Document:

bofa-globelife2020revolv

                                                             Execution Version                                                                                                                     $750,000,000                              CREDIT AGREEMENT                             Dated as of August 24, 2020                                      among                                GLOBE LIFE INC.,                                 as the Borrower,                                  TMK RE, LTD.,                                 as a Loan Party,                          THE LENDERS PARTY HERETO,                             BANK OF AMERICA, N.A.,            as Administrative Agent, Swing Line Lender and L/C Administrator,                       U.S. BANK NATIONAL ASSOCIATION                                      and                 WELLS FARGO BANK, NATIONAL ASSOCIATION                             as Co-Syndication Agents                                                                    _________________________                             BOFA SECURITIES, INC.,                      U.S. BANK NATIONAL ASSOCIATION                                      and                        WELLS FARGO SECURITIES, LLC                    as Joint Lead Arrangers and Joint Book Runners                                   BBVA USA,                                REGIONS BANK                                      and                                 TRUIST BANK                            as Co-Documentation Agents                                                                                     13227198v7 27112.00011                

 

                            TABLE OF CONTENTS                                                                                                                   Page    ARTICLE I    DEFINITIONS AND ACCOUNTING TERMS ................................................1        1.01  Defined Terms ....................................................................................................1        1.02  Other Interpretive Provisions............................................................................. 28        1.03  Accounting Terms. ............................................................................................ 29        1.04  Rounding .......................................................................................................... 30        1.05  Times of Day .................................................................................................... 30        1.06  Letter of Credit Amounts .................................................................................. 30        1.07  Divisions ........................................................................................................... 30        1.08  Rates ................................................................................................................. 30   ARTICLE II   THE COMMITMENTS AND CREDIT EXTENSIONS ................................. 30        2.01  Loans ................................................................................................................ 30        2.02  Borrowings, Conversions and Continuations of Loans....................................... 31        2.03  Letters of Credit. ............................................................................................... 32        2.04  Swing Line Loans. ............................................................................................ 46        2.05  Prepayments...................................................................................................... 49        2.06  Termination or Reduction of Commitments....................................................... 50        2.07  Repayment of Loans. ........................................................................................ 50        2.08  Interest. ............................................................................................................. 50        2.09  Fees .................................................................................................................. 51        2.10  Computation of Interest and Fees ...................................................................... 52        2.11  Evidence of Debt............................................................................................... 52        2.12  Payments Generally; Administrative Agent’s Clawback. ................................... 53        2.13  Sharing of Payments by Lenders ....................................................................... 54        2.14  Increase in Commitments. ................................................................................. 55        2.15  Defaulting Lenders. ........................................................................................... 57        2.16  Extension of Maturity Date. .............................................................................. 59   ARTICLE III  TAXES, YIELD PROTECTION AND ILLEGALITY ................................... 61        3.01  Taxes. ............................................................................................................... 61        3.02  Illegality............................................................................................................ 65        3.03  Inability to Determine Rates .............................................................................. 66        3.04  Increased Costs; Reserves on Eurodollar Rate Loans. ........................................ 68        3.05  Compensation for Losses .................................................................................. 70        3.06  Mitigation Obligations; Replacement of Lenders. .............................................. 71        3.07  Survival ............................................................................................................ 71   ARTICLE IV   CONDITIONS PRECEDENT TO CREDIT EXTENSIONS ........................... 71        4.01  Conditions of Effective Date ............................................................................. 71        4.02  Conditions to all Credit Extensions ................................................................... 74                                          -i-      13227198v7 27112.00011   

 

                            TABLE OF CONTENTS                                    (continued)                                                                          Page    ARTICLE V    REPRESENTATIONS AND WARRANTIES ................................................ 75        5.01  Existence, Qualification and Power; Compliance with Laws ............................. 75        5.02  Authorization; No Contravention ...................................................................... 75        5.03  Governmental Authorization; Other Consents ................................................... 75        5.04  Binding Effect ................................................................................................... 75        5.05  Financial Statements; No Material Adverse Effect. ........................................... 75        5.06  Litigation .......................................................................................................... 76        5.07  No Default ........................................................................................................ 76        5.08  Ownership of Property; Liens............................................................................ 76        5.09  Insurance .......................................................................................................... 76        5.10  Taxes ................................................................................................................ 77        5.11  ERISA Compliance. .......................................................................................... 77        5.12  Subsidiaries; Equity Interests ............................................................................ 77        5.13  Margin Regulations; Investment Company Act. ................................................ 78        5.14  Disclosure ......................................................................................................... 78        5.15  Compliance with Laws ...................................................................................... 78        5.16  Insurance Licenses ............................................................................................ 78        5.17  First Priority Interest ......................................................................................... 79        5.18  OFAC; Anti-Corruptions Laws. ........................................................................ 79        5.19  Covered Entities ................................................................................................ 79   ARTICLE VI   AFFIRMATIVE COVENANTS ..................................................................... 79        6.01  Financial Statements ......................................................................................... 79        6.02  Certificates; Other Information.......................................................................... 80        6.03  Notices .............................................................................................................. 83        6.04  Payment of Taxes .............................................................................................. 83        6.05  Preservation of Existence, Etc ........................................................................... 84        6.06  Maintenance of Properties ................................................................................. 84        6.07  Maintenance of Insurance ................................................................................. 84        6.08  Compliance with Laws ...................................................................................... 84        6.09  Books and Records ........................................................................................... 84        6.10  Inspection Rights .............................................................................................. 84        6.11  Use of Proceeds ................................................................................................ 84        6.12  Further Assurances ............................................................................................ 85        6.13  Collateral Requirements .................................................................................... 85        6.14  Conduct of Insurance Business .......................................................................... 85        6.15  Anti-Corruption Laws; Sanctions ...................................................................... 86   ARTICLE VII  NEGATIVE COVENANTS ........................................................................... 86        7.01  Liens ................................................................................................................. 86        7.02  Subsidiary Indebtedness .................................................................................... 86        7.03  Acquisitions ...................................................................................................... 87                                        -ii-      13227198v7 27112.00011   

 

                            TABLE OF CONTENTS                                    (continued)                                                                          Page          7.04  Fundamental Changes ....................................................................................... 87        7.05  Dispositions ...................................................................................................... 87        7.06  Use of Proceeds ................................................................................................ 87        7.07  Financial Covenants. ......................................................................................... 87        7.08  Sanctions .......................................................................................................... 88        7.09  Anti-Corruption Laws ....................................................................................... 88   ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES .................................................. 88        8.01  Events of Default .............................................................................................. 88        8.02  Remedies Upon Event of Default ...................................................................... 90        8.03  Application of Funds ......................................................................................... 91   ARTICLE IX   ADMINISTRATIVE AGENT ........................................................................ 92        9.01  Appointment and Authority. .............................................................................. 92        9.02  Rights as a Lender ............................................................................................. 93        9.03  Exculpatory Provisions ..................................................................................... 93        9.04  Reliance by Administrative Agent ..................................................................... 94        9.05  Delegation of Duties ......................................................................................... 94        9.06  Resignation of Administrative Agent ................................................................ 94        9.07  Non-Reliance on Administrative Agent and Other Lenders ............................... 95        9.08  No Other Duties, Etc ......................................................................................... 96        9.09  Administrative Agent May File Proofs of Claim ............................................... 96        9.10  No Other Duties, etc.......................................................................................... 97        9.11  Certain ERISA Matters. .................................................................................... 97   ARTICLE X    MISCELLANEOUS ....................................................................................... 98        10.01 Amendments, Etc .............................................................................................. 98        10.02 Notices; Effectiveness; Electronic Communication. ........................................ 100        10.03 No Waiver; Cumulative Remedies; Enforcement ............................................ 102        10.04 Expenses; Indemnity; Damage Waiver. ........................................................... 103        10.05 Payments Set Aside ......................................................................................... 105        10.06 Successors and Assigns; Participations. ........................................................... 105        10.07 Confidentiality ................................................................................................ 110        10.08 Right of Setoff ................................................................................................ 111        10.09 Interest Rate Limitation ................................................................................... 111        10.10 Counterparts; Integration; Effectiveness .......................................................... 111        10.11 Survival of Representations and Warranties .................................................... 112        10.12 Severability ..................................................................................................... 113        10.13 Replacement of Lenders .................................................................................. 113        10.14 Governing Law; Jurisdiction; Etc. ................................................................... 114        10.15 Waiver of Jury Trial ........................................................................................ 115        10.16 Exceptions to Covenants ................................................................................. 115                                        -iii-     13227198v7 27112.00011   

 

                           TABLE OF CONTENTS                                   (continued)                                                                         Page                      10.17 No Strict Construction..................................................................................... 115       10.18 USA PATRIOT Act Notice ............................................................................. 115       10.19 Guaranty. ........................................................................................................ 116       10.20 No Advisory or Fiduciary Responsibility ........................................................ 119       10.21 ENTIRE AGREEMENT ................................................................................. 120       10.22 Acknowledgment and Consent to Bail-In of Affected Financial Institutions .... 120       10.23 Acknowledgement Regarding Any Supported QFCs ....................................... 121                                        -iv-     13227198v7 27112.00011                

 

   SCHEDULES         1.01  Collateral Advance Rates        2.01  Commitments and Applicable Percentages        2.03  Existing Letters of Credit        5.05  Supplement to Interim Financial Statements        5.06  Existing Litigation        5.12  Subsidiaries and Other Equity Investments        5.16  Insurance Licenses        10.02 Administrative Agent’s Office, Certain Addresses for Notices   EXHIBITS                    Form of         A     Assignment and Assumption        B     Compliance Certificate        C     Loan Notice        D     Revolving Note        E     Several Letter of Credit        F     Swing Line Loan Notice        G     Swing Line Note        H     Borrowing Base Certificate        I     Tax Compliance Certificates                                         -v-                                         13227198v7 27112.00011   

 

                               CREDIT AGREEMENT         This CREDIT AGREEMENT (“Agreement”) is entered into as of August 24, 2020, among  each  lender  from  time  to  time  party  hereto  (collectively,  the  “Lenders”  and  individually,  a  “Lender”), BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C  Administrator, GLOBE  LIFE  INC.,  a  Delaware  corporation  (the  “Borrower”), and  TMK  RE,  LTD., a Bermuda reinsurance corporation (“TMK”).         The Loan Parties have requested, and subject to the terms and conditions set forth in this  Agreement,  the  Administrative  Agent  and  the  Lenders  have  agreed  to  extend,  certain  credit  facilities to the Loan Parties.         In  consideration  of  the  mutual  covenants  and  agreements  herein  contained,  the  parties  hereto covenant and agree as follows:                                    ARTICLE I                                                             DEFINITIONS AND ACCOUNTING TERMS         1.01  Defined Terms.  As used in this Agreement, the following terms shall have the  meanings set forth below:         “Acquisition” means the acquisition by any Person of (a) a majority of the Equity Interests  of  another  Person,  (b) all  or  substantially  all  of  the  assets  of  another  Person  or  (c) all  or  substantially all of a line of business of another Person, in each case (i) whether or not involving a  merger or a consolidation with such other Person and (ii) whether in one transaction or a series of  related transactions.         “Adjusted Fair Market Value” means with respect to any Eligible Collateral, an amount  equal  to  the  product  of  the  Fair  Market  Value  of  such  Eligible  Collateral  and  the  applicable  percentage with respect to such Eligible Collateral as set forth on Schedule 1.01.         “Administrative Agent” means Bank of America in its capacity as administrative agent  under any of the Loan Documents, or any successor administrative agent.         “Administrative  Agent’s  Office”  means the  Administrative  Agent’s  address  and,  as  appropriate,  account  as  set  forth  on Schedule 10.02 or  such  other  address  or  account  as  the  Administrative Agent may from time to time notify to the Loan Parties and the Lenders.         “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied  by the Administrative Agent.         “Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK  Financial Institution.         “Affiliate” means, with respect to any Person, another Person that directly, or indirectly  through one or more intermediaries, Controls or is Controlled by or is under common Control with  the Person specified, and in any event shall include (a) any officer, director or general partner of    13227198v7 27112.00011   

 

   such Person and (b) any Person, or Affiliate of such Person that, directly or indirectly, beneficially  owns 10% or more of the voting Equity Interests of the Person specified.         “Aggregate Commitments” means the Commitments of all the Lenders.  As of the Effective  Date, the Aggregate Commitment is $750,000,000.         “Agreement” means this Credit Agreement.         “AIL” means American Income Life Insurance Company, an Indiana insurance company.         “Annual  Statement”  means  the  annual  statutory  financial  statement  of  any  Insurance  Subsidiary  required  to  be  filed  with  the  insurance  commissioner  (or  similar  authority)  of  its  jurisdiction of  incorporation, which  statement shall  be  in the  form required by such Insurance  Subsidiary’s  jurisdiction of  incorporation or, if  no specific  form  is so required,  in the form of  financial statements recommended by the NAIC to be used for filing annual statutory financial  statements and shall contain the type of information recommended by the NAIC to be disclosed  therein, together with all exhibits or schedules filed therewith.         “Applicable Issuing Party” means (a) in the case of Fronted Letters of Credit, the Fronting  Bank which issued such Fronted Letter of Credit and (b) in the case of Several Letters of Credit,  the L/C Administrator.         “Applicable Law” means in respect of any Person, all provisions of Laws applicable to  such Person, and all orders and decrees of all courts and determinations of arbitrators applicable  to such Person.         “Applicable Percentage” means, with respect to any Lender at any time, the percentage  (carried  out  to  the  ninth  decimal  place)  of  the  Aggregate Commitments  represented  by  such  Lender’s Commitment at such time, subject to adjustment as provided  in Section 2.14.  If the  commitment of each Lender to make Loans and issue Several Letters of Credit, the obligation of  the Fronting Banks to issue Fronted Letters of Credit, and the commitment of each L/C Issuer to  make L/C Credit Extensions have been terminated pursuant to Section 8.02 or if the Aggregate  Commitments have expired, then the Applicable Percentage of each Lender shall be determined  based on the Applicable Percentage of such Lender most recently in effect, giving effect to any  subsequent assignments.  The initial Applicable Percentage of each Lender is set forth opposite  the name of such Lender on Schedule 2.01 or in the Assignment and Assumption pursuant to which  such Lender becomes a party hereto, as applicable.         “Applicable  Rate”  means  the  following  percentages  per  annum,  based  upon  the  Debt  Rating set forth below:                                          2                                          13227198v7 27112.00011   

 

                                        Eurodollar                                        Rate &               Debt Ratings             Letter of   Pricing Level S&P/Moody’s Facility Fee Credit Fee Base Rate All-In Drawn       1        ≥ A+/A1      0.125%      1.125%     0.125%      1.250%        2          A/A2       0.175%      1.325%     0.325%      1.500%        3         A-/A3       0.225%     1.400%       0.400%     1.625%        4       BBB+/Baa1     0.300%     1.575%       0.575%     1.875%        5       < BBB/Baa2    0.375%     1.750%       0.750%     2.125%                 “Debt Rating” means, as of any date of determination, the rating as determined by either  S&P or Moody’s (collectively, the “Debt Ratings”) of the Borrower’s non-credit-enhanced, senior  unsecured  long-term  debt; provided that  if  a  different  Debt  Rating  is  issued  by  each  of  the  foregoing rating agencies, then the higher of such Debt Ratings shall apply (with the Debt Rating  for Pricing Level 1 being the highest and the Debt Rating for Pricing Level 5 being the lowest),  unless there is a split in Debt Ratings of more than one level, in which case the Pricing Level that  is one level lower than the Pricing Level of the higher Debt Rating shall apply.  If at any time the  Borrower has a Debt Rating from either Moody’s or S&P but not from both Moody’s and S&P,  then  the  Pricing  Level  shall  be  based  on the  single  available  Debt  Rating.   If  at  any  time  the  Borrower does not have a Debt Rating from Moody’s and does not have a Debt Rating from S&P,  then Pricing  Level 5 shall apply.  If at any time Pricing Level 5  is applicable pursuant to the  preceding  sentence,  the  Lenders  will,  at  the  request  of  the  Borrower,  enter  into  good  faith  negotiations with the Borrower regarding amending this definition to refer to debt or corporate  credit ratings provided  by one or more  mutually  satisfactory alternate debt or corporate credit  rating providers.         Initially, the Applicable Rate shall be determined based upon the Debt Rating specified in  the certificate delivered pursuant to Section 4.01(a)(vii).  Thereafter, each change in the Applicable  Rate resulting from a publicly announced change in the Debt Rating shall be effective during the  period  commencing  on  the  date  of  the  public  announcement  thereof  and  ending  on  the  date  immediately preceding the effective date of the next such change.         “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an  Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a  Lender.         “Assignment and  Assumption”  means an assignment and assumption entered  into by a  Lender  and  an  assignee  with  the  consent  of  any  party  whose  consent  is  required  by  Section 10.06(b), and accepted by the Administrative Agent, in substantially the form of Exhibit A  or any other form approved by the Administrative Agent.         “Attributable Indebtedness” means, on any date, in respect of any capital or finance lease  of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person  prepared as of such date in accordance with GAAP.                                         3                                          13227198v7 27112.00011   

 

         “Audited  Financial  Statements”  means  the  audited  consolidated  balance  sheet  of  the  Borrower  and  its  Subsidiaries  for  the  fiscal  year  ended  December  31,  2019,  and  the  related  consolidated statements of  income or operations, shareholders’ equity and cash  flows  for such  fiscal year of the Borrower and its Subsidiaries, including the notes thereto.         “Auto-Renewal Letter of Credit” has the meaning specified in Section 2.03(b)(iii).         “Availability Period” means the period from and including the Effective Date to the earliest  of (a) the Maturity Date, (b) the date of termination of the Aggregate Commitments pursuant to  Section 2.06, and (c) the date of termination of the commitment of each Lender to make Loans and  of the obligation of the L/C Issuers to make L/C Credit Extensions pursuant to Section 8.02.         “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the  applicable Resolution Authority in respect of any liability of an Affected Financial Institution.         “Bail-In Legislation” means (a) with respect to any EEA Member Country implementing  Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European  Union, the implementing law, regulation rule or requirement for such EEA Member Country from  time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the  United Kingdom,  Part I of the United Kingdom Banking Act 2009 (as amended from time to time)  and any other law, regulation or rule applicable in the United Kingdom relating to the resolution  of unsound or failing banks, investment firms or other financial institutions or their affiliates (other  than through liquidation, administration or other insolvency proceedings).         “Bank of America” means Bank of America, N.A. and its successors.         “Bank of America Fee Letter” means that certain letter agreement, dated as of July 24,  2020, among the Borrower, Bank of America, N.A. and BofA Securities, Inc.         “Base Rate” means, as of any date of determination, a fluctuating rate of interest per annum  equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Rate for  such day plus 0.50% and (c) the Eurodollar Rate for such day plus 1.00%; provided, however, that  in no event shall the Base Rate as of any date of determination be less than 0%.  If the Base Rate  is being used as an alternate rate of interest pursuant to Section 3.03, then the Base Rate shall be  the greater of clauses (a) and (b) above and shall be determined without reference to clause (c)  above.         “Base Rate Loan” means a Loan that bears interest based on the Base Rate.         “Beneficial Ownership Certification” means a certification regarding beneficial  ownership as required by the Beneficial Ownership Regulation.         “Beneficial Ownership Regulation” means 31 CFR § 1010.230.         “Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is  subject to Title I of ERISA, (b) a “plan” as defined in 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”.                                        4                                          13227198v7 27112.00011   

 

         “Borrower” has the meaning specified in the introductory paragraph hereto.         “Borrower Materials” has the meaning specified in Section 6.02.         “Borrowing” means a Revolving Borrowing or a Swing Line Borrowing, as the context  may require.         “Borrowing Base” means, on any date of determination, an amount equal to the sum of the  Adjusted Fair Market Value of all Eligible Collateral on such date.         “Borrowing Base Certificate” means a certificate substantially in the form of Exhibit H  with such changes therein as the Administrative Agent may reasonably request from time to time.         “Business  Day”  means  (a)  except  as  set  forth  in  clause  (b)  below,  any  day  excluding  Saturday,  Sunday  and  any  day  which  is  a  legal  holiday  under  the  laws  of  the  State  of  North  Carolina, the State of New York or is a day on which banking institutions located in such states  are authorized or required by law or other governmental action to close, and (b) with respect to all  notices, determinations, fundings and payments  in connection with the Eurodollar Rate or any  Eurodollar Rate Loans, any day that is a Business Day described in clause (a) above and that is  also a day for trading by and between banks in Dollar deposits in the London interbank market.         “Cash” means U.S. money, U.S. currency or a Dollar credit balance in a Deposit Account  which is a Collateral Account, which money, currency, credit balance and Deposit Account are  free  and  clear of  any  claim  or  Lien  of  any  Person  other  than  the  Administrative  Agent  or  as  otherwise herein provided.         “Cash Collateralize” has the meaning specified in Section 2.03(g)(ii).         “Change in Law” means the occurrence, after the date of this Agreement, of any of the  following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in  any  law,  rule,  regulation  or  treaty  or  in  the  administration,  interpretation,  implementation  or  application thereof by any Governmental Authority or (c) the making or issuance of any request,  rule,  guideline  or  directive  (whether  or  not  having  the  force  of  law)  by  any  Governmental  Authority; provided that notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall  Street  Reform  and  Consumer  Protection  Act  and  all  requests,  rules,  guidelines  or  directives  thereunder or issued in connection therewith or in the implementation thereof and (ii) all requests,  rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel  Committee on Banking Supervision (or any successor or similar authority) or the United States or  foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to  be a “Change in Law”, regardless of the date enacted, adopted, issued or implemented.         “Change of Control” means an event or series of events by which:               (a)   any “person” or “group” (as such terms are used in Sections 13(d) and 14(d)        of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such        person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or        other  fiduciary  or  administrator of  any  such  plan)  becomes  the  “beneficial  owner”  (as        defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that                                         5                                          13227198v7 27112.00011   

 

         a person or group shall be deemed to have “beneficial ownership” of all securities that such        person or group has the right to acquire (such right, an “option right”), whether such right        is exercisable immediately or only after the passage of time), directly or indirectly, of 20%        or more of the Equity Interests of the Borrower entitled to vote for members of the board        of directors or equivalent governing body of the Borrower on a fully-diluted basis (and        taking  into account all  such Equity Interests that  such person or group has the right to        acquire pursuant to any option right); or               (b)   any “Change of Control” as defined in any Indebtedness of the Borrower or        any  of  its  Subsidiaries  having  an  aggregate  principal  amount  (including  undrawn        committed or available amounts and including amounts owing to all creditors under any        combined or syndicated credit arrangement) of more than $50,000,000 shall occur.         “Code”  means  the  Internal  Revenue  Code  of  1986,  and  the  rules  and  regulations  promulgated thereunder.         “Co-Documentation Agents” means, collectively, BBVA USA, Regions Bank and Truist  Bank.         “Collateral” means, with respect to any Loan Party, all property and assets with respect to  which a security interest is purported to be granted in favor of the Administrative Agent pursuant  to a Security Agreement executed by such Loan Party.         “Collateral  Account”  means  any  account  at Bank  of  America or  other  institution  satisfactory to the Administrative Agent, in its sole discretion, as to which Bank of America (or  such other institution), the Borrower and the Administrative Agent have entered into a Control  Agreement and in which the Administrative Agent has a perfected, first priority security interest.         “Commitment” means, as to each Lender, its obligation to (a) make Revolving Loans to  the  Borrower  pursuant  to Section 2.01,  (b)  issue  Several  Letters  of  Credit  and  purchase  participations  in  L/C  Obligations  arising  under  Fronted  Letters  of  Credit,  and  (c) purchase  participations in Swing Line Loans, in an aggregate principal amount at any one time outstanding  not  to  exceed  the  amount  set  forth  opposite  such  Lender’s  name  on Schedule 2.01 under  the  heading  Commitment or  in  the  Assignment  and Assumption  or  joinder  agreement  pursuant  to  which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from  time to time in accordance with this Agreement.         “Compliance Certificate” means a certificate substantially in the form of Exhibit B.         “Connection  Income  Taxes”  means  Other  Connection  Taxes  that  are  imposed  on  or  measured  by  net  income  (however  denominated) or that  are  franchise  Taxes  or  branch  profits  Taxes.         “Consolidated  Capitalization”  means,  at  any  date  of  determination,  the  sum  of  (a) Consolidated Net Worth as at such date, plus (b) Consolidated Indebtedness as at such date,  plus (c) Subordinated Debt not to exceed 15% of Consolidated Capitalization.                                          6                                          13227198v7 27112.00011   

 

         “Consolidated Indebtedness” means the Indebtedness of the Borrower and its Subsidiaries  (excluding (a) any obligations in respect of Subordinated Debt not to exceed 15% of Consolidated  Capitalization and (b) all borrowings made by any Insurance Subsidiary from any FHLB to the  extent such borrowings are of the type customarily excluded from financial leverage by both S&P  and  Moody’s  in  their  evaluation  of  such  Insurance  Subsidiary  or  similarly  positioned  person)  determined on a consolidated basis in accordance with GAAP.         “Consolidated Net Income” means, for any period of calculation, the net income of the  Borrower and its Subsidiaries calculated on a consolidated basis in accordance with GAAP.         “Consolidated Net Worth” means, at any date of determination, the amount of consolidated  common and preferred shareholders’ equity of the Borrower and its Subsidiaries, determined as at  such  date  in  accordance  with  GAAP; provided, however,  that any  “Accumulated  Other  Comprehensive Income (Loss)” shown on a consolidated balance sheet of the Borrower and its  Subsidiaries prepared in accordance with GAAP shall be excluded when computing Consolidated  Net Worth.         “Contractual Obligation” means, as to any Person, any provision of any security issued by  such Person or of any agreement, instrument or other undertaking to which such Person is a party  or by which it or any of its property is bound.         “Control” means the possession, directly or indirectly, of the power to direct or cause the  direction of the management or policies of a Person, whether through the ability to exercise voting  power,  by  contract  or  otherwise.   “Controlling”  and  “Controlled”  have  meanings  correlative  thereto.         “Control Agreement” means an agreement between the Borrower, Bank of America and  the Administrative Agent with respect to any deposit or securities account of the Borrower in  which a security interest is purported to be granted to the Administrative Agent pursuant to the  Security Agreement in form and substance reasonably acceptable to the Administrative Agent.         “Corporate Debt Securities” means debt securities issued by Persons which are domiciled  in the United States or any State or other political subdivision thereof and which are not individuals  or governmental entities.         “Co-Syndication Agents” means, collectively, U.S. Bank National Association and Wells  Fargo Bank, National Association.         “Covered Entity” has the meaning specified in Section 10.23.         “Credit Extension” means each of the following:  (a) a Borrowing and (b) an L/C Credit  Extension.         “Debtor  Relief  Laws”  means  the  Bankruptcy  Code  of  the  United  States,  and  all  other  liquidation,  conservatorship,  bankruptcy,  assignment  for  the  benefit  of  creditors,  moratorium,  rearrangement,  receivership,  insolvency,  reorganization,  or  similar  debtor  relief  Laws  of  the  United States or other applicable jurisdictions from time to time in effect and affecting the rights  of creditors generally.                                         7                                          13227198v7 27112.00011   

 

         “Default” means any event or condition that constitutes an Event of Default or that, with  the giving of any notice, the passage of time, or both, would be an Event of Default.         “Default Rate” means (a) when used with respect to Obligations other than Letter of Credit  Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate, if any, applicable to  Base Rate Loans plus (iii) 2% per annum; provided, however, that with respect to a Eurodollar  Rate  Loan,  the  Default  Rate  shall  be  an  interest  rate  equal  to  the  interest  rate  (including  any  Applicable Rate) otherwise applicable to such Loan plus 2% per annum, and (b) when used with  respect to Letter of Credit Fees, a rate equal to the Applicable Rate plus 2% per annum.         “Defaulting Lender” means, subject to Section 2.15(g), any Lender that (a) has failed to (i)  fund  all  or  any  portion  of  the  Revolving  Loans,  participations  in  Letters  of  Credit,  payment  obligations under Several Letters of Credit or funded participations in Swing Line Loans required  to be funded by it hereunder within two Business Days of the date such Loans or participations  were required to be funded hereunder unless such Lender notifies the Administrative Agent and  the Borrower in writing that such failure is the result of such Lender’s determination that one or  more  conditions  precedent  to  funding  (each  of  which  conditions  precedent, together  with  any  applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay  to the Administrative Agent, any Fronting Bank, the Swing Line Lender or any other Lender any  other amount required to be paid by it hereunder (including in respect of its participation in Letters  of Credit or Swing Line Loans) within two Business Days of the date when due, (b) has notified  the Borrower, the Administrative Agent, any Fronting Bank or the Swing Line Lender in writing  that it does not intend to comply with its funding obligations hereunder, or has made a public  statement to that effect (unless such writing or public statement relates to such Lender’s obligation  to fund a Loan hereunder and states that such position is based on such Lender’s determination  that a condition precedent to funding (which condition precedent, together with any applicable  default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c)  has failed, within three Business Days after written request by the Administrative Agent or the  Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply  with its prospective funding obligations hereunder (provided that such Lender shall cease to be a  Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the  Administrative Agent and the Borrower), or (d) has, or has a direct or indirect parent company that  has, (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had appointed for it  a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or  similar Person charged with reorganization or liquidation of its business or assets, including the  FDIC or any other state or federal regulatory authority acting in such a capacity or (iii) become  the subject of a Bail-In Action; provided that a Lender shall not be a Defaulting Lender solely by  virtue of the ownership or acquisition of any Equity Interest in that Lender or any direct or indirect  parent company thereof by a Governmental Authority so long as such ownership interest does not  result in or provide such Lender with immunity from the jurisdiction of courts within the United  States or from the enforcement of judgments or writs of attachment on its assets or permit such  Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts  or agreements made with such Lender.  Any determination by the Administrative Agent that a  Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be  conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting  Lender (subject to Section 2.15(g)) upon delivery of written notice of such determination to the  Borrower, each Fronting Bank, the Swing Line Lender and each Lender.                                         8                                          13227198v7 27112.00011   

 

         “Deposit  Account”  means  a  demand,  time,  savings,  passbook  or  similar  account  maintained by a Loan Party with Bank of America.         “Designated Jurisdiction” means any country or territory to the extent that such country or  territory itself is the subject of any Sanction.         “Disposition”  or  “Dispose”  means  the  sale,  transfer,  license,  lease  or other  disposition  (including any sale and leaseback transaction) of any property by any Person, including any sale,  assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable  or any rights and claims associated therewith.         “Dividends” means any dividend or other distribution (whether in cash, securities or other  property)  with  respect  to  any  capital  stock  or  other  Equity  Interest  of  the  Borrower  or  any  Subsidiary.         “Dollar” and “$” mean lawful money of the United States.         “EEA Financial Institution” means (a) any credit institution or investment firm established  in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority,  (b) any entity established in an EEA Member Country which is a parent of an institution described  in  clause  (a) of  this  definition, or  (c)  any  financial  institution  established  in  an EEA  Member  Country which is a Subsidiary of an institution described in clauses (a) or (b) of this definition and  is subject to consolidated supervision with its parent;         “EEA Member Country” means any of the member states of the European Union, Iceland,  Liechtenstein, and Norway.         “EEA  Resolution  Authority” means  any  public  administrative  authority  or  any  Person  entrusted  with  public  administrative  authority  of  any  EEA  Member  Country  (including  any  delegee) having responsibility for the resolution of any EEA Financial Institution.         “Effective  Date”  means  the  first  date  all  the  conditions  precedent  in Section 4.01 are  satisfied or waived in accordance with Section 10.01.         “Eligible Collateral” means Cash, Listed Money Market Funds, Corporate Debt Securities  and U.S. Government Debt Securities, which (a) have the required rating as set forth on Schedule  1.01, (b) are capable of being marked to market on a daily basis and (c) are held in a Collateral  Account.         “Environmental Laws” means any and all federal, state, local, and foreign statutes, laws,  regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises,  licenses, agreements or governmental restrictions relating to pollution and the protection of the  environment  or  the  release  of  any  materials  into  the  environment,  including  those  related  to  hazardous substances or wastes, air emissions and discharges to waste or public systems.         “Environmental  Liability”  means  any  liability,  contingent  or  otherwise  (including  any  liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the  Borrower,  any  other  Loan  Party  or  any  of  their  respective  Subsidiaries  directly  or  indirectly  resulting  from  or  based  upon  (a) violation  of  any  Environmental  Law,  (b) the  generation,  use,                                        9                                          13227198v7 27112.00011   

 

   handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure  to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into  the environment or (e) any contract, agreement or other consensual arrangement pursuant to which  liability is assumed or imposed with respect to any of the foregoing.         “Equity Interests” means, with respect to any Person, all of the shares of capital stock of  (or other ownership or profit  interests, other than a net profits based  bonus program,  in) such  Person, all of the warrants, options or other rights for the purchase or acquisition from such Person  of  shares  of  capital  stock of  (or other ownership or  profit  interests  in)  such  Person,  all  of  the  securities convertible into or exchangeable for shares of capital stock of (or other ownership or  profit interests in) such Person or warrants, rights or options for the purchase or acquisition from  such Person of such shares (or such other interests), and all of the other ownership or profit interests  in  such  Person  (including  partnership,  member  or  trust  interests  therein),  whether  voting  or  nonvoting,  and  whether  or  not  such  shares,  warrants,  options,  rights  or  other  interests  are  outstanding on any date of determination.         “ERISA” means the Employee Retirement Income Security Act of 1974.         “ERISA  Affiliate”  means  any  trade  or  business  (whether  or  not  incorporated)  under  common control with the Borrower within the meaning of Section 414(b) or (c) of the Code (and  Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 or 430 of  the Code).         “ERISA  Event”  means  (a)  a  Reportable  Event  with  respect  to  a  Pension  Plan;  (b)  a  withdrawal by the Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063  of  ERISA  during  a  plan  year in  which  it  was  a  substantial  employer  (as  defined  in  Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal  under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by the Borrower or any  ERISA  Affiliate  from  a  Multiemployer  Plan  or  notification  that  a  Multiemployer  Plan  is  in  reorganization; (d) the filing of a notice of intent to terminate, the treatment of a Plan amendment  as a termination under Sections 4041 or 4041A of ERISA, or the commencement of proceedings  by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or condition which  constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a  trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the imposition of any liability  under  Title  IV  of  ERISA,  other  than  for  PBGC  premiums  due  but  not  delinquent  under  Section 4007 of ERISA, upon the Borrower or any ERISA Affiliate.         “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published  by the Loan Market Association (or any successor person), as in effect from time to time.         “Eurodollar Rate” means:         (a)   for any Interest Period with respect to a Eurodollar Rate Loan, the rate per annum  equal to 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 (“LIBOR”) as published on the applicable Bloomberg screen page  (or such other commercially available source providing such quotations as may be designated by  the  Administrative  Agent  from  time  to  time)  at  approximately  11:00  a.m.,  London  time,  two                                        10                                         13227198v7 27112.00011   

 

   London Banking Days prior to the commencement of such Interest Period, for Dollar deposits (for  delivery on the first day of such Interest Period) with a term equivalent to such Interest Period;         (b)   for any interest calculation with respect to a Base Rate Loan on any date, the rate  per annum equal to LIBOR, at or about 11:00 a.m., London time determined two London Banking  Days prior to such date for Dollar deposits with a term of one month commencing that day; and         (c)   if the Eurodollar Rate shall  be  less than 0%, such rate shall  be deemed 0%  for  purposes of this Agreement.                “Eurodollar Rate Loan” means a Revolving Loan that bears interest at a rate based on the  Eurodollar Rate.         “Event of Default” has the meaning specified in Section 8.01.         “Excluded Taxes” means any of the following Taxes imposed on or with respect to any  Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed  on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes,  in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having  its principal office or, in the case of any  Lender, its applicable Lending Office  located in, the  jurisdiction  imposing  such  Tax  (or  any  political  subdivision  thereof)  or  (ii)  that  are  Other  Connection Taxes, (b) in the case of a Lender, United States federal withholding Taxes imposed  on amounts payable 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 Loan or Commitment (other than pursuant to an assignment request by the  Borrower under Section 10.13) or (ii) such Lender changes its Lending Office, except in each case  to the extent that, pursuant to Section 3.01, amounts with respect to such Taxes were payable 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, (c) Taxes attributable to such Recipient’s failure  to comply with Section 3.01(g) and (d) any United States federal withholding Taxes imposed under  FATCA.         “Existing  Credit  Agreement” means  that  certain  Second  Amended  and  Restated  Credit  Agreement, dated as of May 17, 2016, among the Borrower, TMK Re, Ltd., certain lenders from  time to time party thereto and Wells Fargo Bank, National Association, as administrative agent, as  amended, supplemented or otherwise modified from time to time prior to the date hereof.         “Existing Letters of Credit” means those letters of credit set forth on Schedule 2.03 and  continued under this Agreement pursuant to Section 2.03.         “Existing Several Letters of Credit” has the meaning given to such term in Section 2.03(n).         “Extended Letter of Credit” has the meaning given to such term in Section 2.03(a)(ii).         “Facility” means the revolving credit facility established pursuant to Article II hereof.         “Fair Market Value” means (a) with respect to any publicly traded security the closing  price for such security on the largest exchange on which such security is traded (or if not traded                                         11                                         13227198v7 27112.00011   

 

   on an exchange, then the average of the closing bid and ask prices quoted over-the-counter) on the  date of the determination (as such prices are reported by the Depository Trust Company or if not  so reported, in any nationally recognized financial journal or newspaper), (b) with respect to Cash,  the amount thereof, and (c) with respect to any Eligible Collateral (other than those set forth in  clauses (a), and (b)), the price for such Eligible Collateral on the date of calculation obtained from  a  generally recognized  source  approved  by  the  Administrative  Agent  or  the  most  recent  bid  quotation from such approved source (or, if no generally recognized source exists as to a particular  security, any other source selected in good faith by the Administrative Agent or assigned to such  security by the Administrative Agent in accordance with its standard valuation procedures in effect  at the applicable time).         “FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement  (or any amended or successor version that is substantively comparable and not materially more  onerous to comply with), any current or future regulations or official interpretations thereof, any  agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory  legislation,  rules  or  practices  adopted  pursuant  to  any  intergovernmental  agreement,  treaty  or  convention among Governmental Authorities entered into in connection with the implementation  of the foregoing.         “FDIC” means the Federal Deposit Insurance Corporation.         “Federal Funds Rate” means, for any day, the rate per annum calculated by the Federal  Reserve  Bank  of  New  York  based  on  such  day’s  federal  funds  transactions  by  depository  institutions (as determined in such manner as the Federal Reserve Bank of New York shall set  forth on its public website from time to time) and published on the next succeeding Business Day  by the Federal Reserve Bank of New York as the federal funds effective rate; provided that if the  Federal Funds Rate as so determined would be less than zero, such rate shall be deemed to be zero  for purposes of this Agreement.         “Fee Letters” means, collectively, (a) the Bank of America Fee Letter, (b) the Wells Fargo  Fee Letter, (c) the U.S. Bank Fee Letter and (d) the letter agreement, dated July 24, 2020, among  the Borrower, Bank of America, BofA Securities, Inc., U.S. Bank National Association, Wells  Fargo Bank, National Association and Wells Fargo Securities, LLC.         “FHLB” means any federal home loan bank.         “Foreign Lender” means (a) if the Borrower is a U.S. Person, a Lender that is not a U.S.  Person, and (b) if the Borrower is not a U.S. Person, a Lender that is resident or organized under  the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes.  For  purposes of this definition, the United States, each State thereof and the District of Columbia shall  be deemed to constitute a single jurisdiction.         “FRB” means the Board of Governors of the Federal Reserve System of the United States.         “Fronted Letter of Credit” means (a) a Letter of Credit issued by a Fronting Bank in which  the Lenders purchase a risk participation pursuant to Section 2.03 and (b) any Existing Letter of  Credit designated as a Fronted Letter of Credit on Schedule 2.03.                                         12                                         13227198v7 27112.00011   

 

         “Fronting Bank” means (a) in the case of Fronted Letters of Credit, any Lender which has  agreed at the Borrower’s request (and with notice to the Administrative Agent) to issue one or  more Fronted Letters of Credit (or Fronted Letters of Credit up to a maximum stated amount) or  any successor fronting bank and (b) in the case of Several Letters of Credit, any Lender which has  agreed (with  notice  to  the  Administrative  Agent) to  act  as  fronting  bank  on  behalf  of  any  Participating Bank.         “Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect to  each Fronting Bank, (i) such Defaulting Lender’s Applicable Percentage of the outstanding L/C  Obligations  with  respect  to  Fronted  Letters  of  Credit  of  such  Fronting  Bank  other  than  L/C  Obligations as to which such Defaulting Lender’s participation obligation has been reallocated to  other Lenders or Cash Collateralized in accordance with the terms hereof and (ii) if such Defaulting  Lender is a Participating Bank, such Defaulting Lender’s Applicable Percentage of the outstanding  L/C Obligations with respect to  Several Letters of Credit as to which such Fronting Bank  has  fronted for such Defaulting Lender as a Participating Bank and (b) with respect to the Swing Line  Lender, such Defaulting Lender’s Applicable Percentage of Swing Line Loans other than Swing  Line Loans as to which such Defaulting Lender’s participation obligation has been reallocated to  other Lenders, repaid by the Borrower or for which Cash Collateralization or other credit support  acceptable to the Swing Line Lender shall have been provided in accordance with the terms hereof.         “Fund”  means  any Person (other than  a  natural  person) that  is  (or  will  be)  engaged  in  making, purchasing, holding or otherwise investing in commercial loans and similar extensions of  credit in the ordinary course of its business.         “GAAP” means generally accepted accounting principles in the United States set forth in  the opinions and pronouncements of the Accounting Principles Board and the American Institute  of Certified Public Accountants and statements and pronouncements of the Financial Accounting  Standards Board or such other principles as  may be approved  by a significant segment of the  accounting profession in the United States, that are applicable to the circumstances as of the date  of determination, consistently applied.         “Governmental Authority” means the government of the United States or any other nation,  or  of  any  political  subdivision  thereof,  whether  state  or  local,  and  any  agency,  authority,  instrumentality,  regulatory  body,  court,  central  bank  or  other  entity  exercising  executive,  legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to  government (including any supra-national bodies such as the European Union or the European  Central Bank).         “Guarantee” means, as to any Person, (a) any obligation, contingent or otherwise, of such  Person  guaranteeing  or  having  the  economic  effect  of  guaranteeing  any  Indebtedness  or other  obligation  payable  or  performable  by  another  Person  (the  “primary  obligor”)  in  any  manner,  whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to  purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or  other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring  the obligee in respect of such Indebtedness or other obligation of the payment or performance of  such Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any other  financial statement condition or liquidity or level of income or cash flow of the primary obligor so  as to enable the primary obligor to pay such Indebtedness or other obligation, or (iv) entered into                                        13                                         13227198v7 27112.00011   

 

   for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other  obligation of the payment or performance thereof or to protect such obligee against loss in respect  thereof  (in  whole  or  in  part),  or  (b) any  Lien  on  any  assets  of  such  Person  securing  any  Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other  obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such  Indebtedness to obtain any such Lien).  The amount of any Guarantee shall be deemed to be an  amount equal to the stated or determinable amount of the related primary obligation, or portion  thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum  reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good  faith.  The term “Guarantee” as a verb has a corresponding meaning.         “Guaranteed Debt” has the meaning specified in Section 10.19(a).         “Guaranteed Parties” has the meaning specified in Section 10.19(b).         “Guaranty” means the provisions of Section 10.19 and the rights and the obligations of the  Borrower thereunder.         “Hazardous Materials”  means all explosive or radioactive  substances or wastes and all  hazardous  or  toxic  substances,  wastes  or  other  pollutants,  including  petroleum  or  petroleum  distillates,  asbestos  or  asbestos-containing  materials,  polychlorinated  biphenyls,  radon  gas,  infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to  any Environmental Law.         “Highest  Lawful  Rate”  means  at  the  particular  time  in  question  the  maximum  rate  of  interest which, under Applicable Law, any Lender is then permitted to charge on the Obligations.   If the maximum rate of interest which, under Applicable Law, any Lender is permitted to charge  on  the Obligations shall  change  after  the  date  hereof,  the  Highest  Lawful  Rate  shall  be  automatically increased or decreased, as the case may be, from time to time as of the effective time  of each change in the Highest Lawful Rate without notice to the Borrower.         “Impacted Loans” has the meaning specified in Section 3.03(a).         “Increase Effective Date” has the meaning specified in Section 2.14(d).         “Indebtedness” means, as to any Person at a particular time, without duplication, all of the  following, whether or not included as indebtedness or liabilities in accordance with GAAP:               (a)   all obligations of such Person for borrowed money and all obligations of        such  Person evidenced  by  bonds,  debentures,  notes,  loan  agreements  or  other  similar        instruments;               (b)   all direct or contingent obligations of such Person arising under letters of        credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety        bonds and similar instruments;               (c)   net obligations of such Person under any Swap Contract (computed as set        forth below);                                         14                                         13227198v7 27112.00011   

 

               (d)   all obligations of such Person to pay the deferred purchase price of property        or services (other than trade accounts payable in the ordinary course of business and, in        each case, not past due for more than sixty (60) days after the date on which such trade        account payable was created);               (e)   indebtedness  (excluding  prepaid  interest  thereon)  secured  by  a  Lien  on        property owned or being purchased by such Person (including indebtedness arising under        conditional sales or other title retention agreements), whether or not  such  indebtedness        shall have been assumed by such Person or is limited in recourse;               (f)   capital or finance leases and Synthetic Lease Obligations (computed as set        forth below);               (g)   all  obligations  of  such  Person  to  purchase,  redeem,  retire,  defease  or        otherwise make any payment in respect of any Equity Interest in such Person or any other        Person, valued, in the case of a redeemable preferred interest, at the greater of its voluntary        or involuntary liquidation preference plus accrued and unpaid dividends; and               (h)   all Guarantees of such Person in respect of any of the foregoing.   For all purposes hereof, the Indebtedness of any  Person shall  include the Indebtedness of any  partnership or joint venture (other than a joint venture that is itself a corporation or limited liability  company) in which such Person is a general partner or a joint venturer, unless such Indebtedness  is expressly made non-recourse to such Person.  The amount of any net obligation under any Swap  Contract on any date shall be deemed to be the Swap Termination Value thereof as of such date.   The amount of any capital or finance lease or Synthetic Lease Obligation as of any date shall be  deemed to be the amount of Attributable Indebtedness in respect thereof as of such date.         “Indemnified Taxes”  means (a) Taxes, other than Excluded Taxes,  imposed on or with  respect to any payment made by or on account of any obligation of any Loan Party under any Loan  Document and (b) to the extent not otherwise described in clause (a), Other Taxes.         “Indemnitees” has the meaning specified in Section 10.04(b).         “Information” has the meaning specified in Section 10.07.         “Insurance Subsidiary” means any Subsidiary of the Borrower which is engaged in the life,  health or accident insurance business, including TMK.         “Interest Payment Date” means, (a) as to any Loan other than a Base Rate Loan, the last  day of each Interest Period applicable to such Loan and the Maturity Date; provided, however, that  if any Interest Period for a Eurodollar Rate Loan exceeds three months, the respective dates that  fall every three months after the beginning of such Interest Period shall also be Interest Payment  Dates; and (b) as to any Base Rate Loan (including a Swing Line Loan), the last Business Day of  each March, June, September and December and the Maturity Date.         “Interest Period” means, as to each Eurodollar Rate Loan, the period commencing on the  date such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate                                         15                                         13227198v7 27112.00011   

 

   Loan and ending on the date one (1), two (2), three (3), or six (6) months thereafter, in each case  as selected by the Borrower in its Loan Notice and subject to availability; provided that:               (a)   the Interest Period shall commence on the date of advance of or conversion        to any Eurodollar Rate Loan and, in the case of immediately successive Interest Periods,        each  successive  Interest  Period  shall  commence  on the  date on  which  the  immediately        preceding Interest Period expires;               (b)   if any Interest Period would otherwise expire on a day that is not a Business        Day, such Interest Period shall expire on the next succeeding Business Day; provided that        if any Interest Period with respect to a Eurodollar Rate Loan would otherwise expire on a        day that is not a Business Day but is a day of the month after which no further Business        Day occurs in such month, such Interest Period shall expire on the immediately preceding        Business Day;               (c)   any Interest Period with respect to a Eurodollar Rate Loan that begins on        the last Business Day of a calendar month (or on a day for which there is no numerically        corresponding day in the calendar month at the end of such Interest Period) shall end on        the last Business Day of the relevant calendar month at the end of such Interest Period;               (d)   no Interest Period shall extend beyond the Maturity Date.         “Investment” means, as to any Person, any direct or indirect acquisition or investment by  such Person, whether by means of (a) the purchase or other acquisition of capital stock or other  securities  of  another  Person,  (b) a  loan,  advance  or  capital  contribution  to,  Guarantee  or  assumption of debt of, or purchase or other acquisition of any other debt or equity participation or  interest in, another Person, including any partnership or joint venture interest in such other Person  and any arrangement pursuant to which the investor Guarantees Indebtedness of such other Person,  or (c) the purchase or other acquisition (in one transaction or a series of transactions) of assets of  another Person that constitute a business unit.         “IRS” means the United States Internal Revenue Service.         “ISP” means, with respect to any Letter of Credit, the International Standby Practices (ISP  98), Publication 590.         “Issuer  Documents”  means  with  respect  to  any  Letter  of  Credit,  the  Letter  of  Credit  Application, and any other document, agreement or instrument entered  into by the  Applicable  Issuing Party and the applicable  Loan Party (or any Subsidiary) or in  favor of the  Applicable  Issuing Party and relating to any such Letter of Credit.         “Joint Arrangers” means BofA Securities, Inc., U.S. Bank National Association and Wells  Fargo Securities, LLC in their capacity as joint lead arrangers and joint book runners.         “Junior Subordinated Debentures” means the 5.875% Junior Subordinated Debentures due  2052 of the Borrower in the principal amount of $125,000,000.         “Laws”  means,  collectively,  all  international,  foreign,  Federal,  state  and  local  statutes,  treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents                                        16                                         13227198v7 27112.00011   

 

   or  authorities,  including  the  interpretation  or  administration  thereof  by  any  Governmental  Authority charged with the enforcement, interpretation or administration thereof, and all applicable  administrative  orders,  directed  duties,  requests,  licenses,  authorizations  and  permits  of, and  agreements with, any Governmental Authority, in each case whether or not having the force of  law.         “L/C Administrator” means Bank of America, acting as letter of credit administrator for  the Lenders, together with any replacement or successor L/C Administrator.         “L/C  Advance”  means,  with  respect to each  Lender,  such  Lender’s  funding  of  its  participation  in  any  L/C  Borrowing  in  accordance  with  its  Applicable  Percentage  under  the  Facility.         “L/C Advance Date” has the meaning specified in Section 2.03(c)(ii).         “L/C Borrowing” means an extension of credit resulting from a drawing under any Letter  of Credit which has not been reimbursed on the date when made or refinanced as a Revolving  Borrowing.         “L/C Credit Extension” means, with respect to any Letter of Credit, the issuance thereof or  extension of the expiry date thereof, or the increase of the amount thereof.         “L/C Issuer” means (a) with respect to any Fronted Letter of Credit, the Fronting Bank  which has issued such Letter of Credit and (b) with respect to a Several Letter of Credit, each  Lender other than a Participating Bank.         “L/C Obligations” means, as at any date of determination, the aggregate amount available  to  be  drawn  under  all outstanding Letters  of  Credit plus the  aggregate  of  all  Unreimbursed  Amounts, including all L/C Borrowings.  For purposes of computing the amount available to be  drawn  under  any  Letter of  Credit, the amount of  such  Letter of  Credit  shall  be  determined  in  accordance with Section 1.06.  For all purposes of this Agreement, if on any date of determination  a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason  of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding”  in  the  amount  so  remaining  available  to  be  drawn.  For  purposes  of  determining  the  L/C  Obligations held by any Lender, a Lender shall be deemed to hold an amount equal to the sum of  (a) the aggregate amount of each Lender’s direct obligation in all outstanding Several Letters of  Credit (or, if a Participating Bank, its risk participation in Several Letters of Credit), (b) its risk  participation in all outstanding Fronted Letters of Credit, and (c) its L/C Borrowings.         “Lender” has the meaning specified in the introductory paragraph hereto and, as the context  requires, includes the Swing Line Lender.         “Lending Office” means, as to any Lender, the office or offices of such Lender described  as such in such Lender’s Administrative Questionnaire, or such other office or offices as a Lender  may  from  time  to  time  notify  the  Borrower  and  the  Administrative  Agent,  which  office  may  include any Affiliate of such Lender or any domestic or foreign branch of such Lender or such  Affiliate.  Unless  the  context  otherwise  requires  each  reference  to  a  Lender  shall  include  its  applicable Lending Office.                                        17                                         13227198v7 27112.00011   

 

         “Letter of Credit” means any letter of credit issued hereunder.  Each Letter of Credit shall  be a standby letter of credit.         “Letter of Credit  Application”  means an application and agreement for the  issuance or  amendment of a Letter of Credit in the form from time to time in use by the Applicable Issuing  Party.         “Letter of Credit Expiration Date” means the day that is five (5) Business Days prior to the  Maturity Date then in effect (or, if such day is not a Business Day, the next preceding Business  Day).         “Letter of Credit Fee” has the meaning specified in Section 2.03(i).         “Letter of Credit Sublimit” means an amount equal to $250,000,000.  The Letter of Credit  Sublimit is part of, and not in addition to, the Aggregate Commitments.         “LIBOR” has the meaning specified in the definition of Eurodollar Rate.         “LIBOR Screen Rate” means the LIBOR quote on the applicable screen page the  Administrative Agent designates to determine LIBOR (or such other commercially available  source providing such quotations as may be designated by the Administrative Agent from time to  time).         “LIBOR Successor Rate” has the meaning specified in Section 3.03(c).         “LIBOR  Successor  Rate  Conforming  Changes”  means,  with  respect  to  any  proposed  LIBOR Successor Rate, any conforming changes to the definition of Base Rate, Interest Period,  timing and frequency of determining rates and making payments of interest and other technical,  administrative or operational matters as may be appropriate, in the discretion of the Administrative  Agent, to reflect the adoption and implementation of such LIBOR Successor Rate and to permit  the administration thereof by the Administrative Agent in a manner substantially consistent with  market practice (or, if the Administrative Agent determines that adoption of any portion of such  market practice is not administratively feasible or that no market practice for the administration of  such LIBOR Successor Rate exists, in such other manner of administration as the Administrative  Agent  determines  is  reasonably  necessary  in  connection  with  the administration  of  this  Agreement).         “License” means any license, certificate of authority, permit or other authorization which  is  required  to  be  obtained  from  a  Governmental  Authority  in  connection  with  the  operation,  ownership or transaction of insurance business.         “Lien”  means  any  mortgage,  pledge,  hypothecation,  assignment,  deposit  arrangement,  encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or  preferential  arrangement  in  the  nature  of  a  security  interest of  any  kind  or  nature  whatsoever  (including any conditional sale or other title retention agreement, any easement, right of way or  other encumbrance on title to real property, and any financing lease having substantially the same  economic effect as any of the foregoing, but excluding (a) liens for taxes not yet due or which are  being contested in good faith and by appropriate proceedings diligently conducted, if adequate                                         18                                         13227198v7 27112.00011   

 

   reserves with respect thereto are maintained on the books of the applicable Person in accordance  with GAAP, (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like  liens arising the ordinary course of business which are not overdue for a period of more than thirty  (30) days or which are being contested in good faith and by appropriate proceedings diligently  conducted, if adequate reserves with respect thereto are maintained on the books of the applicable  Person, (c) pledges or deposits in the ordinary course of business  in connection with workers’  compensation, unemployment insurance and other social security legislation, other than any lien  imposed  by  ERISA,  (d) deposits  to  secure the  performance  of  bids, trade  contracts  and  leases  (other  than  Indebtedness),  statutory  obligations,  surety  bonds  (other  than  bonds  related  to  judgments or litigation), performance bonds and other obligations of a like nature incurred in the  ordinary  course  of  business,  and  (e) easements,  rights-of-way,  restrictions  and  other  similar  encumbrances affecting real property which, in the aggregate, are not substantial in amount, and  which  do  not  in  any  case  materially  detract  from  the  value  of  the  property  subject  thereto  or  materially interfere with the ordinary conduct of the business of the applicable Person).         “Listed Money Market Fund”  means a money market fund that complies with the criteria  set forth in Securities and Exchange Commission Rule 2a-7 under the Investment Company Act  of 1940 and is rated AAA by S&P and Aaa by Moody’s.         “LNLIC”  means  Liberty  National  Life  Insurance  Company,  a Nebraska  insurance  company.         “Loan” means a Revolving Loan and/or a Swing Line Loan, as applicable.         “Loan  Documents”  means  this  Agreement,  each  Note,  each  Issuer  Document,  the  Fee  Letters,  each  Compliance Certificate,  each  Loan  Notice,  each  Swing  Line  Loan Notice,  any  agreement creating or perfecting rights in Collateral pursuant to the provisions of this Agreement,  each Guaranty, each Control Agreement, each Security Agreement and each amendment to any of  the foregoing.         “Loan Notice” means a notice of (a) a Borrowing, (b) a conversion of Revolving Loans  from  one  Type  to  the  other,  or  (c) a  continuation  of  Eurodollar  Rate  Loans,  pursuant  to  Section 2.02(a), which, if in writing, shall be substantially in the form of Exhibit C.         “Loan Parties” means, collectively, the Borrower and TMK.         “London Banking Day” means any day on which dealings in Dollar deposits are conducted  by and between banks in the London interbank Eurodollar market.         “Material Adverse Effect” means (a) a material adverse change in, or a material adverse  effect  upon,  the  operations,  business,  properties,  liabilities  (actual  or  contingent),  condition  (financial or otherwise) or prospects of the Loan Parties, or any of them, or the Borrower and its  Subsidiaries taken as a whole; (b) a material impairment of the ability of any Loan Party to perform  its obligations under any Loan Document to which it is a party; or (c) a material adverse effect  upon the legality, validity, binding effect or enforceability against any Loan Party of any Loan  Document to which it is a party.                                          19                                         13227198v7 27112.00011   

