Document:

ex_131910.htm

Exhibit 10.1

 

NAVIDEA BIOPHARMACEUTICALS, INC.

2014 Stock Incentive Plan

(As amended and restated as of August 16, 2018)

 

 

Article I

Establishment, Purpose, Duration

 

Section 1.1     Establishment of the Plan. Navidea Biopharmaceuticals, Inc. (the “Company”) adopted the Navidea Biopharmaceuticals, Inc. 2014 Stock Incentive Plan, effective July 17, 2014 (the “Plan”). The Plan is hereby amended and restated, as set forth herein, as of August 16, 2018, subject to approval of the amended Plan by the stockholders of the Company.

 

Section 1.2     Purpose. The Plan is designed to promote the achievement of both short-term and long-term objectives of the Company by (a) aligning compensation of Participants with the interests of Company shareholders, (b) enhancing the interest of Participants in the growth and success of the Company, and (c) attracting and retaining Participants of outstanding competence.

 

Section 1.3     Effective Date and Duration. This Plan was approved by a majority of the votes cast by Company shareholders at the 2014 annual meeting and became effective at such date. The Plan shall remain in effect, subject to the right of the Board or the Committee to amend and terminate the Plan at any time as provided in this Plan, until July 16, 2024. In no event, however, may an ISO be granted under the Plan more than ten years after the date the Plan was approved by the shareholders.

 

 

Article II

Definitions

 

Whenever used in the Plan, the following terms shall have the meanings set forth below and, when the meaning is intended, the initial letter of the word is capitalized:

 

Section 2.1     162(m) Award. “162(m) Award” means an Award that is intended to be deductible as “performance-based compensation” under Code Section 162(m).

 

Section 2.2     1934 Act. “1934 Act” means the Securities Exchange Act of 1934, as amended.

 

Section 2.3     Affiliate. “Affiliate” means any entity that is a Subsidiary or a parent corporation, as defined in Code Section 424(e), of the Company, or any other entity designated by the Committee as covered by the Plan in which the Company has, directly or indirectly, at least a 20% voting interest.

 

Section 2.4     Award. “Award” means any Option, SAR, Restricted Stock, Restricted Stock Unit, Performance Share, Performance Unit, or other Article XII stock-based award granted to a Participant under the Plan.

 

Section 2.5     Award Agreement. “Award Agreement” means a written or electronic statement or agreement prepared by the Company that sets forth the terms, conditions and restrictions applicable to Awards granted under the Plan.

 

Section 2.6     Board or Board of Directors. “Board” or “Board of Directors” means the Board of Directors of the Company.

 

Section 2.7     Cash-Based Award. “Cash-Based Award” means an Award granted to a Participant, as described in Article XI herein.

 

Section 2.8     Cause. “Cause,” unless such term or an equivalent term is otherwise defined with respect to an Award by the Participant’s Award Agreement, shall be as defined in any employment agreement between the Company and a Participant; provided however, that if there is no such employment agreement, “Cause” shall mean any of the following: (a) the Participant’s conviction of any criminal violation involving dishonesty, fraud or breach of trust; (b) the Participant’s willful engagement in any misconduct in the performance of his or her duty that materially injures the Company; (c) the Participant’s performance of any act which would materially and adversely impact the business of the Company; or (d) the Participant’s willful and substantial nonperformance of assigned duties. Notwithstanding the foregoing, the Committee shall have sole discretion with respect to the application of the provisions of subsections (a)-(d) above, and such exercise of discretion shall be conclusive and binding upon the Participant and all other persons.

 

 

 

 

Section 2.9     Change in Control. A "Change in Control" will be deemed to have occurred if and when (i) a person, partnership, corporation, trust or other entity ("Person") acquires or combines with the Company, or 50 percent or more of its assets or earning power, in one or more transactions, and after such acquisition or combination, less than a majority of the outstanding voting shares of the Person surviving such transaction (or the ultimate parent of the surviving Person) is owned by the owners of the voting shares of the Company outstanding immediately prior to such acquisition or combination, unless the Change in Control transaction or transactions have been approved in advance by Board members representing at least two-thirds of the Board members; or (ii) during any period of two consecutive years during the term of this Plan, individuals who at the beginning of such period are members of the Board ("Original Board Members") cease for any reason to constitute at least a majority of the Board, unless the election of each Board member who was not an Original Board Member has been approved in advance by Board members representing at least two-thirds of the Board members then in office who were Original Board Members. This definition shall be interpreted in accordance with the guidance under Code Section 409A, that describes a change in control, change in effective control, and change in ownership of a substantial portion of the assets of a corporation.

 

Section 2.10     Code. “Code” means the Internal Revenue Code of 1986, as amended from time to time.

 

Section 2.11     Committee. “Committee” means the Compensation, Nominating and Governance Committee of the Board of Directors, or such other committee as the Board shall appoint from time to time, which shall consist of two or more directors, all of whom are intended to satisfy the requirements for an “outside director” under Code Section 162(m), a “nonemployee director” within the meaning of Rule 16b-3, and an “independent director” under the rules of NYSE American (or any other national securities exchange which is the principal exchange on which the Shares may then be traded); provided, however, that as to any Award intended to be a 162(m) Award, if any member of the Committee shall not satisfy such “outside director” requirements, “Committee” means a subcommittee (of two or more persons) of the Committee consisting of all members thereof who satisfy such “outside director” requirement; and further provided that any action taken by the Committee shall be valid and effective whether or not members of the Committee at the time of such action are later determined not to have satisfied the requirements for membership specified above.

 

Section 2.12     Company. “Company” means Navidea Biopharmaceuticals, Inc., a Delaware corporation, and any current or future parent or subsidiary, or any successor thereto.

 

Section 2.13     Consultant. “Consultant” means any person who provides services to the Company or any Subsidiary (other than in connection with the offer or sale of securities of the Company or any Subsidiary, in a capital raising transaction), who is neither an Employee nor a Director and who is a consultant or advisor to the Company or any Subsidiary within the meaning of General Instruction A.1 to Form S-8 promulgated by the SEC under the Securities Act of 1933.

 

Section 2.14     Covered Officer. “Covered Officer” means a Participant who, in the sole judgment of the Committee, may be treated as a “covered employee” under Code Section 162(m) at the time income is recognized by such Participant in connection with an Award that is intended to qualify as a 162(m) Award.

 

Section 2.15     Disability or Disabled. “Disability” or “Disabled” means a condition that (a) causes the Participant to be unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, (b) causes the Participant, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, to receive income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company or its Affiliates or (c) causes the Participant to be eligible to receive Social Security disability payments. The Committee, in its sole discretion, shall determine the date of any Disability.

 

Section 2.16     Employee. “Employee” means any person who is an employee of the Company or any Affiliate; provided, however, that with respect to ISOs, “Employee” means any person who is considered an employee of the Company or any Affiliate for purposes of Treasury Regulation Section 1.421-1(h).

 

Section 2.17     Fair Market Value. “Fair Market Value” means, on any given date and as may be specified in an Award Agreement, (a) the closing sales price per share (or, if otherwise specified by the Committee, a price that is based on the opening, actual, high, low, or average sales prices per Share) of the Company’s common stock as reported on the NYSE American or such other established securities market on which the Shares are traded, or, if there were no reported sales of Shares on such date, then, unless otherwise required under the Code, the business day immediately preceding such date; or (b) if (a) does not apply, the price that the Committee in good faith determines through any reasonable valuation method that a Share might change hands between a willing buyer and a willing seller, neither being under compulsion to buy or to sell and both having reasonable knowledge of the relevant facts. Notwithstanding the above, for purposes of broker-facilitated cashless exercises of Awards involving Shares under the Plan, “Fair Market Value” shall mean the real-time selling price of such Shares as reported by the broker facilitating such exercises.

 

 

 

 

Section 2.18     Grant Price. “Grant Price” means the price established at the time of grant of a SAR pursuant to Article VII (Stock Appreciation Rights), used to determine whether there is any payment due upon exercise of the SAR, which shall not be less than 100% of the Fair Market Value of the Shares at the time the SAR was granted.

 

Section 2.19     Incentive Stock Option or ISO. “Incentive Stock Option” or “ISO” means an Option that is an “incentive stock option” within the meaning of Code Section 422.

 

Section 2.20     Nonemployee Director. “Nonemployee Director” means a member of the Board who is not an Employee.

 

Section 2.21     Nonqualified Stock Option or NQSO. “Nonqualified Stock Option” or “NQSO” means an option to purchase Shares that does not constitute an Incentive Stock Option under Code Section 422 (or any successor Code Section).

 

Section 2.22     Option. “Option” means a right to purchase Shares in accordance with the terms and conditions of the Plan.

 

Section 2.23     Option Exercise Price. “Option Exercise Price” means the price at which a Share may be purchased by a Participant pursuant to an Option.

 

Section 2.24     Participant. “Participant” means an Employee, Nonemployee Director, or Consultant who is selected to receive an Award or who has an outstanding Award granted under the Plan.

 

Section 2.25     Performance Measure. “Performance Measure” means one or more business criteria to be used by the Committee in establishing Performance Targets for 162(m) Awards under the Plan.

 

Section 2.26     Performance Shares. “Performance Shares” means an Award designated as Performance Shares and granted to a Participant in accordance with Article IX of the Plan.

 

Section 2.27     Performance Target. “Performance Target” means the specific, objective goal or goals that are timely set forth in writing by the Committee for grants of 162(m) Awards under the Plan with respect to any one or more Performance Measures.

 

Section 2.28     Performance Unit. “Performance Unit” means an Award designated as a Performance Unit and granted to a Participant in accordance with Article X of this Plan.

 

Section 2.29     Period of Restriction. “Period of Restriction” means the period during which the transfer of Shares underlying an Award is limited in some way, or the Shares are subject to a substantial risk of forfeiture.

 

Section 2.30     Plan. “Plan” means the Navidea Biopharmaceuticals, Inc. 2014 Stock Incentive Plan, as may be amended from time to time.

 

Section 2.31     Prior Plan. “Prior Plan” means the Navidea Biopharmaceuticals, Inc. Fourth Amended and Restated 2002 Stock Incentive Plan.

 

Section 2.32     Restricted Stock. “Restricted Stock” means an Award that is a grant of Shares delivered to a Participant, subject to restrictions described in Article VIII of this Plan.

 

Section 2.33     Restricted Stock Unit or RSU. “Restricted Stock Unit” or “RSU” means an Award that is subject to the restrictions described in Article VIII of this Plan and is a promise of the Company to deliver at the end of a Period of Restrictions (a) one Share for each RSU, (b) cash in an amount equal to the Fair Market Value of one Share for each RSU, or (c) a combination of (a) and (b), as determined by the Committee.

 

Section 2.34     Retirement. “Retirement” means, with respect to Employees, termination of Service by reason of the Employee’s retirement at or after his or her having satisfied the requirements for retirement under the applicable Company qualified retirement plan, or in such other termination of Service determined to be a retirement by the Committee. With respect to a Nonemployee Director, “Retirement” means a termination of Service on the Board that is to qualify as a retirement with the consent of the remaining Nonemployee Directors. With respect to a Consultant, no termination of Service shall be deemed to be on account of Retirement.

 

Section 2.35     Rule 16b-3. “Rule 16b-3” means rule 16b-3 promulgated under the 1934 Act, as amended, and any future determination amending, supplementing, or superseding such regulation.

 

Section 2.36     Section 16 Person. “Section 16 Person” means a person who, with respect to shares, is subject to Section 16 of the 1934 Act.

 

 

 

 

Section 2.37     Service. “Service” means a Participant’s work for the Company or an Affiliate, either as an Employee, Nonemployee Director, or Consultant.

 

Section 2.38     Shares. “Shares” means the shares of common stock of the Company, $0.001 par value per share.

 

Section 2.39     Stock Appreciation Right or SAR. “Stock Appreciation Right” or “SAR” means an Award designated as a SAR in accordance with the terms of Article VII of the Plan.

 

Section 2.40     Subsidiary. “Subsidiary” means any corporation, partnership, joint venture, or other entity in which the Company has a majority voting interest; provided, however, that with respect to ISOs, the term “Subsidiary” shall include only an entity that qualifies under Code Section 424(f) as a “subsidiary corporation” with respect to the Company.

 

Section 2.41     Tandem SAR. “Tandem SAR” means a SAR that is granted in connection with a related Option, the exercise of which shall require forfeiture of the right to purchase a Share under the related Option (with a similar cancellation of the Tandem SAR when a Share is purchased under the Option). Except for the medium of payment, the terms of a Tandem SAR shall be identical in all material respects to the terms of the related Option.

 

 

Article III

Administration

 

Section 3.1     Administration by the Committee. The Plan shall be administered by the Committee. All questions of interpretation of the Plan, of any Award Agreement, or of any other form of agreement or other document employed by the Company in the administration of the Plan or of any Award, shall be determined by the Committee, and such determinations shall be final, binding and conclusive upon all persons having an interest in the Plan or such Award, unless fraudulent or made in bad faith. Any and all actions, decisions and determinations taken or made by the Committee in the exercise of its discretion pursuant to the Plan or Award Agreement or other agreement thereunder (other than determining questions of interpretation pursuant to the preceding sentence) shall be final, binding and conclusive upon all persons having an interest therein. Notwithstanding the foregoing, the Board shall perform the functions of the Committee for purposes of granting Awards under the Plan to Nonemployee Directors.

 

Section 3.2     Powers of the Committee. In addition to any other powers set forth in the Plan and subject to the provisions of the Plan, the Committee shall have the full and final power and authority, in its discretion:

 

	 	
			(a)

				
			to determine the persons to whom, and the time or times at which, Awards shall be granted and the number of Shares to be subject to each Award;

			

 

	 	
			(b)

				
			to determine the type of Award granted;  

			

 

	 	
			(c)

				
			to determine the Fair Market Value of Shares or other property where applicable;

			

 

	 	
			(d)

				
			to determine the terms, conditions and restrictions applicable to each Award (which need not be identical) and any Shares acquired pursuant thereto (other than the Options granted to Nonemployee Directors, as described under the Plan), including, without limitation, (i) the exercise or purchase price of Shares pursuant to any Award, (ii) the method of payment for Shares purchased pursuant to any Award, (iii) the method for satisfaction of any tax withholding obligation arising in connection with Award, including by the withholding or delivery of Shares, (iv) the timing, terms and conditions of the exercisability or vesting of any Award or any Shares acquired pursuant thereto, (v) the time of the expiration of any Award, (vi) the effect of the Participants termination of Service on any of the foregoing, (vii) adopt procedures and subplans as are necessary or appropriate to permit participation in the Plan by Employees, Consultants, and Nonemployee Directors who are foreign nationals or employed outside of the United States, and (viii) all other terms, conditions and restrictions applicable to any Award or Shares acquired pursuant thereto not inconsistent with the terms of the Plan;

			

 

	 	
			(e)

				
			to determine how an Award will be settled, as provided under an Award Agreement;

			

 

	 	
			(f)

				
			to approve one or more forms of Award Agreement;

			

 

	 	
			(g)

				
			to amend, modify, extend, cancel or renew any Award or to waive any restrictions or conditions applicable to any Award or any Shares acquired upon the exercise thereof;

			

 

	 	
			(h)

				
			to accelerate, continue, extend or defer the exercisability of any Award or the vesting of any Shares acquired upon the exercise thereof, including with respect to the period following a Participants termination of Service;

			

 

 

 

 

	 	
			(i)

				
			to prescribe, amend or rescind rules, guidelines and policies relating to the Plan, or to adopt sub-plans or supplements to, or alternative versions of, the Plan, including, without limitation, as the Committee deems necessary or desirable to comply with the laws or regulations of or to accommodate the tax policy, accounting principles or custom of, foreign jurisdictions whose citizens may be granted Awards; and

			

 

	 	
			(j)

				
			to correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award Agreement and to make all other determinations and take such other actions with respect to the Plan or any Award as the Committee may deem advisable to the extent not inconsistent with the provisions of the Plan or applicable law.

			

 

Section 3.3     Action by the Committee. A majority of the members of the Committee shall constitute a quorum for any meeting of the Committee, and the act of a majority of the members present at any meeting at which a quorum is present or the act approved in writing by a majority of all the members of the Committee shall be the act of the Committee. In the performance of their duties under this Plan, the Committee members shall be entitled to rely upon information and advice furnished by the Company’s officers, employees, accountants or counsel, or any executive compensation consultant or other professional retained by the Company or the Committee to assist in the administration of this Plan.

 

Section 3.4     Delegation by the Committee. The Committee, in its sole discretion and on such terms and conditions it may provide, may delegate all or any part of its authority and powers under the Plan to one or more officers or Nonemployee Directors; provided, however, that the Committee may not delegate its authority and powers (a) with respect to Section 16 Persons, or (b) in any way that would jeopardize the qualification of 162(m) Awards under Code Section 162(m) or the Plan’s qualification under Rule 16b-3.

 

Section 3.5     Nonemployee Directors. Notwithstanding any provisions of the Plan to the contrary, the Board shall administer Section 6.8 of the Plan, and the Committee shall exercise no discretion with respect to Section 6.8. In the Board’s administration of Section 6.8 are the Options and Shares granted to Nonemployee Directors, the Board shall have all of the authority and discretion otherwise granted to the Committee with respect to the administration of the Plan.

 

Section 3.6     Indemnification. The Company will indemnify each member of the Committee against costs, expenses and liabilities (other than amounts paid in settlements to which the Company does not consent, which consent will not be unreasonably withheld) reasonably incurred by such member in connection with any action to which he or she may be a party by reason of service as a member of the Committee, except in relation to matters as to which he or she is adjudged in such action to be personally guilty of negligence or willful misconduct in the performance of his or her duties. The foregoing right to indemnification is in addition to such other rights as the Committee member may enjoy as a matter of law, by reason of insurance coverage of any kind, or otherwise.

 

 

Article IV

Stock Subject to the Plan

 

Section 4.1     Aggregate Shares. Subject to adjustment as provided under the Plan, the total number of Shares that are available for Awards under the Plan shall not exceed in the aggregate 15,000,000 Shares (all of which may be granted with respect to Incentive Stock Options), plus any Shares subject to outstanding awards granted under the Prior Plan and that expire or terminate for any reason, shall be available under this Plan. Such Shares may be authorized and unissued Shares, treasury Shares, or Shares acquired on the open market.

 

Section 4.2     Individual Award Limitations. Subject to adjustments as provided in herein, the maximum number of Shares for which Awards may be granted under the Plan to any one individual in any calendar year may not exceed 5,000,000 shares. The maximum aggregate Cash-Based Award shall be $5,000,000 per year.

 

Section 4.3     Share Counting. The following Shares related to Awards will be available for issuance again under the Plan: (a) Shares related to Awards paid in cash (b) Shares related to Awards that expire, are forfeited, are cancelled, or terminate for any other reason without the delivery of the Shares, (c) Shares equal in number to the Shares withheld, surrendered or tendered in payment of the exercise price of an Award, and (d) Shares tendered or withheld in order to satisfy tax withholding obligations.

 

 

 

 

Section 4.4     Adjustment to Number of Shares.

 

	 	
			(a)

				
			Appropriate adjustments in the aggregate number of Shares issuable pursuant to the Plan, the number of Shares subject to each outstanding award granted under the Plan, the Option price with respect to Options and Tandem SARs, the specified price of SARs not connected to Options, and the value for Performance Units, shall be made to give effect to any increase or decrease in the number of issued Shares resulting from a subdivision or consolidation of Shares, whether through recapitalization, stock split, reverse stock split, spin-off, spin-out or other distribution of assets to shareholders, stock distributions or combinations of Shares, payment of stock dividends, other increase or decrease in the number of such Shares outstanding effected without receipt of consideration by the Company, or any other occurrence for which the Committee determines an adjustment is appropriate.

			

 

	 	
			(b)

				
			In the event of any merger, consolidation or reorganization of the Company with any other corporation or corporations, or an acquisition by the Company of the stock or assets of any other corporation or corporations, there shall be substituted on an equitable basis, as determined by the Committee in its sole discretion, for each Share then subject to the Plan, and for each Share then subject to an Award granted under the Plan, the number and kind of Shares of stock, other securities, cash or other property to which the holders of Shares of the Company are entitled pursuant to such transaction.

			

 

	 	
			(c)

				
			Without limiting the generality of the foregoing provisions of this paragraph, any such adjustment shall be deemed to have prevented any dilution or enlargement of a Participant’s rights, if such Participant receives in any such adjustment, rights that are substantially similar (after taking into account the fact that the Participant has not paid the applicable option price) to the rights the Participant would have received had he exercised his outstanding Award and become a shareholder of the Company immediately prior to the event giving rise to such adjustment. Adjustments under this paragraph shall be made by the Committee, whose decision as to the amount and timing of any such adjustment shall be conclusive and binding on all persons.

			

 

 

Article V

Eligibility and Participation

 

Section 5.1     Eligibility to Receive Awards. Persons eligible to receive Awards under the Plan are Employees, Nonemployee Directors, and Consultants.

 

Section 5.2     Participation in the Plan. Subject to the other provisions of this Plan, the Committee has the full discretion to grant Awards to eligible persons described in Section 5.1. Eligible persons may be granted more than one Award. Eligibility in accordance with this Section, however, shall not entitle any person to be granted an Award, or, having been granted an Award, to be granted an additional Award.

 

 

Article VI

Options

 

Section 6.1     Grant of Options. Options shall be evidenced by Award Agreements in such form and not inconsistent with the Plan as the Committee shall approve from time to time. Award Agreements shall specify the Option Exercise Price, the duration of the Option, the number of Shares to which the Option pertains, provisions for vesting and exercisability, whether the Option is an ISO or NQSO, and such other provisions as the Committee shall determine. Award Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with the following terms and conditions. Except in accordance with equitable adjustments as provided in Section 4.4 of this Plan, no Option granted under the Plan shall at any time be repriced or subject to cancellation and replacement without shareholder approval.

 

Section 6.2     Option Exercise Price. The Option Exercise Price shall not be less than 100% of the Fair Market Value of a Share on the day the Option is granted.

 

Section 6.3     Exercise of Options. Each Award Agreement shall state the period or periods of time within which the Option may be exercised by the optionee, in whole or in part, which shall be such period or periods of time as may be determined by the Committee, provided that the Option exercise period shall not end later than ten years after the date of the grant for any ISO. The Committee shall have the power to permit in its discretion an acceleration of the previously determined exercise terms, within the terms of the Plan, under such circumstances and upon such terms and conditions as it deems appropriate.

 

 

 

 

Section 6.4     Payment of Option Exercise Price. Except as otherwise provided in the Plan, or in any Award Agreement, the optionee shall pay the Option Exercise Price upon the exercise of any Option (i) in cash, (ii) by authorizing a third party with which the optionee has a brokerage or similar account to sell the Shares (or a sufficient portion of such Shares) acquired upon the exercise of the Option and remit to the Company a portion of the sale proceeds sufficient to pay the entire Option Exercise Price to the Company, (iii) by delivering Shares that have an aggregate Fair Market Value on the date of exercise equal to the Option Exercise Price; (iv) by authorizing the Company to withhold from the total number of Shares as to which the Option is being exercised the number of Shares having a Fair Market Value on the date of exercise equal to the aggregate Option Exercise Price for the total number of Shares as to which the Option is being exercised, (v) by such other means by which the Committee determines to be consistent with the purpose of the Plan and applicable law, or (vi) by any combination of (i), (ii), (iii), (iv), and (v). In the case of an election pursuant to (i) above, cash shall mean cash or check issued by a federally insured bank or savings and loan association and made payable to Navidea Biopharmaceuticals, Inc. In the case of payment pursuant to (ii) or (iii) above, the optionee’s authorization must be made on or prior to the date of exercise and shall be irrevocable. In lieu of a separate election governing each exercise of an Option, an optionee may file a blanket election with the Committee, which shall govern all future exercises of Options until revoked by the optionee.

 

Section 6.5     Transfer of Shares. The Committee may impose such restrictions on any Shares acquired pursuant to the exercise of an Option as it may deem advisable, including, without limitation, restrictions under applicable federal securities laws, under the requirements of any stock exchange or market upon which such Shares are then listed and/or traded, and under any blue sky or state securities laws applicable to such Shares.

 

Section 6.6     Rights Upon Termination of Service. Unless otherwise provided by the Committee in an Option Agreement, in the event that an optionee terminates Service for any reason other than death, Disability or Retirement, the right of the optionee to exercise the Option will terminate immediately, unless the Committee in its sole discretion elects to extend the exercisability of an Option during its term to not more than three (3) months from the date of the termination of service. In the event that an optionee dies, Retires, or becomes Disabled prior to termination of his option without having fully exercised his option, the optionee or his successor shall have the right to exercise the option during its term within a period of one year after the date of such termination due to death, Disability or Retirement, to the extent that the option was exercisable at the date of termination due to death, Disability or retirement, or during such other period and subject to such terms, including accelerated vesting, as may be determined by the Committee.

 

Section 6.7     Additional Rules for Incentive Stock Options.

 

	 	
			(a)

				
			Employees. Incentive Stock Options may be granted only to Employees of the Company or a Subsidiary and not to Employees of any Affiliate unless such entity is classified as a “disregarded entity” of the Company or the applicable Subsidiary under the Code. Incentive Stock Options may not be granted to Nonemployee Directors.

			

 

	 	
			(b)

				
			Exercise Limitations. The Committee, in its sole discretion, may provide in each Award Agreement the period or periods of time within which the Option may be exercised by the optionee, in whole or in part, provided that the Option period shall not end later than ten years after the date of the grant of the Option. The aggregate Fair Market Value (determined with respect to each Incentive Stock Option at the time of grant) of the Shares with respect to which Incentive Stock Options are exercisable for the first time by an individual during any calendar year (under all incentive stock option plans of the Company and its Subsidiaries) shall not exceed $100,000. If the aggregate Fair Market Value (determined at the time of grant) of the Shares subject to an Option, which first becomes exercisable in any calendar year, exceeds this limitation, so much of the Option that does not exceed the applicable dollar limit shall be an Incentive Stock Option and the remainder shall be a Nonqualified Stock Option; but in all other respects, the original Award Agreement shall remain in full force and effect. Notwithstanding anything herein to the contrary, if an Incentive Stock Option is granted to an individual who owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of its parent or subsidiary corporations, within the meaning of Code Section 422(b)(6), (i) the purchase price of each Share subject to the Incentive Stock Option shall be not less than one hundred ten percent (110%) of the Fair Market Value of the Share on the date the Incentive Stock Option is granted, and (ii) the Incentive Stock Option shall expire, and all rights to purchase Shares thereunder shall cease, no later than the fifth anniversary of the date the Incentive Stock Option was granted.

			

 

	 	
			(c)

				
			Rights Upon Termination of Service. The rules under Section 6.6 of this Plan generally shall apply when an optionee holding an ISO terminates Service. Notwithstanding the foregoing, in accordance with Code Section 422, if an Incentive Stock Option is exercised more than ninety days after termination of Service, that portion of the Option exercised after such date shall automatically be a Nonqualified Stock Option, but, in all other respects, the original Award Agreement shall remain in full force and effect.

			

 

 

 

 

Section 6.8     Additional Rules for Options Granted to Nonemployee Directors.

 

	 	
			(a)

				
			Granting of Options. Subject to the terms and provisions of the Plan, the Board may grant Nonqualified Stock Options to purchase shares to Nonemployee Directors.

			

 

	 	
			(b)

				
			Terms of Options. The Board, in its sole discretion, shall determine the number of shares subject to each Option granted to a Nonemployee Director.

			

 

	 	
			(c)

				
			Option Agreement. Each Award granted pursuant to this subsection 9 shall be evidenced by a written Award Agreement which shall be executed by the Participant and the Company.

			

 

	 	
			(d)

				
			Exercise Price. The Grant Price for the Shares subject to each Option granted pursuant to this subsection shall be not less than one hundred percent (100%) of the Fair Market Value of a Share on the day of grant.

			

 

	 	
			(e)

				
			Exercisability. Each Option granted pursuant to this Section 6.8 shall become exercisable in full one year after the date the Option is granted. If a Nonemployee Director incurs a termination of Service for a reason other than Retirement, death or Disability, his or her Options which are not exercisable on the date of such termination of service shall never become exercisable. If the termination of Service is on account of Retirement, death or Disability, the Option shall become exercisable in full on the date of the termination of Service.

			

 

	 	
			(f)

				
			Expiration of Options. Each Option shall terminate upon the first to occur of the following events:

			

 

	 	
			(1)

				
			The expiration of ten (10) years from the date of grant; or

			

 

	 	
			(2)

				
			The expiration of three (3) months from the date of the Participant’s termination of Service for a reason other than death, Disability or Retirement; or

			

 

	 	
			(3)

				
			The expiration of one (1) year from the date of the Participant’s Termination of Service by reason of Disability or Retirement.

			

 

	 	
			(g)

				
			Death of Director. Notwithstanding subsection (e), if a Nonemployee Director dies prior to the expiration of his or her options in accordance with subsection (e), his or her Options shall terminate one (1) year after the date of his or her death.

			

 

	 	
			(h)

				
			Special Rule for Retirement. Notwithstanding the provisions of subsection (e), if the exercisability of an Option is accelerated under subsection (d) on account of the Participant’s Retirement, such Option shall terminate upon the first to occur of: (a) the expiration of ten (10) years from the date the Option was granted; or (b) the expiration of one year from the date of the Participant’s death.

			

 

	 	
			(i)

				
			Not Incentive Stock Options. Options granted pursuant to this Section 9 shall not be designated as Incentive Stock Options.

			

 

	 	
			(j)

				
			Other Terms. All provisions of the Plan not inconsistent with this Section 6.8, shall apply to Options granted to Nonemployee Directors.

			

 

	 	
			(k)

				
			Elections by Nonemployee Directors. Pursuant to such procedures as the Board (in its discretion) may adopt from time to time, each Nonemployee Director may elect to forego receipt of all or a portion of fees for service as a Director otherwise due to the Nonemployee Director in exchange for Shares. The number of Shares received by any Nonemployee Director shall equal the amount of foregone compensation divided by the Fair Market Value of a Share on the date that the compensation otherwise would have been paid to the Nonemployee Director, rounded up to the nearest whole number of Shares. The procedures adopted by the Board for elections under this subsection shall be designed to ensure that any such election by a Nonemployee Director will not disqualify him or her as a “nonemployee director” under Rule 16b-3.

			

 

 

Article VII

Stock Appreciation Rights

 

Section 7.1     Grant of SARs. Stock Appreciation Rights shall be evidenced by Award Agreements in such form and not inconsistent with the Plan as the Committee shall approve from time to time. Award Agreements shall specify the Grant Price of the SAR, the duration of the SAR, the number of Shares to which the SAR pertains, provisions for vesting and exercisability, and such other provisions as the Committee shall determine. Award Agreements may incorporate all or any of the terms of the Plan by reference and shall comply with the following terms and conditions.

 

 

 

 

Section 7.2     Awards. A SAR shall entitle the grantee to receive upon exercise the excess of (i) the Fair Market Value of a specified number of Shares at the time of exercise over (ii) the Grant Price, or, if connected with a previously issued Option, not less than 100% of the Fair Market Value of Shares at the time such Option was granted. A SAR may be a Tandem SAR or may not be granted in connection with an Option.

 

Section 7.3     Term of SAR. SARs shall be granted for a period of not more than ten years, and shall be exercisable in whole or in part, at such time or times and subject to such other terms and conditions, as shall be prescribed by the Committee at the time of grant, subject to the provisions of this Plan.

 

Section 7.4     Termination of Service. SARs shall be exercisable only during a grantee’s period of Service, except that in the discretion of the Committee a SAR may be made exercisable for up to ninety days after the grantee’s Service is terminated for any reason other than death, Disability or Retirement. In the event that a grantee dies, Retires, or becomes Disabled without having fully exercised his SARs, the grantee or his successor shall have the right to exercise the SARs during their term within a period of one year after the date of such termination due to death, Disability or Retirement to the extent that the right was exercisable at the date of such termination or during such other period and subject to such terms as may be determined by the Committee. Notwithstanding the foregoing, the Committee shall have the power to permit in its discretion an acceleration of previously determined exercise terms, within the terms of the Plan, under such circumstances and upon such terms and conditions as it deems appropriate.

 

Section 7.5     Special Rules for Exercise of Tandem SARs. Tandem SARs may be exercised for all or part of the Shares subject to the related Option upon the surrender of the right to exercise the equivalent portion of the related Option. A Tandem SAR may be exercised only with respect to Shares for which its related Option is then exercisable. Notwithstanding any other provision of this Plan to the contrary, with respect to a Tandem SAR granted in connection with an ISO: (i) the Tandem SAR will expire no later than the expiration of the underlying ISO; (ii) the value of the payout with respect to the Tandem SAR may be for no more than one hundred percent (100%) of the difference between the Option Price of the underlying ISO and the Fair Market Value of the Shares subject to the underlying ISO at the time the Tandem SAR is exercised; and (iii) the Tandem SAR may be exercised only when the Fair Market Value of the Shares subject to the ISO exceeds the Option Price of the ISO.

 

Section 7.6     Payment. Upon exercise of a Stock Appreciation Right, the Participant shall be entitled to receive payment from the Company in an amount determined by multiplying: (i) the difference between the Fair Market Value of a Share on the date of exercise over the Grant Price; by (ii) the number of Shares with respect to which the SAR is exercised. At the discretion of the Committee, payment shall be made in cash, in the form of Shares at Fair Market Value, or in a combination thereof, as the Committee may determine.

 

 

Article VIII

Restricted Stock and Restricted Stock Units

 

Section 8.1     Grants. The Committee, at any time and from time to time, may grant Shares of Restricted Stock or grant Restricted Stock Units to Participants in such amounts as the Committee shall determine. Each Restricted Stock or Restricted Stock Unit grant shall be evidenced by an Award Agreement that shall specify the Period(s) of Restriction, the number of Shares of Restricted Stock or the number of Restricted Stock Units issued to the Participant, and such other provisions as the Committee shall determine. Such Award Agreements shall be consistent with the provisions of this Article VIII.

 

Section 8.2     Period of Restriction. The end of any Period of Restriction for Restricted Stock or Restricted Stock Units may be conditioned upon the satisfaction of such conditions as are satisfied by the Committee in its sole discretion and set forth in an applicable Award Agreement. Such conditions include, without limitation, restrictions based upon the continued Service of the Participant, the achievement of specific performance goals, time-based restrictions on vesting following the attainment of the performance goals, and/or restrictions under applicable federal or state securities laws, prohibitions against transfer, and repurchase by the Company or right of first refusal. The Committee shall have the power to permit in its discretion, an acceleration of the expiration of the applicable Period of Restriction with respect to any part or all of the Shares or number of Restricted Stock Units awarded to a Participant.

 

Section 8.3     Certificates. If a certificate is issued in respect of Shares awarded to a Participant, each certificate shall be deposited with the Company, or its designee, and shall bear the following legend:

 

“This certificate and the shares represented hereby are subject to the terms and conditions (including forfeiture and restrictions against transfer) contained in the Navidea Biopharmaceuticals, Inc. 2014 Stock Incentive Plan and an Award Agreement entered into by the registered owner. Release from such terms and conditions shall be obtained only in accordance with the provisions of the Plan and Award Agreement, a copy of each of which is on file in the office of the Secretary of said Company.”

 

 

 

 

Section 8.4     Lapse of Restrictions. A Restricted Stock Award Agreement or Restricted Stock Unit Award Agreement shall specify the terms and conditions upon which any restrictions upon Shares awarded or RSUs awarded under the Plan shall lapse, as determined by the Committee. Upon the lapse of such restrictions, any Shares that have been awarded, free of the previously described restrictive legend, shall be issued to the Participant or his legal representative.

 

Section 8.5     Termination of Service. Each Restricted Stock Award Agreement and Restricted Stock Unit Award Agreement shall set forth the extent, if any, to which the Participant shall have the right to continued or accelerated vesting of Shares of Restricted Stock or Restricted Stock Units following termination of the Participant’s Service. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Awards granted pursuant to the Plan, and may reflect distinctions based on the reasons for termination.

 

Section 8.6     Code Section 83(b) Election. If a Participant makes an election pursuant to Code Section 83(b) with respect to a Restricted Stock Award, the Participant shall be required to promptly file a copy of such election with the Company.

 

 

Article IX

Performance Shares Awards

 

Section 9.1     Grants of Performance Shares. The Committee, at any time and from time to time, may grant Awards of Performance Shares to Participants in such amounts as the Committee shall determine. Each Performance Shares grant shall be evidenced by an Award Agreement that shall specify the applicable performance period, the number of Shares subject to a Performance Shares Award that are to be delivered to the Participant upon satisfaction of the performance targets by the expiration of the performance period, and such other provisions as the Committee shall determine. Such Award Agreements shall be consistent with the provisions of this Article IX.

 

Section 9.2     Performance Period and Performance Goals. At the time of award, the Committee, in its sole discretion shall establish a performance period and the performance goals to be achieved during the applicable performance period with respect to an Award of Performance Shares.

 

Section 9.3     Delivery of Shares. Following the conclusion of each performance period, the Committee shall determine the extent to which performance goals have been attained for such period as well as the other terms and conditions established by the Committee. The Committee shall determine the amount of Shares, if any, to be delivered to the Participant in satisfaction of the Award.

 

Section 9.4     Termination of Service. Each Performance Shares Award Agreement shall set forth the extent, if any, to which the Participant shall have the right to continued or accelerated vesting of Performance Shares following termination of the Participant’s Service. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Performance Shares Awards granted pursuant to the Plan, and may reflect distinctions based on the reasons for termination.

 

Section 9.5     Code Section 162(m). If any Performance Shares are intended to be 162(m) Awards, the Committee shall follow the procedures set forth in Section 13.1 with respect to such Performance Shares.

 

 

Article X

Performance Units

 

Section 10.1     Grant of Performance Units. Subject to the terms of the Plan, Performance Units may be granted to Participants in such amounts and upon such terms, and at any time and from time to time, as shall be determined by the Committee. Performance Units shall be evidenced by Award Agreements that are subject to the terms of this Article X.

 

Section 10.2     Performance Period and Performance Goals. Unless otherwise determined by the Committee, at the time of award, the Committee shall establish with respect to each Performance Unit a performance period of not less than two years. At the time of award, the Committee also shall establish, in its sole discretion, the performance goals to be achieved during the applicable performance period with respect to an Award of Performance Units.

 

Section 10.3     Value of Performance Units. At the time Performance Units are granted, the Committee shall establish with respect to each such Award a value for each Performance Unit, which may vary thereafter determinable from criteria specified by the Committee at the time of Award.

 

 

 

 

Section 10.4     Code Section 162(m). If any Performance Units are intended to be 162(m) Awards, the Committee shall follow the procedures set forth in Section 13.1 with respect to such Performance Units.

 

Section 10.5     Payment of Performance Units. Following the conclusion of each performance period, the Committee shall determine the extent to which performance targets have been attained for such period as well as the other terms and conditions established by the Committee. The Committee shall determine what, if any, payment is due on the Performance Units. Payment shall be made as soon as practicable after the end of the applicable performance period, but no later than the March 15th of the year after the year in which such performance period ends, in cash, in the form of Shares, or in a combination thereof, as the Committee may determine.

 

Section 10.6     Termination of Service. Each Performance Unit Award Agreement shall set forth the extent, if any, to which the Participant shall have the right to continued or accelerated vesting of Performance Units following termination of the Participant’s Service. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Performance Units Awards granted pursuant to the Plan, and may reflect distinctions based on the reasons for termination.

 

Section 10.7     Other Terms. The Award Agreements with respect to Performance Units shall contain such other terms and provisions and conditions not inconsistent with the Plan as shall be determined by the Committee.

 

 

Article XI

Cash-Based Awards

 

Section 11.1     Grant of Cash-Based Awards. Subject to the terms of the Plan, Cash-Based Awards may be granted to Participants in such amounts and upon such terms, and at any time and from time to time, as shall be determined by the Committee, subject to the terms of this Article XI. This Article does not limit the ability of the Committee or management to award bonuses or other cash-based awards other than under the terms of the Plan.

 

Section 11.2     Performance Period and Performance Goals. Unless otherwise determined by the Committee, the performance period for any Cash-Based Award shall be one year. At the time of award, the Committee also shall establish, in its sole discretion, the performance goals to be achieved during the applicable performance period with respect to Cash-Based Awards.

 

Section 11.3     Value of Cash-Based Awards. At the time Cash-Based Awards are granted, the Committee shall establish the value of such Awards, which may vary thereafter determinable from criteria specified by the Committee at the time of Award.

 

Section 11.4     Code Section 162(m). If the grant of any Cash-Based Awards are intended to be 162(m) Awards, the Committee shall follow the procedures set forth in Section 13.1 with respect to such Cash-Based Awards.

 

Section 11.5     Payment of Cash-Based Awards. If payable, the Participant’s Cash-Based Award will be distributed to the Participant, or the Participant’s estate in the event of the Participant’s death before payment, in cash in a single sum as soon after the end of the applicable performance period as practicable, but no later than March 15th after the end of the performance period, in accordance with the Company’s payroll practices.

 

Section 11.6     Termination of Service. With respect to Cash-Based Awards, the Committee shall set forth the extent, if any, to which the Participant shall have the right to continued or accelerated vesting of such Cash-Based Awards following termination of the Participant’s Service. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Cash-Based Awards granted pursuant to the Plan, and may reflect distinctions based on the reasons for termination.

 

 

Article XII

Other Stock-Based Awards

 

The Committee may from time to time grant Shares and other Awards under the Plan that are valued in whole or in part by reference to, or are otherwise based upon and/or payable in Shares. The Committee, in its sole discretion, shall determine the terms and conditions of such Awards, which shall be consistent with the terms and purposes of the Plan. 

 

 

 

 

Article XIII

Awards Under the Plan; Code Section 162(m)

 

Section 13.1     Compliance with Code Section 162(m).

 

	 	
			(a)

				
			General. The Committee may grant Awards that are designed to qualify as 162(m) Awards and Awards that are not 162(m) Awards. In the case of Awards granted to Covered Officers that are intended to be 162(m) Awards, the Committee shall make in writing all determinations necessary to establish the terms of such 162(m) Awards within 90 days of the beginning of the applicable performance period (or such other time period required under Code Section 162(m)), including, without limitation, the designation of the Covered Officers to whom such 162(m) Awards are made, the Performance Measures applicable to the Awards and the Performance Targets that relate to such Performance Measures, and the dollar amounts or number of Shares payable upon achieving the applicable Performance Targets. To the extent required by Code Section 162(m), the provisions of such 162(m) Awards must state, in terms of an objective formula or standard, the method of computing the amount of compensation payable to the Covered Officer. The specific Performance Targets established by the Committee shall be made while the achievement of such Performance Targets remains substantially uncertain in accordance with Code Section 162(m). Subject to the terms of this Plan, after each applicable performance period has ended, the Committee shall determine the extent to which the Performance Targets have been attained or a degree of achievement between minimum and maximum levels with respect to 162(m) Awards in order to establish the level of payment to be made, if any, with respect to such 162(m) Awards, and shall certify the results in writing prior to payment of such 162(m) Awards.

			

 

	 	
			(b)

				
			Performance Targets and Performance Measures. With respect to 162(m) Awards, at the time of grant of a 162(m) Award, the Committee shall establish in writing maximum and minimum Performance Targets to be achieved with respect to each Award during the performance period. The Participant shall be entitled to payment of the entire amount awarded if the maximum Performance Target is achieved during the performance period, but shall be entitled to payment with respect to a portion of the Award according to the level of achievement of Performance Targets, as specified by the Committee, for performance during the performance period that meets or exceeds the minimum Performance Target but fails to meet the maximum Performance Target. With respect to Cash-Based Awards, the Committee may assign payout percentages based upon various potential Performance Targets to be applied if the Performance Targets are met. The Committee has full discretion and authority to determine the Performance Target payouts for Cash-Based Award’s performance period.

			

 

The Performance Targets established by the Committee may relate to corporate, division, department, business unit, or individual performance and may be established in terms of any one or a combination of the following Performance Measures: price of Company Common Stock or the stock of any affiliate, shareholder return, return on equity, return on investment, return on capital, sales productivity, comparable store sales growth, economic profit, economic value added, net income, operating income, gross margin, sales, free cash flow, earnings per share, operating company contribution or market shares. Multiple Performance Targets may be used and may have the same or different weighting, and they may relate to absolute performance or relative performance as measured against other institutions or divisions or units thereof.

 

	 	
			(c)

				
			Calculation and Adjustments. The Committee may provide in any such Award that any evaluation of performance may include or exclude any of the following events that occur during a performance period: (a) asset write-downs, (b) litigation or claim judgments or settlements, (c) the effect of changes in tax laws, accounting principles or other laws or provisions affecting reported results, (d) any reorganization and restructuring programs, (e) mergers, acquisitions or divestitures, (f) foreign exchange gains and losses, and (g) extraordinary, unusual, or other nonrecurring items as described in U.S. Generally Accepted Accounting Principles or in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s consolidated report to the investment community or investor letters.  To the extent such inclusions or exclusions affect Awards to Covered Officers, they shall be prescribed in a form that meets the requirements of Code Section 162(m) for deductibility except as otherwise determined by the Committee in its sole discretion. Awards that are intended to qualify as 162(m) Awards may not be adjusted upward from the amount otherwise payable to a Covered Officer under the pre-established Performance Target.  The Committee shall retain the discretion to adjust such Awards downward, either on a formulaic or discretionary basis or a combination of the two, as the Committee determines. If applicable tax and securities laws change to permit Committee discretion to alter the governing Performance Measures or Performance Targets without obtaining shareholder approval of such changes, the Committee shall have sole discretion to make such changes without obtaining shareholder approval. 

			

 

 

 

 

Section 13.2     Non-Code Section 162(m) Awards. In the case of Awards that are not intended to be qualifying as “performance-based compensation” under Code Section 162(m), the Committee may designate performance targets from among the previously described Performance Measures in this Article or such other business criteria as it determines in its sole discretion. The Committee also may make adjustments to such Performance Measures or other business criteria in any manner it deems appropriate in its discretion.

 

 

Article XIV

Dividends and Dividend Equivalents

 

No dividends or dividend equivalents may be awarded with respect to any Options or SARs. An Award (other than Options or SARs) may, if so determined by the Committee, provide the Participant with the right to receive dividend payments, or, in the case of Awards that do not involve the issuance of Shares concurrently with the grant of the Award, dividend equivalent payments with respect to Shares subject to the Award (both before and after the Shares are earned, vested or acquired), which payments may be either made currently, credited to an account for the Participant, or deemed to have been reinvested in additional Shares which shall thereafter be deemed to be part of and subject to the underlying Award, including the same vesting and performance conditions. Notwithstanding the foregoing, with respect to Awards subject to performance conditions, any such dividend or dividend equivalent payments shall not be paid currently and instead shall either be credited to an account for the Participant or deemed to have been reinvested in additional Shares. Dividend or dividend equivalent amounts credited to an account for the Participant may be settled in cash or Shares or a combination of both, as determined by the Committee, and shall be subject to the same vesting and performance conditions as the underlying Award.

 

 

Article XV

Beneficiary Designation

 

Each Participant under the Plan may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit under the Plan is to be paid in case of his or her death before he or she receives any or all of such benefit. Each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant in writing with the Company during the Participant’s lifetime. In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate.

 

 

Article XVI

Change in Control

 

Section 16.1     Effect of Change in Control. Except as otherwise provided in the Plan or any Award Agreement granted hereunder, upon a Change in Control, all outstanding Awards shall become fully exercisable and all restrictions thereon shall terminate; provided, however, that the Committee may determine and provide through an Award Agreement or other means the extent of vesting and the treatment of partially completed performance periods (if any) for any Awards outstanding upon a Change in Control. Further, the Committee, as constituted before such Change in Control, is authorized, and has sole discretion, as to any Award, either at the time such Award is granted hereunder or any time thereafter, to take any one or more of the following actions: (i) provide for the cancellation of any such Award for an amount of cash equal to the difference between the exercise price and the then Fair Market Value of the Shares covered thereby had such Award been currently exercisable; (ii) make such adjustment to any such Award then outstanding as the Committee deems appropriate to reflect such Change in Control; or (iii) cause any such Award then outstanding to be assumed, by the acquiring or surviving corporation, after such Change in Control.

 

Section 16.2     Participant Elections to Minimize Code Section 4999 Excise Tax.

 

	 	
			(a)

				
			Excess Parachute Payment. In the event that any acceleration of vesting pursuant to an Award and any other payment or benefit received or to be received by a Participant would subject the Participant to any excise tax pursuant to Code Section 4999 due to the characterization of such acceleration of vesting, payment or benefit as an excess parachute payment under Code Section 280G, the Participant may elect, in his or her sole discretion, to reduce the amount of any acceleration of vesting called for under the Award in order to avoid such characterization. Such an election, however, may not change the time and form of any payment in a manner that would cause the Participant to incur additional taxes or penalties under Code Section 409A.

			

   

 

 

 

	 	
			(b)

				
			Determination by Independent Accountants. To aid the Participant in making any election called for under part (a) above, no later than the date of the occurrence of any event that might reasonably be anticipated to result in an excess parachute payment to the Participant as described in part (a) above, the Company shall request a determination in writing by independent public accountants selected by the Company (the “Accountants”). As soon as practicable thereafter, the Accountants shall determine and report to the Company and the Participant the amount of such acceleration of vesting, payments and benefits which would produce the greatest after-tax benefit to the Participant. For the purposes of such determination, the Accountants may rely on reasonable, good faith interpretations concerning the application of Code Sections 280G and 4999. The Company and the Participant shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make their required determination. The Company shall bear all fees and expenses the Accountants may reasonably charge in connection with their services contemplated by this subpart (b).

			

 

 

Article XVII

Deferrals

 

The Committee may permit (upon timely election by the Participant) or require a Participant to defer such Participant’s receipt of the payment of cash or the delivery of Shares that would otherwise be due to such Participant by virtue of the exercise of an Option or SAR, the lapse or waiver of restrictions with respect to Restricted Stock or Performance Shares, or the satisfaction of any requirements or goals with respect to Performance Units or Cash-Based Awards. If any such deferral election is required or permitted, the Committee may, in its sole discretion, establish rules and procedures for such payment deferrals in a manner consistent with Code Section 409A and the regulations thereunder.

 

 

Article XVIII

Withholding

 

Section 18.1     Tax Withholding. The Company shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy Federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Plan.

 

Section 18.2     Share Withholding. With respect to withholding required upon the exercise of Options or SARs, upon the lapse of restrictions on Restricted Stock, or upon any other taxable event arising as a result of Awards granted hereunder, Participants may elect, subject to the approval of the Committee, to satisfy the withholding requirement, in whole or in part, by having the Company withhold Shares having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax which could be imposed on the transaction. All such elections shall be irrevocable, made in writing before the date in which income is realized by the recipient in connection with the particular transaction, signed by the Participant, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate. The amount of required withholding shall be a specified rate not less than the statutory minimum federal, state and local (if any) withholding rate, and not greater than the maximum federal, state and local (if any) marginal tax rate applicable to the Participant and to the particular transaction.

 

 

Article XIX

Compliance with Code Section 409A

 

Section 19.1     Awards Subject to Code Section 409A. The provisions of this Section 19.1 shall apply to any Award or portion thereof that is or becomes subject to Code Section 409A, notwithstanding any provision to the contrary contained in the Plan or the Award Agreement applicable to such Award. Awards subject to Code Section 409A include, without limitation:

 

	 	
			(a)

				
			Any Nonqualified Stock Option having an exercise price per share less than the Fair Market Value determined as of the date of grant of such Option or that permits the deferral of compensation other than the deferral of recognition of income until the exercise or transfer of the Option or the time the shares acquired pursuant to the exercise of the option first become substantially vested.

			

 

	 	
			(b)

				
			Any Award that either provides by its terms, or under which the Participant makes an election, for settlement of all or any portion of the Award either (i) on one or more dates following the end of the Short-Term Deferral Period (as defined below) or (ii) upon or after the occurrence of any event that will or may occur later than the end of the Short-Term Deferral Period.

			

 

 

 

 

Subject to U.S. Treasury Regulations promulgated pursuant to Code Section 409A (“Section 409A Regulations”) or other applicable guidance, the term “Short-Term Deferral Period” means the period ending on the later of (i) the 15th day of the third month following the end of the Company’s fiscal year in which the applicable portion of the Award is no longer subject to a substantial risk of forfeiture or (ii) the 15th day of the third month following the end of the Participant’s taxable year in which the applicable portion of the Award is no longer subject to a substantial risk of forfeiture. For this purpose, the term “substantial risk of forfeiture” shall have the meaning set forth in Section 409A Regulations or other applicable guidance.

 

Section 19.2     No Acceleration of Distributions. Notwithstanding anything to the contrary herein, this Plan does not permit the acceleration of the time or schedule of any distribution under this Plan pursuant to any Award subject to Code Section 409A, except as provided by Code Section 409A and Section 409A Regulations.

 

Section 19.3     Separation from Service. If any amount shall be payable with respect to any Award hereunder as a result of a Participant’s termination of employment or other Service and such amount is subject to the provisions of Code Section 409A, then notwithstanding any other provision of this Plan, a termination of employment or other Service will be deemed to have occurred only at such time as the Participant has experienced a “separation from service” as such term is defined for purposes of Code Section 409A.

 

Section 19.4     Timing of Payment to a Specified Employee. If any amount shall be payable with respect to any Award hereunder as a result of a Participant’s separation from Service at such time as the Participant is a “specified employee” and such amount is subject to the provisions of Code Section 409A, then notwithstanding any other provision of this Plan, no payment shall be made, except as permitted under Code Section 409A, prior to the first day of the seventh (7th) calendar month beginning after the Participant’s separation from Service (or the date of his or her earlier death). The Company may adopt a specified employee policy that will apply to identify the specified employees for all deferred compensation plans subject to Code Section 409A; otherwise, specified employees will be identified using the default standards contained in the regulations under Code Section 409A.

