Document:

Exhibit10.3_AmendedandRestatedABLCreditAgreement

Exhibit 10.3

FIRST AMENDED AND RESTATED REVOLVING CREDIT AND GUARANTY AGREEMENT
dated as of March 3, 2014

among

XERIUM TECHNOLOGIES, INC.,  
as US Borrower,

XERIUM CANADA INC., 
as Canadian Borrower,

HUYCK.WANGNER GERMANY GMBH, ROBEC WALZEN GMBH AND STOWE WOODWARD AKTIENGESELLSCHAFT, as European Borrowers,

CERTAIN SUBSIDIARIES OF XERIUM TECHNOLOGIES, INC.,  
as US Guarantors,

XERIUM TECHNOLOGIES, INC., XERIUM CANADA INC., XERIUM TECHNOLOGIES LTD AND XERIUM GERMANY HOLDING GMBH,  
as European Guarantors,

VARIOUS LENDERS,

PNC BANK, NATIONAL ASSOCIATION, 
as Administrative Agent and Collateral Agent

and

JPMORGAN CHASE BANK, N.A., 
as European Administrative Agent and European Collateral Agent
___________________________________________________________
___________________________________________________________

TABLE OF CONTENTS
	
				
	 
	 
	 
	Page

	SECTION 1.
	 
	DEFINITIONS AND INTERPRETATION
	1

	1.1
	 
	Definitions
	2

	1.2
	 
	Accounting Terms
	59

	1.3
	 
	Interpretation, etc.
	60

	1.4
	 
	Certain Calculations
	61

	1.5
	 
	Currency Matters
	62

	 
	 
	 
	 

	SECTION 2.
	 
	ADVANCES, PAYMENTS
	62

	2.1
	 
	Revolving Advances
	62

	2.2
	 
	Procedures for Requesting Revolving Advances; Procedures for Selection of Applicable Interest Rates for Revolving Advances
	63

	2.3
	 
	Swing Loans
	66

	2.4
	 
	Disbursement of Advance Proceeds
	67

	2.5
	 
	Making and Settlement of Advances
	68

	2.6
	 
	Maximum Advances and Repayments
	70

	2.7
	 
	Manner and Repayment of Advances
	71

	2.8
	 
	[Reserved]
	74

	2.9
	 
	Statement of Account
	74

	2.10
	 
	Letters of Credit
	75

	2.11
	 
	Issuance of Letters of Credit
	76

	2.12
	 
	Requirements For Issuance of Letters of Credit
	76

	2.13
	 
	Disbursements, Reimbursement
	77

	2.14
	 
	Repayment of Participation Advances
	78

	2.15
	 
	Documentation
	79

	2.16
	 
	Determination to Honor Drawing Request
	79

	2.17
	 
	Nature of Participation and Reimbursement Obligations
	79

	2.18
	 
	Liability for Acts and Omissions
	81

	2.19
	 
	Use of Proceeds
	82

	2.20
	 
	Defaulting Lender
	82

	2.21
	 
	Payment of Obligations
	85

	2.22
	 
	Increase in Maximum Credit
	85

	2.23
	 
	Interest
	88

	2.24
	 
	Letter of Credit Fees
	89

	2.25
	 
	Unused Line Fee
	90

	2.26
	 
	Computation of Interest and Fees
	91

	2.27
	 
	Basis for Determining Interest Rate Inadequate or Unfair
	91

	2.28
	 
	Increased Costs; Capital Adequacy
	92

	2.29
	 
	Taxes; Withholding, etc.
	93

	2.30
	 
	Obligation to Mitigate
	96

	2.31
	 
	Tax Refund
	97

	 
	 
	 
	 

i

	
				
	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	2.32
	 
	Removal or Replacement of a Lender
	97

	2.33
	 
	Currency Indemnity
	97

	2.34
	 
	Protective Advances
	98

	 
	 
	 
	 

	SECTION 3.
	 
	CONDITIONS PRECEDENT
	99

	3.1
	 
	Conditions to Closing Date
	99

	3.2
	 
	Conditions to Each Credit Extension
	103

	 
	 
	 
	 

	SECTION 4.
	 
	REPRESENTATIONS AND WARRANTIES
	104

	4.1
	 
	Organization; Requisite Power and Authority; Qualification
	104

	4.2
	 
	Capital Stock and Ownership
	104

	4.3
	 
	Due Authorization
	104

	4.4
	 
	No Conflict
	104

	4.5
	 
	Governmental Consents
	105

	4.6
	 
	Binding Obligation
	105

	4.7
	 
	Historical Financial Statements
	105

	4.8
	 
	Business Plan
	106

	4.9
	 
	No Material Adverse Change
	106

	4.10
	 
	Use of Proceeds
	106

	4.11
	 
	Adverse Proceedings, etc.
	106

	4.12
	 
	Payment of Taxes
	106

	4.13
	 
	Properties
	106

	4.14
	 
	Environmental Matters
	107

	4.15
	 
	No Defaults
	107

	4.16
	 
	Material Contracts
	107

	4.17
	 
	Governmental Regulation
	108

	4.18
	 
	Margin Stock
	108

	4.19
	 
	Employee Matters
	108

	4.20
	 
	Employee Benefit Plans
	108

	4.21
	 
	Certain Fees
	109

	4.22
	 
	Solvency
	109

	4.23
	 
	Anti-Money Laundering/International Trade Law Compliance
	109

	4.24
	 
	Compliance with Statutes, etc.
	110

	4.25
	 
	Disclosure
	110

	4.26
	 
	Insurance
	110

	4.27
	 
	Borrowing Base Certificate
	110

	4.28
	 
	Centre of Main Interest and Establishments
	110

	 
	 
	 
	 

	SECTION 5.
	 
	AFFIRMATIVE COVENANTS
	110

ii

	
				
	5.1
	 
	Financial Statements and Other Reports
	110

	5.2
	 
	Existence
	115

	5.3
	 
	Payment of Taxes and Claims
	115

	5.4
	 
	Maintenance of Properties
	115

	5.5
	 
	Insurance
	116

	5.6
	 
	Books and Records, Inspections
	116

	5.7
	 
	Compliance with Laws; SEC Filings
	116

	5.8
	 
	Use of Proceeds
	117

	5.9
	 
	Environmental
	117

	5.10
	 
	Additional Collateral and Guarantees
	118

	5.11
	 
	Additional Material Real Estate Assets
	119

	5.12
	 
	Deposit Accounts; Securities Accounts
	120

	5.13
	 
	Further Assurances
	121

	5.14
	 
	Intellectual Property
	122

	5.15
	 
	Know-Your-Customer Rules
	122

	5.16
	 
	Pari Passu Ranking
	123

	5.17
	 
	Post-Closing Matters
	123

	5.18
	 
	Performance Obligation
	123

	5.19
	 
	Borrowing Base and Related Matters
	123

	5.20
	 
	European Accounts
	125

	 
	 
	 
	 

	SECTION 6.
	 
	NEGATIVE COVENANTS
	126

	6.1
	 
	Indebtedness
	126

	6.2
	 
	Liens
	129

	6.3
	 
	Fiscal Year
	131

	6.4
	 
	No Further Negative Pledges
	131

	6.5
	 
	Restricted Payments
	132

	6.6
	 
	Restrictions on Subsidiary Distributions
	133

	6.7
	 
	Investments
	133

	6.8
	 
	Maximum Consolidated Capital Expenditures
	135

	6.9
	 
	Fundamental Changes; Disposition of Assets; Acquisitions
	136

	6.10
	 
	Disposal of Subsidiary Interests
	137

	6.11
	 
	Sales and Lease Backs
	137

	6.12
	 
	Transactions with Shareholders and Affiliates
	137

	6.13
	 
	Conduct of Business
	137

	6.14
	 
	Anti-Money Laundering/International Trade Law Compliance
	138

	6.15
	 
	Amendments or Waivers to Organizational Documents
	138

	6.16
	 
	Amendments or Waivers to Certain Indebtedness
	138

	6.17
	 
	Springing Financial Covenant
	138

	6.18
	 
	Limitations on Voluntary Prepayments of Term Loans
	138

	 
	 
	 
	 

	SECTION 7.
	 
	GUARANTY
	139

iii

	
				
	7.1
	 
	Guaranty of the Obligations
	139

	7.2
	 
	Contribution by Guarantors
	139

	7.3
	 
	Payment by Guarantors
	140

	7.4
	 
	Liability of Guarantors Absolute
	141

	7.5
	 
	Waivers by Guarantors
	143

	7.6
	 
	Guarantors' Rights of Subrogation, Contribution, etc.
	144

	7.7
	 
	Subordination of Other Obligations
	144

	7.8
	 
	Continuing Guaranty
	145

	7.9
	 
	Authority of Guarantors or Borrowers
	145

	7.10
	 
	Financial Condition of Each Borrower
	145

	7.11
	 
	Bankruptcy, etc.
	145

	7.12
	 
	Discharge of Guaranty Upon Sale of Guarantor
	146

	7.13
	 
	Validity and Effectiveness
	146

	7.14
	 
	Keepwell
	146

	7.15
	 
	Limitation of Enforcement
	147

	 
	 
	 
	 

	SECTION 8.
	 
	EVENTS OF DEFAULT
	149

	8.1
	 
	Events of Default
	149

	 
	 
	 
	 

	SECTION 9.
	 
	AGENTS
	152

	9.1
	 
	Appointment of Agents
	152

	9.2
	 
	Nature of Duties
	153

	9.3
	 
	German Collateral Matters
	153

	9.4
	 
	Parallel Debt
	155

	9.5
	 
	Lack of Reliance on Agent
	156

	9.6
	 
	Resignation of Agent; Successor Agent
	156

	9.7
	 
	Certain Rights of Agent
	157

	9.8
	 
	Reliance 
	157

	9.9
	 
	Notice of Default
	157

	9.10
	 
	Indemnification
	158

	9.11
	 
	Agent in its Individual Capacity
	158

	9.12
	 
	Delivery of Documents
	158

	9.13
	 
	Borrowers' Undertaking to Agents
	158

	9.14
	 
	No Reliance on Agents' Customer Identification Program
	158

	9.15
	 
	Other Agreements
	159

	9.16
	 
	Appointment for English Law
	159

	9.17
	 
	Intercreditor Agreement
	160

	9.18
	 
	Québec Collateral Documents
	160

	 
	 
	 
	 

	SECTION 10.
	 
	MISCELLANEOUS
	160

	10.1
	 
	Notices
	161

	10.2
	 
	Expenses
	162

iv

	
				
	10.3
	 
	Indemnity
	162

	10.4
	 
	Set Off
	163

	10.5
	 
	Amendments and Waivers
	163

	10.6
	 
	Successors and Assigns; Participations
	165

	10.7
	 
	Independence of Covenants
	170

	10.8
	 
	Survival of Representations, Warranties and Agreements
	170

	10.9
	 
	No Waiver; Remedies Cumulative
	170

	10.10
	 
	Marshalling; Payments Set Aside
	170

	10.11
	 
	Severability 
	171

	10.12
	 
	Obligations Several
	171

	10.13
	 
	Headings
	171

	10.14
	 
	APPLICABLE LAW
	171

	10.15
	 
	CONSENT TO JURISDICTION AND SERVICE OF PROCESS
	171

	10.16
	 
	WAIVER OF JURY TRIAL
	172

	10.17
	 
	Confidentiality 
	172

	10.18
	 
	Usury Savings Clause
	173

	10.19
	 
	Counterparts
	173

	10.20
	 
	Effective Date
	174

	10.21
	 
	USA Patriot Act Notice
	174

	10.22
	 
	No Setoffs and Defenses
	174

	10.23
	 
	Entire Agreement
	174

	10.24
	 
	Borrowing Agency Provisions
	174

	10.25
	 
	Nature of Borrowers Obligations
	176

	10.26
	 
	Designation of Debt for Purposes of the Senior Notes Indenture
	176

	10.27
	 
	Québec Interpretation Matters
	176

	10.28
	 
	English Language
	176

	10.29
	 
	Amendment and Restatement
	177

	10.30
	 
	CAM Exchange
	177

	10.31
	 
	Closing Date Allocation
	178

v

APPENDICES:
A    Initial Revolving Commitments
B    Notice Addresses

SCHEDULES:
1.1(a)    Factoring Agreements
1.1(b)    Guarantors
4.1    Jurisdictions of Organization
4.2    Capital Stock and Ownership
4.13(b)    Real Estate Assets
4.14    Environmental Matters
4.16    Material Contracts
5.17    Post-Closing Matters
6.1(i)    Certain Indebtedness
6.2(l)    Certain Liens
6.7(i)    Certain Investments
6.12    Certain Affiliate Transactions
EXHIBITS:
A-1    US Borrower Revolving Credit Note
A-2    Canadian Borrower Revolving Credit Note
A-3    US Swing Loan Note
A-4    Canadian Swing Loan Note
A-5    European Borrower Revolving Credit Note
A-6    European Swing Loan Note
B    Compliance Certificate
C    Commitment Transfer Supplement
D    Certificate Re Non-Bank Status
E    Closing Date Certificate
F    Counterpart Agreement
G-1    US Pledge and Security Agreement
G-2    Canadian Pledge and Security Agreement
G-3    European Collateral Documents
H    Mortgage
I    Landlord Personal Property Collateral Access Agreement
J    Affiliate Subordination Agreement
K    Solvency Certificate
L    Intercreditor Agreement
M-1    Borrowing Base Certificate (Domestic)
M-2    Borrowing Base Certificate (European)

vi

FIRST AMENDED AND RESTATED REVOLVING CREDIT AND GUARANTY AGREEMENT
This FIRST AMENDED AND RESTATED REVOLVING CREDIT AND GUARANTY AGREEMENT, dated as of March 3, 2014, is entered into by and among XERIUM TECHNOLOGIES, INC., a Delaware corporation (the “Lead Borrower”), any Subsidiary of the Lead Borrower organized or formed under the laws of the United States that at any time after the date hereof becomes a US Borrower in accordance with the terms hereof (each a “US Borrower” and, together with the Lead Borrower, the “US Borrowers”), XERIUM CANADA INC., a corporation organized under the laws of the Province of New Brunswick (“Xerium Canada”), and any other Subsidiary of the Lead Borrower organized or formed under the laws of Canada or any province or territory thereof that at any time after the date hereof becomes a Canadian Borrower in accordance with the terms hereof (each a “Canadian Borrower” and, together with Xerium Canada, the “Canadian Borrowers”), HUYCK. WANGNER GERMANY GMBH, a limited liability company (Gesellschaft mit beschränkter Haftung) organized under the laws of Germany and registered with the commercial register (Handelsregister) of the local court (Amtsgericht) Stuttgart under registration number HRB 353855 (the “European Lead Borrower”), ROBEC WALZEN GMBH, a limited liability company (Gesellschaft mit beschränkter Haftung) organized under the laws of Germany and registered with the commercial register (Handelsregister) of the local court (Amtsgericht) Düren under registration number HRB 2867 (“Robec Germany”), STOWE WOODWARD AKTIENGESELLSCHAFT, a stock corporation (Aktiengesellschaft) organized under the laws of Germany and registered with the commercial register (Handelsregister) of the local court (Amtsgericht) Düren under registration number HRB 2635 (“Stowe Germany”), (European Lead Borrower, Robec Germany and Stowe Germany are each a “European Borrower” and collectively, the “European Borrowers”; and the European Borrowers, together with the US Borrowers and the Canadian Borrowers, collectively, the “Borrowers”), CERTAIN SUBSIDIARIES OF THE LEAD BORROWER, as Guarantors, the Lenders party hereto from time to time, PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent (together with its permitted successors, in such capacity, “Administrative Agent”) and as Collateral Agent (together with its permitted successors, in such capacity, “Collateral Agent”) and JPMORGAN CHASE BANK, N.A., as European Administrative Agent (together with its permitted successors, in such capacity, “European Administrative Agent”) and as European Collateral Agent (together with its permitted successors, in such capacity, “European Collateral Agent”). 
RECITALS:
WHEREAS, capitalized terms used in these Recitals and not otherwise defined herein shall have the respective meanings set forth for such terms in Section 1.1 hereof;
WHEREAS, the Lead Borrower, the Canadian Borrower, certain of the Guarantors, certain of the Lenders, the Administrative Agent and the Collateral Agent entered into that certain Revolving Credit and Guaranty Agreement, dated May 17, 2013 (the “Original Closing Date”) (as amended, modified or supplemented prior to the date hereof (the “Existing Credit Agreement”); and
WHEREAS, the Borrowers, the Guarantors, the Lenders, the Administrative Agent, the Collateral Agent, the European Administrative Agent and the European Collateral Agent desire to amend and restate the Existing Credit Agreement, pursuant to the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, the parties hereto agree as follows:
SECTION 1.DEFINITIONS AND INTERPRETATION

1

1.1    Definitions. The following terms used herein, including in the preamble, recitals, exhibits and schedules hereto, shall have the following meanings:
“90-Day Global Excess Availability” means, on a given date, the quotient obtained by dividing (a) the sum of each day’s Global Excess Availability during the ninety (90) consecutive day period immediately preceding such date (or, if shorter, the period commencing on the Closing Date and ending on the day immediately preceding such date) by (b) ninety (90) (or, if applicable, the number of days (which is less than ninety (90)) from the Closing Date to the day immediately preceding such date).
“Additional Agreement” as defined in Section 9.17.
“Additional Lender” as defined in Section 2.22.
“Adjusted EBITDA” means, with respect to any Person for any period, the total of (A) the Consolidated Net Income of such Person and its Subsidiaries for such period, plus (B) without duplication, to the extent that any of the following were deducted in computing such Consolidated Net Income for such period: (i) provision for taxes based on income or profits, including, without limitation, federal, state, provincial, franchise and similar taxes, including any penalties and interest relating to any tax examinations, (ii) Consolidated Interest Expense, (iii) Consolidated Depreciation and Amortization Expense, including depreciation and amortization expenses relating to Capital Leases, (iv) reserves for inventory in connection with plant closures, (v) Consolidated Operational Restructuring Costs, (vi) non-cash charges resulting from the application of purchase accounting, including push-down accounting, (vii) non-cash expenses resulting from the granting of Common Stock, stock options, restricted stock or restricted stock unit awards under equity compensation programs solely with respect to Common Stock, and cash expenses for compensation mandatorily applied to purchase Common Stock, (viii) non-cash items relating to a change in or adoption of accounting policies, (ix) non-cash expenses relating to pension or benefit arrangements, (x) expenses incurred as a result of the repurchase, redemption or retention by the Lead Borrower of Common Stock earned under equity compensation programs solely in order to make withholding tax payments, (xi) amortization or write-offs of deferred financing costs, (xii) any non-cash losses resulting from marking to market Hedging Obligations (to the extent the cash impact resulting from such loss has not been realized in such period) and (xiii) other non-cash losses or charges (excluding, however, any non-cash loss or charge which represents an accrual of, or a reserve for, a cash disbursement in a future period), minus (C) without duplication, to the extent any of the following were included in computing Consolidated Net Income for such period, (i) non-cash gains with respect to the items described in clauses (vi), (vii), (ix), (xi), (xii) and (xiii) (other than, in the case of clause (xiii), any such gain to the extent that it represents a reversal of an accrual of, or reserve for, a cash disbursement in a future period) of clause (B) above and (ii) provisions for tax benefits based on income or profits.  Notwithstanding the foregoing, taxes paid and provision for taxes based on the income or profits of, and the Consolidated Depreciation and Amortization Expense of, a Subsidiary of such Person shall be added to Consolidated Net Income of such Person to compute Adjusted EBITDA only to the extent (and in the same proportion) that the Consolidated Net Income of such Subsidiary was included in calculating Consolidated Net Income of such Person.
“Administrative Agent” as defined in the preamble hereto.
“Advance Rates” shall mean the lending formula percentages set forth in the definitions of US Borrowing Base, Canadian Borrowing Base and European Borrowing Base.
“Advances” means and includes the Revolving Advances and Swing Loans, or any of them as the context implies.