 

         “Maturity Date” means (a) August 24, 2023, or if such date is not a Business Day, the next  preceding Business Day, or (b) such earlier date as (i) the Commitments are terminated pursuant  to this Agreement (whether  by acceleration, election of the Borrower or otherwise) or (ii) the  Obligations in respect of the Facility are accelerated pursuant to Section 8.02 of this Agreement.         “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.         “Multiemployer  Plan”  means  any  employee  benefit  plan  of  the  type  described  in  Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated  to make contributions, or during the preceding five plan years, has made or been obligated to make  contributions.         “NAIC”  means the National  Association of Insurance Commissioners or any successor  thereto, or in lieu thereof, any other association, agency or other organization performing advisory,  coordination or other like  functions among  insurance departments, insurance commissions and  similar Governmental Authorities of the various states of the United States of America toward the  promotion of uniformity in the practices of such Governmental Authorities.         “NAIC Approved Bank” means any entity that is a financial institution listed on the most  current “List of Qualified U.S. Financial Institutions” approved by the NAIC and acting through  the branch so listed.         “Net Proceeds” means, with respect to the sale or issuance by the Borrower or any of its  Subsidiaries to any Person (other than to the Borrower or a Wholly-Owned Subsidiary) of any  Equity Interests, including any conversion of debt securities into Equity Interests, the excess of  (a) the  gross  proceeds  from  such  sale,  issuance,  or  conversion  over  (b) all  reasonable  and  customary underwriting commissions and legal, investment banking, brokerage and accounting  and other professional fees and disbursements actually incurred in connection with each such sale,  issuance or conversion.         “Nonrenewal Notice Date” has the meaning specified in Section 2.03(b)(iii).         “Notes” means the Revolving Notes and the Swing Line Note.         “Obligations”  means  all  advances  to,  and  debts,  liabilities,  obligations,  covenants  and  duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan  or Letter of Credit, whether direct or indirect (including those acquired by assumption), absolute  or contingent, due or to become due, now existing or hereafter arising and including interest and  fees that accrue after the commencement by or against any Loan Party or any Affiliate thereof of  any  proceeding  under  any  Debtor  Relief  Laws  naming  such  Person  as  the  debtor  in  such  proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.         “OFAC” means the Office of Foreign Assets Control of the United States Department of  the Treasury.         “Organization Documents” means, (a) with respect to any corporation, the certificate or  articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with  respect  to  any  non-U.S.  jurisdiction);  (b) with  respect  to  any  limited  liability  company,  the                                         20                                         13227198v7 27112.00011   

 

   certificate or articles of formation or organization and operating agreement; and (c) with respect  to  any  partnership,  joint  venture,  trust  or  other  form  of  business  entity,  the  partnership,  joint  venture or other applicable agreement of formation or organization and any agreement, instrument,  filing or notice with respect thereto filed in connection with its formation or organization with the  applicable  Governmental  Authority  in  the  jurisdiction  of  its  formation  or  organization  and,  if  applicable, any certificate or articles of formation or organization of such entity.         “Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result  of a present or former connection between such Recipient and the jurisdiction imposing such Tax  (other than connections arising from such Recipient having executed, delivered, become a party  to, performed its obligations  under,  received  payments  under,  received  or  perfected  a  security  interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or  sold or assigned an interest in any Loan or Loan Document).         “Other  Taxes”  means  all  present  or  future  stamp,  court,  documentary,  intangible,  recording, filing or similar Taxes that arise from any payment made under, from the execution,  delivery, performance, enforcement or registration of, from the receipt or perfection of a security  interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are  Other Connection Taxes imposed with respect to an assignment (other than an assignment made  pursuant to Section 10.13).         “Outstanding Amount” means (i) with respect to Revolving Loans and Swing Line Loans  on  any  date,  the  aggregate  outstanding  principal  amount  thereof  after  giving  effect  to  any  borrowings and prepayments or repayments of Revolving Loans and Swing Line Loans, as the  case may be, occurring on such date; and (ii) with respect to any L/C Obligations on any date, the  aggregate outstanding amount of such L/C Obligations on such date after giving effect to any L/C  Credit Extension occurring on such date and any other changes in the aggregate amount of the L/C  Obligations  as  of  such  date,  including  as  a  result  of  any  reimbursements  by  the  Borrower  of  Unreimbursed Amounts.         “Participant” has the meaning specified in Section 10.06(d).         “Participant Register” has the meaning specified in Section 10.06(d).         “Participating Bank” means, from time to time, with respect to any Several Letter of Credit,  a Lender that is unable to issue such  Letter of Credit because (a) it is unable to do so due to  regulatory restrictions or other legal impediments based on its relationship to the beneficiary or (b)  it is not, or has lost its status as, an NAIC Approved Bank (if such Letter of Credit must be issued  by NAIC Approved Banks).         “Participating Notice” means a written notice delivered by a Lender to the Borrower, the  Administrative Agent and the L/C Administrator to the effect that such Lender is a Participating  Bank with respect to  any potential (or previously  issued  but to  be amended) Several  Letter of  Credit and stating the basis for such status.  If the basis for such status is that such Lender is not,  or has lost its status as, an NAIC Approved Bank, then (a) such notice shall be deemed applicable  to each subsequently issued Several Letter of Credit which must be issued by NAIC Approved  Banks until such notice has been withdrawn and (b) such Lender shall promptly withdraw such                                         21                                         13227198v7 27112.00011   

 

   notice (by subsequent written notice to the parties named above) at such time, if ever, as such  Lender has attained or regained status as an NAIC Approved Bank.         “PATRIOT Act” means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into  law October 26, 2001)).         “PBGC” means the Pension Benefit Guaranty Corporation.         “Pension Act” means the Pension Protection Act of 2006.         “Pension Funding Rules”  means the rules of the Code and ERISA regarding  minimum  required contributions (including any installment payment thereof) to Pension Plans and set forth  in, with respect to plan years ending prior to the effective date of the Pension Act, Section 412 of  the Code and Section 302 of ERISA, each as in effect prior to the Pension Act and, thereafter,  Section 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA.         “Pension Plan” means any “employee pension benefit plan” (as such term is defined in  Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and  is sponsored or maintained by the Borrower or any ERISA Affiliate or to which the Borrower or  any ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple  employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time  during the immediately preceding five plan years.         “Permitted Acquisition” means the Acquisition of any Person which has been approved  and recommended by the board of directors (or the functional equivalent thereof) of the Person  being acquired.         “Person”  means  any  natural  person,  corporation,  limited  liability  company,  trust,  joint  venture, association, company, partnership, Governmental Authority or other entity.         “Plan”  means  any  “employee  benefit  plan”  (as  such  term  is  defined  in  Section 3(3) of  ERISA) established by the Borrower or, with respect to any such plan that is subject to Section 412  of the Code or Title IV of ERISA, any ERISA Affiliate.         “Platform” has the meaning specified in Section 6.02.         “Preferred Securities” means any trust preferred securities issued in connection with any  Subordinated Debt.         “Prime Rate” means, at any time, the rate of interest per annum publicly announced from  time to time by Bank of America as its prime rate.  Each change in the Prime Rate shall be effective  as of the opening of business on the day such change in such prime rate occurs.  The parties hereto  acknowledge that the rate announced publicly by Bank of America as its prime rate is an index or  base rate and shall not necessarily be its lowest or best rate charged to its customers or other banks.         “Property” means any interest of the Borrower or any Subsidiary in any kind or property  or asset, whether real, personal or mixed, or tangible or intangible.                                         22                                         13227198v7 27112.00011   

 

         “PTE” means a prohibited transaction class exemption issued by the U.S. Department of  Labor, as any such exemption may be amended from time to time.         “Public Lender” has the meaning specified in Section 6.02.         “Quarterly Statement” means the quarterly statutory financial statement of any Insurance  Subsidiary  required  to  be  filed  with  the  insurance  commissioner  (or  similar  authority)  of  its  jurisdiction of  incorporation, which  statement shall  be  in the  form required by such Insurance  Subsidiary’s  jurisdiction of  incorporation or, if  no specific  form  is so required,  in the form of  financial statements recommended by the NAIC to be used for filing quarterly statutory financial  statements and shall contain the type of information recommended by the NAIC to be disclosed  therein, together with all exhibits or schedules filed therewith.         “Recipient” means (a) the Administrative Agent, (b) any Lender (including any Swing Line  Lender), (c) any L/C Issuer, (d) any Fronting Bank and (e) the L/C Administrator, as applicable.         “Register” has the meaning specified in Section 10.06(c).         “Related  Parties”  means,  with  respect  to  any  Person,  such  Person’s  Affiliates  and  the  partners, directors, officers, employees, agents and advisors of such Person and of such Person’s  Affiliates.         “Relevant  Governmental  Body” means  the  Federal  Reserve  Board  and/or  the  Federal  Reserve  Bank  of  New  York,  or  a  committee  officially  endorsed  or  convened  by  the  Federal  Reserve Board and/or the Federal Reserve Bank of New York for the purpose of recommending a  benchmark rate to replace LIBOR in loan agreements similar to this Agreement.         “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other  than events for which the 30 day notice period has been waived.         “Request  for  Credit  Extension”  means  (a) with  respect  to  a  Borrowing,  conversion  or  continuation of Loans, a Loan Notice, (b) with respect to an L/C Credit Extension, a Letter of  Credit Application and (c) with respect to a Swing Line Loan, a Swing Line Loan Notice.         “Required Lenders” means, as of any date of determination, Lenders holding more than  50% of the Total Credit Exposures of all Lenders; provided that the Total Credit Exposure of any  Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders.         “Resolution Authority” means an EEA Resolution Authority or, with respect to any UK  Financial Institution, a UK Resolution Authority.         “Responsible Officer” means the chief executive officers, president, chief financial officer,  chief investment officer or treasurer of a Loan Party.  Any document delivered hereunder that is  signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been  authorized by all necessary corporate, partnership and/or other action on the part of such Loan  Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such  Loan Party.                                         23                                         13227198v7 27112.00011   

 

         “Revolving Borrowing” means a borrowing consisting of simultaneous Revolving Loans  of the same Type and, in the case of Eurodollar Rate Loans, having the same Interest Period made  by each of the Lenders pursuant to Section 2.01.         “Revolving Credit Exposure” means, as to any Lender at any time, the aggregate principal  amount at such time of its outstanding Revolving Loans and such Lender’s participation in L/C  Obligations and Swing Line Loans at such time.         “Revolving Loan” has the meaning specified in Section 2.01.         “Revolving Note” means a promissory note made by the Borrower in favor of a Lender  evidencing Revolving Loans made by such Lender, substantially in the form of Exhibit D.         “S&P” means Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc.,  and any successor thereto.         “Sanctions” means any sanction administered or enforced by the United States  Government (including without limitation, OFAC), the United Nations Security Council, the  European Union, Her Majesty’s Treasury (“HMT”) or other relevant sanctions authority.         “SAP” means, with respect to any Insurance Subsidiary, the statutory accounting practices  prescribed or permitted by the insurance commissioner (or other similar authority) as of the date  hereof  in  the  jurisdiction  of  incorporation  of  such  Insurance  Subsidiary  for the  preparation  of  annual statements and other financial reports by insurance companies of the same type as such  Insurance Subsidiary.         “Scheduled Unavailability Date” has the meaning specified in Section 3.03(c).         “SEC” means the Securities and Exchange Commission, or any Governmental Authority  succeeding to any of its principal functions.         “Secured  L/C  Obligations”  means  L/C Obligations with  respect  to  Secured  Letters  of  Credit.         “Secured Letter of Credit” means a Letter of Credit issued at the request of a Loan Party  which  has  been  designated  as a  “Secured  Letter  of  Credit”  in  the  applicable  Letter  of  Credit  Application and which has not been redesignated as an Unsecured Letter of Credit pursuant to  Section 2.03(l).         “Security  Agreement” means,  individually and collectively, each security agreement or  other collateral document, each in form and substance satisfactory to the Administrative Agent,  entered into between the Administrative Agent and a Loan Party pursuant hereto.         “Several Letter of Credit” means (a) a Letter of Credit issued severally by or on behalf of  the Lenders pursuant to which the Lenders are severally liable to the beneficiary, which shall be  substantially  in  the  form  of Exhibit E or  in  such  other  form  consistent  with  the  proviso  to  Section 2.03(a)(iii)(D) as may be agreed by the applicable Loan Party and the L/C Administrator  and (b) any Existing Letter of Credit designated as a Several Letter of Credit on Schedule 2.03.                                         24                                         13227198v7 27112.00011   

 

         “Significant Insurance Subsidiary” means any Significant Subsidiary which is an Insurance  Subsidiary,  and  shall  in  any  event  include  Globe  Life  And  Accident  Insurance  Company,  a  Nebraska  insurance  company,  LNLIC,  United  American  Insurance  Company,  a  Nebraska  insurance company, and AIL.         “Significant Subsidiary” of a Person means a “significant subsidiary” as defined in Rule 1- 02(v) of Regulation S-X of the Securities and Exchange Commission (17 CFR Part 210).  Unless  otherwise  expressly  provided,  all  references  herein  to  a  “Significant  Subsidiary”  shall  mean  a  Significant Subsidiary of the Borrower.         “SOFR” with respect to any day means the secured overnight financing rate published for  such day by the Federal Reserve Bank of New York, as the administrator of the benchmark (or a  successor administrator) on the Federal Reserve Bank of New York’s website (or any successor  source) and, in each case, that has been selected or recommended by the Relevant Governmental  Body.         “SOFR-Based Rate” means SOFR or Term SOFR.         “Solvent” means, with respect to any Person, as of any date of determination, that the fair  value of the assets of such Person (at fair valuation) is, on the date of determination, greater than  the total amount of liabilities (including contingent and unliquidated liabilities) of such Person as  of such date, that the present fair saleable value of the assets of such Person will, as of such date,  be greater than the amount that will be required to pay the probable liability of such Person on its  debts as such debts become absolute and matured, and that, as of such date, such Person will be  able to pay all liabilities of such Person as such liabilities mature and such Person does not have  unreasonably  small  capital  with  which  to  carry  on  its  business.   In  computing  the  amount  of  contingent or unliquidated liabilities at any time, such liabilities will be computed at the amount  which, in light of all the facts and circumstances existing at such time, represents the amount that  can reasonably be expected to become an actual or matured liability discounted to present value at  rates believed to be reasonable by such Person acting in good faith.         “Subordinated  Debt”  means,  collectively,  (i)  the  Junior  Subordinated  Debentures  and  (ii) any other unsecured indebtedness of the Borrower (and not a Subsidiary) which is subordinated  by its terms to the prior payment in full of the Obligations evidenced by this Agreement in a manner  no  less  favorable  to  the  Lenders  than  the  Junior  Subordinated  Debentures  and  which  contain  covenants  that  are  not  less  favorable  to  the  Borrower  than  those  contained  in  the  Junior  Subordinated Debentures.         “Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability  company or other business entity of which more than 50% of the Equity Interests having ordinary  voting power for the election of directors or other governing body (other than Equity Interests  having such power only by reason of the happening of a contingency) are at the time beneficially  owned, or the management of which is otherwise controlled, directly, or indirectly through one or  more intermediaries, or both, by such Person.  Unless otherwise specified, all references herein to  a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Borrower.         “Swap  Contract”  means  (a) any and  all  rate  swap  transactions,  basis  swaps,  credit  derivative transactions, forward rate transactions, commodity swaps, commodity options, forward                                        25                                         13227198v7 27112.00011   

 

   commodity contracts, equity or equity index swaps or options, bond or bond price or bond index  swaps  or options  or  forward  bond  or  forward  bond  price  or  forward  bond  index  transactions,  interest rate options, forward foreign exchange transactions, cap transactions, floor transactions,  collar transactions, currency swap transactions, cross-currency rate swap transactions, currency  options, spot contracts, or any other similar transactions or any combination of any of the foregoing  (including any options to enter into any of the foregoing), whether or not any such transaction is  governed by or subject to any master agreement, and (b) any and all transactions of any kind, and  the related confirmations, which are subject to the terms and conditions of, or governed by, any  form of master agreement published by the International Swaps and Derivatives Association, Inc.,  any International Foreign Exchange Master Agreement, or any other master agreement (any such  master agreement, together with any related schedules, a “Master Agreement”), including any such  obligations or liabilities under any Master Agreement.         “Swap Obligations” means any and all obligations owed by any Loan Party to any Lender  or any Affiliate of any Lender in respect of a Swap Contract.         “Swap Termination Value” means, in respect of any one or more Swap Contracts, after  taking into account the effect of any legally enforceable netting agreement relating to such Swap  Contracts, (a) for any date on or after the date such Swap Contracts have been closed out  and  termination value(s) determined in accordance therewith, such termination value(s), and (b) for  any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market  value(s) for such Swap Contracts, as determined based upon one or more mid-market or other  readily available quotations provided by any recognized dealer in such Swap Contracts (which  may include a Lender or any Affiliate of a Lender).         “Swing Line” means the revolving credit facility made available by the Swing Line Lender  pursuant to Section 2.04.         “Swing  Line  Borrowing”  means  a  borrowing  of  a  Swing  Line  Loan  pursuant  to  Section 2.04.         “Swing Line Lender” means Bank of America in its capacity as provider of Swing Line  Loans, or any successor swing line lender hereunder.         “Swing Line Loan” has the meaning specified in Section 2.04(a).         “Swing  Line  Loan  Notice”  means  a  notice  of  a  Swing  Line  Borrowing  pursuant  to  Section 2.04(b), which, if in writing, shall be substantially in the form of Exhibit F.         “Swing Line Note” means a promissory note made by the Borrower in favor of the Swing  Line Lender evidencing Swing Line Loans, substantially in the form of Exhibit G.         “Swing Line Sublimit” means an amount equal to the lesser of (a) $35,000,000 and (b) the  Aggregate Commitments.  The Swing Line Sublimit is part of, and not in addition to, the Aggregate  Commitments.         “Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a so- called  synthetic,  off-balance  sheet  or  tax  retention  lease,  or  (b) an  agreement  for  the  use  or                                         26                                         13227198v7 27112.00011   

 

   possession of property creating obligations that do not appear on the balance sheet of such Person  but which,  upon  the  insolvency  or  bankruptcy  of  such  Person,  would  be  characterized  as  the  indebtedness of such Person (without regard to accounting treatment).         “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings  (including backup withholding), assessments, fees or other charges imposed by any Governmental  Authority, including any interest, fines, additions to tax or penalties applicable thereto.         “Term Loan Agreement” means that certain 364-Day Term Loan Agreement, dated April  9, 2020, among the Borrower, certain lenders from time to time party thereto and Bank of America,  as administrative agent, and any refinancings, refundings, renewals or extensions thereof.         “Term SOFR” means the forward-looking term rate based on SOFR that has been selected  or recommended by the Relevant Governmental Body.         “TMK” has the meaning specified in the introductory paragraph hereto.         “Total Credit Exposure” means, as to any Lender at any time, the unused Commitments  and Revolving Credit Exposure of such Lender at such time.          “Total Outstandings” means the aggregate Outstanding Amount of all Revolving Loans,  all Swing Line Loans and all L/C Obligations.         “Type” means, with respect to a Revolving Loan, its character as a Base Rate Loan or a  Eurodollar Rate Loan.         “UK Financial Institution” means any BRRD Undertaking (as such term is defined under  the PRA Rulebook (as amended form time to time) promulgated by the United Kingdom  Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook  (as amended from time to time) promulgated by the United Kingdom Financial Conduct  Authority, which includes certain credit institutions and investment firms, and certain affiliates  of such credit institutions or investment firms.         “UK Resolution Authority” means the Bank of England or any other public administrative  authority having responsibility for the resolution of any UK Financial Institution.         “United States” and “U.S.” mean the United States of America.         “Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i).         “Unsecured Letter of Credit” means a Letter of Credit which is not a Secured Letter of  Credit.         “U.S. Bank Fee Letter” means that  certain  letter agreement, dated as of July 24, 2020,  among the Borrower and U.S. Bank National Association.         “U.S.  Government  Debt  Securities”  means  direct  obligations  of,  or  obligations  the  principal of and interest on which are unconditionally guaranteed by, the United States (or by any                                         27                                         13227198v7 27112.00011   

 

   agency thereof to the extent such obligations are backed by the full faith and credit of the United  States).         “U.S.  Person”  means  any  Person  that  is  a  “United  States  person”  as  defined  in  Section 7701(a)(30) of the Code.         “U.S. Tax Compliance Certificate” has the meaning assigned thereto in Section 3.01(g).         “Wells Fargo Fee Letter” means that certain letter agreement, dated as of July 24, 2020,  among the Borrower and Wells Fargo Securities, LLC.         “Wholly-Owned Subsidiary” when used to determine the relationship of a Subsidiary to a  Person, means a Subsidiary all of the issued and outstanding Equity Interests (other than directors’  qualifying shares) of which shall at the time be owned by such Person or one or more of such  Person’s Wholly-Owned Subsidiaries or by such Person and one or more of such Person’s Wholly- Owned Subsidiaries.         “Withholding Agent” means any Loan Party and the Administrative Agent.         “Write-Down and Conversion Powers” means, (a) with respect to  any EEA Resolution  Authority, the write-down and conversion powers of such EEA Resolution Authority from time to  time under the Bail-In Legislation for the applicable EEA Member Country, which write-down  and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect  to the United Kingdom,  any powers of the applicable Resolution Authority  under the Bail-In  Legislation  to  cancel,  reduce,  modify  or  change  the  form  of  a  liability  of  any  UK  Financial  Institution  or any contract or instrument under which that liability arises, to convert all or part of  that liability into shares, securities or obligations of that person or any other person, to provide that  any such contract or instrument is to have effect as if a right had been exercised under it or to  suspend  any  obligation  in  respect  of  that  liability  or  any  of  the  powers  under  that  Bail-In  Legislation that are related to or ancillary to any of those powers.         1.02  Other Interpretive Provisions.  With reference to this Agreement and each other  Loan Document, unless otherwise specified herein or in such other Loan Document:               (a)   The definitions of terms herein shall apply equally to the singular and plural        forms of the terms defined.  Whenever the context may require, any pronoun shall include        the corresponding masculine, feminine and neuter forms.  The words “include,” “includes”        and “including” shall be deemed to be followed by the phrase “without limitation.”  The        word “will” shall be construed to have the same meaning and effect as the word “shall.”         Unless the context requires otherwise, (i) any definition of or reference to any agreement,        instrument or other document (including any Organization Document) shall be construed        as  referring  to  such  agreement,  instrument  or other  document  as  from  time  to  time        amended,  supplemented  or  otherwise  modified  (subject  to  any  restrictions  on  such        amendments,  supplements  or  modifications  set  forth  herein  or  in  any  other  Loan        Document),  (ii) any  reference  herein  to  any  Person  shall  be construed  to  include  such        Person’s  successors  and  assigns,  (iii) the  words “hereto,” “herein,”  “hereof”  and        “hereunder”  and  words  of  similar  import  when  used  in  any  Loan  Document,  shall  be        construed to refer to such Loan Document in its entirety and not to any particular provision                                        28                                         13227198v7 27112.00011   

 

                     thereof,  (iv) all  references  in  a  Loan  Document  to  Articles,  Sections,  Exhibits  and       Schedules  shall  be  construed  to  refer  to  Articles  and  Sections  of,  and  Exhibits  and       Schedules to, the Loan Document in which such references appear, (v) any reference to       any  law  shall  include  all  statutory  and  regulatory  provisions  consolidating,  amending       replacing or interpreting such law and any reference to any law, rule or regulation shall,       unless otherwise specified, refer to such law, rule or regulation as amended, modified or       supplemented  from  time  to  time,  and  (vi) the  words  “asset”  and  “property”  shall  be       construed to have the same meaning and effect and to refer to any and all tangible and       intangible assets and properties, including cash, securities, accounts and contract rights.              (b)   In  the  computation  of  periods  of  time  from  a  specified  date  to  a  later       specified date, the word “from” means “from and including;” the words “to” and “until”       each mean “to but excluding;” and the word “through” means “to and including.”              (c)   Section headings herein and in the other Loan Documents are included for       convenience of reference only and shall not affect the interpretation of this Agreement or       any other Loan Document.              (d)   For purposes of Section 8.01(b), a breach of a financial covenant contained       in Section 7.07 shall be deemed to have occurred as of any date of determination thereof       by  the  Administrative  Agent  or  as  of  the  last  day  of  any  specified  measuring  period,       regardless  of  when  the  financial  statements  reflecting  such  breach  are  delivered  to the       Administrative Agent and the Lenders.        1.03  Accounting Terms.              (a)   Generally.   All  accounting  terms  not  specifically  or  completely  defined       herein shall be construed in conformity with, and all financial data (including financial       ratios and other financial calculations) required to be submitted pursuant to this Agreement       shall be prepared in conformity with, GAAP or SAP, as the case may be, applied on a       consistent basis, as in effect from time to time, applied in a manner consistent with that       used  in  preparing  the  Audited  Financial  Statements, except as  otherwise  specifically       prescribed herein.              (b)   Changes in GAAP or SAP.  If at any time any change in GAAP or SAP, as       the case may be, would affect the computation of any financial ratio or requirement set       forth in any Loan Document, and either the Borrower or the Required Lenders shall so       request, the Administrative Agent, the Lenders and the Borrower shall negotiate in good       faith to amend such ratio or requirement to preserve the original intent thereof in light of       such change in GAAP or SAP, as the case may be, (subject to the approval of the Required       Lenders); provided that, until so amended, (i) such ratio or requirement shall continue to       be computed in accordance with GAAP or SAP, as the case may be, prior to such change       therein and (ii) the Borrower shall provide to the Administrative Agent and the Lenders       financial statements and other documents required under this Agreement or as reasonably       requested hereunder  setting  forth  a reconciliation  between calculations  of such  ratio or       requirement made before and after giving effect to such change in GAAP or SAP, as the       case may be.                                        29                                        13227198v7 27112.00011                

 

   Notwithstanding the foregoing, for purposes of financial covenant calculations under Section 7.07,  Indebtedness (including Subordinated Debt accorded equity treatment) shall be calculated without  giving effect to The Financial Accounting Standards Board Accounting Standards Codification  825.         1.04  Rounding.  Any  financial  ratios  required  to  be  maintained  by  the  Borrower  pursuant to this Agreement shall be calculated by dividing the appropriate component by the other  component, carrying the result to one place more than the number of places by which such ratio is  expressed herein and rounding the result up or down to the nearest number (with a rounding-up if  there is no nearest number).         1.05  Times of Day.  Unless otherwise specified, all references herein to times of day  shall be references to Central time (daylight or standard, as applicable).         1.06  Letter of Credit Amounts.  Unless otherwise specified herein, the amount of a  Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in  effect at such time; provided, however, that with respect to any Letter of Credit that, by its terms  or the terms of any Issuer Document related thereto, provides for one or more automatic increases  in  the  stated  amount  thereof,  the  amount  of  such  Letter  of  Credit  shall  be  deemed  to  be  the  maximum stated amount of such Letter of Credit after giving effect to all such increases, whether  or not such maximum stated amount is in effect at such time.         1.07  Divisions.  Any  reference  herein  to  a  merger,  transfer,  consolidation,  amalgamation, consolidation, assignment, sale, disposition or transfer, or similar term, shall be  deemed to apply to a division of or by a limited liability company, or an allocation of assets to a  series of a limited liability company (or the unwinding of such a division or allocation), as if it  were a merger, transfer, consolidation, amalgamation, consolidation, assignment, sale, disposition  or transfer, or similar term, as applicable, to, of or with a separate Person. Any division of a limited  liability company shall constitute a separate Person hereunder (and each division of any limited  liability company that is a Subsidiary, joint venture or any other like term shall also constitute such  a Person or entity).         1.08  Rates.  The Administrative Agent does not warrant, nor accept responsibility, nor  shall the Administrative Agent have any liability with respect to the administration, submission or  any other matter related to the rates in the definition of “Eurodollar Rate” or with respect to any  rate that is an alternative or replacement for or successor to any of such rate (including, without  limitation, any LIBOR Successor Rate) or the effect of any of the foregoing, or of any LIBOR  Successor Rate Conforming Changes.                                    ARTICLE II                                                          THE COMMITMENTS AND CREDIT EXTENSIONS         2.01  Loans.  Subject to the terms and conditions set forth herein, each Lender severally  agrees to make loans (each such loan, a “Revolving Loan”) to the Borrower from time to time, on  any Business Day during the Availability Period, in an aggregate amount not to exceed at any time  outstanding the amount of such Lender’s Commitment; provided, however, that after giving effect  to  any  Revolving  Borrowing,  (i) the Total  Outstandings  shall  not  exceed  the  Aggregate                                        30                                         13227198v7 27112.00011   

 

   Commitments,  (ii) the  aggregate  Outstanding  Amount of the  Revolving  Loans  of  any  Lender  (other than the Swing Line Lender), plus such Lender’s Applicable Percentage of the Outstanding  Amount of  all  L/C  Obligations, plus such  Lender’s  Applicable  Percentage of  the  Outstanding  Amount  of  all  Swing  Line  Loans  shall  not  exceed  such  Lender’s Commitment and  (iii)  the  aggregate Outstanding Amount of the Revolving Loans of the Swing Line Lender, plus the Swing  Line Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus the  Outstanding  Amount  of  all  Swing  Line  Loans  shall  not  exceed  the  Swing  Line  Lender’s  Commitment.  Within the limits of each Lender’s Commitment, and subject to the other terms and  conditions hereof, the Borrower may borrow under this Section 2.01, prepay under Section 2.05,  and reborrow under this Section 2.01. Revolving Loans may be Base Rate Loans or Eurodollar  Rate Loans, as further provided herein.         2.02  Borrowings, Conversions and Continuations of Loans.               (a)   Each Revolving Borrowing, each conversion of Loans from one Type to the        other, and each continuation of Eurodollar Rate Loans shall be made upon the Borrower’s        irrevocable notice to the Administrative Agent, which may be given by telephone.  Each        such notice must be received by the Administrative Agent not later than 11:00 a.m. (i) three        (3) Business Days prior to the requested date of any Revolving Borrowing of, conversion        to or continuation of Eurodollar Rate Loans or of any conversion of Eurodollar Rate Loans        to Base Rate Loans, and (ii) on the Business Day of any Revolving Borrowing of Base        Rate Loans.  Each telephonic notice by the Borrower pursuant to this Section 2.02(a) must        be confirmed promptly by delivery to the Administrative Agent of a written Loan Notice,        appropriately  completed  and  signed  by  a  Responsible  Officer  of  the  Borrower.   Each        Revolving Borrowing of, conversion to or continuation of Eurodollar Rate Loans shall be        in a principal amount of $2,000,000 or a whole multiple of $1,000,000 in excess thereof.         Except  as  provided  in Sections 2.03(c) and 2.04(c),  each  Revolving  Borrowing of  or        conversion  to  Base  Rate  Loans  shall  be  in  a  principal  amount of  $500,000 or  a  whole        multiple of $100,000 in excess thereof.  Each Loan Notice (whether telephonic or written)        shall specify (i) whether the Borrower is requesting a Revolving Borrowing, a conversion        of Loans from one Type to the other, or a continuation of Eurodollar Rate Loans, (ii) the        requested date of the Revolving Borrowing, conversion or continuation, as the case may        be (which shall be a Business Day), (iii) the principal amount of Loans to be borrowed,        converted or continued, (iv) the Type of Loans to be borrowed or to which existing Loans        are to be converted, and (v) if applicable, the duration of the Interest Period with respect        thereto.  If the Borrower fails to specify a Type of Loan in a Loan Notice or if the Borrower        fails to give a timely notice requesting a conversion or continuation, then the applicable        Loans shall be made as, or converted to, Base Rate Loans.  Any such automatic conversion        to Base Rate Loans shall be effective as of the last day of the Interest Period then in effect        with respect to the applicable Eurodollar Rate Loans.  If the Borrower requests a Revolving        Borrowing of, conversion to, or continuation of Eurodollar Rate Loans in any such Loan        Notice, but fails to specify an Interest Period, it will be deemed to have specified an Interest        Period of one month.               (b)   Following  receipt  of  a  Loan  Notice,  the  Administrative  Agent  shall        promptly notify each Lender of the amount of its Applicable Percentage of the applicable        Loans, and if no timely notice of a conversion or continuation is provided by the Borrower,                                         31                                         13227198v7 27112.00011   

 

                     the  Administrative  Agent  shall  notify  each  Lender  of  the  details  of  any  automatic       conversion to Base Rate Loans described in the preceding subsection.  In the case of a       Revolving Borrowing, each Lender shall make the amount of its Revolving Loan available       to the Administrative Agent in immediately available funds at the Administrative Agent’s       Office not later than 1:00 p.m. on the Business Day specified in the applicable Loan Notice.        Upon  satisfaction  of  the  applicable  conditions  set  forth  in Section 4.02 (and,  if  such       Borrowing is the initial Credit Extension, Section 4.01), the Administrative Agent shall       make  all  funds  so  received  available  to the  Borrower  in  like  funds  as  received  by  the       Administrative Agent either by (i) crediting the account of the Borrower on the books of       Bank of America with the amount of such funds or (ii) wire transfer of such funds, in each       case  in  accordance  with  instructions  provided  to  (and  reasonably  acceptable  to)  the       Administrative Agent by the Borrower; provided, however, that if, on the date the Loan       Notice with respect to such Revolving Borrowing is given by the Borrower, there are L/C       Borrowings outstanding, then the proceeds of such Borrowing, first, shall be applied to the       payment in full of any such L/C Borrowings, and second, shall be made available to the       Borrower as provided above.              (c)   Except  as  otherwise  provided  herein,  a  Eurodollar  Rate  Loan  may  be       continued or converted only on the last day of an Interest Period for such Eurodollar Rate       Loan.  During the existence of a Default, no Loans may be requested as, converted to or       continued as Eurodollar Rate Loans without the consent of the Required Lenders.              (d)   The  Administrative  Agent  shall  promptly  notify  the  Borrower  and  the       Lenders of the interest rate applicable to any Interest Period for Eurodollar Rate Loans       upon determination of such interest rate.  At any time that Base Rate Loans are outstanding,       the Administrative Agent shall notify the Borrower and the Lenders of any change in Bank       of America’s prime rate used in determining the Base Rate promptly following the public       announcement of such change.              (e)   After giving effect to all Revolving Borrowings, all conversions of Loans       from one Type to the other, and all continuations of Loans as the same Type, there shall       not be more than six Interest Periods in effect at any time.        2.03  Letters of Credit.              (a)   The Letter of Credit Commitment.                    (i)   Subject  to  the  terms  and  conditions  set  forth  herein,  (A) each             Fronting Bank agrees, in reliance upon the agreements of the Lenders set forth in             this Section 2.03, (1) from time to time on any Business Day during the Availability             Period, to issue Fronted Letters of Credit denominated in Dollars for the account of             any Loan Party, and to amend or extend Fronted Letters of Credit previously issued             by it, in accordance with subsection (b) below but in each case solely to the extent             it has separately and in its sole discretion agreed with the Borrower to do so, and             (2) to  honor  drawings  under  such  Fronted  Letters  of  Credit;  and  the  Lenders             severally agree to participate in Fronted Letters of Credit issued for the account of             any Loan Party and any drawings thereunder; and (B) each Lender severally agrees,             (1) from time to time on any Business Day during the Availability Period, to issue,                                       32                                        13227198v7 27112.00011                

 

                           extend  and  renew  in  such  Lender’s  Applicable  Percentage  under  the Facility,             Several  Letters  of  Credit  denominated  in  Dollars  at  the  request  of and  for  the             account of any Loan Party, in accordance with subsection (b) below (except such             Letters  of  Credit  as  to  which  it  has  advised  the  Administrative  Agent  and,  if             applicable, the L/C Administrator that it is a Participating Bank), and (2) to honor             its Applicable Percentage of drawings under the Several Letters of Credit and each             Fronting  Bank  who  has  agreed  to  front  for  a  Participating  Bank  under  Several             Letters of Credit hereby agrees that it shall be severally (and not jointly) liable for             an  amount  equal  to  its  Applicable  Percentage  under  the Facility plus  such             Participating Bank’s Applicable Percentage under each Several Letter of Credit and             each  Participating  Bank  hereby  agrees  to  purchase  a  risk  participation  in  the             obligations of the relevant Fronting Bank under any such Several Letter of Credit             in an amount equal to such Participating Bank’s Applicable Percentage under the             Facility; provided that after giving effect to any L/C Credit Extension with respect             to any Letter of Credit, (v) the Total Outstandings shall not exceed the Aggregate             Commitments, (w) the aggregate Outstanding Amount of the Revolving Loans of             any  Lender (other than the Swing  Line Lender), plus such Lender’s  Applicable             Percentage of the Outstanding Amount of all Swing Line Loans, plus such Lender’s             Applicable Percentage of the Outstanding Amount of all L/C Obligations shall not             exceed such Lender’s Commitment, (x) the aggregate Outstanding Amount of the             Revolving  Loans  of  the  Swing  Line  Lender, plus the  Swing  Line  Lender’s             Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus the             Outstanding  Amount of  all  Swing  Line  Loans  shall  not  exceed  the  Swing  Line             Lender’s Commitment,  (y)  the  Secured  L/C  Obligations  shall  not  exceed  the             Borrowing Base, and (z) the Outstanding Amount of the L/C Obligations shall not             exceed  the  Letter  of  Credit  Sublimit.   Each  request  by  any  Loan  Party  for  the             issuance or amendment of a Letter of Credit shall be deemed to be a representation             by such Loan Party that the L/C Credit Extension so requested complies with the             conditions set forth in the proviso to the preceding sentence.  Within the foregoing             limits, and subject to the terms and conditions hereof, the Loan Parties’ ability to             obtain Letters of Credit shall be fully revolving, and accordingly the Loan Parties             may,  during  the  foregoing  period, obtain  Letters of  Credit to  replace  Letters of             Credit that have expired or that have been drawn upon and reimbursed.                    (ii)  The Applicable Issuing Party shall not issue any Letter of Credit, if:                          (A)   subject  to Section 2.03(b)(iii),  the  expiry  date  of  such                   requested Letter of Credit would occur more than twelve months after the                   date  of  issuance  or  last  extension,  unless  the  Required  Lenders  have                   approved such expiry date;                          (B)   the  expiry  date  of  such  requested  Letter  of  Credit  would                   occur after the Letter of Credit Expiration Date, provided that any Letter of                   Credit may expire after such date (but in any event, no later than the first                   anniversary of the Maturity Date) (each Letter of Credit with an expiry date                   after  the  Letter  of  Credit  Expiration  Date  (including  as  a  result  of  any                   automatic renewal in accordance with Section 2.03(b)(iii)), an “Extended                                        33                                        13227198v7 27112.00011                

 

                                 Letter  of  Credit”)  with  the  consent  of  the  Applicable  Issuing Party and                   subject to the requirements of Section 2.03(g); or                          (C)   such Letter of Credit is to be denominated in a currency other                   than Dollars.                    (iii) Neither any L/C Issuer nor the L/C Administrator shall be under any             obligation to issue any Letter of Credit if:                          (A)   any  order,  judgment  or  decree  of  any  Governmental                   Authority or arbitrator shall by its terms purport to enjoin or restrain such                   Person from issuing such Letter of Credit, or any Law applicable to such                   Person or any request or directive (whether or not having the force of law)                   from any Governmental Authority with jurisdiction over such Person shall                   prohibit, or request that such Person refrain from, the issuance of letters of                   credit generally or such Letter of Credit in particular or shall impose upon                   such Person with respect to such Letter of Credit any restriction, reserve or                   capital requirement (for which such Person is not otherwise compensated                   hereunder) not in effect on the Effective Date, or shall impose upon such                   Person any unreimbursed loss, cost or expense which was not applicable on                   the Effective Date and which such Person in good faith deems material to                   it;                          (B)   the issuance of such Letter of Credit would violate one or                   more policies of such Person related to letters of credit generally;                          (C)   except as otherwise agreed by the Administrative Agent and                   the Applicable Issuing Party, such Letter of Credit  is  in an  initial  stated                   amount less than $100,000;                          (D)   in the case of a Several Letter of Credit, such Letter of Credit                   is not substantially in the form of Exhibit E (provided that the Applicable                   Issuing Party may agree to reasonable changes to such form, not adverse to                   the  interests  of  the  Lenders,  necessary  to  satisfy  any  then  applicable                   requirements of the applicable insurance regulators);                          (E)   only with respect to (1) a Fronted Letter of Credit or (2) a                   Several  Letter  of  Credit  as  to  which  such  Defaulting  Lender  is  a                   Participating Bank, any Lender is at the applicable time a Defaulting Lender                   and the Fronting Bank has (or after giving effect to the issuance of such                   Letter of Credit will have) Fronting Exposure (after giving effect to Section                   2.15(c)), unless the Fronting Bank has entered into arrangements, including                   the delivery of Cash Collateral, satisfactory to the Fronting Bank (in its sole                   discretion) with such Defaulting Lender or the Borrower to eliminate the                   Fronting  Bank’s  Fronting  Exposure  (after  giving  effect  to Section 2.15)                   with respect to such Defaulting Lender arising from either such Letter of                   Credit or such Letter of Credit and all other L/C Obligations (including as                   Fronting Bank for a Participating Bank) as to which the Fronting Bank has                                       34                                        13227198v7 27112.00011                

 

                                 Fronting Exposure (after giving effect to Section 2.15) as it may elect in its                   sole discretion; or                          (F)   such Letter of Credit contains any provisions for automatic                   reinstatement of the stated amount after any drawing thereunder.                    (iv)  No Applicable Issuing Party shall amend any Letter of Credit if such             Applicable Issuing Party would not be permitted at such time to issue such Letter             of Credit in its amended form under the terms hereof.                    (v)   The Applicable Issuing Party shall be under no obligation to amend             any Letter of Credit if (A) the Applicable Issuing Party would have no obligation             at such time to issue such Letter of Credit in its amended form under the terms             hereof, or (B) the beneficiary of such Letter of Credit does not accept the proposed             amendment to such Letter of Credit.                    (vi)  The L/C Administrator is hereby authorized to execute and deliver             each Several Letter of Credit and each amendment to a Several Letter of Credit on             behalf  of  each  Lender  (unless  such  Lender  has  delivered  a  Participating  Notice             which is applicable to such Several Letter of Credit and has not been withdrawn).              The L/C Administrator shall use the Applicable Percentage of an L/C Issuer under             each Several Letter of Credit provided that the applicable Fronting Bank for such             Participating Bank shall be severally (and not jointly) liable for an amount equal to             its Applicable Percentage under the Facility plus the Applicable Percentage of each             Participating Bank. The L/C Administrator shall not amend any Several Letter of             Credit to change the “Commitment Shares” of a Lender or add or delete a Lender             liable thereunder unless such amendment is done in connection with an assignment             in accordance with Section 10.06, a change in the Lenders and/or the Applicable             Percentages  under  the Facility as  a  result  of  any  increase  in  the  Aggregate             Commitments pursuant to Section 2.14 or any other addition or replacement of a             Lender in accordance with the terms of this Agreement or a change in status of a             Lender as a Participating Bank.  Each Lender hereby irrevocably constitutes and             appoints the L/C Administrator its true and lawful attorney-in-fact for and on behalf             of such Lender with full power of substitution and revocation in its own name or in             the name of the L/C Administrator to issue, execute and deliver, as the case may             be, each Several Letter of Credit and each amendment to a Several Letter of Credit             and to carry out the purposes of this Agreement with respect to Several Letters of             Credit. Upon request, each Lender shall execute such powers of attorney or other             documents  as  any  beneficiary  of  any  Several  Letter  of  Credit  may  reasonably             request to evidence the authority of the L/C Administrator to execute and deliver             such Several Letter of Credit and any amendment or other modification thereto on             behalf of the Lenders.                    (vii) The Applicable Issuing Party shall act on behalf of the Lenders with             respect to any Letters of Credit issued by it and the documents associated therewith,             and  the  Applicable  Issuing  Party  shall  have  all  of  the  benefits  and  immunities             (A) provided to the Administrative Agent in Article IX with respect to any acts             taken or omissions suffered  by the  Applicable Issuing Party  in connection with                                       35                                        13227198v7 27112.00011                

 

                           Letters of Credit issued by it or proposed to be issued by it and Issuer Documents             pertaining to such Letters of Credit as fully as if the term “Administrative Agent”             as used in Article IX included the Fronting Bank and the L/C Administrator with             respect  to  such  acts  or  omissions,  and  (B) as  additionally  provided  herein  with             respect to the Fronting Bank and the L/C Administrator.              (b)   Procedures  for  Issuance  and  Amendment  of  Letters  of  Credit;  Auto-      Renewal Letters of Credit.                    (i)   Each Letter of Credit shall be issued or amended, as the case may             be, upon the request of the applicable Loan Party delivered to (x) a Fronting Bank,             in the case of Fronted Letters of Credit and (y) the L/C Administrator, in the case             of Several Letters of Credit (with a copy in each case to the Administrative Agent)             in the form of a Letter of Credit Application, appropriately completed and signed             by a Responsible Officer of such Loan Party.  Such Letter of Credit Application             must be received by the Applicable Issuing Party and the Administrative Agent not             later than 11:00 a.m. at least two (2) Business Days (or such later date and time as             the Administrative Agent and the Applicable Issuing Party may agree in a particular             instance  in  their  sole  discretion)  prior  to  the  proposed  issuance  date  or  date  of             amendment, as the case may be.  In the case of a request for an initial issuance of a             Letter of Credit, such Letter of Credit Application shall specify in form and detail             satisfactory to the Applicable Issuing Party:  (A)  the name of the account party,             which shall be the applicable Loan Party; (B) the proposed issuance date of the             requested Letter of Credit (which shall be a Business Day); (C) the amount thereof;             (D) the expiry date thereof; (E) the name and address of the beneficiary thereof;             (F) the  documents  to  be  presented  by  such  beneficiary  in  case  of  any  drawing             thereunder; (G) the full text of any certificate to be presented by such beneficiary             in case of any drawing thereunder; (H) whether such Letter of Credit shall be an             Auto-Renewal Letter of Credit; (I) whether such Letter of Credit is to be a Fronted             Letter of Credit or a Several Letter of Credit (and, in the case of Several Letters of             Credit, in the event a Lender advises the L/C Administrator that such Lender is a             Participating  Bank,  such  Participating  Bank’s  Applicable  Percentage  of  such             Several Letter of Credit will be issued by the applicable Fronting Bank); (J) whether             such Letter of Credit will be a Secured Letter of Credit or an Unsecured Letter of             Credit; and (K) such other matters as the Applicable Issuing Party may require.  In             the case of a request for an amendment of any outstanding Letter of Credit, such             Letter of  Credit  Application  shall  specify  in  form  and  detail  satisfactory  to the             Applicable Issuing Party (1) the Letter of Credit to be amended; (2) the proposed             date of amendment thereof (which shall be a Business Day); (3) the nature of the             proposed amendment; and (4) such other matters as the Applicable Issuing Party             may require.  Additionally, the applicable Loan Party shall furnish to the Applicable             Issuing Party and the Administrative Agent such other documents and information             pertaining to such requested Letter of Credit issuance or amendment, including any             Issuer Documents, as the Applicable Issuing Party or the Administrative Agent may             require.                                         36                                        13227198v7 27112.00011                

 

                                 (ii)  Promptly  after  receipt  of  any  Letter  of  Credit  Application,  the             Applicable Issuing Party will confirm with the Administrative Agent (by telephone             or in writing) that the Administrative Agent has received a copy of such Letter of             Credit Application from a Loan Party and, if not, the Applicable Issuing Party will             provide  the  Administrative  Agent  with  a  copy  thereof.   Unless  the  Applicable             Issuing  Party  has  received  written  notice  from  any  Lender,  the  Administrative             Agent or any Loan Party, at least one Business Day prior to the requested date of             issuance  or  amendment  of  the  applicable  Letter  of  Credit,  that  one  or  more             applicable  conditions  contained  in Article IV shall  not  then  be  satisfied,  then,             subject to the terms and conditions hereof, the Applicable Issuing Party shall, on             the requested date, issue a Letter of Credit for the account of such Loan Party or             enter into the applicable amendment, as the case may be, in each case in accordance             with  the  Applicable  Issuing  Party’s  usual  and  customary  business  practices.              Immediately upon the issuance of each Fronted Letter of Credit, each Lender shall             be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from             the issuing Fronting Bank a risk participation in such Fronted Letter of Credit in an             amount  equal  to the  product  of  such  Lender’s  Applicable  Percentage  under  the             Facility times the amount of such Letter of Credit.  Immediately upon the issuance             of  a  Several  Letter  of  Credit  in  which  a  Fronting  Bank  has  “fronted”  for  a             Participating  Bank,  such  Participating  Bank  shall  be  deemed  to,  and  hereby             irrevocably and unconditionally agrees to, without recourse or warranty, purchase             from the issuing Fronting Bank a risk participation in such Several Letter of Credit             in  an  amount  equal  to  the  product  of  such  Participating  Bank’s  Applicable             Percentage under the Facility times the amount of such Several Letter of Credit.                    (iii) If either Loan Party so requests in any applicable Letter of Credit             Application, the Applicable Issuing Party may, in its sole and absolute discretion,             agree to issue a Letter of Credit that has automatic renewal provisions (each, an             “Auto-Renewal Letter of Credit”); provided that any such Auto-Renewal Letter of             Credit must permit the Applicable Issuing Party 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  ninety  (90)  days’  (or  such  lesser  number  of  days             specified  by the requesting Loan Party  in  its Letter of Credit Application) prior             notice to the beneficiary thereof (the “Nonrenewal Notice Date”).  Unless otherwise             directed by the Applicable Issuing Party, no Loan Party shall be required to make             a specific request to the Applicable Issuing Party for any such renewal.  Once an             Auto-Renewal Letter of Credit has been issued, the Lenders shall be deemed to             have authorized (but may not require) the Applicable Issuing Party to permit the             renewal of such Letter of Credit at any time to an expiry date not later than the first             anniversary of the Maturity Date; provided, however, that the Applicable Issuing             Party shall  not permit any such renewal  if (A) the Applicable Issuing Party has             determined that it would not be permitted, or would have no obligation at such time,             to issue such  Letter of Credit  in  its revised  form (as extended) under the terms             hereof (by reason of the provisions of Section 2.03(a)(ii) or (iii) or otherwise), or             (B) it has received notice (which may be by telephone or in writing) on or before             the day that is two (2) Business Days before the Nonrenewal Notice Date (1) from             the Administrative Agent that the Required Lenders have elected not to permit such                                       37                                        13227198v7 27112.00011                

 

                           renewal or (2) from the Administrative Agent, any Lender or any Loan Party that             one or more of the applicable conditions specified in Section 4.02 (other than the             delivery by the Borrower of a Loan Notice) is not then satisfied, and in each such             case directing the Applicable Issuing Party not to permit such extension.                    (iv)  Promptly after its delivery of any Letter of Credit or any amendment             to a Letter of Credit to an advising bank with respect thereto or to the beneficiary             thereof, the Applicable Issuing Party will also deliver to the Loan Party requesting             the  issuance  or  amendment  thereof  and  the  Administrative  Agent  a  true  and             complete copy of such Letter of Credit or amendment.              (c)   Drawings and Reimbursements; Funding of Participations.                    (i)   Upon receipt from the beneficiary of any  Letter of Credit of any             notice  of  a  drawing  (a  “Drawing  Request”)  under  such  Letter  of  Credit,  the             Applicable Issuing Party shall notify the Loan Party for whose account such Letter             of  Credit  was  issued  and  the  Administrative  Agent  thereof.   Not  later  than             11:00 a.m. on the date of any payment by the  Applicable Issuing Party under a             Letter of Credit (each such date, an “Honor Date”), such Loan Party shall reimburse             the  respective  L/C  Issuers  through  the  Administrative  Agent  in  immediately             available funds in an amount equal to the amount of such drawing.  If such Loan             Party  fails  to  so  reimburse  the  respective  L/C  Issuers  by  such  time,  the             Administrative Agent shall promptly  notify each Lender of the Honor Date, the             amount  of  the  unreimbursed  drawing  (the  “Unreimbursed  Amount”),  and  the             amount of such Lender’s Applicable Percentage thereof under the Facility.  In such             event, the Borrower shall be deemed to have requested a Revolving Borrowing of             Base Rate Loans to be disbursed on the Honor Date in an amount equal to the             Unreimbursed Amount, without regard to the minimum and multiples specified in             Section 2.02 for the principal amount of Base Rate Loans, but subject to the amount             of the unutilized portion of the Aggregate Commitments and the conditions set forth             in Section 4.02 (other than the delivery by the Borrower of a Loan Notice).  Any             notice given by the Applicable Issuing Party or the Administrative Agent pursuant             to this Section 2.03(c)(i) may be given by telephone if immediately confirmed in             writing; provided that the lack of such an immediate confirmation shall not affect             the conclusiveness or binding effect of such notice.                    (ii)  Each  Lender  shall  upon  any  notice  pursuant  to Section 2.03(c)(i)             make immediately available funds available to the Administrative Agent for the             account of the Applicable Issuing Party at the Administrative Agent’s Office in an             amount equal to its Applicable Percentage under the Facility of the Unreimbursed             Amount not later than 1:00 p.m. on the Honor Date specified in such notice by the             Administrative  Agent  (the  “L/C  Advance  Date”),  whereupon,  subject  to  the             provisions of Section 2.03(c)(iii), each Lender that so makes immediately available             funds available shall be deemed to have made a Base Rate Loan to the Borrower in             such amount.  The Administrative Agent shall remit the funds so received to the             Applicable  Issuing Party.   To  the  extent  that  immediately  available  funds  are             received by the Administrative Agent from the Lenders (or the Fronting Bank on             behalf of a Participating Bank) with respect to a Several Letter of Credit prior to                                       38                                        13227198v7 27112.00011                

 

                           2:00 p.m. on the L/C Advance Date, the Administrative Agent shall notify the L/C             Administrator and the L/C Administrator shall promptly make such funds available             to the beneficiary of such Several Letter of Credit on such date. To the extent that             the L/C Administrator has not delivered funds to any beneficiary of a Several Letter             of Credit on behalf of a Lender on the L/C Advance Date, because immediately             available funds are received by the Administrative Agent from such Lender:  (A)             after 2:00 p.m. on the L/C Advance Date, the L/C Administrator shall make such             funds available to such beneficiary on the next Business Day; (B) prior to 2:00 p.m.             on any Business Day after the L/C Advance Date, the L/C Administrator shall make             such  funds  available  to  such  beneficiary  on  such  Business  Day;  and (C)  after             2:00 p.m. on any Business Day after the L/C Advance Date, the L/C Administrator             shall  make  such  funds  available  to  such  beneficiary  on  the  next  Business  Day             following such Business Day.                    Unless the Administrative Agent or L/C Administrator receives notice from             a Lender prior to any L/C Advance Date with respect to a Several Letter of Credit             that such Lender will not make available as and when required hereunder to the             Administrative  Agent  the  amount  of  such  Lender’s  L/C  Advance  on  such  L/C             Advance Date, the Administrative Agent and the L/C Administrator may assume             that such Lender has made such amount available to the Administrative Agent in             immediately available funds on such L/C Advance Date and the L/C Administrator             may (but shall not be required), in reliance upon such assumption, make available             to the beneficiary of such Several Letter of Credit on such date such Lender’s L/C             Advance.                    (iii) With  respect  to  any  Unreimbursed  Amount  that  is  not  fully             refinanced by a Revolving Borrowing of Base Rate Loans because the conditions             set forth in Section 4.02 cannot be satisfied or for any other reason, the Borrower             shall  be  deemed  to  have  incurred  an  L/C  Borrowing  in  the  amount  of  the             Unreimbursed Amount that is not so refinanced (x) in the case of Fronted Letters             of Credit, from the issuing Fronting Bank and (y) in the case of Several Letters of             Credit, from the Lenders to the extent that they have provided funds with respect to             such  Several  Letter  of  Credit  pursuant  to Section 2.03(c)(ii),  from  the  Fronting             Bank to the extent it has made funds available on behalf of a Participating Bank or             from the L/C Administrator to the extent it has made funds available on behalf of a             Lender pursuant to Section 2.03(c)(ii). L/C Advances shall be due and payable on             demand (together with interest) and shall bear interest at the Default Rate.  Each             Lender’s  or  Participating  Bank’s  payment  to  the  Administrative  Agent  for  the             account of a Fronting Bank pursuant to Section 2.03(c)(ii) shall be deemed payment             in  respect  of  its  participation  in  such  L/C  Advance  and  shall  constitute  an  L/C             Advance from such Lender in satisfaction of its participation obligation under this             Section 2.03.  Any payment by the Borrower in respect of such L/C Advance shall             be  made  to  the  Administrative  Agent  and  upon  receipt  applied  by  the             Administrative Agent in accordance with Section 2.03(d).                    (iv)  Until  each  Lender  funds  its  Revolving Loan  or  L/C  Advance             pursuant  to  this Section 2.03(c) to  reimburse  a  Fronting  Bank  (or  the  L/C                                        39                                        13227198v7 27112.00011                