 

 

Article XX

Amendment and Termination

 

Section 20.1     Amendment, Modification, and Termination of the Plan. The Board or the Committee may at any time terminate, suspend or amend the Plan without the authorization of shareholders to the extent allowed by law, including without limitation any rules issued by the Securities and Exchange Commission under Section 16 of the 1934 Act, insofar as shareholder approval thereof is required in order for the Plan to continue to satisfy the requirements of Rule 16b-3 under the 1934 Act, or the rules of any applicable stock exchange. No termination, suspension or amendment of the Plan shall adversely affect any right acquired by any Participant under an Award granted before the date of such termination, suspension or amendment, unless such Participant shall consent; but it shall be conclusively presumed that any adjustment for changes in capitalization as provided for herein does not adversely affect any such right.

 

Section 20.2     Amendment of Awards. The Committee may unilaterally amend the terms of any Award Agreement previously granted, except that (i) no such amendment may materially impair the rights of any Participant under the applicable Award without the Participant’s consent, unless such amendment is necessary to comply with applicable law, stock exchange rules or accounting rules; and (ii) in no event may an Option or SAR be amended or modified, other than as provided in Section 4.4, to decrease the Option or SAR exercise or base price thereof, or be cancelled in exchange for cash, a new Option or SAR with a lower exercise price or base price, or other Awards, or otherwise be subject to any action that would be treated for accounting purposes as a “repricing” of such Option or SAR, unless such action is approved by the Company’s shareholders.

 

 

Article XXI

Miscellaneous

 

Section 21.1     Approval Restrictions. Each Award under the Plan shall be subject to the requirement that, if at any time the Committee shall determine that (i) the listing, registration or qualification of the Shares subject or related thereto upon any securities exchange or under any state or federal law, or (ii) the consent or approval of any government regulatory body, or (iii) an agreement by the recipient of an Award with respect to the disposition of Shares is necessary or desirable as a condition of, or in connection with, the granting of such award or the issue or purchase of Shares thereunder, such Award may not be consummated in whole or in part unless such listing, registration, qualification, consent, approval or agreement shall have been effected or obtained, free of any conditions not acceptable to the Committee.

 

 

 

 

Section 21.2     Securities Law Compliance. With respect to Participants subject to Section 16 of the 1934 Act, transactions under this Plan are intended to comply with all applicable conditions of Rule 16b-3 or its successors under the 1934 Act. If any provision of this Plan or of any Award Agreement would otherwise frustrate or conflict with the intent expressed in the preceding sentence, that provision to the extent possible shall be interpreted and deemed amended in the manner determined by the Committee so as to avoid the conflict. To the extent of any remaining irreconcilable conflict with this intent, the provision shall be deemed void as applicable to Participants who are then subject to Section 16 of the 1934 Act. In addition, no Shares will be issued or transferred pursuant to an Award unless and until all then applicable requirements imposed by federal and state securities and other laws, rules and regulations and by any regulatory agencies having jurisdiction, and by any stock exchanges upon which the Shares may be listed, have been fully met. As a condition precedent to the issuance of Shares pursuant to the grant, exercise, vesting or settlement of an Award, the Company may require the Participant to take any reasonable action to meet such requirements. The Committee may impose such conditions on any Shares issuable under the Plan as it may deem advisable, including, without limitation, restrictions under the Securities Act of 1933, as amended, under the requirements of any stock exchange upon which such Shares of the same class are then listed, and under any blue sky or other securities laws applicable to such Shares.

 

Section 21.3     Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine, the plural shall include the singular and the singular shall include the plural.

 

Section 21.4     Rights as a Shareholder.    The recipient of any Award under the Plan, unless otherwise provided by the Plan, shall have no rights as a shareholder with respect thereto unless and until certificates for Shares are issued to the recipient.

 

Section 21.5     Forfeiture. The Committee may specify in an Award Agreement that the Participant’s rights, payments, and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events may include, but shall not be limited to, termination of Service for Cause or any act by a Participant, whether before or after termination of Service, that would constitute Cause for termination of Service.

 

Section 21.6     Rights as Employee, Nonemployee Director, Consultant, or Adviser. No person, even though eligible pursuant to Article V, shall have a right to be selected as a Participant, or, having been so selected, to be selected again as a Participant. Nothing in the Plan or any Award granted under the Plan shall confer on any Participant a right to remain an Employee, Nonemployee Director, consultant, or adviser or interfere with or limit in any way any right of the Company or Affiliate to terminate the Participant’s Service at any time. To the extent that an Employee of an Affiliate receives an Award under the Plan, that Award shall in no event be understood or interpreted to mean that the Company is the Employee’s employer or that the Employee has an employment relationship with the Company.

 

Section 21.7     Fractional Shares. The Company shall not be required to issue fractional shares upon the exercise or settlement of any Award.

 

Section 21.8     Effect on Other Plans.   Unless otherwise specifically provided, participation in the Plan shall not preclude a Participant’s eligibility to participate in any other benefit or incentive plan. Any Awards made pursuant to the Plan shall not be considered as compensation in determining the benefits provided under any other plan.

 

Section 21.9     No Constraint on Corporate Action. Nothing in this Plan shall be construed to: (a) limit, impair, or otherwise affect the Company’s or an Affiliate’s right or power to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets; or (b) limit the right or power of the Company or an Affiliate to take any action which such entity deems to be necessary or appropriate.

 

Section 21.10     Over/Under Payments. If any Participant or beneficiary receives an underpayment of Shares or cash payable under the terms of any Award, payment of any such shortfall shall be made as soon as administratively practicable. If any Participant or beneficiary receives an overpayment of Shares or cash payable under the terms of any Award for any reason, the Committee or its delegate shall have the right, in its sole discretion, to take whatever action it deems appropriate, including but not limited to the right to require repayment of such amount or to reduce future payments under this Plan, to recover any such overpayment. Notwithstanding the foregoing, if the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, and if the Participant knowingly or through gross negligence engaged in the misconduct, or knowingly or through gross negligence failed to prevent the misconduct, or if the Participant is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, the Participant shall reimburse the Company the amount of any payment in settlement of an Award earned or accrued during the twelve- (12-) month period following the first public issuance or filing with the United States Securities and Exchange Commission of the financial document embodying such financial reporting requirement.

 

 

 

 

Section 21.11     Unfunded Obligation. Participants shall have the status of general unsecured creditors of the Company. Any amounts payable to Participants pursuant to the Plan shall be unfunded and unsecured obligations for all purposes, including, without limitation, Title I of the Employee Retirement Income Security Act of 1974. No Affiliate shall be required to segregate any monies from its general funds, or to create any trusts, or establish any special accounts with respect to such obligations. The Company shall retain at all times beneficial ownership of any investments, including trust investments, which the Company may make to fulfill its payment obligations hereunder. Any investments or the creation or maintenance of any trust or any Participant account shall not create or constitute a trust or fiduciary relationship between the Committee or any Affiliate and a Participant, or otherwise create any vested or beneficial interest in any Participant or the Participant’s creditors in any assets of any Affiliate. The Participants shall have no claim against any Affiliate for any changes in the value of any assets which may be invested or reinvested by the Company with respect to the Plan.

 

Section 21.12     No Liability With Respect to Adverse Tax Treatment. Notwithstanding any provision of this Plan to the contrary, in no event shall the Company or any Affiliate be liable to a Participant on account of an Award’s failure to (i) qualify for favorable U.S., foreign, state, local, or other tax treatment or (ii) avoid adverse tax treatment under U.S., foreign, state, local, or other law, including, without limitation, Code Section 409A.

 

Section 21.13     Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

 

Section 21.14     Requirements of Law. The granting of Awards and the issuance of Shares under the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

 

Section 21.15     Governing Law. To the extent not preempted by federal law, the Plan, and all agreements hereunder, shall be construed in accordance with and governed by the laws of the state of Ohio.

 

Section 21.16     Successors. All obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding on any successor to the Company.

 

Section 21.17     Provisions Regarding Transferability of Awards.

 

	 	
			(a)

				
			General. Except as otherwise provided below, Awards may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or the laws of descent and distribution or pursuant to a qualified domestic relations order as defined in the Code or Title 1 of the Employee Retirement Income Security Act or the rules thereunder. Except as otherwise provided in the Plan, all rights with respect to an Award granted to a Participant shall be available during his or her lifetime only to such Participant.

			

 

	 	
			(b)

				
			Nonqualified Stock Options and Stock Appreciation Rights. No NQSO or SAR granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or the laws of descent and distribution or pursuant to a qualified domestic relations order as defined in the Code or Title 1 of the Employee Retirement Income Security Act or the rules thereunder. Notwithstanding the foregoing or anything in part (a) above, a Participant, at any time prior to his death, may assign all or any portion of the NQSO or SAR to (i) his spouse or lineal descendant, (ii) the trustee of a trust for the primary benefit of his spouse or lineal descendant, or (iii) a tax-exempt organization as described in Code Section 501(c)(3). In such event the spouse, lineal descendant, trustee or tax-exempt organization shall be entitled to all of the rights of the Participant with respect to the assigned portion of such NQSO or SAR, and such portion of the NQSO or SAR shall continue to be subject to all of the terms, conditions and restrictions applicable to the NQSO or SAR as set forth herein, and in the related Award Agreement, immediately prior to the effective date of the assignment. Any such assignment shall be permitted only if (i) the Participant does not receive any consideration therefore, and (ii) the assignment is expressly approved by the Committee or its delegate. Any such assignment shall be evidenced by an appropriate written document executed by the Participant, and a copy thereof shall be delivered to the Committee or its delegate on or prior to the effective date of the assignment.

			

 

	 	
			(c)

				
			Incentive Stock Options. Notwithstanding anything in part (a) and (b) above, no ISO may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or the laws of descent or distribution.

			

   

 

 

 

	 	
			(d)

				
			Nonemployee Directors. Notwithstanding anything in parts (a), (b), or (c) to the contrary, a Nonemployee Director at any time prior to his or her death, may assign all or any portion of an Award granted to him or her under the Plan to (i) his or her spouse or lineal descendant, (ii) the trustee of a trust for the primary benefit of his or her spouse or lineal descendant or (iii) a tax-exempt organization as described in Code Section 501(c)(3). In such event, the spouse, lineal descendant, trustee, or tax-exempt organization shall be entitled to all of the rights of the Participant with respect to the assigned portion of such Award, and such portion of the Award shall continue to be subject to all of the terms, conditions and restrictions applicable to the Award as set forth herein, and in the related Award Agreement, immediately prior to the effective date of the assignment. Any such assignment shall be permitted only if (i) the Participant does not receive any consideration therefore, and (ii) the assignment is expressly approved by the Committee or its delegate. Any such assignment shall be evidenced by an appropriate written document executed by the Participant, and a copy thereof shall be delivered to the Committee or its delegate on or prior to the effective date of the assignment.universal2018creditagree

                                                                    EXECUTION COPY                                                                                                                                                                                               CREDIT AGREEMENT                                                                                         dated as of                                                                                     December 20, 2018                                                                                          among                                                                                 UNIVERSAL CORPORATION                                                                                   The Lenders Party Hereto                                                                             JPMORGAN CHASE BANK, N.A.                                    as Administrative Agent                                                                    SUNTRUST BANK and AGFIRST FARM CREDIT BANK                                    as Co-Syndication Agents                                                                                           and        KEYBANK NATIONAL ASSOCIATION and CAPITAL ONE, NATIONAL ASSOCIATION                                   as Co-Documentation Agents                                                                                                                          JPMORGAN CHASE BANK, N.A.,                         SUNTRUST ROBINSON HUMPHREY, INC. and                                AGFIRST FARM CREDIT BANK                           as Joint Bookrunners and Joint Lead Arrangers                in respect of the Revolving Credit Facility and the Term A-1 Loan Facility                                 AGFIRST FARM CREDIT BANK                              JPMORGAN CHASE BANK, N.A. and                           SUNTRUST ROBINSON HUMPHREY, INC.                           as Joint Bookrunners and Joint Lead Arrangers                              in respect of the Term A-2 Loan Facility      US-DOCS\104043647.7  

 

                                 TABLE OF CONTENTS                                                                                      Page   ARTICLE I Definitions                                                                1   SECTION 1.01.   Defined Terms .............................................................................................................. 1  SECTION 1.02.   Classification of Loans and Borrowings .................................................................... 24  SECTION 1.03.   Terms Generally ......................................................................................................... 24  SECTION 1.04.   Accounting Terms; GAAP ......................................................................................... 25  SECTION 1.05.   Interest Rates; LIBOR Notification ............................................................................ 25  SECTION 1.06.   Status of Obligations .................................................................................................. 26   ARTICLE II The Credits                                                              26   SECTION 2.01.    Commitments ............................................................................................................. 26  SECTION 2.02.   Loans and Borrowings................................................................................................ 26  SECTION 2.03.   Requests for Borrowings ............................................................................................ 27  SECTION 2.04.   Intentionally Omitted ................................................................................................. 28  SECTION 2.05.   Swingline Loans ......................................................................................................... 28  SECTION 2.06.   Letters of Credit ......................................................................................................... 29  SECTION 2.07.   Funding of Borrowings .............................................................................................. 34  SECTION 2.08.   Interest Elections ........................................................................................................ 35  SECTION 2.09.   Termination and Reduction of Commitments ............................................................ 36  SECTION 2.10.   Repayment of Loans; Evidence of Debt ..................................................................... 36  SECTION 2.11.   Prepayment of Loans .................................................................................................. 37  SECTION 2.12.   Fees............................................................................................................................. 37  SECTION 2.13.   Interest ........................................................................................................................ 38  SECTION 2.14.   Alternate Rate of Interest ........................................................................................... 39  SECTION 2.15.   Increased Costs ........................................................................................................... 40  SECTION 2.16.   Break Funding Payments ............................................................................................ 41  SECTION 2.17.   Taxes .......................................................................................................................... 42  SECTION 2.18.   Payments Generally; Pro Rata Treatment; Sharing of Set-offs .................................. 45  SECTION 2.19.   Mitigation Obligations; Replacement of Lenders ...................................................... 47  SECTION 2.20.   Expansion Option ....................................................................................................... 48  SECTION 2.21.   Defaulting Lenders ..................................................................................................... 49   ARTICLE III Representations and Warranties                                          51   SECTION 3.01.    Financial Condition; No Material Adverse Change ................................................... 51  SECTION 3.02.   Organization; Existence ............................................................................................. 52  SECTION 3.03.   Power; Authorization; Enforceable Obligations ........................................................ 52  SECTION 3.04.   Conflict ....................................................................................................................... 52  SECTION 3.05.   No Material Litigation ................................................................................................ 52  SECTION 3.06.   No Default .................................................................................................................. 52  SECTION 3.07.   Taxes .......................................................................................................................... 53  SECTION 3.08.   ERISA ........................................................................................................................ 53  SECTION 3.09.   Governmental Regulations, Etc. ................................................................................. 54  SECTION 3.10.   Subsidiaries ................................................................................................................ 54  SECTION 3.11.   Purpose of Loans and Letters of Credit ...................................................................... 54  SECTION 3.12.   Compliance with Laws; Contractual Obligations ....................................................... 54  SECTION 3.13.   Accuracy and Completeness of Information .............................................................. 55  SECTION 3.14.   Environmental Matters ............................................................................................... 55  SECTION 3.15.   Anti-Corruption Laws and Sanctions ......................................................................... 56     

 

                                    Table of Contents                                        (continued)                                                                                     Page   SECTION 3.16.   EEA Financial Institutions ......................................................................................... 56   ARTICLE IV Conditions                                                               56   SECTION 4.01.   Effective Date ............................................................................................................. 56  SECTION 4.02.   Each Credit Event ....................................................................................................... 57   ARTICLE V Affirmative Covenants                                                     58   SECTION 5.01.   Financial Statements................................................................................................... 58  SECTION 5.02.   Certificates; Other Information .................................................................................. 59  SECTION 5.03.   Notices ........................................................................................................................ 59  SECTION 5.04.   Maintenance of Existence; Compliance with Law; Maintenance of Certain                  Policies and Procedures; Performance of Material Contractual Obligations ............. 60  SECTION 5.05.   Maintenance of Property; Insurance ........................................................................... 61  SECTION 5.06.   Inspection of Property; Books and Records; Discussions .......................................... 61  SECTION 5.07.   Financial Covenants ................................................................................................... 61  SECTION 5.08.   Use of Proceeds .......................................................................................................... 61  SECTION 5.09.   Additional Subsidiary Guarantors .............................................................................. 61  SECTION 5.10.   Payment of Obligations .............................................................................................. 61  SECTION 5.11.   Further Assurances ..................................................................................................... 62   ARTICLE VI Negative Covenants                                                       62   SECTION 6.01.   Liens ........................................................................................................................... 62  SECTION 6.02.   Consolidation, Merger, Sale, Etc.  .............................................................................. 62  SECTION 6.03.   Sale Leasebacks .......................................................................................................... 63  SECTION 6.04.   Sale of Subsidiaries .................................................................................................... 63  SECTION 6.05.   Transactions with Affiliates ....................................................................................... 63  SECTION 6.06.   Investments ................................................................................................................. 63  SECTION 6.07.   Use of Proceeds .......................................................................................................... 63  SECTION 6.08.   Subsidiary Indebtedness ............................................................................................. 64   ARTICLE VII Events of Default                                                       64   ARTICLE VIII The Administrative Agent                                               68   SECTION 8.01.    Authorization and Action ........................................................................................... 68  SECTION 8.02.   Administrative Agent’s Reliance, Indemnification, Etc ............................................. 70  SECTION 8.03.   Posting of Communications ....................................................................................... 71  SECTION 8.04.   The Administrative Agent Individually...................................................................... 72  SECTION 8.05.   Successor Administrative Agent ................................................................................ 73  SECTION 8.06.   Acknowledgements of Lenders and Issuing Banks .................................................... 73  SECTION 8.07.   Certain ERISA Matters .............................................................................................. 74   ARTICLE IX Miscellaneous                                                            75   SECTION 9.01.   Notices ........................................................................................................................ 75  SECTION 9.02.   Waivers; Amendments ............................................................................................... 76  SECTION 9.03.   Expenses; Indemnity; Damage Waiver ...................................................................... 78                                               ii  

 

                                    Table of Contents                                        (continued)                                                                                     Page   SECTION 9.03.   Expenses; Indemnity; Damage Waiver ...................................................................... 78  SECTION 9.04.   Successors and Assigns .............................................................................................. 80  SECTION 9.05.   Survival ...................................................................................................................... 84  SECTION 9.06.   Counterparts; Integration; Effectiveness; Electronic Execution ................................ 84  SECTION 9.07.   Severability ................................................................................................................. 85  SECTION 9.08.   Right of Setoff ............................................................................................................ 85  SECTION 9.09.   Governing Law; Jurisdiction; Consent to Service of Process .................................... 85  SECTION 9.10.   WAIVER OF JURY TRIAL ...................................................................................... 86  SECTION 9.11.   Headings ..................................................................................................................... 86  SECTION 9.12.   Confidentiality ............................................................................................................ 86  SECTION 9.13.   USA PATRIOT Act ................................................................................................... 87  SECTION 9.14.   Releases of Subsidiary Guarantors ............................................................................. 87  SECTION 9.15.   Interest Rate Limitation .............................................................................................. 88  SECTION 9.16.   No Advisory or Fiduciary Responsibility .................................................................. 88  SECTION 9.17.   Acknowledgement and Consent to Bail-In of EEA Financial Institutions ................. 89                                                iii  

 

                                   Table of Contents                                       (continued)                                                                                    Page                   SCHEDULES:    Schedule 2.01A – Commitments  Schedule 2.01B – Letter of Credit Commitments  Schedule 3.05 – Material Litigation  Schedule 3.10 – Subsidiaries  Schedule 3.14 – Disclosed Environmental Matters    EXHIBITS:    Exhibit A – Form of Assignment and Assumption  Exhibit B – Form of Note  Exhibit C – Form of Borrowing Request  Exhibit D – [Intentionally Omitted]  Exhibit E – Form of Increasing Lender Supplement  Exhibit F – Form of Augmenting Lender Supplement  Exhibit G – List of Closing Documents  Exhibit H – Form of Subsidiary Guaranty  Exhibit I-1 – Form of U.S. Tax Certificate (Non-U.S. Lenders That Are Not Partnerships)  Exhibit I-2 – Form of U.S. Tax Certificate (Non-U.S. Participants That Are Not Partnerships)  Exhibit I-3 – Form of U.S. Tax Certificate (Non-U.S. Participants That Are Partnerships)  Exhibit I-4 – Form of U.S. Tax Certificate (Non-U.S. Lenders That Are Partnerships)  Exhibit J – Form of Officer’s Certificate  Exhibit K – Form of Account Designation Letter                                                             iv  

 

                CREDIT  AGREEMENT  (this  “Agreement”)  dated  as  of  December  20,  2018  among  UNIVERSAL CORPORATION, the LENDERS from time to time party hereto, JPMORGAN CHASE  BANK, N.A., as Administrative Agent, SUNTRUST BANK and AGFIRST FARM CREDIT BANK, as  Co-Syndication Agents and KEYBANK NATIONAL ASSOCIATION and CAPITAL ONE, NATIONAL  ASSOCIATION as Co-Documentation Agents.                The parties hereto agree as follows:                                         ARTICLE I                                                                                      Definitions                SECTION 1.01. Defined Terms.  As used in this Agreement, the following terms have the  meanings specified below:                “ABR”, when used in reference to any Loan or Borrowing, refers to a Loan, or the Loans  comprising such Borrowing, bearing interest at a rate determined by reference to the Alternate Base Rate.                “ABR Loans” means, ABR Revolving Loans, ABR Term A-1 Loans and ABR Term A-2  Loans.                “Account Designation Letter” means an account designation letter substantially in the form  of Exhibit K.                “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest  Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the  LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.                “Administrative  Agent”  means  JPMorgan  Chase  Bank,  N.A.,  in  its capacity  as  administrative agent for the Lenders hereunder.                “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied  by the Administrative Agent.                “Affiliate”  means,  with  respect  to  a  specified  Person,  another Person  that  directly,  or  indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control  with the Person specified.                “Agreement” has the meaning assigned to such term in the introductory paragraph.                “Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the  Prime Rate in effect on such day, (b) the NYFRB Rate in effect on such day plus 1⁄2 of 1% and (c) the  Adjusted LIBO Rate for a one month Interest Period in Dollars on such day (or if such day is not a Business  Day, the immediately preceding Business Day) plus 1%, provided that for the purpose of this definition,  the Adjusted LIBO Rate for any day shall be based on the LIBO Screen Rate (or if the LIBO Screen Rate  is not available for such one month Interest Period, the Interpolated Rate) at approximately 11:00 a.m.  London time on such day.  Any change in the Alternate Base Rate due to a change in the Prime Rate, the  NYFRB Rate or the Adjusted LIBO Rate shall be effective from and including the effective date of such  change in the Prime Rate, the NYFRB Rate or the Adjusted LIBO Rate, respectively.  If the Alternate Base  Rate is being used as an alternate rate of interest pursuant to Section 2.14, then the Alternate Base Rate  shall be the greater of clauses (a) and (b) above and shall be determined without reference to clause (c)      

 

   above.  For the avoidance of doubt, if the Alternate Base Rate as determined pursuant to the foregoing  would be less than 1.00%, such rate shall be deemed to be 1.00% for purposes of this Agreement.                “Anti-Corruption  Laws”  means  all  laws,  rules,  and  regulations  of  any  jurisdiction  applicable  to  the  Borrower  or  its  Subsidiaries  from  time  to  time  concerning  or  relating  to  bribery  or  corruption.                “Applicable Party” has the meaning assigned to such term in Section 8.03(c).                “Applicable Percentage” means, with respect to any Lender, (a) with respect to Revolving  Loans, LC Exposure or Swingline Loans, the percentage equal to a fraction the numerator of which is such  Lender’s Revolving Commitment and the denominator of which is the aggregate Revolving Commitments  of  all  Revolving  Lenders  (if  the  Revolving  Commitments  have  terminated  or  expired,  the  Applicable  Percentages shall be determined based upon the Revolving Commitments most recently in effect, giving  effect to any assignments); provided that in the case of Section 2.21 when a Defaulting Lender shall exist,  any  such  Defaulting  Lender’s  Revolving  Commitment  shall  be  disregarded  in  the  calculation,  (b) with  respect to the Term A-1 Loans, a percentage equal to a fraction the numerator of which is such Lender’s  outstanding  principal  amount  of the  Term  A-1  Loans  and  the  denominator  of  which  is  the  aggregate  outstanding principal amount of the Term A-1 Loans of all Term A-1 Lenders; provided that in the case of  Section 2.21  when  a  Defaulting  Lender  shall  exist,  any  such  Defaulting  Lender’s  Term  A-1  Loan  Commitment  shall  be  disregarded  in  the  calculation,  and  (c) with  respect  to  the  Term  A-2  Loans,  a  percentage equal to a fraction the numerator of which is such Lender’s outstanding principal amount of the  Term A-2 Loans and the denominator of which is the aggregate outstanding principal amount of the Term  A-2 Loans of all Term A-2 Lenders; provided that in the case of Section 2.21 when a Defaulting Lender  shall  exist,  any  such  Defaulting Lender’s  Term  A-2  Loan  Commitment  shall  be  disregarded  in  the  calculation.                “Applicable Rate” means, for any day, with respect to any Eurodollar Revolving Loan, any  ABR Revolving Loan, any Eurodollar Term A-1 Loan, any ABR Term A-1 Loan, any Eurodollar Term A- 2 Loan, any ABR Term A-2 Loan or with respect to the facility fees payable hereunder, as the case may be,  the applicable rate per annum set forth below under the caption “Eurodollar Spread (Revolving Loans)”,  “ABR  Spread  (Revolving  Loans)”,  “Eurodollar  Spread  (Term  A-1  Loans)”,  “ABR  Spread  (Term  A-1  Loans)”, “Eurodollar Spread (Term A-2 Loans)”, “ABR Spread (Term A-2 Loans)” or “Facility Fee Rate”,  as the case may be, based upon the Total Leverage Ratio applicable on such date:                                                                       ABR                       Total Leverage Facility Fee Eurodollar Spread  Spread                          Ratio         Rate     (Revolving Loans) (Revolving Loans)                                                                                                < 1.25 to 1.00           Category 1:                  0.25%         1.25%           0.25%                                            > 1.25 to 1.00 but            Category 2:                  0.30%         1.45%           0.45%                        < 1.75 to 1.00                      > 1.75 to 1.00 but            Category 3:                  0.35%         1.65%           0.65%                        < 2.25 to 1.00           Category 4:  > 2.25 to 1.00   0.40%        1.85%           0.85%                                                                                                  Total Leverage Eurodollar Spread ABR       Eurodollar Spread  ABR                   Ratio      (Term A-1 Loans)  Spread     (Term A-2 Loans)   Spread                                            (Term A-1 Loans)              (Term A-2 Loans)                < 1.25 to 1.00    1.50%         0.50%          1.75%          0.75%    Category 1:                                                             2  

 

                > 1.25 to 1.00 but  1.75%        0.75%          2.00%          1.00%    Category 2:                < 1.75 to 1.00               > 1.75 to 1.00 but  2.00%        1.00%          2.25%          1.25%    Category 3:                < 2.25 to 1.00    Category 4: > 2.25 to 1.00    2.25%         1.25%          2.75%          1.75%                 For purposes of the foregoing,                 (i) if at any time the Borrower fails to deliver the Financials on or before the date the         Financials are due pursuant to Section 5.01, Category 4 shall be deemed applicable for the period         commencing three (3) Business Days after the required date of delivery and ending on the date that         is three (3) Business Days after the Financials are actually delivered, after which the Category shall         be determined in accordance with the table above as applicable;                (ii) adjustments, if any, to the Category then in effect shall be effective three (3) Business         Days after the Administrative Agent has received the applicable Financials (it being understood         and agreed that each change in Category shall apply during the period commencing on the effective         date of such change and ending on the date immediately preceding the effective date of the next         such change); and                (iii) notwithstanding the foregoing, Category 1 shall be deemed to be applicable until the         Administrative Agent’s receipt of the applicable Financials for the Borrower’s fiscal quarter ending        on or about December 31, 2018 and adjustments to the Category then in effect shall thereafter be        effected in accordance with the preceding paragraphs; provided, however, that if any Financials        demonstrate that Category 2, 3 or 4 would be applicable pursuant to the paragraph above, then        Category 2, 3 or 4, as the case may be, shall be applicable in accordance with the paragraph above.                “Approved Electronic Platform” has the meaning assigned to such term in Section 8.03(a).                “Approved Fund” has the meaning assigned to such term in Section 9.04.                “Arranger” means each of JPMorgan Chase Bank, N.A., AgFirst Farm Credit Bank and  SunTrust Robinson Humphrey, Inc. in its capacity as a joint bookrunner and a joint lead arranger hereunder.                “Assignment and Assumption” means an assignment and assumption agreement entered  into by a Lender and an assignee (with the consent of any party whose consent is required by Section 9.04),  and accepted by the Administrative Agent, in the form of Exhibit A or any other form (including electronic  records generated by the use of an electronic platform) approved by the Administrative Agent.                “Augmenting Lender” has the meaning assigned to such term in Section 2.20.                “Availability  Period”  means  the  period  from  and  including  the  Effective  Date  to  but  excluding the earlier of the Revolving/TLA-1 Maturity Date and the date of termination of the Revolving  Commitments pursuant hereto.                “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the  applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.                “Bail-In  Legislation”  means,  with  respect  to  any  EEA  Member  Country  implementing  Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union,  the implementing law for such EEA Member Country from time to time which is described in the EU Bail- In Legislation Schedule.                                              3  

 

                “Banking Services” means each and any of the following bank services provided to the  Borrower or any Subsidiary by any Lender or any of its Affiliates: (a) credit cards for commercial customers  (including, without limitation, commercial credit cards and purchasing cards), (b) stored value cards and  (c)  treasury  management  services  (including,  without  limitation,  controlled  disbursement,  automated  clearinghouse transactions, return items, overdrafts and interstate depository network services).                “Banking Services Agreement” means any agreement entered into by the Borrower or any  Subsidiary in connection with Banking Services.                “Bankruptcy  Event”  means,  with  respect  to  any  Person,  the  occurrence of any of the  following  with  respect  to  such  Person:   (i) a  court  or  governmental  agency  having  jurisdiction  in  the  premises shall (A) enter a decree or order for relief in respect of such Person in an involuntary case under  any applicable bankruptcy, insolvency, or other similar law now or hereafter in effect, or (B) appoint a  receiver, liquidator, assignee, custodian, trustee, sequestrator, or similar official of such Person or for any  substantial part of its Property, or (C) order the winding up or liquidation of its affairs; (ii) there shall be  commenced against such Person (A) an involuntary case under any applicable bankruptcy, insolvency, or  other similar law now or hereafter in effect, or (B) any case, proceeding, or other action for the appointment  of a receiver, liquidator, assignee, custodian, trustee, sequestrator, or similar official of such Person or for  any substantial part of its Property, or for the winding up or liquidation of its affairs, and such involuntary  case or other case, proceeding, or other action shall remain undismissed, undischarged, or unbonded for a  period of sixty (60) consecutive days; or (iii) (A) such Person shall (w) commence a voluntary case under  any applicable bankruptcy, insolvency, or other similar law now or hereafter in effect, (x) consent to the  entry of an order for relief in an involuntary case under any such law, (y) consent to the appointment or  taking possession, by a receiver, liquidator, assignee, custodian, trustee, sequestrator, or similar official of  such Person of any substantial part of its Property, or (z) make any general assignment for the benefit of  creditors, or (B) the board of directors of such Person shall authorize such Person to take any of the actions  set forth in subsection (A); or (iv) such Person shall be unable to, or shall admit in writing its inability to,  pay its debts generally as they become due.                “Beneficial Ownership Certification” means a certification regarding beneficial ownership  or control as required by the Beneficial Ownership Regulation.                “Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.                “Benefit Plan” means any of (a) an “employee benefit plan” (as defined in Section 3(3) of  ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Code to which  Section 4975 of the Code applies, and (c) any Person whose assets include (for purposes of the Plan Asset  Regulations or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any  such “employee benefit plan” or “plan”.                 “Board” means the Board of Governors of the Federal Reserve System of the United States  of America.                “Borrower” means Universal Corporation, a Virginia corporation.                “Borrowing” means (a) Revolving Loans of the same Type, made, converted or continued  on the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect, (b) a  Term Loan of the same Type and Class, made, converted or continued on the same date and, in the case of  Eurodollar Loans, as to which a single Interest Period is in effect or (c) a Swingline Loan.                                               4  

 

                “Borrowing Request” means a request by the Borrower for a Borrowing in accordance with  Section 2.03.                “Business  Day”  means  any  day  that  is  not  a  Saturday,  Sunday  or other  day  on  which  commercial banks in New York City are authorized or required by law to remain closed; provided that,  when used in connection with a Eurodollar Loan, the term “Business Day” shall also exclude any day on  which banks are not open for dealings in Dollars in the London interbank market.                “Capital Lease” means, as applied to any Person, any lease of any Property (whether real,  personal, or mixed) by that Person as lessee that, in accordance with GAAP, is or should be accounted for  as a capital lease on the balance sheet of that Person.                “Capital Stock” means (i) in the case of a corporation, capital stock, (ii) in the case of an  association  or  business  entity,  any  and  all  shares,  interests, participations,  rights,  or  other  equivalents  (however  designated)  of  capital  stock,  (iii)  in  the  case  of  a  partnership,  partnership  interests  (whether  general or limited), (iv) in the case of a limited liability company, membership interests, and (v) any other  interest or participation that confers on a Person the right to receive a share of the profits and losses of, or  distribution of assets of, the issuing Person.                “Change in Law” means the occurrence, after the date of this Agreement (or with respect  to any Lender, if later, the date on which such Lender becomes a Lender), of any of the following: (a) the  adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation  or  treaty  or  in  the  administration,  interpretation,  implementation  or  application  thereof  by  any  Governmental Authority, or (c) the making or issuance of any request, rules, guideline, requirement or  directive (whether or not having the force of law) by any Governmental Authority; provided however, that  notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer  Protection  Act  and  all  requests,  rules,  guidelines,  requirements  and  directives  thereunder,  issued  in  connection therewith or in implementation thereof, and (ii) all requests, rules, guidelines, requirements and  directives  promulgated  by  the  Bank  for  International  Settlements,  the  Basel  Committee  on  Banking  Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in  each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law” regardless of the date  enacted, adopted, issued or implemented.                “Change of Control” means (a) any Person or two or more Persons acting in concert shall  have  acquired  “beneficial  ownership,”  directly  or  indirectly,  of,  or  shall  have  acquired  by  contract  or  otherwise, or shall have entered into a contract or arrangement that, upon consummation, will result in its  or their acquisition of, or control over, Voting Stock of the Borrower (or other securities convertible into  such Voting Stock) representing 25% or more of the combined voting power of all Voting Stock of the  Borrower, or (b) during any period of up to 24 consecutive months, commencing after the Effective Date,  individuals who at the beginning of such 24 month period were directors of the Borrower (together with  any new directors whose election or nomination by the Borrower’s Board of Directors or whose nomination  for election by the Borrower’s shareholders was approved by a vote of a majority of the directors then still  in office who either were directors at the beginning of such period or whose election or nomination for  election was previously so approved) cease for any reason to constitute a majority of the directors of the  Borrower then in office. As used herein, “beneficial ownership” shall have the meaning provided in Rule  13d-3 of the SEC under the Securities Act of 1934.                “Charges” has the meaning assigned to such term in Section 9.15.                                               5  

 

                “Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan,  or the Loans comprising such Borrowing, are Revolving Loans, Term A-1 Loans, Term  A-2 Loans or  Swingline Loans.                “Code” means the Internal Revenue Code of 1986, as amended.                “Co-Documentation Agent” means each of KEYBANK NATIONAL ASSOCIATION and  CAPITAL ONE, NATIONAL ASSOCIATION in its capacity as a co-documentation agent for the credit  facilities evidenced by this Agreement.                “Commitment” means, with respect to each Lender, the sum of such Lender’s Revolving  Commitment, Term A-1 Loan Commitment and Term A-2 Loan Commitment. The initial amount of each  Lender’s  Commitment  is  set  forth  on  Schedule  2.01A,  or  in  the  Assignment  and  Assumption  or  other  documentation contemplated hereby pursuant to which such Lender shall have assumed its Commitment,  as applicable.                “Committed Inventory” means tobacco inventories for which the Borrower has received a  Confirmed Order.                “Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.),  as amended from time to time, and any successor statute.                “Communications” means, collectively, any notice, demand, communication, information,  document or other material provided by or on behalf of any Loan Party pursuant to any Loan Document or  the transactions contemplated therein which is distributed by the Administrative Agent, any Lender or any  Issuing Bank by means of electronic communications pursuant to Section 8.03(c), including through an  Approved Electronic Platform.                “Confirmed Order” means an order by a customer (other than an Affiliate of the Borrower)  that has been accepted in the ordinary course of business by representatives of the Borrower or an Affiliate  of the Borrower and recorded on the inventory records of such Affiliate or the Borrower.                “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 Accumulated Other Comprehensive Income” means, for the Consolidated  Group,  at  any  time,  the  accumulated  change  in  shareholders’  equity  of  the  Borrower  caused  by  the  recognition of other comprehensive income as defined in accordance with GAAP applied on a consistent  basis.                “Consolidated Average Committed Inventory” means the quotient obtained by dividing (i)  the sum of the Committed Inventory of the Consolidated Group as of the end of each of the preceding four  fiscal quarters by (ii) four (4).                “Consolidated Average Customer Advances and Deposits” means the quotient obtained by  dividing (i) the sum of the Customer Advances and Deposits of the Consolidated Group as of the end of  each of the preceding four fiscal quarters by (ii) four (4).                “Consolidated Average Total Indebtedness” means the quotient obtained by dividing (i)  the sum of the total Indebtedness of the Consolidated Group as of the end of the preceding four fiscal  quarters by (ii) four (4).                                               6  

 

                “Consolidated  EBITDA”  means,  for  any  fiscal  period  of  the  Borrower, the sum of  (i) Consolidated Net Income for such period, plus (ii) the aggregate amount of the depreciation expense and  amortization expense for such period to the extent deducted in determining Consolidated Net Income, plus  (iii) the  consolidated  income  tax  expense  for  such  period  deducted  in  determining  Consolidated  Net  Income, plus (iv) the interest expense for such period (including, without limitation, the interest component  of  payments  under  Capital  Leases)  deducted  in  determining  Consolidated  Net  Income,  minus  (v) any  extraordinary items of non-recurring gain included in Consolidated Net Income for such period, minus  (vi) any minority interests, plus (vii) an add-back for potential impairment, restructuring charges or any  extraordinary and non-recurring non-cash charges, in each case, as determined in accordance with GAAP  plus (viii) an add-back for non-cash charges related to the Borrower’s stock compensation plan determined  for  the  Consolidated  Group  on  a consolidated  basis  in  accordance  with  GAAP.   Notwithstanding  the  foregoing, Consolidated EBITDA shall include those amounts of income tax expense, interest expense and  depreciation and amortization expense netted into one line item on the income statement of the Borrower  as a result of reporting “discontinued operations” on such income statement.                “Consolidated Group” means the Borrower and its consolidated subsidiaries as determined  in accordance with GAAP.                “Consolidated Net Income” means for any period for the Consolidated Group, net income  on a consolidated basis determined in accordance with GAAP applied on a consistent basis.                “Consolidated  Tangible  Net  Worth”  means,  for  the  Consolidated  Group  at  any  time,  Consolidated  Total  Tangible  Assets,  minus  Consolidated  Total  Liabilities,  plus  the  Consolidated  Accumulated Other Comprehensive Income that results in a reduction to shareholders’ equity, if any, and  minus  the  Consolidated  Accumulated  Other  Comprehensive  Income  that  results  in  an  increase  to  shareholders’ equity, if any, as determined on a consolidated basis in accordance with GAAP applied on a  consistent basis; provided that notwithstanding the foregoing, no “right of use” asset or similar intangible  that would have been accrued rental lease expense under GAAP as in effect on the Effective Date shall be  subtracted in determining “Consolidated Tangible Net Worth”.                “Consolidated  Total  Indebtedness”  means,  for  the Consolidated  Group  at  any  time,  (a)  Consolidated  Average  Total  Indebtedness  minus  (b)  fifty  percent  (50%)  of  Consolidated  Average  Committed  Inventory  plus  (c)  fifty  percent  (50%)  of  Consolidated  Average  Customer  Advances  and  Deposits.                “Consolidated  Total  Liabilities”  means  for  the  Consolidated  Group  at  any  time,  total  liabilities determined on a consolidated basis in accordance with GAAP applied on a consistent basis.                “Consolidated  Total  Tangible  Assets”  means,  for  the  Consolidated  Group  at  any  time,  consolidated total assets minus (i) goodwill and (ii) other items properly classified as “intangible assets”,  in each case as determined on a consolidated basis in accordance with GAAP applied on a consistent basis.                “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.  The terms “Controlling” and “Controlled” have meanings correlative thereto.                “Co-Syndication Agent” means each of SunTrust Bank and AgFirst Farm Credit Bank in  its capacity as a co-syndication agent for the credit facilities evidenced by this Agreement.                “Credit Event” means a Borrowing, the issuance, amendment, renewal or extension of a  Letter of Credit, an LC Disbursement or any of the foregoing.                                               7  

 

                “Credit  Exposure”  means,  as  to  any  Lender  at  any  time,  the  sum of  (a) such  Lender’s  Revolving Credit Exposure at such time, plus (b) an amount equal to the aggregate principal amount of its  Term Loans outstanding at such time.                “Credit Party” means the Administrative Agent, any Issuing Bank, the Swingline Lender  or any other Lender.                “Customer Advances and Deposits” means funds received by the Borrower from customers  that are recorded as “Customer Advances and Deposits” on the Borrower’s financial statements.                “Default” means any event or condition that constitutes an Event of Default or that upon  notice, lapse of time or both would, unless cured or waived, become an Event of Default.                “Defaulting Lender” means any Lender that (a) has failed, within two (2) Business Days  of the date required to be funded or paid, to (i) fund any portion of its Loans, (ii) fund any portion of its  participations in Letters of Credit or Swingline Loans or (iii) pay over to any Credit Party any other amount  required  to  be  paid  by  it  hereunder,  unless,  in  the  case  of  clause  (i)  above,  such  Lender  notifies  the  Administrative Agent in writing that such failure is the result of such Lender’s good faith determination  that a condition precedent to funding set forth in Article IV of this Agreement (specifically identified and  including the particular default, if any) has not been satisfied, (b) has notified the Borrower or any Credit  Party in writing, or has made a public statement to the effect, that it does not intend or expect to comply  with any of its funding obligations under this Agreement (unless such writing or public statement indicates  that such position is based on such Lender’s good faith determination that a condition precedent set forth  in  Article  IV  of  this  Agreement (specifically  identified  and  including  the  particular  default,  if  any)  to  funding a loan under this Agreement cannot be satisfied) or generally under other agreements in which it  commits to extend credit, (c) has failed, within three (3) Business Days after request by a Credit Party,  acting in good faith, to provide a certification in writing from an authorized officer of such Lender that it  will  comply  with  its  obligations  (and  is  financially  able  to  meet  such  obligations  as  of  the  date  of  certification)  to  fund  prospective  Loans  and  participations  in then  outstanding  Letters  of  Credit  and  Swingline Loans under this Agreement, provided that such Lender shall cease to be a Defaulting Lender  pursuant to this clause (c) upon such Credit Party’s receipt of such certification in form and substance  reasonably satisfactory to it and the Administrative Agent, or (d) has become the subject of (i) a Bankruptcy  Event or (ii) 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.                “Dollars” or “$” refers to lawful money of the United States of America.                “Domestic  Subsidiary”  means  a  Subsidiary  organized  under  the  laws  of  a  jurisdiction  located in the United States of America.                “ECP”  means  an  “eligible  contract  participant”  as  defined  in  Section  1(a)(18)  of  the  Commodity Exchange Act or any regulations promulgated thereunder and the applicable rules issued by  the Commodity Futures Trading Commission and/or the SEC.                “EEA Financial Institution” means (a) any 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                                               8  

 

   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 date hereof.                “Electronic  Signature”  means  an  electronic  sound,  symbol,  or  process  attached  to,  or  associated with, a contract or other record and adopted by a Person with the intent to sign, authenticate or  accept such contract or record.                “Environmental  Laws”  means  any  and  all  applicable  foreign,  federal,  state,  local,  or  municipal  laws,  rules,  orders,  regulations,  statutes,  ordinances,  codes,  decrees,  requirements  of  any  Governmental Authority, or other Requirement of Law (including common law) regulating, relating to, or  imposing liability or standards of conduct concerning protection of human health from exposure to any  Materials of Environmental Concern or the environment, as now or may at any time be in effect during the  term of this Agreement.                “Environmental  Liability”  means  any  liability,  contingent  or  otherwise  (including  any  liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower  or any Subsidiary directly or indirectly resulting from or based upon (a) violation of any Environmental  Law,  (b)  the  generation,  use,  handling,  transportation,  storage,  treatment  or  disposal  of  any  Hazardous  Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous  Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to  which liability is assumed or imposed with respect to any of the foregoing.                “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and  any successor statute thereto, as interpreted by the rules and regulations thereunder, all as the same may be  in effect from time to time.  References to sections of ERISA shall be construed also to refer to any successor  sections.                “ERISA Affiliate” means an entity, whether or not incorporated, that is under common  control with the Borrower within the meaning of Section 4001(a)(14) of ERISA, or is a member of a group  that includes the Borrower and that is treated as a single employer under Sections 414(b) or (c) of the Code.                “ERISA Event” means (i) with respect to any Single Employer Plan or Multiple Employer  Plan, the occurrence of a Reportable Event; (ii) the withdrawal by the Borrower, any Subsidiary of the  Borrower or any ERISA Affiliate from a Multiple Employer Plan during a plan year in which it was a  substantial employer (as such term is defined in Section 4001(a)(2) of ERISA), or the termination of a  Multiple Employer Plan; (iii) the distribution of a notice of intent to terminate or the actual termination of  a Plan pursuant to Section 4041(a)(2) or 4041A of ERISA; (iv) the institution of proceedings to terminate  or the actual termination of a Plan by the PBGC under Section 4042 of ERISA; (v) any event or condition  that could reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination  of, or the appointment of a trustee to administer, any Plan; (vi) the complete or partial withdrawal of the  Borrower, any Subsidiary of the Borrower, or any ERISA Affiliate from a Multiemployer Plan or the receipt                                               9  

 

   by the Borrower, any Subsidiary, or any ERISA Affiliate that a Multiemployer Plan is in reorganization;  (vii) the conditions for imposition of a lien under Section 302(f) of ERISA exist with respect to any Plan;  or (vii) the adoption of an amendment to any Plan requiring the provision of security to such Plan pursuant  to Section 307 of ERISA.                “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published  by the Loan Market Association (or any successor Person), as in effect from time to time.                 “Eurodollar”, when used in reference to any Loan or Borrowing, means that such Loan, or  the Loans comprising such Borrowing, bears interest at a rate determined by reference to the Adjusted  LIBO Rate.                “Eurodollar Loans” mean, Eurodollar Term A-1 Loans, Eurodollar Term A-2 Loans and  Eurodollar Revolving Loans.                “Event of Default” has the meaning assigned to such term in Article VII.                “Excluded Swap Obligation” means, with respect to any Loan Party, any Specified Swap  Obligation if, and to the extent that, all or a portion of the guarantee of such Loan Party of, or the grant by  such Loan Party of a security interest to secure, such Specified Swap Obligation (or any guarantee thereof)  is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity  Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such  Loan Party’s failure for any reason to constitute an ECP at the time the guarantee of such Loan Party, or  such grant of a security interest, becomes or would become effective with respect to such Specified Swap  Obligation.  If a Specified Swap Obligation arises under a master agreement governing more than one swap,  such exclusion shall apply only to the portion of such Specified Swap Obligation that is attributable to  swaps for which such guarantee or security interest is or becomes illegal.                “Excluded  Taxes”  means  any  of  the  following  Taxes  imposed  on  or  with  respect  to  a  Recipient or required to be withheld or deducted from a payment to a Recipient:                (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes,  and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the  laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in,  the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Connection Income  Taxes;                (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable  to or for the account of such Lender with respect to an applicable interest in a Loan, Letter of Credit or  Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the  Loan, Letter of Credit or Commitment (other than pursuant to an assignment request by the Borrower under  Section 2.19(b)) or (ii) such Lender changes its lending office, except, in each case, to the extent that,  pursuant to Section 2.17, amounts with respect to such Taxes were payable either to such Lender’s assignor  immediately before such Lender acquired the applicable interest in a Loan, Letter of Credit or Commitment  or to such Lender immediately before it changes its lending office;                (c) Taxes attributable to such Recipient’s failure to comply with Section 2.17(f); and                (d) any withholding Taxes imposed under FATCA.                                              10  

 

                “Existing Credit Agreement” means the Credit Agreement, dated as of December 30, 2014,  among the Borrower, certain lenders and JPMorgan Chase Bank, N.A., as administrative agent, as amended  prior to the date hereof.                “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 agreement entered  into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices  adopted  pursuant  to  any  intergovernmental  agreement,  treaty  or convention  among  Governmental  Authorities and implementing such Sections of the Code.                “Federal Funds Effective Rate” means, for any day, the rate calculated by the NYFRB  based on such day’s federal funds transactions by depositary institutions, as determined in such manner as  the NYFRB shall set forth on its public website from time to time, and published on the next succeeding  Business Day by the NYFRB as the effective federal funds rate; provided that if the Federal Funds Effective  Rate as so determined would be less than zero, such rate shall be deemed to be zero for the purposes of this  Agreement.                “Financial Officer” means the chief financial officer, principal accounting officer, treasurer  or controller of the Borrower.                “Financials”  means  the  annual  or  quarterly  financial  statements,  and  accompanying  certificates and other documents, of the Borrower and its Subsidiaries required to be delivered pursuant to  Section 5.01(a) or 5.01(b).                “GAAP” means generally accepted accounting principles in the United States of America.                “Governmental Authority” means the government of the United States of America, any  other  nation  or  any  political  subdivision  thereof,  whether  state  or  local,  and  any  agency,  authority,  instrumentality,  regulatory  body,  court,  central  bank  or  other entity  exercising  executive,  legislative,  judicial, taxing, regulatory or administrative powers or functions of or pertaining to government.                “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.                “IBA” has the meaning assigned to such term in Section 1.05.                “Impacted  Interest  Period”  has  the  meaning  assigned  to  such  term  in  the  definition  of  “LIBO Rate”.                “Increase Effective Date” has the meaning assigned to such term in Section 2.20.                “Increasing Lender” has the meaning assigned to such term in Section 2.20.                “Incremental Term Loan” has the meaning assigned to such term in Section 2.20.                “Indebtedness” of any Person means, without duplication, (i) all obligations of such Person  for borrowed money, (ii) all principal obligations of such Person evidenced by bonds, debentures, notes, or  similar instruments upon which interest payments are customarily made, (iii) all obligations of such Person                                              11  

 

   under conditional sale or other title retention agreements relating to Property purchased by such Person  (other than customary indemnities or reservations or retentions of title under agreements with suppliers  entered into in the ordinary course of business), (iv) all obligations of such Person issued or assumed as the  deferred purchase price of Property or services purchased by such Person (other than trade letters of credit,  trade debt and accounts payable to trade creditors for goods and services incurred in the ordinary course of  business and due within one (1) year of the incurrence thereof, which shall not constitute Indebtedness for  purposes  of  this  clause  (iv))  that  would  appear  as  liabilities on  a  balance  sheet  of  such  Person,  (v)  all  Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right,  contingent, or otherwise, to be secured by) any Lien on, or payable out of the proceeds of production from,  Property owned or acquired by such Person, whether or not the obligations secured thereby have been  assumed; provided, that for purposes hereof the amount of such Indebtedness shall be limited to the greater  of (A) the amount of such Indebtedness as to which there is recourse to such Person and (B) the fair market  value  of  the  property  that  is  subject  to  the  Lien,  (vi)  all  Support  Obligations  of  such  Person,  (vii)  the  principal portion of all obligations of such Person under Capital Leases, (viii) the maximum outstanding  amount of all standby letters of credit (excluding (a) performance letters of credit and trade letters of credit,  (b) letters of credit issued in connection with Customer Advances and Deposits and (c) other letters of credit  with a face amount not in excess of $250,000, so long as the aggregate amount of all such letters of credit  excluded  pursuant  to  this  clause  (c)  does  not  exceed  $5,000,000  in  aggregate)  issued  or  bankers’  acceptances created for the account of such Person and, without duplication, all drafts drawn thereunder (to  the  extent  unreimbursed),  (ix)  the  outstanding  attributed  principal  amount  under  any  securitization  financing program of such Person, and (x) the principal balance outstanding under any synthetic lease or  tax retention operating lease to which such Person is a party, where such transaction is considered borrowed  money indebtedness for tax purposes but is classified as an operating lease in accordance with GAAP;  excluding, for all purposes hereof, all contingent liabilities from (1) pre-export farmer financing in Brazil  and  (2)  pre-export  and  post-export  financing  in  Zimbabwe,  each in  an  aggregate  outstanding  principal  amount consistent with past practices of the Borrower. The Indebtedness of any Person shall include the  Indebtedness of any partnership or joint venture in which such Person is a general partner or a joint venturer,  but only to the extent to which there is recourse to such Person for payment of such Indebtedness.                “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 the foregoing clause (a), Other Taxes.                “Indemnitee” has the meaning assigned to such term in Section 9.03(b).                “Ineligible Institution” has the meaning assigned to such term in Section 9.04(b).                “Information” has the meaning assigned to such term in Section 9.12.                 “Interest Election Request”  means a request by the Borrower to convert or continue a  Borrowing in accordance with Section 2.08.                “Interest Payment Date” means (a) with respect to any ABR Loan (other than a Swingline  Loan), the last day of each March, June, September and December and the applicable Maturity Date, (b)  with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which  such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than three  months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three  months’ duration after the first day of such Interest Period and the applicable Maturity Date and (c) with  respect to any Swingline Loan, the day that such Loan is required to be repaid and the Revolving/TLA-1  Maturity Date.                                              12  

 