2

“Adverse Proceeding” means any action, suit, proceeding (whether administrative, judicial or otherwise), governmental investigation or arbitration (whether or not purportedly on behalf of the Lead Borrower or any of its Subsidiaries) at law or in equity, or before or by any Governmental Authority, domestic or foreign (including any Environmental Claims), whether pending or, to the knowledge of the Lead Borrower or any of its Subsidiaries, threatened in writing against or affecting the Lead Borrower or any of its Subsidiaries or any property of the Lead Borrower or any of its Subsidiaries.
“Affected Lender” as defined in Section 2.32.
“Affiliate” means, as applied to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with, that Person.  For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlling”, “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power (i) to vote 20% or more of the Securities having ordinary voting power for the election of directors of such Person or (ii) to direct or cause the direction of the management and policies of that Person, whether through the ownership of voting securities or by contract or otherwise.
“Affiliate Lender” means American Securities LLC, on behalf of its affiliated funds and Carl Marks Strategic Investments, L.P.
“Affiliate Subordination Agreement” means the Affiliate Subordination Agreement, dated as of the Original Closing Date, among the Credit Parties, the other Subsidiaries of the Lead Borrower from time to time party thereto and the Administrative Agent, substantially in the form of Exhibit J, as amended, supplemented or otherwise modified from time to time.
“Agent” means each of the Administrative Agent, the Collateral Agent, the European Administrative Agent and the European Collateral Agent.
“Aggregate Canadian Exposure” means, at any time, the sum of (a) the Dollar Equivalent of the aggregate principal amount of all Advances to the Canadian Borrowers outstanding at such time and (b) the Dollar Equivalent of the aggregate amount of all Canadian Letter of Credit Obligations at such time (exclusive of such Canadian Letter of Credit Obligations which are repaid with the proceeds of, and simultaneously with the incurrence of, the respective incurrence of Advances by the Canadian Borrowers).
“Aggregate Domestic Exposure” means, at any time, the sum of (a) the Aggregate US Exposure at such time, and (b) the Aggregate Canadian Exposure at such time.
“Aggregate European Exposure” means, at any time, the sum of (a) the Dollar Equivalent of the aggregate principal amount of all Advances to the European Borrowers outstanding at such time and (b) the Dollar Equivalent of the aggregate amount of all European Letter of Credit Obligations at such time (exclusive of such European Letter of Credit Obligations which are repaid with the proceeds of, and simultaneously with the incurrence of, the respective incurrence of Advances by the European Borrowers).
“Aggregate Exposure” means, at any time, the sum of (a) the Aggregate Domestic Exposure at such time and (b) the Aggregate European Exposure at such time.
“Aggregate US Exposure” means, at any time, the sum of (a) the aggregate principal amount of all Advances to the US Borrowers outstanding at such time and (b) the Dollar Equivalent of the aggregate amount of all US Letter of Credit Obligations at such time (exclusive of such US Letter of Credit Obligations 

3

which are repaid with the proceeds of, and simultaneously with the incurrence of, the respective incurrence of Advances by the US Borrowers).
“Agreement” means this First Amended and Restated Revolving Credit and Guaranty Agreement, as it may be further amended, restated, supplemented or otherwise modified from time to time.
“Alternate US Base Rate” means, for any day, a rate per annum equal to the highest of (a) the US Base Rate in effect on such day, (b) the sum of the Federal Funds Open Rate in effect on such day plus one half of one percent (0.5%), and (c) the sum of the Daily LIBOR Rate in effect on such day plus one percent (1.0%), so long as a Daily LIBOR Rate is offered, ascertainable and not unlawful.
“Anti-Terrorism Laws” means any laws relating to terrorism, trade sanctions programs and embargoes, import/export licensing, money laundering or bribery and all regulations issued thereunder (including, without limitation, Canadian Anti-Terrorism or Sanctions Laws and  the Geldwaeschebekaempfungsgesetz), all as amended, supplemented or replaced from time to time. 
“Applicable Agent” shall mean (i) with respect to matters relating to the European Facility, European Advances and European Obligations, the European Administrative Agent, (ii) with respect to matters relating to Collateral of the European Credit Parties, the European Collateral Agent and (iii) with respect to all other matters, the Administrative Agent.
“Applicable Conditions” means that each of the following conditions are satisfied at the time of each action or proposed action and immediately after giving effect thereto: (i) no Default or Event of Default has then occurred and is continuing or would result from any such action, (ii) the Fixed Charge Coverage Ratio for the period of four consecutive Fiscal Quarters most recently ended for which financial statements have been delivered to the Administrative Agent pursuant to Section 5.1(a) or (b), as applicable, would have been at least 1.10 to 1.00 (or 1.00 to 1.00 in the case of a Permitted Acquisition) on a pro forma basis immediately after giving effect to such action, (iii) Global Excess Availability and 90-Day Global Excess Availability on the date of the action or proposed action (calculated after giving effect to any Advances or Letters of Credit then being made or issued in connection with the action or proposed action (and assuming that such Advances and Letters of Credit had remained outstanding throughout the applicable 90-day period (or such shorter period, as applicable) for which 90-Day Global Excess Availability is to be determined)) exceed the greater of (x) twenty-five percent (25.0%) (or twenty (20.0%) in the case of a Permitted Acquisition) of the lesser of (A) the Maximum Credit at such time and (B) the Borrowing Base at such time and (y) $8,000,000 (or $6,000,000 in the case of a Permitted Acquisition), and (iv) the Lead Borrower shall have delivered to the Administrative Agent and the European Administrative Agent a certificate of an Authorized Officer of the Lead Borrower certifying as to compliance with preceding clauses (i) through (iii) and demonstrating (in reasonable detail) the calculations required by preceding clauses (ii) and (iii).
“Applicable Lead Borrower” shall mean (i) with respect to matters relating to the European Facility, the European Advances and the European Obligations, the European Lead Borrower, and (ii) with respect to all other matters, the Lead Borrower.
“Applicable Margin” means:
(a) with respect to any Type of Advance under the Domestic Facility, at any time:
(i)    subject to clause (ii) below, the applicable percentage (on a per annum basis) set forth in the chart below as to Domestic Rate Loans, LIBOR Rate Loans, Canadian Prime Rate Loans, BA Rate Loans and US Base Rate Loans, respectively, that will result, in 

4

accordance with such chart, if the Domestic Quarterly Average Undrawn Availability for the immediately preceding Fiscal Quarter is in an amount within the range indicated in the chart below for such percentage:
	
							
	Tier
	Domestic Quarterly Average  Undrawn Availability
	Domestic Rate Loans
	LIBOR Rate Loans
	Canadian Prime Rate Loans
	BA Rate Loans
	US Base Rate Loans

	I
	< 33.3% of the Maximum Credit
	1.25%
	2.25%
	1.25%
	2.25%
	1.25%

	II
	> 33.3% but < 66.7% of the Maximum Credit
	1.00%
	2.00%
	1.00%
	2.00%
	1.00%

	III
	> 66.7% of the Maximum Credit
	0.75%
	1.75%
	0.75%
	1.75%
	0.75%

(ii)    For the period from and including the Closing Date to but excluding the first Domestic Adjustment Date, the Applicable Margin shall be set at Tier III in the table above. Thereafter, the Applicable Margin for each Type of Advance shall be (y) adjusted as of May 1, 2014 and the first (1st) day of each Fiscal Quarter thereafter (i.e., the first (1st) day of each of July, October, January and April), based upon the Borrowing Base Certificate (and related information) delivered to the Administrative Agent, in accordance with Section 5.19(a), with respect to the months comprising the immediately preceding Fiscal Quarter (each a “Domestic Adjustment Date”), commencing with the delivery by the Lead Borrower of the Borrowing Base Certificate in each of the months comprising the Fiscal Quarter ending March 31, 2014, and (z) based upon the calculation by the Administrative Agent of Domestic Quarterly Average Undrawn Availability for such Fiscal Quarter.  In the event that any Borrowing Base Certificate (and related information) is not provided to the Administrative Agent in accordance with Section 5.19(a), the Applicable Margin for each Type of Advance shall be set at the Applicable Margin for such Type of Advance set forth in Tier I above as of the first (1st) day of the Fiscal Quarter following the month in which such Borrowing Base Certificate was required to be delivered and shall continue at Tier I for such entire Fiscal Quarter and thereafter until the next Domestic Adjustment Date, if any;
In the event that at any time after the end of a Fiscal Quarter, the Domestic Quarterly Average Undrawn Availability for such Fiscal Quarter used for the determination of the Applicable Margin is determined to have been less than the actual amount of the Domestic Quarterly Average Undrawn Availability for such Fiscal Quarter, the Applicable Margin for such prior Fiscal Quarter shall be adjusted to the applicable percentage based on such actual Domestic Quarterly Average Undrawn Availability and any additional interest for the applicable period as a result of such recalculation shall be promptly paid by the Domestic Borrowers to the Administrative Agent.  In the event that the Domestic Quarterly Average Undrawn Availability for such Fiscal Quarter used for the determination of the Applicable Margin is determined to have been greater than the actual amount of the Domestic Quarterly Average Undrawn Availability, the Applicable Margin for such prior Fiscal Quarter shall be adjusted to the applicable percentage based on such actual Domestic Quarterly Average Undrawn Availability and any reduction in interest for the applicable period as a result of such recalculation shall be credited against the next interest payment on the Advances by the applicable Borrowers. The foregoing shall not be construed to limit the rights of the Administrative 

5

Agent or the Lenders with respect to the amount of interest payable after a Default or an Event of Default, whether based on such recalculated percentage or otherwise;
AND
(b)    with respect to any Type of Advance under the European Facility, at any time:
(i)    subject to clause (ii) below, the applicable percentage (on a per annum basis) set forth in the chart below as to LIBOR Rate Loans and Overnight LIBOR Rate Loans, respectively, that will result, in accordance with such chart, if the European Quarterly Average Undrawn Availability for the immediately preceding Fiscal Quarter is in an amount within the range indicated in the chart below for such percentage:
	
				
	Tier
	European Quarterly Average  Undrawn Availability
	LIBOR Rate Loans
	Overnight LIBOR Rate Loans

	I
	< 33.3% of the Maximum Credit
	2.25%
	2.25%

	II
	> 33.3% but < 66.7% of the Maximum Credit
	2.00%
	2.00%

	III
	> 66.7% of the Maximum Credit
	1.75%
	1.75%

(ii)    For the period from and including the Closing Date to but excluding the first European Adjustment Date, the Applicable Margin shall be set at Tier III in the table above. Thereafter, the Applicable Margin for each Type of Advance shall be (y) adjusted as of May 1, 2014 and the first (1st) day of each Fiscal Quarter thereafter (i.e., the first (1st) day of each of July, October, January and April), based upon the Borrowing Base Certificate (and related information) delivered to the European Administrative Agent, in accordance with Section 5.19(a), with respect to the months comprising the immediately preceding Fiscal Quarter (each a “European Adjustment Date”), commencing with the delivery by the Lead Borrower of the Borrowing Base Certificate in each of the months comprising the Fiscal Quarter ending March 31, 2014, and (z) based upon the calculation by the European Administrative Agent of European Quarterly Average Undrawn Availability for such Fiscal Quarter.  In the event that any Borrowing Base Certificate (and related information) is not provided to the European Administrative Agent in accordance with Section 5.19(a), the Applicable Margin for each Type of Advance shall be set at the Applicable Margin for such Type of Advance set forth in Tier I above as of the first (1st) day of the Fiscal Quarter following the month in which such Borrowing Base Certificate was required to be delivered and shall continue at Tier I for such entire Fiscal Quarter and thereafter until the next European Adjustment Date, if any;
In the event that at any time after the end of a Fiscal Quarter, the European Quarterly Average Undrawn Availability for such Fiscal Quarter used for the determination of the Applicable Margin is determined to have been less than the actual amount of the European Quarterly Average Undrawn Availability for such Fiscal Quarter, the Applicable Margin for such prior Fiscal Quarter shall be adjusted to the applicable percentage based on such actual European Quarterly Average Undrawn 

6

Availability and any additional interest for the applicable period as a result of such recalculation shall be promptly paid by the European Borrowers to the European Administrative Agent.  In the event that the European Quarterly Average Undrawn Availability for such Fiscal Quarter used for the determination of the Applicable Margin is determined to have been greater than the actual amount of the European Quarterly Average Undrawn Availability, the Applicable Margin for such prior Fiscal Quarter shall be adjusted to the applicable percentage based on such actual European Quarterly Average Undrawn Availability and any reduction in interest for the applicable period as a result of such recalculation shall be credited against the next interest payment on the Advances by the applicable Borrowers. The foregoing shall not be construed to limit the rights of the European Administrative Agent or the Lenders with respect to the amount of interest payable after a Default or an Event of Default, whether based on such recalculated percentage or otherwise;
“Application Date” as defined in Section 2.7(b).
“Approved Deposit Account” means a Deposit Account that is the subject of an effective Deposit Account Control Agreement and that is maintained by any Credit Party with a Deposit Account Bank. “Approved Deposit Account” includes all monies on deposit in such Deposit Account and all certificates and instruments, if any, representing or evidencing such Deposit Account.
“Approved Securities Intermediary” means a Securities Intermediary reasonably acceptable to the Collateral Agent or the European Collateral Agent, as applicable.
“Asset Sale” means a sale, lease or sublease (as lessor or sub-lessor), sale and leaseback, assignment, conveyance, transfer or other disposition to, or any exchange of property with, any Person (other than the Lead Borrower or any other Credit Party), in one transaction or a series of transactions, of all or any part of the Lead Borrower’s or any of its Subsidiaries’ businesses, assets or properties of any kind, whether real, personal, or mixed and whether tangible or intangible, whether now owned or hereafter acquired, including, without limitation, the Capital Stock of any of the Lead Borrower’s Subsidiaries, other than (i) inventory (or other assets) sold or leased in the Ordinary Course (excluding any such sales by operations or divisions discontinued or to be discontinued), (ii) substantially worn, damaged or obsolete property disposed of in the Ordinary Course, (iii) returns of inventory in the Ordinary Course, (iv) the use of cash and Cash Equivalents in a manner not inconsistent with the provisions of this Agreement and the other Credit Documents, (v) leases of real property in the Ordinary Course, (vi) non-exclusive licenses or nonexclusive sublicenses of patents, trademarks, copyrights and other intellectual property in the Ordinary Course, (vii) sales of other assets for gross consideration of less than $100,000 with respect to any transaction or series of related transactions and (viii) transactions entered into in connection with Factoring Agreements permitted pursuant to Section 6.1(l).
“Assignment of Crown Debt Restrictions” as defined in the definition of “Eligible Receivables”.
“Attributable Indebtedness” in respect of a Sale and Lease Back Transaction means, at the time of determination, the present value of the obligation of the lessee for net rental payments during the remaining term of the lease included in such Sale and Lease Back Transaction including any period for which such lease has been extended or may, at the option of the lessor, be extended.  Such present value shall be calculated using a discount rate equal to the rate of interest implicit in such transaction, determined in accordance with GAAP; provided, however, that if such Sale and Lease Back Transaction results in a Capital Lease Obligation, the amount of Indebtedness represented thereby will be determined in accordance with the definition of “Capitalized Lease Obligation.”
“Australian Dollars” means the lawful money of Australia.