 

                           Administrator  pursuant  to Section 2.03(c)(ii))  for  any  amount  drawn  under  any             Letter of Credit, interest in respect of such Lender’s Applicable Percentage under             the Facility of such amount shall be solely for the account of the relevant Fronting             Bank or the L/C Administrator, as applicable.                    (v)   Each  Lender’s  obligation  to  make  Revolving  Loans  or  L/C             Advances  to  reimburse  the  relevant  Fronting  Bank  (or  the  L/C  Administrator             pursuant  to Section 2.03(c)(ii))  for  amounts  drawn  under  Letters  of  Credit,  as             contemplated by this Section 2.03(c), shall be absolute and unconditional and shall             not  be  affected  by  any  circumstance,  including  (A) any  setoff,  counterclaim,             recoupment,  defense  or  other  right  which  such  Lender  may  have  against  the             Administrative Agent, any Fronting Bank, the L/C Administrator, any Lender, any             Borrower, any beneficiary  named  in any Letter of  Credit, any transferee of any             Letter of Credit (or any Persons for whom any such transferee may be acting) or             any other Person for any reason whatsoever, (B) the occurrence or continuance of             a Default, (C) any lack of validity or enforceability of such Letter of Credit, this             Agreement or any other Loan Document, (D) any draft, certificate or any other             document presented under any Letter of Credit proving to be forged, fraudulent,             invalid  or  insufficient  in  any  respect  or  any  statement  therein  being  untrue  or             inaccurate in any respect, (E) the surrender or impairment of any security for the             performance or observance of any of the terms of the Loan Documents, or (F) any             other occurrence, event or condition, whether or not similar to any of the foregoing;             provided, however,  that  each  Lender’s  obligation  to  make  Revolving  Loans             pursuant to this Section 2.03(c) is subject to the conditions set forth in Section 4.02             (other than delivery by the Borrower of a Loan Notice).  No such making of an L/C             Advance  shall  relieve  or otherwise  impair  the obligation  of  the  Loan  Parties  to             reimburse the respective L/C Issuers for the amount of any payment made by the             respective L/C Issuers under any Letter of Credit, together with interest as provided             herein.                    (vi)  If any Lender fails to make available to the Administrative Agent             for the account of a Fronting Bank or to the L/C Administrator any amount required             to  be  paid  by  such  Lender  pursuant  to  the  foregoing  provisions  of  this             Section 2.03(c) by the time specified in Section 2.03(c)(ii), such Fronting Bank or             the  L/C  Administrator,  as  the  case  may  be (acting  through  the  Administrative             Agent, which shall promptly remit to the applicable party amounts recovered for its             account), shall be entitled to recover from such Lender, on demand, such amount             with interest thereon for the period from the date such payment is required to the             date on which such payment is immediately available to such Fronting Bank or the             L/C Administrator, as the case may be, at a rate per annum equal to the greater of             the  Federal  Funds  Rate  and  a  rate  determined  by  the  applicable  L/C Issuer  in             accordance  with  banking  industry  rules  on  interbank  compensation,  plus  any             administrative,  processing  or  similar  fees  customarily  charged  by  the  Fronting             Bank or the L/C Administrator in connection with the foregoing. A certificate of             such Fronting Bank or the L/C Administrator, as the case may be submitted to any             Lender  (through  the  Administrative  Agent)  with  respect  to  any  amounts  owing             under this clause (vi) shall be conclusive absent manifest error.                                        40                                        13227198v7 27112.00011                

 

                           (d)   Repayment of Participations.                    (i)   At any time after the Applicable Issuing Party has made a payment             under any Letter of Credit and has received from any Lender such Lender’s L/C             Advance  in  respect  of  such  payment  in  accordance  with Section 2.03(c),  if  the             Administrative Agent receives any payment in respect of the related Unreimbursed             Amount  or  interest  thereon  (whether  directly  from  a  Loan  Party  or  otherwise,             including proceeds of Cash Collateral applied thereto by the Administrative Agent),             the Administrative Agent will distribute to such Lender its Applicable Percentage             thereof under the Facility (appropriately adjusted, in the case of interest payments,             to  reflect  the  period  of  time  during  which  such  Lender’s  L/C  Advance  was             outstanding)  and  in  Dollars  in  the  same  funds  as  those  received  by  the             Administrative Agent.                    (ii)  If any payment received by the Administrative Agent pursuant to             Section 2.03(c)(i) is  required  to  be  returned  under  any  of  the  circumstances             described in Section 10.05 (including pursuant to any settlement entered into by the             applicable Fronting Bank or the L/C Administrator in its discretion), each Lender             shall pay to the Administrative Agent for the account of such Fronting Bank or L/C             Administrator its Applicable Percentage thereof under the Facility on demand of             the Administrative Agent, plus interest thereon from the date of such demand to the             date  such  amount  is  returned  by  such  Lender,  at  a rate  per  annum  equal  to the             Federal Funds Rate from time to time in effect.  The obligations of the Lenders             under  this  clause  shall  survive  the  payment  in  full  of  the  Obligations  and  the             termination of this Agreement.              (e)   Obligations Absolute.  The obligation of each Loan Party to reimburse the       respective L/C Issuers for each drawing under each Letter of Credit issued for its account       and to repay each related L/C Borrowing shall be absolute, unconditional and irrevocable,       and  shall  be  paid  strictly  in  accordance  with  the  terms  of  this  Agreement  under  all       circumstances, including the following:                    (i)   any lack of validity or enforceability of such Letter of Credit, this             Agreement, or any other Loan Document;                    (ii)  the existence of any claim, counterclaim, setoff, defense or other             right  that  the  Borrower  or  any  Subsidiary  may  have  at  any  time  against  any             beneficiary or any transferee of such Letter of Credit (or any Person for whom any             such beneficiary or any such transferee may be acting), the Applicable Issuing Party             or any L/C Issuer or any other Person, whether in connection with this Agreement,             the transactions contemplated hereby or by such Letter of Credit or any agreement             or instrument relating thereto, or any unrelated transaction;                    (iii) any  draft,  demand,  certificate or other  document  presented  under             such Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any             respect or any statement therein being untrue or inaccurate in any respect; or any             loss or delay in the transmission or otherwise of any document required in order to             make a drawing under such Letter of Credit;                                       41                                        13227198v7 27112.00011                

 

                     (iv)  any payment by the Applicable Issuing Party under such Letter of              Credit against presentation of a draft or certificate that does not strictly comply with              the terms of such Letter of Credit; or any payment made by the Applicable Issuing              Party  under  such  Letter  of  Credit to  any  Person  purporting  to  be  a  trustee  in              bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator,              receiver or other representative of or successor to any beneficiary or any transferee              of such Letter of Credit, including any arising in connection with any proceeding              under any Debtor Relief Law; or                     (v)   any  other  circumstance  or  happening  whatsoever,  whether or  not              similar  to  any  of  the  foregoing,  including  any  other  circumstance  that  might              otherwise constitute a defense available to, or a discharge of, the Borrower or any              Subsidiary.         The Loan Party who shall have requested a Letter of Credit or an amendment thereto shall  promptly examine a copy of each Letter of Credit and each amendment thereto that is delivered to  it and, in the event of any claim of noncompliance with such Loan Party’s instructions or other  irregularity, such Loan Party will immediately notify the Applicable Issuing Party.  The applicable  Loan Party shall be conclusively deemed to have waived any such claim against the Applicable  Issuing Party and its correspondents unless such notice is given as aforesaid.               (f)   Role of Applicable Issuing Party.  Each Lender and the Loan Parties agree        that, in paying any drawing under a Letter of Credit, the Applicable Issuing Party shall not        have any responsibility to obtain any document (other than any sight draft, certificates and        documents expressly required by the Letter of Credit) or to ascertain or inquire as to the        validity  or  accuracy  of  any  such  document or the  authority  of the Person  executing  or        delivering any such document.  None of the Applicable Issuing Parties, the Lenders, the        Administrative  Agent,  any  of  their  respective  Related  Parties  nor  any  correspondent,        participant or assignee of an Applicable Issuing Party shall  be liable to any Lender for        (i) any action taken or omitted in connection herewith at the request or with the approval        of the Lenders or the Required Lenders, as applicable; (ii) any action taken or omitted in        the  absence  of  gross  negligence  or  willful  misconduct;  or  (iii) the  due  execution,        effectiveness, validity or enforceability of any document or instrument related to any Letter        of Credit or Issuer Document.  The Loan Parties hereby assume all risks of the acts or        omissions of any beneficiary or transferee with respect to its use of any Letter of Credit;        provided, however, that this assumption is not intended to, and shall not, preclude any Loan        Party’s  pursuing  such  rights  and  remedies  as  it  may  have  against  the  beneficiary  or        transferee at law or under any other agreement.  None of the Applicable Issuing Parties,        the  Lenders, the  Administrative  Agent,  any  of  their  respective  Related  Parties  nor  any        correspondent, participant or assignee of an  Applicable Issuing Party shall  be  liable or        responsible for any of the matters described in clauses (i) through (v) of Section 2.03(e);        provided, however, that anything in such clauses or otherwise in this subsection (f) to the        contrary notwithstanding, the Loan Parties may have a claim against an L/C Issuer and/or        an Applicable Issuing Party and an L/C Issuer and/or an Applicable Issuing Party may be        liable to the Loan Parties, to the extent, but only to the extent, of any direct, as opposed to        consequential or exemplary, damages suffered by the Loan Parties which the Loan Parties        prove  were  caused  by  such  L/C  Issuer’s  and/or  the  Applicable  Issuing  Party’s  willful                                         42                                         13227198v7 27112.00011   

 

                     misconduct or gross negligence or such L/C Issuer’s or Applicable Issuing Party’s willful       failure to pay under any Letter of Credit after the presentation to it by the beneficiary of a       sight draft and certificate(s) strictly complying with the terms and conditions of a Letter of       Credit.  In furtherance and not in limitation of the foregoing, the Applicable Issuing Party       may accept documents that appear on their face to be in order, without responsibility for       further investigation, regardless of any notice or information to the contrary, and neither       the  Applicable  Issuing  Party  nor  any  Lender  shall  be  responsible  for  the  validity  or       sufficiency of any instrument transferring or assigning or purporting to transfer or assign a       Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part,       which may prove to be invalid or ineffective for any reason.              (g)   Cash Collateral.                      (i)   Upon the request of the Administrative Agent, if an L/C Issuer has             honored any full or partial drawing request under any Letter of Credit and such             drawing has resulted in an L/C Borrowing, the Loan Parties shall immediately Cash             Collateralize the then Outstanding Amount of all L/C Obligations.  Additionally,             the  Loan  Parties shall Cash  Collateralize each  Extended  Letter of  Credit  (in  an             amount equal to 103% of the maximum face amount of each Extended Letter of             Credit, calculated in accordance with Section 1.06) by the  date that is 5 Business             Days prior to the Maturity Date (or if such day is not a Business Day, the next             preceding Business Day); provided that if the Loan Parties fail to provide such Cash             Collateral with respect to any such Extended Letter of Credit by such time, such             event  shall  be  treated  as  a  drawing  under such  Extended  Letter of  Credit  in  an             amount equal to 103% of the maximum face amount of each such Letter of Credit,             calculated  in  accordance  with Section 1.06,  which shall  be  reimbursed  (or             participations  therein  funded)  in  accordance  with  this Section 2.03,  with  the             proceeds of Loans (or funded participations) being utilized to provide such Cash             Collateral for such Letter of Credit (provided that for purposes of determining the             usage of the Aggregate Commitment, any such Extended Letter of Credit that has             been, or will  concurrently  be, Cash Collateralized with proceeds of a Loan, the             portion of such Extended Letter of Credit that has been (or will concurrently be) so             Cash Collateralized will not be deemed to be utilization of the Commitments).                    (ii)  Sections 2.05(c) and 8.02(c) set forth certain requirements to deliver             Cash Collateral in addition to those set forth in Section 2.03(g)(ii).  For purposes             of this Section 2.03, Section 2.05 and Section 8.02(c), “Cash Collateralize” means             to pledge and deposit Cash with or deliver Cash to the Administrative Agent (or,             with  respect  to Cash  Collateral  for Extended  Letters  of  Credit,  the  Applicable             Issuing Party), for the benefit, as applicable, of the Fronting Banks, L/C Issuers or             the Lenders, as collateral for the L/C Obligations, or obligations of the Fronting             Bank  or  Lenders  to  fund  or  fund  participations  in  respect  of  Letters  of  Credit,             pursuant to documentation in form and substance satisfactory to the Administrative             Agent or the Applicable Issuing Party, as applicable, the Fronting Banks and the             L/C Issuers (which documents are hereby consented to by the Lenders). Derivatives             of such term have corresponding meanings.  The Loan Parties hereby grant to the             Administrative Agent (or, with respect to Cash Collateral for Extended Letters of                                        43                                        13227198v7 27112.00011                

 

                           Credit, the Applicable Issuing Party), for the benefit of the Fronting Banks, L/C             Issuers and the Lenders, a security interest in all such cash, deposit accounts and all             balances  therein  and  all  proceeds  of  the  foregoing.   Cash  Collateral  delivered             pursuant  to  this Section 2.03(g), Section 2.05(c) or Section 8.02(c) shall  be             maintained in blocked, non-interest bearing deposit accounts at Bank of America             (or, with respect to Cash Collateral for Extended Letters of Credit, the Applicable             Issuing Party).              (h)   Applicability of ISP and UCP.  Unless otherwise expressly agreed by the       Applicable Issuing Party and the applicable Loan Party when a Letter of Credit is issued       the rules of the Uniform Customs and Practice for Documentary Credits (UCP 600), as       most recently published by the International Chamber of Commerce at the time of issuance,       or the ISP, as applicable, shall apply to such Letter of Credit.              (i)   Letter of  Credit  Fees.   Each  Loan  Party  shall  pay  to the  Administrative       Agent for the account of each Lender in accordance with its Applicable Percentage under       the Facility, in Dollars, a Letter of Credit fee (the “Letter of Credit Fee”) for each Letter of       Credit issued for such Loan Party’s account equal to (i) in the case of Unsecured Letters of       Credit, the Applicable Rate (calculated per day) times the daily amount available to be       drawn under such Unsecured Letter of Credit and (ii) in the case of Secured Letters of       Credit, 0.50% per annum (calculated per day) times the daily amount available to be drawn       under such Secured Letter of Credit.  For purposes of computing the daily amount available       to  be  drawn  under  any  Letter  of  Credit,  the  amount  of  such  Letter  of  Credit  shall  be       determined in accordance with Section 1.06. Letter of Credit Fees shall be (i) computed on       a quarterly basis in arrears and (ii) due and payable on the first Business Day after the end       of each March, June, September and December, commencing with the first such date to       occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date       and thereafter on demand.  If there is any change in the Applicable Rate during any quarter,       the daily amount available to be drawn under each Letter of Credit shall be computed and       multiplied by the Applicable Rate separately for each period during such quarter that such       Applicable Rate was in effect.  Notwithstanding anything to the contrary contained herein,       upon the request of the Required Lenders, while any Event of Default exists, all Letter of       Credit Fees shall accrue at the Default Rate.              (j)   Fronting Fee and Documentary and Processing Charges Payable to Fronting       Bank.  Each Loan Party shall pay directly to each Fronting Bank for its own account, a       fronting  fee with respect to  each Fronted Letter of Credit issued  for such Loan Party’s       account by such Fronting Bank, at the rate per annum agreed to between the Borrower and       such Fronting Bank, calculated based on the daily amount available to be drawn under such       Letter of Credit on a quarterly basis in arrears, and due and payable on the first Business       Day after the end of each March, June, September and December, commencing with the       first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit       Expiration Date and thereafter on demand (it being understood that each Fronting Bank       will  invoice the Loan Parties directly  for amounts due under this Section 2.03(j)).  For       purposes of computing the daily amount available to be drawn under any Letter of Credit,       the amount of such Letter of Credit shall be determined in accordance with Section 1.06.        In addition, the Loan Parties shall pay directly to the Applicable Issuing Party, for its own                                        44                                        13227198v7 27112.00011                

 

                     account, the customary issuance, presentation, amendment and other processing fees, and       other standard costs and charges, of the Applicable Issuing Party relating to letters of credit       as from time to time in effect.  Such customary fees and standard costs and charges are due       and payable on demand and are nonrefundable.              (k)   Several L/C Fronting Fee.  The applicable Fronting Bank shall be paid a       fronting fee (the “Several L/C Fronting Fee”) computed on the risk participation purchased       by each Participating Bank from such Fronting Bank with respect to each Several Letter of       Credit at the rate per annum agreed among such Participating Bank, the Fronting Bank and       the Loan Parties.  Such  fee (or portions thereof, as applicable) shall  be payable  by the       Participating  Bank and/or the Loan Parties as  may  be agreed. Unless otherwise agreed       among, as applicable, a Loan Party, the Fronting Bank, the Participating Bank and the       Administrative Agent, the Several L/C Fronting Fee shall be paid quarterly in arrears and       each  Fronting  Bank  will  invoice  the  applicable  party  or  parties  for  any  Several  L/C       Fronting Fees owed to it.              (l)   Redesignation of Letters of Credit.  Each Loan Party may from time to time,       in its sole discretion, but subject to the provisions of this Section, elect to redesignate as an       Unsecured Letter of Credit a Letter of Credit which was initially issued as a Secured Letter       of Credit issued for such Loan Party’s account.  Such redesignation shall be accomplished       by the delivery of written notice from such Loan Party to the Administrative Agent at least       five (5) Business Days in advance of the date upon which such redesignation is requested       to become effective, which notice shall identify the applicable Letter of Credit, shall certify       that no Default has occurred and is continuing and shall contain such other information and       be in such form as the Administrative Agent may reasonably request.  The Administrative       Agent  shall  give  prompt  notice  of  its  receipt of  any  such  request  to  the  Lenders.  The       Administrative  Agent,  in  reliance  upon  such  request  and  certification  shall  (unless  any       Lender shall have notified the Administrative Agent in writing that a Default exists) release       from  the  Collateral  Account  Eligible  Collateral  having  in  the  aggregate  Adjusted  Fair       Market Value equal or approximately equal to the amount of L/C Obligations associated       with such Letter of Credit; provided, however, that in no event shall the Administrative       Agent release Eligible Collateral to the extent that, after giving effect to such release, the       Borrowing Base would be less than the amount of outstanding Secured L/C Obligations.        From and after the date of such release, the applicable Letter of Credit shall be deemed to       be an Unsecured Letter of Credit for all purposes hereof, including without limitation for       purposes of determining the amount of the Letter of Credit Fee payable with respect thereto       pursuant to Section 2.03(i).              (m)   Conflict with Issuer Documents.  In the event of any conflict between the       terms hereof and the terms of any Issuer Document, the terms hereof shall control.              (n)   Existing Letters of Credit.  The Loan Parties, the L/C Administrator and the       Lenders agree that, as of the Effective Date, each Existing Letter of Credit described on       Schedule 2.03 which is a Several Letter of Credit issued for the account of any Loan Party       under the Existing Credit Agreement and which remains outstanding as of the Effective       Date (as amended as contemplated by Section 4.01(f)) shall (A) be deemed  issued and       continued under this Agreement as of the Effective Date as a “Several Letter of Credit” all                                        45                                        13227198v7 27112.00011                

 

                     as set forth on such schedule and (B) shall constitute a “Several Letter of Credit” for all       purposes hereof.              (o)   Upon a Lender becoming a Participating Bank, it shall (i) promptly deliver       a  Participating  Notice  to  the  Borrower,  the  Administrative  Agent  and  the  L/C       Administrator and (ii) use its commercially reasonable efforts to cause a Lender which is       not a Participating Bank to act as a Fronting Bank for such Participating Bank with respect       to Several Letters of Credit.        2.04  Swing Line Loans.              (a)   The Swing Line.  Subject to the terms and conditions set forth herein, the       Swing Line Lender agrees, in reliance upon the agreements of the other Lenders set forth       in this Section 2.04, to make loans (each such loan, a “Swing Line Loan”) to the Borrower       from time to time on any Business Day during the  Availability Period  in an aggregate       amount not to  exceed at any time outstanding the amount of the Swing Line Sublimit;       provided, however,  that  after  giving  effect  to  any  Swing  Line  Loan,  (i) the Total       Outstandings shall not exceed the Aggregate Commitments, (ii) the aggregate Outstanding       Amount of the Revolving Loans of any Lender (other than the Swing Line Lender), plus       such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations,       plus such Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line       Loans shall  not  exceed such Lender’s Commitment and (iii) the aggregate Outstanding       Amount of the Revolving Loans of the Swing Line Lender, plus the Swing Line Lender’s       Applicable  Percentage  of  the  Outstanding  Amount  of  all  L/C  Obligations, plus the       Outstanding Amount of all Swing Line Loans shall not exceed the Swing Line Lender’s       Commitment, and provided, further, that the Borrower shall not use the proceeds of any       Swing Line Loan to refinance any outstanding Swing Line Loan.  Within the foregoing       limits, and subject to the other terms and conditions hereof, the Borrower may  borrow       under this Section 2.04, prepay under Section 2.05, and reborrow under this Section 2.04.        Each Swing Line Loan shall be a Base Rate Loan.  Immediately upon the making of a       Swing  Line  Loan,  each  Lender  shall  be  deemed  to,  and  hereby  irrevocably  and       unconditionally agrees to, purchase from the Swing Line Lender a risk participation in such       Swing  Line  Loan  in  an  amount  equal  to  the  product  of  such  Lender’s  Applicable       Percentage under the Facility times the amount of such Swing Line Loan.              (b)   Borrowing Procedures.  Each Swing Line Borrowing shall be made upon       the Borrower’s irrevocable notice to the Swing Line Lender and the Administrative Agent,       which may be given by telephone.  Each such notice must be received by the Swing Line       Lender and the Administrative Agent not later than 1:00 p.m. on the requested borrowing       date,  and  shall  specify  (i) the  amount  to  be  borrowed,  which  shall  be  a  minimum  of       $250,000, and (ii) the requested borrowing date, which shall be a Business Day.  Each such       telephonic notice must be confirmed promptly by delivery to the Swing Line Lender and       the Administrative Agent of a written Swing Line Loan Notice, appropriately completed       and signed by a Responsible Officer of the Borrower.  Promptly after receipt by the Swing       Line  Lender  of  any  telephonic  Swing  Line  Loan  Notice,  the  Swing  Line  Lender  will       confirm with the Administrative Agent (by telephone or in writing) that the Administrative       Agent has also received such Swing Line Loan Notice and, if not, the Swing Line Lender       will notify the Administrative Agent (by telephone or in writing) of the contents thereof.                                        46                                        13227198v7 27112.00011                

 

                     Unless the Swing Line Lender has received notice (by telephone or in writing) from the       Administrative Agent (including at the request of any Lender) prior to 2:00 p.m. on the       date of the proposed Swing Line Borrowing (A) directing the Swing Line Lender not to       make such Swing Line Loan as a result of the limitations set forth in the proviso to the first       sentence of Section 2.04(a), or (B) that one or more of the applicable conditions specified       in Article IV is not then satisfied, then, subject to the terms and conditions  hereof, the       Swing Line Lender will, not later than 3:00 p.m. on the borrowing date specified in such       Swing  Line  Loan  Notice,  make  the  amount  of  its  Swing  Line  Loan  available  to  the       Borrower at its office by crediting the account of the Borrower on the books of the Swing       Line Lender in immediately available funds.              (c)   Refinancing of Swing Line Loans.                    (i)   The  Swing  Line  Lender  at  any  time  in  its  sole  and  absolute             discretion  may  request,  on  behalf  of  the  Borrower  (which  hereby  irrevocably             authorizes the Swing Line Lender to  so request on its behalf), that each Lender             make a Base Rate Loan in an amount equal to such Lender’s Applicable Percentage             of the amount of Swing Line Loans then outstanding.  Such request shall be made             in  writing  (which  written  request  shall be  deemed  to  be  a  Loan  Notice  for  a             Revolving Loan for purposes hereof) and in accordance with the requirements of             Section 2.02, without regard to the minimum and multiples specified therein for the             principal amount of Base Rate Loans, but subject to the unutilized portion of the             Aggregate Commitments and the conditions set forth in Section 4.02.  The Swing             Line Lender shall furnish the Borrower with a copy of the applicable Loan Notice             promptly after delivering such notice to the Administrative Agent.  Each Lender             shall make an amount equal to its Applicable Percentage of the amount specified in             such Loan Notice available to the Administrative Agent in immediately available             funds  for  the  account  of  the  Swing  Line  Lender  at  the  Administrative  Agent’s             Office  not  later  than  1:00 p.m.  on  the  day  specified  in  such  Loan  Notice,             whereupon,  subject  to Section 2.04(c)(ii),  each  Lender  that  so  makes  funds             available shall be deemed to have made a Base Rate Loan to the Borrower in such             amount.  The Administrative Agent shall remit the funds so received to the Swing             Line Lender.                    (ii)  If for any reason any Swing Line Loan cannot be refinanced by such             a Revolving Borrowing in accordance with Section 2.04(c)(i), the request for Base             Rate Loans submitted by the Swing Line Lender as set forth herein shall be deemed             to be a request by the Swing Line Lender that each of the Lenders fund its risk             participation in the relevant Swing Line Loan and each Lender’s payment to the             Administrative  Agent  for  the  account  of  the  Swing  Line  Lender  pursuant  to             Section 2.04(c)(i) shall be deemed payment in respect of such participation.                    (iii) If any Lender fails to make available to the Administrative Agent             for the account of the Swing Line Lender any amount required to be paid by such             Lender  pursuant  to  the  foregoing  provisions  of  this Section 2.04(c) by  the  time             specified in Section 2.04(c)(i), the Swing Line Lender shall be entitled to recover             from  such  Lender  (acting  through  the  Administrative  Agent),  on  demand,  such             amount with interest thereon for the period from the date such payment is required                                       47                                        13227198v7 27112.00011                

 

                           to  the  date on  which  such  payment  is  immediately  available  to  the  Swing  Line             Lender at a rate per annum equal to the greater of the Federal Funds Rate and a rate             determined by the Swing Line Lender in accordance with banking industry rules on             interbank compensation.  A certificate of the Swing Line Lender submitted to any             Lender  (through  the  Administrative  Agent)  with  respect  to  any  amounts  owing             under this clause (iii) shall be conclusive absent manifest error.                    (iv)  Each Lender’s obligation to make Revolving Loans or to purchase             and fund risk participations in Swing Line Loans pursuant to this Section 2.04(c)             shall be absolute and unconditional and shall not be affected by any circumstance,             including (A) any setoff, counterclaim, recoupment, defense or other right which             such Lender may have against the Swing Line Lender, the Borrower or any other             Person for any reason whatsoever, (B) the occurrence or continuance of a Default,             or (C) any other occurrence, event or condition, whether or not similar to any of the             foregoing; provided, however, that  each Lender’s obligation to  make Revolving             Loans  pursuant  to  this Section 2.04(c) is  subject  to  the  conditions  set  forth  in             Section 4.02.  No  such  funding  of  risk  participations  shall  relieve  or  otherwise             impair the obligation of any Borrower to repay Swing Line Loans, together with             interest as provided herein.              (d)   Repayment of Participations.                    (i)   At  any  time  after  any  Lender  has  purchased  and funded  a  risk             participation in a Swing Line Loan, if the Swing Line Lender receives any payment             on account of such Swing Line Loan, the Swing Line Lender will distribute to such             Lender its Applicable Percentage of such payment (appropriately adjusted, in the             case of interest payments, to reflect the period of time during which such Lender’s             risk participation was funded) in the same funds as those received by the Swing             Line Lender.                    (ii)  If any payment received  by the Swing Line  Lender  in respect of             principal or interest on any Swing Line Loan is required to be returned by the Swing             Line Lender under any of the circumstances described in Section 10.05 (including             pursuant to any settlement entered into by the Swing Line Lender in its discretion),             each Lender shall pay to the Swing Line Lender its Applicable Percentage thereof             on demand of the Administrative Agent, plus interest thereon from the date of such             demand to the date such amount is returned, at a rate per annum equal to the Federal             Funds Rate.  The Administrative Agent will make such demand upon the request             of the Swing Line Lender.  The obligations of the Lenders under this clause shall             survive  the  payment  in  full  of  the  Obligations  and  the  termination  of  this             Agreement.              (e)   Interest for Account of Swing Line Lender.  The Swing Line Lender shall       be responsible for invoicing the Borrower for interest on the Swing Line Loans.  Until each       Lender  funds  its  Base Rate  Loan  or  risk  participation  pursuant  to  this Section 2.04 to       refinance such Lender’s Applicable Percentage of any Swing Line Loan, interest in respect       of such Applicable Percentage shall be solely for the account of the Swing Line Lender.                                        48                                        13227198v7 27112.00011                

 

                           (f)   Payments Directly to Swing  Line Lender.  The Borrower shall  make all       payments of principal and interest in respect of the Swing Line Loans directly to the Swing       Line Lender.              (g)   Defaulting Lenders.  Notwithstanding anything to the contrary contained in       this Section 2.04, the Swing Line Lender shall not be obligated to make any Swing Line       Loan at a time when (i) any other Lender is a Defaulting Lender and (ii) the Swing Line       Lender has (or after giving effect to the making of such Swing Line Loan would have)       Fronting Exposure (after giving effect to Section 2.15(c)), unless the Swing Line Lender       has  entered  into  arrangements  (which  may  include  Cash  Collateralization)  with  the       Borrower or such Defaulting Lender which are satisfactory to the Swing Line Lender to       eliminate  the  Swing  Line  Lender’s  Fronting  Exposure  (after  giving  effect  to       Section 2.15(c)) with respect to any such Defaulting Lender.        2.05  Prepayments.              (a)   The Borrower may, upon notice to the Administrative Agent, at any time or       from time to time voluntarily prepay Revolving Loans in whole or in part without premium       or penalty; provided that (i) such notice must be received by the Administrative Agent not       later  than  11:00 a.m.  (A) three  (3)  Business  Days  prior  to  any  date  of  prepayment  of       Eurodollar Rate Loans and (B) on the date of prepayment of Base Rate Loans; (ii) any       prepayment of Eurodollar Rate Loans shall be in a principal amount of $2,000,000 or a       whole  multiple of $1,000,000 in excess thereof; and (iii) any prepayment of Base Rate       Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess       thereof or, in each case, if less, the entire principal amount thereof then outstanding.  Each       such notice shall specify the date and amount of such prepayment and the Type(s) of Loans       to be prepaid.  The Administrative Agent will promptly notify each Lender of its receipt of       each  such  notice,  and  of  the  amount  of  such  Lender’s  Applicable  Percentage  of  such       prepayment.   If  such  notice  is  given  by  the  Borrower,  the  Borrower  shall  make  such       prepayment and the payment amount specified in such notice shall be due and payable on       the  date  specified  therein.   Any  prepayment  of  a  Eurodollar  Rate  Loan  shall  be       accompanied by all accrued interest on the amount prepaid, together with any additional       amounts required pursuant to Section 3.05.  Each such prepayment shall be applied to the       Revolving  Loans  of  the  Lenders  in  accordance  with  their  respective  Applicable       Percentages.              (b)   The Borrower may, upon notice to the Swing Line Lender (with a copy to       the Administrative Agent), at any time or from time to time, voluntarily prepay Swing Line       Loans in whole or in part without premium or penalty; provided that (i) such notice must       be  received  by  the  Swing  Line  Lender  and  the  Administrative  Agent  not  later  than       1:00 p.m.  on  the  date  of  the  prepayment,  and  (ii) any  such  prepayment  shall  be  in  a       minimum  principal  amount  of  $250,000  or  in  such  lesser  principal  amount  as  may  be       outstanding.  Each such notice shall specify the date and amount of such prepayment.  If       such notice is given by the Borrower, the Borrower shall make such prepayment and the       payment amount specified in such notice shall be due and payable on the date specified       therein.                                        49                                        13227198v7 27112.00011                

 

               (c)   If for any reason the Total Outstandings at any time exceed the Aggregate        Commitments then in effect, the Borrower shall immediately prepay Loans and/or Cash        Collateralize the L/C Obligations in an aggregate amount equal to such excess; provided,        however, that the Borrower shall not be required to Cash Collateralize the L/C Obligations        pursuant to this Section 2.05(c) unless after the prepayment in full of the Loans the Total        Outstandings exceed the Aggregate Commitments then in effect.         2.06  Termination or Reduction of Commitments.  The Borrower may, upon notice to  the  Administrative  Agent,  terminate  the  Aggregate Commitments,  or  from  time  to  time  permanently  reduce  the  Aggregate Commitments;  provided  that  (i) any  such  notice  shall  be  received by the Administrative Agent not later than 11:00 a.m. five (5) Business Days prior to the  date of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of  $10,000,000 or any whole multiple of $1,000,000 in excess thereof, (iii) the Borrower shall not  terminate  or  reduce  the  Aggregate Commitments  if,  after  giving  effect  thereto  and  to  any  concurrent  prepayments  hereunder,  the Total  Outstandings  would  exceed  the  Aggregate  Commitments, and (iv) if, after giving effect to any reduction of the Aggregate Commitments, the  Letter  of  Credit  Sublimit  or  the  Swing  Line  Sublimit  exceeds  the  amount  of  the  Aggregate  Commitments, such sublimit shall be automatically reduced by the amount of such excess.  The  Administrative  Agent  will  promptly  notify  the  Lenders  of  any  such  notice  of  termination  or  reduction of the Aggregate Commitments.  Any reduction of the Aggregate Commitments shall be  applied to the Commitment of each Lender according to its Applicable Percentage of the Facility.   All fees accrued until the effective date of any termination of the Aggregate Commitments shall  be paid on the effective date of such termination.         2.07  Repayment of Loans.               (a)   The Borrower shall repay to the Lenders on the Maturity Date the aggregate        principal amount of Revolving Loans outstanding on such date.               (b)   The Borrower shall repay each Swing Line Loan on the earlier to occur of        (i) the date seven (7) days after such Loan is made and (ii) the Maturity Date.         2.08  Interest.               (a)   Subject to the provisions of subsection (b) below, (i) each Eurodollar Rate        Loan shall bear interest on the outstanding principal amount thereof for each Interest Period        at a rate per annum equal to the lesser of (x) the Highest Lawful Rate and (y) the Eurodollar        Rate for such Interest Period plus the Applicable Rate; (ii) each Base Rate Loan shall bear        interest on the outstanding principal amount thereof from the applicable borrowing date at        a rate per annum equal to the lesser of (x) the Highest Lawful Rate and (y) the Base Rate        plus the  Applicable  Rate;  and  (iii) each  Swing  Line  Loan  shall  bear  interest  on  the        outstanding  principal  amount  thereof  from  the  applicable  borrowing  date  at  a  rate  per        annum equal to the lesser of (x) the Highest Lawful Rate and (y) the Base Rate plus the        Applicable Rate.               (b)   (i)   If  any  amount  of  principal  of  any  Loan  is  not  paid  when  due,        whether at stated maturity, by acceleration or otherwise, such amount shall thereafter bear        interest at a fluctuating interest rate per annum at all times equal to the lesser of (x) the                                        50                                         13227198v7 27112.00011   

 

                     Default Rate and (y) the Highest Lawful Rate, to the fullest extent permitted by Applicable       Law.                    (ii)  If  any  amount  (other than  principal  of  any  Loan)  payable  by  the             Borrower  under  any  Loan  Document  is  not  paid  when  due,  whether  at  stated             maturity,  by  acceleration  or  otherwise,  then  upon  the  request  of  the  Required             Lenders, such amount shall thereafter bear interest at a fluctuating interest rate per             annum at all times equal to the lesser of (x) the Default Rate and (y) the Highest             Lawful Rate, to the fullest extent permitted by Applicable Law.                    (iii) Upon  the  request  of  the  Required  Lenders,  while  any  Event  of             Default  exists,  the  Borrower  shall  pay  interest  on  the  principal  amount  of  all             outstanding Obligations hereunder at  a fluctuating interest rate per annum at all             times equal to the lesser of (x) the Default Rate and (y) the Highest Lawful Rate, to             the fullest extent permitted by Applicable Law.                    (iv)  Accrued and unpaid interest on past due amounts (including interest             on past due interest) shall be due and payable upon demand.              (c)   Interest on each Loan shall be due and payable in arrears on each Interest       Payment  Date  applicable  thereto  and  at  such  other  times  as  may  be  specified  herein.        Interest hereunder shall be due and payable in accordance with the terms hereof before and       after  judgment,  and  before  and  after  the  commencement  of  any  proceeding under  any       Debtor Relief Law.        2.09  Fees.  In addition to certain fees described in subsections (i) and (j) of Section 2.03:              (a)   Facility Fee.  The Borrower shall pay to the Administrative Agent for the       account of each Lender in accordance with its Applicable Percentage under the Facility, a       facility  fee (“Facility  Fee”) equal to the Applicable Rate (calculated per day) times the       actual daily amount of the Aggregate Commitments (or, if the Aggregate Commitments       have terminated, on the Outstanding Amount of all Revolving Loans, Swing Line Loans       and L/C Obligations), regardless of usage.  The Facility Fee shall accrue at all times during       the Availability Period (and thereafter so long as any Revolving Loans, Swing Line Loans       or L/C Obligations remain outstanding), including at any time during which one or more       of the conditions in Article IV is not met, and shall be due and payable quarterly in arrears       on the last Business Day of each March, June, September and December, commencing with       the  first  such  date to  occur  after the  Effective  Date,  and on the  Maturity  Date  (and,  if       applicable, thereafter on demand).  The Facility Fee shall be calculated quarterly in arrears,       and if there is any change in the Applicable Rate during any quarter, the actual daily amount       shall be computed and multiplied by the Applicable Rate separately for each period during       such quarter that such Applicable Rate was in effect.              (b)   Other Fees.                    (i)   The  Borrower  shall  pay  to  the  Joint  Arrangers  and  the             Administrative Agent for their own respective accounts fees in the amounts and at                                        51                                        13227198v7 27112.00011                

 

               the times specified in the Fee Letters.  Such fees shall be fully earned when paid              and shall not be refundable for any reason whatsoever.                     (ii)  The Borrower shall pay to the Lenders such fees as shall have been              separately agreed upon in writing in the amounts and at the times so specified.  Such              fees shall  be  fully earned when paid and shall  not  be refundable  for any reason              whatsoever.         2.10  Computation of Interest and Fees.  All computations of interest for Base Rate  Loans (including Base Rate Loans determined by reference to the Eurodollar Rate) shall be made  on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed.  All other  computations of fees and interest shall be made on the basis of a 360-day year and actual days  elapsed (which results in more fees or interest, as applicable, being paid than if computed on the  basis of a 365-day year).  Interest shall accrue on each Loan for the day on which the Loan is made,  and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such  portion is paid, provided that any Loan that is repaid on the same day on which it is made shall,  subject to Section 2.12(a), bear interest for one day.  Each determination by the Administrative  Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent  manifest error.         2.11  Evidence of Debt.               (a)   The Credit Extensions made by each Lender shall be evidenced by one or        more accounts or records maintained by such Lender and by the Administrative Agent in        the ordinary course of business.  The accounts or records maintained by the Administrative        Agent and each Lender shall  be conclusive absent  manifest error of the amount of the        Credit Extensions made by the Lenders to the Loan Parties and the interest and payments        thereon.  Any  failure to  so record or any error in doing so shall  not, however, limit or        otherwise affect the obligation of the Loan Parties hereunder to pay any amount owing        with respect to the Obligations.  In the event of any conflict between the accounts and        records  maintained  by  any  Lender  and  the  accounts  and  records  of  the  Administrative        Agent in respect of such matters, the accounts and records of the Administrative Agent        shall  control  in  the  absence  of  manifest error.   Upon  the  request  of  any  Lender  made        through the Administrative Agent, the Borrower shall execute and deliver to such Lender        (through the Administrative Agent) a Note in the applicable form, which shall evidence        such Lender’s Loans in addition to such accounts or records.  Each Lender may attach        schedules  to  its  Note  and  endorse  thereon  the  date,  Type  (if  applicable),  amount  and        maturity of its Loans and payments with respect thereto.               (b)   In addition to the accounts and records referred to in subsection (a), each        Lender and the Administrative Agent shall maintain in accordance with its usual practice        accounts or records evidencing the purchases and sales by such Lender of participations in        Letters of Credit and Swing Line Loans.  In the event of any conflict between the accounts        and records maintained by the Administrative Agent and the accounts and records of any        Lender in respect of such matters, the accounts and records of the Administrative Agent        shall control in the absence of manifest error.                                         52                                         13227198v7 27112.00011   

 

                     2.12  Payments Generally; Administrative Agent’s Clawback.              (a)   General.  All payments to be made by the Loan Parties shall be made free       and clear of and without condition or deduction for any counterclaim, defense, recoupment       or setoff.  All payments by the Loan Parties hereunder shall be made to the Administrative       Agent, for the account of the respective Lenders to which such payment is owed, at the       Administrative Agent’s Office in Dollars and in immediately available funds not later than       2:00 p.m. on the date specified herein.  The Administrative Agent will promptly distribute       to each Lender its Applicable Percentage (or other applicable share as provided herein) of       such payment with respect to principal and interest on Loans in like funds as received by       wire  transfer  to  such  Lender’s  Lending  Office.   All  payments  received  by  the       Administrative Agent after 2:00 p.m., shall be deemed received on the next succeeding       Business Day and any applicable interest or fee shall continue to accrue.  If any payment       to be made by the Borrower shall come due on a day other than a Business Day, payment       shall be made on the next following Business Day, and such extension of time shall be       reflected in computing interest or fees, as the case may be.              (b)   Funding  by  Lenders;  Presumption  by  Administrative  Agent.   Unless  the       Administrative Agent shall have received notice from a Lender prior to the proposed date       of any Revolving Borrowing that such Lender will not make available to the Administrative       Agent such Lender’s share of such Revolving Borrowing, the Administrative Agent may       assume that such Lender has made such share available on such date in accordance with       Section 2.02 and may, in reliance upon such assumption, make available to the Borrower       a corresponding amount.  In such event, if a Lender has not in fact made its share of the       applicable Revolving Borrowing available to the Administrative Agent, then the applicable       Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on       demand such corresponding amount in immediately available funds with interest thereon,       for each day from and including the date such amount is made available to the Borrower       to but excluding the date of payment to the Administrative Agent, at (A) in the case of a       payment to be  made  by such  Lender, the greater of the Federal  Funds  Rate and a rate       determined  by  the  Administrative  Agent  in  accordance  with  banking  industry  rules  on       interbank compensation, plus any administrative, processing or similar fees customarily       charged by the Administrative Agent in connection with the foregoing and (B) in the case       of a payment to be made by the Borrower, the interest rate applicable to Base Rate Loans.        If the Borrower and such Lender shall pay such interest to the Administrative Agent for       the same or an overlapping period, the Administrative Agent shall promptly remit to the       Borrower the amount of such interest paid by the Borrower for such period.  If such Lender       pays its share of the applicable Revolving Borrowing to the Administrative Agent, then the       amount so paid shall constitute such Lender’s Revolving Loan included in such Revolving       Borrowing.  Any payment by the Borrower shall be without prejudice to any claim the       Borrower may have against a Lender that shall have failed to make such payment to the       Administrative Agent.              (c)   Payments by Loan Parties; Presumptions by Administrative Agent.  Unless       the Administrative Agent shall have received notice from any Loan Party prior to the date       on which any payment is due to the Administrative Agent for the account of the Lenders,       a Fronting Bank or an L/C Issuer that the Loan Parties will not make such payment, the                                        53                                        13227198v7 27112.00011                

 

         Administrative Agent may assume that the Loan Parties have made such payment on such        date in accordance herewith and may, in reliance upon such assumption, distribute to the        Lenders, such Fronting Bank or such L/C Issuer, as the case may be, the amount due.  In        such  event,  if  the  Loan  Parties  have  not  in  fact  made  such  payment,  then  each  of  the        Lenders, Fronting Banks and L/C Issuers, as the case may be, severally agrees to repay to        the Administrative Agent forthwith on demand the amount so distributed to such Person,        in immediately available funds with interest thereon, for each day from and including the        date  such  amount  is  distributed  to  it  to  but  excluding  the  date  of  payment  to  the        Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by        the  Administrative  Agent  in  accordance  with  banking  industry  rules  on  interbank        compensation.         A notice of the Administrative Agent to any Lender or a Loan Party with respect to any  amounts owing under subsections (b) and (c) shall be conclusive, absent manifest error.               (d)   Failure to Satisfy Conditions Precedent.  If any Lender makes available to        the Administrative Agent funds for any Loan to be made by such Lender as provided in the        foregoing  provisions  of  this Article II,  and  such  funds  are  not  made  available  to  the        Borrower  by  the  Administrative  Agent  because  the  conditions  to the  applicable  Credit        Extension set forth in Article IV are not satisfied or waived in accordance with the terms        hereof, the Administrative Agent shall return such funds (in like funds as received from        such Lender) to such Lender, without interest.               (e)   Obligations of Lenders Several.  The obligations of the Lenders hereunder        to  make  Revolving  Loans,  to  fund  Several  Letters  of  Credit,  to  purchase  and  fund        participations in Fronted Letters of Credit and Swing Line Loans and to make payments        pursuant to Section 10.04(c) are several and not joint.  The failure of any Lender to make        any  Revolving  Loan,  to  fund  any  Several  Letter  of  Credit,  to  purchase  and  fund  such        participations  or  to  make  any  payment  under Section 10.04(c) on  any  date  required        hereunder shall not relieve any other Lender of its corresponding obligation to do so on        such date, and no Lender shall be responsible for the failure of any other Lender to so make        its  Revolving  Loan,  to  purchase  its  participation  or  to  make  its  payment  under        Section 10.04(c).               (f)   Funding Source.  Nothing herein shall be deemed to obligate any Lender to        obtain  the  funds  for  any  Loan  in  any  particular  place  or  manner  or  to  constitute  a        representation by any Lender that it has obtained or will obtain the funds for any Loan in        any particular place or manner.         2.13  Sharing of Payments by Lenders.  If any Lender shall, by exercising any right of  setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on  any of the Revolving Loans made by it, or the participations in L/C Obligations or in Swing Line  Loans held by it resulting in such Lender’s receiving payment of a proportion of the aggregate  amount of such Revolving Loans or participations and accrued interest thereon greater than its pro  rata share  thereof  as  provided  herein,  then  the  Lender  receiving  such  greater  proportion  shall  (a) notify  the  Administrative  Agent  of  such  fact,  and  (b) purchase  (for  cash  at  face  value)  participations in the Revolving Loans and subparticipations in L/C Obligations and Swing Line  Loans of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit                                        54                                         13227198v7 27112.00011   

 

   of all  such payments shall  be  shared by the  Lenders ratably  in accordance with the aggregate  amount of principal of and accrued interest on their respective Revolving Loans and other amounts  owing them, provided that:                     (i)   if any such participations or subparticipations are purchased and all              or any portion of the payment giving rise thereto is recovered, such participations              or subparticipations shall be rescinded and the purchase price restored to the extent              of such recovery, without interest; and                     (ii)  the  provisions  of  this  Section shall  not  be  construed  to  apply  to              (x) any  payment  made  by  or  on  behalf  of  the  Loan  Parties  pursuant  to  and  in              accordance with the express terms of this Agreement (including the application of              funds arising from the existence of a Defaulting Lender), (y) the application of Cash              Collateral provided for in Section 2.15, (z) any payment obtained by a Lender as              consideration for the assignment of or sale of a participation in any of its Revolving              Loans or subparticipations in L/C Obligations or Swing Line Loans to any assignee              or participant, other than an assignment to the Borrower or any Subsidiary thereof              (as to which the provisions of this Section shall apply).         Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do  so  under  Applicable Law, that  any  Lender  acquiring  a  participation  pursuant to  the  foregoing  arrangements may exercise against such Loan Party rights of setoff and counterclaim with respect  to such participation as fully as if such Lender were a direct creditor of such Loan Party in the  amount of such participation.         2.14  Increase in Commitments.               (a)   Request for Increase.  Provided there exists no Default or Event of Default,        upon notice to the Administrative Agent, the Borrower may from time to time request an        increase in the Aggregate Commitments by an amount (for all such requests) not exceeding        $250,000,000; provided that (i) any such request for an increase shall be in a minimum        amount of $25,000,000 and (ii) the Borrower may make a maximum of two such requests        in any calendar year.               (b)   Proposed Lenders.  Any proposed increase in the Aggregate Commitment        may be  requested  from  existing  Lenders,  new  prospective  lenders  (which  are  Persons        which would be permitted to be assignees pursuant to Section 10.06 and are approved by        the Administrative Agent, the L/C Administrator, the Fronting Banks and the Swing Line        Lender, which approvals shall not be unreasonably withheld), or a combination thereof, as        selected by, and with such allocations of committed amounts as may be determined by, the        lead arranger(s) thereof and/or the Borrower, provided that any incremental Commitment        provided by a Person not already a Lender shall be in a principal amount of $5,000,000 or        an integral multiple of $500,000 in excess thereof. Any Lender approached to provide all        or a portion of the incremental Commitment may elect or decline, in its sole discretion, to        provide an incremental Commitment.               (c)   Notification  by  Administrative  Agent;  Additional  Lenders.  If  the        Aggregate Commitments  are  to  be  increased  in  accordance  with  this  Section,  the                                        55                                         13227198v7 27112.00011   

 

                     Administrative Agent and the Borrower shall determine the effective date (the “Increase       Effective Date”) and the final allocation of such increase.  The Administrative Agent shall       promptly notify the Borrower and the Lenders of the final allocation of such increase and       the Increase Effective Date.  As of the Increase Effective Date, the Credit Agreement shall       be amended to reflect the new or incremental Commitments of the Lenders or other Persons       providing  such  incremental Commitments.   Such  amendment  shall  be  executed  and       delivered by the Administrative Agent, the Loan Parties and each Lender and other Person       providing such incremental Commitments without the consent of any other party and shall       be  binding  on  all  parties  hereto.   Such  amendment  shall  be  in  form  and  substance       reasonably satisfactory to the Administrative Agent.              (d)   Conditions to Effectiveness of Increase.  As a condition precedent to such       increase, the Borrower shall deliver to the Administrative Agent a certificate of each Loan       Party dated as of the Increase Effective Date (in sufficient copies for each Lender) signed       by a Responsible Officer of such Loan Party (i) certifying and attaching the resolutions       adopted by such Loan Party approving or consenting to such increase, and (ii) in the case       of the Borrower, certifying that, before and after giving effect to such increase, (A) the       representations and warranties contained in Article V and the other Loan Documents are       true and correct on and as of the Increase Effective Date, except to the extent that such       representations and warranties specifically refer to an earlier date, in which case they are       true and correct as of such earlier date, and except that for purposes of this Section 2.14,       the representations and warranties contained in subsections (a) and (b) of Section 5.05 shall       be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b),       respectively, of Section 6.01, and (B) no Default exists.  Any increase of the Aggregate       Commitment pursuant to this Section shall also be subject to receipt by the Administrative       Agent  from  the  Loan  Parties  of  such  supplemental  certificates  and  other  customary       documents as the Administrative Agent may reasonably request.              (e)   Reallocation Upon Increase.  On the Increase Effective Date the outstanding       Revolving Loans and Applicable Percentages of Swing Line Loans and L/C Obligations       will be reallocated by the Administrative Agent among the Lenders (including any new       Lenders) in accordance with their revised Applicable Percentages under the Facility (and       the  Lenders  (including  any  new  Lenders)  agree  to  make  all  payments  and  adjustments       necessary to effect such reallocation and the Borrower shall pay any and all costs required       pursuant to Section 3.05 in connection with such reallocation as if such reallocation were       a repayment).              (f)   Revised Percentages and Letter of Credit Amendments.  The Administrative       Agent  shall  promptly  notify  the  Lenders  of  the  new  Applicable  Percentages  under  the       Facility after giving effect to each increase in the Aggregate Commitments pursuant hereto.        Promptly  after  the  date  of  each  such  increase,  the  L/C Administrator  shall  amend  the       outstanding  Several  Letters  of  Credit  to  reflect  the  new “Commitment  Share” of  each       Lender (including any new Lenders) and prior to the date a Several Letter of Credit has       been amended to give effect to such new “Commitment Share”, each new Lender shall be       deemed to irrevocably and unconditionally purchase from each Lender who has issued such       Several Letter of Credit, a risk participation in such Several Letter of Credit in an amount                                        56                                        13227198v7 27112.00011                

 

         such that after giving effect to such purchase, each Lender (including any new Lender) has        its Applicable Percentage of such Several Letter of Credit.               (g)   Conflicting  Provisions.   This  Section shall  supersede  any  provisions  in        Sections 2.13 or 10.01 to the contrary.         2.15  Defaulting Lenders.         Notwithstanding  anything  to  the  contrary  contained  in  this  Agreement,  if  any  Lender  becomes a  Defaulting  Lender,  then,  until  such  time  as  such  Lender  is  no  longer  a  Defaulting  Lender, to the extent permitted by Applicable Law:               (a)   Waivers and Amendments.  Such Defaulting Lender’s right to approve or        disapprove any  amendment, waiver or consent with respect to this  Agreement shall  be        restricted as set forth in the definition of “Required Lenders” and in Section 10.01.               (b)   Reallocation of Payments.  Any payment of principal, interest, fees or other        amounts received by the Administrative Agent for the account of such Defaulting Lender        (whether voluntary or mandatory, at maturity, pursuant to ARTICLE VIII or otherwise,        and including any amounts made available to the Administrative Agent for the account of        such Defaulting Lender pursuant to Section 10.04), shall be applied at such time or times        as may be determined by the Administrative Agent as follows:  first, to the payment on a        pro  rata  basis  of  any  amounts  owing  by  such  Defaulting  Lender  to the  Administrative        Agent or L/C Administrator hereunder; second, to the payment on a pro rata basis of any        amounts owing by such Defaulting Lender (including amounts owed in its capacity as a        Participating Bank) to the Fronting Banks and/or the Swing Line Lender hereunder; third,        if so determined by the Administrative Agent or requested by a Fronting Bank and/or the        Swing Line Lender, to be held as Cash Collateral for future funding obligations of such        Defaulting Lender of any participation in any Swing Line Loan or Fronted Letter of Credit        or Several Letter of Credit as to which it is a Participating Bank; fourth, as the Borrower        may  request  (so  long  as  no  Default  exists),  to  the  funding  of  any  Loan or  Cash        Collateralization of any Several 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; fifth,  if  so  determined  by  the  Administrative  Agent  and  the        Borrower, to  be held  in a non-interest  bearing deposit account  and released  in order to        satisfy obligations of such Defaulting Lender to fund Loans or Several Letters of Credit        under this Agreement; sixth, to the payment of any amounts owing to the Administrative        Agent,  the  Lenders,  the  Fronting  Banks  or  the  Swing  Line  Lender  as  a  result  of  any        judgment of a court of competent jurisdiction obtained by the Administrative Agent, any        Lender, any Fronting Bank or the Swing Line Lender against such Defaulting Lender as a        result of such Defaulting Lender’s breach of its obligations under this Agreement; seventh,        so long as no Default exists, to the payment of any amounts owing to the Borrower as a        result  of  any  judgment  of  a  court  of  competent  jurisdiction  obtained  by  the  Borrower        against  such  Defaulting  Lender  as  a  result  of  such  Defaulting  Lender’s  breach  of  its        obligations under this Agreement; and eighth, to such Defaulting Lender or as otherwise        directed by a court of competent jurisdiction; provided that if (i) such payment is a payment        of the principal amount of any Revolving Loans or funded participations in Swing Line        Loans or Letters of Credit in respect of which such Defaulting Lender has not fully funded                                        57                                         13227198v7 27112.00011   