                “Interest Period” means with respect to any Eurodollar Borrowing, the period commencing  on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that  is one, two, three or six months thereafter (or such other period as is requested by the Borrower and is  reasonably acceptable to the Administrative Agent and the Lenders), as the Borrower may elect; provided,  that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be  extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the  next calendar month, in which case such Interest Period shall end on the next preceding Business Day and  (ii) any Interest Period pertaining to a Eurodollar Borrowing that commences on the last Business Day of a  calendar month (or on a day for which there is no numerically corresponding day in the last calendar month  of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period.   For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made  and thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.                “Interpolated  Rate”  means,  at  any  time,  for  any  Interest  Period,  the  rate per annum  (rounded to the same number of decimal places as the LIBO Screen Rate) determined by the Administrative  Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate  that results from interpolating on a linear basis between: (a) the LIBO Screen Rate for the longest period  (for which the LIBO Screen Rate is available for the applicable currency) that is shorter than the Impacted  Interest Period; and (b) the LIBO Screen Rate for the shortest period (for which the LIBO Screen Rate is  available for the applicable currency) that exceeds the Impacted Interest Period, in each case, at such time;  provided that if any Interpolated Rate shall be less than zero, such rate shall be deemed to be zero for the  purposes of this Agreement.                “Investment”  means,  for  any  Person:  (a)  the  acquisition  (whether  for  cash,  property,  services or securities or otherwise) of capital stock, bonds, notes, debentures, partnership or other ownership  interests  or  other  securities  of,  or  the  making  of  any  capital contribution  to,  any  other  Person  or  any  agreement to make any such acquisition, (b) the making of any deposit with, or advance, loan or other  extension of credit to, any other Person (including the purchase of property from another Person subject to  an understanding or agreement, contingent or otherwise, to resell such property to such Person), and (c) the  entering into of any Supporting Obligation of, or other contingent obligations with respect to, Indebtedness  of any other Person.                “IRS” means the United States Internal Revenue Service.                “Issuing Bank” means JPMorgan Chase Bank, N.A., AgFirst Farm Credit Bank, SunTrust  Bank and each other Lender designated by the Borrower as an “Issuing Bank” hereunder that has agreed to  such designation (and is reasonably acceptable to the Administrative Agent), each in its capacity as the  issuer of Letters of Credit hereunder, and its successors in such capacity as provided in Section 2.06(i).   Each Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates  of such Issuing Bank (so long as, in the case of any Letter of Credit, the named beneficiary of such Letter  of  Credit  has  approved  such  Affiliate),  in  which  case  the  term “Issuing  Bank”  shall  include  any  such  Affiliate with respect to Letters of Credit issued by such Affiliate.  Each reference herein to the “Issuing  Bank” in connection with a Letter of Credit or other matter shall be deemed to be a reference to the relevant  Issuing Bank with respect thereto, and, further, references  herein to “the Issuing Bank” shall be deemed to  refer to each of the Issuing Banks or the relevant Issuing Bank, as the context requires.                “LC Collateral Account” has the meaning assigned to such term in Section 2.06(j).                “LC Disbursement” means a payment made by an Issuing Bank pursuant to a Letter of  Credit.                                              13  

 

                “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all  outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements that have  not yet been reimbursed by or on behalf of the Borrower at such time.  The LC Exposure of any Revolving  Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time.                “Lenders” means the Persons listed on Schedule 2.01A and any other Person that shall have  become a Lender hereunder pursuant to Section 2.20 or pursuant to an Assignment and Assumption, other  than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.  Unless  the context otherwise requires, the term “Lenders” includes the Swingline Lender.                “Letter of Credit” means any letter of credit issued pursuant to this Agreement.                “Letter of Credit Agreement” has the meaning assigned to such term in Section 2.06(b).                “Letter of Credit Commitment” means, with respect to each Issuing Bank, the commitment  of such Issuing Bank to issue Letters of Credit hereunder.  The initial amount of each Issuing Bank’s Letter  of Credit Commitment is set forth on Schedule 2.01B, or if an Issuing Bank has entered into an Assignment  and Assumption or has otherwise assumed a Letter of Credit Commitment after the Effective Date, the  amount set forth for such Issuing Bank as its Letter of Credit Commitment in the Register maintained by  the Administrative Agent.  The Letter of Credit Commitment of an Issuing Bank may be modified from  time to time by agreement between such Issuing Bank and the Borrower, and notified to the Administrative  Agent.                “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, the  LIBO  Screen  Rate  at  approximately  11:00  a.m.,  London  time,  two (2)  Business  Days  prior  to  the  commencement of such Interest Period; provided that if the LIBO Screen Rate shall not be available at such  time for such Interest Period (an “Impacted Interest Period”) then the LIBO Rate shall be the Interpolated  Rate.                “LIBO  Screen  Rate”  means,  for  any  day  and  time,  with  respect  to  any  Eurodollar  Borrowing for any Interest Period, the London interbank offered rate as administered by ICE Benchmark  Administration (or any other Person that takes over the administration of such rate) for Dollars for a period  equal in length to such Interest Period as displayed on such day and time on pages LIBOR01 or LIBOR02  of the Reuters screen that displays such rate (or, in the event such rate does not appear on a Reuters page  or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate  page  of  such  other  information  service  that  publishes  such  rate  from  time  to  time  as  selected  by  the  Administrative Agent in its reasonable discretion); provided that if the LIBO Screen Rate as so determined  would be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.                 “Lien”  means  any  mortgage,  pledge,  hypothecation,  assignment, deposit  arrangement,  security interest, encumbrance, lien (statutory or otherwise), preference, priority, or charge of any kind  (including  any  conditional  sale  or  other  title  retention  agreement,  and  any  financing  lease  having  substantially the same effect as any of the foregoing).                “Loan  Documents”  means  this  Agreement,  any  promissory  notes  issued  pursuant  to  Section 2.10(e) of this Agreement, any Letter of Credit applications, any Letter of Credit Agreement, any  agreements between the Borrower and an Issuing Bank regarding such Issuing Bank’s Letter of Credit  Commitment  or  the  respective  rights  and  obligations  between  the  Borrower  and  such  Issuing  Bank  in  connection  with  the  issuance  of  Letters  of  Credit,  any  Subsidiary  Guaranty,  the  Fee  Letter  and  any  agreement  or  supplement  executed  by  a  Loan  Party  pursuant  to  Section  5.09.   Any  reference  in  this  Agreement or any other Loan Document to a Loan Document shall include all appendices, exhibits, or                                              14  

 

   schedules thereto, and all amendments, restatements, supplements, or other modifications thereto, and shall  refer to this Agreement or such Loan Document as the same may be in effect at any and all times such  reference becomes operative.                “Loan Parties” means, collectively, the Borrower and the Subsidiary Guarantors.                “Loans” means the loans made by the Lenders to the Borrower pursuant to this Agreement.                “Material  Adverse  Effect”  means  a  material  adverse  effect  on  (a)  the  business,  assets,  operations or financial condition of the Borrower and its Subsidiaries taken as a whole, (b) the ability of  the Borrower to perform any of its obligations under this Agreement or (c) the validity or enforceability of  any  of  the  Loan  Documents  or  the  rights  or  remedies  of  the  Administrative  Agent  and  the  Lenders  thereunder.                “Material Domestic Subsidiary” means any Domestic Subsidiary that owns unencumbered  operating assets as of the Effective Date or as of the end of the most recent fiscal year thereafter in excess  of ten percent (10%) of the Consolidated Total Tangible Assets. In making the foregoing determination,  the percentage ownership interest in a Subsidiary held by the Borrower or any of its Subsidiaries shall be  applied to the value of unencumbered operating assets held by such Subsidiary and the resulting value shall  be used to determine the percentage of the Consolidated Total Tangible Assets held by such Subsidiary.                “Materials of Environmental Concern” means any gasoline or petroleum (including crude  oil or any fraction thereof) or petroleum products or any hazardous or toxic substances, materials, or wastes,  defined or regulated as such in or under any Environmental Law, including, without limitation, asbestos,  polychlorinated biphenyls, and urea-formaldehyde insulation.                “Maturity Date” means the Revolving/TLA-1 Maturity Date or the TLA-2 Maturity Date,  as the context requires.                “Maximum Rate” has the meaning assigned to such term in Section 9.15.                “Multiemployer  Plan”  means  a  Plan  that  is  a  multiemployer  plan as  defined  in  Sections 3(37) or 4001(a)(3) of ERISA that is subject to Title IV of ERISA.                “Multiple Employer Plan” means a Plan that the Borrower, any Subsidiary of the Borrower,  or any ERISA Affiliate and at least one employer other than the Borrower, any Subsidiary of the Borrower  or any ERISA Affiliate are contributing sponsors.                “Non-Consenting Lender” has the meaning assigned to such term in Section 9.02(d).                “NYFRB” means the Federal Reserve Bank of New York.                “NYFRB Rate” means, for any day, the greater of (a) the Federal Funds Effective Rate in  effect on such day and (b) the Overnight Bank Funding Rate in effect on such day (or for any day that is  not a Business Day, for the immediately preceding Business Day); provided that if none of such rates are  published for any day that is a Business Day, the term “NYFRB Rate” means the rate for a federal funds  transaction quoted at 11:00 a.m., New York City time, on such day received by the Administrative Agent  from  a  federal  funds  broker  of  recognized  standing  selected  by it;  provided,  further,  that  if  any  of  the  aforesaid rates as so determined would be less than zero, such rate shall be deemed to be zero for purposes  of this Agreement.                                              15  

 

                “Non-U.S. Lender” means a Lender that is not a U.S. Person.                “Obligations”  means  (i)  all  unpaid principal  of  and accrued  and  unpaid  interest  on  the  Loans, (ii) all LC Exposure, (iii) all accrued and unpaid fees due pursuant to the Loan Documents, and (iv)  all expenses, reimbursements, indemnities, and other obligations, liabilities and indebtedness (including  interest and fees accruing during the pendency of any bankruptcy, insolvency, receivership, or other similar  proceeding, regardless of whether allowed or allowable in such proceeding), of any of the Borrower and its  Domestic  Subsidiaries  to  any  of  the  Lenders,  the  Administrative  Agent,  any  Issuing  Bank,  or  any  indemnified party, individually or collectively, existing on the Effective Date or arising thereafter, direct or  indirect, joint or several, absolute or contingent, matured or unmatured, liquidated or unliquidated, secured  or unsecured, arising by contract, operation of law or otherwise, arising or incurred under this Agreement  or any of the other Loan Documents or in respect of any of the Loans made or reimbursement or other  obligations incurred or any of the Letters of Credit or other instruments at any time evidencing any thereof;  provided that the definition of “Obligations” shall not create or include any guarantee by any Loan Party of  any Excluded Swap Obligations of such Loan Party for purposes of determining any obligations of any  Loan Party.                “OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control.                “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 Taxes (other  than a connection arising from such Recipient having executed, delivered, become a party to, performed its  obligations under, received payments under, received or perfected a security interest under, engaged in any  other transaction pursuant to, or enforced, any Loan Document, or sold or assigned an interest in any Loan,  Letter of Credit or Loan Document).                “Other  Taxes”  means  any  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, or from the registration, 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 under Section 2.19(b)).                “Overnight Bank Funding Rate” means, for any day, the rate comprised of both overnight  federal  funds  and  overnight  eurodollar  borrowings  by  U.S.-managed  banking  offices  of  depository  institutions, as such composite rate shall be determined by the NYFRB as set forth on its public website  from time to time, and published on the next succeeding Business Day by the NYFRB as an overnight bank  funding rate.                “Parent” means, with respect to any Lender, any Person as to which such Lender is, directly  or indirectly, a subsidiary.                “Participant” has the meaning set forth in Section 9.04.                “Participant Register” has the meaning set forth in Section 9.04(c).                “PBGC” means the Pension Benefit Guaranty Corporation established pursuant to Subtitle  A of Title IV of ERISA and any successor thereof.                “Permitted Liens” means:                (a) Liens existing on the Effective Date;                                              16  

 

                (b) Liens securing indebtedness owing by any Subsidiary to the Borrower, any other Loan  Party, or a Significant Subsidiary;                (c) Liens on assets of any Person existing at the time such Person becomes a Subsidiary;                (d) Liens on assets existing at the time of acquisition thereof; provided, that such Lien shall  not extend to any other property of the Borrower, any other Loan Party, or a Significant Subsidiary;                (e) Liens to secure indebtedness incurred or guaranteed by the Borrower or a Subsidiary to  finance the purchase price of land, buildings or equipment, or improvements to or construction of land,  buildings, or equipment, which indebtedness is incurred or guaranteed prior to, at the time of, or within 180  days after such acquisition (or in the case of real property, completion of such improvement or construction  or commencement of full operation of such property, whichever is later); provided that such Lien shall  extend only to the asset to be acquired or improved with such financing;                (f)  Liens  on  any  assets  of  a  Person  existing  at  the  time  such  Person  is  merged  into  or  consolidated with a Loan Party or a Significant Subsidiary; provided, that such Lien shall not extend to any  other property of any Loan Party or a Significant Subsidiary;                (g)  easements,  zoning  restrictions,  encroachments,  rights-of-way,  leases,  subleases  and  similar encumbrances on real property imposed by law or arising in the ordinary course of business that do  not secure any monetary obligations;                (h) statutory, common law and contractual rights of set-off and other similar rights as to  deposits of cash, securities and other financial assets in favor of banks, other depositary institutions and  brokerage institutions;                (i) Liens in favor of customs and revenue authorities arising as a matter of law to secure  payment of customs duties in connection with the importation or exportation of goods in the ordinary course  of business;                (j) Liens that are contractual rights of set-off contained in purchase orders entered into with  customers in the ordinary course of business;                (k) Liens arising on the subject property under non-exclusive licensing agreements and  leases (including sub-leases) entered into by any Loan Party or any Subsidiary as licensor or lessor but not  securing any Indebtedness and not materially interfering with the conduct of the business of the Borrower  or any Subsidiary;                (l) Liens for Taxes not delinquent or which are being contested in good faith by appropriate  proceedings and for which any reserves required by GAAP have been established;                (m)  Liens  arising  in  connection  with  Capital  Leases;  provided  that  no  such  Lien  shall  extend to or cover any assets other than the assets subject to the applicable Capital Leases;                (n) Liens on any assets in favor of the United States of America or any State thereof, or in  favor of any other country, or political subdivision thereof and created to secure (i) payments pursuant to  any contract or statute; or (ii) any indebtedness incurred or guaranteed by a Loan Party or any Significant  Subsidiary to finance the purchase price (or in the case of real property, the cost of construction) of the  assets subject to any such Lien (including, but not limited to, Liens incurred in connection with pollution  control, industrial revenue, or similar finances);                                              17  

 

                (o) Liens for property taxes and assessments or governmental charges or levies and Liens  securing  claims  or  demands  of  mechanics,  suppliers,  carriers,  landlords,  warehousemen,  materialmen,  repairmen, and other like Persons;                (p) Liens incurred or deposits made in the ordinary course of business (i) in connection  with worker’s compensation, unemployment insurance, social security, and other like laws, or (ii) to secure  the performance of letters of credit, bids, sales or trade contracts, government contracts, leases, statutory  obligations, utilities, surety, appeal and performance bonds, and other similar obligations, in each case not  incurred in connection with the borrowing of money, or the payment of the deferred purchase price of  property;                (q)  Liens  securing  attachments,  judgments,  decrees  and  other  similar  proceedings  (or  appeal or other surety bonds relating to such judgments, or decrees); provided that execution and other  enforcement of judgment or attachment are effectively stayed and all claims that the Liens secure are being  actively contested in good faith and by appropriate proceedings;                (r)  Liens  arising  from  filing  UCC  financing  statements  relating  solely  to  leases  not  prohibited by this Agreement;                (s) Liens arising in the ordinary course of the business or incidental to the conduct of such  business or the ownership of the assets of a Loan Party or any Significant Subsidiary which Liens arise out  of transactions involving the sale or purchase of goods or services and that do not, in the opinion of the  Borrower, materially impair the use of such assets in the operations of the business of the Loan Parties or  such Significant Subsidiary;                (t) Liens arising out of Sale and Lease-Back Transactions not prohibited by Section 6.03;                (u) Liens other than those described in clause (a) through (q) above provided the sum of (i)  the aggregate principal amount secured thereby at any time outstanding and (ii) the aggregate amount of  Sale  and  Lease-Back  Transactions  at  any  time  outstanding,  measured  as  provided  in  Section  6.03  and  consummated after September 30, 2018, does not exceed Fifty Million Dollars ($50,000,000);                (v) customary liens encumbering customary initial deposits and margin deposits, and other  Liens incurred in the ordinary course of business and which are within the general parameters customary  in the industry securing obligations under Swap Agreements; and                (w)  any  extension,  renewal,  or  replacement  (or  successive  extensions,  renewals,  or  replacements) in whole or in part, of any Lien referred to in the foregoing paragraphs (a) to (v), inclusive.                “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 defined in Section 3(3) of ERISA) that is  covered by ERISA and with respect to which the Borrower, any Subsidiary of the Borrower or any ERISA  Affiliate is (or, if such plan were terminated at such time, would under Section 4069 of ERISA be deemed  to be) an “employer” within the meaning of Section 3(5) of ERISA.                “Plan Asset Regulations” means 29 CFR § 2510.3-101 et seq., as modified by Section  3(42) of ERISA, as amended from time to time.                                              18  

 

                “Prime Rate” means the rate of interest last quoted by The Wall Street Journal as the “Prime  Rate” in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest  rate published by the Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as  the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as  determined  by  the  Administrative Agent)  or  any  similar  release by the Board (as determined by the  Administrative Agent). Each change in the Prime Rate shall be effective from and including the date such  change is publicly announced or quoted as being effective.                “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.                 “Pro Forma Basis” means, with respect to any event, that the Borrower is in compliance  on a pro forma basis with the applicable covenant, calculation or requirement herein recomputed as if the  event with respect to which compliance on a Pro Forma Basis is being tested had occurred on the first day  of the four fiscal quarter period most recently ended on or prior to such date for which financial statements  have been delivered pursuant to Section 5.01.                “Property” means any interest in any kind of property or asset, whether real, personal, or  mixed, or tangible or intangible.                “Recipient” means, as applicable, (a) the Administrative Agent, (b) any Lender and (c) any  Issuing Bank.                “Register” has the meaning set forth in Section 9.04.                “Regulation  T,  U,  or  X”  means  Regulation  T,  U,  or  X,  respectively,  of  the  Board  the  Federal Reserve System as from time to time in effect and any successor to all or a portion thereof.                “Related Parties” means, with respect to any specified Person, such Person’s Affiliates and  the  respective  directors,  officers,  employees,  agents  and  advisors  of  such  Person  and  such  Person’s  Affiliates.                “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other  than those events as to which the notice requirement has been waived by regulation.                “Required Lenders” means, subject to Section 2.21, at any time, Lenders having Credit  Exposures (provided, that, as to any Lender, clause (a) of the definition of “Swingline Exposure” shall only  be applicable in calculating a Lender’s Revolving Credit Exposure to the extent such Lender shall have  funded  its  respective  participations  in  the  outstanding  Swingline  Loans)  and  Unfunded  Commitments  representing more than 50% of the sum of the total Credit Exposures and Unfunded Commitments at such  time; provided that for purposes of declaring the Loans to be due and payable pursuant to Article VII, and  for  all  purposes  after  the  Loans  become  due  and  payable  pursuant  to  Article  VII  or  the  Revolving  Commitments expire or terminate, then, as to each Lender, the Unfunded Commitment of each Lender shall  be deemed to be zero.                  “Required  Revolving  Lenders”  means,  subject  to  Section  2.21,  at  any  time,  Revolving  Lenders having Revolving Credit Exposures (provided, that, as to any Lender, clause (a) of the definition  of “Swingline Exposure” shall only be applicable in calculating a Lender’s Revolving Credit Exposure to  the extent such Lender shall have funded its respective participations in the outstanding Swingline Loans)  and  Unfunded  Commitments  representing  more  than  50%  of  the  sum of  the  Total  Revolving  Credit  Exposure and Unfunded Commitments at such time.                                              19  

 

                “Requirement of Law” means, as to any Person, the certificate of incorporation and by- laws or other organizational or governing documents of such Person, and any law, treaty, rule or regulation,  or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to and  binding upon such Person or to which any of its material property is subject.                “Responsible Officer” means any of the Chief Financial Officer, the Controller, any Vice  President, and the Treasurer.                “Revolving Commitment” means, with respect to each Lender, the commitment, if any, to  make Revolving Loans and to acquire participations in Letters of Credit and Swingline Loans hereunder,  expressed as an amount representing the maximum aggregate amount of such Lender’s Revolving Credit  Exposure hereunder, as such commitment may be (a) reduced or terminated from time to time pursuant to  Section 2.09, (b) increased from time to time pursuant to Section 2.20 and (c) reduced or increased from  time to time pursuant to assignments by or to such Lender pursuant to Section 9.04.  The initial amount of  each Lender’s Revolving Commitment is set forth on Schedule 2.01A, or in the applicable documentation  pursuant to which such Lender shall have assumed its Revolving Commitment pursuant to the terms hereof,  as applicable.  The initial aggregate amount of the Revolving Lenders’ Revolving Commitments as of the  Effective Date is $430,000,000.                “Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of  the outstanding principal amount of such Lender’s Revolving Loans and its LC Exposure and Swingline  Exposure at such time.                “Revolving Credit Facility” means the revolving credit facility provided hereunder by the  Revolving Lenders pursuant to the Revolving Commitments.                “Revolving  Lender”  means,  as  of  any  date  of  determination,  each  Lender  that  has  a  Revolving  Commitment  or,  if  the  Revolving  Commitments  have  terminated  or  expired,  a  Lender  with  Revolving Credit Exposure.                “Revolving Loan” means a Loan made pursuant to Section 2.01(a).                “Revolving/TLA-1 Maturity Date” means December 20, 2023; provided, however, if such  date is not a Business Day, the Revolving/TLA-1 Maturity Date shall be the next preceding Business Day.                “Sale and Leaseback Transaction” means any sale or other transfer of any property or asset  by any Person in connection with a lease of such property or asset by such Person as lessee; provided,  however, any such sale and leaseback that occurs within 180 days of acquisition of such property or asset  (or in the case of real property, completion of such improvement or construction or commencement of full  operation of such property, whichever is later) shall not be considered to be a sale and leaseback.                “Sanctioned Country” means, at any time, a country, region or territory which is the subject  or target of any Sanctions in which such Sanctions apply to all Persons in such country or territory (for  example, Cuba) as opposed to Sanctions applicable to Persons listed in any Sanctions-related list.                “Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list  of  designated  Persons  maintained by OFAC, the U.S. Department of  State,  or  by  the  United  Nations  Security Council, the European Union, any EU member state, Her Majesty’s  Treasury  of  the  United  Kingdom  or  other  relevant  sanctions  authority,  (b)  any  Person  operating,  organized  or  resident  in  a  Sanctioned Country, (c) any Person owned or controlled by any such Person or Persons described in the  foregoing clauses (a) or (b), or (d) any Person otherwise the subject of any Sanctions.                                              20  

 

                 “Sanctions”  means  economic  or  financial  sanctions  or  trade  embargoes  imposed,  administered or enforced from time to time by (a) the U.S. government, including those administered by  OFAC or the U.S. Department of State, or (b) the United Nations Security Council, the European Union,  Her Majesty’s Treasury of the United Kingdom or other relevant sanctions authority.                 “SEC” means the United States Securities and Exchange Commission.                “Significant Subsidiary” means each corporation organized under the laws of the United  States  of  America  or  Brazil,  or  any  political  subdivision  of  either,  that  is  now  or  hereafter  becomes  a  consolidated Subsidiary and any other consolidated Subsidiary that (i) as of the end of any of the three (3)  then most recently ended fiscal years of the Borrower owns assets determined on a consolidated basis for  such Subsidiary and its Subsidiaries constituting more than 10% of the total assets of the Consolidated  Group taken as a whole determined on a consolidated basis as of the end of the same fiscal year and (ii) has  during any of the three (3) then most recently ended fiscal years of the Borrower, net income determined  on a consolidated basis for such Subsidiary and its Subsidiaries in excess of 10% of the net income of the  Consolidated Group taken as a whole determined on a consolidated basis for the same fiscal year.                “Single Employer Plan” means any Plan that is covered by Title IV of ERISA, but that is  not a Multiemployer Plan or a Multiple Employer Plan.                “Specified Swap Obligation” means, with respect to any Loan Party, any obligation to pay  or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of  Section 1a(47) of the Commodity Exchange Act or any rules or regulations promulgated thereunder.                “Statutory  Reserve  Rate”  means  a  fraction  (expressed  as  a  decimal),  the  numerator  of  which is the number one and the denominator of which is the number one  minus the aggregate of the  maximum  reserve  percentages  (including  any  marginal,  special,  emergency  or  supplemental  reserves)  expressed  as  a  decimal  established  by  the  Board  to  which  the  Administrative  Agent  is  subject  for  eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board).   Such  reserve  percentages  shall  include  those  imposed  pursuant  to  such  Regulation D  of  the  Board.   Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve  requirements without benefit of or credit for proration, exemptions or offsets that may be available from  time to time  to any Lender under such Regulation D of the Board or any comparable regulation.  The  Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any  reserve percentage.                “Subordinated Indebtedness” means any Indebtedness of the Borrower or any Subsidiary  the payment of which is subordinated to payment of the obligations under the Loan Documents.                “Subsidiary” means, as to any Person, a corporation, partnership, limited liability company,  or other entity of which shares of stock or other ownership interests having ordinary voting power to elect  a majority of the directors or other managers of such corporation, partnership, limited liability company, or  other entity (irrespective of whether or not at the time, any class or classes of such corporation shall have  or might have voting power by reason of the happening of any contingency) are at the time owned by such  Person  directly  or  indirectly  through  Subsidiaries.   Unless  otherwise  identified,  “Subsidiary”  or  “Subsidiaries” shall mean Subsidiaries of the Borrower.                “Subsidiary Guarantor” means each Material Domestic Subsidiary that is a party to the  Subsidiary Guaranty.  There are no Subsidiary Guarantors on the Effective Date.                                              21  

 

                “Subsidiary Guaranty” means that certain Guaranty in the form of Exhibit H (including  any  and  all  supplements  thereto)  and  executed  by  each  Subsidiary  Guarantor,  as  amended,  restated,  supplemented or otherwise modified from time to time.                 “Support  Obligations”  means,  with  respect  to  any  Person,  without  duplication,  any  obligations of such Person (other than indemnities and endorsements in the ordinary course of business of  negotiable instruments for deposit or collection) guaranteeing or intended to guarantee any Indebtedness of  any other Person in any manner, whether direct or indirect, and including without limitation any obligation,  whether  or  not  contingent,  (i) to  purchase  any  such  Indebtedness  or  any  Property  constituting  security  therefor, (ii) to lease or purchase Property, securities, or services primarily for the purpose of assuring the  holder of such Indebtedness, or (iii) to otherwise assure or hold harmless the holder of such Indebtedness  against  loss  in  respect  thereof.  The  amount  of  any  Support  Obligation  hereunder  shall  (subject  to  any  limitations set forth therein) be deemed to be an amount equal to the outstanding principal amount of the  Indebtedness in respect of which such Support Obligation is made.                “Swap Agreement”  means any agreement with respect to any swap, forward, future or  derivative transaction or option or similar agreement involving, or settled by reference to, one or more  interest rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or  pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any  combination of these transactions; provided that no phantom stock or similar plan providing for payments  only on account of services provided by current or former directors, officers, employees or consultants of  the Borrower or the Subsidiaries shall be a Swap Agreement.                “Swingline Exposure” means, at any time, the aggregate principal amount of all Swingline  Loans outstanding at such time.  The Swingline Exposure of any Lender at any time shall be the sum of (a)  its Applicable Percentage of the total Swingline Exposure at such time, other than with respect to any  Swingline Loans made by such Lender in its capacity as a Swingline Lender, and (b) the aggregate principal  amount of all Swingline Loans made by such Lender as a Swingline Lender outstanding at such time (less  the amount of participations funded by the other Revolving Lenders in such Swingline Loans).                “Swingline  Lender”  means  JPMorgan  Chase  Bank,  N.A.,  in  its  capacity  as  lender  of  Swingline Loans hereunder.                “Swingline Loan” means a Loan made pursuant to Section 2.05.                “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings  (including  backup  withholding),  assessments,  fees  or  other  charges  imposed  by  any  Governmental  Authority, including any interest, additions to tax or penalties applicable thereto.                “Term A-1 Lender” means, as of any date of determination, each Lender having a Term  A-1 Loan Commitment or that holds Term A-1 Loans.                “Term  A-1  Loan  Commitment”  means  (a) as  to  any  Term  A-1  Lender, the aggregate  commitment of such Term A-1 Lender to make Term A-1 Loans as set forth on Schedule 2.01A or in the  most recent Assignment Agreement or other documentation contemplated hereby executed by such Term  A-1 Lender and (b) as to all Term A-1 Lenders, the aggregate commitments of all Term A-1 Lenders to  make Term A-1 Loans, which aggregate commitments shall be $150,000,000 as of the Effective Date.  After  advancing the Term A-1 Loan, each reference to a Term A-1 Lender’s Term A-1 Loan Commitment shall  refer to that Term A-1 Lender’s Applicable Percentage of the Term A-1 Loans.                                              22  

 

                “Term A-1 Loan Facility” means the term loan facility provided hereunder by the Term A- 1 Lenders pursuant to the Term A-1 Loan Commitments.                “Term  A-1  Loans”  means  the  Term  A-1  Loan  made  pursuant  to  Section  2.01  on  the  Effective Date.                “Term A-2 Lender” means, as of any date of determination, each Lender having a Term  A-2 Loan Commitment or that holds Term A-2 Loans.                “Term  A-2  Loan  Commitment”  means  (a) as  to  any  Term  A-2  Lender, the aggregate  commitment of such Term A-2 Lender to make Term A-2 Loans as set forth on Schedule 2.01A or in the  most recent Assignment Agreement or other documentation contemplated hereby executed by such Term  A-2 Lender and (b) as to all Term A-2 Lenders, the aggregate commitments of all Term A-2 Lenders to  make Term A-2 Loans, which aggregate commitments shall be $220,000,000 as of the Effective Date.  After  advancing the Term A-2 Loan, each reference to a Term A-2 Lender’s Term A-2 Loan Commitment shall  refer to that Term A-2 Lender’s Applicable Percentage of the Term A-2 Loans.                “Term A-2 Loan Facility” means the term loan facility provided hereunder by the Term A- 2 Lenders pursuant to the Term A-2 Loan Commitments.                “Term  A-2  Loans”  means  the  Term  A-2  Loan  made  pursuant  to  Section  2.01  on  the  Effective Date.                “Term Lender” means a Term A-1 Lender or a Term A-2 Lender or both, as the context  requires.                “Term Loan Commitment” means the Term A-1 Loan Commitment or the Term A-2 Loan  Commitment or both, as the context requires.                “Term  Loans”  means  (i)  the  Term  A-1  Loan,  (ii)  the  Term  A-2  Loan  and  (ii)  the  Incremental Term Loans made pursuant to Section 2.20 on the applicable Increase Effective Date.                “TLA-2 Maturity Date” means December 20, 2025; provided, however, if such date is not  a Business Day, the TLA-2 Maturity Date shall be the next preceding Business Day.                “Total Leverage Ratio” has the meaning assigned to such term in Section 5.07(a).                “Total  Revolving  Credit  Exposure”  means,  at  any  time,  the  sum  of  the  outstanding  principal  amount  of  all  Revolving  Lenders’  Revolving  Loans,  their  LC  Exposure  and  their  Swingline  Exposure at such time; provided, that clause (a) of the definition of “Swingline Exposure” shall only be  applicable  to  the  extent  Revolving  Lenders  shall  have  funded  their  respective  participations  in  the  outstanding Swingline Loans.                “Transactions” means the execution, delivery and performance by the Loan Parties of this  Agreement and the other Loan Documents, the borrowing of Loans and other credit extensions, the use of  the proceeds thereof and the issuance of Letters of Credit hereunder.                “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of  interest  on  such  Loan,  or  on  the Loans  comprising  such  Borrowing,  is  determined  by  reference  to  the  Adjusted LIBO Rate or the Alternate Base Rate.                                              23  

 

                “U.S. Person” means a “United States person” within the meaning of Section 7701(a)(30)  of the Code.                “U.S. Tax Certificate” has the meaning assigned to such term in Section 2.17(f)(ii)(D)(2).                “Unfunded Commitment” means, with respect to each Lender, the Revolving Commitment  of  such  Lender  less  its  Revolving  Credit  Exposure;  provided,  that,  as  to  any  Lender,  clause  (a)  of  the  definition of “Swingline Exposure” shall only be applicable in calculating a Lender’s Revolving Credit  Exposure  to  the  extent  such  Lender  shall  have  funded  its  respective  participations  in  the  outstanding  Swingline Loans.                “Voting Stock” means, with respect to any Person, Capital Stock issued by such Person the  holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors  (or  persons  performing  similar functions)  of  such  Person,  even though  the  right  so  to  vote  has  been  suspended by the happening of such a contingency.                “Withholding Agent” means any Loan Party and the Administrative Agent.                “Write-Down  and  Conversion  Powers”  means,  with  respect  to  any  EEA  Resolution  Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time  under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion  powers are described in the EU Bail-In Legislation Schedule.                SECTION 1.02. Classification of Loans and Borrowings.  For purposes of this Agreement,  Loans may be classified and referred to by Class (e.g., a “Revolving Loan”) or by Type (e.g., a “Eurodollar  Loan”) or by Class and Type (e.g., a “Eurodollar Revolving Loan”).  Borrowings also may be classified  and referred to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar Borrowing”) or  by Class and Type (e.g., a “Eurodollar Revolving Borrowing”).                SECTION 1.03. Terms Generally.  The definitions of terms herein shall apply equally to  the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall  include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and  “including” shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be  construed to have the same meaning and effect as the word “shall”.  The word “law” shall be construed as  referring  to  all  statutes,  rules,  regulations,  codes  and  other laws  (including  official  rulings  and  interpretations thereunder having the force of law or with which affected Persons customarily comply), and  all judgments, orders and decrees, of all Governmental Authorities.  Unless the context requires otherwise  (a) any definition of or reference to any agreement, instrument or other document herein shall be construed  as  referring  to  such  agreement,  instrument  or  other  document  as  from  time  to  time  amended,  restated,  supplemented  or  otherwise  modified  (subject  to  any  restrictions  on  such  amendments,  restatements,  supplements or modifications set forth herein), (b) any definition of or reference to any statute, rule or  regulation shall be construed as referring thereto as from time to time amended, supplemented or otherwise  modified (including by succession of comparable successor laws), (c) any reference herein to any Person  shall be construed to include such Person’s successors and assigns (subject to any restrictions on assignment  set forth herein) and, in the case of any Governmental Authority, any other Governmental Authority that  shall have succeeded to any or all functions thereof, (d) the words “herein”, “hereof” and “hereunder”, and  words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular  provision hereof, (e) all references herein to Articles, Sections, Exhibits and Schedules shall be construed  to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (f) 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 and (g) any                                             24  

 

   reference herein to a merger, transfer, consolidation, amalgamation, assignment, sale, or disposition, 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, assignment, sale or disposition, or similar term, as  applicable, to, of or with a separate Person, and 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).                SECTION 1.04. Accounting  Terms;  GAAP.   Except  as  otherwise  expressly  provided  herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in  effect from time to time; provided that, if the Borrower notifies the Administrative Agent that the Borrower  requests an amendment to any provision hereof to eliminate the effect of any change occurring after the  date  hereof  in  GAAP  or  in  the  application  thereof  on  the  operation  of  such  provision  (or  if  the  Administrative  Agent  notifies  the  Borrower  that  the  Required  Lenders  request  an  amendment  to  any  provision hereof for such purpose), regardless of whether any such notice is given before or after such  change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP  as in effect and applied immediately before such change shall have become effective until such notice shall  have been withdrawn or such provision  amended in accordance herewith.  Notwithstanding any other  provision contained herein, all terms of an accounting or financial nature used herein shall be construed,  and all computations of amounts and ratios referred to herein shall be made (i) without giving effect to any  election  under  Accounting  Standards  Codification  825-10-25  (or any  other  Accounting  Standards  Codification or Financial Accounting Standard having a similar result or effect) to value any Indebtedness  or other liabilities of the Borrower or any Subsidiary at “fair value”, as defined therein and (ii) without  giving effect to any treatment of Indebtedness in respect of convertible debt instruments under Accounting  Standards Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting  Standard having a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner  as described therein, and such Indebtedness shall at all times be valued at the full stated principal amount  thereof.   Notwithstanding  the  foregoing,  all  liabilities  under or  in  respect  of  any  lease  (whether  now  outstanding or at any time entered into or incurred) that, under GAAP as in effect on the Effective Date,  would  be  accrued  as  rental  and  lease  expense  and  would  not  constitute  a  capital  lease  obligation  in  accordance with GAAP as in effect on the Effective Date shall continue to not constitute a capital lease  obligation, in each case, for purposes of the covenants set forth herein and all defined terms as used therein.                SECTION 1.05. Interest Rates; LIBOR Notification.  The interest rate on Eurodollar Loans  is determined by reference to the LIBO Rate, which is derived from the London interbank offered rate.  The  London interbank offered rate is intended to represent the rate at which contributing banks may obtain  short-term borrowings from each other in the London interbank market.  In July 2017, the U.K. Financial  Conduct  Authority  announced  that,  after  the  end  of  2021,  it  would  no  longer  persuade  or  compel  contributing banks to make rate submissions to the ICE Benchmark Administration (together with any  successor to the ICE Benchmark Administration, the “IBA”) for purposes of the IBA setting the London  interbank offered rate.  As a result, it is possible that commencing in 2022, the London interbank offered  rate may no longer be available or may no longer be deemed an appropriate reference rate upon which to  determine  the  interest  rate  on  Eurodollar  Loans.   In  light  of  this  eventuality,  public  and  private  sector  industry initiatives are currently underway to identify new or alternative reference rates to be used in place  of the London interbank offered rate.  In the event that the London interbank offered rate is no longer  available or in certain other circumstances as set forth in Section 2.14(b) of this Agreement, such Section  2.14(b) provides a mechanism for determining an alternative rate of interest.  The Administrative Agent  will notify the Borrower, pursuant to Section 2.14, in advance of any change to the reference rate upon  which the interest rate on Eurodollar Loans is based.  However, the Administrative Agent does not warrant  or  accept  any  responsibility  for,  and  shall  not  have  any  liability  with  respect  to,  the  administration,  submission or any other matter related to the London interbank offered rate or other rates in the definition                                             25  

 

   of “LIBO Rate” or with respect to any alternative or successor rate thereto, or replacement rate thereof,  including without limitation, whether the composition or characteristics of any such alternative, successor  or replacement reference rate, as it may or may not be adjusted pursuant to Section 2.14(b), will be similar  to, or produce the same value or economic equivalence of, the LIBO Rate or have the same volume or  liquidity as did the London interbank offered rate prior to its discontinuance or unavailability.                SECTION 1.06.  Status of Obligations.  In the event that the Borrower or any other Loan  Party shall at any time issue or have outstanding any Subordinated Indebtedness, the Borrower shall take  or cause such other Loan Party to take all such actions as shall be necessary to cause the Obligations to  constitute senior indebtedness (however denominated) in respect of such Subordinated Indebtedness and to  enable the Administrative Agent and the Lenders to have and exercise any payment blockage or other  remedies  available  or  potentially  available  to  holders  of  senior  indebtedness  under  the  terms  of  such  Subordinated  Indebtedness.   Without  limiting  the  foregoing,  the  Obligations  are  hereby  designated  as  “senior indebtedness” and as “designated senior indebtedness” and words of similar import under and in  respect of any indenture or other agreement or instrument under which such Subordinated Indebtedness is  outstanding and are further given all such other designations as shall be required under the terms of any  such Subordinated Indebtedness in order that the Lenders may have and exercise any payment blockage or  other remedies available or potentially available to holders of senior indebtedness under the terms of such  Subordinated Indebtedness.                                         ARTICLE II                                                                                     The Credits                SECTION 2.01. Commitments.   Subject  to  the  terms  and  conditions  set  forth  herein,  (a) each Revolving Lender (severally and not jointly) agrees to make Revolving Loans to the Borrower in  Dollars from time to time during the Availability Period in an aggregate principal amount that will not  result  (after  giving  effect  to  any  application  of  proceeds  of  such  Borrowing  to  any  Swingline  Loans  outstanding pursuant to Section 2.10(a)) in (i) the amount of such Lender’s Revolving Credit Exposure  exceeding such Lender’s Revolving Commitment or (ii) the Total Revolving Credit Exposure exceeding  the aggregate Revolving Commitments, (b) each Term A-1 Lender with a Term A-1 Loan Commitment  (severally and not jointly) agrees to make a Term A-1 Loan to the Borrower in Dollars on the Effective  Date, in an amount equal to such Lender’s Term A-1 Loan Commitment by making immediately available  funds available to the Administrative Agent’s designated account, not later than the time specified by the  Administrative Agent and (c) each Term A-2 Lender with a Term A-2 Loan Commitment (severally and  not jointly) agrees to make a Term A-2 Loan to the Borrower in Dollars on the Effective Date, in an amount  equal to such Lender’s Term A-2 Loan Commitment by making immediately available funds available to  the  Administrative  Agent’s  designated account,  not later  than  the  time  specified  by  the  Administrative  Agent.  Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower  may borrow, prepay and reborrow Revolving Loans.  Amounts repaid or prepaid in respect of Term Loans  may not be reborrowed.                SECTION 2.02. Loans and Borrowings.  (a)  Each Loan (other than a Swingline Loan)  shall be made as part of a Borrowing consisting of Loans of the same Class and Type made by the applicable  Lenders ratably in accordance with their respective Commitments of the applicable Class.  The failure of  any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations  hereunder; provided that the Commitments of the Lenders are several and no Lender shall be responsible  for any other Lender’s failure to make Loans as required.  Any Swingline Loan shall be made in accordance  with the procedures set forth in Section 2.05.  The Term Loans shall be repaid as set forth in Section 2.10.                                              26  

 

                (b)    Subject to Section 2.14, each Revolving Borrowing, Term A-1 Loan Borrowing        and Term A-2 Loan Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as        the  Borrower  may  request  in  accordance  herewith;  provided  that all  Borrowings  made  on  the        Effective  Date  must  be  made  as  ABR  Borrowings  (unless  the  Borrower  executes  a  funding        indemnity letter in form and substance reasonably satisfactory to the Administrative Agent) but        may be converted into Eurodollar Borrowings in accordance with Section 2.08.  Each Swingline         Loan  shall  be  an  ABR  Loan.   Each  Lender  at  its  option  may  make any  Loan  by  causing  any         domestic or foreign branch or Affiliate of such Lender to make such Loan (and in the case of an         Affiliate, the provisions of Sections 2.14, 2.15, 2.16 and 2.17 shall apply to such Affiliate to the        same  extent  as  to  such  Lender);  provided  that  any  exercise  of  such  option  shall  not  affect  the        obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement.                (c)    At  the  commencement  of  each  Interest  Period  for  any  Eurodollar Revolving        Borrowing,  such  Borrowing  shall  be  in  an  aggregate  amount  that is  an  integral  multiple  of        $1,000,000 and not less than $5,000,000.  At the time that each ABR Revolving Borrowing is made,        such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not         less than $1,000,000; provided that an ABR Revolving Borrowing may be in an aggregate amount        that  is  equal  to  the  entire  unused  balance  of  the  aggregate  Revolving  Commitments  or  that  is        required to finance the reimbursement of an LC Disbursement as contemplated by Section 2.06(e).         Each Swingline Loan shall be in an amount that is an integral multiple of $100,000 and not less        than $200,000.  Borrowings of more than one Type and Class may be outstanding at the same time;        provided  that  there  shall  not  at  any  time  be  more  than  a  total of  (x)  twenty  (20)  Eurodollar        Revolving  Borrowings  outstanding  and  (y)  eight  (8)  Eurodollar  Term  Loan  Borrowings        outstanding.                (d)    Notwithstanding any other provision of this Agreement, the Borrower shall not be         entitled to request, or to elect to convert or continue, any Borrowing of any Class if the Interest         Period requested with respect thereto would end after the applicable Maturity Date.                SECTION 2.03. Requests for Borrowings.  To request a Borrowing, the Borrower shall  notify the Administrative Agent of such request by irrevocable written notice (via a written Borrowing  Request  signed  by  the  Borrower,  promptly  followed  by  telephonic  or  electronic  confirmation  of  such  request) (a) in the case of a Eurodollar Borrowing, not later than 1:00 p.m., New York City time, three (3)  Business Days before the date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not later  than 12:00 p.m., New York City time, on the date of the proposed Borrowing; provided that any such notice  of an ABR Revolving Borrowing to finance the reimbursement of an LC Disbursement as contemplated by  Section 2.06(e) may be given not later than 10:00 a.m., New York City time, on the date of the proposed  Borrowing.  Each Borrowing Request shall be substantially in the form attached as Exhibit C hereto and  shall specify the following information in compliance with Section 2.02:                       (i)   the aggregate principal amount of the requested Borrowing;                       (ii)  the date of such Borrowing, which shall be a Business Day;                       (iii) whether  such  Borrowing  is  to  be  an  ABR  Borrowing  or  a  Eurodollar               Borrowing                       (iv)  the Class of such Borrowing;                                              27  

 

                       (v)   in  the  case  of  a  Eurodollar  Borrowing,  the  initial  Interest  Period  to  be               applicable  thereto,  which  shall  be  a  period  contemplated  by  the  definition  of  the  term               “Interest Period”; and                       (vi)  the location and number of the Borrower’s account to which funds are to               be disbursed, which shall comply with the requirements of Section 2.07.   If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an ABR  Borrowing.  If no Interest Period is specified with respect to any requested Eurodollar Borrowing, then the  Borrower shall be deemed to have selected an Interest Period of one month’s duration.  Promptly following  receipt of a Borrowing Request in accordance with this Section, the Administrative Agent shall advise each  Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of the requested  Borrowing.                SECTION 2.04. Intentionally Omitted.                SECTION 2.05. Swingline Loans.  (a)  Subject to the terms and conditions set forth herein,  the Swingline Lender may in its sole discretion make Swingline Loans in Dollars to the Borrower from  time to time during the Availability Period, in an aggregate principal amount at any time outstanding that  will not result in (i) the aggregate principal amount of outstanding Swingline Loans exceeding $20,000,000,  (ii)  the  Total  Revolving  Credit  Exposure  exceeding  the  aggregate  Revolving  Commitments  or  (iii)  the  Revolving Credit Exposure of any Revolving Lender exceeding such Lender’s Revolving Commitment;  provided  that  the  Swingline  Lender  shall  not  be  required  to  make  a  Swingline  Loan  to  refinance  an  outstanding Swingline Loan.  Within the foregoing limits and subject to the terms and conditions set forth  herein, the Borrower may borrow, prepay and reborrow Swingline Loans.                (b)    To request a Swingline Loan, the Borrower shall notify the Administrative Agent         of such request by irrevocable written notice (via a written Borrowing Request in a form approved         by the Administrative Agent and signed by the Borrower), not later than 2:00 p.m., New York City         time, on the day of a proposed Swingline Loan.  Each such notice shall be irrevocable and shall         specify the requested date (which shall be a Business Day) and amount of the requested Swingline        Loan.  The Administrative Agent will promptly advise the Swingline Lender of any such notice        received from the Borrower.  The Swingline Lender shall make each Swingline Loan available to        the Borrower by means of a credit to a general deposit account as designated by the Borrower from        time to time in the applicable Account Designation Letter (or, in the case of a Swingline Loan made        to finance the reimbursement of an LC Disbursement as provided in Section 2.06(e), by remittance        to the applicable Issuing Bank) by 4:00 p.m., New York City time, on the requested date of such        Swingline Loan.                (c)    The Swingline Lender may by written notice given to the Administrative Agent        require the Revolving Lenders to acquire participations in all or a portion of the Swingline Loans        outstanding.   Such  notice  shall  specify  the  aggregate  amount  of  Swingline  Loans  in  which        Revolving  Lenders  will  participate.   Promptly  upon  receipt  of  such  notice,  the  Administrative        Agent will give notice thereof to each Revolving Lender, specifying in such notice such Lender’s        Applicable  Percentage  of  such  Swingline  Loan  or  Loans.   Each  Revolving  Lender  hereby        absolutely  and  unconditionally  agrees,  promptly  upon  receipt  of  such  notice  from  the        Administrative Agent (and in any event, if such notice is received by 12:00 noon, New York City        time, on a Business Day, no later than 5:00 p.m., New York City time, on such Business Day and        if received after 12:00 noon, New York City time, on a Business Day, no later than 10:00 a.m.,        New York City time, on the immediately succeeding Business Day), to pay to the Administrative        Agent, for the account of the Swingline Lender, such Revolving Lender’s Applicable Percentage                                             28  

 

         of  such  Swingline  Loan  or  Loans.   Each  Revolving  Lender  acknowledges  and  agrees  that  its        obligation to acquire participations in Swingline Loans pursuant to this paragraph is absolute and        unconditional and shall not be affected by any circumstance whatsoever, including the occurrence        and continuance of a Default or reduction or termination of the Commitments, and that each such        payment shall be made without any offset, abatement, withholding or reduction whatsoever.  Each        Revolving  Lender  shall  comply  with  its  obligation  under  this  paragraph  by  wire  transfer  of        immediately available funds, in the same manner as provided in Section 2.07 with respect to Loans        made by such Lender (and Section 2.07 shall apply, mutatis mutandis, to the payment obligations        of the Lenders), and the Administrative Agent shall promptly pay to the Swingline Lender the        amounts so received by it from the Revolving Lenders.  The Administrative Agent shall notify the        Borrower of any participations in any Swingline Loan acquired pursuant to this paragraph, and        thereafter payments in respect of such Swingline Loan shall be made to the Administrative Agent        and  not  to  the  Swingline  Lender.   Any  amounts  received  by  the  Swingline  Lender  from  the        Borrower (or other party on behalf of the Borrower) in respect of a Swingline Loan after receipt by        the Swingline Lender of the proceeds of a sale of participations therein shall be promptly remitted        to  the  Administrative  Agent;  any such  amounts  received  by  the  Administrative  Agent  shall  be        promptly remitted by the Administrative Agent to the Revolving Lenders that shall have made their         payments pursuant to this paragraph and to the Swingline Lender, as their interests may appear;         provided  that  any  such  payment  so  remitted  shall  be  repaid  to  the  Swingline  Lender  or  to  the        Administrative Agent, as applicable, if and to the extent such payment is required to be refunded        to the Borrower for any reason.  The purchase of participations in a Swingline Loan pursuant to        this paragraph shall not relieve the Borrower of any default in the payment thereof.                (d)    The Swingline Lender may be replaced at any time by written agreement among        the  Borrower,  the  Administrative  Agent,  the  replaced  Swingline Lender  and  the  successor        Swingline  Lender.   The  Administrative  Agent  shall  notify  the  Revolving  Lenders  of  any  such        replacement of the Swingline Lender.  At the time any such replacement shall become effective,        the Borrower shall pay all unpaid interest accrued for the account of the replaced Swingline Lender        pursuant to Section 2.13(a).  From and after the effective date of any such replacement, (i) the        successor Swingline Lender shall have all the rights and obligations of the replaced Swingline        Lender under this Agreement with respect to Swingline Loans made thereafter and (ii) references        herein to the term “Swingline Lender” shall be deemed to refer to such successor or to any previous        Swingline Lender, or to such successor and all previous Swingline Lenders, as the context shall        require.  After the replacement of a Swingline Lender hereunder, the replaced Swingline Lender        shall remain a party hereto and shall continue to have all the rights and obligations of a Swingline        Lender under this Agreement with respect to Swingline Loans made by it prior to its replacement,         but shall not be required to make additional Swingline Loans.                (e)    Subject to the appointment and acceptance of a successor Swingline Lender, the         Swingline Lender may resign as a Swingline Lender at any time upon thirty (30) days’ prior written         notice to the Administrative Agent, the Borrower and the Revolving Lenders, in which case, such         Swingline Lender shall be replaced in accordance with Section 2.05(d) above.                SECTION 2.06. Letters of Credit.  (a)  General.  Subject to the terms and conditions set  forth herein, the Borrower may request the issuance of Letters of Credit denominated in Dollars for its own  account, in a form reasonably acceptable to the Administrative Agent and the applicable Issuing Bank, at  any time and from time to time during the Availability Period.  In the event of any inconsistency between  the terms and conditions of this Agreement and the terms and conditions of any Letter of Credit Agreement,  the terms and conditions of this Agreement shall control.  Notwithstanding anything herein to the contrary,  no Issuing Bank shall have any obligation hereunder to issue, and shall not issue, any Letter of Credit the  proceeds of which would be made available to any Person (i) to fund any activity or business of or with any                                             29  

 

