Document:

Exhibit 10.1

 

Execution Version

 

 

 

	
BANK OF AMERICA, N.A.  
    MERRILL, LYNCH, PIERCE, FENNER & SMITH
   INCORPORATED
   One Bryant Park
   New York, New York 10036
    	
BARCLAYS
    745 Seventh Avenue
   New York, New York 10019
    

 

 

 

PERSONAL AND CONFIDENTIAL

 

February 4, 2015

 

Staples, Inc.
 500 Staples Drive
 Framingham, MA 01702
 Attention:  Ronald L. Sargent, Chairman and Chief Executive Officer

 

Project Warrior
  $2,750,000,000 Senior Secured Term Loan Facility 
 $3,000,000,000 ABL Facility
 Commitment Letter

 

Ladies and Gentlemen:

 

Staples, Inc. (the “Company” or “you”) has advised Bank of America, N.A. (together with any of its affiliates as may be appropriate to provide the services (but not, for the avoidance of doubt, to provide the commitments) contemplated herein, “Bank of America”), Merrill Lynch, Pierce, Fenner & Smith Incorporated (together with any of its affiliates as may be appropriate to provide the services contemplated herein, “MLPFS”) and Barclays Bank PLC (together with any of its affiliates as may be appropriate to provide the services (but not, for the avoidance of doubt, to provide the commitments) contemplated herein, “Barclays”, and together with Bank of America and MLPFS, collectively, the “Commitment Parties”, “we” or “us”) that it intends to (a) acquire an entity code-named “Omaha” (the “Target”) pursuant to an Agreement and Plan of Merger, dated as of the date hereof (together with all exhibits, annexes, schedules and other disclosure letters thereto, collectively, as modified, amended, supplemented, consented to or waived, the “Acquisition Agreement”) by and among the Company, the Target and Staples AMS, Inc., a corporation organized under the laws of the state of Delaware and a wholly-owned subsidiary of the Company (“Merger Sub”), whereby Merger Sub will merge with and into the Target with the Target surviving such merger as a wholly-owned subsidiary of the Company (the “Acquisition”) and (b) consummate the other transactions described in the Transaction Description attached hereto as Exhibit A (the “Transaction Description”).  Capitalized terms used but not defined herein shall have the meanings assigned to them in the Transaction Description, in the Summary of Principal Terms and Conditions attached hereto as Exhibit B (the “Term Facility Term Sheet”) and in the Summary of Principal Terms and Conditions attached hereto as Exhibit C (the “ABL Facility Term Sheet” and, together with the Term Facility Term Sheet, the “Term Sheets”; this commitment letter, the Transaction Description, the Term Sheets and the Summary of Additional Conditions attached hereto as Exhibit D, collectively, the “Commitment Letter”).

 

You have also advised us that, in connection therewith, it is intended that the financing for the Transactions will be financed from the following sources:

 

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·                 $2,750,000,000 of borrowings under a senior secured term loan facility (the “Term Facility”) having the terms set forth in the Term Facility Term Sheet;

 

·                 Borrowings of up to the amount specified in the ABL Facility Term Sheet under a $3,000,000,000 asset based revolving credit facility (the “ABL Facility”) (the ABL Facility and the Term Facility, collectively, are referred to herein as the “Facilities” and each as a “Facility”);

 

·                 Common equity issued by the Company to the shareholders of the Target in accordance with the Acquisition Agreement (the “Equity Issuance”); and

 

·                 Approximately $500,000,000 of existing cash on hand at the Company and the Target (the “Cash Consideration Amount”).

 

1.                                    Commitments and Agency Roles

 

You hereby appoint (i) Barclays to act, and Barclays hereby agrees to act, as sole and exclusive administrative agent for the Term Facility (in such capacity, the “Term Facility Administrative Agent”) and collateral agent for the Term Facility (in such capacity, the “Term Facility Collateral Agent”) and (ii) Bank of America to act, and Bank of America hereby agrees to act, as sole and exclusive administrative agent for the ABL Facility (in such capacity, the “ABL Facility Administrative Agent” and, together with the Term Facility Administrative Agent, collectively, the “Administrative Agents” and each an “Administrative Agent”) and collateral agent for the ABL Facility (in such capacity, the “ABL Facility Collateral Agent” and, together with the Term Facility Collateral Agent, collectively, the “Collateral Agents” and each a “Collateral Agent”).  You hereby appoint each of Barclays and MLPFS to act, and each of Barclays and MLPFS hereby agrees to act, as a lead arranger and bookrunner (in such capacity, together with any Additional Commitment Party (as defined below) appointed as a joint lead arranger and/or joint bookrunner with respect to the Term Facility pursuant to the provisions of the fourth paragraph of this Section 1, each an “Arranger” and collectively, the “Arrangers”) for each of the Facilities.  It is agreed that (i) Barclays shall have “left” placement in any and all marketing materials or other documentation used in connection with the Term Facility and shall hold the leading role and responsibilities conventionally associated with such “left” placement and (ii) MLPFS shall have “left” placement in any and all marketing materials or other documentation used in connection with the ABL Facility and shall hold the leading role and responsibilities conventionally associated with such “left” placement.

 

In connection with the Transactions (as defined in the Transaction Description) contemplated hereby, (i) Bank of America is pleased to advise you of its several (but not joint) commitment to provide 50% of the aggregate principal amount of the Term Facility and 57.5% of the aggregate principal amount of the ABL Facility and (ii) Barclays is pleased to advise you of its several (but not joint) commitment to provide 50% of the aggregate principal amount of the Term Facility and 42.5% of the aggregate principal amount of the ABL Facility, in each case, subject solely to the satisfaction or waiver of the applicable conditions set forth or referred to in Section 2 of this Commitment Letter.  In such capacities, Bank of America, Barclays and any other Initial Lender appointed as described below are the “Initial Lenders” and each is an “Initial Lender”.

 

Our fees for services related to the Facilities are set forth in a separate fee letter (the “Fee Letter”) between the Company and us entered into on the date hereof.  In consideration of our execution and delivery of this Commitment Letter, you agree to pay the fees and expenses set forth in the Term Sheets and in the Fee Letter as and when payable in accordance with the terms hereof and thereof.  Subject to the provisions set forth in the next succeeding paragraph, you agree that no other titles will be awarded and no compensation (other than as expressly contemplated by this Commitment Letter and the Fee Letter)

 

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will be paid to the Lenders in order to obtain their commitments under the Facilities unless you and we shall so agree.

 

The Company and the Arrangers (acting together) may, on or prior to the date that is fifteen (15) business days following the date hereof, appoint up to six (6) other financial institutions as documentation agents in respect of the Term Facility (up to two (2) of which may also be appointed as additional arrangers or bookrunners with respect to the Term Facility) (each an “Additional Commitment Party”).  The Additional Commitment Parties (or their affiliates) may have (in the aggregate) commitments of up to 25% of the commitment amount with respect to the Term Facility (or such greater percentage as Barclays and Bank of America may agree) and shall be entitled to their ratable share of the economics payable to Bank of America and Barclays in respect of the Term Facility.  It is understood that, to the extent any Additional Commitment Party is so appointed, the commitments of Bank of America and Barclays with respect to the Term Facility will be reduced ratably by the amount of the commitments of such Additional Commitment Party upon the execution by it of customary joinder documentation pursuant to which such Additional Commitment Party (or its affiliate) shall assume a proportion of the commitments with respect to the Term Facility that equals the proportion of the economics allocated to it and, thereafter, such Additional Commitment Party (or its affiliates) shall constitute an Initial Lender, an Arranger and a Commitment Party with respect to the Term Facility hereunder.

 

2.                                    Conditions Precedent

 

Our commitments hereunder to make effective and fund the Facilities on the Closing Date and our agreements to perform the services described herein are subject only to the following conditions: (i)(A) since September 27, 2014 through the date of the Acquisition Agreement, there not having been any Events (as defined below) that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect (as defined below) on the Target; provided that such condition is qualified in its entirety by reference to (1) the information disclosed by the Target in any Company SEC Document (as defined in the Acquisition Agreement as in effect on the date hereof) filed under Sections 13(a), 14(a) or 15(d) of the Exchange Act (as defined in the Acquisition Agreement as in effect on the date hereof) during the period from December 31, 2013 through the Business Day (as defined in the Acquisition Agreement as in effect on the date hereof) prior to the date of the Acquisition Agreement (other than in any risk factor or other cautionary or forward-looking disclosure contained in such Company SEC Document) and (2) the exceptions set forth in the Company Disclosure Schedule (as defined in the Acquisition Agreement as in effect on the date hereof); it being understood and agreed that each exception set forth in the Company Disclosure Schedule shall qualify such condition to the extent such exception is specifically identified as being disclosed under Section 3.6 of the Acquisition Agreement or such exception is disclosed with reference to any other section of the Acquisition Agreement and it is reasonably apparent on the face of such disclosure that it relates to Section 3.6, and (B) since the date of the Acquisition Agreement, there shall not have occurred any Events (other than Excluded Company Events (as defined in the Acquisition Agreement as in effect on the date hereof)) that, individually or in the aggregate, have had or would reasonably be expected to have a Material Adverse Effect on the Target; (ii) the conditions set forth in Exhibit D hereto, (iii) with respect to the Term Facility, each other condition set forth under the caption “Conditions Precedent to Effectiveness and Borrowings on the Closing Date” in the Term Facility Term Sheet and (iv) with respect to the ABL Facility, each other condition set forth under the caption “Conditions Precedent to Effectiveness and Borrowings on the Closing Date” in the ABL Facility Term Sheet; and upon, in each case, satisfaction (or waiver by the Commitment Parties) of such conditions, the initial funding of the Facilities shall occur; it being understood that there are no conditions (implied or otherwise) to the commitments hereunder, other than those that are expressly stated in clauses (i), (ii), (iii) and (iv), as applicable, above to be conditions to the initial funding under and effectiveness of, the Facilities on the Closing Date.

 

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“Material Adverse Effect” means any event, change or effect (each, an “Event”), individually or in the aggregate with other such Events, that has a material adverse effect on the financial condition, business or results of operations of the Target and its Subsidiaries (as defined in the Acquisition Agreement as of the date hereof), taken as a whole; provided, however, that a Material Adverse Effect shall not include any Event directly or indirectly arising out of or attributable to: (i) any decrease in the market price of the shares of the Company Common Stock (as defined in the Acquisition Agreement as of the date hereof), but not any Event underlying such decrease to the extent such Event would otherwise constitute a Material Adverse Effect; (ii) conditions, events, or circumstances generally affecting the retail, contract, direct mail and/or internet businesses of the office supply industry; (iii) changes in GAAP, applicable Law (as defined in the Acquisition Agreement as of the date hereof) or accounting standards, or in any interpretation of GAAP, applicable Law or accounting standards; (iv) any litigation arising from allegations of a breach of fiduciary duty or other violation of applicable Law relating to the Acquisition Agreement or the transactions contemplated by the Acquisition Agreement (or any public disclosure relating to such litigation); (v) any change, in and of itself, in any analyst’s recommendations, any financial strength rating or any other recommendations or ratings as to the Target or its Subsidiaries, or any failure, in and of itself, to meet analyst projections, but not any Event underlying such change or failure to the extent such Event would otherwise constitute a Material Adverse Effect; (vi) the failure, in and of itself, of the Target to meet any expected or projected financial or operating performance target publicly announced or provided to the Company prior to the date of the Acquisition Agreement, as well as any change, in and of itself, by the Target in any expected or projected financial or operating performance target as compared with any target publicly announced or provided to the Company prior to the date of the Acquisition Agreement, but in each case not any Event underlying such failure or change to the extent such Event would otherwise constitute a Material Adverse Effect; (vii) any changes or developments in United States, European, Asian or global economic, regulatory or political conditions in general (including the outbreak or escalation of hostilities or acts of war or terrorism), or generally affecting United States, European, Asian or global financial or securities markets; or (viii) any changes or developments resulting from the execution, delivery, existence of, or compliance with the Acquisition Agreement or announcement or consummation of the transactions contemplated by the Acquisition Agreement, including any loss of employees, customers, suppliers, vendors, licensors, licensees or distributors; provided, further, that the exceptions in subclauses (ii), (iii) and (vii) shall not apply to the extent that the Target and its Subsidiaries are materially disproportionately affected thereby compared to other participants in the industry or industries in which they operate.

 

Notwithstanding anything to the contrary in this Commitment Letter (including each of the exhibits attached hereto), the Fee Letter, the Loan Documents (as defined in Exhibit C) or any other agreement or undertaking between you and us concerning the financing of the Transactions to the contrary, (i) the only representations and warranties the accuracy of which will be a condition to the availability and effectiveness of the Facilities on the Closing Date will be (a) the representations and warranties made by, or with respect to, the Target in the Acquisition Agreement that are material to the interests of the Lenders, but only to the extent that the Company or its subsidiaries have the right (taking into account any applicable cure periods) to terminate its or their obligations under the Acquisition Agreement or decline to consummate the transactions thereunder as a result of a breach of such representations in the Acquisition Agreement (to such extent, the “Acquisition Agreement Representations”) and (b) the Specified Representations (as defined below) and (ii) the terms of the Loan Documents shall be in a form such that they do not impair the availability and effectiveness of the Facilities on the Closing Date if the conditions set forth or referred to in the first paragraph of this Section 2 are satisfied and/or waived by the Commitment Parties (it being understood that, to the extent any security interest in the Collateral (as defined in Exhibit B) (other than any collateral the security interest in which may be perfected by the filing of a UCC financing statement or by the possession of stock certificates (or equivalent certificated equity interests) of the subsidiaries of the Company (including the Target) as and to the extent required under the heading “Collateral” in Exhibit B), is not or cannot be provided and/or perfected on the Closing

 

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Date (1) without undue burden or expense or (2) after your use of commercially reasonable efforts to do so, then the provision and/or perfection of such security interest(s) or deliverable shall not constitute a condition precedent to the availability and effectiveness of the Facilities on the Closing Date but shall be required to be delivered no later than (x) 120 days after the Closing Date in the case of security interests in real properties and (y) 90 days after the Closing Date in the case of security interests in any other Collateral (in each case, as such date may be extended by the Administrative Agents acting reasonably) pursuant to arrangements to be mutually agreed by the Company and the Administrative Agents).  For purposes hereof, “Specified Representations” means the representations of the Borrowers and the Guarantors (each, as defined in each of the Term Sheets) in the Loan Documents relating to qualification, incorporation or organization of the Company and the Guarantors; power and authority to enter into the Loan Documents; due authorization and execution of the Loan Documents; no conflict of the Loan Documents with the organizational documents of any Borrower or any Guarantor or the Company’s existing 2.75% senior notes due 2018 (the “2018 Notes”) or 4.375% senior notes due 2023 (the “2023 Notes”); delivery and enforceability of the Loan Documents; solvency as of the Closing Date (after giving effect to the Transactions) of the Company and its restricted subsidiaries on a consolidated basis (solvency to be defined in a manner consistent with the manner in which solvency is determined in the solvency certificate to be delivered pursuant to paragraph 5 of Exhibit D); not being subject to regulation under the Investment Company Act of 1940; not using proceeds of the loans under the Facilities to purchase margin stock or in violation of the FCPA; not using the proceeds of the loans under the Facilities in violation of OFAC and the Patriot Act (and similar laws in relevant jurisdictions); and the creation, validity and perfection of the security interest to be granted in the intended collateral to be perfected (except as provided above).  This paragraph, and the provisions herein, shall be referred to as the “Limited Conditionality Provisions”.

 

3.                                    Syndication

 

The Arrangers intend and reserve the right, on and after the date of your acceptance of this Commitment Letter (the “Signing Date”), to syndicate the Facilities to the Lenders (as such term is defined in each of the Term Sheets) (collectively with the Initial Lenders, the “Lenders”).  Notwithstanding the foregoing, the Arrangers will not syndicate to (i) those lenders separately identified in writing by you to us prior to the date hereof or (ii) to your competitors (which shall not include bona fide debt funds), separately identified in writing by you to us prior to the date hereof or to the applicable Administrative Agent from time to time after the Closing Date (such Lenders, “Disqualified Lenders”).

 

Notwithstanding the Arrangers’ right to syndicate the Facilities and receive commitments with respect thereto (but other than in connection with any assignment to any Additional Commitment Party pursuant to Section 1 above or unless otherwise agreed in writing by you), (i) no Initial Lender shall be relieved, released or novated from its obligations hereunder (including its obligation to fund the Facilities on the date of effectiveness of, and initial funding under, the Facilities (the date of such effectiveness and funding, the “Closing Date”)) in connection with any syndication, assignment or participation of the Facilities, including its commitments in respect thereof, until after the initial funding of the Facilities on the Closing Date has occurred, (ii) no assignment or novation by any Initial Lender shall become effective with respect to all or any portion of any Initial Lender’s commitments in respect of the Facilities until after the initial funding of the Facilities on the Closing Date has occurred and (iii) unless you otherwise agree in writing, each Commitment Party shall retain exclusive control over all rights and obligations with respect to its commitments in respect of the Facilities, including all rights with respect to consents, modifications, supplements, waivers and amendments, until the Closing Date has occurred.

 

The Arrangers will lead the syndication, including determining, in consultation with you, the timing of all offers to potential Lenders, any title of agent or similar designations or roles awarded to any Lender and the acceptance of commitments, the amounts offered and the compensation provided to each Lender from

 

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the amounts to be paid to the Arrangers pursuant to the terms of this Commitment Letter and the Fee Letter, in each case subject to your consent rights with respect to Disqualified Lenders specified above and rights of appointment of any Additional Commitment Party.  The Arrangers will determine the final commitment allocations and will notify the Company of such determinations.  The Company agrees to use commercially reasonable efforts to ensure that the Arrangers’ syndication efforts benefit from the existing lending and investment banking relationships of the Company, the Target and their respective subsidiaries.  To facilitate an orderly and successful syndication of the Facilities, you agree that, until the earlier to occur of (a) a Successful Syndication (as defined in the Fee Letter) and (b) the Closing Date, the Company will not, and will use commercially reasonable efforts to ensure that the Target will not, syndicate or issue, attempt to syndicate or issue, announce or authorize the announcement of the syndication or issuance of, any debt facility or any debt security of the Company or the Target or any of their respective subsidiaries (other than the Facilities, any indebtedness of the Target permitted to be incurred by the Target (including its subsidiaries) pursuant to the Acquisition Agreement, and other indebtedness incurred in the ordinary course of business of the Company and its subsidiaries or the Target and its subsidiaries for capital expenditures and working capital purposes), without the prior written consent of the Arrangers, if such issuance, offering, placement or arrangement would reasonably be expected to materially impair the primary syndication of the Facilities.

 

Without limiting your obligations to assist with the syndication efforts as set forth herein, it is understood that the Initial Lenders’ commitments hereunder are not conditioned upon the syndication of, or receipt of commitments in respect of, the Facilities and in no event shall the successful completion of syndication of the Facilities constitute a condition to the availability of the Credit Facilities on the Closing Date.  The Company agrees to, and agrees to use commercially reasonable efforts to have the Target, cooperate with the Arrangers, and provide customary information reasonably required by the Arrangers, in connection with all syndication efforts of the Arrangers until the earlier to occur of (a) a Successful Syndication and (b) 60 days following the Closing Date, including: (i) your assistance in preparing, as soon as practicable after the date of this Commitment Letter, a customary information memorandum and other customary presentation materials (collectively, “Facilities Marketing Materials”) in each case to be used in connection with the syndication of the Facilities; (ii) using commercially reasonable efforts to obtain, prior to the launch of syndication, a public corporate family rating from Moody’s Investors Service, Inc. (“Moody’s”) and a public corporate credit rating from Standard & Poor’s Ratings Service (“S&P”), in each case with respect to the Company, and ratings for the Term Facility from each of S&P and Moody’s; (iii) arranging for direct contact between appropriate senior management, representatives and advisors of the Company (and using commercially reasonable efforts to cause direct contact between appropriate senior management, representatives and advisors of the Target) with prospective Lenders in all such cases at times mutually agreed upon; (iv) hosting (including any preparations with respect thereto) with the Arrangers at places and times reasonably requested by the Arrangers and mutually agreed upon one or more meetings with prospective Lenders; and (v) ensuring that (and with respect to the Target, using commercially reasonable efforts to ensure that) the ABL Facility Administrative Agent shall have sufficient access to the Company and its subsidiaries and the Target and its subsidiaries, such that the field exam and inventory appraisal referred to in paragraph 11 of Exhibit D can be completed at least 15 business days prior to the launch of retail syndication of the ABL Facility.  We agree (i) to use our commercially reasonable efforts to hire third party appraisers within 5 business days of the Signing Date and ensure the timely completion of such field exam and inventory appraisal and (ii) that the only financial statements that shall be required to be provided to the Commitment Parties in connection with the syndication of the Facilities shall be those required to be delivered pursuant to paragraphs 2 and 3 of Exhibit D.  Notwithstanding anything to the contrary contained in this Commitment Letter or the Fee Letter or any other letter agreement or undertaking concerning the financing of the Transactions to the contrary, your obligations to assist in syndication efforts as provided herein (including the obtaining of the ratings referred to above and the compliance with any of the provisions set forth in this paragraph),

 

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shall not constitute a condition to the commitments hereunder or the funding of the Facilities on the Closing Date.

 

Subject to your consent, not to be unreasonably withheld or delayed, and compliance with applicable laws, each Arranger has the right, after the Closing Date, to place advertisements in financial and other newspapers and journals at its own expense describing its services to you.  You will be solely responsible for the contents of the Facilities Marketing Materials and all other information, documentation or other materials delivered to us by you or your affiliates in connection therewith and you acknowledge that we will be using and relying upon such information without independent verification thereof.