 

                     its appropriate share and (ii) such Revolving Loans or funded participations in Swing Line       Loans or Letters of Credit were made at a time when the conditions set forth in Section 4.01       or 4.02, as applicable, were satisfied or waived, such payment shall be applied solely to       pay the Revolving Loans of, and funded participations in Swing Line Loans or Letters of       Credit owed to, all non-Defaulting Lenders on a pro rata basis prior to being applied to the       payment  of  any  Revolving  Loans  of,  or  funded  participations  in  Swing  Line  Loans  or       Letters of Credit owed to, such Defaulting Lender.  Any payments, prepayments or other       amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts       owed by a Defaulting Lender or to post Cash Collateral pursuant to this Section 2.15(b)       shall  be  deemed  paid  to  and  redirected  by  such  Defaulting  Lender,  and  each  Lender       irrevocably consents thereto.              (c)   Reallocation  of  Applicable  Percentages  to  Reduce  Fronting  Exposure.        During any period in which there is a Defaulting Lender, for purposes of computing the       amount  of  the  obligation  of  each  non-Defaulting  Lender  to  acquire,  refinance  or  fund       participations in Swing Line Loans or Fronted Letters of Credit pursuant to Section 2.04       and Section 2.03(c),  respectively,  the  “Applicable  Percentage”  of  each  non-Defaulting       Lender shall be computed without giving effect to the Commitment of such Defaulting       Lender; provided that (i) each such reallocation shall be given effect only if, at the date the       applicable Lender becomes a Defaulting Lender the conditions set forth in Section 4.02(b)       (as if a new Letter of Credit were being requested) and Section 4.02(c) are satisfied at the       time  of  such  reallocation  (and,  unless  the  Borrower  shall  have  otherwise  notified  the       Administrative Agent at such time, the Borrower shall be deemed to have represented and       warranted that such conditions are satisfied at such time), and (ii) the aggregate obligation       of each non-Defaulting Lender to issue, acquire, refinance or fund participations in Fronted       Letters of Credit and Swing Line Loans shall not exceed the positive difference, if any, of       (A) the Commitment of that non-Defaulting Lender minus (B) the aggregate outstanding       principal amount of the Loans of that Lender.  Solely to the extent that a Defaulting Lender       is  a  Participating  Bank  with  respect  to any  Several  Letter  of  Credit,  the  foregoing       provisions with respect to the obligations of non-Defaulting Lenders to acquire or fund       participations in Fronted Letters of Credit from the Fronting Bank for such Fronted Letter       of Credit shall be applicable mutatis mutandis to the determination of their obligations to       acquire or fund participations in such Several Letter of Credit from the Lender which acted       as Fronting Bank for such Defaulting Lender with respect to such Several Letter of Credit       (i.e., subject to the proviso above, the non-Defaulting Lenders shall be obligated to acquire       or  fund  such  participations  from  the  applicable  Fronting  Bank  to  the  extent  of  their       Applicable Percentages (as adjusted hereby) of the obligations of such Defaulting Lender       to the applicable Fronting Bank in respect of such Several Letter of Credit).              (d)   Cash Collateral for Letters of Credit.  Promptly on demand by the Fronting       Banks or the Administrative Agent from time to time, the Borrower shall deliver to the       Administrative  Agent  Cash  Collateral  in  an  amount  sufficient  to  cover  all  Fronting       Exposure with respect to the Fronting Banks (after giving effect to Section 2.15(c)) on       terms reasonably satisfactory to the Administrative Agent and the Fronting Banks.  Any       such  Cash  Collateral  shall  be  deposited  in  a  separate  account  with  the  Administrative       Agent,  subject  to  the  exclusive  dominion  and  control  of  the  Administrative  Agent, as       collateral (solely for the benefit of the Fronting Banks) for the payment and performance                                        58                                        13227198v7 27112.00011                

 

                     of  each  Defaulting  Lender’s  Applicable  Percentage  of  outstanding  L/C  Obligations.        Moneys in such account shall be applied by the Administrative Agent to reimburse the       Fronting Banks immediately for each Defaulting Lender’s Applicable Percentage of any       drawing  under  any  Letter  of  Credit  which  has  not  otherwise  been  reimbursed  by  the       Borrower (including, without limitation, through a Loan) or such Defaulting Lender.              (e)   Prepayment of Swing Line Loans.  Promptly on demand by the Swing Line       Lender or the Administrative Agent from time to time, the Borrower shall prepay Swing       Line Loans in an amount of all Fronting Exposure with respect to the Swing Line Lender       for  which  Cash  Collateralization  or  other  credit  support  acceptable  to  the  Swing  Line       Lender shall not have been provided (after giving effect to Section 2.15(c)).              (f)   Certain  Fees.  For any period during which such Lender  is a Defaulting       Lender, such Defaulting Lender (i) shall not be entitled to receive any Facility Fee pursuant       to Section 2.09(a) in  respect  of  any  unutilized  portion  of  the Commitment of  such       Defaulting  Lender  (and  the  Borrower  shall  not  be  required  to  pay  any  such  fee  that       otherwise would have been required to have been paid to such Defaulting Lender), and (ii)       shall not be entitled to receive any Letter of Credit commissions pursuant to Section 2.03(i)       otherwise payable to the account of a Defaulting Lender with respect to any Letter of Credit       as to which such Defaulting Lender has not provided Cash Collateral or other credit support       arrangements satisfactory to the Fronting Banks pursuant to Section 2.15(d), but instead,       the Borrower shall pay to the non-Defaulting Lenders the amount of such Letter of Credit       commissions  in accordance with the upward adjustments  in their respective  Applicable       Percentages allocable to such Letter of Credit pursuant to Section 2.15(c), with the balance       of such fee, if any, payable to the applicable Fronting Bank for its own account.              (g)   Defaulting Lender Cure.  If the Borrower, the Administrative Agent, the       Swing Line Lender and the Fronting Banks agree in writing in their sole discretion that a       Defaulting  Lender  should  no  longer  be  deemed  to  be  a  Defaulting  Lender,  the       Administrative Agent will so notify the parties hereto, whereupon as of the date specified       in  such  notice  and  subject  to  any  conditions  set  forth  therein  (which  may  include       arrangements  with  respect  to  any  Cash  Collateral),  that  Lender  will, to  the  extent       applicable, purchase at par that portion of outstanding Loans of the other Lenders or take       such other actions as the Administrative Agent may determine to be necessary to cause the       Loans and funded and unfunded participations in Letters of Credit and Swing Line Loans       to  be  held  on  a pro rata basis  by  the  Lenders  in  accordance  with  their  Applicable       Percentages (without giving effect to Section 2.15(c)), whereupon such Lender will cease       to be a Defaulting Lender; provided, that no adjustments will be made retroactively with       respect to fees accrued or payments  made  by or on behalf of the Borrower while such       Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise       expressly agreed by the affected parties, no change hereunder from Defaulting Lender to       Lender will constitute a waiver or release of any claim of any party hereunder arising from       such Lender’s having been a Defaulting Lender.        2.16  Extension of Maturity Date.              (a)   Requests for Extension. The Borrower may, by notice to the Administrative       Agent (who shall promptly notify the Lenders) not earlier than 60 days and not later than                                       59                                        13227198v7 27112.00011                

 

                     35 days prior to the first anniversary of the Effective Date and the second anniversary of       the Effective  Date,  (each  an “Extension  Date”),  request  that  each  Lender  extend  such       Lender’s Maturity Date for an additional one-year period from the Maturity Date then in       effect hereunder (the “Existing Termination Date”).              (b)   Lender Elections to Extend. Each Lender, acting in its sole and individual       discretion, shall, by notice to the Administrative Agent given not later than the date that is       ten  (10)  Business  Days  after receipt  of  notice  from  the  Administrative  Agent  of  the       Borrower’s request for an extension (the “Notice Date”), advise the Administrative Agent       whether or not such Lender agrees to such extension (each such Lender that determines to       so extend its Maturity Date, being an “Extending Lender” and each Lender that determines       not to so extend its Maturity Date, being a “Non-Extending Lender”). In the event that a       Lender that does not so advise the Administrative Agent on or before the Notice Date such       Lender shall be deemed to be a Non-Extending Lender. The election of any Lender to agree       to such extension shall not obligate any other Lender to so agree.              (c)   Notification  by  Administrative  Agent.  The  Administrative  Agent  shall       notify the Borrower of each Lender’s determination under this Section no later than the       date 15 days prior to the applicable Extension Date (or, if such date is not a Business Day,       on the next preceding Business Day).              (d)   Additional Commitment Lenders.  If  (and  only  if)  the  Required  Lenders       have agreed to extend the Maturity Date then in effect hereunder, the Borrower shall have       the right at any time prior to the date 30 days prior to the existing Maturity Date applicable       to any Non-Extending  Lender to replace such Non-Extending  Lender with, and add as       “Lenders” under this Agreement, one or more Persons which would be permitted assignees       pursuant to Section 10.06 (each, an “Additional Commitment Lender”) in accordance with       the provisions contained in Section 10.06, each of which Additional Commitment Lenders       shall  have  entered  into  an  Assignment  Agreement  pursuant  to  which  such  Additional       Commitment Lender  shall,  effective  as  of  the  date  of  the  Assignment  Agreement,       undertake a Commitment (and, if any such Additional Commitment Lender is already a       Lender, its Commitment shall be in addition to such Lender’s Commitment hereunder on       such date).              (e)   Minimum Extension Requirement. If (and only  if) the Required Lenders       have agreed so to extend the Maturity Date then in effect hereunder as described in this       Section 2.16,  then,  effective  as  of  such  Extension  Date,  the Maturity  Date  of  each       Extending Lender and each Additional Commitment Lender shall be extended to the date       falling one  year after the Existing  Termination  Date (except that,  if  such  date  is  not  a       Business Day, such date shall be the next preceding Business Day) and each Additional       Commitment Lender  shall  thereupon  become  a “Lender” for  all  purposes  of  this       Agreement; provided, however, that there shall be no change in the Maturity Date of any       Non-Extending Lender that has not been replaced by an Additional Commitment Lender       (each a “Non-Replaced Lender”).              (f)   Conditions to Effectiveness of Extensions. Notwithstanding the foregoing,       the extension  of  the Maturity  Date  pursuant to this  Section  shall  not  be  effective  with       respect to any Lender unless:                                       60                                        13227198v7 27112.00011                

 

                                 (i)   no Default or Event of Default shall have occurred and be continuing             on the date of such extension and after giving effect thereto;                    (ii)  the representations and warranties contained in Article V shall be             true and correct in all material respects (or, if any such representation or warranty             is qualified by materiality or Material Adverse Effect, shall be true and correct in             all respects) on and as of the date of such extension and after giving effect thereto,             as though made on and as of such date, except to the extent any such representation             or  warranty  is  stated  to  relate  solely  to  an earlier  date,  in  which  case  such             representation or warranty shall have been true and correct in all material respects             (or, if any such representation or warranty is qualified by materiality or Material             Adverse Effect, shall have been true and correct in all respects) on and as of such             earlier date;                    (iii) since the later of the date of the financial statements most recently             (as of the Notice Date for the applicable extension) available under Section 6.01(a)             or (b) or  the  date  of  the  most  recent  (as  of  the  Notice  Date  for  the  applicable             extension) current report on Form 8-K filed by the Borrower with the Securities             and  Exchange  Commission,  no  event, circumstance  or  development  shall  have             occurred that constitutes, has had or could reasonably be expected to constitute or             to have a Material Adverse Effect;                    (iv)  the  Borrower  shall  have  delivered  to the  Administrative  Agent  a             certificate of  its  chief  financial  officer  or  treasurer  as  to  the  satisfaction  of             conditions (i)-(iii) immediately above on the date of the applicable extension; and                    (v)   on the Maturity Date of each Non-Replaced Lender, the Borrower             shall prepay any Revolving Loans outstanding on such date (and pay any additional             amounts  required  pursuant  to Section 3.05)  to  the  extent  necessary  to  repay,             nonratably, the Loans of such Non-Replaced Lenders and the Commitment of such             Non-Replaced  Lenders  shall  be  terminated.  The Applicable Percentages  of  the             remaining Lenders shall be revised as of such date.              (g)   Conflicting  Provisions. This  Section  shall  supersede  any  provisions  in       Section 2.13 or Section 10.01 to the contrary.                                   ARTICLE III                                                         TAXES, YIELD PROTECTION AND ILLEGALITY        3.01  Taxes.              (a)   Defined  Terms.   For  purposes  of  this Section 3.01,  the  term  “Lender”       includes any L/C Issuer and the term “Applicable Law” includes FATCA.              (b)   Payments Free of Taxes.  Any and all payments by or on account of any       obligation of any Loan Party under any Loan Document shall be made without deduction       or withholding for any Taxes, except as required by Applicable Law.  If any Applicable                                       61                                        13227198v7 27112.00011                

 

                     Law  (as  determined  in  the  good  faith  discretion  of  an  applicable  Withholding  Agent)       requires the deduction or withholding of any Tax from any such payment by a Withholding       Agent, then the applicable Withholding Agent shall be entitled to make such deduction or       withholding  and  shall  timely  pay  the  full  amount  deducted or  withheld  to the  relevant       Governmental  Authority  in accordance  with  Applicable  Law  and,  if  such  Tax  is  an       Indemnified Tax, then the sum payable by the applicable Loan Party shall be increased as       necessary  so  that,  after  such  deduction  or  withholding  has  been  made  (including  such       deductions and withholdings applicable to additional sums payable under this Section), the       applicable Recipient receives an amount equal to the sum it would have received had no       such deduction or withholding been made.              (c)   Payment of Other Taxes by the Loan Parties.  The Loan Parties shall timely       pay to the relevant Governmental Authority in accordance with Applicable Law, or at the       option  of  the  Administrative  Agent  timely  reimburse  it  for  the  payment  of,  any  Other       Taxes.              (d)   Indemnification  by the Loan Parties.  The Loan  Parties shall  jointly and       severally indemnify each Recipient, within ten (10) days after demand therefor, for the full       amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or       attributable to amounts payable under this Section) payable or paid by such Recipient or       required to be withheld or deducted from a payment to such Recipient and any reasonable       expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes       were correctly or legally imposed or asserted by the relevant Governmental Authority.  A       certificate as to the amount of such payment or liability delivered to the Borrower by a       Recipient (with a copy to the Administrative Agent), or by the Administrative Agent on its       own behalf or on behalf of a Recipient, shall be conclusive absent manifest error.              (e)   Indemnification by the Lenders.  Each Lender shall severally indemnify the       Administrative Agent, within ten (10) days after demand therefor, for (i) any Indemnified       Taxes attributable to such Lender (but only to the extent that any Loan Party has not already       indemnified the Administrative Agent for such Indemnified Taxes and without limiting the       obligation of the Loan Parties to do so), (ii) any Taxes attributable to such Lender’s failure       to  comply  with  the  provisions  of Section 10.06(d)  relating  to  the  maintenance  of  a       Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case,       that  are  payable  or  paid  by  the  Administrative  Agent  in  connection  with  any  Loan       Document, and any reasonable expenses arising therefrom or with respect thereto, whether       or  not  such  Taxes  were  correctly  or  legally  imposed  or  asserted  by  the  relevant       Governmental  Authority.   A  certificate  as  to  the  amount  of  such  payment  or  liability       delivered to any Lender by the Administrative Agent shall be conclusive absent manifest       error.  Each Lender hereby authorizes the Administrative Agent to set off and apply any       and all amounts at any time owing to such Lender under any Loan Document or otherwise       payable  by  the  Administrative  Agent to  the  Lender  from  any  other  source  against  any       amount due to the Administrative Agent under this paragraph (e).              (f)   Evidence of Payments.  As soon as practicable after any payment of Taxes       by any Loan Party to a Governmental Authority pursuant to this Section 3.01(f), such Loan       Party shall deliver to the Administrative Agent the original or a certified copy of a receipt       issued by such Governmental Authority evidencing such payment, a copy of the return                                       62                                        13227198v7 27112.00011                

 

                     reporting such payment or other evidence of such payment reasonably satisfactory to the       Administrative Agent.              (g)   Status of Lenders.                    (i)   Any Lender that is entitled to an exemption from or reduction of             withholding Tax with respect to payments made under any Loan Document shall             deliver  to  the  Borrower  and  the  Administrative  Agent,  at  the  time  or  times             reasonably requested by the Borrower or the Administrative Agent, such properly             completed and executed documentation reasonably requested by the Borrower or             the  Administrative  Agent  as  will  permit  such  payments  to  be  made  without             withholding  or  at  a  reduced  rate  of  withholding.   In  addition,  any  Lender,  if             reasonably requested by the Borrower or the Administrative Agent, shall deliver             such other documentation prescribed by Applicable Law or reasonably requested             by the Borrower or the Administrative Agent as will enable the Borrower or the             Administrative Agent to determine whether or not such Lender is subject to backup             withholding or information reporting requirements.  Notwithstanding anything to             the  contrary  in  the  preceding  two  sentences,  the  completion,  execution  and             submission  of  such  documentation  (other  than  such  documentation  set  forth  in             Section 3.01(g)(ii)(A), (ii)(B) and (ii)(D) below)  shall  not  be  required  if  in  the             Lender’s  reasonable  judgment  such  completion,  execution  or  submission  would             subject  such  Lender  to  any  material  unreimbursed  cost  or  expense  or  would             materially prejudice the legal or commercial position of such Lender.                    (ii)  Without limiting the generality of the foregoing, in the event that the             Borrower is a U.S. Person:                          (A)   any Lender that is a U.S. Person shall deliver to the Borrower                   and the Administrative Agent on or prior to the date on which such Lender                   becomes a Lender under this Agreement (and from time to time thereafter                   upon the reasonable request of the Borrower or the Administrative Agent),                   executed copies of IRS Form W-9 certifying that such Lender is exempt                   from United States federal backup withholding tax;                          (B)   any Foreign Lender shall, to the extent it is legally entitled                   to  do so, deliver to the Borrower and the Administrative  Agent (in such                   number of copies as shall be requested by the recipient) on or prior to the                   date on which such Foreign Lender becomes a Lender under this Agreement                   (and  from  time  to  time  thereafter  upon  the  reasonable  request  of  the                   Borrower  or  the  Administrative  Agent),  whichever  of  the  following  is                   applicable:                                (1)   in the case of a Foreign Lender claiming the benefits                         of an income tax treaty to which the United States is a party (x) with                         respect to payments of interest under any Loan Document, executed                         copies of  IRS  Form  W-8BEN  or  W-8BEN-E  establishing  an                         exemption from, or reduction of, United States federal withholding                         Tax pursuant to the “interest” article of such tax treaty and (y) with                                       63                                        13227198v7 27112.00011                

 

                                       respect to any other applicable payments under any Loan Document,                         IRS Form W-8BEN or W-8BEN-E establishing an exemption from,                         or reduction of, United States federal withholding Tax pursuant to                         the “business profits” or “other income” article of such tax treaty;                                (2)   executed copies of IRS Form W-8ECI;                                (3)   in the case of a Foreign Lender claiming the benefits                         of the exemption for portfolio interest under Section 881(c) of the                         Code, (x) a certificate substantially in the form of Exhibit I-1 to the                         effect that such Foreign Lender is not a “bank” within the meaning                         of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of                         the  Borrower  within  the  meaning  of  Section 881(c)(3)(B)  of  the                         Code,  or  a  “controlled  foreign  corporation”  described  in                         Section 881(c)(3)(C)  of  the  Code  (a  “U.S.  Tax  Compliance                         Certificate”) and (y) executed copies of IRS Form W-8BEN or W-                        8BEN-E; or                                (4)   to the extent a Foreign Lender is not the beneficial                         owner, executed copies of IRS Form W-8IMY, accompanied by IRS                         Form  W-8ECI,  IRS  Form  W-8BEN  or  W-8BEN-E,  a  U.S.  Tax                         Compliance Certificate substantially in the form of Exhibit I-2 or                         Exhibit  I-3,  IRS  Form  W-9,  and/or other  certification  documents                         from  each  beneficial  owner,  as  applicable; provided that  if  the                         Foreign Lender is a partnership and one or more direct or indirect                         partners of such Foreign Lender are claiming the portfolio interest                         exemption,  such  Foreign  Lender  may  provide  a  U.S.  Tax                         Compliance Certificate substantially in the form of Exhibit I-4 on                         behalf of each such direct and indirect partner;                          (C)   any Foreign Lender shall, to the extent it is legally entitled                   to  do so, deliver to the Borrower and the Administrative  Agent (in such                   number of copies as shall be requested by the recipient) on or prior to the                   date on which such Foreign Lender becomes a Lender under this Agreement                   (and  from  time  to  time  thereafter  upon  the  reasonable  request  of  the                   Borrower or the Administrative Agent), executed copies of any other form                   prescribed by Applicable Law as a basis for claiming exemption from or a                   reduction  in  United  States  federal  withholding  Tax, duly  completed,                   together with such supplementary documentation as may be prescribed by                   Applicable  Law  to  permit  the  Borrower  or  the  Administrative  Agent  to                   determine the withholding or deduction required to be made; and                          (D)   if a payment made to a Lender under any Loan Document                   would  be  subject  to  United  States  federal  withholding  Tax  imposed  by                   FATCA if such Lender were to fail to comply with the applicable reporting                   requirements of FATCA (including those contained in Section 1471(b) or                   1472(b)  of  the  Code,  as applicable),  such  Lender  shall  deliver  to  the                   Borrower and the Administrative Agent at the time or times prescribed by                                       64                                        13227198v7 27112.00011                

 

                     law and at such time or times reasonably requested by the Borrower or the                    Administrative Agent such documentation prescribed by Applicable Law                    (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such                    additional  documentation  reasonably  requested  by  the  Borrower  or  the                    Administrative  Agent  as  may  be  necessary  for  the  Borrower  and  the                    Administrative Agent to comply with their obligations under FATCA and                    to determine that such Lender has complied with such Lender’s obligations                    under FATCA or to determine the amount to deduct and withhold from such                    payment.  Solely for purposes of this clause (D), “FATCA” shall include                    any amendments made to FATCA after the date of this Agreement.  Each                    Lender agrees that if any form or certification it previously delivered expires                    or becomes obsolete or inaccurate in any respect, it shall update such form                    or  certification  or  promptly  notify  the Borrower  and  the  Administrative                    Agent in writing of its legal inability to do so.               (h)   Treatment of Certain Refunds.  If any party determines, in its sole discretion        exercised in good faith, that it has received a refund of any Taxes as to which it has been        indemnified pursuant to this Section 3.01 (including by the payment of additional amounts        pursuant to this Section 3.01), it shall pay to the indemnifying party an amount equal to        such refund (but only to the extent of indemnity payments made under this Section with        respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including        Taxes) of such indemnified party and without interest (other than any interest paid by the        relevant Governmental Authority with respect to such refund).  Such indemnifying party,        upon  the  request  of  such  indemnified  party,  shall  repay  to  such  indemnified  party  the        amount  paid  over  pursuant  to  this  paragraph  (h)  (plus  any  penalties,  interest  or  other        charges  imposed  by  the  relevant  Governmental  Authority)  in  the  event  that  such        indemnified  party  is  required  to  repay  such  refund  to  such  Governmental  Authority.         Notwithstanding  anything  to  the  contrary  in  this  paragraph  (h),  in  no  event  will  the        indemnified party be required to pay any amount to an indemnifying party pursuant to this        paragraph (h) the payment of which would place the indemnified party in a less favorable        net after-Tax position than the indemnified party would have been in if the Tax subject to        indemnification  and  giving  rise  to  such  refund  had  not  been  deducted,  withheld  or        otherwise imposed and the indemnification payments or additional amounts with respect        to such Tax had never been paid.  This paragraph shall not be construed to require any        indemnified party to make available its Tax returns (or any other information relating to its        Taxes that it deems confidential) to the indemnifying party or any other Person.               (i)   Survival.  Each party’s obligations under this Section 3.01 shall survive the        resignation or replacement of the Administrative Agent or any assignment of rights by, or        the  replacement of,  a  Lender, the  termination  of  the  Commitments  and  the  repayment,        satisfaction or discharge of all obligations under any Loan Document.         3.02  Illegality.  If any Lender determines that any Law has made it unlawful, or that any  Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending  Office to make, maintain or fund Eurodollar Rate Loans, or to determine or charge interest rates  based upon the Eurodollar Rate, or any Governmental Authority has imposed material restrictions  on the authority of such Lender to purchase or sell, or to take deposits of, Dollars in the London                                         65                                         13227198v7 27112.00011   

 

   interbank  market,  then,  on  notice  thereof  by  such Lender  to  the  Borrower  through  the  Administrative Agent (which notice shall state in reasonable detail the reasons therefor together  with  a  statement  that  other  borrowers  with  similar  Eurodollar  Rate  Loans  are  being  treated  similarly), any obligation of such Lender to make or continue Eurodollar Rate Loans or to convert  Base  Rate  Loans  to  Eurodollar  Rate  Loans  shall  be  suspended  until  such  Lender  notifies  the  Administrative Agent and the Borrower that the circumstances giving rise to such determination  no longer exist.  Upon receipt of such notice, the Borrower shall, upon demand from such Lender  (with a copy to the Administrative Agent), prepay or, if applicable, convert all Eurodollar Rate  Loans of such Lender to Base Rate Loans, either on the last day of the Interest Period therefor, if  such  Lender  may  lawfully  continue  to  maintain  such  Eurodollar  Rate  Loans  to  such  day,  or  immediately, if such Lender may not lawfully continue to maintain such Eurodollar Rate Loans.   Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the  amount so prepaid or converted.         3.03  Inability to Determine Rates.                 (a)   If in connection with any request for a Eurodollar Rate Loan or a conversion        to or continuation thereof, (i) the Administrative Agent determines that (A) Dollar deposits        are not being offered to banks in the London interbank market for the applicable amount        and Interest Period of such Eurodollar Rate Loan, or (B) (x) adequate and reasonable means        do not exist for determining the Eurodollar Rate for any requested Interest Period with        respect to a proposed Eurodollar Rate Loan or in connection with an existing or proposed        Base Rate Loan and (y) the circumstances described in Section 3.03(c)(i) do not apply (in        each  case  with  respect to  this  clause  (i),  “Impacted  Loans”), or  (ii)  the  Administrative        Agent or the Required Lenders determine that for any reason the Eurodollar Rate for any        requested  Interest  Period  with  respect  to  a  proposed  Eurodollar  Rate  Loan  does  not        adequately and fairly reflect the cost to such Lenders of funding such Eurodollar Rate Loan,        the  Administrative  Agent  will  promptly  so  notify  the  Borrower  and  each  Lender.         Thereafter, (x) the obligation of the Lenders to make or maintain Eurodollar Rate Loans        shall be suspended, (to the extent of the affected Eurodollar Rate Loans or Interest Periods),        and (y) in the event of a determination described in the preceding sentence with respect to        the Eurodollar Rate component of the Base Rate, the utilization of the Eurodollar Rate        component  in  determining  the  Base  Rate  shall  be  suspended,  in  each  case  until  the        Administrative Agent (or, in the case of a determination by the Required Lenders described        in clause (ii) of Section 3.03(a), until the Administrative Agent upon instruction of the        Required Lenders) revokes such notice.  Upon receipt of such notice, the Borrower may        revoke any pending request for a Borrowing of, conversion to or continuation of Eurodollar        Rate Loans (to the extent of the affected Eurodollar Rate Loans or Interest Periods) or,        failing that, will be deemed to have converted such request into a request for a Borrowing        of Base Rate Loans in the amount specified therein.               (b)   Notwithstanding the foregoing, if the Administrative Agent has made the        determination  described  in  clause  (i)  of Section 3.03(a),  the  Administrative  Agent,  in        consultation with the Borrower and Required Lenders, may establish an alternative interest        rate for the Impacted Loans, in which case, such alternative rate of interest shall apply with        respect  to  the  Impacted  Loans  until  (i)  the  Administrative  Agent  revokes  the  notice        delivered with respect to the Impacted Loans under clause (i) of the first sentence of Section                                         66                                         13227198v7 27112.00011   

 

         3.03(a), (ii) the Administrative Agent or the Required Lenders notify the Administrative        Agent and the Borrower that such alternative interest rate does not adequately and fairly        reflect  the  cost  to  such  Lenders  of  funding  the  Impacted  Loans,  or  (iii)  any  Lender        determines that any Law has made it unlawful, or that any Governmental Authority has        asserted that  it  is  unlawful,  for  such  Lender  or  its  applicable  Lending  Office  to  make,        maintain or fund Loans whose interest is determined by reference to such alternative rate        of  interest  or  to  determine  or  charge  interest  rates  based  upon  such  rate  or  any        Governmental Authority has imposed material restrictions on the authority of such Lender        to do any of the foregoing and provides the Administrative Agent and the Borrower written        notice thereof.               (c)   Notwithstanding anything to the contrary in this Agreement or any other        Loan Documents, if the Administrative Agent determines (which determination shall be        conclusive  absent  manifest  error),  or  the  Borrower  or  Required  Lenders  notify  the        Administrative Agent (with, in the case of the Required Lenders, a copy to Borrower) that        the Borrower or Required Lenders (as applicable) have determined, that:                     (i)   adequate and reasonable means do not exist for ascertaining LIBOR              for any requested Interest Period, including, without limitation, because the LIBOR              Screen Rate is not available or published on a current basis and such circumstances              are unlikely to be temporary; or                     (ii)  the  administrator  of  the  LIBOR  Screen  Rate  or  a Governmental              Authority  having  jurisdiction  over  the  Administrative  Agent  has  made  a  public              statement identifying a specific date after which LIBOR or the LIBOR Screen Rate              shall no longer be made available, or used for determining the interest rate of loans,              provided that, at the time of such statement, there is no successor administrator that              is satisfactory to the Administrative Agent, that will continue to provide LIBOR              after such specific date (such specific date, the “Scheduled Unavailability Date”);              or                     (iii) syndicated loans currently being executed, or that include language              similar to that contained in this Section 3.03, are being executed or amended (as              applicable) to incorporate or adopt a new benchmark interest rate to replace LIBOR,         then, reasonably promptly after such determination by the Administrative Agent or receipt  by  the  Administrative  Agent  of  such  notice,  as  applicable,  the  Administrative  Agent  and  the  Borrower may amend this Agreement solely for the purpose of replacing LIBOR in accordance  with this Section 3.03 with (x) one or more SOFR-Based Rates or (y) another alternate benchmark  rate giving due consideration to any evolving or then existing convention for similar U.S. dollar  denominated  syndicated  credit  facilities  for  such  alternative  benchmarks  and,  in  each  case,  including any mathematical or other adjustments to such benchmark giving due consideration to  any evolving or then existing convention for similar U.S. dollar denominated syndicated credit  facilities for such benchmarks, which adjustment or method for calculating such adjustment shall  be published on an information service as selected by the Administrative Agent from time to time  in  its reasonable discretion and  may  be periodically updated (the “Adjustment;” and any such  proposed rate, a “LIBOR Successor Rate”), and any such amendment shall become effective at  5:00 p.m. on the fifth Business Day after the Administrative Agent shall have posted such proposed                                        67                                         13227198v7 27112.00011   

 

   amendment to all Lenders and the Borrower unless, prior to such time, Lenders comprising the  Required Lenders have delivered to the Administrative Agent written notice that such Required  Lenders (A) in the case of an amendment to replace LIBOR with a rate described in clause (x),  object  to  the  Adjustment;  or  (B)  in  the  case  of  an  amendment  to  replace  LIBOR  with  a  rate  described in clause (y), object to such amendment; provided that for the avoidance of doubt, in the  case of clause (A), the Required Lenders shall not be entitled to object to any SOFR-Based Rate  contained in any such amendment.   Such LIBOR Successor Rate shall be applied in a manner  consistent  with  market  practice; provided that  to  the  extent  such  market  practice  is  not  administratively  feasible  for  the  Administrative  Agent,  such  LIBOR  Successor  Rate  shall  be  applied in a manner as otherwise reasonably determined by the Administrative Agent.         If no LIBOR Successor Rate has been determined and the circumstances under clause (i)  above exist or the Scheduled Unavailability Date has occurred (as applicable), the Administrative  Agent will promptly so notify the Borrower and each Lender.  Thereafter, (x) the obligation of the  Lenders  to  make  or  maintain  Eurodollar  Rate  Loans  shall  be  suspended,  (to  the  extent  of  the  affected Eurodollar Rate Loans or Interest Periods), and (y) the Eurodollar Rate component shall  no longer be utilized in determining the Base Rate.  Upon receipt of such notice, the Borrower may  revoke any pending request for a Borrowing of, conversion to or continuation of Eurodollar Rate  Loans (to the extent of the affected Eurodollar Rate Loans or Interest Periods) or, failing that, will  be deemed to have converted such request into a request for a Borrowing of Base Rate Loans  (subject to the foregoing clause (y)) in the amount specified therein.         Notwithstanding  anything  else  herein,  any  definition  of  LIBOR  Successor  Rate  shall  provide that in no event shall such LIBOR Successor Rate be less than 0% for purposes of this  Agreement.         In connection with the implementation of a LIBOR Successor Rate, the Administrative  Agent will have the right to make LIBOR Successor Rate Conforming Changes from time to time  and,  notwithstanding  anything  to  the  contrary  herein  or  in  any  other  Loan  Document,  any  amendments  implementing  such  LIBOR  Successor  Rate  Conforming  Changes  will  become  effective without any further action or consent of any other party to this Agreement; provided that,  with  respect  to  any  such  amendment  effected,  the  Administrative  Agent  shall  post  each  such  amendment  implementing  such  LIBOR  Successor  Rate  Conforming  Changes  to  the  Lenders  reasonably promptly after such amendment becomes effective.         3.04  Increased Costs; Reserves on Eurodollar Rate Loans.               (a)   Increased Costs Generally.  If any Change in Law shall:                     (i)   impose,  modify  or  deem  applicable  any  reserve,  special  deposit,              compulsory  loan,  insurance  charge  or  similar  requirement  against  assets  of,              deposits with or for the account of, or advances, loans or other credit extended or              participated  in  by,  any  Lender  (except  any  reserve  requirement  reflected  in  the              Eurodollar Rate) or any Fronting Bank;                     (ii)  subject  any  Recipient  to  any  Taxes  (other  than  (A) Indemnified              Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded              Taxes and (C) Connection Income Taxes) on its loans, loan principal,  letters of                                        68                                         13227198v7 27112.00011   

 

                           credit, commitments, or other obligations, or its deposits, reserves, other liabilities             or capital attributable thereto; or                    (iii) impose  on  any  Lender  or  any  Fronting  Bank  or  the  London             interbank market any other condition, cost or expense (other than Taxes) affecting             this Agreement or Eurodollar Rate Loans made by such Lender or any Letter of             Credit or participation therein;        and the result of any of the foregoing shall  be to  increase the cost to  such Lender, the       Fronting Bank or such other Recipient of making, converting to, continuing or maintaining       any Loan (or of maintaining its obligation to make any such Loan), or to increase the cost       to such Lender, such Fronting Bank or such other Recipient of participating in, issuing or       maintaining any Letter of Credit (or of maintaining its obligation to participate in or to       issue any Letter of Credit), or to reduce the amount of any sum received or receivable by       such Lender, such Fronting Bank or such other Recipient hereunder (whether of principal,       interest or any other amount) then, upon written request of such Lender, such Fronting       Bank  or  other  Recipient,  the  Borrower  shall  promptly  pay  to  any  such  Lender,  such       Fronting Bank or other Recipient, as the case may be, such additional amount or amounts       as will compensate such Lender, such Fronting Bank or other Recipient, as the case may       be, for such additional costs incurred or reduction suffered.              (b)   Capital Requirements.  If any Lender or any Fronting Bank determines that       any Change in Law affecting such Lender or such Fronting Bank or any Lending Office of       such Lender or such Lender’s or such Fronting Bank’s holding company, if any, regarding       capital or liquidity requirements, has or would have the effect of reducing the rate of return       on such Lender’s or such Fronting Bank’s capital or on the capital of such Lender’s or such       Fronting  Bank’s  holding  company,  if  any,  as  a  consequence  of  this  Agreement,  the       Commitments of such Lender or the Loans made by, or participations in Letters of Credit       or Swing Line Loans held by, such Lender, or the Letters of Credit issued by such Fronting       Bank, to a level below that which such Lender or such Fronting Bank or such Lender’s or       such Fronting Bank’s holding company could have achieved but for such Change in Law       (taking into consideration such Lender’s or such Fronting Bank’s policies and the policies       of  such  Lender’s  or  such  Fronting  Bank’s  holding  company  with  respect  to  capital       adequacy and liquidity), then from time to time upon written request of such Lender or       such Fronting Bank the Borrower shall promptly pay to such Lender or such Fronting Bank,       as the case may be, such additional amount or amounts as will compensate such Lender or       such Fronting Bank or such Lender’s or such Fronting Bank’s holding company for any       such reduction suffered.              (c)   Certificates for Reimbursement.  A certificate of a Lender or any Fronting       Bank setting forth the amount or amounts necessary to compensate such Lender or such       Fronting Bank or its holding company, as the case may be, as specified in subsection (a)       or (b) of  this  Section and  delivered  to  the  Loan  Parties  shall  (i) include  a  written       explanation of such additional cost or reduction and a statement that such costs affect other       borrowers of such Lender or such Fronting Bank who are similarly  situated and (ii) be       conclusive absent manifest error.  The Loan Parties shall pay such Lender or such Fronting       Bank, as the case may be, the amount shown as due on any such certificate within ten (10)       days after receipt thereof.                                       69                                        13227198v7 27112.00011                

 

               (d)   Delay  in  Requests.   Failure  or  delay  on  the  part  of  any  Lender  or  any        Fronting  Bank  to  demand  compensation  pursuant  to  the  foregoing  provisions  of  this        Section shall  not  constitute a waiver of such Lender’s or such Fronting Bank’s right to        demand  such  compensation, provided that  the  Loan  Parties  shall  not  be  required  to        compensate a Lender or such Fronting Bank pursuant to the foregoing provisions of this        Section for any increased costs incurred or reductions suffered more than nine months prior        to the date that such Lender or such Fronting Bank, as the case may be, notifies the Loan        Parties of the Change in Law giving rise to such increased costs or reductions and of such        Lender’s or such Fronting Bank’s intention to claim compensation therefor (except that, if        the Change in Law giving rise to such increased costs or reductions is retroactive, then the        nine-month period referred to above shall be extended to include the period of retroactive        effect thereof).               (e)   Reserves  on  Eurodollar  Rate  Loans.   The  Borrower  shall  pay  to  each        Lender,  as  long  as  such  Lender  shall  be  required  to  maintain  reserves  with  respect  to        liabilities or assets consisting of or including Eurocurrency funds or deposits (currently        known as “Eurocurrency liabilities”), additional interest on the unpaid principal amount of        each Eurodollar Rate Loan equal to the actual costs of such reserves allocated to such Loan        by such Lender (as determined by such Lender in good faith, which determination shall be        conclusive), which shall be due and payable on each date on which interest is payable on        such Loan, provided the Borrower shall have received at least 10 days’ prior notice (with        a copy to the Administrative Agent) of such additional interest from such Lender.  If a        Lender  fails  to  give  notice  10  days  prior  to  the  relevant  Interest  Payment  Date,  such        additional interest shall be due and payable 10 days from receipt of such notice.         3.05  Compensation  for  Losses.  Upon  demand  of  any  Lender  (with  a  copy  to  the  Administrative Agent) from time to time, the Borrower shall promptly compensate such Lender  for and hold such Lender harmless from any loss, cost or expense incurred by it as a result of:               (a)   any  continuation, conversion, payment or prepayment of any Loan other        than a Base Rate Loan on a day other than the last day of the Interest Period for such Loan        (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise);               (b)   any  failure  by  the  Borrower (for  a reason  other than  the failure  of  such        Lender to make a Loan) to prepay, borrow, continue or convert any Loan other than a Base        Rate Loan on the date or in the amount notified by the Borrower; or               (c)   any assignment of a Eurodollar Rate Loan on a day other than the last day        of  the  Interest  Period  therefor  as  a  result  of  a  request  by  the  Borrower  pursuant  to        Section 10.13;   including any loss of anticipated profits and any loss or expense arising from the liquidation or  reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the  deposits  from  which  such  funds  were  obtained.   The  Borrower  shall  also  pay  any  customary  administrative fees charged by such Lender in connection with the foregoing.   For  purposes  of  calculating  amounts  payable  by  the  Borrower  to  the  Lenders  under  this  Section 3.05, each Lender shall be deemed to have funded each Eurodollar Rate Loan made by it                                        70                                         13227198v7 27112.00011   

 

   at the Eurodollar Rate for such Loan by a matching deposit or other borrowing in the London  interbank Eurodollar market for a comparable amount and for a comparable period, whether or not  such Eurodollar Rate Loan was in fact so funded.         3.06  Mitigation Obligations; Replacement of Lenders.               (a)   Designation  of  a  Different  Lending  Office.   If  any  Lender  requests        compensation  under Section 3.04,  or  any  Loan  Party  is  required  to  pay  any  additional        amount  to  any  Lender  or  any  Governmental  Authority  for  the  account  of  any  Lender        pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, then such        Lender shall use reasonable efforts to designate a different Lending Office for funding or        booking its Loans hereunder or to assign its rights and obligations hereunder to another of        its offices, branches or affiliates, if, in the judgment of such Lender, such designation or        assignment  (i) would  eliminate  or  reduce  amounts  payable  pursuant  to Section 3.01 or        3.04, as the case may be, in the future, or eliminate the need for the notice pursuant to        Section 3.02, as applicable, and (ii) in each case, would not subject such Lender to any        unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.         The Loan Parties hereby agree to pay all reasonable costs and expenses incurred by any        Lender in connection with any such designation or assignment.               (b)   Replacement of Lenders.  If (i) any Lender requests compensation under        Section 3.04, (ii) any Loan Party is required to pay any additional amount to any Lender        or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or        (iii) any Lender that was an NAIC Approved Bank on the date it became a party to this        Agreement ceases to be an NAIC Approved Bank and has failed to obtain a Fronting Bank        as contemplated by Section 2.03(o), the Borrower may replace such Lender in accordance        with Section 10.13, in any case upon notice to such Lender and the Administrative Agent.         3.07  Survival.  All of the Loan Parties’ obligations under this Article III shall survive  termination of the Commitments and repayment of all other Obligations hereunder.                                    ARTICLE IV                                                        CONDITIONS PRECEDENT TO CREDIT EXTENSIONS         4.01  Conditions of Effective Date.  This Agreement shall become effective on the date  that each of the following conditions precedent shall have been satisfied (or waived in accordance  with Section 10.01):               (a)   The Administrative Agent’s receipt of the following, each of which shall be        originals, telecopies, facsimile, “.pdf” or other electronically transmitted copies (followed        promptly by originals) unless otherwise specified, each properly executed by a Responsible        Officer  of the  signing  Loan  Party,  each  dated  the  Effective  Date  (or,  in  the  case  of        certificates of governmental officials, a recent date before the Effective Date) and each in        form and substance satisfactory to the Administrative Agent and each of the Lenders:                     (i)   executed  counterparts  of  this  Agreement,  in  such  number  as  the              Administrative Agent shall request;                                        71                                         13227198v7 27112.00011   

 

                                 (ii)  a Revolving Note executed by the Borrower in favor of each Lender             requesting a Revolving Note;                    (iii) such  certificates  of  resolutions  or  other  action,  incumbency             certificates and/or other certificates of Responsible Officers of each Loan Party as             the  Administrative  Agent  may  require  evidencing  the  identity,  authority  and             capacity of each Responsible Officer thereof authorized to act as a Responsible             Officer in connection with this Agreement and the other Loan Documents to which             such Loan Party is a party;                    (iv)  such documents and certifications as the Administrative Agent may             reasonably require to evidence that each Loan Party is duly organized or formed,             and  that  each  Loan  Party  is  validly  existing,  in  good  standing  and  qualified  to             engage  in  business  in  such  jurisdictions  as  the  Administrative  Agent  may             reasonably request;                    (v)   (A) a favorable opinion of McAfee & Taft, outside counsel to the             Borrower, (B) a favorable opinion of R. Brian Mitchell, executive vice president             and  general  counsel  of  the  Borrower, (C)  a  favorable  opinion  of  Appleby             (Bermuda) Limited, special Bermuda counsel to TMK and (D) a favorable opinion             of Robinson, Bradshaw & Hinson, P.A. with respect to the enforceability of this             Agreement and the Notes under the laws of the State of New York, each addressed             to the Administrative Agent and each Lender, as to such matters concerning the             Loan Parties and the Loan Documents as the Administrative Agent or the Required             Lenders may reasonably request;                    (vi)  a certificate of a Responsible Officer or Secretary of each Loan Party             either  (A) attaching  copies  of  all  consents,  licenses  and  regulatory  or  other             approvals required in connection with the execution, delivery and performance by             such Loan Party and the validity against such Loan Party of the Loan Documents             to which it is a party, and such consents, licenses and approvals shall be in full force             and  effect,  or  (B) stating  that no  such  consents,  licenses  or  approvals  are  so             required;                    (vii) a  certificate  signed  by  a  Responsible  Officer  of  the  Borrower             certifying  (A) that  the  conditions  specified  in Section 4.01(d) and (e) and             Sections 4.02(b) and (c) have been satisfied, (B) that there has been no event or             circumstance since the date of the Audited Financial Statements that has had or             could  be reasonably expected to  have, either  individually or in the aggregate, a             Material Adverse Effect, and (C) the current Debt Ratings.                    (viii) evidence that prior to or concurrently with the Effective Date (A) all             outstanding obligations under the Existing Credit Agreement are paid and (B) all             outstanding letters of credit issued under the Existing Credit Agreement are being             (i) surrendered  for cancellation or (ii) amended and/or continued, as applicable,             pursuant to Section 2.03(n) hereof;                                        72                                        13227198v7 27112.00011                

 

                                 (ix)  a duly completed compliance certificate as of June 30, 2020 in form             satisfactory to the Administrative Agent, signed by a Responsible Officer of the             Borrower and evidencing compliance as of such date with Section 7.07 hereof; and                    (x)   except  as  the  Administrative  Agent  and  the  Borrower  shall             otherwise agree, the Administrative Agent shall have received evidence (which the             Borrower shall  deliver)  in  the  form  of  the  most  current “Bank  List” of  banks             approved by the NAIC, that each Lender is an NAIC Approved Bank; and                    (xi)  such other assurances, certificates, documents, consents or opinions             as the Administrative Agent, the Swing Line Lender, the L/C Administrator, or the             Required Lenders reasonably may require.              (b)   Any fees required to be paid on or before the Effective Date shall have been       paid.              (c)   Unless waived by the Administrative Agent, the Borrower shall have paid       all fees, charges and disbursements of counsel to the Administrative Agent to the extent       invoiced prior to or on the Effective Date.              (d)   There shall not have occurred a material adverse change (i) in the business,       assets,  properties,  liabilities  (actual  or  contingent),  operations,  conditions  (financial  or       otherwise) or prospects of either of the Loan Parties, or the Borrower and its Subsidiaries,       taken as a whole, since December 31, 2019 or (ii) in the facts and information regarding       such  entities  as  represented  by  the  Borrower  or  any  of  its  Subsidiaries,  or  any       representatives of any of them, to date.              (e)   The absence of any action, suit, investigation or proceeding pending or, to       the knowledge of the Borrower or any of its Subsidiaries, threatened, in any court or before       any  arbitrator  or  governmental  authority  that  could  reasonably  be  expected  to  have  a       Material Adverse Effect.              (f)   Each Several Letter of Credit described on Schedule 2.03  shall have been       (or  shall  substantially  contemporaneously  be)  amended  to  remove,  as  applicable,  the       Existing  Lenders  as  issuers  thereof  and  to  reflect  as the  issuers  thereof  the  Lenders  in       accordance with their Applicable Percentages as reflected on Schedule 2.01 hereto and       Bank of America as the L/C Administrator (or shall have been cancelled without a drawing       thereon).              (g)   (i) Upon the reasonable request of any Lender made at least 5 days prior to       the Effective Date, each Loan Party shall have provided to such Lender, and such Lender       shall be reasonably satisfied with, the documentation and other information so requested       in connection with applicable “know your customer” and anti-money-laundering rules and       regulations, including, without limitation, the PATRIOT Act, in each case at least 3 days       prior to the Effective Date and (ii) at least 5 days prior to the Effective Date, if any Loan       Party qualifies as a “legal entity customer” under the Beneficial Ownership Regulation, it       shall have delivered, to each Lender that so requests, a Beneficial Ownership Certification.                                        73                                        13227198v7 27112.00011                

 

         Without  limiting  the  generality  of  the  provisions  of Section 9.04,  for  purposes  of  determining compliance with the conditions specified in this Section 4.01, each Lender that has  signed  this  Agreement  shall  be  deemed  to  have  consented  to,  approved  or  accepted  or  to  be  satisfied with, each document or other matter required thereunder to be consented to or approved  by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received  notice from such Lender prior to the proposed Effective Date specifying its objection thereto.         4.02  Conditions to all Credit Extensions.  The obligation of each Lender to honor any  Request for Credit Extension (other than a Loan Notice requesting only a conversion of Revolving  Loans to the other Type or a continuation of Eurodollar Rate Loans) is subject to the following  conditions precedent:               (a)   The Effective Date shall have occurred.               (b)   The representations and warranties of the Borrower and each other Loan        Party contained in Article V (other than the representation in Section 5.05(d) and Section        5.06 solely with respect to a Revolving Borrowing or Swing Line Borrowing occurring        after the Effective Date) or any other Loan Document, shall be true and correct on and as        of the date of such Credit Extension, except to the extent that such representations and        warranties specifically refer to an earlier date, in which case they shall be true and correct        as of such earlier date, and except that for purposes of this Section 4.02, the representations        and warranties contained in subsections (a), (b) and (c) of Section 5.05 shall be deemed to        refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively,        of Section 6.01.               (c)   No Default shall exist, or would result from such proposed Credit Extension        or from the application of the proceeds thereof.               (d)   The Administrative Agent and, if applicable, the Applicable Issuing Party        or the Swing Line Lender shall have received a Request for Credit Extension in accordance        with the requirements hereof.               (e)   If a Secured Letter of Credit is being requested, (i) the Borrower shall have        executed a Security Agreement and Control Agreement and the Administrative Agent shall        have  received  such  resolutions,  certificates  and  opinions  with  respect  thereto  as  the        Administrative Agent may reasonably request and (ii) the Administrative Agent shall have        received a Borrowing Base Certificate calculated as of the most recent Business Day in        accordance with the requirements hereof and demonstrating compliance with Section 6.13.         Each Request for Credit Extension (other than a Loan Notice requesting only a conversion  of Revolving Loans to the other Type or a continuation of Eurodollar Rate Loans) submitted by  any Borrower shall be deemed to be a representation and warranty that the conditions specified in  Sections 4.02(b) and (c) have  been  satisfied  on  and  as  of  the  date  of  the  applicable  Credit  Extension.                                          74                                         13227198v7 27112.00011   

 

                                    ARTICLE V                                                              REPRESENTATIONS AND WARRANTIES         The Loan Parties represent and warrant to the Administrative Agent and the Lenders that:         5.01  Existence, Qualification and Power; Compliance with Laws.  Each Loan Party  and each of the Significant Subsidiaries (a) is duly organized or formed, validly existing and, as  applicable, in good standing under the Laws of the jurisdiction of its incorporation or organization,  (b) has all requisite power and authority and all requisite governmental licenses, authorizations,  consents and approvals to (i) own or lease its assets and carry on its business and (ii) execute,  deliver and perform its obligations under the Loan Documents to which it is a party, (c) is duly  qualified and is licensed and, as applicable, in good standing under the Laws of each jurisdiction  where its ownership, lease or operation of properties or the conduct of its business requires such  qualification or license, and (d) is in compliance with all Laws; except in each case referred to in  clause (b)(i), (c) or (d), to the extent that failure to do so could not reasonably be expected to have  a Material Adverse Effect. Neither Loan Party is an Affected Financial Institution.          5.02  Authorization; No Contravention.  The execution, delivery and performance by  each Loan Party of each Loan Document to which such Person is party, have been duly authorized  by all necessary corporate or other organizational action, and do not and will not (a) contravene  the terms of any of such Person’s Organization Documents; (b) conflict with or result in any breach  or contravention of, or the creation of any Lien under, or require any payment to be made under  (i) any Contractual Obligation to which such Person  is a party or affecting such Person or the  properties of such Person or any of its Subsidiaries or (ii) any order, injunction, writ or decree of  any Governmental Authority or any arbitral award to which such Person or its property is subject;  or (c) violate any Applicable Law.           5.03  Governmental  Authorization;  Other  Consents.  No  approval,  consent,  exemption,  authorization,  or  other  action  by,  or notice  to,  or  filing  with,  any  Governmental  Authority or any other Person is necessary or required in connection with the execution, delivery  or performance by, or enforcement against, any Loan Party of this Agreement or any other Loan  Document.         5.04  Binding Effect.  This Agreement has been, and each other Loan Document, when  delivered hereunder, will have been, duly executed and delivered by each Loan Party that is party  thereto.   This  Agreement  constitutes,  and  each  other  Loan  Document  when  so  delivered  will  constitute, a legal, valid and binding obligation of such Loan Party, enforceable against each Loan  Party that is party thereto in accordance with its terms.         5.05  Financial Statements; No Material Adverse Effect.               (a)   The  Audited  Financial  Statements  (i) were  prepared  in  accordance  with        GAAP consistently  applied throughout the period covered thereby, except as otherwise        expressly noted therein; (ii) fairly present the financial condition of the Borrower and its        Subsidiaries as of the date thereof and their results of operations for the period covered        thereby  in  accordance  with  GAAP  consistently  applied  throughout  the  period  covered        thereby,  except  as  otherwise  expressly  noted  therein;  and  (iii) show  all  material                                        75                                         13227198v7 27112.00011   

 

         indebtedness and other liabilities, direct or contingent, of the Borrower and its Subsidiaries        as  of  the  date  thereof,  including  liabilities  for  taxes,  material  commitments  and        Indebtedness,  in each case under this clause (iii), to the extent required to be reflected        thereon pursuant to GAAP.               (b)   The  unaudited  consolidated  balance  sheet  of  the  Borrower  and  its        Subsidiaries dated June 30, 2020, and the related consolidated statements of  income or        operations, shareholders’ equity and cash flows for the fiscal quarter ended on that date        (i) were prepared in accordance with GAAP consistently applied throughout the period        covered thereby, except as otherwise expressly  noted therein, and (ii) fairly present the        financial condition of the Borrower and its Subsidiaries as of the date thereof and their        results of operations for the period covered thereby, subject, in the case of clauses (i) and        (ii), to the absence of footnotes and to normal year-end audit adjustments.               (c)   Schedule 5.05 sets forth all material indebtedness and other liabilities, direct        or contingent, of the Borrower and its consolidated Subsidiaries not disclosed on the most        recent financial statements referred to in either clauses (a) or (b), as applicable, of this        Section 5.05, including liabilities for taxes, material commitments and Indebtedness.               (d)   Since the date of the Audited Financial Statements, there has been no event        or circumstance, either individually or in the aggregate, that has had or could reasonably        be expected to have a Material Adverse Effect.         5.06  Litigation.  Except  as  set  forth  on Schedule 5.06,  there  are  no  actions,  suits,  proceedings,  claims  or  disputes  pending  or,  to  the  knowledge  of  the  Borrower,  threatened  or  contemplated, at law, in equity, in arbitration or before any Governmental Authority, by or against  the Borrower or any of its Subsidiaries or against any of their properties or revenues that (a) purport  to  affect or pertain to this Agreement or any other Loan Document, or any of the transactions  contemplated hereby, or (b) either individually or in the aggregate, if determined adversely, could  reasonably be expected to have a Material Adverse Effect.         5.07  No Default.  No Default has occurred and is continuing or would result from the  consummation of the transactions contemplated by this Agreement or any other Loan Document.         5.08  Ownership of Property; Liens.  Each of the Borrower and each Subsidiary has  good title to, or valid leasehold interests in, all real property necessary or used in the ordinary  conduct of its business, except for such defects in title as could not, individually or in the aggregate,  reasonably be expected to have a Material Adverse Effect.  The property of the Borrower and its  Subsidiaries is subject to no Liens, other than Liens permitted by Section 7.01.         5.09  Insurance.  The properties of the Borrower and its Subsidiaries are insured with  financially  sound  and  reputable  insurance  companies  not  Affiliates  of  the  Borrower,  in  such  amounts, with such deductibles and covering such risks as are customarily carried by companies  engaged in similar businesses and owning similar properties in localities where the Borrower or  the  applicable  Subsidiary  operates,  including  self-insurance  for  certain  portions  of  workers  compensation to the extent customary.                                          76                                         13227198v7 27112.00011   

 

