduct a  physical inventory of its Inventory no less frequently than annually or shall have in place a cycle counting (or  perpetual verification) program designed to verify the physical existence of Inventory in a manner that results in the  verification of substantially the entire amount of the Inventory over the course of a year and shall provide to the  Agents a report based on each such physical inventory or program promptly after such physical inventory or after  the applicable program year, as applicable, together with such supporting information as the Administrative Agent  shall reasonably request. The Administrative Agent may participate in and observe any such physical inventory or  cycle counting, which participation shall be at the Borrowers’ expense regardless of whether an Event of Default  then exists.  

 

  119  (b) At reasonable times during normal business hours and upon reasonable prior notice that the  Administrative Agent requests, independently of or in connection with the visits and inspections provided for in  clause (a) above, Ultimate Parent and its Restricted Subsidiaries will grant access to the Administrative Agent  (including employees of the Administrative Agent or any consultants, accountants, lawyers and appraisers retained  by the Administrative Agent) to such Person’s premises, books, records, accounts and Inventory so that (i) the  Administrative Agent or an appraiser retained by the Administrative Agent may conduct an Inventory appraisal and  (ii) the Administrative Agent may conduct (or engage third parties to conduct) such field examinations, verifications  and evaluations (including environmental assessments) as the Administrative Agent may deem necessary or  appropriate. Unless an Event of Default exists, or if previously approved by the Parent Borrower, no environmental  assessment by the Administrative Agent may include any sampling or testing of the soil, surface water or  groundwater. All such appraisals, field examinations and other verifications and evaluations shall be at the sole  expense of the Loan Parties; provided that (i) absent the existence and continuation of an Event of Default, the  Administrative Agent may conduct at the expense of the Loan Parties no more than one such appraisal for the  calendar year unless a Dominion Event has occurred and is continuing or during any period commencing when 30- Day Specified Availability is less than the greater of (x) $44,000,000 and (y) 20% of Availability at such time  (based on the Borrowing Base Certificate last delivered) (the “Increased Monitoring Threshold”) for 90 consecutive  days and ending when 30-Day Specified Availability exceeds the Increased Monitoring Threshold for 30  consecutive days, in which cases, the Administrative Agent may conduct one additional appraisal at the expense of  the Loan Parties during such calendar year and (ii) absent the existence and continuation of an Event of Default, the  Administrative Agent may conduct at the expense of the Loan Parties no more than one such field examination in  any calendar year unless a Dominion Event has occurred and is continuing or during any period commencing when  30-Day Specified Availability is less than the greater of (x) $44,000,000 and (y) 20.0% of Availability at such time  (based on the Borrowing Base Certificate last delivered) for 90 consecutive days and ending when 30-Day Specified  Availability exceeds the Increased Monitoring Threshold for 30 consecutive days, in which cases the Administrative  Agent may conduct one additional field examination at the expense of the Loan Parties during such calendar year.  All amounts chargeable to the applicable Borrowers under this Subsection 7.6(b) shall constitute obligations that are  secured by all of the applicable Collateral and shall be payable to the Agents hereunder.  7.7 Notices. Promptly give notice to the Administrative Agent and each Lender of:  (a) as soon as possible after a Responsible Officer of the Parent Borrower knows thereof, the  occurrence of any Default or Event of Default;  (b) as soon as possible after a Responsible Officer of the Parent Borrower knows thereof, (i) any  default or event of default under any Contractual Obligation of Ultimate Parent or any of its Restricted Subsidiaries,  other than as previously disclosed in writing to the Lenders, or (ii) litigation, investigation or proceeding which may  exist at any time between Ultimate Parent or any of its Restricted Subsidiaries and any Governmental Authority,  which in either case, if not cured or if adversely determined, as the case may be, would reasonably be expected to  have a Material Adverse Effect;  (c) as soon as possible after a Responsible Officer of the Parent Borrower knows thereof, the  occurrence of any default or event of default under the Term Loan Credit Agreement or any Additional Obligations  Documents in each case relating to Indebtedness in an aggregate principal amount equal to or greater than  $25,000,000;  (d) as soon as possible after a Responsible Officer of the Parent Borrower knows thereof, any  litigation or proceeding affecting the Parent Borrower or any of its Restricted Subsidiaries that would reasonably be  expected to have a Material Adverse Effect;  (e) the following events, as soon as possible and in any event within 30 days after a Responsible  Officer of the Parent Borrower or any of its Restricted Subsidiaries knows thereof:  (i) the occurrence or expected  occurrence of any Reportable Event (or similar event) with respect to any Single Employer Plan (or Foreign Plan) or  Canadian Pension Termination Event, a failure to make any required contribution to a Single Employer Plan,  Multiemployer Plan or Foreign Plan, the creation of any Lien on the property of Ultimate Parent or its Restricted  

 

  120  Subsidiaries in favor of the PBGC, a Plan or a Foreign Plan or any withdrawal from, or the full or partial termination,  Insolvency of, any Multiemployer Plan or Foreign Plan; (ii) the institution of proceedings or the taking of any other  formal action by the PBGC or Ultimate Parent or any of its Restricted Subsidiaries or any Commonly Controlled  Entity or any Multiemployer Plan which would reasonably be expected to result in the withdrawal from, or the  termination, Insolvency of, any Single Employer Plan, Multiemployer Plan or Foreign Plan; provided, however, that  no such notice will be required under clause (i) or (ii) above unless the event giving rise to such notice, when  aggregated with all other such events under clause (i) or (ii) above, would be reasonably expected to result in a  Material Adverse Effect;  (f) as soon as possible after a Responsible Officer of the Parent Borrower knows thereof, (i) any  release or discharge by Ultimate Parent or any of its Restricted Subsidiaries of any Materials of Environmental  Concern required to be reported under applicable Environmental Laws to any Governmental Authority, unless the  Parent Borrower reasonably determines that the total Environmental Costs arising out of such release or discharge  would not reasonably be expected to have a Material Adverse Effect; (ii) any condition, circumstance, occurrence or  event not previously disclosed in writing to the Administrative Agent that would reasonably be expected to result in  liability or expense under applicable Environmental Laws, unless the Parent Borrower reasonably determines that  the total Environmental Costs arising out of such condition, circumstance, occurrence or event would not reasonably  be expected to have a Material Adverse Effect, or would not reasonably be expected to result in the imposition of  any lien or other material restriction on the title, ownership or transferability of any facilities and properties owned,  leased or operated by Ultimate Parent or any of its Restricted Subsidiaries that would reasonably be expected to  result in a Material Adverse Effect; and (iii) any proposed action to be taken by Ultimate Parent or any of its  Restricted Subsidiaries that would reasonably be expected to subject Ultimate Parent or any of its Restricted  Subsidiaries to any material additional or different requirements or liabilities under Environmental Laws, unless the  Parent Borrower reasonably determines that the total Environmental Costs arising out of such proposed action would  not reasonably be expected to have a Material Adverse Effect;  (g) any loss, damage, or destruction to the Collateral in the amount of $10,000,000 or more, whether  or not covered by insurance; and  (h) promptly after a Responsible Officer of the Borrower Representative knows thereof, any default,  event of default or termination under any material warehouse or lease of any distribution center of Ultimate Parent  or any of its Restricted Subsidiaries, other than as previously disclosed in writing to the Lenders, where Collateral  with a value in excess of $10,000,000, either individually or in the aggregate, is located.  Each notice pursuant to this Subsection 7.7 shall be accompanied by a statement of a Responsible Officer  of the Parent Borrower (and, if applicable, the relevant Commonly Controlled Entity or Restricted Subsidiary)  setting forth details of the occurrence referred to therein and stating what action the Parent Borrower (or, if  applicable, the relevant Commonly Controlled Entity or Restricted Subsidiary) proposes to take with respect thereto.  7.8 Environmental Laws.   (a) (i) Comply substantially with, and require substantial compliance by all tenants, subtenants,  contractors, and invitees with, all applicable Environmental Laws; (ii) obtain, comply substantially with and  maintain any and all Environmental Permits necessary for its operations as conducted and as planned; and (iii)  require that all tenants, subtenants, contractors, and invitees obtain, comply substantially with and maintain any and  all Environmental Permits necessary for their operations as conducted and as planned, with respect to any property  leased or subleased from, or operated by Ultimate Parent or its Restricted Subsidiaries. For purposes of this  Subsection 7.8(a), noncompliance shall not constitute a breach of this covenant, provided that, upon learning of any  actual or suspected noncompliance, Ultimate Parent and any such affected Restricted Subsidiary shall promptly  undertake and diligently pursue reasonable efforts, if any, to achieve compliance, and provided, further, that in any  case such noncompliance would not reasonably be expected to have a Material Adverse Effect.  (b) Promptly comply, in all material respects, with all orders and directives of all Governmental  Authorities regarding Environmental Laws, other than such orders or directives (i) as to which the failure to comply  would not reasonably be expected to result in a Material Adverse Effect or (ii) as to which:  (x) appropriate reserves  

 

  121  have been established in accordance with GAAP; (y) an appeal or other appropriate contest is or has been timely and  properly taken and is being diligently pursued in good faith; and (z) if the effectiveness of such order or directive  has not been stayed, the failure to comply with such order or directive during the pendency of such appeal or contest  could not reasonably be expected to have a Material Adverse Effect.  (c) Except to the extent that failure to do so, in the aggregate, would not reasonably be expected to  have a Material Adverse Effect, maintain, update as appropriate, and implement in all material respects an ongoing  program reasonably designed to ensure that all the properties and operations of Ultimate Parent and its Restricted  Subsidiaries are periodically reasonably reviewed by competent personnel to identify and promote compliance with  and to reasonably and prudently manage any material Environmental Costs that would reasonably be expected to  affect Ultimate Parent or any of its Restricted Subsidiaries, including compliance and liabilities relating to:   discharges to air and water; acquisition, transportation, storage and use of hazardous materials; waste disposal;  species and environmental protection; and recordkeeping required under Environmental Laws. For the purposes of  this Subsection 7.8(c), the failure to maintain an environmental program shall not constitute an Event of Default (i)  unless it would reasonably be expected to result in a Material Adverse Effect or (ii) if within 90 days of receipt of a  reasonable request from the Administrative Agent Ultimate Parent and its Restricted Subsidiaries have taken  reasonable and diligent steps to implement and maintain such a program in compliance with this Subsection 7.8(c).  7.9 Subsidiaries.    (a) [Reserved].   (b) With respect to any Domestic Subsidiary that is a Wholly Owned Subsidiary (other than an  Excluded Subsidiary) (i) created or acquired subsequent to the Closing Date by the Parent Borrower or any of its  Domestic Subsidiaries that are Wholly Owned Subsidiaries (other than an Excluded Subsidiary), (ii) being  designated as a Restricted Subsidiary, (iii) ceasing to be an Immaterial Subsidiary or other Excluded Subsidiary as  provided in the applicable definition thereof after the expiry of any applicable period referred to in such definition or  (iv) that becomes a Domestic Subsidiary as a result of a transaction pursuant to, and permitted by, Subsection 8.2 or  8.4 (other than an Excluded Subsidiary), in each case, promptly notify the Administrative Agent of such occurrence  and, if the Administrative Agent or the Required Lenders so request, promptly (i) cause the Loan Party that is  required to grant to the Collateral Agent, for the benefit of the Secured Parties, a perfected first priority security  interest (or second priority security interest in accordance with the terms of the Intercreditor Agreement) (as and to  the extent provided in the U.S. Guarantee and Collateral Agreement) in the Capital Stock of such new Domestic  Subsidiary owned directly by the Parent Borrower or any of its Domestic Subsidiaries that are Wholly Owned  Subsidiaries (other than Excluded Subsidiaries) to execute and deliver a Supplemental Agreement (as defined in the  U.S. Guarantee and Collateral Agreement) pursuant to Section 9.15 of the U.S. Guarantee and Collateral Agreement,  (ii) deliver to the applicable agent in accordance with the Intercreditor Agreement the certificates (if any)  representing such Capital Stock, together with undated stock powers, executed and delivered in blank by a duly  authorized officer of the parent of such new Domestic Subsidiary and (iii) cause such new Domestic Subsidiary (A)  to become a party to the U.S. Guarantee and Collateral Agreement and (B) to take all actions reasonably deemed by  the Collateral Agent to be necessary or advisable to cause the Lien created by the U.S. Guarantee and Collateral  Agreement in such new Domestic Subsidiary’s Collateral to be duly perfected in accordance with all applicable  Requirements of Law (as and to the extent provided in the U.S. Guarantee and Collateral Agreement), including the  filing of financing statements in such jurisdictions as may be reasonably requested by the Collateral Agent and (iv)  with respect to any Subsidiary of any Loan Party that is not a Loan Party, if such Subsidiary that qualifies as a “legal  entity customer” under the Beneficial Ownership Regulation unless such Subsidiary has delivered a Beneficial  Ownership Certification in relation to such Subsidiary and Administrative Agent has completed its Patriot Act  searches, OFAC/PEP searches and customary individual background checks for such Subsidiary, the results of  which shall be satisfactory to Administrative Agent.  In addition, the Parent Borrower may (with the written consent  of the Administrative Agent) cause any Subsidiary (including any Foreign Subsidiary organized and existing under  the laws of any Permitted Jurisdiction) that is not required to become a Subsidiary Guarantor to become a Subsidiary  Guarantor by executing and delivering an Assumption Agreement (as defined in the applicable Guarantee and  Collateral Agreement) or any other security documentation reasonably acceptable to the Administrative Agent and  taking all actions described in this Subsection 7.9(b) (or with respect to Foreign Subsidiaries, as otherwise agreed to  with the Administrative Agent) to perfect the Liens on the Capital Stock and Collateral of such Subsidiary  

 

  122  (including taking actions necessary to perfect any security interests in Collateral in any foreign jurisdictions);  provided that (x) no Subsidiary shall become a Subsidiary Guarantor until such time as the Parent Borrower delivers  to the Administrative Agent such documents and other information reasonably requested by the Administrative  Agent, including, without limitation, (i) all documentation and information contemplated by Subsection 11.18, (ii)  Organizational Documents and customary certificates of a Responsible Officer of the Parent Borrower and such  Subsidiary, and (iii) to the extent reasonably requested by the Administrative Agent in connection with a Material  Opinion Guarantor, one or more legal opinions with respect to such Subsidiary. For the avoidance of doubt, without  the written consent of the Administrative Agent, no Foreign Subsidiary may become a Borrower or Subsidiary  Guarantor if such Foreign Subsidiary is not organized and existing under the laws of any of a Permitted Jurisdiction.  Notwithstanding anything to the contrary herein, with respect to any Foreign Subsidiary becoming a Subsidiary  Guarantor pursuant to the terms of this Subsection 7.9(b), the Administrative Agent, the Collateral Agent and the  Parent Borrower may amend this Agreement and any other Loan Document as reasonably necessary or desirable to  give effect thereto without the consent of any Lender or other Loan Party.  With respect to any Foreign Subsidiary  which the Parent Borrower has previously caused to become a Subsidiary Guarantor pursuant to the term of the  Loan Documents, the Parent Borrower may, upon not less than ten (10) Business Days’ prior written notice to the  Administrative Agent, rescind such election; provided that, (i) no Default or Event of Default shall have occurred or  be continuing or would result therefrom, (ii) if, after giving effect to the release of such Subsidiary Guarantor,  Specified Availability (divided by Availability on such date and expressed as a percentage) is less than 12.5%,  Ultimate Parent shall be in Pro Forma Compliance with a minimum Consolidated Fixed Charge Coverage Ratio of  at least 1.00:1.00, (iii) to the extent required by clause (2) of the proviso of Subsection 7.2(f), the Parent Borrower  shall deliver to the Administrative Agent an updated Borrowing Base Certificate giving Pro Forma effect to the  removal of the assets owned by such Subsidiary Guarantor from the Borrowing Base, and (iv) after giving effect to  such rescission (including the removal of the relevant assets from the Borrowing Base), no Liquidity Event shall  have occurred; provided, further, that the satisfaction of the conditions in the immediately preceding proviso (other  than clause (iii) thereof) shall not be required if the guarantee, grant of collateral or pledge of securities by any  Foreign Subsidiary becomes illegal in the jurisdiction of organization or in any jurisdiction where assets comprising  Collateral are located or causes a materially negative tax liability for Ultimate Parent or any of its Subsidiaries.  (c) With respect to any Foreign Subsidiary or Domestic Subsidiary that is not a Wholly Owned  Subsidiary created or acquired subsequent to the Closing Date by the Parent Borrower or any of its Domestic  Subsidiaries that are Wholly Owned Subsidiaries (in each case, other than any Excluded Subsidiary), the Capital  Stock of which is owned directly by the Parent Borrower or a Domestic Subsidiary that is a Wholly Owned  Subsidiary (other than an Excluded Subsidiary), promptly notify the Administrative Agent of such occurrence and if  the Administrative Agent or the Required Lenders so request, promptly (i) cause the Loan Party that is required to  grant to the Collateral Agent, for the benefit of the Secured Parties, a perfected first priority security interest (or  second priority security interest in accordance with the terms of the Intercreditor Agreement) (as and to the extent  provided in the applicable Guarantee and Collateral Agreement) in the Capital Stock of such new Subsidiary that is  directly owned by the Parent Borrower or any Domestic Subsidiary that is a Wholly Owned Subsidiary (other than  an Excluded Subsidiary) (provided that, other than with respect to any Foreign Subsidiary that becomes a Loan  Party, in no event shall more than 65% of the Capital Stock of any new Foreign Subsidiary be required to be so  pledged and, provided, further, that no such pledge or security shall be required with respect to any Subsidiary that  is not a Wholly Owned Subsidiary and a Restricted Subsidiary to the extent that the grant of such pledge or security  interest would violate the terms of any agreements under which the Investment by the Parent Borrower or any of its  Restricted Subsidiaries was made therein) and (ii) to the extent reasonably deemed advisable by the Collateral Agent,  in accordance with the Intercreditor Agreement deliver to the applicable agent the certificates, if any, representing  such Capital Stock, together with undated stock powers, executed and delivered in blank by a duly authorized officer  of the relevant parent of such new Subsidiary and take such other action as may be reasonably deemed by the  Collateral Agent to be necessary or desirable to perfect the Collateral Agent’s security interest therein (in each case  as and to the extent required by the Guarantee and Collateral Agreement).  (d) At its own expense, execute, acknowledge and deliver, or cause the execution, acknowledgement  and delivery of, and thereafter register, file or record in an appropriate governmental office, any document or  instrument reasonably deemed by the Collateral Agent to be necessary or desirable for the creation, perfection and  priority and the continuation of the validity, perfection and priority of the foregoing Liens or any other Liens created  pursuant to the Security Documents. For the avoidance of doubt, prior to Borrowing against any Accounts or  

 

  123  Inventory located in a foreign jurisdiction, the Parent Borrower shall take all actions reasonably deemed by the  Collateral Agent to be necessary or desirable for the creation or perfection of a security interest in such Accounts or  Inventory in such foreign jurisdiction.    (e) Notwithstanding anything to the contrary in this Agreement, (A) the foregoing requirements shall  be subject to the terms of the Intercreditor Agreement and, in the event of any conflict with such terms, the terms of  the Intercreditor Agreement shall govern, (B) no security interest or lien is or will be granted pursuant to any Loan  Document or otherwise in any right, title or interest of any of Ultimate Parent, Holdings, the Parent Borrower or any  of its Subsidiaries in, and “Collateral” shall not include, any Excluded Asset (for so long as and to the extent any  such right, title or interest constitutes an Excluded Asset), (C) no Loan Party or any Affiliate thereof shall be  required to take any action in any non-U.S. jurisdiction or required by the laws of any non-U.S. jurisdiction in order  to create any security interests in assets located or titled outside of the U.S. or to perfect any security interests  (unless the Parent Borrower elects to cause a Foreign Subsidiary to become a Subsidiary Guarantor as contemplated  by Subsection 7.9(b), in which case the applicable Loan Parties shall take all actions to create and perfect a security  interest as agreed to with the Administrative Agent), (D) to the extent not automatically perfected by UCC Filings,  no Loan Party shall be required to take any actions in order to perfect any security interests granted with respect to  any assets specifically requiring perfection through control (excluding Capital Stock required to be delivered  pursuant to the Loan Documents), except to the extent any such action is required pursuant to Subsection 4.16, and  (E) nothing in this Subsection 7.9 shall require that any Subsidiary grant a Lien with respect to any property or  assets in which such Subsidiary acquires ownership rights to the extent that the Parent Borrower and the  Administrative Agent reasonably determine in writing that the costs or other consequences to Holdings or any of its  Subsidiaries of the granting of such a Lien is excessive in view of the benefits that would be obtained by the Secured  Parties.  7.10 [Reserved].  7.11 Use of Proceeds. Use the proceeds of the Loans only for the purposes set forth in Subsection 5.17  and request the issuance of Letters of Credit only for the purposes set forth in Subsection 3.1(b); provided  that,   notwithstanding  anything  to  the  contrary,  no  part  of   the proceeds of any Loan or Letter of Credit will be used,  directly or to Borrowers’ knowledge after due inquiry, indirectly, to make any payments to a Sanctioned Country or a  Sanctioned Person, to fund any investments, loans or contributions in, or otherwise make such proceeds available to,  a Sanctioned Country or a Sanctioned Person, to fund any operations, activities or business of a Sanctioned Country  or a Sanctioned Person, or in any other manner that would result in a violation of Sanctions by any party to this  Agreement, any other Loan Party, any Subsidiary of any Loan Party or any Affiliate of any Loan Party, and that no  part of the proceeds of any Loan or Letter of Credit will be used, directly or to Borrowers’ knowledge after due  inquiry, indirectly, 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 the Anti-Corruption Laws or Anti-Money Laundering  Laws.  7.12 Post-Closing Security Perfection. The Parent Borrower agrees to satisfy such other conditions  within the applicable time periods set forth on Schedule 7.12, as such time periods may be extended by the  Administrative Agent, in its sole discretion.  7.13 [Reserved].  7.14 Changes in Fiscal Year. End the respective fiscal years of Holdings or the Parent Borrower on the  date that is a 52 or 53 week Fiscal Year ending on September 30 or the Friday preceding such date; provided that  Holdings or the Parent Borrower may, upon written notice to the Administrative Agent, change its fiscal year to any  other fiscal year, in which case, the Parent Borrower and the Administrative Agent will, and will be authorized by  the Lenders to, make any adjustments to the Loan Documents that are necessary to reflect such change in fiscal year.  7.15 OFAC; Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws. Each Loan Party will,  and will cause each of its Subsidiaries to, comply with all applicable Sanctions, Anti-Corruption Laws and Anti- Money Laundering Laws in all material respects.  Each of the Loan Parties and its Subsidiaries shall implement and  

 

  124  maintain in effect policies and procedures reasonably designed to ensure compliance by the Loan Parties and their  Subsidiaries and their respective directors, officers, employees, agents and Affiliates with applicable Sanctions,  Anti-Corruption Laws and Anti-Money Laundering Laws.  SECTION 8 Negative Covenants  Each of Ultimate Parent and the Parent Borrower hereby agrees that, from and after the Closing Date and  so long as the Commitments remain in effect, and thereafter until payment in full of the Loans, all Reimbursement  Obligations and all other Obligations then due and owing to any Lender or any Agent hereunder and termination or  expiration of all Letters of Credit (unless cash collateralized or otherwise provided for in a manner reasonably  satisfactory to the Administrative Agent), Ultimate Parent shall not and shall not permit any of its Restricted  Subsidiaries to, directly or indirectly:  8.1 Financial Condition Covenant. Upon the occurrence and during the continuance of a Liquidity  Event, permit, for the most recently ended period (including the period of four consecutive fiscal quarters of  Ultimate Parent and its Restricted Subsidiaries for which financial statements have been delivered pursuant to  Subsection 7.1(a) or 7.1(b) ended immediately prior to such Liquidity Event) of four consecutive fiscal quarters of  Ultimate Parent and its Restricted Subsidiaries for which financial statements have been delivered pursuant to  Subsection 7.1(a) or 7.1(b), the Consolidated Fixed Charge Coverage Ratio as at the last day of such period of four  consecutive fiscal quarters to be less than 1.00:1.00  8.2 Limitation on Fundamental Changes. Enter into any merger or consolidation, or liquidate, wind up  or dissolve itself (or suffer any liquidation or dissolution), or convey, sell, lease, assign, transfer or otherwise  dispose of, all or substantially all of its property, business or assets (including pursuant to a Delaware LLC Division),  except:  (a) (x) any Borrower may be merged or consolidated with or into another Person if (1) a Borrower is  the surviving Person or (2) the Person (the “Successor Borrower”) formed by or surviving such merger or  consolidation (i) is organized or existing under the laws of the United States, or any state, district or territory thereof  and (ii) expressly assumes all obligations of such Borrower under the Loan Documents pursuant to documentation  reasonably satisfactory to the Administrative Agent; provided that, in the case of clause (x)(2) above, (i) except with  respect to any transaction in which an Escrow Subsidiary merges, consolidates or amalgamates with and into a  Borrower, immediately after giving effect to the transaction (and treating any Indebtedness that becomes an  Obligation of the Successor Borrower as a result of such transaction as having been incurred by the Successor  Borrower at the time of such transaction), no Default will have occurred and be continuing, (ii) each Subsidiary  Guarantor (other than (I) any Subsidiary Guarantor that will be released from its obligations under its Subsidiary  Guaranty in connection with such transaction and (II) any party to any such consolidation, merger or amalgamation)  shall have delivered a joinder or other document or instrument in form reasonably satisfactory to the Administrative  Agent, confirming its Subsidiary Guaranty (other than any Subsidiary Guaranty that will be discharged or  terminated in connection with such transaction), (iii) each Subsidiary Guarantor (other than (I) any Subsidiary that  will be released from its grant or pledge of Collateral under the Guarantee and Collateral Agreement in connection  with such transaction and (II) any party to any such consolidation, merger or amalgamation) shall have by a  supplement to the applicable Guarantee and Collateral Agreement or another document or instrument affirmed that  its obligations thereunder shall apply to its Guarantee as reaffirmed pursuant to clause (ii) above, (iv) the  Administrative Agent shall not be obligated to provide Loans to any Successor Borrower until the Administrative  Agent and each Lender shall have received all documentation and other information required by regulatory  authorities under applicable “know your customer” and anti-money laundering rules and regulations with respect to  such Successor Borrower; and (y) other than with respect to a Borrower (which, for the avoidance of doubt, shall be  governed by clause (x) above), any Restricted Subsidiary of the Ultimate Parent may be merged or consolidated  with or into the Ultimate Parent (provided that the Ultimate Parent shall be the continuing or surviving entity) or  with or into any one or more Restricted Subsidiaries that are Wholly Owned Subsidiaries of the Ultimate Parent  (provided that the Wholly Owned Subsidiary or Restricted Subsidiaries of the Ultimate Parent shall be the  continuing or surviving entity); provided that in any case where the Subsidiary that is the non-surviving entity is a  Loan Party and such Subsidiary’s assets include real property owned by such Loan Party or Voting Stock of any  other Loan Party, or if such merger or consolidation constitutes (alone or together with any related merger or  

 