 

You understand that certain prospective Lenders (such Lenders, “Public Lenders”) may have personnel that do not wish to receive MNPI (as defined below).  At the Arrangers’ request, you agree to assist in the preparation of an additional version of the Facilities Marketing Materials that does not contain material non-public information (as reasonably determined by you) concerning you, the Target or your or its respective subsidiaries or your or its respective affiliates or any of your or its respective securities for purposes of foreign, United States federal and state securities laws (collectively, “MNPI”).  You will clearly designate as “PUBLIC” any information that does not contain MNPI (the “Public Information Materials”) provided to the Commitment Parties by you or by your representatives on your behalf which is suitable to make available to Public Lenders.  Before distribution of any Facilities Marketing Materials in connection with the syndication of the Facilities (i) to prospective Lenders that are not Public Lenders, you will provide us with a customary letter authorizing the dissemination of such materials and (ii) to prospective Public Lenders, you will provide us with a customary letter authorizing the dissemination of Public Information Materials to Public Lenders and confirming the absence of MNPI therein.  You acknowledge and agree that the following documents may be distributed to Public Lenders (unless you or your counsel promptly notify us (including by email) otherwise and provided that you and your counsel have been given a reasonable opportunity to review such documents and comply with applicable securities law disclosure obligations): (a) drafts and final versions of the Loan Documents; (b) administrative materials prepared by the Arrangers for prospective Lenders (including without limitation a lender meeting invitation, allocations and funding and closing memoranda); and (c) term sheets and notification of changes in the terms and conditions of the Facilities.  You agree that unless specifically labeled “PUBLIC,” no information, documentation or other data disseminated to prospective Lenders in connection with the syndication of the Facilities, whether through an Internet site (including without limitation an IntraLinks or SyndTrak workspace), electronically, in presentations, at meetings or otherwise will be distributed to Public Lenders.

 

4.                                    Information

 

You represent and warrant that (and with respect to information and projections relating to the Target and its subsidiaries, to the best of your knowledge that) (i) all written information (other than projections, forward-looking information and information of a general economic or industry specific nature) that has been or will be made available to any Arranger, any Commitment Party, the Lenders or any of their respective affiliates by you or the Target or any of your or its respective representatives on your or its behalf in connection with the Transactions, when taken as a whole, was and will be, when furnished, complete and correct in all material respects and did not and will not when furnished and when taken as a whole contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained therein not materially misleading in light of the circumstances under which such statements were or are made (giving effect to all supplements and updates provided thereto) and (ii) the projections and other forward-looking information that have been or will be made available to any Arranger, any Commitment Party, the Lenders or any of their respective affiliates by you or the Target or any of your or its respective representatives on your or its behalf in connection with the Transactions have been and will be prepared in good faith and that the information in such projections with respect to you

 

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will be based upon accounting principles consistent with the historical audited financial statements of the Company most recently provided to the Commitment Parties as of the date hereof and upon assumptions that are believed by the preparer thereof to be reasonable at the time made and at the time such projections are made available to any Arranger, any Commitment Party, the Lenders or any of their respective affiliates; it being understood that such projections and forward-looking statements are as to future events and are not to be viewed as facts, such projections and forward-looking statements are subject to significant uncertainties and contingencies and that actual results during the period or periods covered by any such information may differ significantly from the projected results, and that no assurance can be given that the projected results will be realized.  You agree that if at any time prior to the later of (a) the Closing Date and (b) a Successful Syndication (but, in any event, not later than 60 days after the Closing Date) you become aware that any of the representations in the preceding sentence would be incorrect (to the best of your knowledge with respect to information and projections relating to the Target and its subsidiaries) in any material respect if the information and projections were being furnished, and such representations were being made, at such time, then you will (and, with respect to information and projections relating to the Target and its subsidiaries, you will use commercially reasonable efforts to cause the Target and its subsidiaries to) promptly supplement, or cause to be supplemented, the information and projections so that (with respect to information and projections relating to the Target and its subsidiaries, to the best of your knowledge) such representations will be correct in all material respects under those circumstances.  You understand that in providing our services pursuant to this Commitment Letter we may use and rely on the information and projections without independent verification thereof.

 

5.                                    Indemnification; Expense Reimbursement

 

To induce us to enter into this Commitment Letter and the Fee Letter and to proceed with the documentation of the Facilities, you hereby agree (a) to indemnify and hold harmless the Administrative Agents, the Collateral Agents, the Commitment Parties (including the Additional Commitment Parties, if any), the Arrangers, each Commitment Party in any other capacity to which it may be appointed by you in connection with the Transactions, each Lender and their respective affiliates and each partner, trustee, director, officer, employee, advisor, representative, agent, attorney and controlling person thereof (each of the above, an “Indemnified Person”) from and against any and all actions, suits, proceedings (including any investigations or inquiries), claims, losses, damages, liabilities or expenses, joint or several, of any kind or nature whatsoever that may be brought by the Company, the Target, the Guarantors, any of their respective affiliates or any other person or entity and which may be incurred by or asserted against or involve any Indemnified Person as a result of or arising out of or in any way relating to or resulting from this Commitment Letter, the Fee Letter, the Facilities, the Transactions or any related transaction contemplated hereby or thereby or any use or intended use of the proceeds of the Facilities and you agree, upon demand, to pay and reimburse each Indemnified Person, whether or not the action, suit, proceeding or claim out of which any such expenses arise is brought by the Company, the Target, any Guarantor, any of their respective affiliates or any other person or entity and whether or not any Indemnified Person is a party to such action, suit, proceeding or claim for any reasonable, documented out-of-pocket legal (limited to the fees, charges and disbursements of a single counsel for all Indemnified Persons selected by the Commitment Parties and of such special and local counsel as the Commitment Parties may deem appropriate in their good faith discretion, except that if any Indemnified Person reasonably concludes that its interests conflict with those of another Indemnified Person and notifies you of such conflict, you shall also be responsible for the reasonable, documented fees, charges and disbursements of (i) one separate counsel for such conflicted Indemnified Persons and (ii) such special and local counsel as such conflicted Indemnified Persons may deem appropriate in their good faith discretion) and other reasonable, documented out-of-pocket expenses incurred in connection with investigating, defending or preparing to defend any such action, suit, proceeding (including any inquiry or investigation) or claim; provided that you will not have to indemnify an Indemnified Person against (A) any claim, loss, damage, liability or expense (i) to the extent such claim, loss, damage, liability or

 

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expense is found in a final, non-appealable judgment of a court of competent jurisdiction to have resulted from (x) the gross negligence or willful misconduct of such Indemnified Person or any of its controlled affiliates, partners, trustees, directors, officers, employees, advisors, representatives, agents, attorneys or controlling persons or (y) a material breach by any Commitment Party of its obligations under this Commitment Letter or (ii) arising out of any claim, actions, suits, inquiries, litigation, investigation or proceeding that does not involve an act or omission of you or any of your affiliates and that is brought by an Indemnified Person against any other Indemnified Person (other than any claim, actions, suits, inquiries, litigation, investigation or proceeding against any Administrative Agent, Commitment Party, Arranger or other agent in its capacity or in fulfilling its role as such) or (B) any settlement entered into by such Indemnified Person without your written consent (such consent not to be unreasonably withheld, conditioned or delayed) and (b) on the earlier of the Closing Date and any other Termination Date, to reimburse each Commitment Party from time to time, upon presentation of a summary statement, for all reasonable and documented out-of-pocket expenses (including but not limited to expenses of each Commitment Party’s due diligence investigation, consultants’ fees, syndication expenses, travel expenses and reasonable fees, disbursements and other charges of counsel to the Arrangers, of a single firm of local counsel to the Arrangers in each relevant material jurisdiction and, solely in the case of an actual or perceived conflict of interest, one additional counsel in each applicable material jurisdiction), in each case incurred in connection with the Facilities and the preparation, negotiation and enforcement of this Commitment Letter, the Fee Letter and the Loan Documents.  You acknowledge that we may receive a benefit, including without limitation, a discount, credit or other accommodation, from any of such counsel based on the fees such counsel may receive on account of their relationship with us including, without limitation, fees paid pursuant hereto.  Notwithstanding any other provision of this Commitment Letter, no Indemnified Person will be responsible or liable to you or any other person or entity for damages arising from the use by others of any information or other materials obtained through internet, electronic, telecommunications or other information transmission systems unless such use resulted from the gross negligence or willful misconduct on the part of such person (to the extent determined by a court of competent jurisdiction in a final and non-appealable judgment).

 

The indemnity and reimbursement obligations of the Company under this Section 5 will be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Company and the Indemnified Persons and shall be superseded in each case by the applicable provisions to the extent covered in the definitive financing documentation upon execution thereof and thereafter shall have no further force and effect.

 

Neither you nor we nor any other Indemnified Person will be responsible or liable to us or you or any other person or entity for any indirect, special, punitive or consequential damages which may be alleged as a result of or arising out of, or in any way related to, the Acquisition, this Commitment Letter, the Fee Letter, the Facilities or the Transactions or any use or intended use of the proceeds of the Facilities; provided that the indemnity and reimbursement obligations under this Section 5 shall not be limited by this sentence.

 

6.                                    Assignments

 

This Commitment Letter may not be assigned by you without the prior written consent of each of the Commitment Parties (and any purported assignment without such consent will be null and void), is intended to be solely for the benefit of the parties hereto and is not intended to confer any benefits upon, or create any rights in favor of, any person (including equity holders, employees or creditors of the Company) other than the parties hereto (and any Indemnified Person).  This Commitment Letter may not be assigned by any Commitment Party without the consent of the Company (and any purported assignment without such consent will be null and void); provided that (i) the Initial Lenders may assign their commitments in accordance with Section 3 above and (ii) in the case of an assignment to an

 

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February 4, 2015

 

Additional Commitment Party pursuant to Section 1 above, each of Barclays and Bank of America shall assign a portion of their respective commitment to such Additional Commitment Party and will be released from such portion of its commitment and the agreements hereunder that have been so assigned.  This Commitment Letter may not be amended or any term or provision hereof waived or modified except by an instrument in writing signed by each of the parties hereto.

 

7.                                    USA PATRIOT Act Notification

 

The Arrangers hereby notify the Company, the Borrowers and the Guarantors that, pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it and each Lender may be required to obtain, verify and record information that identifies the Borrowers and the Guarantors, which information includes the name and address of the Borrowers and the Guarantors and other information that will allow the Arrangers and each Lender to identify the Borrowers and the Guarantors in accordance with the Patriot Act.  This notice is given in accordance with the requirements of the Patriot Act and is effective for each Arranger and each Lender, and you agree that the Arrangers shall be permitted to share such information with the Lenders.

 

8.                                    Sharing Information; Affiliate Activities; Absence of Fiduciary Relationship

 

Please note that this Commitment Letter, the Fee Letter and any communications provided by the Commitment Parties or any of their affiliates in connection with the Transactions (collectively with the Commitment Letter and the Fee Letter, the “Transaction Information”) may not be disclosed to any person or entity other than the Board of Directors and senior management of the Company or circulated or referred to publicly without our prior written consent except, after providing prior written notice to the Commitment Parties (but only as and to the extent the provision of such notice is reasonably practicable), pursuant to applicable law or compulsory legal process, including without limitation a subpoena or order issued by a court of competent jurisdiction or by a judicial, administrative or legislative body or committee; provided that (x) we hereby consent to your disclosure of (i) the Transaction Information to your officers, directors, employees, agents, attorneys, accountants, advisors and controlling persons who are directly involved in the consideration of the Facilities to the extent you notify such persons of their obligation to keep such Transaction Information confidential and such persons are subject to confidentiality obligations, (ii) this Commitment Letter or the information contained herein and the Term Sheets (but not the Fee Letter or the information contained therein other than a version of the Fee Letter redacted in a customary manner reasonably satisfactory to the Commitment Parties) to the Target and its officers, directors, employees, agents, attorneys, accountants, advisors and controlling persons who are directly involved in the consideration of the Facilities to the extent you notify such persons of their obligation to keep this Commitment Letter, such Term Sheets and the information contained herein and therein confidential and such persons are subject to confidentiality obligations, (iii) the Term Sheets to any ratings agencies on a confidential basis in connection with the Transactions, (iv) this Commitment Letter or the information contained herein and the Term Sheets (but not the Fee Letter or the information contained therein) in any syndication or other marketing materials, prospectus or other offering memorandum, in each case relating to the Facilities, (v) the Term Sheets (but not this Commitment Letter or the Fee Letter) to potential debt providers in coordination with us to obtain commitments to the Facilities from such potential debt providers, (vi) this Commitment Letter or the information contained herein and the Term Sheets (but not the Fee Letter or the information contained therein) to the extent customary or required in any public or regulatory filing relating to the Transactions, (vii) you may disclose the aggregate amounts contained in the Fee Letter as part of the projections, pro forma information or a generic disclosure of aggregate sources and uses related to fee amounts related to the Transactions to the extent customary or required in offering and marketing materials for the Facilities or to the extent customary or required in any public or regulatory filing relating to the Transactions and (viii) after the Signing Date, you may disclose this Commitment Letter and the Fee Letter and the contents of

 

10

 

February 4, 2015

 

each thereof (including the Term Sheets and other exhibits and attachments hereto) to any potential Additional Commitment Party to the extent in contemplation of appointing such person pursuant to the provisions of Section 1 of this Commitment Letter and to any such person’s affiliates and its and their respective officers, directors, employees, agents, attorneys, accountants, advisors, controlling persons and equity holders, in each case, on a confidential and need-to-know basis; provided, further, that the foregoing restrictions shall cease to apply (except in respect of the Fee Letter and the contents thereof) after the earlier of the Closing Date and the date that is two years after the Signing Date.

 

We shall use all nonpublic information received by us and our affiliates from or on behalf of you in connection with this Commitment Letter and the transactions contemplated hereby solely for the purposes of negotiating, evaluating and consulting on the transactions contemplated hereby and providing the services that are the subject of this Commitment Letter and shall treat confidentially, together with the terms and substance of this Commitment Letter and the Fee Letter, all such information; provided, however, that nothing herein shall prevent us from disclosing any such information (a) to rating agencies on a confidential basis in connection with our mandate hereunder, (b) to any Lenders or participants or prospective Lenders or participants who have agreed to be bound by confidentiality and use restrictions in accordance with the proviso to this sentence, (c) in any legal, judicial or administrative proceeding or other compulsory process or otherwise as required by applicable law or regulations (in which case we shall promptly notify you, in advance, to the extent reasonably practicable and permitted by law), (d) upon the request or demand of any regulatory authority having jurisdiction over us or our affiliates (in which case we shall, except with respect to any audit or examination conducted by bank accountants or any regulatory authority exercising examination or regulatory authority, promptly notify you, in advance, to the extent reasonably practical and permitted by law), (e) to our officers, directors, employees, legal counsel, independent auditors, professionals and other experts or agents (collectively, “Representatives”) who are informed of the confidential nature of such information and who are subject to customary confidentiality obligations of professional practice or who agree to be bound by the terms of this paragraph (or language substantially similar to this paragraph) (with each such Commitment Party, to the extent within its control, responsible for such Representatives’ compliance with this paragraph), (f) to any of our affiliates and their Representatives (provided that any such affiliate or Representative is advised of its obligation to retain such information as confidential, and we shall be responsible for such affiliates’ compliance with this paragraph) to be utilized solely in connection with rendering services to you in connection with the Transactions, (g) to the extent any such information becomes publicly available other than by reason of disclosure by us, our affiliates or any of our respective Representatives in breach of this Commitment Letter (h) to the extent that such information is received by us from a third party that is not, to our knowledge, subject to confidentiality obligations owing to you or any of your affiliates or related parties, (i) to the extent that such information is independently developed by us, (j) for purposes of establishing a “due diligence” defense (in which case we shall promptly notify you, in advance, to the extent permitted by law), (k) to any hedge provider or prospective hedge provider (collectively, “Specified Counterparties”) subject to the provisions of the proviso to this paragraph or (l) for purposes of enforcing the rights of the Commitment Parties under this Commitment Letter; provided that the disclosure of any such information to any Lenders or prospective Lenders or participants or prospective participants or Specified Counterparties referred to above shall be made subject to the acknowledgment and acceptance by such Lender or prospective Lender or participant or prospective participant or Specified Counterparty that such information is being disseminated on a confidential basis (on substantially the terms set forth in this paragraph or as is otherwise reasonably acceptable to you and us, including, without limitation, as agreed in any confidential information memorandum or other marketing materials) in accordance with our standard syndication processes or customary market standards for dissemination of such type of information.  The provisions of this paragraph shall automatically be superseded by the confidentiality provisions to the extent covered in the definitive documentation for the Facilities upon the Closing Date and shall in any event automatically terminate two years following the date of this Commitment Letter.

 

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February 4, 2015

 

You acknowledge that the Commitment Parties and their respective affiliates may from time to time effect transactions, for their own account or the account of customers, and may hold positions in loans or options on loans of the Company, the Target and other companies that may be the subject of the Transactions.  In addition, each of the Commitment Parties and their respective affiliates are full service securities firms and as such may from time to time effect transactions, for their own account or the account of customers, and may hold long or short positions in securities or options on securities of the Company, the Target and other companies that may be the subject of the Transactions.  You acknowledge that each Commitment Party and their affiliates may be providing debt financing, equity capital or other services (including financial advisory services) to other companies in respect of which you may have conflicting interests regarding the transactions described herein or otherwise, and that each Commitment Party and its affiliates may have economic interests that are different from or conflict with those of the Company regarding the Transactions.  You acknowledge that no Commitment Party has any obligation to disclose such interests and transactions to you by virtue of any fiduciary, advisory or agency relationship and you waive, to the fullest extent permitted by law, any claims you may have against any Commitment Party for breach of fiduciary duty or alleged breach of fiduciary duty and agree that no Commitment Party will have any liability (whether direct or indirect) to you in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on your behalf, including your equity holders, employees or creditors.  You acknowledge that the Transactions (including the exercise of rights and remedies hereunder and under the Fee Letter) are arms’-length commercial transactions and that we are acting as principal and in our own best interests.  The Company is relying on its own experts and advisors to determine whether the Transactions are in the Company’s best interests.  You agree that we will act under this Commitment Letter and the Fee Letter as an independent contractor and that nothing in this Commitment Letter, the Fee Letter, the nature of our services or in any prior relationship will be deemed to create an advisory, fiduciary or agency relationship between us, on the one hand, and the Company, its equity holders or its affiliates, on the other hand, in connection with the financing contemplated hereby.  In addition, we may employ the services of our respective affiliates and branches in providing any of the services hereunder and may exchange with such affiliates information concerning the Company, the Target and other companies that may be the subject of the Transactions and such affiliates or branches will be entitled to the benefits afforded to, and subject to the limitations and restrictions binding upon, us hereunder.

 

In addition, please note that Barclays Capital Inc. has been retained by you as financial advisor (in such capacity, the “Financial Advisor”) to you in connection with the Acquisition.  You agree to such retention, and further agree not to assert any claim you might allege based on any actual or potential conflicts of interest that might be asserted to arise or result from, on the one hand, the engagement of the Financial Advisor, and on the other hand, our and our affiliates’ relationships with you as described and referred to herein.

 

Consistent with our policies to hold in confidence the affairs of our customers, we will not use or disclose confidential information obtained from you by virtue of the Transactions in connection with our performance of services for any of our other customers (other than as permitted to be disclosed under this Section 8).  Furthermore, you acknowledge that neither we nor any of our affiliates have an obligation to use in connection with the Transactions, or to furnish to you, confidential information obtained or that may be obtained by us from any other person.

 

Additionally, you acknowledge and agree that no Commitment Party nor their respective affiliates are advising you as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction; provided that the parties acknowledge that the Financial Advisor is advising you with respect to the Acquisition pursuant to a separate Engagement Letter between the Financial Advisor and you.  You shall consult with your own advisors concerning such matters and shall be responsible for making your own independent investigation and appraisal of the transactions contemplated hereby, and no Commitment

 

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February 4, 2015

 

Party nor their respective affiliates shall have any responsibility or liability to you with respect thereto.  Any review by the Commitment Parties or their affiliates of the Company, the Target, the Transactions, the other transactions contemplated hereby or other matters relating to such transactions will be performed solely for the benefit of the Commitment Parties and shall not be on behalf of you or any of your affiliates.

 

9.                              Waiver of Jury Trial; Governing Law; Submission to Jurisdiction; Surviving Provisions

 

ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY ACTION, SUIT, PROCEEDING OR CLAIM ARISING IN CONNECTION WITH OR AS A RESULT OF ANY MATTER REFERRED TO IN THIS COMMITMENT LETTER OR THE FEE LETTER IS HEREBY IRREVOCABLY WAIVED BY THE PARTIES HERETO.  THIS COMMITMENT LETTER WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK; PROVIDED, HOWEVER, THAT THE LAWS OF THE STATE OF DELAWARE SHALL GOVERN IN DETERMINING (A) THE INTERPRETATION OF A MATERIAL ADVERSE EFFECT AND WHETHER A MATERIAL ADVERSE EFFECT HAS OCCURRED AND (B) THE ACCURACY OF ANY ACQUISITION AGREEMENT REPRESENTATION AND WHETHER AS A RESULT OF ANY INACCURACY THEREOF YOU OR YOUR SUBSIDIARIES (OTHER THAN THE TARGET AND ITS SUBSIDIARIES) HAVE THE RIGHT (WITHOUT REGARD TO ANY NOTICE REQUIREMENT) TO TERMINATE YOUR OR THEIR RESPECTIVE OBLIGATIONS (OR TO REFUSE TO CONSUMMATE THE ACQUISITION) UNDER THE ACQUISITION AGREEMENT (IN EACH CASE, WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF DELAWARE).

 

Each of the parties hereto hereby irrevocably and unconditionally (i) submits, for itself and its property, to the exclusive jurisdiction of (a) the Supreme Court of the State of New York, New York County, located in the Borough of Manhattan and (b) the United States District Court for the Southern District of New York and any appellate court from any such court, in any action, suit, proceeding or claim arising out of or relating to this Commitment Letter, the Fee Letter or the performance of services hereunder or under the Fee Letter, or for recognition or enforcement of any judgment, and agrees that all claims in respect of any such action, suit, proceeding or claim may be heard and determined in such New York State court or, to the extent permitted by law, in such Federal court, (ii) waives, to the fullest extent that it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any action, suit, proceeding or claim arising out of or relating to this Commitment Letter, the Fee Letter or the performance of services hereunder or under the Fee Letter in any such New York State or Federal court and (iii) waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of any such action, suit, proceeding or claim in any such court.  Each of the parties hereto agrees to commence any such action, suit, proceeding or claim either in the United States District Court for the Southern District of New York or in the Supreme Court of the State of New York, New York County located in the Borough of Manhattan.