7

“Austria GmbH” means Huyck.Wangner Austria GmbH, a limited liability company duly organized under the laws of Austria.
“Authorized Officer” means, as applied to any Person, any individual holding the position of chairman of the board (if an officer), chief executive officer, president or one of its vice presidents (or the equivalent thereof), and such Person’s chief financial officer or treasurer and in each case with respect to a German Credit Party including a managing director (Geschäftsführer) or member of the board (Vorstandsmitglied).
“BA Rate Loan” means a Revolving Advance in Canadian Dollars that bears interest determined by reference to the CDOR Rate in accordance with the terms hereof.
“Bankruptcy Code” means Title 11 of the United States Code, as amended.
“Base Rate Loan” means a Canadian Prime Rate Loan, a US Base Rate Loan or a Domestic Rate Loan.
“Beneficiary” means each Agent, each Lender and each Lender Counterparty.
“Benefited Lender” as defined in Section 2.5(e).
“Borrower” or “Borrowers” as defined in the preamble hereto.
“Borrowers’ Account” as defined in Section 2.9.
“Borrower Materials” as defined in Section 5.1(o).
“Borrowing Base” means the sum of the US Borrowing Base, the Canadian Borrowing Base and the European Borrowing Base.
“Borrowing Base Certificate” means, as applicable, (i) a certificate substantially in the form of Exhibit M-1 duly executed by the chief financial officer or treasurer of the Lead Borrower and delivered to the Administrative Agent, appropriately completed, by which such officer shall certify to the Administrative Agent each Domestic Borrowing Base and calculation thereof as of the date of such certificate, and (ii) a certificate substantially in the form of Exhibit M-2 duly executed by the chief financial officer or treasurer of the Lead Borrower and delivered to the European Administrative Agent, appropriately completed, by which such officer shall certify to the European Administrative Agent the European Borrowing Base and each Individual European Borrowing Base and calculation thereof as of the date of such certificate.
“Business Day” means (i) any day, excluding Saturday, Sunday and any day which is a legal holiday under the laws of the State of New York (and (y) in the case of Canadian Prime Rate Loans and BA Rate Loans only, the Province of Ontario, Canada, and (z) in the case of any Advances to the European Borrowers only, Frankfurt am Main, Germany or London, England) or is a day on which banking institutions located in such state or jurisdiction are authorized or required by law or other governmental action to close and (ii):
(a)    if such day relates to any interest rate settings as to a Fixed Rate Loan denominated in Dollars or Pounds Sterling, any fundings, disbursements, settlements and payments in Dollars or Pounds Sterling, as the case may be, in respect of any such Fixed Rate Loan, or any other dealings in Dollars or Pounds Sterling, as the case may be, to be carried out pursuant to this Agreement in respect of any such Fixed Rate Loan, shall mean any such day described in clause (i) above that is also a London Banking Day;

8

(b)    if such day relates to any interest rate settings as to a Fixed Rate Loan denominated in Euros, any fundings, disbursements, settlements and payments in Euros in respect of any such Fixed Rate Loan, or any other dealings in Euros to be carried out pursuant to this Agreement in respect of any such Fixed Rate Loan, shall mean any such day described in clause (i) above that is also a European Banking Day;
(c)    if such day relates to any interest rate settings as to a Fixed Rate Loan denominated in Canadian Dollars, any fundings, disbursements, settlements and payments in Canadian Dollars in respect of any such Fixed Rate Loan, or any other dealings in Canadian Dollars to be carried out pursuant to this Agreement in respect of any such Fixed Rate Loan, shall mean any such day described in clause (i) above that is also a Canadian Banking Day; and
(d)    with respect to advances denominated in Euros or payments of Advances in Euros or any other matters relating to Advances denominated in Euros, such day also shall be a TARGET Day.
“Business Plan” as defined in Section 5.1(m).
“CAM” means the mechanism for the allocation and exchange of interests in the Advances, participations in Letters of Credit and Swing Loans and other Obligations and collections thereunder established under Section 10.30.
“CAM Exchange” means the exchange of the Lenders’ interests provided for in Section 10.30.
“CAM Exchange Date” means the first date after the Closing Date on which there shall occur (a) any event described in Section 8.1(f) or 8.1(g), or (b) an acceleration of the Obligations and termination of the Revolving Commitments pursuant to Section 8.1.
“CAM Percentage” means as to each Lender, a fraction, (a) the numerator of which shall be the aggregate amount of such Lender’s Revolving Commitments immediately prior to the CAM Exchange Date and the termination of the Revolving Commitments, and (b) the denominator of which shall be the amount of the Revolving Commitments of all the Lenders immediately prior to the CAM Exchange Date and the termination of the Revolving Commitments.
“Canadian Anti-Terrorism or Sanctions Laws” means the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, Part II.1 of the Criminal Code, the United Nations Act, the Special Economic Measures Act, the Freezing Assets of Corrupt Foreign Officials Act, and any regulations issued under any of the foregoing.
“Canadian Banking Day” means any day on which dealings in Canadian Dollar deposits are conducted by and between banks in the Canadian interbank market.
“Canadian Benefit Plan” means any plan, fund, program, or policy, whether oral or written, formal or informal, funded or unfunded, insured or uninsured, providing material employee benefits, including medical, hospital care, dental, sickness, accident, disability, life insurance, pension, retirement or savings benefits, under which any Canadian Borrower has any liability with respect to any employee or former employee, but excluding any Canadian Registered Pension Plans and shall not include plans established by statute or administered by a Governmental Authority, including the Canada / Quebec Pension Plan or plans administered pursuant to provincial health tax, workers’ compensation and employment insurance legislation.

9

“Canadian Borrowing Base” means, at any time, as to the Canadian Borrowers, the amount calculated pursuant to the Borrowing Base Certificate most recently delivered to the Administrative Agent pursuant to this Agreement (as such amount may be adjusted from time to time in accordance with the terms of this Agreement) equal to:
(a)    eighty-five percent (85%) of Eligible Receivables of the Canadian Borrowers, plus
(b)    the least of (i) sixty-five percent (65%) of the Value of the Eligible Inventory and Eligible Foreign In-Transit Canadian Inventory of the Canadian Borrowers, (ii) 85% of the Net Orderly Liquidation Value of Eligible Inventory of the Canadian Borrowers or (iii) $10,000,000, minus
(c)    Reserves.
“Canadian Borrowers” as defined in the preamble hereto.
“Canadian Borrower Revolving Credit Note” as defined in Section 2.1(a).
“Canadian Cash Management Products and Services” means agreements or other arrangements entered into with a Lender Counterparty in the Lead Borrower’s or any of its Subsidiaries’ Ordinary Course that provides any of the following products or services to any of the Canadian Credit Parties:  (a) credit cards; (b) credit card processing services; (c) debit cards and stored value cards; (d) purchase cards; (e) ACH transactions; (f) cash management and treasury management services and products, including controlled disbursement accounts or services, lockboxes, automated clearinghouse transactions, overdrafts, interstate depository network services; or (g) foreign currency exchange and foreign currency swaps and hedges.  The indebtedness, obligations and liabilities of any Canadian Credit Party to the provider of any Cash Management Products and Services (including all obligations and liabilities owing to such provider in respect of any returned items deposited with such provider) (the “Canadian Cash Management Obligations”) shall be “Canadian Obligations” hereunder, Guaranteed Canadian Obligations under the Guaranty and secured obligations under the Canadian Collateral Documents, as applicable, and otherwise treated as Canadian Obligations for purposes of each of the other Credit Documents.
“Canadian Cash Management Obligations” as defined in the definition of “Canadian Cash Management Products and Services.”
“Canadian Collateral” means all of the Collateral which is subject or is purported to be subject to the Liens granted by any of the Canadian Collateral Documents.
“Canadian Collateral Documents” means, collectively, the Canadian Pledge and Security Agreement, each of the Canadian Mortgages, the Landlord Consent and Estoppels, if any, the Landlord Personal Property Collateral Access Agreements, if any, entered into by any Canadian Credit Party, and all other instruments, documents, hypothecs, and agreements delivered by any Canadian Credit Party pursuant to this Agreement or any of the other Credit Documents in order to grant and/or confirm to the Collateral Agent, for the benefit of the Secured Parties, a Lien on any real, personal or mixed property of that Canadian Credit Party as security for the Canadian Obligations.
“Canadian Compliance Authority” means each and all of (a) Foreign Affairs and International Trade Canada Economic Law Division, (b) Foreign Affairs and International Trade Canada Export Controls Division, (c) Financial Transactions and Reports Analysis Centre of Canada, (d) Royal Canadian Mounted Police, (e) Canada Border Services Agency, (f) Public Works and Government Services Canada Controlled 

10

Goods Directorate, (f) Department of Justice Canada, (h) Canada Revenue Agency and (i) Ontario Securities Commission.
“Canadian Credit Party” means each Canadian Borrower and each Canadian Guarantor.
“Canadian Dollar and Cdn$” means the lawful money of Canada.
“Canadian Dollar Denominated Advances” means each Advance denominated in Canadian Dollars at the time of the incurrence thereof.
“Canadian Guarantor” means (i) with respect to the Canadian Obligations of each Canadian Borrower and each other Canadian Credit Party, each other Canadian Borrower, (ii) each Guarantor listed as a Canadian Guarantor in Schedule 1.1(b) and (iii) any other Canadian Subsidiary that becomes a party to the Guaranty. For purposes of the Guaranty, the term “Canadian Guarantor” as applied to any Canadian Borrower shall refer to such Canadian Borrower as a guarantor of Obligations incurred by another Canadian Credit Party and not to Obligations directly incurred by such Canadian Borrower in its capacity as a Canadian Borrower hereunder.
“Canadian Guarantor Subsidiary” means each Canadian Guarantor other than a Canadian Borrower.
“Canadian Hedging Obligations” means any Hedging Obligations owed by a Canadian Credit Party.
“Canadian Inventory Reserve” means, as of any date of determination, such amounts as the Administrative Agent may from time to time establish and revise in its Permitted Discretion to reflect the estimated costs relating to unpaid freight charges, warehousing or storage charges, taxes, duties, and other similar unpaid costs associated with the acquisition of eligible in-transit Inventory by the Canadian Borrowers.
“Canadian Letter of Credit Limit” means $5,000,000.
“Canadian Letter of Credit Obligations” means, at any time, the sum of (a) the aggregate undrawn amount of all Canadian Letters of Credit outstanding at such time, plus (b) without duplication, the aggregate amount of all drawings under Canadian Letters of Credit for which the applicable Issuer has not at such time been reimbursed, plus (c) without duplication, the aggregate amount of all payments made by the Lenders to the applicable Issuer with respect to such Lender’s participation in Canadian Letters of Credit as provided in Section 2.13 for which the Canadian Borrowers have not at such time reimbursed the Lenders, whether by way of a Revolving Advance or otherwise.
“Canadian Letters of Credit” means standby and/or commercial letters of credit issued for the account of a Canadian Borrower pursuant to this Agreement.
“Canadian Mortgages” means any Mortgage entered into by a Canadian Credit Party.
“Canadian Obligations” means all Obligations owing to any Agent, any Issuer, any Swing Loan Lender, any Lender or any Lender Counterparty by any Canadian Borrower.
“Canadian Pension Plan Event” means (i) the failure by a Canadian Borrower, or any Affiliate of a Canadian Borrower to make any required contribution or premium payment to a Canadian Registered Pension Plan in a timely manner in accordance with the terms of the applicable Canadian Registered Pension 

11

Plan and all applicable laws, (ii) the withdrawal by a Canadian Borrower or any Affiliate of a Canadian Borrower as a participating employer under any multi-employer pension plan, as defined under applicable laws, where the Canadian Borrower or any Affiliate is obligated to provide any contributions or payments in respect of any deficit (iii) the termination, in whole or in part, of any Canadian Registered Pension Plan, (iv) the institution of proceedings by a pension regulator which has jurisdiction over a Canadian Registered Pension Plan to terminate the Canadian Registered Pension Plan in whole or in part, or (v) the occurrence of any event or condition which could reasonably be expected to result in the institution of proceedings by the applicable pension regulator to terminate a Canadian Registered Pension Plan, in whole or in part..
“Canadian Pledge and Security Agreement” means the Canadian Pledge and Security Agreement, dated as of the Original Closing Date, executed by each Canadian Credit Party substantially in the form of Exhibit G-2, as may be amended, supplemented or otherwise modified from time to time.
“Canadian Prime Rate” means, for any date, the rate of interest per annum equal to the higher of: (a) the rate of interest which is established from time to time by the Administrative Agent (or its applicable Canadian Affiliate), at its principal Canadian office in Toronto, Ontario, as its reference rate of interest for loans in Canadian Dollars to the Canadian Borrowers, it being agreed that such rate is not necessarily the lowest rate of interest then available from the Administrative Agent (or its applicable Canadian Affiliate) on fluctuating rate loans, and (b) the CDOR Rate calculated with reference to a 30 day Interest Period plus 1.00% per annum, in each case, such rate to be adjusted automatically, without notice, as of the opening of business on the effective date of any change in such rate.
“Canadian Prime Rate Loan” means an Advance made by a Lender in Canadian Dollars that bears interest determined by reference to the Canadian Prime Rate in accordance with the terms hereof.
“Canadian Registered Pension Plan” means a “registered pension plan” (as defined in subsection 248(1) of the Income Tax Act (Canada)) which is a defined benefit pension plan, which is or, within the preceding six years, was sponsored, maintained or contributed to by, or required to be contributed to by, a Canadian Borrower or any Affiliate of a Canadian Borrower For the avoidance of doubt, Canadian Registered Pension Plan excludes a Canadian multi-employer pension plan, as defined under applicable laws, contributed to or required to be contributed to by a Canadian Borrower or any Affiliate of a Canadian Borrower.
“Canadian Revolving Loans” means any (i) Canadian Prime Rate Loan, (ii) US Base Rate Loan, (iii) BA Rate Loan or (iv) LIBOR Rate Loan.
“Canadian Revolving Loan Maximum Amount” means $15,000,000.
“Canadian Subsidiary” means any Foreign Subsidiary organized under the laws of Canada or any province or territory thereof.
“Canadian Swing Loan Note” as defined in Section 2.3(a).
“Canadian Swing Loans” as defined in Section 2.3(a).
“Capital Expenditures” means, with respect to any Person, all expenditures that, in accordance with GAAP, are or should be included in “purchase of property and equipment” or similar items reflected in the cash flows of such Person.

12

“Capital Lease” means, as applied to any Person, any lease of any property (whether real, personal or mixed) by that Person as lessee that, in conformity with GAAP, is or should be accounted for as a capital lease on the balance sheet of that Person.
“Capital Stock” means any and all shares, interests, participations or other equivalents (however designated) of capital stock of a corporation, any and all equivalent ownership interests in a Person (other than a corporation), including, without limitation, partnership interests, membership interests, and any and all warrants, rights or options to purchase or other arrangements or rights to acquire any of the foregoing.
“Capitalized Lease Obligation” means, as applied to any Person, any obligation incurred or arising out of or in connection with a Capital Lease.
“Cash” means money, currency or a credit balance in any Deposit Account.
“Cash Dominion Period” means:
 (a) with respect to the application of Section 5.12(b) with respect to an Approved Deposit Account of any Domestic Credit Party, any period commencing on the date on which (x) an Event of Default shall have occurred and be continuing, (y) Global Excess Availability is, on any date of determination, less than the greater of (i) fifteen percent (15.0%) of the lesser of (a) the Maximum Credit at such time and (b) the Borrowing Base at such time, and (ii) $5,000,000; provided, that, any such Cash Dominion Period resulting solely from this clause (y) shall cease to exist to the extent that Global Excess Availability is greater than or equal to the greater of (1) fifteen percent (15.0%) of the lesser of (a) the Maximum Credit at such time and (b) the Borrowing Base at such time, and (2) $5,000,000 for sixty (60) consecutive days during any applicable period after the occurrence of such Cash Dominion Period and no other Cash Dominion Period has occurred during such sixty (60) consecutive day period, or (z) Domestic Excess Availability is, on any date of determination, less than the greater of (i) fifteen percent (15.0%) of the lesser of (a) the Maximum Domestic Credit at such time and (b) the Domestic Borrowing Base at such time, and (ii) $5,000,000; provided, that, any such Cash Dominion Period resulting solely from this clause (z) shall cease to exist to the extent that Domestic Excess Availability is greater than or equal to the greater of (1) fifteen percent (15.0%) of the lesser of (a) the Maximum Domestic Credit at such time and (b) the Domestic Borrowing Base at such time, and (2) $5,000,000 for sixty (60) consecutive days during any applicable period after the occurrence of such Cash Dominion Period and no other Cash Dominion Period under this clause (a) has occurred during such sixty (60) consecutive day period; and
(b)    with respect to the application of Section 5.12(b) with respect to an Approved Deposit Account of any European Credit Party, any period commencing on the date on which (x) an Event of Default shall have occurred and be continuing, (y) Global Excess Availability is, on any date of determination, less than the greater of (i) fifteen percent (15.0%) of the lesser of (a) the Maximum Credit at such time and (b) the Borrowing Base at such time, and (ii) $5,000,000; provided, that, any such Cash Dominion Period resulting solely from this clause (y) shall cease to exist to the extent that Global Excess Availability is greater than or equal to the greater of (1) fifteen percent (15.0%) of the lesser of (a) the Maximum Credit at such time and (b) the Borrowing Base at such time, and (2) $5,000,000 for sixty (60) consecutive days during any applicable period after the occurrence of such Cash Dominion Period and no other Cash Dominion Period has occurred during such sixty (60) consecutive day period, or (z) European Excess Availability is, on any date of determination, less than the greater of (i) fifteen percent (15.0%) of the lesser of (a) the Maximum European Credit at such time and (b) the European Borrowing Base at such time, and (ii) $5,000,000; provided, that, any such Cash Dominion Period resulting solely from this clause (z) shall cease to exist to the extent that European Excess Availability is greater than or equal to the greater of (1) fifteen 