         5.10  Taxes.  The Borrower and its Subsidiaries have filed all Federal, state and other  material tax returns and reports required to be filed, and have paid all Federal, state and other  material taxes, assessments, fees and other governmental charges levied or imposed upon them or  their  properties,  income  or  assets  otherwise  due  and  payable,  except  those  which  are  being  contested in good faith by appropriate proceedings diligently conducted and for which adequate  reserves have been provided in accordance with GAAP.  There is no proposed tax assessment  against the  Borrower or  any  Subsidiary  that  would,  if  made,  have  a  Material  Adverse  Effect.   Neither any Loan Party nor any Subsidiary thereof is party to any tax sharing agreement with any  Person other than another Loan Party or a Subsidiary thereof.         5.11  ERISA Compliance.               (a)   Each  Plan  is  in  compliance  in  all  material  respects  with  the  applicable        provisions of ERISA, the Code and other Federal or state Laws.  Each Plan that is intended        to qualify under Section 401(a) of the Code has received a favorable determination letter        or opinion letter from the IRS or an application for such a letter is currently being processed        by the IRS with respect thereto and, to the best knowledge of the Borrower, nothing has        occurred which would prevent, or cause the loss of, such qualification.  The Borrower and        each  ERISA  Affiliate  have  made  all  required  contributions  to  each  Plan  subject  to        Section 412 of the Code, and no application for a funding waiver or an extension of any        amortization period pursuant to Section 412, 430 or 431 of the Code has been made with        respect to any Plan.               (b)   There are no pending or, to the best knowledge of the Borrower, threatened        claims, actions or lawsuits, or action by any Governmental Authority, with respect to any        Plan that could be reasonably be expected to have a Material Adverse Effect.  There has        been no prohibited transaction or violation of the fiduciary responsibility rules with respect        to any Plan that has resulted or could reasonably be expected to result in a Material Adverse        Effect.               (c)   (i) No ERISA Event has occurred or is reasonably expected to occur; (ii) no        Loan Party or any ERISA Affiliate has failed to meet the applicable requirements under        the  Pension  Funding  Rules  with  respect  to  each  Pension  Plan,  and  no  waiver  of  the        minimum  funding  standards  under  the  Pension  Funding  Rules  has  been  applied  for  or        obtained; (iii) neither the Borrower nor any ERISA Affiliate has incurred, or reasonably        expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan        (other than premiums due and not delinquent under Section 4007 of ERISA); (iv) neither        the Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any        liability (and no event has occurred which, with the giving of notice under Section 4219 of        ERISA, would result in such liability) under Sections 4201 or 4243 of ERISA with respect        to  a  Multiemployer  Plan;  and  (v) neither  the  Borrower  nor  any  ERISA  Affiliate  has        engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA.         5.12  Subsidiaries; Equity Interests.  As of the Effective Date, the Borrower has no  Subsidiaries other than those specifically disclosed  in Part (a) of Schedule 5.12, and all of the  outstanding Equity Interests in such Subsidiaries have been validly issued, are fully paid and non- assessable and are owned directly or indirectly by the Borrower in the amounts specified on Part (a)  of Schedule 5.12 free and clear of all Liens.  As of the Effective Date, the Borrower has no equity                                        77                                         13227198v7 27112.00011   

 

   investments  in any other corporation or entity  in excess of 5% of the Equity Interests of such  corporation or entity other than those specifically disclosed in Part (b) of Schedule 5.12.  All of  the outstanding Equity Interests in the Borrower have been validly issued and are fully paid and  non-assessable.  As of the Effective Date, TMK does not have any Subsidiaries.         5.13  Margin Regulations; Investment Company Act.               (a)   No Loan Party is engaged and will not engage, principally or as one of its        important activities,  in the business of purchasing or carrying  margin stock (within the        meaning  of  Regulation U  issued  by  the  FRB),  or  extending  credit  for  the  purpose  of        purchasing or carrying margin stock.  Following the application of the proceeds of each        Borrowing or drawing under each Letter of Credit, not more than 25% of the value of the        assets (either of the Borrower only or of the Borrower and its Subsidiaries on a consolidated        basis) subject to the provisions of Section 7.01 or Section 7.05 or subject to any restriction        contained in any agreement or instrument between any Loan Party and any Lender or any        Affiliate of any Lender relating to Indebtedness and within the scope of Section 8.01(e)        will be margin stock.               (b)   None  of  the  Borrower,  any  Person  Controlling  the  Borrower,  or  any        Subsidiary  is  or  is  required  to  be  registered  as  an  “investment  company”  under  the        Investment Company Act of 1940.         5.14  Disclosure.  The  Borrower  has  disclosed  to  the  Administrative  Agent  and  the  Lenders all agreements, instruments and corporate or other restrictions to which it or any of its  Subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate,  could reasonably be expected to result in a Material Adverse Effect.  No report, financial statement,  certificate or other information furnished (whether in writing or orally) by or on behalf of any Loan  Party to the Administrative Agent or any Lender in connection with the transactions contemplated  hereby and the negotiation of this Agreement or delivered hereunder or under any other Loan  Document (in each case, as modified or supplemented by other information so furnished) contains  any  material  misstatement  of  fact  or  omits  to  state  any  material  fact  necessary  to  make  the  statements therein, in the light of the circumstances under which they were made, not misleading;  provided that, with respect to projected financial information, the Borrower represents only that  such information was prepared in good faith based upon assumptions believed to be reasonable at  the time. As of the Effective Date, all of the information included in any Beneficial Ownership  Certification, if applicable, is true and correct in all respects.         5.15  Compliance  with  Laws.  Each  of  the  Borrower  and  each  Subsidiary  is  in  compliance in all material respects with the requirements of all Applicable Laws and all orders,  writs, injunctions and decrees applicable to it or to its properties, except in such instances in which  (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith  by  appropriate  proceedings  diligently  conducted  or  (b) the  failure  to  comply  therewith,  either  individually or in the aggregate, could not  reasonably  be expected to  have a Material  Adverse  Effect.         5.16  Insurance  Licenses.  As  of  the  Effective  Date, Schedule 5.16 lists  all  of  the  jurisdictions in which any Significant Insurance Subsidiary holds active Licenses and is authorized  to transact insurance business.  No License of any Significant Subsidiary in any jurisdiction is the                                        78                                         13227198v7 27112.00011   

 

   subject  of  a  proceeding  for  suspension  or  revocation,  there  is  no  sustainable  basis  for  such  suspension  or  revocation,  and  to  each  Loan  Party’s  best  knowledge,  no  such  suspension  or  revocation has been threatened by any Governmental Authority.  Schedule 5.16 also indicates the  type or types of insurance in which each such Insurance Subsidiary is permitted to engage with  respect to each License therein listed as of the Effective Date.  As of the Effective Date, none of  the Insurance Subsidiaries transacts any insurance business, directly or indirectly, in any state other  than those enumerated in Schedule 5.16.         5.17  First Priority Interest.  The Administrative Agent, for the benefit of itself, the  Fronting  Banks,  the  L/C  Issuers,  the  L/C  Administrator  and  the  Lenders,  has  a  first  priority  perfected security interest in the Collateral, if any, pledged by each Loan Party pursuant to this  Agreement (if ever) or any applicable Security Agreement.         5.18  OFAC; Anti-Corruptions Laws.               (a)   No Loan Party, nor any of its Subsidiaries, nor, to the knowledge of such        Loan  Party and  its  Subsidiaries,  any  director,  officer,  employee,  agent,  affiliate  or        representative thereof, is an individual or entity that is, or is owned or controlled by one or        more individuals or entities that are (a) currently the subject or target of any Sanctions, (b)        included on OFAC’s List of Specially Designated Nationals or HMT’s Consolidated List        of Financial Sanctions Targets, or any similar list enforced by any other relevant sanctions        authority or (c) located, organized or resident in a Designated Jurisdiction.  Each Loan        Party and its Subsidiaries have conducted their businesses in compliance in all material        respects  with  all  applicable  Sanctions  and  have  instituted  and  maintained  policies  and        procedures designed to promote and achieve compliance with such Sanctions.               (b)   Each Loan Party and  its Subsidiaries  have conducted their businesses  in        compliance in all material respects with the United States Foreign Corrupt Practices Act of        1977, the UK Bribery Act 2010, and other applicable anti-corruption legislation in other        jurisdictions  and  have  instituted  and  maintained  policies  and  procedures  designed  to        promote and achieve compliance with such laws.         5.19  Covered Entities.  No Loan Party is a Covered Entity.                                    ARTICLE VI                                                                    AFFIRMATIVE COVENANTS         So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation  hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, the  Borrower shall, and shall (except in the case of the covenants set forth in Sections 6.01, 6.02 and  6.03) cause each Subsidiary to:         6.01  Financial Statements.  Deliver to the Administrative Agent and each Lender, in  form and detail satisfactory to the Administrative Agent and the Required Lenders:               (a)   as soon as available, but in any event within ninety (90) days after the end        of each fiscal year of the Borrower, a consolidated balance sheet of the Borrower and its                                        79                                         13227198v7 27112.00011   

 

         Subsidiaries as at the end of such fiscal year, and the related consolidated statements of        income or operations, shareholders’ equity and cash flows for such fiscal year, setting forth        in each case in comparative form the figures for the previous fiscal year, all in reasonable        detail and prepared in accordance with GAAP, such consolidated statements to be audited        and accompanied by a report and opinion of an independent certified public accountant of        nationally  recognized  standing  reasonably  acceptable  to  the  Required  Lenders,  which        report  and  opinion  shall  be  prepared  in  accordance  with  generally  accepted  auditing        standards and shall not be subject to any “going concern” or like qualification or exception        or any qualification or exception as to the scope of such audit; and               (b)   as soon as available, but in any event within forty-five (45) days after the        end  of  each  of  the  first  three  fiscal  quarters  of  each  fiscal  year  of  the  Borrower,  a        consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal        quarter,  and  the  related  consolidated  statements of  income  or operations,  shareholders’        equity and cash flows for such fiscal quarter and for the portion of the Borrower’s fiscal        year  then  ended,  setting  forth  in  each  case  in  comparative  form  the  figures  for  the        corresponding fiscal quarter of the previous fiscal year and the corresponding portion of        the previous fiscal year, all in reasonable detail, such consolidated statements to be certified        by  a  Responsible  Officer  of  the  Borrower  as  fairly  presenting  the  financial  condition,        results  of  operations,  shareholders’  equity  and  cash  flows  of  the  Borrower  and  its        Subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments        and the absence of footnotes.         As to  any  information contained  in  materials  furnished pursuant to Section 6.02(c), the  Borrower shall not be separately required to furnish such information under clause (a) or (b) above,  but  the  foregoing  shall  not  be  in  derogation  of  the  obligation  of  the  Borrower  to  furnish  the  information and materials described in clauses (a) and (b) above at the times specified therein.         6.02  Certificates; Other Information.  Deliver to the Administrative Agent and each  Lender, in form and detail satisfactory to the Administrative Agent and the Required Lenders:               (a)   concurrently  with  the  delivery  of  the  financial  statements  referred  to  in        Sections 6.01(a) and (b), a duly completed Compliance Certificate signed by a Responsible        Officer of the Borrower;               (b)   promptly  after  any  request  by  the  Administrative  Agent  or  any  Lender,        copies  of  any  detailed  audit  reports,  substantive  management  letters  or  substantive        recommendations submitted to the board of directors (or the audit committee of the board        of directors) of the Borrower by independent accountants in connection with the accounts        or books of the Borrower or any Subsidiary, or any audit of any of them;               (c)   promptly after the same are publicly available, copies of each annual report,        proxy or financial statement or other report or communication sent to the stockholders of        the Borrower, and copies of all annual, regular, periodic and special reports and registration        statements  which  the  Borrower  may  file  or  be  required to  file  with  the  SEC  under        Section 13 or 15(d) of the Securities Exchange Act of 1934, and not otherwise required to        be delivered to the Administrative Agent pursuant hereto;                                         80                                         13227198v7 27112.00011   

 

                           (d)   promptly  after  the  furnishing  thereof,  copies  of  any  statement  or  report       furnished to any  holder of debt securities of any Loan Party or any Subsidiary thereof       pursuant to the terms of any indenture, loan or credit or similar agreement and not otherwise       required to be furnished to the Lenders pursuant to Section 6.01 or any other clause of this       Section 6.02;              (e)   promptly,  and  in  any  event  within  five  (5)  Business  Days  after  receipt       thereof  by  any  Loan  Party  or  any  Subsidiary  thereof,  copies  of  each  notice  or  other       correspondence received from the SEC (or any other Governmental Authority) concerning       any material investigation by such agency regarding financial or other operational results       of any Loan Party or any Subsidiary thereof;              (f)   within  (i) ninety  (90)  days  after  the  close  of  each  fiscal  year  of  each       Significant Insurance Subsidiary, copies of the Annual Statement of each of the Significant       Insurance  Subsidiaries,  as  certified  by  the  president,  secretary  and  treasurer of  and  the       actuary for each such Significant Insurance Subsidiary and prepared on the NAIC annual       statement  blanks  (or  such  other  form  as  shall  be  required  by  the  jurisdiction  of       incorporation  of  each  such  Significant  Insurance  Subsidiary),  all  such  statements to  be       prepared  in  accordance  with  SAP  consistently  applied  throughout  the  periods  reflected       therein and (ii)  one hundred eighty (180) days after the close of each fiscal year of each       Significant Insurance Subsidiary, copies of the certification by independent certified public       accountants  reasonably  acceptable  to  the  Administrative  Agent  if  so  required  by  any       Governmental Authority with respect to such Annual Statements;              (g)   within  sixty  (60)  days  after  the  close  of  each  fiscal  quarter  of  each       Significant  Insurance  Subsidiary,  copies  of  the  Quarterly  Statement  of  each  of  the       Significant Insurance Subsidiaries, as certified by the president, secretary and treasurer of       and the actuary for each such Significant Insurance Subsidiary and prepared on the NAIC       quarterly statement blanks (or such other form as shall be required by the jurisdiction of       incorporation of each such Insurance Subsidiary), all such statements to be prepared in       accordance with SAP consistently applied throughout the periods reflected therein;              (h)   promptly  upon  any  Loan  Party’s  receipt  thereof,  copies  of  reports  or       valuations prepared by any Governmental Authority or actuary in respect of any action or       event which has resulted in the reduction by 5% or more in the capital and surplus of any       Insurance Subsidiary;              (i)   promptly  and  in  any  event  within  ten  (10)  days  after  learning  thereof,       notification of any decrease after the date hereof in the rating given by A.M. Best & Co. in       respect of any Insurance Subsidiary;              (j)   with each Letter of Credit Application for a Secured Letter of Credit and       within ten (10) Business Days after the end of each calendar month when a Secured Letter       of Credit is in place, a Borrowing Base Certificate executed by a Responsible Officer. For       purposes of such report and of completing the Borrowing Base Certificate required under       this Section 6.02(j), Eligible Collateral shall be valued based on its Fair Market Value as       at the last Business Day of the calendar month for which such report or Borrowing Base       Certificate is being delivered;                                       81                                        13227198v7 27112.00011                

 

               (k)   promptly, at the reasonable request of the Administrative Agent at any time        any Secured Letter of Credit is outstanding, a Borrowing Base Certificate for any given        Business Day executed by a Responsible Officer of the Borrower;                (l)   promptly  following  any  request  therefor,  provide  information  and        documentation  reasonably  requested  by  the  Administrative  Agent  or  any  Lender  for        purposes of compliance with applicable “know your customer” and anti-money-laundering        rules and regulations, including, without limitation, the PATRIOT Act and the Beneficial        Ownership Regulation; and               (m)   promptly, such additional information regarding the business, financial or        corporate affairs of the Borrower or any Subsidiary, or compliance with the terms of the        Loan  Documents,  as  the  Administrative  Agent  or  any  Lender  may  from  time  to  time        reasonably request.         Documents required to be delivered pursuant to Section 6.01(a) or (b) or Section 6.02(c)  (to the extent any such documents are included in materials otherwise filed with the SEC) may be  delivered electronically and if so delivered, shall be deemed to have been delivered on the date  (i) on which the Borrower posts such documents, or provides a link thereto on the Borrower’s  website  on the  Internet  at  the  website  address  listed on Schedule 10.02;  or  (ii) on  which  such  documents are posted on the Borrower’s behalf on an Internet or intranet website, if any, to which  each Lender and the Administrative Agent have access (whether a commercial, third-party website  or whether sponsored by the Administrative Agent); provided that:  (i) the Borrower shall deliver  paper  copies  of  such  documents  to  the  Administrative Agent  or  any  Lender  that  requests  the  Borrower to deliver such paper copies until a written request to cease delivering paper copies is  given  by  the  Administrative  Agent  or  such  Lender  and  (ii) the  Borrower  shall  notify  the  Administrative Agent and each Lender (by electronic mail) of the posting of any such documents  and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies)  of such documents.  The Administrative Agent shall have no obligation to request the delivery or  to maintain copies of the documents referred to above, and in any event shall have no responsibility  to monitor compliance by the Borrower with any such request by a Lender for delivery, and each  Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such  documents.         The  Borrower  hereby  acknowledges  that  (a) the  Administrative  Agent  and/or the  Joint  Arrangers will make available to the Lenders and Fronting Banks materials and/or information  provided  by  or  on  behalf of  the  Borrower  hereunder  (collectively,  “Borrower  Materials”)  by  posting  the  Borrower  Materials  on IntraLinks,  Syndtrak,  ClearPar,  or  a  substantially similar  electronic transmission system (the “Platform”) and (b) 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 Borrower or its securities) (each, a “Public Lender”).  The Borrower hereby agrees  that (w) all Borrower Materials that are to be made available to Public Lenders shall be clearly and  conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall  appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,” the  Borrower shall be deemed to have authorized the Administrative Agent, the Joint Arrangers, the  L/C Administrator and the Lenders to treat such Borrower Materials as not containing any material  non-public information (although it may be sensitive and proprietary) with respect to the Borrower  or its securities for purposes of United States Federal and state securities laws (provided, however,                                        82                                         13227198v7 27112.00011   

 

   that to the extent such Borrower Materials constitute Information, they shall be treated as set forth  in Section 10.07);  (y) all  Borrower  Materials  marked  “PUBLIC”  are  permitted  to  be  made  available  through  a  portion  of  the  Platform  designated  “Public  Investor;”  and  (z) the  Administrative Agent and the Joint Arrangers shall be entitled to treat any Borrower Materials that  are not  marked  “PUBLIC” as being suitable only for posting on a portion of the Platform not  designated “Public Investor.”         6.03  Notices.  Promptly notify the Administrative Agent and each Lender:               (a)   of the occurrence of any Default;               (b)   of any matter, including (i) breach or non-performance of, or any default        under,  a  Contractual  Obligation  of  the  Borrower  or  any  Subsidiary,  (ii) any  dispute,        litigation, investigation, proceeding or suspension between the Borrower or any Subsidiary        and any Governmental Authority, including any notice from any Governmental Authority        of the expiration without renewal, revocation or suspension of, or the institution of any        proceedings to revoke or suspend, any License now or hereafter held by any Insurance        Subsidiary  which  is  required  to  conduct  insurance  business  in  compliance  with  all        Applicable  Laws,  (iii) any  judicial  or  administrative  order  limiting  or  controlling  the        insurance business of any Insurance Subsidiary (and not the insurance industry generally),        (iv) any  notice  from  any  Governmental  Authority  of  the  institution  of  any  disciplinary        proceedings against or in respect of any Insurance Subsidiary, or the issuance of any order,        the  taking  of  any  action  or  any  request  for  an extraordinary  audit  for  cause  by  any        Governmental Authority or (v) the commencement of, or any material development in, any        litigation or proceeding affecting the Borrower or any Subsidiary, including pursuant to        any applicable Environmental Laws, in each case, that, individually or collectively, has        resulted or could reasonably be expected to result in a Material Adverse Effect;               (c)   of the occurrence of any ERISA Event;               (d)   of any material change in accounting policies and practices by the Borrower        or any Subsidiary; and               (e)   of any announcement by Moody’s or S&P of any change or possible change        in a Debt Rating;         Each notice pursuant to this Section (other than Section 6.03(e)) shall be accompanied by  a statement of a Responsible Officer of the Borrower setting forth details of the occurrence referred  to therein and stating what action the Borrower has taken and proposes to take with respect thereto.   Each notice pursuant to Section 6.03(a) shall describe with particularity any and all provisions of  this Agreement and any other Loan Document that have been breached.         6.04  Payment of Taxes.  Pay and discharge as the same shall become due and payable,  all Tax  liabilities, assessments and governmental charges or levies upon  it or its properties or  assets, unless the same are being contested in good faith by appropriate proceedings diligently  conducted and adequate reserves in accordance with GAAP are being maintained by the Borrower  or such Subsidiary.                                         83                                         13227198v7 27112.00011   

 

         6.05  Preservation of Existence, Etc.  (a) Preserve, renew and maintain in full force and  effect its legal existence and good standing under the Laws of the jurisdiction of its organization  except in a transaction permitted by Section 7.04 or 7.05; (b) take all reasonable action to maintain  all rights, privileges, permits, licenses and franchises necessary or desirable in the normal conduct  of its business, except to the extent that failure to do so could not reasonably be expected to have  a Material Adverse Effect; and (c) preserve or renew all of its registered patents, trademarks, trade  names and service marks, the non-preservation of which could reasonably be expected to have a  Material Adverse Effect.         6.06  Maintenance of Properties.  (a) Maintain, preserve and protect all of its material  properties and equipment necessary in the operation of its business in good working order and  condition, ordinary wear and tear excepted; (b) make all necessary repairs thereto and renewals  and replacements thereof except where the failure to do so could not reasonably be expected to  have a Material  Adverse Effect; and (c) use the standard of care typical  in the  industry  in the  operation and maintenance of its facilities.         6.07  Maintenance  of  Insurance.  Maintain  with  financially  sound  and  reputable  insurance companies not Affiliates of the Borrower, insurance with respect to its Property and  business against loss or damage of the kinds customarily insured against by Persons engaged in  the same or similar business, of such types and in such amounts as are customarily carried under  similar circumstances by such other Persons.         6.08  Compliance with Laws.  Comply in all material respects with the requirements of  all Applicable Laws and all orders, writs, injunctions and decrees applicable to it or to its business  or  property,  except  in  such  instances  in  which  (a) such  requirement  of  Law  or  order,  writ,  injunction  or  decree  is  being  contested  in  good  faith  by  appropriate  proceedings  diligently  conducted;  or (b) the  failure  to  comply  therewith  could  not  reasonably  be  expected  to  have  a  Material Adverse Effect.         6.09  Books and Records.  (a) Maintain proper books of record and account, in which  full, true and correct entries in conformity with GAAP or SAP, as the case may be, consistently  applied shall be made of all financial transactions and matters involving the assets and business of  the Borrower or such Subsidiary, as the case may be; and (b) maintain such books of record and  account in material conformity with all applicable requirements of any Governmental Authority  having regulatory jurisdiction over the Borrower or such Subsidiary, as the case may be.         6.10  Inspection  Rights.  Permit  representatives  and  independent  contractors  of  the  Administrative Agent and each Lender to visit and inspect any of its properties, to examine its  corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to  discuss  its  affairs,  finances  and  accounts  with  its  directors,  officers,  and  independent  public  accountants, all at such reasonable times during normal business hours and as often as may be  reasonably desired, upon reasonable advance notice to the Borrower; provided, however, that when  an Event of Default exists the Administrative  Agent or any  Lender (or any of their respective  representatives or independent contractors) may  do any of the  foregoing at the expense of the  Borrower at any time during normal business hours and without advance notice.         6.11  Use  of  Proceeds.  Use  the  proceeds  of  the  Credit  Extensions  (a) to  repay  all  obligations in respect of the Existing Credit Agreement, and (b) for general corporate purposes,                                        84                                         13227198v7 27112.00011   

 

   including, without limitation, the issuance of letters of credit for the benefit of ceding insurance  companies which are Subsidiaries of the Borrower, not in contravention of any Law or of any Loan  Document.         6.12  Further Assurances.  At any time or from time to time upon reasonable request  by the Administrative Agent, the Borrower shall or shall cause any of the Borrower’s Subsidiaries  to  execute  and  deliver  such  further  documents  and  do  such  other  acts  and  things  as  the  Administrative  Agent  may  reasonably  request  in  order  to  effect  fully  the  purposes  of  this  Agreement  and  the  other  Loan  Documents  and  to  provide  for  payment  of  the  Obligations  in  accordance with the terms of this Agreement and the other Loan Documents.  Without limiting the  foregoing, promptly upon the request of the Administrative Agent, each Loan Party shall execute,  acknowledge,  deliver  and  record  and  do  any  and  all  such  further  acts  and  deeds  as  the  Administrative Agent may reasonably request from time to time in order to ensure that the Secured  L/C  Obligations  (or,  as  applicable,  other  Obligations)  are  secured  by  a  first  priority  perfected  interest in the assets of the applicable Loan Party stated to be pledged to secure such Secured L/C  Obligations (or, as applicable, other Obligations) pursuant to the applicable Security Agreement  and to perfect and maintain the validity, effectiveness and priority of the Security Agreement and  the Liens intended to be created thereby. Notwithstanding any provision of a Control Agreement  to the contrary, without the prior written consent of the Administrative Agent, no Loan Party shall  give directions or entitlement orders, as applicable, to Bank of America to make a delivery to any  Loan Party or any other Person of assets or properties (other than dividends and interest on the  Eligible Collateral) from the Collateral Account except in connection with the sale, investment or  reinvestment of Eligible Collateral the proceeds of which will  be deposited into the Collateral  Account.  The Administrative Agent, on behalf of the Lenders, agrees that provided (a) no Default  exists and is continuing and (b) after giving effect to the proposed delivery, the Borrowing Base is  equal to or in excess of the Secured L/C Obligations, the Administrative Agent shall consent to  any such delivery within one Business Day after such request.         6.13  Collateral Requirements.  The Borrower shall cause there to be Eligible Collateral  of the Borrower in the Collateral Account such that the Borrowing Base is at all times equal to or  greater than the Secured L/C Obligations.  If at any time the Secured L/C Obligations exceed the  Borrowing Base, the Borrower shall as promptly as possible (and  in any event within two (2)  Business Days) deposit into the Collateral Account Eligible Collateral of the Borrower or reduce  the  Secured  L/C  Obligations,  or  a  combination  of  the  foregoing,  in  an  amount  sufficient  to  eliminate such excess.         6.14  Conduct of Insurance Business.  Cause each Significant Insurance Subsidiary to  (a) carry on or otherwise be associated with the business of a licensed insurance carrier and (b) do  all things necessary to renew, extend and continue in effect all Licenses which may at any time  and  from  time  to  time  be  necessary  for  such  Significant  Insurance  Subsidiary  to  operate  its  insurance business  in compliance with all  Applicable  Laws; provided, however, that any  such  Significant Insurance Subsidiary may withdraw from one or more states as an admitted insurer or  change the state of its domicile, if such withdrawal or change is in the best interests of the Borrower  and such Significant Insurance Subsidiary and could not reasonably be expected to have a Material  Adverse Effect.  TMK will (a) only provide reinsurance to Ceding Companies, (b) only engage in  the insurance business in which it is engaged or licensed as of the Effective Date, (c) do all things  necessary to remain duly incorporated, validly existing and in good standing in its jurisdiction of                                         85                                         13227198v7 27112.00011   

 

   formation, and (d) do all things necessary to renew, extend and continue  in effect all Licenses  which may at any time and from time to time be necessary for it to operate its insurance business  in compliance with all Applicable Laws.  TMK will not change its jurisdiction of domicile without  the prior written consent of the Required Lenders.  The Borrower will cause TMK to be and remain  a Wholly-Owned Subsidiary and to be at all times Solvent.         6.15  Anti-Corruption Laws; Sanctions. Conduct its businesses in compliance in all  material respects with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery  Act  2010,  and  other  applicable  anti-corruption  legislation  in  other  jurisdictions  and  with  all  applicable  Sanctions,  and  maintain  policies and  procedures  designed  to  promote  and  achieve  compliance with such laws and Sanctions.                                   ARTICLE VII                                                                      NEGATIVE COVENANTS         So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation  hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding:         7.01  Liens.  The Borrower shall not, nor shall it permit any Subsidiary to, directly or  indirectly, create, incur, assume or suffer to  exist any  Lien upon any of  its property, assets or  revenues, whether now owned or hereafter acquired, other than: (a) Liens pursuant to any Loan  Document,  (b)  Liens  securing  loans,  funding  agreements  and  guaranteed  investment  contracts  entered into by to any Insurance Subsidiary with any FHLB pursuant to a membership in such  FHLB  in  the  ordinary  course  of  business  in the  aggregate  principal  amount  not  to  exceed  $1,500,000,000 at  any time outstanding and (c) other Liens securing Indebtedness, the sum of  which Indebtedness plus all Indebtedness permitted pursuant to Section 7.02(g) shall not exceed  $400,000,000 in aggregate principal amount.         7.02  Subsidiary  Indebtedness.   The  Borrower  shall  not permit  any  Subsidiary  to,  directly or indirectly, create, incur, assume or suffer to exist any Indebtedness for borrowed money  or any obligations of such Subsidiary evidenced by bonds, debentures, notes, loan agreements or  other  similar  instruments,  other  than  (a) Indebtedness  pursuant  to  any  Loan  Document,  (b)  unsecured  Indebtedness  of  any  Subsidiary  owing  to  the  Borrower  or  unsecured  Indebtedness  (including  Guarantees)  of  any  Subsidiary  owing  to  another  Subsidiary  of  the  Borrower,  (c)  unsecured Indebtedness of any Subsidiary of the Borrower outstanding at the time such Subsidiary  is  acquired  by the  Borrower  or  any  other  Subsidiary  of  the  Borrower,  including  amendments  thereof (provided that such Indebtedness shall have not been created in contemplation of or in  connection with such Person becoming a Subsidiary, the amount thereof is not thereafter increased  and the obligor of such Indebtedness is not thereafter changed), (d) unsecured Indebtedness of any  Subsidiary of the Borrower that is a special purpose finance entity that does not own any assets  (other  than  those  assets  consistent  with  its  limited  purpose  status)  and  that  does  not  loan  the  proceeds of such Indebtedness to another Subsidiary, (e) unsecured Indebtedness of any Subsidiary  of the Borrower constituting letters of credit issued for insurance regulatory purposes (including,  for the avoidance of doubt, for reserve credit and required solvency ratio purposes) and for which  adequate insurance reserves or other appropriate provisions consistent with such Subsidiary’s past  practice  has  been  made therefor, (f) Indebtedness consisting of  loans, funding agreements and  guaranteed  investment  contracts  entered  into  by  to  any  Insurance  Subsidiary  with  any  FHLB                                        86                                         13227198v7 27112.00011   

 

   pursuant  to  a  membership  in  such  FHLB  in  the  ordinary  course  of  business  in  the  aggregate  principal amount not to exceed $1,500,000,000 at any time outstanding and (g) other Indebtedness,  the sum of which Indebtedness plus all Indebtedness incurred by the Borrower or any Subsidiary  secured by Liens permitted pursuant to Section 7.01(c) shall not exceed $400,000,000 in aggregate  principal amount.         7.03  Acquisitions.  The Borrower shall not, nor shall it permit any Subsidiary to, make  any Acquisitions, except Permitted Acquisitions.         7.04  Fundamental Changes.  The Borrower shall not, nor shall it permit any Subsidiary  to, merge, dissolve, liquidate, or consolidate with or into another Person, except that, so long as  no Default exists or would result therefrom:               (a)   Any  Subsidiary  may  merge  with  (i) the  Borrower, provided that  the        Borrower shall  be the continuing or surviving Person, or (ii) any one or more Wholly-       Owned Subsidiaries; and               (b)   The Borrower or any Subsidiary may merge or consolidate with or into any        other Person, provided that the Borrower or such Subsidiary shall be the continuing or the        surviving Person.         Notwithstanding anything in this Section 7.04 to the contrary, TMK shall not merge or  consolidate with or into any other Person.         7.05  Dispositions.  The Borrower shall not, nor shall it permit any Subsidiary to, make  any  Disposition  or  series  of  related  Dispositions  or  enter  into  any  agreement  to  make  any  Disposition(s) of all or substantially all of the Property of the Borrower and its Subsidiaries, taken  as a whole.         7.06  Use of Proceeds.  Use the proceeds of any Credit Extension, whether directly or  indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock  (within the meaning of Regulation U of the FRB) or to extend credit to others for the purpose of  purchasing or carrying margin stock or to refund indebtedness originally incurred for such purpose.         7.07  Financial Covenants.               (a)   Consolidated  Net Worth.   The  Borrower  will  maintain  at  all  times        Consolidated Net Worth equal to not less than the sum of (i) $4,000,000,000, plus (ii) 50%        of the Net Proceeds received by the Borrower and its Subsidiaries from the issuance and        sale of Equity Interests of the Borrower or any Subsidiary (other than the issuance to the        Borrower or a Wholly-Owned Subsidiary), including any conversion of debt securities of        the Borrower or any Subsidiary into Equity Interests after December 31, 2019, other than        issuances of securities pursuant to any employee equity compensation plan or agreement or        other employee equity compensation arrangement, any employee benefit plan or agreement        or other employee benefit arrangement or any nonemployee director equity compensation        plan  or  agreement  or  other  non-employee  director  equity  compensation  arrangement  or        pursuant to the exercise or vesting of any employee or director stock options, restricted stock        or restricted stock units, warrants or other equity awards.                                        87                                         13227198v7 27112.00011   

 

               (b)   Ratio of Consolidated Indebtedness to Consolidated Capitalization.  The        Borrower will maintain at all times a ratio of Consolidated Indebtedness to Consolidated        Capitalization of not greater than 0.40 to 1.0.         7.08  Sanctions.  Directly or indirectly, use the proceeds of any Credit Extension, or lend,  contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or  other Person, to fund any activities of or business with any Person that, at the time of such funding,  is the subject of Sanctions, or in any other manner that will result in a violation by any Person  (including  any  Person  participating  in  the  transaction,  whether  as  Lender,  Arranger,  Administrative Agent, or otherwise) of Sanctions.         7.09  Anti-Corruption  Laws.  Directly  or  indirectly  use  the  proceeds  of  any Credit  Extension for any purpose which would breach the United States Foreign Corrupt Practices Act of  1977, the UK Bribery Act 2010, and other anti-corruption legislation in other jurisdictions.                                   ARTICLE VIII                                                               EVENTS OF DEFAULT AND REMEDIES         8.01  Events of Default.  Any of the following shall constitute an Event of Default:               (a)   Non-Payment.  Any Loan Party fails to pay (i) when and as required to be        paid herein, any amount of principal of any Loan or any L/C Obligation, or (ii) within three        (3) days after the same becomes due, any interest on any Loan or on any L/C Obligation,        or any fee due hereunder, or (iii) within five (5) days after the same becomes due, any other        amount payable hereunder or under any other Loan Document; or               (b)   Specific Covenants.  The Borrower or any Subsidiary fails to perform or        observe any term, covenant or agreement contained in any of Section 6.03, 6.05, 6.10, 6.11,        6.12, 6.13 or Article VII; or               (c)   Other Defaults.  The Borrower or any Subsidiary fails to perform or observe        any other covenant or agreement (not specified in subsection (a) or (b) above) contained in        any Loan Document on its part to be performed or observed and such failure continues for        thirty (30) days; or               (d)   Representations  and  Warranties.   Any  representation,  warranty,        certification or statement of fact made or deemed made by or on behalf of any Loan Party        herein, in any other Loan Document, or in any document delivered in connection herewith        or therewith shall be incorrect or misleading when made or deemed made in any material        respect; or               (e)   Cross-Default.  (i) The Borrower or any Subsidiary (A) fails to make any        payment when due (whether by scheduled  maturity, required prepayment, acceleration,        demand,  or  otherwise)  in  respect  of  any  Indebtedness  or  Guarantee  (other  than        Indebtedness  hereunder and Indebtedness under Swap Contracts) under the Term Loan        Agreement or having  an  aggregate  principal  amount  (including  undrawn  committed or        available amounts and including amounts owing to all creditors under any combined or                                        88                                         13227198v7 27112.00011   

 

                     syndicated  credit  arrangement)  of  more  than  $50,000,000,  or  (B) fails  to  observe  or       perform any other agreement or condition relating to any such Indebtedness or Guarantee       or contained in any instrument or agreement evidencing, securing or relating thereto, or       any other event occurs, the effect of which default or other event is to cause, or to permit       the  holder  or  holders  of  such  Indebtedness  or  the  beneficiary  or  beneficiaries  of  such       Guarantee  (or  a trustee  or  agent on  behalf  of  such  holder  or  holders  or  beneficiary  or       beneficiaries)  to  cause,  with  the  giving  of  notice  if  required,  such  Indebtedness  to  be       demanded  or  to  become  due  or  to  be  repurchased,  prepaid,  defeased  or  redeemed       (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such       Indebtedness to be made, prior to its stated maturity, or such Guarantee to become payable       or Cash Collateral in respect thereof to be demanded; or (ii) there occurs under any Swap       Contract an Early Termination Date (as defined  in such Swap Contract) resulting  from       (A) any  event  of  default  under  such  Swap  Contract  as  to  which  the  Borrower  or  any       Subsidiary  is  the  Defaulting  Party  (as  defined  in  such  Swap  Contract)  or  (B) any       Termination Event (as so defined) under such Swap Contract as to which the Borrower or       any  Subsidiary  is  an  Affected  Party  (as  so  defined)  and,  in  either  event,  the  Swap       Termination Value owed by any Loan Party as a result thereof is greater than $50,000,000;       or              (f)   Insolvency  Proceedings,  Etc.   The  Borrower  or  any  of  its  Subsidiaries       institutes or consents to the institution of any proceeding under any Debtor Relief Law, or       makes  an  assignment  for  the  benefit  of  creditors;  or  applies  for  or  consents  to  the       appointment of  any receiver, trustee,  custodian,  conservator,  liquidator,  rehabilitator or       similar officer for it or for all or any material part of its property; or any receiver, trustee,       custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the       application  or  consent  of  such  Person  and  the  appointment  continues  undischarged  or       unstayed for 60 calendar days; or any proceeding under any Debtor Relief Law relating to       any such Person or to all or any material part of its property is instituted without the consent       of such Person and continues undismissed or unstayed for 60 calendar days, or an order for       relief is entered in any such proceeding; or              (g)   Inability to Pay Debts; Attachment.  (i) The Borrower or any Subsidiary       becomes unable or admits in writing its inability or fails generally to pay its debts as they       become due, or (ii) any writ or warrant of attachment or execution or similar process is       issued or levied against all or any material part of the property of any such Person and is       not released, vacated or fully bonded within thirty (30) days after its issue or levy; or              (h)   Judgments.  There is entered against the Borrower or any Subsidiary (i) a       final  judgment  or  order  for  the  payment  of  money  in an  aggregate  amount  exceeding       $50,000,000 (to the extent not covered by independent third-party insurance as to which       the  insurer  does  not  dispute  coverage),  or  (ii) any  one  or  more  non-monetary  final       judgments  that  have,  or  could  reasonably  be  expected  to  have,  individually  or  in  the       aggregate, a Material Adverse Effect and, in either case, (A) enforcement proceedings are       commenced by any creditor upon such judgment or order, or (B) there is a period of 45       consecutive  days  during  which  a  stay  of  enforcement  of  such  judgment,  by  reason  of       payment, a pending appeal or otherwise, is not in effect; or                                        89                                        13227198v7 27112.00011                

 

               (i)   ERISA.   (i) An  ERISA  Event  occurs  with  respect  to  a  Pension  Plan  or        Multiemployer Plan which has resulted or could reasonably be expected to result in liability        of the Borrower under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the        PBGC in an aggregate amount in excess of $50,000,000, or (ii) the Borrower or any ERISA        Affiliate fails to pay when due, after the expiration of any applicable grace period, any        installment payment with respect to its withdrawal liability under Section 4201 of ERISA        under a Multiemployer Plan in an aggregate amount in excess of $25,000,000; or               (j)   Invalidity of Loan Documents.  Any Loan Document, at any time after its        execution and delivery and for any reason other than as expressly permitted hereunder or        thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect;        or any Loan Party or any other Person contests in any manner the validity or enforceability        of any Loan Document; or any  Loan Party denies that  it has any or further  liability or        obligation under any Loan Document, or purports to revoke, terminate or rescind any Loan        Document; or any Loan Document shall for any reason cease to create a valid and perfected        first priority Lien on, or security interest in, any of the Collateral purported to be covered        thereby, in each case other than in accordance with the express terms hereof or thereof; or               (k)   Change of Control.  There occurs any Change of Control of the Borrower        or the Borrower shall cease to own 100% of the outstanding Equity Interests of TMK; or               (l)   Guaranty.  The Guaranty shall fail to remain in full force or effect or any        action  shall  be  taken  by  the  Borrower,  any  of  its  Subsidiaries  or  any  Governmental        Authority  to  discontinue  or  to assert  the  invalidity  or  unenforceability  thereof,  or  the        Borrower denies that it has any further liability hereunder, or gives notice to such effect;        or               (m)   Licenses.  Any License of any Insurance Subsidiary held by such Insurance        Subsidiary on the Effective Date or acquired by such Insurance Subsidiary thereafter, the        loss of which would have, in the reasonable judgment of the Lenders, a Material Adverse        Effect, (i) shall be revoked by a final non-appealable order by the state which shall have        issued  such  License,  or  any  action  (whether  administrative  or  judicial)  to  revoke  such        License shall have been commenced against such Insurance Subsidiary which shall not        have  been  dismissed  or  contested  in  good  faith  within  thirty  (30)  days  of  the        commencement thereof, (ii) shall be suspended by such state for a period in excess of thirty        (30) days or (iii) shall not be reissued or renewed by such state upon the expiration thereof        following application for such reissuance or renewal by such Insurance Subsidiary.  TMK        shall cease to be duly licensed as a reinsurance company under Bermuda law.         8.02  Remedies  Upon  Event  of  Default.  If  any  Event  of  Default  occurs  and  is  continuing, the Administrative Agent shall, at the request of, or may, with the consent of, the  Required Lenders, take any or all of the following actions:               (a)   declare the commitment of each Lender to make Loans and any obligation        of the Fronting Banks and the L/C Issuers to make L/C Credit Extensions to be terminated,        whereupon such commitments and obligation shall be terminated;                                         90                                         13227198v7 27112.00011   

 

               (b)   declare the unpaid principal amount of all outstanding Loans, all interest        accrued and unpaid thereon, and all other amounts owing or payable hereunder or under        any  other  Loan  Document  to  be  immediately  due  and  payable,  without  presentment,        demand, protest or other notice of any kind, all of which are hereby expressly waived by        the Loan Parties;               (c)   require that each Loan Party (in addition to remaining in compliance with        Section 6.13 with  respect  to  Secured  Letters  of  Credit)  Cash  Collateralize  its  L/C        Obligations in respect of all Unsecured Letters of Credit in an amount equal to the then        Outstanding Amount thereof;               (d)   require that the Eligible Collateral maintained in any Collateral Account to        comply with Section 6.13 consist solely of Cash or such other Eligible Collateral as the        Administrative Agent may require;               (e)   direct the Applicable Issuing Party of each outstanding Letter of Credit not        to permit any further renewal of such Letter of Credit (in which case, pursuant to Section        2.03(b)(iii), such Applicable Issuing Party shall not permit further renewal of such Letter        of Credit); and               (f)   exercise on behalf of  itself, the L/C Issuers, the Fronting Banks and the        Lenders all rights and remedies available to it, the L/C Issuers, the Fronting Banks and the        Lenders under the Loan Documents;   provided, however, that upon the occurrence of an actual or deemed entry of an order for relief  with respect to any Loan Party under the Bankruptcy Code of the United States, the obligation of  each Lender to make Loans and any obligation of any L/C Issuer or Fronting Bank to make L/C  Credit Extensions shall automatically terminate, the unpaid principal amount of all outstanding  Loans and all interest and other amounts as aforesaid shall automatically become due and payable,  and the obligation of the Loan Parties to Cash Collateralize the L/C Obligations as aforesaid shall  automatically become effective, in each case without further act of the Administrative Agent or  any Lender.         8.03  Application of Funds.  After the exercise of remedies provided for in Section 8.02  (or  after  the  Loans  have  automatically  become  immediately  due  and  payable  and  the  L/C  Obligations have automatically been required to be Cash Collateralized as set forth in the proviso  to Section 8.02), any amounts received or held on account of the Obligations shall be applied by  the Administrative Agent in the following order:               First, to payment of that portion of the Obligations constituting fees, indemnities,        expenses and other amounts (including fees, charges and disbursements of counsel to the        Administrative  Agent  and  amounts  payable  under Article III)  payable  to  the        Administrative Agent in its capacity as such;               Second, to payment of that portion of the Obligations constituting fees, indemnities        and  other  amounts  (other  than  principal  and  interest)  payable  to  the  Lenders,  the  L/C        Administrator  and  the  Fronting  Banks  (including  fees,  charges  and  disbursements  of        counsel to the respective Lenders, the L/C Administrator and the Fronting Banks (including                                        91                                         13227198v7 27112.00011   

 

         fees  and  time  charges  for  attorneys  who  may  be  employees  of  any  Lender,  the  L/C        Administrator  or  the  Fronting  Banks)  and  amounts  payable  under Article III),  ratably        among them in proportion to the amounts described in this clause Second payable to them;               Third, to payment of that portion of the Obligations constituting accrued and unpaid        interest on the Loans, L/C Borrowings and other Obligations, ratably among the Lenders        and the Fronting Banks in proportion to the respective amounts described in this clause        Third payable to them;               Fourth, to payment of that portion of the Obligations constituting unpaid principal        of the Loans and L/C Borrowings and to the Administrative Agent for the account of (x)        the Fronting Banks, in the case of Fronted Letters of Credit and (y) the Lenders, in the case        of  Several  Letters  of  Credit,  to  Cash  Collateralize  that  portion  of  L/C  Obligations        comprised  of  the  aggregate  undrawn  amount  of  Letters  of  Credit,  ratably  among  the        Lenders and the Fronting Banks in proportion to the respective amounts described in this        clause Fourth held by them;               Fifth, to payment of Swap Obligations, ratably among the Lenders (or any Affiliate        of any Lender entering into a Swap Contract provided that such Lender was a Lender at        the time such Swap Contract was entered into) in proportion to the respective amounts        described in this clause Fifth held by them; and               Last, the balance, if any, after all of the Obligations have been indefeasibly paid in        full, to the Borrower or as otherwise required by Law.   Subject to Sections 2.03(c) and 2.15, amounts used to Cash Collateralize the aggregate undrawn  amount of Letters of Credit pursuant to clause Fifth above shall be applied to satisfy drawings  under such Letters of Credit as they occur.  If any amount remains on deposit as Cash Collateral  after all Letters of Credit have either been fully drawn or expired, such remaining amount shall be  applied to the other Obligations, if any, in the order set forth above.                                    ARTICLE IX                                                                     ADMINISTRATIVE AGENT         9.01  Appointment and Authority.         Each of the Lenders, the L/C Administrator and each Fronting Bank hereby irrevocably  appoints Bank of America to act on its behalf as the Administrative Agent hereunder and under  the other Loan Documents and authorizes the Administrative Agent to take such actions on its  behalf and to exercise such powers as are delegated to the Administrative  Agent by the terms  hereof or thereof, together with such actions and powers as are reasonably incidental thereto.  The  provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders, the  L/C Administrator and each Fronting Bank, and neither the Borrower nor any other Loan Party  shall have rights as a third party beneficiary of any of such provisions. It is understood and agreed  that the use of the term “agent” herein or in any other Loan Documents (or any other similar term)  with  reference  to  the  Administrative  Agent  is  not  intended  to  connote  any  fiduciary  or  other  implied (or express) obligations arising under agency doctrine of any Applicable Law. Instead                                        92                                         13227198v7 27112.00011   

 

   such  term  is  used  as  a  matter  of  market  custom,  and  is  intended  to  create  or  reflect  only  an  administrative relationship between contracting parties.         9.02  Rights as a Lender.  The Person serving as the Administrative Agent hereunder  shall have the same rights and powers in its capacity as a Lender as any other Lender and may  exercise  the  same  as though  it  were  not  the  Administrative  Agent  and  the  term  “Lender”  or  “Lenders” shall, unless otherwise expressly  indicated or unless the context otherwise requires,  include the Person serving as the Administrative Agent hereunder in its individual capacity.  Such  Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the  financial advisor or in any other advisory capacity for and generally engage in any kind of business  with the Borrower or any Subsidiary or other Affiliate thereof as  if  such Person were  not the  Administrative Agent hereunder and without any duty to account therefor to the Lenders.         9.03  Exculpatory  Provisions.  The  Administrative  Agent or the  Joint  Arrangers,  as  applicable, shall not have any duties or obligations except those expressly set forth herein and in  the other Loan Documents.  Without limiting the generality of the foregoing, the Administrative  Agent or the Joint Arrangers, as applicable:               (a)   shall not be subject to any fiduciary or other implied duties, regardless of        whether a Default has occurred and is continuing;               (b)   shall  not  have  any  duty  to  take  any  discretionary  action  or  exercise  any        discretionary  powers,  except  discretionary  rights  and  powers  expressly  contemplated        hereby  or  by  the  other  Loan  Documents  that  the  Administrative  Agent  is  required  to        exercise as directed in writing by the Required Lenders (or such other number or percentage        of the Lenders as shall be expressly provided for herein or in the other Loan Documents),        provided that the Administrative Agent shall not be required to take any action that, in its        opinion or the opinion of its counsel, may expose the Administrative Agent to liability or        that is contrary to any Loan Document or Applicable Law, including for the avoidance of        doubt any action that may be in violation of the automatic stay under any Debtor Relief        Law or that may effect a forfeiture, modification or termination of property of a Defaulting        Lender in violation of any Debtor Relief Law;               (c)   shall not have any duty or responsibility to disclose, and shall not be liable        for the failure to disclose, to any Lender, any credit or other information concerning the        business, prospects, operations, property, financial and other condition or creditworthiness        of  the  Borrower  or  any  of  its Affiliates,  that  is  communicated  to,  obtained  or  in  the        possession of, the Administrative Agent, any Joint Arranger or any of their Related Parties        in any capacity, except for notices, reports and other documents expressly required to be        furnished to the Lenders by the Administrative Agent herein;               (d)   shall not be liable for any action taken or not taken by it (i) with the consent        or  at  the  request  of  the  Required  Lenders  (or  such  other  number  or  percentage  of  the        Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith        shall  be  necessary, under the circumstances as provided  in Sections 10.01 and 8.02) or        (ii) in the absence of its own gross negligence or willful misconduct as determined by a        court of competent jurisdiction by final and nonappealable judgement.  The Administrative        Agent  shall  be  deemed  not  to  have  knowledge  of  any  Default  unless  and  until  notice                                        93                                         13227198v7 27112.00011   

 

         describing such Default is given in writing to the Administrative Agent by a Loan Party, a        Lender or a Fronting Bank; and               (e)   shall not be responsible for or have any duty to ascertain or inquire into        (i) any statement, warranty or representation made in or in connection with this Agreement        or any other Loan Document, (ii) the contents of any certificate, report or other document        delivered  hereunder  or  thereunder  or  in  connection  herewith  or  therewith,  (iii) the        performance  or  observance  of  any  of  the  covenants,  agreements  or  other  terms  or        conditions set forth herein or therein or the occurrence of any Default, (iv) the validity,        enforceability, effectiveness or genuineness of this Agreement, any other Loan Document        or any other agreement, instrument or document or (v) the satisfaction of any condition set        forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly        required to be delivered to the Administrative Agent.         9.04  Reliance by Administrative Agent.  The Administrative Agent shall be entitled to  rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent,  statement, instrument, document or other writing (including any electronic message, Internet or  intranet website posting or other distribution) believed by it to be genuine and to have been signed,  sent or otherwise authenticated by the proper Person.  The Administrative Agent also may rely  upon any statement made to it orally or by telephone and believed by it to have been made by the  proper Person, and shall not incur any liability for relying thereon.  In determining compliance  with any condition hereunder to the making of a Loan, or the issuance of a Letter of Credit, that  by its terms must be fulfilled to the satisfaction of a Lender or a Fronting Bank, the Administrative  Agent may presume that such condition is satisfactory to such Lender or such Fronting Bank unless  the Administrative  Agent shall  have received notice to the contrary  from such Lender or such  Fronting Bank prior to the making of such Loan or the issuance of such Letter of Credit.  The  Administrative Agent may consult with legal counsel (who may be counsel for any Loan Party),  independent accountants and other experts selected by it, and shall not be liable for any action  taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.         9.05  Delegation of Duties.  The Administrative Agent may perform any and all of its  duties  and exercise  its rights and powers hereunder or under any other Loan Document by or  through any one or more sub-agents appointed by the Administrative Agent.  The Administrative  Agent and any such sub-agent may perform any and all of its duties and exercise its rights and  powers by or through their respective Related Parties.  The exculpatory provisions of this Article  shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any  such sub-agent, and shall apply to their respective activities in connection with the syndication of  the  credit  facilities  provided  for  herein  as  well  as  activities  as  Administrative  Agent.  The  Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents  except to the extent that a court of competent jurisdiction determines in a final and non appealable  judgment that the Administrative Agent acted with gross negligence or willful misconduct in the  selection of such sub-agents.         9.06  Resignation of Administrative Agent.  The Administrative Agent may at any time  give notice of its resignation to the Lenders, the Fronting Banks, the L/C Administrator and the  Loan Parties.  Upon receipt of any such notice of resignation, the Required Lenders shall have the  right, in consultation with the Borrower, to appoint a successor, which shall be a bank with an  office in the United States, or an Affiliate of any such bank with an office in the United States.  If                                        94                                         13227198v7 27112.00011   

 

   no such successor shall have been so appointed by the Required Lenders and shall have accepted  such  appointment  within  30 days  after  the  retiring  Administrative  Agent  gives  notice  of  its  resignation,  then  the  retiring  Administrative  Agent  may  on  behalf  of  the  Lenders,  the  L/C  Administrator  and  the  Fronting  Banks,  appoint  a  successor  Administrative  Agent  meeting  the  qualifications  set  forth  above; provided that  if  the  Administrative  Agent  shall  notify  the  Loan  Parties  and  the  Lenders  that  no  qualifying  Person  has  accepted  such  appointment,  then  such  resignation shall nonetheless become effective in accordance with such notice and (1) the retiring  Administrative Agent shall be discharged from its duties and obligations hereunder and under the  other Loan Documents (except that in the case of any collateral security held by the Administrative  Agent on behalf of the Lenders or the Fronting Banks under any of the Loan Documents, the  retiring Administrative Agent shall continue to hold such collateral security until such time as a  successor  Administrative  Agent  is  appointed)  and  (2) all  payments,  communications  and  determinations provided to be made by, to or through the Administrative Agent shall instead be  made by or to each Lender, the L/C Administrator and each Fronting Bank directly, until such time  as the Required Lenders appoint a successor Administrative Agent as provided for above in this  Section.  Upon the acceptance of a successor’s appointment as Administrative Agent hereunder,  such successor shall succeed to and become vested with all of the rights, powers, privileges and  duties of the retiring (or retired) Administrative Agent, and the retiring Administrative Agent shall  be discharged from all of its duties and obligations hereunder or under the other Loan Documents  (if not already discharged therefrom as provided above in this Section).  The fees payable by the  Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor  unless  otherwise  agreed  between  the  Borrower  and  such  successor.   After  the  retiring  Administrative Agent’s resignation hereunder and under the other Loan Documents, the provisions  of  this  Article  and Section 10.04 shall  continue  in  effect  for  the  benefit  of  such  retiring  Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions  taken or omitted to be taken by any of them while the retiring Administrative Agent was acting as  Administrative Agent.         Any resignation by Bank of America as Administrative Agent pursuant to this Section shall  also  constitute  its  resignation  as  a  Fronting  Bank,  L/C  Administrator  and  Swing  Line  Lender.   Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, (a) such  successor shall succeed to and become vested with all of the rights, powers, privileges and duties  of the retiring Fronting Bank, L/C Administrator and Swing Line Lender, (b) the retiring Fronting  Bank, L/C Administrator and Swing Line Lender shall be discharged from all of their respective  duties  and  obligations  hereunder  or  under  the  other  Loan  Documents,  and  (c) the  successor  Fronting Bank and L/C Administrator shall issue letters of credit in substitution for the Letters of  Credit, if any, outstanding at the time of such succession or make other arrangements satisfactory  to the retiring Fronting Bank and L/C Administrator to effectively assume the obligations of the  retiring  Fronting Bank and L/C Administrator with respect to such Letters of Credit.         9.07  Non-Reliance on Administrative Agent and Other Lenders.  Each Lender, each  Fronting  Bank  and  the  L/C  Administrator  each expressly acknowledges  that none  of  the  Administrative Agent nor any Joint Arranger has made any representation or warranty to it, and  that  no  act  by  the  Administrative  Agent  or  any  Joint  Arranger  hereafter  taken,  including  any  consent to, and acceptance of any assignment or review of the affairs of the Borrower or any  Affiliate  thereof,  shall  be  deemed  to  constitute  any  representation  or  warranty  by  the  Administrative Agent or any Joint Arranger to any Lender as to any matter, including whether the                                         95                                         13227198v7 27112.00011   

 