 

This Commitment Letter and any written or oral communications provided by the Commitment Parties or any of their affiliates in connection with the Transactions are issued for your benefit only and no other person or entity (other than the Indemnified Persons) may rely hereon or thereon.

 

Each of the parties hereto agrees that (i) this Commitment Letter is a binding and enforceable agreement with respect to the subject matter contained herein, including an agreement of each party to negotiate in

 

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February 4, 2015

 

good faith the Loan Documents by the parties hereto in a manner consistent with this Commitment Letter, it being acknowledged and agreed that the commitments provided hereunder are subject only to conditions precedent as expressly provided or referred to in Section 2 of this Commitment Letter, and (ii) the Fee Letter is a legally valid and binding agreement of the parties thereto with respect to the subject matter set forth therein.

 

Except to the extent otherwise specified in this Commitment Letter, the provisions of Sections 3, 4, 5, 6 and 8 and this Section 9 of this Commitment Letter will survive any termination or completion of the arrangements contemplated by this Commitment Letter or the Fee Letter, or the Transactions, including without limitation whether or not the Loan Documents are executed and delivered and whether or not the Facilities are made available or any loans under the Facilities are incurred.  You may terminate this Commitment Letter and the Initial Lenders’ commitments with respect to the Facilities hereunder at any time subject to the provisions of the preceding sentence and the Fee Letter.  In addition, in the event that a lesser amount of indebtedness is required to fund the Transactions for any reason (including by virtue of the issuance of additional shares of capital stock by the Company pursuant to the Equity Issuance), you may, in your sole discretion, reduce the Initial Lenders’ commitments with respect to the Term Facility (on a pro rata basis amongst the Initial Lenders).

 

10.                            Termination; Acceptance

 

Our commitments hereunder and our agreements to provide the services described herein will automatically (and without further action) terminate upon the first to occur of (such first date, the “Termination Date”) (i) the consummation of the Acquisition (together with any funding of the Facilities to the extent required hereunder), (ii) your written notice to us of your abandonment or termination of the definitive documentation for the Acquisition, including the Acquisition Agreement, (iii) your written notice to us of your election to terminate the commitments for all of the Facilities, our agreements to provide the services described herein, and your obligations described herein and (iv) 5:00 p.m. New York City time on November 4, 2015 (or, if all conditions precedent to consummation of the Acquisition pursuant to the Acquisition Agreement have been satisfied other than the receipt of regulatory approvals, 5:00 p.m. New York City time on February 4, 2016) unless the Closing Date has occurred on or before such date on the terms and subject to the conditions set forth herein.  Notwithstanding anything in this paragraph to the contrary, the termination of any commitment pursuant to this paragraph does not prejudice our or your rights and remedies in respect of any breach of this Commitment Letter.

 

This Commitment Letter may be executed in any number of counterparts, each of which when executed will be an original and all of which, when taken together, will constitute one agreement.  Delivery of an executed counterpart of a signature page of this Commitment Letter by facsimile or other electronic transmission will be as effective as delivery of a manually executed counterpart hereof.  This Commitment Letter and the Fee Letter set forth the entire understanding of the parties with respect to the Facilities and supersede any prior written or oral agreements among the parties hereto with respect to the Facilities.  Those matters that are not covered in this Commitment Letter or in the Fee Letter are subject to mutual agreement of the parties.  This Commitment Letter is in addition to the agreements of the parties set forth in the Fee Letter.  No person has been authorized by any Commitment Party to make any oral or written statements that are inconsistent with this Commitment Letter and the Fee Letter.

 

Please confirm that the foregoing is in accordance with your understanding by signing and returning to the Commitment Parties the enclosed copy of this Commitment Letter, together, if not previously executed and delivered, with the Fee Letter on or before the close of business on February 5, 2015, whereupon this Commitment Letter and the Fee Letter will become binding agreements among us.  If not signed and returned as described in the preceding sentence by such date, this offer will terminate on such date.

 

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February 4, 2015

 

[The remainder of this page is intentionally left blank.]

 

15

 

We look forward to working with you on this assignment.

 

	
 
    	
 
    	
 
    
	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BANK OF AMERICA, N.A.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Adam Cady
    	
 
    
	
 
    	
 
    	
Name:  Adam Cady
    
	
 
    	
 
    	
Title:  Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
MERRILL   LYNCH, PIERCE, FENNER & SMITH
    
	
 
    	
INCORPORATED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Adam Cady
    	
 
    
	
 
    	
 
    	
Name:  Adam Cady
    
	
 
    	
 
    	
Title:  Managing Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BARCLAYS BANK PLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Regina Tarone
    	
 
    
	
 
    	
 
    	
Name:  Regina Tarone
    
	
 
    	
 
    	
Title:  Managing Director
    

 

[Signature Page to Commitment Letter]

 

 

	
Accepted and agreed to   as of
    	
 
    
	
the date first above   written:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
STAPLES, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Ronald L. Sargent
    	
 
    	
 
    
	
 
    	
Name:  Ronald L. Sargent
    	
 
    
	
 
    	
Title:  Chief Executive Officer
    	
 
    
				

 

[Signature Page to Commitment Letter]

 

 

Exhibit A

 

Project Warrior
  Transaction Description

 

Capitalized terms used but not defined herein have the meanings assigned to such terms as set forth in the Commitment Letter to which this Exhibit A is attached.  In the case of any such capitalized term that is subject to multiple and differing definitions, the appropriate meaning thereof in this Exhibit A shall be determined by reference to the context in which it is used.

 

In connection with the Acquisition, it is intended that:

 

1.            The Company will obtain the Facilities and, on the Closing Date, will borrow (i) term loans under the Term Facility in an aggregate principal amount of $2,750 million and (ii) loans and other extensions of credit in an aggregate amount of approximately $1,500 million under the ABL Facility;

 

2.            The Equity Issuance will be consummated;

 

3.            Immediately after giving effect to the Acquisition, (a) on the Closing Date, all principal, accrued and unpaid interest, fees, premium, if any, and other amounts (other than (i) contingent obligations not then due and payable and that by their terms survive the termination of the Existing Credit Facility (as defined below) and (ii) certain existing letters of credit outstanding thereunder that on the Closing Date will be handled as set forth under the heading “Letters of Credit” in Exhibit C) under that certain Amended and Restated Credit Agreement dated as of May 25, 2011 (as amended, restated, amended and restated, refinanced, replaced, modified or supplemented from time to time prior to the Closing Date), among, inter alios, the Target, JPMorgan Chase Bank, N.A. as administrative agent and US collateral agent, JPMorgan Chase Bank, N.A., London Branch, as European administrative agent and European collateral agent, and the other parties thereto (the “Existing Credit Facility”) will be repaid in full and the commitments to extend credit thereunder will be terminated and security interests or guaranties provided in connection therewith will be terminated or released pursuant to a customary payoff letter and (b) the Target’s 9.75% Senior Secured Notes due 2019 (the “Existing Notes”), issued under that certain Indenture, dated as of March 14, 2012 (the “Existing Indenture”), between the Target and US Bank National Association, as trustee, will either be (A) redeemed 30 days after the Closing Date (with an irrevocable notice of redemption being delivered on the Closing Date), (B) irrevocably defeased in accordance with the terms of the Existing Indenture, (C) discharged on the Closing Date (with an irrevocable notice of redemption being delivered on the Closing Date) or (D) will be subject to a tender offer and consent solicitation that closes on the Closing Date, which as a result of such tender offer and consent solicitation and/or any covenant defeasance or discharge in accordance with the terms of the Existing Indenture, any conflicts in the Existing Indenture are eliminated (and if any stub debt remains outstanding after such tender offer and consent solicitation, the Target shall redeem, discharge or defease such stub debt in the manner described in either clause (A) or (B) above (with an irrevocable notice of redemption being delivered on the Closing Date) (the transactions described in clauses (a) and (b) above, collectively, the “Refinancings”); and

 

Exhibit A-1

 

4.            The proceeds of the Term Facility and permitted borrowings under the ABL Facility, together with approximately $500 million of existing cash on hand of the Company and the Target, will be applied (i) as described above to fund the cash consideration for the Acquisition, (ii) to pay the fees and expenses incurred in connection with the Transactions (such fees and expenses, including any original issue discount, the “Transaction Costs”) and (iii) to pay for the Refinancings.

 

The Acquisition and the other transactions described above (including the payment of Transaction Costs) are collectively referred to herein as the “Transactions”.

 

Exhibit A-2

 

Exhibit B

 

Project Warrior
 Summary of Terms and Conditions of the Term Facility

 

Capitalized terms used but not defined herein have the meanings assigned to such terms as set forth in the in the Commitment Letter (including Exhibits A, C and D thereto) to which this Exhibit B is attached.

 

	
Borrower:
    	
 
    	
The Company (the   “Borrower”).
    
	
 
    	
 
    	
 
    
	
Guarantors:
    	
 
    	
All obligations   of the Borrower under the Term Facility and under any Incremental Facility   (as defined below) will be unconditionally guaranteed by each existing and   each subsequently acquired or organized direct or indirect U.S. wholly-owned   restricted subsidiary of the Borrower (individually, each a “Guarantor”   and, collectively, the “Guarantors”), subject to customary exceptions   (including, without limitation, where the Borrower and the Administrative   Agent reasonably determine that the costs of obtaining such guarantee are   excessive in relation to the value afforded thereby). The Borrower and the   Guarantors of the Term Facility are each herein referred to as a “Loan   Party”.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Borrower will be permitted, on and after the Closing Date, to   designate subsidiaries as “unrestricted” (each, an “Unrestricted   Subsidiary”), and to re-designate an Unrestricted Subsidiary as   “restricted”, subject to (x) customary limitations on investments,   loans, advances to, and other investments in Unrestricted Subsidiaries,   (y) the absence of any defaults or events of default and (z) in the   case of any designation of an Unrestricted Subsidiary, the requirement to satisfy   a Total Net Leverage Ratio (to be defined in a manner to be agreed) to be   agreed. Unrestricted Subsidiaries will not be included in the representations   and warranties of the Loan Parties or be subject to affirmative or negative   covenants or events of default (other than certain representations,   warranties and covenants relating to the PATRIOT Act, OFAC, FCPA and other   applicable sanction, anti-money laundering, anti-bribery and anti-corruption   laws), and the cash   held by, results of operations, assets, indebtedness and interest expense of   Unrestricted Subsidiaries will not be taken into account for purposes of   determining any financial ratio or covenant contained in the Term Loan   Documents.
    
	
 
    	
 
    	
 
    
	
Joint Lead Arrangers and
    	
 
    	
 
    
	
Joint Bookrunners:
    	
 
    	
Barclays and   MLPFS, together with any Additional Commitment Party appointed as a joint   lead arranger and/or joint bookrunner for the Term Facility in accordance   with the Commitment Letter, will act as the joint lead arrangers and joint   bookrunners for the Term Facility (in such capacities, the “Arrangers”)   and will perform the duties customarily associated with such roles.
    
	
 
    	
 
    	
 
    
	
Lenders:
    	
 
    	
A syndicate of   banks, financial institutions and other entities, including the Initial   Lenders, arranged by the Arrangers in
    

 

Exhibit B-1

 

	
 
    	
 
    	
consultation   with the Borrower, but excluding Disqualified Lenders (the “Lenders”).
    
	
 
    	
 
    	
 
    
	
Administrative Agent:
    	
 
    	
Barclays will   act as sole and exclusive administrative agent for the Lenders and will   perform the duties customarily associated with such role (the “Administrative   Agent”).
    
	
 
    	
 
    	
 
    
	
Collateral Agent:
    	
 
    	
Barclays will   act as sole and exclusive collateral agent for the Lenders and will perform   the duties customarily associated with such role (the “Collateral Agent”).
    
	
 
    	
 
    	
 
    
	
Syndication Agent:
    	
 
    	
Bank of America.
    
	
 
    	
 
    	
 
    
	
Documentation Agents:
    	
 
    	
One or more   financial institutions appointed by the Borrower and the Arrangers acting   together (including any Additional Commitment Party so appointed pursuant to   the Commitment Letter).
    
	
 
    	
 
    	
 
    
	
Transactions:
    	
 
    	
As described in Exhibit A.
    
	
 
    	
 
    	
 
    
	
Term Facility:
    	
 
    	
A senior secured   tranche B term loan facility, consisting of a $2,750,000,000 U.S. Dollar   denominated term loan (the “Term Facility”).
    
	
 
    	
 
    	
 
    
	
Purpose/Use of Proceeds:
    	
 
    	
The proceeds of   the Term Facility will be used, along with proceeds of the ABL Facility, if   drawn, and cash on hand at the Company, the Target and their respective   subsidiaries to finance the cash consideration for the Transactions and for   working capital and general corporate purposes.
    
	
 
    	
 
    	
 
    
	
Closing Date:
    	
 
    	
The date of the   initial funding of the Facilities.
    
	
 
    	
 
    	
 
    
	
Term Loan Maturity Date:
    	
 
    	
The earlier of (such earlier date, the “Term Loan Maturity Date”):   (i) the date that is six years after the Closing Date and (ii) the   date that is 91 days prior to the final maturity date then in effect for the 2018 Notes (as defined in the   Commitment Letter) (as such maturity date may be extended from   time to time in accordance with the terms of the 2018 Notes); provided   that clause (ii) shall be disregarded (and the Term Loan Maturity Date   shall be the date that is six years after the Closing Date) if, as of the   date referred to in such clause (ii), the aggregate principal amount of   outstanding 2018 Notes is less than $300 million.
    
	
 
    	
 
    	
 
    
	
Availability:
    	
 
    	
One drawing may   be made under the Term Facility on the Closing Date.
    
	
 
    	
 
    	
 
    
	
Collateral:
    	
 
    	
Subject, on the   Closing Date, to the Limited Conditionality Provisions (as set forth in Section 2   of the Commitment Letter) and subject to the limitations set forth below in   this section, the obligations of the Loan Parties in respect of the Term   Facility and any Incremental Facility will be secured by substantially all   assets of the Loan Parties,
    

 

Exhibit B-2

 

	
 
    	
 
    	
wherever   located, now owned or hereafter acquired, including the following   (collectively, the “Collateral”):
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a) a   perfected second-priority security interest (subject to permitted liens) in   the ABL Priority Collateral (as defined in Exhibit C); and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(b) a   perfected first-priority security interest (subject to permitted liens) in   all assets (other than the ABL Priority Collateral), including but not   limited to: (i) machinery, equipment, furniture, fixtures, vehicles,   real property, intellectual property, general intangibles (except those   relating to accounts and inventory that constitute ABL Priority Collateral)   and documents relating to equipment, (ii) instruments and other rights   to payment (including accounts receivable), in each case, solely to the   extent relating to the sale or other disposition of Term Loan Priority   Collateral (the “Term Loan Receivables”) and any deposit account or   securities account that contain only proceeds of the sale of any Term Loan   Priority Collateral (the “Term Loan Asset Sale Proceeds Account”),   (iii) the equity interests held directly by the Borrower or any   Guarantor in any restricted subsidiary (which pledge, in the case of any   foreign subsidiary, will be limited to 100% of the non-voting equity interests   (if any) and 66% of the voting equity interests of such foreign subsidiary),   (iv) all other Collateral not constituting ABL Priority Collateral and   (v) all proceeds and products of the foregoing (collectively, the “Term   Loan Priority Collateral”).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notwithstanding   anything to the contrary, the Collateral shall exclude the following:   (A) motor vehicles and other assets subject to certificates of title (to   the extent a lien thereon cannot be perfected by filing of a UCC financing   statement); (B) pledges and security interests over assets (including in   respect of interests in partnerships, joint ventures and other non-wholly   owned entities) to the extent prohibited by law, except to the extent   such prohibition is unenforceable after giving effect to applicable   provisions of the Uniform Commercial Code, other than proceeds thereof, the   assignment of which is expressly deemed effective under the Uniform   Commercial Code notwithstanding such prohibitions; (C) all fee owned real property having a book   value less than $7.5 million (with all required mortgages being permitted to   be delivered post-closing subject to the requirements of the Limited   Conditionality Provisions) determined on the Closing Date for existing real   property and on the date of acquisition for any after acquired real property   (or the date of substantial completion of any material improvement thereon or   new construction thereof) and all real property leasehold interests;   (D) intent to use trademark or service mark applications until such time   as a statement of use is filed; (E) equity interests in any person other   than wholly owned restricted subsidiaries to the extent not permitted by the   terms of such subsidiary’s organizational or joint venture documents;   (F) any lease, license or other agreement or any property subject to a   purchase money security interest, capital lease obligation or similar   arrangements, in each case, to the extent permitted under
    

 

Exhibit B-3

 

	
 
    	
 
    	
the Term Loan   Documents and to the extent that a grant of a security interest therein would   violate or invalidate such lease, license or agreement, purchase money,   capital lease or a similar arrangement or create a right of termination in   favor of any other party thereto (other than a Loan Party), in each case,   after giving effect to the applicable anti-assignment provisions of the UCC   or other applicable law, other than proceeds and receivables thereof and   (G) (i) the Divested Properties (as defined below) and (ii) any   other real property identified in writing by the Borrower prior to the   Closing Date that is for sale on the Closing Date or that the Borrower or any   Guarantor intends to sell as part of the restructuring and integration in   connection with the Acquisition, in each case, that would otherwise not be   excluded pursuant to clause (C) above and that have not been disposed of   on or prior to 120 days after the Closing Date (in which case perfection of   the lien on such Divested Properties or such other real property shall be   provided within 180 days after the Closing Date, or such longer period as the   Administrative Agent may agree in its reasonable judgment). For the avoidance   of doubt, notwithstanding the foregoing, the Term Lenders will have a   security interest in all Collateral required under the ABL Facility, which   security interest shall be (x) senior to any lien the secured parties in   respect of the ABL Facility have in any Term Loan Priority Collateral and   (y) junior to any lien the secured parties in respect of the ABL Facility   have in any ABL Priority Collateral.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
If the Company   or any of its subsidiaries has any assets that constitute Principal   Properties or has any Principal Subsidiaries (as each such term is defined in   that certain Indenture dated as of January 15, 2009 among the Company,   as issuer, the subsidiary guarantors named therein and HSBC Bank USA,   National Association, as trustee (the “Indenture”)), then, to the   extent security is provided over such Principal Properties or over any shares   of capital stock of, or evidences of indebtedness issued by such Principal   Subsidiaries, such pledge shall be automatically limited to the maximum   amount of indebtedness permitted to be secured by such assets without   violating the terms of the Indenture and without giving rise to any   obligation to grant an equal and ratable lien on such assets to secure the   obligations under the Indenture.
    
	
 
    	
 
    	
 
    
	
Intercreditor Matters:
    	
 
    	
The exercise of certain rights and remedies with respect to the   respective security interests and liens of the Collateral Agent and the   collateral agent under the ABL Facility will be subject to an intercreditor   agreement that will   contain customary lien subordination, completion rights, collateral access   and intellectual property licensing provisions, all in form and substance   reasonably satisfactory to the Arrangers, the arrangers of the ABL Facility   and the Company (the “Intercreditor Agreement”).
    
	
 
    	
 
    	
 
    
	
Documentation:
    	
 
    	
The definitive   credit documentation for Term Facility will include, among   other items, a credit agreement, guarantees, Intercreditor Agreement and   appropriate pledge and security agreements
    

 

Exhibit B-4

 

	
 
    	
 
    	
(collectively,   the “Term Loan Documents”). The Term Loan Documents will contain the   terms set forth in this Exhibit B and, to the extent any other   terms are not expressly set forth in this Exhibit B will   (i) be negotiated in good faith within a reasonable time period to be   determined based on the expected Closing Date and taking into account the timing   of the syndication of the Term Facility and the pre-closing requirements of   the Acquisition Agreement, (ii) contain such other terms as the Borrower   and the Arrangers shall reasonably agree, (iii) give due regard to a   combination of (a) the leverage profile and projected free cash flow   generation of the Borrower and its restricted subsidiaries after giving   effect to the Transactions and (b) general trends and risks affecting   the industry and the Borrower and its restricted subsidiaries, (iv) reflect   the operational and strategic requirements of the Borrower and its restricted   subsidiaries, (v) take into account the proposed business plan and   financial model of the Borrower and (vi) be in a form such that they do   not impair the availability of the Term Facility on the Closing Date if the   conditions to funding set forth or referred to in Section 2 of the   Commitment Letter are satisfied (collectively, the “Documentation   Principles”).
    