13

percent (15.0%) of the lesser of (a) the Maximum European Credit at such time and (b) the European Borrowing Base at such time, and (2) $5,000,000 for sixty (60) consecutive days during any applicable period after the occurrence of such Cash Dominion Period and no other Cash Dominion Period under this clause (b) has occurred during such sixty (60) consecutive day period; and
(c)    with respect to any other application of this defined term, any period commencing on the date on which (x) an Event of Default shall have occurred and be continuing, or (y) Global Excess Availability is, on any date of determination, less than the greater of (i) fifteen percent (15.0%) of the lesser of (a) the Maximum Credit at such time and (b) the Borrowing Base at such time, and (ii) $5,000,000; provided, that, any such Cash Dominion Period resulting solely from this clause (y) shall cease to exist to the extent that Global Excess Availability is greater than or equal to the greater of (1) fifteen percent (15.0%) of the lesser of (a) the Maximum Credit at such time and (b) the Borrowing Base at such time, and (2) $5,000,000 for sixty (60) consecutive days during any applicable period after the occurrence of such Cash Dominion Period and no other Cash Dominion Period has occurred during such sixty (60) consecutive day period.
“Cash Equivalents” means (i) Dollars or any foreign currency freely exchangeable into Dollars and, in the case of any Foreign Subsidiary, such local currencies held by it from time to time in the Ordinary Course, (ii) securities issued or directly and fully guaranteed or insured by the U.S. government or any agency or instrumentality thereof, (iii) certificates of deposit, time deposits and Eurodollar time deposits with maturities of one year or less from the date of acquisition, bankers’ acceptances with maturities not exceeding one year and overnight bank deposits, in each case with any commercial bank having capital and surplus in excess of $250,000,000 and whose long-term debt is rated at least “A-1” or the equivalent thereof by S&P or Moody’s, (iv) repurchase obligations for underlying securities of the types described in clauses (ii) and (iii) above entered into with any financial institution meeting the qualifications specified in the immediately preceding clause, (v) commercial paper issued by a corporation (other than an Affiliate of any Borrower) rated at least “A-2” or the equivalent thereof by Moody’s or S&P and in each case maturing within one year after the date of acquisition, (vi) investment funds investing substantially all of their assets in securities of the types described in clauses (i) through (v) above, (vii) readily marketable direct obligations issued by any state of the United States or any political subdivision thereof having one of the two highest rating categories obtainable from either Moody’s or S&P, (viii) in the case of any Foreign Subsidiary, instruments equivalent to those referred to above denominated in Euros or any other foreign currency that are comparable in credit quality and tenor to those referred to above and customarily used by corporations for cash management purposes in any jurisdiction outside the United States and (ix) money market funds as defined in Rule 2a-7 of the General Rules and Regulations as promulgated under the Investment Company Act of 1940.
“Cash Management Obligations” means Canadian Cash Management Obligations, US Cash Management Obligations and European Cash Management Obligations. 
“CDOR Rate” means, on any day and for any period, an annual rate of interest equal to the arithmetic average rate applicable to Canadian Dollar bankers’ acceptances for the applicable Interest Period appearing on the “Reuters Screen CDOR Page” (as defined in the International Swaps and Derivatives Association, Inc. 2000 definitions, as modified and amended from time to time), rounded to the nearest 1/100th of 1% (with .005% being rounded up), at approximately 10:00 a.m. Local Time, on such day, or if such day is not a Business Day, then on the immediately preceding Business Day; provided that if such rate does not appear on the Reuters Screen CDOR Page on such day, the CDOR Rate on such day shall be the rate for such period applicable to Canadian Dollar bankers’ acceptances quoted by a bank listed in Schedule I of the Bank Act (Canada), as selected by the Administrative Agent as of 10:00 a.m. Local Time on such day or, if such day is not a Business Day, then on the immediately preceding Business Day.

14

“Certificate re Non-Bank Status” means a certificate substantially in the form of Exhibit D.
“Change in Law” as defined in Section 2.28(a).
“Change of Control” means, at any time, (i) any Person or “group” (within the meaning of section 13(d) and 14(d) under the Exchange Act) shall have acquired beneficial ownership (as defined in Rule13d-3 under the Exchange Act), directly or indirectly, of thirty-five percent (35%) or more on a fully diluted basis of the voting and/or economic interest in the Capital Stock of the Lead Borrower; (ii) the majority of the seats (other than vacant seats) on the board of directors (or similar governing body) of the Lead Borrower cease to be occupied by Persons who either (a) were members of the board of directors of the Lead Borrower on the Closing Date or (b) were nominated for election by the board of directors of the Lead Borrower, a majority of whom were directors on the Closing Date or whose election or nomination for election was previously approved by a majority of such directors; or (iii) any “change of control” or similar event shall occur under the documents governing any Indebtedness incurred pursuant to Section 6.1(c), Section 6.1(g), Section 6.1(o) or any Permitted Refinancing Indebtedness with respect thereto, in each case, in an aggregate principal amount of not less than $20,000,000.
“CIP Regulations” as defined in Section 9.14.
“Closing Date” means the date on which all conditions precedent set forth in Section 3.1 are satisfied or waived in accordance with the terms of this Agreement.
“Closing Date Certificate” means the Closing Date Certificate substantially in the form of Exhibit E.
“Code” means the United State Internal Revenue Code of 1986, as amended from time to time.
“Collateral” means, collectively, all of the real, personal and mixed property (including Capital Stock) and interests therein and proceeds and products thereof, whether now or hereafter acquired, in or upon which Liens are purported to be granted and/or confirmed pursuant to the Collateral Documents as security for the Obligations.
“Collateral Agent” as defined in the preamble hereto.
“Collateral Documents” means, collectively, the Canadian Collateral Documents, the US Collateral Documents and the European Collateral Documents.
“Collateral Questionnaire” means, as the case may be, (i) a certificate delivered on or prior to the Original Closing Date, in form satisfactory to the Collateral Agent, that provides information with respect to the personal, real and mixed property of each Domestic Credit Party, and (ii) a certificate delivered on or prior to the Closing Date, in form satisfactory to the European Collateral Agent, that provides information with respect to the personal, real and mixed property of each European Credit Party.
“Commitment Transfer Supplement” means a document in the form of Exhibit C, with such amendments or modifications as may be approved by the Administrative Agent and the European Administrative Agent, properly completed and otherwise in form and substance satisfactory to the Administrative Agent and the European Administrative Agent by which the purchasing Lender purchases and assumes a portion of the obligation of the selling Lender to make and/or participate in Advances and Letters of Credit under this Agreement.

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“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C.§ 1 et seq.), as amended from time to time.
“Common Stock” means the common stock of the Lead Borrower, par value $0.001 per share.
“Communications” as defined in Section 5.1(l)(i).
“Compliance Authority” means each and all of the (a) US Treasury Department/Office of Foreign Assets Control, (b) US Treasury Department/Financial Crimes Enforcement Network, (c) US State Department/Directorate of Defense Trade Controls, (d) US Commerce Department/Bureau of Industry and Security, (e) the US Internal Revenue Service, (f) the US Justice Department, (g) the US Securities and Exchange Commission, (h) Canadian Compliance Authorities and (i) the European Compliance Authorities, as applicable.
“Compliance Certificate” means a Compliance Certificate substantially in the form of Exhibit B.
“Consigned Inventory” means Inventory of any Borrower that is in the possession of another Person on a consignment, sale or return, or other basis that does not constitute a final sale and acceptance of such Inventory.
“Consolidated Capital Expenditures” means, with respect to any Person for any period, the aggregate of all Capital Expenditures of such Person and its Subsidiaries during such period determined on a consolidated basis.
“Consolidated Depreciation and Amortization Expense” means, with respect to any Person for any period, the total amount of depreciation and amortization expense of such Person and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP, including without limitation non-cash impairment charges resulting from the application of Statements of Financial Accounting Standards No. 142 and No. 144 and any amortization of intangibles arising pursuant to Statement of Financial Accounting Standards No. 141.
“Consolidated Interest Expense” means, with respect to any Person for any period, consolidated interest expense of such Person and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP.  For purposes of clarifying the intention of the parties, the calculation of Consolidated Interest Expense shall be net of interest income and the effect of all interest rate Hedging Obligations.
“Consolidated Net Income “ means, with respect to any Person for any period, the aggregate of the net income (loss) of such Person and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP; provided, however, that the following, without duplication, shall be excluded in determining Consolidated Net Income: (i) any net after-tax extraordinary or non-recurring gains, losses or expenses (less all fees and expenses relating thereto), (ii) the cumulative effect of changes in accounting principles, (iii) any fees and expenses incurred during such period in connection with the issuance or repayment of Indebtedness, any refinancing transaction or amendment or modification of any debt instrument, in each case, as permitted under this Agreement, and (iv) any cancellation of indebtedness income; provided, further that, without duplication, (x) the net income for such period of any Person that is not a Subsidiary of such Person or that is accounted for by the equity method of accounting shall be included only to the extent of the amount of dividends or distributions or other payments paid in cash (or to the extent converted into cash) to such Person or a wholly-owned Subsidiary thereof in respect of such period (and if such net income is a loss it will be included only to the extent such loss has been funded with cash by such Person or a wholly-owned Subsidiary thereof in respect of such period), and (y) the net income (loss) for such period 

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of any Subsidiary shall be excluded to the extent that the declaration or payment of dividends or similar distributions by such Subsidiary of its net income is not at the date of determination permitted without any prior governmental approval (which has not been obtained and which is not expected by the Lead Borrower to be obtained in the Ordinary Course) or, directly or indirectly, by the operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Subsidiary or its stockholders (other than a covenant in any loan agreement or similar agreement which restricts the payment of dividends or similar distributions upon the occurrence of or during the existence or continuance of a default or event of default), unless such restrictions with respect to the payment of dividends or in similar distributions have been legally waived and except that this clause (y) shall not apply to any Subsidiary that is also a Guarantor in the calculation of the Leverage Ratio.
“Consolidated Operational Restructuring Costs” means, with respect to any Person for any period, any restructuring or related impairment costs reflected in the income statement for such Person and its Subsidiaries resulting from the restructuring activities of such Person and its Subsidiaries.
“Consolidated Total Assets” of any Person means, at any date, the total assets of such Person and its Subsidiaries at such date determined on a consolidated basis in conformity with GAAP minus (a) any minority interest in any Person that would be reflected on a consolidated balance sheet of such Person and its Subsidiaries at such date prepared in conformity with GAAP and (b) any Securities issued by such Person held as treasury securities.
“Contractual Obligation” means, as applied to any Person, any provision of any Security issued by that Person or of any indenture, mortgage, deed of trust, contract, undertaking, agreement or other instrument to which that Person is a party or by which it or any of its properties is bound or to which it or any of its properties is subject.
“Control Account” means a Securities Account that is the subject of an effective Securities Account Control Agreement and that is maintained by any Borrower or any other Credit Party with an Approved Securities Intermediary. “Control Account” includes all Financial Assets held in a Securities Account and all certificates and instruments, if any, representing or evidencing the Financial Assets contained therein. 
“Counterpart Agreement” means a Counterpart Agreement substantially in the form of Exhibit F delivered by a Credit Party pursuant to Section 5.10.
“Covenant Trigger Event” means the occurrence of a date when (a) Global Excess Availability shall have been less than the greater of (i) ten percent (10.0%) of the lesser of (A) the Maximum Credit at such time and (B) the Borrowing Base at such time and (ii) $3,000,000 until such date as (b) Global Excess Availability shall have been at least equal to the greater of (i) ten percent (10.0%) of the lesser of (A) the Maximum Credit at such time and (B) the Borrowing Base at such time and (ii) $3,000,000 for sixty (60) consecutive calendar days.
“Covenant Trigger Period” means any period throughout which a Covenant Trigger Event has occurred and is continuing.
“Covered Entity” means each Credit Party, each Credit Party’s Affiliates and Subsidiaries, all owners of the foregoing, and all brokers or other agents of any Credit Party acting in any capacity in connection with the Obligations.
“Credit Date” means the date of a Credit Extension.

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“Credit Document” means any of this Agreement, the Intercreditor Agreement, the Collateral Documents, the Affiliate Subordination Agreement, the Fee Letters and all other documents, instruments or agreements executed and delivered by a Credit Party for the benefit of any Agent or any Lender in connection herewith (for the avoidance of doubt, any document, instrument or agreement creating any Hedging Obligations or Cash Management Obligations shall not be considered a Credit Document).
“Credit Extension” means the making of an Advance or the issuance of a Letter of Credit.
“Credit Party” means each Borrower and each Guarantor.
“Currency Due” as defined in Section 2.33.
“Customer” means and includes the account debtor with respect to any Receivable and/or the prospective purchaser of goods, services or both with respect to any contract or contract right, and/or any party who enters into or proposes to enter into any contract or other arrangement with any Borrower, pursuant to which such Borrower is to deliver any personal property or perform any services.
“Customs” as defined in Section 2.12(b).
“Daily LIBOR Rate”  means,  for  any  day, the rate per annum determined  by  the Administrative Agent by dividing (x) the Published Rate by (y) a number equal to 1.00 minus the Reserve Percentage.
“Debt” means, with respect to the Lead Borrower, on a consolidated basis on any date, an amount equal to the sum of, without duplication, (i) the aggregate principal amount of all Indebtedness of the Lead Borrower and its Subsidiaries on such date (to the extent such Indebtedness would be included as a liability on a balance sheet prepared in accordance with GAAP), (ii) the aggregate principal amount of all debt obligations of the Lead Borrower and its Subsidiaries evidenced by bonds, debentures, notes, loan agreements or similar instruments, (iii) the aggregate amount of unreimbursed drawings (but excluding, for the avoidance of doubt, undrawn amounts) in respect of letters of credit (or similar facilities) issued for the account of the Lead Borrower or any of its Subsidiaries and (iv) the aggregate amount of all guaranties of the Lead Borrower and its Subsidiaries in respect of Indebtedness of third persons of the type described in preceding clauses (i) through (iii).  For purposes of computing Debt, Indebtedness which is payable in any currency other than Dollars shall be converted into Dollars using the average of the foreign exchange rates quoted on each day during the most recently ended four Fiscal Quarters for which the Lead Borrower’s financial statements are available by the source used by the Lead Borrower to translate items appearing in its statement of income during such Fiscal Quarters.
“Default” means a condition or event that, after notice or expiry of an applicable grace period, or the making of any determination under the Credit Documents, or any combination of any of the foregoing, would constitute an Event of Default.
“Defaulting Lender” means, at any time, any Lender that: (a) has failed, within two (2) Business Days of the date required to be funded or paid, to (i) fund any portion of its Revolving Commitment Percentage of Advances, (ii) if applicable, fund any portion of its Participation Commitment in Letters of Credit or (iii) pay over to any Agent, any Issuer or any Lender any other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such Lender notifies the Administrative Agent and the European Administrative Agent in writing that such failure is the result of such Lender’s good faith determination that a condition precedent to funding (specifically identified and including a particular Default or Event of Default, if any) has not been satisfied; (b) has notified the Lead Borrower, the European Lead Borrower, the Administrative Agent or the European Administrative Agent in writing, or has made a public statement to the effect, that it 

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does not intend or expect to comply with any of its funding obligations under this Agreement (unless such writing or public statement indicates that such position is based on such Lender’s good faith determination that a condition precedent (specifically identified and including a particular Default or Event of Default, if any) to funding a loan under this Agreement cannot be satisfied) or generally under other agreements in which it commits to extend credit; (c) has failed, within two (2) Business Days after request by the Applicable Agent, acting in good faith, to provide a certification in writing from an authorized officer of such Lender that it will comply with its obligations (and is financially able to meet such obligations) to fund prospective Advances and, if applicable, participations in then outstanding Letters of Credit under this Agreement, provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon the Applicable Agent’s receipt of such certification in form and substance satisfactory to the Applicable Agent; (d) has become the subject of an Insolvency Event; or (e) has failed at any time to comply with the provisions of Section 2.5(e) with respect to purchasing participations from the other Lenders, whereby such Lender’s share of any payment received, whether by setoff or otherwise, is in excess of its Revolving Commitment Percentage of such payments due and payable to all of the Lenders; provided that, as of any date of determination, the determination of whether any Lender is a Defaulting Lender hereunder shall not take into account, and shall not otherwise impair, any amounts funded by such Lender which have been assigned by such Lender to a Special Purpose Vehicle pursuant to Section 10.6(i).
“Default Rate” as defined in Section 2.23.
“Deposit Account” means a demand, time, savings, passbook or like account with a bank, savings and loan association, credit union or like organization, other than an account evidenced by a negotiable certificate of deposit.
“Deposit Account Bank” means a financial institution reasonably acceptable to the Collateral Agent or the European Collateral Agent, as applicable.
“Deposit Account Control Agreement” means a letter agreement, in form and substance satisfactory to the Collateral Agent or the European Collateral Agent, as applicable, executed by the relevant Credit Party, the Collateral Agent or European Collateral Agent, and the relevant Deposit Account Bank, and with respect to Deposit Accounts under English law or under German law, (i) any agreement to be entered into between the respective Borrower as account holder, the European Collateral Agent and the respective account bank, or (ii) a notice of pledge to be served on the respective account bank and the corresponding acknowledgement, granting sole disposal rights in favour of the European Collateral Agent, in each case in form and substance acceptable to the European Collateral Agent.
“Disregarded Domestic Subsidiary” means any Domestic Subsidiary treated as a disregarded entity for U.S. federal income tax purposes and the sole assets of which are Capital Stock in one or more controlled foreign corporations within the meaning of section 957 of the Code.
“Document” means “document” as defined in the UCC.
“Dollar Denominated Advances” means each Revolving Advance denominated in Dollars at the time of the incurrence thereof.
“Dollar Equivalent” means, at any time, (a) as to any amount denominated in Dollars, the amount thereof at such time, and (b) as to any amount denominated in any other currency, the equivalent amount in Dollars calculated by the Applicable Agent in its Permitted Discretion at such time using the Exchange Rate in effect on the Business Day of determination.