  125  consolidation by any Loan Party) a transfer of all or substantially all of the assets of the Domestic Subsidiaries that  are Loan Parties, (1) at the time of such merger or consolidation, (A) on the date of such merger or consolidation,  after giving effect thereto, (x) (1) 30-Day Specified Availability (divided by Availability on such date and expressed  as a percentage) and (2) Specified Availability (divided by Availability on such date and expressed as a percentage)  each exceed 12.5% and (y) unless 30-Day Specified Availability (divided by Availability on such date and  expressed as a percentage) exceeds 17.5%, Ultimate Parent shall be in Pro Forma Compliance with a minimum  Consolidated Fixed Charge Coverage Ratio of at least 1.00:1.00, (2) the continuing or surviving entity shall be a  Loan Party, (3) such merger or consolidation shall be in the ordinary course of business or (4) if the continuing or  surviving entity is not a Loan Party, the Fair Market Value of all such assets transferred by one or more Loan Parties  pursuant to this clause (4) do not exceed $5,000,000 in the aggregate in any Fiscal Year and (B) no Specified  Default or any other Event of Default known to Ultimate Parent or the Parent Borrower shall have occurred and be  continuing or would result therefrom;  (b) any Restricted Subsidiary of the Ultimate Parent may sell, lease, transfer or otherwise dispose of  any or all of its assets (upon voluntary liquidation or otherwise) to the Ultimate Parent or any Restricted Subsidiary  that is a Wholly Owned Subsidiary of the Ultimate Parent (and, in the case of a non-Wholly Owned Subsidiary, may  be liquidated to the extent the Ultimate Parent or any Wholly Owned Subsidiary which is a direct parent of such  non-Wholly Owned Subsidiary receives a pro rata distribution of the assets thereof); provided that (x) if the  Subsidiary that disposes of any or all of its assets is a Loan Party and such disposition includes real property owned  by such Loan Party or Voting Stock of any other Loan Party, or constitutes (alone or together with any related  disposition of assets by any Loan Party) all or substantially all of the assets of the Domestic Subsidiaries that are  Loan Parties, (1) at the time of such sale, lease, transfer or other disposition, (A) on the date of such asset sale, after  giving effect thereto, (x) (1) 30-Day Specified Availability (divided by Availability on such date and expressed as a  percentage) and (2) Specified Availability (divided by Availability on such date and expressed as a percentage) each  exceed 12.5% and (y) unless 30-Day Specified Availability (divided by Availability on such date and expressed as a  percentage) exceeds 17.5%, Ultimate Parent shall be in Pro Forma Compliance with a minimum Consolidated Fixed  Charge Coverage Ratio of at least 1.00:1.00, (2) the transferee of such assets shall be a Loan Party, (3) such  disposition shall be in the ordinary course of business or (4) if the transferee of such assets is not a Loan Party, the  Fair Market Value of all such assets transferred by one or more Loan Parties pursuant to this clause (4) do not  exceed $10,000,000 in the aggregate in any Fiscal Year and (B) no Specified Default or any other Event of Default  known to the Ultimate Parent or the Parent Borrower shall have occurred and be continuing or would result  therefrom;  (c) [reserved];  (d) to the extent such sale, lease, transfer or other disposition or transaction is expressly excluded  from the definition of “Asset Sale” or, if such sale, lease transfer or other disposition or transactions constitutes an  “Asset Sale,” such Asset Sale is made in compliance with Subsection 8.5; or  (e) the Ultimate Parent or any Restricted Subsidiary may be merged or consolidated with or into any  other Person in order to effect any acquisition permitted pursuant to Subsection 8.4.  8.3 Limitation on Restricted Payments. Declare or pay any Restricted Payment, except that:  (a) in addition to the Restricted Payments permitted pursuant to the following clauses (b) through (l),  the Parent Borrower, Holdings and the Ultimate Parent may pay additional Restricted Payments, provided that at the  time such dividend, payment or distribution is declared, (i) no Specified Default or any other Event of Default  known to the Borrowers shall have occurred and be continuing or would result therefrom and (ii) on the date of such  Restricted Payment, after giving effect thereto, (x) (1) 30-Day Specified Availability (divided by Availability on  such date and expressed as a percentage) and (2) Specified Availability (divided by Availability on such date and  expressed as a percentage) each exceed 15.0% and (y) unless (1) 30-Day Specified Availability (divided by  Availability on such date and expressed as a percentage)  and (2) Specified Availability (divided by Availability on  such date and expressed as a percentage) each exceeds 25.0%, the Ultimate Parent shall be in Pro Forma  Compliance with a minimum Consolidated Fixed Charge Coverage Ratio of at least 1.00:1.00; provided further, that  such dividend, payment or distribution is paid within 30 days of such declaration;  

 

  126  (b) the Parent Borrower, Holdings and any Parent Entity may pay cash dividends, payments and  distributions in an amount sufficient to allow any Parent Entity or Holdings to pay legal, accounting and other  maintenance and operational expenses (other than Taxes) incurred in the ordinary course of business, provided that,  if any Parent Entity shall own any material assets other than the Capital Stock of the Parent Borrower, Holdings or  another Parent Entity or other assets, relating to the ownership interest of such Parent Entity in another Parent Entity,  Holdings or Subsidiaries of Holdings, such cash dividends with respect to such Parent Entity shall be limited to the  reasonable and proportional share, as determined by the Parent Borrower in its reasonable discretion, of such  expenses incurred by such Parent Entity relating or allocable to its ownership interest in the Parent Borrower,  Holdings or another Parent Entity and such other related assets;  (c) the Parent Borrower, Holdings and the Ultimate Parent may pay cash dividends, payments and  distributions in an amount sufficient to cover reasonable and necessary expenses (including professional fees and  expenses) (other than Taxes) incurred by any Parent Entity or Holdings in connection with (i) registration, public  offerings and exchange listing of equity or debt securities and maintenance of the same, (ii) reporting obligations  under, or in connection with compliance with, applicable laws or applicable rules of any governmental, regulatory or  self-regulatory body or stock exchange, this Agreement or any other agreement or instrument relating to  Indebtedness of any Loan Party or any of the Restricted Subsidiaries and (iii) indemnification and reimbursement of  directors, officers and employees in respect of liabilities relating to their serving in any such capacity, or obligations  in respect of director and officer insurance (including premiums therefor), provided that, in the case of subclause (i)  above, if any Parent Entity shall own any material assets other than the Capital Stock of Holdings or another Parent  Entity or other assets relating to the ownership interest of such Parent Entity in another Parent Entity, Holdings or its  Subsidiaries, with respect to such Parent Entity such cash dividends shall be limited to the reasonable and  proportional share, as determined by the Parent Borrower in its reasonable discretion, of such expenses incurred by  such Parent Entity relating or allocable to its ownership interest in another Parent Entity, Holdings, the Parent  Borrower and such other assets;  (d) the Parent Borrower, Holdings and the Ultimate Parent may pay, without duplication, cash  dividends, payments and distributions (A) pursuant to the Tax Sharing Agreement or a similar agreement with  Holdings or any Parent Entity; and (B) to pay or permit Holdings or any Parent Entity to pay any Related Taxes;  (e) the Parent Borrower, Holdings and the Ultimate Parent may pay cash dividends, payments and  distributions in an amount sufficient to allow Holdings and any Parent Entity to pay all fees and expenses incurred in  connection with the Transactions and the other transactions expressly contemplated by this Agreement and the other  Loan Documents, and to allow Holdings to perform its obligations under or in connection with the Loan Documents  to which it is a party;  (f) the Parent Borrower, Holdings and the Ultimate Parent may pay cash dividends, payments and  distributions in an amount sufficient to allow Holdings, any Parent Entity or any Subsidiary thereof to repurchase  shares of its Capital Stock or rights, options or units in respect thereof from any Management Investors or former  Management Investors (or any of their respective heirs, successors, assigns, legal representatives or estates)  (including any repurchase or acquisition by reason of the Parent Borrower, Holdings or any Parent Entity retaining  any Capital Stock, option, warrant or other right in respect of any withholding obligations, and any related payment  in respect of any such obligations), or as otherwise contemplated by any Management Subscription Agreements for  an aggregate purchase price not to exceed $20,000,000 in any Fiscal Year; provided that (A) any unused amounts  from any Fiscal Year may be used in any succeeding Fiscal Year (with no more than $40,000,000 in any Fiscal  Year); (B) such amount shall be increased by an amount equal to the proceeds to Holdings (whether received by it  directly or from a Parent Entity or applied to pay Parent Entity Expenses) or any Parent Entity of any resales or new  issuances of shares and options to any Management Investors, at any time after the initial issuances to any  Management Investors, together with the aggregate amount of deferred compensation owed by any Parent Entity,  Holdings or any of its Subsidiaries to any Management Investor that shall thereafter have been cancelled, waived or  exchanged at any time after the initial issuances to any thereof in connection with the grant to such Management  Investor of the right to receive or acquire shares of Holdings’ or any Parent Entity’s Capital Stock; provided,  however, that any amount received by any Parent Entity or Holdings in accordance with this clause (B) shall have  been further contributed to the Parent Borrower or applied to pay expenses, taxes or other amounts (in respect of  which the Parent Borrower is permitted to make dividends, payments or distributions pursuant to Subsection 8.3)  

 

  127  incurred or payable by Holdings or Parent Entity Expenses; and (C) such amount shall be increased by the cash  proceeds of key man life insurance policies received by the Ultimate Parent or any of its Subsidiaries (or by any  Parent Entity and contributed to the Ultimate Parent);  (g) [reserved];  (h) [reserved];  (i) the Parent Borrower, Holdings and the Ultimate Parent may make Restricted Payments; provided  that (i) at the time such dividend, payment or distribution is declared, no Specified Default or any other Event of  Default known to the Borrowers shall have occurred and be continuing or would result therefrom (provided that  such dividend, payment or distribution is paid within 30 days of such declaration) and (ii) the aggregate amount of  such dividends, payments and distributions pursuant to this clause (i), when aggregated with all optional  prepayments made pursuant to Subsection 8.6(e), do not exceed $25,000,000;  (j) the Parent Borrower, Holdings and the Ultimate Parent may make dividends or other distributions  of, or Investments paid for or made with, Capital Stock, Indebtedness or other securities of Unrestricted Subsidiaries;  (k) [reserved]; and  (l) the Parent Borrower, Holdings and the Ultimate Parent may make Restricted Payments (other than  any Restricted Payment on Disqualified Capital Stock) in an amount not to exceed in any Fiscal Year of the  Ultimate Parent, the greater of (i) 6.0% of the aggregate gross proceeds received by the Ultimate Parent (whether  directly, or indirectly through a contribution to common equity capital) in or from any public offering of common  stock, units or equity and (ii) 6.0% of Market Capitalization.  For purposes of determining compliance with Subsection 8.3, in the event that any Restricted  Payment meets the criteria of more than one of the types of Restricted Payments described in one or more of the  clauses of Subsection 8.3, the Parent Borrower, in its sole discretion, shall classify such item of Restricted Payment  and may include the amount and type of such Restricted Payment in one or more of such clauses (including in part  under one such clause and in part under another such clause).  8.4 Limitations on Certain Acquisitions. Acquire by purchase or otherwise all the business or assets of,  or stock or other evidences of beneficial ownership of, any Person, except that the Ultimate Parent and its Restricted  Subsidiaries shall be allowed to make any such acquisitions so long as:  (a) such acquisition is expressly permitted by Subsection 8.2 (other than clause (e)); or  (b) such acquisition satisfies each of the following requirements:  (i) the business of the acquired company shall be substantially  similar to, or ancillary, complementary or related to the line of business of the Ultimate Parent  and its Restricted Subsidiaries on the Closing Date, or the assets so acquired shall be used or  useful in or otherwise relate to, any such business;  (ii) the assets acquired will be owned or otherwise held by a Loan  Party or the acquired company and its Subsidiaries will become Guarantors or Borrowers and  pledge their Collateral to the Collateral Agent, in each case, to the extent required by Subsection  7.9(b) and Subsection 7.9(c); and  (iii) either:  (1) On the date of such Permitted Acquisition, after giving  effect to such Permitted Acquisition and the transactions related thereto, (x) (1) 30-Day Specified  

 

  128  Availability (divided by Availability on such date and expressed as a percentage) and (2) Specified  Availability (divided by Availability on such date and expressed as a percentage) each exceed  12.5% and (y) unless (1) 30-Day Specified Availability (divided by Availability on such date and  expressed as a percentage) and (2) Specified Availability (divided by Availability on such date and  expressed as a percentage) each exceeds 15.0% Ultimate Parent shall be in Pro Forma Compliance  with a minimum Consolidated Fixed Charge Coverage Ratio of at least 1.00:1.00; or  (2) to the extent the test set forth in clause (iii)(1) is not  satisfied, the Acquisition Consideration consists solely of any combination of (x) Capital Stock of  any Parent Entity, (y) amounts not to exceed the Available Excluded Contribution Amount Basket,  and (z) cash, other property and Indebtedness (whether incurred or assumed but solely to the  extent permitted hereunder), provided that the aggregate amount of all such consideration paid for  Permitted Acquisitions consummated during any Fiscal Year is less than or equal to $25,000,000  (each such acquisition described in this Subsection 8.4(b), a “Permitted Acquisition”); provided  further that the value of any common stock issued by any Parent Entity, the Parent Borrower or  any Restricted Subsidiary in connection with any Permitted Acquisition shall not be included in  calculating such aggregate consideration in the immediately preceding proviso;  provided, further, that in the case of each such acquisition pursuant to clause (a) or (b) after giving effect thereto, no  Specified Default or any other Event of Default known to the Parent Borrower shall occur as a result of such  acquisition.  8.5 Limitation on Dispositions of Collateral.  Engage in any Asset Sale with respect to any of the  Collateral, except that the Ultimate Parent and its Restricted Subsidiaries shall be allowed to engage in Asset Sales;  so long as (i) on the date of such Asset Sale, after giving effect thereto, (x) (1) 30-Day Specified Availability  (divided by Availability on such date and expressed as a percentage) and (2) Specified Availability (divided by  Availability on such date and expressed as a percentage) each exceed 10.0% and (y) unless (1) 30-Day Specified  Availability (divided by Availability on such date and expressed as a percentage) and (2) Specified Availability  (divided by Availability on such date and expressed as a percentage) each exceeds 17.5%, Ultimate Parent shall be  in Pro Forma Compliance with a minimum Consolidated Fixed Charge Coverage Ratio of at least 1.00:1.00 or (ii)  the consideration received (including by way of relief from, or by any other Person assuming responsibility for, any  liabilities, contingent or otherwise) in connection with such Asset Sale is for Fair Market Value (determined as of  the date a legally binding commitment for such Asset Sale was entered into), and if the Dollar Equivalent of such  consideration received is greater than $40,000,000, at least 75% of such consideration received (excluding, in the  case of an Asset Sale (or series of related Asset Sales), any consideration by way of relief from, or by any other  Person assuming responsibility for, any liabilities, contingent or otherwise, that are not Indebtedness) is in the form  of cash (in each case, free and clear of all Liens at the time received, other than Liens permitted by Subsection 8.14).  For the purposes of the foregoing, the following are deemed to be cash:  (1) Cash Equivalents and Temporary Cash  Investments, (2) the assumption of Indebtedness of the Ultimate Parent (other than Disqualified Capital Stock of the  Ultimate Parent) or any Restricted Subsidiary and the release in writing of the Parent Borrower or such Restricted  Subsidiary from all liability on payment of the principal amount of such Indebtedness in connection with such Asset  Sale, (3) Indebtedness of any Restricted Subsidiary that is no longer a Restricted Subsidiary as a result of such Asset  Sale, to the extent that the Ultimate Parent and each other Restricted Subsidiary are released in writing from any  Guarantee Obligation of payment of the principal amount of such Indebtedness in connection with such Asset Sale,  (4) securities received by the Ultimate Parent or any Restricted Subsidiary from the transferee that are converted by  the Ultimate Parent or such Restricted Subsidiary into cash within 180 days, (5) consideration consisting of  Indebtedness of the Ultimate Parent or any Restricted Subsidiary, (6) Additional Assets and (7) any Designated  Noncash Consideration received by the Ultimate Parent or any of its Restricted Subsidiaries in an Asset Sale having  an aggregate Fair Market Value, taken together with all other Designated Noncash Consideration received pursuant  to this clause, not to exceed an aggregate amount at any time outstanding equal to the greater of (i) $65,000,000 and  (ii) 4.00% of Consolidated Total Assets at the time of designation (with the Fair Market Value of each item of  Designated Noncash Consideration being measured at the time received and without giving effect to subsequent  changes in value).  In connection with any Asset Sale permitted under this Subsection 8.5 or a Disposition that is excluded  from the definition of “Asset Sale”, the Administrative Agent shall, and the Lenders hereby authorize the  

 

  129  Administrative Agent to, execute such releases of Liens and take such other actions as the Parent Borrower may  reasonably request in connection with the foregoing.  8.6 Limitation on Optional Payments and Modifications of Subordinated Debt Instruments and Other  Documents.   (a) Make any optional payment or optional prepayment on or optional repurchase or optional  redemption of any Indebtedness that is by its terms subordinated to the payment in cash of the Obligations  (“Restricted Indebtedness”), including any payments on account of or for a sinking or other analogous fund for, the  repurchase, redemption, defeasance or other acquisition thereof (it being understood that (x) payments of regularly  scheduled interest and (y) any payment by the Ultimate Parent or any Restricted Subsidiary made as a mandatory  principal redemption or other payment in respect of any Restricted Indebtedness pursuant to an “AHYDO saver”  provision of any agreement or instrument in respect of Restricted Indebtedness (including the Parent Borrower’s  determination in good faith of the amount of any such “AHYDO saver” mandatory principal redemption or other  payment) shall be in each case permitted)), unless (A) on the date of such repayment, repurchase or redemption,  after giving effect thereto, (x) (1) 30-Day Specified Availability (divided by Availability on such date and expressed  as a percentage) and (2) Specified Availability (divided by Availability on such date and expressed as a percentage)  each exceed 12.5% and (y) unless 30-Day Specified Availability (divided by Availability on such date and  expressed as a percentage) exceeds 17.5%, Ultimate Parent shall be in Pro Forma Compliance with a minimum  Consolidated Fixed Charge Coverage Ratio of at least 1.00:1.00 or (B) such payment or prepayment on or optional  repurchase or redemption of Restricted Indebtedness is financed with an amount not exceeding the Available  Excluded Contribution Amount Basket; provided that the Ultimate Parent or any of its Restricted Subsidiaries may  consummate any redemption of Restricted Indebtedness within 60 days after the date of giving an irrevocable notice  of redemption if at such date of giving of such notice, such redemption would have complied with this Subsection  8.6(a); provided further, that, unless Agent receives evidence reasonably satisfactory to it that the Ultimate Parent or  the applicable Restricted Subsidiary has sufficient cash on hand to satisfy its obligations pursuant to such  irrevocable notice of redemption (and will retain such cash until the satisfaction of such obligations), the  Administrative Agent shall be entitled to establish an Availability Reserve in an amount equal to the aggregate  consideration to be paid in respect of such redemption.   (b) [Reserved].  (c) Amend, supplement, waive or otherwise modify any of the provisions of any Restricted  Indebtedness in a manner that (A) shortens the maturity date of such Indebtedness incurred thereunder to a date prior  to the date that is 91 days after the Termination Date, (B) provides for a shorter weighted average life to maturity, at  the time of issuance or incurrence, than the remaining weighted average life to maturity of the Indebtedness that is  refinanced, refunded, replaced, renewed, repaid, restructured or extended (provided that compliance with this  restriction shall be determined ignoring the effect of any payment of customary upfront fees or any permanent  prepayment of such Indebtedness, in each case based on market conditions at the time of the applicable amendment,  supplement, waiver or other modification), (C) changes any subordination provision of any Restricted Indebtedness,  (D) increases the principal amount of such Indebtedness in a manner that does not comply with Subsection 8.13, (E)  provides that such Indebtedness is recourse to any Person other than those which were obligated with respect to such  Indebtedness, or (F) does not otherwise comply with the terms of this Agreement and the other Loan Documents.  Notwithstanding the foregoing, the provisions of this Subsection 8.6(c) shall not restrict or prohibit any refinancing  of Restricted Indebtedness (in whole or in part) with the proceeds of any Indebtedness otherwise permitted to be  incurred pursuant to Subsection 8.13.  (d) Amend its Organizational Documents, except for changes and amendments that are not materially  adverse to the interests of the Administrative Agent, the Lenders and the Issuing Lenders under the Loan Documents  or in the Collateral; provided that the applicable Loan Parties comply with all requirements under the Collateral  Documents to the extent required in connection therewith.  (e) Notwithstanding the foregoing the Ultimate Parent and its Restricted Subsidiaries shall be  permitted to make the following optional payments, repurchases and redemptions (“Optional Payments”) in respect  of Restricted Indebtedness:  

 

  130  (i) Optional Payments pursuant to this clause (e)(i) in an aggregate  amount that, when aggregated with all cash dividends paid pursuant to Subsection 8.3(i)(ii), does  not exceed in any Fiscal Year $25,000,000;  (ii) Optional Payments by exchange for, or out of the proceeds of,  the issuance, sale or other incurrence of Indebtedness of the Ultimate Parent or any of its  Restricted Subsidiaries permitted under Subsection 8.13; provided that such Indebtedness  incurred for purposes of such Optional Payments shall be unsecured or secured on a junior basis  to the Obligations in respect of ABL Priority Collateral;  (iii) Optional Payments by conversion or exchange of Restricted  Indebtedness to Capital Stock (other than Disqualified Capital Stock) or Indebtedness of any  Parent Entity; and  (iv) Optional Payments in anticipation of satisfying a sinking fund  obligation, principal installment or final maturity, in each case due within one year of the date of  making such Optional Payment.  8.7 [Reserved].  8.8 Limitation on Negative Pledge Clauses. Enter into with any Person any agreement which prohibits  or limits the ability of Ultimate Parent or any of its Restricted Subsidiaries that are Loan Parties to create, incur,  assume or suffer to exist any Lien in favor of the Lenders in respect of obligations and liabilities under this  Agreement or any other Loan Documents upon any of the Collateral, other than:  (a) this Agreement, the other Loan Documents and any related documents, the Term Loan Documents  and the Additional Obligations Documents;  (b) pursuant to any agreement or instrument of a Person, or relating to Indebtedness (including any  Guarantee Obligation in respect thereto) or Capital Stock of a Person, which Person is acquired by or merged or  consolidated or amalgamated with or into Ultimate Parent or any Restricted Subsidiary, or which agreement or  instrument is assumed by Ultimate Parent or any Restricted Subsidiary in connection with an acquisition from such  Person or any other transaction entered into in connection with any such acquisition, merger, consolidation or  amalgamation, as in effect at the time of such acquisition, merger, consolidation, amalgamation or transaction  (except to the extent that such Indebtedness was incurred to finance, or otherwise in connection with, such  acquisition, merger, consolidation, amalgamation or transaction), provided that for purposes of this Subsection  8.8(b), if a Person other than a Borrower is the Successor Borrower with respect thereto, any Subsidiary thereof or  agreement or instrument of such Person or any such Subsidiary shall be deemed acquired or assumed, as the case  may be, by the Ultimate Parent or a Restricted Subsidiary, as the case may be, when such Person becomes such  Successor Borrower;  (c) pursuant to any agreement or instrument (a “Refinancing Agreement”) effecting a refinancing of  Indebtedness incurred or outstanding pursuant or relating to, or that otherwise extends, renews, refunds, refinances  or replaces, any agreement or instrument referred to in Subsection 8.8(a), Subsection 8.8(b) or this Subsection 8.8(c)  (an “Initial Agreement”) or that is, or is contained in, any amendment, supplement or other modification to an Initial  Agreement or Refinancing Agreement (an “Amendment”); provided, however, that the encumbrances and  restrictions contained in any such Refinancing Agreement or Amendment taken as a whole are not materially less  favorable to the Lenders than encumbrances and restrictions contained in the Initial Agreement or Initial  Agreements to which such Refinancing Agreement or Amendment relates (as determined in good faith by the Parent  Borrower);  (d) (i) pursuant to any agreement or instrument that restricts in a customary manner the assignment or  transfer thereof, or the subletting, assignment or transfer of any property or asset subject thereto, (ii) by virtue of any  transfer of, agreement to transfer, option or right with respect to, or Lien on, any property or assets of Ultimate  

 

  131  Parent or any Restricted Subsidiary not otherwise prohibited by this Agreement, (iii) pursuant to mortgages, pledges  or other security agreements securing Indebtedness or other obligations of the Ultimate Parent or a Restricted  Subsidiary to the extent restricting the transfer of the property or assets subject thereto, (iv) pursuant to customary  provisions restricting dispositions of real property interests set forth in any reciprocal easement agreements of  Ultimate Parent or any Restricted Subsidiary, (v) pursuant to Purchase Money Obligations that impose  encumbrances or restrictions on the property or assets so acquired, (vi) pursuant to any agreement with customers or  suppliers entered into in the ordinary course of business that impose restrictions with respect to cash or other  deposits or net worth or inventory, (vii) pursuant to customary provisions contained in agreements and instruments  entered into in the ordinary course of business (including but not limited to leases and licenses) or in joint venture  and other similar agreements, or in shareholder, partnership, limited liability company and other similar agreements  in respect of non-Wholly Owned Restricted Subsidiaries, (viii) restrictions that arise or are agreed to in the ordinary  course of business and do not detract from the value of property or assets of Ultimate Parent or any Restricted  Subsidiary in any manner material to the Ultimate Parent or such Restricted Subsidiary, (ix) pursuant to Interest  Rate Protection Agreements, Hedging Agreements or other Permitted Hedging Arrangements or under Bank  Products Agreements or (x) that arises under the terms of documentation governing any factoring agreement or any  similar arrangements that in the good faith determination of the Parent Borrower are necessary or appropriate to  effect such factoring agreement or similar arrangements;  (e) pursuant to any agreement or instrument (i) relating to any Indebtedness permitted to be incurred  subsequent to the Closing Date pursuant to Subsection 8.13, (x) if the encumbrances and restrictions contained in  any such agreement or instrument taken as a whole are not materially less favorable to the Lenders than the  encumbrances and restrictions contained in the Initial Agreements (as determined in good faith by the Parent  Borrower), or (y) if such encumbrance or restriction is not materially more disadvantageous to the Lenders than is  customary in comparable financings (as determined in good faith by the Parent Borrower) and either (1) the Parent  Borrower determines in good faith that such encumbrance or restriction will not materially affect the Parent  Borrower’s ability to create and maintain the Liens on the ABL Priority Collateral pursuant to the Security  Documents and perform its obligations under this Agreement and the other Loan Documents, including the making  of any principal or interest payments on the Loans or (2) such encumbrance or restriction applies only if a default  occurs in respect of a payment or financial covenant relating to such Indebtedness, or (ii) relating to any sale of  receivables by or Indebtedness of a Foreign Subsidiary (other than a Subsidiary Guarantor) to the extent permitted  hereunder;  (f) pursuant to any agreement relating to intercreditor arrangements and related rights and obligations,  to or by which the Administrative Agent, the Collateral Agent or any other agent, trustee or representative of the  Lenders may be party or bound at any time or from time to time, and any agreement providing that in the event that  a Lien is granted for the benefit of the Lenders another Person shall also receive a Lien, which Lien is permitted by  Subsection 8.14;   (g) by reason of any applicable law, rule, regulation or order, or required by any regulatory authority  having jurisdiction over any of Ultimate Parent, Holdings, the Parent Borrower or any of the Parent Borrower’s  Restricted Subsidiaries or any of their respective businesses, including any such law, rule, regulation, order or  requirement applicable in connection with such Restricted Subsidiary’s status (or the status of any Subsidiary of  such Restricted Subsidiary) as a Captive Insurance Subsidiary;  (h) pursuant to any agreement for the direct or indirect disposition of Capital Stock of any Person,  property or assets, imposing restrictions with respect to such Person, Capital Stock, property or assets pending the  closing of such disposition, in each case pursuant to a transaction permitted hereunder; and  (i) after the Closing Date, any agreement governing or relating to Indebtedness and/or other  obligations and liabilities secured by a Lien permitted by Subsection 8.14 (in which case any restriction shall only be  effective against the assets subject to such Lien, except as may be otherwise permitted under this Subsection 8.8).  8.9 Limitation on Lines of Business. Enter into any business, either directly or through any Restricted  Subsidiary, except for those businesses of the same general type as those in which Ultimate Parent and its Restricted  

 

  132  Subsidiaries are engaged in on the Closing Date or which are reasonably related thereto and any business related  thereto.  8.10 Limitations on Currency, Commodity and Other Hedging Transactions. Enter into, purchase or  otherwise acquire agreements or arrangements relating to currency, commodity or other hedging (each a “Hedging  Arrangement”) except, to the extent and only to the extent, that such Hedging Agreements or other agreements or  arrangements are entered into with, or such currency or commodity is purchased or otherwise acquired in the  ordinary course of business of Ultimate Parent or any of its Restricted Subsidiaries through, reputable financial  institutions or vendors other than for purposes of speculation (any such Hedging Agreement, agreement or  arrangement, or purchase or acquisition permitted by this Subsection 8.10, a “Permitted Hedging Arrangement”).  8.11 Limitations on Transactions with Affiliates. Except as otherwise expressly permitted in this  Agreement, enter into any transaction, including any purchase, sale, lease or exchange of property or the rendering  of any service, with any Affiliate which involves aggregate consideration in excess of $15,000,000 unless such  transaction is (A) not otherwise prohibited under this Agreement, and (B) upon terms not materially less favorable to  Ultimate Parent or such Restricted Subsidiary, as the case may be, than those that could be obtained at the time in a  comparable arm’s length transaction with a Person which is not an Affiliate; provided that nothing contained in this  Subsection 8.11 shall be deemed to prohibit:  (a) (1) the Ultimate Parent or any Restricted Subsidiary from entering into, modifying, maintaining or  performing any consulting, management, compensation, collective bargaining, benefits or employment agreements,  related trust agreement or other compensation arrangements with a current or former management member, director,  officer, employee or consultant of or to the Ultimate Parent or such Restricted Subsidiary or any Parent Entity in the  ordinary course of business, including vacation, health, insurance, deferred compensation, severance, retirement,  savings, or other similar plans, programs or arrangements, (2) payments, compensation, performance of  indemnification or contribution obligations, the making or cancellation of loans in the ordinary course of business to  any such management members, employees, officers, directors or consultants, (3) any issuance, grant or award of  stock, options, other equity related interests or other equity securities, to any such management members, employees,  officers, directors or consultants, (4) the payment of reasonable fees to directors of the Ultimate Parent or any of its  Subsidiaries or any Parent Entity (as (i) approved by the Board of Directors of the Borrower Representative or any  Parent Entity (including the compensation committee thereof) or (ii) in the ordinary course of business), or (5)  Management Advances and payments in respect thereof (or in reimbursement of any expenses referred to in the  definition of such term);  (b) the payment of all amounts in connection with this Agreement or any of the Transactions;  (c) any customary transactions with a  Receivables Subsidiary in connection with a Receivables  Facility permitted pursuant to this Agreement;  (d) any issuance or sale of Capital Stock of Holdings or any Parent Entity or capital contribution to  the Parent Borrower or any Restricted Subsidiary;  (e) the execution, delivery and performance of any Tax Sharing Agreement;  (f) the execution, delivery and performance of agreements or instruments set forth on Schedule 8.11;  (g) (i) any transaction among any of Ultimate Parent and one or more Loan Parties, (ii) any  transaction permitted by clause (c), (d), (f), (g), (h), (i), (j), (l) or (m) of Subsection 8.12 (provided that any  transaction pursuant to clause (l) or (m) shall be limited to guarantees of loans and advances by third parties),  (iii) any transaction permitted by Subsection 8.2 or 8.3 or specifically excluded from the definition of Restricted  Payment and (iv) any transaction permitted by (f)(i), (f)(ii), (f)(iii), (f)(vii), (f)(viii) or (j) of Subsection 8.13; and  (h) any transaction in the ordinary course of business, or approved by a majority of the Board of  Directors of the Ultimate Parent, between Ultimate Parent or any Restricted Subsidiary and any Affiliate of the  