   Administrative Agent or any Joint Arranger have disclosed material information in their (or their  Related Parties’) possession.  Each Lender represents to the Administrative Agent and each Joint  Arranger  that it  has,  independently  and  without  reliance  upon  the  Administrative  Agent,  any  Fronting Bank, L/C Administrator, Joint Arranger or any other Lender or any of their Related  Parties and based on such documents and information as it has deemed appropriate, made its own  credit analysis of, appraisal of, and investigation into, the business, prospects, operations, property,  financial and other condition and creditworthiness of the Loan Parties and their Subsidiaries, and  all applicable bank or other regulatory Laws relating to the transactions contemplated hereby, and  made  its  own decision  to  enter  into  this  Agreement and  to  extend  credit  to  the  Loan  Parties  hereunder.  Each Lender and each Fronting Bank also acknowledges that it will, independently  and without reliance upon the Administrative Agent, any Joint Arranger, any other Lender, any  other Fronting Bank or any of their Related Parties and based on such documents and information  as it shall from time to time deem appropriate, continue to make its own credit analysis, appraisals  and decisions in taking or not taking action under or based upon this Agreement, any other Loan  Document or any related agreement or any document furnished hereunder or thereunder, and to  make  such  investigations  as  it  deems  necessary  to  inform  itself  as  to  the  business,  prospects,  operations, property, financial and other condition and creditworthiness of the Loan Parties.  Each  Lender represents and warrants that (i) the Loan Documents set forth the terms of a commercial  lending  facility and (ii)  it is engaged  in  making, acquiring or holding commercial  loans  in the  ordinary  course  and  is  entering  into  this  Agreement  as  a  Lender  for  the  purpose  of  making,  acquiring or holding commercial loans and providing other facilities set forth herein as may be  applicable to such Lender, and not for the purpose of purchasing, acquiring or holding any other  type of financial instrument, and each Lender agrees not to assert a claim in contravention of the  foregoing. Each Lender represents and warrants that it is sophisticated with respect to decisions to  make, acquire and/or hold commercial loans and to provide other facilities set forth herein, as may  be  applicable  to  such  Lender,  and  either  it,  or  the  Person  exercising  discretion  in  making  its  decision to make, acquire and/or hold such commercial loans or to provide such other facilities, is  experienced  in  making,  acquiring  or  holding  such  commercial  loans  or  providing  such  other  facilities.         9.08  No Other Duties, Etc.  Anything herein to the contrary notwithstanding, none of  the Joint Arrangers, Co-Syndication Agents or Co-Documentation Agents listed on the cover page  hereof shall have any powers, duties or responsibilities under this Agreement or any of the other  Loan Documents, except in its capacity as applicable, as a Lender, Administrative Agent, L/C  Administrator or Fronting Bank hereunder.         9.09  Administrative Agent May File Proofs of Claim.  In case of the pendency of any  proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Loan  Party,  the  Administrative  Agent  (irrespective  of  whether  the  principal  of  any  Loan  or  L/C  Obligation shall then be due and payable as herein expressed or by declaration or otherwise and  irrespective of whether the Administrative Agent shall have made any demand on the Loan Parties)  shall be entitled and empowered, by intervention in such proceeding or otherwise               (a)   to file and prove a claim for the whole amount of the principal and interest        owing and unpaid in respect of the Loans, L/C Obligations and all other Obligations that        are owing and unpaid and to file such other documents as may be necessary or advisable        in order to  have the claims of the Lenders, Fronting Banks, L/C Administrator and the                                         96                                         13227198v7 27112.00011   

 

         Administrative  Agent  (including  any  claim  for the  reasonable  compensation,  expenses,        disbursements and advances of the Lenders, the Fronting Banks, L/C Administrator and        the Administrative Agent and their respective agents and counsel and all other amounts        due the Lenders, the Fronting Banks, L/C  Administrator and the Administrative  Agent        under Sections 2.03(i) and (j), 2.09 and 10.04) allowed in such judicial proceeding; and               (b)   to collect and receive any monies or other property payable or deliverable        on any such claims and to distribute the same;   and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in  any such judicial proceeding is hereby authorized by each Lender, each Fronting Bank and the L/C  Administrator  to  make  such  payments  to  the  Administrative  Agent  and,  in  the  event  that  the  Administrative Agent shall consent to the making of such payments directly to the Lenders and  the Fronting Banks or the L/C Administrator, to pay to the Administrative Agent any amount due  for the reasonable compensation, expenses, disbursements and advances of the  Administrative  Agent and  its agents and counsel, and any other amounts due the Administrative Agent under  Sections 2.09 and 10.04.         Nothing  contained  herein  shall  be  deemed  to  authorize  the  Administrative  Agent  to  authorize or consent to or accept or adopt on behalf of any Lender, the L/C Administrator or any  Fronting Bank any plan of reorganization, arrangement, adjustment or composition affecting the  Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect  of the claim of any Lender, the L/C Administrator or any Fronting Bank in any such proceeding.         9.10  No Other Duties, etc.  Anything herein to the contrary notwithstanding, none of  the Joint Arrangers, Joint Book Runners, Co-Syndication Agents, Co-Documentation Agents or  Managing Agents listed on the cover page hereof or Schedule or signature pages hereto shall have  any powers, duties or responsibilities under this Agreement or any of the other Loan Documents,  except in their capacity, as applicable, as the Administrative Agent, Swing Line Lender, LC Issuer,  L/C Administrator or Lender.         9.11  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, 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, the Commitments 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                                        97                                         13227198v7 27112.00011   

 

               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 Commitments and this Agreement,                     (iii) (A)  such  Lender  is  an  investment  fund  managed  by  a  “Qualified              Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B)              such Qualified Professional Asset Manager made the investment decision on behalf              of such Lender to enter into, participate in, administer and perform the Loans, the              Commitments  and  this  Agreement,  (C)  the  entrance  into,  participation  in,              administration  of  and  performance  of  the  Loans,  the  Commitments  and  this              Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of              PTE  84-14  and  (D) to  the  best  knowledge  of  such  Lender,  the  requirements  of              subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s              entrance into, participation in, administration of and performance of the Loans, the              Commitments and this Agreement, or                      (iv)  such other representation, warranty and covenant as may be agreed              in  writing  between  the  Administrative  Agent,  in  its  sole  discretion,  and  such              Lender.               (b)   In addition, unless either (1) sub-clause (i) in the immediately preceding        clause  (a)  is  true  with  respect  to  a  Lender  or  (2)  a  Lender  has  provided  another        representation,  warranty  and  covenant  in  accordance  with  sub-clause  (iv)  in  the        immediately preceding clause (a), such Lender further (x) represents and warrants, as of        the date such Person became a Lender party hereto, to, and (y) covenants, from the date        such Person became a Lender party hereto to the date such Person ceases being a Lender        party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of        doubt, to or for the benefit of the Borrower, 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, the Commitments and        this Agreement (including in connection with the reservation or exercise of any rights by        the Administrative Agent under this Agreement, any Loan Document or any documents        related hereto or thereto).                                    ARTICLE X                                                                         MISCELLANEOUS         10.01 Amendments, Etc.  No amendment or waiver of any provision of this Agreement  or any other Loan Document, and no consent to any departure by any Loan Party therefrom, shall  be effective unless in writing signed by the Required Lenders (or by the Administrative Agent at  the request and on behalf of the Required Lenders) and the Loan Parties, as the case may be, and  acknowledged by the Administrative Agent, and each such waiver or consent shall be effective  only in the specific instance and for the specific purpose for which given; provided, however, that  no such amendment, waiver or consent shall:                                        98                                         13227198v7 27112.00011   

 

                           (a)   waive any condition set forth in Section 4.01(a) without the written consent       of each Lender;              (b)   extend  or  increase  any  Commitment  of  any  Lender  (or  reinstate  any       Commitment  terminated  pursuant  to Section 8.02)  without  the  written  consent  of  such       Lender;              (c)   postpone any date fixed by this Agreement or any other Loan Document for       any payment of principal, interest, fees or other amounts due to the Lenders (or any of       them) hereunder or under any other Loan Document without the written consent of each       Lender directly affected thereby (except in connection with the waiver of applicability of       any post-default increase in interest rates (which waiver shall be effective with the consent       of the Required Lenders));              (d)   reduce the principal of, or the rate of interest specified herein on, any Loan       or L/C Borrowing, or (subject to clause (v) of the second proviso to this Section 10.01) any       fees or other amounts payable hereunder or under any other Loan Document without the       written consent of each Lender directly affected thereby; provided, however, that only the       consent of the Required Lenders shall be necessary (i) to amend the definition of “Default       Rate” or to waive any obligation of any Loan Party to pay interest or Letter of Credit Fees       at the Default Rate or (ii) to amend any financial covenant hereunder (or any defined term       used therein) even if the effect of such amendment would be to reduce the rate of interest       on any Loan or L/C Borrowing or to reduce any fee payable hereunder;              (e)   change Section 2.13 or Section 8.03 in a manner that would alter the pro       rata sharing of payments required thereby or change Section 2.06 in a manner that would       alter the pro rata allocation of reductions in the Aggregate Commitment, in the case of each       of the foregoing without the written consent of each Lender;              (f)   change  any  provision  of  this  Section or  the  definition  of  “Required       Lenders” or any other provision hereof specifying the number or percentage of Lenders       required  to  amend,  waive  or  otherwise  modify  any  rights  hereunder  or  make  any       determination or grant any consent hereunder, without the written consent of each Lender;              (g)   release all or substantially all of the Collateral in any transaction or series       of related transactions, without the written consent of each Lender; or              (h)   release the Guaranty provided in Section 10.19,        and, provided further, that (i) no amendment, waiver or consent shall, unless in writing and       signed by a Fronting Bank in addition to the Lenders required above, affect the rights or       duties of such Fronting Bank under this Agreement or any Issuer Document relating to any       Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall,       unless in writing and signed by the L/C Administrator in addition to the Lenders required       above, affect the rights or duties of the L/C Administrator under this Agreement or any       Issuer  Document  relating  to  any  Letter  of  Credit  issued  or  to  be  issued  by  it;  (iii) no       amendment, waiver or consent shall, unless in writing and signed by the Swing Line Lender       in addition to the Lenders required above, affect the rights or duties of the Swing Line                                       99                                        13227198v7 27112.00011                

 

                     Lender  under  this  Agreement;  (iv) no  amendment,  waiver  or  consent  shall,  unless  in       writing and signed by the Administrative Agent in addition to the Lenders required above,       affect the rights or duties of the Administrative Agent under this Agreement or any other       Loan Document; (v) the Fee Letters may be amended, or rights or privileges thereunder       waived, in a writing executed only by the parties thereto; and (vi) notwithstanding anything       herein to the contrary, no amendment or amendment and restatement of this Agreement       which is in all other respects approved by the Lenders in accordance with this Section 10.01       shall require the consent or approval of any Lender (A) which immediately after giving       effect to such amendment or amendment and restatement, shall have no Commitment or       other  obligation  to  maintain  or  extend  credit  under  this  Agreement  (as  so  amended  or       amended  and  restated),  including,  without  limitation,  any  obligation  in  respect  of  any       drawing  under  or  participation  in  any  Letter  of  Credit  and  (B)  which,  substantially       contemporaneously  with  the  effectiveness  of  such  amendment  or  amendment  and       restatement, is paid in full all amounts owing to it hereunder (including, without limitation       principal,  interest  and  fees,  but  excluding  contingent  obligations  that  are  not  due  and       payable and any amounts secured by collateral arrangements on terms and, as applicable,       from  a  financial  institution, that  are  satisfactory  to  such  Lender  in  its  sole  discretion).       Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right       to approve or disapprove any amendment, waiver or consent hereunder, except that the       Commitment of such Lender may not be increased or extended without the consent of such       Lender.        10.02 Notices; Effectiveness; Electronic Communication.              (a)   Notices Generally.  Except in the case of notices and other communications       expressly permitted to  be given  by telephone (and except as provided  in subsection (b)       below), all notices and other communications provided for herein shall be in writing and       shall be delivered by hand or overnight courier service, mailed by certified or registered       mail  or  sent  by electronic  mail as  follows,  and  all  notices  and  other  communications       expressly permitted hereunder to be given by telephone shall be made to the applicable       telephone number, as follows:                    (i)   if  to the  Loan  Parties,  the  Administrative  Agent,  the  L/C             Administrator  or  a  Fronting  Bank  or  the  Swing  Line  Lender  to  the  address,             telecopier number, electronic mail address or telephone number specified for such             Person on Schedule 10.02; and                    (ii)  if  to  any  other  Lender, to the  address,  electronic  mail  address  or             telephone number specified in its Administrative Questionnaire.  Notices and other             communications sent by hand or overnight courier service, or mailed by certified             or registered mail, shall be deemed to have been given when received; notices and             other communications sent by electronic mail shall be deemed to have been given             when sent (except that, if not given during normal business hours for the recipient,             shall be deemed to have been given at the opening of business on the next Business             Day  for  the  recipient).   Notices  and  other  communications  delivered  through             electronic communications to the extent provided in subsection (b) below, shall be             effective as provided in such subsection (b).                                       100                                        13227198v7 27112.00011                

 

                           (b)   Electronic  Communications.   Notices  and other  communications  to  the       Lenders,  L/C  Administrator  and  the  Fronting  Banks  hereunder  may  be  delivered  or       furnished by electronic communication (including e-mail and Internet or intranet websites)       pursuant to procedures approved by the Administrative Agent, provided that the foregoing       shall  not  apply  to  notices  to  any  Lender  or  the  Applicable  Issuing  Party  pursuant  to       Article II if such Lender or the Applicable Issuing Party, as applicable, has notified the       Administrative  Agent  that  it  is  incapable  of  receiving  notices  under  such  Article  by       electronic  communication.   The  Administrative  Agent  or  any  Loan  Party  may,  in  its       discretion, agree to accept notices and other communications to it hereunder by electronic       communications pursuant to procedures approved by  it, provided that approval of such       procedures  may  be  limited  to  particular  notices  or  communications.  Unless  the       Administrative Agent otherwise prescribes, (i) notices and other communications sent to       an  e-mail  address  shall  be  deemed  received  upon  the  sender’s  receipt  of  an       acknowledgement from the intended recipient (such as by the “return receipt requested”       function, as available, return e-mail or other written acknowledgement), provided that if       such notice or other communication is not sent during the normal business hours of the       recipient, such notice or communication shall be deemed to have been sent at the opening       of business on the next business day for the recipient, and (ii) notices or communications       posted to an Internet or intranet website shall be deemed received upon the deemed receipt       by the intended recipient at its e-mail address as described in the foregoing clause (i) of       notification that such notice or communication  is available  and  identifying the website       address therefor.              (c)   The  Platform.   THE  PLATFORM  IS  PROVIDED  “AS  IS”  AND  “AS       AVAILABLE.”   THE  AGENT  PARTIES  (AS  DEFINED  BELOW)  DO  NOT       WARRANT  THE  ACCURACY  OR  COMPLETENESS  OF  THE  BORROWER       MATERIALS  OR  THE  ADEQUACY  OF  THE  PLATFORM,  AND  EXPRESSLY       DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER       MATERIALS.   NO  WARRANTY  OF  ANY  KIND,  EXPRESS,  IMPLIED  OR       STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS       FOR  A  PARTICULAR  PURPOSE,  NON-INFRINGEMENT  OF  THIRD  PARTY       RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE       BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS       OR THE PLATFORM.  In no event shall the Administrative Agent or any of its Related       Parties  (collectively,  the  “Agent  Parties”)  have  any  liability  to  the Loan  Parties,  any       Lender, or any other Person for losses, claims, damages, liabilities or expenses of any kind       (whether  in  tort,  contract  or  otherwise)  arising  out  of  the Loan  Parties’  or  the       Administrative  Agent’s  transmission  of  Borrower  Materials  or  notices  through  the       Platform, any other electronic platform or electronic  messaging service, or through the       Internet.              (d)   Change  of  Address,  Etc.   Each  of  the  Loan  Parties,  the  Administrative       Agent, the L/C Administrator, any Fronting Bank, and the Swing Line Lender may change       its  address, electronic  mail  address or  telephone  number  for  notices  and  other       communications hereunder by notice to the other parties hereto.  Each other Lender may       change  its  address, electronic  mail  address or  telephone  number  for  notices  and  other       communications hereunder by notice to the Loan Parties, the Administrative Agent, any                                       101                                        13227198v7 27112.00011                

 

         Fronting Bank, the L/C Administrator and the Swing Line Lender. In addition, each Lender        agrees  to  notify  the  Administrative  Agent  from  time  to  time  to  ensure  that  the        Administrative  Agent  has  on  record  (i)  an  effective  address, contact  name,  telephone        number and electronic mail address to which notices and other communications may be        sent and (ii) accurate wire instructions for such Lender.  Furthermore, each Public Lender        agrees to cause at least one individual at or on behalf of such Public Lender to at all times        have  selected  the  “Private  Side  Information”  or  similar  designation  on  the  content        declaration screen of the Platform in order to enable such Public Lender or its delegate, in        accordance  with  such  Public  Lender’s  compliance  procedures  and  Applicable  Law,        including United States Federal and state securities Laws, to make reference to Borrower        Materials that are not made available through the “Public Side Information” portion of the        Platform  and  that  may  contain  material  non-public  information  with  respect  to  the        Borrower or its securities for purposes of United States Federal or state securities laws.               (e)   Reliance  by  Administrative  Agent,  L/C  Issuer  and  Lenders.   The        Administrative Agent, the L/C Administrator, the Fronting Banks and the Lenders shall be        entitled to rely and act upon any notices (including telephonic Loan Notices and Swing        Line Loan Notices) purportedly given by or on behalf of the Loan Parties even if (i) such        notices were not made in a manner specified herein, were incomplete or were not preceded        or  followed  by  any  other  form  of  notice  specified  herein,  or  (ii) the  terms  thereof,  as        understood by the recipient, varied from any confirmation thereof.  Each Loan Party shall        indemnify  the  Administrative  Agent,  the  L/C  Administrator,  the  Fronting  Banks,  each        Lender  and  the  Related  Parties  of  each  of  them  from  all  losses,  costs,  expenses  and        liabilities resulting from the reliance by such Person on each notice purportedly given by        or  on  behalf  of  the  Loan  Parties.   All  telephonic  notices  to  and  other  telephonic        communications with the Administrative Agent may be recorded by the Administrative        Agent, and each of the parties hereto hereby consents to such recording.         10.03 No Waiver; Cumulative Remedies; Enforcement.  No failure by any Lender, the  L/C Administrator, any Fronting Bank or the Administrative Agent to exercise, and no delay by  any such Person in exercising, any right, remedy, power or privilege hereunder 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.         Notwithstanding anything to the contrary contained herein or in any other Loan Document,  the  authority  to  enforce  rights  and  remedies  hereunder  and  under  the  other  Loan  Documents   against the Loan Parties shall be vested exclusively in, and all actions and proceedings at law in  connection  with  such  enforcement  shall  be  instituted  and  maintained  exclusively  by,  the  Administrative Agent in accordance with Section 8.02 for the benefit of all the Lenders; provided,  however, that the foregoing shall not prohibit (a) the Administrative Agent from exercising on its  own behalf the rights and remedies that inure to its benefit (solely in its capacity as Administrative  Agent) hereunder and under the other Loan Documents, (b) any Lender from exercising setoff  rights in accordance with Section 10.08 (subject to the terms of Section 2.13), or (c) any Lender  from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency  of a proceeding relative to the Borrower under any Debtor Relief Law; and provided, further, that                                        102                                         13227198v7 27112.00011   

 

   if at any time there is no Person acting as Administrative Agent hereunder and under the other  Loan Documents, then (i) the Required Lenders shall have the rights otherwise ascribed to the  Administrative Agent pursuant to Section 8.02 and (ii) in addition to the matters set forth in clauses  (b) and (c) of the preceding proviso and subject to Section 2.13, any Lender may, with the consent  of the Required Lenders, enforce any rights and remedies available to it and as authorized by the  Required Lenders.         10.04 Expenses; Indemnity; Damage Waiver.               (a)   Costs and Expenses.  Each Loan Party shall pay (i) all reasonable out-of-       pocket  expenses  incurred  by  the  Administrative  Agent  and  its  Affiliates  (including  the        reasonable fees, charges and disbursements of counsel for the Administrative Agent), in        connection with the syndication of the credit facilities provided for herein, the preparation,        negotiation, execution, delivery and administration of this Agreement and the other Loan        Documents  or  any  amendments,  modifications  or  waivers  of  the  provisions  hereof  or        thereof  (whether  or  not  the  transactions  contemplated  hereby  or  thereby  shall  be        consummated),  (ii) all  reasonable  out-of-pocket  expenses  incurred  by  the  Applicable        Issuing Party in connection with the issuance, amendment, renewal or extension of any        Letter of  Credit  or  any  demand  for  payment thereunder and  (iii) all  reasonable  out-of-       pocket  expenses  incurred  by  the  Administrative  Agent,  any  Lender  or  the  Applicable        Issuing Party (including the fees, charges and disbursements of any outside counsel for the        Administrative Agent, any Lender or the Applicable Issuing Party) in connection with the        enforcement or protection of its rights (A) in connection with this Agreement and the other        Loan  Documents,  including  its  rights  under this  Section,  or  (B) in  connection  with  the        Loans  made  or  Letters  of  Credit  issued  hereunder,  including  all  such  out-of-pocket        expenses  incurred  during  any  workout,  restructuring  or  negotiations  in  respect of  such        Loans or Letters of Credit.               (b)   INDEMNIFICATION BY THE LOAN PARTIES.  EACH LOAN PARTY        SHALL  INDEMNIFY  THE  ADMINISTRATIVE  AGENT     (AND  ANY  SUB-AGENT        THEREOF),   EACH     LENDER,    EACH    FRONTING     BANK,    THE   L/C        ADMINISTRATOR, AND EACH RELATED PARTY OF ANY OF THE FOREGOING        PERSONS (EACH SUCH PERSON BEING CALLED AN “INDEMNITEE”) AGAINST,        AND  HOLD  EACH  INDEMNITEE  HARMLESS  FROM,  ANY  AND  ALL  LOSSES,        CLAIMS, DAMAGES, LIABILITIES AND RELATED EXPENSES (INCLUDING THE        REASONABLE FEES, CHARGES AND DISBURSEMENTS OF ANY COUNSEL FOR        ANY  INDEMNITEE),  INCURRED  BY  ANY  INDEMNITEE  OR  ASSERTED        AGAINST ANY INDEMNITEE BY ANY THIRD PARTY OR BY ANY LOAN PARTY        ARISING  OUT  OF,  IN  CONNECTION  WITH,  OR  AS  A  RESULT  OF  (I) THE        EXECUTION  OR  DELIVERY  OF  THIS  AGREEMENT,  ANY  OTHER  LOAN        DOCUMENT  OR  ANY  AGREEMENT  OR  INSTRUMENT  CONTEMPLATED        HEREBY  OR  THEREBY,  THE  PERFORMANCE  BY  THE  PARTIES  HERETO  OF        THEIR  RESPECTIVE  OBLIGATIONS  HEREUNDER  OR  THEREUNDER  OR  THE        CONSUMMATION  OF  THE  TRANSACTIONS  CONTEMPLATED  HEREBY  OR        THEREBY, (II) ANY LOAN OR LETTER OF CREDIT OR THE USE OR PROPOSED        USE OF THE PROCEEDS THEREFROM (INCLUDING ANY REFUSAL BY ANY L/C        ISSUER TO HONOR A DEMAND FOR PAYMENT UNDER A LETTER OF CREDIT                                        103                                         13227198v7 27112.00011   

 

                     IF THE DOCUMENTS PRESENTED IN CONNECTION WITH SUCH DEMAND DO       NOT  STRICTLY  COMPLY  WITH  THE TERMS  OF  SUCH  LETTER  OF  CREDIT),       (III) ANY  ACTUAL  OR  ALLEGED  PRESENCE  OR  RELEASE  OF  HAZARDOUS       MATERIALS ON OR FROM  ANY PROPERTY OWNED OR OPERATED BY THE       BORROWER  OR  ANY  OF  ITS  SUBSIDIARIES,  OR  ANY  ENVIRONMENTAL       LIABILITY  RELATED  IN  ANY  WAY  TO  THE  BORROWER  OR  ANY  OF  ITS       SUBSIDIARIES, OR (IV) ANY ACTUAL OR PROSPECTIVE CLAIM, LITIGATION,       INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE FOREGOING,       WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY, WHETHER       BROUGHT BY A THIRD PARTY OR BY ANY LOAN PARTY, AND REGARDLESS       OF  WHETHER  ANY  INDEMNITEE  IS  A  PARTY  THERETO,  IN  ALL  CASES,       WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT       OF THE COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF THE       INDEMNITEE; PROVIDED THAT SUCH INDEMNITY SHALL NOT, AS TO ANY       INDEMNITEE, BE AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS,       DAMAGES, LIABILITIES OR RELATED EXPENSES (X) ARE DETERMINED BY A       COURT  OF  COMPETENT  JURISDICTION  BY  FINAL  AND  NON-APPEALABLE       JUDGMENT  TO  HAVE  RESULTED  FROM  THE  GROSS  NEGLIGENCE  OR       WILLFUL  MISCONDUCT  OF  SUCH  INDEMNITEE  OR  (Y) RESULT  FROM  A       CLAIM  BROUGHT  BY  ANY  LOAN  PARTY  AGAINST  AN  INDEMNITEE  FOR       BREACH IN BAD FAITH OF SUCH INDEMNITEE’S OBLIGATIONS HEREUNDER       OR  UNDER  ANY  OTHER  LOAN  DOCUMENT,  IF  SUCH  LOAN  PARTY  HAS       OBTAINED A  FINAL  AND NON-APPEALABLE JUDGMENT IN ITS FAVOR ON       SUCH CLAIM AS DETERMINED BY A COURT OF COMPETENT JURISDICTION.              (c)   Reimbursement by Lenders.  To the extent that the Loan Parties for any       reason  fail  to  indefeasibly  pay  any  amount  required  under  subsection (a) or (b) of  this       Section to be paid by it to the Administrative Agent (or any sub-agent thereof), the L/C       Administrator,  the  Fronting  Banks  or  any  Related  Party  of  any  of  the  foregoing,  each       Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), the       L/C Administrator, the Fronting Banks or such Related Party, as the case may be, such       Lender’s  Applicable  Percentage  (determined  as  of  the  time  that  the  applicable       unreimbursed expense or indemnity payment is sought based on each Lender’s share of the       Total Credit Exposure at such time) of such unpaid amount, provided that the unreimbursed       expense or indemnified loss, claim, damage, liability or related expense, as the case may       be, was incurred by or asserted against the Administrative Agent (or any such sub-agent)       or the Applicable Issuing Party in its capacity as such, or against any Related Party of any       of  the  foregoing  acting  for  the  Administrative  Agent  (or  any  such  sub-agent)  or  the       Applicable Issuing Party in connection with such capacity.  The obligations of the Lenders       under this subsection (c) are subject to the provisions of Section 2.12(e).              (d)   Waiver of Consequential Damages, Etc.  To the fullest extent permitted by       Applicable Law, the Loan Parties shall not assert, and hereby waives, and acknowledges       that no other Person shall have, any claim against any Indemnitee, on any theory of liability,       for  special,  indirect,  consequential  or  punitive  damages  (as  opposed to  direct or  actual       damages) arising out of, in connection with, or as a result of, this Agreement, any other       Loan Document  or  any  agreement or  instrument  contemplated  hereby,  the transactions                                       104                                        13227198v7 27112.00011                

 

         contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds        thereof.  No Indemnitee referred to in subsection (b) above shall be liable for any damages        arising  from  the  use  by  unintended  recipients  of  any  information  or  other  materials        distributed by it through telecommunications, electronic or other information transmission        systems in connection with this Agreement or the other Loan Documents or the transactions        contemplated hereby or thereby.               (e)   Payments.  All amounts due under this Section shall be payable not later        than ten (10) Business Days after demand therefor.               (f)   Survival.  The agreements in this Section shall survive the resignation of the        Administrative Agent, the L/C Administrator or any Fronting Bank, the replacement of any        Lender, the termination of the Commitments and the repayment, satisfaction or discharge        of all the other Obligations.         10.05 Payments Set Aside.  To the extent that any payment by or on behalf of the Loan  Parties is made to the Administrative Agent, any Fronting Bank, the L/C Administrator or any  Lender, or the Administrative Agent, the L/C Administrator, such Fronting Bank or any Lender  exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is  subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including  pursuant to any settlement entered into by the Administrative Agent, such Fronting Bank, the L/C  Administrator or such Lender in its discretion) to be repaid to a trustee, receiver or any other party,  in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent  of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived  and continued in full force and effect as if such payment had not been made or such setoff had not  occurred, and (b) each Lender, each Fronting Bank and the L/C Administrator severally agrees to  pay to the Administrative Agent upon demand its applicable share (without duplication) of any  amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the  date of such demand to the date such payment is made at a rate per annum equal to the Federal  Funds Rate from time to time in effect.  The obligations of the Lenders, the L/C Administrator and  the Fronting Banks under clause (b) of the preceding sentence shall survive the payment in full of  the Obligations and the termination of this Agreement.         10.06 Successors and Assigns; Participations.               (a)   Successors and Assigns Generally.  The provisions of this Agreement shall        be binding upon and inure to the benefit of the parties hereto and their respective successors        and  assigns  permitted  hereby,  except  that  neither  Loan  Party  may  assign  or  otherwise        transfer any of its rights or obligations hereunder without the prior written consent of the        Administrative Agent and each Lender and no Lender may assign or otherwise transfer any        of  its  rights  or  obligations  hereunder  except  (i) to  an  assignee  in  accordance  with  the        provisions of subsection (b) of this Section, (ii) by way of participation in accordance with        the provisions of subsection (d) of this Section or (iii) by way of pledge or assignment of a        security interest subject to the restrictions of subsection (e) of this Section (and any other        attempted assignment or transfer by any party hereto shall be null and void).  Nothing in        this Agreement, expressed or implied, shall be construed to confer upon any Person (other        than  the  parties  hereto,  their  respective  successors  and  assigns  permitted  hereby,        Participants  to  the extent  provided  in  subsection (d) of  this  Section and,  to  the  extent                                       105                                         13227198v7 27112.00011   

 

                     expressly contemplated hereby, the Related Parties of each of the Administrative Agent,       the L/C Administrator, the Fronting Banks and the Lenders) any legal or equitable right,       remedy or claim under or by reason of this Agreement.              (b)   Assignments by Lenders.  Any Lender may at any time assign to one or       more assignees all or a portion of its rights and obligations under this Agreement (including       all or a portion of its Commitment and the Loans (including for purposes of this subsection       (b) direct obligations under and participations in L/C Obligations) at the time owing to it);       provided that any such assignment shall be subject to the following conditions:                    (i)   Minimum Amounts.                          (A)   in the case of an assignment of the entire remaining amount                   of the assigning Lender’s Commitment and related Loans at the time owing                   to it or in the case of an assignment to a Lender, an Affiliate of a Lender or                   an Approved Fund, no minimum amount need be assigned; and                          (B)   in  any  case  not  described  in  subsection (b)(i)(A) of  this                   Section, the aggregate amount of the Commitment (which for this purpose                   includes Loans outstanding thereunder) or, if the applicable Commitment is                   not  then  in  effect, the  principal  outstanding  balance  of  the  Loans  of  the                   assigning Lender subject to each such assignment (determined as of the date                   the  Assignment  and  Assumption  with  respect  to  such  assignment  is                   delivered to the Administrative Agent or, if “Trade Date” is specified in the                   Assignment and Assumption, as of the Trade Date) shall not be less than                   $5,000,000,  unless  each  of  the  Administrative  Agent  and,  so  long  as  no                   Event of Default has occurred and is continuing, the Borrower otherwise                   consents (each such consent not to be unreasonably withheld or delayed).                    (ii)  each  partial  assignment  shall  be made  as  an  assignment  of  a             proportionate part of all the assigning Lender’s rights and obligations under this             Agreement;                    (iii) Required  Consents.   No  consent  shall  be  required  for  any             assignment except to the extent required by subsection (b)(i)(B) of this Section and,             in addition:                          (A)   the  consent  of  the  Borrower  (such  consent  not  to  be                   unreasonably withheld or delayed) shall be required unless (x) an Event of                   Default has occurred and is continuing at the time of such assignment or                   (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved                   Fund; provided that the Borrower shall be deemed to have consented to any                   such  assignment  unless  it  shall  object  thereto  by  written  notice  to  the                   Administrative Agent within five (5)  Business Days after having received                   notice thereof;                          (B)   the consent of the Administrative Agent (such consent not to                   be unreasonably withheld or delayed) shall be required for assignments if                                      106                                        13227198v7 27112.00011                

 

                     such assignment is to a Person that is not a Lender with a Commitment, an                    Affiliate of such Lender or an Approved Fund with respect to such Lender;                    and                           (C)   the  consents  of  each  Fronting  Bank  and  the  Swing  Line                    Lender (such consents not to be unreasonably withheld or delayed) shall be                    required for any assignment.                     (iv)  Assignment and Assumption.  The parties to each assignment shall              execute and deliver to the Administrative Agent an Assignment and Assumption,              together  with  a  processing  and  recordation  fee  of  $3,500  for  each  assignment              (provided, that only one such fee will be payable in connection with simultaneous              assignments to two or more Approved Funds by a Lender), and the assignee, if it is              not  a  Lender,  shall  deliver  to  the  Administrative  Agent  an  Administrative              Questionnaire.                     (v)   No Assignment to Certain Persons.  No such assignment shall be              made (A) to the Borrower or any of the Borrower’s Affiliates or Subsidiaries, (B)              unless  such  assignment  is  approved  by  the  Borrower  and  a  Fronting  Bank  has              agreed to  front for such assignee  in respect of Several Letters of Credit, to any              Person which is not an NAIC Approved Bank or (C) to any Defaulting Lender or              any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder,              would constitute any of the foregoing Persons described in this clause (C).                     (vi)  No Assignment to Natural Persons.  No such assignment shall be              made to a natural person (or a holding company, investment vehicle or trust for, or              owned and operated for the primary benefit of, a natural person).   Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c)  of this Section, from and after the effective date specified in each Assignment and Assumption,  the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned  by  such  Assignment  and  Assumption,  have  the  rights  and  obligations  of  a  Lender  under  this  Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by  such Assignment and Assumption, be released from its obligations under this Agreement (and, in  the  case of  an  Assignment  and  Assumption  covering  all  of  the  assigning  Lender’s  rights  and  obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue  to  be  entitled  to  the  benefits  of Sections 3.04, 3.05 and 10.04 with  respect  to  facts  and  circumstances occurring prior to the effective date of such assignment; PROVIDED, HOWEVER,  THAT NO LENDER MAY ASSIGN ANY OBLIGATION UNDER A SEVERAL LETTER OF  CREDIT  UNLESS  SUCH  SEVERAL  LETTER  OF    CREDIT  IS  EITHER  AMENDED  OR  RETURNED  BY  THE  BENEFICIARY  AND  REISSUED  BY  THE  ADMINISTRATIVE  AGENT,  REMOVING  OR  AMENDING,  AS  THE  CASE  MAY  BE,  THE  ASSIGNING  LENDER’S PERCENTAGE OBLIGATIONS AND REPLACING OR AMENDING THE SAME  WITH A PERCENTAGE OBLIGATIONS OF THE ELIGIBLE ASSIGNEE.  Upon request, the  Borrower (at its expense) shall execute and deliver a Note in the applicable form to the assignee  Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that  does not comply with this subsection shall be treated for purposes of this Agreement as a sale by                                        107                                         13227198v7 27112.00011   

 

   such Lender of a participation in such rights and obligations in accordance with subsection (d) of  this Section.               (c)   Register.  The Administrative Agent, acting solely for this purpose as an        agent of the Borrower (and such agency being solely for Tax purposes), shall maintain at        the Administrative Agent’s Office a copy of each Assignment and Assumption delivered        to it (or the equivalent thereof in electronic form) and a register for the recordation of the        names and addresses of the Lenders, and the Commitments of, and principal amounts (and        stated interest) 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  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.  The Register shall        be available for inspection by the Borrower and any Lender, at any reasonable time and        from time to time upon reasonable prior notice.               (d)   Participations.  Any  Lender  may at any time, without the consent of, or        notice to, the Borrower or the Administrative Agent, sell participations to any Person (other        than a natural person (or a holding company, investment vehicle or trust for, or owned and        operated for the primary benefit of, a natural person), a Defaulting Lender or the Borrower        or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion        of such Lender’s rights and/or obligations under this Agreement (including all or a portion        of  its  Commitment  and/or  the  Loans  (including  such  Lender’s  participation  in  L/C        Obligations) owing to it); provided that (i) such Lender’s obligations under this Agreement        shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties        hereto for the performance of such obligations and (iii) the Loan Parties, the Administrative        Agent, the L/C Administrator, the Fronting Banks, the Swing Line 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.         Any agreement or instrument pursuant to which a Lender sells such a participation shall  provide that such Lender shall retain the sole right to enforce this Agreement and to approve any  amendment,  modification  or  waiver  of  any  provision  of  this  Agreement; provided that  such  agreement  or  instrument  may  provide  that  such  Lender  will  not, without  the  consent  of  the  Participant,  agree  to  any  amendment,  modification  or  waiver  or  modification  described  in  Section 10.01 that  directly  affects  such  Participant  and  could  not  be  affected  by  a  vote of  the  Required Lenders.         The Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.01  and 3.04 (subject to the requirements and limitations therein, including the requirements under  Section 3.01(g) (it being understood that the documentation required under Section 3.01(g) shall  be delivered to the Lender granting such participation)) to the same extent as if it were a Lender  and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that  such Participant (A) agrees to be subject to the provisions of Section 10.13 as if it were an assignee  under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment  under Sections 3.01 or 3.04, with respect to any participation, than its participating Lender would  have been entitled to receive, except to the extent such entitlement to receive a greater payment  results from a Change in Law that occurs after the Participant acquired the applicable participation.                                        108                                         13227198v7 27112.00011   

 

   To  the  extent  permitted  by  law,  each  Participant  also  shall  be  entitled  to  the  benefits  of  Section 10.08 as though it were a Lender.         Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary  agent  of  the  Borrower,  maintain  a  register  on  which  it  enters  the  name  and  address  of  each  Participant and the principal amounts of (and stated interest on) each Participant’s interest in the  Loans or other obligations under the Loan Documents (the “Participant Register”); provided that  no  Lender  shall  have  any  obligation  to  disclose  all  or  any  portion  of  the  Participant  Register  (including the identity of any Participant or any information relating to a Participant’s interest in  any commitments, loans, letters of credit or its other obligations under any Loan Document) to any  Person except to the extent that such disclosure is necessary to establish that such commitment,  loan,  letter of  credit  or other  obligation  is  in  registered  form  under  Section 5f.103-1(c) of  the  United States Treasury Regulations.  The entries in the Participant Register shall be conclusive  absent manifest error, and such Lender shall treat each Person whose name  is recorded in the  Participant  Register  as  the  owner  of  such  participation  for  all  purposes  of  this  Agreement  notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent  (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant  Register.               (e)   Certain Pledges.  Any Lender may at any time pledge or assign a security        interest in all or any portion of its rights under this Agreement to secure obligations of such        Lender, including without limitation any pledge or assignment to secure obligations to a        Federal  Reserve  Bank; provided that  no  such  pledge  or  assignment  shall  release  such        Lender from any of its obligations hereunder or substitute any such pledgee or assignee for        such Lender as a party hereto.               (f)   Electronic Execution of Assignments.  The words “execution,” “signed,”        “signature,” and words of like import in any Assignment and Assumption 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.               (g)   Resignation  as  L/C  Issuer  or  Swing  Line  Lender  after  Assignment.         Notwithstanding anything to the contrary contained herein, if at any time Bank of America        assigns  all  of  its  Commitment  and  Loans  pursuant  to  subsection (b) above, Bank  of        America may, (i) upon 30 days’ notice to the Loan Parties and the Lenders, resign as L/C        Issuer and/or (ii) upon 30 days’ notice to the Loan Parties, resign as Swing Line Lender.         In the event of any such resignation as L/C Issuer or Swing Line Lender, the Loan Parties        shall be entitled to appoint from among the Lenders a successor L/C Issuer or Swing Line        Lender hereunder; provided, however, that no failure by the Loan Parties to appoint any        such successor shall affect the resignation of Bank of America as L/C Issuer or Swing Line        Lender, as the case may be.  If Bank of America resigns as L/C Issuer, it shall retain all the        rights and obligations of the Fronting Bank hereunder with respect to all Letters of Credit        which it fronted and which are outstanding as of the effective date of its resignation as L/C        Issuer  and  all  L/C  Obligations  with  respect  thereto  (including  the  right  to  require  the                                       109                                         13227198v7 27112.00011   

 

         Lenders to make Base Rate Loans or fund risk participations in Unreimbursed Amounts        pursuant to Section 2.03(c)).  If Bank of America resigns as Swing Line Lender, it shall        retain all the rights of the Swing Line Lender provided for hereunder with respect to Swing        Line  Loans  made  by  it  and  outstanding  as  of  the  effective  date  of  such  resignation,        including  the  right  to  require  the  Lenders  to  make  Base  Rate  Loans  or  fund  risk        participations in outstanding Swing Line Loans pursuant to Section 2.04(c).         10.07 Confidentiality.  Each of the Administrative Agent, the Lenders, the L/C Issuers  and the L/C Administrator agrees to maintain the confidentiality of the Information (as defined  below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’  respective  partners,  directors,  officers,  employees,  agents,  advisors,  external  auditors  and  representatives (it being understood that the Persons to  whom such disclosure  is  made will  be  informed of the confidential nature of such Information and instructed to keep such Information  confidential), (b) to the extent requested by any regulatory authority purporting to have jurisdiction  over it (including any self-regulatory authority, such as the NAIC), (c) to the extent required by  applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party  hereto, (e) in connection with the exercise of any remedies hereunder or under any other Loan  Document or any action or proceeding relating to this Agreement or any other Loan Document or  the  enforcement  of  rights  hereunder  or  thereunder,  (f) subject  to  an  agreement  containing  provisions substantially the same as those of this Section, to (i) any assignee of or Participant in,  or  any  prospective  assignee  of  or  Participant  in,  any  of  its  rights  or  obligations  under  this  Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative  transaction relating to any Loan Party and its obligations, (g) on a confidential basis to the CUSIP  Service Bureau or any similar agency in connection with the application, issuance, publishing and  monitoring  of  CUSIP  numbers  or  other  market  identifiers  with  respect  to  the  credit  facilities  provided hereunder, (h) with the consent of the Loan Parties or (i) to the extent such Information  (1) becomes publicly available other than as a result of a breach of this Section or (2) becomes  available to the Administrative Agent, any Lender, any L/C Issuer, the L/C Administrator or any  of their respective Affiliates on a non-confidential basis from a source other than a Loan Party.  In  addition, upon reasonable advance notice to the Borrower, the Administrative Agent and Lenders  may disclose the existence of this Agreement and information about this Agreement to market data  collectors,  similar  service  providers  to  the  lending  industry,  and  service  providers  to  the  Administrative Agent and Lenders, and the Administrative Agent or any of its Affiliates may place  customary  “tombstone”  advertisements  relating  hereto  in  publications  (including  publications  circulated in electronic form) of its choice at its own expense (which shall be subject to review and  comment by the  Borrower prior to publication).         For purposes of this Section 10.07, “Information” means all information received from any  Loan Party or any Subsidiary relating to a Loan Party or a Subsidiary or any of their respective  businesses, other than any such information that is available to the Administrative Agent or any  Lender  on  a  non-confidential  basis  prior  to  disclosure  by  any  Loan  Party  or  any  Subsidiary;  provided that, in the case of information received from a Loan Party or a Subsidiary after the date  hereof, such information is clearly identified at the time of delivery as confidential.  Any Person  required to maintain the confidentiality of Information as provided in this Section 10.07 shall be  considered to have complied with its obligation to do so if such Person has exercised the same  degree of care to maintain the confidentiality of such Information as such Person would accord to  its own confidential information.                                        110                                         13227198v7 27112.00011   

 

         Each of the Administrative Agent, the Lenders, any L/C Issuer and the L/C Administrator  acknowledges that (a) the Information may include material non-public information concerning a  Loan  Party  or  a  Subsidiary,  as  the  case  may  be,  (b)  it  has developed  compliance  procedures  regarding the use of material non-public information and (c) it will handle such material non-public  information  in  accordance  with Applicable  Law,  including  United  States  Federal  and  state  securities Laws.         10.08 Right of Setoff.  If an Event of Default shall have occurred and be continuing, each  Lender, the L/C Administrator, each Fronting Bank and each of their respective Affiliates is hereby  authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to  set off and apply any and all deposits (general or special, time or demand, provisional or final, in  whatever currency) at any time held and other obligations (in whatever currency) at any time owing  by such Lender, the L/C Administrator, such Fronting Bank or any such Affiliate to or for the  credit or the account of any Loan Party against any and all of the obligations of such Loan Party  now or hereafter existing under this Agreement or any other Loan Document to such Lender, the  L/C  Administrator or  such  Fronting  Bank,  irrespective  of  whether  or  not  such  Lender  or  L/C  Administrator or Fronting Bank shall have made any demand under this Agreement or any other  Loan Document and although such obligations of such Loan Party may be contingent or unmatured  or are owed to a branch or office of such Lender or the L/C Administrator or the Fronting Bank  different from the branch or office holding such deposit or obligated on such indebtedness.  The  rights of each Lender, the L/C Administrator, each Fronting Bank and their respective Affiliates  under this Section are in addition to other rights and remedies (including other rights of setoff) that  such Lender, the L/C Administrator, such Fronting Bank or their respective Affiliates may have.   Each Lender, the L/C Administrator and each Fronting Bank agrees to notify the Loan Parties and  the Administrative Agent promptly after any such setoff and application, provided that the failure  to give such notice shall not affect the validity of such setoff and application.         10.09 Interest Rate Limitation.  Notwithstanding anything to the contrary contained in  any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not  exceed Highest Lawful Rate.  If the Administrative Agent or any Lender shall receive interest in  an  amount  that  exceeds  the  Highest  Lawful  Rate,  the  excess  interest  shall  be  applied  to  the  principal of the Loans or, if it exceeds such unpaid principal, refunded to the applicable Loan Party.   In determining whether the  interest contracted for, charged, or received by the  Administrative  Agent or a Lender exceeds the Highest Lawful Rate, such Person may, to the extent permitted by  Applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium  rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize,  prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the  contemplated term of the Obligations hereunder.         10.10 Counterparts; Integration; Effectiveness.                 (a)   This Agreement may be executed in counterparts (and by different parties        hereto in different counterparts), each of which shall constitute an original, but all of which        when taken together shall constitute a single contract.  This Agreement and the other Loan        Documents constitute the entire contract among the parties relating to the subject matter        hereof and supersede any and all previous agreements and understandings, oral or written,        relating to the subject matter hereof.  Except as provided in Section 4.01, this Agreement        shall become effective when it shall have been executed by the Administrative Agent and                                       111                                         13227198v7 27112.00011   

 

         when the Administrative Agent shall have received counterparts hereof that, when taken        together, bear the signatures of each of the other parties hereto.  Delivery of an executed        counterpart of a signature page of this Agreement by fax transmission or other electronic        imaging means (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed        counterpart of this Agreement.               (b)   The words “delivery,” “execute,” “execution,” “signed,” “signature,” and        words of like import in any Loan Document or any other document executed in connection        herewith  shall  be  deemed  to  include  electronic  signatures,  the  electronic  matching  of        assignment  terms  and  contract  formations  on  electronic  platforms  approved  by  the        Administrative Agent, or the keeping of records in electronic form, each of which shall be        of  the  same  legal  effect,  validity  or  enforceability  as  a  manually  executed  signature,        physical delivery thereof or the use of a paper-based recordkeeping system, as the case may        be,  to  the  extent  and  as  provided  for  in  any  Applicable  Law,  including  the  Federal        Electronic  Signatures  in  Global  and  National  Commerce  Act,  the  New  York  State        Electronic  Signatures  and  Records  Act,  or  any  other  similar  state  laws  based  on  the        Uniform Electronic Transactions Act; provided that notwithstanding anything contained        herein to the contrary, the Administrative Agent is under no obligation to agree to accept        electronic  signatures  in  any  form  or  in  any  format  unless  expressly  agreed  to  by  the        Administrative Agent pursuant to procedures approved by it; provided, further, without        limiting  the  foregoing,  upon  the  request  of  the  Administrative  Agent,  any  electronic        signature  shall  be  promptly  followed  by  such  manually  executed  counterpart.   For the        avoidance of doubt, the authorization under this paragraph may include, without limitation,        use or acceptance  by the  Administrative  Agent and each of the Lenders of a  manually        signed  paper  document,  amendment,  approval,  consent,  information,  notice,  certificate,        request,  statement,  disclosure  or  authorization  related  to  this  Agreement  (each  a        “Communication”) which has been converted into electronic form (such as scanned into        PDF format), or an electronically signed Communication converted into another format,        for transmission, delivery and/or retention.               (c)   Each  Loan  Party hereby  acknowledges  the  receipt  of  a  copy  of  this        Agreement and all other Loan Documents. The Administrative  Agent and each Lender        may, on behalf of the Loan Parties, create a microfilm or optical disk or other electronic        image of this Agreement and any or all of the other Loan Documents. The Administrative        Agent and each Lender may store the electronic image of this Agreement and the other        Loan Documents in its electronic form and then destroy the paper original as part of the        Administrative Agent’s and each Lender’s normal business practices, with the electronic        image deemed to be an original and of the same legal effect, validity and enforceability as        the paper originals.         10.11 Survival of Representations and Warranties.  All representations and warranties  made hereunder and in any other Loan Document or other document delivered pursuant hereto or  thereto or in connection herewith or therewith shall survive the execution and delivery hereof and  thereof.   Such  representations  and  warranties  have  been  or  will  be  relied  upon  by  the  Administrative Agent and each Lender, regardless of any investigation made by the Administrative  Agent or any Lender or on their behalf and notwithstanding that the Administrative Agent or any  Lender may have had notice or knowledge of any Default at the time of any Credit Extension, and                                        112                                         13227198v7 27112.00011   

 

   shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall  remain unpaid or unsatisfied or any Letter of Credit shall remain outstanding.         10.12 Severability.  If any provision of this Agreement or the other Loan Documents is  held  to  be  illegal,  invalid  or  unenforceable,  (a) the  legality,  validity  and  enforceability  of  the  remaining provisions of this Agreement and the other Loan Documents shall not be affected or  impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal,  invalid or unenforceable provisions with valid provisions the economic effect of which comes as  close as possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a  provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in  any other jurisdiction.         10.13 Replacement  of  Lenders.  If  any  Lender  requests  compensation  under  Section 3.04, or if any Loan Party is required to pay any additional amount to any Lender or any  Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender  is a Defaulting Lender then the Loan Parties may, at their sole expense and effort, upon notice to  such Lender and the Administrative Agent, require such Lender to assign and delegate, without  recourse (in accordance with and subject to the restrictions contained in, and consents required by,  Section 10.06), all of its interests, rights and obligations under this Agreement and the related Loan  Documents to an assignee procured by the Borrower that shall assume such obligations (which  assignee may be another Lender, if a Lender accepts such assignment), provided that:               (a)   the Loan Parties shall have paid to the Administrative Agent the assignment        fee specified in Section 10.06(b);               (b)   such  Lender  shall  have  received  payment  of  an  amount  equal  to  the        outstanding principal of its Loans and L/C Advances, accrued interest thereon, accrued fees        and  all  other  amounts  payable  to  it  hereunder  and  under  the  other  Loan  Documents        (including  any  amounts  under Section 3.05)  from  the  assignee  (to  the  extent  of  such        outstanding principal and accrued interest and fees) or the Loan Parties (in the case of all        other amounts);               (c)   in the case of any such assignment resulting from a claim for compensation        under Section 3.04 or  payments  required  to  be  made  pursuant  to Section 3.01,  such        assignment will result in a reduction in such compensation or payments thereafter; and               (d)   such assignment does not conflict with Applicable Laws.         A Lender shall not be required to make any such assignment or delegation if, prior thereto,  as a result of a waiver by such Lender or otherwise, the circumstances entitling the Loan Parties  to require such assignment and delegation cease to apply.         Each party hereto agrees that (a) an assignment required pursuant to this Section 10.13 may  be  effected  pursuant  to  an  Assignment  and  Assumption  executed  by  the  Loan  Parties,  the  Administrative Agent and the assignee and (b) the Lender required to make such assignment need  not be a party thereto in order for such assignment to be effective and shall be deemed to have  consented to an be bound by the terms thereof; provided that, following the effectiveness of any  such assignment, the other parties to such assignment agree to execute and deliver such documents                                       113                                         13227198v7 27112.00011   

 

   necessary  to  evidence  such  assignment  as  reasonably  requested  by  the  applicable  Lender,  provided, further that any such documents shall be without recourse to or warranty by the parties  thereto.         10.14 Governing Law; Jurisdiction; Etc.               (a)   GOVERNING LAW.     THIS AGREEMENT AND THE OTHER LOAN        DOCUMENTS  AND  ANY  CLAIMS,  CONTROVERSY,  DISPUTE  OR  CAUSE  OF        ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON,        ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN        DOCUMENT (EXCEPT, AS TO ANY OTHER LOAN DOCUMENT, AS EXPRESSLY        SET FORTH THEREIN) AND THE TRANSACTIONS CONTEMPLATED HEREBY        AND  THEREBY  SHALL  BE  GOVERNED  BY,  AND  CONSTRUED  IN        ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.               (b)   SUBMISSION  TO  JURISDICTION.   EACH  LOAN  PARTY        IRREVOCABLY  AND  UNCONDITIONALLY  SUBMITS,  FOR  ITSELF  AND  ITS        PROPERTY,  TO  THE  EXCLUSIVE  JURISDICTION  OF  THE  COURTS  OF  THE        STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED        STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND        ANY  APPELLATE  COURT  FROM  ANY  THEREOF,  IN  ANY  ACTION  OR        PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY        OTHER  LOAN  DOCUMENT,  OR  FOR  RECOGNITION  OR  ENFORCEMENT  OF        ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND        UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH        ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW        YORK  STATE  COURT  OR,  TO  THE  FULLEST  EXTENT  PERMITTED  BY        APPLICABLE  LAW,  IN  SUCH  FEDERAL  COURT.   EACH  OF  THE  PARTIES        HERETO  AGREES  THAT  A  FINAL  JUDGMENT  IN  ANY  SUCH  ACTION  OR        PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER        JURISDICTIONS  BY  SUIT  ON  THE  JUDGMENT  OR  IN  ANY  OTHER  MANNER        PROVIDED BY LAW.  NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN        DOCUMENT  SHALL  AFFECT  ANY  RIGHT  THAT  THE  ADMINISTRATIVE        AGENT, ANY LENDER, THE L/C ADMINISTRATOR OR ANY FRONTING BANK        MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING        TO  THIS  AGREEMENT  OR  ANY  OTHER  LOAN  DOCUMENT  AGAINST  ANY        LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.               (c)   WAIVER OF VENUE.  THE BORROWER AND EACH OTHER LOAN        PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST        EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY        NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR        PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY        OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (c)        OF THIS SECTION.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY        WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE        DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH        ACTION OR PROCEEDING IN ANY SUCH COURT.                                       114                                         13227198v7 27112.00011   

 

               (d)   SERVICE  OF  PROCESS.   EACH  PARTY  HERETO  IRREVOCABLY        CONSENTS  TO  SERVICE  OF  PROCESS  IN  THE  MANNER  PROVIDED  FOR        NOTICES  IN  SECTION 10.02 (EXCLUDING,  HOWEVER,  ANY  ELECTRONIC        COMMUNICATIONS PERMITTED PURSUANT TO SUCH SECTION).  NOTHING        IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO        SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.         10.15 Waiver  of  Jury  Trial.  EACH  PARTY  HERETO  HEREBY  IRREVOCABLY  WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT  IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR  INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER  LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY  (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY  HERETO (a) CERTIFIES THAT NO REPRESENTATIVE AGENT OR ATTORNEY OF ANY  OTHER  PERSON  HAS  REPRESENTED,  EXPRESSLY  OR  OTHERWISE,  THAT  SUCH  OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE  THE  FOREGOING  WAIVER  AND  (b) ACKNOWLEDGES  THAT  IT  AND  THE  OTHER  PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND  THE  OTHER  LOAN  DOCUMENTS  BY,  AMONG  OTHER  THINGS,  THE  MUTUAL  WAIVERS AND CERTIFICATIONS IN THIS SECTION.         10.16 Exceptions  to  Covenants.  Neither  the  Borrower  nor  any  Subsidiary  shall  be  deemed to be permitted to take any  action or fail to take any action which  is permitted as an  exception to any of the covenants contained herein or which is within the permissible limits of any  of the covenants contained herein if such action or omission would result in the breach of any other  covenant contained herein.         10.17 No Strict Construction.  Each of the parties hereto represents to each other party  hereto that it has discussed this Agreement and the other Loan Documents with its counsel.  The  parties hereto have participated jointly in the negotiation and drafting of this Agreement and the  other Loan Documents.  In the event of an ambiguity or question of intent or interpretation arises,  this Agreement and the other Loan Documents shall be construed as if drafted jointly by the parties  hereto and thereto and no presumption or burden of proof shall arise favoring or disfavoring any  party by virtue of the authorship of any provisions of this Agreement or any other Loan Document.         10.18 USA PATRIOT Act Notice.  Each Lender that is subject to the Act (as hereinafter  defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies  the Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56  (signed  into  law  October 26,  2001))  (the  “Act”),  it  is  required  to  obtain,  verify  and  record  information that identifies the Loan Parties, which information includes the name and address of  each Loan Party and other information that will allow such Lender or the Administrative Agent,  as  applicable,  to  identify  the  Borrower  in  accordance  with  the  Act.  Each  Loan  Party  shall,  promptly  following  a  request  by  the  Administrative  Agent  or  any  Lender,  provide  all  documentation and other information that the Administrative Agent or such Lender requests in  order to comply with its ongoing obligations under applicable “know your customer” and anti- money laundering rules and regulations, including the Act.                                        115                                         13227198v7 27112.00011   