   Sanctioned Person, or in any Sanctioned Country, (ii) in any manner that would result in a violation of any  Sanctions by any party to this Agreement or (iii) in any manner that would result in a violation of one or  more policies of such Issuing Bank applicable to letters of credit generally.                (b)    Notice  of  Issuance,  Amendment,  Renewal,  Extension;  Certain  Conditions.   To        request the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding         Letter of Credit other than an Auto Renewal Letter of Credit), the Borrower shall hand deliver or         telecopy  (or  transmit  by  electronic  communication,  if  arrangements  for  doing  so  have  been         approved by the applicable Issuing Bank) to the applicable Issuing Bank and the Administrative         Agent (reasonably in advance of the requested date of issuance, amendment, renewal or extension)         a  notice  requesting  the  issuance  of  a  Letter  of  Credit,  or  identifying  the  Letter  of  Credit  to  be         amended,  renewed  or  extended,  and  specifying  the  date  of  issuance,  amendment,  renewal  or         extension (which shall be a Business Day), the date on which such Letter of Credit is to expire         (which shall comply with paragraph (c) of this Section), the amount of such Letter of Credit, the         name and address of the beneficiary thereof and such other information as shall be necessary to         prepare, amend, renew or extend such Letter of Credit.  In addition, as a condition to any such         Letter of Credit issuance, the Borrower shall have entered into a continuing agreement (or other         letter of credit agreement) for the issuance of letters of credit and/or shall submit a letter of credit         application, in each case, as required by the relevant Issuing Bank and using such Issuing Bank’s         standard form (each, a “Letter of Credit Agreement”).  A Letter of Credit shall be issued, amended,        renewed or extended only if (and upon issuance, amendment, renewal or extension of each Letter        of Credit the Borrower shall be deemed to represent and warrant that), after giving effect to such        issuance, amendment, renewal or extension (i) the amount of the LC Exposure shall not exceed        $25,000,000, (ii) the sum of (x) the aggregate undrawn amount of all outstanding Letters of Credit        issued by any Issuing Bank at such time plus (y) the aggregate amount of all LC Disbursements        made by such Issuing Bank that have not yet been reimbursed by or on behalf of the Borrower at        such time shall not exceed such Issuing Bank’s Letter of Credit Commitment, (iii) the sum of the        Total Revolving Credit Exposure shall not exceed the aggregate Revolving Commitments and (iv)        the Revolving Credit Exposure of any Revolving Lender shall not exceed such Lender’s Revolving        Commitment.  The Borrower may, at any time and from time to time, reduce the Letter of Credit        Commitment  of  any  Issuing  Bank  with  the  consent  of  such  Issuing  Bank;  provided  that  the        Borrower shall not reduce the Letter of Credit Commitment of any Issuing Bank if, after giving        effect  of  such  reduction,  the  conditions  set  forth  in  clauses  (i)  through  (iv)  above  shall  not  be        satisfied.                (c)    Expiration Date.  Each Letter of Credit shall expire (or, if so provided in such        Letter  of  Credit,  be  subject  to  termination  by  notice  from  the applicable  Issuing  Bank  to  the        beneficiary thereof) at or prior to the close of business on the earlier of (i) the date one year after        the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof,        one year after such renewal or extension) and (ii) the date that is five (5) Business Days prior to the        Revolving/TLA-1 Maturity Date, provided that any Letter of Credit with a one-year tenor may,        subject to the terms and conditions of such Letter of Credit, provide for the automatic renewal        thereof for additional one-year periods (which shall in no event extend beyond the date referred to        in the foregoing clause (ii), each such Letter of Credit with such automatic renewal provisions being        referred to herein as an “Auto Renewal Letter of Credit”).                (d)    Participations.  By the issuance of a Letter of Credit (or an amendment to a Letter        of Credit increasing the amount thereof) and without any further action on the part of the applicable        Issuing  Bank  or  the  Revolving  Lenders,  the  applicable  Issuing  Bank  hereby  grants  to  each        Revolving  Lender,  and  each  Revolving  Lender  hereby  acquires  from  such  Issuing  Bank,  a        participation in such Letter of Credit equal to such Lender’s Applicable Percentage of the aggregate                                             30  

 

                 amount available to be drawn under such Letter of Credit.  In consideration and in furtherance of  the foregoing, each Revolving Lender hereby absolutely and unconditionally agrees to pay to the  Administrative Agent, for the account of the applicable Issuing Bank, such Lender’s Applicable  Percentage  of  each  LC  Disbursement  made  by  such  Issuing  Bank  and  not  reimbursed  by  the  Borrower on the date due as provided in paragraph (e) of this Section, or of any reimbursement  payment  required  to  be  refunded to  the  Borrower  for  any  reason.   Each  Revolving  Lender  acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in  respect  of  Letters  of  Credit  is  absolute  and  unconditional  and shall  not  be  affected  by  any  circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit  or the occurrence and continuance of a Default or reduction or termination of the Commitments,  and that each such payment shall be made without any offset, abatement, withholding or reduction  whatsoever.          (e)    Reimbursement.  If any Issuing Bank shall make any LC Disbursement in respect  of a Letter of Credit, the Borrower shall reimburse such LC Disbursement  by  paying  to  the  Administrative Agent in Dollars the amount equal to such LC Disbursement, calculated as of the  date such Issuing Bank made such LC Disbursement, not later than 1:00 p.m., New York City time,  on the date that such LC Disbursement is made, if the Borrower shall have received notice of such  LC Disbursement prior to 10:00 a.m., New York City time, on the date of such disbursement, or,  if such notice has not been received by the Borrower prior to such time on such date, then not later  than 1:00 p.m., New York City time, on the Business Day immediately following the day that the   Borrower receives such notice; provided that, if such LC Disbursement is not less than $1,000,000,  the Borrower may, subject to the conditions to borrowing set forth herein, request in accordance  with Section 2.03 or 2.05 that such payment be financed with an ABR Revolving Borrowing or  Swingline Loan in an equivalent amount of such LC Disbursement and, to the extent so financed,  the Borrower’s obligation to make such payment shall be discharged and replaced by the resulting  ABR Revolving Borrowing or Swingline Loan.  If the Borrower fails to make such payment when  due,  the  Administrative  Agent  shall  notify  each  Revolving  Lender  of  the  applicable  LC  Disbursement,  the  payment  then  due  from  the  Borrower  in  respect  thereof  and  such  Lender’s  Applicable Percentage thereof.  Promptly following receipt of such notice, each Revolving Lender  shall pay to the Administrative Agent its Applicable Percentage of the payment then due from the  Borrower, in the same manner as provided in Section 2.07 with respect to Loans made by such  Lender  (and  Section  2.07  shall  apply,  mutatis  mutandis,  to  the payment  obligations  of  the  Revolving Lenders), and the Administrative Agent shall promptly pay to the applicable Issuing  Bank the amounts so received by it from the Revolving Lenders.  Promptly following receipt by  the  Administrative  Agent  of  any  payment  from  the  Borrower  pursuant  to  this  paragraph,  the  Administrative Agent shall distribute such payment to the applicable Issuing Bank or, to the extent  that Revolving Lenders have made payments pursuant to this paragraph to reimburse such Issuing  Bank, then to such Lenders and such Issuing Bank as their interests may appear.  Any payment  made by a Revolving Lender pursuant to this paragraph to reimburse any Issuing Bank for any LC  Disbursement  (other  than  the  funding  of  ABR  Revolving  Loans  or a  Swingline  Loan  as  contemplated above) shall not constitute a Loan and shall not relieve the Borrower of its obligation  to reimburse such LC Disbursement.          (f)    Obligations Absolute.  The Borrower’s obligation to reimburse LC Disbursements  as provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and  shall  be  performed  strictly  in  accordance  with  the  terms  of  this  Agreement  under  any  and  all  circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter  of Credit, any Letter of Credit Agreement or this Agreement, or any term or provision therein or  herein, (ii) any draft or other document presented under a Letter of Credit proving to be forged,  fraudulent or  invalid  in  any  respect  or  any  statement  therein  being untrue  or inaccurate  in  any                                       31  

 

                 respect, (iii) any payment by any Issuing Bank under a Letter of Credit against presentation of a  draft or other document that does not comply with the terms of such Letter of Credit, or (iv) any  other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might,  but for the provisions of this Section, constitute a legal or equitable discharge of, or provide a right  of setoff against, the Borrower’s obligations hereunder.  Neither the Administrative Agent, the   Revolving Lenders nor any Issuing Bank, nor any of their respective Related Parties, shall have   any liability or responsibility by reason of or in connection with the issuance or transfer of any   Letter of Credit or any payment or failure to make any payment thereunder (irrespective of any of   the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss   or delay in transmission or delivery of any draft, notice or other communication under or relating   to any Letter of Credit (including any document required to make a drawing thereunder), any error   in interpretation of technical terms or any consequence arising from causes beyond the control of   any Issuing Bank; provided that the foregoing shall not be construed to excuse an Issuing Bank  from liability to the Borrower to the extent of any direct damages (as opposed to special, indirect,  consequential or punitive damages, claims in respect of which are hereby waived by the Borrower   to the extent permitted by applicable law) suffered by the Borrower that are caused by such Issuing   Bank’s failure to exercise care when determining whether drafts and other documents presented   under a Letter of Credit comply with the terms thereof.  The parties hereto expressly agree that, in   the absence of gross negligence or willful misconduct on the part of any Issuing Bank (as finally   determined  by  a  court  of  competent  jurisdiction),  such  Issuing Bank  shall  be  deemed  to  have   exercised care in each such determination.  In furtherance of the foregoing and without limiting the   generality thereof, the parties agree that, with respect to documents presented which appear on their   face to be in substantial compliance with the terms of a Letter of Credit, any Issuing Bank may, in   its sole discretion, either accept and make payment upon such documents without responsibility for   further investigation, regardless of any notice or information to the contrary, or refuse to accept and   make payment upon such documents if such documents are not in strict compliance with the terms   of such Letter of Credit.          (g)    Disbursement Procedures.  Each Issuing Bank shall, promptly following its receipt  thereof, examine all documents purporting to represent a demand for payment under a Letter of  Credit.  Each Issuing Bank shall promptly notify the Administrative Agent and the Borrower by  telephone (confirmed by telecopy) of such demand for payment and whether such Issuing Bank has  made or will make an LC Disbursement thereunder; provided that any failure to give or delay in  giving  such  notice  shall  not  relieve  the  Borrower  of  its  obligation  to  reimburse  the  applicable  Issuing Bank and the Revolving Lenders with respect to any such LC Disbursement.          (h)    Interim  Interest.   If  any  Issuing  Bank  shall  make  any  LC  Disbursement,  then,  unless  the  Borrower  shall  reimburse  such  LC  Disbursement  in  full  on  the  date  such  LC  Disbursement  is  made,  the  unpaid  amount  thereof  shall  bear  interest,  for  each  day  from  and  including the date such LC Disbursement is  made to but excluding the date that the Borrower  reimburses such LC Disbursement, at the rate per annum then applicable to ABR Revolving Loans  and  such  interest  shall  be  due  and  payable  on  the  date  when  such  reimbursement  is  payable;  provided  that,  if  the  Borrower  fails  to  reimburse  such  LC  Disbursement  when  due pursuant  to  paragraph (e) of this Section, then Section 2.13(c) shall apply.  Interest accrued pursuant to this  paragraph shall be for the account of the applicable Issuing Bank, except that interest accrued on  and after the date of payment by any Revolving Lender pursuant to paragraph (e) of this Section to  reimburse the applicable Issuing Bank shall be for the account of such Lender to the extent of such  payment.          (i)    Replacement and Resignation of an Issuing Bank.  (A)  Any Issuing Bank may be  replaced at any time by written agreement among the Borrower, the Administrative Agent, the                                       32  

 

         replaced Issuing Bank and the successor Issuing Bank.  The Administrative Agent shall notify the        Revolving Lenders of any such replacement of an Issuing Bank.  At the time any such replacement        shall  become  effective,  the  Borrower  shall  pay  all  unpaid  fees accrued  for  the  account  of  the        replaced Issuing Bank pursuant to Section 2.12(b).  From and after the effective date of any such        replacement, (i) the successor Issuing Bank shall have all the rights and obligations of the replaced        Issuing Bank under this Agreement with respect to Letters of Credit to be issued by it thereafter        and (ii) references herein to the term “Issuing Bank” shall be deemed to refer to such successor or        to any previous Issuing Bank, or to such successor and all previous Issuing Banks, as the context        shall require.  After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall        remain a party hereto and shall continue to have all the rights and obligations of an Issuing Bank        under this Agreement with respect to Letters of Credit then outstanding and issued by it prior to        such replacement, but shall not be required to issue additional Letters of Credit.                       (B) Subject to the appointment and acceptance of a successor Issuing Bank, the  Issuing Bank may resign as the Issuing Bank at any time upon thirty days’ prior written notice to the  Administrative Agent, the Borrower and the Revolving Lenders, in which case, the resigning Issuing  Bank shall be replaced in accordance with Section 2.06(i)(A) above.                 (j)    Cash Collateralization.  If any Event of Default shall occur and be continuing, on        the Business Day that the Borrower receives notice from the Administrative Agent or the Required        Lenders  (or,  if  the  maturity  of  the  Loans  has  been  accelerated,  Revolving  Lenders  with  LC        Exposure representing greater than 50% of the total LC Exposure) demanding the deposit of cash        collateral  pursuant  to  this  paragraph,  the  Borrower  shall  deposit  in  an  account  with  the        Administrative Agent, in the name of the Administrative Agent and for the benefit of the Revolving        Lenders (the “LC Collateral Account”), an amount in cash equal to 103% of the amount of the LC        Exposure as of such date plus any accrued and unpaid interest thereon; provided that the obligation        to deposit such cash collateral shall become effective immediately, and such deposit shall become        immediately due and payable, without demand or other notice of any kind, upon the occurrence of        any Event of Default with respect to the Borrower described in clause (d) of Article VII.  Such        deposit shall be held by the Administrative Agent as collateral for the payment and performance of        the Obligations.  The Administrative Agent shall have exclusive dominion and control, including        the exclusive right of withdrawal, over such account; provided, however, that it may not invest the        funds in such account without the prior approval of the Borrower.  Other than any interest earned        on  the  investment  of  such  deposits,  which  investments  shall  be made  at  the  option  and  sole        discretion of the Administrative Agent and at the Borrower’s risk and expense, such deposits shall        not bear interest.  Interest or profits, if any, on such investments shall accumulate in such account.         Moneys in such account shall be applied by the Administrative Agent to reimburse the applicable        Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the extent not so        applied, shall be held for the satisfaction of the reimbursement obligations of the Borrower for the        LC Exposure at such time or, if the maturity of the Loans has been accelerated (but subject to the        consent of Revolving Lenders with LC Exposure  representing greater than 50% of the total LC        Exposure), be applied to satisfy other Obligations.  If the Borrower is required to provide an amount        of cash collateral hereunder as a result of the occurrence of an Event of Default, such amount (to        the extent not applied as aforesaid) shall be returned to the Borrower within three (3) Business Days        after all Events of Default have been cured or waived.                (k)    LC Exposure Determination.  For all purposes of this Agreement, the amount of a        Letter of Credit that, by its terms or the terms of any document related thereto, provides for one or        more automatic increases in the stated amount thereof shall be deemed to be the maximum stated        amount  of  such  Letter  of  Credit  after  giving  effect  to  all  such  increases,  whether  or  not  such        maximum stated amount is in effect at the time of determination.                                             33  

 

                (l)    Letters of Credit Issued for Account of Subsidiaries.  Notwithstanding that a Letter        of Credit issued or outstanding hereunder supports any obligations of, or is for the account of, a        Subsidiary, or states that a Subsidiary is the “account party,” “applicant,” “customer,” “instructing        party,” or the like of or for such Letter of Credit, and without derogating from any rights of the        Issuing Bank (whether arising by contract, at law, in equity or otherwise) against such Subsidiary        in respect of such Letter of Credit, the Borrower (i) shall reimburse, indemnify and compensate the        Issuing Bank hereunder for such Letter of Credit (including to reimburse any and all drawings         thereunder) as if such Letter of Credit had been issued solely for the account of the Borrower and         (ii) irrevocably waives any and all defenses that might otherwise be available to it as a guarantor         or surety of any or all of the obligations of such Subsidiary in respect of such Letter of Credit.  The         Borrower hereby acknowledges that the issuance of such Letters of Credit for its Subsidiaries inures         to the benefit of the Borrower, and that the Borrower’s business derives substantial benefits from         the businesses of such Subsidiaries.                (m)    Issuing  Bank  Agreements.  Each  Issuing  Bank  agrees  that,  unless otherwise        requested  by  the  Administrative  Agent,  such  Issuing  Bank  shall report  in  writing  to  the        Administrative Agent (i) on or prior to each Business Day on which such Issuing Bank expects to        issue, amend, renew or extend any Letter of Credit, the date of such issuance, amendment, renewal        or extension, and the aggregate face amount of the Letters of Credit to be issued, amended, renewed        or  extended by  it  and outstanding  after  giving  effect  to  such  issuance,  amendment,  renewal  or        extension occurred (and whether the amount thereof changed), (ii) on each Business Day on which        such Issuing Bank pays any amount in respect of one or more drawings under Letters of Credit, the        date of such payment(s) and the amount of such payment(s), (iii) on any Business Day on which        the Borrower fails to reimburse any amount required to be reimbursed to such Issuing Bank on such        day, the date of such failure and the amount and currency of such payment in respect of Letters of        Credit and (iv) on any other Business Day, such other information as the Administrative Agent         shall reasonably request.                SECTION 2.07. Funding of Borrowings.  (a)  Each Lender shall make each Loan to be  made by it hereunder on the proposed date thereof by wire transfer of immediately available funds by 2:00  p.m., New York City time, to the account of the Administrative Agent most recently designated by it for  such purpose by notice to the Lenders in an amount equal to such Lender’s Applicable Percentage; provided  that Term Loans shall be made as provided in Sections 2.01(b) and 2.01(c), as applicable; provided further  that Swingline Loans shall be made as provided in Section 2.05.  Except in respect of the provisions of this  Agreement  covering  the  reimbursement  of  Letters  of  Credit,  the Administrative  Agent  will  make  such  Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to a general  deposit account of the Borrower as designated by the Borrower in the applicable Account Designation  Letter; provided that ABR Revolving Loans made to finance the reimbursement of an LC Disbursement as  provided in Section 2.06(e) shall be remitted by the Administrative Agent to the applicable Issuing Bank.                (b)    Unless the Administrative Agent shall have received notice from a Lender prior to         the proposed time of any Borrowing (or in the case of an ABR Borrowing, prior to 2:00 p.m., New         York City time, on the date of such Borrowing) that such Lender will not make available to the         Administrative  Agent  such  Lender’s  share  of  such  Borrowing,  the  Administrative  Agent  may         assume that such Lender has made such share available on such date in accordance with paragraph         (a) of this Section and may, in reliance upon such assumption, make available to the Borrower a         corresponding amount.  In such event, if a Lender has not in fact made its share of the applicable         Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower         severally  agree  to  pay  to  the  Administrative  Agent  forthwith  on  demand  such  corresponding         amount  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 (i)                                             34  

 

         in  the  case  of  such  Lender,  the  greater  of  the  NYFRB  Rate  and  a  rate  determined  by  the        Administrative Agent in accordance with banking industry rules on interbank compensation or (ii)        in the case of the Borrower, the interest rate applicable to ABR Loans.  If such Lender pays such        amount  to  the  Administrative  Agent,  then  such  amount  shall  constitute  such  Lender’s  Loan        included in such Borrowing.                SECTION 2.08. Interest  Elections.   (a)   Each  Borrowing  initially  shall  be  of the  Type  specified in the applicable Borrowing Request and, in the case of a Eurodollar Borrowing, shall have an  initial  Interest  Period  as  specified  in  such  Borrowing  Request.  Thereafter, the Borrower may elect to  convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a Eurodollar  Borrowing, may elect Interest Periods therefor, all as provided in this Section.  The Borrower may elect  different options with respect to different portions of the affected Borrowing, in which case each such  portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and  the Loans comprising each such portion shall be considered a separate Borrowing.  This Section shall not  apply to Swingline Borrowings, which may not be converted or continued.                (b)    To  make  an  election  pursuant  to  this  Section,  the  Borrower  shall  notify  the        Administrative  Agent  of  such  election  (by  irrevocable  written  notice  via  an  Interest  Election        Request signed by the Borrower) by the time that a Borrowing Request would be required under        Section 2.03 if the Borrower were requesting a Borrowing of the Type and Class resulting from        such election to be made on the effective date of such election.  Notwithstanding any contrary        provision herein, this Section shall not be construed to permit the Borrower to (i) elect an Interest        Period  for  Eurodollar  Loans  that  does  not  comply  with  Section  2.02(d)  or  (ii)  convert  any        Borrowing to a Borrowing of a Type not available under the Class of Commitments pursuant to        which such Borrowing was made.                (c)    Each  Interest  Election  Request  shall  specify  the  following  information  in         compliance with Section 2.02:                       (i)    the  Borrowing  to  which  such  Interest  Election  Request  applies  and,  if               different options are being elected with respect to different portions thereof, the portions               thereof to be allocated to each resulting Borrowing (in which case the information to be               specified  pursuant  to  clauses  (iii)  and  (iv)  below  shall  be  specified  for  each  resulting               Borrowing);                       (ii)  the effective date of the election made pursuant to such Interest Election               Request, which shall be a Business Day;                       (iii) whether  the  resulting  Borrowing  is  to  be  an  ABR  Borrowing  or  a               Eurodollar Borrowing; and                       (iv)  if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period               to be applicable thereto after giving effect to such election, which Interest Period shall be               a period contemplated by the definition of the term “Interest Period”.   If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an Interest  Period, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.                (d)    Promptly  following  receipt  of  an  Interest  Election  Request,  the  Administrative         Agent shall advise each Lender of the details thereof and of such Lender’s portion of each resulting         Borrowing.                                              35  

 

                (e)    If the Borrower fails to deliver a timely Interest Election Request with respect to a         Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then, unless such         Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be         converted to an ABR Borrowing.  Notwithstanding any contrary provision hereof, if an Event of         Default has occurred and is continuing and the Administrative Agent, at the request of the Required         Lenders,  so  notifies  the  Borrower,  then,  so  long  as  an  Event  of  Default  is  continuing  (i)  no         outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii) unless         repaid,  each  Eurodollar  Borrowing  shall  be  converted  to  an  ABR Borrowing  at  the  end  of  the         Interest Period applicable thereto.                SECTION 2.09. Termination  and  Reduction  of  Commitments.   (a)   Unless  previously  terminated, (i) the Term Loan Commitments shall terminate at 4:00 p.m. (New York City time) on the  Effective Date and (ii) all other Commitments shall terminate on the Revolving/TLA-1 Maturity Date.                (b)    The  Borrower  may  at  any  time  terminate,  or  from  time  to  time  reduce,  the         Revolving Commitments; provided that (i) each reduction of the Revolving Commitments shall be        in an amount that is an integral multiple of $1,000,000 and not less than $5,000,000 and (ii) the         Borrower shall not terminate or reduce the Revolving Commitments if, after giving effect to any         concurrent prepayment of the Loans in accordance with Section 2.11, the Total Revolving Credit         Exposure would exceed the aggregate Revolving Commitments.                (c)    The Borrower shall notify the Administrative Agent of any election to terminate         or reduce the Commitments under paragraph (b) of this Section at least three (3) Business Days         prior  to  the  effective  date  of  such  termination  or  reduction,  specifying  such  election  and  the         effective date thereof.  Promptly following receipt of any notice, the Administrative Agent shall         advise the Lenders of the contents thereof.  Each notice delivered by the Borrower pursuant to this         Section shall be irrevocable; provided that a notice of termination of the Commitments delivered         by the Borrower may state that such notice is conditioned upon the effectiveness of other credit         facilities or other transactions specified therein, in which case such notice may be revoked by the         Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such         condition is not satisfied.  Any termination or reduction of the Commitments shall be permanent.          Each reduction of the Commitments shall be made ratably among the Lenders in accordance with         their respective Commitments.                SECTION 2.10.                                          Repayment  of  Loans;  Evidence of Debt.  (a)  The Borrower hereby unconditionally promises to pay (i) to the Administrative  Agent for the account of each Revolving Lender the then unpaid principal amount of each Revolving Loan  on the Revolving/TLA-1 Maturity Date, (ii) to the Administrative Agent for the account of the Swingline  Lender the then unpaid principal amount of each Swingline Loan on the earlier of the Revolving/TLA-1  Maturity Date and the first date after such Swingline Loan is made that is the 15th or last day of a calendar  month and is at least two (2) Business Days after such Swingline Loan is made; provided that on each date  that a Revolving Borrowing is made, the Borrower shall repay all Swingline Loans then outstanding and  the proceeds of any such Borrowing shall be applied by the Administrative Agent to repay any Swingline  Loans outstanding, (iii) to the extent not previously repaid, to the Administrative Agent for the account of  each  Term  A-1  Lender  the  then  unpaid  principal  amount  of  the  Term  A-1  Loans  in  Dollars  on  the  Revolving/TLA-1 Maturity Date and (iv) to the extent not previously repaid, to the Administrative Agent  for the account of each Term A-2 Lender the then unpaid principal amount of the Term A-2 Loans in Dollars  on the TLA-2 Maturity Date.                (b)    Each Lender shall maintain in accordance with its usual practice an account or        accounts evidencing the indebtedness of the Borrower to such Lender resulting from each Loan                                             36  

 

         made by such Lender, including the amounts of principal and interest payable and paid to such        Lender from time to time hereunder.                (c)    The Administrative Agent shall maintain accounts in which it shall record (i) the         amount of each Loan made hereunder, the Class and Type thereof and the Interest Period applicable         thereto, (ii) the amount of any principal or interest due and payable or to become due and payable         from  the  Borrower  to  each  Lender  hereunder  and  (iii)  the  amount  of  any  sum  received  by  the         Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.                (d)    The entries made in the accounts maintained pursuant to paragraph (b) or (c) of         this Section shall be prima facie evidence, absent manifest error, of the existence and amounts of        the  obligations  recorded  therein;  provided  that  the  failure  of any  Lender  or  the  Administrative        Agent to maintain such accounts or any error therein shall not in any manner affect the obligation        of the Borrower to repay the Loans in accordance with the terms of this Agreement.                (e)    Any Lender may request that Loans made by it be evidenced by a promissory note.         In such event, the Borrower shall prepare, execute and deliver to such Lender a promissory note        payable to such Lender (or, if requested by such Lender, to such Lender and its registered assigns)        and substantially in the form attached as Exhibit B hereto.  Thereafter, the Loans evidenced by such        promissory  note  and  interest  thereon  shall  at  all  times  (including  after  assignment  pursuant  to        Section 9.04) be represented by one or more promissory notes in such form.                SECTION 2.11. Prepayment of Loans.  The Borrower shall have the right at any time and  from time to time to prepay any Borrowing in whole or in part, subject to prior notice in accordance with  the provisions of this Section 2.11.  The Borrower shall notify the Administrative Agent (and, in the case  of prepayment of a Swingline Loan, the Swingline Lender) by telephone (confirmed by telecopy) of any  prepayment hereunder (i) in the case of prepayment of a Eurodollar Borrowing, not later than 1:00 p.m.,  New York City time, three (3) Business Days before the date of prepayment, (ii) in the case of prepayment  of an ABR Borrowing, not later than 1:00 p.m., New York City time, one (1) Business Day before the date  of prepayment or (iii) in the case of prepayment of a Swingline Loan, not later than 1:00 p.m., New York  City  time,  on  the  date  of  prepayment.   Each  such  notice  shall  be  irrevocable  and  shall  specify  the  prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; provided  that,  if  a  notice  of  prepayment  is  given  in  connection  with  a  conditional  notice  of  termination  of  the  Commitments, then such notice of prepayment may be revoked if such notice of termination is revoked in  accordance with Section 2.09.  Promptly following receipt of any such notice relating to a Borrowing, the  Administrative Agent shall advise the Lenders of the contents thereof.  Each partial prepayment of any  Borrowing shall be in an amount that would be permitted in the case of an advance of a Borrowing of the  same  Type  as  provided  in  Section 2.02.   Each  prepayment  of  a  Revolving  Borrowing  shall  be  applied  ratably to the Revolving Loans included in the prepaid Revolving Borrowing, each voluntary prepayment  of a Term Loan Borrowing of any Class shall be applied ratably to the Term Loans of such Class outstanding  at such time and included in the prepaid Term Loan Borrowing in such order of application as directed by  the  Borrower.   Prepayments  shall  be  accompanied  by  (i) accrued interest  to  the  extent  required  by  Section 2.13  and  (ii) any  break  funding  payments  required  by  Section 2.16.   If  at  any  time  the  Total  Revolving  Credit  Exposure  exceeds  the  aggregate  Revolving  Commitments,  the  Borrower  shall  immediately repay Borrowings or cash collateralize LC Exposure in an account with the Administrative  Agent pursuant to Section 2.06(j), as applicable, in an aggregate principal amount sufficient to cause the  aggregate principal amount of the Total Revolving Credit Exposure to be less than or equal to the aggregate  Revolving Commitments.                SECTION 2.12. Fees.  (a)  The Borrower agrees to pay to the Administrative Agent for the  account of each Revolving Lender a facility fee, which shall accrue at the Applicable Rate on the daily                                             37  

 

   amount of the Revolving Commitment of such Lender (whether used or unused) during the period from  and  including  the  Effective  Date  to  but  excluding  the  date  on  which  such  Revolving  Commitment  terminates;  provided  that,  if  such  Lender  continues  to  have  any  Revolving  Credit  Exposure  after  its  Revolving Commitment terminates, then such facility fee shall continue to accrue on the daily amount of  such Lender’s Revolving Credit Exposure from and including the date on which its Revolving Commitment  terminates to but excluding the date on which such Lender ceases to have any Revolving Credit Exposure.   Facility fees accrued through and including the last day of March, June, September and December of each  year shall be payable in arrears on the fifteenth (15th) day following such last day and on the date on which  the Revolving Commitments terminate, commencing on the first such date to occur after the date hereof;  provided that any facility fees accruing after the date on which the Revolving Commitments terminate shall  be payable on demand.  All facility fees shall be computed on the basis of a year of 360 days and shall be  payable for the actual number of days elapsed (including the first day but excluding the last day).                (b)    The Borrower agrees to pay (i) to the Administrative Agent for the account of each         Revolving Lender a participation fee with respect to its participations in Letters of Credit, which         shall accrue at the same Applicable Rate used to determine the interest rate applicable to Eurodollar         Revolving  Loans  on  the  average  daily  amount  of  such  Lender’s  LC  Exposure  (excluding  any         portion  thereof  attributable  to  unreimbursed  LC  Disbursements) during  the  period  from  and         including the Effective Date to but excluding the later of the date on which such Revolving Lender’s         Revolving Commitment terminates and the date on which such  Lender ceases to have any LC         Exposure and (ii) to each Issuing Bank for its own account a fronting fee, which shall accrue at the         rate of 0.125% per annum on the average daily amount of the LC Exposure (excluding any portion         thereof attributable to unreimbursed LC Disbursements) attributable to Letters of Credit issued by         such Issuing Bank during the period from and including the Effective Date to but excluding the         later of the date of termination of the Revolving Commitments and the date on which there ceases         to be any LC Exposure, as well as each Issuing Bank’s standard fees and commissions with respect         to the issuance, amendment, cancellation, negotiation, transfer, presentment, renewal or extension         of any Letter of Credit or processing of drawings thereunder.  Unless otherwise specified above,         participation fees and fronting fees accrued through and including the last day of March, June,         September and December of each year shall be payable on the fifteenth (15th) day following such        last day, commencing on the first such date to occur after the Effective Date; provided that all such        fees shall be payable on the date on which the Revolving Commitments terminate and any such        fees accruing after the date on which the Revolving Commitments terminate shall be payable on        demand.  Any other fees payable to an Issuing Bank pursuant to this paragraph shall be payable        within  ten  (10)  days  after  written  demand.   All  participation  fees  and  fronting  fees  shall  be        computed on the basis of a year of 360 days and shall be payable for the actual number of days        elapsed (including the first day but excluding the last day).                (c)    The Borrower agrees to pay to the Administrative Agent, for its own account, fees         payable in the amounts and at the times separately agreed upon between the Borrower and the         Administrative Agent.                (d)    All fees payable hereunder shall be paid on the dates due, in immediately available         funds, to the Administrative Agent (or to the applicable Issuing Bank, in the case of fees payable         to it) for distribution, in the case of facility fees and participation fees, to the applicable Lenders.          Fees paid shall not be refundable under any circumstances.                SECTION 2.13.                 Interest.   (a)   The  Loans  comprising  each  ABR  Borrowing  (including  each  Swingline  Loan)  shall  bear  interest  at  the  Alternate  Base  Rate  plus  the  Applicable Rate.                                              38  

 

                (b)    The  Loans  comprising  each  Eurodollar  Borrowing  shall  bear  interest  at  the        Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.                (c)    Notwithstanding the foregoing, if any principal of or interest on any Loan or any         fee or other amount payable by the Borrower hereunder is not paid when due, whether at stated         maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well as         before judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2%         plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this         Section  or  (ii)  in  the  case  of  any  other  amount,  2%  plus  the  rate  applicable  to  ABR  Loans  as         provided in paragraph (a) of this Section.                (d)    Accrued interest on each Loan shall be payable in arrears on each Interest Payment         Date  for  such  Loan  and,  in  the  case  of  Revolving  Loans  upon  termination  of  the  Revolving         Commitments; provided that (i) interest accrued pursuant to paragraph (c) of this Section shall be        payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a        prepayment of an ABR Revolving Loan prior to the end of the Availability Period), accrued interest        on  the  principal  amount  repaid  or  prepaid  shall  be  payable  on  the  date  of  such  repayment  or        prepayment and (iii) in the event of any conversion of any Eurodollar Loan prior to the end of the        current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date        of such conversion.                (e)    All interest hereunder shall be computed on the basis of a year of 360 days, except        that interest computed by reference to the Alternate Base Rate at times when the Alternate Base        Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days        in a leap year), and in each case shall be payable for the actual number of days elapsed (including        the first day but excluding the last day).  The applicable Alternate Base Rate, Adjusted LIBO Rate         or LIBO Rate shall be determined by the Administrative Agent, and such determination shall be        conclusive absent manifest error.                SECTION 2.14. Alternate Rate of Interest.                  (a)    If prior to the commencement of any Interest Period for a Eurodollar Borrowing:                       (i)    the  Administrative  Agent  reasonably  determines  (which  determination               shall be conclusive and binding absent manifest error) that adequate and reasonable means               do  not  exist  for  ascertaining  the  Adjusted  LIBO  Rate  or  the  LIBO  Rate,  as  applicable               (including because the LIBO Screen Rate is not available or published on a current basis),               for such Interest Period; or                       (ii)   the  Administrative  Agent  is  advised  by  the  Required  Lenders  that  the               Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period will not               adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining               their Loans (or its Loan) included in such Borrowing for such Interest Period;   then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by telephone or  telecopy as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower and  the  Lenders  that  the  circumstances  giving  rise  to  such  notice  no  longer  exist,  (i)  any  Interest  Election  Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar  Borrowing shall be ineffective and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such  Borrowing shall be made as an ABR Borrowing.                                              39  

 

                        (b)    Notwithstanding the foregoing, if at any time the Administrative Agent determines  (which determination shall be conclusive absent manifest error) that (i) the circumstances set forth  in Section 2.14(a)(i) have arisen and such circumstances are unlikely to be temporary or (ii) the  circumstances set forth in Section 2.14(a)(i) have not arisen but any of (w) the supervisor for the  administrator of the LIBO Screen Rate has made a public statement that the administrator of the  LIBO  Screen  Rate  is  insolvent  (and  there  is  no  successor  administrator  that  will  continue  publication of the LIBO Screen Rate), (x) the administrator of the LIBO Screen Rate has made a  public statement identifying a specific date after which the LIBO Screen Rate will permanently or  indefinitely cease to be published by it (and there is no successor administrator that will continue  publication of the LIBO Screen Rate), (y) the supervisor for the administrator of the LIBO Screen  Rate has made a public statement identifying a specific date after which the LIBO Screen Rate will  permanently or indefinitely cease to be published or (z) the supervisor for the administrator of the  LIBO Screen Rate or a Governmental Authority having jurisdiction over the Administrative Agent  has made a public statement identifying a specific date after which the LIBO Screen Rate may no  longer  be  used  for  determining  interest  rates  for  loans,  then  the  Administrative  Agent  and  the  Borrower shall endeavor to establish an alternate rate of interest to the LIBO Rate that gives due  consideration  to  the  then  prevailing  market  convention  for  determining  a  rate  of  interest  for  syndicated  loans  in  the  United  States  at  such  time,  and  shall  enter  into  an  amendment  to  this  Agreement to reflect such alternate rate of interest and such other related changes (including any  mathematical  or  other  adjustments  to  the  benchmark  (if  any)  incorporated  therein)  to  this  Agreement as may be applicable; provided that, if such alternate rate of interest as so determined  would be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.   Notwithstanding anything to the contrary in Section 9.02, such amendment shall become effective  without  any  further  action  or  consent  of  any  other  party  to  this  Agreement  so  long  as  the  Administrative Agent shall not have received, within five (5) Business Days of the date notice of  such alternate rate of interest is provided to the Lenders, a written notice from the Required Lenders   stating that such Required Lenders object to such amendment.  Until an alternate rate of interest  shall be determined in accordance with this Section 2.14(b) (but, in the case of the circumstances  described in clause (ii)(w), clause (ii)(x) or clause (ii)(y) of the first sentence of this Section 2.14(b),  only to the extent the LIBO Screen Rate for such Interest Period is not available or published at  such time on a current basis), (x) any Interest Election Request that requests the conversion of any  Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective  and (y) if any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made  as an ABR Borrowing.          SECTION 2.15.   Increased Costs.  i)  If any Change in Law shall:                 (i)    impose, modify or deem applicable any reserve, special deposit, liquidity         or similar requirement (including any compulsory loan requirement, insurance charge or         other assessment) against assets of, deposits with or for the account of, or credit extended         by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate)         or any Issuing Bank;                 (ii)  impose on any Lender or any Issuing Bank or the London interbank market         any other condition, cost or expense affecting this Agreement or Eurodollar Loans made         by such Lender or any Letter of Credit or participation therein; or                 (iii)  subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B)         Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C)         Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or         other obligations, or its deposits, reserves, other liabilities or capital attributable thereto;                                       40  

 

   and the result of any of the foregoing shall be to increase the cost to such Recipient of making, continuing,  converting or maintaining any Loan or of maintaining its obligation to make any such Loan or to increase  the cost to such Recipient of participating in, issuing or maintaining any Letter of Credit or to reduce the  amount of any sum received or receivable by such Recipient hereunder, whether of principal, interest or  otherwise,  then  the  Borrower  will  pay  to  such  Recipient  such  additional  amount  or  amounts  as  will  compensate such Recipient for such additional costs incurred or reduction suffered.                (b)    If any Lender or any Issuing Bank determines that any Change in Law regarding         capital or liquidity requirements has or would have the effect of reducing the rate of return on such         Lender’s or such Issuing Bank’s capital or on the capital of such Lender’s or such Issuing Bank’s         holding  company,  if  any,  as  a  consequence  of  this  Agreement  or the  Loans  made  by,  or         participations in Letters of Credit or Swingline Loans held by, such Lender, or the Letters of Credit         issued by such Issuing Bank, to a level below that which such Lender or such Issuing Bank or such         Lender’s or such Issuing Bank’s holding company could have achieved but for such Change in Law         (taking into consideration such Lender’s or such Issuing Bank’s policies and the policies of such         Lender’s or such Issuing Bank’s holding company with respect to capital adequacy and liquidity),         then from time to time the Borrower will pay to such Lender or such Issuing Bank, as the case may         be, such additional amount or amounts as will compensate such Lender or such Issuing Bank or         such Lender’s or such Issuing Bank’s holding company for any such reduction suffered.                (c)    A certificate of a Lender or an Issuing Bank setting forth the amount or amounts         necessary to compensate such Lender or such Issuing Bank or its holding company, as the case         may be, as specified in paragraph (a) or (b) of this Section (and setting forth in reasonable detail         the manner in which such amount or amounts have been determined) shall be delivered to the         Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender or         such Issuing Bank, as the case may be, the amount shown as due on any such certificate within ten         (10) days after receipt thereof.                (d)    Failure  or  delay  on  the  part  of  any  Lender  or  any  Issuing  Bank to  demand         compensation pursuant to this Section shall not constitute a waiver of such Lender’s or such Issuing         Bank’s right to demand such compensation; provided that the Borrower shall not be required to        compensate  a  Lender  or  an  Issuing  Bank  pursuant  to  this  Section for any increased costs or        reductions incurred more than 270 days prior to the date that such Lender or such Issuing Bank, as        the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs or        reductions and of such Lender’s or such Issuing Bank’s intention to claim compensation therefor;        provided further that, if the Change in Law giving rise to such increased costs or reductions is        retroactive, then the 270-day period referred to above shall be extended to include the period of        retroactive effect thereof.                SECTION 2.16. Break Funding Payments.  In the event of (a) the payment of any principal  of any Eurodollar Loan other than on the last day of an Interest Period applicable thereto (including as a  result of an Event of Default or as a result of any prepayment pursuant to Section 2.11), (b) the conversion  of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to  borrow, convert, continue or prepay any Eurodollar Loan on the date specified in any notice delivered  pursuant hereto (regardless of whether such notice may be revoked under Section 2.11 and is revoked in  accordance therewith, other than, in the case of any Lender, as a result of the failure of such Lender to make  a Loan) or (d) the assignment of any Eurodollar Loan other than on the last day of the Interest Period  applicable thereto as a result of a request by the Borrower pursuant to Section 2.19 or 9.02(d), then, in any  such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such  event.  Such loss, cost or expense to any Lender shall be deemed to include an amount determined by such  Lender to be the excess, if any, of (i) the amount of interest that would have accrued on the principal amount                                             41  

 

   of such Loan had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to  such Loan, for the period from the date of such event to the last day of the then current Interest Period  therefor (or, in the case of a failure to borrow, convert or continue, for the period that would have been the  Interest Period for such Loan), over (ii) the amount of interest that would accrue on such principal amount  for such period at the interest rate that such Lender would bid were it to bid, at the commencement of such  period,  for  deposits  in  Dollars  of  a  comparable  amount  and  period  from  other  banks  in  the  eurodollar  market.  A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to  receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest  error.  The Borrower shall pay such Lender the amount shown as due on any such certificate within ten (10)  days after receipt thereof.                SECTION 2.17. Taxes.  (a)  Withholding of Taxes; Gross-Up.  Any and all payments by or  on account of any obligation of any Loan Party under any Loan Document shall be made without deduction  or withholding for any Taxes, except as required by applicable law.  If any applicable law (as determined  in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of  any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be  entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld  to  the  relevant  Governmental  Authority  in  accordance  with  applicable  law,  and  if  such  Tax  is  an  Indemnified Tax, then the amount 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 amounts payable under this Section), the applicable Recipient receives an amount  equal to the amount it would have received had no such deduction or withholding been made.                (b)    Payment of Other Taxes by the Borrower.  The Borrower shall timely pay to the        relevant  Governmental  Authority  in  accordance  with  applicable  law,  or  at  the  option  of  the        Administrative Agent timely reimburse it for the payment of, any Other Taxes.                (c)    Evidence of Payments.  As soon as practicable after any payment of Taxes by any        Loan Party to a Governmental Authority pursuant to this Section 2.17, such Loan Party shall deliver        to  the  Administrative  Agent  the  original  or  a  certified  copy  of  a  receipt  issued  by  such        Governmental Authority evidencing such payment, a copy of the return reporting such payment or        other evidence of such payment reasonably satisfactory to the Administrative Agent.                (d)    Indemnification by the Borrower.  The Borrower shall indemnify each Recipient        for any Indemnified Taxes that are paid or payable by such Recipient in connection with any Loan        Document (including Indemnified Taxes imposed or asserted on or attributable to amounts paid or        payable under this Section 2.17(d)) 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. The indemnity under this Section 2.17(d) shall        be paid within ten (10) days after the Recipient delivers to the Borrower a certificate stating the        amount of any Indemnified Taxes so paid or payable by such Recipient and describing the basis        for the indemnification claim. Such certificate shall be conclusive of the amount so paid or payable        absent manifest error. Such Recipient shall deliver a copy of such certificate to the Administrative        Agent.                (e)    Indemnification  by  the  Lenders.   Each  Lender  shall  severally  indemnify  the        Administrative Agent for (i) any Indemnified Taxes attributable to such Lender (but only to the        extent  that  the  Borrower  has  not  already  indemnified  the  Administrative  Agent  for  such        Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes        attributable to such Lender’s failure to comply with the provisions of Section 9.04(c) relating to the                                             42  

 

                 maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in  each  case,  that  are  paid  or  payable  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.  The indemnity under this Section 2.17(e) shall be paid within ten (10) days after the Administrative  Agent delivers to the applicable Lender a certificate stating the amount of Taxes so paid or payable  by the Administrative Agent. Such certificate shall be conclusive of the amount so paid or payable  absent manifest error.          (f)    Status  of  Lenders.   (i)   Any  Lender  that  is  entitled  to  an  exemption  from,  or  reduction  of,  any  applicable  withholding  Tax  with  respect  to  any  payments  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, 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  any  withholding  (including  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 2.17(f)(ii)(A) through (E) 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.  Upon  the  reasonable  request  of  the  Borrower  or  the  Administrative  Agent,  any  Lender  shall  update  any  form  or  certification  previously  delivered  pursuant to this Section 2.17(f). If any form or certification previously delivered pursuant to this  Section expires or becomes obsolete or inaccurate in any respect with respect to a Lender, such  Lender shall promptly (and in any event within ten (10) days after such expiration, obsolescence  or inaccuracy) notify the Borrower and the Administrative Agent in writing of such expiration,  obsolescence or inaccuracy and either update the form or certification if it is legally eligible to do  so or notify the Borrower that it is legally ineligible to do so.                 (ii)  Without limiting the generality of the foregoing, if the Borrower is a U.S.         Person, any Lender with respect to the Borrower shall, if it is legally entitled to do so,         deliver to the Borrower and the Administrative Agent (in such number of copies reasonably         requested by the Borrower or the Administrative Agent) on or prior to the date on which         such Lender becomes a party hereto, duly completed and executed copies of whichever of         the following is applicable, together with such supplementary documentation as may be         prescribed  by  Applicable  Law  to  permit  the  Borrower  or  the  Administrative  Agent  to         determine:                       (A)    in the case of a Lender that is a U.S. Person, executed copies of                IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup                withholding tax;                       (B)    in  the  case  of  a  Non-U.S.  Lender  claiming  the  benefits  of  an                income tax treaty to which the United States is a party (1) with respect to payments                of interest under any Loan Document, executed copies of IRS Form W-8BEN or                IRS  Form  W-8BEN-E  establishing  an  exemption  from,  or  reduction of,  U.S.                federal withholding Tax pursuant to the “interest” article of such tax treaty and (2)                                       43  

 

                        with respect  to any other applicable payments under any Loan Document, IRS         Form  W-8BEN  or  IRS  Form  W-8BEN-E  establishing  an  exemption  from,  or         reduction of, U.S. federal withholding Tax pursuant to the “business profits” or         “other income” article of such tax treaty;                (C)    in the case of a Non-U.S. Lender for whom payments under any         Loan Document constitute income that is effectively connected with such Lender’s         conduct of a trade or business in the United States, executed copies of IRS Form         W-8ECI;                (D)    in  the  case  of  a  Non-U.S.  Lender  claiming  the  benefits  of  the         exemption for portfolio interest under Section 881(c) of the Code both (1) executed         copies  of  IRS  Form  W-8BEN  or  IRS  Form  W-8BEN-E  and  (2)  a  certificate         substantially in the form of Exhibit I-1 (a “U.S. Tax Certificate”) to the effect that         such  Non-U.S.  Lender  is  not  (a)  a  “bank”  within  the  meaning  of Section         881(c)(3)(A) of the Code, (b) a “10 percent shareholder” of the Borrower within         the  meaning  of  Section  871(h)(3)(B)  of  the  Code,  (c)  a  “controlled  foreign         corporation” described in Section 881(c)(3)(C) of the Code and (d) conducting a         trade or business in the United States with which the relevant interest payments are         effectively connected;                 (E)   to  the  extent  a  Non-U.S.  Lender is  not  the  beneficial  owner  of         payments made under this Agreement, executed copies of IRS Form W-8IMY on         behalf  of  itself,  accompanied  by  IRS  Form  W-8ECI,  IRS  Form  W-8BEN,  IRS         Form 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 owners, as applicable; provided that if the Non-U.S. Lender         is a partnership and one or more direct or indirect partners of such Non-U.S. Lender         are claiming the portfolio interest exemption, such Non-U.S. 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; or                 (F)   any  other  form  prescribed  by  law  as  a  basis  for  claiming         exemption from, or a reduction of, U.S. federal withholding Tax together with such         supplementary  documentation  necessary  to  enable  the  Borrower  or the         Administrative Agent to determine the amount of Tax (if any) required by law to         be withheld.          (iii) Any Non-U.S. 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  about  the  date  on  which  such  Non-U.S.  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  U.S.  federal  withholding  Tax,  duly  completed,  together  with  such  supplemental  documentation  as  may  be  prescribed  by  Applicable  Law  to  permit  the  Borrower and the Administrative Agent to determine the withholding or deduction required  to be made.          (iv)  If a payment made to a Lender under any Loan Document would be subject  to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply                                44  

 

                with  the  applicable  reporting  requirements  of  FATCA  (including those  contained  in               Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the               Borrower and the Administrative Agent, at the time or times prescribed by law and at such               time or times reasonably requested by the Borrower and 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 or the               Administrative Agent to comply with its obligations under FATCA, to determine that such               Lender  has  or  has  not  complied  with  such  Lender’s  obligations  under  FATCA  and,  as               necessary, to determine the amount to deduct and withhold from such payment.  Solely for               purposes  of  this  Section  2.17(f)(iii),  “FATCA”  shall  include  any  amendments  made  to               FATCA after the date of this Agreement.                (g)    Treatment  of  Certain  Refunds.   If  any  party  determines,  in  its sole  discretion        exercised  in  good  faith,  that  it  has  received  a  refund  of  any  Taxes  as  to  which  it  has  been        indemnified  pursuant  to  this  Section  2.17  (including  additional  amounts  paid  pursuant  to  this        Section 2.17), it shall pay to the indemnifying party an amount equal to such refund (but only to        the extent of indemnity payments made under this Section with respect to the Taxes giving rise to        such refund), net of all out-of-pocket expenses (including any 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 to such indemnified party pursuant to the previous        sentence  (plus  any  penalties,  interest  or  other  charges  imposed  by  the  relevant  Governmental        Authority)  in  the  event  such  indemnified  party  is  required  to  repay  such  refund  to  such        Governmental Authority. Notwithstanding anything to the contrary in this Section 2.17(g), in no        event will any indemnified party be required to pay any amount to any indemnifying party pursuant        to this Section 2.17(g) if such payment would place such indemnified party in a less favorable        position  (on  a  net  after-Tax  basis)  than  such  indemnified  party  would  have  been  in  if  the        indemnification payments or additional amounts 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 Section 2.17(g) shall not be construed to require any        indemnified party to make available its Tax returns (or any other information relating to its Taxes        which it deems confidential) to the indemnifying party or any other Person.                (h)    Survival.   Each  party’s  obligations  under  this  Section  2.17  shall  survive  the        resignation  or  replacement  of  the  Administrative  Agent  or  any  assignment  of  rights  by,  or  the        replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or        discharge of all obligations under any Loan Document.                (i)    Defined Terms.  For purposes of this Section 2.17, the term “Lender” includes the        Issuing Banks and the term “applicable law” includes FATCA.                SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Set-offs.  (a)  The  Borrower  shall  make  each  payment  or  prepayment  required  to  be  made  by  it  hereunder  (whether  of  principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section 2.15,  2.16 or 2.17, or otherwise) prior to 1:00 p.m. (or, in the case of a repayment of a Swingline Loan, 2:00  p.m.),  New  York  City  time  on  the  date  when  due,  in  immediately available  funds,  without  set-off,  recoupment or counterclaim.  Any amounts received after such time on any date may, in the discretion of  the  Administrative  Agent,  be  deemed  to  have  been  received  on  the  next  succeeding  Business  Day  for  purposes of calculating interest thereon.  All such payments shall be made to the Administrative Agent at  its offices at 10 South Dearborn Street, 7th  Floor, Chicago, Illinois 60603, except payments to be made                                             45  

 

   directly to any Issuing Bank or Swingline Lender as expressly provided herein and except that payments  pursuant to Sections 2.15, 2.16, 2.17 and 9.03 shall be made directly to the Persons entitled thereto.  The  Administrative Agent shall distribute any such payments received by it for the account of any other Person  to the appropriate recipient promptly following receipt thereof.  If any payment hereunder shall be due on  a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business  Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of  such extension.  All payments hereunder shall be made in Dollars.                (b)    If at any time insufficient funds are received by and available to the Administrative        Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then        due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due        hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and        fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed LC        Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with        the amounts of principal and unreimbursed LC Disbursements then due to such parties.                (c)    [intentionally omitted]                (d)    If any Lender shall, by exercising any right of set-off or counterclaim or otherwise,        obtain payment in respect of any principal of or interest on any of its Loans or participations in LC        Disbursements  or  Swingline  Loans  resulting  in  such  Lender  receiving  payment  of  a  greater        proportion  of  the  aggregate  amount  of  its  Loans  and  participations  in  LC  Disbursements  and        Swingline Loans and accrued interest thereon than the proportion received by any other Lender,        then  the  Lender  receiving  such  greater  proportion  shall  purchase  (for  cash  at  face  value)        participations in the Loans and participations in LC Disbursements and Swingline Loans of other        Lenders to the extent necessary so that the benefit of all such payments shall be shared by the        Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on        their respective Loans and participations in LC Disbursements and Swingline Loans; provided that        (i) if any such participations are purchased and all or any portion of the payment giving rise thereto        is recovered, such participations shall be rescinded and the purchase price restored to the extent of        such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed to        apply to any payment made by the Borrower pursuant to and in accordance with the express terms        of this Agreement or any payment obtained by a Lender as consideration for the assignment of or        sale of a participation in any of its Loans or participations in LC Disbursements and Swingline        Loans to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate         thereof (as to which the provisions of this paragraph shall apply).  The Borrower consents to the         foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender         acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower         rights of set-off and counterclaim with respect to such participation as fully as if such Lender were         a direct creditor of the Borrower in the amount of such participation.                (e)    Unless the Administrative Agent shall have received notice from the Borrower         prior to the date on which any payment is due to the Administrative Agent for the account of the         relevant Lenders or the relevant Issuing Bank hereunder that the Borrower will not make such         payment, the Administrative Agent may assume that the Borrower has made such payment on such         date in accordance herewith and may, in reliance upon such assumption, distribute to the relevant         Lenders or the relevant Issuing Bank, as the case may be, the amount due.  In such event, if the         Borrower has not in fact made such payment, then each of the relevant Lenders or the relevant         Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith         on demand the amount so distributed to such Lender or such Issuing Bank with interest thereon,         for each day from and including the date such amount is distributed to it to but excluding the date                                             46  