 

  133  Parent Borrower controlled by the Ultimate Parent that is a joint venture or similar entity; provided that the  aggregate amount of payments made or consideration provided in respect of all such transactions shall not exceed  $15,000,000 per Fiscal Year.  For purposes of this Subsection 8.11, (i) any transaction with any Affiliate shall be deemed to have satisfied  the standard set forth in clause (B) of the first sentence hereof if (x) such transaction is approved by a majority of the  Disinterested Directors of the board of directors of the Ultimate Parent, or (y) in the event that at the time of any  such transaction, there are no Disinterested Directors serving on the board of directors of the Ultimate Parent, such  transaction shall be approved by a nationally recognized expert with expertise reasonably acceptable to the  Administrative Agent (it being understood and agreed that each of Houlihan Lokey, Duff & Phelps, Alvarez &  Marsal and Evercore shall be deemed acceptable to the Administrative Agent) in appraising the terms and conditions  of the type of transaction for which approval is required and (ii) “Disinterested Director” shall mean, with respect to  any Person and transaction, a member of the board of directors of such Person who does not have any material direct  or indirect financial interest in or with respect to such transaction; it being understood that a member of any such  Board of Directors shall not be deemed to have such a financial interest by reason of such member holding Capital  Stock of the Parent Borrower or any Parent Entity or any options, warrants or other rights in respect of such Capital  Stock.  8.12 Limitations on Investments. Make or maintain, directly or indirectly, any Investment except for  the following (collectively, “Permitted Investments”):  (a) in addition to Investments permitted pursuant to clauses (b) through (z) below, other Investments;  provided that on the date of such Permitted Investment, after giving effect thereto, (x) (1) 30-Day Specified  Availability (divided by Availability on such date and expressed as a percentage) and (2) Specified Availability  (divided by Availability on such date and expressed as a percentage) each exceed 12.5% and (y) unless 30-Day  Specified Availability (divided by Availability on such date and expressed as a percentage) exceeds 17.5%, Ultimate  Parent shall be in Pro Forma Compliance with a minimum Consolidated Fixed Charge Coverage Ratio of at least  1.00:1.00;  (b) Investments in accounts, payment intangibles and chattel paper (each as defined in the UCC),  notes receivable, extensions of trade credit and similar items arising or acquired in the ordinary course of business  consistent with the past practice of the Ultimate Parent and its Restricted Subsidiaries;  (c) Investments in cash, Cash Equivalents, Temporary Cash Investments and Investment Grade  Securities;  (d) Investments existing or made pursuant to legally binding written commitments in existence on the  Closing Date and set forth on Schedule 1.1(f);  (e) Investments by any Loan Party in any other Loan Party (other than Holdings); provided, however,  that if any such Investment is in the form of intercompany Indebtedness, such Indebtedness shall not be secured by  any Lien and investments in Holdings in amounts and for purposes for which dividends are permitted under  Subsection 8.3;   (f) Investments received in settlement amounts due to the Ultimate Parent or any Restricted  Subsidiary of the Ultimate Parent effected in the ordinary course of business;  (g) Investments by any Non-Loan Party in any other Non-Loan Party;  (h) Investments by Loan Parties in any Non-Loan Parties; provided, however, that (i) the aggregate  outstanding amount at any time of all intercompany Investments made pursuant to this clause (g) in any Fiscal Year  shall not exceed $12,500,000 during such Fiscal Year; provided further that amounts unused in any Fiscal Year may  be carried forward and used to make Investments in succeeding Fiscal Years in an amount not to exceed  $25,000,000 in the aggregate in any one Fiscal Year and (ii) in lieu of the Investments permitted by this clause (g),  

 

  134  any Restricted Payment from Loan Parties to Non-Loan Parties may be made in amounts not exceeding the available  limit as determined pursuant to this clause (g) (with a corresponding reduction in such limit as a result thereof);  (i) Investments by any Non-Loan Party in any Loan Party (other than Holdings); provided, however,  that if any such Investment is in the form of intercompany Indebtedness, such Indebtedness shall not be secured any  Lien;  (j) Investments by any Loan Party in any Non-Loan Party to the extent substantially concurrent with,  and in any event within three (3) Business Days of, such Investment, a corresponding cash Investment or Restricted  Payment is made from such Non-Loan Party, directly or indirectly, to a Loan Party;  (k) any Investment constituting or acquired in connection with a Permitted Acquisition, including any  Investment in the form of a capital contribution or intercompany Indebtedness among Ultimate Parent, Holdings, the  Parent Borrower and their respective Subsidiaries for the purpose of consummating a Permitted Acquisition;  (l) (i) Investments in Ultimate Parent, Holdings or any Parent Entity in lieu of the Restricted  Payments permitted by Subsection 8.3(j); and (ii) other Investments made in connection with the Transactions;  (m) loans and advances (and guarantees of loans and advances by third parties) made to officers,  directors, employees, management members or consultants of any Parent Entity or the Parent Borrower or any of its  Restricted Subsidiaries, and Guarantee Obligations of the Ultimate Parent or any of its Restricted Subsidiaries in  respect of obligations of officers, directors, employees, management members and consultants of any Parent Entity  or the Parent Borrower or any of its Restricted Subsidiaries, in each case (i) in the ordinary course of business (other  than in connection with the Management Subscription Agreement), (ii) existing on the Closing Date and described  on Schedule 1.1(g), (iii) in respect of travel, entertainment or moving related expenses in the ordinary course of  business, (iv) made for other purposes in an aggregate principal amount not to exceed $3,750,000 at any time  outstanding or (v) relating to indemnification or reimbursement of any officers, directors or employees in respect of  liabilities relating to their serving in any such capacity; in each case other than any loans or advances to any director  or executive officer (or equivalent thereof) that would be in violation of Section 402 of the United States Sarbanes- Oxley Act of 2002; provided, however, that with respect to any employee of any Parent Entity, no such loans or  advances shall be permitted unless the activities of such employee relate primarily to the Parent Borrower and its  Restricted Subsidiaries;  (n) loans and advances (and guarantees of loans and advances by third parties) made to Management  Investors in connection with the purchase by such Management Investors of Capital Stock of any Restricted  Subsidiary, the Parent Borrower or any Parent Entity (so long as, in the case of any purchase of Capital Stock of any  Parent Entity, such Parent Entity applies an amount equal to the Net Proceeds of such purchases to, directly or  indirectly, make capital contributions to, or purchase Capital Stock of, the Parent Borrower or applies such proceeds  to pay Parent Entity Expenses) of up to $15,000,000 outstanding at any one time and promissory notes of  Management Investors acquired in connection with the issuance of Management Stock to such Management  Investors;  (o) Investments of the Ultimate Parent and its Restricted Subsidiaries under Interest Rate Protection  Agreements, Hedging Agreements or other Permitted Hedging Arrangements;  (p) Investments in the nature of pledges or deposits (x) with respect to leases or (y) utilities provided  to third parties in the ordinary course of business or (y) otherwise described in the definition of “Customary  Permitted Liens” in Subsection 8.14(c) or made in connection with Liens permitted under Subsection 8.14;  (q) Investments representing non-cash consideration received by the Ultimate Parent or any of its  Restricted Subsidiaries in connection with any Disposition, provided that any such non-cash consideration received  by any Loan Party is pledged to the Collateral Agent for the benefit of the Secured Parties pursuant to the Security  Documents as and to the extent provided for therein;  

 

  135  (r) Investments by the Ultimate Parent or any of its Restricted Subsidiaries in a Person in connection  with a joint venture or similar arrangement; provided that (i) the aggregate amount of such Investments outstanding  pursuant to this clause (r) do not exceed $25,000,000 at any time and (ii) the Ultimate Parent or such Restricted  Subsidiary complies with the provisions of Subsections 7.9(b) and (c) hereof, if applicable, with respect to such  ownership interest;  (s) Investments in industrial development or revenue bonds or similar obligations secured by assets  leased to and operated by the Ultimate Parent or any of its Restricted Subsidiaries that were issued in connection  with the financing of such assets, so long as the Ultimate Parent or any such Restricted Subsidiary may obtain title to  such assets at any time by optionally canceling such bonds or obligations, paying a nominal fee and terminating such  financing transaction;  (t) Investments representing evidences of Indebtedness, securities or other property received from  another Person by the Ultimate Parent or any of its Restricted Subsidiaries in connection with any bankruptcy  proceeding or other reorganization of such other Person or as a result of foreclosure, perfection or enforcement of  any Lien or exchange for evidences of Indebtedness, securities or other property of such other Person held by the  Ultimate Parent or any of its Restricted Subsidiaries; provided that any such securities or other property received by  any Loan Party is pledged to the Collateral Agent for the benefit of the Secured Parties pursuant to the Security  Documents as and to the extent required thereby;  (u) Investments in or by any Receivables Subsidiary, or in connection with a Receivables Facility by,  to, in or in favor of any Receivables Subsidiary,  including Investments of funds held in accounts permitted or  required by the arrangements governing such Receivables Facility or any related Indebtedness;  (v) any Investment to the extent not exceeding the Available Excluded Contribution Amount Basket;  (w) other Investments in an aggregate amount outstanding at any time not to exceed an amount equal  to the greater of $50,000,000 and 10.0% of EBITDA for the period of four Fiscal Quarters most recently ended for  which financial statements have been or are required to have been delivered pursuant to Subsection 7.1(a) or 7.1(b)  prior to the date of determination;  (x) any Investment to the extent made using Capital Stock of the Parent Borrower (other than  Disqualified Capital Stock), or Capital Stock of any Parent Entity, as consideration;  (y) Management Advances;   (z) any Investment by any Captive Insurance Subsidiary in connection with the provision of insurance  to Ultimate Parent, Holdings, the Parent Borrower or any of its Subsidiaries, which Investment is made in the  ordinary course of business of such Captive Insurance Subsidiary, or by reason of applicable law, rule, regulation or  order, or that is required or approved by any regulatory authority having jurisdiction over such Captive Insurance  Subsidiary or its business, as applicable; and  (aa) Investments consisting of purchases or other acquisitions of inventory, supplies, services, material  or equipment or the licensing or contribution of intellectual property pursuant to joint marketing arrangements with  other Persons, in each case in the ordinary course of business.  For purposes of determining compliance with Subsection 8.12, (i) in the event that any Investment meets  the criteria of more than one of the types of Investments described in clauses (a) through (z) above, the Parent  Borrower, in its sole discretion, shall classify such item of Investment and may include the amount and type of such  Investment in one or more of such clauses (including in part under one such clause and in part under another such  clause) and (ii) the amount of any Investment made or outstanding at any time under clause (g), (m) or (q) shall be  the original cost of such Investment, reduced (at the Parent Borrower’s option) by any dividend, distribution, interest  payment, return of capital, repayment or other amount or value received in respect of such Investment.  

 

  136  8.13 Limitations on Indebtedness. Directly or indirectly create, incur, assume or otherwise become or  remain directly or indirectly liable with respect to any Indebtedness except for the following (collectively,  “Permitted Indebtedness”):  (a) Indebtedness of the Ultimate Parent, Parent Borrower, any of its Restricted Subsidiaries or any  Escrow Subsidiary incurred pursuant to the Term Loan Credit Facility, any Additional Obligations Documents or  any Rollover Indebtedness, in an aggregate principal amount not to exceed $852,000,000 plus the Maximum  Incremental Facilities Amount;  (b) Indebtedness of Ultimate Parent or any of its Restricted Subsidiaries incurred pursuant to this  Agreement and the other Loan Documents (including, without limitation, any Accordion Facility, Extension or any  Credit Agreement Refinancing Indebtedness);  (c) Secured Ratio Indebtedness;  (d) Indebtedness (other than Indebtedness permitted by clauses (a) through (c) above) existing on the  Closing Date, and disclosed on Schedule 8.13(d) (together with any renewal, extension, refinancing or refunding  pursuant to clause (i) below);  (e) Indebtedness of the Ultimate Parent or any Restricted Subsidiary to the Ultimate Parent or any  other Restricted Subsidiary;  (f) Guarantee Obligations incurred by:  (i) Ultimate Parent or any of its Restricted Subsidiaries in respect  of Indebtedness of a Loan Party that is permitted hereunder; provided that Guarantee Obligations  in respect of Indebtedness permitted pursuant to clauses (a), (c) and (m) shall be permitted only  to the extent that such Guarantee Obligations are incurred by Guarantors (other than, in the case  of clause (m), Guarantee Obligations incurred by any Foreign Subsidiary that is not a Guarantor);  (ii) in respect of lease obligations of Non-Loan Parties (to the  extent such lease obligations constitute Indebtedness);  (iii) a Loan Party (other than Holdings) in respect of a Non-Loan  Party;  (iv) a Non-Loan Party in respect of Indebtedness of another Non- Loan Party that is permitted hereunder;  (v) Ultimate Parent or any of its Restricted Subsidiaries in respect  of Indebtedness of any Person (other than Ultimate Parent or any of its Restricted Subsidiaries)  up to a maximum aggregate principal amount at any time outstanding not exceeding the greater  of $25,000,000 and 8.00% of EBITDA for the period of four Fiscal Quarters most recently ended  for which financial statements have been or are required to have been delivered pursuant to  Subsection 7.1(a) or 7.1(b) prior to the date of determination;  (vi) in connection with sales or other dispositions permitted under  Subsection 8.5, including indemnification obligations with respect to leases, and guarantees of  collectability in respect of accounts receivable or notes receivable for up to face value;  (vii) consisting of accommodation guarantees for the benefit of trade  creditors of the Ultimate Parent or any of its Restricted Subsidiaries in the ordinary course of  business;  

 

  137  (viii) in respect of Investments expressly permitted pursuant to  clauses (l), (m) or (y) of the definition of “Permitted Investments”;  (ix) in respect of third-party loans and advances to officers or  employees of any Parent Entity or the Parent Borrower or any of its Restricted Subsidiaries  permitted pursuant to clause (l) or (m) of the definition of “Permitted Investments”;  (x) in respect of Reimbursement Obligations in respect of Letters  of Credit or with respect to reimbursement obligations in respect of any other letters or credit  permitted under this Agreement;  (xi) in respect of performance, bid, appeal, surety, judgment,  replevin and similar bonds, other suretyship arrangements, other similar obligations and letters of  credit, bankers' acceptances or similar instruments or obligations, all in, or relating to liabilities or  obligations incurred in, the ordinary course of business; and  (xii) in respect of Indebtedness or other obligations of a Person in  connection with a joint venture or similar arrangement in respect of which the aggregate  outstanding amount of such Indebtedness, together with the aggregate amount of Investments  permitted pursuant to clause (r) of the definition of “Permitted Investments” the Dollar  Equivalent of which does not exceed $50,000,000;  provided, however, that if any Indebtedness referred to in clauses (i) through (iv) above is subordinated in right of  payment to the Obligations or is secured by Liens that are senior or subordinate to any Liens securing the Collateral,  then any corresponding Guarantee Obligations shall be subordinated and the Liens securing the corresponding  Guarantee Obligations shall be senior or subordinate to substantially the same extent;  (g) Financing Lease Obligations and Indebtedness incurred by the Ultimate Parent or a Restricted  Subsidiary of the Parent Borrower to finance the acquisition, leasing, construction or improvement of fixed assets;  provided, however, that (i) the aggregate outstanding principal amount of all such Financing Lease Obligations and  Indebtedness (together with any renewal, extension, refinancing or refunding pursuant to clause (i) below) shall not  exceed the greater of (x) $75,000,000 and (y) 5.00% of Consolidated Total Assets at any time and (ii) such  Financing Lease Obligations and Indebtedness shall be incurred prior to or within 180 days of such acquisition or  leasing or completion of construction or improvement of such assets;  (h) Indebtedness of any Foreign Subsidiary in an aggregate principal amount at any time outstanding  for all Foreign Subsidiaries not exceeding the greater of (x) (A) $75,000,000 and (B) 24.00% of EBITDA for the  period of four Fiscal Quarters most recently ended for which financial statements have been or are required to have  been delivered pursuant to Subsection 7.1(a) or 7.1(b) prior to the date of determination (provided that an additional  $25,000,000 of such Indebtedness shall be permitted to be outstanding at any time in connection with overdraft and  similar facilities) and (y) an amount equal to (A) the Foreign Borrowing Base plus (B) in the event of any  refinancing of any Indebtedness incurred under this clause (y), the aggregate amount of fees, underwriting discounts,  premiums and other costs and expenses (including accrued and unpaid interest) incurred or payable in connection  with such refinancing;  (i) renewals, extensions, refinancings, replacements and refundings of Indebtedness (in whole or in  part) permitted by:  (i) clause (d) or (g) above or this clause (i)(i); provided, however,  that (A) any such renewal, extension, refinancing or refunding is in an aggregate principal  amount not greater than the principal amount (or accreted value, if applicable) of such  Indebtedness so renewed, extended, refinanced or refunded (plus accrued interest, any premium  and reasonable commission, fees, underwriting discounts and other costs and expenses incurred  in connection with such refinanced Indebtedness) and (B) such Indebtedness has a weighted  

 

  138  average life to maturity no shorter than the remaining weighted average life to maturity of the  Indebtedness so renewed, extended, refinanced or refunded; and  (ii) clause (a), (c),  (k) or (o) hereof or this clause (i)(ii); provided,  however, that (A) any such renewal, extension, refinancing or refunding is in an aggregate  principal amount not greater than the principal amount (or accreted value, if applicable) of such  Indebtedness so renewed, extended, refinanced or refunded (plus accrued interest, any premium  and reasonable commission, fees, underwriting discounts and other costs and expenses, incurred  in connection with such refinanced Indebtedness), (B) no Loan Party that is not obligated with  respect to repayment of such Indebtedness that is renewed, extended, refinanced or refunded  immediately prior to the time of such renewal, extension, refinancing or refunding is required to  become obligated with respect thereto (other than any Person that becomes a Loan Party and is  created or acquired on or after the date of such renewal, extension, refinancing or refunding),  (C) if the Indebtedness that is renewed, extended, refinanced or refunded was subordinated in  right of payment to the Obligations, then the terms and conditions of the renewal, extension,  refinancing or refunding must include subordination terms and conditions that are at least as  favorable to the Lenders as those that were applicable to the renewed, extended, refinanced or  refunded Indebtedness and (D) such Indebtedness has (x) a Stated Maturity date that is (i) at least  91 days after the Termination Date and (ii) not earlier than the Stated Maturity date of the  Indebtedness that is renewed, extended, refinanced or refunded and (y) a weighted average life, at  the time of issuance or incurrence, of not less than the remaining weighted average life of the  Indebtedness that is renewed, extended, refinanced or refunded;  (j) Indebtedness of the Ultimate Parent or any Restricted Subsidiary to the Ultimate Parent or any of  its Subsidiaries to the extent the Investment in such Indebtedness is not restricted by Subsection 8.12;  (k) Indebtedness pursuant to any Vendor Financing Arrangement;  (l) Indebtedness incurred under any agreement pursuant to which a Person provides cash management  services or similar financial accommodations to the Parent Borrower or any of its Restricted Subsidiaries;  (m) [reserved];  (n) [reserved];  (o) Indebtedness incurred or assumed in connection with, or as a result of, a Permitted Acquisition so  long as:  (i) with respect to any newly incurred Indebtedness, such Indebtedness is secured only by property of the  acquired company or other assets to the extent otherwise permitted hereunder, (ii) Ultimate Parent would be in  compliance, on a Pro Forma Basis after giving effect to the consummation of such acquisition and the incurrence or  assumption of such Indebtedness, with Subsection 8.1 recomputed as of the last day of the most recently ended  fiscal quarter of Ultimate Parent for which financial statements are available, whether or not compliance with  Subsection 8.1 is otherwise required at such time (it being understood that, as a condition precedent to the  effectiveness of any such incurrence or assumption, the Borrower Representative shall deliver to the Administrative  Agent a certificate of a Responsible Officer setting forth in reasonable detail the calculations demonstrating such  compliance), (iii) before and after giving effect thereto, no Specified Default or any other Event of Default known to  the Borrowers has occurred and is continuing, and (iv) with respect to any newly incurred Indebtedness, such  Indebtedness does not have any maturity, amortization, redemption or similar requirement prior to the date that is 91  days after the Termination Date (other than (x) mandatory prepayments with proceeds of and exchanges for  refinancing Indebtedness in respect thereof permitted hereunder or (y) an earlier maturity date and/or higher  amortization rate for customary bridge financings, which, subject to customary conditions, would either be  automatically converted into or required to be exchanged for permanent financing which does not provide for a  maturity date prior to the date that is 91 days after the Termination Date or an amortization rate greater than 1.0%  per annum prior to the date that is 91 days after the Termination Date and other mandatory prepayments with  proceeds of and exchanges for refinancing Indebtedness in respect thereof permitted hereunder);  

 

  139  (p) Indebtedness of Ultimate Parent or any of its Restricted Subsidiaries incurred to finance insurance  premiums in the ordinary course of business;  (q) Indebtedness (A) arising from the honoring of a check, draft or similar instrument against  insufficient funds in the ordinary course of business or (B) to the extent such Indebtedness is unsecured, consisting  of guarantees, indemnities, obligations in respect of earn-outs or other purchase price adjustments, or similar  obligations, incurred in connection with a Permitted Acquisition or disposition of any business, assets or Person  permitted hereunder; provided, that the aggregate principal amount of Indebtedness described in clause (B)  outstanding at any time shall not exceed $25,000,000;  (r) Indebtedness of Ultimate Parent or any of its Restricted Subsidiaries in respect of Financing  Leases which have been funded solely by Investments of Ultimate Parent and its Restricted Subsidiaries permitted  under clause (r) of the definition of “Permitted Investments”;  (s) Indebtedness of the Ultimate Parent or any of its Restricted Subsidiaries arising in connection with  industrial development or revenue bonds or similar obligations secured by property or assets leased to and operated  by the Ultimate Parent or such Restricted Subsidiary that were issued in connection with the financing or refinancing  of such property or assets, provided that the aggregate principal amount of such Indebtedness outstanding at any  time shall not exceed $50,000,000;  (t) Indebtedness of the Ultimate Parent or any of its Restricted Subsidiaries in respect of obligations  evidenced by bonds, debentures, notes or similar instruments issued as payment-in-kind interest payments in respect  of Indebtedness otherwise permitted hereunder;  (u) accretion of the principal amount of Indebtedness of the Ultimate Parent or any of its Restricted  Subsidiaries otherwise permitted hereunder issued at any original issue discount;  (v) Indebtedness of the Ultimate Parent and its Restricted Subsidiaries under Interest Rate Protection  Agreements and under Permitted Hedging Arrangements;  (w) Indebtedness of the Ultimate Parent or any of its Restricted Subsidiaries in respect of any Sale and  Leaseback Transaction;  (x) Indebtedness in respect of any letters of credit issued in favor of any Issuing Lender or the  Swingline Lender to support any Defaulting Lender’s participation in Letters of Credit or Swingline Loans as  provided for in Subsection 3.4, in each case to the extent not exceeding the maximum amount of such participations;  (y) other Indebtedness of Ultimate Parent or any of its Restricted Subsidiaries in an aggregate  principal amount at any time outstanding not exceeding (when incurred or assumed) the greater of (i) $135,000,000  and (ii) the amount equal to 8.25% of Consolidated Total Assets as of the Fiscal Quarter most recently ended for  which financial statements have been or are required to have been delivered pursuant to Subsection 7.1(a) or 7.1(b)  prior to the date of determination; provided that Indebtedness incurred pursuant to subclause (ii) shall not cease to be  permitted under this clause (y) solely because of a later decrease in Consolidated Total Assets;  (z) unsecured Indebtedness of Ultimate Parent and its Restricted Subsidiaries; and  (aa) Indebtedness incurred in connection with any Receivables Facility; provided that, at the time such  Receivables Facility was first entered into, before and after giving effect thereto, no Default or Event of Default has  occurred and is continuing.   For purposes of determining compliance with and the outstanding principal amount of any  particular Indebtedness (including Guarantee Obligations) incurred pursuant to and in compliance with, this  Subsection 8.13, (i) in the event that any Indebtedness (including Guarantee Obligations) meets the criteria of more  

 

  140  than one of the types of Indebtedness (including Guarantee Obligations) described in one or more clauses of this  Subsection 8.13, the Parent Borrower, in its sole discretion, shall classify such item of Indebtedness and may include  the amount and type of such Indebtedness in one or more of the clauses of this Subsection 8.13 (including in part  under one such clause and in part under another such clause), provided that, at the election of the Parent Borrower  pursuant to written notice to the Administrative Agent, any Indebtedness incurred and outstanding pursuant to the  Cash Capped Incremental Facility or the Voluntary Prepayment Incremental Facility shall cease to be deemed  incurred or outstanding for purposes of such definition and shall instead be deemed incurred and outstanding  pursuant to the Ratio Incremental Facility from and after the first date on which the Parent Borrower so notifies the  Administrative Agent that it could have incurred such Indebtedness under the Ratio Incremental Facility without  reliance on the Cash Capped Incremental Facility or the Voluntary Prepayment Incremental Facility; (ii) the amount  of any Indebtedness denominated in any currency other than Dollars shall be calculated based on customary  currency exchange rates in effect, in the case of such Indebtedness incurred (in respect of term Indebtedness) or  committed (in respect of revolving Indebtedness), on the date that such Indebtedness was incurred (in respect of  term Indebtedness) or committed (in respect of revolving Indebtedness); provided that if such Indebtedness is  incurred to refinance other Indebtedness denominated in a currency other than Dollars (or in a different currency  from the Indebtedness being refinanced), and such refinancing would cause the applicable Dollar-denominated  restriction to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such  refinancing, such Dollar-denominated restriction shall be deemed not to have been exceeded so long as the principal  amount of such refinancing Indebtedness does not exceed (1) the outstanding or committed principal amount, as  applicable, of such Indebtedness being refinanced plus (2) the aggregate amount of fees, underwriting discounts,  premiums and other costs and expenses (including accrued and unpaid interest) incurred or payable in connection  with such refinancing, (iii) if any Indebtedness is incurred to refinance Indebtedness initially incurred in reliance on  a basket measured by reference to a percentage of Consolidated Total Assets at the time of incurrence, and such  refinancing would cause the percentage of Consolidated Total Assets restriction to be exceeded if calculated based  on the Consolidated Total Assets on the date of such refinancing, such percentage of Consolidated Total Assets  restriction shall not be deemed to be exceeded so long as the principal amount of such refinancing Indebtedness does  not exceed the principal amount of such Indebtedness being refinanced, plus the aggregate amount of fees,  underwriting discounts, premiums and other costs and expenses (including accrued and unpaid interest) incurred or  payable in connection with such refinancing, (iv) the amount of Indebtedness issued at a price that is less than the  principal amount thereof shall be equal to the amount of the liability in respect thereof determined in accordance  with GAAP; (v) the principal amount of Indebtedness outstanding under any subclause of Subsection 8.13, including  for purposes of any determination of the “Maximum Incremental Facilities Amount”, shall be determined after  giving effect to the application of proceeds of any such Indebtedness to refinance any such other Indebtedness and  (vi) in the event that the Parent Borrower shall classify Indebtedness incurred on the date of determination as  incurred in part pursuant to Subsection 8.13(a) or Subsection 8.13(b) and clause (ii) of the definition of Maximum  Incremental Facilities Amount or (ii) [reserved], as provided in clause (i) of this paragraph, any calculation of the  Consolidated First Lien Leverage Ratio (as defined in the Term Loan Credit Agreement), including in the definition  of “Maximum Incremental Facilities Amount”, shall not include any such Indebtedness (and shall not give effect to  any discharge of Indebtedness from the proceeds thereof) to the extent incurred pursuant to any such other clause of  Subsection 8.13.  For purposes of determining compliance with any provision of this Subsection 8.13 (or any  category of Permitted Liens described in the definition thereof) measured by a dollar amount or by reference to  EBITDA for the period of four fiscal quarters most recently ended for which financial statements have been or are  required to have been delivered pursuant to Subsection 7.1(a) or 7.1(b) prior to the date of determination or a  percentage of Consolidated Total Assets, in each case, for the incurrence of Indebtedness or Liens securing  Indebtedness denominated in a foreign currency, the Dollar Equivalent principal amount of such Indebtedness  incurred pursuant thereto shall be calculated based on the Spot Rate of Exchange in effect on the date that such  Indebtedness was incurred, in the case of term Indebtedness, or first committed, in the case of revolving or deferred  draw Indebtedness; provided that (x) the Dollar Equivalent principal amount of any such Indebtedness outstanding  on the Closing Date shall be calculated based on the Spot Rate of Exchange in effect on the Closing Date, (y) if such  Indebtedness is incurred to refinance other Indebtedness denominated in a foreign currency (or in a different  currency from such Indebtedness so being incurred), and such refinancing would cause the applicable provision of  this Subsection 8.13 (or category of Permitted Liens) measured by a dollar amount or by reference to EBITDA for  the period of four fiscal quarters most recently ended for which financial statements have been or are required to  have been delivered pursuant to Subsection 7.1(a) or 7.1(b) prior to the date of determination or a percentage of  