	
 
    	
 
    	
 
    
	
Incremental Facilities:
    	
 
    	
The Term Loan   Documents shall provide for the ability of the Borrower to add one or more   incremental term facilities or increase any then existing term loan facility,   in each case under such documentation (the “Incremental Facilities”)   in minimum amounts of U.S. Dollars to be agreed and in an aggregate total   principal amount not to exceed the sum of (i) $1,000.0 million for all   such Incremental Facilities plus   (ii) additional amounts so long as the Borrower is in pro forma   compliance (after giving effect to such Incremental Facility and any customary   and appropriate pro forma adjustments for acquisitions or dispositions or   prepayment of indebtedness in connection therewith (including adjustments for   cost-savings and synergies subject to parameters to be agreed), and assuming   that any cash proceeds of any Incremental Facilities will not be netted for   the purpose of determining compliance) with a Senior Secured Net Leverage   Ratio (as defined below) that is less than or equal to 2.00 to 1.0 (the “Incremental   Leverage Test”). The Incremental Facilities will be incurred by the   Borrower and will rank pari passu in right of payment, with the same   guarantees and security as the Term Facility.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Incremental   Facilities shall not initially be effective but may be activated at any time   and from time to time during the life of the Term Facility at the request of   the Borrower with consent required only from those Lenders (including new   lenders (“Additional Lenders”) that are reasonably acceptable to the   Borrower; provided that the Administrative Agent shall have consent   rights (not to be unreasonably withheld or delayed) with respect to such   Additional Lender if (and to the extent) such consent would be required under   the heading “Assignments and Participations” for an assignment of   loans or commitments, as applicable, to such Additional Lender) that agree,   in their sole discretion, to participate in such Incremental Facility, and   the following shall be conditions to the effectiveness of any
    

 

Exhibit B-5

 

	
 
    	
 
    	
Incremental   Facility: (a) no default or event of default shall have occurred and be   continuing or would result therefrom, except in the case of an Incremental   Facility incurred to finance a permitted acquisition or other permitted   investment where no payment or bankruptcy event of default will be the   standard (except where customary “Sungard” or “certain funds” conditionality   is otherwise agreed to by the lenders providing such Incremental Facility),   (b) all representations and warranties shall be true and correct in all   material respects (except to the extent already qualified by materiality, in   which case accuracy in all respects is required) immediately prior to, and   after giving effect to, the incurrence of such Incremental Facility (except   where customary “Sungard” or “certain funds” conditionality is otherwise   agreed to by the lenders providing such Incremental Facility, in which cash   such limited conditionality shall apply), (c) the maturity date of any   such Incremental Facility shall be no earlier than the latest term loan   maturity date then in effect, (d) the weighted average life to maturity   of any Incremental Facility shall be no shorter than the weighted average   life to maturity of the Term Facility, and (e) the interest margins for   the Incremental Facility shall be determined by the Borrower and the lenders   of the Incremental Facility, provided that in the event that the   all-in yield for any Incremental Facility raised within twelve (12) months of   the Closing Date is greater than the all-in yield for the Term Facility by   more than 50 basis points (the “Yield Differential”), then the   Applicable Margin for the Term Facility shall be increased to the extent   necessary so that the all-in yield for such Incremental Facility is not more   than 50 basis points higher than the all-in yield for the Term Facility, provided   that, to the extent such terms and documentation are not identical to the   Term Facility (except to the extent permitted by clause (c), (d) or   (e) above or except for such terms applicable only to periods after the   latest term loan maturity date then in effect), they shall be reasonably   satisfactory to the Administrative Agent. For purposes of determining the   all-in yield applicable to the Incremental Facility and the Yield   Differential, (i) OID or upfront fees (which shall be deemed to   constitute like amounts of OID) payable by the Borrower for the account of   the Lenders with respect to the Term Facility or the Incremental Facility in   the primary syndication thereof shall be included (with OID being equated to   interest based on an assumed four-year life to maturity), (ii) customary   arrangement or similar fees payable to the Arrangers (or their respective   affiliates) in connection with the Term Facility or to one or more arrangers   (or their affiliates) of the Incremental Facility shall be excluded, and   (iii) if any LIBOR or any ABR floor for the Incremental Facility is   greater than the LIBOR or ABR floor, respectively, for the Term Facility, the   difference between such floor for the Incremental Facility and the Term   Facility shall be equated to an increase in the Applicable Margin (it being   agreed that any increase in interest margins to any existing facility   required due to the application of a LIBOR or ABR floor on any Incremental   Facility shall be effected solely through an increase in (or implementation   of, as applicable) any LIBOR or ABR floor (as the case may be) applicable to   such Term Facility).
    

 

Exhibit B-6

 

	
 
    	
 
    	
“Senior   Secured Net Leverage Ratio” means, as of any date of determination, the   ratio of (a)(i) Total Secured Indebtedness (as defined below) as of such   date, less (ii) all unrestricted cash and cash equivalents of the   Borrower and its restricted subsidiaries up to a cap of $250 million to (b) Consolidated   EBITDA (to be defined in a manner to be agreed) of the Borrower and its   restricted subsidiaries for the most recently ended four-fiscal quarter   period for which financial statements are available.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Total   Secured Indebtedness” means, as of any date of determination, the   outstanding principal amount of funded secured indebtedness for borrowed   money, purchase money indebtedness and the principal portion of capital   leases, determined on a consolidated basis, of the Borrower and its restricted   subsidiaries; provided that when calculating Total Secured   Indebtedness under the ABL Facility such amount shall be deemed to be the   average daily amount drawn on the ABL Facility over the immediately preceding   four quarter period.
    
	
 
    	
 
    	
 
    
	
Refinancing Facilities:
    	
 
    	
The Term Loan   Documents shall provide for the ability of the Borrower to refinance loans   under the Term Facility or under any Incremental Facility with one or more   new term facilities (each, a “Refinancing Term Facility”) under such   documentation with the consent of the Borrower and the institutions providing   such Refinancing Term Facility or with one or more additional series of   senior unsecured notes or loans or senior secured notes or loans incurred by   the Borrower that will be secured by liens on the Collateral ranking on an   equal priority basis (but without regard to the control of remedies) with the   liens on the Collateral securing the Term Facility (such notes or loans, “Refinancing   Notes” and, together with the Refinancing Term Facility, the “Refinancing   Indebtedness”) subject to customary limitations.
    
	
 
    	
 
    	
 
    
	
Amortization:
    	
 
    	
Commencing with   the last day of the first full calendar quarter following the Closing Date,   the Term Facility will amortize in equal quarterly installments in aggregate   annual amounts equal to 5% of the original principal amount of the Term   Facility, with the remaining balance, together with all other amounts owed   with respect thereto, payable on the Term Loan Maturity Date.
    
	
 
    	
 
    	
 
    
	
Interest:
    	
 
    	
All amounts   outstanding under the Term Facility will bear interest, at the Borrower’s   option, at a rate per annum   equal to:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a)    the   Base Rate plus the Applicable Margin per annum; or
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
(b)    the   Adjusted LIBOR Rate plus the Applicable Margin per annum;
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
provided, however, that at no time will   the Base Rate be deemed to be less than 1.75% per annum   or the Adjusted LIBOR Rate be deemed to be less than 0.75% per annum.
    

 

Exhibit B-7

 

	
 
    	
 
    	
The “Applicable   Margin” shall mean, (i) with respect to Base Rate Loans, 2.75% and   (ii) with respect to LIBOR Loans, 3.75%.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Base Rate”   and “Adjusted LIBOR Rate” shall be defined in a manner customary for   transactions of this kind.
    
	
 
    	
 
    	
 
    
	
Default Interest:
    	
 
    	
Upon and during   the continuance of any payment or bankruptcy event of default, and solely   with respect to any overdue amounts, the applicable interest rate plus 2.00%   per annum.
    
	
 
    	
 
    	
 
    
	
Voluntary Prepayments:
    	
 
    	
Voluntary   prepayments of borrowings under the Term Facility will be permitted at any   time, in minimum principal amounts to be agreed upon, without premium or   penalty (subject to the premium described in the next two sentences), subject   to reimbursement of the Lenders’ redeployment costs in the case of a   prepayment of Adjusted LIBOR loans other than on the last day of the relevant   interest period. In the event that, within six (6) months of the Closing   Date, the Term Facility is refinanced, repaid or repriced in connection with   a Repricing Event (as defined below), such prepayment, refinancing or   repricing shall be made at 101% of the principal amount prepaid, refinanced   or repriced. “Repricing Event” means (i) any prepayment or   re-payment of the Term Loans, in whole or in part, with the proceeds of, or   conversion of such Term Loans into, any new or replacement tranche of   syndicated bank financings bearing interest with an “effective yield” (taking   into account, for example, upfront fees, interest rate spreads, interest rate   benchmark floors and OID, but excluding the effect of any arrangement,   structuring, syndication or other fees payable in connection therewith that   are not shared with all lenders or holders of such new or replacement loans)   less than the “effective yield” applicable to the Term Loans (as such   comparative yields are determined in the reasonable judgment of the   Administrative Agent consistent with generally accepted financial practices)   and (ii) any amendment to the Term Loans which reduces the “effective   yield” applicable to the Term Loans (and any assignment pursuant to the   “yank-a-bank” provisions in connection therewith), in the case of each of   clauses (i) and (ii), solely to the extent the primary purpose of such   replacement or amendment, as reasonably determined by the Borrower in good   faith, is to reduce the “effective yield” on the Term Loans. Notwithstanding   the foregoing, no such fee shall be payable if such Repricing Event relates   to new or replacement loans incurred in connection with a change of control.   All voluntary prepayments under the Term Facility shall be applied to the   remaining amortization payments thereunder as directed by the Borrower and as   between the Term Facility and any Incremental Facility, as directed by the   Borrower.
    
	
 
    	
 
    	
 
    
	
Mandatory Prepayments:
    	
 
    	
Loans under the   Term Facility shall be prepaid with:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a) 50%   (stepping down to 25% if the Senior Secured Net Leverage Ratio is less than   or equal 1.50 to 1.00 and to 0% if the Senior Secured Net Leverage Ratio is   less than or equal to 1.00 to 1.00) of the
    

 

Exhibit B-8

 

	
 
    	
 
    	
Borrower’s   annual excess cash flow (to be defined as mutually agreed, but in any event   to provide for a deduction from excess cash flow, without duplication among   periods, of operating cash flow used to make acquisitions, make permitted   investments (other than intercompany investments, cash equivalents, money   market instruments and certain other limited exceptions), make certain   distributions and dividends (in any event, such deduction not to include   those made under the Available Amount Basket, the Free and Clear Basket or   the general basket), or make capital expenditures, or to be used within the   succeeding twelve months to fund acquisition obligations for which binding   agreements exist or to make capital expenditures (in each case subject to   reversal of such deduction if such amount is not actually expended within   such twelve-month period)) commencing with the end of the fiscal year ending   on or around January 28, 2017 (with such fiscal year to be calculated on   a “stub year” basis only for the full fiscal quarters of the Borrower to   occur after the Closing Date); provided that voluntary prepayments of   Term Loans shall reduce excess cash flow payments on a dollar-for-dollar   basis (except to the extent made with the proceeds of long-term indebtedness   or non-ordinary course disposition of property);
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(b) to the   extent that the net cash proceeds of non-ordinary course asset sales or other   dispositions of property (including condemnation and insurance proceeds) by   the Borrower or any of its restricted subsidiaries exceeds, in the aggregate,   an amount to be agreed in any fiscal year, 100% of such excess net cash   proceeds in excess of such aggregate amount to be agreed of all non-ordinary   course asset sales or other dispositions of property by the Borrower or its   restricted subsidiaries (including, without limitation, insurance and   condemnation proceeds), subject to exceptions to be agreed upon and customary   reinvestment rights if reinvested within twelve (12) months of such sale or   disposition (or committed to be reinvested within such twelve (12) month   period and reinvested within six (6) months thereafter); provided   that the Borrower shall prepay the loans under the Term Facility and the ABL   Facility (without a permanent reduction of the ABL Facility commitments) on a   pro rata basis with 100% of the net   proceeds received after the Closing Date from any and all Divested Properties   in excess of $15 million in the aggregate in any calendar year (except that,   in any event, the application of such proceeds shall be reallocated as   between the Term Facility and the ABL Facility to the extent required to   maintain Excess Availability (as defined in Exhibit C) of not   less than $1,000 million after giving effect to such sale of Divested   Properties and such repayments); provided, further, that if,   after giving pro forma effect to any sale of Divested Properties, the Senior   Secured Net Leverage Ratio is less than or equal to 2.00 to 1.00, the   proceeds of such Divested Properties shall be permitted to be reinvested as   provided above.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(c) 100% of   the net cash proceeds of debt issued by the Borrower or its restricted   subsidiaries (other than debt permitted under the Term Loan Documents, except   for any Refinancing Indebtedness, the net
    

 

Exhibit B-9

 

	
 
    	
 
    	
cash proceeds of   which, for the avoidance of doubt, will be applied as a mandatory prepayment   to the class of loans being refinanced).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notwithstanding the foregoing, to the extent that the Borrower has   determined in good faith that repatriation of any portion of excess cash flow   or the net proceeds of any asset sale by a non-U.S. restricted subsidiary   would have an adverse tax cost   consequence (taking into account any foreign tax credit or benefit received   in connection with such repatriation) or is not permitted by applicable law,   then, to the extent that such adverse tax cost consequence or legal   limitation is not directly attributable to actions taken by the Borrower or   any of its subsidiaries with the intent of avoiding or reducing any mandatory   prepayment otherwise required, the Borrower shall not be required to make a   prepayment with such portion of excess cash flow or such net proceeds as   provided above.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The above   described mandatory prepayments shall be applied first, in direct order to   the next eight (8) scheduled quarterly amortization and, second, pro rata to the remaining scheduled amortization payments   and, other than with respect to mandatory prepayments in respect of any   Refinancing Indebtedness, pro rata   among the classes of loans; provided that any mandatory prepayment   with the proceeds of Divested Properties shall be applied pro rata to reduce all remaining scheduled amortization   payments, pro rata among the classes of loans.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Any Lender may   elect not to accept any mandatory prepayment (each a “Declining Lender”).   Any prepayment amount declined by a Declining Lender may be retained by the   Borrower and any such retained amounts will not thereafter be counted as   excess cash flow or net cash proceeds (as described above) in any subsequent   measurement period.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Divested   Properties” means the businesses, services or assets required to be   divested, transferred or otherwise sold by the Company or the Target in   connection with the Acquisition in accordance with the Acquisition Agreement.
    
	
 
    	
 
    	
 
    
	
Conditions Precedent to
    	
 
    	
 
    
	
Effectiveness and Borrowings
    	
 
    	
 
    
	
On the Closing Date:
    	
 
    	
The several   obligations of the Lenders to make, or cause one of their respective   affiliates to make, loans under the Term Facility on the Closing Date will be   subject to only the following conditions: (i) prior written notice of   borrowing and (ii) the conditions set forth or referred to in Section 2   of the Commitment Letter (including those specified in Exhibit D   thereto).
    
	
 
    	
 
    	
 
    
	
Representations and
    	
 
    	
 
    
	
Warranties:
    	
 
    	
Limited to the following, defined in a manner usual and customary for   facilities and transactions of this type in accordance with the Documentation   Principles, subject to customary material adverse effect and materiality   qualifiers, exceptions and baskets to be mutually
    

 

Exhibit B-10

 

	
 
    	
 
    	
agreed (applicable to the Company and its restricted subsidiaries   (and with respect to the PATRIOT Act, OFAC, FCPA and other applicable   sanction, anti-money laundering, anti-bribery and anti-corruption laws   representations, its unrestricted subsidiaries) and, in the case of the   Target and its subsidiaries, giving due regard to matters disclosed in the   Acquisition Agreement): corporate status; good standing; power and authority;   due authorization, execution and delivery; legal, valid and binding   documentation; no material consents; no material adverse change; litigation   and investigations; use of proceeds; no violation of, or conflicts with,   material agreements or instruments; compliance with organizational documents,   laws and regulations (including margin regulations); payment of taxes;   ownership of subsidiaries and properties; accuracy of financial statements   (including pro forma financial statements); accuracy of disclosure;   insurance; absence of undisclosed liabilities; intellectual property;   inapplicability of the Investment Company Act; consolidated Closing Date   solvency after giving effect to the Transactions; labor matters; regulatory   matters; PATRIOT Act, OFAC, FCPA and other applicable sanction, anti-money   laundering, anti-bribery and anti-corruption laws; validity, priority and   perfection of security interests in the Collateral; environmental matters,   employment matters and employee benefit matters; no default; in each case   subject, on the Closing Date, to the Limited Conditionality Provisions.
    
	
 
    	
 
    	
 
    
	
Affirmative Covenants:
    	
 
    	
Limited to the following, defined in a   manner usual and customary for facilities and transactions of this type in   accordance with the Documentation Principles, subject to customary materiality qualifiers, exceptions and baskets   to be mutually agreed (to be applicable to the Company and its restricted   subsidiaries and, with respect to the PATRIOT Act, OFAC, FCPA and other   applicable sanction, anti-money laundering, anti-bribery and anti-corruption   laws, its unrestricted subsidiaries): maintenance of corporate existence and   rights; performance of obligations; delivery of consolidated financial   statements for the Company and its subsidiaries (including quarterly   financial statements and audited annual financial statements (and annual audit opinions from nationally   recognized auditors that are not subject to any qualification as to “going   concern” or scope of the audit)), related certificates, annual budget and   other financial and operational information, including a quarterly MD&A,   and including information required under the PATRIOT Act; delivery of notices   of default, materially adverse litigation, ERISA events, material adverse   change and other material events; maintenance of properties in good working   order; maintenance of customary insurance; compliance with laws and   regulations; environmental matters; inspection of books and properties;   casualty and condemnation; additional loan parties and other further   assurances; payment of taxes; maintenance of necessary consents, approvals,   licenses and permits; compliance with the PATRIOT Act, OFAC, FCPA and other   applicable sanction, anti-money laundering, anti-bribery and anti-corruption   laws; commercially reasonable efforts to maintain public corporate credit and   facility ratings (but not specific ratings); and post-closing
    

 

Exhibit B-11

 

	
 
    	
 
    	
covenant to provide first priority   perfected security interests (subject to the terms of the Intercreditor   Agreement).
    
	
 
    	
 
    	
 
    
	
Negative Covenants:
    	
 
    	
Limited to the following, defined   in a manner usual and customary for   facilities and transactions of this type in accordance with the Documentation   Principles, subject to customary materiality qualifiers, exceptions   and baskets to be agreed (to be applicable to the Company and its   restricted subsidiaries): limitations on dividends and distributions on, and   redemptions and repurchases of, equity interests and other restricted   payments (which   shall permit, among other things, (i) dividends, distributions or   redemptions with the Available Amount Basket as set forth below,   (ii) dividends, distributions or redemptions in connection with the   Transactions (in accordance with the Acquisition Agreement), (iii) if no   event of default exists when declared, quarterly dividends by the Company in   an amount up to $0.15 per share and (iv) additional dividends, distributions   or redemptions when the Free and Clear RP Basket (as defined below)   conditions are satisfied);   limitations on prepayments, redemptions and repurchases of junior lien, subordinated or unsecured   debt (which shall permit, among other things,   (i) prepayments,   redemptions and repurchases with the Available Amount Basket as set forth   below, (ii) unlimited prepayments, redemptions and repurchases when the   Free and Clear RP Basket conditions are satisfied and (iii) any   refinancing of such junior lien, subordinated or unsecured debt with the   proceeds of Permitted Refinancing Indebtedness (to be defined in a manner to   be agreed)); limitations on   amendments to organizational documents and documentation relating to certain   material indebtedness; limitations on liens (which shall permit, among other   things, liens securing (i) the ABL Facility, (ii) any Refinancing   Indebtedness, and (iii) debt assumed in connection with a Permitted   Acquisition or similar investment or other permitted acquisition of an entity   that becomes a restricted subsidiary (provided that, in the case of this   clause (iii), such liens extend only to the same assets that such liens   extended to, and secure the same indebtedness that such liens secured,   immediately prior to such assumption and were not created in contemplation   thereof)); negative pledge with respect to U.S. owned real property not   constituting Collateral; limitations on investments (which shall permit, among other   things, (i) intercompany investments (subject to limitations to be   agreed regarding investments by Loan Parties in non-Loan Parties),   (ii) acquisitions on the terms set forth below regarding Permitted   Acquisitions, (iii) investments with the Available Amount Basket as set   forth below, (iv) certain investments in joint ventures to be agreed and   (v) the Acquisition and investments in connection with the Transactions); limitations on debt and issuance of preferred   stock (which shall permit, among other things, (i) the ABL Facility and   any refinancing thereof in whole or in part, (ii) any Refinancing   Indebtedness, (iii) certain debt existing as of the Closing Date   (including the 2018 Notes, the 2023 Notes (as defined in the Commitment Letter), the Target’s 5% debentures due 2030, the   Target’s 7.35% debentures, the Target’s receivables securitization program in   France, certain capital leases and certain revenue bonds),
    

 

Exhibit B-12

 

	
 
    	
 
    	
(iv) indebtedness incurred and/or   assumed in connection with a Permitted Acquisition, similar investment or   other permitted acquisition of an entity that becomes a restricted subsidiary   on the terms set forth below regarding debt assumed or incurred in connection   with a Permitted Acquisition, (v) purchase money debt and capital leases   in an amount to be mutually agreed, (vi) certain indebtedness of foreign   subsidiaries to be mutually agreed (but no less than $300 million in the   aggregate at any one time outstanding) and (vii) additional unsecured   debt in an amount to be mutually agreed); limitations on mergers and asset   sales (which shall permit, among other things, intercompany transfers among   the Borrower and its restricted subsidiaries (subject to limitations to be   agreed regarding transfers from Loan Parties to non-Loan Parties));   limitations on sale leaseback transactions, with exceptions to be agreed;   limitations on transactions with affiliates; limitations on changes in   business; limitations on negative pledge clauses; limitations on swap   agreements; limitations on change of fiscal quarter, fiscal year and other   accounting changes (except in connection with the integration of the Target   and its subsidiaries following the Acquisition); and limitations on   restrictions on ability of subsidiaries to pay dividends or make   distributions (with exclusions to be agreed, including with respect to   restrictions included in agreements governing debt of non-U.S. restricted   subsidiaries).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Borrower and   its restricted subsidiaries will be permitted to make acquisitions of persons   that become restricted subsidiaries or of assets (including assets   constituting a business unit, line of business or division) (each, a “Permitted   Acquisition”) and incur or assume indebtedness in connection therewith   subject to: (a) pro forma compliance, after giving effect to any such   transaction, with either (i) a Total Net Leverage Ratio that is less   than or equal to the Total Net Leverage Ratio on the Closing Date or   (ii) a Total Net Leverage Ratio that is no greater than the Total Net   Leverage Ratio immediately prior to giving effect to any such acquisition;   (b) no event of default shall have occurred and be continuing or would   result therefrom; (c) the acquired entity or business is in the same   line of business or carries on, or is, a business complementary to that   carried on by the Borrower and its restricted subsidiaries; (d) the Loan   Parties comply with the applicable covenants to provide Collateral and   guarantees; and (e) acquisitions of entities that do not become   Guarantors (or of assets that do not become Collateral) will be subject to   the applicable limitations on investments in non-Guarantor subsidiaries to be   mutually agreed.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Borrower or   any restricted subsidiary will be permitted to make non-ordinary course of   business asset sales or dispositions without limit so long as (a) such   sales or dispositions are for fair market value, (b) at least 75% of the   consideration for asset sales and dispositions shall consist of cash or cash   equivalents, subject to customary terms and limitations and (c) such   asset sale or disposition is subject to the terms set forth in the section   entitled “Mandatory Prepayments”
    

 

Exhibit B-13

 

	
 
    	
 
    	
hereof, if   applicable, and subject to other customary terms and conditions to be agreed.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
In addition, the   negative covenants shall include:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(1) an   Available Amount Basket based on (i) $150 million, plus   (ii) the retained portion of excess cash flow (i.e., the portion not   required to be applied to prepay the Term Loans under the excess cash flow   sweep), plus (iii) permitted equity   proceeds, which may be used (without duplication) for restricted payments,   investments and the prepayment or redemption of junior lien, subordinated or   unsecured debt; provided that the Available Amount Basket may only be   used in connection with restricted payments and payments or redemptions of   junior lien, subordinated or unsecured indebtedness so long as (x) the   Borrower is in pro forma compliance with a Senior Secured Net Leverage Ratio   of not greater than 2.00 to 1.00 and (y) no event of default have   occurred and be continuing or would result therefrom; and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(2) an   additional basket to make restricted payments and payments or redemptions of   junior lien, subordinated or unsecured indebtedness so long as (x) the   Borrower is in pro forma compliance with a Senior Secured Net Leverage Ratio   of not greater than 1.50 to 1.00 and (y) no event of default shall have   occurred and be continuing or would result therefrom (the “Free and Clear   RP Basket”).
    