 

                     10.19 Guaranty.              (a)   Guaranty of Payment.  The Borrower hereby absolutely, irrevocably and       unconditionally guarantees prompt, full and complete payment when due, whether at stated       maturity, upon acceleration or otherwise, and at all times thereafter, of all Obligations (the       “Guaranteed Debt”).  The Borrower agrees that if TMK shall fail to pay when due any       Guaranteed  Debt, the  Borrower  will  promptly  pay  the  same  without  notice  or  demand       whatsoever.  This is a guaranty of payment, not a guaranty of collection.              (b)   Acceptance of Guaranty; No Setoffs.  The Borrower waives notice of the       acceptance of this Guaranty and of the extension or incurrence of the Guaranteed Debt or       any  part  thereof.   The  Borrower  further  waives  all  setoffs  and  counterclaims  and       presentment, protests, notice, filing of claims with a court  in the event of receivership,       bankruptcy or reorganization of TMK, demand or action on delinquency in respect of the       Guaranteed  Debt or  any  part  thereof,  including  any  right to  require  the  Administrative       Agent,  the  L/C  Administrator,  any  L/C  Issuer,  any  Fronting  Bank  or  the  Lenders       (collectively, the “Guaranteed Parties” and each a “Guaranteed Party”) to sue TMK, any       other guarantor or any other Person obligated with respect to the Guaranteed Debt or any       part thereof, or otherwise to enforce payment thereof against any collateral securing the       Guaranteed Debt or any part thereof.              (c)   Nature  of  Guaranty;  Continuing,  Absolute  and  Unconditional.  The       Borrower  hereby  agrees  that,  to  the  fullest  extent  permitted  by  Law,  its  obligations       hereunder shall be continuing, absolute and unconditional under any and all circumstances       and not subject to any reduction, limitation, impairment, termination, defense (other than       indefeasible payment in full), setoff, counterclaim or recoupment whatsoever (all of which       are hereby expressly waived by it to the fullest extent permitted by Law), whether by reason       of  any  claim  of  any  character  whatsoever,  including,  without  limitation,  any  claim  of       waiver, release, surrender, alteration or compromise.  The validity and enforceability of       this Guaranty shall not be impaired or affected by any of the following:  (i) any extension,       modification  or  renewal  of,  or  indulgence  with  respect  to,  or  substitution  for,  the       Guaranteed Debt or any part thereof or any agreement relating thereto at any time; (ii) any       failure or omission to perfect or maintain any lien on, or preserve rights to, any security or       collateral or to enforce any right, power or remedy with respect to the Guaranteed Debt or       any  part  thereof  or  any  agreement  relating  thereto,  or  any  collateral  securing  the       Guaranteed Debt or any part thereof; (iii) any waiver of any right, power or remedy or of       any  default  with  respect to the  Guaranteed  Debt  or  any  part thereof  or  any  agreement       relating thereto or with respect to any collateral securing the Guaranteed Debt or any part       thereof;  (iv) any  release,  surrender,  compromise,  settlement,  waiver,  subordination  or       modification, with or without consideration, of any collateral securing the Guaranteed Debt       or any part thereof, any other guaranties with respect to the Guaranteed Debt or any part       thereof, or any other obligations of any person or entity with respect to the Guaranteed       Debt or any part thereof; (v) the enforceability or validity of the Guaranteed Debt or any       part thereof or the genuineness, enforceability or validity of any agreement relating thereto       or with respect to any collateral securing the Guaranteed Debt or any part thereof; (vi) the       application of payments received from any source to the payment of indebtedness other       than  the  Guaranteed  Debt,  any  part  thereof  or  amounts  which  are  not  covered  by  this                                       116                                        13227198v7 27112.00011                

 

                     Guaranty even though any Guaranteed Party might lawfully have elected to apply such       payments to any part or all of the Guaranteed Debt or to amounts which are not covered by       this Guaranty; (vii) any change of ownership of TMK or the insolvency, bankruptcy or any       other change in the legal status of TMK; (viii) any change in, or the imposition of, any       Law, decree, or other governmental act which does or might impair, delay or in any way       affect the validity, enforceability or the payment when due of the Guaranteed Debt; (ix) the       failure of TMK to  maintain  in  full  force, validity or effect or to obtain or renew when       required all governmental, insurance and other approvals, licenses or consents required in       connection with the Guaranteed Debt or this Guaranty, or to take any other action required       in connection with the performance of all obligations pursuant to the Guaranteed Debt or       this Guaranty; (x) the existence of any claim, setoff or other rights which the Borrower       may have at any time against TMK or any other guarantor or any other Person in connection       herewith  or  with any  unrelated  transaction;  (xi) the  Administrative  Agent,  the  L/C       Administrator  and  the  Lenders’  election,  in  any  case  or  proceeding  instituted  under       chapter 11 of the United States Bankruptcy Code or any applicable federal, state or foreign       bankruptcy or other similar  law, of the application of Section 1111(b)(2) of the United       States Bankruptcy Code or other similar provision under any applicable federal, state or       foreign bankruptcy or other similar Law; (xii) any borrowing, use of Cash Collateral, or       grant of a security interest by TMK, as debtor in possession , under Section 363 or 364 of       the United States Bankruptcy Code or any applicable federal, state or foreign bankruptcy       or other similar Law; (xiii) the disallowance of all or any portion of any of the Guaranteed       Parties’ claims  for repayment of the Guaranteed Debt under Section 502 or 506 of the       United States Bankruptcy Code or any applicable federal, state or foreign bankruptcy or       other similar Law; or (xiv) any other fact or circumstance which might otherwise constitute       grounds at Law or equity for the discharge or release of the Borrower from its obligations       hereunder, all whether or not the Borrower shall have had notice or knowledge of any act       or omission referred to in the foregoing clauses (i) through (xiv) of this paragraph.  It is       agreed that the Borrower’s liability hereunder is independent of any other guaranties or       other obligations at any time  in effect with respect to the Guaranteed Debt or any part       thereof,  and  that  the  Borrower’s  liability  hereunder  may  be  enforced  regardless  of  the       existence, validity, enforcement or non-enforcement of any such other guaranties or other       obligations or any provision of any  Applicable Law purporting to prohibit payment by       TMK of the Guaranteed Debt in the manner agreed upon among the Guaranteed Parties       and TMK.              (d)   Dealings with TMK.  Credit may be granted or continued from time to time       by the L/C Administrator or the Lenders to TMK without notice to or authorization from       the Borrower regardless of TMK’s financial or other condition at the time of any such grant       or continuation.  No Guaranteed Party shall have an obligation to disclose or discuss with       the Borrower its assessment of the financial condition of TMK.              (e)   Subrogation.  Until the irrevocable payment in full of the Obligations and       termination of all commitments which could give rise to any Obligation, the Borrower shall       have no right of subrogation with respect to the Guaranteed Debt and hereby waives any       right to enforce any remedy which any Guaranteed Party now has or may hereafter have       against TMK, any endorser or any other guarantor of all or any part of the Guaranteed       Debt, and the Borrower hereby waives any benefit of, and any right to participate in, any                                       117                                        13227198v7 27112.00011                

 

                     security or collateral given to any Guaranteed Party to secure payment of the Guaranteed       Debt or any part thereof or any other liability of TMK to any Guaranteed Party.  Upon such       irrevocable  payment  and  termination,  TMK  shall  indemnify  the  Borrower  for  the  full       amount of any payment made by the Borrower under this Guaranty and the Borrower shall       be subrogated to the rights of the Person to whom such payment shall have been made to       the extent of such payment.              (f)   Collateral.   The  Borrower  authorizes  the  Guaranteed  Parties  to  take  any       action or exercise any remedy with respect to any non-Cash Collateral from time to time       securing the Guaranteed Debt, which the Guaranteed Parties in their sole discretion shall       determine, without notice to the Borrower.  In the event the Guaranteed Parties in their sole       discretion  elect  to  give  notice  of  any  action  with  respect  to  any  non-Cash  Collateral       securing the Guaranteed Debt or any part thereof, ten (10) days’ written notice mailed to       the Borrower by ordinary mail at the address set forth in Schedule 10.02 shall be deemed       reasonable notice of any matters contained in such notice.  The Borrower consents and       agrees that no Guaranteed Party shall be under any obligation to marshal any assets in favor       of the Borrower or against or in payment of any or all of the Guaranteed Debt.              (g)   Rights  to  Payments,  Etc.   In  the  event  that  acceleration  of  the  time  for       payment  of  any  of  the  Guaranteed  Debt  is  stayed  upon  the  insolvency,  bankruptcy  or       reorganization of TMK, or otherwise, all such amounts shall nonetheless be payable by the       Borrower forthwith upon demand by a Guaranteed Party.  The Borrower further agrees       that, to the extent that TMK makes a payment or payments to any of the Guaranteed Parties       on  the  Guaranteed  Debt,  or  any  Guaranteed  Party  receives  any  proceeds  of  collateral       securing the Guaranteed Debt, which payment or receipt of proceeds or any part thereof is       subsequently invalidated, declared to be fraudulent or preferential, set aside or required to       be returned or repaid to TMK, its estate, trustee, receiver, debtor in possession or any other       party,  including, without limitation, the Borrower, under any  insolvency or bankruptcy       Law, state or federal Law, common Law or equitable cause, then to the extent of such       payment, return or repayment, the obligation or part thereof which has been paid, reduced       or satisfied by such amount shall be reinstated and continued in full force and effect as of       the date when such initial payment, reduction or satisfaction occurred.              (h)   No Waiver.  No delay on the part of any Guaranteed Party in the exercise       of any right, power or remedy shall operate as a waiver thereof, and no single or partial       exercise by any Guaranteed Party of any right, power or remedy shall preclude any further       exercise thereof; nor shall any amendment, supplement, modification or waiver of any of       the terms or provisions of this Guaranty be binding  upon any Guaranteed Party, except as       expressly set forth in writing duly signed and delivered on the L/C Administrator’s and the       Lenders’ behalf by the Administrative Agent.  The failure by any Guaranteed Party at any       time or times hereafter to require strict performance by TMK or the Borrower of any of the       provisions, warranties, terms and conditions contained in any promissory note, security       agreement,  agreement,  guaranty,  instrument  or  document  now  or  at  any  time  or  times       hereafter executed pursuant to the terms of, or in connection with, this Agreement by TMK       or the Borrower and delivered to the Guaranteed Parties shall not waive, affect or diminish       any  right  of  any  Guaranteed  Party  at  any  time  or  times  hereafter  to  demand  strict       performance thereof, and such right shall not be deemed to have been waived by any act                                       118                                        13227198v7 27112.00011                

 

         or knowledge of any Guaranteed Party, their agents, officers or employees, unless such        waiver  is  contained  in  an  instrument  in  writing  duly  signed  and  delivered  on  the  L/C        Administrator’s, Fronting Banks’ and the Lenders’ behalf by the Administrative Agent.         No waiver by any Guaranteed Party of any default shall operate as a waiver of any other        default or the same default on a future occasion, and no action by any Guaranteed Party        permitted hereunder shall in any way affect or impair any Guaranteed Party’s rights or        powers, or the obligations of the Borrower under this Guaranty.  Any determination by a        court of competent jurisdiction of the amount of any Guaranteed Debt owing by TMK to        any  Guaranteed  Party  shall  be  conclusive  and  binding  on  the  Borrower  irrespective  of        whether the Borrower was a party to the suit or action in which such determination was        made.               (i)   Setoff.   In  addition  to  and  without  limitation  of  any  rights,  powers  or        remedies of the Guaranteed Parties under Applicable Law, any time after maturity of the        Guaranteed Debt, whether by acceleration or otherwise, the Guaranteed Parties may, in        their  sole  discretion,  with  notice  after  the  fact  to  the  Borrower  and  regardless  of  the        acceptance  of  any  security  or  collateral  for  the  payment  hereof,  appropriate  and  apply        toward the payment of the Guaranteed Debt (i) any indebtedness due to or to become due        from any of the Guaranteed Parties to the Borrower, and (ii) any moneys, credits or other        property belonging to the Borrower (including all account balances, whether provisional        or final and whether or not collected or available) at any time held by or coming into the        possession of any of the Guaranteed Parties or any Lender whether for deposit or otherwise.               (j)   Severability.  Wherever possible, each provision of this Section 10.19 shall        be interpreted in such manner as to be effective and valid under Applicable Law, but if any        provision of this Section 10.19 shall  be prohibited by or invalid under such Law, such        provision  shall  be  ineffective  to  the  extent  of  such  prohibition  or  invalidity  without        invalidating  the  remainder  of  such  provision  or  the  remaining  provisions  of  this        Section 10.19.               (k)   Miscellaneous.  It is understood that while the amount of the Guaranteed        Debt guaranteed hereby is not limited, if in any action or proceeding involving any state,        federal or foreign bankruptcy,  insolvency or other Law affecting the rights of creditors        generally, this Guaranty would be held or determined to be void, invalid or unenforceable        on account of the amount of the aggregate liability under this Guaranty with respect to the        Borrower, then, notwithstanding any other provision of this Guaranty to the contrary, the        aggregate amount of such liability shall, with respect to the Borrower, without any further        action of the Guaranteed Parties, be automatically limited and reduced with respect to the        Borrower to the highest amount which is valid and enforceable as determined in such action        or proceeding.  The obligations of the Borrower under this Section 10.19 shall survive the        termination of this Agreement.         10.20 No Advisory or Fiduciary Responsibility.  In connection with all aspects of each  transaction contemplated hereby (including in connection with any amendment, waiver or other  modification hereof or of any other Loan Document), each Loan Party acknowledges and agrees  that:  (i)  (A)  the  arranging  and  other  services  regarding  this  Agreement  provided  by  the  Administrative  Agent,  the  Joint  Arrangers  and  the  Lenders  are  arm’s-length  commercial  transactions between the Loan Parties and their respective Affiliates, on the one hand, and the                                       119                                         13227198v7 27112.00011   

 

   Administrative Agent, the Joint Arrangers and the Lenders, on the other hand, (B) each Loan Party  has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed  appropriate, and (C) each Loan Party is capable of evaluating, and understands and accepts, the  terms,  risks  and  conditions  of  the  transactions  contemplated  hereby  and  by  the  other  Loan  Documents; (ii) (A) the Administrative Agent, each Joint Arranger and each Lender is and has  been acting solely as a principal and, except as expressly agreed in writing by the relevant parties,  has not been, is not, and will not be acting as an advisor, agent or fiduciary for any Loan Party or  any of their respective Affiliates, or any other Person and (B) neither the Administrative Agent,  any Joint Arranger nor any Lender has any obligation to any Loan Party or any of their respective  Affiliates with respect to the transactions contemplated hereby except those obligations expressly  set forth herein and in the other Loan Documents; and (iii) the Administrative Agent, the Joint  Arrangers and the Lenders and their respective Affiliates  may  be engaged  in a broad range of  transactions that involve interests that differ from those of the Loan Parties and their respective  Affiliates,  and  neither  the  Administrative  Agent,  any  Joint  Arranger  nor  any  Lender  has  any  obligation to disclose any of such interests to any Loan Party or their respective Affiliates.  To the  fullest extent permitted by law, each Loan Party hereby waives and releases any claims that it may  have against the  Administrative  Agent, the Joint Arrangers or any  Lender with respect to any  breach  or  alleged  breach  of  agency  or  fiduciary  duty  in  connection  with  any  aspect  of  any  transaction contemplated hereby.         10.21 ENTIRE  AGREEMENT.   THIS  AGREEMENT  AND  THE      OTHER  LOAN  DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY  NOT  BE  CONTRADICTED  BY  EVIDENCE  OF  PRIOR,  CONTEMPORANEOUS,  OR  SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN  ORAL AGREEMENTS AMONG THE PARTIES.         10.22 Acknowledgment 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 Institution arising under any Loan Document, to the extent such  liability is unsecured, may be subject to the write-down and conversion powers of the applicable  Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:               (a)   the  application  of  any  Write-Down  and  Conversion  Powers  by the        applicable Resolution Authority to any such  liabilities arising hereunder which  may  be        payable to it by any party hereto that is an Affected Financial Institution; and               (b)   the effects  of  any  Bail-in  Action  on  any  such  liability,  including,  if        applicable:                     (i)   a reduction in full or in part or cancellation of any such liability;                     (ii)  a conversion of all, or a portion of, such liability into shares or other              instruments  of  ownership  in  such Affected Financial  Institution,  its  parent              undertaking, or a bridge institution that may be issued to it or otherwise conferred              on it, and that such shares or other instruments of ownership will be accepted by it              in lieu of any rights with respect to any such liability under this Agreement or any              other Loan Document; or                                       120                                         13227198v7 27112.00011   

 

                     (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.         10.23 Acknowledgement  Regarding  Any Supported  QFCs.   To  the  extent that the  Loan Documents provide support, through a guarantee or otherwise, for Swap Contracts or any  other agreement or instrument that is a QFC (such support, “QFC Credit Support” and, each such  QFC,  a  “Supported  QFC”),  the parties  acknowledge  and  agree  as  follows  with  respect  to  the  resolution power of the FDIC under the Federal Deposit Insurance Act and Title II of the Dodd- Frank  Wall  Street  Reform  and  Consumer  Protection  Act  (together  with  the  regulations  promulgated thereunder, the “U.S. Special Resolution Regimes”)  in respect of such Supported  QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan  Documents and any Supported QFC may in fact be stated to be governed by the laws of the State  of New York and/or of the United States or any other state of the United States):               (a)   In the event a Covered Entity that  is party to  a Supported QFC (each, a        “Covered  Party”)  becomes  subject  to  a  proceeding  under  a  U.S.  Special  Resolution        Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support        (and any interest and obligation in or under such Supported QFC and such QFC Credit        Support, and any rights  in property securing such Supported QFC or such QFC Credit        Support) from such Covered Party will be effective to the same extent as the transfer would        be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC        Credit Support (and any such interest, obligation and rights in property) were governed by        the laws of the United States or a state of the United States. In the event a Covered Party        or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S.        Special  Resolution  Regime,  Default  Rights  under  the  Loan  Documents  that  might        otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised        against such Covered Party are permitted to be exercised to no greater extent than such        Default  Rights  could  be  exercised  under  the  U.S.  Special  Resolution  Regime  if  the        Supported QFC and the Loan Documents were governed by the laws of the United States        or a state of the United States. Without limitation of the foregoing, it is understood and        agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in        no event affect the rights of any Covered Party with respect to a Supported QFC or any        QFC Credit Support.               (b)   As  used  in  this Section 10.23,  the  following  terms  have  the  following        meanings:               “BHC Act Affiliate” of a party means an “affiliate” (as such term is defined        under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.              “Covered Entity” means any of the following:                     (i)   a  “covered  entity”  as  that  term  is  defined  in,  and  interpreted  in              accordance with, 12 C.F.R. § 252.82(b);                     (ii)  a  “covered  bank”  as  that  term  is  defined  in,  and  interpreted  in              accordance with, 12 C.F.R. § 47.3(b); or                                       121                                         13227198v7 27112.00011   

 

                                 (iii) a  “covered  FSI”  as  that  term  is  defined  in,  and  interpreted  in             accordance with, 12 C.F.R. § 382.2(b).              “Default Right” has the meaning assigned to that term in, and shall be interpreted       in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.              “QFC” has the meaning assigned to the term “qualified financial contract” in, and       shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).                               [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]                                                        122                                        13227198v7 27112.00011                

 

 

 

          BANK OF AMERICA, N.A., as Administrative            Agent, Swing Line Lender, L/C Administrator and            as a Lender             By:            Name: Brad Hindman             Title: Vice President   [Signature Page to Credit Agreement] 

 

                          U.S. BANK NATIONAL ASSOCIATION, as            Syndication Agent and as a Lender             By:              Name: Glenn Schuermann             Title:  Vice President    [Signature Page to Credit Agreement] 

 

          WELLS FARGO BANK, NATIONAL            ASSOCIATION, as Syndication Agent and as a            Lender             By:              Name: Jason Hafener             Title: Managing Director    [Signature Page to Credit Agreement] 

 

          BBVA USA, as a Lender             By:              Name: April Chan             Title: Executive Director    [Signature Page to Credit Agreement] 

 

                          REGIONS BANK, as a Lender                          By:                                                   Name: Hichem Kerma             Title:  Managing Director    [Signature Page to Credit Agreement] 

 

 

          COMERICA BANK, as a Lender             By:              Name: John Smithson             Title:  Vice President    [Signature Page to Credit Agreement] 

 

 

                                       THE NORTHERN TRUST COMPANY, as a                                      Lender                                        By:                                                                              Name:   Christopher L. McKean                                       Title:    SVP                                                           [Signature Page to Credit Agreement]  NTAC:3NS-20 

 

                                                                  SCHEDULE 1.01                          COLLATERAL ADVANCE RATES    Category of Investment/Security1                              Advance Rate                                                                 Percentage                                                                    Cash or Bank of America certificates of deposit and savings accounts  100%                                                                    Listed Money Market funds                                     95%                                                                    U.S. Government Bills, Notes, and U.S. Government                guaranteed or sponsored agency securities                                                                                         Maturity 52 years or less                                     90%   Maturity greater than 5 years                                 85%                                                                    High Grade Municipal Bonds (AAA/Aaa to AA-/Aa33)                 Maturity 5 years or less                                      80%   Maturity greater than 5 years                                 70%                                                                    High Grade Corporate Bonds/Notes (AAA/Aaa, AA/Aa, non-           convertible, NYSE traded)   Maturity 5 years or less                                      85%   Maturity greater than 5 years                                 75%                                                                    Intermediate Grade Corporate Bonds/Notes (A+/A1 to A-/A3, non-     convertible, NYSE traded)   Maturity 5 years or less                                      80%   Maturity greater than 5 years                                 70%                                                      1 Other than Cash and U.S. Government no single issuer shall comprise greater than 10% of the aggregate  Borrowing Base  2 Maturity of all instruments means the time remaining until the final maturity date from the date of determination  3 To qualify for indicative advance rates, applicable securities must have indicated rating from both Moody’s and  S&P; the lower of the two ratings shall apply    

 

                                                               SCHEDULE 2.01                                                         COMMITMENTS AND APPLICABLE PERCENTAGES                                                          Institution              Commitment       Applicable Percentage  Bank of America, N.A.                 $105,000,000        14.000000000%  Wells Fargo Bank, National Association $105,000,000       14.000000000%  U.S. Bank National Association        $105,000,000        14.000000000%  BBVA USA                              $85,000,000         11.333333333%  Regions Bank                          $85,000,000         11.333333333%  Truist Bank                           $85,000,000         11.333333333%  Comerica Bank                         $65,000,000         8.666666667%  KeyBank National Association          $65,000,000         8.666666667%  The Northern Trust Company            $50,000,000         6.666666667%                                                                                                 Total:  $750,000,000.00          100% 

 

                                                            SCHEDULE 2.03                                                            EXISTING LETTERS OF CREDIT                                        Letter of Credit      Amount          Applicant          Beneficiary     Number   SM238336W           $60,000,000     TMK Re Ltd.      Liberty National Life                                                        Insurance Company   SM238339W           $90,000,000     TMK Re Ltd.    Globe Life and Accident                                                        Insurance Company                                                                                            

 

                                                               SCHEDULE 5.05                                                                                            FINANCIAL STATEMENTS; MATERIAL ADVERSE EFFECTS                                           On  August  18,  2020,  Globe  Life  Inc.,  entered  into  an  Underwriting  Agreement  with BofA  Securities Inc. and U.S. Bancorp Investments, Inc., as representatives of the several underwriters  named on Schedule A thereto (the “Underwriters”) pursuant to which the Company agreed to sell  and the Underwriters agreed to purchase $350,000,000 million of Globe Life’s 2.150% Senior  Notes due 2030 (the “Notes”).  The sale of the Notes is expected to be settled on August 21, 2020.    

 

                                                               SCHEDULE 5.06                                                                                                                  LITIGATION                                           None   

 

                                                             SCHEDULE 5.12                                                                                                                                                                                 SUBSIDIARIES; EQUITY INTERESTS                             (A)   Each of the Subsidiaries listed below is 100% owned, directly or indirectly, by Globe Life Inc.           Company                                                 State of Domicile     AILIC Receivables Corporation (ARC)                         Delaware     American Income Life Insurance Company (AIL)                 Indiana     American Income Marketing Services, Inc. (AIMS)              Texas     Brown-Service Funeral Homes Company, Inc. (Brown Service)   Alabama     Family Heritage Life Insurance Company of America (FHL)       Ohio      Globe Life And Accident Insurance Company (Globe)           Nebraska     Globe Life Insurance Agency, Inc.                            Texas     Globe Life Insurance Company of New York                    New York     Globe Marketing Services, Inc. (Globe Marketing)            Oklahoma     Liberty National Auto Club, Inc. (Auto Club)                Alabama     Liberty National Life Insurance Company (LNL)               Nebraska     National Income Life Insurance Company (NILICO)             New York     Specialized Advertising Group, Inc. (SAG)                    Texas     TMK Buildings Corporation (TBC)                              Texas      TMK Re, Ltd. (TMK Re)                                       Bermuda     Globe Life Inc. (GL)                                        Delaware     Torchmark Insurance Agency, Inc. (TIA)                      Alabama     United American Insurance Company (UA)                      Nebraska            Globe Marketing and Advertising Distributors LLC (GMAD) is a Delaware limited liability      company.            AILO 1, LLC is a Texas limited liability company in which LNL is the sole member.            LND 01, LLC is a Texas limited partnership in LNL is the sole member.            Royalton 6001, Ltd is an Ohio limited liability company in which FHL has a 50% ownership      interest and an unaffiliated entity has a 50% ownership interest.              TMK  Properties,  LP  (TMK Properties)  is  a  Texas  limited  partnership,  whose  general      partner is TMK Buildings Corporation (1%) and whose limited partner is Globe Life Inc.      (99%).                

 

  (B)   None. 

 

                                                            SCHEDULE 5.16                                                                                                                                                                                    INSURANCE LICENSES                                                       (A)  American Income Life Insurance Company (see attached)       (B)  Globe Life And Accident Insurance Company (see attached)                 (C)  Liberty National Life Insurance Company (see attached)                 (D)  United American Insurance Company (see attached)                        

 

INSURANCE LICENSES - AMERICAN INCOME LIFE   INSURANCE COMPANY                                       Jurisdiction              Types of Insurance  Alabama                   Life, Disability and Annuities  Alaska                    Life; Health   Arizona                   Disability; Life  Arkansas                  Accident & Health; Accident & Health-                           Group; Accident & Health-Medicare                            Supplemental;  Life; Life-Credit; Life-                           Group  California                Disability; Life  Colorado                  Accident & Health; Annuities; General                            Life  Connecticut               Accident and Health; Life Non-                           Participating  Delaware                  Life, including Annuities and Health  District of Columbia      Group Accident and Health; Group Life;                            Individual Accident and Health;                            Individual Annuities (Fixed & Variable);                            Individual Life and Life and Health  Florida                   Life; Group Life and Annuities; Accident                            and Health  Georgia                   Life, Accident and Sickness  Hawaii                    Disability; Life  Idaho                     Life; Disability (excluding Managed                            Care)  Illinois                  Life; Accident; Health  Indiana                   Life and Annuities; Accident and Health  Iowa                      Accident only (Individual); Accident and                            Health (Individual); Hospital and Medical                            Expense (Individual); Group Accident                            and Health; Non-cancellable Accident and                            Health; Life, includes Credit Life,                            Variable Life, Annuities, Variable                            Annuities and Group  Kansas                    Life; Accident and Health  Kentucky                  Life and Health Insurance  Louisiana                 Health and Accident; Life Insurance  Maine                     Life (including Credit Life); Health                            (including Credit Health) 

 

Maryland                  Health; Life, including Annuities and                            Health (except Variable Life & Variable                            Annuities)  Massachusetts             Life-All Kinds; Accident-All Kinds;                            Health-All Kinds  Michigan                  Life & Annuities; Disability  Minnesota                 Life; Accident and Health  Mississippi               Accident & Health; Life  Missouri                  Life, Annuities and Endowments;                            Accident and Health  Montana                   Life; Disability     Nebraska                  Life Insurance; Sickness and Accident                            Insurance  Nevada                    Health-Life & Health Company; Life  New Hampshire             Accident & Health; Life  New Jersey                Life; Health; Annuities; Non-Participating                            Insurance Only  New Mexico                Life & Health  North Carolina            Life, including Industrial Sick Benefit                            Insurance; Annuities (excluding Variable                            Annuities); Accident and Health,                            including Hospitalization-cancelable and                            non-cancelable  North Dakota              Life & Annuity; Accident & Health  Ohio                      Life, Health & Annuities  Oklahoma                  Life, Accident & Health  Oregon                    Health & Life  Pennsylvania              Accident and Health; Life and Annuities  Rhode Island              Life; Annuities; Accident & Health  South Carolina            Life; Accident/Health  South Dakota              Life; Health  Tennessee                 Life; Accident & Health  Texas                     Life; Accident and Health  Utah                      Accident & Health-Life; Annuity-Life;                            Life; Variable Contract-Life  Vermont                   Life and annuities; Accident and Health  Virginia                  Accident & Sickness; Credit Life;                            Annuities; Life; Credit Accident &                            Sickness  Washington                Disability; Life  West Virginia             Life; Accident & Sickness  Wisconsin                 Life, Accident and Health  Wyoming                   Life & Annuities & Disability 

 

Canada-Province of        Accident and Sickness; Life  Alberta  Canada-Province of        Accident, Sickness and Life  British Columbia  Canada-Province of        Life, Accident and Sickness  Manitoba  Canada-Province of New    Accident and Sickness; Life  Brunswick  Canada-Province of        Life, Accident and Sickness  Newfoundland and  Labrador  Canada-Province of        Life; Accident & Sickness  Nova Scotia  Canada-Province of        Accident and Sickness; Life  Ontario  Canada-Province of        Accident & Sickness; Life  Prince  Edward Island  Canada-Province of        Accident, Life; Sickness  Saskatchewan  Canada-Northwest          Life and Accident & Sickness Insurance  Territories  Canada-Yukon Territory    Life, Accident & Sickness Insurance  New Zealand               Life/Accident/Health                          

 

INSURANCE LICENSES - GLOBE LIFE AND   ACCIDENT INSURANCE     COMPANY                      Jurisdiction     Types of Insurance  Alabama          Life, Disability and Annuities  Alaska           Life; Health; Annuities  Arizona          Disability; Life  Arkansas         Accident & Health; Accident & Health-                  Group; Accident & Health-Medicare                   Supplement; Life; Life-Credit; Life-Group  California       Life and Disability  Colorado         Accident & Health; Annuities; Credit                   (Life, A & H); General Life  Connecticut      Accident and Health; Life, non-                  participating  Delaware         Life, including Annuities; Credit Life;                   Health and Credit Health  District of      Group Accident & Health; Group  Columbia         Annuities (Fixed & Variable); Group Life;                   Individual Accident & Health; Individual                   Annuities (Fixed & Variable); Individual                   Life; Life and Health  Florida          Credit Disability; Accident & Health; Life;                   Group Life & Annuities; Credit                   Life/Health  Georgia          Life, Accident and Sickness  Hawaii           Accident and Health or Sickness; Life  Idaho            Disability, excluding Managed Care; Life  Illinois         Life, Accident and Health  Indiana          Life & Annuities and Accident and Health  Iowa             Accident only (individual); Accident &                   Health (individual); Hospital & Medical                   Expense (individual); Group Accident &                   Health; Non-cancellable Accident &                   Health; Life, includes Credit Life, Variable                   Life; Annuities; Variable Annuities &                   Group  Kansas           Life; Accident & Health  Kentucky         Life (includes Annuities) and Health  Louisiana        Health and Accident; Life  Maine            Life (including Credit Life); Health                   (including Credit Health) 

 

Maryland         Health; Life, including Annuities & Health                   (except Variable Life & Variable                   Annuities)  Massachusetts    Life-All Kinds; Accident-All Kinds;                   Health-All Kinds  Michigan         Life & Annuities; Disability  Minnesota        Life; Accident & Health  Mississippi      Accident & Health; Life  Missouri         Accident & Health; Life, Annuities &                   Endowments  Montana          Life; Disability  Nebraska         Life Insurance; Sickness & Accident                   Insurance  Nevada           Life; Health  New              Accident & Health; Life  Hampshire  New Jersey       Life; Health; Non-Participating Insurance                   Only  New Mexico       Life and Health  North            Life; Annuities; Accident & Health  Carolina   North Dakota     Life & Annuity; Accident & Health  Ohio             Accident & Health; Annuities; Life  Oklahoma         Accident & Health; Life  Oregon           Life; Health  Pennsylvania     Accident & Health; Life & Annuities  Rhode Island     Life; Accident & Health and Fixed                   Annuities  South            Life; Accident/Health  Carolina  South Dakota     Life; Health; Travel Accident  Tennessee        Life; Credit; Accident & Health Disability  Texas            Life; Accident & Health  Utah             Accident & Health-Life; Annuity-Life;                   Life; Variable Contract-Life  Vermont          Life; Health  Virginia         Accident & Sickness; Annuities; Credit                   Accident & Sickness; Credit Life; Life  Washington       Life; Disability  West Virginia    Life; Accident & Sickness  Wisconsin        Disability Insurance; Life Insurance &                   Annuities (non-participating)  Wyoming          Life and Disability 

 

Guam             Accident & Health; Life                          

 

INSURANCE LICENSES - LIBERTY NATIONAL LIFE   INSURANCE COMPANY                           Jurisdiction     Types of Insurance  Alabama          Life, Disability and Annuities  Alaska           Life; Health  Arizona          Disability; Life  Arkansas         Accident & Health; Accident & Health - Group;                   Life; Life - Credit; Life - Group  California       Life and Disability  Colorado         Accident & Health; Annuities; General Life  Connecticut      Life, Non-Participating  Delaware         Life, including Annuities and Health  District of      Group Accident and Health, Group Life,  Columbia         Individual Accident and Health; Individual Life,                   and Life and Health  Florida          Life; Credit Life; Group Life & Annuities;                   Accident & Health; Credit Disability  Georgia          Life; Accident; Sickness  Hawaii           Accident and Health or Sickness (subclass:  all);                   Life (subclass:  all)  Idaho            Disability, excluding Managed Care; Life  Illinois         Life; Accident; Health  Indiana          Life & Annuities and Accident and Health  Iowa             Accident only (Individual); Accident and Health                   (Individual); Hospital and Medical Expense                   (Individual); Group Accident and Health; Non-                  cancellable Accident and Health; Life, including                   Credit Life, Variable Life, Annuities, Variable                   Annuities; Variable Annuities and Group    Kansas           Life; Accident and Health  Kentucky         Life (includes Annuities) and Health   Louisiana        Annuities; Health and Accident; Life  Maine            Life (including Credit Life)  Maryland         Health; Life, including Annuities and Health                   (except Variable Life & Variable Annuities)  Massachusetts    Life-All Kinds; Accident-All Kinds; Health-All                   Kinds  Michigan         Life & Annuities; Disability  Minnesota        Life; Accident and Health 

 

Mississippi      Accident & Health; Industrial Life, Industrial                   Accident and Health; Life  Missouri         Accident and Health; Life, Annuities and                   Endowments  Montana          Life; Disability  Nebraska         Life Insurance; Sickness and Accident Insurance  Nevada           Life; Health  New              Accident & Health; Life  Hampshire  New Jersey       Life; Non-Participating Insurance Only  New Mexico       Life and Health  North            Life, including Industrial Sick Benefit  Carolina         Insurance; Annuities (excluding variable                   annuities); Accident and Health, including                   Hospitalization--Cancelable and Non-cancelable  North Dakota     Life & Annuity; Accident & Health  Ohio             Accident & Health; Annuities; Life  Oklahoma         Accident & Health; Life  Oregon           Life; Health  Pennsylvania     Accident and Health; Life and Annuities  Rhode Island     Life; Accident & Health & Annuities  South            Life; Accident/Health  Carolina  South Dakota     Life; Health  Tennessee        Life; Accident and Health Disability  Texas            Life; Accident and Health  Utah             Accident & Health-Life; Annuity-Life; Life;                   Variable Contract-Life  Vermont          Life and/or Health and Accident  Virginia         Accident & Sickness; Life; Industrial Life  Washington       Life; Disability  West Virginia    Life; Accident & Sickness  Wisconsin        Disability Insurance; Life Insurance and                   Annuities (nonparticipating)  Wyoming          Life and Disability  Guam             Accident & Health; Life                          

 

INSURANCE LICENSES - UNITED AMERICAN INSURANCE   COMPANY                                           Jurisdiction           Types of Insurance  Alabama                Life, Disability and Annuities  Alaska                 Life; Health; Annuities  Arizona                Disability; Life  Arkansas               Accident & Health; Accident & Health -                         Group; Accident & Health - Medicare                         Supplemental; Life; Life - Credit; Life -                         Group  California             Life and Disability  Colorado               Accident & Health; Annuities; General                         Life  Connecticut            Accident and Health; Life, Non-                        Participating  Delaware               Life, including Annuities and Health  District of Columbia   Group Accident and Health; Group                         Annuities (Fixed and Variable); Group                         Life, Individual Accident and Health;                         Individual Annuities (Fixed and                         Variable); Individual Life; Life and                         Health  Florida                Life; Accident and Health; Group Life                         and Annuities  Georgia                Life, Accident and Sickness  Hawaii                 Accident and Health or Sickness; Life  Idaho                  Disability, Excluding Managed Care; Life  Illinois               Life, Accident and Health  Indiana                Life & Annuities and Accident & Health  Iowa                   Accident only (Individual); Accident and                         Health (Individual); Hospital and Medical                         Expense (Individual); Group Accident and                         Health; Non-cancellable Accident and                         Health; Life, includes Credit Life,                         Variable Life, Annuities, Variable                         Annuities and Group  Kansas                 Life, Accident and Health  Kentucky               Life (includes Annuities) and Health   Louisiana              Annuities; Health and Accident; Life  Maine                  Life (including Credit Life); Health                         (including Credit Health) 

 

Maryland               Health; Life, including Annuities and                         Health (except Variable Life & Variable                         Annuities)  Massachusetts          Life - All Kinds; Accident - All Kinds;                         Health - All Kinds  Michigan               Life & Annuities; Disability  Minnesota              Life; Accident and Health  Mississippi            Accident & Health; Life  Missouri               Accident and Health; Life, Annuities and                         Endowments  Montana                Life; Disability  Nebraska               Life Insurance; Sickness and Accident                         Insurance  Nevada                 Life; Health   New Hampshire          Accident & Health; Life  New Jersey             Life; Health; Annuities  New Mexico             Life and Health  North Carolina         Life; Annuities; Accident & Health  North Dakota           Life & Annuity; Accident & Health  Ohio                   Life, Health & Annuities  Oklahoma               Accident & Health; Life  Oregon                 Life; Health  Pennsylvania           Accident and Health; Life and Annuities  Rhode Island           Life; Accident & Health  South Carolina         Life; Accident/Health  South Dakota           Life; Health  Tennessee              Life; Accident and Health Disability  Texas                  Life; Accident and Health  Utah                   Accident & Health; Life; Annuity;                         Variable Contract  Vermont                Life; Health  Virginia               Accident & Sickness; Annuities; Life  Washington             Life; Disability  West Virginia          Life; Accident & Sickness  Wisconsin              Disability Insurance; Life Insurance and                         Annuities (non-participating)  Wyoming                Life and Disability  Canada-Province of     Accident and Sickness, Life  Alberta  Canada-Province of     Life Insurance and Accident and Sickness  British Columbia       Insurance  

 

Canada-Province of     Life, Accident and Sickness  Manitoba  Canada-Province of     Accident and Sickness, Life  New Brunswick  Canada-Province of     Life; Accident & Sickness  Nova Scotia  Canada-Province of     Life, Accident and Sickness  Ontario  Canada-Province of     Life, Accident and Sickness Insurance  Quebec  Canada-Province of     Life  Saskatchewan   

 

                                                              SCHEDULE 10.02                                                        ADMINISTRATIVE AGENT’S OFFICE; CERTAIN ADDRESSES FOR                                       NOTICES            Administrative Agent    Administrative Agent’s Office   (for payments and Requests for Credit Extensions):  Bank of America, N.A., as Administrative Agent  2380 Performance Drive  TX2-984-03-23  Richardson, TX 75082  Attention:  Joanna Tarango  Tel: 469-201-8731  Email: Joanna.Tarango@bofa.com    Remittance Instructions:  Bank of America, N.A.   New York, NY  ABA# 026009593  Account No.:  1366072250600  Account Name: Wire Clearing Acct for Syn Loans-LIQ  Ref: Globe Life, Inc    Other Notices as Administrative Agent:  Bank of America, N.A., as Administrative Agent  900 W. Trade St., 6th Floor   NC1-026-06-03  Charlotte, NC 28255  Attention:  Lee Booth  Tel: 980-386-4535  Email: lee.booth@bofa.com      Loan Parties     Legal Service of Process    If to Globe Life Inc.:  CT Corporation  1209 Orange Street  Wilmington, Delaware 19801    If to TMK Re, Ltd.: 

 

c/o Globe Life Inc.  Attn:  General Counsel, Legal Department  3700 S. Stonebridge Drive  McKinney, Texas 75070        Notices Generally    If to Globe Life Inc.:  Globe Life Inc.  Attn: W. Michael Pressley  3700 S. Stonebridge Drive  McKinney, Texas 75070    If to TMK Re, Ltd.:  c/o Globe Life Inc.  Attn: W. Michael Pressley  3700 S. Stonebridge Drive  McKinney, Texas 75070   

 

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

 

         and, except as expressly provided in this Assignment and Assumption, without representation or  warranty by [the][any] Assignor.   1.    Assignor[s]: ______________________________                      ______________________________        [Assignor [is] [is not] a Defaulting Lender]    2.    Assignee[s]: ______________________________                      ______________________________        [for each Assignee, indicate [Affiliate][Approved Fund] of [identify Lender]]    3.    Loan Parties: Globe Life Inc. and TMK Re, Ltd.    4.    Administrative Agent: Bank of America, N.A., as the administrative agent under the Credit        Agreement    5.    Credit Agreement: Credit Agreement, dated as of August 24, 2020, among Globe Life        Inc., TMK Re, Ltd., the Lenders from time to time party thereto, and Bank of America,        N.A., as Administrative Agent, Swing Line Lender and L/C Administrator.                                                                   A-2                           Form of Assignment and Assumption 

 

          6.     Assigned Interest[s]:                                               Aggregate      Amount of     Percentage                                                     Amount of     Commitment     Assigned of                                       Facility    Commitment       Assigned    Commitment      CUSIP   Assignor[s]5  Assignee[s]6  Assigned7   for all Lenders8                    9        Number                                                                                                                           _________   $___________    $_________    _________%                                                                                                                       _________   $___________    $_________    _________%                                           ___          _____                               _________   $___________    $_________    _________%                                           ___          _____   [7.    Trade Date:  __________________]10   Effective  Date:  __________________,  20__  [TO  BE  INSERTED  BY  ADMINISTRATIVE  AGENT  AND  WHICH  SHALL  BE  THE  EFFECTIVE  DATE  OF  RECORDATION  OF  TRANSFER IN THE REGISTER THEREFOR.]                                                                                                 5 List each Assignor, as appropriate.         6 List each Assignee and, if available, its market entity identifier, as appropriate.         7 Fill in the appropriate terminology for the types  of  facilities under the Credit Agreement that are being  assigned under this Assignment.         8 Amounts in this column and in the column immediately to the right to be adjusted by the counterparties to  take into account any payments or prepayments made between the Trade Date and the Effective Date.         9 Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.         10 To be completed if the Assignor(s) and the Assignee(s) intend that the minimum assignment amount is to  be determined as of the Trade Date.                                            A-3                              Form of Assignment and Assumption 

 

               The terms set forth in this Assignment and Assumption are hereby agreed to:                                             ASSIGNOR[S]11                                            [NAME OF ASSIGNOR]                                                                                        By: _____________________________                                               Name:  [Type Signatory Name]                                               Title:  [Type Signatory Title]                                                                                        [NAME OF ASSIGNOR]                                                                                        By: _____________________________                                               Name:  [Type Signatory Name]                                               Title:  [Type Signatory Title]                                                                                        ASSIGNEE[S]12                                            [NAME OF ASSIGNEE]                                                                                        By: _____________________________                                               Name:  [Type Signatory Name]                                               Title:  [Type Signatory Title]                                                                                                                                    [NAME OF ASSIGNEE]                                                                                        By: _____________________________                                               Name:  [Type Signatory Name]                                               Title:  [Type Signatory Title]                                                                 11 Add additional signature blocks as needed. Include both Fund/Pension Plan and manager making the trade  (if applicable).        12 Add additional signature blocks as needed. Include both Fund/Pension Plan and manager making the trade  (if applicable).                                        A-4                           Form of Assignment and Assumption 

 

             [Consented to and]13 Accepted:    BANK OF AMERICA, N.A., as    Administrative Agent    By: _________________________________     Name:  [Type Signatory Name]     Title:  [Type Signatory Title]    [Consented to:]14    [NAME OF RELEVANT PARTY], as [      ]    By: _________________________________     Name:  [Type Signatory Name]     Title:  [Type Signatory Title]                                                                 13 To  be  added  only  if  the  consent  of  the  Administrative  Agent  is  required  by  the  terms  of  the  Credit  Agreement.         14 To be added only if the consent of the Loan Parties and/or other parties (e.g. Swing Line Lender, Fronting  Banks) is required by the terms of the Credit Agreement.                                        A-5                           Form of Assignment and Assumption 

 

                                           ANNEX 1 TO ASSIGNMENT AND ASSUMPTION                                  [___________________]15                         STANDARD TERMS AND CONDITIONS FOR                              ASSIGNMENT AND ASSUMPTION             1.   Representations and Warranties.             1.1. Assignor[s].  [The][Each] Assignor (a) represents and warrants that (i) it is the  legal  and  beneficial  owner  of  [the][the  relevant]  Assigned  Interest,  (ii)  [the][such]  Assigned  Interest is free and clear of any lien, encumbrance or other adverse claim, (iii) it has full power  and  authority,  and  has  taken  all  action  necessary, to  execute  and  deliver  this  Assignment  and  Assumption  and  to  consummate  the  transactions  contemplated hereby  and  (iv)  it  is [not] a  Defaulting Lender; and (b) assumes no responsibility with respect to (i) any statements, warranties  or  representations  made  in  or  in  connection  with  the  Credit  Agreement  or  any  other  Loan  Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value  of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower,  any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document  or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any  other Person of any of their respective obligations under any Loan Document.             1.2. Assignee.                   (1)     [The][Each] Assignee represents and warrants that:                              (i) it  has  full  power  and  authority,  and  has  taken  all  action                  necessary,  to  execute  and  deliver  this  Assignment  and  Assumption  and  to                  consummate the transactions contemplated hereby and to become a Lender                  under the Credit Agreement;                              (ii) it meets all the requirements to be an assignee under Section                  10.06(b)(iii) and (v) of the Credit Agreement (subject to such consents, if any,                  as may be required under Section 10.06(b)(iii) of the Credit Agreement);                              (iii) from and after the Effective Date, it shall be bound by the                  provisions of the Credit Agreement as a Lender thereunder and, to the extent                  of [the][the relevant] Assigned Interest, shall have the obligations of a Lender                  thereunder;                              (iv) it is sophisticated with respect to decisions to acquire assets                  of the type represented by [the][such] Assigned Interest and either it, or the                                                                15 Describe Credit Agreement at option of Administrative Agent.                                        A-6                           Form of Assignment and Assumption 

 

             Person  exercising  discretion  in  making  its  decision  to  acquire  [the][such]            Assigned Interest, is experienced in acquiring assets of such type;                        (v)  it  has  received  a  copy  of  the  Credit  Agreement,  and  has            received or has been accorded the opportunity to receive copies of the most            recent  financial  statements  delivered  pursuant  to  Section 6.01 thereof,  as            applicable, and such other documents and information as it deems appropriate            to make its own credit analysis and decision to enter into this Assignment and            Assumption and to purchase [the][such] Assigned Interest;                        (vi)  it  has,  independently  and  without  reliance  upon  the            Administrative Agent or any other Lender and based on such documents and            information as it has deemed appropriate, made its own credit analysis and            decision  to  enter  into  this  Assignment  and  Assumption  and  to  purchase            [the][such] Assigned Interest; and                         (vii)  if  it  is  a  Foreign  Lender,  attached  hereto  is  any            documentation  required to  be  delivered  by  it  pursuant to the  terms  of  the            Credit Agreement, duly completed and executed by [the][such] Assignee;              (2)     [The][Each] Assignee agrees that:                        (i)  it  will,  independently  and  without  reliance  upon  the            Administrative Agent, [the][any] Assignor or any other Lender, and based on            such  documents  and  information  as  it  shall  deem  appropriate  at  the  time,            continue to make its own credit decisions in taking or not taking action under            the Loan Documents; and                        (ii)  it  will  perform  in  accordance  with  their  terms  all  of  the            obligations which  by the terms of the Loan Documents are required to be            performed by it as a Lender.;             [(3)    [The][Each]  Assignee  (x)  represents  and  warrants,  as  of  the  Effective Date, to, and (y) covenants, from the Effective Date to the date such Person ceases  being a Lender party to the Credit Agreement, for the benefit of, [the][each] Assignor, the  Administrative  Agent  and the  Arranger  and  their  respective  Affiliates,  and  not,  for the  avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that at  least one of the following is and will be true:                        (i) [the][such]  Assignee  is not using  “plan assets” (within the            meaning of 29 CFR § 2510.3-101, as modified by Section 3(42) of ERISA)            of  one  or  more  Benefit  Plans  in connection  with  the  Loans 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                                 A-7                     Form of Assignment and Assumption 

 

                         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 [the][such] Assignee’s entrance into,                  participation  in,  administration  of  and  performance  of  the  Loans,  the                  Commitments and the Credit Agreement and acquisition and holding of the                  Assigned Interest;                              (iii) (A) [the][such] Assignee 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  [the][such]  Assignee  to  enter  into,                  participate in, administer and perform the Loans, the Commitments and the                  Credit Agreement and acquire and hold the Assigned Interest, (C) the entrance                  into, participation  in, administration of  and performance of the Loans, the                  Commitments and the Credit Agreement and the acquisition and holding of                  the Assigned Interest satisfies the requirements of sub-sections (b) through                  (g)  of  Part  I  of  PTE  84-14  and  (D)  to  the  best  knowledge  of  [the][such]                  Assignee,  the  requirements  of  subsection  (a)  of Part  I  of  PTE  84-14  are                  satisfied with respect to [the][such] Assignee’s entrance into, participation in,                  administration of and performance of the Loans, the Commitments and the                  Credit Agreement and acquisition and holding of the Assigned Interest; or                              (iv) such other representation, warranty and covenant as may be                  agreed  in  writing  between  the  Assignor,  in  its  sole  discretion,  the                  Administrative Agent, in its sole discretion, and [the][such] Assignee.16                   (4) In addition, unless either (1) sub-clause (i) in the immediately preceding        clause  (3)  is  true  with  respect  to  [the][an]  Assignee  or  (2)  [the][such]  Assignee  has        provided another representation, warranty and covenant in accordance with sub-clause (iv)        in the immediately preceding clause (3), [the][such] Assignee further (x) represents and        warrants, as of the Effective Date, to, and (y) covenants, from the Effective Date to the date        such  Person  ceases  being  a  Lender  party  to  the  Credit  Agreement,  for  the  benefit  of,        [the][each]  Assignor,  the  Administrative  Agent  and  the  Arranger  and  their  respective        Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower, that        none  of  [the][any]  Assignor, the  Administrative  Agent  or the  Arranger  or  any  of  their        respective  Affiliates  is  a  fiduciary  with  respect  to  the  assets  of  [the][such]  Assignee        involved in the Loans, the Commitments or the Credit Agreement (including in connection                                                                 16 This “escape-hatch” provision is expected to be used only in rare instances where a party cannot comply  with the other representations and covenants as drafted or in the event substantive ERISA provisions are later amended  or modified.                                        A-8                           Form of Assignment and Assumption 

 

               with the reservation or exercise of any rights by the Administrative Agent under the Credit        Agreement, any Loan Document or any documents related thereto).]17             2.   Payments.  From and after the Effective Date, the Administrative Agent shall  make all payments in respect of [the][each] Assigned Interest (including payments of principal,  interest, fees and other amounts) to [the][the relevant] Assignor for amounts which have accrued  to but excluding the Effective Date and to [the][the relevant] Assignee for amounts which have  accrued from and after the Effective Date.  Notwithstanding the  foregoing, the Administrative  Agent shall make all payments of interest, fees or other amounts paid or payable in kind from and  after the Effective Date to [the][the relevant] Assignee.             3.   General Provisions.  This Assignment and Assumption shall be binding upon,  and inure to the benefit of, the parties hereto and their respective successors and assigns.  This  Assignment and Assumption may be executed in any number of counterparts, which together shall  constitute  one  instrument.   Delivery  of  an  executed  counterpart  of  a  signature  page  of  this  Assignment and Assumption by telecopy shall be effective as delivery of a manually executed  counterpart  of  this  Assignment  and  Assumption.   This  Assignment  and  Assumption  shall  be  governed by, and construed in accordance with, the law of the State of New York.                                                                                                                17 If the Credit Agreement contains the ERISA-related Lender representations, bracketed text is not required  to be included in the form of Assignment and Assumption Agreement.  However, if new lenders are entering the Credit  Agreement pursuant to an amendment, amendment and restatement, incremental facility or otherwise, and the Credit  Agreement does not contain the ERISA-related Lender representation set forth in Section 9.11 of the form Credit  Agreement,  the  form  of  Assignment  and  Assumption  Agreement  should  be  modified  to  include  the  bracketed  language.                                        A-9                           Form of Assignment and Assumption 

 

                                                                            EXHIBIT B                         FORM OF COMPLIANCE CERTIFICATE                                                                                                          Check for distribution to PUBLIC and Private side Lenders1                                                                                                        Financial Statement Date:              ,       To:   Bank of America, N.A., as Administrative Agent   Ladies and Gentlemen:         Reference  is  made  to  that  certain  Credit  Agreement,  dated  as  of August  24, 2020 (as  amended, restated, extended, supplemented or otherwise modified in writing from time to time,  the “Agreement;” the terms defined therein being used herein as therein defined), among Globe  Life Inc., a Delaware corporation (the “Borrower”), TMK Re, Ltd., the Lenders from time to time  party thereto, and]Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C  Administrator.         The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is  the                                  of  the  Borrower,  and  that,  as  such,  he/she  is  authorized to execute and deliver this Certificate to the Administrative Agent on the behalf of the  Borrower, and that:              [Use following paragraph 1 for fiscal year-end financial statements]         1.    The Borrower has delivered the year-end audited financial statements required by  Section 6.01(a) of the Agreement for the fiscal year of the Borrower ended as of the above date,  together with the report and opinion of an independent certified public accountant required by such  section.             [Use following paragraph 1 for fiscal quarter-end financial statements]         1.    The Borrower has delivered the unaudited financial statements required by Section  6.01(b) of the Agreement for the fiscal quarter of the Borrower ended as of the above date.  Such  financial statements fairly present the financial condition, results of operations and cash flows of                                                               1     If this is not checked, this certificate will only be posted to Private side Lenders.                                        B-1                              Form of Compliance Certificate 

 

         the Borrower and its Subsidiaries in accordance with GAAP as at such date and for such period,  subject only to normal year-end audit adjustments and the absence of footnotes.         2.    The undersigned has reviewed and is familiar with the terms of the Agreement and  has made, or has caused to be made under his/her supervision, a detailed review of the transactions  and condition (financial or otherwise) of the Borrower during the accounting period covered by  such financial statements.         3.    A review of the activities of the Borrower during such fiscal period has been made  under the supervision of the undersigned with a view to determining whether during such fiscal  period the Borrower performed and observed all its Obligations under the Loan Documents, and                                     [select one:]        [to the best knowledge of the undersigned, during such fiscal period the Borrower  performed and observed each covenant and condition of the Loan Documents applicable to  it, and no Default has occurred and is continuing.]                                       --or--           [to the best knowledge of the undersigned, during such fiscal period the following     covenants or conditions have not been performed or observed and the following is a list     of each such Default and its nature and status:]         4.    The representations and warranties of the Borrower contained in Article V of the  Agreement (excluding Section 5.05(c)), and any representations and warranties of any Loan Party  that are contained in any document furnished at any time under or in connection with the Loan  Documents,  are  true  and  correct  on  and  as  of  the  date  hereof,  except  to  the  extent  that  such  representations and warranties specifically refer to an earlier date, in which case they are true and  correct as of such earlier date, and except that for purposes of this Compliance Certificate, the  representations  and  warranties  contained  in subsections  (a) and (b) of Section  5.05 of  the  Agreement shall be deemed to refer to the most recent statements furnished pursuant to subsections  (a) and (b), respectively, of Section 6.01 of the Agreement, including the statements in connection  with which this Compliance Certificate is delivered.         5.    The financial covenant analyses and information set forth on Schedule 1 attached  hereto are true and accurate on and as of the date of this Certificate.                                                                    B-2                              Form of Compliance Certificate 