 

  141  Consolidated Total Assets, as applicable, to be exceeded if calculated at the Spot Rate of Exchange in effect on the  date of such refinancing, such provision of this Subsection 8.13 (or category of Permitted Liens) measured by a  dollar amount or by reference to EBITDA for the period of four fiscal quarters most recently ended for which  financial statements have been or are required to have been delivered pursuant to Subsection 7.1(a) or 7.1(b) prior to  the date of determination or a percentage of Consolidated Total Assets, as applicable, shall be deemed not to have  been exceeded so long as the principal amount of such refinancing Indebtedness does not exceed (i) the outstanding  or committed principal amount (whichever is higher) of such Indebtedness being refinanced plus (ii) the aggregate  amount of fees, underwriting discounts, premiums and other costs and expenses (including accrued and unpaid  interest) incurred or payable in connection with such refinancing and (z) the Dollar Equivalent principal amount of  Indebtedness denominated in a foreign currency and incurred pursuant to this Agreement, the Term Loan Credit  Facility or any other credit facility shall be calculated based on the Spot Rate of Exchange in effect on, at the Parent  Borrower’s option, (A) the Closing Date, (B) any date on which any of the respective commitments under this  Agreement, the Term Loan Credit Facility or any other credit facility shall be reallocated between or among  facilities or subfacilities hereunder or thereunder, or on which such rate is otherwise calculated for any purpose  thereunder or (C) the date of such incurrence.  The principal amount of any Indebtedness incurred to refinance other  Indebtedness, if incurred in a different currency from the Indebtedness being refinanced, shall be calculated based  on the Spot Rate of Exchange applicable to the currencies in which such respective Indebtedness is denominated that  is in effect on the date of such refinancing.  Notwithstanding anything to the contrary herein, prior to the grant of a security interest to the  Collateral Agent in all of the outstanding Capital Stock of Columbia-MBF, Inc. pursuant to a pledge or security  agreement in form and substance reasonably satisfactory to the Collateral Agent, Allied Luxembourg S.a.r.l. shall  not, directly or indirectly, create, incur, assume or otherwise become or remain directly or indirectly liable with  respect to any Indebtedness for borrowed money (other than (i) that certain Promissory Note made on December 22,  2014 by Allied Luxembourg S.a.r.l. in favor of Columbia-MBF, Inc. and (ii) additional de minimis amounts).  8.14 Limitations on Liens. Create or suffer to exist, any Lien upon or with respect to any of their  respective properties or assets, whether now owned or hereafter acquired, or assign, or permit any of their respective  Restricted Subsidiaries to assign, any right to receive income, except for the following (collectively, “Permitted  Liens”):  (a) Liens (i) created pursuant to the Loan Documents or otherwise securing, directly or indirectly, the  Obligations or other Indebtedness permitted by Subsection 8.13(b), (ii) created pursuant to the Term Loan  Documents, or (iii) created pursuant to any Additional Obligations Documents or any documents entered into in  connection with any Rollover Indebtedness or otherwise securing, directly or indirectly, Additional Obligations,  Rollover Indebtedness or other Indebtedness permitted by Subsection 8.13(a), in the case of clauses (ii) and (iii)  above, (x) in respect of any such Indebtedness permitted to be secured, including, in the case of Indebtedness  incurred under Subsection 8.13(a), to the extent such Indebtedness is permitted to be secured pursuant to the Ratio  Incremental Facility and (y) provided that (A) any such Indebtedness shall be secured on a junior basis with this  Facility with respect to ABL Priority Collateral and on a pari passu or junior basis with the Term Loan Credit  Facility (or any refinancing Indebtedness in respect thereof permitted by the terms of this Agreement) with respect  to Cash Flow Priority Collateral and (B) such Liens remain subject to the Intercreditor Agreement;  (b) Liens existing on the Closing Date and disclosed on Schedule 8.14(b);  (c) Liens of the type listed in this clause (c) (each such Lien, a “Customary Permitted Lien”)  (i) Liens for Taxes, assessments and similar charges or claims  that are not yet delinquent or the nonpayment of which in the aggregate would not reasonably be  expected to have a Material Adverse Effect, or which are being contested in good faith by  appropriate proceedings and adequate reserves with respect thereto are maintained on the books of  Ultimate Parent or its Restricted Subsidiaries, as the case may be, in conformity with GAAP;  (ii) Liens with respect to outstanding motor vehicle fines, liens of  landlords or of mortgagees of landlords arising by statute and liens of suppliers, mechanics,  

 

  142  carriers, materialmen, warehousemen or workmen and other liens imposed by law created in the  ordinary course of business for amounts not known to be overdue for a period of more than 60  days or that are being contested in good faith by appropriate proceedings and with respect to  which adequate reserves or other appropriate provisions are being maintained to the extent  required by GAAP;  (iii) deposits made in the ordinary course of business in connection  with workers’ compensation, unemployment insurance or other types of social security benefits or  other insurance related obligations (including pledges or deposits securing liability to insurance  carriers under insurance or self-insurance arrangements);  (iv) encumbrances arising by reason of zoning restrictions,  easements, licenses, reservations, covenants, rights-of-way, utility easements, building restrictions  and other similar encumbrances on the use of real property not materially detracting from the  value of such real property or not materially interfering with the ordinary conduct of the business  conducted and proposed to be conducted at such real property;  (v) encumbrances arising under leases or subleases, licenses or  sublicenses, or occupancy agreements with respect to real property, whether or not of record and  whether now in existence or hereafter entered into that do not, in the aggregate over all such  encumbrances, materially detract from the value of such real property or interfere with the  ordinary conduct of the business conducted and proposed to be conducted at such real property;  (vi) financing statements with respect to a lessor’s rights in and to  personal property leased to such Person in the ordinary course of such Person’s business;  (vii) Liens, pledges or deposits securing the performance of (x)  bids, contracts (other than for borrowed money), obligations for utilities, leases and statutory or  regulatory obligations, or (y) performance, bid, surety, appeal, judgment, replevin and similar  bonds, other surety arrangements, and other similar obligations, all in, or relating to liabilities or  obligations incurred in, the ordinary course of business;  (viii) Liens arising by reason of any judgment, decree or order of  any court or other Governmental Authority, unless the judgment, decree or order it secures has not,  within 30 days after entry of such judgment, been discharged or execution stayed pending appeal,  or has not been discharged within 30 days after the expiration of any such stay;  (ix) Liens existing on assets or properties at the time of the  acquisition thereof by Ultimate Parent or any of its Restricted Subsidiaries which do not materially  interfere with the use, occupancy, operation and maintenance of structures existing on the property  subject thereto or extend to or cover any assets or properties of Ultimate Parent or such Restricted  Subsidiary other than the assets or property being acquired;   (x) Liens on goods in favor of customs and revenue authorities  arising as a matter of law to secure customs duties in connection with the importation of such  goods; and   (xi) undetermined or inchoate Liens and charges arising or  potentially arising under statutory provisions which have not at the time been filed or registered in  accordance with applicable law or of which written notice has not been duly given in accordance  with applicable law or which although filed or registered, relate to obligations not due or  delinquent, including without limitation statutory Liens incurred, or pledges or deposits made,  under worker’s compensation, employment insurance and other social security legislation.  

 

  143  (d) Liens (including purchase money Liens) granted by Ultimate Parent or any of its Restricted  Subsidiaries (including the interest of a lessor under a Financing Lease and Liens to which any property is subject at  the time, on or after the Closing Date, of Ultimate Parent’s or such Restricted Subsidiary’s acquisition thereof)  securing Indebtedness permitted under Subsection 8.13(g) and limited in each case to the property purchased with  the proceeds of such Indebtedness or subject to such Lien or Financing Lease;  (e) any Lien securing the renewal, extension, refinancing or refunding of any Indebtedness secured by  any Lien permitted by clause (b) or (d) above, clause (l) or (q) below, or this clause (e); provided that (i)  (A) in the  case of any renewal, extension, refinancing or refunding of Indebtedness secured by any Lien permitted by clause (b)  or (d) above (or successive renewals, extensions, refinancings or refundings thereof) such renewal, extension,  refinancing or refunding is made without any change in the class or category of assets or property subject to such  Lien and no such Lien is extended to cover any additional class or category of assets or property, (B) in the case of  any renewal, extension, refinancing or refunding of Indebtedness secured by any Lien permitted by clause (l) below  (or successive renewals, extensions, refinancings or refundings thereof), such Lien does not extend to cover any  other assets or property (other than the proceeds or products thereof and after-acquired property subjected to a Lien  pursuant to terms existing at the time of such acquisition, it being understood that such requirement shall not be  permitted to apply to any property to which such requirement would not have applied but for such acquisition) and  (C) in the case of any renewal, extension, refinancing or refunding of Indebtedness secured by any Lien permitted  by clause (s) or (t) below (or successive renewals, extensions, refinancings or refundings thereof), such Liens do not  encumber any assets or property other than Collateral (with the priority of such Liens in the ABL Priority Collateral  and Cash Flow Priority Collateral or equivalent thereof being no less favorable to the Lenders than the priority set  forth in the Intercreditor Agreement); and (ii) such Liens are in respect of Indebtedness of Ultimate Parent and its  Restricted Subsidiaries permitted by Subsection 8.13(i) and that the principal amount of such Indebtedness is not  increased except as permitted by Subsection 8.13(i);  (f) Liens on assets of any Foreign Subsidiary of Ultimate Parent securing Indebtedness of such  Foreign Subsidiary permitted under Subsection 8.13(h); provided that no such Lien shall extend to any assets of  such Foreign Subsidiary that are included in the calculation of the Borrowing Base;  (g) Liens in favor of lessors securing operating leases permitted hereunder;  (h) statutory or common law Liens or rights of setoff of depository banks or securities intermediaries  with respect to deposit accounts, securities accounts or other funds of Ultimate Parent or any Restricted Subsidiary  maintained at such banks or intermediaries, including to secure fees and charges in connection with returned items  or the standard fees and charges of such banks or intermediaries in connection with the deposit accounts, securities  accounts or other funds maintained by Ultimate Parent or such Restricted Subsidiary at such banks or intermediaries  (excluding any Indebtedness for borrowed money owing by Ultimate Parent or such Restricted Subsidiary to such  banks or intermediaries);  (i) Liens arising out of conditional sale, title retention, consignment or similar arrangements for the  sale of goods entered into by Ultimate Parent or its Restricted Subsidiaries in the ordinary course of business;  (j) Liens securing Indebtedness of Ultimate Parent and its Restricted Subsidiaries permitted by  Subsection 8.13(r);  (k) Liens on the property or assets described in Subsection 8.13(s) in respect of Indebtedness of  Ultimate Parent and its Subsidiaries permitted by Subsection 8.13(s);  (l) Liens securing Indebtedness of Ultimate Parent and its Restricted Subsidiaries permitted by  Subsection 8.13(o) assumed in connection with any Permitted Acquisition (other than Liens on the Capital Stock of  any Person that becomes a Restricted Subsidiary); provided that (i) such Lien was not created in contemplation of  such acquisition or such Person becoming a Restricted Subsidiary, (ii) such Lien does not extend to cover any other  assets or property (other than the proceeds or products thereof and after-acquired property subjected to a Lien  pursuant to terms existing at the time of such acquisition, it being understood that such requirement shall not be  

 

  144  permitted to apply to any property to which such requirement would not have applied but for such acquisition) and  (iii) such Lien shall be created no later than the later of the date of such acquisition or the date of the assumption of  such Indebtedness (other than as permitted by clause (ii) above);  (m) any encumbrance or restriction (including put and call agreements) with respect to the Capital  Stock of any joint venture or similar arrangement pursuant to the joint venture or similar agreement with respect to  such joint venture or similar arrangement;  (n) Liens on intellectual property, including any foreign patents, patent applications, trademarks,  trademark applications, trade names, copyrights, technology, know-how or processes; provided that such Liens  result from the granting of licenses in the ordinary course of business to any Person to use such intellectual property  or such foreign patents, patent applications, trademarks, trademark applications, trade names, copyrights, technology,  know-how or processes, as the case may be;  (o) Liens in respect of Guarantee Obligations permitted under Subsection 8.13(f) relating to  Indebtedness otherwise permitted under Subsection 8.13, to the extent Liens in respect of such Indebtedness are  permitted under this Subsection 8.14;  (p) Liens on assets of Ultimate Parent or any of its Restricted Subsidiaries not otherwise permitted by  the foregoing clauses of this Subsection 8.14 securing obligations or other liabilities of Ultimate Parent or any of its  Restricted Subsidiaries; provided, that the aggregate outstanding amount of all such obligations and liabilities  secured by such Liens (when created) shall not exceed the greater of (i) $65,000,000 and (ii) 4.00% of Consolidated  Total Assets at any time (provided that Liens permitted pursuant to subclause (ii) shall not cease to be permitted  under this clause (p) solely because of a later decrease in Consolidated Total Assets); provided further that any Lien  securing Indebtedness created pursuant to this clause (p) on ABL Priority Collateral shall be junior to the Lien on  ABL Priority Collateral securing the Obligations under this Facility and subject to the terms of the Intercreditor  Agreement or otherwise be on terms reasonably satisfactory to the Administrative Agent;  (q) Liens securing Indebtedness permitted by Subsections 8.13(l) and 8.13(r), provided that (A) to the  extent that the Parent Borrower determines to secure such Indebtedness permitted by Subsection 8.13(l) or 8.13(r)  with a Lien on any ABL Priority Collateral on a basis pari passu in priority with the Liens securing the amounts due  under the Facility and with a higher payment priority pursuant to Subsection 10.15 than clause “eleventh” (Interest  Rate Protection Agreements, Hedging Agreements, other Permitted Hedging Arrangements, Vendor Financing  Arrangements or Cash Management Arrangements otherwise secured under the Security Documents), (x) only in  respect of (i) any Bank Products Agreements constituting such Indebtedness permitted by Subsection 8.13(l) that are  designated as Designated Cash Management Agreements and (ii) any Interest Rate Protection Agreements, Hedging  Agreements or other Permitted Hedging Arrangements constituting such Indebtedness permitted by Subsection  8.13(r) that are designated as Designated Hedging Agreements, in each case in accordance with the terms of  Subsection 11.22, and (y) only to the extent that the other party to such Bank Products Agreement, Interest Rate  Protection Agreement, Hedging Agreement, other Permitted Hedging Arrangement or Vendor Financing  Arrangement, as the case may be, is a Bank Products Affiliate, a Hedging Affiliate or a Vendor Affiliate for the  purposes of the Guarantee and Collateral Agreement;  (r) Liens on Margin Stock, if and to the extent the value of all Margin Stock of Ultimate Parent and  its Subsidiaries exceeds 25% of the value of the total assets subject to Subsection 8.14;  (s) Liens in respect of Indebtedness of Ultimate Parent and its Subsidiaries permitted by Subsection  8.13(i)(i);  (t) Liens in respect of any Secured Ratio Indebtedness; provided that such Liens shall comply with  the priority requirements set forth in clause (ii) of the proviso in the definition of “Secured Ratio Indebtedness”;  (u) [reserved];  

 

  145  (v) Liens on cash and Cash Equivalents securing Indebtedness permitted by Subsection 8.13(v);  provided that upon the termination and non-replacement of such Interest Rate Protection Agreement or Permitted  Hedging Arrangements, such cash and Cash Equivalents are deposited in a Blocked Account or applied to secure  other Indebtedness permitted by Subsection 8.13(v);  (w) Liens on Capital Stock, Indebtedness or other securities of an Unrestricted Subsidiary or any joint  venture that secure Indebtedness or other obligations of such Unrestricted Subsidiary or joint venture, respectively;  (x) Liens securing Indebtedness in respect of any Vendor Financing Arrangement;  (y) Liens securing Indebtedness permitted by Subsection 8.13(w) or (x);  (z) Liens on the Cash Flow Priority Collateral;  (aa) Liens on accounts receivable and assets related to such accounts receivable incurred in connection  with a Receivables Facility permitted under this Agreement; provided that such Liens shall only extend to (x) the  accounts receivables sold by a Receivables Subsidiary and assets related to such accounts receivable and/or (y) the  accounts receivables sold by any Borrower or Restricted Subsidiary to a Receivables Subsidiary and assets related to  such accounts receivable.  For purposes of determining compliance with this Subsection 8.14, (i) a Lien need not be incurred solely by  reference to one category of Permitted Liens described in this Subsection 8.14 but may be incurred under any  combination of such categories (including in part under one such category and in part under any other such  category), (ii) in the event that a Lien (or any portion thereof) meets the criteria of one or more of such categories of  Permitted Liens, the Parent Borrower shall, in its sole discretion, classify or reclassify such Lien (or any portion  thereof) and may include the amount and type of such Lien in one or more of the clauses of this Subsection 8.14, (iii)  if any Liens securing Indebtedness are incurred to refinance Liens securing Indebtedness initially incurred in  reliance on a basket measured by reference to a percentage of Consolidated Total Assets at the time of incurrence,  and such refinancing would cause the percentage of Consolidated Total Assets restriction to be exceeded if  calculated based on the Consolidated Total Assets on the date of such refinancing, such percentage of Consolidated  Total Assets restriction shall not be deemed to be exceeded so long as the principal amount of such Indebtedness  secured by such Liens does not exceed the principal amount of such Indebtedness secured by such Liens being  refinanced, plus the aggregate amount of fees, underwriting discounts, premiums and other costs and expenses  (including accrued and unpaid interest) incurred or payable in connection with such refinancing, (iv) it is understood  that a Lien securing Indebtedness that is permitted by the foregoing provisions of this Subsection 8.14 may secure  Debt Obligations with respect to such Indebtedness, and (v) in the event that the Parent Borrower shall classify  Indebtedness incurred on the date of determination as secured in part pursuant to Subsection 8.14(a) in respect of  Indebtedness incurred pursuant to Subsection 8.13(a) and the Ratio Incremental Facility and in part pursuant to one  or more other clauses of Subsection 8.14, as provided in clause (ii) of this paragraph, any calculation of the  Consolidated First Lien Leverage Ratio (as defined in the Term Loan Credit Agreement), including in the definition  of “Maximum Incremental Facilities Amount”, shall not include any such Indebtedness (and shall not give effect to  any discharge of Indebtedness from the proceeds thereof) to the extent secured pursuant to any such other clause of  Subsection 8.14.  Notwithstanding anything to the contrary herein, prior to the grant of a security interest to the Collateral  Agent in all of the outstanding Capital Stock of Columbia-MBF, Inc. pursuant to a pledge or security agreement in  form and substance reasonably satisfactory to the Collateral Agent, Allied Luxembourg S.a.r.l. shall not, directly or  indirectly, create or suffer to exist any Lien upon or with respect to the outstanding Capital Stock of Columbia-MBF,  Inc.  8.15 Canadian Defined Benefit Pension Plans. Unless the prior written consent of the Administrative  Agent and the Required Lenders has been obtained, (i) establish, maintain, contribute to, sponsor, administer,  assume an obligation to contribute to or otherwise become liable in respect of any Canadian Defined Benefit  Pension Plan, (ii) amalgamate with or acquire an interest in a Person that maintains, contributes to, sponsors or  

 

  146  otherwise has liability for any Canadian Defined Benefit Pension Plan where such action could reasonably be  expected to result in liability to a Loan Party in excess of $3,500,000 or (iii) take any action which could reasonably  be expected to result in the occurrence of a Canadian Pension Termination Event with respect to a Canadian Defined  Benefit Pension Plan where such action could reasonably be expected to result in liability to a Loan Party in excess  of $3,500,000.  SECTION 9 Events of Default  9.1 Events of Default. Any of the following from and after the Closing Date shall constitute an event  of default (an “Event of Default”):  (a) Any of the Borrowers shall fail to pay any principal of any Loan or any Reimbursement  Obligation when due in accordance with the terms hereof (whether at Stated Maturity, by mandatory prepayment or  otherwise); or any of the Borrowers shall fail to pay any interest on any Loan, or any other amount payable  hereunder, within three (3) Business Days after any such interest or other amount becomes due in accordance with  the terms hereof; provided that any non-payment of amounts (other than principal, interest (other than to the extent  an invoice therefor has been provided by the Administrative Agent) or fees payable hereunder or under any other  Loan Documents) resulting from the Borrowers’ good faith payment of an invoice received from the Administrative  Agent in a lesser amount or with the incorrect payment date shall not constitute an Event of Default until the date  that is three (3) Business Days following the date on which the Borrowers have received notice of the occurrence  thereof; or  (b) Any representation or warranty made or deemed made by any Loan Party herein or in any other  Loan Document (or in any amendment, modification or supplement hereto or thereto) or which is contained in any  certificate furnished at any time by or on behalf of any Loan Party pursuant to this Agreement or any such other  Loan Document shall prove to have been incorrect in any material respect on or as of the date made or deemed made;  or  (c) Any Loan Party shall default in the payment, observance or performance of any agreement  contained in Subsection 4.16, Subsection 7.2(f) (after a five (5) Business Day grace period or, if during the  continuance of a Dominion Event, a one Business Day grace period), Subsection 7.11, 7.12 or 7.14 (for each of  Subsection 7.11, 7.12 or 7.14, after a ten (10) Business Day grace period or, if during the continuance of a Dominion  Event, a one (1) Business Day grace period) or Section 8 of this Agreement; provided that, if any such failure with  respect to Subsection 4.16 is (x) of a type that can be cured within five (5) Business Days and (y) such Default could  not materially adversely impact the Lenders’ Liens on the Collateral, such failure shall not constitute an Event of  Default for five Business Days after the occurrence thereof so long as the Loan Parties are diligently pursuing the  cure of such failure; or  (d) Any Loan Party shall default in the observance or performance of any other agreement contained  in this Agreement or any other Loan Document (other than as provided in clauses (a) through (c) of this Section 9),  and such default shall continue unremedied for a period of thirty (30) days after the earlier of (A) the date on which  a Responsible Officer of the Parent Borrower becomes aware of such failure and (B) the date on which written  notice thereof shall have been given to the Parent Borrower by the Administrative Agent or the Required Lenders; or  (e) Any Loan Party or any of its Restricted Subsidiaries shall (i) default in (x) any payment of  principal of or interest in respect of any Indebtedness (excluding the Loans and the Reimbursement Obligations) in  excess of $50,000,000 or (y) in the payment of any Guarantee Obligation in respect of Indebtedness in excess of  $50,000,000, beyond the period of grace, if any, provided in the instrument or agreement under which such  Indebtedness or Guarantee Obligation was created; or (ii) default in the observance or performance of any other  agreement or condition relating to any Indebtedness (excluding the Loans and the Reimbursement Obligations) or  Guarantee Obligation referred to in clause (i) above or contained in any instrument or agreement evidencing,  securing or relating thereto (other than a failure to provide notice of a default or an event of default under such  instrument or agreement), or any other event shall occur or condition exist, the effect of which default or other event  or condition is to cause, or to permit the holder or holders of such Indebtedness or beneficiary or beneficiaries of  

 

  147  such Guarantee Obligation (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries)  to cause, with the giving of notice or lapse of time if such Indebtedness to become due prior to its Stated Maturity or  such Guarantee Obligation to become payable (an “Acceleration”; and the term “Accelerated” shall have a  correlative meaning), and such time shall have lapsed and, if any notice (a “Default Notice”) shall be required to  commence a grace period or declare the occurrence of an event of default before notice of Acceleration may be  delivered, such Default Notice shall have been given and (in the case of the preceding clause (i) or (ii)) such default,  event or condition shall not have been remedied or waived by or on behalf of the holder or holders of such  Indebtedness or Guarantee Obligation (provided that the preceding clause (ii) shall not apply to (x) secured  Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such  Indebtedness, if such sale or transfer is permitted hereunder or (y) any termination event or equivalent event  pursuant to the terms of any Hedging Agreement); or  (f) If (i) any Borrower, any Material Guarantor or any Material Subsidiary of Ultimate Parent shall  commence any case, proceeding or other action (A) under any existing or future law of any jurisdiction, domestic or  foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief  entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement,  adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts (excluding,  in each case, the solvent liquidation or reorganization of any Foreign Subsidiary of Ultimate Parent that is not a  Loan Party), or (B) seeking appointment of a receiver, interim receiver, receivers, receiver and manager, trustee,  custodian, conservator or other similar official for it or for all or any substantial part of its assets, or any Borrower,  any Material Guarantor or any Material Subsidiary of Ultimate Parent shall make a general assignment for the  benefit of its creditors; or (ii) there shall be commenced against any Borrower, any Material Guarantor or any  Material Subsidiary of Ultimate Parent any case, proceeding or other action of a nature referred to in clause (i)  above which (A) results in the entry of an order for relief or any such adjudication or appointment or (B) remains  undismissed, undischarged, unstayed or unbonded for a period of 60 days; or (iii) there shall be commenced against  any Borrower, any Material Guarantor or any Material Subsidiary of Ultimate Parent any case, proceeding or other  action seeking issuance of a warrant of attachment, execution, distraint, garnishment order or similar process against  all or any substantial part of its assets which results in the entry of an order for any such relief which shall not have  been vacated, discharged, stayed or bonded pending appeal within 60 days from the entry thereof; or (iv) any  Borrower, any Material Guarantor or any Material Subsidiary of Ultimate Parent shall take any corporate or other  similar organizational action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of  the acts set forth in clause (i), (ii), or (iii) above; or (v) any Borrower, any Material Guarantor or any Material  Subsidiary of Ultimate Parent shall be generally unable to, or shall admit in writing its general inability to, pay its  debts as they become due; or  (g) (i) Any Person shall engage in any “prohibited transaction” (as defined in Section 406 of ERISA  or Section 4975 of the Code) involving any Plan, (ii) any “accumulated funding deficiency” (within the meaning of  Section 412 of the Code or Section 302 of ERISA), whether or not waived, shall exist with respect to any Plan or  any Lien in favor of the PBGC or a Plan shall arise on the assets of any Borrower, Restricted Subsidiary or  Commonly Controlled Entity, (iii) a Reportable Event shall occur with respect to, or proceedings shall commence to  have a trustee appointed, or a trustee shall be appointed, to administer or to terminate, any Single Employer Plan,  which Reportable Event or commencement of proceedings or appointment of a trustee is in the reasonable opinion  of the Administrative Agent likely to result in the termination of such Plan for purposes of Title IV of ERISA,  (iv) any Single Employer Plan shall terminate for purposes of Title IV of ERISA other than a standard termination  pursuant to Section 4041(b) of ERISA, (v) either of the Parent Borrower or any Commonly Controlled Entity shall,  or in the reasonable opinion of the Administrative Agent is reasonably likely to, incur any liability in connection  with a withdrawal from, or the Insolvency of, a Multiemployer Plan or Canadian MEPP, or (vi) any other event or  condition shall occur or exist with respect to a Plan or Foreign Plan including a Canadian Pension Termination  Event; and in each case in clauses (i) through (vi) above, such event or condition, together with all other such events  or conditions, if any, would be reasonably expected to result in a Material Adverse Effect; or  (h) One or more judgments or decrees shall be entered against Ultimate Parent or any of its Restricted  Subsidiaries involving in the aggregate at any time a liability (net of any insurance or indemnity payments actually  received in respect thereof prior to or within 60 days from the entry thereof, or to be received in respect thereof in  

 

  148  the event any appeal thereof shall be unsuccessful) of $40,000,000 or more, and all such judgments or decrees shall  not have been vacated, discharged, stayed or bonded pending appeal within 60 days from the entry thereof; or  (i) The U.S. Guarantee and Collateral Agreement or the Canadian Guarantee and Collateral  Agreement shall, or any other Security Document covering a significant portion of the ABL Priority Collateral shall  (at any time after its execution, delivery and effectiveness) cease for any reason to be in full force and effect (other  than pursuant to the terms hereof or thereof), or any Loan Party which is a party to any such Security Document  shall so assert in writing or (ii) the Lien created by any of the Security Documents shall cease to be perfected and  enforceable in accordance with its terms or of the same effect as to perfection and priority purported to be created  thereby with respect to any portion of the ABL Priority Collateral in excess of $25,000,000 (other than in connection  with any termination of such Lien in respect of any Collateral as permitted hereby or by any Security Document)  and such failure of such Lien to be perfected and enforceable with such priority shall have continued unremedied for  a period of 20 days; or  (j) Any Parent Entity or any Loan Party shall assert in writing that the Intercreditor Agreement or any  other intercreditor agreement entered into pursuant to the terms hereof shall have ceased for any reason to be in full  force and effect (other than pursuant to the terms hereof or thereof) or shall knowingly contest, or knowingly support  any other Person in any action that seeks to contest, the validity or effectiveness of any such intercreditor agreement  (other than pursuant to the terms hereof or thereof); or  (k) A Change of Control shall have occurred.  9.2 Remedies Upon an Event of Default.   (a) If any Event of Default occurs and is continuing, then, and in any such event, (A) if such event is  an Event of Default specified in clause (i) or (ii) of clause (f) above with respect to any Borrower, automatically the  Commitments, if any, shall immediately terminate and the Loans hereunder (with accrued interest thereon) and all  other amounts owing under this Agreement (including all amounts of BA Equivalent Loans and L/C Obligations,  whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented the documents  required thereunder and whether or not the BA Equivalent Loans have matured) shall immediately become due and  payable, and (B) if such event is any other Event of Default, any or all of the following actions may be taken:  (i)  with the consent of the Required Lenders, the Administrative Agent may, or upon the request of the Required  Lenders the Administrative Agent shall, by notice to the Borrower Representative, declare the Commitments to be  terminated forthwith, whereupon the Commitments, if any, shall immediately terminate; (ii) with the consent of the  Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders, the Administrative  Agent shall, by notice to the Borrower Representative, declare the Loans hereunder (with accrued interest thereon)  and all other amounts owing under this Agreement (including all amounts of BA Equivalent Loans and L/C  Obligations, whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented the  documents required thereunder and whether or not the BA Equivalent Loans s have matured) to be due and payable  forthwith, whereupon the same shall immediately become due and payable; and (iii) direct the Borrowers to provide  (and the Borrowers agree that upon receipt of such notice, the Borrowers will provide) Letter of Credit  Collateralization to the Administrative Agent to be held as security for the Borrowers’ reimbursement obligations  for drawings that may subsequently occur under issued and outstanding Letters of Credit.  (b) Except as expressly provided above in this Section 9, to the maximum extent permitted by  applicable law, presentment, demand, protest and all other notices of any kind are hereby expressly waived.  SECTION 10 The Agents and the Other Representatives  10.1 Appointment.   (a) Each Lender and each Issuing Lender hereby irrevocably designates and appoints the Agents as  the agents of such Lender or Issuing Lender under this Agreement and the other Loan Documents, and each such  Lender or Issuing Lender irrevocably authorizes each agent, in such capacity, to take such action on its behalf under  