	
 
    	
 
    	
 
    
	
Financial Covenant:
    	
 
    	
None.
    
	
 
    	
 
    	
 
    
	
Limited Conditionality
    	
 
    	
 
    
	
Acquisition
    	
 
    	
For purposes of   (i) determining compliance with any provision of the Term Loan Documents   that requires the calculation of a financial ratio, (ii) determining   compliance with representations, warranties, defaults or events of default or   (iii) testing availability under baskets set forth in the Term Loan   Documents, in each case, in connection with an acquisition by one or more of   Borrower and its restricted subsidiaries of any assets, business or person   permitted to be acquired under the Term Loan Documents, in each case whose   consummation is not expressly conditioned on the availability of, or on   obtaining, third party financing (any such acquisition, a “Limited   Condition Acquisition”), at the option of the Borrower (Borrower’s   election to exercise such option in connection with any   Limited Condition Acquisition, an “LCA Election”), the date of   determination of whether any such action is permitted shall be deemed to be   the date the definitive agreements for such Limited Condition Acquisition are   entered into (the “LCA Test Date”), and if, after giving pro forma   effect to the Limited Condition Acquisition and the other transactions to be   entered into in connection therewith as if they had occurred at the beginning   of the most recent test period ending prior to the LCA Test Date, the   Borrower could have taken such action on the relevant LCA Test Date in   compliance with such financial ratio or basket, representation, warranty,   default or event of default, such financial
    

 

Exhibit B-14

 

	
 
    	
 
    	
ratio or basket,   representation, warranty, default or event of default shall be deemed to have   been complied with.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
For the   avoidance of doubt, if the Borrower has made an LCA Election and any of the   financial ratios or baskets for which compliance was determined or tested as   of the LCA Test Date are exceeded as a result of fluctuations in any such   financial ratio or basket (including due to fluctuations of the target of any   Limited Condition Acquisition) solely as a result of fluctuations in Consolidated   EBITDA (as opposed to any incurrence, disposition or restricted payment) at   or prior to the consummation of the relevant transaction or action, such   baskets or financial ratios will not be deemed to have been exceeded as a   result of such fluctuations.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
If the Borrower   has made an LCA Election for any Limited Condition Acquisition, then in   connection with any subsequent calculation of any financial ratio or basket   availability on or following such date of the execution of the definitive   agreement and prior to the earlier of the date on which such acquisition is   consummated or such definitive agreement is terminated or expires without   consummation of such acquisition, any such financial ratio or basket shall be   calculated (and tested) on a pro forma basis assuming that such Limited   Condition Acquisition has been consummated and also calculated (and tested)   on a pro forma basis assuming that such Limited Condition Acquisition has not   been consummated, except that (other than solely with respect to the   determinations described in the first paragraph under the heading “Limited   Condition Acquisition”) Consolidated EBITDA (except to the extent calculating   any financial ratio that is required by this provision to be calculated on a   pro forma basis), assets and consolidated net income of any target of such   Limited Condition Acquisition can only be used in the determination of the   relevant ratios and baskets if and when such acquisition has closed.
    
	
 
    	
 
    	
 
    
	
Events   of Default:
    	
 
    	
Limited to the following (relating to the Company and its restricted   subsidiaries and, solely with respect to any breach of a representation,   warranty or covenant applicable to   unrestricted subsidiaries, unrestricted subsidiaries), defined in a   manner that is usual and customary for facilities and transactions of this   type in accordance with the Documentation Principles and subject to, where   appropriate, materiality qualifiers and grace periods to be mutually agreed   upon: nonpayment of principal, interest or other amounts; violation of covenants;   incorrectness of representations and warranties in any material respect (or   in any respect with respect to any representations and warranties already   qualified by materiality); cross-default and cross-acceleration to   indebtedness in a principal amount exceeding $75 million; bankruptcy and   other insolvency-related defaults; material unsatisfied judgments (subject to   a threshold of $75 million in the case of monetary judgments); actual or   asserted invalidity of guarantees, security documents or other Term Loan   Documents; loss of lien priority; ERISA events; and change of control (to be   defined in a manner to be agreed). While the accuracy of any representation   and
    

 

Exhibit B-15

 

	
 
    	
 
    	
warranty other than as set forth or referred to in Section 2 of   the Commitment Letter is not a condition precedent to the availability of the   Facilities on the Closing Date, all other representations and warranties   shall be made on the Closing Date.
    
	
 
    	
 
    	
 
    
	
Assignments   and
    	
 
    	
 
    
	
Participations:
    	
 
    	
From and after   the Closing Date, each Lender may assign all or, subject to   minimum amounts to be agreed, a portion of its loans and commitments under   the Term Facility. Assignments will require payment of an administrative fee   to the Administrative Agent and the consents of the Administrative Agent and   the Company, which consents shall not be unreasonably withheld or delayed (and, in the case of the Company, will   deemed to be given if no response is received within 10 business days of the   date of the request); provided that (i) no consents   shall be required for an assignment to an existing Lender or an affiliate or   approved fund of an existing Lender, (ii) no consent of the Company   shall be required when a payment or bankruptcy event of default is continuing   and (iii) no consent of the Company shall be required when such assignment after the Closing Date   is by the Arrangers during primary syndication of the Term Facility pursuant   to a pre-approved syndication strategy. Each assignment   (except to other Lenders or their affiliates or approved funds) will be in a   minimum amount of $1.0 million.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
In addition, each Lender may sell participations in all or a portion   of its loans and commitments under the Term Facility; provided that no   purchaser of a participation shall have the right to exercise or to cause the   selling Lender to exercise voting rights in respect of the Term Facility,   except with respect to: (w) increases in commitments of such   participant; (x) reductions or forgiveness of principal, interest,   premium or fees payable to such participant; (y) extensions of the Term   Loan Maturity Date or the date for payment of any amortization, interest or   fees on the loans or commitments in which such participant participates; and   (z) releases of all or substantially all of the value of the guarantees,   or all or substantially all of the Term Loan Priority Collateral.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
In addition,   subject to the provisions below, non-pro rata payments will be permitted in   connection with loan buy-back or similar programs on terms to be mutually   agreed.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Term Loan   Documents shall provide that (a) Term Loans may be purchased and   assigned on a non-pro rata basis through (i) open market purchases   and/or (ii) Dutch auction or similar procedures to be agreed that are   offered to all Lenders on a pro rata basis in accordance with customary   procedures to be agreed and, in each case, subject to customary restrictions   to be agreed and (b) the Borrower and its subsidiaries shall be eligible   assignees of Term Loans; provided that (i) any such Term Loans   acquired by the Borrower or any of its subsidiaries shall be cancelled (and   be deemed automatically cancelled) promptly upon acquisition thereof,   (ii) no loan purchases
    

 

Exhibit B-16

 

	
 
    	
 
    	
shall be   permitted by the Borrower or any of its subsidiaries if a default or event of   default has occurred and is continuing, (iii) all parties to the   relevant transactions shall render customary “big boy” disclaimer letters and   the Borrower (or such subsidiary, as applicable) shall have executed and   delivered to the Administrative Agent an Affiliated Lender assignment and   assumption agreement and (iv) no proceeds from any ABL Loan (as defined   in Exhibit C) shall be used to fund such purchases.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
No assignments   or participations may be made to Disqualified Lenders and any assignment or   participation made in violation of such requirement shall be voidable upon   request by the Borrower (unless such Disqualified Lender no longer holds such   assignment or participation and the holder thereof would otherwise be an   eligible assignee). The Administrative Agent shall have the right to   (a) post the list of Disqualified Lenders provided by the Borrower and   any updates thereto from time to time (collectively, the “DQ List”) on   IntraLinks, SyndTrak Online or similar electronic means (the “Platform”),   including that portion of the Platform that is designated for “public side”   Lenders and/or (b) provide the DQ List to each Lender requesting the   same. The Administrative Agent shall not be responsible or have any liability   for, or have any duty to ascertain, inquire into, monitor or enforce,   compliance with the provisions of the Term Loan Documents relating to   Disqualified Lenders.
    
	
 
    	
 
    	
 
    
	
Expenses and Indemnification:
    	
 
    	
The Borrower   shall pay (a) (i) all reasonable and documented or invoiced   out-of-pocket expenses of the Administrative Agent, the Collateral Agent and   each Arranger associated with the syndication of the Term Facility and the   preparation, execution, delivery and administration of the Term Loan   Documents and (ii) all reasonable and documented or invoiced   out-of-pocket expenses of the Administrative Agent, the Collateral Agent and   each Arranger associated with and any amendment or waiver with respect to the   Term Loan Documents (including, without limitation, the reasonable and   documented fees, disbursements and other charges of counsel identified   herein, one local counsel in each relevant material jurisdiction and, solely   in the case of an actual or perceived conflict of interest, one additional   counsel in each applicable material jurisdiction) and (b) all reasonable   and documented or invoiced out-of-pocket expenses of the Administrative   Agent, the Collateral Agent, each Arranger and the Lenders (including,   without limitation, the reasonable and documented fees, disbursements and   other charges of counsel) in connection with the enforcement of the Term Loan   Documents.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Loan Parties   will indemnify the Administrative Agent, the Collateral Agent, each Arranger,   and the Lenders and their respective affiliates, successors and assigns and   the officers, directors, employees, affiliates, agents, advisors, controlling   persons and members of each of the foregoing, and hold them harmless from and
    

 

Exhibit B-17

 

	
 
    	
 
    	
against all   costs, expenses (including, without limitation, reasonable and documented   fees, disbursements and other charges of counsel), losses, claims, damages   and liabilities of any such Indemnified Person arising out of, or relating to   any claim or any litigation or other proceedings (regardless of whether any   such Indemnified Person is a party thereto or whether such claim, litigation,   or other proceeding is brought by a third party or by the Borrower or any of   its affiliates, creditors or shareholders) that relate to the Transactions; provided   that no Indemnified Person will be indemnified for its gross negligence,   material breach of its funding obligations under the Term Facility, bad faith   or willful misconduct as determined by a court of competent jurisdiction in a   final non-appealable decision or for any dispute that is solely among   Indemnified Persons and does not arise from any act or omission by the   Borrower or any of its affiliates (other than a dispute involving claims   against the Administrative Agent or Collateral Agent in its capacity as   such); provided, further that no Indemnified Person or the Borrower   shall be liable for any indirect, special, punitive or consequential damages   (other than in respect of any such damages incurred or paid by an Indemnified   Person to a third party).
    
	
 
    	
 
    	
 
    
	
Yield   Protection and
    	
 
    	
 
    
	
Increased   Costs:
    	
 
    	
Usual for   facilities and transactions of this type, including customary tax gross-up   provisions (including customary provisions relating to the implementation of   regulations related to Basel III and Dodd-Frank regardless of the date   enacted); provided that any U.S. federal withholding taxes imposed on   any Lender under current Sections 1471 through 1474 of the U.S. Internal   Revenue Code (or any amended or successor version that is substantively   comparable and not materially more onerous to comply with) shall be solely   for the account and expense of such Lenders.
    
	
 
    	
 
    	
 
    
	
Voting:
    	
 
    	
Amendments and   waivers of the Term Loan Documents will require the approval of Lenders (the   “Required Lenders”) holding more than 50.0% of the aggregate amount of   loans and commitments under the Term Facility and under any Incremental   Facilities, except that: (a) the consent of each Lender directly and   adversely affected thereby shall be required with respect to   (i) increases in or extensions of commitments of such Lender,   (ii) reductions or forgiveness of principal, interest (other than   default interest), premium or fees payable to such Lender,   (iii) reductions in the amount of, or extensions of scheduled   amortization or final maturity or the date for payment to such Lender of any   interest, premium or fee, and (iv) changes that impose any additional   restrictions on such Lender’s ability to assign any of its rights or   obligations; (b) the consent of 100% of the Lenders will be required   with respect to (i) modifications to voting requirements or percentages,   (ii) modification to certain provisions requiring the pro rata treatment   of lenders, and (iii) releases of liens on all or substantially all of   the Term Loan Priority Collateral or all or substantially all of the value of   the Guarantees (other than in connection with any sale of Collateral or of   the relevant Guarantor permitted by the Term Loan Documents); and   (c) the consent of the
    

 

Exhibit B-18

 

	
 
    	
 
    	
Administrative   Agent or the Collateral Agent will be required to amend, modify or otherwise   affect the rights and duties of the Administrative Agent or the Collateral   Agent, as applicable. Notwithstanding the foregoing, amendments and waivers   of the Term Loan Documents that affect solely the Lenders under the Term   Facility or any Incremental Facility will require only the consent of Lenders   holding more than 50% of the aggregate commitments or loans, as applicable,   under such Term Facility or Incremental Facility.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Term Loan   Documents shall contain customary provisions for replacing non-consenting   Lenders in connection with amendments and waivers requiring the consent of   all relevant Lenders or of all relevant Lenders directly affected thereby so   long as the Required Lenders have consented thereto.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
In addition, if   the Administrative Agent and the Borrower shall have jointly identified an obvious   error or any error or omission of a technical nature in the Term Loan   Documents, then the Administrative Agent and the Borrower shall be permitted   to amend such provision without any further action or consent of any other   party if the same is not objected to in writing by the Required Lenders to   the Administrative Agent within five (5) business days following receipt   of notice thereof.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Term Loan   Documents shall contain “amend and extend” provisions pursuant to which   individual Lenders may agree to extend the maturity date of their outstanding   loans (which may include, among other things, an increase in the interest   rates payable with respect of such extended loans, with such extensions not   subject to any “default stoppers”, financial tests or “most favored nation”   pricing provision, upon the request of the Borrower and without the consent   of any other Lender (it is understood that (i) no existing Lender will   have any obligation to commit to any such extension and (ii) each Lender   under the class being extended shall have the opportunity to participate in   such extension on the same terms and conditions as each other Lender under   such class).
    
	
 
    	
 
    	
 
    
	
Replacement of Lenders:
    	
 
    	
The Term Loan Documents shall contain customary provisions for   replacing, through an assignment at par or through repayment at par (or, in   the case of a non-consenting Lender in connection with a Repricing Event   occurring within 6 months of the Closing Date, at 101% of the principal   amount so assigned or repaid): (i) non-consenting Lenders in connection   with amendments and waivers requiring the consent of all Lenders or of all   Lenders directly and adversely affected thereby so long as the Required   Lenders shall have consented thereto and (ii) Lenders invoking yield   protection provisions.
    
	
 
    	
 
    	
 
    
	
Governing   Law and
    	
 
    	
 
    
	
Forum:
    	
 
    	
New York.
    

 

Exhibit B-19

 

	
Counsel to the Arrangers,   Administrative Agent and the Collateral Agent:
    	
 
    	
Latham &   Watkins LLP.
    

 

Exhibit B-20

 

Exhibit C

 

Project Warrior
 Summary of Terms and Conditions of the ABL Facility

 

Capitalized terms used but not defined herein have the meanings assigned to such terms as set forth in the Commitment Letter (including Exhibits A, B and D thereto) to which this Exhibit C is attached.

 

	
Borrowers:
    	
 
    	
The Company,   Merger Sub (to be succeeded by Target immediately upon consummation of the   Acquisition) and certain direct and indirect U.S. operating subsidiaries of   the Company with assets to be included in the Borrowing Base (individually, a   “Borrower” and, collectively, the “Borrowers”).
    
	
 
    	
 
    	
 
    
	
Guarantors:
    	
 
    	
All obligations   of the Borrowers under the ABL Facility (including any Additional ABL   Commitments (as defined below)) will be unconditionally guaranteed by the   Borrowers (except as to their respective primary obligations) and each   existing and each subsequently acquired or organized direct or indirect   wholly-owned U.S. restricted subsidiary of the Company (individually, a “Guarantor”   and, collectively, the “Guarantors”), subject to customary exceptions   (including, without limitation, where the Company and the ABL Facility   Administrative Agent reasonably determine that the costs of obtaining such a   guarantee are excessive in relation to the value afforded thereby). The   Borrowers and the Guarantors are referred to herein as the “Loan Parties”.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Company will   be permitted, on and after the Closing Date, to designate subsidiaries   as “unrestricted” (each, an “Unrestricted Subsidiary”), and to   re-designate an Unrestricted Subsidiary as “restricted”, subject to   (x) customary limitations on investments, loans, advances to, and other   investments in Unrestricted Subsidiaries, (y) the absence of any   defaults or events of default and (z) in the case of any designation of   an Unrestricted Subsidiary, the requirement to satisfy the Payment Conditions   (as defined below) except in the case of any Unrestricted Subsidiary   designated on the Closing Date. Unrestricted Subsidiaries will not be   included in the representations and warranties of the Loan Parties or be   subject to affirmative or negative covenants or events of default (other than   certain representations, warranties and covenants relating to the PATRIOT   Act, OFAC, FCPA and other applicable sanction, anti-money laundering, anti-bribery   and anti-corruption laws), and the cash held by, results of operations,   assets, indebtedness and interest expense of Unrestricted Subsidiaries will   not be taken into account for purposes of determining any financial ratio or   covenant contained in the ABL Facility Documents.
    
	
 
    	
 
    	
 
    
	
Joint Lead Arrangers and
    	
 
    	
 
    
	
Joint Bookrunners:
    	
 
    	
MLPFS and   Barclays.
    

 

Exhibit C-1

 

	
Lenders:
    	
 
    	
A syndicate of banks, financial institutions and other   entities, including the Initial Lenders, arranged by the Arrangers in   consultation with the Company, but excluding Disqualified Lenders   (collectively, the “Lenders”).
    
	
 
    	
 
    	
 
    
	
Administrative Agent:
    	
 
    	
Bank of America   will act as sole and exclusive administrative agent for the Lenders and will   perform the duties customarily associated with such role (the “Administrative   Agent”).
    
	
 
    	
 
    	
 
    
	
Collateral Agent:
    	
 
    	
Bank of America   will act as sole and exclusive collateral agent for the Lenders and will   perform the duties customarily associated with such role (the “Collateral   Agent”).
    
	
 
    	
 
    	
 
    
	
Issuing Banks:
    	
 
    	
Bank of America   and certain other Lenders that agree to act in such capacity, each with   respect to a portion of the aggregate letter of credit sublimit   (collectively, the “Issuing Banks”, each an “Issuing Bank”).   Notwithstanding the foregoing, no Issuing Bank shall be required to issue   documentary letters of credit absent an express agreement by such Issuing   Bank to do so.
    
	
 
    	
 
    	
 
    
	
Swingline Lender:
    	
 
    	
Bank of America   (the “Swingline Lender”).
    
	
 
    	
 
    	
 
    
	
Syndication Agent:
    	
 
    	
Barclays.
    
	
 
    	
 
    	
 
    
	
Documentation Agents:
    	
 
    	
One or more   financial institutions appointed by the Company and the Arrangers acting   together.
    
	
 
    	
 
    	
 
    
	
Transactions:
    	
 
    	
As described in Exhibit A.
    
	
 
    	
 
    	
 
    
	
ABL Facility:
    	
 
    	
A senior secured   revolving credit facility in an aggregate principal amount of $3,000,000,000,   which shall be available to the Borrowers in U.S. Dollars, with sublimits to   be agreed for borrowings in Euros, Canadian Dollars and other currencies to   be agreed (the “ABL Facility”), with subfacilities for letters of   credit and swingline loans in maximum amounts and on terms described more   fully below. The loans under the ABL Facility are referred to herein as the “ABL   Loans”. The aggregate amount of the commitments in respect of the ABL   Facility is referred to herein as the “Aggregate Commitments”.
    
	
 
    	
 
    	
 
    
	
Purpose/Use of Proceeds:
    	
 
    	
$1,500 million   (or such lesser amount as is requested by the Company) of the ABL Facility   may be used on the Closing Date to issue letters of credit and for revolving   loans to (i) finance a portion of the Refinancings, (ii) finance   the consideration for the Acquisition and pay fees and expenses in connection   with the Transactions and (iii) fund upfront fees or original issue   discount (“OID”) in respect of the Facilities pursuant to the “flex”   provisions of the Fee Letter; provided, that after giving effect to   the Transactions on the Closing Date (including the loans and other   extensions of credit made under the ABL Facility on the Closing Date) and   including the assets of the Target and its subsidiaries in the Borrowing   Base, pro forma Excess
    

 

Exhibit C-2

 

	
 
    	
 
    	
Availability is   at least $750 million; and provided, further, that the   Borrowers may also borrow additional amounts (up to $1,700 million in the   aggregate) if, after giving effect thereto, pro forma Excess Availability as   of the Closing Date (after giving effect to the Transactions) is at least   $1,000 million.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Following the   Closing Date, the ABL Loans will be used by the Borrowers and their   subsidiaries for working capital and general corporate purposes (including   permitted acquisitions and other investments).
    