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“Dollars” and the sign “$” mean the lawful money of the United States of America.
“Domestic Adjustment Date” as defined in the definition of “Applicable Margin”.
“Domestic Borrowing Base” means the sum of the US Borrowing Base and the Canadian Borrowing Base.
“Domestic Credit Party” means, collectively, the US Credit Parties and the Canadian Credit Parties.
“Domestic Excess Availability” means the amount, as determined by the Administrative Agent in its Permitted Discretion, calculated at any date, equal to:  (a) the lesser of: (i) the Domestic Borrowing Base at such time and (ii) the Maximum Domestic Credit at such time, minus (b) the sum of: (i) the Aggregate Domestic Exposure at such time, plus (ii) the aggregate amount of all then outstanding and unpaid trade payables and other obligations of the US Borrowers and Canadian Borrowers which are past due beyond the due date therefor by at least sixty (60) days (other than trade payables or other obligations being contested or disputed by the US Borrowers or Canadian Borrowers in good faith).
“Domestic Facility” means the Revolving Commitment of the Lenders to make Revolving Advance to the US Borrowers and the Canadian Borrowers pursuant to Sections 2.1(a)(i) and (ii) and to participate in US Letters of Credit and Canadian Letters of Credit, and US Swing Loans and Canadian Swing Loans.
“Domestic Payment Office” means, initially, Two Tower Center Boulevard, East Brunswick, New Jersey 08816; thereafter, such other office of the Administrative Agent, if any, which it may designate by notice to the Lead Borrower and to each Lender to be the Domestic Payment Office.
“Domestic Rate Loan” means any Advance made by the Lenders (including the Domestic Swing Loan Lender) in Dollars to the US Borrowers that bears interest based upon the Alternate US Base Rate.
“Domestic Subsidiary” means any Subsidiary organized under the laws of the United States of America, any State thereof or the District of Columbia.
“Domestic Swing Loan Lender” means the Administrative Agent, in its capacity as lender of the US Swing Loans and the Canadian Swing Loans.
“Domestic Quarterly Average Undrawn Availability” means, for any Fiscal Quarter, the average of the aggregate amount of Domestic Undrawn Availability for such Fiscal Quarter.
“Domestic Undrawn Availability” means, on any date of determination, as determined by the Administrative Agent in its Permitted Discretion, calculated at any date, equal to:  (a) the lesser of: (i) the Domestic Borrowing Base at such time and (ii) the Maximum Domestic Credit at such time, minus (b) the Aggregate Domestic Exposure at such time.
“Drawing Date” as defined in Section 2.13(b).
“ECP” as defined in the definition of “Excluded Swap Obligation”.
“Eligible Assignee” means (i) any Lender, any Affiliate of any Lender and any Related Fund (any two or more Related Funds being treated as a single Eligible Assignee for all purposes hereof) and (ii) any other Person (other than a natural person); provided, however, that neither the Lead Borrower nor any Affiliate of the Lead Borrower (other than an Affiliate Lender) shall be an Eligible Assignee; and provided, further, 

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that no Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause, shall be an Eligible Assignee.
“Eligible Customs Broker” means a customs broker that has its principal assets and principal place of business in the United States or Canada and which is acceptable to the Administrative Agent and with which the Administrative Agent has entered into an Imported Goods Agreement.
“Eligible Equipment” means equipment owned by a Borrower and meeting each of the following requirements:
(a)    such Borrower has good title to such equipment;
(b)    such Borrower has the right to subject such equipment to a Lien in favor of the Applicable Agent; such equipment is subject to a first priority perfected Lien in favor of the Applicable Agent and is free and clear of all other Liens of any nature whatsoever (except for Permitted Liens which do not have priority over the Lien in favor of such Agent);
(c)    the full purchase price for such equipment has been paid by such Borrower;
(d)    such equipment is located on premises (i) owned by such Borrower or (ii) leased by such Borrower where (x) the lessor has delivered to the Applicable Agent a Landlord Personal Property Collateral Access Agreement or any equivalent agreement, as applicable, or (y) a Reserve for rent, charges, and other amounts due or to become due with respect to such facility has been established by the Applicable Agent in its Permitted Discretion;
(e)     such equipment is in good working order and condition (ordinary wear and tear excepted) and is used or held for use by such Borrower in the ordinary course of business of such Borrower;
(f)     such equipment is not subject to any agreement which restricts the ability of such Borrower to use, sell, transport or dispose of such equipment or which restricts the Applicable Agent's ability to take possession of, sell or otherwise dispose of such equipment; 
(g)     such equipment is included in a recent equipment appraisal satisfactory to the Applicable Agent in its Permitted Discretion; and
(h)     such equipment does not constitute "Fixtures" under the applicable laws of the jurisdiction in which such equipment is located (with respect to equipment located in Germany, such equipment does not constitute "Wesentliche Bestandteile" in accordance with section 94 of the German Civil Code (Bürgerliches Gesetzbuch). 
“Eligible European Jurisdiction” means each of Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom, provided that the European Administrative Agent may, in its sole discretion, remove one or more of the countries comprising an Eligible European Jurisdiction and subsequently add one or more of such countries back as an Eligible European Jurisdiction.
“Eligible Foreign In-Transit Canadian Inventory” means Inventory of the Canadian Borrowers that would be Eligible Inventory but for the fact that it is Foreign In-Transit Canadian Inventory, but only if: (a) such Foreign In-Transit Canadian Inventory is the subject of a Negotiable Document that designates the Administrative Agent as the consignee; (b) such Foreign In-Transit Canadian Inventory has been paid 

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for by the Canadian Borrowers or the Administrative Agent has otherwise satisfied itself that a final sale of such Inventory to such Canadian Borrower has occurred and title has passed to a Canadian Borrower; (c) the Administrative Agent has received assurances satisfactory to it that all of the original Documents evidencing such Foreign In-Transit Canadian Inventory (all of which Documents shall be Negotiable Documents) have been issued by the applicable carrier and have been forwarded to an Eligible Customs Broker (and, if such Documents are not actually received by an Eligible Customs Broker within ten (10) days after the sending thereof, such Foreign In-Transit Canadian Inventory shall thereupon cease to be Eligible Foreign In-Transit Canadian Inventory), or, if required by the Administrative Agent in the exercise of its Permitted Discretion, all of such original Documents are in the possession, in Canada, of the Administrative Agent or an Eligible Customs Broker (as specified by the Administrative Agent); (d) no default exists under any agreement in effect between the vendor of such Inventory and such Canadian Borrower that would permit such vendor under any Requirement of Law (including the PPSA) to divert, reclaim, reroute, or stop shipment of such Inventory; (e) such Foreign In-Transit Canadian Inventory is fully insured by marine cargo or other similar insurance, in such amounts, with such insurance companies and subject to such deductibles as are satisfactory to the Administrative Agent and in respect of which the Administrative Agent has been named as lender loss payee; and (f) the Administrative Agent has received an executed Imported Goods Agreement with respect to such Inventory from an Eligible Customs Broker; provided that such Eligible Foreign In-Transit Canadian Inventory, when combined with Eligible Foreign In-Transit US Inventory and any Consigned Inventory of the Borrowers that qualifies as Eligible Inventory, shall not exceed $8,500,000 in the aggregate. 
“Eligible Foreign In-Transit US Inventory” means Inventory of the US Borrowers that would be Eligible Inventory but for the fact that it is Foreign In-Transit US Inventory, but only if: (a) such Foreign In-Transit US Inventory is the subject of a Negotiable Document that designates the Administrative Agent as the consignee; (b) such Foreign In-Transit US Inventory has been paid for by a US Borrower or the Administrative Agent has otherwise satisfied itself that a final sale of such Inventory to such US Borrower has occurred and title has passed to a US Borrower; (c) the Administrative Agent has received assurances satisfactory to it that all of the original Documents evidencing such Foreign In-Transit US Inventory (all of which Documents shall be Negotiable Documents) have been issued by the applicable carrier and have been forwarded to an Eligible Customs Broker (and, if such Documents are not actually received by an Eligible Customs Broker within ten (10) days after the sending thereof, such Foreign In-Transit US Inventory shall thereupon cease to be Eligible Foreign In-Transit US Inventory), or, if required by the Administrative Agent in the exercise of its Permitted Discretion, all of such original Documents are in the possession, in the United States, of the Administrative Agent or an Eligible Customs Broker (as specified by the Administrative Agent); (d) no default exists under any agreement in effect between the vendor of such Inventory and such US Borrower that would permit such vendor under any Requirement of Law (including the UCC) to divert, reclaim, reroute, or stop shipment of such Inventory; (e) such Foreign In-Transit US Inventory is fully insured by marine cargo or other similar insurance, in such amounts, with such insurance companies and subject to such deductibles as are satisfactory to the Administrative Agent and in respect of which the Administrative Agent has been named as lender loss payee; and (f) the Administrative Agent has received an executed Imported Goods Agreement with respect to such Inventory from an Eligible Customs Broker; provided that such Eligible Foreign In-Transit US Inventory, when combined with Eligible Foreign In-Transit Canadian Inventory and any Consigned Inventory of the Borrowers, that qualifies as Eligible Inventory, shall not exceed $8,500,000 in the aggregate.
“Eligible Inventory” means and includes Inventory of a Borrower which is not, in the Applicable Agent’s Permitted Discretion, obsolete, slow moving or unmerchantable and which the Applicable Agent, in its Permitted Discretion, shall not deem ineligible Inventory, based on such considerations as the Applicable Agent may from time to time deem appropriate in its Permitted Discretion including whether the Inventory 

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is subject to a First Priority perfected security interest, governed by the laws of the jurisdiction in which such Inventory is located in favor of the Collateral Agent or the European Collateral Agent, as applicable, and no other Lien (other than a Permitted Lien).  In addition, Inventory shall not be Eligible Inventory if it: (a) does not conform to all standards imposed by any Governmental Authority which has regulatory authority over such goods or the use or sale thereof; (b) (i) is Foreign In-Transit US Inventory or in-transit, in the case of the US Borrowers, within the United States or, (ii) is Foreign In-Transit Canadian Inventory or in-transit, in the case of the Canadian Borrowers, within Canada or, (iii) is in-transit, in the case of the European Borrowers; (c) is (x) in the case of the US Borrowers, located outside the continental United States or (y) in the case of the Canadian Borrowers, located outside of the Province of Ontario or any other province or territory of Canada in which the First Priority Lien of the Collateral Agent in such Inventory has not been perfected or (z) in the case of the European Borrowers, located outside Germany, or (in any case) at a location that is not otherwise in compliance with this Agreement; (d) constitutes Consigned Inventory, except Consigned Inventory of all Borrowers that, when combined with Eligible Foreign In-Transit Canadian Inventory and Eligible Foreign In-Transit US Inventory, does not exceed $8,500,000 in the aggregate; (e) is the subject of an Intellectual Property Claim; (f) is subject to a License Agreement that limits, conditions or restricts the applicable Borrower’s or the Applicable Agent’s right to sell or otherwise dispose of such Inventory, unless the Applicable Agent is a party to a Licensor/Agent Agreement with the Licensor under such License Agreement (or the Applicable Agent shall agree otherwise in its Permitted Discretion after establishing reserves against the Borrowing Base with respect thereto as the Applicable Agent shall deem appropriate in its Permitted Discretion); (g) is situated at a location not owned by a Borrower unless the owner or occupier of such location has executed in favor of the Collateral Agent or European Collateral Agent, as applicable, a Landlord Personal Property Collateral Access Agreement (or the Applicable Agent shall agree otherwise in its Permitted Discretion after establishing reserves against the Borrowing Base with respect thereto as the Applicable Agent shall deem appropriate in its Permitted Discretion); (h) or if the sale of such Inventory would result in an ineligible Receivable; (i) for which any contract relating to such Inventory expressly includes retention of the rights in favor of the vendor or supplier thereof provided that Inventory of a European Borrower which may be subject to any rights of retention of title shall not be excluded from Eligible Inventory solely pursuant to this sub-paragraph (i) in the event that (A) the European Administrative Agent shall have received evidence satisfactory to it that the full purchase price of such Inventory has, or will have, been paid prior, or upon delivery of, such Inventory to the relevant European Borrower or (B) a Letter of Credit has been issued under and in accordance with the terms of this Agreement for the purchase of such Inventory; or (j) if such Inventory was acquired in connection with a Permitted Acquisition, unless the last sentence of the definition of "Permitted Acquisition" shall have been satisfied with respect thereto.
“Eligible Receivables” means and includes each Receivable of a Borrower arising in the Ordinary Course and which the Applicable Agent, in its Permitted Discretion, shall deem to be an Eligible Receivable, based on such considerations as the Applicable Agent may from time to time deem appropriate.  A Receivable shall not be deemed eligible unless such Receivable is subject to the Collateral Agent’s or European Collateral Agent’s, as applicable, First Priority perfected security interest and no other Lien (other than Permitted Liens), and is evidenced by an invoice or other documentary evidence satisfactory to the Applicable Agent.  In addition, no Receivable shall be an Eligible Receivable if:
(a)    it arises out of a sale made by any Borrower to an Affiliate of any Borrower or to a Person controlled by an Affiliate of any Borrower;
(b)    it is due or unpaid with respect to all Receivables arising from a sale that has payment terms of more than sixty (60) days after the original due date or one hundred twenty (120) days (or, in the case of an Eligible Receivable of a European Borrower, ninety (90) days) after the original invoice date;

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(c)    fifty percent (50%) or more of the Receivables from such Customer are not deemed Eligible Receivables hereunder. Such percentage may, in the Applicable Agent's Permitted Discretion be increased or decreased from time to time;
(d)    any covenant, representation or warranty contained in this Agreement with respect to such Receivable has been breached;
(e)    an Insolvency Event shall have occurred with respect to such Customer;
(f)    in respect of Receivables of a US Borrower or a Canadian Borrower, the sale is to a Customer outside the continental United States of America or a province of Canada, unless the sale is on letter of credit, guaranty or acceptance terms, in each case acceptable to the Applicable Agent in its Permitted Discretion;
(g)    the sale to the Customer is on a bill-and-hold, guaranteed sale, sale-and-return, sale on approval, consignment or any other repurchase or return basis or is evidenced by chattel paper;
(h)    the Applicable Agent believes, in its Permitted Discretion, that collection of such Receivable is insecure or that such Receivable may not be paid by reason of the Customer’s financial inability to pay;
(i)    in respect of Receivables of a US Borrower or a Canadian Borrower, the Customer is (1) the United States of America, any state or any department, agency or instrumentality of any of them, unless the applicable Borrower assigns its right to payment of such Receivable to the Administrative Agent pursuant to the Assignment of Claims Act of 1940, as amended (31 U.S.C. Sub-Section 3727 et seq. and 41 U.S.C. Sub-Section 15 et seq.) or has otherwise complied with other applicable laws and has complied with Section 6.4 hereof; or (2) Her Majesty in right of Canada or any provincial or local Governmental Authority to the extent (but only to the extent) that the Receivables owed by such Customer are subject to restriction on assignment pursuant to the Financial Administration Act, R.S.C. 1985, c.F-11, as amended, or any similar applicable federal, provincial or local law, regulation or requirement (collectively, “Assignment of Crown Debt Restrictions”), unless the applicable Borrower assigns its right to payment of such Receivable to the Collateral Agent in compliance with the particular provisions of the relevant Assignment of Crown Debt Restrictions and such assignment is enforceable against such Governmental Authority;
(j)    the goods giving rise to such Receivable have not been delivered to and accepted by the Customer or the services giving rise to such Receivable have not been performed by the applicable Borrower and accepted by the Customer or the Receivable otherwise does not represent a final sale;
(k)    the Receivables of the Customer exceed a credit limit determined by the Applicable Agent, in its Permitted Discretion, to the extent such Receivable exceeds such limit;
(l)    the Receivable is subject to any offset, deduction, defense, dispute, rebates, credits, counterclaim or contingency (but such Receivable shall only be ineligible to the extent of such offset, deduction, defense, counterclaim or contingency), the Customer is also a creditor or supplier of a Borrower, the Receivable is contingent in any respect or for any reason or the Receivable is subject to any netting or similar arrangements, including with respect to German law governed Receivables a current account arrangement (Kontokorrentabrede) with the respective Customer;
(m)    the applicable Borrower has made any agreement with any Customer for any deduction therefrom, except for discounts or allowances made in the Ordinary Course for prompt payment, which have been reserved against by the applicable Borrower;