 

  149  the provisions of this Agreement and the other Loan Documents and to exercise such powers and perform such  duties as are expressly delegated to or required of such Agent by the terms of this Agreement and the other Loan  Documents, together with such other powers as are reasonably incidental thereto. Notwithstanding any provision to  the contrary elsewhere in this Agreement, the Agents and the Other Representatives shall not have any duties or  responsibilities, except, in the case of the Administrative Agent, the Collateral Agent and the Issuing Lender, those  expressly set forth herein, or any fiduciary relationship with any Lender, and no implied covenants, functions,  responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or  otherwise exist against any Agent or the Other Representatives.  (b) Each of the Agents may perform any of their respective duties under this Agreement, the other  Loan Documents and any other instruments and agreements referred to herein or therein by or through its respective  officers, directors, agents, employees or affiliates, or delegate any and all such rights and powers to, any one or more  sub agents appointed by such Agent (it being understood and agreed, for avoidance of doubt and without limiting the  generality of the foregoing, that the Administrative Agent and the Collateral Agent may perform any of their  respective duties under the Security Documents by or through one or more of their respective affiliates). Each Agent  and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their  respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the  Related Parties of each 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 Agent.  (c) Except for Subsections 10.5, 10.8(a), 10.8(b), 10.8(c), 10.8(e) and (to the extent of the Borrowers’  rights thereunder and subject to the conditions included therein) 10.9, the provisions of this Section 10 are solely for  the benefit of the Agents, the Lenders and the Issuing Lenders, and no Borrower or any other Loan Party shall have  rights as a third-party beneficiary of any of such provisions.  10.2 The Administrative Agent and Affiliates. Each person serving as an 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 an Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the  context otherwise requires, include each person serving as an Agent hereunder in its individual capacity. Such  person and its affiliates may accept deposits from, lend money to, act as the financial advisor or in any other  advisory capacity for and generally engage in any kind of business with Holdings, the Borrowers or any Subsidiary  or other Affiliate thereof as if such person were not an Agent hereunder and without any duty to account therefor to  the Lenders.  10.3 Action by an Agent. Each Agent may execute any of its duties under this Agreement and the other  Loan Documents by or through agents or attorneys-in-fact (including the Collateral Agent in the case of the  Administrative Agent), and shall be entitled to advice of counsel concerning all matters pertaining to such duties. No  Agent shall be responsible for the negligence or misconduct of any agents or attorneys-in-fact or counsel selected by  it with reasonable care.  10.4 Exculpatory Provisions.   (a) No Agent shall have any duties or obligations except those expressly set forth herein and in the  other Loan Documents. Without limiting the generality of the foregoing, no Agent:  (i) shall be subject to any fiduciary or other implied duties,  regardless of whether a Default has occurred and is continuing;  (ii) shall 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 such 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 such Agent shall not be  required to take any action that, in its judgment or the judgment of its counsel, may expose such  

 

  150  Agent to liability or that is contrary to any Loan Document or applicable Requirement of Law;  and  (iii) shall, except as expressly set forth herein and in the other Loan  Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any  information relating to the Borrowers or any of their Affiliates that is communicated to or  obtained by the person serving as such Agent or any of its affiliates in any capacity.  (b) No Agent shall be liable for any action taken or not taken by it (x) 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 such  Agent shall believe in good faith shall be necessary, under the circumstances as provided in Subsection 11.1) or (y)  in the absence of its own gross negligence or willful misconduct. No Agent shall be deemed to have knowledge of  any Default unless and until notice describing such Default is given to such Agent by a Borrower, a Lender or an  Issuing Lender.  (c) No Agent shall be responsible for or have any duty to ascertain or inquire into (i) any statement,  warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the  contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or  therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set  forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness  of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the satisfaction  of any condition set forth in Section 6 or elsewhere herein, other than to confirm receipt of items expressly required  to be delivered to such Agent. Further, no Agent shall have any obligation whatsoever to any of the Lenders or the  other Secured Parties (i) to verify or assure that any particular items of Collateral meet the eligibility criteria  applicable in respect thereof or (ii) to impose, maintain, increase, reduce, implement, or eliminate any particular  reserve hereunder or to determine whether the amount of any reserve is appropriate or not. Without limiting the  generality of the foregoing, the use of the term “agent” in this Agreement with reference to the Administrative Agent  or the Collateral 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 merely as a matter of market custom and is  intended to create or reflect only an administrative relationship between independent contracting parties.  (d) Each party to this Agreement acknowledges and agrees that the Administrative Agent may use an  outside service provider for the tracking of all UCC financing statements required to be filed pursuant to the Loan  Documents and notification to the Administrative Agent, of, among other things, the upcoming lapse or expiration  thereof, and that any such service provider will be deemed to be acting at the request and on behalf of the Borrowers  and the other Loan Parties. No Agent shall be liable for any action taken or not taken by any such service provider.  10.5 Acknowledgement and Representations by Lenders. Each Lender and each Issuing Lender  expressly acknowledges that none of the Agents or the Other Representatives nor any of their officers, directors,  employees, agents, attorneys-in-fact or affiliates has made any representations or warranties to it and that no act by  any Agent or any Other Representative hereafter taken, including any review of the affairs of any Borrowers or any  other Loan Party, shall be deemed to constitute any representation or warranty by such Agent or such Other  Representative to any Lender. Each Lender further represents and warrants that it has had the opportunity to review  the Confidential Information Memorandum and each other document made available to it on the Platform in  connection with this Agreement and has acknowledged and accepted the terms and conditions applicable to the  recipients thereof. Each Lender and each Issuing Lender represents to the Agents, the Other Representatives and  each of the Loan Parties that, independently and without reliance upon the any Agent, the Other Representatives or  any other Lender, and based on such documents and information as it has deemed appropriate, it has made and will  make, its own appraisal of and investigation into the business, operations, property, financial and other condition  and creditworthiness of Holdings and the Borrowers and the other Loan Parties, it has made its own decision to  make its Loans or issue Letters of Credit hereunder and enter into this Agreement and it will make its own decisions  in taking or not taking any action under this Agreement and the other Loan Documents and, except as expressly  provided in this Agreement, neither the Agents nor any Other Representative shall have any duty or responsibility,  either initially or on a continuing basis, to provide any Lender or the holder of any Note with any credit or other  information with respect thereto, whether coming into its possession before the making of the Loans or at any time  

 

  151  or times thereafter. Each Lender and each Issuing Lender represents to each other party hereto that it is a bank,  savings and loan association or other similar savings institution, insurance company, investment fund or company or  other financial institution which makes or acquires commercial loans in the ordinary course of its business, that it is  participating hereunder as a Lender or Issuing Lender, as applicable, for such commercial purposes, and that it has  the knowledge and experience to be and is capable of evaluating the merits and risks of being a Lender hereunder.  Each Lender and each Issuing Lender acknowledges and agrees to comply with the provisions of Subsection 11.6  applicable to the Lenders and Issuing Lenders hereunder.  10.6 Indemnity; Reimbursement by Lenders.   (a) To the extent that the Parent Borrower or any other Loan Party for any reason fails to indefeasibly  pay any amount required under Subsection 11.5 to be paid by it to the Administrative Agent (or any sub-agent  thereof), the Collateral Agent, the Issuing Lenders, the Swingline Lender or any Related Party of any of the  foregoing, each Lender severally agrees to pay ratably according to their respective Commitment Percentages in  effect on the date on which the applicable unreimbursed expense or indemnity payment is sought under this  Subsection 10.6 (or, if the applicable unreimbursed expense or indemnity payment is sought after the date upon  which the Commitments shall have terminated and the Loans shall have been paid in full, ratably in accordance with  their Commitment Percentages, immediately prior to such date) such unpaid amount (such indemnity shall be  effective whether or not the related losses, claims, damages, liabilities and related expenses are incurred or asserted  by any party hereto or any third party); provided that (i) the unreimbursed expense or indemnified loss, claim,  damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative  Agent (or any such sub-agent), the Collateral Agent (or any sub-agent thereof), the Swingline Lender or the Issuing  Lenders in their capacity as such, or against any Related Party of any of the foregoing acting for the Administrative  Agent (or any such sub-agent), the Collateral Agent (or any sub-agent thereof), the Swingline Lender or Issuing  Lenders in connection with such capacity and (ii) such indemnity for the Swingline Lender or the Issuing Lenders  shall not include losses incurred by the Swingline Lender or the Issuing Lenders due to one or more Lenders  defaulting in their obligations to purchase participations of Swingline Exposure under Subsections 2.4(c) and 2.4(d)  or L/C Obligations under Subsection 3.4 (it being understood that this proviso shall not affect the Swingline  Lender’s or any Issuing Lender’s rights against any Defaulting Lender). The obligations of the Lenders under this  Subsection 10.6 are subject to the provisions of Subsection 4.8.  (b) Any Agent shall be fully justified in failing or refusing to take any action hereunder and under any  other Loan Document (except actions expressly required to be taken by it hereunder or under the Loan Documents)  unless it shall first be indemnified to its satisfaction by the Lenders pro rata against any and all liability, cost and  expense that it may incur by reason of taking or continuing to take any such action.  (c) All amounts due under this Subsection 10.6 shall be payable not later than three (3) Business Days  after demand therefor. The agreements in this Subsection 10.6 shall survive the payment of the Loans and all other  amounts payable hereunder.  10.7 Right to Request and Act on Instructions; Reliance.   (a) Each Agent may at any time request instructions from the Lenders with respect to any actions or  approvals which by the terms of this Agreement or of any of the Loan Documents an Agent is permitted or desires to  take or to grant, and if such instructions are promptly requested, the requesting Agent shall be absolutely entitled as  between itself and the Lenders to refrain from taking any action or to withhold any approval and shall not be under  any liability whatsoever to any Lender for refraining from any action or withholding any approval under any of the  Loan Documents until it shall have received such instructions from Required Lenders or all or such other portion of  the Lenders as shall be prescribed by this Agreement. Without limiting the foregoing, no Lender shall have any right  of action whatsoever against any Agent as a result of an Agent acting or refraining from acting under this Agreement  or any of the other Financing Documentation in accordance with the instructions of Required Lenders or  Supermajority Lenders (or all or such other portion of the Lenders as shall be prescribed by this Agreement) and,  notwithstanding the instructions of Required Lenders or Supermajority Lenders (or such other applicable portion of  the Lenders), an Agent shall have no obligation to any Lender to take any action if it believes, in good faith, that  

 

  152  such action would violate applicable law or exposes an Agent to any liability for which it has not received  satisfactory indemnification in accordance with the provisions of Subsection 10.6.  (b) Each Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any  notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic  message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been  signed, sent or otherwise authenticated by the proper person. Each Agent also may rely upon any statement made to  it orally or by telephone and believed by it to have been made by the proper person, and shall not incur any liability  for relying thereon. In determining compliance with any condition hereunder to the making of a Loan, or the  issuance of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or an Issuing Lender,  the Administrative Agent may presume that such condition is satisfactory to such Lender or such Issuing Lender  unless the Administrative Agent shall have received notice to the contrary from such Lender or such Issuing Lender  prior to the making of such Loan or the issuance of such Letter of Credit. Each Agent may consult with legal  counsel (who may be counsel for the Borrowers), independent accountants and other experts selected by it, and shall  be entitled to rely upon the advice of any such counsel, accountants or experts and shall not be liable for any action  taken or not taken by it in accordance with such advice.  10.8 Collateral Matters.   (a) Each Lender authorizes and directs the Administrative Agent and the Collateral Agent to enter into  (x) the Security Documents and the Intercreditor Agreement for the benefit of the Lenders and the other Secured  Parties, (y) any amendments, amendments and restatements, restatements or waivers of or supplements to or other  modifications to the Security Documents, the Intercreditor Agreement or other intercreditor agreements in  connection with the incurrence by any Loan Party or any Subsidiary thereof of Additional Indebtedness (each an  “Intercreditor Agreement Supplement”) to permit such Additional Indebtedness to be secured by a valid, perfected  lien (with such priority as may be designated by the Parent Borrower or relevant Subsidiary, to the extent such  priority is permitted by the Loan Documents) and (z) any amendments provided for under Subsections 2.6, 2.7, 2.8  and 7.9(b), respectively. Each Lender hereby agrees, and each holder of any Note or participant in Letters of Credit  by the acceptance thereof will be deemed to agree, that, except as otherwise set forth herein, any action taken by the  Administrative Agent, Collateral Agent or the Required Lenders in accordance with the provisions of this  Agreement, the Security Documents, the Intercreditor Agreement, any Intercreditor Agreement Supplement, any  agreement required in connection with an Incremental Facility pursuant to Subsection 2.6, any agreement required in  connection with a Refinancing Amendment pursuant to Subsection 2.7 and any agreement required in connection  with an Extension Offer pursuant to Subsection 2.8 and the exercise by the Agents or the Required Lenders of the  powers set forth herein or therein, together with such other powers as are reasonably incidental thereto, shall be  authorized and binding upon all of the Lenders. The Collateral Agent is hereby authorized on behalf of all of the  Lenders, without the necessity of any notice to or further consent from any Lender, from time to time, to take any  action with respect to any applicable Collateral or Security Documents which may be necessary to perfect and  maintain perfected the security interest in and liens upon the Collateral granted pursuant to the Security Documents.  Each Lender agrees that it will not have any right individually to enforce or seek to enforce any Security Document  or to realize upon any Collateral for the Loans unless instructed to do so by the Collateral Agent, it being understood  and agreed that such rights and remedies may be exercised only by the Collateral Agent. The Collateral Agent may  grant extensions of time for the creation and perfection of security interests in or the obtaining of title insurance,  legal opinions or other deliverables with respect to particular assets or the provision of any guarantee by any  Subsidiary (including extensions beyond the Closing Date or in connection with assets acquired, or Subsidiaries  formed or acquired, after the Closing Date) where it determines that such action cannot be accomplished without  undue effort or expense by the time or times at which it would otherwise be required to be accomplished by this  Agreement or the Security Documents.  (b) The Lenders hereby authorize each Agent, in each case at its option and in its discretion, (A) to  release any Lien granted to or held by such Agent upon any Collateral (i) upon termination of the Commitments and  payment and satisfaction of all of the Obligations under the Loan Documents at any time arising under or in respect  of this Agreement or the Loan Documents or the transactions contemplated hereby or thereby that are then due and  unpaid and termination (or cash collateralization on terms acceptable to the Issuing Lender) of all Letters of Credit,  (ii) constituting property being sold or otherwise disposed of (to Persons other than a Loan Party) upon the sale or  

 

  153  other disposition thereof, (iii) (x) owned by any Subsidiary Guarantor which (1) becomes an Excluded Subsidiary,  (2) ceases to be a Restricted Subsidiary of Ultimate Parent, or (3) ceases to be a Subsidiary Guarantor due to the  Parent Borrower’s rescission of any designation under Subsection 7.9(b), or (y) constituting Capital Stock or other  equity interests of an Excluded Subsidiary, (iv) if approved, authorized or ratified in writing by the Required  Lenders (or such greater amount, to the extent required by Subsection 11.1), (v) constituting Cash Flow Priority  Collateral upon the “Discharge of Note Obligations” (as defined in the Intercreditor Agreement) or (vi) as otherwise  may be expressly provided in the relevant Security Documents, (B) at the written request of the Borrower  Representative to subordinate any Lien (or to confirm the absence of any Lien) on any Excluded Assets or any other  property granted to or held by such Agent, as the case may be under any Loan Document, to the holder of any Lien  on such property that is permitted by Subsection 8.14 (other than Permitted Liens securing the Obligations under the  Loan Documents or that are required by the express terms of this Agreement to be pari passu with or junior to Liens  on the Collateral securing the Obligations under this Agreement pursuant to the Intercreditor Agreement), (C) to  release any Subsidiary Guarantor from its Obligations under any Loan Documents to which it is a party if such  Person ceases to be a Restricted Subsidiary of Ultimate Parent or becomes an Excluded Subsidiary and (D) to  release any Lien granted to or held by such Agent upon any Cash Flow Priority Collateral to the extent required  pursuant to the terms of the Intercreditor Agreement. Upon request by any Agent, at any time, the Required Lenders  or all or such other portion of the Lenders as shall be prescribed by this Agreement will confirm in writing any  Agent’s authority to release particular types or items of Collateral pursuant to this Subsection 10.8.  (c) The Lenders hereby authorize the Administrative Agent and the Collateral Agent, as the case may  be, in each case at its option and in its discretion, to enter into any amendment, amendment and restatement,  restatement, waiver, supplement or modification, and to make or consent to any filings or to take any other actions,  in each case as contemplated by Subsection 11.17. Upon request by any Agent, at any time, the Required Lenders or  all or such other portion of the Lenders as shall be prescribed by this Agreement will confirm in writing the  Administrative Agent’s and the Collateral Agent’s authority under this Subsection 10.8(c).  (d) No Agent shall have any obligation whatsoever to any of the Lenders (or any other Secured Party)  (i) to verify or assure that the Collateral exists or is owned by Holdings or any of its Restricted Subsidiaries or is  cared for, protected or insured or has been encumbered, (ii) to verify or assure that the Liens granted to any Agent  pursuant to any Loan Document have been properly or sufficiently or lawfully created, perfected, protected or  enforced or are entitled to any particular priority, (iii) to verify or assure that any particular items of Collateral meet  the eligibility criteria applicable in respect thereof, (iv) to impose, maintain, increase, reduce, implement or  eliminate any particular reserve hereunder or to determine whether the amount of any reserve is appropriate or (v) to  exercise or to continue exercising at all or in any manner or under any duty of care, disclosure or fidelity any of the  rights, authorities and powers granted or available to the Agents in this Subsection 10.8 or in any of the Loan  Documents, it being understood and agreed by the Lenders that in respect of the Collateral, or any act, omission or  event related thereto, each Agent may act in any manner it may deem appropriate, in its sole discretion, given such  Agent’s own interest in the Collateral as a Lender and that no Agent shall have any duty or liability whatsoever to  any Lender (or any other Secured Party), except for its gross negligence or willful misconduct.  (e) Notwithstanding any provision herein to the contrary, any Security Document may be amended  (or amended and restated), restated, waived, supplemented or modified as contemplated by and in accordance with  either Subsection 11.1 or 11.17, as applicable, with the written consent of the Agent party thereto and the Loan Party  party thereto.  (f) The Collateral Agent may, and hereby does, appoint the Administrative Agent as its agent for the  purposes of holding any Collateral and/or perfecting the Collateral Agent’s security interest therein and for the  purpose of taking such other action with respect to the collateral as such Agents may from time to time agree.  10.9 Successor Agent. Subject to the appointment of a successor as set forth herein, (i) the  Administrative Agent may be removed by the Required Lenders if the Administrative Agent is a Defaulting Lender  and (ii) the Administrative Agent and the Collateral Agent may resign as Administrative Agent or Collateral Agent,  respectively, in each case upon 10 days’ notice to the Lenders, the Issuing Lenders and the Parent Borrower. If the  Administrative Agent shall be removed by the Required Lenders pursuant to clause (i) above or if the  Administrative Agent or the Collateral Agent shall resign as Administrative Agent or Collateral Agent, as applicable,  

 

  154  under this Agreement and the other Loan Documents, then the Required Lenders shall appoint from among the  Lenders a successor agent for the Lenders, which such successor agent shall be subject to approval by the Parent  Borrower; provided that such approval by the Parent Borrower in connection with the appointment of any successor  Administrative Agent shall only be required so long as no Event of Default under Subsection 9.1(a) or 9.1(f) has  occurred and is continuing; provided further, that the Parent Borrower shall not unreasonably withhold its approval  of any successor Administrative Agent if such successor is a commercial bank with a combined capital and surplus  of at least $1 billion. Upon the successful appointment of a successor agent, such successor agent shall succeed to  the rights, powers and duties of the Administrative Agent or the Collateral Agent, as applicable, and the term  “Administrative Agent” or “Collateral Agent”, as applicable, shall mean such successor agent effective upon such  appointment and approval, and the former Agent’s rights, powers and duties as Administrative Agent or Collateral  Agent, as applicable, shall be terminated, without any other or further act or deed on the part of such former Agent  or any of the parties to this Agreement or any holders of the Loans or issuers of Letters of Credit. After any retiring  Agent’s resignation or removal as Agent, the provisions of this Section 10 shall inure to its benefit as to any actions  taken or omitted to be taken by it while it was Agent under this Agreement and the other Loan Documents.  Additionally, after such retiring Agent’s resignation as such Agent, the provisions of this Subsection 10.9 shall inure  to its benefit as to any actions taken or omitted to be taken by it while it was such Agent under this Agreement and  the other Loan Documents. After the resignation of any Administrative Agent pursuant to the preceding provisions  of this Subsection 10.9, such resigning Administrative Agent (x) shall not be required to act as Issuing Lender for  any Letters of Credit to be issued after the date of such resignation (and all unpaid fees accrued for the account of  the resigning Issuing Lender shall be paid in full upon its resignation) and (y) shall not be required to act as  Swingline Lender with respect to Swingline Loans to be made after the date of such resignation (and all outstanding  Swingline Loans of such resigning Administrative Agent shall be required to be repaid in full upon its resignation),  although the resigning Administrative Agent shall retain all rights hereunder as Issuing Lender and Swingline  Lender with respect to all Letters of Credit issued by it, and all Swingline Loans made by it, prior to the  effectiveness of its resignation as Administrative Agent hereunder. The fees payable by the Borrowers to a successor  Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the  Borrowers and such successor.  10.10 Swingline Lender. The provisions of this Section 10 shall apply to the Swingline Lender in its  capacity as such to the same extent that such provisions apply to the Administrative Agent.  10.11 Withholding Tax. To the extent required by any applicable law, each Agent may withhold from  any payment to any Lender an amount equivalent to any applicable withholding tax, and in no event shall such  Agent be required to be responsible for or pay any additional amount with respect to any such withholding. If the  Internal Revenue Service or any other Governmental Authority asserts a claim that any Agent did not properly  withhold tax from amounts paid to or for the account of any Lender because the appropriate form was not delivered  or was not properly executed or because such Lender failed to notify such Agent of a change in circumstances which  rendered the exemption from or reduction of withholding tax ineffective or for any other reason, without limiting the  provisions of Subsection 4.11(a) or 4.12, such Lender shall indemnify such Agent fully for all amounts paid, directly  or indirectly, by such Agent as tax or otherwise, including any penalties or interest and together with any expenses  incurred and shall make payable in respect thereof within 30 days after demand therefor. A certificate as to the  amount of such payment or liability delivered to any Lender or any Issuing Lender by the Administrative Agent  shall be conclusive absent manifest error. Each Lender and each Issuing Lender hereby authorizes the  Administrative Agent to set off and apply any and all amounts at any time owing to such Lender or such Issuing  Lender under this Agreement or any other Loan Document against any amount due the Administrative Agent under  this Subsection 10.11. The agreements in this Subsection 10.11 shall survive the resignation and/or replacement of  the Administrative Agent, any assignment of rights by, or the replacement of, a Lender, the termination of the  Commitments and the repayment, satisfaction or discharge of all other Obligations.  10.12 Other Representatives. None of the entities identified as joint bookrunners and joint lead arrangers  or syndication agents pursuant to the definition of Other Representative contained herein, shall have any duties or  responsibilities hereunder or under any other Loan Document in its capacity as such. Without limiting the foregoing,  no Other Representative shall have nor be deemed to have a fiduciary relationship with any Lender. At any time that  any Lender serving as an Other Representative shall have transferred to any other Person (other than any of affiliates)  

 

  155  all of its interests in the Loans and in the Commitments, such Lender shall be deemed to have concurrently resigned  as such Other Representative.  10.13 Appointment of Borrower Representatives. Each Borrower hereby designates the Parent Borrower  as its Borrower Representative. The Borrower Representative will be acting as agent on each of the Borrowers’  behalf for the purposes of issuing notices of Borrowing and notices of conversion/continuation of any Loans  pursuant to Subsection 4.2 or similar notices, giving instructions with respect to the disbursement of the proceeds of  the Loans, selecting interest rate options, requesting Letters of Credit, giving and receiving all other notices and  consents hereunder or under any of the other Loan Documents and taking all other actions (including in respect of  compliance with covenants) on behalf of any Borrower or the Borrowers under the Loan Documents. The Borrower  Representative hereby accepts such appointment. Each Borrower agrees that each notice, election, representation  and warranty, covenant, agreement and undertaking made on its behalf by the Borrower Representative shall be  deemed for all purposes to have been made by such Borrower and shall be binding upon and enforceable against  such Borrower to the same extent as if the same had been made directly by such Borrower.  10.14 Administrative Agent May File Proofs of Claim. In case of the pendency of any bankruptcy  proceeding or any other judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of  whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise  and irrespective of whether the Administrative Agent shall have made any demand on the Borrowers) is hereby  authorized by the Lenders (but not obligated), by intervention in such proceeding or otherwise:  (a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in  respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents as may be  necessary or advisable in order to have the claims of the Lenders, and the Administrative Agent (including any claim  for the reasonable compensation, expenses, disbursements and advances of the Lenders, and the Administrative  Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent  under Subsections 4.5 and 11.5) allowed in such judicial proceeding;  (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, receiver and manager, assignee, trustee, liquidator, sequestrator or other similar official  in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative  Agent and, if the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay  to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and  advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative  Agent under Subsections 4.5 and 11.5.  10.15 Application of Proceeds. The Lenders, the Administrative Agent and the Collateral Agent agree,  as among such parties, as follows:  subject to the terms of the Intercreditor Agreement, after the occurrence and  during the continuance of an Event of Default, all amounts collected or received by the Administrative Agent, the  Collateral Agent, any Lender or any Issuing Lender on account of amounts then due and outstanding under any of  the Loan Documents or under any Hedging Arrangement or Cash Management Agreement described in clause  “eleventh” below shall, except as otherwise expressly provided herein, be applied as follows, in each case until such  item is paid in full:  first, to pay all reasonable out-of-pocket costs and expenses (including reasonable attorneys’  fees to the extent provided herein) and indemnities due and owing under the Loan Documents of the Administrative  Agent or the Collateral Agent (including to pay to the Collateral Agent any sums advanced to the Collateral Agent  or to preserve its security interest in the Collateral), second, to pay any fees or premiums then due to any Agent  under the Loan Documents, third, to pay interest on Agent Advances, fourth, to pay the principal of Agent Advances  then outstanding, fifth, to pay all reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees  to the extent provided herein) due and owing hereunder of each of the Lenders and each of the Issuing Lenders, sixth,  to pay any fees or premiums then due to any of the Lenders and each of the Issuing Lenders under the Loan  Documents, seventh, to pay interest accrued in respect of Swingline Loans, eighth, to pay the principal of all  Swingline Loans then outstanding, ninth, to pay (on a ratable basis) interest accrued in respect of (A) the Revolving  Credit Loans then outstanding and (B) any Reimbursement Obligations then outstanding, tenth, to pay (on a ratable  

 