	
 
    	
 
    	
 
    
	
Closing Date:
    	
 
    	
The date of the   initial funding of the Facilities.
    
	
 
    	
 
    	
 
    
	
ABL Maturity Date:
    	
 
    	
The date that is   five years after the Closing Date.
    
	
 
    	
 
    	
 
    
	
Availability:
    	
 
    	
Subject to the   limitations set forth above in the section entitled “Purpose/Use of   Proceeds”, borrowings of ABL Loans may be made at any time on and after the   Closing Date, and letters of credit may be issued at any time on and after   the Closing Date, to but excluding the business day preceding the ABL   Maturity Date. ABL Loans may be borrowed, repaid and, subject to the terms   and conditions of the ABL Facility Documents (as defined below), reborrowed   at any time and from time to time during the period of availability provided   in the preceding sentence.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The aggregate of   the outstanding principal amount of the ABL Loans, swingline loans, the   undrawn amount of the letters of credit and the unreimbursed amount of   payments in respect of drafts under letters of credit issued under the ABL   Facility may not at any time exceed the lesser of the Aggregate Commitments and the Borrowing Base (as defined   below) determined as at the end of the most recently ended month.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The “Borrowing   Base” shall be the sum of:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a) 90% of   the face amount of eligible credit card receivables of the Loan Parties; plus
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(b) 85% of   the book value of eligible accounts receivable of the Loan Parties (other   than any credit card receivables referred to in clause (a) above and any   unbilled accounts receivable referred to in clause (c) below); plus
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(c) 75% of   the book value of eligible unbilled accounts receivable of the Loan Parties   for goods that have been delivered, subject to a cap to be agreed; plus
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(d) 90% of   the “net recovery percentage” (the percentage of the book value of applicable   eligible collateral recoverable in an orderly liquidation as determined in   the most recent appraisal delivered to the Collateral Agent) of eligible   inventory of the Loan Parties located in
    

 

Exhibit C-3

 

	
 
    	
 
    	
the U.S.,   multiplied by the book value (excluding LIFO reserves) of such eligible   inventory; minus
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(e) eligibility   reserves.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Eligibility   criteria and reserves will be determined in accordance with mutually agreed   criteria to be set forth in the ABL Facility Documents and will, in any case,   be not less favorable (in any material respect) to the Borrowers than the provisions   regarding reserves and eligibility set forth in the Existing Credit Facility.   If the 2018 Notes (as defined in Exhibit B) are not refinanced,   redeemed or defeased at least 60 days prior to their maturity date (as such   maturity date may be extended from time to time in accordance with the terms   of the 2018 Notes), the Administrative Agent shall impose an Availability   reserve in an amount equal to the outstanding principal balance of such 2018   Notes, which reserve shall remain in effect until the 2018 Notes are fully   refinanced, redeemed or defeased. As it relates to clauses (a), (b) and   (c) above, any such receivable that is subject to a securitization   facility shall not be eligible.
    
	
 
    	
 
    	
 
    
	
Letters of Credit:
    	
 
    	
Up to   $750,000,000 of the ABL Facility will be available for letters of credit, on   terms and conditions to be set forth in the ABL Facility Documents, on or   after the Closing Date. Each letter of credit shall expire not later than the   earlier of (i) 12 months after its date of issuance (subject to   customary provisions for annual extension) and (ii) the second business   day prior to the ABL Maturity Date.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Drawings under   any letter of credit shall be reimbursed by the Borrowers within one business   day after notice of such drawing is received by the Borrowers. To the extent that the Borrowers do   not reimburse the applicable Issuing Bank within one business day after   receipt of notice, the Lenders under the ABL Facility shall be irrevocably   obligated to reimburse such Issuing Bank pro rata based upon their respective   commitments. Letters of credit shall be available in U.S. Dollars, with   sublimits to be agreed for letters of credit issued in Canadian Dollars,   Euros and other currencies to be agreed.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The issuance of   all letters of credit shall be subject to the customary procedures of the   applicable Issuing Bank.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Certain letters   of credit issued pursuant to the Existing Credit Facility (as defined in Exhibit A),   or issued pursuant to the Company’s existing credit facility or other letter   of credit facilities, shall be deemed issued under the ABL Facility on the   Closing Date pursuant to arrangements acceptable to the applicable Issuing   Banks and the Administrative Agent.
    
	
 
    	
 
    	
 
    
	
Swingline Facility:
    	
 
    	
The Swingline   Lender will make available to the Borrowers a swingline facility under which   the Borrowers may make short-term borrowings in U.S. Dollars of up to an   aggregate amount to be agreed
    

 

Exhibit C-4

 

	
 
    	
 
    	
upon. Except for   purposes of calculating the Commitment Fee described below, any such   swingline borrowings will reduce availability under the ABL Facility on a   dollar-for-dollar basis. Each Lender under the ABL Facility shall, promptly   upon request by the Swingline Lender, fund to the Swingline Lender its pro   rata share of any swingline borrowings.
    
	
 
    	
 
    	
 
    
	
Collateral:
    	
 
    	
Subject, on the   Closing Date, to the Limited Conditionality Provisions (as set forth in Section 2   of the Commitment Letter) and subject to the limitations set forth below in   this section, the obligations of the Loan Parties in respect of the ABL   Facility and certain bank products (including hedging and treasury management   obligations) incurred in favor of any person that is an Arranger, the   Administrative Agent, a Lender or an affiliate of an Arranger, the   Administrative Agent or a Lender at the time such obligations are incurred   will be secured by substantially all assets of the Loan Parties, wherever   located, now owned or hereafter acquired, including the following   (collectively, the “Collateral”):
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a) a   perfected first-priority security interest (subject to permitted liens) in   all (i) accounts receivable (other than Term Loan Receivables (as   defined in Exhibit B)), credit card receivables, inventory   (excluding any consigned inventory), chattel paper, deposit and security   accounts (other than such accounts containing solely proceeds of Term Loan   Priority Collateral (as defined in Exhibit B) to the Commitment   Letter), (ii) to the extent evidencing, securing, governing, or otherwise   reasonably related to the assets described in the foregoing subclause (i),   all general intangibles (other than intellectual property), investment   property (other than equity interests owned by the Borrowers and the   Guarantors), documents, instruments, commercial tort claims, supporting   obligations, and letters of credit and letter of credit rights; provided,   however, that to the extent any of the foregoing also evidence. secure,   govern or otherwise reasonably relate to any Term Priority Collateral, only   that portion that evidences, governs, secures or primarily relates to ABL   Priority Collateral shall constitute ABL Priority Collateral, (iii) all   books and records related to the foregoing, and (iv) all proceeds and   products of the foregoing (all of the foregoing, the “ABL Priority   Collateral”); and
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(b) a   perfected second-priority security interest (subject to permitted liens) in   the Term Loan Priority Collateral.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notwithstanding   anything to the contrary, the Collateral shall exclude the following:   (A) motor vehicles and other assets subject to certificates of title (to   the extent a lien thereon cannot be perfected by filing of a UCC financing   statement); (B) pledges and security interests over assets (including in   respect of interests in partnerships, joint ventures and other non-wholly   owned entities) to the extent prohibited by law, except to the extent such   prohibition is unenforceable after giving effect to applicable provisions of   the Uniform Commercial Code, other than proceeds thereof, the
    

 

Exhibit C-5

 

	
 
    	
 
    	
assignment of   which is expressly deemed effective under the Uniform Commercial Code   notwithstanding such prohibitions; (C) all fee owned real property   having a book value less than $7.5 million (with all required mortgages being   permitted to be delivered post-closing subject to the requirements of the   Limited Conditionality Provisions) determined on the Closing Date for   existing real property and on the date of acquisition for any after acquired   real property (or the date of substantial completion of any material   improvement thereon or new construction thereof) and all real property   leasehold interests; (D) intent to use trademark or service mark   applications until such time as a statement of use is filed; (E) equity   interests in any person other than wholly owned restricted subsidiaries to   the extent not permitted by the terms of such subsidiary’s organizational or   joint venture documents; (F) any lease, license or other agreement or   any property subject to a purchase money security interest, capital lease   obligation or similar arrangements, in each case, to the extent permitted   under the ABL Facility Documents and to the extent that a grant of a security   interest therein would violate or invalidate such lease, license or   agreement, purchase money, capital lease or a similar arrangement or create a   right of termination in favor of any other party thereto (other than a Loan   Party), in each case, after giving effect to the applicable anti-assignment   provisions of the UCC or other applicable law, other than proceeds and   receivables thereof and (G) (i) the Divested Properties (as defined   in Exhibit B) and (ii) any other real property identified in   writing by the Company prior to the Closing Date that is for sale on the   Closing Date or that the Company or any Guarantor intends to sell as part of   the restructuring and integration in connection with the Acquisition, in each   case, that would otherwise not be excluded pursuant to clause (C) above   and that have not been disposed of on or prior to 120 days after the Closing   Date (in which case perfection of the lien on such Divested Properties or   such other real property shall be provided within 180 days after the Closing   Date, or such longer period as the Administrative Agent may agree in its   reasonable judgment). For the avoidance of doubt, notwithstanding the   foregoing, the ABL Lenders will have a security interest in all collateral   required under the Term Facility, which security interest shall be (x) senior   to any lien the secured parties in respect of the Term Facility have in any   ABL Loan Priority Collateral and (y) junior to any lien the secured   parties in respect of the Term Facility have in any Term Priority Collateral.
    
	
 
    	
 
    	
 
    
	
Intercreditor Matters:
    	
 
    	
The exercise of   certain rights and remedies with respect to the respective security interests   and liens of the Collateral Agent and the collateral agent under the Term   Facility with respect to the assets of the Loan Parties will be subject to an   intercreditor agreement that will contain customary lien subordination,   completion rights, collateral access and intellectual property licensing   provisions, all in form and substance reasonably satisfactory to the   Arrangers, the arrangers of the Term Facility and the Company (the “Intercreditor   Agreement”).
    

 

Exhibit C-6

 

	
Documentation:
    	
 
    	
The definitive   credit documentation for ABL Facility will include, among other items, a   credit agreement, guarantees, Intercreditor Agreement and appropriate   pledge and security agreements (collectively, the “ABL Facility Documents”).   The ABL Facility Documents will contain the terms set forth in this Exhibit C,   in each case, substantially similar to the corresponding terms (if any) set   forth in the Existing Credit Facility, except as expressly set forth herein   and, to the extent any other terms are not expressly set forth in this Exhibit C   or the Existing Credit Facility will (i) be usual and customary for   asset based facilities made available to borrowers in a similar industry to   the Borrowers, (ii) be negotiated in good faith within a reasonable time   period to be determined based on the expected Closing Date and taking into   account the timing of the syndication of the ABL Facility and the pre-closing   requirements of the Acquisition Agreement, (iii) contain such other   terms as the Borrower and the Arrangers shall reasonably agree and   (iv) give due regard to a combination of (a) the leverage profile   and projected free cash flow generation of the Borrower and its restricted   subsidiaries after giving effect to the Transactions, (b) general trends   and risks affecting the industry and the Borrower and its restricted   subsidiaries and (c) prevailing market conditions at the time of   syndication of the Facilities (iv) reflect the operational and strategic   requirements of the Borrower and its restricted subsidiaries, (v) take   into account the proposed business plan and financial model of the Company   and (vi) be in a form such that they do not impair the availability of   the ABL Facility on the Closing Date if the conditions to funding set forth   or referred to in Section 2 of the Commitment Letter are satisfied   (collectively, the “Documentation Principles”).
    
	
 
    	
 
    	
 
    
	
Incremental Facilities:
    	
 
    	
The Borrowers   shall be entitled on one or more occasions to increase commitments under the   ABL Facility (the “Additional ABL Commitments”) in an aggregate   principal amount of up to $500,000,000 (which amount shall be reduced dollar   for dollar by the amount, if any, by which the aggregate principal amount of   the ABL Facility exceeds $3,000,000,000 on the Closing Date), which shall   have the same guarantees as, and be secured on a pari passu basis by the same   collateral securing, the ABL Facility; provided that (i) no event   of default or default exists or would exist after giving effect thereto,   (ii) the representations and warranties in the ABL Facility Documents   are true and correct in all material respects, (iii) the final maturity   date of Additional ABL Commitments shall be the ABL Maturity Date, and   (iv) the other terms and conditions in the respect thereof shall be the   same as those applicable to the other commitments and loans under the ABL   Facility except as otherwise provided below. The Borrowers may seek   Additional ABL Commitments from existing Lenders (each of which shall be   entitled to agree or decline to participate in its sole discretion) and   additional lenders who will become Lenders in connection therewith. The   initial “yield” on the Additional ABL Commitments shall not exceed the   “yield” at such time on the ABL Facility (with “yield” being determined by   the Administrative Agent taking into account the applicable margin,
    

 

 

Exhibit C-7

 

	
 
    	
 
    	
commitment   fees, and any LIBOR or Base Rate floors, but not any fees paid to the   Arrangers in connection with the ABL Facility or the arrangers of the   Additional ABL Commitments that are not shared with all Lenders), unless the   applicable margin on revolving loans made pursuant to the then existing   commitments are increased so that the “yield” on such loans pursuant to the existing commitments is equal to the “yield”   for the loans to be made pursuant to the Additional ABL Commitments.  The determination of the yield differential   shall not take into account upfront fees or OID paid for either the then   existing commitments under the ABL Facility or the Additional ABL   Commitments.
    
	
 
    	
 
    	
 
    
	
Interest:
    	
 
    	
At   Borrowers’ option, loans denominated in U.S. Dollars will bear interest based   on the Base Rate or LIBOR Rate, as described below (except that all swingline   borrowings will accrue interest based on the Base Rate).  Loans denominated in Euros or Canadian   Dollars will bear interest based on the applicable Eurocurrency Rate, as   described below.

 

A.  Base Rate Option

 

Base   Rate borrowings will bear interest at the Base Rate plus the Applicable Margin   specified below, calculated on the basis of a year of 360 days (or 365/366   days in the case of Base Rate loans the interest rate payable on which is   then based on the prime commercial lending rate of Bank of America) and   payable quarterly in arrears.  The “Base   Rate” means the highest of (i) the Federal Funds Rate, as published   by the Federal Reserve Bank of New York, plus 1/2 of 1%, (ii) the prime   commercial lending rate of Bank of America as established from time to time,   and (iii) the one-month LIBOR plus 1%.

 

Base   Rate borrowings will be in minimum amounts to be agreed (and minimum   multiples thereof) and (other than swingline borrowings) will require one   business day’s prior notice.

 

B.  LIBOR Option

 

LIBOR   borrowings will bear interest for periods to be selected by the Borrowers (“Interest   Periods”) of one, two, three or six months or, with the consent of all   Lenders, twelve months, and will be at a rate per annum equal to the London   Interbank Offered Rate (“LIBOR”) for the applicable Interest Period for   the corresponding deposits of U.S. Dollars, plus the Applicable Margin   specified below.  LIBOR for an Interest   Period will be the rate appearing on Reuters Screen LIBOR01 Page (or any   successor or substitute therefor selected by the Administrative Agent in its   reasonable judgment) two business days prior to the start of the Interest   Period.  Interest will be paid at the   end of each Interest Period or, in the case of Interest Periods longer than   three months, every three months, and will be calculated on the basis
    

 

 

Exhibit C-8

 

	
 
    	
 
    	
of   the actual number of days elapsed in a year of 360 days.  LIBOR will be adjusted for maximum   statutory reserve requirements (if any).

 

LIBOR   borrowings will require three business days’ prior notice and will be in   minimum amounts (and minimum multiples thereof) to be agreed upon.

 

C.  Eurocurrency Rate

 

Eurocurrency   Rate borrowings will bear interest at the applicable Eurocurrency Rate plus   the Applicable Margin specified below.    “Eurocurrency Rate” shall be defined in a manner to be agreed   based on the Administrative Agent’s customary manner for determining rates   with respect to Euros and Canadian Dollars.

 

Eurocurrency   Rate borrowings will require three business days’ prior notice and will be in   minimum amounts (and minimum multiples thereof) to be agreed upon.
    
	
 
    	
 
    	
 
    
	
Interest Margins:
    	
 
    	
The “Applicable   Margin” will be the interest rate per annum set forth in the following   pricing grid.  The Applicable Margins   will initially be set at the Applicable Margins in Tier 3 below and,   commencing with the date that is 6 months after the Closing Date, will be   subject to increase or reduction based upon the average daily Excess   Availability Percentage (as defined below) during the most recently ended   fiscal quarter:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Tier
    	
 
    	
Quarterly Average
    Excess Availability
   Percentage
    	
 
    	
LIBOR
   Borrowings
    	
 
    	
Base Rate  
    Borrowings
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
1
    	
 
    	
>66.7%
    	
 
    	
1.50%
    	
 
    	
0.50%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
2
    	
 
    	
<66.7%   but >
   33.3%
    	
 
    	
1.75%
    	
 
    	
0.75%
    
	
 
    	
 
    	
3
    	
 
    	
<33.3%
    	
 
    	
2.00%
    	
 
    	
1.00%
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Excess   Availability” means the amount by which (a) the lesser of   (i) the Borrowing Base and (ii) the Aggregate Commitments (such   lesser amount, the “Availability”) exceeds (b) the sum of   (i) the aggregate outstanding principal balance of the loans (including   swingline loans) under the ABL Facility plus (ii) the undrawn face   amount of outstanding letters of credit issued under the ABL Facility and the   unreimbursed amount of payments in respect of drafts under letters of credit   issued under the ABL Facility, and “Excess Availability Percentage”   means the percentage obtained by dividing Excess Availability by the amount   of clause (a).

 
    

 

Exhibit C-9

 

	
Default Interest:
    	
 
    	
During the   continuation of an event of default, all ABL Loans shall accrue interest at a   rate of 2.0% per annum plus the rate otherwise applicable to such principal.   Default interest shall be payable on demand.
    
	
 
    	
 
    	
 
    
	
Commitment Fee:
    	
 
    	
A Commitment Fee   shall accrue on the average daily unused amount of the Aggregate Commitments   under the ABL Facility (calculated as the excess of the Aggregate Commitment   over the outstanding principal balance of the loans (excluding swingline loans), the   undrawn face amount of the outstanding letters of credit, and the unreimbursed   payments under letters of credit) at a rate (a) if the average daily   utilization (as a percentage of the Aggregate Commitments during the most   recently ended fiscal quarter) is greater than 40%, 0.25% per annum and   (b) if such average daily utilization (as a percentage of the Aggregate   Commitments during the most recently ended fiscal quarter) is less than or   equal to 40%, 0.375% per annum. Accrued Commitment Fees will be payable   quarterly in arrears (calculated on a 360-day basis) for the account of the   Lenders from the Closing Date.
    
	
 
    	
 
    	
 
    
	
Letter of Credit Fees:
    	
 
    	
The Borrowers   will pay (i) the applicable Issuing Bank for each letter of credit under   the ABL Facility a fronting fee equal to 0.125% per annum calculated on the   aggregate face amount of outstanding letters of credit, payable in arrears at   the end of each quarter and on the ABL Maturity Date and (ii) the   Lenders under the ABL Facility letter of credit participation fees at a rate   per annum equal to the interest margin for LIBOR Loans, in each case, on the   undrawn amount of all outstanding standby letters of credit and 50% of the   interest rate margin for LIBOR Loans for documentary letters of credit. In   addition, Borrowers will pay each Issuing Bank customary issuance fees.
    
	
 
    	
 
    	
 
    
	
Mandatory Prepayments:
    	
 
    	
The Borrowers   shall be required to prepay the revolving loans and cash collateralize   undrawn letters of credit by the amount, if any, by which (a) the sum of   (i) the aggregate outstanding principal balance of the loans (including   swingline loans) under the ABL Facility plus (ii) the U.S. Dollar   equivalent of the undrawn face amount of outstanding letters of credit issued   under the ABL Facility and the unreimbursed amount of payments in respect of   drafts under letters of credit issued under the ABL Facility exceeds   (b) the Availability.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Borrowers   shall prepay the ABL Loans and (if the ABL Loans are repaid in full) cash   collateralize undrawn letters of credit (without a permanent reduction of the   Aggregate Commitments) in an amount equal to 100% of the net proceeds   received from the sale or other disposition of, or casualty with respect to   or condemnation of, ABL Priority Collateral (to the extent of the type   included in the Borrowing Base) not in the ordinary course of business   subject to thresholds and other exceptions to be agreed and subject to 100%   reinvestment rights if the proceeds are reinvested or committed to be   reinvested within 12 months of receipt (if committed to be reinvested within   such 12 month
    
	
 
    	
 
    	
 
    

 

Exhibit C-10

 

	
 
    	
 
    	
period, to the   extent reinvested within 6 months thereafter) in assets constituting Collateral, provided, however, that   if no Liquidity Period (as defined below) is then in effect, the Borrowers   shall only be required to prepay the revolving loans and cash collateralize   undrawn letters of credit to the extent of any such net proceeds equal to the   amount advanced or available to be advanced against the ABL Priority   Collateral subject to the sale or other disposition. In addition, the   Borrowers shall prepay the revolving loans and cash collateralize undrawn   letters of credit under the ABL Facility (without a permanent reduction of   the Aggregate Commitments) and prepay the loans under the Term Facility on a pro rata basis with 100% of the net proceeds received   after the Closing Date from any and all Divested Properties in excess of $15   million in the aggregate in any calendar year (except that, in any event, the   application of such proceeds shall be reallocated as between the Term   Facility and the ABL Facility to the extent required to maintain Excess   Availability of not less than $1,000 million after giving effect to such sale   of Divested Properties and such repayments); provided, further,   that if, after giving pro forma effect to any sale of Divested Properties,   the Senior Secured Net Leverage Ratio is less than or equal to 2.00 to 1.00,   the proceeds of such Divested Properties shall be permitted to be reinvested   as provided above.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notwithstanding   the foregoing, to the extent that the Company has determined in good faith   that repatriation of any portion of the net proceeds of any asset sale by a   non-U.S. restricted subsidiary would have an adverse tax cost consequence (taking into account any foreign   tax credit or benefit received in connection with such repatriation) or is   not permitted by applicable law, then, to the extent that such adverse tax   cost consequence or legal limitation is not directly attributable to actions   taken by the Company or any of its subsidiaries with the intent of avoiding   or reducing any mandatory prepayment otherwise required, the Borrowers shall   not be required to make a prepayment with such portion of such net proceeds   as provided above.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
There will be no   prepayment penalties (except LIBOR or Eurocurrency breakage costs) for   mandatory prepayments.
    