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(n)    any return, rejection or repossession of the merchandise has occurred or the rendition of services has been disputed;
(o)    such Receivable is not payable to the applicable Borrower;
(p)    such Receivable is subject to any Factoring Agreement; 
(q)    in respect of any European Borrower, it is subject to any limitation on assignment or other restriction (whether arising by operation of law, by agreement or otherwise) which would under the local governing law of the contract have the effect of restricting the assignment for or by way of security or the creation of security, in each case unless the European Administrative Agent has determined that such limitation is not enforceable;
(r)    in respect of any European Borrower, the contract or agreement underlying such Receivable is governed by (or, if no governing law is expressed therein, is deemed to be governed by) the laws of any jurisdiction other than any European Borrower, or any Eligible European Jurisdiction (save where such Receivable is supported by a letter of credit (governed by the laws of the People's Republic of China) assigned to the European Collateral Agent and issued by a bank acceptable to European Collateral Agent (in its sole discretion) and subject to any such Receivables not exceeding $1,000,000 in the aggregate);
(s)    in respect of any European Borrower, the relevant Customer (i) does not maintain its chief executive office in any Eligible European Jurisdiction, and (ii) is not organized under applicable law of an Eligible European Jurisdiction, unless, in any such case, such Receivable is backed by a letter of credit acceptable to the European Administrative Agent which, upon and to the extent the European Administrative Agent has made a request therefore, is in the possession of, has been assigned to and is directly drawable by the European Administrative Agent; 
(t)    such Receivable was acquired in connection with a Permitted Acquisition, unless the last sentence of the definition of "Permitted Acquisition" shall have been satisfied with respect thereto; or
(u)    such Receivable is not otherwise satisfactory to the Applicable Agent as determined by the Applicable Agent in its Permitted Discretion.
“Employee Benefit Plan” means any “employee benefit plan” as defined in section 3(3) of ERISA which is or, within the preceding six years, was sponsored, maintained or contributed to by, or required to be contributed by, the Lead Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates.  For the avoidance of doubt, Employee Benefit Plan does not include any Canadian Benefit Plan or Non-US Plan in the exclusion.
“EMU Legislation” means the legislative measures of the European Council for the introduction of, changeover to or operation of a single or unified European currency.
“Environmental Claim” means any investigation, notice, notice of violation, claim, action, suit, proceeding, demand, abatement order or other order or directive (conditional or otherwise), by any Governmental Authority or any other Person, arising (i) pursuant to or in connection with any actual or alleged violation of any Environmental Law; (ii) in connection with any Hazardous Material or any actual or alleged Hazardous Materials Activity; or (iii) in connection with any actual or alleged damage, injury, threat or harm to health, safety, natural resources or the environment.

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“Environmental Laws” means any and all current or future foreign or domestic, federal, provincial or state (or any subdivision of either of them), statutes, ordinances, orders, rules, regulations, judgments, Governmental Authorizations, or any other requirements of Governmental Authorities relating to (i) environmental matters, including those relating to any Hazardous Materials Activity; (ii) the generation, use, storage, transportation or disposal of Hazardous Materials; or (iii) occupational safety and health, industrial hygiene, land use or the protection of human, plant or animal health or welfare, in any manner applicable to the Lead Borrower or any of its Subsidiaries or any Operating Facility.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and any successor thereto.
“ERISA Affiliate” means, as applied to any Person, (i) any corporation which is a member of a controlled group of corporations within the meaning of section 414(b) of the Code of which that Person is a member; (ii) any trade or business (whether or not incorporated) which is a member of a group of trades or businesses under common control within the meaning of section 414(c) of the Code of which that Person is a member; and (iii) any member of an affiliated service group within the meaning of section 414(m) or (o) of the Code of which that Person, any corporation described in clause (i) above or any trade or business described in clause (ii) above is a member.  Any former ERISA Affiliate of the Lead Borrower or any of its Subsidiaries shall continue to be considered an ERISA Affiliate of the Lead Borrower or any such Subsidiary within the meaning of this definition with respect to the period such entity was an ERISA Affiliate of the Lead Borrower or such Subsidiary and with respect to liabilities arising after such period for which the Lead Borrower or such Subsidiary could be liable under the Code or ERISA.
“ERISA Event” means (i) a “reportable event” within the meaning of section 4043 of ERISA and the regulations issued thereunder with respect to any Pension Plan (excluding those for which the provision for 30 day notice to the PBGC has been waived by regulation under subsections .21, .22, .23, .27, .28, .29, .31 and .32); (ii) the failure to meet the minimum funding standard of or other requirements of section 412, 430 or 436 of the Code with respect to any Pension Plan (whether or not waived), the failure to meet the funding standards or other requirements of section 431 or 432 of the Code with respect to any Multiemployer Plan or the failure to make by its due date any required installment, contribution or premium payment to or in respect of any Pension Plan or Multiemployer Plan; (iii) the provision by the administrator of any Pension Plan pursuant to section 4041 (a)(2) of ERISA of a notice of intent to terminate such plan in a distress termination described in section 4041 (c) of ERISA; (iv) the withdrawal by the Lead Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates from any Pension Plan with two or more contributing sponsors or the termination of any such Pension Plan resulting in liability to the Lead Borrower, any of its Subsidiaries or any of their respective Affiliates pursuant to section 4063 or 4064 of ERISA; (v) the institution by the PBGC of proceedings to terminate any Pension Plan, or the occurrence of any event or condition which could reasonably be expected to constitute grounds under ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan; (vi) the imposition of liability on the Lead Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates pursuant to section 4062(e) or 4069 of ERISA or by reason of the application of section 4212(c) of ERISA; (vii) the withdrawal of the Lead Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates in a complete or partial withdrawal (within the meaning of sections 4203 and 4205 of ERISA) from any Multiemployer Plan if there is any potential liability therefor, or the receipt by the Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates of notice from any Multiemployer Plan that it is in reorganization or insolvency pursuant to section 4241 or 4245 of ERISA, or that is in endangered, seriously endangered or critical status pursuant to section 432 of the Code or that it intends to terminate or has terminated under section 4041A or 4042 of ERISA; or (viii) the imposition of a Lien pursuant to section 401 (a)(29) or 430 of the Code or pursuant to ERISA with respect to any Pension Plan.

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“European Adjustment Date” as defined in the definition of “Applicable Margin”.
“European Administrative Agent” as defined in the preamble hereto.
“European Advances” means and includes the Revolving Advances made to the European Borrowers by the Lenders pursuant to Section 2.1(a)(iii), the European Letters of Credit and the European Swing Loans.
“European Banking Day” means any day on which dealings in Euro deposits are conducted by and between banks in the European interbank market.
“European Borrowers” as defined in the preamble hereto.
“European Borrower Revolving Credit Note” as defined in Section 2.1(a).
“European Borrowing Base” means, at any time, as to the European Borrowers, the amount calculated pursuant to the Borrowing Base Certificate most recently delivered to the European Administrative Agent pursuant to this Agreement (as such amount may be adjusted from time to time in accordance with the terms of this Agreement) equal to:
(a)    eighty-five percent (85%) of Eligible Receivables of the European Borrowers, plus
(b)    the lesser of (i) sixty-five percent (65%) of the Value of the Eligible Inventory of the European Borrowers, or (ii) 85% of the Net Orderly Liquidation Value of Eligible Inventory of the European Borrowers, plus
(c)    the sum of the PP&E Component for the European Borrowers, minus
(d)    Reserves;
provided, however, that with respect to European Borrowers incorporated in Germany, the Individual European Borrowing Bases will apply.
 “European Cash Management Products and Services” means agreements or other arrangements entered into with a Lender Counterparty in the Lead Borrower’s or any of its Subsidiaries’ Ordinary Course that provides any of the following products or services to any of the European Credit Parties:  (a) credit cards; (b) credit card processing services; (c) debit cards and stored value cards; (d) purchase cards; (e) ACH transactions; (f) cash management and treasury management services and products, including controlled disbursement accounts or services, lockboxes, automated clearinghouse transactions, overdrafts, interstate depository network services; or (g) foreign currency exchange and foreign currency swaps and hedges.  The indebtedness, obligations and liabilities of any European Credit Party to the provider of any Cash Management Products and Services (including all obligations and liabilities owing to such provider in respect of any returned items deposited with such provider) (the “European Cash Management Obligations”) shall be “European Obligations” hereunder, Guaranteed European Obligations under the Guaranty and secured obligations under the European Collateral Documents, as applicable, and otherwise treated as European Obligations for purposes of each of the other Credit Documents.
“European Cash Management Obligations” as defined in the definition of “European Cash Management Products and Services.”

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“European Collateral” means all of the Collateral which is subject or is purported to be subject to the Liens granted by any of the European Collateral Documents.
“European Collateral Agent” as defined in the preamble hereto.
“European Collateral Documents” means, collectively, the German Collateral Documents and all other instruments, documents, hypothecs, and agreements delivered by any European Credit Party pursuant to this Agreement or any of the other Credit Documents in order to grant and/or confirm to the European Collateral Agent, for the benefit of the Secured Parties, a Lien on any real, personal or mixed property of that European Credit Party as security for the European Obligations.
“European Compliance Authority” means each and all of the European authorities or designees appointed by the European authorities for national compliance purposes, in particular but not limited to the UK government and the German governmental authorities or any other entity in charge of compliance affairs in the UK and Germany.
“European Credit Party” means each European Borrower and each European Guarantor (other than the Lead Borrower and Xerium Canada).
“European Excess Availability” means the amount, as determined by the European Administrative Agent in its Permitted Discretion, calculated at any date, equal to:  (a) the lesser of: (i) the European Borrowing Base at such time and (ii) the Maximum European Credit at such time, minus (b) the sum of: (i) the Aggregate European Exposure at such time, plus (ii) the aggregate amount of all then outstanding and unpaid trade payables and other obligations of the European Borrowers which are past due beyond the due date therefor by at least sixty (60) days (other than trade payables or other obligations being contested or disputed by the European Borrowers in good faith).
“European Facility” means the Revolving Commitment of the Lenders to make Revolving Advances to the European Borrowers pursuant to Section 2.1(a)(iii) and to participate in European Letters of Credit and European Swing Loans.
“European Guarantor” means (i) with respect to the European Obligations of each European Borrower and each other European Credit Party, each other European Borrower, (ii) each Guarantor listed as a European Guarantor in Schedule 1.1(b) and (iii) any other European Subsidiary that becomes a party to the Guaranty.  For purposes of the Guaranty, the term “European Guarantor” as applied to any European Borrower shall refer to such European Borrower as a guarantor of Obligations incurred by another European Credit Party and not to Obligations directly incurred by such European Borrower in its capacity as a European Borrower hereunder.
“European Guarantor Subsidiary” means each European Guarantor other than a Borrower.
“European Hedging Obligations” means any Hedging Obligations owed by a European Credit Party.
“European Inventory Reserve” means, as of any date of determination, such amounts as the European Administrative Agent may from time to time establish and revise in its Permitted Discretion to reflect the estimated costs relating to unpaid freight charges, warehousing or storage charges, taxes, duties, and other similar unpaid costs associated with Inventory of the European Borrowers.
“European Lead Borrower” as defined in the preamble hereto.

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“European Letter of Credit Limit” means $10,000,000.
“European Letter of Credit Obligations” means, at any time, the sum of (a) the aggregate undrawn amount of all European Letters of Credit outstanding at such time, plus (b) without duplication, the aggregate amount of all drawings under European Letters of Credit for which the applicable Issuer has not at such time been reimbursed, plus (c) without duplication, the aggregate amount of all payments made by the Lenders to the applicable Issuer with respect to such Lender’s participation in European Letters of Credit as provided in Section 2.13 for which the European Borrowers have not at such time reimbursed the Lenders, whether by way of a Revolving Advance or otherwise.
“European Letters of Credit” means standby and/or commercial letters of credit, and/or bank guarantees, issued for the account of a European Borrower pursuant to this Agreement.
“European Obligations” means all Obligations owing to any Agent, any Issuer, any Swing Loan Lender, any Lender or any Lender Counterparty by any European Borrower.
“European Payment Office” means, initially, 25 Bank Street, Canary Wharf, London E14 5JP; thereafter, such other office of the European Administrative Agent, if any, which it may designate by notice to the European Lead Borrower and to each Lender to be the European Payment Office.
“European Quarterly Average Undrawn Availability” means, for any Fiscal Quarter, the average of the aggregate amount of European Undrawn Availability for such Fiscal Quarter.
“European Subsidiary” means any Foreign Subsidiary of any European Borrower (other than another European Borrower).
“European Swing Loan Lender” means JPMorgan Chase Bank, N.A., in its capacity as lender of the European Swing Loans.
“European Swing Loan Note” as defined in Section 2.3(a).
“European Swing Loans” as defined in Section 2.3(a).
“European Undrawn Availability” means, on any date of determination, as determined by the European Administrative Agent in its Permitted Discretion, calculated at any date, equal to:  (a) the lesser of: (i) the European Borrowing Base at such time and (ii) the Maximum European Credit at such time, minus (b) the Aggregate European Exposure at such time.
“Euros and €” means the single currency of the Participating Member States.
“Euros Denominated Advances” means each Revolving Advance denominated in Euros at the time of the incurrence thereof.
“Event of Default” means each of the conditions or events set forth in Section 8.1.
“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and any successor statute.

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“Exchange Rate” means the prevailing spot rate of exchange of such bank as the Applicable Agent may reasonably select for the purpose of conversion of one currency to another, at or around 12:00 p.m. Local Time, on the date on which any such conversion of currency is to be made under this Agreement.
“Excluded Swap Obligation” means, with respect to any Credit Party, any Swap Obligation if, and to the extent that, all or a portion of the Guaranty of such Credit Party of, or the grant by such Credit Party of a security interest to secure, such Swap Obligation (or any Guaranty thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Credit Party’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder (each an “ECP”) at the time the Guaranty of such Credit Party or the grant of such security interest becomes effective with respect to such Swap Obligation.  If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guaranty or security interest is or becomes illegal.
“Excluded Taxes” means, with respect to any Agent, any Issuer, any Lender or any other recipient of any payment to be made by or on account of any obligation of any Credit Party hereunder or under any other Credit Document:
(a)    any Taxes imposed on or measured by all or part of such Person’s net income or branch profits, (in each case, however denominated and whether worldwide, or only insofar as such income is, or branch profits are, considered to arise in or to relate to a particular jurisdiction, or otherwise) and franchise (and similar) Taxes imposed on it in lieu of net income taxes, by a jurisdiction in which that Person is organized or in which that Person’s applicable Principal Office (and/or, in the case of a Lender, its applicable lending office) is located, or with which that Person (and/or, in the case of a Lender, its applicable lending office) is deemed to have nexus, other than any such nexus arising from such Person having executed, delivered, or performed its obligations or received a payment under, or enforced this Agreement or any other Credit Document;
(b)    any U.S. withholding tax that is imposed pursuant to any law in effect at the time that such recipient becomes a party to this Agreement, changes its applicable lending office or changes its place of organization, except to the extent that (i) such Person’s assignor (if any) was entitled, immediately prior to the assignment, or such Person was entitled, immediately prior to the change in lending office or change of place of organization, to payments in respect of such Tax under Section 2.29(a) or (ii) such change in such Person’s applicable lending office or place of organization or such assignment is pursuant to the written request of any Credit Party or Section 2.32;
(c)    any U.S. withholding tax attributable to a recipient’s failure to comply with Section 2.29(c);
(d)    any United States federal withholding taxes imposed under FATCA;
(e)    any U.S. federal backup withholding taxes imposed under section 3406 of the Code;
(f)    any interest, additions to tax or penalties in respect of the foregoing;
(g)    Taxes arising by virtue of any Agent, Lender, Issuer or Participant, as applicable, not dealing at arm's length with any Canadian Borrower for purposes of the Income Tax Act (Canada); and

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(h)    Taxes arising by virtue of any Agent, Lender, Issuer or Participant, as applicable, being a “specified non-resident shareholder” of a Canadian Borrower or a non-resident person not dealing at arm's length with a specified non-resident shareholder of a Canadian Borrower, in each case for purposes of the Income Tax Act (Canada).
“Existing Credit Agreement” as defined in the Recitals hereto.
“Factoring Agreements” means agreements providing for the Lead Borrower or any of its Subsidiaries to sell or otherwise dispose of any receivable on arm’s length terms for cash payable at the time of the disposal to a third-party factor on a non-recourse basis, including those certain agreements set forth on Schedule 1.1(a) and provided to the Administrative Agent and the European Administrative Agent and their respective counsel, and all amendments, modifications, replacements, renewals and extensions thereof.
“FATCA” means (a) Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), or any current or future Treasury  regulations or other administrative guidance promulgated thereunder, (b) any treaty, law, regulation or other official guidance enacted in any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction which (in either case) facilitates the implementation of the preceding clause (a), or (c) any agreement entered into pursuant to the implementation of the preceding clauses (a) or (b) with the United States Internal Revenue Service, the US Government or any governmental or taxation authority under any other jurisdiction.
“Federal Funds Effective Rate” means, for any day, the rate per annum (based on a year of 360 days and actual days elapsed and rounded upward to the nearest 1/100 of 1%) announced by the Federal Reserve Bank of New York (or any successor) on such day as being the weighted average of the rates on overnight federal funds transactions arranged by federal funds brokers on the previous trading day, as computed and announced by such Federal Reserve Bank (or any successor) in substantially the same manner as such Federal Reserve Bank computes and announces the weighted average it refers to as the “Federal Funds Effective Rate” as of the date of this Agreement; provided, if such Federal Reserve Bank (or its successor) does not announce such rate on any day, the “Federal Funds Effective Rate” for such day shall be the Federal Funds Effective Rate for the last day on which such rate was announced.
“Federal Funds Open Rate” means, for any day, the rate per annum (based on a year of 360 days and actual days elapsed) which is the daily federal funds open rate as quoted by ICAP North America, Inc. (or any successor) as set forth on the Bloomberg Screen BTMM for that day opposite the caption “OPEN” (or on such other substitute Bloomberg Screen that displays such rate), or as set forth on such other recognized electronic source used for the purpose of displaying such rate as selected by PNC (an “Alternate Source”) (or if such rate for such day does not appear on the Bloomberg Screen BTMM (or any substitute screen) or on any Alternate Source, or if there shall at any time, for any reason, no longer exist a Bloomberg Screen BTMM (or any substitute screen) or any Alternate Source, a comparable replacement rate determined by the Administrative Agent at such time (which determination shall be conclusive absent manifest error); provided however, that if such day is not a Business Day, the Federal Funds Open Rate for such day shall be the “open” rate on the immediately preceding Business Day.  If and when the Federal Funds Open Rate changes, the rate of interest with respect to any advance to which the Federal Funds Open Rate applies will change automatically without notice to the Borrowers, effective on the date of any such change.
“Fee Letters” means, collectively, any fee letter between the Lead Borrower or any Credit Party on the one hand and any of the Agents on the other hand.
“Financial Assets” has the meaning specified in the UCC or the PPSA, as applicable.