  156  basis) (A) the principal of Revolving Credit Loans then outstanding and any Reimbursement Obligations then  outstanding, and to cash collateralize any outstanding L/C Obligations on terms reasonably satisfactory to the  Administrative Agent and (B) any outstanding obligations payable under (i) Designated Cash Management  Agreements, up to the amount of Designated Cash Management Reserves then in effect with respect thereto, (ii)  Designated Hedging Agreements, up to the amount of Designated Hedging Reserves then in effect with respect  thereto, and (iii) Designated Vendor Financing Arrangements, up to the amount of Designated Vendor Financing  Reserves then in effect with respect thereto, eleventh, to pay (ratably) obligations under (A) Hedging Arrangements,  (B) Bank Products Agreements with any Cash Management Party, and (C) Vendor Financing Arrangements with  any Lender or any Affiliate of a Lender (other than pursuant to any Designated Cash Management Agreements,  Designated Hedging Agreements, or Designated Vendor Financing Arrangements, but including any amounts not  paid pursuant to clause “tenth”(B)(i) above) permitted hereunder and secured by the Guarantee and Collateral  Agreements (notwithstanding the foregoing, amounts received from any Loan Party shall not be applied to any  Excluded Swap Obligation of such Loan Party), twelfth to pay other Obligations then due and owing, and thirteenth,  to pay the surplus, if any, to whomever may be lawfully entitled to receive such surplus. To the extent that any  amounts available for distribution pursuant to clause “tenth” above are attributable to the issued but undrawn  amount of outstanding Letters of Credit which are then not yet required to be reimbursed hereunder, such amounts  shall be held by the Collateral Agent in a cash collateral account and applied (x) first, to reimburse the applicable  Issuing Lender from time to time for any drawings under such Letters of Credit and (y) then, following the  expiration of all Letters of Credit, to all other obligations of the types described in such clause “tenth”. To the extent  any amounts available for distribution pursuant to “ninth” are insufficient to pay all obligations described therein in  full, such moneys shall be allocated pro rata among the Lenders and Issuing Lenders based on their respective  Commitment Percentages.  To the extent any amounts available for distribution pursuant to clause (A) of clause  “tenth” are insufficient to pay all obligations described therein in full, such moneys shall be allocated pro rata among  the Lenders and Issuing Lenders based on their respective Commitment Percentages. This Subsection 10.15 may be  amended (and the Lenders hereby irrevocably authorize the Administrative Agent to enter into any such amendment)  to the extent necessary to reflect differing amounts payable, and priorities of payments, to Lenders participating in  any new classes or tranches of loans added pursuant to Subsections 2.6, 2.7 and 2.8, as applicable.  10.16 Certain ERISA Matters.   (a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto,  to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being  a Lender party hereto, that at least one of the following is and will be true:  (i) such Lender is not using “plan assets” (within the meaning of  the Plan Asset Regulations) of one or more Benefit Plans in connection with the Loans, the  Letters of Credit or the Commitments,  (ii) the transaction exemption set forth in one or more PTEs, such  as PTE 84-14 (a class exemption for certain transactions determined by independent qualified  professional asset managers), PTE 95-60 (a class exemption for certain transactions involving  insurance company general accounts), PTE 90-1 (a class exemption for certain transactions  involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for  certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption  for certain transactions determined by in-house asset managers), is applicable with respect to  such Lender’s entrance into, participation in, administration of and performance of the Loans, the  Letters of Credit, the Commitments and this Agreement, and the conditions for exemptive relief  thereunder are and will continue to be satisfied in connection therewith,  (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  

 

  157  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, (I) unless sub-clause (i) in the immediately preceding clause (a) is true with respect to  a Lender or (II) if such sub-clause (i) is not true with respect to a Lender and such Lender has not provided another  representation, warranty and covenant as provided in sub-clause (iv) in the immediately preceding clause (a), such  Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y)  covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender  party hereto, for the benefit of, the Administrative Agent, the Lead Arrangers and their respective Affiliates, and not,  for the avoidance of doubt, to or for the benefit of any Borrower or any other Loan Party, that:  (1) none of the Administrative Agent, the Lead Arrangers or  any of their respective Affiliates is a fiduciary with respect to the assets of such Lender (including  in connection with the reservation or exercise of any rights by the Administrative Agent under this  Agreement, any Loan Document or any documents related hereto or thereto),  (2) the Person making the investment decision on behalf of  such Lender with respect to the entrance into, participation in, administration of and performance  of the Loans, the Letters of Credit, the Commitments and this Agreement is independent (within  the meaning of 29 CFR § 2510.3-21, as amended from time to time) and is a bank, an insurance  carrier, an investment adviser, a broker-dealer or other person that holds, or has under  management or control, total assets of at least $50,000,000, in each case as described in 29 CFR §  2510.3-21(c)(1)(i)(A)-(E),  (3) the Person making the investment decision on behalf of  such Lender with respect to the entrance into, participation in, administration of and performance  of the Loans, the Letters of Credit, the Commitments and this Agreement is capable of evaluating  investment risks independently, both in general and with regard to particular transactions and  investment strategies (including in respect of the Obligations),  (4) the Person making the investment decision on behalf of  such Lender with respect to the entrance into, participation in, administration of and performance  of the Loans, the Letters of Credit, the Commitments and this Agreement is a fiduciary under  ERISA or the Code, or both, with respect to the Loans, the Letters of Credit, the Commitments  and this Agreement and is responsible for exercising independent judgment in evaluating the  transactions hereunder, and  (5) no fee or other compensation is being paid directly to the  Administrative Agent, the Lead Arrangers or any of their respective Affiliates for investment  advice (as opposed to other services) in connection with the Loans, the Letters of Credit, the  Commitments or this Agreement.  (c) The Administrative Agent and the Lead Arrangers hereby inform the Lenders that each such  Person is not undertaking to provide impartial investment advice, or to give advice in a fiduciary capacity, in  connection with the transactions contemplated hereby, and that such Person has a financial interest in the  transactions contemplated hereby in that such Person or an Affiliate thereof (i) may receive interest or other  payments with respect to the Loans, the Letters of Credit, the Commitments and this Agreement, (ii) may recognize  a gain if it extended the Loans, the Letters of Credit or the Commitments for an amount less than the amount being  paid for an interest in the Loans, the Letters of Credit or the Commitments by such Lender or (iii) may receive fees  or other payments in connection with the transactions contemplated hereby, the Loan Documents or otherwise,  

 

  158  including structuring fees, commitment fees, arrangement fees, facility fees, upfront fees, underwriting fees, ticking  fees, agency fees, administrative agent or collateral agent fees, utilization fees, minimum usage fees, letter of credit  fees, fronting fees, deal-away or alternate transaction fees, amendment fees, processing fees, term out premiums,  banker’s acceptance fees, breakage or other early termination fees or fees similar to the foregoing.  10.17 Erroneous Payments.  (a) Each Lender, each Issuing Lender, 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 Issuing Lender or any other Secured Party (or the Affiliate of a Secured Party acting as a  Lender) 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, Issuing Lender 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 Subsection 10.17(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 greater of the Federal Funds Effective Rate and a rate determined by the Administrative  Agent in accordance with banking industry rules on interbank compensation from time to time in effect.  (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) of the relevant Class with respect to which such Erroneous Payment was made (the “Erroneous  Payment Impacted Class”) 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  

 

  159  Commitments) of the Erroneous Payment  Impacted Class, the “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  11.6 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 amounts 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 10.17 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 10.17 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 10.17 will constitute a waiver or release of any claim of any party  hereunder arising from any Payment Recipient’s receipt of an Erroneous Payment.  SECTION 11 Miscellaneous  11.1 Amendments and Waivers.   (a) Neither this Agreement nor any other Loan Document, nor any terms hereof or thereof, may be  amended, restated, supplemented, modified or waived except in accordance with the provisions of this Subsection  11.1. The Required Lenders may, or, with the written consent of the Required Lenders, the Administrative Agent  may, from time to time, (x) enter into with the respective Loan Parties hereto or thereto, as the case may be, written  amendments, supplements or modifications hereto and to the other Loan Documents for the purpose of adding any  provisions to this Agreement or to the other Loan Documents or changing, in any manner the rights or obligations of  the Lenders or the Loan Parties hereunder or thereunder or (y) waive at any Loan Party’s request, on such terms and  conditions as the Required Lenders or the Administrative Agent, as the case may be, may specify in such instrument,  any of the requirements of this Agreement or the other Loan Documents or any Default or Event of Default and its  consequences; provided, however, that amendments pursuant to Subsections 11.1(d) and 11.1(f) may be effected  without the consent of the Required Lenders to the extent provided therein; provided further, that no such waiver  and no such amendment, supplement or modification shall:  

 

  160  (i) (A) reduce or forgive the amount or extend the scheduled date  of maturity of any Loan or any Reimbursement Obligation or of any scheduled installment  thereof (including extending the Termination Date), (B) reduce the stated rate of any interest,  commission or fee payable hereunder (other than as a result of any waiver of the applicability of  any post-default increase in interest rates) or extend the scheduled date of any payment thereof  (except as provided in Subsection 2.8), (C) increase the amount or extend the expiration date of  any Lender’s Commitment or extend the scheduled date of any payment thereof or (D) change  the currency in which any Loan or Reimbursement Obligation is payable, in each case without  the consent of each Lender directly and adversely affected thereby (it being understood that  amendments or supplements to, or waivers or modifications of, any conditions precedent,  representations, warranties, covenants, Defaults or Events of Default or of a mandatory  repayment or mandatory reduction in the aggregate Commitments of all Lenders shall not  constitute an increase of the Commitment of, or an extension of the scheduled date of maturity,  any scheduled installment, or the scheduled date of payment of the Loans of, any Lender, and  that an increase in the available portion of any Commitment of any Lender shall not constitute an  increase in the Commitment of such Lender);  (ii) amend, modify or waive any provision of this Subsection  11.1(a) or reduce the percentage specified in the definition of “Required Lenders” or  “Supermajority Lenders,” or consent to the assignment or transfer by Holdings or the Parent  Borrower of any of its rights and obligations under this Agreement and the other Loan  Documents, in each case without the written consent of all the Lenders; provided that, as further  provided in Subsection 11.1(d), the definition of “Required Lenders” and “Supermajority  Lenders” may be amended in connection with any amendment pursuant to Subsections 2.6, 2.7 or  2.8 to include appropriately the Lenders participating in such accordion facility, refinancing, or  extension in any required vote or action of the Required Lenders or the Supermajority Lenders,  as applicable;  (iii) release Guarantors accounting for all or substantially all of the  value of the Guarantee of the Obligations pursuant to any applicable Guarantee and Collateral  Agreement, or, in the aggregate (in a single transaction or a series of related transactions), all or  substantially all of the Collateral without the consent of all of the Lenders, except as expressly  permitted hereby or by any Security Document (as such documents are in effect on the date  hereof or, if later, the date of execution and delivery thereof in accordance with the terms hereof);  (iv) require any Lender to make Loans having an Interest Period of  one week or longer than six months without the consent of such Lender;  (v) amend, modify or waive any provision of Section 10 without  the written consent of the then Agents and of any Other Representative affected thereby;  (vi) amend, modify or waive any provision of the Swingline Note  (if any) or Subsection 2.4 without the written consent of the Swingline Lender and each other  Lender, if any, which holds, or is required to purchase, a participation in any Swingline Loan  pursuant to Subsection 2.4(d);  (vii) amend, modify or waive the provisions of any Letter of Credit  or any L/C Obligation without the written consent of the Issuing Lender with respect thereto and  each directly and adversely affected Lender;  (viii) increase the advance rates set forth in the definition of  “Borrowing Base,” or make any change to the definition of “Borrowing Base” (by adding  additional categories or components thereof), “Borrowing Base Eligible Accounts”, “Borrowing  Base Eligible Inventory” or “Net Orderly Liquidation Value” that would have the effect of  increasing the amount of the Borrowing Base, in each case, without the consent of the  Supermajority Lenders; or  

 

  161  (ix) amend, modify or waive the order of application of payments  set forth in the penultimate sentence of Subsection 4.4(a), 4.4(d), 4.8(a), 4.16(d), 10.15 or 11.7  hereof, in each case without the consent of each directly and adversely affected Lender; provided  that, as more fully set forth in Subsection 11.1(d), these sections may be amended or modified in  connection with any amendment pursuant to Subsections 2.6, 2.7 or 2.8 to reflect the priorities as  permitted by, and contemplated by, such Subsections with the consent of the Administrative  Agent and the Lenders participating in such accordion facility, refinancing, or extension;  provided further that, notwithstanding and in addition to the foregoing, and in addition to Liens the Collateral Agent  is authorized to release pursuant to Subsection 10.8(b), the Collateral Agent may, in its discretion, release the Lien  on Collateral valued in the aggregate not in excess of $10,000,000 in any Fiscal Year without the consent of any  Lender.  (b) Any waiver and any amendment, supplement or modification pursuant to this Subsection 11.1  shall apply to each of the Lenders and shall be binding upon the Loan Parties, the Lenders, the Agents and all future  holders of the Loans. In the case of any waiver, each of the Loan Parties, the Lenders and the Agents shall be  restored to their former position and rights hereunder and under the other Loan Documents, and any Default or  Event of Default waived shall be deemed to be cured and not continuing; but no such waiver shall extend to any  subsequent or other Default or Event of Default, or impair any right consequent thereon.  (c) Notwithstanding any provision herein to the contrary, (x) no Defaulting Lender  or Disqualified  Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except to the  extent the consent of such Lender would be required under clause (i) in the proviso to the first sentence of  Subsection 11.1(a), and each such Defaulting Lender or Disqualified Lender will be deemed to have approved or  otherwise consented to any such amendment, waiver or consent in the same proportion as the Lenders that are not  Defaulting Lenders or Disqualified Lenders approved or otherwise consented to such matter and (y) Disqualified  Lenders will not have the right to receive information, reports or other materials provided to Lenders by the  Borrowers, the Administrative Agent or any other Lender.  (d) Notwithstanding any provision herein to the contrary, this Agreement and the other Loan  Documents may be amended (i) in accordance with Subsection 2.6, to incorporate the terms of any Accordion Term  Loans and Accordion Revolving Credit Commitments with the written consent of the Parent Borrower and the  Lenders providing such Accordion Facility, (ii) by a Refinancing Amendment in accordance with Subsection 2.7,  (iii) in accordance with Subsection 2.8 to effectuate an Extension, in each case with the consent of the  Administrative Agent but without the consent of any Lender (except as expressly provided in Subsections 2.6, 2.7,  2.8, as applicable) required, including, without limitation, as provided in Subsections 4.4(g) and 4.16(d), (iv) to  implement any changes contemplated by Subsection 4.7 hereof with the consent of the Borrower Representative and  the Administrative Agent (subject to the applicable notice to Lenders and objection period contemplated therein),  (v) to amend any Lender’s L/C Commitment, with the written consent of the Borrower Representative and such  Lender and notified in writing to the Administrative Agent, (vi) to change the financial reporting convention, (vii) to  waive, amend or modify this Agreement or any other Loan Document in a manner that by its terms affects the rights  or duties under this Agreement or any other Loan Document of Lenders holding Loans or Commitments of a  particular Tranche (but not the Lenders holding Loans or Commitments of any other Tranche), by an agreement or  agreements in writing entered into by the applicable Borrower(s) and the requisite percentage in interest of the  Lenders with respect to such Tranche that would be required to consent thereto under this Subsection 11.1 if such  Lenders were the only Lenders hereunder at the time, (viii) to implement any changes contemplated by Subsection  7.9(b) hereof with the consent of the Parent Borrower and the Administrative Agent, and (ix) to cure any ambiguity,  mistake, omission, defect or inconsistency, with the consent of the Parent Borrower and the Administrative Agent.   Without limiting the generality of the foregoing, any provision of this Agreement and the other Loan Documents,  including Subsection 4.4, 4.8, 4.16 or 10.15, may be amended as set forth in the immediately preceding sentence to  provide for non-pro rata borrowings and payments of any amounts hereunder as between any tranche hereunder  (including any tranche of Extended Term Loans, Extended Revolving Credit Commitments or Accordion Revolving  Credit Commitments and any other tranche created pursuant to Subsection 2.6, 2.7 or 2.8), or to provide for the  inclusion, as appropriate, of the Lenders of any tranche of Extended Term Loans, Extended Revolving Accordion  Commitments or Accordion Revolving Credit Commitments or of any other tranche created pursuant to Subsection  

 

  162  2.6, 2.7 or 2.8 in any required vote or action of the Required Lenders, the Supermajority Lenders or the Lenders of  each Tranche hereunder; provided that, notwithstanding anything to the contrary herein, the Obligations shall not be  subordinated to any other tranche hereunder without the consent of each directly and adversely affected Lender. The  Administrative Agent hereby agrees (if requested by the Borrower Representative) to execute any amendment  referred to in this clause (d) or an acknowledgement thereof, to the extent the same is in form and substance  reasonably satisfactory to the Administrative Agent (it being understood and agreed that any amendment consistent  with the foregoing will be reasonably satisfactory to the Administrative Agent).  Notwithstanding the foregoing, the  L/C Commitment of any Issuing Lender listed on Schedule 1.1(i) hereto may be modified with the consent of the  Borrower Representative, such Issuing Lender and the Administrative Agent (and without the consent of any  Lender).  (e) Notwithstanding any provision herein to the contrary, this Agreement may be amended (or  amended and restated) with the written consent of the Required Lenders, the Administrative Agent and the  Borrowers (x) to add one or more additional credit facilities to this Agreement and to permit the extensions of credit  from time to time outstanding thereunder and the accrued interest and fees in respect thereof to share ratably in the  benefits of this Agreement and the other Loan Documents with the existing Facilities and the accrued interest and  fees in respect thereof, (y) to include, as appropriate, the Lenders holding such credit facilities in any required vote  or action of the Required Lenders or of the Lenders of each Facility hereunder and (z) to provide class protection for  any additional credit facilities.  (f) Notwithstanding any provision herein to the contrary, any Security Document may be amended  (or amended and restated), restated, waived, supplemented or modified as contemplated by Subsection 11.17 with  the written consent of the Agent party thereto and the Loan Party party thereto.  (g) If, in connection with any proposed change, waiver, discharge or termination of or to any of the  provisions of this Agreement and/or any other Loan Document as contemplated by Subsection 11.1(a), the consent  of each Lender or each affected Lender, as applicable, is required and the consent of the Required Lenders at such  time is obtained but the consent of one or more of such other Lenders whose consent is required is not obtained  (each such other Lender, a “Non-Consenting Lender”) then the Parent Borrower may, on reasonable advance notice  to the Administrative Agent and the Non-Consenting Lender, replace such Non-Consenting Lender by causing such  Lender to (and such Lender shall be obligated to) assign pursuant to Subsection 11.6 (with the assignment fee and  any other costs and expenses to be paid by the Parent Borrower in such instance) all of its rights and obligations  under this Agreement to one or more assignees; provided that neither the Administrative Agent nor any Lender shall  have any obligation to the Parent Borrower to find a replacement Lender; provided, further, that the applicable  assignee shall have agreed to the applicable change, waiver, discharge or termination of this Agreement and/or the  other Loan Documents; and provided, further, that all obligations of the Borrowers owing to the Non-Consenting  Lender relating to the Loans and participations so assigned shall be paid in full by the assignee Lender (or, at the  Parent Borrower’s option, by a Borrower) to such Non-Consenting Lender concurrently with such Assignment and  Acceptance. In connection with any such replacement under this Subsection 11.1(g), if the Non-Consenting Lender  does not execute and deliver to the Administrative Agent a duly completed Assignment and Acceptance and/or any  other documentation necessary to reflect such replacement by the later of (a) the date on which the replacement  Lender executes and delivers such Assignment and Acceptance and/or such other documentation and (b) the date as  of which all obligations of the Borrowers owing to the Non-Consenting Lender relating to the Loans and  participations so assigned shall be paid in full by the assignee Lender to such Non-Consenting Lender, then such  Non-Consenting Lender shall be deemed to have executed and delivered such Assignment and Acceptance and/or  such other documentation as of such date and the applicable Borrower shall be entitled (but not obligated) to execute  and deliver such Assignment and Acceptance and/or such other documentation on behalf of such Non-Consenting  Lender, and the Administrative Agent shall record such assignment in the Register.  11.2 Notices.   (a) All notices, requests, and demands to or upon the respective parties hereto to be effective shall be  in writing (including telecopy or electronic mail), and, unless otherwise expressly provided herein, shall be deemed  to have been duly given or made when delivered by hand, or three days after being deposited in the mail, postage  prepaid, or, in the case of telecopy or electronic mail notice, when sent (except that, if not given during normal  

 

  163  business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business  Day), or, in the case of delivery by a nationally recognized overnight courier, when received, addressed as follows in  the case of the Borrowers, the Administrative Agent and the Collateral Agent, and in the case of the other parties  hereto, to such other address as may be hereafter notified by the respective parties hereto and any future holders of  the Loans:  The Parent Borrower (including in its capacity as  Borrower Representative):  Atkore International, Inc.  16100 S. Lathrop Avenue  Harvey, IL 60426  Attention:  General Counsel  Facsimile:  (708) 339-2410  Telephone:  (800) 882-5543  Email:  legal@atkore.com    With copies (which shall not constitute notice) to: Debevoise & Plimpton LLP  919 Third Avenue  New York, New York 10022  Attention:  Scott B. Selinger  Facsimile:  (212) 909-6836  Telephone:  (212) 909-6000   Email:  sbselinger@debevoise.com    The Administrative Agent/the Collateral Agent: Wells Fargo Bank, National Association  Attention:  Laura Nickas  10 S. Wacker Drive, 26th Floor  Chicago, IL 60606  Facsimile:  (877) 302-9116  Telephone:  (312) 739-2225  Email:  laura.nickas@wellsfargo.com    With copies (which shall not constitute notice) to: Paul Hastings LLP  200 Park Avenue  New York, NY  10166  Attention: Jennifer St. John Yount  Telephone: (212) 318-6008  Email: jenniferyount@paulhastings.com  provided that any notice, request or demand to or upon the Administrative Agent or the Lenders pursuant to  Subsection 3.2, 4.2, 4.4 or 4.8 shall not be effective until received.  (b) Without in any way limiting the obligation of any Loan Party and its Subsidiaries to confirm in  writing any telephonic notice permitted to be given hereunder, the Administrative Agent, the Swingline Lender (in  the case of a Borrowing of Swingline Loans) or any Issuing Lender (in the case of the issuance of a Letter of Credit),  as the case may be, may prior to receipt of written confirmation act without liability upon the basis of such  telephonic notice, believed by the Administrative Agent, the Swingline Lender or such Issuing Lender in good faith  to be from a Responsible Officer.  (c) Loan Documents may be transmitted and/or signed by facsimile or other electronic means (i.e., a  “pdf” or “tiff”). The effectiveness of any such documents and signatures shall, subject to applicable law, have the  same force and effect as manually signed originals and shall be binding on each Loan Party, each Agent and each  Lender.  (d) Notices and other communications to the Lenders and any Issuing Lender hereunder may be  delivered or furnished by electronic communication (including electronic mail and Internet or intranet websites).  Unless the Administrative Agent otherwise prescribes (with the Parent Borrower’s consent), (i) notices and other  

 

  164  communications sent to an e-mail address shall be deemed to have been duly made or given when delivered,  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 delivered at the opening of business on the next  Business Day, and (ii) notices or communications posted to an Internet or intranet website shall be deemed received  upon the posting thereof and written notice of such posting has been provided to the applicable Person.  (e) Each Loan Party agrees that Agent may make materials or information provided by or on behalf of  the Borrowers hereunder (collectively, “Borrower Materials”) available to the Lenders by posting any notice or  other communications on IntraLinks, SyndTrak or a substantially similar secure electronic transmission system (the  “Platform”).  The Platform is provided “as is” and “as available.”  The Administrative Agent does not warrant the  accuracy or completeness of the Borrower Materials, or the adequacy of the Platform and expressly disclaim liability  for errors or omissions in the communications.  No warranty of any kind, express, implied or statutory, including  any warranty of merchantability, fitness for a particular purpose, non-infringement of third party rights or freedom  from viruses or other code defects, is made by any Agent in connection with the Borrower Materials or the Platform.   In no event shall the any Agent or any of its Affiliates have any liability to the Loan Parties, any Lender or any other  person for damages of any kind, including direct or indirect, special, incidental or consequential damages, losses or  expenses (whether in tort, contract or otherwise) arising out of any Loan Party’s or any Agent’s transmission of  communications through the Internet, except to the extent the liability of such person is found in a final non- appealable judgment by a court of competent jurisdiction to have resulted from such person’s gross negligence or  willful misconduct.  Each Loan Party further agrees that certain of the Lenders may be “public-side” Lenders (i.e.,  Lenders that do not wish to receive material non-public information with respect to the Loan Parties or their  securities) (each, a “Public Lender”).  The Loan Parties shall be deemed to have authorized each Agent and its  Affiliates and the Lenders to treat Borrower Materials marked “PUBLIC” or otherwise at any time filed with the  SEC as not containing any material non-public information with respect to the Loan Parties or their securities for  purposes of United States federal and state securities laws.  All Borrower Materials marked “PUBLIC” are permitted  to be made available through a portion of the Platform designated as “Public Investor” (or another similar term).   Each Agent and its Affiliates and the Lenders shall be entitled to treat any Borrower Materials that are not marked  “PUBLIC” or that are not at any time filed with the SEC as being suitable only for posting on a portion of the  Platform not marked as “Public Investor” (or such other similar term).    (f) Each Lender may change its address, telecopier or telephone number for notices and other  communications hereunder by written notice to the Borrower Representative and the Administrative Agent.  11.3 No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of  any Agent, any Lender or any Loan Party, any right, remedy, power or privilege hereunder or under the other Loan  Documents shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or  privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power  or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any  rights, remedies, powers and privileges provided by law.  11.4 Survival of Representations and Warranties. All representations and warranties made hereunder  and in the other Loan Documents (or in any amendment, modification or supplement hereto or thereto) and in any  certificate delivered pursuant hereto or such other Loan Documents shall survive the execution and delivery of this  Agreement, the making of the Loans hereunder and issuance of any Letters of Credit.  11.5 Payment of Fees, Expenses and Taxes.  (a) The Borrowers, jointly and severally, agree (a) to pay or reimburse the Agents and the Other  Representatives for (1) all their reasonable, documented and invoiced out-of-pocket costs and expenses incurred in  connection with (i) the syndication of the Facilities and the development, preparation, execution and delivery of, and  any amendment, supplement or modification to, this Agreement and the other Loan Documents and any other  documents prepared in connection herewith or therewith, (ii) the consummation and administration of the  transactions (including the syndication of the Commitments) contemplated hereby and thereby and (iii) efforts to  monitor the Loans and verify, protect, evaluate, assess, appraise, collect, sell, liquidate, defend, enforce, terminate or  otherwise dispose of any of the Collateral, (including the reasonable, documented and invoiced out-of-pocket  

 

  165  attorneys, accountants, consultants, and other advisors fees and expenses incurred in connection with a “workout,” a  “restructuring,” or an Insolvency proceeding concerning any Loan Party or any of its Subsidiaries or in exercising  rights or remedies under the Loan Documents), or defending the Loan Documents, irrespective of whether a lawsuit  or other adverse proceeding is brought, or in taking any enforcement action, (2) (i) the Administrative Agent’s  reasonable, documented and invoiced fees and charges imposed or incurred in connection with any background  checks or OFAC/PEP searches related to any Loan Party or its Subsidiaries, (ii) the Administrative Agent’s  reasonable, documented and invoiced fees and charges (as adjusted from time to time) with respect to the  disbursement of funds (or the receipt of funds) to or for the account of any Borrower (whether by wire transfer or  otherwise), together with any reasonable, documented and invoiced out-of-pocket costs and expenses incurred in  connection therewith, (iii) customary charges imposed or incurred by the Administrative Agent resulting from the  dishonor of checks payable by or to any Loan Party in connection with this Agreement and (3) the reasonable,  documented and invoiced fees and disbursements of Paul Hastings LLP, solely in its capacity as counsel to the  Agents and Other Representatives, and such other special or local counsel, consultants, advisors, appraisers and  auditors whose retention (other than during the continuance of an Event of Default) is approved by the Parent  Borrower, (b) to pay or reimburse each Lender, each Lead Arranger and the Agents for all their reasonable,  documented and invoiced out-of-pocket costs and expenses incurred in connection with the enforcement or  preservation of any rights under this Agreement, the other Loan Documents and any other documents prepared in  connection herewith or therewith, including the fees and disbursements of counsel to the Agents (limited to one firm  of counsel for the Agents and, if necessary one firm of local counsel in each appropriate jurisdiction, in each case for  the Agents), (c) to pay, indemnify, or reimburse each Lender, each Lead Arranger and the Agents for, and hold each  Lender, each Lead Arranger and the Agents harmless from, any and all recording and filing fees and any and all  liabilities with respect to, or resulting from any delay in paying, any stamp, documentary, excise and other similar  taxes, if any, which may be payable or determined to be payable in connection with the execution, delivery or  enforcement of, or consummation or administration of any of the transactions contemplated by, or any amendment,  supplement or modification of, or any waiver or consent under or in respect of, this Agreement, the other Loan  Documents and any such other documents, (d) to pay, indemnify or reimburse each Lender, each Lead Arranger,  each Agent (and any sub-agent thereof), each Issuing Lender and each Related Party of any of the foregoing Persons  (each, an “Indemnitee”) for, and hold each Indemnitee harmless from and against, any and all other liabilities,  obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or  nature whatsoever (in the case of fees and disbursements of counsel, limited to one firm of counsel for all  Indemnitees and, if necessary, one firm of local counsel in each appropriate jurisdiction, in each case for all  Indemnitees (and, in the case of an actual or perceived conflict of interest where the Indemnitee affected by such  conflict informs the Borrower Representative of such conflict and thereafter, retains its own counsel, of another firm  of counsel for such affected Indemnitee)) arising out of or relating to any actual or prospective claim, litigation,  investigation or proceeding, whether based on contract, tort or any other theory, brought by a third party or by the  Borrowers or any other Loan Party and regardless of whether any Indemnitee is a party thereto, with respect to (i)  the execution, delivery, enforcement, performance and administration of this Agreement, the other Loan Documents,  any Issuer Document, or any Drawing Document referred to in or related to any Letter of Credit, including any of  the foregoing relating to the use of proceeds of the Loans or Letters of Credit (including any refusal by an Issuing  Lender 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) or (ii) the violation of, noncompliance with or  liability under, any Environmental Law applicable to the operations of the Parent Borrower or any of its Restricted  Subsidiaries or any of the property of Ultimate Parent or any of its Restricted Subsidiaries, (all the foregoing in this  clause (d), collectively, the “Indemnified Liabilities”), provided that the Borrowers shall not have any obligation  hereunder to any Lead Arranger, any Other Representative, any Agent (or any sub-agent thereof), any Issuing  Lender or any Lender (or any Related Party of any of the foregoing Persons) with respect to Indemnified Liabilities  arising from (i) the gross negligence, bad faith or willful misconduct of any such Lead Arranger, Other  Representative, Agent (or any sub-agent thereof), Issuing Lender or Lender (or any Related Party of any of the  foregoing Persons), as the case may be, as determined by a court of competent jurisdiction in a final and non- appealable decision, (ii) a material breach of the Loan Documents by any such Lead Arranger, Other Representative,  Agent (or any sub-agent thereof), Issuing Lender or Lender (or any Related Party of any of the foregoing Persons),  as the case may be, as determined by a court of competent jurisdiction in a final and non-appealable decision,  (iii) claims against such Indemnitee or any Related Party brought by any other Indemnitee that do not involve claims  against any Lead Arranger or Agent in its capacity as such or (iv) any agreement governing any settlement of claims  that is effected without the Borrower Representative’s prior written consent (such consent not to be unreasonably  withheld, conditioned or delayed), and (e) to pay or reimburse each Issuing Lender for all customary commissions,  