 

         of payment to the Administrative Agent, at the greater of the NYFRB Rate and a rate determined        by the Administrative Agent in accordance with banking industry rules on interbank compensation.                (f)    If any Lender shall fail to make any payment required to be made by it pursuant to        Section 2.05(c), 2.06(d) or (e), 2.07(b), 2.18(e) or 9.03(c), then the Administrative Agent may, in        its discretion (notwithstanding any contrary provision hereof), (i) apply any amounts thereafter        received by the Administrative Agent for the account of such Lender and for the benefit of the        Administrative  Agent,  the  Swingline  Lender  or  any  Issuing  Bank to  satisfy  such  Lender’s        obligations to it under such Section until all such unsatisfied obligations are fully paid and/or (ii)        hold any such amounts in a segregated account over which the Administrative Agent shall have        exclusive control as cash collateral for, and application to, any future funding obligations of such        Lender under any such Section; in the case of each of clauses (i) and (ii) above, in any order as        determined by the Administrative Agent in its discretion.                SECTION 2.19. Mitigation  Obligations;  Replacement  of  Lenders.   (a)   If  any  Lender  requests compensation under Section 2.15, or the Borrower is required to pay any additional amount to any  Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, then such  Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans  hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates,  if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts  payable pursuant to Section 2.15 or 2.17, as the case may be, in the future and (ii) would not subject such  Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.   The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection  with any such designation or assignment.                (b)    If (i) any Lender requests compensation under Section 2.15, (ii) the Borrower is         required to pay any additional amount to any Lender or any Governmental Authority for the account         of any Lender pursuant to Section 2.17 or (iii) any Lender becomes a Defaulting Lender, then the         Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative         Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject        to the restrictions contained in Section 9.04), all its interests, rights (other than its existing rights to        payments  pursuant  to  Sections  2.15  or  2.17)  and  obligations  under  the  Loan  Documents  to  an        assignee that shall assume such obligations (which assignee may be another Lender, if a Lender        accepts  such  assignment);  provided  that  (i)  the  Borrower  shall have  received  the  prior  written        consent  of  the  Administrative  Agent  (and  if  a  Revolving  Commitment  is  being  assigned,  each        Issuing Bank and the Swingline Lender), which consent shall not unreasonably be withheld, (ii)        such Lender shall have received payment of an amount equal to the outstanding principal of its        Loans  and  participations  in  LC  Disbursements  and  Swingline  Loans,  accrued  interest  thereon,        accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such        outstanding  principal  and  accrued  interest  and  fees)  or  the  Borrower  (in  the  case  of  all  other        amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under        Section 2.15 or payments required to be made pursuant to Section 2.17, such assignment will result        in a reduction in such compensation or payments.  A Lender shall not be required to make any such        assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the        circumstances entitling the Borrower to require such  assignment and delegation cease to apply.         Each party hereto agrees that (a) an assignment required pursuant to this paragraph may be effected        pursuant to an Assignment and Assumption executed by the Borrower, the Administrative Agent        and  the  assignee  (or,  to  the  extent  applicable,  an  agreement  incorporating  an  Assignment  and        Assumption  by  reference  pursuant  to  an  Approved  Electronic  Platform  as  to  which  the        Administrative Agent and such parties are participants), and (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                                             47  

 

         deemed  to  have  consented  to  and  be  bound  by  the  terms  thereof; provided  that,  following  the        effectiveness of any such assignment, the other parties to such assignment agree to execute and        deliver  such documents  necessary  to  evidence  such  assignment  as  reasonably  requested  by  the        applicable Lender, provided that any such documents shall be without recourse to or warranty by        the parties thereto.                SECTION 2.20. Expansion Option.  The Borrower may from time to time elect to increase  the Revolving Commitments or enter into one or more tranches of term loans (each an “Incremental Term  Loan”), in each case in a minimum amount of $10,000,000 and increments of $5,000,000 in excess thereof  so long as, after giving effect thereto, the aggregate amount of such increases and all such Incremental Term  Loans does not exceed $200,000,000.  The Borrower  may arrange for any such increase or tranche of  Incremental Term Loans to be provided by one or more Lenders (but excluding (i) the Borrower or any of  its Subsidiaries or Affiliates or (ii) a natural person) (each Lender so agreeing to an increase in its Revolving  Commitment, or to participate in such Incremental Term Loans, an “Increasing Lender”), or by one or more  new banks, financial institutions or other entities (each such new bank, financial institution or other entity,  an “Augmenting Lender”; provided that no Ineligible Institution may be an Augmenting Lender); provided  that (i) each Augmenting Lender, shall be subject to the approval of the Borrower and the Administrative  Agent and (ii) (x) in the case of an Increasing Lender, the Borrower and such Increasing Lender execute an  agreement substantially in the form of Exhibit E hereto, and (y) in the case of an Augmenting Lender, the  Borrower and such Augmenting Lender execute an agreement substantially in the form of Exhibit F hereto.   No consent of any Lender (other than the Lenders participating in the increase or any Incremental Term  Loan) shall be required for any increase in Revolving Commitments or Incremental Term Loans pursuant  to this Section 2.20.  Increases and new Revolving Commitments and Incremental Term Loans created  pursuant to this Section 2.20 shall be made available to the Borrower pursuant to this Section 2.20 and shall  become effective on the date (any such effective date, an “Increase Effective Date”) agreed by the Borrower,  the Administrative Agent and the relevant Increasing Lenders or Augmenting Lenders, and, in each case,  the Administrative Agent shall notify each Lender thereof.  Notwithstanding the foregoing, no increase in  the Revolving Commitments (or in the Revolving Commitment of any Lender) or tranche of Incremental  Term  Loans  shall  become  effective  under  this  paragraph  unless, (i) on  the  Increase  Effective  Date,  (A) unless waived by the Required Lenders, the Administrative Agent shall have received a certificate dated  such date and executed by a Financial Officer of the Borrower certifying that (1) the representations and  warranties of the Borrower set forth in this Agreement are true and correct in all material respects (or in all  respects if such representation or warranty is qualified by materiality or Material Adverse Effect) on such  date (unless such representation and warranty relates to an earlier date, in which case such representation  and warranty shall be true and correct as of such earlier date) and (2) at the time and after giving effect to  such increase or Incremental Term Loans, as the case may be, no Default or Event of Default shall have  occurred and be continuing and (B) the Borrower shall be in compliance (on a Pro Forma Basis reasonably  acceptable  to  the  Administrative  Agent)  with  the  covenants  contained  in  Section 6.12  and  (ii) the  Administrative Agent shall have received documents consistent with those delivered on the Effective Date  as to the corporate power and authority of the Borrower to borrow hereunder after giving effect to such  increase or tranche of Incremental Term Loans.  On the Increase Effective Date of any Incremental Term  Loans,  each  relevant  Increasing  Lender  and  Augmenting  Lender  participating  in  such  tranche  of  Incremental Term Loans shall make such Incremental Term Loans to the Borrower in Dollars by making  such amounts available to the Administrative Agent’s designated account in immediately available funds  not  later  than  the  time  specified  by  the  Administrative  Agent.   On  the  Increase  Effective  Date  of  any  increase in the Revolving Commitments, (i) each relevant Increasing Lender and Augmenting Lender shall  make  available  to  the  Administrative  Agent  such  amounts  in  immediately  available  funds  as  the  Administrative Agent shall determine, for the benefit of the other Lenders, as being required in order to  cause, after giving effect to such increase and the use of such amounts to make payments to such other  Lenders,  each  Lender’s  portion  of  the  outstanding  Revolving  Loans  of  all  the  Lenders  to  equal  its  Applicable Percentage of such outstanding Revolving Loans and (ii) the Borrower shall be deemed to have                                             48  

 

   repaid and reborrowed all outstanding Revolving Loans as of the date of any increase in the Revolving  Commitments (with such reborrowing to consist of the Types of Revolving Loans, with related Interest  Periods if applicable, specified in a notice delivered by the Borrower, in accordance with the requirements  of Section 2.03).  The deemed payments made pursuant to clause (ii) of the immediately preceding sentence  shall be accompanied by payment of all accrued interest on the amount prepaid and, in respect of each  Eurodollar  Loan,  shall  be  subject  to  indemnification  by  the  Borrower  pursuant  to  the  provisions  of  Section 2.16 if the deemed payment occurs other than on the last day of the related Interest Periods.  The  Incremental Term Loans (a) shall rank pari passu in right of payment with the Revolving Loans, the initial  Term Loans and any other Incremental Term Loans, (b) shall mature on either Maturity Date and not have  any amortization and (c) shall be deemed to be Term Loans hereunder and shall be subject to the terms and  conditions of, and shall be evidenced by, this Agreement.  Nothing contained in this Section 2.20 shall  constitute, or otherwise be deemed to be, a commitment on the part of any Lender to increase its Revolving  Commitment hereunder, or provide Incremental Term Loans, at any time.                 SECTION 2.21. Defaulting Lenders.  Notwithstanding any provision of this Agreement to  the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so  long as such Lender is a Defaulting Lender:                (a)    fees shall cease to accrue on the Commitment of such Defaulting Lender pursuant         to Section 2.12(a);                (b)     any  payment  of  principal,  interest,  fees  or  other  amounts  received  by  the         Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory,         at  maturity  or  otherwise)  or  received  by  the  Administrative  Agent  from  a  Defaulting  Lender         pursuant  to  Section 9.08  shall  be  applied  at  such  time  or  times  as  may  be  determined  by  the         Administrative Agent as follows:  first, to the payment of any amounts owing by such Defaulting        Lender to the Administrative Agent hereunder; second, to the payment on a pro rata basis of any        amounts owing by such Defaulting Lender to any Issuing Bank or Swingline Lender hereunder;        third, to cash collateralize the Issuing Banks’ LC Exposure with respect to such Defaulting Lender        in accordance with this Section; fourth, as the Borrower may request (so long as no Default or        Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender        has  failed  to  fund  its  portion  thereof  as  required  by  this  Agreement,  as  determined  by  the        Administrative Agent; fifth, if so determined by the Administrative Agent and the Borrower, to be        held in a deposit account and released pro rata in order to (x) satisfy such Defaulting Lender’s        potential  future  funding  obligations  with  respect  to  Loans  under  this  Agreement  and  (y) cash        collateralize the Issuing Banks’ future LC Exposure with respect to such Defaulting Lender with        respect to future Letters of Credit issued under this Agreement, in accordance with this Section;         sixth, to the payment of any amounts owing to the Lenders, the Issuing Banks or Swingline Lender        as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the Issuing        Banks or Swingline Lender against such Defaulting Lender as a result of such Defaulting Lender’s        breach of its obligations under this Agreement or under any other Loan Document; seventh, so long        as no Default or Event of Default exists, to the payment of any amounts owing to the 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  or  under  any  other  Loan  Document;  and  eighth,  to  such  Defaulting  Lender  or  as        otherwise  directed  by  a  court  of  competent  jurisdiction;  provided  that  if  (x) such  payment  is  a        payment  of  the  principal  amount  of  any  Loans  or  LC  Disbursements  in  respect  of  which  such        Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made or the        related Letters of Credit were issued at a time when the conditions set forth in Section 4.02 were        satisfied  or  waived,  such  payment  shall  be  applied  solely  to  pay  the  Loans  of,  and  LC        Disbursements owed to, all non-Defaulting Lenders on a pro rata basis prior to being applied to the                                             49  

 

                 payment of any Loans of, or LC Disbursements owed to, such Defaulting Lender until such time  as all Loans and funded and unfunded participations in the Borrower’s obligations corresponding  to such Defaulting Lender’s LC Exposure and Swingline Loans are held by the Lenders pro rata in  accordance  with  the  Commitments  without  giving  effect  to  clause (d)  below.   Any  payments,  prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to  pay amounts owed by a Defaulting Lender or to post cash collateral pursuant to this Section shall  be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents  hereto;          (c)    the Commitment and Revolving Credit Exposure of such Defaulting Lender shall  not be included in determining whether the Required Lenders have taken or may take any action  hereunder  (including  any consent  to  any  amendment,  waiver  or  other  modification  pursuant  to  Section 9.02); provided, that any amendment, waiver or other modification requiring the consent  of all Lenders or all Lenders directly affected thereby shall not, except as otherwise provided in  Section 9.02, require the consent of such Defaulting Lender in accordance with the terms hereof;          (d)    if any Swingline Exposure or LC Exposure exists at the time such Lender becomes   a Defaulting Lender then:                 (i)    all  or  any  part  of  the  Swingline  Exposure  and  LC  Exposure  of  such         Defaulting Lender (other than the portion of such Swingline Exposure referred to in clause         (b) of the definition of such term) shall be reallocated among the non-Defaulting Lenders         in accordance with their respective Applicable Percentages but only to the extent that (A)         such reallocation does not, as to any non-Defaulting Lender, cause such non-Defaulting         Lender’s  Revolving  Credit  Exposure  to  exceed  its  Revolving  Commitment  and  (B)  no         Event of Default has occurred and is continuing;                 (ii)  if  the  reallocation  described  in  clause  (i)  above  cannot,  or  can  only         partially, be effected, the Borrower shall within one (1) Business Day following notice by         the Administrative Agent (x) first, prepay such Swingline Exposure and (y) second, cash         collateralize for the benefit of the applicable Issuing Banks only the Borrower’s obligations         corresponding to such Defaulting Lender’s LC Exposure (after giving effect to any partial         reallocation pursuant to clause (i) above) in accordance with the procedures set forth in         Section 2.06(j) for so long as such LC Exposure is outstanding;                 (iii)  if the Borrower cash collateralizes any portion of such Defaulting Lender’s         LC Exposure pursuant to clause (ii) above, the Borrower shall not be required to pay any         fees to such Defaulting Lender pursuant to Section 2.12(b) with respect to such Defaulting         Lender’s LC Exposure during the period such Defaulting Lender’s LC Exposure is cash         collateralized;                 (iv)   if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant         to clause (i) above, then the fees payable to the Lenders pursuant to Section 2.12(b) shall         be adjusted in accordance with such non-Defaulting Lenders’ Applicable Percentages; and                 (v)   if all or any portion of such Defaulting Lender’s LC Exposure is neither         reallocated  nor  cash  collateralized  pursuant  to  clause  (i)  or  (ii)  above,  then,  without         prejudice to any rights or remedies of any Issuing Bank or any other Lender hereunder, all         facility fees that otherwise would have been payable to such Defaulting Lender (solely with         respect to the portion of such Defaulting Lender’s Commitment that was utilized by such         LC Exposure) and letter of credit fees payable under Section 2.12(b) with respect to such                                       50  

 

                Defaulting Lender’s LC Exposure shall be payable to the applicable Issuing Banks until               and to the extent that such LC Exposure is reallocated and/or cash collateralized; and                (e)    so long as such Lender is a Defaulting Lender, the Swingline Lender shall not be        required to fund any Swingline Loan and no Issuing Bank shall be required to issue, amend or        increase any Letter of Credit, unless it is satisfied that the related exposure and the Defaulting        Lender’s then outstanding LC Exposure will be 100% covered by the Revolving Commitments of        the non-Defaulting Lenders and/or cash collateral will be provided by the Borrower in accordance        with Section 2.21(d), and Swingline Exposure related to any such newly made Swingline Loan or        LC Exposure related to any newly issued or increased Letter of Credit shall be allocated among        non-Defaulting Lenders in a manner consistent with Section 2.21(d)(i) (and such Defaulting Lender        shall not participate therein).                If (i) a Bankruptcy Event or a Bail-In Action with respect to a Parent of any Lender shall  occur following the date hereof and for so long as such event shall continue or (ii) the Swingline Lender or  any Issuing Bank has a good faith belief that any Lender has defaulted in fulfilling its obligations under one  or more other agreements in which such Lender commits to extend credit, the Swingline Lender shall not  be required to fund any Swingline Loan and no Issuing Bank shall be required to issue, amend or increase  any Letter of Credit, unless the Swingline Lender or such Issuing Bank, as the case may be, shall have  entered  into  arrangements  with  the  Borrower  or  such  Lender,  reasonably  satisfactory  to  the  Swingline  Lender  or  such  Issuing  Bank,  as  the  case  may  be,  to  defease  any  risk  to  it  in  respect  of  such  Lender  hereunder.                In the event that the Administrative Agent, the Borrower, the Swingline Lender and each  Issuing Bank each agrees that a Defaulting Lender has adequately remedied all matters that caused such  Lender to be a Defaulting Lender, then the Swingline Exposure and LC Exposure of the Lenders shall be  readjusted  to  reflect  the  inclusion  of  such  Lender’s  Commitment  and  on  such  date  such  Lender  shall  purchase at par such of the Loans of the other Lenders (other than Swingline Loans) as the Administrative  Agent shall determine may be necessary in order for such Lender to hold such Loans in accordance with its  Applicable Percentage.                                         ARTICLE III                                                                             Representations and Warranties                The Borrower represents and warrants to the Lenders that:                SECTION 3.01. Financial  Condition;  No  Material  Adverse  Change.   (a)  Each  of  the  financial statements described below (copies of which have heretofore been provided to the Administrative  Agent for distribution to the Lenders), have been prepared in accordance with GAAP consistently applied  throughout the periods covered thereby, are complete and correct in all material respects and present fairly  the financial condition and results from operations of the entities and for the periods specified, subject in  the case of interim company-prepared statements to normal year-end adjustments:                       (i)    audited  financial  statements  of  the  Borrower  and  its  consolidated               subsidiaries dated as of March 31, 2018, including related statements of income and cash               flows certified by Ernst & Young LLP, certified public accountants; and                       (ii)  unaudited  quarterly  financial  statements  of  the  Borrower  and  its               consolidated  subsidiaries  for  the  quarter  ended  September  30,  2018,  including  related               statements of income and cash flows for such period.                                              51  

 

                (b)    The  financial  and  operations  projections  of  the  Borrower  and  its  subsidiaries        through March 31, 2023 have been prepared in good faith based upon assumptions believed by the        Borrower to be reasonable at the time made.                (c)    Since March 31, 2018, there has been no material adverse change in the business,        assets, operations or financial condition of the Borrower and its subsidiaries taken as a whole.                SECTION 3.02. Organization; Existence.  Each Loan Party and each Significant Subsidiary  (a)  is  duly  organized,  validly  existing,  and  in  good  standing  under  the  laws  of  the  jurisdiction  of  its  organization, (b) has the corporate or other necessary power and authority and the legal right to own and  operate its property, to lease the property it operates as lessee, and to conduct the business in which it is  currently engaged, and (c) is duly qualified as a foreign entity and in good standing under the laws of each  jurisdiction where its ownership, lease, or operation of property or the conduct of its business requires such  qualification,  other  than  where  the  failure  to  be  so  qualified and  in  good  standing  would  not,  in  the  aggregate, have a Material Adverse Effect.                SECTION 3.03. Power; Authorization; Enforceable Obligations.  Each Loan Party has the  corporate or other necessary power and authority, and the legal right, to make, deliver, and perform the  Loan Documents to which it is a party and has taken all necessary corporate or other action to authorize the  execution, delivery, and performance by it of the Loan Documents to which it is a party. No consent or  authorization of, filing with, notice to or other act by or in respect of, any Governmental Authority or any  other  Person  is  required  in  connection  with  acceptance  of  extensions  of  credit  by  the  Borrower  or  the  making of the guaranties hereunder or with the execution, delivery, or performance of any Loan Documents  by the Loan Parties (other than those that have been obtained, such filings as are required by the SEC (or  the  laws,  rules,  and  regulations  administered  by  it),  and  to  fulfill  other  reporting  requirements  with  Governmental Authorities) or with the validity or enforceability of any Loan Document against the Loan  Parties. Each Loan Document to which it is a party constitutes a valid and legally binding obligation of  such Loan Party enforceable in accordance with their respective terms, subject to bankruptcy, insolvency,  fraudulent  transfer,  reorganization,  moratorium,  and  similar  laws  of  general  applicability  relating  to  or  affecting creditors’ rights and to general equity principles.                SECTION 3.04. Conflict.   The  execution,  delivery,  and  performance  of  the  Loan  Documents, the borrowings hereunder and the use of the proceeds of the Loans will not (a) violate any  Requirement of Law applicable to the Borrower, any Subsidiary Guarantor, or any Significant Subsidiary  (except those as to which waivers or consents have been obtained), (b) conflict with, result in a breach of  or constitute a default under (i) the articles of incorporation, bylaws, or other organizational documents of  such Loan Party, (ii) any material indenture, agreement, or other instrument to which such Loan Party is a  party or by which any of its properties may be bound, or (iii) any approval of any Governmental Authority  applicable to such Loan Party, or (c) result in, or require, the creation or imposition of any Lien on any of  their respective properties or revenues pursuant to any Requirement of Law.                SECTION 3.05. No Material Litigation.  Except as set forth on Schedule 3.05, no claim,  litigation, investigation, or proceeding of or before any arbitrator or Governmental Authority is pending or,  to the knowledge of a Responsible Officer of the Loan Parties, threatened in writing by or against any Loan  Party or any Significant Subsidiary or against any of their respective properties (a) that relates to the Loan  Documents or any of the transactions contemplated hereby or thereby or (b) as to which there is a reasonable  likelihood of an adverse determination and which, if adversely determined, is reasonably likely to have a  Material Adverse Effect.                SECTION 3.06. No  Default.   No  Default  or  Event  of  Default  has  occurred  and  is  continuing.                                             52  

 

                SECTION 3.07. Taxes.  Except as otherwise disclosed in the audited financial statements  delivered pursuant to Section 5.01, each Loan Party and each Significant Subsidiary has filed or caused to  be  filed  all  United  States  federal  income  Tax  returns  and  all  other  material  Tax  returns  that,  to  the  knowledge of a Responsible Officer of the Loan Parties, are required to be filed and has paid (a) all Taxes  shown   to  be  due  and  payable  on  said  returns  or  (b)  all  Taxes  shown  to  be  due  and  payable  on  any  assessments of which it has received notice made against it or any of its property and all other Taxes, fees,  or other charges imposed on it or any of its property by any Governmental Authority (other than any (i)  Taxes, fees, or other charges with respect to which the failure to pay, in the aggregate, would not have a  Material Adverse Effect or (ii) Taxes, fees, or other charges the amount or validity of which are currently  being contested and with respect to which reserves in conformity with GAAP have been provided on the  books of such Person).                SECTION 3.08. ERISA.  Except as is not reasonably likely to have a Material Adverse  Effect:                (a)    (i) No ERISA Event has occurred, and, to the best knowledge of the Loan Parties,         no event or condition has occurred or exists as a result of which any ERISA Event could reasonably         be expected to occur, with respect to any Plan; (ii) no “accumulated funding deficiency,” as such         term is defined in Section 302 of ERISA and Section 412 of the Code, whether or not waived, has         occurred  with  respect  to  any  Plan  (other  than  a  Multiemployer  Plan)  and  no  application  for  a         funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has         been made with respect to any Plan (other than a Multiemployer Plan); (iii) each Plan (other than         a Multiemployer Plan) has been maintained, operated, and funded in compliance with its own terms         and  in  material  compliance  with  the  provisions  of  ERISA,  the  Code,  and  any  other  applicable         federal or state laws; (iv) each Plan (other than a Multiemployer Plan) that is intended to qualify         under Section 401(a) of the Code has received a favorable determination letter from the Internal         Revenue Service or an application for such a letter is currently being processed by the Internal         Revenue Service with respect thereto and, to the best knowledge of the Loan Parties, nothing has         occurred that would prevent, or cause the loss of, such qualification, and (v) no lien in favor of the         PBGC or a Plan has arisen or is reasonably likely to arise on account of any Plan (other than a         Multiemployer Plan).                (b)    The  actuarial  present  value  of  all  “benefit  liabilities”  (as  defined  in  Section         4001(a)(16) of ERISA), whether or not vested, under each Single Employer Plan, as of the last         annual  valuation  date  prior  to  the  date  on  which  this  representation  is  made  or  deemed  made         (determined, in each case, in accordance with Financial Accounting Standards Board Statement         No.  87,  utilizing  the  actuarial  assumptions  used  in  such  Plan’s  most  recent  actuarial  valuation         report), did not exceed as of such valuation date the fair market value of the assets of such Plan         allocated to such accrued liabilities.                (c)    No member of the Consolidated Group nor any ERISA Affiliate has incurred, or,         to the best knowledge of the Loan Parties, could be reasonably expected to incur, any liability under         Title IV of ERISA (other than the obligation to pay PBGC premiums in accordance with Subtitle         A thereof) with respect to any Single Employer Plan, or any withdrawal liability under ERISA to         any Multiemployer Plan or Multiple Employer Plan. No member of the Consolidated Group nor         any ERISA Affiliate would become subject to any withdrawal liability under ERISA if any member         of  the  Consolidated  Group  or  any  ERISA  Affiliate  were  to  withdraw  completely  from  all         Multiemployer Plans and Multiple Employer Plans as of the valuation date most closely preceding         the date on which this representation is made or deemed made. No member of the Consolidated         Group nor any ERISA Affiliate has received any notification that any Multiemployer Plan is in         reorganization (within the meaning of Section 4241 of ERISA), is insolvent (within the meaning                                             53  

 

         of Section 4245 of ERISA), or has been terminated (within the meaning of Title IV of ERISA), and        no Multiemployer Plan is, to the best knowledge of the Loan Parties, reasonably expected to be in        reorganization, insolvent, or terminated. No member of the Consolidated Group nor any ERISA         Affiliate has engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA.                (d)    No prohibited transaction (within the meaning of Section 406 of ERISA or Section         4975 of the Code) or breach of fiduciary responsibility has occurred with respect to a Plan that has         subjected or may subject any member of the Consolidated Group or any ERISA Affiliate to any         liability under Sections 406, 409, 502(i), or 502(l) of ERISA or Section 4975 of the Code, or under         any agreement or other instrument pursuant to which any member of the Consolidated Group or         any ERISA Affiliate has agreed or is required to indemnify any person against any such liability.         There are no pending, or to the best knowledge of the Loan Parties, threatened claims, actions, or         lawsuits, or action by any Governmental Authority, with respect to any Plan.                (e)    No member of the Consolidated Group nor any ERISA Affiliate has any material         liability with respect to “expected post-retirement benefit obligations” within the meaning of the         Financial Accounting Standards Board Statement No. 106. Each Plan that is a welfare plan (as         defined in Section 3(1) of ERISA) to which Sections 601-609 of ERISA and Section 4980B of the         Code apply has been administered in compliance in all material respects with such sections.                SECTION 3.09. Governmental Regulations, Etc.  (a)  No part of the proceeds of the Loans  or Letters of Credit hereunder will be used, directly or indirectly, for the purpose of purchasing or carrying  any “margin stock” within the meaning of Regulation U, or for the purpose of purchasing or carrying or  trading in any securities. No indebtedness being reduced or retired out of the proceeds of the Loans or  Letters of Credit hereunder was or will be incurred for the purpose of purchasing or carrying any margin  stock within the meaning of Regulation U or any “margin security” within the meaning of Regulation T.  “Margin stock” within the meaning of Regulation U does not constitute more than 25% of the value of the  consolidated assets of the Borrower and its Subsidiaries. Neither the execution and delivery hereof by the  Borrower, nor the performance by it of any of the transactions contemplated by this Agreement (including,  without limitation, the direct or indirect use of the proceeds of the Loans or Letters of Credit) will violate  or result in a violation of the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934,  as amended, or regulations issued pursuant thereto, or Regulation T, U, or X.                (b)    None of the Loan Parties is registered as an “investment company” or required to         be  registered  as  an  “investment  company”  under  the  Investment  Company  Act  of  1940,  as         amended.                SECTION 3.10. Subsidiaries.  As of the Effective Date only, Schedule 3.10 constitutes a  list of all the Subsidiaries of the Loan Parties that are required to be disclosed in the Borrower’s filings with  the SEC pursuant to Regulation S-K as of such date (including a list of the Material Domestic Subsidiaries  of the Borrower, if any, as of such date), the jurisdiction of their incorporation and the direct or indirect  ownership interest of the Borrower therein.                SECTION 3.11. Purpose of Loans and Letters of Credit.  The Loans and Letters of Credit  will be used (a) to refinance certain existing Indebtedness, (b) to provide general working capital, or (c) for  other general corporate purposes of the Borrower and its Subsidiaries.                SECTION 3.12. Compliance with Laws; Contractual Obligations.  Each Loan Party and  each Significant Subsidiary is in compliance with all Requirements of Law (including Anti-Corruption  Laws and applicable Sanctions), except as otherwise disclosed in the Borrower’s most recent SEC filings;  provided that such failure to comply therewith would not, in the aggregate, reasonably be expected to have                                             54  

 

   a  Material  Adverse  Effect.  None  of  the  Loan  Parties  is  in  default  under  or  with  respect  to  any  of  its  contractual obligations, except as otherwise disclosed in the Borrower’s most recent SEC filings; provided  that such default could not reasonably be expected to have a Material Adverse Effect.                SECTION 3.13. Accuracy  and  Completeness  of  Information.   All  factual  information  (other  than  information  of  a  general  economic  or  industry  nature)  heretofore,  contemporaneously  or  hereafter furnished by or on behalf of the Loan Parties in writing to the Administrative Agent or any Lender  for purposes of or in connection with this Agreement or any other Loan Document, or any transaction  contemplated hereby or thereby, when taken as a whole, is or will be true and accurate in all material  respects as of the date stated therein and not incomplete by omitting to state any material fact necessary to  make  such  information  not  materially  misleading  in  light  of  the  circumstances  under  which  such  information was given; provided that, with respect to projected financial information, the Borrower only  represents  that  such  information  was  prepared  in  good  faith  based  upon  assumptions  believed  to  be  reasonable at the time. There is no fact now known to any of the Loan Parties that has, or could reasonably  be expected to have, a Material Adverse Effect, which fact has not been set forth herein, in the financial  statements  of  the  Loan  Parties  furnished  to  the  Administrative Agent  and/or  the  Lenders,  or  in  any  certificate, opinion, or other written statement made or furnished by the Loan Parties to the Administrative  Agent or the Lenders.  As of the Effective Date, to the best knowledge of the Borrower, the information  included in the Beneficial Ownership Certification provided on or prior to the Effective Date to any Lender  in connection with this Agreement is true and correct in all respects.                SECTION 3.14. Environmental Matters.  (a)  Except (i) as set forth on Schedule 3.14 or (ii)  as  otherwise  disclosed  in  the  Financials  delivered  pursuant  to Section  5.01,  to  the  knowledge  of  a  Responsible Officer of the Loan Parties or except where such violation or liability could not reasonably be  expected to have a Material Adverse Effect, the facilities and properties owned, leased, or operated by any  of the Loan Parties  and the Significant Subsidiaries (the “Properties”) do not contain any Materials of  Environmental Concern in amounts or concentrations that (i) constitute a violation of, or (ii) have resulted  in liability under, any Environmental Law.                (b)    Except  (i)  as  set  forth  on  Schedule  3.14  or  (ii)  as  otherwise  disclosed  in  the         Financials delivered pursuant to Section 5.01, to the knowledge of a Responsible Officer of the         Loan Parties or except where such violation could not reasonably be expected to have a Material         Adverse  Effect,  the  Properties  and  all  operations  of  the  Loan  Parties  and  the  Significant         Subsidiaries at the Properties are in compliance, and have in the last five years been in compliance,         in all material respects with all applicable Environmental Laws, and there is no contamination at         or under the Properties or violation of any Environmental Law with respect to the Properties or the         business operated by any of the Loan Parties (the “Business”).                (c)    Except  (i)  as  set  forth  on  Schedule  3.14  or  (ii)  as  otherwise  disclosed  in  the        Financials  delivered  pursuant  to  Section  5.01,  none  of  the  Loan  Parties  or  any  Significant        Subsidiary  has  received  any  written  notice  of  violation,  alleged  violation,  non-  compliance,        liability, or potential liability regarding environmental matters or compliance with Environmental        Laws with regard to any of the Properties or the Business, nor does any Responsible Officer of the        Loan  Parties  have  knowledge  of  any  such  threatened  notice,  except  where  any  such  violation,        noncompliance or liability could not reasonably be expected to have a Material Adverse Effect.                (d)    Except  (i)  as  set  forth  on  Schedule  3.14  or  (ii)  as  otherwise  disclosed  in  the        Financials delivered pursuant to Section 5.01, to the knowledge of a Responsible Officer of the        Loan Parties or except where such violation or liability could not reasonably be expected to have a        Material  Adverse  Effect,  Materials  of  Environmental  Concern  have  not  been  transported  or        disposed of from the Properties in violation of, or in a manner or to a location that has given rise to                                             55  

 

         liability under any Environmental Law, nor have any Materials of Environmental Concern been        generated, treated, stored, or disposed of at, on or under any of the Properties in violation of, or in         a manner that has given rise to liability under, any applicable Environmental Law.                (e)    Except (i) as set forth on Schedule 3.14 or (ii) as could not reasonably be expected         to have a Material Adverse Effect or (iii) as otherwise disclosed in the Financials delivered pursuant         to Section 5.01, no judicial proceeding or governmental or administrative action (other than those         not legally disclosable by the Loan Parties (that in any event could not be reasonably expected to         have a Material Adverse Effect) unless such restriction was imposed at the request of the Loan         Parties) is pending or, to the knowledge of a Responsible Officer of any Loan Party, threatened,         under any Environmental Law to which any of the Loan Parties is or will be named as a party with         respect to the Properties or the Business, nor are there any consent decrees or other decrees, consent         orders,  administrative  orders  or  other  orders,  or  other  administrative  or  judicial  directives         outstanding under any Environmental Law with respect to the Properties or the Business.                (f)    Except  (i)  as  set  forth  on  Schedule  3.14  or  (ii)  as  otherwise  disclosed  in  the         Financials delivered pursuant to Section 5.01, to the knowledge of a Responsible Officer of the        Loan  Parties or except where such violation or liability could not reasonably be expected to have        a  Material  Adverse  Effect,  there  has  been  no  release  or  threat of  release  of  Materials  of        Environmental Concern at or from the Properties, or arising from or related to the operations of any        of the Loan Parties in connection with the Properties or otherwise in connection with the Business,        in violation of or in amounts or in a manner requiring remediation under Environmental Laws.                SECTION 3.15. Anti-Corruption Laws and Sanctions.  The Borrower has implemented and  maintains in effect policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries  and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable  Sanctions.   None  of  (a)  the  Borrower,  any  Subsidiary  or  any  of their  respective  directors,  officers  or  employees or (b) to the knowledge of the Borrower, any agent of the Borrower or any Subsidiary that will  act in any capacity in connection with or benefit from the credit facilities established hereby, is a Sanctioned  Person.   No  Borrowing  or  Letter  of  Credit,  use  of  proceeds  or  other  transaction  contemplated  by  this  Agreement will violate Anti-Corruption Laws or applicable Sanctions.                SECTION 3.16. EEA  Financial  Institutions.   No  Loan  Party  is  an  EEA  Financial  Institution.                                         ARTICLE IV                                                                                      Conditions                SECTION 4.01. Effective Date.  The obligations of the Lenders to make Loans and of each  Issuing Bank to issue Letters of Credit hereunder shall not become effective until the date on which each  of the following conditions is satisfied (or waived in accordance with Section 9.02):                (a)    The Administrative Agent (or its counsel) shall have received from (i) each party         hereto either (A) a counterpart of this Agreement signed on behalf of such party or (B) written         evidence  satisfactory  to  the  Administrative  Agent  (which  may  include  telecopy  or  electronic         transmission of a signed signature page of this Agreement) that such party has signed a counterpart         of this Agreement and (ii) duly executed copies of the Loan Documents.                (b)    The  Administrative  Agent  shall  have  received  favorable  written opinions         (addressed to the Administrative Agent and the Lenders and dated the Effective Date) of (i) Hunton                                              56  

 

         Andrews Kurth LLP, outside counsel for the Loan Parties and (ii) Preston D. Wigner, internal        counsel for the Loan Parties.  The Borrower hereby requests such counsel to deliver such opinion.                (c)    The  Administrative  Agent  shall  have  received  all  documents  and certificates        described  in  the  list  of  closing  documents  attached  as  Exhibit G,  all  in  form  and  substance        reasonably satisfactory to the Administrative Agent and its counsel.                (d)    The  Administrative  Agent  shall  have  received  a  certificate,  dated  the  Effective        Date and signed by the President, a Vice President or a Financial Officer of the Borrower, certifying        that (i) the representations and warranties of the Borrower set forth in this Agreement are true and         correct in all material respects (or in all respects if such representation or warranty is qualified by         materiality or Material Adverse Effect) and (ii) no Default or Event of Default has occurred and is         continuing.                (e)    The Administrative Agent shall have received evidence satisfactory to it that the         credit facilities evidenced by the Existing Credit Agreement have been terminated and cancelled         and all indebtedness thereunder shall have been fully repaid (except to the extent being so repaid         with the initial Loans).                (f)    The Administrative Agent shall have received evidence reasonably satisfactory to         it that all governmental and third party approvals necessary in connection with the Transactions         have been obtained and are in full force and effect.                (g)    (i) The Administrative Agent shall have received, at least five (5) days prior to the         Effective  Date,  all  documentation and  other  information  regarding  the  Borrower  requested  in         connection  with  applicable  “know  your  customer”  and  anti-money laundering  rules  and         regulations, including the Patriot Act, to the extent requested in writing of the Borrower at least ten         (10) days prior to the Effective Date and (ii) to the extent the Borrower qualifies as a “legal entity         customer” under the Beneficial Ownership Regulation, at least five (5) days prior to the Effective         Date, any Lender that has requested, in a written notice to the Borrower at least ten (10) days prior         to the Effective Date, a Beneficial Ownership Certification in relation to the Borrower shall have         received such Beneficial Ownership Certification (provided that, upon the execution and delivery         by such Lender of its signature page to this Agreement, the condition set forth in this clause (g)         shall be deemed to be satisfied).                (h)    The Administrative Agent, the Lenders and their applicable Affiliates shall have         received (or provisions reasonably satisfactory to the Administrative Agent shall have been made         for  the  concurrent  payment  of)  all  fees  and  other  amounts  due  and  payable  on  or  prior  to  the         Effective  Date,  including,  to  the  extent  invoiced,  reimbursement  or  payment  of  all  reasonable,         documented out-of-pocket expenses required to be reimbursed or paid by the Borrower hereunder         on or prior to the Effective Date.   The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such  notice shall be conclusive and binding.                SECTION 4.02. Each Credit Event.  The obligation of each Lender to make a Loan on the  occasion of any Borrowing, and of each Issuing Bank to issue, amend, renew or extend any Letter of Credit,  is subject to the satisfaction of the following conditions:                (a)    The representations and warranties of the Borrower set forth in this Agreement         shall be true and correct in all material respects (or in all respects if the applicable representation                                              57  

 

         and warranty is qualified by Material Adverse Effect or other materiality qualifier) on and as of the        date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of        Credit, as applicable.                (b)    At  the  time  of  and  immediately  after  giving  effect  to  such  Borrowing  or  the        issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Default or        Event of Default shall have occurred and be continuing.   Each  request  for  a  Borrowing  (but  not  any  Interest  Election  Request)  and  each  issuance,  amendment,  renewal or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by  the Borrower on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section.                                         ARTICLE V                                                                                 Affirmative Covenants                Until the Commitments have expired or been terminated and the principal of and interest  on each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit shall have  expired or terminated, in each case, without any pending draw, and all LC Disbursements shall have been  reimbursed, the Borrower covenants and agrees with the Lenders that the Borrower shall, and shall cause  each Material Domestic Subsidiary and each Significant Subsidiary (other than in the case of Sections 5.01,  5.02 and 5.03), to:                SECTION 5.01. Financial  Statements.   Furnish,  or  cause  to  be  furnished,  to  the  Administrative Agent for prompt distribution to the Lenders:                (a)    Audited Financial Statements. As soon as available, but in any event within ninety        (90) days after the end of each fiscal year, an audited consolidated balance sheet of the Borrower        and its subsidiaries as of the end of the fiscal year and the related consolidated statements of income,        retained  earnings,  shareholders’  equity,  and  cash  flows  for  such  fiscal  year,  audited  by  an        independent certified public accounting firm of nationally recognized standing, setting forth in each        case in comparative form the figures for the previous year, reported without a “going concern” or        like qualification or exception, or qualification indicating that the scope of the audit was inadequate        to permit such independent certified public accountants to certify such financial statements without        such qualification.                (b)    Unaudited  Financial  Statements.  As  soon  as  available,  but  in  any  event  within        forty-five  (45)  days  after  the  end  of  each  of  the  first  three  (3)  fiscal  quarters,  an  unaudited        consolidated balance sheet of the Borrower and its subsidiaries as of the end of the quarter and        related unaudited consolidated statements of income, retained earnings, shareholders’ equity, and        cash flows for such quarterly period and for the fiscal year to date; in each case setting forth in        comparative form the consolidated figures for the corresponding period or periods of the preceding        fiscal year or the portion of the fiscal year ending with such period, as applicable, in each case        subject to normal recurring year-end audit adjustments.   All such financial statements shall be complete and correct in all material respects (subject, in the case of  interim statements, to normal recurring year-end audit adjustments) and shall be prepared in accordance  with GAAP and further accompanied by a description of, and an estimation of the effect on the financial  statements on account of, a change in the application of accounting principles as provided in Section 1.04.  Information   required  to  be  delivered  pursuant  to  Section 5.01(a),  5.01(b)  or  Section  5.02(b)  shall  be  deemed  to  have  been  delivered  on  the earlier  of  (i)  the  date  such  information,  or  one  or  more  annual,                                              58  

 

   quarterly or other periodic reports containing such information, shall be available on the website of the SEC  at http://www.sec.gov; (ii) on the date on which the Borrower posts such information (or such quarterly or  annual  or  other  periodic  report),  or  provides  a  link  thereto,  on  the  Borrower’s  website  at  http://www.universalcorp.com; (iii) the date on which such documents are posted on the Borrower’s behalf  on Intralinks (or such other 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; or (iv) the date such documents are furnished to the Administrative Agent.                SECTION 5.02. Certificates; Other Information.  Furnish, or cause to be furnished, to the  Administrative Agent for prompt distribution to the Lenders:                (a)    Officer’s Certificate. Concurrently with the delivery of the financial statements        referred  to  in  Sections  5.01(a)  and  5.01(b)  above,  a  certificate  of  a  Responsible  Officer  of  the        Borrower  stating  that,  to  such  Responsible  Officer’s  knowledge and  belief,  (i)  the  financial        statements fairly present in all material respects the financial condition of the parties covered by        such financial statements, and (ii) no Default or Event of Default has occurred and is continuing        except  to  the  extent  waived  in  accordance  with  the  provisions  hereof  or  as  specified  in  such        certificate.  Such  certificate  shall  include  the  calculations  required  to  indicate  compliance  with        Section 5.07. A form of Officer’s Certificate is attached as Exhibit J.                 (b)    Public Information. Within thirty days after the same are sent, copies of all reports        (other than those otherwise provided pursuant to subsection 5.01) and other financial information        that any Loan Party sends to its public stockholders, and within thirty days after the same are filed,        copies of all financial statements and non-confidential reports that any Loan Party may make to, or        file with, the SEC or any successor or analogous United States Governmental Authority; provided,        however, that the Loan Parties shall not be required to furnish to the Administrative Agent (i) any        report filed by on or behalf of officers, directors or 10% stockholders under Section 16 of the        Securities and Exchange Act of 1934, as amended, (ii) any Form S-8 Registration Statement (or        similar successor form) filed by a Loan Party under the Securities Act of 1933, as amended, and         (iii) any Form 11-K Annual Report Form (or similar successor form) filed under the Securities and         Exchange Act of 1934, as amended, with respect to any employee benefit plan of a Loan Party.                 (c)    Other Information. Promptly following any request therefor, (x) such additional        financial and other information regarding the business, operations or financial condition of the        Borrower  or  any  of  its  Subsidiaries  as  the  Administrative  Agent  or  any  Lender  (through  the        Administrative  Agent),  may  from  time  to  time  reasonably  request  and  (y)  information  and        documentation reasonably requested by the Administrative Agent or any Lender for purposes of        compliance  with  applicable  “know  your  customer”  and  anti-money laundering  rules  and         regulations, including the Patriot Act and the Beneficial Ownership Regulation.                SECTION 5.03. Notices.   Give  notice  to  the  Administrative  Agent  that  shall  promptly  transmit such notice to each Lender of:                (a)    Defaults. Promptly (but in any event within three (3) Business Days) after any        Responsible Officer of any Loan Party obtains knowledge thereof, the occurrence of any Default        or Event of Default.                (b)    Legal Proceedings. Promptly following the receipt by a Responsible Officer of any        Loan Party of written notification relating thereto, any litigation, or any investigation or proceeding        (including without limitation, any environmental proceeding) known to a Responsible Officer of a        Loan Party relating to a Loan Party or any Significant Subsidiary affecting the Borrower or any                                             59  

 

         Significant Subsidiary as to which there is a reasonable likelihood of an adverse determination and        which, if adversely determined, would reasonably be expected to have a Material Adverse Effect.                (c)    ERISA.  Upon  a  member  of  the  Consolidated  Group  or  any  ERISA  Affiliate        obtaining knowledge thereof, (i) any event or condition that constitutes, or might reasonably lead        to, an ERISA Event, except an ERISA Event that would not be reasonably likely to have a Material        Adverse Effect; (ii) with respect to any Multiemployer Plan, the receipt of notice as prescribed in        ERISA  or  otherwise  of  any  withdrawal  liability  assessed  against  any  ERISA  Affiliate,  or  of  a        determination  that  any  Multiemployer  Plan  is  in  reorganization or  insolvent  (both  within  the        meaning of Title IV of ERISA); (iii) the failure to make full payment on or before the due date        (including extensions) thereof of all amounts that a member of the Consolidated Group or any        ERISA Affiliate is required to contribute to each Plan pursuant to its terms and as required to meet        the minimum funding standards set forth in ERISA and the Code with respect thereto, except in the        event that such failure would not be reasonably likely to have a Material Adverse Effect; or (iv)        any change in the funding status of any Plan that could reasonably be expected to have a Material        Adverse Effect, in each case, together with a description of any such event or condition or a copy        of any such notice and a statement by the chief financial officer of the Borrower briefly setting        forth the details regarding such event, condition, or notice, and the action, if any, that has been or        is being taken or is proposed to be taken by the Borrower with respect thereto. Promptly upon        request,  the  Borrower,  any  Material  Domestic  Subsidiary,  and  any  Significant  Subsidiary shall        furnish the Administrative Agent and the Lenders with such additional information concerning any        Plan as may be reasonably requested, including, but not limited to, copies of the most recent annual        report/return (Form 5500 series), as well as all schedules and attachments thereto required to be        filed with the Department of Labor and/or the IRS pursuant to ERISA and the Code, respectively,        for such “plan year” (within the meaning of Section 3(39) of ERISA).                (d)    Other. Promptly, any other development or event that a Responsible Officer of the        Borrower determines is reasonably likely to have a Material Adverse Effect.    Each notice pursuant to this Section 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  proposes to take with respect thereto.                SECTION 5.04. Maintenance of Existence; Compliance with Law; Maintenance of Certain  Policies and Procedures; Performance of Material Contractual Obligations.  (a)  Preserve, renew, and keep  in full force and effect its corporate existence and, except to the extent that the failure to do so could not  reasonably be expected to have a Material Adverse Effect, take all reasonable action to maintain all rights,  privileges, licenses, and franchises necessary or required in the normal conduct of its business.                (b)    Comply  with  all  Requirements  of  Law  (including,  without  limitation,  all         Environmental Laws and ERISA matters) applicable to it except to the extent that failure to comply         therewith would not, in the aggregate, have a Material Adverse Effect.                (c)    Maintain  in  effect  and  enforce  policies  and  procedures  designed  to  ensure         compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and         agents with Anti-Corruption Laws and applicable Sanctions.                (d)    Fully  perform  and  satisfy  all  of  its  obligations  under  all  of  its  contractual         obligations except to the extent that failure to perform and satisfy such obligations would not, in         the aggregate, have a Material Adverse Effect.                                              60  

 

                SECTION 5.05. Maintenance of Property; Insurance.  Keep all material property useful and  necessary in its business in reasonably good working order and condition (ordinary wear and tear excepted);  maintain  with  financially  sound  and  reputable  insurance  companies  casualty,  liability,  and  such  other  insurance  (that  may  include  plans  of  self-insurance)  with  such coverage  and  deductibles,  and  in  such  amounts  as  may  be  consistent  with  prudent  business  practice  and  in  any  event  consistent  with  normal  industry practice; and furnish to the Administrative Agent, upon written request, full information as to the  insurance carried.                SECTION 5.06. Inspection  of  Property;  Books  and  Records;  Discussions.   Keep  proper  books of records and account in accordance with GAAP; and permit, during regular business hours upon  reasonable  prior  notice  by  the  Administrative  Agent  and  in  compliance  with  the  reasonable  security  procedures  of  the  Borrower,  the  Administrative  Agent  (which  may  be  accompanied  by  one  or  more  Lenders) to visit and inspect any of its properties and examine and make abstracts (including photocopies)  from any of its books and records (other than materials protected by the attorney-client, work product, or  other privilege and materials that the Loan Parties may not disclose without violation of a confidentiality  obligation binding upon a Loan Party or any Significant Subsidiary) at any reasonable time, and to discuss  the business, operations, properties, and financial and other condition of the members of the Consolidated  Group with officers and employees of the members of the Consolidated Group and with their independent  certified public accountants (provided that the Borrower shall have the right to be present at such meetings).  The cost of the inspection referred to in the preceding sentence shall be for the account of the Lenders  unless an Event of Default has occurred and is continuing, in which case the cost of such inspection shall  be for the account of the Borrower.                SECTION 5.07. Financial Covenants.  (a)  Total Leverage Ratio.  Maintain a ratio (the  “Total Leverage Ratio”), as of the end of each fiscal quarter, of (i) Consolidated Total Indebtedness at such  date to (ii) Consolidated EBITDA for the period of four (4) consecutive fiscal quarters ending on such date  of not more than 3.00 to 1.00.                (b)    Consolidated Tangible Net Worth.  Maintain Consolidated Tangible Net Worth, as        of the end of each fiscal quarter, of not less than $1,000,000,000.                SECTION 5.08. Use  of  Proceeds.   Use  the  Loans  solely  for  the  purposes  provided  in  Section 3.11.                SECTION 5.09. Additional Subsidiary Guarantors.  Cause each of the Borrower’s Material  Domestic Subsidiaries that is not a party to the Subsidiary Guaranty, whether newly formed, after acquired,  or otherwise existing, to promptly, and in any event within 30 days from such formation or acquisition,  become  a  “Subsidiary  Guarantor”  thereunder  by  way  of  execution of  the  Subsidiary  Guaranty  or  a  supplement thereto.                SECTION 5.10. Payment of Obligations.  Pay, discharge, or otherwise satisfy at or before  maturity or before they become delinquent, as the case may be, in accordance with industry and historical  company  practice  (subject,  where  applicable,  to  specified  grace  periods)  all  its  obligations  (including,  without limitation, all Taxes) of whatever nature and any additional costs that are imposed as a result of  any failure to so pay, discharge, or otherwise satisfy such obligations, except when the amount or validity  of such obligations and costs is currently being contested in good faith by appropriate proceedings and  reserves, if applicable, in conformity with GAAP, with respect thereto have been provided on the books of  the Borrower or its Subsidiaries, as the case may be, and except to the extent that failure to pay, discharge,  or otherwise satisfy such obligations would not reasonably be expected to have Material Adverse Effect.                                              61  

 

                SECTION 5.11. Further Assurances.  The Borrower will cooperate with the Administrative  Agent in connection with the publication of certain materials and/or information provided by or on behalf  of the Borrower to the Administrative Agent and Lenders (collectively, “Information Materials”) pursuant  to this Article V and will identify Information Materials (i) that are either available to the public or not  material with respect to the Borrower and its Subsidiaries or any of their respective securities for purposes  of  United  States  federal  and  state  securities  laws,  as  “Public Information”  and  (ii)  that  are  not  Public  Information  as  “Private  Information”.  The  parties  hereby  agree that  any  Information  Material  shall  be  deemed  to  be  Private  Information  unless  such  information  is  (x)  identified  by  the  Borrower  as  Public  Information or is (y) known with certainty to the Administrative Agent to be available on the Borrower’s  internet website.                                         ARTICLE VI                                                                                  Negative Covenants                Until the Commitments have expired or terminated and the principal of and interest on each  Loan  and  all  fees  payable  hereunder  have  been  paid  in  full  and all  Letters  of  Credit  have  expired  or  terminated and all LC Disbursements shall have been reimbursed, the Borrower covenants and agrees with  the  Lenders  that  the  Borrower  shall  not,  and  shall  not  permit  any  Material  Domestic  Subsidiary,  any  Significant Subsidiary, or in the case of Section 6.06 and Section 6.08, any Subsidiary, to:                SECTION 6.01. Liens.  Contract, create, incur, assume, or permit to exist any Lien with  respect  to  any  of  its  respective  property  or  assets  of  any  kind  (whether  real  or  personal,  tangible  or  intangible), whether now owned or hereafter acquired, except for Permitted Liens.                SECTION 6.02. Consolidation, Merger, Sale, Etc. Enter into a transaction of merger with  or consolidation into any Person or sell, lease, or otherwise dispose of all or substantially all of its assets of  the Borrower and its Subsidiaries (taken as a whole), except:                 (a)    any Subsidiary Guarantor may be merged with or consolidated into, or may sell,         lease,  or  dispose  of  all  or  substantially  all  of  its  assets  to the  Borrower  or  another  Subsidiary         Guarantor;                (b)    any Subsidiary may be merged with or consolidated into any Person that is or will         upon the consummation of such merger or consolidation be a Loan Party (subject to compliance         with Section 5.09 of this Agreement within the timeframe set forth therein);                (c)    any Subsidiary that is not a Loan Party may be merged with or consolidated into,         or may sell, lease, or dispose of all or substantially all of its assets to any other Subsidiary that is         not a Loan Party;                (d)    any  Person  may  be  merged  into  or  consolidated  with  the  Borrower  or  any  Subsidiary of the Borrower, provided (i) in the case of any such merger with or consolidation into the  Borrower, the Borrower is the surviving Person, (ii) in the case of any such merger with or consolidation  into  a  Subsidiary  Guarantor,  the  Subsidiary  Guarantor  is  the  surviving  Person  (iii)  such  merger  or  consolidation does not violate any other provision of this Agreement, (iv) no Default or Event of Default  shall have occurred and be continuing or would result therefrom and (v) the representations and warranties  contained in Article III of this Agreement shall, except to the extent that they relate solely to an earlier date,  be true in all material respects (or in all respects if such representation or warranty is qualified by materiality  or Material Adverse Effect) with the same effect as though such representations and warranties had been  made at such time.                                              62  