	
 
    	
 
    	
 
    
	
Cash Dominion:
    	
 
    	
The Borrowers   shall be required to enter into account control agreements on the Borrowers’   concentration accounts and other accounts to be mutually determined (with   exceptions for certain accounts to be agreed) within 90 days after the Closing Date   (or such longer period as the Administrative Agent may reasonably agree). The   Borrowers shall be required to maintain a main cash concentration account and   blocked accounts with a financial institution reasonably acceptable to the   Administrative Agent into which all proceeds of the ABL Priority Collateral   are deposited (subject to mutually agreeable exceptions). The Administrative   Agent shall have the right, during a Liquidity Period, to cause all amounts   on deposit in any blocked account to be transferred to the main concentration   account at the end of each business day. During a
    

 

Exhibit C-11

 

	
 
    	
 
    	
Liquidity   Period, the Administrative Agent shall have the right to require that all   amounts on deposit in the main concentration account be applied on a daily   basis by the Administrative Agent to reduce loans outstanding under the ABL   Facility.  Amounts so prepaid shall,   subject to the terms and conditions of the ABL Facility Documents, be   available to be reborrowed.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Liquidity   Period” means the period from the date that (a) an event of default   has occurred and is continuing or (b) (i) the Excess Availability   Percentage is less than 12.5% or (ii) Excess Availability is less than   $300 million, in the case of this clause (b), for 3 consecutive business   days, until the date that the Excess Availability Percentage (or Excess   Availability) has been equal to or greater than the percentage or amount   described in clause (b) for 30 consecutive days and no event of default   is continuing.
    
	
 
    	
 
    	
 
    
	
Optional Prepayments:
    	
 
    	
The Borrowers   may voluntarily prepay ABL Loans (together with accrued but unpaid interest   thereon) under the ABL Facility in whole or in part (subject to a minimum   threshold to be agreed) at any time and from time to time without premium or   penalty (except LIBOR or Eurocurrency breakage costs).  Borrowers may also voluntarily reduce the   Aggregate Commitments in whole or in part (subject to a minimum threshold to   be agreed), at any time and from time to time without premium or penalty.
    
	
 
    	
 
    	
 
    
	
Conditions Precedent to
    	
 
    	
 
    
	
Effectiveness and Borrowings
    	
 
    	
 
    
	
on the Closing Date: 
    	
 
    	
Conditions   precedent to the initial extensions of credit under the ABL Facility will be   subject to only the following conditions: (i) prior written notice of   borrowing or letter of credit request, as applicable, and (ii) the   conditions set forth or referred to in Section 2 of the   Commitment Letter (including those specified in Exhibit D   thereto).
    
	
 
    	
 
    	
 
    
	
Conditions   Precedent
    	
 
    	
 
    
	
to Other Credit Extensions:
    	
 
    	
Conditions   precedent to each extension of credit (other than the initial extensions of   credit on the Closing Date) under the ABL Facility will be (1) the   absence of any continuing default or event of default, (2) the accuracy   of representations and warranties in all material respects, (3) receipt   of a customary borrowing notice or letter of credit request, as applicable,   and (4) Excess Availability.
    
	
 
    	
 
    	
 
    
	
Representations and
    	
 
    	
 
    
	
Warranties:
    	
 
    	
Limited to the   following, defined in a manner usual and customary for facilities and   transactions of this type in accordance with the Documentation Principles,   subject to customary material adverse effect and materiality qualifiers,   exceptions and baskets to be mutually agreed and applicable to the Company   and its restricted subsidiaries (and, with respect to the PATRIOT Act, OFAC,   FCPA and other applicable sanction, anti-money laundering, anti-bribery and   anti-corruption laws representations, its unrestricted subsidiaries) and, in   the case of the Target and its subsidiaries, giving due regard to
    

 

Exhibit C-12

 

	
 
    	
 
    	
matters   disclosed in the Acquisition Agreement: corporate status; good standing;   power and authority; due authorization, execution and delivery; legal, valid   and binding documentation; no material consents; no material adverse change;   litigation and investigations; use of proceeds; no violation of, or conflicts   with, material agreements or instruments; compliance with organizational   documents, laws and regulations (including margin regulations); payment of   taxes; ownership of the Borrowers and their respective subsidiaries and properties; accuracy of financial   statements (including pro forma financial statements); accuracy of   disclosure; insurance; absence of undisclosed liabilities; intellectual   property; inapplicability of the Investment Company Act; solvency; labor   matters; regulatory matters; PATRIOT Act, OFAC, FCPA and other applicable sanction,   anti-money laundering, anti-bribery and anti-corruption laws; validity,   priority and perfection of security interests in the Collateral; cash   management and credit card arrangements; environmental matters, employment   matters and employee benefit matters; common enterprise; and no default; in   each case subject, on the Closing Date, to the Limited Conditionality   Provisions.
    
	
 
    	
 
    	
 
    
	
Affirmative Covenants:
    	
 
    	
Limited to the following, defined in a manner usual and customary for   facilities and transactions of this type in accordance with the Documentation Principles, subject to customary materiality   qualifiers, exceptions and baskets to be mutually agreed (to be applicable to   the Company and its restricted subsidiaries and, with respect to the PATRIOT   Act, OFAC, FCPA and other applicable sanction, anti-money laundering,   anti-bribery and anti-corruption laws, its unrestricted subsidiaries):   maintenance of corporate existence and rights; performance of obligations;   delivery of consolidated financial statements for the Company and its   subsidiaries (including quarterly financial statements and audited annual   financial statements (and   annual audit opinions from nationally recognized auditors that are not   subject to any qualification as to “going concern” or scope of the audit)),   related certificates, annual budget and other financial and operational   information, including a quarterly MD&A, and including information   required under the PATRIOT Act; delivery of borrowing base certificates and   other collateral reports (on a monthly basis, but on a weekly basis if (a) an   event of default has occurred and is continuing or (b)(i) the Excess   Availability Percentage is less than 15% or (ii) Excess Availability is   less than $350 million, in the case of this clause (b), for 3 consecutive   business days, until the date that the Excess Availability Percentage (or   Excess Availability) has been equal to or greater than the percentage or   amount described in clause (b) for 30 consecutive days and no event of   default is continuing); delivery of   notices of default, litigation, ERISA events, material adverse change and   other material events; maintenance of properties in good working order;   maintenance of customary insurance; compliance with laws and regulations;   compliance with the PATRIOT Act, OFAC, FCPA and other applicable sanction,   anti-money laundering, anti-bribery and anti-corruption laws; environmental   matters; inspection of books and properties; field examinations,
    

 

Exhibit C-13

 

	
 
    	
 
    	
appraisals and collateral audits (one per annum normally, two per annum   during a twelve-month period if the Excess Availability Percentage falls   below 25% for 5 consecutive days and quarterly during an event of default,   but, in any event, not more than four per year); cash management   arrangements; casualty and condemnation; additional loan parties and other   further assurances; payment of taxes; maintenance of necessary consents,   approvals, licenses and permits; and post-closing covenant to provide first priority   perfected security interests (subject to the terms of the Intercreditor   Agreement).
    
	
 
    	
 
    	
 
    
	
Negative Covenants:
    	
 
    	
Limited to the following, defined   in a manner usual and customary for   facilities and transactions of this type in accordance with the Documentation   Principles, subject to customary materiality qualifiers, exceptions   and baskets to be agreed (to be applicable to the Company and its   restricted subsidiaries): limitations on dividends and distributions on, and   redemptions and repurchases of, equity interests and other restricted   payments (which   shall permit, among other things, (i) dividends, distributions or   redemptions subject to the Payment Conditions as set forth below,   (ii) dividends, distributions or redemptions in connection with the Transactions   (in accordance with the Acquisition Agreement) and (iii) if no event of   default exists when declared, quarterly dividends by the Company in an amount   up to $0.15 per share); limitations on   prepayments, redemptions and repurchases of junior lien, subordinated or unsecured debt (which shall permit, among other things, (i) prepayments, redemptions and   repurchases subject to the Payment Conditions as set forth below and   (ii) any refinancing of such junior lien, subordinated or unsecured debt   with the proceeds of Permitted Refinancing Indebtedness (to be defined in a   manner to be agreed)); limitations on   amendments to organizational documents and documentation relating to certain   material indebtedness; limitations on liens (which shall permit, among other   things, liens securing (i) the Term Facility and (ii) debt assumed   in connection with a Permitted Acquisition (as defined below) or similar   investment or other permitted acquisition of an entity that becomes a   restricted subsidiary (provided that, in the case of this clause (ii), such   liens extend only to the same assets that such liens extended to, and secure   the same indebtedness that such liens secured, immediately prior to such   assumption and were not created in contemplation thereof); negative pledge   with respect to owned U.S. real property not constituting Collateral;   limitations on investments (which shall permit, among other things, (i) intercompany   investments (subject to limitations to be agreed regarding investments by   Loan Parties in non-Loan Parties), (ii) acquisitions on the terms set   forth below regarding Permitted Acquisitions, (iii) investments subject   to the Payment Conditions as set forth below, (iv) certain investments   in joint ventures to be agreed and (v) the Acquisition and investments   in connection with the Transactions); limitations on debt and issuance of preferred stock (which shall   permit, among other things, (i) the Term Facility and any refinancing   thereof in whole or in part, (ii) certain debt existing on the Closing   Date (including the 2018 Notes, the 2023 Notes, the Target’s 5% debentures due 2030, the Target’s 7.35%
    

 

Exhibit C-14

 

	
 
    	
 
    	
debentures, the Target’s receivables   securitization program in France, certain capital leases and certain revenue   bonds), (iii) purchase money debt and capital leases in an amount to be   mutually agreed, (iv) certain indebtedness of foreign subsidiaries to be   mutually agreed (but no less than $300 million in the aggregate at any one time   outstanding), (v) debt assumed or incurred in connection with a   Permitted Acquisition (as defined below) or similar investment or other   permitted acquisition of an entity that becomes a restricted subsidiary, in   each case, subject to the Payment Conditions as set forth below and   (vi) additional unsecured debt in an amount to be mutually agreed);   limitations on mergers and asset sales (which shall permit, among other   things, intercompany transfers among the Company and its restricted   subsidiaries (subject to limitations to be agreed regarding transfers from   Loan Parties to non-Loan Parties)); limitations on sale leaseback   transactions with exceptions to be agreed; limitations on transactions with   affiliates; limitations on changes in business; limitations on negative pledge   clauses; limitations on swap agreements; limitations on change of fiscal   quarter, fiscal year and other accounting changes (except in connection with   the integration of the Target and its subsidiaries following the   Acquisition); and limitations on restrictions on ability of subsidiaries to   pay dividends or make distributions (with exclusions to be agreed, including   with respect to restrictions included in agreements governing debt of   non-U.S. restricted subsidiaries).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Company and   its restricted subsidiaries will be permitted to make acquisitions of persons   that become restricted subsidiaries or of assets (including assets   constituting a business unit, line of business or division), and assume debt   and liens in connection therewith (each, a “Permitted Acquisition”)   subject to: (a) compliance with the Payment Conditions; (b) no   event of default shall have occurred and be continuing or would result   therefrom; (c) the acquired entity or business is in the same line of   business or carries on, or is, a business complementary to that carried on by   the Borrower and its restricted subsidiaries; (d) the Loan Parties   comply with the applicable covenants to provide Collateral and guarantees;   and (e) acquisitions of entities that do not become Guarantors (or of   assets that do not become Collateral) will be subject to the applicable   limitations on investments in non-Guarantor subsidiaries to be mutually   agreed.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Company and its restricted subsidiaries will also be permitted to   make unlimited restricted payments, investments and prepayments of junior lien, subordinated or unsecured debt subject to satisfaction of the   Payment Conditions. Satisfaction of the “Payment   Conditions” means that no default or event of default has occurred and is   continuing and, on a pro forma basis after giving effect to such restricted   payment, investment or prepayment, either:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(i) (A) Excess Availability would be at least 15% of   Availability (or 12.5% of Availability in the case of permitted acquisitions   and other investments) on such date and for the projected following 6-month   period, and (B) the Consolidated Fixed Charge Coverage Ratio (to be
    

 

Exhibit C-15

 

	
 
    	
 
    	
defined) for the most recent four fiscal quarter period would be at   least 1.1 to 1.0 (or, in the case of permitted acquisitions and other   investments, 1.0 to 1.0); or
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(ii) Excess Availability would be at least 25% of Availability (or   20% of Availability in the case of permitted acquisitions and other investments)   on such date and for the projected following 6-month period.
    
	
 
    	
 
    	
 
    
	
Financial Covenants:
    	
 
    	
If either   (a) the Excess Availability Percentage is less than 10% at any time,   (b) Excess Availability is less than $250 million at any time or   (c) an event of default is continuing, until the 30th consecutive day   that all such triggers no longer exist, the Company shall comply with a   minimum Consolidated Fixed Charge Coverage Ratio for the Company and its   consolidated subsidiaries for the then most recent period of four consecutive   fiscal quarters for which financial statements have been delivered in   accordance with ABL Facility Documents, of at least 1.00 to 1.00.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Consolidated   Fixed Charge Coverage Ratio” means the ratio, determined as of the end of   each fiscal quarter of the Company for the most recently ended four fiscal   quarters, of (a) Consolidated EBITDA (to be defined in a manner to be   agreed and consistent with the definition in the Term Facility) minus   the unfinanced portion of capital expenditures, minus taxes paid in   cash net of refunds, to (b) Fixed Charges, all calculated for the   Company and its restricted subsidiaries on a consolidated basis in accordance   with GAAP.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Fixed   Charges” means, with reference to any period, without duplication, cash   interest expense (net of interest income), plus scheduled principal   payments on indebtedness made during such period (other than certain payments   to be agreed), plus dividends or distributions paid in cash, plus   capital lease obligation payments, plus cash contributions to benefits   plans, all calculated for the Company and its restricted subsidiaries on a   consolidated basis.
    
	
 
    	
 
    	
 
    
	
Events of Default:
    	
 
    	
Limited to the   following (relating to the Company and its restricted subsidiaries and,   solely with respect to any breach of a representation, warranty or covenant applicable to unrestricted subsidiaries,   unrestricted subsidiaries), defined in a manner that is usual and   customary for facilities and transactions of this type in accordance with the   Documentation Principles and subject to, where appropriate, materiality   qualifiers and grace periods to be mutually agreed upon: nonpayment of   principal, interest or other amounts; violation of covenants; incorrectness   of representations and warranties in any material respect (or in any respect   with respect to any representations and warranties already qualified by   materiality); cross-default and cross-acceleration to other indebtedness in a   principal amount exceeding $75 million; bankruptcy and other insolvency-related   defaults; material unsatisfied judgments (subject to a threshold of $75   million in the case of monetary judgments); actual or asserted
    

 

Exhibit C-16

 

	
 
    	
 
    	
invalidity of   guarantees, security documents or other ABL Facility Documents; loss of lien   priority; ERISA events; and change of control (to be defined in a manner to   be agreed). While the accuracy of any representation and warranty other than   as set forth or referred to in Section 2 of the Commitment Letter is not   a condition precedent to the availability of the Facilities on the Closing   Date, all other representations and warranties shall be made on the Closing   Date.
    
	
 
    	
 
    	
 
    
	
Assignments and Participations:
    	
 
    	
After the   Closing Date, each Lender may assign all or, subject to minimum amounts to be   agreed, a portion of its loans and commitments under the ABL Facility.   Assignments will require payment of an administrative fee to the   Administrative Agent and the consents of the Administrative Agent, each   Issuing Bank, the Swingline Lender and the Company, which consents shall not   be unreasonably withheld or delayed (and, in the case of the Company, will   deemed to be given if no response is received within 10 business days of the   date of the request); provided that (i) no consents shall be   required for an assignment to an existing Lender or an affiliate or approved   fund of an existing Lender and (ii) no consent of the Company shall be   required when a payment or bankruptcy event of default is continuing. Each   assignment (except to other Lenders and their affiliates or approved funds)   will be in a minimum amount of $10 million.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
In addition,   each Lender may sell participations in all or a portion of its loans and   commitments under the ABL Facility; provided that no purchaser of a   participation shall have the right to exercise or to cause the selling Lender   to exercise voting rights in respect of the ABL Facility, except with respect   to: (w) increases in commitments of such participant;   (x) reductions or forgiveness of principal, interest, premium or fees   payable to such participant; (y) extensions of the ABL Maturity Date or   the date for payment of interest or fees on the loans or commitments in which such participant   participates; and (z) releases of all or substantially all of the value   of the guarantees, or all or substantially all of the ABL Priority   Collateral.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
No assignments   or participations may be made to Disqualified Lenders and any assignment or   participation made in violation of such requirement shall be voidable upon   request by the Borrower (unless such Disqualified Lender no longer holds such   assignment or participation and the holder thereof would otherwise be an   eligible assignee). The Administrative Agent shall have the right to   (a) post the list of Disqualified Lenders provided by the Company and   any updates thereto from time to time (collectively, the “DQ List”) on   IntraLinks, SyndTrak Online or similar electronic means (the “Platform”),   including that portion of the Platform that is designated for “public side”   Lenders and/or (b) provide the DQ List to each Lender requesting the   same. The Administrative Agent shall not be responsible or have any liability   for, or have any duty to ascertain, inquire into, monitor or enforce,   compliance with the provisions of the ABL Facility Documents relating to   Disqualified Lenders.
    

 

Exhibit C-17

 

	
Expenses and Indemnification:
    	
 
    	
The Company   shall pay (a) (i) all reasonable and documented or invoiced   out-of-pocket expenses of the Administrative Agent, the Collateral Agent,   each Issuing Bank and each Arranger associated with the syndication of the   ABL Facility and the preparation, execution, delivery and administration of   the ABL Facility Documents (including with respect to field exams and   appraisals), and (ii) all reasonable and documented or invoiced   out-of-pocket expenses of the Administrative Agent, the Collateral Agent,   each Issuing Bank and each Arranger associated with any amendment or waiver   with respect to the ABL Facility Documents (including, without limitation,   the reasonable and documented fees, disbursements and other charges of   counsel identified herein, one local counsel in each relevant material   jurisdiction and, solely in the case of an actual or perceived conflict of   interest, one additional counsel in each applicable material jurisdiction)   and (b) all reasonable and documented or invoiced out-of-pocket expenses   of the Administrative Agent, the Collateral Agent, each Issuing Bank, each   Arranger and the Lenders (including, without limitation, the reasonable and   documented fees, disbursements and other charges of counsel) in connection   with the enforcement of the ABL Facility Documents.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The Loan Parties   will indemnify the Administrative Agent, the Collateral Agent, each Arranger,   and the Lenders and their respective affiliates, successors and assigns and   the officers, directors, employees, affiliates, agents, advisors, controlling   persons and members of each of the foregoing, and hold them harmless from and   against all costs, expenses (including, without limitation, reasonable and   documented fees, disbursements and other charges of counsel), losses, claims,   damages and liabilities of any such Indemnified Person arising out of or   relating to any claim or any litigation or other proceedings (regardless of   whether any such Indemnified Person is a party thereto or whether such claim,   litigation, or other proceeding is brought by a third party or by the Company   or any of its affiliates, creditors or shareholders) that relate to the   Transactions; provided that no Indemnified Person will be indemnified   for its gross negligence, material breach of its funding obligations under   the ABL Facility, bad faith or willful misconduct as determined by a court of   competent   jurisdiction in a final non-appealable decision or for any dispute that is   solely among Indemnified Persons and does not arise from any act or omission   by the Company or any of its affiliates (other than a dispute involving   claims against the Administrative Agent or Collateral Agent in its capacity   as such; provided,  further that no Indemnified Person or the   Company shall be liable for any indirect, special, punitive or consequential   damages (other than in respect of any such damages incurred or paid by an   Indemnified Person to a third party).
    
	
 
    	
 
    	
 
    
	
Defaulting Lenders:
    	
 
    	
The ABL Facility   Documents will contain provisions relating to defaulting Lenders that are   customary for facilities of this type and consistent with the Documentation   Principles.
    

 

Exhibit C-18

 

	
Yield Protection, Taxes and Other Deductions:
    	
 
    	
 

Usual for   facilities and transactions of this type, including customary tax gross-up   provisions (including customary provisions relating to the implementation of   regulations related to Basel III and Dodd-Frank regardless of the date enacted); provided that   any U.S. federal withholding taxes imposed on any Lender under current   Sections 1471 through 1474 of the U.S. Internal Revenue Code (or any amended   or successor version that is substantively comparable and not materially more   onerous to comply with) shall be solely for the account and expense of such   Lenders.
    