 

  166  fees and charges then in effect imposed by, and all expenses incurred by, such Issuing Lender, or by any advisor,  confirming institution or entity or other nominated person, relating to Letters of Credit, (x) at the time of issuance of  any Letter of Credit, (y) upon the occurrence of any other activity with respect to any Letter of Credit (including  transfers, assignments of proceeds, amendments, drawings, renewals or cancellations) and (z) otherwise as the same  are invoiced pursuant to a written notice (which may be via email) to the Borrower Representative. None of the  Borrowers nor any Indemnitee shall be liable for any indirect, special, punitive or consequential damages hereunder;  provided that nothing contained in this sentence shall limit the Borrowers’ indemnity or reimbursement obligations  under this Subsection 11.5 to the extent such indirect, special, punitive or consequential damages are included in any  third-party claim in connection with which such Indemnitee is entitled to indemnification hereunder. All amounts  due under this Subsection 11.5 shall be payable not later than 30 days after written demand therefor. Statements  reflecting amounts payable by the Loan Parties pursuant to this Subsection 11.5 submitted to the address of the  Parent Borrower set forth in Subsection 11.2, or to such other Person or address as may be hereafter designated by  the Parent Borrower in a notice to the Administrative Agent. Notwithstanding the foregoing, except as provided in  clauses (b) and (c) above, the Parent Borrower shall have no obligation under this Subsection 11.5 to any Indemnitee  with respect to any tax, levy, impost, duty, charge, fee, deduction or withholding imposed, levied, collected,  withheld or assessed by any Governmental Authority. The agreements in this Subsection 11.5 shall survive the  termination of this Agreement and the repayment of the Loans and all other amounts payable hereunder (including  Obligations with respect to any Letters of Credit that remain outstanding).   (b) The liability of Issuing Lender (or any other Letter of Credit Related Person) under, in connection  with or arising out of any Letter of Credit (or pre-advice), regardless of the form or legal grounds of the action or  proceeding, shall be limited to direct damages suffered by Borrowers that are caused directly by Issuing Lender’s  gross negligence or willful misconduct in (i) honoring a presentation under a Letter of Credit that on its face does  not at least substantially comply with the terms and conditions of such Letter of Credit, (ii) failing to honor a  presentation under a Letter of Credit that strictly complies with the terms and conditions of such Letter of Credit, or  (iii) retaining Drawing Documents presented under a Letter of Credit.  Borrowers’ aggregate remedies against  Issuing Lender and any Letter of Credit Related Person for wrongfully honoring a presentation under any Letter of  Credit or wrongfully retaining honored Drawing Documents shall in no event exceed the aggregate amount paid by  Borrowers to Issuing Lender in respect of the honored presentation in connection with such Letter of Credit under  Section 3.2(a), plus interest at the rate then applicable to ABR Loans hereunder.  Borrowers shall take action to  avoid and mitigate the amount of any damages claimed against Issuing Lender or any other Letter of Credit Related  Person, including by enforcing its rights against the beneficiaries of the Letters of Credit.  Any claim by Borrowers  under or in connection with any Letter of Credit shall be reduced by an amount equal to the sum of (x) the amount  (if any) saved by Borrowers as a result of the breach or alleged wrongful conduct complained of, and (y) the amount  (if any) of the loss that would have been avoided had Borrowers taken all reasonable steps to mitigate any loss, and  in case of a claim of wrongful dishonor, by specifically and timely authorizing Issuing Lender to effect a cure.  (c) Borrowers are responsible for the final text of the Letter of Credit as issued by Issuing Lender,  irrespective of any assistance Issuing Lender may provide such as drafting or recommending text or by Issuing  Lender’s use or refusal to use text submitted by Borrowers. Borrowers understand that the final form of any Letter  of Credit may be subject to such revisions and changes as are deemed necessary or appropriate by Issuing Lender,  and Borrowers hereby consent to such revisions and changes not materially different from the application executed  in connection therewith. Borrowers are solely responsible for the suitability of the Letter of Credit for Borrowers’  purposes.  If Borrowers request Issuing Lender to issue a Letter of Credit for an affiliated or unaffiliated third party  (an “Account Party”), (i) such Account Party shall have no rights against Issuing Lender; (ii) Borrowers shall be  responsible for the application and obligations under this Agreement; and (iii) communications (including notices)  related to the respective Letter of Credit shall be among Issuing Lender and the Borrower Representative.   Borrowers will examine the copy of the Letter of Credit and any other documents sent by Issuing Lender in  connection therewith and shall promptly notify Issuing Lender (not later than three (3) Business Days following  Borrowers’ receipt of documents from Issuing Lender) of any non-compliance with Borrowers’ instructions and of  any discrepancy in any document under any presentment or other irregularity.  Borrowers understand and agree that  Issuing Lender is not required to extend the expiration date of any Letter of Credit for any reason. With respect to  any Letter of Credit containing an “automatic amendment” to extend the expiration date of such Letter of Credit,  Issuing Lender, in its sole and absolute discretion, may give notice of nonrenewal of such Letter of Credit and, if  Borrowers do not at any time want the then current expiration date of such Letter of Credit to be extended,  

 

  167  Borrowers will so notify Administrative Agent and Issuing Lender at least 30 calendar days before Issuing Lender is  required to notify the beneficiary of such Letter of Credit or any advising bank of such non-extension pursuant to the  terms of such Letter of Credit.  (d) Borrowers’ reimbursement and payment obligations under this Subsection 11.5 are absolute,  unconditional and irrevocable and shall be performed strictly in accordance with the terms of this Agreement under  any and all circumstances whatsoever, including any lack of validity, enforceability or legal effect of any Letter of  Credit, any Issuer Document, this Agreement, or any Loan Document, or any term or provision therein or herein;  payment against presentation of any draft, demand or claim for payment under any Drawing Document that does not  comply in whole or in part with the terms of the applicable Letter of Credit or which proves to be fraudulent, forged  or invalid in any respect or any statement therein being untrue or inaccurate in any respect, or which is signed,  issued or presented by a Person or a transferee of such Person purporting to be a successor or transferee of the  beneficiary of such Letter of Credit; provided, that subject to Subsection 11.5(b) above, the foregoing shall not  release Issuing Lender from such liability to Borrowers as may be finally determined in a final, non-appealable  judgment of a court of competent jurisdiction against Issuing Lender following reimbursement or payment of the  obligations and liabilities, including reimbursement and other payment obligations, of Borrowers to Issuing Lender  arising under, or in connection with, this Subsection 11.5 or any Letter of Credit.  (e) Without limiting any other provision of this Agreement, Issuing Lender and each other Letter of  Credit Related Person (if applicable) shall not be responsible to Borrowers for, and Issuing Lender’s rights and  remedies against Borrowers and the obligation of Borrowers to reimburse Issuing Lender for each drawing under  each Letter of Credit shall not be impaired by:  (i) honor of a presentation under any Letter of Credit that on its  face substantially complies with the terms and conditions of such Letter of Credit, even if the  Letter of Credit requires strict compliance by the beneficiary;  (ii) honor of a presentation of any Drawing Document that appears  on its face to have been signed, presented or issued (A) by any purported successor or transferee  of any beneficiary or other Person required to sign, present or issue such Drawing Document or  (B) under a new name of the beneficiary;  (iii) acceptance as a draft of any written or electronic demand or  request for payment under a Letter of Credit, even if nonnegotiable or not in the form of a draft  or notwithstanding any requirement that such draft, demand or request bear any or adequate  reference to the Letter of Credit;  (iv) the identity or authority of any presenter or signer of any  Drawing Document or the form, accuracy, genuineness or legal effect of any Drawing Document  (other than Issuing Lender’s determination that such Drawing Document appears on its face  substantially to comply with the terms and conditions of the Letter of Credit;  (v) acting upon any instruction or request relative to a Letter of  Credit or requested Letter of Credit that Issuing Lender in good faith believes to have been given  by a Person authorized to give such instruction or request;  (vi) any errors, omissions, interruptions or delays in transmission or  delivery of any message, advice or document (regardless of how sent or transmitted) or for errors  in interpretation of technical terms or in translation or any delay in giving or failing to give notice  to any Borrower;  (vii) any acts, omissions or fraud by, or the insolvency of, any  beneficiary, any nominated person or entity or any other Person or any breach of contract  between any beneficiary and any Borrower or any of the parties to the underlying transaction to  which the Letter of Credit relates;  

 

  168  (viii) assertion or waiver of any provision of the ISP or UCP that  primarily benefits an issuer of a letter of credit, including any requirement that any Drawing  Document be presented to it at a particular hour or place;  (ix) payment to any presenting bank (designated or permitted by the  terms of the applicable Letter of Credit) claiming that it rightfully honored or is entitled to  reimbursement or indemnity under Standard Letter of Credit Practice applicable to it;  (x) acting or failing to act as permitted under Standard Letter of  Credit Practice applicable to where Issuing Lender has issued, confirmed, advised or negotiated  such Letter of Credit, as the case may be;  (xi) honor of a presentation after the expiration date of any Letter of  Credit notwithstanding that a presentation was made prior to such expiration date and dishonored  by Issuing Lender if subsequently Issuing Lender or any court or other finder of fact determines  such presentation should have been honored;   (xii) dishonor of any presentation that does not strictly comply or  that is fraudulent, forged or otherwise not entitled to honor; or  (xiii) honor of a presentation that is subsequently determined by  Issuing Lender to have been made in violation of international, federal, state or local restrictions  on the transaction of business with certain prohibited Persons.  11.6 Successors and Assigns; Participations and Assignments.   (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties  hereto and their respective successors and assigns permitted hereby (including any affiliate of the applicable Issuing  Lender that issues any Letter of Credit), except that (i) other than in accordance with Subsection 8.2, none of the  Loan Parties may assign or otherwise transfer any of its rights or obligations hereunder without the prior written  consent of each Lender (and any attempted assignment or transfer by any Loan Party without such consent shall be  null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in  accordance with Subsection 4.13(d), Subsection 4.15(c), Subsection 11.1(g) and this Subsection 11.6.  (b) (i) Subject to the conditions set forth in clause (b)(ii) below, any Lender other than a Conduit  Lender may, in the ordinary course of business and in accordance with applicable law, assign (other than to a  Disqualified Lender, to any natural person or to Ultimate Parent, Holdings, the Parent Borrower or any of their  respective Subsidiaries) to one or more assignees (each, an “Assignee”) all or a portion of its rights and obligations  under this Agreement (including its Commitment and/or Loans, pursuant to an Assignment and Acceptance) with  the prior written consent (such consent not to be unreasonably withheld or delayed) of:  (A) the Parent Borrower; provided that no consent of  the Parent Borrower shall be required for an assignment (x) to a Lender or an Affiliate  (other than a natural person) of a Lender or (y) if an Event of Default under  Subsection 9.1(a) or 9.1(f) with respect to the Parent Borrower has occurred and is  continuing, to any other Person;  (B) the Administrative Agent, provided that no consent  of the Administrative Agent shall be required for an assignment to a Lender or an  Affiliate of a Lender; and  (C) the Swingline Lender and each Issuing Lender.  (ii) Assignments shall be subject to the following additional  conditions:  

 

  169  (A) except in the case of an assignment to a Lender, an  Affiliate of a Lender or an Approved Fund or an assignment of the entire remaining  amount of the assigning Lender’s Commitments or Loans under any Facility, the amount  of the Commitments or Loans of the assigning Lender subject to each such assignment  (determined as of the date the Assignment and Acceptance with respect to such  assignment is delivered to the Administrative Agent) shall not be less than $1,000,000  unless the Parent Borrower and the Administrative Agent otherwise consent, provided  that (1) no such consent of the Parent Borrower shall be required if an Event of Default  under Subsection 9.1(a) or 9.1(f) has occurred and is continuing and (2) such amounts  shall be aggregated in respect of each Lender and its affiliates or Approved Funds, if any;  (B) the parties to each assignment shall execute and  deliver to the Administrative Agent an Assignment and Acceptance, together with a  processing and recordation fee of $3,500; provided that for concurrent assignments to  two or more Approved Funds such assignment fee shall only be required to be paid once  in respect of and at the time of such assignments; and  (C) the Assignee, if it shall not be a Lender, shall  deliver to the Administrative Agent an administrative questionnaire.  For the purposes of this Subsection 11.6, the term “Approved Fund” has the following meaning:   “Approved Fund” means any Person (other than a natural person) that is engaged in making,  purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary  course and that is administered, advised or managed by (a) a Lender, (b) an affiliate of a Lender or  (c) an entity or an affiliate of an entity that administers, advises or manages a Lender.  Notwithstanding the foregoing, no Lender shall be permitted to make assignments under this  Agreement to any Disqualified Lender.  If any assignment or participation is made to any  Disqualified Lender in violation of this Subsection 11.6, the Parent Borrower may, at its sole  expense and effort, upon notice to the applicable Disqualified Lender and the Administrative  Agent, require such Disqualified Lender to assign, without recourse (in accordance with and  subject to the restrictions contained in this Subsection 11.6), all of its interest, rights and  obligations under this Agreement to one or more Eligible Assignees pursuant to an assignment and  acceptance otherwise compliant with this Subsection 11.6.  Notwithstanding anything to the  contrary herein, each of the Parent Borrower, each other Loan Party and the Lenders  acknowledges and agrees that the Administrative Agent shall not have any responsibility or  obligation to determine whether any Lender or potential Lender is a Disqualified Lender and the  Administrative Agent shall have no liabilities with respect to any assignment or participation made  to a Disqualified Person other than with respect to liabilities as a result of the Administrative  Agent’s bad faith or willful misconduct (as determined by a court of competent jurisdiction in a  final non-appealable decision).  (iii) Subject to acceptance and recording thereof pursuant to clause  (b)(iv) below, from and after the effective date specified in each Assignment and Acceptance the  Assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such  Assignment and Acceptance, 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 Acceptance, be released from its obligations under this Agreement (and, in the  case of an Assignment and Acceptance 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 (and bound by any related obligations under) Subsections 4.10,  4.11, 4.12, 4.13, 4.15 and 11.5). Any assignment or transfer by a Lender of rights or obligations  under this Agreement that does not comply with this Subsection 11.6 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 clause (c) of this Subsection 11.6 (and any attempted assignment, transfer or  participation which does not comply with this Subsection 11.6 shall be null and void).  

 

  170  (iv) The Borrowers hereby collectively designate the  Administrative Agent, and the Administrative Agent agrees, to serve as the Borrowers’ agent,  solely for purposes of this Subsection 11.6, to maintain at one of its offices in New York, New  York a copy of each Assignment and Acceptance delivered to it and a register for the recordation  of the names and addresses of the Lenders, and the Commitments of, and interest and principal  amount 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 absent manifest  error, and the Borrowers, the Administrative Agent, the Issuing Lender and the Lenders shall  treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender  hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The  Register shall be available for inspection by the Borrowers, the Issuing Lender and, solely with  respect to entries applicable to such Lender, any Lender, at any reasonable time and from time to  time upon reasonable prior notice.  (v) Each Lender that sells a participation shall, acting solely for  this purpose as an agent of the Parent 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 to any Person (including the identity of any Participant or any  information relating to a Participant’s interest in any commitments, loans, letters of credit or its  other obligations under any Loan Document) except to the extent that such disclosure is  necessary (x) 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 or (y) for  any Borrower to enforce its rights hereunder. The entries in the Participant Register shall be  conclusive absent manifest error, and a 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.  (vi) Upon its receipt of a duly completed Assignment and  Acceptance executed by an assigning Lender (unless such assignment is being made in  accordance with Subsection 4.13(d), Subsection 4.15(c), or Subsection 11.1(g), in which case the  effectiveness of such Assignment and Acceptance shall not require execution by the assigning  Lender) and an Assignee, the Assignee’s completed administrative questionnaire (unless the  Assignee shall already be a Lender hereunder), the processing and recordation fee referred to in  clause (b) of this Subsection 11.6 and any written consent to such assignment required by clause  (b) of this Subsection 11.6, the Administrative Agent shall accept such Assignment and  Acceptance, record the information contained therein in the Register and give prompt notice of  such assignment and recordation to the Parent Borrower. No assignment shall be effective for  purposes of this Agreement unless it has been recorded in the Register as provided in this clause.  (vii) On or prior to the effective date of any assignment pursuant to  this Subsection 11.6(b), the assigning Lender shall surrender to the Administrative Agent any  outstanding Notes held by it evidencing Loans or Commitments, as applicable, all or a portion of  which are being assigned. Any Notes surrendered by the assigning Lender shall be returned by  the Administrative Agent to the Parent Borrower marked “cancelled”.  Notwithstanding the foregoing provisions of this Subsection 11.6(b) or any other provision of this  Agreement, if the Parent Borrower shall have consented thereto in writing in its sole discretion, the Administrative  Agent shall have the right, but not the obligation, to effectuate assignments of Loans and Commitments via an  electronic settlement system acceptable to Administrative Agent and the Parent Borrower as designated in writing  from time to time to the Lenders by Administrative Agent (the “Settlement Service”). At any time when the  Administrative Agent elects, in its sole discretion, to implement such Settlement Service, each such assignment shall  be effected by the assigning Lender and proposed Assignee pursuant to the procedures then in effect under the  Settlement Service, which procedures shall be subject to the prior written approval of the Parent Borrower and shall  be consistent with the other provisions of this Subsection 11.6(b). Each assigning Lender and proposed Assignee  

 

  171  shall comply with the requirements of the Settlement Service in connection with effecting any assignment of Loans  and Commitments pursuant to the Settlement Service. Assignments and assumptions of the Loans and Commitments  shall be effected by the provisions otherwise set forth herein until the Administrative Agent notifies the Lenders of  the Settlement Service as set forth herein. The Parent Borrower may withdraw its consent to the use of the  Settlement Service at any time upon notice to the Administrative Agent, and thereafter assignments and assumptions  of the Loans and Commitments shall be effected by the provisions otherwise set forth herein.  Furthermore, no Assignee, which as of the date of any assignment to it pursuant to this Subsection 11.6(b)  would be entitled to receive any greater payment under Subsection 4.10, 4.11 or 11.5 than the assigning Lender  would have been entitled to receive as of such date under such Subsections with respect to the rights assigned, shall,  notwithstanding anything to the contrary in this Agreement, be entitled to receive such greater payments unless the  assignment was made after an Event of Default under Subsection 9.1(a) or 9.1(f) has occurred and is continuing or  the Parent Borrower has expressly consented in writing to waive the benefit of this provision at the time of such  assignment. For the avoidance of doubt, the foregoing sentence shall not apply to any assignment at the request of a  Borrower pursuant to Subsection 4.13.  (c) (i) Any Lender other than a Conduit Lender may, in the ordinary course of its business and in  accordance with applicable law, without the consent of the Parent Borrower or the Administrative Agent, sell  participations (other than to any Disqualified Lender, or a natural person or the Parent Borrower or any of the Parent  Borrower’s Affiliates or its Subsidiaries (other than Permitted Affiliated Assignees)) to one or more banks or other  entities (a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including  all or a portion of its Commitments and the Loans owing to it); provided that (A) such Lender’s obligations under  this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto  for the performance of such obligations, (C) such Lender shall remain the holder of any such Loan for all purposes  under this Agreement and the other Loan Documents, (D) the Parent Borrower, the Administrative Agent, the  Issuing Lender and the other Lenders shall continue to deal solely and directly with such Lender in connection with  such Lender’s rights and obligations under this Agreement and (E) prior to selling any participation, such Lender  shall have provided the Parent Borrower with not less than 5 Business Days’ advance notice of such sale. Any  agreement 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 may provide that such Lender will not, without the consent of the  Participant, agree to any amendment, modification or waiver that (1) requires the consent of each Lender directly  affected thereby pursuant to the proviso to the second sentence of Subsection 11.1(a) and (2) directly affects such  Participant. Subject to clause (c)(ii) of this Subsection 11.6, each Borrower agrees that each Participant shall be  entitled to the benefits of (and shall have the related obligations under) Subsections 4.10, 4.11, 4.12, 4.13, 4.15 and  11.5 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to clause (b) of  this Subsection 11.6. To the extent permitted by law, each Participant also shall be entitled to the benefits of  Subsection 11.7(b) as though it were a Lender, provided that such Participant shall be subject to Subsection 11.7(a)  as though it were a Lender. Notwithstanding the foregoing, no Lender shall be permitted to sell participations under  this Agreement to any Disqualified Lender and any such participation shall be void ab initio, except to the extent the  Parent Borrower has consented to such participation in writing (in which case such Lender will not be considered a  Disqualified Lender solely for that particular participation). Any attempted participation which does not comply  with Subsection 11.6 shall be null and void.  (ii) No Loan Party shall be obligated to make any greater payment  under Subsection 4.10, 4.11 or 11.5 than it would have been obligated to make in the absence of  any participation, unless the sale of such participation is made with the prior written consent of  the Parent Borrower and the Parent Borrower expressly waives the benefit of this provision at the  time of such participation or such entitlement to receive a greater payment results from a change  in treaty, law or regulation that occurs after the Participant acquired the applicable participation.  Any Participant that is not incorporated under the laws of the United States of America or a state  thereof shall not be entitled to the benefits of Subsection 4.11 unless such Participant complies  with Subsection 4.11(b) and provides the forms and certificates referenced therein to the Lender  that granted such participation (it being understood that documentation required under Subsection  4.11 shall be delivered to the participating Lender).  

 

  172  (d) Any Lender, without the consent of the Parent Borrower or the Administrative Agent, may at any  time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations  of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or central bank  of a member state of the European Union, and this Subsection 11.6 shall not apply to any such pledge or assignment  of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from  any of its obligations hereunder or substitute (by foreclosure or otherwise) any such pledgee or Assignee for such  Lender as a party hereto.  (e) No assignment or participation made or purported to be made to any Assignee or Participant shall  be effective without the prior written consent of the Parent Borrower if it would require the Parent Borrower to make  any filing with any Governmental Authority or qualify any Loan or Note under the laws of any jurisdiction, and the  Parent Borrower shall be entitled to request and receive such information and assurances as it may reasonably  request from any Lender or any Assignee or Participant to determine whether any such filing or qualification is  required or whether any assignment or participation is otherwise in accordance with applicable law.  (f) Notwithstanding the foregoing, any Conduit Lender may assign any or all of the Loans it may  have funded hereunder to its designating Lender without the consent of the Parent Borrower or the Administrative  Agent and without regard to the limitations set forth in Subsection 11.6(b). Each Borrower, each Lender and the  Administrative Agent hereby confirms that it will not institute against a Conduit Lender or join any other Person in  instituting against a Conduit Lender any domestic or foreign bankruptcy, reorganization, arrangement, insolvency or  liquidation proceeding under any state, federal or provincial bankruptcy or similar law, for one year and one day  after the payment in full of the latest maturing commercial paper note issued by such Conduit Lender; provided,  however, that each Lender designating any Conduit Lender hereby agrees to indemnify, save and hold harmless each  other party hereto for any loss, cost, damage or expense arising out of its inability to institute such a proceeding  against such Conduit Lender during such period of forbearance. Each such indemnifying Lender shall pay in full any  claim received from the Parent Borrower pursuant to this Subsection 11.6(f) within 30 Business Days of receipt of a  certificate from a Responsible Officer of the Parent Borrower specifying in reasonable detail the cause and amount  of the loss, cost, damage or expense in respect of which the claim is being asserted, which certificate shall be  conclusive absent manifest error. Without limiting the indemnification obligations of any indemnifying Lender  pursuant to this Subsection 11.6(f), in the event that the indemnifying Lender fails timely to compensate the Parent  Borrower for such claim, any Loans held by the relevant Conduit Lender shall, if requested by the Parent Borrower,  be assigned promptly to the Lender that administers the Conduit Lender and the designation of such Conduit Lender  shall be void.  (g) If the Parent Borrower wishes to replace the Loans or Commitments under any Facility with ones  having different terms, it shall have the option, with the consent of the Administrative Agent and subject to at least  three Business Days’ (or such shorter period as agreed to by the Administrative Agent in its reasonable discretion)  advance notice to the Lenders under such Facility, instead of prepaying the Loans or reducing or terminating the  Commitments to be replaced, to (i) require the Lenders under such Facility to assign such Loans or Commitments to  the Administrative Agent or its designees and (ii) amend the terms thereof in accordance with Subsection 11.1.  Pursuant to any such assignment, all Loans and Commitments to be replaced shall be purchased at par (allocated  among the Lenders under such Facility in the same manner as would be required if such Loans were being  optionally prepaid or such Commitments were being optionally reduced or terminated by the Borrowers),  accompanied by payment of any accrued interest and fees thereon and any amounts owing pursuant to Subsection  4.12. By receiving such purchase price, the Lenders under such Facility shall automatically be deemed to have  assigned the Loans or Commitments under such Facility pursuant to the terms of the form of the Assignment and  Acceptance, and accordingly no other action by such Lenders shall be required in connection therewith. The  provisions of this clause (g) are intended to facilitate the maintenance of the perfection and priority of existing  security interests in the Collateral during any such replacement.  11.7 Adjustments; Set-off; Calculations; Computations.   (a) If any Lender (a “Benefited Lender”) shall at any time receive any payment of all or part of its  Revolving Credit Loans or the Reimbursement Obligations owing to it, or interest thereon, or receive any collateral  in respect thereof (whether voluntarily or involuntarily, by set-off, pursuant to events or proceedings of the nature  

 

  173  referred to in Subsection 9.1(f), or otherwise (except pursuant to Subsection 2.6, 2.7, 2.8, 4.4, 4.9, 4.10, 4.11, 4.12,  4.13(d), 11.1(g) or 11.6)), in a greater proportion than any such payment to or collateral received by any other  Lender, if any, in respect of such other Lender’s Revolving Credit Loans or the Reimbursement Obligations, as the  case may be, owing to it, or interest thereon, such Benefited Lender shall purchase for cash from the other Lenders  an interest (by participation, assignment or otherwise) in such portion of each such other Lender’s Revolving Credit  Loans or the Reimbursement Obligations, as the case may be, owing to it, or shall provide such other Lenders with  the benefits of any such collateral, or the proceeds thereof, as shall be necessary to cause such Benefited Lender to  share the excess payment or benefits of such collateral or proceeds ratably with each of the Lenders; provided,  however, that if all or any portion of such excess payment or benefits is thereafter recovered from such Benefited  Lender, such purchase shall be rescinded, and the purchase price and benefits returned, to the extent of such  recovery, but without interest.  (b) In addition to any rights and remedies of the Lenders provided by law, each Lender shall have the  right, without prior notice to any Borrower, any such notice being expressly waived by each Borrower to the extent  permitted by applicable law, upon the occurrence of an Event of Default under Subsection 9.1(a) to set-off and  appropriate and apply against any amount then due and payable under Subsection 9.1(a) by such Borrower any and  all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits,  indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or  unmatured, at any time held or owing by such Lender or any branch or agency thereof to or for the credit or the  account of such Borrower. Each Lender agrees promptly to notify the Parent Borrower and the Administrative Agent  after any such set-off and application made by such Lender, provided that the failure to give such notice shall not  affect the validity of such set-off and application.  11.8 Judgment.  (a) If, for the purpose of obtaining or enforcing judgment against any Loan Party in any court in any  jurisdiction, it becomes necessary to convert into any other currency (such other currency being hereinafter in this  Subsection 11.8 referred to as the “Judgment Currency”) an amount due under any Loan Document in any currency  (the “Obligation Currency”) other than the Judgment Currency, the conversion shall be made at the rate of exchange  prevailing on the Business Day immediately preceding the date of actual payment of the amount due, in the case of  any proceeding in the courts of the Province of Ontario or in the courts of any other jurisdiction that will give effect  to such conversion being made on such date, or the date on which the judgment is given, in the case of any  proceeding in the courts of any other jurisdiction (the applicable date as of which such conversion is made pursuant  to this Subsection 11.8 being hereinafter in this Subsection 11.8 referred to as the “Judgment Conversion Date”).  (b) If, in the case of any proceeding in the court of any jurisdiction referred to in Subsection 11.8(a),  there is a change in the rate of exchange prevailing between the Judgment Conversion Date and the date of actual  receipt for value of the amount due, the applicable Loan Party shall pay such additional amount (if any, but in any  event not a lesser amount) as may be necessary to ensure that the amount actually received in the Judgment  Currency, when converted at the rate of exchange prevailing on the date of payment, will produce the amount of the  Obligation Currency which could have been purchased with the amount of the Judgment Currency stipulated in the  judgment or judicial order at the rate of exchange prevailing on the Judgment Conversion Date. Any amount due  from any Loan Party under this Subsection 11.8(b) shall be due as a separate debt and shall not be affected by  judgment being obtained for any other amounts due under or in respect of any of the Loan Documents.  (c) The term “rate of exchange” in this Subsection 11.8 means the rate of exchange at which the  Administrative Agent, on the relevant date at or about 12:00 noon (New York time), would be prepared to sell, in  accordance with its normal course foreign currency exchange practices, the Obligation Currency against the  Judgment Currency.  11.9 Counterparts. This Agreement may be executed by one or more of the parties to this Agreement on  any number of separate counterparts (including by telecopy and other electronic transmission), and all of such  counterparts taken together shall be deemed to constitute one and the same instrument. A set of the copies of this  Agreement signed by all the parties shall be delivered to the Parent Borrower and the Administrative Agent.  