 

                SECTION 6.03. Sale Leasebacks.  Enter into Sale and Lease-Back Transactions relating to  the same or similar Property for a term of more than three (3) years, unless the sum of (i) the aggregate  amount of such transactions, measured using in each case the greater of (a) the fair market value of the  assets sold or (b) the selling price, sold after September 30, 2011, and (ii) the aggregate principal amount  then outstanding secured by liens described in clause (u) of the definition of Permitted Liens, does not  exceed Fifty Million Dollars ($50,000,000).                SECTION 6.04. Sale of Subsidiaries.  Notwithstanding anything to the contrary in Section  6.02, the Borrower shall have the right to sell or otherwise dispose of any Subsidiary (or all or substantially  all of the assets thereof), provided that such sale or other disposition does not violate any other provision  of this Agreement and immediately before and immediately after such sale or other disposition (i) there  shall exist no Default or Event of Default, (ii) no Material Adverse Effect shall result therefrom, and (iii)  the representations and warranties contained in Article 3 of this Agreement shall, except to the extent that  they relate solely to an earlier date, be true in all material respects (or in all respects if such representation  or warranty is qualified by materiality or Material Adverse Effect) with the same effect as though such  representations and warranties had been made at such time.                SECTION 6.05. Transactions with Affiliates.  Enter into any material transaction or series  of transactions, whether or not in the ordinary course of business, with any of its Affiliates, except:                (a)    transactions  on  terms  and  conditions  that,  in  the  reasonable  opinion  of  the         Borrower, are not less favorable than could be obtained in a comparable arm’s-length transaction         with an unrelated third party;                (b)    transactions between or among the Borrower and its Subsidiaries not involving any         other Affiliate; and                (c)    transactions pursuant to any agreement in existence prior to the Effective Date, or         any  amendment  thereto,  provided  the  terms  of  such  amendment  are  not  less  favorable  to  the         Borrower or its Subsidiaries than the terms of the relevant agreement prior to such amendment.   A transaction or series of transactions involving aggregate consideration of less than $10,000,000 will not  be  considered  material  for  the  purposes  of  this  Section  6.05.  This  Section  6.05  shall  not  prohibit  the  declaration or payment of any dividends or distributions by the Borrower to its shareholders generally, or  to holders of a particular class of shares.                SECTION 6.06. Investments.  Directly or indirectly, make any Investment, except for (i)  Investments that are consistent with the Borrower’s past practices or in connection with or ancillary to the  Borrower’s  existing  lines  of  business  as  of  the  Effective  Date and  (ii)  other  Investments  which  in  the  aggregate do not exceed $300,000,000 at any one time outstanding.                SECTION 6.07. Use of Proceeds.  The Borrower will not request any Borrowing or Letter  of Credit, and the Borrower shall not use, and shall procure that its Subsidiaries and its or their respective  directors, officers, employees and agents shall not use, the proceeds of any Borrowing or Letter of Credit  (a) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money,  or anything else of value, to any Person in violation of any Anti-Corruption Laws, (b) for the purpose of  funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person,  or in any Sanctioned Country or (c) in any manner that would result in the violation of any Sanctions  applicable to any party hereto.                                              63  

 

                SECTION 6.08. Subsidiary  Indebtedness.   As  of  the  end  of  each  fiscal  quarter, the  Borrower will not permit any Subsidiary to have outstanding any Indebtedness, except:                (a)    the Obligations;                (b)    Indebtedness  existing  on  the  Effective  Date  and  extensions,  renewals  and         replacements of any such Indebtedness with Indebtedness of a similar type that does not increase         the  outstanding  principal  amount  thereof  (other  than  for  accrued  interest,  premiums,  costs  and         expenses); provided, however, that if the principal amount of such Indebtedness is increased (other         than for accrued interest, premiums, costs and expenses), Indebtedness up to the original principal         amount outstanding on the date hereof shall be permitted under this clause (b), with any increased         Indebtedness to be permitted only if permitted under a subsequent clause of this Section 6.08;                (c)    Indebtedness of any Subsidiary to the Borrower or any other Subsidiary;                (d)    Support Obligations by any Subsidiary of Indebtedness of the Borrower or any         other Subsidiary;                (e)    Indebtedness of any Subsidiary incurred to finance the acquisition, construction or         improvement of any fixed or capital assets, including any Capital Leases and any Indebtedness         assumed in connection with the acquisition of any such assets or secured by a Lien on any such         assets  prior  to  the  acquisition  thereof,  and  extensions,  renewals  and  replacements  of  any  such         Indebtedness that do not increase the outstanding principal amount thereof (other than for accrued         interest, premiums, costs and expenses);                (f)    Indebtedness of any Subsidiary with respect to Sale and Leaseback Transactions         permitted by Section 6.03; and                (g)    other Indebtedness of any Subsidiary so long as at the end of such quarter, the         principal  amount  of  such  Indebtedness  does  not,  in  the  aggregate,  exceed  the  greater  of  (i)         $300,000,000 and (ii) 15% of Consolidated Total Tangible Assets.                                        ARTICLE VII                                                                                   Events of Default                An Event of Default shall exist upon the occurrence of any of the following specified events  (each an “Event of Default”):                (a)    Payment.                       (i)    Default in the payment when due of any principal of any of the Loans or               fail to reimburse any Issuing Bank for any LC Exposure when due (in each case, whether               at maturity, by reason of acceleration or otherwise) in accordance with the terms hereof; or                       (ii)  Default, and such defaults shall continue for five (5) or more Business               Days, in the payment when due of any interest on the Loans or of any fees or other amounts               owing hereunder, under any of the other Loan Documents or in connection herewith or               therewith; or                                              64  

 

                        (b)    Representations. Any representation, warranty, or statement made in any of the  Loan Documents, or in any statement or certificate delivered or required to be delivered pursuant  hereto or thereto shall prove untrue in any material respect on the date as of which it was made or  deemed made; or          (c)    Covenants.                 (i)    Default in the due performance or observance of any term, covenant, or         agreement contained in Section 5.03(a), 5.07, 5.08, or Article VI; or                 (ii)  Default in the due performance or observance by it of any term, covenant,         or agreement (other than those referred to in subsections (a), (b), or (c)(i) of this Section         7.01) contained in this Agreement and such default shall continue unremedied for a period         of at least 30 days after the earlier of (A) a Responsible Officer of a Loan Party becoming         aware of such default or (B) notice thereof to the Borrower by the Administrative Agent;         or          (d)    Bankruptcy, Etc. Any Bankruptcy Event shall occur with respect to a Loan Party  or a Significant Subsidiary; or          (e)    Defaults under Other Agreements.                 (i)    Any default made in the payment (beyond the applicable grace period with         respect thereto, if any) in respect of any Indebtedness of any Loan Party or any Significant         Subsidiary  in  an  aggregate  principal  amount  of  Twenty-Five  Million  Dollars         ($25,000,000), or more; provided that Indebtedness of a Significant Subsidiary organized         under  the  laws  of  a  jurisdiction  other  than  the  United  States  of  America  or  a  political         subdivision thereof shall not be included in the calculation of such Twenty-Five Million         Dollars ($25,000,000), so long as:                        (A)   the obligation to make such payment is being actively contested                in good faith and such Significant Subsidiary is holding in escrow an amount of                cash equal to or greater than the disputed payment;                       (B)    the  Borrower  or  any  other  Loan  Party  or  such  Significant                Subsidiary is unable to realize the benefits of ownership of such foreign Subsidiary                because of  war, civil commotion, insurrection, revolution, riot, confiscation, or                force majeure actions caused by a government or actions against a government;                       (C)    the Borrower or any other Loan Party or Significant Subsidiary                has a colorable claim in the nature of common law, equitable, or statutory set-off                against the Person to whom such Indebtedness is owing; or                        (D)    the  aggregate  amount  of  all  such  obligations  does  not  exceed                Thirty Million Dollars ($30,000,000); or                 (ii)  The maturity of any Indebtedness of any Loan Party or any Significant         Subsidiary in an aggregate principal amount of Twenty-Five Million Dollars ($25,000,000)         or  more  shall  be  accelerated;  provided  that  Indebtedness  of  a  Significant  Subsidiary         organized under the laws of a jurisdiction other than the United States of America or a                                        65  

 

                        political subdivision thereof shall not be included in the calculation of such Twenty-Five         Million Dollars ($25,000,000) so long as:                       (A)    the obligation to make such payment is being actively contested                in good faith and such Significant Subsidiary is holding in escrow an amount of                cash equal to or greater than the disputed payment;                       (B)    the  Borrower  or  any  other  Loan  Party  is  unable  to  realize  the                benefits of ownership of such foreign Subsidiary because of war, civil commotion,                insurrection, revolution, riot, confiscation, or force majeure actions caused by a                government or actions against a government,                       (C)    such Significant Subsidiary has a colorable claim in the nature of                common  law,  equitable,  or  statutory  set-off  against  the  Person to  whom  such                Indebtedness is owing, or                       (D)    the  aggregate  amount  of  all  such  obligations  under  this  clause                7.01(e)(ii) does not exceed Thirty Million Dollars ($30,000,000); or                 (iii) Any  default  (beyond  any  applicable  grace  period  with  respect  thereto)         made  in  any  payment  of  an  amount  in  excess  of  Five  Million  Dollars  ($5,000,000)  in         respect of any Hedging Agreement between the Borrower and any Lender, or any Affiliate         of a Lender; or          (f)    Judgments. Any Loan Party or any Significant Subsidiary shall fail within thirty  (30)  days  of  the  date  due  and  payable  to  pay,  bond,  or  otherwise  discharge  any  judgment,  settlement,  or  order  for  the  payment  of  money  which  judgment,  settlement,  or  order,  when  aggregated  with  all  other  such  judgments,  settlements,  or  orders  due  and  unpaid  at  such  time,  exceeds Twenty-Five Million Dollars ($25,000,000) (to the extent not covered by an unaffiliated  third party insurer that has not denied coverage), and that is not stayed on appeal (or for which no  motion for stay is pending) or is not otherwise being executed; provided that judgments resulting  from the failure of any Loan Party or any Significant Subsidiary to honor its obligations in respect  of a guaranty of obligations of a subsidiary organized under the laws of a jurisdiction other than  the  United  States  of  America  or  a  political  subdivision  thereof  shall  not  be  included  in  the  calculation of such Twenty-Five Million Dollars ($25,000,000) if:                 (i)    the  Loan  Party  or  such  Significant  Subsidiary  is  unable  to  realize  the         benefits  of  ownership  of  such  foreign  subsidiary  because  of  war,  civil  commotion,         insurrection,  revolution,  riot,  confiscation,  or  force  majeure actions  caused  by  a         government or actions against a government,                 (ii)   the Loan Party or such Significant Subsidiary has a colorable claim in the         nature of common law, equitable, or statutory set-off against the Person in favor of which         such judgment was entered, and                 (iii)  the  aggregate  amount  of  all  such  obligations  does  not  exceed  Thirty         Million Dollars ($30,000,000); or          (g)    ERISA. Any of the following events or conditions, if such event or condition could  reasonably  be  expected  to  have  a  Material  Adverse  Effect:  (1)  any  “accumulated  funding  deficiency”, as such term is defined in Section 302 of ERISA and Section 412 of the Code, whether                                        66  

 

         or not waived, shall exist with respect to any Plan, or any lien shall arise on the assets of a member        of the Consolidated Group or any ERISA Affiliate in favor of the PBGC or a Plan; (2) an ERISA        Event shall occur with respect to a Single Employer Plan, that is, in the reasonable opinion of the        Administrative Agent, likely to result in the termination of such Plan for purposes of Title IV of        ERISA; (3) an ERISA Event shall occur with respect to a Multiemployer Plan or Multiple Employer        Plan,  that  is,  in  the  reasonable  opinion  of  the  Administrative Agent,  likely  to  result  in  (i)  the        termination of such Plan for purposes of Title IV of ERISA, or (ii) a member of the Consolidated        Group  or  any  ERISA  Affiliate  incurring  any  liability  in  connection  with  a  withdrawal  from,        reorganization  of  (within  the  meaning  of  Section  4241  of  ERISA),  or  insolvency  (within  the         meaning  of  Section  4245  of  ERISA)  of  such  Plan;  (4)  any  prohibited  transaction  (within  the         meaning of Section 406 of ERISA or Section 4975 of the Code) or breach of fiduciary responsibility         shall occur that may subject a member of the Consolidated Group or any ERISA Affiliate to any         liability under Sections 406, 409, 502(i), or 502(l) of ERISA or Section 4975 of the Code, or under         any agreement or other instrument pursuant to which a member of the Consolidated Group or any         ERISA Affiliate has agreed or is required to indemnify any person against any such liability; or (5)         a  member  of  the  Consolidated  Group  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; or                (h)    Guaranty. Any guaranty required hereby or any provision thereof shall cease to be        in full force and effect at the time required or any Subsidiary Guarantor or any Person acting by or        on behalf of any Subsidiary Guarantor shall deny or disaffirm in writing any Subsidiary Guarantor’s        obligations under the Subsidiary Guaranty; or                (i)    Change of Control. There shall occur a Change of Control; or                (j)    Loan Documents. Any Loan Document shall fail to be in full force and effect or to        give  the  Administrative  Agent  and/or  the  Lenders  the  material  rights,  powers,  and  privileges         purported to be created thereby or any Loan Party or any Person acting by or on behalf of any Loan         Party shall deny or disaffirm in writing any Loan Party’s obligations or the Administrative Agent’s         or the Lenders’ rights under any Loan Document (except as such documents may be terminated or         no longer in force and effect in accordance with the terms thereof, other than those indemnities and         provisions which by their terms shall survive);   then, and in every such event (other than an event with respect to the Borrower described in clause (d) of  this Article), and at any time thereafter during the continuance of such event, the Administrative Agent  may, and at the request of the Required Lenders shall, by notice to the Borrower, take any or all of the  following  actions,  at  the  same  or  different  times:   (i)  terminate  the  Commitments,  and  thereupon  the  Commitments shall terminate immediately, (ii) declare the Loans then outstanding to be due and payable  in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be  declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable,  together with accrued interest thereon and all fees and other Obligations of the Borrower accrued hereunder  and under any other Loan Document, shall become due and payable immediately, without presentment,  demand, protest or other notice of any kind, all of which are hereby waived by the Borrower, (iii) require  that the Borrower provide cash collateral as required in Section 2.06(j) and (iv) exercise on behalf of itself,  the Lenders and the Issuing Banks all rights and remedies available to it, the Lenders and the Issuing Banks  under the Loan Documents and applicable law; and in case of any event with respect to the Borrower  described in clause (d) of this Article, the Commitments shall automatically terminate and the principal of  the Loans then outstanding and cash collateral for the LC Exposure, together with accrued interest thereon  and  all  fees  and  other  Obligations  accrued  hereunder  and  under any  other  Loan  Document,  shall  automatically become due and payable, and the obligation of the Borrower to cash collateralize the LC                                             67  

 

   Exposure as provided in clause (iii) above shall automatically become effective without presentment, in  each case, without demand, protest or other notice of any kind, all of which are hereby waived by the  Borrower.  Upon the occurrence and during the continuance of an Event of Default, the Administrative  Agent may, and at the request of the Required Lenders shall, exercise any rights and remedies provided to  the Administrative Agent under the Loan Documents or at law or equity.                                        ARTICLE VIII                                                                               The Administrative Agent                SECTION 8.01.    Authorization and Action.                (a)    Each Lender and each Issuing Bank hereby irrevocably appoints the entity named        as Administrative Agent in the heading of this Agreement and its successors and assigns to serve        as the administrative agent under the Loan Documents and each Lender and each Issuing Bank        authorizes the Administrative Agent to take such actions as agent on its behalf and to exercise such        powers under this Agreement and the other Loan Documents as are delegated to the Administrative        Agent under such agreements and to exercise such powers as are reasonably incidental thereto.         Without  limiting  the  foregoing,  each  Lender  and  each  Issuing  Bank  hereby  authorizes  the        Administrative Agent to execute and deliver, and to perform its obligations under, each of the Loan        Documents to which the Administrative Agent is a party, and to exercise all rights, powers and        remedies that the Administrative Agent may have under such Loan Documents.                (b)    As  to  any  matters  not  expressly  provided  for  herein  and  in  the other  Loan        Documents (including enforcement or collection), the Administrative Agent shall not be required        to exercise any discretion or take any action, but shall be required to act or to refrain from acting        (and shall be fully protected in so acting or refraining from acting) upon the written instructions of        the Required Lenders (or such other number or percentage of the Lenders as shall be necessary,        pursuant  to  the  terms  in  the  Loan  Documents),  and,  unless  and  until  revoked  in  writing,  such        instructions shall be binding upon each Lender and each Issuing Bank; provided, however, that the        Administrative Agent shall not be required to take any action that (i) the Administrative Agent in        good  faith  believes  exposes  it  to  liability  unless  the  Administrative  Agent  receives  an        indemnification and is exculpated in a manner satisfactory to it from the Lenders and each Issuing         Bank with respect to such action or (ii) is contrary to this Agreement or any other Loan Document         or applicable law, including any action that may be in violation of the automatic stay under any         requirement of law relating to bankruptcy, insolvency or reorganization or relief of debtors or that         may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation         of any requirement of law relating to bankruptcy, insolvency or reorganization or relief of debtors;         provided,  further,  that  the  Administrative  Agent  may  seek  clarification  or  direction  from  the        Required Lenders prior to the exercise of any such instructed action and may refrain from acting        until such clarification or direction has been provided. Except as expressly set forth in the Loan        Documents, the Administrative Agent shall not have any duty to disclose, and shall not be liable        for the failure to disclose, any information relating to the Borrower, any Subsidiary or any Affiliate        of any of the foregoing that is communicated to or obtained by the Person serving as Administrative        Agent  or  any  of  its  Affiliates  in  any  capacity.  Nothing  in  this  Agreement  shall  require  the         Administrative Agent to expend or risk its own funds or otherwise incur any financial liability in         the performance of any of its duties hereunder or in the exercise of any of its rights or powers if it         shall have reasonable grounds for believing that repayment of such funds or adequate indemnity         against such risk or liability is not reasonably assured to it.                                              68  

 

                        (c)    In  performing  its  functions  and  duties  hereunder  and  under  the other  Loan  Documents, the Administrative Agent is acting solely on behalf of the Lenders and the Issuing  Banks (except in limited circumstances expressly provided for herein relating to the maintenance  of  the  Register),  and  its  duties  are  entirely  mechanical  and  administrative  in  nature.  Without  limiting the generality of the foregoing:                 (i)   the Administrative Agent does not assume and shall not be deemed to have  assumed any obligation or duty or any other relationship as the agent, fiduciary or trustee of or for  any Lender, any Issuing Bank or any other holder of Obligations other than as expressly set forth  herein and in the other Loan Documents, regardless of whether a Default or an Event of Default  has occurred and is continuing (and it is understood and agreed that the use of the term “agent” (or  any similar term) herein or in any other Loan Document with reference to the Administrative Agent  is not intended to connote any fiduciary duty or other implied (or express) obligations arising under  agency doctrine of any applicable law, and that such term is used as a matter of market custom and  is intended to create or reflect only an administrative relationship between contracting parties);  additionally, each Lender agrees that it will not assert any claim against the Administrative Agent  based on an alleged breach of fiduciary duty by the Administrative Agent in connection with this  Agreement and/or the transactions contemplated hereby; and                 (ii)  nothing  in  this  Agreement  or  any  Loan  Document  shall  require  the  Administrative  Agent  to  account  to  any  Lender  for  any  sum  or  the  profit  element  of  any  sum  received by the Administrative Agent for its own account.          (d)    The Administrative Agent may perform any of its duties and exercise its rights and  powers hereunder or under any other Loan Document by or through any one or more sub-agents  appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may  perform any of their respective duties and exercise their respective rights and powers through their  respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub- agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall  apply to their respective activities pursuant to this Agreement. The Administrative Agent shall not  be responsible for the negligence or misconduct of any sub-agent except to the extent that a court  of competent jurisdiction determines in a final and nonappealable judgment that the Administrative  Agent acted with gross negligence or willful misconduct in the selection of such sub-agent.          (e)    None  of  any  Co-Syndication  Agent,  any  Co-Documentation  Agent  or any  Arranger shall have obligations or duties whatsoever in such capacity under this Agreement or any  other Loan Document and shall incur no liability hereunder or thereunder in such capacity, but all  such persons shall have the benefit of the indemnities provided for hereunder.          (f)    In case of the pendency of any proceeding with respect to any Loan Party under  any federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter  in  effect,  the  Administrative  Agent  (irrespective  of  whether  the  principal  of  any  Loan  or  any  reimbursement obligation in respect of any LC Disbursement shall then be due and payable as  herein expressed or by declaration or otherwise and irrespective of whether the Administrative  Agent shall have made any demand on any Loan Party) shall be entitled and empowered (but not  obligated) by intervention in such proceeding or otherwise:                 (i)    to file and prove a claim for the whole amount of the principal and interest         owing and unpaid in respect of the Loans, LC Disbursements and all other Obligations that         are owing and unpaid and to file such other documents as may be necessary or advisable         in order to have the claims of the Lenders, the Issuing Banks and the Administrative Agent                                       69  

 

                (including  any  claim  under  Sections  2.12,  2.13,  2.15,  2.17  and 9.03)  allowed  in  such               judicial proceeding; and                       (ii)  to collect and receive any monies or other property payable or deliverable               on any such claims and to distribute the same;    and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such  proceeding is hereby authorized by each Lender, each Issuing Bank and each other holder of Obligations  to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall  consent to the making of such payments directly to the Lenders, the Issuing Banks or the other holders of  Obligations, to pay to the Administrative Agent any amount due to it, in its capacity as the Administrative  Agent,  under  the  Loan  Documents  (including  under  Section  9.03).  Nothing  contained  herein  shall  be  deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of  any  Lender  or  any  Issuing  Bank  any  plan  of  reorganization,  arrangement,  adjustment  or  composition  affecting the Obligations or the rights of any Lender or any Issuing Bank or to authorize the Administrative  Agent to vote in respect of the claim of any Lender or any Issuing Bank in any such proceeding.                 (g)    The provisions of this Article VIII are solely for the benefit of the Administrative        Agent, the Lenders and the Issuing Banks, and, except solely to the extent of the Borrower’s rights        to  consent  pursuant  to  and  subject  to  the  conditions  set  forth in  this  Article  VIII,  none  of  the        Borrower or any Subsidiary, or any of their respective Affiliates, shall have any rights as a third        party beneficiary under any such provisions. Each holder of Obligations, whether or not a party        hereto, will be deemed, by its acceptance of the Guarantees of the Obligations provided under the        Loan Documents, to have agreed to the provisions of this Article VIII.                SECTION 8.02.       Administrative Agent’s Reliance, Indemnification, Etc.                (a)    Neither the Administrative Agent nor any of its Related Parties shall be (i) liable         for any action taken or omitted to be taken by such party, the Administrative Agent or any of its         Related Parties under or in connection with this Agreement or the other Loan Documents (x) with         the consent of or at the request of the Required Lenders (or such other number or percentage of the         Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith to be         necessary, under the circumstances as provided in the Loan Documents) or (y) in the absence of its         own  gross  negligence  or  willful  misconduct  (such  absence  to  be presumed  unless  otherwise         determined by a court of competent jurisdiction by a final and non-appealable judgment) or (ii)         responsible in any manner to any of the Lenders for any recitals, statements, representations or         warranties made by any Loan Party or any officer thereof contained in this Agreement or any other         Loan Document or in any certificate, report, statement or other document referred to or provided         for in, or received by the Administrative Agent under or in connection with, this Agreement or any         other  Loan  Document  or  for  the  value,  validity,  effectiveness, genuineness,  enforceability  or         sufficiency of this Agreement or any other Loan Document or for any failure of any Loan Party to         perform its obligations hereunder or thereunder.                (b)    The Administrative Agent shall be deemed not to have knowledge of any Default         unless  and  until  written  notice  thereof  (stating  that  it  is  a  “notice  of  default”)  is  given  to  the         Administrative Agent by the Borrower, a Lender or an Issuing Bank, and the Administrative Agent         shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty         or  representation  made  in  or  in  connection  with  any  Loan  Document,  (ii)  the  contents  of  any         certificate,  report  or  other  document  delivered  thereunder  or  in  connection  therewith,  (iii)  the         performance or observance of any of the covenants, agreements or other terms or conditions set         forth  in  any  Loan  Document  or  the  occurrence  of  any  Default,  (iv)  the  sufficiency,  validity,                                             70  

 

                 enforceability,  effectiveness  or  genuineness  of  any  Loan  Document  or  any  other  agreement,  instrument or document or (v) the satisfaction of any condition set forth in Article IV or elsewhere  in any Loan Document, other than to confirm receipt of items (which on their face purport to be  such items) expressly required to be delivered to the Administrative Agent or satisfaction of any  condition that expressly refers to the matters described therein being acceptable or satisfactory to  the  Administrative  Agent.  Notwithstanding  anything  herein  to  the  contrary,  the  Administrative  Agent shall not be liable for, or be responsible for any claim, liability, loss, cost or expense suffered  by the Borrower, any Subsidiary, any Lender or any Issuing Bank as a result of, any determination  of the Credit Exposure, any of the component amounts thereof or any portion thereof attributable  to each Lender or each Issuing Bank or any Dollar Amount thereof.          (c)    Without limiting the foregoing, the Administrative Agent (i) may treat the payee   of any promissory note as its holder until such promissory note has been assigned in accordance   with Section 9.04, (ii) may rely on the Register to the extent set forth in Section 9.04(b), (iii) may   consult with legal counsel (including counsel to the Borrower), independent public accountants and   other experts selected by it, and shall not be liable for any action taken or omitted to be taken in   good faith by it in accordance with the advice of such counsel, accountants or experts, (iv) makes   no warranty or representation to any Lender or any Issuing Bank and shall not be responsible to   any Lender or any Issuing Bank for any statements, warranties or representations made by or on   behalf of any Loan Party in connection with this Agreement or any other Loan Document, (v) in   determining compliance with any condition hereunder to the making of a Loan, or the issuance of   a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or an Issuing   Bank, may presume that such condition is satisfactory to such Lender or such Issuing Bank unless   the  Administrative  Agent  shall have  received  notice  to  the  contrary  from  such  Lender  or  such  Issuing Bank sufficiently in advance of the making of such Loan or the issuance of such Letter of  Credit and (vi) shall be entitled to rely on, and shall incur no liability under or in respect of this  Agreement or any other Loan Document by acting upon, any notice, consent, certificate or other  instrument or writing (which writing may be a fax, any electronic message, Internet or intranet  website  posting  or  other  distribution)  or  any  statement  made  to it orally or by telephone and  believed by it to be genuine and signed or sent or otherwise authenticated by the proper party or  parties (whether or not such Person in fact meets the requirements set forth in the Loan Documents  for being the maker thereof).          SECTION 8.03.    Posting of Communications.          (a)    The Borrower agrees that the Administrative Agent may, but shall not be obligated  to,  make  any  Communications  available  to  the  Lenders  and  the  Issuing  Banks  by  posting  the  Communications  on  IntraLinksTM,  DebtDomain,  SyndTrak,  ClearPar  or  any  other  electronic  platform  chosen  by  the  Administrative  Agent  to  be  its  electronic  transmission  system  (the  “Approved Electronic Platform”).          (b)    Although the Approved Electronic Platform and its primary web portal are secured   with  generally-applicable  security  procedures  and  policies  implemented  or  modified  by  the   Administrative Agent from time to time (including, as of the Effective Date, a user ID/password   authorization  system)  and  the  Approved  Electronic  Platform  is  secured  through  a  per-deal   authorization method whereby each user may access the Approved Electronic Platform only on a   deal-by-deal basis, each of the Lenders, the Issuing Banks and the Borrower acknowledges and   agrees that the distribution of material through an electronic medium is not necessarily secure, that   the Administrative Agent is not responsible for approving or vetting the representatives or contacts   of  any  Lender  that  are  added  to  the  Approved  Electronic  Platform, and that there may be   confidentiality and other risks associated with such distribution. Each of the Lenders, the Issuing                                       71  

 

         Banks  and  the  Borrower  hereby  approves  distribution  of  the  Communications  through  the        Approved Electronic Platform and understands and assumes the risks of such distribution.                (c)    THE     APPROVED       ELECTRONIC      PLATFORM       AND      THE        COMMUNICATIONS  ARE  PROVIDED  “AS  IS”  AND  “AS  AVAILABLE”.  THE        APPLICABLE PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR        COMPLETENESS  OF  THE  COMMUNICATIONS,  OR  THE  ADEQUACY  OF  THE        APPROVED  ELECTRONIC  PLATFORM  AND  EXPRESSLY  DISCLAIM  LIABILITY  FOR        ERRORS  OR  OMISSIONS  IN  THE  APPROVED  ELECTRONIC  PLATFORM  AND  THE        COMMUNICATIONS.  NO  WARRANTY  OF  ANY  KIND,  EXPRESS,  IMPLIED  OR        STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A        PARTICULAR  PURPOSE,  NON-INFRINGEMENT  OF  THIRD  PARTY  RIGHTS  OR        FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE APPLICABLE        PARTIES  IN  CONNECTION  WITH  THE  COMMUNICATIONS  OR  THE  APPROVED        ELECTRONIC PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT, ANY        ARRANGER, ANY CO-SYNDICATION AGENT, ANY CO-DOCUMENTATION AGENT OR        ANY  OF  THEIR  RESPECTIVE  RELATED  PARTIES  (COLLECTIVELY,  “APPLICABLE        PARTIES”) HAVE ANY LIABILITY TO ANY LOAN PARTY, ANY LENDER, ANY ISSUING        BANK  OR  ANY  OTHER  PERSON  OR  ENTITY  FOR  DAMAGES  OF  ANY  KIND,        INCLUDING  DIRECT  OR  INDIRECT,  SPECIAL,  INCIDENTAL  OR  CONSEQUENTIAL         DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE)         ARISING  OUT  OF  ANY  LOAN  PARTY’S  OR  THE  ADMINISTRATIVE  AGENT’S         TRANSMISSION  OF  COMMUNICATIONS  THROUGH  THE  INTERNET  OR  THE         APPROVED ELECTRONIC PLATFORM.                (d)    Each Lender and each Issuing Bank agrees that notice to it (as provided in the next        sentence) specifying that Communications have been posted to the Approved Electronic Platform        shall constitute effective delivery of the Communications to such Lender for purposes of the Loan        Documents. Each Lender and each Issuing Bank agrees (i) to notify the Administrative Agent in        writing  (which  could  be  in  the  form  of  electronic  communication)  from  time  to  time  of  such        Lender’s or such Issuing Bank’s (as applicable) email address to which the foregoing notice may        be sent by electronic transmission and (ii) that the foregoing notice may be sent to such email        address.                (e)    Each  of  the  Lenders,  the  Issuing  Banks  and  the  Borrower  agrees that  the        Administrative Agent may, but (except as may be required by applicable law) shall not be obligated        to,  store  the  Communications  on  the  Approved  Electronic  Platform  in  accordance  with  the        Administrative Agent’s generally applicable document retention procedures and policies.                (f)    Nothing herein shall prejudice the right of the Administrative Agent, any Lender        or any Issuing Bank to give any notice or other communication pursuant to any Loan Document in        any other manner specified in such Loan Document.                SECTION 8.04.    The  Administrative  Agent  Individually.   With  respect  to  its  Commitment,  Loans,  Letter  of  Credit  Commitment  and  Letters  of  Credit,  the  Person  serving  as  the  Administrative Agent shall have and may exercise the same rights and powers hereunder and is subject to  the same obligations and liabilities as and to the extent set forth herein for any other Lender or any Issuing  Bank, as the case may be.  The terms “Issuing Banks”, “Lenders”, “Required Lenders” and any similar  terms shall, unless the context clearly otherwise indicates, include the Administrative Agent in its individual  capacity as a Lender, the Issuing Bank or as one of the Required Lenders, as applicable. The Person serving  as the Administrative Agent and its Affiliates may accept deposits from, lend money to, own securities of,                                             72  

 

   act  as  the  financial  advisor  or  in  any  other  advisory  capacity for  and  generally  engage  in  any  kind  of  banking, trust or other business with, the Borrower, any Subsidiary or any Affiliate of any of the foregoing  as if such Person was not acting as the Administrative Agent and without any duty to account therefor to  the Lenders or the Issuing Banks.                SECTION 8.05.    Successor  Administrative  Agent.   Subject  to  the  appointment  and  acceptance of a successor Administrative Agent as provided in this paragraph, the Administrative Agent  may resign at any time by giving 30 days’ prior written notice thereof to the Lenders, the Issuing Banks  and  the  Borrower.  Upon  any  such  resignation,  the  Required  Lenders  shall  have  the  right  to  appoint  a  successor Administrative Agent. If no successor Administrative Agent shall have been so appointed by the  Required  Lenders,  and  shall  have  accepted  such  appointment,  within  30  days  after  the  retiring  Administrative Agent’s giving of notice of resignation, then the retiring Administrative Agent may, on  behalf of the Lenders and the Issuing Bank, appoint a successor Administrative Agent, which shall be a  bank  with  an  office  in  New  York,  New  York  or  an  Affiliate  of  any  such  bank.  In  either  case,  such  appointment shall be subject to the prior written approval of the Borrower (which approval may not be  unreasonably withheld and shall not be required while an Event of Default has occurred and is continuing).  Upon the acceptance of any appointment as Administrative Agent by a successor Administrative Agent,  such  successor  Administrative  Agent  shall  succeed  to,  and become  vested  with,  all  the  rights,  powers,  privileges  and  duties  of  the  retiring  Administrative  Agent.  Upon  the  acceptance  of  appointment  as  Administrative  Agent  by  a  successor  Administrative  Agent,  the  retiring  Administrative  Agent  shall  be  discharged from its duties and obligations under this Agreement and the other Loan Documents. Prior to  any  retiring  Administrative  Agent’s  resignation  hereunder  as  Administrative  Agent,  the  retiring  Administrative Agent shall take such action as may be reasonably necessary to assign to the successor  Administrative Agent its rights as Administrative Agent under the Loan Documents.                SECTION 8.06.    Acknowledgements of Lenders and Issuing Banks.                (a)    Each  Lender  represents  that  it  is  engaged  in  making,  acquiring or  holding        commercial loans in the ordinary course of its business and that it has, independently and without        reliance upon the Administrative Agent, any Arranger, Co-Syndication Agent, Co-Documentation        Agent or any other Lender, or any of the Related Parties of any of the foregoing, and based on such        documents and information as it has deemed appropriate, made its own credit analysis and decision        to enter into this Agreement as a Lender, and to make, acquire or hold Loans hereunder. Each        Lender also acknowledges that it will, independently and without reliance upon the Administrative        Agent,  any  Arranger,  any  Co-Syndication  Agent,  any  Co-Documentation  Agent  or  any  other        Lender, or any of the Related Parties of any of the foregoing, and based on such documents and        information (which may contain material, non-public information within the meaning of the United        States securities laws concerning the Borrower and its Affiliates) as it shall from time to time deem        appropriate, continue to make its own decisions in taking or not taking action under or based upon        this Agreement, any other Loan Document or any related agreement or any document furnished        hereunder or thereunder.                (b)    Each Lender, by delivering its signature page to this Agreement on the Effective        Date,  or  delivering  its  signature  page  to  an  Assignment  and  Assumption  or  any  other  Loan        Document  pursuant  to  which  it  shall  become  a  Lender  hereunder, shall  be  deemed  to  have        acknowledged receipt of, and consented to and approved, each Loan Document and each other        document required to be delivered to, or be approved by or satisfactory to, the Administrative Agent        or the Lenders on the Effective Date.                                              73  

 

                       SECTION 8.07.    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 the Arrangers and their respective Affiliates, and not, for the avoidance of doubt, to or  for the benefit of the Borrower or any other Loan Party, that at least one of the following is and  will be true:                (i)    such Lender is not using “plan assets” (within the meaning of the Plan  Asset Regulations) of one or more Benefit Plans in connection with the Loans, the Letters of Credit  or the Commitments,                (ii)   the transaction exemption set forth in one or more PTEs, such as PTE 84- 14 (a class exemption for certain transactions determined by independent qualified professional  asset  managers),  PTE  95-60  (a  class  exemption  for  certain  transactions  involving  insurance  company  general  accounts),  PTE  90-1  (a  class  exemption  for  certain  transactions  involving  insurance  company  pooled  separate  accounts),  PTE  91-38  (a  class  exemption  for  certain  transactions  involving  bank  collective  investment  funds)  or  PTE  96-23  (a  class  exemption  for  certain transactions determined by in-house asset  managers), is applicable with respect to such  Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters  of Credit, the Commitments and this Agreement,                (iii)  (A)  such  Lender  is  an  investment  fund  managed  by  a  “Qualified  Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified  Professional Asset Manager made the investment decision on behalf of such Lender to enter into,  participate in, administer and perform the Loans, the Letters of Credit, the Commitments and this  Agreement, (C) the entrance into, participation in, administration of and performance of the Loans,  the  Letters  of  Credit,  the  Commitments  and  this  Agreement  satisfies  the  requirements  of  sub- sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the  requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s  entrance  into,  participation  in,  administration  of  and  performance  of  the  Loans,  the  Letters  of  Credit, the Commitments and this Agreement, or                (iv)   such  other  representation,  warranty  and  covenant  as  may  be  agreed  in  writing between the Administrative Agent, in its sole discretion, and such Lender.         (b)    In addition, unless sub-clause (i) in the immediately preceding clause (a) is true  with respect to a Lender or such Lender has not provided another representation, warranty and  covenant as provided in sub-clause (iv) in the immediately preceding clause (a), such Lender further  (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y)  covenants, from the date such Person became a Lender party hereto to the date such Person ceases  being a Lender party hereto, for the benefit of, the Administrative Agent, and the Arrangers, any  Co-Syndication Agent, any Co-Documentation Agent and any of their respective Affiliates, and  not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that  none  of  the  Administrative  Agent,  or  the  Arrangers,  or  the  Co-Syndication  Agents,  the  Co- Documentation Agent or any of their respective Affiliates is a fiduciary with respect to the assets  of  such  Lender  (including  in  connection  with  the  reservation  or  exercise  of  any  rights  by  the  Administrative Agent under this Agreement, any Loan Document or any documents related hereto  or thereto).                                       74  

 

                (c)    The  Administrative  Agent  and  each  Arranger,  each  Co-Syndication  Agent  and        each Co-Documentation Agent hereby informs the Lenders that each such Person is not undertaking        to provide impartial investment advice, or to give advice in a fiduciary capacity, in connection with        the  transactions  contemplated  hereby,  and  that  such  Person  has a  financial  interest  in  the        transactions contemplated hereby in that such Person or an Affiliate thereof (i) may receive interest        or  other  payments  with  respect  to  the  Loans,  the  Letters  of  Credit,  the  Commitments,  this        Agreement and any other Loan Documents, (ii) may recognize a gain if it extended the Loans, the        Letters of Credit or the Commitments for an amount less than the amount being paid for an interest        in the Loans, the Letters of Credit or the Commitments by such Lender or (iii) may receive fees or        other payments in connection with the transactions contemplated hereby, the Loan Documents or        otherwise,  including  structuring  fees,  commitment  fees,  arrangement  fees,  facility  fees,        commitment fees, upfront fees, underwriting fees, ticking fees, agency fees, administrative agent        fees, utilization fees, minimum usage fees, letter of credit fees, fronting fees, deal-away or alternate        transaction fees, amendment fees, processing fees, term out premiums, banker’s acceptance fees,        breakage or other early termination fees or fees similar to the foregoing.                                         ARTICLE IX                                                                                    Miscellaneous                SECTION 9.01.                 Notices.  (a)  Except in the case of notices and other  communications expressly permitted to be given by telephone (and subject to paragraph (b) below), all  notices and other communications provided for herein shall be in writing and shall be delivered by hand or  overnight courier service, mailed by certified or registered mail or sent by telecopy or e-mail, as follows:                       (i)    if to the Borrower, to it at Universal Corporation, 9201 Forest Hill Avenue,               Richmond,  Virginia  23235,  Attention  of  Treasurer  (Telecopy  No. (804)  254-3584;               Telephone No. (804) 359-9311) with a copy (in the case of a notice of Default) to General               Counsel (Telecopy No. (804) 254-3594);                       (ii)  if to the Administrative Agent, to JPMorgan Chase Bank, N.A., Loan &               Agency Services Group, 10 South Dearborn, 2nd Floor, Chicago, Illinois 60603, Attention               of Ladesiree Williams (Telecopy No. (888) 303-9734), with a copy to JPMorgan Chase               Bank, N.A., 270 Park Avenue, 43rd Floor, New York, New York 10017, Attention of Joon               Hur (Telecopy No. (855) 325-5709);                       (iii)  if to JPMorgan Chase Bank, N.A. in its capacity as an Issuing Bank, to it               at JPMorgan Chase Bank, N.A., Loan & Agency Services Group, 10 South Dearborn, 2nd               Floor,  Chicago,  Illinois  60603,  Attention  of  Pavithra  Charles  (e-mail:               Chicago.LC.agency.closing.team@jpmorgan.com);                       (iv)  if to the Swingline Lender, to it at JPMorgan Chase Bank, N.A., Loan &               Agency Services Group, 10 South Dearborn, 2nd Floor, Chicago, Illinois 60603, Attention               of Ladesiree Williams (Telecopy No. (888) 303-9734); and                       (v)    if to any other Lender or Issuing Bank, to it at its address (or telecopy               number) set forth in its Administrative Questionnaire or, in the case of notice from the               Borrower to any Lender, to such Lender at its address (or telecopy number) as specified in               writing by the Administrative Agent to the Borrower.                                              75  

 

   Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed  to have been given when received; notices sent by facsimile shall be deemed to have been given when sent  (except that, if not given during normal business hours for the recipient, shall be deemed to have been given  at the opening of business on the next business day for the recipient).  Notices delivered through Approved  Electronic Platforms, to the extent provided in paragraph (b) below, shall be effective as provided in said  paragraph (b).                (b)    Notices and other communications to the Lenders and the Issuing Banks hereunder         may be delivered or furnished by using Approved Electronic Platforms pursuant to procedures         approved  by  the  Administrative Agent;  provided  that  the  foregoing  shall  not  apply  to  notices         pursuant  to  Article  II  unless  otherwise  agreed  by  the  Administrative  Agent  and  the  applicable         Lender.  The Administrative Agent or the Borrower 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.                (c)    Unless  the  Administrative  Agent  otherwise  prescribes,  (i)  notices  and  other         communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an         acknowledgement from the intended recipient (such as by the “return receipt requested” function,         as  available,  return  e-mail  or  other  written  acknowledgement), and  (ii)  except  as  otherwise         expressly provided in the second paragraph of Section 5.01(b), notices or communications posted         to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended         recipient, at its e-mail address as described in the foregoing clause (i), of notification that such         notice or communication is available and identifying the website address therefor; provided that,         for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during         the normal business hours of the recipient, such notice or communication shall be deemed to have         been sent at the opening of business on the next business day for the recipient.                (d)    Any party hereto may change its address or telecopy number for notices and other         communications  hereunder  by  notice  to  the  other  parties  hereto.   All  notices  and  other         communications given to any party hereto in accordance with the provisions of this Agreement         shall be deemed to have been given on the date of receipt.                SECTION 9.02. Waivers; Amendments.  (a)  No failure or delay by the Administrative  Agent, any Issuing Bank or any Lender in exercising any right or power hereunder or under any other Loan  Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or  power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other  or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the  Administrative Agent, the Issuing Banks and the Lenders hereunder and under the other Loan Documents  are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver  of any provision of this Agreement or consent to any departure by the Borrower therefrom shall in any  event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver  or consent shall be effective only in the specific instance and for the purpose for which given.  Without  limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be  construed as a waiver of any Default, regardless of whether the Administrative Agent, any Lender or any  Issuing Bank may have had notice or knowledge of such Default at the time.                (b)    Except as provided in Section 2.20 with respect to Incremental Term Loans or as        provided  in  Section  2.14(b),  neither  this  Agreement  nor  any  provision  hereof  may  be  waived,         amended or modified except pursuant to an agreement or agreements in writing entered into by the         Borrower and the Required Lenders or by the Borrower and the Administrative Agent with the                                             76  

 

                 consent  of  the  Required  Lenders; provided  that  no  such  agreement  shall  (i) increase  the  Commitment of any Lender without the written consent of such Lender, (ii) reduce the principal  amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce any fees  payable hereunder, without the written consent of each Lender directly affected thereby (except  that neither (A) any amendment or modification of the financial covenants in this Agreement (or  defined terms used in the financial covenants in this Agreement) or (B) any amendment entered  into pursuant to the terms of Section 2.14(b) shall constitute a reduction in the rate of interest or  fees for purposes of this clause (ii)), (iii) postpone the scheduled date of payment of the principal  amount of any Loan or LC Disbursement, or any interest thereon, or any fees payable hereunder,  or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of  expiration  of  any  Commitment,  without  the  written  consent  of  each  Lender  directly  affected  thereby,  (iv) change  Section 2.09(c)  or  2.18(b)  or  (d) in  a  manner  that  would  alter  the  ratable  reduction of Commitments or the pro rata sharing of payments required thereby, without the written  consent of each Lender, (v) change the payment waterfall provisions of Section 2.21(b) without the  written  consent  of  each  Lender,  (vi)  waive  any  condition  set  forth  in  Section  4.02  without  the  written  consent  of  the  Required  Revolving  Lenders  (it  being  understood  and  agreed  that  any   amendment or waiver of, or any consent with respect to, any provision of this Agreement (other   than any waiver expressly relating to Section 4.02) or any other Loan Document, including any   amendment of any affirmative or negative covenant set forth herein or in any other Loan Document   or any waiver of a Default or an Event of Default, shall not be deemed to be a waiver of a condition   set forth in Section 4.02 for purposes of this Section 9.02), (vii) change any of the provisions of   this  Section  or  the  definition  of  “Required  Lenders”  or  the  definition  of  “Required  Revolving   Lenders” or any other provision hereof specifying the number or percentage of Lenders required to   waive, amend or modify any rights hereunder or make any determination or grant any consent   hereunder, without the written consent of each Lender (it being understood that, solely with the   consent of the parties prescribed by Section 2.20, Incremental Term Loans may be included in the   determination of Required Lenders on substantially the same basis as the Commitments and the   Revolving  Loans  are  included  on  the  Effective  Date),  (viii)  change  any  provisions  of  this   Agreement in a manner that by its terms adversely affects the rights or payments due to Lenders   holding Loans of any Class differently than those holding Loans of any other Class without the   written consent of Lenders representing a majority in interest of each affected Class or (ix) release   all or substantially all of the Subsidiary Guarantors from their obligations under the Subsidiary   Guaranty without the written consent of each Lender; provided further that no such agreement shall  amend, modify or otherwise affect the rights or duties of the Administrative Agent, any Issuing  Bank or the Swingline Lender hereunder without the prior written consent of the Administrative  Agent, any Issuing Bank or the Swingline Lender, as the case may be (it being understood that any  change to Section 2.21 shall require the consent of the Administrative Agent, the Issuing Banks  and the Swingline Lender); provided further that no such agreement shall amend or modify the  provisions of Section 2.06 or any letter of credit application and any bilateral agreement between   the Borrower and any Issuing Bank regarding such Issuing Bank’s Letter of Credit Commitment   or the respective rights and obligations between the Borrower and such Issuing Bank in connection   with the issuance of Letters of Credit without the prior written consent of the Administrative Agent   and such Issuing Bank, respectively.  Notwithstanding the foregoing, no consent with respect to   any amendment, waiver or other modification of this Agreement shall be required of any Defaulting   Lender, except with respect to any amendment, waiver or other modification referred to in clause   (i), (ii) or (iii) of the first proviso of this paragraph and then only in the event such Defaulting   Lender shall be directly affected by such amendment, waiver or other modification          (c)    Notwithstanding the foregoing, this Agreement and any other Loan Document may   be  amended  (or  amended  and  restated)  with  the  written  consent  of  the  Required  Lenders,  the  Administrative Agent and the Borrower (x) to add one or more credit facilities (in addition to the                                       77  

 

         Incremental Term Loans pursuant to Section 2.20) to this Agreement and to permit extensions of        credit from time to time outstanding thereunder and the accrued interest and fees in respect thereof        to share ratably in the benefits of this Agreement and the other Loan Documents with the Revolving        Loans and the Term Loans (including the Incremental Term Loans) and the accrued interest and        fees in respect thereof and (y) to include appropriately the Lenders holding such credit facilities in        any determination of the Required Lenders and Lenders.                (d)    If, in connection with any proposed amendment, waiver or consent  requiring the        consent of “each Lender” or “each Lender directly affected thereby,” the consent of the Required        Lenders is obtained, but the consent of other necessary Lenders is not obtained (any such Lender        whose  consent  is  necessary  but  not  obtained  being  referred  to  herein  as  a  “Non-Consenting        Lender”), then the Borrower may elect to replace a Non-Consenting Lender as a Lender party to        this Agreement, provided that, concurrently with such replacement, (i) another bank or other entity        that is reasonably satisfactory to the Borrower and the Administrative Agent shall agree, as of such        date,  to  purchase  for  cash  the  Loans  and  other  Obligations  due to  the  Non-Consenting  Lender        pursuant to an Assignment and Assumption and to become a Lender for all purposes under this        Agreement and to assume all obligations of the Non-Consenting Lender to be terminated as of such         date and to comply with the requirements of clause (b) of Section 9.04, (ii) the Borrower shall pay         to such Non-Consenting Lender in same day funds on the day of such replacement (1) all interest,         fees and other amounts then accrued but unpaid to such Non-Consenting Lender by the Borrower         hereunder to and including the date of termination, including without limitation payments due to        such Non-Consenting Lender under Sections 2.15 and 2.17, and (2) an amount, if any, equal to the        payment that would have been due to such Lender on the day of such replacement under Section        2.16 had the Loans of such Non-Consenting Lender been prepaid on such date rather than sold to        the replacement Lender and (iii) such Non-Consenting Lender shall have received the outstanding         principal amount of its Loans and participations in LC Disbursements.  Each party hereto agrees         that  (a)  an  assignment  required  pursuant  to  this  paragraph  may be  effected  pursuant  to  an         Assignment and Assumption executed by the Borrower, the Administrative Agent and the assignee         (or,  to  the  extent  applicable,  an  agreement  incorporating  an  Assignment  and  Assumption  by         reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and         such parties are participants), and (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         and  be  bound  by  the  terms  thereof;  provided  that,  following  the  effectiveness  of  any  such        assignment,  the  other  parties  to  such  assignment  agree  to  execute  and  deliver  such  documents        necessary to evidence such assignment as reasonably requested by the applicable Lender, provided        that any such documents shall be without recourse to or warranty by the parties thereto.                (e)    Notwithstanding anything to the contrary herein the Administrative Agent may,         with the consent of the Borrower only, amend, modify or supplement this Agreement or any of the         other Loan Documents to cure any ambiguity, omission, mistake, defect or inconsistency.                SECTION 9.03. Expenses; Indemnity; Damage Waiver.  (a) The Borrower shall pay (i) all  reasonable, documented, out-of-pocket expenses incurred by the Administrative Agent and its Affiliates,  including  the  reasonable,  documented,  out-of-pocket  fees,  charges,  and  disbursements  of  one  primary  counsel, and one local counsel in each applicable jurisdiction, for the Administrative Agent, in connection  with the syndication and distribution (including, without limitation, via the internet or through a service  such as Intralinks) of the credit facilities provided for herein, the preparation and administration of this  Agreement and the other Loan Documents or any amendments, modifications, or waivers of the provisions  hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated),  (ii) all reasonable, documented, out-of-pocket expenses incurred by any Issuing Bank in connection with  the  issuance,  amendment,  renewal,  or  extension  of  any  Letter  of  Credit  or  any  demand  for  payment                                             78  

 

   thereunder and (iii) all reasonable, documented, out-of-pocket expenses incurred by the Administrative  Agent, any Issuing Bank, or any Lender, including the reasonable, documented, out-of-pocket fees, charges,  and disbursements of one primary counsel, and one local counsel in each applicable jurisdiction, for the  Administrative Agent, any Issuing Bank, or any Lender, in connection with the enforcement or protection  of its rights in connection with this Agreement and any other Loan Document, including its rights under  this Section, or in connection with the Loans made or Letters of Credit issued hereunder, including all such  reasonable,  documented,  out-of-pocket  expenses  incurred  during   any  workout,  restructuring,  or  negotiations in respect of such Loans or Letters of Credit.                (b)    The Borrower shall indemnify the Administrative Agent, each Arranger, each Co-        Syndication Agent, each Co-Documentation Agent, each Issuing Bank and each Lender, and each         Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”)        against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities        and  related  expenses,  including  the  reasonable,  documented,  out-of-pocket  fees,  charges  and        disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee        arising  out  of,  in  connection  with,  or  as  a  result  of  (i)  the  execution  or  delivery  of  any  Loan        Document or any agreement or instrument contemplated thereby, the performance by the parties        hereto of their respective obligations thereunder or the consummation of the Transactions or any        other transactions contemplated hereby, (ii) any Loan or Letter of Credit or the use of the proceeds        therefrom (including any refusal by any Issuing Bank to honor a demand for payment under a Letter        of Credit if the documents presented in connection with such demand do not strictly comply with        the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous        Materials on or from any property owned or operated by the 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, arbitration or proceeding relating to any        of the foregoing, whether based on contract, tort or any other theory, whether brought by a third        party or by the Borrower or any of its Subsidiaries, and regardless of whether any Indemnitee is a        party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the        extent that such losses, claims, damages, liabilities or related expenses are determined by a court        of competent jurisdiction by final and nonappealable judgment to have resulted from (x) the gross        negligence or willful misconduct of such Indemnitee or (y) a material breach by such Indemnitee        of its express obligations under any Loan Document pursuant to a claim initiated by the Borrower.         This Section 9.03(b) shall not apply with respect to Taxes other than any Taxes that represent losses,        claims or damages arising from any non-Tax claim.                (c)    To the extent that the Borrower fails to pay any amount required to be paid by it to        the Administrative Agent, any Issuing Bank or the Swingline Lender under paragraph (a) or (b) of        this Section, each Lender severally agrees to pay to the Administrative Agent, and each Revolving        Lender severally agrees to pay to the applicable Issuing Bank or the Swingline Lender, as the case        may  be,  such  Lender’s  Applicable  Percentage  (determined  as  of  the  time  that  the  applicable        unreimbursed expense or indemnity payment is sought) of such unpaid amount (it being understood        that the Borrower’s failure to pay any such amount shall not relieve the Borrower of any default in        the payment thereof); 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, such Issuing Bank or the Swingline Lender in its capacity as such.                (d)    To  the  extent  permitted  by  applicable  law,  the  Borrower  shall  not  assert,  and         hereby waives, any claim against any Indemnitee (i) for any damages arising from the use by others         of  information  or  other  materials  obtained  through  telecommunications,  electronic  or  other         information transmission systems (including the Internet) other than damages that are determined         by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the                                             79  