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“Financial Officer Certification” means, with respect to the financial statements for which such certification is required, the certification of the chief financial officer or treasurer of the Lead Borrower that such financial statements fairly present, in all material respects, the financial condition of the Lead Borrower and its Subsidiaries as of the dates indicated and the results of their operations and their cash flows for the periods indicated, subject to changes resulting from audit and normal year-end adjustments.
“First Priority” means, with respect to any Lien purported to be created in any Collateral pursuant to any Collateral Document, that such Lien is the only Lien to which such Collateral is subject, other than Permitted Liens which are junior in priority (or, to the extent provided in the Intercreditor Agreement with respect to Term Priority Collateral, senior in priority) to the Collateral Agent’s or European Collateral Agent’s, as the case may be, Lien on such Collateral.
“Fiscal Quarter” means a fiscal quarter of any Fiscal Year.
“Fiscal Year” means the fiscal year of the Lead Borrower and its Subsidiaries ending on December 31 of each calendar year.
“Fixed Charge Coverage Ratio” means the ratio, determined on a consolidated basis for the Lead Borrower and its Subsidiaries for the most recent four consecutive Fiscal Quarter period, of (a) Adjusted EBITDA for such period minus an amount equal to the sum of (i) all cash Capital Expenditures made during such period (except to the extent financed with (x) Indebtedness for borrowed money other than with the Advances or other working capital revolving credit facilities, (y) Net Asset Sale Proceeds or (z) Net Insurance/Condemnation Proceeds), plus (ii) all taxes paid in cash during such period, plus (iii) all cash dividends or other cash distributions made on account of the Lead Borrower’s Capital Stock and all cash repurchases or redemptions of the Lead Borrower’s Capital Stock in each case made during such period to (b) all Fixed Charges paid or payable in cash for such period.
“Fixed Charges” means, with respect to the Lead Borrower and its Subsidiaries on a consolidated basis for any period, the sum (without duplication) of (i) Consolidated Interest Expense during such period, plus (ii) all regularly scheduled (as determined as of the first day of the respective period) and mandatory principal payments of Indebtedness (including the principal component of Capital Leases) made or required to be made during such period, plus (iii) the applicable Monthly Amortization Amount for such period.
“Fixed Rate Loan” means a BA Rate Loan or a LIBOR Rate Loan.
“Flood Hazard Property” means any improved Real Estate Asset subject to a Mortgage in favor of the Collateral Agent, for the benefit of the Secured Parties, and located in whole or in part in an area designated by the Federal Emergency Management Agency or other Governmental Authority as having special flood or mud slide hazards.
“Foreign In-Transit Canadian Inventory” means Inventory of a Canadian Borrower that is in transit from a location outside Canada to any location within Canada of such Canadian Borrower or a Customer of such Canadian Borrower.
“Foreign In-Transit US Inventory” means Inventory of a US Borrower that is in transit from a location outside the United States to any location within the United States of such US Borrower or a Customer of such US Borrower.
“Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.

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“Funding Notice” means a notice in a form reasonably acceptable to the Applicable Agent.
“GAAP” means, subject to the limitations on the application thereof set forth in Section 1.2, for the Lead Borrower and its Subsidiaries, United States generally accepted accounting principles in effect as of the date of determination thereof.
“Germany” means the Federal Republic of Germany. 
“German Collateral Document” means each pledge agreement, security assignment agreement, security transfer agreement, land charge deed, security purpose agreement or other agreement that is entered into by any German Credit Party in favour of the European Collateral Agent, and any other pledge agreement, security assignment agreement, security transfer agreement, land charge deed, security purpose agreement or other agreement entered into by a Credit Party granting a security interest in favour of the European Collateral Agent that is governed by the laws of Germany, in each case, in form and substance satisfactory to the European Collateral Agent and entered into pursuant to the terms of this Agreement or any other Credit Document. 
“German Credit Parties” means, collectively the European Borrowers and any Credit Party that (i) is organized under the laws of Germany, and/or (ii) becomes a party to a German Collateral Document. 
“German Insolvency Event” means;
(a)    a German Relevant Entity is unable or admits inability to pay its debts as they fall due or is deemed to or declared to be unable to pay its debts under applicable law, suspends or threatens to suspend making payments on any of its debts or, by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness, including a stoppage of payment situation (Zahlungsunfähigkeit), a status of over-indebtedness (Überschuldung), the presumed inability to pay its debts as they fall due (drohende Zahlungsunfähigkeit), or actual insolvency proceedings;

(b) a moratorium is declared in respect of any Indebtedness of a German Relevant Entity, or

(c) (i) such German Relevant Entity is otherwise in a situation to file for insolvency because of any of the reasons set out in Sections 17 to 19 of the German Insolvency Code (Insolvenzordnung) and (ii) a petition for insolvency proceedings in respect of its assets (Antrag auf Eröffnung eines Insolvenzverfahrens) has been filed based on section 17 to section 19 of the German Insolvency Code (Insolvenzordnung).

“German Relevant Entity” means any German Credit Party or any Credit Party capable of becoming subject of insolvency proceedings under the German Insolvency Code (Insolvenzordung).
“Global Excess Availability” means the amount, as determined by the Administrative Agent (and, in connection with the European Facility components thereof, the European Administrative Agent) in its Permitted Discretion, calculated at any date, equal to:  (a) the lesser of: (i) the Borrowing Base at such time and (ii) the Maximum Credit at such time, minus (b) the sum of: (i) the Aggregate Exposure at such time, plus (ii) the aggregate amount of all then outstanding and unpaid trade payables and other obligations of the Borrowers which are past due beyond the due date therefor by at least sixty (60) days (other than trade payables or other obligations being contested or disputed by the Borrowers in good faith).
“Global Undrawn Availability” means, on any date of determination, as determined by the Administrative Agent (and, in connection with the European Facility components thereof, the European 

33

Administrative Agent) in its Permitted Discretion, calculated at any date, equal to:  (a) the lesser of: (i) the Borrowing Base at such time and (ii) the Maximum Credit at such time, minus (b) the Aggregate Exposure at such time.
“Governmental Acts” means any act or omission, whether rightful or wrongful, of any present or future de jure or de facto government or Governmental Authority.
“Governmental Authority” means any federal, provincial, state, municipal, national or other government, governmental department, commission, board, bureau, court, agency or instrumentality or political subdivision thereof or any entity or officer exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to any government or any court, in each case whether associated with a state of the United States, the United States, or any foreign entity or government.
“Governmental Authorization” means any permit, license, authorization, plan, directive, consent order or consent decree of or from any Governmental Authority.
“Grantor” as defined in the Security Agreements.
“Guaranteed Canadian Obligations” as defined in Section 7.1.
“Guaranteed European Obligations” as defined in Section 7.1.
“Guaranteed Obligations” as defined in Section 7.1.
“Guarantor” means each US Guarantor, each Canadian Guarantor and each European Guarantor.
“Guarantor Subsidiary” means each US Guarantor Subsidiary, each Canadian Guarantor Subsidiary and each European Guarantor Subsidiary.
“Guaranty” means the guaranty of each Guarantor set forth in Section 7 or any other guaranty which purports to guaranty all or a portion of the Obligations.
“Hazardous Materials” means any substance, material or waste that is regulated, classified, or otherwise characterized under or pursuant to any Environmental Law as “hazardous,” “toxic,” “pollutant,” “contaminant,” “radioactive,” or words of similar meaning or effect, including petroleum and its by-products, asbestos and polychlorinated biphenyls.
“Hazardous Materials Activity” means any past, current, proposed or threatened activity, event or occurrence involving any Hazardous Materials, including the use, manufacture, possession, storage, holding, presence, existence, location, Release, threatened Release, discharge, placement, generation, transportation, processing, construction, treatment, abatement, removal, remediation, disposal, disposition or handling of any Hazardous Materials, and any corrective action or response action with respect to any of the foregoing.
“Hedging Obligations” means, with respect to any Person, the obligations of such Person under (i) currency exchange, interest rate or commodity swap agreements, currency exchange, interest rate or commodity cap agreements and currency exchange, interest rate or commodity collar agreements entered into with a Lender Counterparty in the Lead Borrower’s or any of its Subsidiaries’ Ordinary Course and not for speculative purposes and (ii) other agreements or arrangements designed to protect such Person against fluctuations in currency exchange, interest rates or commodity prices entered into with a Lender Counterparty in the Lead Borrower’s or any of its Subsidiaries’ Ordinary Course and not for speculative purposes; provided 

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that the obligations owing to a Lender or an Affiliate of a Lender in connection with applicable documents creating the Hedging Obligations entered into by such Lender or an Affiliate of such Lender during any period in which such Lender was a Defaulting Lender shall not be Hedging Obligations to the extent incurred or arising during such period.
“Highest Lawful Rate” means the maximum lawful interest rate, if any, that at any time or from time to time may be contracted for, charged, or received under the laws applicable to any Lender which are presently in effect or, to the extent allowed by law, under such applicable laws which may hereafter be in effect and which allow a higher maximum non- usurious interest rate than applicable laws now allow.
“Historical Financial Statements” means, as of the Closing Date, (i) the audited financial statements of the Lead Borrower and its Subsidiaries, for the Fiscal Year ended December 31, 2012, consisting of balance sheets and the related consolidated statements of income, stockholders’ equity and cash flows for such Fiscal Year, and (ii) the unaudited financial statements of the Lead Borrower and its Subsidiaries as at the Fiscal Quarter ended September 30, 2013, consisting of a balance sheet and the related consolidated statements of income, stockholders’ equity and cash flows for the three, six or nine month period, as applicable, ending on such date, and, in the case of clauses (i) and (ii), certified by the chief financial officer or treasurer of the Lead Borrower that they fairly present, in all material respects, the financial condition of the Lead Borrower and its Subsidiaries as at the dates indicated and the results of their operations and their cash flows for the periods indicated, subject to changes resulting from audit and normal year-end adjustments and, in each case, including such separate financial statements covering the European Borrowers on a stand-alone basis as provided to European Administrative Agent on or prior to the Closing Date.
“IFRS” means international accounting standards within the meaning of the IAS Regulation 1606/2002.
“Immaterial Account” means any deposit, securities or investment account that is (i) exclusively a payroll account, (ii) a zero-balance account or (iii) an account having an average monthly balance of less than $1,500,000.
“Immaterial Subsidiary” means, subject to the proviso below, each direct or indirect Subsidiary of the Lead Borrower designated as such by the Lead Borrower to the Administrative Agent in writing that meets the criteria set forth in clauses (i) and (ii) below, in each case, as of the date of the most recent balance sheet required to be delivered pursuant to Section 5.1: (i) such Subsidiary has operations that generated Adjusted EBITDA not exceeding $1,000,000 for the most recently completed Fiscal Year and (ii) such Subsidiary had total assets as of the end of the most recently completed Fiscal Year the aggregate value of which was equal to or less than one percent (1.0%) of the Consolidated Total Assets of the Lead Borrower and its Subsidiaries, taken as a whole; provided, however, that at no time shall (x) the aggregate total amount of Adjusted EBITDA generated by all Immaterial Subsidiaries for the most recently completed Fiscal Year exceed $5,000,000 or (y) the aggregate value of the total assets of all Immaterial Subsidiaries as of the end of the most recently completed Fiscal Year exceed five percent (5.0%) of the Consolidated Total Assets of the Lead Borrower and its Subsidiaries, taken as a whole; in each case, calculated on a consolidated basis in accordance with GAAP on the basis of the financial information most recently delivered to the Administrative Agent by the Lead Borrower pursuant to Section 5.1.  Notwithstanding the foregoing, for the purposes of Sections 8.1(f) and (g), (i) no Borrower shall be considered an Immaterial Subsidiary and (ii) no Guarantor (for so long as its Guaranty is in effect) shall be considered an Immaterial Subsidiary.
“Impacted Interest Period” has the meaning assigned to such term in the definition of “LIBOR Rate”.

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“Imported Goods Agreement” means an imported goods agreement (or similar agreement), between an Eligible Customs Broker and the Administrative Agent, in form and substance reasonably satisfactory to the Administrative Agent.
“Increasing Lender” as defined in Section 2.22(a).
“Indebtedness” means, with respect to any Person, the principal and premium (if any) of any indebtedness of such Person, whether or not contingent: (i) in respect of borrowed money, (ii) evidenced by bonds, notes, debentures or similar instruments or letters of credit or bankers’ acceptances (or, without duplication, reimbursement agreements in respect thereof), (iii) representing the deferred and unpaid purchase price of any property, other than (A) trade payables incurred in the Ordinary Course, (B) any earn-out obligation until such obligation appears in the liabilities section of the balance sheet of such Person, and (C) liabilities associated with customer prepayments and deposits, (iv) in respect of Capitalized Lease Obligations, (v) any obligation of such Person the primary purpose or intent of which is to provide assurance to an obligee that any obligation constituting Indebtedness of the obligor thereof will be paid or discharged, or any agreement relating thereto will be complied with, or the holders thereof will be protected (in whole or in part) against loss in respect thereof, (vi) Attributable Indebtedness or (vii) representing any Hedging Obligations.  To the extent not otherwise included, Indebtedness shall include (a) any obligation of such Person to be liable for, or to pay, as obligor, guarantor or otherwise, on the Indebtedness of another Person (other than by endorsement of negotiable instruments for collection in the Ordinary Course), and (b) Indebtedness of another Person secured by a Lien on any asset owned by such Person (whether or not such Indebtedness is assumed by such Person); provided, however, that the amount of such Indebtedness will be the lesser of (A) the fair market value of such asset at such date of determination and (B) the amount of such Indebtedness of such other Person.
Notwithstanding the foregoing, any obligation of such Person or any of its Subsidiaries in respect of (x) minimum guaranteed commissions, or other similar payments, to clients, minimum returns to clients or stop loss limits in favor of clients or indemnification obligations to clients, in each case pursuant to contracts to provide services to clients entered into in the Ordinary Course, and (y) account credits to participants under any compensation plan, shall be deemed not to constitute Indebtedness.
 