 

  174  11.10 Severability. Any provision of this Agreement which is prohibited or unenforceable in any  jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without  invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall  not invalidate or render unenforceable such provision in any other jurisdiction.  11.11 Integration. This Agreement and the other Loan Documents represent the entire agreement of each  of the Loan Parties party hereto and thereto, the Administrative Agent and the Lenders with respect to the subject  matter hereof, and there are no promises, undertakings, representations or warranties by any of the Loan Parties  party hereto, the Administrative Agent or any Lender relative to the subject matter hereof not expressly set forth or  referred to herein or in the other Loan Documents as applicable.  11.12 Governing Law. THIS AGREEMENT AND ANY NOTES AND THE RIGHTS AND  OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT AND ANY NOTES SHALL BE GOVERNED  BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF  NEW YORK, WITHOUT GIVING EFFECT TO ITS PRINCIPLES OR RULES OF CONFLICT OF LAWS TO  THE EXTENT SUCH PRINCIPLES OR RULES ARE NOT MANDATORILY APPLICABLE BY STATUTE  AND WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.  11.13 Submission to Jurisdiction; Waivers. Each party hereto hereby irrevocably and unconditionally:  (a) submits for itself and its property in any legal action or proceeding relating to this Agreement and  the other Loan Documents (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN  DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT) to which it is a party to the exclusive  general jurisdiction of the Supreme Court of the State of New York for the County of New York (the “New York  Supreme Court”), and the United States District Court for the Southern District of New York (the “Federal District  Court,” and together with the New York Supreme Court, the “New York Courts”) and appellate courts from either  of them; provided that nothing in this Agreement shall be deemed or operate to preclude (i) any Agent from bringing  suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the  Obligations (in which case any party shall be entitled to assert any claim or defense, including any claim or defense  that this Subsection 11.13 would otherwise require to be asserted in a legal action or proceeding in a New York  Court), or to enforce a judgment or other court order in favor of the Administrative Agent or the Collateral Agent,  (ii) any party from bringing any legal action or proceeding in any jurisdiction for the recognition and enforcement of  any judgment, (iii) if all such New York Courts decline jurisdiction over any Person, or decline (or in the case of the  Federal District Court, lack) jurisdiction over any subject matter of such action or proceeding, a legal action or  proceeding may be brought with respect thereto in another court having jurisdiction and (iv) in the event a legal  action or proceeding is brought against any party hereto or involving any of its assets or property in another court  (without any collusive assistance by such party or any of its Subsidiaries or Affiliates), such party from asserting a  claim or defense (including any claim or defense that this Subsection 11.13(a) would otherwise require to be  asserted in a legal proceeding in a New York Court) in any such action or proceeding.  (b) consents that any such action or proceeding may be brought in such courts and waives any  objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that  such action or proceeding was brought in an inconvenient forum and agrees not to plead or claim the same;  (c) agrees that service of process in any such action or proceeding may be effected by mailing a copy  thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to the applicable  Borrower, the applicable Lender or the Administrative Agent, as the case may be, at the address specified in  Subsection 11.2 or at such other address of which the Administrative Agent, any such Lender and any such  Borrower shall have been notified pursuant thereto;  (d) agrees that nothing herein shall affect the right to effect service of process in any other manner  permitted by law or (subject to clause (a) above) shall limit the right to sue in any other jurisdiction; and  

 

  175  (e) waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in  any legal action or proceeding referred to in this Subsection 11.13 any consequential or punitive damages.  11.14 Acknowledgements. Each Borrower hereby acknowledges that:  (a) it has been advised by counsel in the negotiation, execution and delivery of this Agreement and  the other Loan Documents;  (b) neither any Agent nor any Other Representative or Lender has any fiduciary relationship with or  duty to any Borrower arising out of or in connection with this Agreement or any of the other Loan Documents, and  the relationship between the Administrative Agent and Lenders, on the one hand, and the Borrowers, on the other  hand, in connection herewith or therewith is solely that of creditor and debtor; and  (c) no joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of  the transactions contemplated hereby and thereby among the Lenders or among any of the Borrowers and the  Lenders.  11.15 Waiver Of Jury Trial. EACH OF THE BORROWERS, THE AGENTS AND THE LENDERS  HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION  OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY NOTES OR ANY OTHER LOAN  DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.  11.16 Confidentiality.   (a) Each Agent and each Lender agrees to keep confidential any information (A) provided to it by or  on behalf of Holdings or any of the Borrowers or any of their respective Subsidiaries pursuant to or in connection  with the Loan Documents or (B) obtained by such Lender based on a review of the books and records of Holdings or  any of the Borrowers or any of their respective Subsidiaries; provided that nothing herein shall prevent any Lender  from disclosing any such information (i) to any Agent, any Other Representative or any other Lender, (ii) to any  Transferee, or prospective Transferee or any creditor or any actual or prospective counterparty (or its advisors) to  any swap or derivative transaction relating to any Borrower and its obligations which agrees to comply with the  provisions of this Subsection 11.16 pursuant to a written instrument (or electronically recorded agreement from any  Person listed above in this clause (ii), in respect to any electronic information (whether posted or otherwise  distributed on any Platform) for the benefit of the Parent Borrower (it being understood that each relevant Lender  shall be solely responsible for obtaining such instrument (or such electronically recorded agreement))), (iii) to its  Affiliates and the employees, officers, partners, directors, agents, attorneys, accountants, auditors, consultants and  other professional advisors of it and its affiliates, provided that such Lender shall inform each such Person of the  agreement under this Subsection 11.16 and take reasonable actions to cause compliance by any such Person referred  to in this clause (iii) with this agreement (including, where appropriate, to cause any such Person to acknowledge its  agreement to be bound by the agreement under this Subsection 11.16), (iv) upon the request or demand of any  Governmental Authority having jurisdiction over such Lender or its affiliates or to the extent required in response to  any order of any court or other Governmental Authority or as shall otherwise be required pursuant to any  Requirement of Law, provided that, other than with respect to any disclosure to any bank regulatory authority, such  Lender shall, unless prohibited by any Requirement of Law, notify the Parent Borrower of any disclosure pursuant  to this clause (iv) as far in advance as is reasonably practicable under such circumstances, (v) which has been  publicly disclosed other than in breach of this Agreement, (vi) in connection with the exercise of any remedy  hereunder, under any Loan Document or under any Interest Rate Protection Agreement, (vii) in connection with  periodic regulatory examinations and reviews conducted by the National Association of Insurance Commissioners or  any Governmental Authority having jurisdiction over such Lender or its affiliates (to the extent applicable), (viii) in  connection with any litigation to which such Lender (or, with respect to any Interest Rate Protection Agreement, any  affiliate of any Lender party thereto) may be a party subject to the proviso in clause (iv) above, and (ix) if, prior to  such information having been so provided or obtained, such information was already in an Agent’s or a Lender’s  possession on a non-confidential basis without a duty of confidentiality to any Borrower being violated.  Notwithstanding any other provision of this Agreement, any other Loan Document or any Assignment and  

 

  176  Acceptance, the provisions of this Subsection 11.16 shall survive with respect to each Agent and Lender until the  second anniversary of such Agent or Lender ceasing to be an Agent or a Lender, respectively; provided that in no  case shall any Agent or Lender cease to be obligated pursuant to this Subsection 11.16 prior to the third anniversary  of the Closing Date.   (b) Notwithstanding anything to the contrary herein, the Administrative Agent may disclose  information concerning the terms and conditions of this Agreement and the other Loan Documents to loan  syndication and pricing reporting services or in its marketing or promotional materials, with such information to  consist of deal terms and other information customarily found in such publications or marketing or promotional  materials and may otherwise use the name, logos, and other insignia of any Borrower or the other Loan Parties and  the Commitments provided hereunder in any “tombstone” or other advertisements, on its website or in other  marketing materials of the Administrative Agent.  (c) Each Lender acknowledges that any such information referred to in Subsection 11.16(a), and any  information (including requests for waivers and amendments) furnished by the Borrowers or the Administrative  Agent pursuant to or in connection with this Agreement and the other Loan Documents, may include material non- public information concerning the Borrowers, the other Loan Parties and their respective Affiliates or their  respective securities. Each Lender represents and confirms that such Lender has developed compliance procedures  regarding the use of material non-public information; that such Lender will handle such material non-public  information in accordance with those procedures and applicable law, including United States federal and state  securities laws; and that such Lender has identified to the Administrative Agent a credit contact who may receive  information that may contain material non-public information in accordance with its compliance procedures and  applicable law.  11.17 Accordion Indebtedness; Additional Indebtedness. In connection with the incurrence by any Loan  Party or any Subsidiary thereof of Accordion Indebtedness or Additional Indebtedness, each of the Administrative  Agent and the Collateral Agent agree to execute and deliver any amendments, amendments and restatements,  restatements or waivers of or supplements to or other modifications to, any Security Document, and to make or  consent to any filings or take any other actions in connection therewith, as may be reasonably deemed by the Parent  Borrower to be necessary or reasonably desirable for any Lien on the assets of any Loan Party permitted to secure  such Accordion Facility or Additional Indebtedness to become a valid, perfected lien (with such priority as may be  designated by the relevant Loan Party or Subsidiary, to the extent such priority is permitted by the Loan Documents)  pursuant to the Security Document being so amended, amended and restated, restated, waived, supplemented or  otherwise modified or otherwise.  11.18 USA Patriot Act Notice. Each Lender hereby notifies each Borrower that pursuant to the  requirements of the USA Patriot Act (Title III of Pub.:  107-56 (signed into law October 26, 2001)) (the “Patriot  Act”) and the CDD Rule, it is required to obtain, verify, and record information that identifies each Borrower, which  information includes the name of each Borrower and other information that will allow such Lender to identify each  Borrower in accordance with the Patriot Act, and each Borrower agrees to provide such information from time to  time to any Lender.  11.19 Electronic Execution. The words “execution,” “signed,” “signature” and words of like import in  this Agreement, any Assignment and Acceptance or in any amendment or other modification hereof (including  waivers and consents) shall be deemed to include electronic signatures 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  Agent reserves the right, in its sole discretion, to accept, deny, or condition acceptance of any electronic signature on  this Agreement or on any notice delivered to such Agent under this Agreement or any other Loan Document.  Each  of the parties hereto represents and warrants to the other parties hereto that it has the corporate capacity and  authority to execute this Agreement through electronic means and there are no restrictions for doing so in such  party’s organizational documents.  

 

  177  11.20 Joint and Several Liability; Postponement of Subrogation.   (a) The obligations of the Borrowers hereunder and under the other Loan Documents to which each  Borrower is a party shall be joint and several and, as such, each Borrower shall be liable for all of the such  obligations of the other Borrowers under this Agreement and the other Loan Documents to which each Borrower is a  party. To the fullest extent permitted by law the liability of each Borrower for the obligations under this Agreement  and the other Loan Documents of the other applicable Borrowers with whom it has joint and several liability shall be  absolute, unconditional and irrevocable, without regard to (i) the validity or enforceability of this Agreement or any  other Loan Document, any of the obligations hereunder or thereunder or any other collateral security therefor or  guarantee or right of offset with respect thereto at any time or from time to time held by any applicable Secured  Party, (ii) any defense, set-off or counterclaim (other than a defense of payment or performance hereunder; provided  that no Borrower hereby waives any suit for breach of a contractual provision of any of the Loan Documents) which  may at any time be available to or be asserted by such other applicable Borrower or any other Person against any  Secured Party or (iii) any other circumstance whatsoever (with or without notice to or knowledge of such other  applicable Borrower or such Borrower) which constitutes, or might be construed to constitute, an equitable or legal  discharge of such other applicable Borrower for the obligations hereunder or under any other Loan Document, or of  such Borrower under this Subsection 11.20, in bankruptcy or in any other instance.  (b) Each Borrower agrees that it will not exercise any rights which it may acquire by way of rights of  subrogation under this Agreement, by any payments made hereunder or otherwise, until the prior payment in full in  cash of all of the obligations hereunder and under any other Loan Document, the termination or expiration of all  Letters of Credit and the permanent termination of all Commitments. Any amount paid to any Borrower on account  of any such subrogation rights prior to the payment in full in cash of all of the obligations hereunder and under any  other Loan Document, the termination or expiration of all Letters of Credit and the permanent termination of all  Commitments shall be held in trust for the benefit of the applicable Secured Parties and shall immediately be paid to  the Administrative Agent for the benefit of the applicable Secured Parties and credited and applied against the  obligations of the applicable Borrowers, whether matured or unmatured, in such order as the Administrative Agent  shall elect. In furtherance of the foregoing, for so long as any obligations of the Borrowers hereunder, any Letters of  Credit or any Commitments remain outstanding, each Borrower shall refrain from taking any action or commencing  any proceeding against any other Borrower (or any of its successors or assigns, whether in connection with a  bankruptcy proceeding or otherwise) to recover any amounts in respect of payments made in respect of the  obligations hereunder or under any other Loan Document of such other Borrower to any Secured Party.   (c) Each Borrower represents and warrants to the Agents and Lenders that such Borrower is currently  informed of the financial condition of each Borrower (and all Borrowers, collectively) and of all other circumstances  which a diligent inquiry would reveal and which bear upon the risk of nonpayment of the Obligations. Each  Borrower further represents and warrants to the Agents and Lenders that such Borrower has read and understands  the terms and conditions of the Loan Documents. Each Borrower hereby covenants that such Borrower will continue  to keep informed of the financial condition of all Borrowers and of all other circumstances which bear upon the risk  of nonpayment or nonperformance of the Obligations.  11.21 Reinstatement. This Agreement shall remain in full force and effect and continue to be effective  should any petition or other proceeding be filed by or against any Loan Party for liquidation or reorganization,  should any Loan Party become insolvent or make an assignment for the benefit of any creditor or creditors or should  an interim receiver, receiver, receiver and manager or trustee be appointed for all or any significant part of any Loan  Party’s assets, and shall continue to be effective or to be reinstated, as the case may be, if at any time payment and  performance of the obligations of the Borrowers under the Loan Documents, or any part thereof, is, pursuant to  applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the  obligations, whether as a fraudulent preference, reviewable transaction or otherwise, all as though such payment or  performance had not been made. In the event that any payment, or any part thereof, is rescinded, reduced, restored  or returned, the obligations of the Borrowers hereunder shall be reinstated and deemed reduced only by such amount  paid and not so rescinded, reduced, restored or returned.  11.22 Designated Cash Management Agreements, Designated Hedging Agreements and Designated  Vendor Financing Arrangements. (a) The Parent Borrower may from time to time elect by notice in writing to the  

 

  178  Administrative Agent (with a copy to the Cash Management Party, Hedging Party, Lender, Affiliate of any Lender  or other Person, as applicable, party to the Bank Products Agreement, Interest Rate Protection Agreement, Hedging  Agreement, other Permitted Hedging Arrangement or Vendor Financing Arrangement, as applicable, to which the  notice relates) that (x)(i) a Bank Products Agreement with any Cash Management Party is to be a “Designated Cash  Management Agreement” having monetary obligations that are subject to the waterfall provisions set forth in  Subsection 10.15 and (ii) the Administrative Agent may in its Permitted Discretion establish a Designated Cash  Management Reserve with respect to any such Designated Cash Management Agreement in an amount (which  amount shall be specified in such notice) equal to the maximum facility amount under such Designated Cash  Management Agreement owing to any Cash Management Party, so long as, immediately after giving effect thereto,  the aggregate amount of Available Loan Commitments would be not less than zero, (y)(i) an Interest Rate Protection  Agreement, Hedging Agreement or other Permitted Hedging Arrangement with any Hedging Party is to be a  “Designated Hedging Agreement” having monetary obligations that are subject to the waterfall provisions set forth  in Subsection 10.15 and (ii) the Administrative Agent may in its Permitted Discretion establish a Designated  Hedging Reserve with respect to any such Designated Hedging Agreement in an amount (which amount shall be  specified in such notice) equal to the anticipated monetary obligations of the Loan Parties under such Designated  Hedging Agreement owing to any Hedging Party, so long as, immediately after giving effect thereto, the aggregate  amount of Available Loan Commitments would be not less than zero, or (z)(i) a Vendor Financing Arrangement  with any Lender or an Affiliate of any Lender is to be a “Designated Vendor Financing Arrangement” having  monetary obligations that are subject to the waterfall provisions set forth in Subsection 10.15 and (ii) the  Administrative Agent may in its Permitted Discretion establish a Designated Vendor Financing Reserve with respect  to any such Designated Vendor Financing Arrangement in an amount (which amount shall be specified in such  notice) equal to the anticipated monetary obligations of the Loan Parties under such Designated Vendor Financing  Arrangement owing to any Lender or an Affiliate of any Lender, so long as, immediately after giving effect thereto,  the aggregate amount of Available Loan Commitment would not be less than zero; provided that (i) no Designated  Cash Management Agreement, Designated Hedging Agreement or Designated Vendor Financing Arrangement can  be secured at the same time on a first lien basis by the Cash Flow Priority Collateral (and any request under this  Subsection 11.22 will be deemed to be a representation by the Borrower Representative to such effect), and (ii) no  monetary obligations under any Designated Cash Management Agreement, Designated Hedging Agreement or  Designated Vendor Financing Arrangement shall receive any benefit of the designation under this Subsection 11.22  after the Discharge of ABL Obligations (as defined in the Intercreditor Agreement), provided, further, that no Bank  Products Agreement shall be designated as a “Designated Cash Management Agreement”, no Interest Rate  Protection Agreement, Hedging Agreement or other Permitted Hedging Arrangement shall be designated as a  “Designated Hedging Agreement” and no Vendor Financing Arrangement shall be designated as a “Designated  Vendor Financing Arrangement” if, at the time of such designation, the establishment of a Designated Cash  Management Reserve, Designated Hedging Reserve or Designated Vendor Financing Reserve in connection with  such Designated Cash Management Agreement, Designated Hedging Agreement or Designated Vendor Financing  Arrangement, as applicable, would result in the aggregate amount of Available Loan Commitments being less than  zero. The Parent Borrower may from time to time instruct the Administrative Agent to (i) reduce or eliminate the  amount of any Designated Cash Management Reserve, Designated Hedging Reserve or Designated Vendor  Financing Reserve by delivering to the Administrative Agent a notice of such reduction or elimination, as applicable,  together with a written agreement with, or a written consent of, the Cash Management Party, Hedging Party, Lender  of Affiliate of a Lender, as applicable, party to the Designated Cash Management Agreement, Designated Hedging  Agreement or Designated Vendor Financing Arrangement to which the Designated Cash Management Reserve,  Designated Hedging Reserve or Designated Vendor Financing Reserve relates, and such reduction or elimination in  the amount of any such reserve shall not exceed the amount by which the monetary obligations (or maximum  facility amount) thereunder have been reduced or eliminated, or (ii) increase the amount of any Designated Cash  Management Reserve, Designated Hedging Reserve or Designated Vendor Financing Reserve by notice in writing to  the Administrative Agent (with a copy to the Cash Management Party, Hedging Party, Lender of Affiliate of a  Lender, as applicable, party to the Designated Cash Management Agreement, Designated Hedging Agreement or  Designated Vendor Financing Arrangement to which the Designated Cash Management Reserve, Designated  Hedging Reserve or Designated Vendor Financing Reserve relates), in an amount of the additional monetary  obligations (or maximum facility amount) thereunder, so long as in the case of this clause (ii), immediately after  giving effect to such increase, the aggregate amount of Available Loan Commitments would be not less than zero.  11.23 Acknowledgement and Consent to Bail-In of EEA Financial Institutions. Notwithstanding  anything to the contrary herein or in any other Loan Document, each party hereto acknowledges that any liability of  

 

  179  any party hereto that is an EEA Financial Institution arising hereunder or under any other Loan Document, to the  extent such liability is unsecured (all such liabilities, other than any Excluded Liability, the “Covered Liability”),  may be subject to Write-down and Conversion Powers and agrees and consents to, and acknowledges and agrees to  be bound by:  (a) the application of Write-Down and Conversion Powers to any Covered Liability arising hereunder  or under any other Loan Document which may be payable to it by any party hereto that is an EEA Financial  Institution; and  (b) the effects of any Bail-in Action on any such Covered Liability, including, if applicable:  (i) a reduction in full or in part or cancellation of any such  Covered Liability;  (ii) a conversion of all, or a portion of, such Covered Liability into  shares or other instruments of ownership in such EEA Financial Institution, its parent  undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that  such shares or other instruments of ownership will be accepted by it in lieu of any rights with  respect to any such Covered Liability under this Agreement or any other Loan Document; or  (iii) the variation of the terms of such Covered Liability in  connection with the exercise of Write-Down and Conversion Powers.  Notwithstanding anything to the contrary herein, nothing contained in this Subsection 11.23 shall modify or  otherwise alter the rights or obligations under this Agreement or any other Loan Document with respect to any  liability that is not a Covered Liability.  11.24 Acknowledgement Regarding Any Supported QFCs. To the extent that the Loan Documents  provide support, through a guarantee or otherwise, for Hedging Agreements or any other agreement or instrument  that is a QFC (such support, “QFC Credit Support” and each such QFC a “Supported QFC”), the parties  acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation  under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer  Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in  respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that  the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New  York and/or of the United States or any other state of the United States): In the event a Covered Party that is party to  a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution  Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and  obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such  Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the  transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit  Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or  a state of the United States.  In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes  subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that  might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such  Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under  the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of  the United States or a state of the United States.  Without limitation of the foregoing, it is understood and agreed that  rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any  Covered Party with respect to a Supported QFC or any QFC Credit Support.  11.25 Cash Management Party. Each Cash Management Party in its capacity as such shall be deemed a  third party beneficiary hereof and of the provisions of the other Loan Documents for purposes of any reference in a  Loan Document to the parties for whom Administrative Agent is acting.  Administrative Agent hereby agrees to act  as agent for such Cash Management Parties and, by virtue of entering into a Bank Products Agreement, the  

 

  180  applicable Cash Management Party shall be automatically deemed to have appointed Administrative Agent as its  agent and to have accepted the benefits of the Loan Documents.  It is understood and agreed that the rights and  benefits of each Cash Management Party under the Loan Documents consist exclusively of such Cash Management  Party’s being a beneficiary of the Liens and security interests (and, if applicable, guarantees) granted to  Administrative Agent and the right to share in payments and collections out of the Collateral as more fully set forth  herein. In addition, each Cash Management Party, by virtue of entering into a Bank Products Agreement, shall be  automatically deemed to have agreed that Agent shall have the right, but shall have no obligation, to establish,  maintain, relax, or release reserves in respect of the Bank Products Obligations and that if reserves are established  there is no obligation on the part of Administrative Agent to determine or insure whether the amount of any such  reserve is appropriate or not.  In connection with any such distribution of payments or proceeds of Collateral,  Administrative Agent shall be entitled to assume no amounts are due or owing to any Cash Management Party  unless such Cash Management Party has provided a written certification (setting forth a reasonably detailed  calculation) to Agent as to the amounts that are due and owing to it and such written certification is received by  Agent a reasonable period of time prior to the making of such distribution.  Administrative Agent shall have no  obligation to calculate the amount due and payable with respect to any Cash Management Arrangements, but may  rely upon the written certification of the amount due and payable from the applicable Cash Management Party.  In  the absence of an updated certification, Agent shall be entitled to assume that the amount due and payable to the  applicable Cash Management Party is the amount last certified to Administrative Agent by such Cash Management  Party as being due and payable (less any distributions made to such Cash Management Party on account thereof).   Borrowers may obtain services under any Cash Management Arrangements from any Cash Management Party,  although Borrowers are not required to do so.  Each Borrower acknowledges and agrees that no Cash Management  Party has committed to provide services under any Cash Management Arrangements and that the providing of such  services under Cash Management Arrangements by any Cash Management Party is in the sole and absolute  discretion of such Cash Management Party.  Notwithstanding anything to the contrary in this Agreement or any  other Loan Document, no Cash Management Party shall have any voting or approval rights hereunder (or be deemed  a Lender) solely by virtue of its status as the provider or holder of such agreements or products or the Obligations  owing thereunder, nor shall the consent of any such provider or holder be required (other than in their capacities as  Lenders, to the extent applicable) for any matter hereunder or under any of the other Loan Documents, including as  to any matter relating to the Collateral or the release of Collateral or Guarantors.  11.26 No Novation.   (a) This Agreement does not extinguish the obligations for the payment of money outstanding under  the Existing Credit Agreement or discharge or release the obligations or the liens or priority of any pledge, security  agreement or any other security therefor.  Nothing herein contained shall be construed as a substitution or novation  of the obligations outstanding under the Existing Credit Agreement, the other Existing Loan Documents or  instruments securing the same, which shall remain in full force and effect, except as modified hereby or by  instruments executed concurrently herewith.  Nothing expressed or implied in this Agreement shall be construed as a  release or other discharge of any Borrower or any Guarantor from any of its obligations or liabilities under the  Existing Credit Agreement or any of the security agreements, pledge agreements, guaranties or other loan  documents executed in connection therewith.  Each Borrower hereby (i) confirms and agrees that each Existing  Loan Document to which it is a party that is not being amended and restated or expressly terminated concurrently  herewith is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects  except that on and after the Closing Date, all references in any such Existing Loan Document to “the Credit  Agreement,” “thereto,” “thereof,” “thereunder” or words of like import referring to the Existing Credit Agreement  shall mean the Existing Credit Agreement as amended and restated by this Agreement; and (ii) confirms and agrees  that to the extent that any such Existing Loan Document (excluding any that is expressly being terminated on the  date hereof) purports to assign or pledge to any of Agents or the Lenders or to grant to any of Agents or the Lenders  a security interest in or lien on, any collateral as security for all or any portion of any of the Obligations of any  Borrower or any other Loan Party, as the case may be, from time to time existing in respect of the Existing Credit  Agreement or the Existing Loan Document, such pledge or assignment or grant of the security interest or lien is  hereby ratified and confirmed in all respects with respect to this Agreement and the Loan Documents.  (b) Each Borrower and each Guarantor (i) consents to the amendment and restatement of the Existing  Credit Agreement by this Agreement; (ii) acknowledges and agrees that (x) its obligations owing to Agents and  

 

  181  Lenders; and (y) the prior grant or grants of security interests in favor of Agents and Lenders in its properties and  assets, under each Existing Loan Document (unless being expressly terminated on the date hereof), and each Loan  Document to which it is a party shall be in respect of the obligations of such Borrower or such Guarantor, as the case  may be, under this Agreement and the other Loan Documents; and (c) agrees that, except as expressly amended  hereby (or expressly terminated on the date hereof), each of the Existing Loan Documents to which it is a party is  and shall remain in full force and effect.  Borrowers hereby confirm and agree that all outstanding principal, interest  and fees and other obligations under the Existing Credit Agreement immediately prior to the Closing Date shall, to  the extent not paid on the Closing Date, from and after the Closing Date, be, without duplication, Obligations owing  and payable pursuant to this Agreement and the other Loan Documents as in effect from time to time, shall accrue  interest thereon as specified in this Agreement, and shall be secured by this Agreement and the other Loan  Documents.   [SIGNATURE PAGES FOLLOW]  

 

  [Signature Page to ABL Credit Agreement]    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed, all as of the  date first written above.  PARENT BORROWER:  ATKORE INTERNATIONAL, INC.  By:     Name:  Title:  

 

  [Signature Page to ABL Credit Agreement]  AGENT AND LENDERS:  WELLS FARGO BANK, NATIONAL  ASSOCIATION,  as Administrative Agent, Collateral Agent, Issuing  Lender, Lender and Swingline Lender  By:     Name:  Title:

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