 

         gross negligence or willful misconduct of such Indemnitee, or (ii) on any theory of liability, for        special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising        out of, in connection with, or as a result of, this Agreement, any other Loan Document or any        agreement or instrument contemplated hereby or thereby, the Transactions, any Loan or Letter of        Credit or the use of the proceeds thereof.                (e)    All amounts due under this Section shall be payable not later than fifteen (15) days        after written demand therefor.                SECTION 9.04. Successors and Assigns.  (a)  The provisions of this Agreement shall be  binding  upon  and  inure  to  the  benefit  of  the  parties  hereto  and  their  respective  successors  and  assigns  permitted hereby (including any Affiliate of the relevant Issuing Bank that issues any Letter of Credit),  except that (i) the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder  without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower  without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights  or obligations hereunder except in accordance with this Section.  Nothing in this Agreement, expressed or  implied,  shall  be  construed  to  confer  upon  any  Person  (other  than  the  parties  hereto,  their  respective  successors and assigns permitted hereby (including any Affiliate of an Issuing Bank that issues any Letter  of Credit),  Participants (to the extent provided in paragraph (c) of this Section) and, to the extent expressly  contemplated hereby, the Related Parties of each of the Administrative Agent, the Issuing Banks and the  Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.                (b)    (1)   Subject to the conditions set forth in paragraph (b)(ii) below, any Lender         may assign to one or more Persons (other than an Ineligible Institution) all or a portion of its rights         and obligations under this Agreement (including all or a portion of its Commitments, participations         in Letters of Credit and the Loans at the time owing to it) with the prior written consent (such         consent not to be unreasonably withheld, conditioned or delayed) of:                              (A)   the Borrower (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  ten  (10)  Business  Days  after  having  received                      notice thereof);  provided, further, that no consent of the Borrower shall be required                      for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if                      an  Event  of  Default  under  clause  (a)  or  (d)  of  Article  VII  has occurred  and  is                      continuing, any other assignee;                              (B)   the  Administrative  Agent;  provided  that  no  consent  of  the                      Administrative Agent shall be required for an assignment of all or any portion of                      a Term Loan to a Lender, an Affiliate of a Lender or an Approved Fund;                             (C)    each Issuing Bank; provided that no consent of any Issuing Bank                      shall be required for an assignment of all or any portion of a Term Loan; and                              (D)   the Swingline Lender; provided that no consent of the Swingline                      Lender shall be required for an assignment of all or any portion of a Term Loan.                       (ii)  Assignments shall be subject to the following additional conditions:                             (A)    except in the case of an assignment to a Lender or an Affiliate of                      a Lender or an Approved Fund or an assignment of the entire remaining amount of                      the  assigning  Lender’s  Commitment  or  Loans  of  any  Class,  the  amount  of  the                                              80  

 

                       Commitment or Loans of the assigning Lender subject to each such assignment                      (determined as of the date the Assignment and Assumption with respect to such                      assignment  is  delivered  to  the  Administrative  Agent)  shall  not be  less  than                      $5,000,000 unless each of the Borrower and the Administrative Agent otherwise                      consent, provided that no such consent of the Borrower shall be required if an                      Event of Default has occurred and is continuing;                              (B)   each  partial  assignment  shall  be  made  as  an  assignment  of  a                      proportionate part of all the assigning Lender’s rights and obligations under this                      Agreement,  provided  that  this  clause  shall  not  be  construed  to prohibit  the                      assignment  of  a  proportionate  part  of  all  the  assigning  Lender’s  rights  and                      obligations in respect of one Class of Commitments or Loans;                             (C)    the  parties  to  each  assignment  shall  execute  and  deliver  to  the                      Administrative  Agent  (x)  an  Assignment  and  Assumption  or  (y)  to the extent                      applicable,  an  agreement  incorporating  an  Assignment  and  Assumption  by                      reference  pursuant  to  an  Approved  Electronic  Platform  as  to  which  the                      Administrative  Agent  and  the  parties  to  the  Assignment  and  Assumption  are                      participants, together with a processing and recordation fee of $3,500, such fee to                      be paid by either the assigning Lender or the assignee Lender or shared between                      such Lenders;                             (D)    the  assignee,  if  it  shall  not  be  a  Lender,  shall  deliver  to  the                      Administrative  Agent  an  Administrative  Questionnaire  in  which  the  assignee                      designates one or more credit contacts to whom all syndicate-level information                      (which  may contain  material  non-public  information,  subject  to the  restrictions                      contained herein, about the Borrower and its Affiliates and their Related Parties or                      their  respective  securities)  will  be  made  available  and  who  may  receive  such                      information  in  accordance  with  the  assignee’s  compliance  procedures  and                      applicable laws, including federal and state securities laws; and                             (E)    no  assignment  shall  be  made  to  (x)  the  Borrower  or  any  of  its                      Subsidiaries or Affiliates or (y) a natural person.                For  the  purposes  of  this  Section  9.04(b),  the  terms  “Approved  Fund”  and  “Ineligible  Institution” have the following meanings:                “Approved  Fund”  means  any  Person (other  than  a  natural  person) that  is  engaged  in  making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary  course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or  (c) an entity or an Affiliate of an entity that administers or manages a Lender.                “Ineligible Institution” means (a) a natural person, (b) a Defaulting Lender or its Parent,  (c) the Borrower, any of its Subsidiaries or any of its Affiliates, or (d) a company, investment vehicle or  trust for, or owned and operated for the primary benefit of, a natural person or relative(s) thereof.                       (iii)  Subject to acceptance and recording thereof pursuant to paragraph (b)(iv)               of  this  Section,  from  and  after  the  effective  date  specified  in  each  Assignment  and               Assumption the assignee thereunder shall be a party hereto and, to the extent of the interest               assigned by such Assignment and Assumption, have the rights and obligations of a Lender               under  this  Agreement,  and  the  assigning  Lender  thereunder  shall,  to  the  extent  of  the                                              81  

 

                        interest assigned by such Assignment and Assumption, be released from its obligations         under this Agreement (and, in the case of an Assignment and Assumption covering all of         the  assigning  Lender’s  rights  and  obligations  under  this  Agreement,  such  Lender  shall         cease to be a party hereto but shall continue to be entitled to the benefits of Sections 2.15,         2.16, 2.17 and 9.03).  Any assignment or transfer by a Lender of rights or obligations under         this Agreement that does not comply with this Section 9.04 shall be treated for purposes of         this Agreement as a sale by such Lender of a participation in such rights and obligations in         accordance with paragraph (c) of this Section.                 (iv)  The Administrative Agent, acting for this purpose as a non-fiduciary agent         of  the  Borrower,  shall  maintain  at  one  of  its  offices  a  copy  of  each  Assignment  and         Assumption delivered to it and a register for the recordation of the names and addresses of         the Lenders, and the Commitment of, and principal amount (and stated interest) of the         Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof from         time  to  time  (the  “Register”).   The  entries  in  the  Register  shall  be  conclusive,  absent         manifest error, and the Borrower, the Administrative Agent, the Issuing Banks and the         Lenders shall treat each Person whose name is recorded in the Register pursuant to the         terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding         notice to the contrary.  The Register shall be available for inspection by the Borrower, any         Issuing Bank and any Lender, at any reasonable time and from time to time upon reasonable         prior notice.                 (v)    Upon  its  receipt  of  (x)  a  duly  completed  Assignment  and  Assumption         executed  by  an  assigning  Lender  and  an  assignee  or  (y)  to  the  extent  applicable,  an         agreement  incorporating  an  Assignment  and  Assumption  by  reference  pursuant  to  an         Approved Electronic Platform as to which the Administrative Agent and the parties to the         Assignment  and  Assumption  are  participants,  the  assignee’s  completed  Administrative         Questionnaire (unless the assignee shall already be a Lender hereunder), the processing         and recordation fee referred to in paragraph (b) of this Section and any written consent to         such assignment required by paragraph (b) of this Section, the Administrative Agent shall         accept such Assignment and Assumption and record the information contained therein in         the Register; provided that if either the assigning Lender or the assignee shall have failed         to make any payment required to be made by it pursuant to Section 2.05(c), 2.06(d) or (e),         2.07(b), 2.18(e) or 9.03(c), the Administrative Agent shall have no obligation to accept         such Assignment and Assumption and record the information therein in the Register unless         and until such payment shall have been made in full, together with all accrued interest         thereon.  No assignment shall be effective for purposes of this Agreement unless it has         been recorded in the Register as provided in this paragraph.          (c)    Any Lender may, without the consent of the Borrower, the Administrative Agent,  any Issuing Bank or the Swingline Lender, sell participations to one or more banks or other entities  (a “Participant”), other than an Ineligible Institution, in all or a portion of such Lender’s rights and  obligations under this Agreement (including all or a portion of its Commitment and the Loans  owing  to  it);  provided  that  (A)  such  Lender’s  obligations  under  this  Agreement  shall  remain  unchanged;  (B)  such  Lender  shall remain  solely  responsible  to  the other parties hereto for the  performance  of  such  obligations;  and  (C)  the  Borrower,  the  Administrative  Agent,  the  Issuing  Banks  and  the  other  Lenders  shall  continue  to  deal  solely  and  directly  with  such  Lender  in  connection with such Lender’s rights and obligations under this Agreement.  Any agreement or  instrument pursuant to which a Lender sells such a participation shall provide that such Lender  shall retain the sole right to enforce this Agreement and to approve any amendment, modification  or waiver of any provision of this Agreement; provided that such agreement or instrument may                                       82  

 

                 provide that such Lender will not, without the consent of the Participant, agree to any amendment,  modification or waiver described in the first proviso to Section 9.02(b) that affects such Participant.   The Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.15, 2.16  and 2.17 (subject to the requirements and limitations therein, including the requirements under  Section 2.17(f) (it being understood that the documentation required under Section 2.17(f) shall be  delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired  its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant  (A) agrees to be subject to the provisions of Sections 2.18 and 2.19 as if it were an assignee under  paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under  Sections 2.15 or 2.17, with respect to any participation, than its participating Lender would have  been entitled to receive, except to the extent such entitlement to receive a greater payment results  from a Change in Law that occurs after the Participant acquired the applicable participation.  To  the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as  though it were a Lender, provided such Participant agrees to be subject to Section 2.18(d) as though  it were a Lender.  Notwithstanding anything in this Agreement to the contrary, any Participant that  is a member of the Farm Credit System that (i) has purchased a participation from a selling Lender  in the minimum amount of $10,000,000 on or after the Effective Date, (ii) is, by written notice to  the Borrower and the Administrative Agent (“Voting Participant Notification”), designated by such  selling Lender as being entitled to be accorded the rights of a voting participant hereunder (any  bank that is a member of the Farm Credit System so designated being called a “Voting Participant”)  and (iii) receives the prior written consent of the Borrower and the Administrative Agent to become  a Voting Participant, shall be entitled to vote (and the voting rights of such selling Lender shall be  correspondingly reduced), on a dollar for dollar basis, as if such participant were a Lender, on any   matter requiring or allowing a Lender to provide or withhold its consent, or to otherwise vote on   any proposed action.  To be effective, each Voting Participant Notification shall, with respect to   any Voting Participant, (i) state the full name, as well as all contact information required of assignee   as  set  forth  in  Exhibit A  hereto  and  (ii) state  the  dollar  amount  of  the  participation  purchased.   Notwithstanding the foregoing, each of the following members of the Farm Credit System shall be  a Voting Participant without delivery of a Voting Participant Notification and without the prior  written consent of the Borrower and the Administrative Agent:  Farm Credit Bank of Texas, Farm  Credit Mid-America, PCA, CoBank, FCB, Northwest Farm Credit Services, FLCA, Greenstone  Farm Credit Services, FLCA, American AgCredit, ACA and Farm Credit of New Mexico, FLCA  a wholly owned subsidiary of Farm Credit of New Mexico, ACA.  The  Borrower  and  the  Administrative Agent shall be entitled to conclusively rely on information contained in notices  delivered pursuant to this paragraph. A Participant that would be a Non-U.S. Lender if it were a  Lender shall not be entitled to the benefits of Section 2.17 unless the Borrower is notified of the  participation sold to such Participant and such Participant agrees for the benefit of the Borrower to  comply with Section 2.17(e) as though it were a Lender.  Each Lender that sells a participation  agrees,  at  the  Borrower’s  request  and  expense,  to  use  reasonable  efforts  to  cooperate  with  the  Borrower  to effectuate  the  provisions of  Section 2.19(b)  with  respect  to  any  Participant.   Each  Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the  Borrower, maintain a register on which it enters the name and address of each Participant and the  principal  amounts  (and  stated  interest)  of  each  Participant’s  interest  in  the  Loans  or  other  obligations under this Agreement (the “Participant Register”); provided that no Lender shall have  any obligation to disclose all or any portion of the Participant Register to any Person (including the  identity  of  any  Participant  or  any  information  relating  to  a  Participant's  interest  in  any  Commitments, Loans, Letters of Credit or its other obligations under any this Agreement) 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 and Section 1.163-5(b) of the Proposed United States Treasury Regulations  (or, in each case, any amended or successor version). The entries in the Participant Register shall                                       83  

 

         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.                (d)    Any Lender may at any time pledge or assign a security interest in all or any portion        of its rights under this Agreement to secure obligations of such Lender, including without limitation        any pledge or assignment to secure obligations to a Federal Reserve Bank or any other central bank        having  jurisdiction  over  such  Lender,  and  this  Section  shall  not  apply  to  any  such  pledge  or        assignment of a security interest; provided that no such pledge or assignment of a security interest        shall  release  a  Lender  from  any  of  its  obligations  hereunder  or  substitute  any  such  pledgee  or        assignee for such Lender as a party hereto.                SECTION 9.05. Survival.  All covenants, agreements, representations and warranties made  by  the  Loan  Parties  in  the  Loan  Documents  and  in  the  certificates  or  other  instruments  delivered  in  connection with or pursuant to this Agreement or any other Loan Document shall be considered to have  been  relied  upon  by  the  other  parties  hereto  and  shall  survive the  execution  and  delivery  of  the  Loan  Documents  and  the  making  of  any  Loans  and  issuance  of  any  Letters  of  Credit,  regardless  of  any  investigation made by any such other party or on its behalf and notwithstanding that the Administrative  Agent, any Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect  representation or warranty at the time any credit is extended hereunder, and shall continue in full force and  effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable  under this Agreement or any other Loan Document is outstanding and unpaid or any Letter of Credit is  outstanding and so long as the Commitments have not expired or terminated.  The provisions of Sections  2.15, 2.16, 2.17 and 9.03 and Article VIII shall survive and remain in full force and effect regardless of the  consummation  of  the  transactions  contemplated  hereby,  the  repayment  of  the  Loans,  the  expiration  or  termination of the Letters of Credit and the Commitments or the termination of this Agreement or any other  Loan Document or any provision hereof or thereof.                SECTION 9.06. Counterparts;  Integration;  Effectiveness;  Electronic  Execution.  This  Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each  of which shall constitute an original, but all of which when taken together shall constitute a single contract.   This Agreement, the other Loan Documents and any separate letter agreements with respect to (i) fees  payable to the Administrative Agent and (ii) the reductions of the Letter of Credit Commitment of any  Issuing  Bank  constitute  the  entire  contract  among  the  parties  relating  to  the  subject  matter  hereof  and  supersede any and all previous agreements and understandings, oral or written, relating to the subject matter  hereof.  Except as provided in Section 4.01, this Agreement shall become effective when it shall have been  executed by the Administrative Agent and when the Administrative Agent shall have received counterparts  hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter  shall be binding upon and inure to the benefit of the parties hereto and their respective successors and  assigns.  Delivery of an executed counterpart of a signature page of this Agreement by telecopy, e-mailed  .pdf or any other electronic means that reproduces an image of the actual executed signature page shall be  effective  as  delivery  of  a  manually  executed  counterpart  of  this  Agreement.   The  words  “execution,”  “signed,” “signature,” “delivery,” and words of like import in or relating to any  document to be signed in  connection  with  this  Agreement  and  the  transactions  contemplated  hereby  shall  be  deemed  to  include  Electronic Signatures, deliveries or the keeping of records in electronic form, each of which shall be of the  same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or  the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any  applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New  York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform                                             84  

 

   Electronic Transactions Act; provided that nothing herein shall require the Administrative Agent to accept  Electronic Signatures in any form or format without its prior written consent.                SECTION 9.07. Severability.  Any provision of any Loan Document held to be invalid,  illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such  invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the  remaining provisions thereof; and the invalidity of a particular provision in a particular jurisdiction shall  not invalidate such provision in any other jurisdiction.                SECTION 9.08. Right  of  Setoff.   If  an  Event  of  Default  shall  have  occurred  and  be  continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time to time,  to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or  demand, provisional or final and in whatever currency denominated) at any time held and other obligations  at any time owing by such Lender or Affiliate to or for the credit or the account of the Borrower or any  Subsidiary Guarantor against any of and all of the Obligations held by such Lender, irrespective of whether  or not such Lender shall have made any demand under the Loan Documents and although such obligations  may be unmatured.  The rights of each Lender under this Section are in addition to other rights and remedies  (including other rights of setoff) which such Lender may have.  Each Lender and each Issuing Bank agrees  to  notify  the  Borrower  and  the  Administrative  Agent  promptly  after  any  such  setoff  and  application;  provided that the failure to give such notice shall not affect the validity of such setoff and application.                SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process.  (a)  This  Agreement and the other Loan Documents (except as otherwise expressly set forth in any such other Loan  Document) shall be construed in accordance with and governed by the law of the State of New York.                (b)    Each  of  the  Lenders  and  the  Administrative  Agent  hereby  irrevocably  and         unconditionally agrees that, notwithstanding the governing law provisions of any applicable Loan         Document, any claims brought against the Administrative Agent by any Lender relating to this         Agreement, any other Loan Document or the consummation or administration of the transactions         contemplated hereby or thereby shall be construed in accordance with and governed by the law of         the State of New York.                (c)    The Borrower hereby irrevocably and unconditionally submits, for itself and its         property, to the exclusive jurisdiction of the United States District Court for the Southern District         of New York sitting in the Borough of Manhattan (or if such court lacks subject matter jurisdiction,         the  Supreme  Court  of  the  State  of  New York  sitting  in  the   Borough  of  Manhattan),  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  the  transactions  relating  hereto  or  thereto,  or  for         recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and         unconditionally agrees that all claims in respect of any such action or proceeding may (and any         such claims, cross-claims or third party claims brought against the Administrative Agent or any of         its Related Parties may only) be heard and determined in such Federal (to the extent permitted by         law) or New York State 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 Issuing Bank or any Lender         may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan         Document against any Loan Party or its properties in the courts of any jurisdiction.                (d)    The Borrower hereby irrevocably and unconditionally waives, to the fullest extent         it may legally and effectively do so, any objection which it may now or hereafter have to the laying                                             85  

 

         of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other        Loan Document in any court referred to in paragraph (c) of this Section.  Each of the parties hereto        hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient        forum to the maintenance of such action or proceeding in any such court.                (e)    Each  party  to  this  Agreement  irrevocably  consents  to  service  of  process  in  the        manner  provided  for  notices  in  Section  9.01.   Nothing  in  this  Agreement  or  any  other  Loan        Document will affect the right of any party to this Agreement to serve process in any other manner        permitted by law.                SECTION 9.10. WAIVER  OF  JURY  TRIAL.   EACH  PARTY  HERETO  HEREBY  WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY  HAVE  TO  A  TRIAL  BY  JURY  IN  ANY  LEGAL  PROCEEDING  DIRECTLY  OR  INDIRECTLY  ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR  THE  TRANSACTIONS  CONTEMPLATED  HEREBY  OR  THEREBY  (WHETHER  BASED               ON  CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT  NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,  EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF  LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT  IT  AND  THE  OTHER  PARTIES  HERETO  HAVE  BEEN  INDUCED  TO  ENTER  INTO THIS  AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS  IN THIS SECTION.                SECTION 9.11. Headings.  Article and Section headings and the Table of Contents used  herein  are  for  convenience  of  reference  only,  are  not  part  of  this  Agreement  and  shall  not  affect  the  construction of, or be taken into consideration in interpreting, this Agreement.                SECTION 9.12. Confidentiality.  Each of the Administrative Agent, the Issuing Banks and  the  Lenders  agrees  to  maintain  the  confidentiality  of  the  Information  (as  defined  below),  except  that  Information  may  be  disclosed  (a)  to  its  and  its  Affiliates’  directors,  officers,  employees  and  agents,  including accountants, legal counsel and other advisors (it being understood that the Persons to whom such  disclosure is made will be informed of the confidential nature of such Information and instructed to keep  such Information confidential) who need to know such information, (b) to the extent requested by any  Governmental  Authority  (including  any  self-regulatory  authority,  such  as  the  National  Association  of  Insurance Commissioners), (c) to the extent required by applicable laws or regulations or by any subpoena  or similar legal process, (d) to any other party to this Agreement, (e) in connection with the exercise of any  remedies under this Agreement or any other Loan Document or any suit, action or proceeding relating to  this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f)  subject to an agreement containing provisions substantially the same as those of this Section, to (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 the Borrower and its obligations, (g) with the consent of the Borrower or  (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this  Section  or  (ii)  becomes  available  to  the  Administrative  Agent, any  Issuing  Bank  or  any  Lender  on  a  nonconfidential  basis  from  a  source  other  than  the  Borrower.   For  the  purposes  of  this  Section,  “Information” means all information received from the Borrower or any of its Subsidiaries or agents relating  to the Borrower or any of its Subsidiaries or its or their respective business, other than any such information  that is available to the Administrative Agent, such Issuing Bank, or such Lender on a nonconfidential basis  prior to disclosure by the Borrower or any of its Subsidiaries or agents and other than information pertaining  to  this  Agreement  routinely  provided  by  arrangers  to  data  service  providers,  including  league  table  providers,  that  serve  the  lending  industry.   Any  Person  required  to  maintain  the  confidentiality  of                                             86  

 

   Information as provided in this Section shall be considered to have complied with its obligation to do so if  such Person has exercised the same degree of care to maintain the confidentiality of such Information as  such Person would accord to its own confidential information.    In addition, the Administrative Agent and  the Lenders may disclose the existence of this Agreement and information about this Agreement to market  data collectors, similar service providers to the lending industry and service providers to the Administrative  Agent and the Lenders in connection with the administration of this Agreement, the other Loan Documents,  and the Commitments.                EACH LENDER ACKNOWLEDGES THAT INFORMATION AS DEFINED IN THE  IMMEDIATELY  PRECEDING  PARAGRAPH  FURNISHED  TO  IT  PURSUANT  TO  THIS  AGREEMENT  MAY  INCLUDE  MATERIAL  NON-PUBLIC  INFORMATION  CONCERNING  THE  BORROWER  AND   ITS  RELATED  PARTIES  OR  THEIR  RESPECTIVE  SECURITIES,  AND  CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING                THE USE  OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL  NON-PUBLIC  INFORMATION  IN  ACCORDANCE  WITH  THOSE  PROCEDURES  AND  APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.                ALL    INFORMATION,     INCLUDING     REQUESTS     FOR   WAIVERS     AND  AMENDMENTS,  FURNISHED  BY  THE  BORROWER  OR  THE  ADMINISTRATIVE  AGENT  PURSUANT  TO,  OR  IN  THE  COURSE  OF  ADMINISTERING,  THIS  AGREEMENT       WILL  BE  SYNDICATE-LEVEL  INFORMATION,  WHICH  MAY  CONTAIN  MATERIAL  NON-PUBLIC  INFORMATION ABOUT THE BORROWER, THE OTHER LOAN PARTIES AND THEIR RELATED  PARTIES OR THEIR RESPECTIVE SECURITIES.  ACCORDINGLY, EACH LENDER REPRESENTS  TO THE BORROWER AND THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS  ADMINISTRATIVE  QUESTIONNAIRE  A  CREDIT  CONTACT  WHO  MAY  RECEIVE  INFORMATION  THAT  MAY  CONTAIN  MATERIAL  NON-PUBLIC  INFORMATION  IN  ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW.                SECTION 9.13. USA PATRIOT Act.  Each Lender that is subject to the requirements of  the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”) hereby  notifies each Loan Party that pursuant to the requirements of the Act, it is required to obtain, verify and  record information that identifies such Loan Party, which information includes the name and address of  such Loan Party and other information that will allow such Lender to identify such Loan Party in accordance  with the Act.                SECTION 9.14. Releases  of  Subsidiary  Guarantors.   (a)   A  Subsidiary  Guarantor  shall  automatically be released from its obligations under the Subsidiary Guaranty upon the consummation of  any transaction permitted by this Agreement as a result of which such Subsidiary Guarantor ceases to be a  Subsidiary; provided that, if so required by this Agreement, the Required Lenders shall have consented to  such transaction and the terms of such consent shall not have provided otherwise.  In connection with any  termination or release pursuant to this Section, the Administrative Agent shall (and is hereby irrevocably  authorized by each Lender to) execute and deliver to any Loan Party, at such Loan Party’s expense, all  documents that such Loan Party shall reasonably request to evidence such termination or release.  Any  execution and delivery of documents pursuant to this Section shall be without recourse to or warranty by  the Administrative Agent.                (b)    Further, the Administrative Agent shall (and is hereby irrevocably authorized by         each  Lender  to),  upon  the  request  of  the  Borrower,  release  any Subsidiary  Guarantor  from  its        obligations under the Subsidiary Guaranty if such Subsidiary Guarantor is no longer a Material        Domestic Subsidiary.                                              87  

 

                (c)    At such time as the principal and interest on the Loans, all LC Disbursements, the         fees, expenses and other amounts payable under the Loan Documents and the other Obligations         (other than obligations under any Swap Agreement or any Banking Services Agreement, and other         Obligations expressly stated to survive such payment and termination) shall have been paid in full,         the Commitments shall have been terminated and no Letters of Credit shall be outstanding, the         Subsidiary  Guaranty  and  all  obligations  (other  than  those  expressly  stated  to  survive  such         termination) of each Subsidiary Guarantor thereunder shall automatically terminate, all without         delivery of any instrument or performance of any act by any Person.                SECTION 9.15. Interest Rate Limitation.  Notwithstanding anything herein to the contrary,  if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts that  are treated as interest on such Loan under applicable law (collectively the “Charges”), shall exceed the  maximum  lawful  rate  (the  “Maximum  Rate”)  that  may  be  contracted  for,  charged,  taken,  received  or  reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in  respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the  Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect  of such Loan but were not payable as a result of the operation of this Section shall be accumulated and the  interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not  above the Maximum Rate therefor) until such accumulated amount, together with interest thereon at the  NYFRB Rate to the date of repayment, shall have been received by such Lender.                SECTION 9.16.  No  Advisory  or  Fiduciary  Responsibility.   (a)   The  Borrower  acknowledges and agrees, and acknowledges its Subsidiaries’ understanding, that no Credit Party will have  any obligations except those obligations expressly set forth herein and in the other Loan Documents and  each Credit Party is acting solely in the capacity of an arm’s length contractual counterparty to the Borrower  with respect to the Loan Documents and the transactions contemplated herein and therein and not as a  financial advisor or a fiduciary to, or an agent of, the Borrower or any other person.  The Borrower agrees  that it will not assert any claim against any Credit Party based on an alleged breach of fiduciary duty by  such  Credit  Party  in  connection  with  this  Agreement  and  the  transactions  contemplated  hereby.   Additionally, the Borrower acknowledges and agrees that no Credit Party is advising the Borrower as to  any legal, tax, investment, accounting, regulatory or any other matters in any jurisdiction.  The Borrower  shall consult with its own advisors concerning such matters and shall be responsible for making its own  independent  investigation  and  appraisal  of  the  transactions  contemplated  herein  or  in  the  other  Loan  Documents, and the Credit Parties shall have no responsibility or liability to the Borrower with respect  thereto.                (b)    The  Borrower  further  acknowledges  and  agrees,  and  acknowledges its         Subsidiaries’ understanding, that each Credit Party, together with its Affiliates, is a full service         securities or banking firm engaged in securities trading and brokerage activities as well as providing         investment banking and other financial services.  In the ordinary course of business, any Credit         Party may provide investment banking and other financial services to, and/or acquire, hold or sell,         for its own accounts and the accounts of customers, equity, debt and other securities and financial         instruments (including bank loans and other obligations) of, the Borrower, its Subsidiaries and other         companies  with  which  the  Borrower  or  any  of  its  Subsidiaries  may  have  commercial  or  other         relationships.  With respect to any securities and/or financial instruments so held by any Credit         Party or any of its customers, all rights in respect of such securities and financial instruments,         including any voting rights, will be exercised by the holder of the rights, in its sole discretion.                (c)    In  addition,  the  Borrower  acknowledges  and  agrees,  and  acknowledges  its         Subsidiaries’  understanding,  that  each  Credit  Party  and  its  Affiliates  may  be  providing  debt         financing, equity capital or other services (including financial advisory services) to other companies                                             88  

 

         in respect of which the Borrower or any of its Subsidiaries may have conflicting interests regarding        the transactions described herein and otherwise.  No Credit Party will use confidential information        obtained from the Borrower by virtue of the transactions contemplated by the Loan Documents or        its other relationships with the Borrower in connection with the performance by such Credit Party        of services for other companies, and no Credit Party will furnish any such information to other        companies.  The Borrower also acknowledges that no Credit Party has any obligation to use in        connection  with  the  transactions  contemplated  by  the  Loan  Documents,  or  to  furnish  to  the        Borrower or any of its Subsidiaries, confidential information obtained from other companies.                SECTION 9.17.    Acknowledgement  and  Consent  to  Bail-In  of  EEA  Financial  Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement,  arrangement or understanding among any such parties, each party hereto acknowledges that any liability of  any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured,  may be subject to the Write-Down and Conversion Powers of an EEA Resolution Authority and agrees and  consents to, and acknowledges and agrees to be bound by:                (a)    the application of any Write-Down and Conversion Powers by an EEA Resolution         Authority to any such liabilities arising hereunder which may be payable to it by any party hereto         that is an EEA Financial Institution; and                (b)    the effects of any Bail-In Action on any such liability, including, if applicable:                       (i)    a reduction in full or in part or cancellation of any such liability;                       (ii)   a  conversion  of  all,  or  a  portion  of,  such  liability  into  shares  or  other         instruments of ownership in such EEA Financial Institution, its parent entity, or a bridge institution         that may be issued to it or otherwise conferred on it, and that such shares or other instruments of         ownership will be accepted by it in lieu of any rights with respect to any such liability under this         Agreement or any other Loan Document; or                       (iii)  the variation of the terms of such liability in connection with the exercise         of the Write-Down and Conversion Powers of any EEA Resolution Authority.                                              [Signature Pages Follow]                                             89  

 

 

 

 

 

 

 

             AGFIRST   FARM CREDIT BANK, individually as               a Lender, as an Issuing Bank and as a Co­              Syndication Agent                By                    Nam                    Title:    Signature Page to Credit Agreement       Universal Corporation  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                  SCHEDULE 2.01A                                                                               COMMITMENTS             LENDER                REVOLVING       TERM A-1 LOAN      TERM A-2 LOAN                                 COMMITMENT        COMMITMENT        COMMITMENT                                                                              JPMORGAN CHASE BANK, N.A.         $42,250,623.45    $25,249,376.55              $0    SUNTRUST BANK                     $42,250,623.44    $25,249,376.56              $0    AGFIRST FARM CREDIT BANK          $48,000,000.00              $0        $220,000,000    KEYBANK NATIONAL                  $28,480,049.88    $17,019,950.12              $0  ASSOCIATION   CAPITAL ONE, NATIONAL             $28,480,049.88    $17,019,950.12              $0  ASSOCIATION  BRANCH BANKING & TRUST            $21,907,730.67    $13,092,269.33              $0  COMPANY  FIRST TENNESSEE BANK              $21,907,730.67    $13,092,269.33              $0  NATIONAL ASSOCIATION  UBS SWITZERLAND AG                $21,907,730.67    $13,092,269.33              $0    CITIBANK, N.A                     $21,907,730.67    $13,092,269.33              $0    UNION BANK & TRUST                $21,907,730.67    $13,092,269.33              $0    FARM CREDIT BANK OF               $35,000,000.00              $0                $0  TEXAS    COBANK, ACB                       $33,000,000.00              $0                $0    FARM CREDIT MID-AMERICA,          $30,000,000.00              $0                $0  PCA  GREENSTONE FARM CREDIT            $17,000,000.00              $0                $0  SERVICES, ACA  NORTHWEST FARM CREDIT             $16,000,000.00              $0                $0  SERVICES, PCA  AGGREGATE                          $430,000,000       $150,000,000      $220,000,000  COMMITMENTS                                                                      

 

                                                   SCHEDULE 2.01B                                                                       LETTER OF CREDIT COMMITMENTS                                            LENDER                               LETTER OF CREDIT                                                                    COMMITMENT     JPMORGAN CHASE BANK, N.A.                                                 $8,333,334                                                                                       SUNTRUST BANK                                                             $8,333,333                                                                                       AGFIRST FARM CREDIT BANK                                                  $8,333,333                                                                                       TOTAL LETTER OF CREDIT COMMITMENTS                                       $25,000,000                                                                                   

 

  Schedule 3.05            Material Litigation                                     NONE  

 

      SCHEDULE 3.10   SUBSIDIARIES                                                              Direct and Indirect Ownership Organized under law of  UNIVERSAL CORPORATION                               Borrower                   Virginia  AmeriNic, Inc.                                      100%                       Virginia  Aviation and Regional Services, Ltd.                100%                       Malawi   B.V. Beleggings-en Beheermaatschappij "De Amstel"   100%                       Netherlands   B.V. Deli-HTL Tabak Maatschappij                    100%                       Netherlands   CA Bautz GmbH                                       100%                       Germany   Carolina Innovative Food Ingredients, Inc.          82%                        Virginia   Carolina Recycled AG Materials, LLC                 100%                       Virginia  Casa Export, Limited                                100%                       Virginia   CATSCO, Inc.                                        100%                       British Virgin Isles   CJSC Universal Tabak                                100%                       Russia   Continental Tobacco S.A.                            100%                       Switzerland   Deltafina, S.r.l.                                   100%                       Italy   Deutsch-hollandische Tabakgesellschaft mbH          100%                       Germany   Deutsch-hollandische Tabakgesellschaft mbH and Co. K.G.  100%                  Germany  Ermor Tabarama-Tabacos do Brasil Ltda.              100%                       Brazil   Gebruder Kulenkampff GmbH                           100%                       Germany   Global Laboratory Services, Inc.                    100%                       Virginia   Indoco International B.V.                           100%                       Netherlands  Inetab-Kaubeck, SRL                                 100%                       Dominican Republic  Itofina, S.A.                                       100%                       Switzerland   J.P. Taylor Company, L.L.C.                         100%                       Virginia   L’Agricola, S.r.L.                                  100%                       Italy   Lancaster Leaf Tobacco Company of Pennsylvania, Inc.  100%                     Virginia   Limbe Leaf Tobacco Company Limited                  58.01%                     Malawi   Mozambique Leaf Tobacco Limitada                    100%                       Mozambique   Procesadora Unitab, S.A.                            100%                       Guatemala  PT. Pandu Sata Utama                                100%                       Indonesia   PT. Tempu Rejo                                      100%                       Indonesia    Tabacalera San Fernando S.R.L.                      100%                       Paraguay    Tabacos Del Pacifico Norte, S.A. De C.V.            100%                       Mexico                                                        2  

 

      SCHEDULE 3.10   SUBSIDIARIES     TAES, S.L.                                          100%                       Spain    Tanzania Leaf Tobacco Co., Ltd                      100%                       Tanzania   Tanzania Tobacco Processors Ltd.                    90%                        Tanzania  ULG Universal Leaf Germany GmbH                     100%                       Germany   ULT Support Services India Private Ltd.             100%                       India   Ultoco, S.A.                                        100%                       Switzerland   Ultoco Limited                                      100%                       British Virgin Islands   Ultoco Services, S.A.                               100%                       Switzerland   Universal Finance B.V.                              100%                       Netherlands   Universal Innovations Corporation Inc.              82%                        Virginia   Universal Leaf Africa (Pty) Ltd.                    100%                       South Africa   Universal Leaf (Asia) Pte Ltd.                      100%                       Singapore   Universal Leaf Far East Ltd.                        100%                       British Virgin Islands   Universal Leaf Nicaragua S.A.                       100%                       Nicaragua   Universal Leaf North America U. S., Inc.            100%                       North Carolina    Universal Leaf Philippines Inc.                     51%                        Philippines   Universal Leaf South Africa (Pty) Limited           100%                       South Africa    Universal Leaf Tabacos Ltda.                        100%                       Brazil    Universal Leaf Tabacos S.R.L.                       100%                       Argentina    Universal Leaf Tobacco Company, Inc.                100%                       Virginia   Universal Leaf Tobacco Hungary Limited              100%                       Hungary    Universal Leaf Tobacco International, Inc           100%                       Virginia    Universal Leaf Tobacco Poland Sp. z.o.o.            100%                       Poland    Virginia Tobacco Company, Inc.                      100%                       Virginia    Zambia Leaf Tobacco Co., Ltd.                       100%                       Zambia    Zimbabwe Leaf Tobacco Company (Private) Limited     79.77%                     Zimbabwe    Zimleaf Holdings (Private) Limited                  79.77%                     Zimbabwe                                                    3  

 

                           Schedule 3.14                  Disclosed Environmental Matters                                                             NONE                     

 

                                                                               EXHIBIT A                              ASSIGNMENT AND ASSUMPTION                This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the  Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”)  and [Insert name of Assignee] (the “Assignee”).  Capitalized terms used but not defined herein shall have  the meanings given to them in the Credit Agreement identified below (as amended, restated, supplemented  or otherwise modified from time to time, the “Credit Agreement”), receipt of a copy of which is hereby  acknowledged by the Assignee.  The Standard Terms and Conditions set forth in Annex 1 attached hereto  are  hereby  agreed  to  and  incorporated  herein  by  reference  and  made  a  part  of  this  Assignment  and  Assumption as if set forth herein in full.                For  an  agreed  consideration,  the  Assignor  hereby  irrevocably  sells  and  assigns  to  the  Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in  accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date  inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s rights and obligations  in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered  pursuant thereto to the extent related to the amount and percentage interest identified below of all of such  outstanding rights and obligations of the Assignor under the respective facilities identified below (including  any  letters  of  credit,  guarantees,  and  swingline  loans  included  in  such  facilities)  and  (ii)  to  the  extent  permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the  Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in  connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or  the loan transactions governed thereby or in any way based on or related to any of the foregoing, including  contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity  related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations  sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned  Interest”).  Such sale and assignment is without recourse to the Assignor and, except as expressly provided  in this Assignment and Assumption, without representation or warranty by the Assignor.    1.  Assignor:         2.  Assignee:                              [and is an Affiliate/Approved Fund of [identify Lender]1]        3.  Borrower(s):           Universal Corporation         4.  Administrative Agent:  JPMorgan Chase Bank, N.A., as the administrative agent under the Credit                              Agreement        5.  Credit Agreement:      The Credit Agreement dated as of December 20, 2018 among Universal                              Corporation, the Lenders parties thereto, JPMorgan Chase Bank, N.A., as                              Administrative Agent, and the other agents parties thereto                                                                                         1 Select as applicable.                                                  

 

   6.    Assigned Interest:    Facility Assigned2   Aggregate Amount of        Amount of        Percentage Assigned of                        Commitment/Loans for   Commitment/ Loans     Commitment/Loans3                        all Lenders                 Assigned    $ $ %    $ $ %    $ $ %     Effective Date:  _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND  WHICH  SHALL  BE  THE  EFFECTIVE  DATE  OF  RECORDATION  OF  TRANSFER  IN THE  REGISTER THEREFOR.]   The Assignee agrees to deliver to the Administrative Agent a completed Administrative Questionnaire in  which the Assignee designates one or more credit contacts to whom all syndicate-level information (which  may contain material non-public information about the Borrower, the Loan Parties and their Related Parties  or their respective securities) will be made available and who may receive such information in accordance  with the Assignee’s compliance procedures and applicable laws, including federal and state securities laws.   The terms set forth in this Assignment and Assumption are hereby agreed to:                                              ASSIGNOR                                                                                          [NAME OF ASSIGNOR]                                                                                                                                       By:                                                    Title:                                              ASSIGNEE                                                                                          [NAME OF ASSIGNEE]                                                                                                                                       By:                                                    Title:                                                           2 Fill in the appropriate terminology for the types of facilities under the Credit Agreement that are being assigned  under this Assignment (e.g., “Revolving Commitment”, “Term Loan Commitment”, etc.).  3 Set forth, so at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.                                              2  

 

   Consented to and Accepted:    JPMORGAN CHASE BANK, N.A.,   as Administrative Agent   [and Issuing Bank and Swingline Lender]      By:        Title:   [[________], as an Issuing Bank]      By:        Title:   [Consented to:]4    UNIVERSAL CORPORATION      By:    Title:                                                           4 To be added only if the consent of the Borrower is required by the terms of the Credit Agreement.                                              3  

 

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

 

   Acceptance and adoption of the terms of this Assignment and Assumption by the Assignee and the Assignor  by Electronic Signature or delivery of an executed counterpart of a signature page of this Assignment and  Assumption by any Approved Electronic Platform shall be effective as delivery of 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.                                               2  

 

                                         EXHIBIT B                                                                                     [FORM OF]                     [REVOLVING][TERM A-1][TERM A-2] LOAN NOTE                                                                          December 20, 2018          FOR  VALUE  RECEIVED,  the  undersigned,  UNIVERSAL  CORPORATION,  a  Virginia  corporation (the “Borrower”), HEREBY UNCONDITIONALLY PROMISES TO PAY to [LENDER] (the  “Lender”)  the  aggregate  unpaid  amount  of  all  [Revolving][Term  A-1][Term  A-2]  Loans  made  by  the  Lender to the Borrower pursuant to the “Credit Agreement” (as defined below) on the [Revolving/TLA- 1][TLA-2] Maturity Date or on such earlier date as may be required by the terms of the Credit Agreement.   Capitalized terms used herein and not otherwise defined herein are as defined in the Credit Agreement.         The  undersigned  Borrower  promises  to  pay  interest  on  the  unpaid  principal  amount  of  each  [Revolving][Term A-1][Term A-2] Loan made to it from the date of such Loan until such principal amount  is paid in full at a rate or rates per annum determined in accordance with the terms of the Credit Agreement.   Interest hereunder is due and payable at such times and on such dates as set forth in the Credit Agreement.         At  the  time  of  each  [Revolving][Term  A-1][Term  A-2]  Loan,  and  upon  each  payment  or  prepayment of principal of each [Revolving][Term A-1][Term A-2] Loan, the Lender shall make a notation  either on the schedule attached hereto and made a part hereof, or in such Lender’s own books and records,  in each case specifying the amount of such [Revolving][Term A-1][Term A-2] Loan, the respective Interest  Period thereof (in the case of Eurodollar Loans) or the amount of principal paid or prepaid with respect to  such [Revolving][Term A-1][Term A-2] Loan, as applicable; provided that the failure of the Lender to  make  any  such  recordation  or  notation  shall  not  affect  the  Obligations  of  the  undersigned  Borrower  hereunder or under the Credit Agreement.         This [Revolving][Term A-1][Term A-2] Loan Note is one of the Notes referred to in, and is entitled  to the benefits of, that certain Credit Agreement dated as of December 20, 2018 (as amended, restated,  supplemented or otherwise modified from time to time, the “Credit Agreement”), among Borrower, the  Lenders  party  thereto  and  JPMorgan  Chase  Bank,  N.A.,  as  administrative  agent  (in  such  capacity,  the  “Administrative  Agent”).   The  Credit  Agreement,  among  other  things,  (i)  provides  for  the  making  of  [Revolving][Term A-1][Term A-2] Loans by the Lender to the undersigned Borrower from time to time in  an aggregate amount not to exceed at any time outstanding amount of such Lender’s [Revolving][Term A- 1 Loan][Term A-2 Loan] Commitment, the indebtedness of the undersigned Borrower resulting from each  such [Revolving][Term A-1][Term A-2] Loan to it being evidenced by this [Revolving][Term A-1][Term  A-2] Loan Note, and (ii) contains provisions for acceleration of the maturity hereof upon the happening of  certain stated events and also for prepayments of the principal hereof prior to the maturity hereof upon the  terms and conditions therein specified.        Demand, presentment, protest and notice of nonpayment and protest are hereby waived by the  Borrower.        Whenever  in  this  [Revolving][Term A-1][Term  A-2]  Loan  Note  reference  is  made  to  the  Administrative Agent, the Lender or the Borrower, such reference shall be deemed to include, as applicable,  a reference to their respective successors and assigns.  The provisions of this [Revolving][Term A-1][Term  A-2] Loan Note shall be binding upon and shall inure to the benefit of said successors and assigns.  The  Borrower’s  successors  and  assigns  shall  include,  without  limitation,  a  receiver,  trustee  or  debtor  in  possession of or for the Borrower.                                            ***      

 

         This  [Revolving][Term  A-1][Term  A-2]  Loan  Note  shall  be  construed  in  accordance  with  and  governed by the law of the State of New York.                                             UNIVERSAL CORPORATION                                                                                                                                       By:                                               Name:                                             Title:                              [Revolving][Term A-1][Term A-2] Loan Note  

 

                                         EXHIBIT C                                                                          FORM OF BORROWING REQUEST   [JPMorgan Chase Bank, N.A. as Administrative Agent      For the Lenders referred to below  10 South Dearborn Street, 2nd Floor  Chicago, Illinois 60603  Attention: Ladesiree Williams  Telecopy No.: (888) 303-9734]1                                                                                    [Date]   Ladies and Gentlemen:                Reference is made to the Credit Agreement dated as of December 20, 2018 (as amended,  restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Universal  Corporation (the “Borrower”), the Lenders party thereto and JPMorgan Chase Bank, N.A., as administrative  agent (in such capacity, the “Administrative Agent”).  This notice constitutes a Borrowing Request and  Borrower hereby requests a Borrowing under the Credit Agreement, and in connection with such request  Borrower specifies the following information with respect to such Borrowing requested hereby:   1.     Aggregate amount of Borrowing2:  _________   2.     Date of Borrowing (which shall be a Business Day):  _________   3.     Type of Borrowing (ABR or Eurodollar):  _________   4.     Class of Borrowing (Revolving or Term):  _________   5.     Interest Period (if a Eurodollar Borrowing)3:  _________   6.     Location and number of Borrower’s account to which funds are to be disbursed shall be as         specified in the Account Designation Letter.                The Borrower hereby represents and warrants that the conditions specified in paragraphs  (a) and (b) of Section 4.02 of the Credit Agreement are satisfied.                                           Very truly yours,                                                                                    UNIVERSAL CORPORATION                                            By:  _________________________________________                                           Name:                                           Title:                                                          1 NTD: To conform to notice section.  2      Not less than $5.0 million and an integral multiple of $1.0 million.  3     Which must comply with the definition of “Interest Period” and end not later than the Maturity Date.      

 

                     EXHIBIT D             [Intentionally Omitted]                                     

 

                                         EXHIBIT E                                                                    FORM OF INCREASING LENDER SUPPLEMENT                INCREASING LENDER SUPPLEMENT, dated __________, 20___ (this “Supplement”),  by and among each of the signatories hereto, to the Credit Agreement, dated as of December 20, 2018 (as  amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among  Universal Corporation (the “Borrower”), the Lenders party thereto and JPMorgan Chase Bank, N.A., as  administrative agent (in such capacity, the “Administrative Agent”).                                     W I T N E S S E T H                WHEREAS, pursuant to Section 2.20 of the Credit Agreement, the Borrower has the right,  subject to the terms and conditions thereof, to effectuate from time to time an increase in the aggregate  Revolving  Commitments  and/or  one  or  more  tranches  of  Incremental  Term  Loans  under  the  Credit  Agreement by requesting one or more Lenders to increase the amount of its Revolving Commitment and/or  to participate in such a tranche;                WHEREAS, the Borrower has given notice to the Administrative Agent of its intention to  [increase the aggregate Revolving Commitments] [and] [enter into a tranche of Incremental Term Loans]  pursuant to such Section 2.20; and                WHEREAS, pursuant to Section 2.20 of the Credit Agreement, the undersigned Increasing  Lender now desires to [increase the amount of its Revolving Commitment] [and] [participate in a tranche  of Incremental Term Loans] under the Credit Agreement by executing and delivering to the Borrower and  the Administrative Agent this Supplement;                NOW, THEREFORE, each of the parties hereto hereby agrees as follows:                1.     The undersigned Increasing Lender agrees, subject to the terms and conditions of  the  Credit  Agreement,  that  on  the  date  of  this  Supplement  it  shall  [have  its  Revolving  Commitment  increased by $[__________], thereby making the aggregate amount of its total Revolving Commitments  equal to $[__________]] [and] [(a) participate in a tranche of Incremental Term Loans with a commitment  amount equal to $[__________] with respect thereto and (b) make such amount of Incremental Term Loans  available pursuant to Section 2.20 of the Credit Agreement].                2.     The Borrower hereby represents and warrants that no Default or Event of Default  has occurred and is continuing on and as of the date hereof.                3.     Terms defined in the Credit Agreement shall have their defined meanings when  used herein.                4.     This Supplement shall be governed by, and construed in accordance with, the laws  of the State of New York.                5.     This Supplement may be executed in any number of counterparts and by different  parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original  and all of which taken together shall constitute one and the same document.      

 

                IN  WITNESS  WHEREOF,  each  of  the  undersigned  has  caused  this  Supplement  to  be  executed and delivered by a duly authorized officer on the date first above written.                                              [INSERT NAME OF INCREASING LENDER]                                                                                                                                       By:                                               Name:                                             Title:   Accepted and agreed to as of the date first written above:    UNIVERSAL CORPORATION      By:    Name:  Title:   Acknowledged as of the date first written above:    JPMORGAN CHASE BANK, N.A.  as Administrative Agent      By:    Name:  Title:                                               2    

 

                                         EXHIBIT F                                                                   FORM OF AUGMENTING LENDER SUPPLEMENT                AUGMENTING  LENDER  SUPPLEMENT,  dated  __________,  20___  (this  “Supplement”), by and among each of the signatories hereto, to the Credit Agreement, dated as of December  20,  2018  (as  amended,  restated,  supplemented  or  otherwise  modified  from  time  to  time,  the  “Credit  Agreement”), among Universal Corporation (the “Borrower”), the Lenders party thereto and JPMorgan  Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”).                                     W I T N E S S E T H                WHEREAS, the Credit Agreement provides in Section 2.20 thereof that any bank, financial  institution  or  other  entity  may  [extend  Revolving  Commitments] [and]  [participate  in  tranches  of  Incremental Term Loans] under the Credit Agreement subject to the approval of the Borrower and the  Administrative  Agent,  by  executing  and  delivering  to  the  Borrower  and  the  Administrative  Agent  a  supplement to the Credit Agreement in substantially the form of this Supplement; and                WHEREAS, the undersigned Augmenting Lender was not an original party to the Credit  Agreement but now desires to become a party thereto;                NOW, THEREFORE, each of the parties hereto hereby agrees as follows:                1.     The undersigned Augmenting Lender agrees to be bound by the provisions of the  Credit Agreement and agrees that it shall, on the date of this Supplement, [(a)] become a Lender for all  purposes of the Credit Agreement to the same extent as if originally a party thereto, with a [Revolving  Commitment  of  $[__________]]  [and]  [commitment  with  respect  to Incremental  Term  Loans  of  $[__________] and (b) make such amount of Incremental Term Loans available pursuant to Section 2.20  of the Credit Agreement].                2.     The undersigned Augmenting Lender (a) represents and warrants that it is legally  authorized to enter into this Supplement; (b) confirms that it has received a copy of the Credit Agreement,  together with copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as  applicable, and has reviewed such other documents and information as it has deemed appropriate to make  its own credit analysis and decision to enter into this Supplement; (c) agrees that it will, independently and  without reliance upon the Administrative Agent 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 Credit Agreement or any other instrument or document furnished pursuant  hereto or thereto; (d) appoints and authorizes the Administrative Agent to take such action as agent on its  behalf and to exercise such powers and discretion under the Credit Agreement or any other instrument or  document furnished pursuant hereto or thereto as are delegated to the Administrative Agent by the terms  thereof, together with such powers as are incidental thereto; and (e) agrees that it will be bound by the  provisions of the Credit Agreement and will perform in accordance with its terms all the obligations which  by the terms of the Credit Agreement are required to be performed by it as a Lender.                3.     The undersigned’s address for notices for the purposes of the Credit Agreement is  as follows:                              [___________]                                   

 

                4.     The Borrower hereby represents and warrants that no Default or Event of Default  has occurred and is continuing on and as of the date hereof.                5.     Terms defined in the Credit Agreement shall have their defined meanings when  used herein.                6.     This Supplement shall be governed by, and construed in accordance with, the laws  of the State of New York.                7.     This Supplement may be executed in any number of counterparts and by different  parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original  and all of which taken together shall constitute one and the same document.                           [remainder of this page intentionally left blank]                                               2    

 

                IN  WITNESS  WHEREOF,  each  of  the  undersigned  has  caused  this  Supplement  to  be  executed and delivered by a duly authorized officer on the date first above written.                                              [INSERT NAME OF AUGMENTING LENDER]                                                                                                                                       By:                                               Name:                                             Title:   Accepted and agreed to as of the date first written above:    UNIVERSAL CORPORATION      By:    Name:  Title:   Acknowledged as of the date first written above:    JPMORGAN CHASE BANK, N.A.  as Administrative Agent      By:    Name:  Title:                                               3    

 

                                         EXHIBIT G                                                                           LIST OF CLOSING DOCUMENTS                                    Universal Corporation                                                                                CREDIT FACILITIES                                      December 20, 2018                                                                           LIST OF CLOSING DOCUMENTS1                                 A.     LOAN DOCUMENTS   1.    Credit  Agreement  (the  “Credit  Agreement”)  by  and  among  Universal  Corporation,  a  Virginia        corporation (the “Borrower”), the institutions from time to time parties thereto as Lenders (the        “Lenders”) and JPMorgan Chase Bank, N.A., in its capacity as Administrative Agent for itself and        the  other  Lenders  (the  “Administrative  Agent”),  evidencing  a  revolving  credit  facility  to  the        Borrower from the Lenders in an initial aggregate principal amount of $430,000,000, a term A-1        loan  facility  to  the  Borrower  from  the  Lenders  in  an  initial  aggregate  principal  amount  of        $150,000,000 and a term A-2 loan facility to the Borrower from the Lenders in an initial aggregate        principal amount of $220,000,000.                                        SCHEDULES         Schedule 2.01A – Commitments        Schedule 2.01B – Letter of Credit Commitments        Schedule 3.05 – Material Litigation        Schedule 3.10 – Subsidiaries        Schedule 3.14 – Disclosed Environmental Matters                                          EXHIBITS         Exhibit A – Form of Assignment and Assumption        Exhibit B – Form of Note        Exhibit C – Form of Borrowing Request        Exhibit D – [Intentionally Omitted]        Exhibit E – Form of Increasing Lender Supplement        Exhibit F – Form of Augmenting Lender Supplement        Exhibit G – List of Closing Documents        Exhibit H – Form of Subsidiary Guaranty        Exhibit I-1 – Form of U.S. Tax Certificate (Non-U.S. Lenders That Are Not Partnerships)        Exhibit I-2 – Form of U.S. Tax Certificate (Non-U.S. Participants That Are Not Partnerships)        Exhibit I-3 – Form of U.S. Tax Certificate (Non-U.S. Participants That Are Partnerships)        Exhibit I-4 – Form of U.S. Tax Certificate (Non-U.S. Lenders That Are Partnerships)         Exhibit J – Form of Officer’s Certificate                                                          1 Each capitalized term used herein and not defined herein shall have the meaning assigned to such term in the  above-defined Credit Agreement.  Items appearing in bold and italics shall be prepared and/or provided by the  Borrower and/or Borrower’s counsel.     