 

   IN  WITNESS  WHEREOF,   the  undersigned  has  executed  this  Certificate  as  of          ,         .                                 GLOBE LIFE INC.                                                                                                By:                                                                          Name:  [Type Signatory Name]                                   Title:  [Type Signatory Title]                                   B-3                        Form of Compliance Certificate 

 

                              For the Quarter/Year ended ___________________(“Statement Date”)                                      SCHEDULE 1                                to the Compliance Certificate                                       ($ in 000’s)   I.    Section 7.07(a) – Consolidated Net Worth.        A.    Consolidated common and preferred shareholders’ equity              determined in accordance with GAAP at Statement Date $                    B.    “Accumulated Other Comprehensive Income (Loss)” shown              on a consolidated balance sheet of the Borrower and its              Subsidiaries at Statement Date                     $                      C.    Actual Consolidated Net Worth at Statement Date (Lines I.A              [+/-] I.B):                                        $                      D.    Amount specified in Section 7.07(a)(i):            $ 4,000,000,000         E.    50% of Net Proceeds from issuance and sale of Equity              Interests after December 31, 2019 (other than issuances of              securities pursuant to any employee equity compensation              plan or agreement or other employee equity compensation              arrangement, any employee benefit plan or agreement or              other employee benefit arrangement or any nonemployee              director equity compensation plan or agreement or other non-             employee director equity compensation arrangement or              pursuant to the exercise or vesting of any employee or              director stock options, restricted stock or restricted stock              units, warrants or other equity awards):           $                      F.    Minimum required Consolidated Net Worth               (Lines I.D + I.E):                                 $                      G.    Excess (deficient) for covenant compliance (Line I.C –              I.F):                                              $                        II.   Section 7.07(b) – Consolidated Indebtedness to Consolidated        Capitalization         A.    Indebtedness determined in accordance with GAAP at Statement              Date:                                                 $                   B.    Subordinated Debt, the aggregate principal amount of which does              not exceed 15% of Total Capitalization at Statement Date $                C.    Borrowings made by any Insurance Subsidiary from any FHLB              to the extent such borrowings are of the type customarily              excluded from financial leverage by both S&P and Moody’s in              their evaluation of such Insurance Subsidiary or similarly                                        B-4                              Form of Compliance Certificate 

 

         positioned person at Statement Date                   $             D.    Consolidated Indebtedness at Statement Date (Line II.A – Line        II.B – Line II.C):                                    $             E.    Consolidated Capitalization at Statement Date        1.    Consolidated Net Worth (Line I.C above)         $                   2.    Consolidated Indebtedness (Line II.D above)     $                   3.    Subordinated Debt, the aggregate principal amount of        which does not exceed 15% of Total Capitalization at Statement        Date                                                  $                   4.    Consolidated Capitalization (Line II.E.1 + Line II.E.2 +        Line II.E.3):           $                               F.    Consolidated Indebtedness to Consolidated Capitalization (Line        II.D   Line II.E.4):                                        to 1.00  Maximum permitted:                                          0.40 to 1.00                                                                  B-5                        Form of Compliance Certificate 

 

                                                                            EXHIBIT C                                                                                                                FORM OF LOAN NOTICE                                                                                                     Date:  ___________, _____1   To:   Bank of America, N.A., as Administrative Agent   Ladies and Gentlemen:         Reference  is  made  to  that  certain  Credit  Agreement,  dated  as  of August  24,  2020 (as  amended, restated, extended, supplemented or otherwise modified in writing from time to time,  the “Agreement;” the terms defined therein being used herein as therein defined), among Globe  Life Inc., a Delaware corporation (the “Borrower”), TMK Re, Ltd., the Lenders from time to time  party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C  Administrator.         The undersigned hereby requests (select one)2:            Indicate:   Indicate:  Indicate:    Indicate:     For Eurodollar         Borrowing   Applicable Requested     Base Rate       Rate Loans             or       Borrower   Amount         Loan           Indicate:          Conversion    Name                      or       Interest Period (e.g.            or                              Eurodollar    1, 2, 3 or 6 month       Continuation                         Rate Loan      interest period)                                                                                                                                                                                        The Revolving Borrowings requested herein comply with the provisos to the first sentence  of Section 2.01 of the Agreement.                                                           1 Note to Borrower.  All requests submitted under a single Loan Notice must be effective on the same date.  If multiple effective  dates are needed, multiple Loan Notices will need to be prepared and signed.   2 Note to Borrower.  For multiple borrowings, conversions and/or continuations for a particular facility, fill out a new row for each  borrowing/conversion and/or continuation.                                         C-1                                  Form of Loan Notice 

 

                           GLOBE LIFE INC.                     By:                                                 Name:  [Type Signatory Name]          Title:  [Type Signatory Title]                           C-1   Form of Loan Notice 

 

                                                                            EXHIBIT D                                                                                                              FORM OF REVOLVING NOTE   $_______________                                            _____________, ____         FOR VALUE RECEIVED, the undersigned (the “Borrower”), hereby promises to pay to  _____________________ or registered assigns (the “Lender”), in accordance with the provisions  of the Agreement (as hereinafter defined), the principal amount of each Loan from time to time  made by the Lender to the Borrower under that certain Credit Agreement, dated as of August 24,  2020 (as amended, restated, extended, supplemented or otherwise modified in writing from time  to time, the “Agreement;” the terms defined therein being used herein as therein defined), among  the Borrower, TMK Re, Ltd., the Lenders from time to time party thereto, and Bank of America,  N.A., as Administrative Agent, Swing Line Lender and L/C Administrator.         The Borrower promises to pay interest on the unpaid principal amount of each Revolving  Loan from the date of such Revolving Loan until such principal amount is paid in full, at such  interest rates and at such times as provided  in the Agreement.  All payments of principal  and  interest shall be made to the Administrative Agent for the account of the Lender in Dollars in  immediately available funds at the Administrative Agent’s Office.  If any amount is not paid in  full when due hereunder, such unpaid amount shall bear interest, to be paid upon demand, from  the  due  date  thereof  until  the  date  of  actual  payment  (and  before  as well  as  after  judgment)  computed at the per annum rate set forth in the Agreement.         This Note is one of the Revolving Notes referred to in the Agreement, is entitled to the  benefits thereof and may be prepaid in whole or in part subject to the terms and conditions provided  therein.  Upon the occurrence and continuation of one or more of the Events of Default specified  in the Agreement, all amounts then remaining unpaid on this Revolving Note shall become, or may  be declared to  be, immediately due and payable all as provided  in the Agreement.  Revolving  Loans made by the Lender shall be evidenced by one or more loan accounts or records maintained  by the Lender in the ordinary course of business. The Lender may also attach schedules to this  Revolving Note and endorse thereon the date, amount and maturity of its Revolving Loans and  payments with respect thereto.         The Borrower, for itself, its successors and assigns, hereby waives diligence, presentment,  protest and demand and notice of protest, demand, dishonor and non-payment of this Revolving  Note.                                         D-1                               Form of Revolving Note 

 

               THIS REVOLVING    NOTE  SHALL  BE  GOVERNED  BY  AND  CONSTRUED  IN  ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.                                       GLOBE LIFE INC.                                                                                                                  By:                                                                                Name:  [Type Signatory Name]                                         Title:  [Type Signatory Title]                                         D-2                               Form of Revolving Note 

 

                   LOANS AND PAYMENTS WITH RESPECT THERETO                                                                                      Amount                                               of                                            Principal                                               or      Outstandin           Type of    Amount     End of     Interest  g Principal             Loan      of Loan    Interest  Paid This   Balance    Notation  Date       Made       Made      Period      Date      This Date  Made By                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               D-3                            Form of Revolving Note 

 

                                                                            EXHIBIT E                         FORM OF SEVERAL LETTER OF CREDIT   FOR INTERNAL IDENTIFICATION PURPOSES ONLY   (Does not Affect Terms of Letter of Credit or Letter of Credit Bank’s Obligations Thereunder)   Issue Date: ______________ , 20__  Expiry Date: ______________ , 20__  L/C No. [____________]                                                                   21 Amount: $ _____________ (                                       )                          22 Applicant: [ ____________ ]                           [ ____________ ]                          [ ____________ ]     Date: ________      IRREVOCABLE CLEAN                                   ISSUE DATE   _____________   LETTER OF CREDIT NO. ______                        23 To: [BENEFICIARY]               [ __________________ ]        [ __________________ ]        [ __________________ ]                We, the issuing banks listed below (hereinafter referred to individually as a “Letter  of  Credit  Bank,”  and  collectively,  the  “Letter  of  Credit  Banks”),  hereby  establish  this  clean,  irrevocable and unconditional Letter of Credit in your favor as Beneficiary for drawing up to an  aggregate  amount  of  U.S. $____________  (the  “Letter  of  Credit  Commitment”)  effective  immediately. This Letter of Credit shall expire with the close of business of the Letter of Credit  Agent  (defined  below)  on  _____________.  Except  when  the  Letter  of  Credit  Commitment  is   increased or amended to reflect a change in Commitment Share (defined below) or Letter of Credit  Bank as set forth in the last paragraph hereof, this Letter of Credit cannot be modified or revoked  without the consent of the Beneficiary.               [The term “Beneficiary” includes any successor by operation of law of the named  Beneficiary  including,  without  limitation,  any  such  liquidator,  rehabilitator,  receiver  or  conservator. Drawings  by any  liquidator, rehabilitator, receiver or conservator shall  be  for the                                                                21 Insert initial amount of the Letter of Credit.        22 Insert name of party for whom Letter of Credit will be issued.        23 Insert full name and address of the Beneficiary.                                          E - 4                                  Form of Several Letter of Credit 

 

         benefit of all the Beneficiary’s policyholders.]24 The term “Business Day” means a day which is  not  a  Saturday,  Sunday,  or  any  other  day  on  which  banking  institutions  in  [Charlotte,  North  Carolina] or the city  in which the payment office of the Letter of Credit  Agent  is  located are  required by law to be closed.               Bank of America, N.A., has been appointed by the Letter of Credit Banks, has been  granted the authority by the Letter of Credit Banks to act as, and has been irrevocably granted a  power of attorney by the Letter of Credit Banks to act as agent (in such capacity, the “Letter of  Credit Agent”) for the Letter of Credit Banks obligated under this Letter of Credit. The Letter of  Credit Agent has full power of attorney from such Letter of Credit Banks to act on their behalf  hereunder to (i) execute and deliver this Letter of Credit, (ii) receive drafts, other demands for  payment and other documents presented by the Beneficiary  hereunder, (iii) determine whether  such drafts, demands and documents are in compliance with the terms of this Letter of Credit, and  (iv) notify the Letter of Credit Banks and the account party that a valid drawing has been made  and the date that the related payment under this Letter of Credit is to be made; provided, however,  that the Letter of Credit Agent, in its capacity as such, shall have no obligation or liability for any  payment under this Letter of Credit (other than payment to the Beneficiary of such funds as have  been made available to it by the Letter of Credit Banks pursuant to the Beneficiary’s draw).               The maximum liability of each Letter of Credit Bank with respect to any demand  for payment made hereunder shall be its commitment share of the amount of such demand for  payment, as set forth on Schedule I attached hereto (the “Commitment Share”).               The obligations of the Letter of Credit Banks hereunder are several and not joint,  and no Letter of Credit Bank shall be responsible or otherwise liable for the failure of any other  Letter of Credit Bank to perform its obligations hereunder, nor shall the failure of any Letter of  Credit Bank to perform its obligations under this Letter of Credit relieve any other Letter of Credit  Bank of its obligations hereunder.               Subject to the further provisions of this Letter of Credit, on or before the expiration  date hereof [or any automatically extended expiry date]25, demands for payment may be made by  the Beneficiary by presentation on a Business Day to the Letter of Credit Agent of a sight draft drawn  on the Letter of Credit Agent indicating the Letter of Credit No. ________, for all or any part of  this  Letter  of  Credit  at  the  Letter  of  Credit  Agent’s  office  located  at  _________________________________________.  Facsimile  of  the  draw  documents  is  acceptable to [______________]26. If presentation is made by fax prompt phone notification must                                                                24 Insert if Letter of Credit is being issued to back a reinsurance policy and such language is required by the applicable  insurance regulator. Additional changes to the letter of credit to reflect regulatory requirements will be inserted if necessary.         25 Delete if not inserting automatic extension provision.         26 Bank of America to provide.                                           E - 5                                  Form of Several Letter of Credit 

 

         be given to [______________]27. The fax presentation shall be deemed the original presentation.  In  the  event of  a  full  or  final  drawing the  original  Letter of  Credit  must  be  returned to  us  by  overnight courier at time of fax presentation.               We, the Letter of Credit Banks listed herein, hereby severally undertake to promptly  honor all of a Beneficiary’s demands for payment hereunder upon delivery of the sight draft as  specified to the Letter of Credit Agent’s aforesaid office.               Except as expressly stated herein, this undertaking is not subject to any agreement,  requirement or qualification. The obligations of each Letter of Credit Bank under this Letter of  Credit is the individual obligation of such Letter of Credit Bank and is in no way contingent upon  reimbursement with respect thereto, or upon its ability to perfect any lien, security interest or any  other reimbursement.               Upon payment to you by a Letter of Credit Bank of its Commitment Share of the  drawing amount specified in a demand presented hereunder, such Letter of Credit Bank shall be  fully discharged of its obligation under this Letter of Credit to the extent of its Commitment Share  of such demand and such Letter of Credit Bank shall not thereafter be obligated to make any further  payments under this Letter of Credit in respect of such demand.               [This Letter of Credit shall be deemed automatically extended without amendment  for one year from the expiration date hereof or any future expiration date unless at least thirty days  prior to such expiration date, the Letter of Credit Agent notifies you by registered mail or overnight  courier service that this Letter of Credit will not be extended for any such additional period.]28               This Letter of Credit is subject to and governed by the law(s) of the State of  [New York] [Nebraska], and the International Standby Practices 98 (ISP98) (International  Chamber of Commerce Publication No. 590). In the event of any conflict, the laws of the  State of [New York] [Nebraska] will control.               Except  to  the  extent  the  amount  of  the  Letter  of  Credit  Commitment  may  be  increased, this Letter of Credit cannot be modified or revoked without the Beneficiary’s written  consent, provided that this Letter of Credit may be amended to delete a Letter of Credit Bank or  add a Letter of Credit Bank or change Commitment Shares, in each case without the Beneficiary’s  consent, by an amendment signed only by the Letter of Credit Agent so long as such amendment  does not decrease the amount of the Letter of Credit Commitment and any Letter of Credit Bank  added  shall  be  approved  by  the  Securities  Valuation  Office  of  the  National  Association  of  Insurance Commissioners.                                       Very truly yours,                                                                27 Bank of America to provide.          28 Insert if auto-extension is applicable.                                           E - 6                                  Form of Several Letter of Credit 

 

                           BANK OF AMERICA, N.A., as Letter of Credit       Agent                     By:                                                 Name:  [Type Signatory Name]          Title:  [Type Signatory Title]             E - 7   Form of Several Letter of Credit 

 

                                     Schedule I   Letter of Credit Bank Information with Respect to Letter of Credit No. __________    LETTER OF CREDIT        COMMITMENT SHARE           MAXIMUM SHARE OF         BANK                                         LETTER OF CREDIT                                                        COMMITMENT         [Lender]             _______________%          U.S.$_____________         [Lender]             _______________%          U.S.$_____________         [Lender]             _______________%          U.S.$_____________                                 TOTAL                    100%             U.S. $_____________                                         E - 8                               Form of Several Letter of Credit 

 

                                                                            EXHIBIT F                          FORM OF SWING LINE LOAN NOTICE                                                                Date:  ____ ,   To:   Bank of America, N.A., as Swing Line Lender          Bank of America, N.A., as Administrative Agent         Ladies and Gentlemen:         Reference  is  made  to  that  certain  Credit  Agreement,  dated  as  of August  24,  2020 (as  amended, restated, extended, supplemented or otherwise modified in writing from time to time,  the “Agreement;” the terms defined therein being used herein as therein defined), among Globe  Life Inc., a Delaware corporation, (the “Borrower”), TMK Re, Ltd., the Lenders from time to time  party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C  Administrator.         The undersigned hereby requests a Swing Line Loan:         1.    On ___________________________ (a Business Day).         2.    In the amount of $_________________.         The Swing Line Borrowing requested herein complies with the requirements of the  provisos to the first sentence of Section 2.04(a) of the Agreement.                                       GLOBE LIFE INC.                                                                                                                  By:                                                                                Name:  [Type Signatory Name]                                         Title:  [Type Signatory Title]                                                             F - 9                                  Form of Swing Line Loan Notice 

 

                                                                            EXHIBIT G                              FORM OF SWING LINE NOTE   $35,000,000.00                                              _____________, ____         FOR VALUE RECEIVED, the undersigned (the “Borrower”), hereby promises to pay to  BANK  OF  AMERICA,  N.A. (“Swing  Line Lender”)  or  registered  assigns  (the  “Lender”),  in  accordance with the provisions of the Agreement (as hereinafter defined), the principal amount of  each Swing Line Loan from time to time made by the Swing Line Lender to each Borrower under  that  certain  Credit  Agreement,  dated  as  of August  24,  2020 (as  amended,  restated,  extended,  supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms  defined therein being used herein as therein defined), among the Borrower, TMK Re, Ltd., the  Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent,  Swing Line Lender and L/C Administrator.         The Borrower promises to pay interest on the unpaid principal amount of each Swing Line  Loan from the date of such Swing Line Loan until such principal amount is paid in full, at such  interest rates and at such times as provided in the Agreement. All payments of principal and interest  shall be made to the Administrative Agent for the account of the Swing Line Lender in Dollars in  immediately available funds at the Administrative Agent’s Office. If any amount is not paid in full  when due hereunder, such unpaid amount shall bear interest, to be paid upon demand, from the  due date thereof until the date of actual payment (and before as well as after judgment) computed  at the per annum rate set forth in the Agreement.         This Note is the Swing Line Note referred to in the Agreement, is entitled to the benefits  thereof and may be prepaid in whole or in part subject to the terms and conditions provided therein.  Upon the occurrence and continuation of one or more of the Events of Default specified in the  Agreement, all amounts then remaining unpaid on this Swing Line Note shall become, or may be  declared to be, immediately due and payable all as provided in the Agreement. Swing Line Loans  made  by  the  Swing  Line  Lender  shall  be  evidenced  by  one  or  more  loan  accounts or  records  maintained by the Swing Line Lender in the ordinary course of business. The Swing Line Lender  may  also  attach schedules  to  this Swing  Line Note  and  endorse thereon the  date,  amount  and  maturity of the Swing Line Loans and payments with respect thereto.         The Borrower, for itself, its successors and assigns, hereby waives diligence, presentment,  acceleration,  and  notice  of  acceleration,  protest  and  demand  and  notice  of  protest,  demand,  dishonor and non-payment of this Swing Line Note.                                           G - 1                                    Form of Swing Line Note 

 

               THIS  SWING  LINE  NOTE  SHALL  BE  GOVERNED  BY,  AND  CONSTRUED  IN  ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.                                       GLOBE LIFE INC.                                                                                                                  By:                                                                                Name:  [Type Signatory Name]                                         Title:  [Type Signatory Title]                                                                                        G - 2                                    Form of Swing Line Note 

 

             SWING LINE LOANS AND PAYMENTS WITH RESPECT THERETO                                Amount of      Outstanding                               Principal or   Principal                 Amount of     Interest Paid  Balance This  Notation  Date           Loan Made     This Date      Date          Made By                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            G - 3                                 Form of Swing Line Note 

 

                                                                            EXHIBIT H                       FORM OF BORROWING BASE CERTIFICATE   To:   Bank of America, N.A.,         as Administrative Agent                Re:   Globe Life Inc.          Ladies and Gentlemen:         Reference  is  made  to  that  certain  Credit  Agreement,  dated  as  of August  24,  2020 (as  amended, restated, extended, supplemented or otherwise modified in writing from time to time,  the “Agreement;” the terms defined therein being used herein as therein defined), among Globe  Life Inc., a Delaware corporation (the “Borrower”), TMK Re. Ltd., the Lenders from time to time  party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C  Administrator. This Certificate, together with supporting calculations attached hereto set forth in  reasonable detail, is delivered to you pursuant to the terms of the Agreement.         We hereby certify and warrant to the Administrative Agent, the L/C Administrator, the  Fronting Banks and the Lenders that at the close of business on __________, ___ (the “Borrowing  Base Calculation Date”), the Borrowing Base for the undersigned was $____________ and the  amount of the Secured L/C Obligations was $_____________.         We hereby further certify and warrant to the Administrative Agent, the L/C Administrator,  the Fronting Banks and the Lenders that the information and computations contained herein are  true and correct in all material respects as of the Borrowing Base Calculation Date.         IN WITNESS WHEREOF, the Borrower has caused this Certificate to be executed and  delivered by a Responsible Officer this __ day of ____________, ____.                                       GLOBE LIFE INC.                                                                                                                  By:                                                                                Name:  [Type Signatory Name]                                         Title:  [Type Signatory Title]                                           H - 1                                 Form of Borrowing Base Certificate 

 

                          SCHEDULE I TO BORROWING BASE CERTIFICATE                            DATED AS OF: ____________, _____   I.    BORROWER’S BORROWING BASE CALCULATION                       [FORM TO BE PROVIDED BY BORROWER]                                           H - 2                                 Form of Borrowing Base Certificate 

 

                      SCHEDULE II TO BORROWING BASE CERTIFICATE           DATED AS OF ____________, _____   [Attach list of Eligible Collateral by category (including rating)]                          H - 3                Form of Borrowing Base Certificate 

 

                                                                       EXHIBIT I                                                                                                                                                                                                       FORM OF                         U.S. TAX COMPLIANCE CERTIFICATE        (For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)                                                          Reference is hereby made to the Credit Agreement dated as of August 24, 2020 (as  amended, supplemented or otherwise modified from time to time, the “Credit Agreement”) among  Globe Life Inc., a Delaware corporation (the “Borrower”), TMK Re, Ltd., the Lenders from time  to time party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender  and L/C Administrator.               Pursuant  to  the  provisions  of Section  3.01(e) of  the  Credit  Agreement,  the  undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as  well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate,  (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten  percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and  (iv)  it  is  not  a  controlled  foreign  corporation  related  to  the  Borrower  as  described  in  Section  881(c)(3)(C) of the Code.               The undersigned has furnished the Administrative Agent and the Borrower with a  certificate of its non-U.S. Person status on IRS Form W-8BEN-E (or W-8BEN, as applicable).  By  executing  this  certificate,  the  undersigned  agrees  that  (1)  if  the  information  provided  on  this  certificate changes, the undersigned shall promptly so inform the Borrower and the Administrative  Agent,  and  (2)  the  undersigned  shall  have  at  all  times  furnished  the  Borrower  and  the  Administrative Agent with a properly completed and currently effective certificate in either the  calendar year in which each payment is to be made to the undersigned, or in either of the two  calendar years preceding such payments.                Unless otherwise defined herein, terms defined in the Credit Agreement and used  herein shall have the meanings given to them in the Credit Agreement.   [NAME OF LENDER]     By:  _______________________      Name:  [Type Signatory Name]      Title:  [Type Signatory Title]      Date: ________ __, 20[  ]                                               I                          Form of U.S. Tax Compliance Certificate 

 

                                     FORM OF                         U.S. TAX COMPLIANCE CERTIFICATE           (For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax                                     Purposes)                                                          Reference is hereby made to the Credit Agreement dated as of August 24, 2020 (as  amended, supplemented or otherwise modified from time to time, the “Credit Agreement”) among  Globe Life Inc., a Delaware corporation (the “Borrower”), TMK Re, Ltd., the Lenders from time  to time party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender  and L/C Administrator.               Pursuant  to  the  provisions  of Section  3.01(e) of  the  Credit  Agreement,  the  undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation  in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section  881(c)(3)(A)  of  the  Code,  (iii)  it  is  not  a  ten  percent  shareholder  of  the  Borrower  within  the  meaning of Section 871(h)(3)(B) of the Code, and (iv) it is not a controlled foreign corporation  related to the Borrower as described in Section 881(c)(3)(C) of the Code.               The undersigned has furnished its participating Lender with a certificate of its non- U.S.  Person  status on  IRS  Form  W-8BEN-E  (or  W-8BEN,  as  applicable).   By  executing  this  certificate, the undersigned agrees that (1) if the information provided on this certificate changes,  the undersigned shall promptly so inform such Lender in writing, and (2) the undersigned shall  have  at  all  times  furnished  such  Lender  with  a  properly  completed  and  currently  effective  certificate in either the calendar year in which each payment is to be made to the undersigned, or  in either of the two calendar years preceding such payments.               Unless otherwise defined herein, terms defined in the Credit Agreement and used  herein shall have the meanings given to them in the Credit Agreement.   [NAME OF PARTICIPANT]     By:  _______________________     Name:  [Type Signatory Name]     Title:  [Type Signatory Title]     Date: ________ __, 20[  ]                                             I                          Form of U.S. Tax Compliance Certificate 

 

                                        FORM OF                         U.S. TAX COMPLIANCE CERTIFICATE        (For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)                                                          Reference is hereby made to the Credit Agreement dated as of August 24, 2020 (as  amended, supplemented or otherwise modified from time to time, the “Credit Agreement”) among  Globe Life Inc., a Delaware corporation (the “Borrower”), TMK Re, Ltd., the Lenders from time  to time party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender  and L/C Administrator.                 Pursuant  to  the  provisions  of Section  3.01(e) of  the  Credit  Agreement,  the  undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of  which  it  is  providing  this  certificate,  (ii)  its  direct  or  indirect  partners/members  are  the  sole  beneficial  owners  of  such  participation,  (iii)  with  respect  such  participation,  neither  the  undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant  to a loan agreement entered into in the ordinary course of its trade or business within the meaning  of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten  percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and  (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the  Borrower as described in Section 881(c)(3)(C) of the Code.                The undersigned has furnished its participating Lender with IRS Form W-8IMY  accompanied by one of the following forms from each of its partners/members that is claiming the  portfolio interest exemption: (i) an IRS Form W-8BEN-E (or W-8BEN, as applicable) or (ii) an  IRS Form W-8IMY accompanied by an IRS Form W-8BEN-E (or W-8BEN, as applicable) from  each  of  such  partner’s/member’s  beneficial  owners  that  is  claiming  the  portfolio  interest  exemption.   By  executing  this  certificate,  the  undersigned  agrees  that  (1)  if  the  information  provided on this certificate changes, the undersigned shall promptly so inform such Lender and  (2) the undersigned shall have at all times furnished such Lender with a properly completed and  currently effective certificate in either the calendar year in which each payment is to be made to  the undersigned, or in either of the two calendar years preceding such payments.               Unless otherwise defined herein, terms defined in the Credit Agreement and used  herein shall have the meanings given to them in the Credit Agreement.   [NAME OF PARTICIPANT]     By:  _______________________     Name:  [Type Signatory Name]     Title:  [Type Signatory Title]     Date: ________ __, 20[  ]                                          I                   U.S. Tax Compliance CertificateError! Unknown document property name. 

 

                                              FORM OF                         U.S. TAX COMPLIANCE CERTIFICATE          (For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)                                                          Reference is hereby made to the Credit Agreement dated as of August 24, 2020 (as  amended, supplemented or otherwise modified from time to time, the “Credit Agreement”) among  Globe Life Inc., a Delaware corporation (the “Borrower”), TMK Re, Ltd., the Lenders from time  to time party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender  and L/C Administrator.               Pursuant  to  the  provisions  of Section  3.01(e) of  the  Credit  Agreement,  the  undersigned  hereby  certifies that (i)  it is the sole record owner of the Loan(s) (as well as any  Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct  or indirect partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s)  evidencing  such  Loan(s)),  (iii)  with  respect  to  the  extension  of  credit  pursuant  to  this  Credit  Agreement or any other Loan Document, neither the undersigned nor any of its direct or indirect  partners/members  is  a  bank  extending  credit  pursuant to  a  loan  agreement entered  into  in  the  ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code,  (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower  within  the  meaning  of  Section  871(h)(3)(B) of the  Code  and  (v)  none of  its  direct or  indirect  partners/members  is  a  controlled  foreign  corporation  related  to  the  Borrower  as  described  in  Section 881(c)(3)(C) of the Code.               The undersigned has furnished the Administrative Agent and the Borrower with  IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members  that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN-E (or W-8BEN, as  applicable) or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN-E (or W-8BEN,  as  applicable)  from  each  of  such  partner’s/member’s  beneficial  owners  that  is  claiming  the  portfolio interest exemption.  By executing this certificate, the undersigned agrees that (1) if the  information provided on this certificate changes, the undersigned shall promptly so inform the  Borrower and the Administrative Agent, and (2) the undersigned shall have at all times furnished  the Borrower and the Administrative  Agent with a properly completed and currently effective  certificate in either the calendar year in which each payment is to be made to the undersigned, or  in either of the two calendar years preceding such payments.               Unless otherwise defined herein, terms defined in the Credit Agreement and used  herein shall have the meanings given to them in the Credit Agreement.   [NAME OF LENDER]   By:  _______________________     Name:  [Type Signatory Name]     Title:  [Type Signatory Title]     Date: ________ __, 20[  ]                                            I                   U.S. Tax Compliance CertificateError! Unknown document property name.EX-10.1

 Exhibit 10.1 

RETIREMENT AND SEPARATION AGREEMENT 

AGREEMENT entered into as of this 25th day of August, 2020 by and between Hologic, Inc., a Delaware corporation with its principal place of
business at 250 Campus Drive, Massachusetts 01752 (the “Company”), and Peter J. Valenti, III an individual having his principal residence in Connecticut (the “Executive”). 

WHEREAS, the Executive currently serves as Division President, Breast and Skeletal Health; 

WHEREAS, the Executive and the Company previously entered into a Senior Vice President Severance Agreement, dated May 26, 2014 (the
“Severance Agreement”) and a Change of Control Agreement dated May 26, 2014 (the “Change of Control Agreement”); 

WHEREAS, the Executive desires to retire and the Company and Executive have come to a mutual understanding regarding this retirement; and 

WHEREAS, the Executive and the Company desire to provide for an amicable separation to their mutual benefit on the terms and conditions set
forth herein. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, the parties hereto, each
intending to be legally bound, do hereby agree as follows: 
 1.    Retirement as Executive. 

(a)    Retirement Date. Effective December 31, 2020 (the “Retirement Date”), the
Executive shall retire and cease to be an employee of the Company, and shall cease to serve in any and all positions held by him including, without limitation, as an employee, officer, director, manager, or member, as applicable, of the Company and
all direct or indirect subsidiaries of the Company. Nothing herein shall preclude the Executive from resigning or the Company from terminating the Executive for Cause (as defined in the Severance Agreement) from any positions prior to the Retirement
Date. 
 (b)    Transition. Effective on September 27, 2020, without any further notice
required of the Company or the Executive, the Executive shall cease to be Division President, Breast and Skeletal Health of the Company and shall instead serve as Senior Advisor to the Chief Executive Officer, a
non-executive officer position, with such duties and responsibilities reasonably determined by the Chief Executive Officer and consistent with such position. 

(c)    Compensation. From the date hereof until the Retirement Date, unless the Executive’s
employment with the Company is terminated earlier pursuant to Section 2(b) below, (i) the Executive shall be entitled to continue to receive base salary at a rate equal to his current annual base salary (“Base Salary”), payable
in accordance with the Company’s regular payroll practices; (ii) the Executive shall receive his annual cash bonus pursuant to the fiscal 2020 Short-Term Incentive Plan; (iii) as applicable, the Executive’s outstanding stock
options and restricted stock units, if any, will continue to vest in accordance with and subject to the terms and conditions set forth in the applicable equity incentive plans and award agreements; and (iv) the

 
Executive shall be entitled to participate in any and all retirement (both qualified and non-qualified), vacation and/or sick pay, medical, dental, life
insurance and other employee benefit plans in which he currently participates, all to the extent the Executive remains eligible under the terms of such plans and subject to the terms and conditions of such plans as may be in effect from time to
time, including (without limitation) the Company’s car allowance program. On the first payroll date following the Retirement Date, the Executive will receive his final paycheck with accrued and unpaid pay through that date as well as accrued
and unpaid vacation time and payment of all outstanding business expense reimbursements according to Company policy. 

2.    Separation Benefits. 

(a)    Separation Benefits. As a consequence of the cessation of the Executive’s employment as
contemplated herein and in full discharge of the Company’s obligations due to the Executive thereunder, the Company shall pay to the Executive or his heirs or estate, if applicable, subject to the Executive executing this Agreement, executing
the Release Agreement on or before the Retirement Date and such Release Agreement becoming effective and irrevocable, the following amounts (the “Severance Amounts”): (i) the Executive’s Base Salary for fifteen (15) months
following the Retirement Date, payable in accordance with the Company’s normal payroll practices; (ii) an amount equal to the product of (A) the Bonus Amount (as defined in the Severance Agreement) and (B) a fraction, the
numerator of which is the number of days in the current fiscal year through the Retirement Date (as defined below), and the denominator of which is 365, payable in lump sum; and (iii) a cash payment in lieu of welfare benefit continuation to
the Executive and his family for twelve (12) months following the Retirement Date, payable in lump sum. In addition to the foregoing, the Company shall take all necessary action to provide that all of the Executive’s accounts under the
Company’s Amended and Restated Deferred Compensation Program shall be fully vested as of the Retirement Date. Payments relating to the preceding subsections (i) through (iii) shall commence (or be paid in full, with respect to lump sum
payments) on the first regular payroll period that follows the Retirement Date. The payments under this Section 2 are subject to applicable withholding and taxes. Additionally, so long as the Executive continues to provide services to the
Company until the Retirement Date as contemplated by this Agreement, his outstanding equity awards shall continue to vest and be exercisable following his cessation of employment on the Retirement Date, as if he were “retirement eligible”
(as defined under the terms of the applicable equity award agreements), except that his outstanding and unvested Performance Share Units (“PSUs”) shall vest based on actual performance, without proration. For the avoidance of doubt, vested
stock options shall be exercisable until ninety (90) days after the last scheduled vesting date of all of Executive’s outstanding options, or the Expiration Date of the applicable option (as defined in the applicable option grant
agreement), whichever is earlier. 
 (b)    Termination for Cause. Notwithstanding anything to the
contrary herein, if the Executive is terminated by the Company for Cause (as defined in the Severance Agreement), at any time prior to the Retirement Date, then the Executive shall not be entitled to receive any further payments or benefits under
this Agreement and the Company shall have no further obligations to the Executive under this Agreement, except to the extent required by law. 

  
 2 

3.    Non-Competition Agreement. Executive agrees to continue
to comply with the Employee Intellectual Property Rights and Non-Competition Agreement previously executed and agreed to by Executive (the “Non-Competition
Agreement”). 
 4.    Other Severance Pay or Benefits. The separation benefits provided for in
Section 2 shall be in lieu of any other severance or termination pay to which the Executive may be entitled under any Company severance or termination plan, program or practice (whether written or unwritten) or agreement. Except as otherwise
provided herein, the Executive’s entitlement to any other compensation or benefits shall be determined in accordance with the terms and conditions of the Company’s employee benefit plans (other than severance or termination plans,
programs, practices or agreements) and other applicable programs, policies and practices then in effect. Company agrees that it will not oppose any application for unemployment benefits submitted by the Executive. 

5.    Successors: Binding Agreement. 

(a)    This Agreement shall be binding upon and shall inure to the benefit of the Company, and its successors and
assigns, and the Company shall require any successors and assigns to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession or assignment
had taken place. 
 (b)    Neither this Agreement nor any right or interest hereunder shall be assignable or
transferable by the Executive, his beneficiaries or legal representatives, except by will or by the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal representative.

 6.    Tax Treatment; Tax Withholding. The Company and the Executive hereby acknowledge and agree
that the compensation provided for in Section 1 and the severance pay provided for in Section 2 shall be treated and reported by the Company and the Executive as compensation for services rendered and as ordinary income. The Executive also
acknowledges and agrees that the Company may withhold from any compensation or other benefits to which the Executive is entitled hereunder such amounts as may be required to satisfy all federal, state and local withholding and employment tax
obligations. 
 7.    General Provisions. 

(a)    No Special Employment Rights. No provision of this Agreement shall grant or confer upon,
or shall be construed to grant or confer upon, the Executive any right with respect to the continuation of his employment by the Company or to otherwise affect in any respect the terms and conditions of such employment except to the extent expressly
provided hereunder. 
 (b)    Notices. Any and all notices or other communications required or
permitted to be given in connection with this Agreement shall be in writing (or in the form of a facsimile or electronic transmission) addressed as provided below and shall be (i) delivered by hand, (ii) delivered by overnight courier
service with confirmed receipt or (iii) mailed by first class U.S. mail, postage prepaid and registered or certified, return receipt requested: 

  
 3 

 If to the Company to: 

Hologic, Inc. 
 250 Campus Drive

 Marlborough, MA 01752 

Attn: General Counsel 

Facsimile Number: 8555116538@fax2mail.com 

E-Mail Address: john.griffin@hologic.com 

with a copy to: 
 Sean Feller

 Gibson, Dunn & Crutcher, LLP 

2029 Century Park East 
 Los
Angeles, CA 90067 
 Facsimile Number: (310) 552-7033 

E-Mail Address: SFeller@gibsondunn.com 

If to the Executive, to: 
 Peter
J. Valenti, III at the address on file with the Company. 
 with a copy to: 

Michael Albano 
 Cleary Gottlieb
Steen & Hamilton LLP 
 One Liberty Plaza 

New York, NY 10006 
 E-Mail Address: malbano@cgsh.com 
 and in any case at such other address as the addressee shall have specified by written
notice. Any notice or other communication given in accordance with this Section 7 shall be deemed delivered and effective upon receipt, except those notices and other communications sent by mail, which shall be deemed delivered and effective
three (3) business days following deposit with the United States Postal Service. All periods of notice shall be measured from the date of delivery thereof. 

(c)    Entire Agreement; Amendment. The recitals hereto are hereby incorporated herein by this
reference. This Agreement, together with the exhibits hereto, constitute the entire agreement between the parties hereto with regard to the subject matter hereof and thereof, superseding all prior understandings and agreements, whether written or
oral, including, without limitation, the Severance Agreement; provided, however, that any indemnification agreement and any outstanding vested equity award agreements (including, without limitation, any outstanding vested option agreement,
restricted stock unit agreement, performance stock unit agreement, market stock unit agreement or other equity instrument by and between the Company and the Executive) and the Non-Competition Agreement shall
remain in 

  
 4 

 
full force and effect in accordance with the terms and conditions herein and therein. This Agreement may not be changed orally, but only by an agreement in writing signed by the party against
whom enforcement of any such change is sought. 
 (d)    409A Compliance. Notwithstanding any other
provision herein to the contrary, the Company shall make the payments required hereunder in compliance with the requirements of Section 409A of the Code and any interpretative guidance issued thereunder. The Company may, in its sole and
absolute discretion, delay payments hereunder or make such other modifications with respect to the timing of payments as it deems necessary to comply with Section 409A of the Code. Notwithstanding any provision herein to the contrary, in the
event any payment or benefit hereunder is determined to constitute non-qualified deferred compensation subject to Section 409A of the Code, then to the extent necessary to comply with Section 409A of
the Code, such payment or benefits shall not be made, provided or commenced until six (6) months after the Executive’s “separation from service” as such phrase is defined for the purposes of Section 409A of the Code. For
purposes of Section 409A of the Code, each right to receive a payment hereunder shall be treated as a right to receive a series of separate payments and, accordingly, any installment payment shall at all times be considered a separate and
distinct payment. For the avoidance of doubt, the Retirement Date shall be the date of the Executive’s “separation from service” for purposes of Section 409A of the Code. 

(e)    Interpretation. The parties hereto acknowledge and agree that: (i) each party and its
counsel reviewed and negotiated the terms and provisions of this Agreement and have contributed to its revision; (ii) the rule of construction to the effect that any ambiguities are resolved against the drafting party shall not be employed in
the interpretation of this Agreement; and (iii) the terms and provisions of this Agreement shall be construed fairly as to all parties hereto and not in favor of or against any party, regardless of which party was generally responsible for the
preparation of this Agreement. 
 (f)    Effect of Headings. The titles of section headings herein
contained have been provided solely for convenience of reference and in no way define, limit or describe the scope or substance of any provision of this Agreement. 

(g)    Severability. The provisions of this Agreement are severable, and the invalidity of any
provision shall not affect the validity of any other provision. In the event that any court of competent jurisdiction shall determine that any provision of this Agreement or the application thereof is unenforceable because of the duration or scope
thereof, the parties hereto agree that said court in making such determination shall have the power to reduce the duration and scope of such provision to the extent necessary to make it enforceable, and that the Agreement in its reduced form shall
be valid and enforceable to the full extent permitted by law. 
 (h)    Governing Law/Jurisdiction.
This Agreement shall be binding upon the Executive and shall inure to the benefit of the Company and its successors and interest and assigns, and shall be construed in accordance with and governed by the laws of the Commonwealth of Massachusetts
without regard to conflicts of laws. The parties hereto intend and hereby confer jurisdiction to enforce the covenants contained herein upon the state and federal courts sitting in the Commonwealth of Massachusetts. In the event that such courts
shall hold any such covenant wholly unenforceable by reason of the breadth of scope or otherwise, it is the intention of the 

  
 5 

 
parties hereto that such determination not bar or in any way affect the Company’s right to the relief provided above in the courts of any other states within the geographical scope of such
other covenants having appropriate personal and subject matter jurisdiction over the parties, as to breaches of such covenants in such other respective jurisdictions, the above covenants as they relate to each state being, for this purpose,
severable into diverse and independent covenants. 
 (i)    Counterparts. This Agreement may be
executed in multiple original or facsimile counterparts (including *.pdf and the like), each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as a binding contract as of the date first above written. 

 

			
	HOLOGIC, INC.
		
	By:	 	 /s/ Allison Bebo

	Name:	 	Allison Bebo
	Title:	 	Senior Vice President, Human Resources
	
	EXECUTIVE
	
	 /s/ Peter J. Valenti, III

	Peter J. Valenti, III

  
 6 

 EXHIBIT A 

GENERAL RELEASE OF ALL CLAIMS 

AGREEMENT entered into as of this __ day of September, 2020 by and between Hologic, Inc., a Delaware corporation with its principal place of
business at 250 Campus Drive, Marlborough, Massachusetts 01752 (the “Company”), and Peter J. Valenti, III, an individual having his principal residence in Connecticut (the “Executive”). 

WHEREAS, the Executive and the Company previously entered into a Retirement and Separation Agreement, dated as of _______________ (the
“Retirement Agreement”); 
 WHEREAS, terms not defined herein shall have the meaning ascribed to them in the Retirement Agreement;

 WHEREAS, in consideration of the amounts payable pursuant to the Retirement Agreement, and for other consideration, the Executive agrees
to release and waive any and all claims against the Company Releasees (as defined below), subject to the terms and conditions herein; 

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and in the Retirement Agreement, the parties
hereto, each intending to be legally bound, do hereby agree as follows: 
 1.    Separation
Benefits. Subject to and conditioned upon the release of claims herein and the Executive not revoking this Release Agreement pursuant to Section 7 hereof, as a consequence of the ending of the Executive’s employment with the
Company in accordance with the Retirement Agreement and in full discharge of the Company’s obligations due to the Executive thereunder (excepting those arising under the last sentence of Section 4 thereof), the Company agrees to pay the
Executive the severance payments set forth under Section 2 of the Retirement Agreement. 
 2.    Non-Competition Agreement. The Executive agrees and covenants that the Non-Competition Agreement (as defined in the Retirement Agreement) remains in full force and
effect. 
 3.    Executive Release. In consideration for the substantial benefits being provided to
the Executive in the Retirement Agreement, the Executive, for himself, his agents, legal representatives, assigns, heirs, distributees, devisees, legatees, administrators, personal representatives and executors (collectively with the Executive, the
“Releasing Parties”), hereby releases and discharges, to the extent permitted by law, the Company and its present and past subsidiaries and affiliates, its and their respective successors and assigns, and the present and past shareholders,
officers, directors, employees, agents and representatives of each of the foregoing (collectively, the “Company Releasees”), from any and all claims, demands, actions, liabilities and other claims for relief and remuneration whatsoever,
whether known or unknown, from the beginning of the world to the date the Executive signs this Release Agreement, but otherwise including, without limitation, any claims arising out of or relating to the Executive’s employment with and
termination of employment from the Company, for wrongful discharge, for breach of 

 
contract, for discrimination or retaliation under any federal, state or local fair employment practices law, including, Massachusetts General Laws Chapter 149, Section 148, Title VII of the
Civil Rights Act of 1964 (as amended by the Civil Rights Act of 1991), the Family and Medical Leave Act, the Americans with Disabilities Act, the Older Workers Benefit Protection Act of 1990, the Age Discrimination in Employment Act, for defamation
or other torts, for wages, bonuses, incentive compensation, unvested equity, vacation pay or any other compensation or benefit, any claims under any tort or contract (express or implied) theory, and any of the claims, matters and issues which could
have been asserted by the Releasing Parties against the Company Releasees in any legal, administrative or other proceeding in any jurisdiction. Notwithstanding the foregoing, nothing in this Release Agreement is intended to release or waive the
Executive’s rights under the Retirement Agreement, to COBRA, unemployment insurance benefits, any other vested retirement benefits or vested equity awards or the right to seek enforcement of this Release Agreement or any rights of
indemnification under the Company’s certificate of incorporation, bylaws under applicable law or otherwise referenced in any indemnification agreement by and between the Executive and the Company, entitlement to coverage under separate
directors & officers insurance policies or other insurance policies maintained by the Company, if applicable, each of which is expressly excepted from the scope of this release. 

4.    Survival. It is understood and agreed that, with the exception of (i) obligations set
forth or confirmed in the Retirement Agreement or this Release Agreement, (ii) obligations of the Executive under the Non-Competition Agreement, and (iii) any of the Executive’s rights to
indemnification as provided in indemnification agreement by and between the Executive and the Company and the Company’s certificate of incorporation and bylaws (it being acknowledged and agreed by the Executive that, as of the date of this
Release Agreement, there are no amounts owed to the Executive pursuant to any such indemnification rights), all of which shall remain fully binding and in full effect subsequent to the execution of this Release Agreement, the release set forth in
Section 3 is intended and shall be deemed to be a full and complete release of any and all claims that the Releasing Parties may or might have against the Company Releasees arising out of any occurrence on or before the effective date of this
Release Agreement and this Release Agreement is intended to cover and does cover any and all future damages not now known to the Releasing Parties or which may later develop or be discovered, including all causes of action arising out of or in
connection with any occurrence on or before the effective date of this Release Agreement. 

5.    Exceptions. This Release Agreement does not (i) prohibit or restrict the Executive from
communicating, providing relevant information to or otherwise cooperating with the Equal Employment Opportunity Commission (the “EEOC”) or any other governmental authority with responsibility for the administration of fair employment
practices laws regarding a possible violation of such laws or responding to any inquiry from such authority, including an inquiry about the existence of this Release Agreement or its underlying facts, or (ii) preclude the Executive from
benefiting from classwide injunctive relief awarded in any fair employment practices case brought by any governmental agency, provided such relief does not result in Executive’s receipt of any monetary benefit or substantial equivalent thereof.

 6.    ADEA Release. This paragraph is intended to
comply with the Older Workers Benefit Protection Act of 1990 (“OWBPA”) with regard to the Executive’s waiver of rights under the Age Discrimination in Employment Act of 1967 (“ADEA”). By signing and returning this Release
Agreement, the Executive acknowledges that he: 
 (a)    has carefully read and fully understands the terms of
this Release Agreement; 
 (b)    is entering into this Release Agreement voluntarily and knowing that he is
releasing claims that he has or may have against the Company Releasees; 
 (c)    is specifically waiving rights
and claims under ADEA; 
 (d)    understands that the waiver of rights under ADEA does not extend to any rights or
claims arising after the date this Release Agreement is signed by the Executive; and 
 (e)    consulted with an
attorney before signing this Release Agreement. 
 7.    ADEA Revocation. Executive acknowledges
that he has been given the opportunity to consider this Release Agreement for twenty-one (21) days before signing it. For a period of seven (7) days from the date Executive signs this Release
Agreement, Executive has the right to revoke this Release Agreement by written notice pursuant to Section 10(b). This Release Agreement shall not become effective or enforceable until the expiration of the revocation period. This Release
Agreement shall become effective on the first business day following the expiration of the revocation period. 

8.    Other Severance Pay and Benefits. The separation benefits provided for in Section 1 shall
be in lieu of any other severance, separation or termination pay to which the Executive may be entitled under any Company severance or termination plan, program, practice (whether written or unwritten) or agreement. Except as otherwise provided
herein, the Executive’s entitlement to any other compensation or benefits shall be determined in accordance with the terms and conditions of the Company’s employee benefit plans (other than severance or termination plans, programs,
practices or agreements) and other applicable programs, policies and practices then in effect. 

9.    Successors: Binding Agreement. 

(a)    This Release Agreement shall be binding upon and shall inure to the benefit of the Company, and its
successors and assigns, and the Company shall require any successors and assigns to expressly assume and agree to perform this Release Agreement in the same manner and to the same extent that the Company would be required to perform it if no such
succession or assignment had taken place. 
 (b)    Neither this Release Agreement nor any right or interest
hereunder shall be assignable or transferable by the Executive, his beneficiaries or legal representatives, except by will or by the laws of descent and distribution. This Release Agreement shall inure to the benefit of and be enforceable by the
Executive’s personal representative. 

 10.    General Provisions. 

(a)    Non-Disparagement. The Executive agrees not to
make any disparaging comments (oral or written, including, without limitation, via any form of electronic media) about the Company, its affiliates, or any of their respective officers, directors, managers or employees which may tend to impugn or
injure their reputation, goodwill and relationships with their past, present and future customers, employees, vendors, investors or with the business community generally. The Company agrees that its executive officers and directors shall be directed
not to make any disparaging comments (oral or written, including, without limitation, via any form of electronic media) about the Executive. Nothing in this Section 10(a) is intended to prohibit, limit or prevent the Executive or the
Company’s officers or directors from providing truthful testimony in a court of law, to a regulatory or law enforcement agency or pursuant to a properly issued subpoena, and such testimony will not be deemed to be a violation of this
Section 10(a). 
 (b)    Notices. Any and all notices or other communications required or
permitted to be given in connection with this Release Agreement shall be in writing (or in the form of a facsimile or electronic transmission) addressed as provided below and shall be (i) delivered by hand, (ii) delivered by overnight
courier service with confirmed receipt or (iii) mailed by first class U.S. mail, postage prepaid and registered or certified, return receipt requested: 

Hologic, Inc. 
 250 Campus
Drive 
 Marlborough, MA 01752 

Attn: General Counsel 

Facsimile Number: 8555116538@fax2mail.com 

E-Mail Address: john.griffin@hologic.com 

with a copy to: 
 Sean Feller

 Gibson, Dunn & Crutcher, LLP 

2029 Century Park East 
 Los
Angeles, CA 
 Facsimile Number: (310) 552-7033 

E-Mail Address: SFeller@gibsondunn.com 

If to the Executive, to: 
 Peter
J. Valenti, III, at the address on file with the Company. 
 with a copy to: 

Michael Albano 
 Cleary Gottlieb
Steen & Hamilton LLP 
 One Liberty Plaza 

New York, NY 10006 
 E-Mail Address: malbano@cgsh.com 

 and in any case at such other address as the addressee shall have specified by written notice. Any notice or
other communication given in accordance with this Section 10 shall be deemed delivered and effective upon receipt, except those notices and other communications sent by mail, which shall be deemed delivered and effective three (3) business
days following deposit with the United States Postal Service. All periods of notice shall be measured from the date of delivery thereof. 

(c)    Confidentiality. By employment with Company, Executive has had, or will have, contact
with and gain knowledge of certain confidential and proprietary information and trade secrets, including without limitation, analyses of Company’s prospects and opportunities; programs (including advertising); direct mail and telephone lists,
customer lists and potential customer lists; Company’s plans for present and future developments; marketing information including strategies, tactics, methods, customer’s market research data; financial information, including reports,
records, costs, and performance data, debt arrangements, holdings, income statements, annual and/or quarterly statements and accounting records and/or tax returns; operational information, including operating procedures, products, methods, service
techniques, “know-how”, tooling, plans, concepts, designs, specifications, trade secrets, processes, methods and suppliers; technical information, including computer software programs; research and
development projects; product formulae, processes, inventions, designs, or discoveries, which information Company treats as confidential. Executive agrees that Executive will not communicate or disclose to any third party or use for Executive’s
own account, without the written consent of Company, any of the aforementioned information or material, except as required by law, unless and until such information or material becomes generally available to the public through sources other than
Executive. Notwithstanding any other provision of this Release Agreement or any other agreement, Executive understands that if Executive makes a confidential disclosure of a Company trade secret to a government official or an attorney for the
purpose of reporting or investigating a suspected violation of law, or in a court filing under seal, Executive shall not be held liable under this Release Agreement or any other agreement, or under any federal or state trade secret law for such a
disclosure. Moreover, nothing in this Release Agreement or any other agreement shall prevent Executive from making a confidential disclosure of any other confidential information to a government official, to an attorney as necessary to obtain legal
advice or in a court filing under seal. 
 (d)    Return of Property. Executive will deliver
to Company all property, documents, or materials in his possession or custody, of any nature belonging to Company whether in original form or copies of any kind, including any trade secrets and proprietary information upon or prior to the effective
date of this Agreement; provided, however, that Executive shall be permitted to keep his cell phone number and cell phone (Company IT personnel may clear the phone of Company data prior to his departure). 

(e)    Entire Agreement; Amendment. The recitals hereto are hereby incorporated herein by this
reference. This Release Agreement, together with the Retirement Agreement and the exhibits thereto and hereto, constitute the entire agreement between the parties hereto and thereto with regard to the subject matter hereof and thereof, superseding
all prior understandings and agreements, whether written or oral, including, without limitation, the Severance Agreement; provided, however, that any indemnification agreement and any outstanding vested equity award agreements (including, without
limitation, any outstanding vested 

 
option agreement, restricted stock unit agreement, performance stock unit agreement, market stock unit agreement or other equity instrument by and between the Company and the Executive) shall
remain in full force and effect in accordance with the terms and conditions herein and therein. This Release Agreement may not be changed orally, but only by an agreement in writing signed by the party against whom enforcement of any such change is
sought. 
 (f)    Interpretation. The parties hereto acknowledge and agree that: (i) each
party and its counsel reviewed and negotiated the terms and provisions of this Release Agreement and have contributed to its revision; (ii) the rule of construction to the effect that any ambiguities are resolved against the drafting party
shall not be employed in the interpretation of this Release Agreement; and (iii) the terms and provisions of this Release Agreement shall be construed fairly as to all parties hereto and not in favor of or against any party, regardless of which
party was generally responsible for the preparation of this Release Agreement. 
 (g)    Effect of
Headings. The titles of section headings herein contained have been provided solely for convenience of reference and in no way define, limit or describe the scope or substance of any provision of this Release Agreement. 

(h)    Severability. The provisions of this Release Agreement are severable, and the invalidity of
any provision shall not affect the validity of any other provision. In the event that any court of competent jurisdiction shall determine that any provision of this Release Agreement or the application thereof is unenforceable because of the
duration or scope thereof, the parties hereto agree that said court in making such determination shall have the power to reduce the duration and scope of such provision to the extent necessary to make it enforceable, and that the Release Agreement
in its reduced form shall be valid and enforceable to the full extent permitted by law. 
 (i)    Governing
Law/Jurisdiction. This Release Agreement shall be binding upon the Executive and shall inure to the benefit of the Company and its successors and interest and assigns, and shall be construed in accordance with and governed by the laws of the
Commonwealth of Massachusetts without regard to conflicts of laws. The parties hereto intend and hereby confer jurisdiction to enforce the covenants contained herein upon the state and federal courts sitting in the Commonwealth of Massachusetts. In
the event that such courts shall hold any such covenant wholly unenforceable by reason of the breadth of scope or otherwise, it is the intention of the parties hereto that such determination not bar or in any way affect the Company’s right to
relief in the courts of any other states within the geographical scope of such other covenants having appropriate personal and subject matter jurisdiction over the parties, as to breaches of such covenants in such other respective jurisdictions, the
above covenants as they relate to each state being, for this purpose, severable into diverse and independent covenants. 

(j)    Counterparts. This Release Agreement may be executed in multiple original or facsimile
counterparts (including *.pdf and the like), each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

[Signature Page to Follow] 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Release Agreement as a
binding contract as of the date first above written. 
  

			
	HOLOGIC, INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	EXECUTIVE
	
	  

	Peter J. Valenti, III

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