	
 
    	
 
    	
 
    
	
Voting:
    	
 
    	
Amendments and   waivers of the ABL Facility Documents will require the approval of Lenders   holding more than 50% of the aggregate amount of the loans and commitments   under the ABL Facility (the “Required Lenders”), except that   (a) the consent of each Lender directly and adversely affected thereby   shall also be required with respect to (i) increases in or extensions of   the commitment of such Lender, (ii) reductions or forgiveness of   principal, interest (other than default interest), fees or reimbursement   obligations payable to such Lender or increases in advance rates,   (iii) extensions of the ABL Maturity Date or of the date for payment to   such Lender of any interest or fees, or any reimbursement obligation, and   (iv) changes that impose any additional restriction on such Lender’s   ability to assign any of its rights or obligations, (b) the consent of   each Lender shall be required with respect to (i) modification to voting   requirements or percentages, (ii) modification to certain provisions   requiring the pro rata treatment of lenders, and (iii) releases of all   or substantially all of the value of the guarantees, or all or substantially   all of the ABL Priority Collateral, (c) the consent of the Issuing   Banks, Swingline Lender, Administrative Agent or the Collateral Agent shall   be required with respect to amendments and waivers affecting the rights or   duties of such Issuing Bank, the Swingline Lender, Administrative Agent or   Collateral Agent, as applicable, and (d) the consent of Lenders holding   at least 66-2/3% of the aggregate commitments and outstandings under the ABL   Facility will be required for amendments or waivers to change the definition   of Borrowing Base and the component definitions thereof the effect of which   would be to increase availability (other than increases to the advance rates   as provided above).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The ABL Facility   Documents shall permit extensions of the final expiration date of the   commitments approved by affected Lenders and offered to all Lenders, and   without the consent of any other Lender or the Required Lenders, and   providing for different interest rates and fees and voluntary prepayments, in   each case subject to terms and conditions usual and customary for facilities   and transactions of this type.
    
	
 
    	
 
    	
 
    
	
Replacement of Lenders:
    	
 
    	
The ABL Facility   Documents shall contain customary provisions for replacing, through an assignment   at par or through repayment at par:
    

 

Exhibit C-19

 

	
 
    	
 
    	
(i) non-consenting   Lenders in connection with amendments and waivers requiring the consent of   all Lenders or of all Lenders directly and adversely affected thereby so long   as the Required Lenders shall have consented thereto, (ii) Lenders invoking   yield protection provisions and (iii) defaulting Lenders.
    
	
 
    	
 
    	
 
    
	
Governing Law and Forum:
    	
 
    	
New York.
    
	
 
    	
 
    	
 
    
	
Counsel to the Arrangers,   Administrative Agent and the Collateral Agent:
    	
 
    	
Morgan,   Lewis & Bockius LLP.
    

 

Exhibit C-20

 

Exhibit D

 

Project Warrior
 Summary of Conditions Precedent to the Facilities1

 

The availability of the Facilities is subject to the following conditions precedent:

 

1.                                    Concurrent Transactions:  The Acquisition shall have been consummated or will be consummated substantially concurrently with the initial funding under the Facilities in accordance with the Acquisition Agreement without giving effect to any amendments, modifications, supplements, consents or waivers by the Company thereto, if such amendments, modifications, supplements, consents or waivers by the Company of any term thereof are materially adverse to any interest of the Commitment Parties or the Lenders (it being understood that (i) any amendment, modification, supplement, consent or waiver by the Company to the definition of “Material Adverse Effect” or the “Xerox” provisions in Sections 8.5(b), 8.6, 8.11, the last sentence of 8.12 and the last sentence of 8.14 of the Acquisition Agreement shall be deemed to be materially adverse and (ii) any amendment, modification, supplement, consent or waiver by the Company that results in a decrease of up to 15% of the Cash Consideration (as defined in the Acquisition Agreement) shall not be deemed to be materially adverse so long as the Term Facility is reduced on a dollar-for-dollar basis by the amount of any such decrease) will be made or granted without the prior written consent of the Commitment Parties.  Notwithstanding anything to the contrary herein, the commitments in respect of the Term Facility and the borrowings under the ABL Facility on the Closing Date (without a permanent reduction in the ABL Facility commitments) shall be reduced on a pro rata basis in an aggregate principal amount equal to the net cash proceeds received by the Company and the Target on or prior to the Closing Date from any and all sales of Divested Properties (as defined in Exhibit B) where the aggregate proceeds exceed $15 million, solely to the extent required to cause the Senior Secured Net Leverage Ratio, after giving effect to such sales of Divested Properties, to be less than or equal to 2.00 to 1.00 as of the Closing Date; provided that, in any event, the reduction of the commitments as between the Term Facility and the ABL Facility shall be reallocated to the extent Excess Availability (as defined in Exhibit C) is less than $1,000 million as of the Closing Date after giving effect to such sale of Divested Properties and such commitment reductions.

 

2.                                    Historical Financial Statements.  The Arrangers shall have received (i) audited consolidated financial statements of the Company and its consolidated subsidiaries consisting of audited consolidated balance sheets as of the last date of each of the three fiscal years of the Company and its consolidated subsidiaries ended at least 90 days prior to the Closing Date and audited consolidated income statements and statements of stockholders’ equity and cash flows for each of the three fiscal years of the Company ended at least 90 days prior to the Closing Date, (ii) audited consolidated financial statements of the Target and its consolidated subsidiaries consisting of audited consolidated balance sheets as of the last date of each of the three fiscal years of the Target and its consolidated subsidiaries ended at least 90 days prior to the Closing Date and audited consolidated income statements and statements of stockholders’ equity and cash flows for each of the fiscal years of the Target and its consolidated subsidiaries for each of the three fiscal years of the Target ended at least 90 days prior to the Closing Date, (iii) unaudited interim consolidated financial statements of the Company and its consolidated subsidiaries consisting of

 

 

1                        Capitalized terms used in this Exhibit D shall have the meanings set forth in the other Exhibits attached to the Commitment Letter to which this Exhibit D is attached (the “Commitment Letter”). In the case of any such capitalized term that is subject to multiple and differing definitions, the appropriate meaning thereof in this Exhibit D shall be determined by reference to the context in which it is used.

 

Exhibit D-1

 

unaudited interim consolidated balance sheets and unaudited interim consolidated income statements and statements of cash flows of the Company and its consolidated subsidiaries as of the last day of, and for the most recently completed fiscal quarter (other than the fourth fiscal quarter) of, the Company and its consolidated subsidiaries ended after the last fiscal year for which financial statements have been provided pursuant to clause (i) above and ended at least 45 days before the Closing Date (other than the fourth fiscal quarter) and (iv) unaudited interim consolidated financial statements of the Target and its consolidated subsidiaries consisting of unaudited interim consolidated balance sheets and unaudited interim consolidated income statements and statements of cash flows of the Target and its consolidated subsidiaries as of the last day of, and for the most recently completed fiscal quarter (other than the fourth fiscal quarter) of, the Target and its consolidated subsidiaries ended after the last fiscal year for which financial statements have been provided pursuant to clause (i) above and ended at least 45 days before the Closing Date (other than the fourth fiscal quarter).

 

3.                                    Pro Forma Financial Statements.  The Arrangers shall have received a pro forma consolidated balance sheet and related pro forma consolidated statement of income of the Company as of, and for the twelve-month period ending on, the last day of the most recently completed four-fiscal quarter period for which the latest financial information pursuant to paragraph 2(i) and (iii) above has been delivered, prepared after giving effect to the Transactions as if the Transactions had occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of such income statements) which need not be prepared in compliance with Regulation S-X of the Securities Act of 1933, as amended, or include adjustments for purchase accounting (including adjustments of the type contemplated by Financial Accounting Standards Board Accounting Standards Codification 805, Business Combinations (formerly SFAS 141R)).

 

4.                                    Payment of Fees and Expenses.  The Company shall have paid, or will substantially simultaneously with the initial borrowing under the Facilities pay, all fees and reasonable expenses (including, without limitation, legal fees and expenses) of the Arrangers, the Administrative Agents, the Collateral Agents and the Lenders as and to the extent (a) required pursuant to the terms of this Commitment Letter or the Fee Letter and (b) invoiced to the Company at least two business days prior to the Closing Date (which amounts may be offset against the proceeds of the Facilities).

 

5.                                    Definitive Documents; Customary Closing Conditions.  Subject in all respects to the Limited Conditionality Provisions and the Documentation Principles, (a) with respect to the Term Facility (i) the Term Loan Documents (including, for the avoidance of doubt, the credit agreement, guarantees, security agreements, intercreditor agreements and other related definitive documents), which shall be in accordance with the terms set forth in the Commitment Letter, the Term Loan Term Sheet (as modified to reflect any exercise of the “Market Flex” provisions under the Fee Letter) and the Documentation Principles (as defined in the Term Facility Term Sheet)) shall have been executed and delivered by the Borrower and each Guarantor (provided that the Target and its subsidiaries to the extent required to become Guarantors shall only be required to execute and deliver such documentation after the effectiveness of, but substantially concurrently with, the Acquisition) and (ii) the Company shall have delivered the following other customary closing deliverables with respect to the Borrower and the Guarantors with respect to the Term Facility: (A) customary officer’s closing and secretary certificates, legal opinions (in each relevant jurisdiction), corporate authority or organizational documents, good standing certificates in jurisdictions of formation/organization, and officer’s certificates evidencing authority and (B) a solvency certificate, dated as of the Closing Date and after giving effect to the Transactions, substantially in the form of Annex I attached to this Exhibit D, of the chief financial officer of the Company and (b) with respect to the ABL Facility (i) the ABL Loan Documents (including, for

 

Exhibit D-2

 

the avoidance of doubt, the credit agreement, guarantees, security agreements, intercreditor agreements and other related definitive documents), which shall be in accordance with the terms set forth in the Commitment Letter, the ABL Facility Term Sheet (as modified to reflect any exercise of the “Market Flex” provisions under the Fee Letter) and the Documentation Principles (as defined in the ABL Facility Term Sheet)) shall have been executed and delivered by the Borrowers and each Guarantor (provided that the Target and its subsidiaries to the extent required to become Borrowers and Guarantors shall only be required to execute and deliver such documentation after the effectiveness of, but substantially concurrently with, the Acquisition) and (ii) the Company shall have delivered the following other customary closing deliverables with respect to the Borrowers and the Guarantors with respect to the ABL Facility: (A) customary officer’s closing and secretary certificates, legal opinions (in each relevant jurisdiction), corporate authority or organizational documents, good standing certificates in jurisdictions of formation/organization, and officer’s certificates evidencing authority and (B) a solvency certificate, dated as of the Closing Date and after giving effect to the Transactions, substantially in the form of Annex I attached to this Exhibit D, of the chief financial officer of the Company.

 

6.                                    Refinancings.  The Refinancings shall have been consummated, or substantially simultaneously with the initial borrowing under the Facilities, shall be consummated.

 

7.                                    Liens.  Subject in all respects to the Limited Conditionality Provisions and the Documentation Principles, (a) with respect to the Term Facility, all documents and instruments required to create and perfect the Term Facility Collateral Agent’s security interest in the Collateral (as defined in Exhibit B) shall have been executed and delivered and, if applicable, be in proper form for filing and (b) with respect to the ABL Facility, all documents and instruments required to create and perfect the ABL Facility Collateral Agent’s security interest in the Collateral (as defined in Exhibit C) shall have been executed and delivered and, if applicable, be in proper form for filing.

 

8.                                    Patriot Act.  Each Commitment Party shall have received, at least three business days prior to the Closing Date, all documentation and other information about the Loan Parties that the Commitment Parties have reasonably determined is required by bank regulatory authorities under applicable “know-your-customer” and anti-money laundering rules and regulations, including the Patriot Act, and that was reasonably requested from the Company in writing at least 10 business days prior to the Closing Date.

 

9.                                    Marketing Period. The Arrangers shall have been afforded a marketing period of at least 15 consecutive business days prior to the Closing Date commencing with the delivery of such information as is requested by the Arrangers and customarily delivered by a borrower and necessary for the preparation of a customary confidential information memorandum with respect to the Facilities; provided that, for purposes of determining the marketing period, such period shall (i) either end on or prior to August 21, 2015 or, if such period has not ended on or prior to August 21, 2015, then such period shall commence no earlier than September 8, 2015 and (ii) either end on or prior to December 18, 2015 or, if such period has not ended on or prior to December 18, 2015, then such period shall commence no earlier than January 4, 2016; provided, further, that such period of consecutive business days will not be required to be consecutive if it would include July 3, 2015 or November 25, 2015 through November 27, 2015 (and such dates shall be excluded for purposes of determining consecutive business days).  If the Company in good faith reasonably believes it has delivered the information requested by the Arrangers in accordance with the preceding sentence for use in the confidential information memorandum, it may deliver to the Arrangers a written notice to that effect, in which case the confidential information memorandum will be deemed to have been delivered on the date such notice is received by the Arrangers, and the 15 consecutive business day period referred to above will be

 

Exhibit D-3

 

deemed to have commenced on the date such notice is received by the Arrangers, in each case, unless the Arrangers in good faith reasonably believe that the Company has not completed delivery of the information requested by the Arrangers in accordance with the preceding sentence for use in the confidential information memorandum and, within two business days after the receipt of such notice from the Company, the Arrangers deliver a written notice to the Company to that effect (stating with reasonable specificity which information required to be included in the confidential information memorandum has not been delivered).

 

10.                            Representations and Warranties.  (a) To the extent that the Company or its subsidiaries have the right (taking into account any applicable cure periods) to terminate its or their obligations under the Acquisition Agreement or decline to consummate the transactions thereunder as a result of a breach of such representations in the Acquisition Agreement, the Acquisition Agreement Representations shall be true and correct on the Closing Date, except to the extent that any such representation or warranty is stated to relate solely to an earlier date, in which case such representation or warranty shall be true and correct on and as of such earlier date and (b) the Specified Representations shall be true and correct in all material respects (provided that Specified Representations already qualified by materiality or material adverse effect shall be true and correct in all respects) on the Closing Date, except to the extent that any such representation or warranty is stated to relate solely to an earlier date, in which case such representation or warranty shall be true and correct in all material respects on and as of such earlier date.

 

11.                            Field Exams, Appraisals; Receipt of Borrowing Base Certificate; Projections; Minimum Excess Availability.  With respect to the ABL Facility, (i) the Company and its subsidiaries shall have used their commercially reasonable efforts, and the Company shall have used its commercially reasonable efforts to cause the Target and its subsidiaries to use their commercially reasonable efforts, to deliver to the Arrangers an appraisal and field exam from a third party appraiser reasonably acceptable to the Arrangers, in each case, with respect to the Loan Parties and the Borrowing Base (provided that, neither the delivery nor the substance of any such appraisal or field audit is a condition to the initial availability of the ABL Facility on the Closing Date), (ii) the Arrangers shall have received (x) a Borrowing Base certificate (similar in format to the certificate under the Existing Credit Facility) prepared as of the last day of the most recent month ending at least 20 calendar days prior to the Closing Date and (y) projections prepared in good faith by the Company and based upon reasonable assumptions showing Availability and Excess Availability during the 12-month period following the Closing Date and (iii) after giving effect to the Transactions on the Closing Date (including the loans and other extensions of credit made under the ABL Facility on the Closing Date) and including the assets of the Target and its subsidiaries in the Borrowing Base, pro forma Excess Availability shall be not less than $750,000,000.

 

Exhibit D-4

 

Annex I to Exhibit D

 

Form of Solvency Certificate

 

To the Administrative Agent and each of the Lenders party to the Credit Agreement referred to below:

 

I, the undersigned, the Chief Financial Officer of [Borrower], a corporation organized under the laws of the State of Delaware (the “Borrower”), in that capacity only and not in my individual capacity (and without personal liability), do hereby certify as of the date hereof, and based upon (i) facts and circumstances as they exist as of the date hereof (and disclaiming any responsibility for changes in such fact and circumstances after the date hereof) and (ii) such materials and information as I have deemed relevant to the determination of the matters set forth in this certificate, that:

 

1.                                    This certificate is furnished to the Administrative Agent and the Lenders pursuant to Section [      ] of the [ABL] [Term Loan] Credit Agreement, dated as of        , among [        ] (the “Credit Agreement”). Unless otherwise defined herein, capitalized terms used in this certificate shall have the meanings set forth in the Credit Agreement.

 

2.                                    For purposes of this certificate, the terms below shall have the following definitions:

 

(a)                               “Fair Value”

 

The amount at which the assets (both tangible and intangible), in their entirety, of the Borrower and its restricted subsidiaries taken as a whole would change hands between a willing buyer and a willing seller, within a commercially reasonable period of time, each having reasonable knowledge of the relevant facts, with neither being under any compulsion to act.

 

(b)                              “Present Fair Salable Value”

 

The aggregate amount of net consideration that could be expected to be realized from an interested purchaser by a seller, in an arm’s length transaction under present conditions in a current market for the sale of assets of a comparable business enterprise, where both parties are aware of all relevant facts and neither party is under any compulsion to act, where such seller is interested in disposing of an entire operation as a going concern, presuming the business will be continued, in its present form and character, and with reasonable promptness, not to exceed one year.

 

(c)                               “Stated Liabilities”

 

The recorded liabilities (including contingent liabilities that would be recorded in accordance with GAAP) of the Borrower and its restricted subsidiaries taken as a whole, as of the date hereof after giving effect to the consummation of the Transactions (including the execution and delivery of the Credit Agreement, the making of the loans under the Credit Agreement and the use of proceeds of such loans on the date hereof), determined in accordance with GAAP consistently applied.

 

(d)                              “Identified Contingent Liabilities”

 

The maximum estimated amount of liabilities reasonably likely to result from pending litigation, asserted claims and assessments, guaranties, uninsured risks and other contingent liabilities of the Borrower and its restricted subsidiaries taken as a whole after giving effect to the Transactions (including the execution and delivery of the Credit Agreement, the making of the loans under the Credit

 

Exhibit D-I-1

 

Agreement and the use of proceeds of such loans on the date hereof) (including all fees and expenses related thereto but exclusive of such contingent liabilities to the extent reflected in Stated Liabilities), as identified and explained in terms of their nature and estimated magnitude by responsible officers of the Borrower.

 

(e)                               “Can pay their Stated Liabilities and Identified Contingent Liabilities as they mature”

 

Borrower and its restricted subsidiaries taken as a whole after giving effect to the Transactions (including the execution and delivery of the Credit Agreement, the making of the loans under the Credit Agreement and the use of proceeds of such loans on the date hereof) have sufficient assets and cash flow to pay their respective Stated Liabilities and Identified Contingent Liabilities as those liabilities mature or (in the case of contingent liabilities) otherwise become payable.

 

(f)                                “Do not have Unreasonably Small Capital”

 

Borrower and its restricted subsidiaries taken as a whole after giving effect to the Transactions (including the execution and delivery of the Credit Agreement, the making of the loans under the Credit Agreement and the use of proceeds of such loans on the date hereof) have sufficient capital to ensure that it is a going concern.

 

3.                                    For purposes of this certificate, I, or officers of Borrower under my direction and supervision, have performed the following procedures as of and for the periods set forth below.

 

(a)                               I have reviewed the financial statements (including the pro forma financial statements) referred to in Section [   ] of the Credit Agreement.

 

(b)                              I have knowledge of and have reviewed to my satisfaction the Credit Agreement.

 

(c)                               As chief financial officer of Borrower, I am familiar with the financial condition of Borrower and its restricted subsidiaries.

 

4.                                    Based on and subject to the foregoing, I hereby certify on behalf of Borrower that after giving effect to the consummation of the Transactions (including the execution and delivery of the Credit Agreement, the making of the loans under the Credit Agreement and the [ABL] [Term Loan] Credit Agreement and the use of proceeds of such loans on the date hereof), it is my opinion that (i) each of the Fair Value and the Present Fair Salable Value of the assets of Borrower and its restricted subsidiaries taken as a whole exceed their Stated Liabilities and Identified Contingent Liabilities; (ii) Borrower and its restricted subsidiaries taken as a whole do not have Unreasonably Small Capital; and (iii) Borrower and its restricted subsidiaries taken as a whole can pay their Stated Liabilities and Identified Contingent Liabilities as they mature.

 

Exhibit D-I-2

 

IN WITNESS WHEREOF, Borrower has caused this certificate to be executed on its behalf by its Chief Financial Officer this [  ] day of [              ].

 

	
 
    	
[                                                              ]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title: Chief Financial   Officer
    

 

Exhibit D-I-3Exhibit 10.1

 

February 3, 2015

 

Mr. Sebastian Giordano

149 Schweitzer Lane

Bardonia, NY 10954

 

Dear Sebastian,

 

This letter agreement
(this “Agreement”) is being entered into to amend the terms of that certain Letter Agreement between WPCS International
Incorporated (“WPCS” or the “Company”) and you, dated July 19, 2013, and effective as of
August 1, 2013 (the “Letter”), pursuant to which you agreed to serve as the Interim Chief Executive Officer
of the Company on a part-time basis. The purpose of this Agreement is to adjust the compensation paid to you by WPCS pursuant to
the Letter.

 

In connection with
your service as the Company’s interim Chief Executive Officer, the monthly consulting fee of $10,833 provided for in the
Letter is hereby deleted and replaced with a base salary of $180,000 per annum (the “Base Salary”), effective
as of January 1, 2015, payable in installments in accordance with the normal payroll policies of the Company in effect from time
to time, including those relating to the withholding of taxes.

 

In addition to the
Base Salary, the Company will also grant you 300,000 performance-vested stock options under the Company’s 2014 Equity Incentive
Plan, subject to the terms and conditions of award agreements to be entered into between you and the Company. 150,000 of these
options will vest if the Company completes an acquisition resulting in combined revenue of at least $30 million by July 31, 2016.
The remaining 150,000 options will vest if shares of the Company’s common stock trade at or above $1.00 for 20 out of 30
consecutive trading days (the “Trading Goal”) by July 31, 2016. The Trading Goal must be achieved without any
changes or adjustments to the Company’s capital structure (i.e., without a reverse stock split or similar adjustment).

 

The remaining terms
and conditions of the Letter will remain in full force and effect.

 

Please indicate your
acceptance of the revised terms of the Letter by signing and returning a copy of this Agreement at your earliest convenience.

	 	Sincerely,
	 	 	 
	 	WPCS INTERNATIONAL INCORPORATED
	 	 	 
	 	 	 
	 	By:	/s/ Charles Benton
	 	Name:	Charles Benton
	 	Title: 	Chairman of the Executive Committee

 

	Accepted and Agreed:	 
	 	 
	 	 
	/s/ Sebastian Giordano	 
	Sebastian Giordano

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