 

          Exhibit K – Form of Account Designation Letter   2.     Notes executed by the Borrower in favor of each of the Lenders, if any, which has requested a note         pursuant to Section 2.10(e) of the Credit Agreement.                             B.     CORPORATE DOCUMENTS   3.     Certificate of the Secretary or an Assistant Secretary of each Loan Party certifying (i) that there         have been no changes in the Certificate of Incorporation or other charter document of such         Loan Party, as attached thereto and as certified as of a recent date by the Secretary of State (or         analogous governmental entity) of the jurisdiction of its organization, since the date of the         certification thereof by such governmental entity, (ii) the By-Laws or other applicable         organizational document, as attached thereto, of such Loan Party as in effect on the date of such         certification, (iii) resolutions of the Board of Directors or other governing body of such Loan         Party authorizing the execution, delivery and performance of each Loan Document to which it         is a party, and (iv) the names and true signatures of the incumbent officers of each Loan Party         authorized to sign the Loan Documents to which it is a party, and (in the case of the Borrower)         authorized to request a Borrowing or the issuance of a Letter of Credit  under the Credit         Agreement.   4.     Good Standing Certificate for each Loan Party from the Secretary of State of the jurisdiction of         its organization.                                      C.    OPINIONS   5.     Opinion of Hunton Andrews Kurth LLP, outside counsel for the Loan Parties.   6.     Opinion of Preston D. Wigner, internal counsel for the Loan Parties.                   D.    CLOSING CERTIFICATES AND MISCELLANEOUS   7.     A Certificate signed by the President, a Vice President or a Financial Officer of the Borrower         certifying the following: (i) all of the representations and warranties of the Borrower set forth in         the Credit Agreement are true and correct in all material respects (or in all respects if such         representation or warranty is qualified by materiality or Material Adverse Effect) and (ii) no         Default or Event of Default has occurred and is then continuing.   8.     Payoff documentation providing evidence satisfactory to the Administrative Agent that the credit         facilities evidenced by the Existing Credit Agreement have been terminated and cancelled (along         with all of the agreements, documents and instruments delivered in connection therewith) and         all Indebtedness owing thereunder has been repaid.                                              2    

 

                                         EXHIBIT H                                                                         FORM OF SUBSIDIARY GUARANTY                                                                                    GUARANTY                THIS GUARANTY (this “Guaranty”) is made as of [__________], by and among each of  the undersigned (the “Initial Guarantors” and along with any additional Subsidiaries of the Borrower that  become parties to this Guaranty by executing a supplement hereto in the form attached as Annex I, the  “Guarantors”) in favor of the Administrative Agent, for the ratable benefit of the Holders of Guaranteed  Obligations (as defined below), under the Credit Agreement referred to below.                                        WITNESSETH                WHEREAS,  Universal  Corporation,  a  Virginia  corporation  (the  “Borrower”),  the  institutions from time to time parties thereto as lenders (the “Lenders”), and JPMorgan Chase Bank, N.A.,  in its capacity as administrative agent (the “Administrative Agent”), have entered into a certain Credit  Agreement dated as of December 20, 2018 (as the same may be amended, modified, supplemented and/or  restated, and as in effect from time to time, the “Credit Agreement”), providing, subject to the terms and  conditions thereof, for extensions of credit and other financial accommodations to be made by the Lenders  to the Borrower;                WHEREAS, it is a condition precedent to the extensions of credit by the Lenders under the  Credit Agreement that each of the Guarantors (constituting all of the Subsidiaries of the Borrower required  to  execute  this  Guaranty  pursuant  to  Section  5.09  of  the  Credit  Agreement)  execute  and  deliver  this  Guaranty, whereby each of the Guarantors shall guarantee the payment when due of all Obligations; and                WHEREAS, in consideration of the direct and indirect financial and other support that the  Borrower has provided, and such direct and indirect financial and other support as the Borrower may in the  future provide, to the Guarantors, and in order to induce the Lenders and the Administrative Agent to enter  into the Credit Agreement, each of the Guarantors is willing to guarantee the Obligations of the Borrower;                NOW,  THEREFORE,  in  consideration  of  the  foregoing  premises  and other  good  and  valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto  agree as follows:                SECTION  1.   Definitions.   Terms  defined  in  the  Credit  Agreement  and  not  otherwise  defined herein have, as used herein, the respective meanings provided for therein.                SECTION  2.   Representations,  Warranties  and  Covenants.   Each  of  the  Guarantors  represents and warrants (which representations and warranties shall be deemed to have been renewed at the  time of the making, conversion or continuation of any Loan or issuance of any Letter of Credit) that:                (A)    It  is  a  corporation,  partnership  or  limited  liability  company  duly  and  properly        incorporated or organized, as the case may be, validly existing and (to the extent such concept        applies  to  such  entity)  in  good  standing  under  the  laws  of  its jurisdiction  of  incorporation,        organization or formation and has all requisite authority to conduct its business in each jurisdiction        in which its business is conducted, except to the extent that the failure to have such authority could        not reasonably be expected to have a Material Adverse Effect.      

 

                (B)    It (to the extent applicable) has the requisite power and authority and legal right to         execute and deliver this Guaranty and to perform its obligations hereunder.  The execution and         delivery  by  each  Guarantor  of  this  Guaranty  and  the  performance  by  each  of  its  obligations         hereunder have been duly authorized by proper proceedings, and this Guaranty constitutes a legal,         valid and binding obligation of such Guarantor, respectively, enforceable against such Guarantor,         respectively, in accordance with its terms, except as enforceability may be limited by bankruptcy,         insolvency or similar laws affecting the enforcement of creditors’ rights generally.                (C)    Neither the execution and delivery by it of this Guaranty, nor the consummation        by it of the transactions herein contemplated, nor compliance by it with the provisions hereof will        (i) violate any law, rule, regulation, order, writ, judgment, injunction, decree or award binding on        it or its articles or certificate of incorporation (or equivalent charter documents), limited liability        company or partnership agreement, certificate of partnership, articles or certificate of organization,        by-laws,  or  operating  agreement  or  other  management  agreement, as  the  case  may  be,  or  the        provisions  of  any  indenture,  instrument  or  agreement  to  which  the  Borrower  or  any  of  its        Subsidiaries is a party or is subject, or by which it, or its property, is bound, or (ii) conflict with, or        constitute a default under, or result in, or require, the creation or imposition of any Lien in, of or        on its property pursuant to the terms of, any such indenture, instrument or agreement (other than        any  Loan  Document).   No  order,  consent,  adjudication,  approval,  license,  authorization,  or        validation of, or filing, recording or registration with, or exemption by, or other action in respect        of any governmental or public body or authority, or any subdivision thereof, which has not been        obtained  by  it,  is  required  to  be  obtained  by  it  in  connection with  the  execution,  delivery  and        performance by it of, or the legality, validity, binding effect or enforceability against it of, this        Guaranty.                In addition to the foregoing, each of the Guarantors covenants that, so long as any Lender  has any Commitment outstanding under the Credit Agreement or any amount payable under the Credit  Agreement or any other Guaranteed Obligations shall remain unpaid, it will, and, if necessary, will enable  the Borrower to, fully comply with those covenants and agreements of the Borrower applicable to such  Guarantor set forth in the Credit Agreement unless and until it is no longer a Material Domestic Subsidiary.                SECTION 3.   The Guaranty.  Each of the Guarantors hereby unconditionally guarantees,        jointly with the other Guarantors and severally, the full and punctual payment and performance        when due (whether at stated maturity, upon acceleration or otherwise) of the Obligations, including,        without limitation, (i) the principal of and interest on each Loan made to the Borrower pursuant to        the  Credit  Agreement,  (ii)  any  obligations  of  the  Borrower  to  reimburse  LC  Disbursements        (“Reimbursement Obligations”), (iii) all obligations of the Borrower owing to any Lender or any        affiliate of any Lender under any Swap Agreement or Banking Services Agreement, (iv) all other        amounts payable by the Borrower or any of its Subsidiaries under the Credit Agreement, any Swap        Agreement, any Banking Services Agreement and the other Loan Documents and (v) the punctual        and  faithful  performance,  keeping,  observance,  and  fulfillment by  the  Borrower  of  all  of  the        agreements,  conditions,  covenants,  and  obligations  of  the  Borrower  contained  in  the  Loan        Documents (all of the foregoing being referred to collectively as the “Guaranteed Obligations”        (provided, however, that the definition of “Guaranteed Obligations” shall not create any guarantee        by any Guarantor of any Excluded Swap Obligations of such Guarantor for purposes of determining        any obligations of any Guarantor) and the holders from time to time of the Guaranteed Obligations        being referred to collectively as the “Holders of Guaranteed Obligations”).  Upon (x) the failure by        the Borrower or any of its Affiliates, as applicable, to pay punctually any such amount or perform        such obligation, and (y) such failure continuing beyond any applicable grace or notice and cure        period, each of the Guarantors agrees that it shall forthwith on demand pay such amount or perform        such  obligation  at  the  place  and  in  the  manner  specified  in  the  Credit  Agreement,  any  Swap                                              2  

 

          Agreement, any Banking Services Agreement or the relevant Loan Document, as the case may be.          Each  of  the  Guarantors  hereby  agrees  that  this  Guaranty  is  an  absolute,  irrevocable  and         unconditional guaranty of payment and is not a guaranty of collection.  Notwithstanding any other         provision of this Guaranty, the amount guaranteed by each Guarantor hereunder shall be limited to         the extent, if any, required so that its obligations hereunder shall not be subject to avoidance under         Section 548 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer         Act, Uniform Fraudulent Conveyance Act or similar statute or common law.  In determining the         limitations,  if  any,  on  the  amount  of  any  Guarantor’s  obligations  hereunder  pursuant  to  the         preceding  sentence,  it  is  the  intention  of  the  parties  hereto  that  any  rights  of  subrogation,         indemnification  or  contribution  that  such  Guarantor  may  have  under this Guaranty, any other         agreement or applicable law shall be taken into account.                SECTION 4.   Guaranty  Unconditional.   The  obligations  of  each  of the  Guarantors  hereunder shall be unconditional and absolute and, without limiting the generality of the foregoing, shall  not be released, discharged or otherwise affected by:                (A)    any extension, renewal, settlement, indulgence, compromise, waiver or release of        or with respect to the Guaranteed Obligations or any part thereof or any agreement relating thereto,        or with respect to any obligation of any other guarantor of any of the Guaranteed Obligations,        whether (in any such case) by operation of law or otherwise, or any failure or omission to enforce        any right, power or remedy with respect to the Guaranteed Obligations or any part thereof or any        agreement relating thereto, or with respect to any obligation of any other guarantor of any of the        Guaranteed Obligations;                (B)    any modification or amendment of or supplement to the Credit Agreement, any        Swap  Agreement,  any  Banking  Services  Agreement  or  any  other  Loan  Document,  including,        without  limitation,  any  such  amendment  that  may  increase  the  amount  of,  or  the  interest  rates        applicable to, any of the Obligations guaranteed hereby;                (C)    any  release,  surrender,  compromise,  settlement,  waiver,  subordination  or        modification, with or without consideration, of any collateral securing the Guaranteed Obligations        or any part thereof, any other guaranties with respect to the Guaranteed Obligations or any part        thereof, or any other obligation of any person or entity with respect to the Guaranteed Obligations        or any part thereof, or any nonperfection or invalidity of any direct or indirect security for the        Guaranteed Obligations;                (D)    any change in the corporate, partnership or other existence, structure or ownership        of the Borrower or any other guarantor of any of the Guaranteed Obligations, or any insolvency,        bankruptcy,  reorganization  or  other  similar  proceeding  affecting  the  Borrower  or  any  other        guarantor of the Guaranteed Obligations, or any of their respective assets or any resulting release        or discharge of any obligation of the Borrower or any other guarantor of any of the Guaranteed        Obligations;                (E)    the existence of any claim, setoff or other rights that the Guarantors may have at        any  time  against  the  Borrower,  any  other  guarantor  of  any  of  the  Guaranteed  Obligations,  the        Administrative  Agent,  any  Holder  of  Guaranteed  Obligations  or  any other Person, whether in        connection herewith or in connection with any unrelated transactions; provided that nothing herein        shall prevent the assertion of any such claim by separate suit or compulsory counterclaim;                (F)    the enforceability or validity of the Guaranteed Obligations or any part thereof or        the genuineness, enforceability or validity of any agreement relating thereto or with respect to any                                              3  

 

          collateral  securing  the  Guaranteed  Obligations  or  any  part  thereof,  or  any  other  invalidity  or         unenforceability relating to or against the Borrower or any other guarantor of any of the Guaranteed         Obligations, for any reason related to the Credit Agreement, any Swap Agreement, any Banking         Services Agreement, any other Loan Document, or any provision of applicable law, decree, order         or regulation of any jurisdiction purporting to prohibit the payment by the Borrower or any other         guarantor  of  the  Guaranteed  Obligations,  of  any  of  the  Guaranteed  Obligations  or  otherwise         affecting any term of any of the Guaranteed Obligations;                (G)    the failure of the Administrative Agent to take any steps to perfect and maintain         any security interest in, or to preserve any rights to, any security or collateral for the Guaranteed         Obligations, if any;                (H)    the election by, or on behalf of, any one or more of the Holders of Guaranteed         Obligations, in any proceeding instituted under Chapter 11 of Title 11 of the United States Code         (11 U.S.C. 101 et seq.) (the “Bankruptcy Code”), of the application of Section 1111(b)(2) of the        Bankruptcy Code;                (I)    any  borrowing  or  grant  of  a  security  interest  by  the  Borrower,  as  debtor-in-        possession, under Section 364 of the Bankruptcy Code;                (J)    the disallowance, under Section 502 of the Bankruptcy Code, of all or any portion         of the claims of the Holders of Guaranteed Obligations or the Administrative Agent for repayment         of all or any part of the Guaranteed Obligations;                (K)    the failure of any other guarantor to sign or become party to this Guaranty or any         amendment, change, or reaffirmation hereof; or                (L)    any other act or omission to act or delay of any kind by the Borrower, any other         guarantor  of  the  Guaranteed  Obligations,  the  Administrative  Agent,  any  Holder  of  Guaranteed         Obligations or any other Person or any other circumstance whatsoever which might, but for the         provisions of this Section 4, constitute a legal or equitable discharge of any Guarantor’s obligations         hereunder except as provided in Section 5.                SECTION 5.    Continuing  Guarantee;  Discharge  Only  Upon  Payment  In  Full:  Reinstatement In Certain Circumstances.  Each of the Guarantors’ obligations hereunder shall constitute a  continuing and irrevocable guarantee of all Guaranteed Obligations now or hereafter existing and shall  remain in full force and effect until all Guaranteed Obligations shall have been paid in full in cash and the  Commitments and all Letters of Credit issued under the Credit Agreement shall have terminated or expired.   If at any time any payment of the principal of or interest on any Loan, any Reimbursement Obligation or  any  other  amount  payable  by  the  Borrower  or  any  other  party  under the Credit Agreement, any Swap  Agreement, any Banking Services Agreement or any other Loan Document (including a payment effected  through exercise of a right of setoff) is rescinded, or is or must be otherwise restored or returned upon the  insolvency,  bankruptcy  or  reorganization  of  the  Borrower  or  otherwise  (including  pursuant  to  any  settlement entered into by a Holder of Guaranteed Obligations in its discretion), each of the Guarantors’  obligations hereunder with respect to such payment shall be reinstated as though such payment had been  due but not made at such time.  The parties hereto acknowledge and agree that each of the Guaranteed  Obligations shall be due and payable in the same currency as such Guaranteed Obligation is denominated.                SECTION 6.   General Waivers; Additional Waivers.                                               4  

 

                        (A)    General Waivers.  Each of the Guarantors irrevocably waives acceptance hereof,   presentment, demand or action on delinquency, protest, the benefit of any statutes of limitations   and,  to  the  fullest  extent  permitted  by  law,  any  notice  not  provided  for  herein,  as  well  as  any   requirement that at any time any action be taken by any Person against the Borrower, any other   guarantor of the Guaranteed Obligations, or any other Person.          (B)    Additional Waivers.  Notwithstanding anything herein to the contrary, each of the   Guarantors hereby absolutely, unconditionally, knowingly, and expressly waives:          (i)    any right it may have to revoke this Guaranty as to future indebtedness or notice   of acceptance hereof;          (ii)   (a)  notice  of  acceptance  hereof;  (b)  notice  of  any  loans  or  other  financial   accommodations made or extended under the Loan Documents or the creation or existence of any   Guaranteed Obligations; (c) notice of the amount of the Guaranteed Obligations, subject, however,   to each Guarantor’s right to make inquiry of Administrative Agent and Holders of Guaranteed   Obligations  to  ascertain  the  amount  of  the  Guaranteed  Obligations  at  any  reasonable  time;  (d)   notice of any adverse change in the financial condition of the Borrower or of any other fact that   might increase such Guarantor’s risk hereunder; (e) notice of presentment for payment, demand,   protest, and notice thereof as to any instruments among the Loan Documents; (f) notice of any   Default or Event of Default; and (g) all other notices (except if such notice is specifically required   to be given to such Guarantor hereunder or under the Loan Documents) and demands to which each   Guarantor might otherwise be entitled;          (iii)  its  right,  if  any,  to  require  the  Administrative  Agent  and  the  other  Holders  of   Guaranteed Obligations to institute suit against, or to exhaust any rights and remedies which the   Administrative Agent and the other Holders of Guaranteed Obligations has or may have against,   the other Guarantors or any third party, or against any collateral provided by the other Guarantors,   or any third party; and each Guarantor further waives any defense arising by reason of any disability   or other defense (other than the defense that the Guaranteed Obligations shall have been fully and   finally performed and indefeasibly paid) of the other Guarantors or by reason of the cessation from   any cause whatsoever of the liability of the other Guarantors in respect thereof;          (iv)   (a) any rights to assert against the Administrative Agent and the other Holders of   Guaranteed Obligations any defense (legal or equitable), set-off, counterclaim, or claim that such   Guarantor may now or at any time hereafter have against the other Guarantors or any other party   liable  to  the  Administrative  Agent  and  the  other  Holders  of  Guaranteed  Obligations;  (b)  any   defense, set-off, counterclaim, or claim, of any kind or nature, arising directly or indirectly from   the present or future lack of perfection, sufficiency, validity, or enforceability of the Guaranteed   Obligations or any security therefor; (c) any defense such Guarantor has to performance hereunder,   and  any  right  such  Guarantor  has  to  be  exonerated,  arising  by  reason  of:   the  impairment  or   suspension of the Administrative Agent’s and the other Holders of Guaranteed Obligations’ rights   or remedies against the other Guarantors; the alteration by the Administrative Agent and the other   Holders  of  Guaranteed  Obligations  of  the  Guaranteed  Obligations;  any  discharge  of  the  other   Guarantors’  obligations  to  the  Administrative  Agent  and  the  other  Holders  of  Guaranteed   Obligations by operation of law as a result of the Administrative Agent’s and the other Holders of   Guaranteed Obligations’ intervention or omission; or the acceptance by the Administrative Agent   and  the  other  Holders  of  Guaranteed  Obligations  of  anything  in partial  satisfaction  of  the   Guaranteed Obligations; and (d) the benefit of any statute of limitations affecting such Guarantor’s   liability hereunder or the enforcement thereof, and any act that shall defer or delay the operation of  any statute of limitations applicable to the Guaranteed Obligations shall similarly operate to defer                                        5  

 

          or  delay  the  operation  of  such  statute  of  limitations  applicable  to  such  Guarantor’s  liability         hereunder; and                (v)    any defense arising by reason of or deriving from (a) any claim or defense based         upon an election of remedies by the Administrative Agent and the other Holders of Guaranteed         Obligations; or (b) any election by the Administrative Agent and the other Holders of Guaranteed         Obligations under Section 1111(b) of Title 11 of the United States Code entitled “Bankruptcy”, as         now and hereafter in effect (or any successor statute), to limit the amount of, or any collateral         securing, its claim against the Guarantors.                SECTION 7.    Subordination  of  Subrogation;  Subordination  of  Intercompany  Indebtedness.                (A)    Subordination of Subrogation.  Until the Guaranteed Obligations have been fully        and finally performed and indefeasibly paid in full in cash, the Guarantors (i) shall have no right of        subrogation with respect to such Guaranteed Obligations and (ii) waive any right to enforce any        remedy that Holders of Guaranteed Obligations, the Issuing Banks or the Administrative Agent        now have or may hereafter have against the Borrower, any endorser or any guarantor of all or any        part of the Guaranteed Obligations or any other Person, and the Guarantors waive any benefit of,        and  any  right  to  participate  in,  any  security  or  collateral  given  to  the  Holders  of  Guaranteed        Obligations, the Issuing Banks and the Administrative Agent to secure the payment or performance        of all or any part of the Guaranteed Obligations or any other liability of the Borrower to the Holders        of  Guaranteed  Obligations  or  the  Issuing  Banks.   Should  any  Guarantor  have  the  right,        notwithstanding the foregoing, to exercise its subrogation rights, each Guarantor hereby expressly        and  irrevocably  (A)  subordinates  any  and  all  rights  at  law  or  in  equity  to  subrogation,        reimbursement, exoneration, contribution, indemnification or set off that such Guarantor may have        to the indefeasible payment in full in cash of the Guaranteed Obligations and (B) waives any and        all defenses available to a surety, guarantor or accommodation co-obligor until the Guaranteed        Obligations are indefeasibly paid in full in cash.  Each Guarantor acknowledges and agrees that        this  subordination  is  intended  to  benefit  the  Administrative  Agent  and  the  other  Holders  of        Guaranteed Obligations and shall not limit or otherwise affect such Guarantor’s liability hereunder        or the enforceability of this Guaranty, and that the Administrative Agent, the  other Holders of        Guaranteed  Obligations  and  their  respective  successors  and  assigns  are  intended  third  party        beneficiaries of the waivers and agreements set forth in this Section 7(A).                (B)    Subordination of Intercompany Indebtedness.  Each Guarantor agrees that any and        all  claims  of  such  Guarantor  against  the  Borrower  or  any  other Guarantor  hereunder  (each  an        “Obligor”) with respect to any “Intercompany Indebtedness” (as hereinafter defined), any endorser,        obligor or any other guarantor of all or any part of the Guaranteed Obligations, or against any of its        properties shall be subordinate and subject in right of payment to the prior payment, in full and in        cash, of all Guaranteed Obligations; provided that, as long as no Event of Default has occurred and        is continuing, such Guarantor may receive payments of principal and interest from any Obligor        with respect to Intercompany Indebtedness.  Notwithstanding any right of any Guarantor to ask,        demand,  sue  for,  take  or  receive  any  payment  from  any  Obligor, all  rights,  liens  and  security        interests of such Guarantor, whether now or hereafter arising and howsoever existing, in any assets        of  any  other  Obligor  shall  be  and  are  subordinated  to  the  rights  of  the  Holders  of  Guaranteed        Obligations and the Administrative Agent in those assets. No Guarantor shall have any right to        possession of any such asset or to foreclose upon any such asset, whether by judicial action or        otherwise, unless and until all of the Guaranteed Obligations shall have been fully paid and satisfied        (in cash) and all financing arrangements pursuant to any Loan Document, any Swap Agreement or        any Banking Services Agreement have been terminated.  If all or any part of the assets of any                                              6  

 

                  Obligor,  or  the  proceeds  thereof,  are  subject  to  any  distribution,  division  or  application  to  the   creditors of such Obligor, whether partial or complete, voluntary or involuntary, and whether by   reason of liquidation, bankruptcy, arrangement, receivership, assignment for the benefit of creditors   or  any  other  action  or  proceeding,  or  if  the  business  of  any  such  Obligor  is  dissolved  or  if   substantially all of the assets of any such Obligor are sold (each such event being herein referred to   as an “Insolvency Event”), then any payment or distribution of any kind or character, either in cash,  securities or  other property, which shall be payable or deliverable upon or with respect to any  indebtedness  of  any  Obligor  to  any  Guarantor  (“Intercompany  Indebtedness”)  shall  be  paid  or  delivered  directly  to  the  Administrative  Agent  for  application on  any  of  the  Guaranteed  Obligations, due or to become due, until such Guaranteed Obligations shall have first been fully  paid and satisfied (in cash).  Should any payment, distribution, security or instrument or proceeds  thereof  be  received  by  the  applicable  Guarantor  upon  or  with  respect  to  the  Intercompany  Indebtedness  after  any  Insolvency  Event  and  prior  to  the  satisfaction  of  all  of  the  Guaranteed  Obligations and the termination of all financing arrangements pursuant to any Loan Document  among the Borrower and the Holders of Guaranteed Obligations, such Guarantor shall receive and  hold the same in trust, as trustee, for the benefit of the Holders of Guaranteed Obligations and shall  forthwith deliver the same to the Administrative Agent, for the benefit of the Holders of Guaranteed  Obligations,  in  precisely  the  form  received  (except  for  the  endorsement  or  assignment  of  the   Guarantor where necessary), for application to any of the Guaranteed Obligations, due or not due,   and, until so delivered, the same shall be held in trust by the Guarantor as the property of the   Holders of Guaranteed Obligations.  If any such Guarantor fails to make any such endorsement or   assignment  to  the  Administrative  Agent,  the  Administrative  Agent or any of its officers or   employees  is  irrevocably  authorized  to  make  the  same.   Each  Guarantor  agrees  that  until  the   Guaranteed Obligations (other than the contingent indemnity obligations) have been paid in full (in   cash)  and  satisfied  and  all  financing  arrangements  pursuant  to any  Loan  Document  among  the   Borrower  and  the  Holders  of  Guaranteed  Obligations  have  been  terminated,  no  Guarantor  will   assign or transfer to any Person (other than the Administrative Agent) any claim any such Guarantor   has or may have against any Obligor.          SECTION 8.  Contribution with Respect to Guaranteed Obligations.          (A)    To the extent that any Guarantor shall make a payment under this Guaranty (a  “Guarantor Payment”) that, taking into account all other Guarantor Payments then previously or  concurrently made by any other Guarantor, exceeds the amount that otherwise would have been  paid by or attributable to such Guarantor if each Guarantor had paid the aggregate Guaranteed  Obligations  satisfied  by  such  Guarantor  Payment  in  the  same  proportion  as  such  Guarantor’s  “Allocable  Amount”  (as  defined  below)  (as  determined  immediately  prior  to  such  Guarantor  Payment)  bore  to  the  aggregate  Allocable  Amounts  of  each  of  the  Guarantors  as  determined  immediately prior to the making of such Guarantor Payment, then, following indefeasible payment  in full in cash of the Guaranteed Obligations and termination of the Credit Agreement, the Swap  Agreements  and the Banking Services  Agreements,  such Guarantor shall be entitled to receive  contribution and indemnification payments from, and be reimbursed by, each other Guarantor for  the  amount  of  such  excess,  pro  rata  based  upon  their  respective  Allocable  Amounts  in  effect  immediately prior to such Guarantor Payment.          (B)    As of any date of determination, the “Allocable Amount” of any Guarantor shall  be equal to the excess of the fair saleable value of the property of such Guarantor over the total  liabilities of such Guarantor (including the maximum amount reasonably expected to become due  in respect of contingent liabilities, calculated, without duplication, assuming each other Guarantor   that is also liable for such contingent liability pays its ratable share thereof), giving effect to all                                         7  

 

          payments made by other Guarantors as of such date in a manner to maximize the amount of such         contributions.                (C)    This Section 8 is intended only to define the relative rights of the Guarantors, and         nothing set forth in this Section 8 is intended to or shall impair the obligations of the Guarantors,         jointly and severally, to pay any amounts as and when the same shall become due and payable in         accordance with the terms of this Guaranty.                (D)    The parties hereto acknowledge that the rights of contribution and indemnification         hereunder shall constitute assets of the Guarantor or Guarantors to which such contribution and         indemnification is owing.                (E)    The  rights  of  the  indemnifying  Guarantors  against  other  Guarantors  under  this         Section 8 shall be exercisable upon the full and indefeasible payment of the Guaranteed Obligations         in  cash  and  the  termination  of  the  Credit  Agreement,  the  Swap  Agreements  and  the  Banking         Services Agreements.                SECTION 9.   Stay  of  Acceleration.   If  acceleration  of  the  time  for  payment  of  any  amount payable by the Borrower under the Credit Agreement, any Swap Agreement, any Banking Services  Agreement or any other Loan Document is stayed upon the insolvency, bankruptcy or reorganization of the  Borrower, all such amounts otherwise subject to acceleration under the terms of the Credit Agreement, any  Swap  Agreement,  any  Banking  Services  Agreement  or  any  other  Loan  Document  shall  nonetheless  be  payable by each of the Guarantors hereunder forthwith on demand by the Administrative Agent.                SECTION 10.  Notices.   All  notices,  requests  and  other  communications  to  any  party  hereunder shall be given in the manner prescribed in Article IX of the Credit Agreement with respect to the  Administrative Agent at its notice address therein and with respect to any Guarantor, in care of the Borrower  at the address of the Borrower set forth in the Credit Agreement or such other address or telecopy number  as such party may hereafter specify for such purpose by notice to the Administrative Agent in accordance  with the provisions of such Article IX.                SECTION 11.  No Waivers.  No failure or delay by the Administrative Agent or any other  Holder of Guaranteed Obligations in exercising any right, power or privilege hereunder shall operate as a  waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof  or the exercise of any other right, power or privilege.  The rights and remedies provided in this Guaranty,  the  Credit  Agreement,  any  Swap  Agreement,  any  Banking  Services Agreement  and  the  other  Loan  Documents shall be cumulative and not exclusive of any rights or remedies provided by law.                SECTION 12.  Successors  and  Assigns.   This  Guaranty  is  for  the  benefit  of  the  Administrative Agent and the other Holders of Guaranteed Obligations and their respective successors and  permitted  assigns;  provided,  that no  Guarantor  shall  have  any  right  to  assign  its  rights  or  obligations  hereunder without the consent of all of the Lenders, and any such assignment in violation of this Section  12 shall be null and void; and in the event of an assignment of any amounts payable under the Credit  Agreement,  any  Swap  Agreement,  any  Banking  Services  Agreement  or  the  other  Loan  Documents  in  accordance  with  the  respective  terms  thereof,  the  rights  hereunder,  to  the  extent  applicable  to  the  indebtedness so assigned, may be transferred with such indebtedness. This Guaranty shall be binding upon  each of the Guarantors and their respective successors and assigns.                SECTION 13.  Changes  in  Writing.   Other  than  in  connection  with the  addition  of  additional Subsidiaries, which become parties hereto by executing a supplement hereto in the form attached                                               8  

 

   as  Annex  I,  neither  this  Guaranty  nor  any  provision  hereof  may be  changed,  waived,  discharged  or  terminated orally, but only in writing signed by each of the Guarantors and the Administrative Agent.                SECTION 14.  GOVERNING LAW.  THIS GUARANTY SHALL BE CONSTRUED IN  ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.                SECTION 15.  CONSENT  TO  JURISDICTION;  SERVICE  OF  PROCESS;  JURY  TRIAL; IMMUNITY.                (A)    CONSENT  TO  JURISDICTION.   EACH  GUARANTOR  HEREBY        IRREVOCABLY  AND  UNCONDITIONALLY  SUBMITS,  FOR  ITSELF  AND  ITS        PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT        COURT FOR THE SOUTHERN DISTRICT OF NEW YORK SITTING IN THE BOROUGH OF        MANHATTAN  (OR  IF  SUCH  COURT  LACKS  SUBJECT  MATTER  JURISDICTION,       THE        SUPREME  COURT  OF  THE  STATE  OF  NEW YORK  SITTING  IN  THE   BOROUGH      OF        MANHATTAN), AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION        OR  PROCEEDING  ARISING  OUT  OF  OR  RELATING  TO  THIS  GUARANTY  OR  ANY        OTHER  LOAN  DOCUMENT  OR  THE  TRANSACTIONS  RELATING  HERETO  OR        THERETO,  OR  FOR  RECOGNITION  OR  ENFORCEMENT  OF  ANY  JUDGMENT,  AND        EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY        AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING        MAY (AND ANY SUCH CLAIMS, CROSS-CLAIMS OR THIRD PARTY CLAIMS BROUGHT        AGAINST THE ADMINISTRATIVE AGENT OR ANY OF ITS RELATED PARTIES              MAY        ONLY)  BE  HEARD  AND  DETERMINED  IN  SUCH  FEDERAL  (TO  THE  EXTENT        PERMITTED BY LAW) OR NEW YORK STATE COURT.                (B)    WAIVER OF JURY TRIAL.  EACH GUARANTOR HEREBY WAIVES  TRIAL        BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY,        ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY        WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS GUARANTY OR        ANY  OTHER  LOAN  DOCUMENT  OR  THE  RELATIONSHIP  ESTABLISHED        THEREUNDER  AND  FURTHER  WAIVES  ANY  RIGHT  TO  INTERPOSE  ANY        COUNTERCLAIM  RELATED  TO  THIS  GUARANTY  OR  THE  TRANSACTIONS        CONTEMPLATED HEREBY IN SUCH ACTION.                (C)    TO THE EXTENT THAT ANY GUARANTOR HAS OR HEREAFTER MAY        ACQUIRE  ANY  IMMUNITY  FROM  JURISDICTION  OF  ANY  COURT  OR  FROM  ANY        LEGAL PROCESS (WHETHER FROM SERVICE OR NOTICE, ATTACHMENT PRIOR TO        JUDGMENT, ATTACHMENT IN AID OF EXECUTION OF A JUDGMENT, EXECUTION OR        OTHERWISE),  EACH  GUARANTOR  HEREBY  IRREVOCABLY  WAIVES  SUCH        IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS GUARANTY.                SECTION 16.  No Strict Construction.  The parties hereto have participated jointly in the  negotiation and drafting of this Guaranty.  In the event an ambiguity or question of intent or interpretation  arises, this Guaranty shall be construed as if drafted jointly by the parties hereto and no presumption or  burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions  of this Guaranty.                SECTION 17.  Taxes, Expenses of Enforcement, etc.                                               9  

 

                (A)    Taxes.   Any  obligation  of  the  Borrower  under  Section  2.17  of  the  Credit        Agreement  to  pay  any  additional  amounts  to,  or  indemnify,  any  Lender  for  any  taxes  that  are        required to be withheld or deducted from payments made to any Lender or to pay for, or indemnify        any Lender for, any Other Taxes, shall apply mutatis mutandis (and without duplication) to each        Guarantor with respect to this Guaranty and payments made hereunder. By accepting the benefits        hereof, each Lender agrees that it will comply with Section 2.17(f) of the Credit Agreement.                (B)    Expenses  of  Enforcement,  Etc.   The  Guarantors  agree  to  reimburse  the        Administrative Agent and the other Holders of Guaranteed Obligations for any reasonable costs         and  out-of-pocket  expenses  (including  attorneys’  fees)  paid  or incurred  by  the  Administrative         Agent  or  any  other  Holder  of  Guaranteed  Obligations  in  connection  with  the  collection  and         enforcement  of  amounts  due  under  the  Loan  Documents,  including without  limitation  this         Guaranty.                SECTION 18.  Setoff.  At any time after all or any part of the Guaranteed Obligations  have  become  due  and  payable  (by  acceleration  or  otherwise),  each  Holder  of  Guaranteed  Obligations  (including the Administrative Agent) may, without notice to any Guarantor and regardless of the acceptance  of any security or collateral for the payment hereof, appropriate and apply in accordance with the terms of  the  Credit  Agreement  toward  the  payment  of  all  or  any  part  of  the  Guaranteed  Obligations   (i)  any  indebtedness due or to become due from such Holder of Guaranteed Obligations or the Administrative  Agent to any Guarantor, and (ii) any moneys, credits or other property belonging to any Guarantor, at any  time  held  by  or  coming  into  the  possession  of  such  Holder  of  Guaranteed  Obligations  (including  the  Administrative Agent) or any of their respective affiliates.                SECTION 19.  Financial Information.  Each Guarantor hereby assumes responsibility for  keeping itself informed of the financial condition of the Borrower and any and all endorsers and/or other  Guarantors of all or any part of the Guaranteed Obligations, and of all other circumstances bearing upon  the risk of nonpayment of the Guaranteed Obligations, or any part thereof, that diligent inquiry would  reveal, and each Guarantor hereby agrees that none of the Holders of Guaranteed Obligations (including  the Administrative Agent) shall have any duty to advise such Guarantor of information known to any of  them  regarding  such  condition  or  any  such  circumstances.   In  the  event  any  Holder  of  Guaranteed  Obligations (including the Administrative Agent), in its sole discretion, undertakes at any time or from time  to time to provide any such information to a Guarantor, such Holder of Guaranteed Obligations (including  the Administrative Agent) shall be under no obligation (i) to undertake any investigation not a part of its  regular  business  routine,  (ii)  to  disclose  any  information  that  such  Holder  of  Guaranteed  Obligations  (including the Administrative Agent), pursuant to accepted or reasonable commercial finance or banking  practices, wishes to maintain confidential or (iii) to make any other or future disclosures of such information  or any other information to such Guarantor.                SECTION 20.  Severability.  Wherever possible, each provision of this Guaranty shall be  interpreted in such manner as to be effective and valid under applicable law, but if any provision of this  Guaranty 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 Guaranty.                SECTION 21.  Merger.   This  Guaranty  represents  the  final  agreement  of  each  of  the  Guarantors with respect to the matters contained herein and may not be contradicted by evidence of prior  or contemporaneous agreements, or subsequent oral agreements, between the Guarantor and any Holder of  Guaranteed Obligations (including the Administrative Agent).                                              10  

 

                SECTION 22.  Headings.   Section  headings  in  this  Guaranty  are  for  convenience  of  reference only and shall not govern the interpretation of any provision of this Guaranty.                SECTION 23.  Judgment Currency.  If for the purposes of obtaining judgment in any court  it is necessary to convert a sum due from any Guarantor hereunder in the currency expressed to be payable  herein (the “specified currency”) into another currency, the parties hereto agree, to the fullest extent that  they may effectively do so, that the rate of exchange used shall be that at which in accordance with normal  banking  procedures  the  Administrative  Agent  could  purchase  the specified  currency  with  such  other  currency at the Administrative Agent’s main New York City office on the Business Day preceding that on  which final, non-appealable judgment is given.  The obligations of each Guarantor in respect of any sum  due hereunder shall, notwithstanding any judgment in a currency other than the specified currency, be  discharged only to the extent that on the Business Day following receipt by any Holder of Guaranteed  Obligations (including the Administrative Agent), as the case may be, of any sum adjudged to be so due in  such other currency such Holder of Guaranteed Obligations (including the Administrative Agent), as the  case  may  be,  may  in  accordance  with  normal,  reasonable  banking procedures  purchase  the  specified  currency with such other currency.  If the amount of the specified currency so purchased is less than the  sum originally due to such Holder of Guaranteed Obligations (including the Administrative Agent), as the  case may be, in the specified currency, each Guarantor agrees, to the fullest extent that it may effectively  do  so,  as  a  separate  obligation  and  notwithstanding  any  such  judgment,  to  indemnify  such  Holder  of  Guaranteed Obligations (including the Administrative Agent), as the case may be, against such loss, and if  the amount of the specified currency so purchased exceeds (a) the sum originally due to any Holder of  Guaranteed Obligations (including the Administrative Agent), as the case may be, in the specified currency  and (b) amounts shared with other Holders of Guaranteed Obligations as a result of allocations of such  excess as a disproportionate payment to such other Holder of Guaranteed Obligations under Section 2.18  of the Credit Agreement, such Holder of Guaranteed Obligations (including the Administrative Agent), as  the case may be, agrees, by accepting the benefits hereof, to remit such excess to such Guarantor.                SECTION 24.  Termination of Guaranty.  The obligations of any Guarantor under this  Guaranty shall automatically terminate in accordance with Section 9.14 of the Credit Agreement.                SECTION 25.  Limitation  of  Guaranty.   Notwithstanding  any  other provision  of  this  Guaranty, the amount guaranteed by each Guarantor hereunder shall be limited to the extent, if any, required  so that its obligations hereunder shall not be subject to avoidance under Section 548 of the Bankruptcy  Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act  or similar statute or common law.  In determining the limitations, if any, on the amount of any Guarantor’s  obligations hereunder pursuant to the preceding sentence, it is the intention of the parties hereto that any  rights of subrogation, indemnification or contribution which such Guarantor may have under this Guaranty,  any other agreement or applicable law shall be taken into account.                SECTION 26.  Keepwell.  Each Qualified ECP Guarantor hereby jointly and severally  absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be  needed from time to time by each other Guarantor to honor all of its obligations under this Guaranty in  respect of Specified Swap Obligations (provided, however, that each Qualified ECP Guarantor shall only  be liable under this Section 26 for the maximum amount of such liability that can be hereby incurred without  rendering its obligations under this Section 26 or otherwise under this Guaranty voidable under applicable  law  relating  to  fraudulent  conveyance  or  fraudulent  transfer,  and  not  for  any  greater  amount).   The  obligations of each Qualified ECP Guarantor under this Section 26 shall remain in full force and effect until  a discharge of such Qualified ECP Guarantor’s Guaranteed Obligations in accordance with the terms hereof  and the other Loan Documents.  Each Qualified ECP Guarantor intends that this Section 26 constitute, and  this Section 26 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of  each other Guarantor for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.  As                                             11  

 

   used  herein,  “Qualified  ECP  Guarantor”  means,  in  respect  of  any  Specified  Swap  Obligation,  each  Guarantor that has total assets exceeding $10,000,000 at the time the relevant Guarantee or grant of the  relevant  security  interest  becomes  or  would  become  effective  with  respect  to  such  Specified  Swap  Obligation or such other Person as constitutes an ECP and can cause another Person to qualify as an ECP  at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.                SECTION 27.  Counterparts.   This  Guaranty  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.  Delivery of an executed counterpart of a signature  page of this Guaranty by telecopy, e-mailed .pdf or any other electronic means that reproduces an image of  the actual executed signature page shall be effective as delivery of a manually executed counterpart of this  Guaranty.  The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating  to any  document to be signed in connection with this Guaranty and the transactions contemplated hereby  shall be deemed to include Electronic Signatures, deliveries or the keeping of records in electronic form,  each of which shall be of the same legal effect, validity or enforceability as a manually executed signature,  physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent  and  as  provided  for  in  any  applicable  law,  including  the  Federal  Electronic  Signatures  in  Global  and  National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar  state laws based on the Uniform Electronic Transactions Act.                              Remainder of Page Intentionally Blank.                                              12  

 

                IN WITNESS WHEREOF, each of the Initial Guarantors has caused this Guaranty to be  duly executed by its authorized officer as of the day and year first above written.                                              [GUARANTORS]                                                                                                                                       By:                                               Name:                                             Title:                                              13  

 

   Acknowledged and Agreed  as of the date first written above:    JPMORGAN CHASE BANK, N.A.,  as Administrative Agent      By:    Name:  Title:                                              14  

 

                                  ANNEX I TO GUARANTY                Reference is hereby made to the Guaranty (the “Guaranty”) made as of [__________], by  and  among  [GUARANTORS  TO  COME]  (the  “Initial  Guarantors”  and  along  with  any  additional  Subsidiaries  of  the  Borrower,  which  become  parties  thereto  and together  with  the  undersigned,  the  “Guarantors”) in favor of the Administrative Agent, for the ratable benefit of the Holders of Guaranteed  Obligations, under the Credit Agreement.  Capitalized terms used herein and not defined herein shall have  the meanings given to them in the Guaranty.  By its execution below, the undersigned [NAME OF NEW  GUARANTOR], a [corporation] [partnership] [limited liability company] (the “New Guarantor”), agrees  to become, and does hereby become, a Guarantor under the Guaranty and agrees to be bound by such  Guaranty as if originally a party thereto.  By its execution below, the undersigned represents and warrants  as to itself that all of the representations and warranties contained in Section 2 of the Guaranty are true and  correct in all respects as of the date hereof.                IN  WITNESS  WHEREOF,  New  Guarantor  has  executed  and  delivered  this  Annex  I  counterpart to the Guaranty as of this __________ day of _________, 20___.                                              [NAME OF NEW GUARANTOR]                                                                                                                                       By:                                               Its:                                              15  

 

                                         EXHIBIT I-1                                                                           FORM OF U.S. TAX CERTIFICATE         (For Non-U.S. Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)          Reference is hereby made to the Credit Agreement dated as of December 20 2018 (as amended,  restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Universal  Corporation (the “Borrower”), the Lenders party thereto and JPMorgan Chase Bank, N.A., as administrative  agent (in such capacity, the “Administrative Agent”).         Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby certifies  that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any Note(s) evidencing such  Loan(s)) in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section  881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of  Section 871(h)(3)(B) of the Code, (iv) it is not a controlled foreign corporation related to the Borrower as  described in Section 881(c)(3)(C) of the Code and (v) the interest payments in question are not effectively  connected with the undersigned’s conduct of a U.S. trade or business.         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 or IRS Form W-8BEN-E, 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:  Title:    Date: __________, 20[__]      

 

                                         EXHIBIT I-2                                                                           FORM OF U.S. TAX CERTIFICATE         (For Non-U.S. Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)         Reference is hereby made to the Credit Agreement dated as of December 20, 2018 (as amended,  restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Universal  Corporation (the “Borrower”), the Lenders party thereto and JPMorgan Chase Bank, N.A., as administrative  agent (in such capacity, the “Administrative Agent”).         Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby certifies  that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this  certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten  percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, (iv) it is not  a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code,  and (v) the interest payments in question are not effectively connected with the undersigned’s conduct of a  U.S. trade or business.         The undersigned has furnished its participating Lender with a certificate of its non- U.S. person  status on IRS Form W-8BEN or IRS Form W-8BEN-E. By executing this certificate, the undersigned agrees  that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform  such Lender in writing and (2) the undersigned shall have at all times furnished such Lender with a properly  completed and currently effective certificate in either the calendar year in which each payment is to be  made to the undersigned, or in either of the two calendar years preceding such payments.         Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have  the meanings given to them in the Credit Agreement..   [NAME OF PARTICIPANT]      By:    Name:  Title:    Date: __________, 20[__]      

 

                                         EXHIBIT I-3                                                                           FORM OF U.S. TAX CERTIFICATE         (For Non-U.S. Participants That Are Partnerships For U.S. Federal Income Tax Purposes)         Reference is hereby made to the Credit Agreement dated as of December 20, 2018 (as amended,  restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Universal  Corporation (the “Borrower”), the Lenders party thereto and JPMorgan Chase Bank, N.A., as administrative  agent (in such capacity, the “Administrative Agent”).         Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby certifies  that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this  certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such participation,  (iii)  with  respect  to  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, (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, and (vi) the interest  payments  in  question  are  not  effectively  connected  with  the  undersigned’s  conduct  of  a  U.S.  trade  or  business.           The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by  one  of  the  following  forms  from  each  of  its  partners/members  that  is  claiming  the  portfolio  interest  exemption: (i) an IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, or (ii) an IRS Form W-8IMY  accompanied  by  an  IRS  Form  W-8BEN  or  IRS  Form  W-8BEN-E,  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 in writing and (2) the undersigned shall have at all times  furnished such Lender with a properly completed and currently effective certificate in either the calendar  year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding  such payments.          Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have  the meanings given to them in the Credit Agreement.   [NAME OF PARTICIPANT]      By:    Name:  Title:    Date: __________, 20[__]      

 

                                         EXHIBIT I-4                                                                           FORM OF U.S. TAX CERTIFICATE         (For Non-U.S. Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)         Reference is hereby made to the Credit Agreement dated as of December 20, 2018 (as amended,  restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Universal  Corporation (the “Borrower”), the Lenders party thereto and JPMorgan Chase Bank, N.A., as administrative  agent (in such capacity, the “Administrative Agent”).         Pursuant to the provisions of Section 2.17 of the Credit Agreement, the undersigned hereby certifies  that (i) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect  of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial  owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with respect to the extension  of credit pursuant to 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,  (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,  and (vi) the interest payments in question are not effectively connected with the undersigned’s or its direct  or indirect partners/members’ conduct of a U.S. trade or business.         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 or IRS Form W-8BEN-E, as applicable, (ii) an IRS  Form W-8IMY accompanied by an IRS Form W-8BEN or IRS Form W-8BEN-E, 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:  Title:    Date: ________ __, 20[__]      

 

                                         EXHIBIT J                                                                          FORM OF OFFICER’S CERTIFICATE                                 Officer’s Compliance Certificate         This Certificate is delivered in accordance with the provisions of Section 5.02(a) of that Credit  Agreement,  dated  as  of  December  20,  2018  (as  amended,  modified and  supplemented,  the  “Credit  Agreement”)  among  Universal  Corporation,  a  Virginia  corporation,  the  Lenders  identified  therein  and  JPMorgan Chase Bank, N.A., as Administrative Agent.  Terms used but not otherwise defined herein shall  have the same meanings provided in the Credit Agreement.          The undersigned, being a Responsible Officer of Universal Corporation, a Virginia corporation,  hereby certifies, in my official capacity and not in my individual capacity, that to the best of my knowledge  and belief:          (a)   the financial statements, whether attached or otherwise provided in accordance with the  requirements of Section 5.01 of the Credit Agreement, fairly present the financial condition of the parties  covered by such financial statements in all material respects for the period and as of the date specified  therein;          (b)   No Default or Event of Default has occurred and is continuing except to the extent waived  in accordance with the provisions of the Credit Agreement; and          (c)   attached  hereto  are  detailed  calculations  demonstrating  compliance  with  the  financial  covenants set out in Section 5.07 of the Credit Agreement.   This ____ day of _________, 20___.                                              UNIVERSAL CORPORATION                                                                                                                                       By:                                               Name:                                             Title:      

 

                  Attachment to Officer’s Certificate   Computation of Financial Covenants                                    2  

 

                                         EXHIBIT K                                                                     FORM OF ACCOUNT DESIGNATION LETTER                                            [Date]   [JPMorgan Chase Bank, N.A. as Administrative Agent      For the Lenders referred to below  10 South Dearborn Street, 2nd Floor  Chicago, Illinois 60603  Attention: Ladesiree Williams  Telecopy No.: (888) 303-9734]   Ladies and Gentlemen:         This  Account  Designation  Letter  is  delivered  to  you  by  UNIVERSAL  CORPORATION  (the  “Company”), a Virginia corporation, under Section 2.07 of the Credit Agreement, dated as of December  20, (as amended, restated or otherwise modified from time to time, the “Credit Agreement”), by and among  the  Company,  the  Lenders  from  time  to  time  party  thereto  and  JPMorgan  Chase  Bank,  N.A.  as  administrative agent (the “Administrative Agent”).         The Administrative Agent is hereby authorized to disburse all Loan proceeds into the following  account (the “Designated Account”), unless the Company shall designate, in writing to the Administrative  Agent, one or more other accounts:                                           [Bank]                                         [Location]                                       [Account name]                                     [Account Number]                                        [ABA Number]          Any one (1) of the following persons are hereby authorized and empowered to borrow and draw  upon the Credit Agreement provided that sums borrowed are deposited into the Designated Account:        NAME       SIGNATURE         TITLE         NAME        SIGNATURE        TITLE                                                                                              ___________                                 ___________                                                                                              ___________                                 ___________                                                                                              ___________                                 ___________          This Account Designation Letter may, upon execution, be delivered by facsimile or electronic mail,  which shall be deemed for all purposes to be an original signature.        

 

          IN WITNESS WHEREOF, the undersigned has executed this Account Designation Letter as of the  day and year set forth above.                                              UNIVERSAL CORPORATION                                                                                                                                       By:                                               Name:                                             Title:                                                  2

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