“Indemnified Liabilities” means, collectively, any and all liabilities, obligations, losses, damages (including natural resource damages), penalties, claims (including Environmental Claims), costs (including the costs of any investigation, study, sampling, testing, abatement, cleanup, removal, remediation or other response action necessary to remove, remediate, clean up or abate any Hazardous Materials Activity), expenses and disbursements of any kind or nature whatsoever (including the reasonable fees and disbursements of counsel for Indemnitees in connection with any investigative, administrative or judicial proceeding commenced or threatened by any Person, whether or not any such Indemnitee shall be designated as a party or a potential party thereto, and any fees or expenses incurred by Indemnitees in enforcing this indemnity), whether direct, indirect or consequential and whether based on any federal, provincial, state or foreign laws, statutes, rules or regulations (including securities and commercial laws, statutes, rules or regulations and Environmental Laws and including any fees or expenses resulting from changes in laws in effect on the date of this Agreement), on common law or equitable cause or on contract or otherwise, that may be imposed on, incurred by, or asserted against any such Indemnitee, in any manner relating to or arising out of (i) this Agreement or the other Credit Documents or the transactions contemplated hereby (including, for the avoidance of doubt, any Deposit Account Control Agreements) or thereby (including the Lenders’ agreement to make a Credit Extension or the use or intended use of the proceeds thereof, or any enforcement of any of the Credit Documents (including any sale of, collection from, or other realization upon any of the Collateral or the enforcement of the Guaranty)); or (ii) any Environmental Claim or any Hazardous Materials 

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Activity relating to or arising from, directly or indirectly, any past or present activity, operation, land ownership, or practice of the Lead Borrower or any of its Subsidiaries.
“Indemnified Taxes” as defined in Section 2.29(a).
“Indemnitee” as defined in Section 10.3.
“Individual Aggregate European Exposure” means, at any time, with respect to any individual European Borrower, the sum of (a) the Dollar Equivalent of the aggregate principal amount of all Advances to the such European Borrower outstanding at such time and (b) the Dollar Equivalent of the aggregate amount of all European Letter of Credit Obligations issued on behalf of such European Borrower at such time (exclusive of such European Borrower’s European Letter of Credit Obligations which are repaid with the proceeds of, and simultaneously with the incurrence of, the respective incurrence of Advances by such European Borrower).
“Individual European Borrowing Base” means, at any time, as to any individual European Borrower, the amount calculated pursuant to the Borrowing Base Certificate most recently delivered to the European Administrative Agent pursuant to this Agreement (as such amount may be adjusted from time to time in accordance with the terms of this Agreement) equal to:
(a)    eighty-five percent (85%) of Eligible Receivables of such European Borrower, plus
(b)    the lesser of (i) sixty-five percent (65%) of the Value of the Eligible Inventory of such European Borrower, or (ii) 85% of the Net Orderly Liquidation Value of Eligible Inventory of such European Borrower, plus
(c)    the PP&E Component, minus
(d)    Reserves attributable to such European Borrower.
“Information” as defined in Section 10.17.
“Initial Business Plan” means the Business Plan of the Lead Borrower and its Subsidiaries delivered prior to the Original Closing Date to the Administrative Agent.
“Insolvency Event” means, with respect to any Person, including without limitation any Lender,  such Person or such Person’s direct or indirect Parent Company (a) becomes the subject of a bankruptcy or insolvency proceeding (including any proceeding under any Insolvency Laws), (b) has had a receiver, interim receiver, receiver and manager, conservator, trustee, administrator, monitor, liquidator, custodian, assignee for the benefit of creditors or similar Person charged with the reorganization or liquidation of its business appointed for it or has called a meeting of its creditors, (c) admits in writing its inability, or be generally unable, to pay its debts as they become due or cease operations of its present business, (d) with respect to a Lender, such Lender is unable to perform hereunder due to the application of applicable law, or (e) in the good faith determination of any Agent, has taken any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any such proceeding or appointment of a type described in clause(a) or (b), provided that an Insolvency Event shall not result solely by virtue of any ownership interest, or the acquisition of any ownership interest, in such Person or such Person’s direct or indirect Parent Company by a Governmental Authority or instrumentality thereof if, and only if, such ownership interest does not result in or provide such Person with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Person (or such Governmental 

37

Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made by such Person.
“Insolvency Laws” means any of the Bankruptcy and Insolvency Act (Canada), the Companies’ Creditors Arrangement Act (Canada), the Winding-Up and Restructuring Act (Canada), the Bankruptcy Code, the German Insolvency Code (Insolvenzordnung) and the applicable reorganization provisions of the applicable corporate statute under which a corporation is formed, each as now and hereafter in effect, any successors to such statutes and any other applicable insolvency or other similar law of any jurisdiction, including any law of any jurisdiction permitting a debtor to obtain a stay or a compromise of the claims of its creditors against it.
“Intellectual Property” means property constituting a patent, copyright, trademark (or any application in respect of the foregoing), service mark, copyright, copyright application, trade name, mask work, trade secrets, design right, assumed name or license or other right to use any of the foregoing under applicable law.
“Intellectual Property Claim” means the assertion, by any means, by any Person of a claim that any Borrower’s ownership, use, marketing, sale or distribution of any Inventory, equipment, Intellectual Property or other property or asset is violative of any ownership of or right to use any Intellectual Property of such Person.
“Intercompany Borrower” as defined in Section 6.1(q).
“Intercreditor Agreement” means the Intercreditor Agreement, substantially in the form of Exhibit L, among the Collateral Agent and the Term Agent and acknowledged by the Lead Borrower and the other US Credit Parties, as amended on the Closing Date.
“Interest Period” means the period provided for any LIBOR Rate Loan or BA Rate Loan pursuant to Section 2.2(b).
“Internet Posting” as defined in Section 10.1(b).
“Interpolated Rate” means, at any time, for any Interest Period, the rate per annum (rounded to the same number of decimal places as the relevant LIBO Screen Rate) determined by the European Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the LIBO Screen Rate (for the longest period for which the LIBO Screen Rate is available for the applicable currency) that is shorter than the Impacted Interest Period and (b) the LIBO Screen Rate for the shortest period (for which such LIBO Screen Rate is available for the applicable currency) that exceeds the Impacted Interest Period, in each case, as of the Specified Time on the Quotation Day for such Interest Period. When determining the rate for a period which is less than the shortest period for which the LIBO Screen Rate is available, the LIBO Screen Rate for purposes of paragraph (a) above shall be deemed to be the overnight screen rate where "overnight screen rate" means, in relation to any currency, the overnight rate for such currency determined by the European Administrative Agent from such service as the European Administrative Agent may select.
“Inventory” means and includes as to each Borrower, all of such Borrower’s inventory (as defined in Article 9 of the UCC as in effect in the State of New York, under the PPSA, as applicable) and all of such Borrower’s goods, merchandise and other personal property, wherever located, to be furnished under any consignment arrangement, contract of service or held for sale or lease, all raw materials, work in process, finished goods and materials and supplies of any kind, nature or description which are or might be used or 

38

consumed in such Borrower’s business or used in selling or furnishing such goods, merchandise and other personal property, and all documents of title.
“Investment” means (i) any direct or indirect purchase or other acquisition by the Lead Borrower or any of its Subsidiaries of, or of a beneficial interest in, any of the Securities of any other Person; (ii) any direct or indirect redemption, retirement, purchase or other acquisition for value, by any Subsidiary of the Lead Borrower from any Person, of any Capital Stock of such Person; and (iii) any direct or indirect loan, advance (other than advances to employees for moving, entertainment and travel expenses, drawing accounts and similar expenditures in the Ordinary Course) or capital contribution by the Lead Borrower or any of its Subsidiaries to any other Person, including all indebtedness and accounts receivable from that other Person that are not current assets or did not arise from sales to that other Person in the Ordinary Course.  The amount of any Investment shall be the original cost of such Investment plus the cost of all additions thereto, without any adjustments for increases or decreases in value, or write ups, write downs or write offs with respect to such Investment.
“ISP98 Rules” as defined in Section 2.11(b).
“Issuer” means (a) with respect to the Domestic Facility, (i) the Administrative Agent in its capacity as the initial issuer of Letters of Credit for the account of the US Borrowers or Canadian Borrowers under this Agreement, or (ii) any other Person which the Administrative Agent in its discretion shall designate as the issuer of and cause to issue any particular Letter of Credit under this Agreement in place of the Administrative Agent as issuer, and (b) with respect to the European Facility, (i) the European Administrative Agent in its capacity as the initial issuer of Letters of Credit for the account of the European Borrowers under this Agreement, or (ii) any other Person which the European Administrative Agent in its discretion shall designate as the issuer of and cause to issue any particular Letter of Credit under this Agreement in place of the European Administrative Agent as issuer. Any Issuer may, in its discretion, arrange for one or more Letters of Credit to be issued by one or more Affiliates of such Issuer (and such Affiliate shall be deemed to be an “Issuer” for all purposes of the Credit Documents).
“Italia SpA” means Xerium Italia SpA, an Italian società per azioni.
“Joint Venture” means a joint venture, partnership or other similar arrangement, whether in corporate, partnership or other legal form; provided, in no event shall any Subsidiary of any Person be considered to be a Joint Venture to which such Person is a party.
“Judgment Currency” as defined in Section 2.33.
“Landlord Consent and Estoppel” means, with respect to any Leasehold Property, a letter, certificate or other instrument in writing from the lessor under the related lease, pursuant to which, among other things, the landlord consents to the granting of a Mortgage on such Leasehold Property by the Domestic Credit Party tenant, such Landlord Consent and Estoppel to be in form and substance acceptable to the Collateral Agent in its reasonable discretion, but in any event sufficient for the Collateral Agent to obtain a Title Policy with respect to such Mortgage.  
“Landlord Personal Property Collateral Access Agreement” means a Landlord Waiver and Consent Agreement either substantially in the form of Exhibit I (with such amendments or modifications thereto as may be approved by the Applicable Agent), or otherwise in form and substance satisfactory to the Applicable Agent.  
“Lead Borrower” as defined in the preamble hereto.

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“Leasehold Property” means any leasehold or subleasehold interest of any Credit Party as lessee or sublessee, respectively, under any lease or sublease of real property, other than any such leasehold or subleasehold interest designated from time to time by the Collateral Agent (with respect to a US Credit Party or Canadian Credit Party) in its sole discretion as not being required to be included in the Collateral.
“Lender” means each financial institution listed on Appendix A and any other Person that becomes a Lender party hereto pursuant to a Commitment Transfer Supplement or Section 2.22. Notwithstanding anything to the contrary contained herein, each Lender may at any time or from time to time designate, by written notice to the Applicable Agent, one or more lending offices (which, for this purpose, may include Affiliates or branches of the respective Lender) for the various Advances made, and Letters of Credit and Swing Loans participated in, by such Lender (including, without limitation, by designating a separate lending office (or Affiliate or branch) to act as such with respect to such Advances and Letters of Credit).  Each lending office, Affiliate or branch of any Lender designated as provided above shall, for all purposes of this Agreement and the other Credit Documents, be treated in the same manner as the respective designating Lender (and shall be entitled to all indemnities and similar provisions in respect of its acting as such hereunder).  In furtherance of the foregoing, (i) until further notified by PNC Bank, National Association to the Administrative Agent, PNC Bank Canada Branch shall, in respect of PNC Bank, National Association’s Revolving Commitments hereunder, make the Revolving Advances to the Canadian Borrowers, make Canadian Swing Loans to the Canadian Borrowers and participate in Canadian Letters of Credit issued for the account of the Canadian Borrowers and (b) until further notified by JPMorgan Chase Bank, N.A. to the Administrative Agent, JPMorgan Chase Bank, N.A., Toronto Branch shall, in respect of JPMorgan Chase Bank, N.A.’s Revolving Commitments hereunder, make the Revolving Advances to the Canadian Borrowers and participate in Canadian Letters of Credit issued for the account of the Canadian Borrowers, and (ii) until further notified by JPMorgan Chase Bank, N.A. to the European Administrative Agent, JPMorgan Chase Bank, N.A., London Branch, shall, in respect of JPMorgan Chase Bank, N.A.’s Revolving Commitments hereunder, make the Revolving Advances to the European Borrowers, make European Swing Loans to the European Borrowers and participate in European Letters of Credit issued for the account of the European Borrowers. 
“Lender Counterparty” means each Agent, each Lender, or any Affiliate of any Agent or a Lender, counterparty to the applicable documentation creating Hedging Obligations or Cash Management Obligations (including any Person who was an Agent or a Lender (or any Affiliate thereof) at the time of entering into the applicable documentation creating Hedging Obligations or Cash Management Obligations, even if such Person (or its Affiliate, as the case may be) subsequently ceases to be an Agent or a Lender) including, without limitation, each such Affiliate that enters into a joinder agreement with the Collateral Agent or European Collateral Agent, in each case so long as (i) the Applicable Lead Borrower has notified the Applicable Agent in writing that, for purposes of the Credit Documents, such Hedging Obligations or Cash Management Obligations are to be secured by the Collateral on a pari passu basis with the Collateral securing the Obligations and (ii) that the Applicable Lead Borrower shall not have designated such Lender Counterparty as a “Lender Counterparty” (or similar defined term) under the Term Credit Documents.
“Letter of Credit Application” as defined in Section 2.11(a).
“Letter of Credit Borrowing” as defined in Section 2.13(d).
“Letter of Credit Exposure” means, with respect to any Lender at any time, its pro rata percentage of Letter of Credit Obligations outstanding at such time.
“Letter of Credit Fees” as defined in Section 2.24.

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“Letter of Credit Obligations” means the sum (without duplication) of (a) all amounts owing by the Borrowers for any drawings under Letters of Credit (including any bankers’ acceptances or other payment obligations arising therefrom) and (b) the undrawn stated amount of all outstanding Letters of Credit.
“Letters of Credit” means the US Letters of Credit, the Canadian Letters of Credit and the European Letters of Credit..
“Leverage Ratio” means, with respect to the Lead Borrower on any date, the ratio of (a) the remainder of (I) the Debt of the Lead Borrower and its Subsidiaries as of such date minus (II) the aggregate amount of Unrestricted Cash and Cash Equivalents in excess of $25,000,000 held by the Lead Borrower and its Subsidiaries on such date to (b) the Adjusted EBITDA of the Lead Borrower and its Subsidiaries for the period of four consecutive Fiscal Quarters ending on such date (or if such date is not the last day of a Fiscal Quarter of the Lead Borrower, for the period of four consecutive Fiscal Quarters most recently ended).
“LIBOR Rate” means:
(a)    for any LIBOR Rate Loan to any US Borrower or Canadian Borrower, for the then current Interest Period relating thereto, the interest rate per annum determined by the Administrative Agent by dividing (the resulting quotient rounded upwards, if necessary, to the nearest 1/100th of 1% per annum) (a) the rate which appears on the Bloomberg Page BBAM1 (or on such other substitute Bloomberg page that displays rates at which Dollar deposits are offered by leading banks in the London interbank deposit market), or the rate which is quoted by another source selected by the Administrative Agent which has been approved by the ICE Benchmark Administration (or any other Person that takes over the administration of such rate) as an authorized information vendor for the purpose of displaying rates at which Dollar deposits are offered by leading banks in the London interbank deposit market (a “LIBOR Alternate Source”), at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest Period as the London interbank offered rate for Dollars for an amount comparable to such LIBOR Rate Loan and having a borrowing date and a maturity comparable to such Interest Period (or if there shall at any time, for any reason, no longer exist a Bloomberg Page BBAM1 (or any substitute page) or any LIBOR Alternate Source, a comparable replacement rate determined by the Administrative Agent at such time (which determination shall be conclusive absent manifest error)), by (b) a number equal 1.00 minus the Reserve Percentage.  The LIBOR Rate may also be expressed by the following formula:
	
		
	 
	Average of London interbank offered rates  quoted by Bloomberg or  appropriate Successor as shown on

	LIBOR Rate =
	Bloomberg Page BBAM1
 
1.00 – Reserve Percentage

The LIBOR Rate shall be adjusted with respect to any LIBOR Rate Loan that is outstanding on the effective date of any change in the Reserve Percentage as of such effective date.  The Administrative Agent shall give reasonably prompt notice to the Lead Borrower of the LIBOR Rate as determined or adjusted in accordance herewith, which determination shall be conclusive absent manifest error; 
OR
(b)    for any LIBOR Rate Loan to any European Borrower, for the then current Interest Period relating thereto, (i) the London interbank offered rate administered by the ICE Benchmark 

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Administration or any other person that takes over the administration of such rate for Pounds Sterling and Dollars, and (ii) the European interbank offered rate administered by the ICE Benchmark Administration or any other person that takes over the administration of such rate for Euros, in each case (adjusted for statutory reserve requirements for Eurocurrency liabilities) for the applicable Interest Period as displayed on the relevant pages of the Reuters screen or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate as shall be selected by the European Administrative Agent from time to time in its reasonable discretion (the “LIBO Screen Rate”) at approximately 11:00 a.m., Local Time, two (2) Business Days prior to the commencement of such Interest Period; provided that if the LIBO Screen Rate for a LIBOR Rate Loan shall not be available at such time for a period equal in length to such Interest Period (an “Impacted Interest Period”), then the LIBO Rate for that LIBOR Rate Loan shall be the Interpolated Rate at such time subject to Section 2.27 in the event that the European Administrative Agent shall conclude that it shall not be possible to determine such Interpolated Rate (which conclusion shall be conclusive and binding absent manifest error).
“LIBOR Rate Loan” means any Advance in Dollars, Pounds Sterling or Euros, as the case may be, that bears interest based on the LIBOR Rate.
“License Agreement” means any agreement between any Borrower and a Licensor pursuant to which such Borrower is authorized to use any Intellectual Property in connection with the manufacturing, marketing, sale or other distribution of any Inventory of such Borrower or otherwise in connection with such Borrower’s business operations.
“Licensor” shall mean any Person from whom any Borrower obtains the right to use (whether on an exclusive or non-exclusive basis) any Intellectual Property in connection with such Borrower’s manufacture, marketing, sale or other distribution of any Inventory or otherwise in connection with such Borrower’s business operations.
“Licensor/Agent Agreement” means an agreement between the Applicable Agent and a Licensor, in form and content satisfactory to the Applicable Agent, by which the Applicable Agent is given the unqualified right, vis-a-vis such Licensor, to enforce the Applicable Agent’s Liens with respect to and to dispose of any Borrower’s Inventory with the benefit of any Intellectual Property applicable thereto, irrespective of such Borrower’s default under any License Agreement with such Licensor.
“Lien” means (i) any lien, mortgage, pledge, assignment, security interest, charge, hypothec or encumbrance of any kind (including any agreement to give any of the foregoing, any conditional sale or other title retention agreement, and any lease in the nature thereof) and any option, trust or other preferential arrangement having the practical effect of any of the foregoing and (ii) in the case of Securities, any purchase option, call or similar right of a third party with respect to such Securities.
“Local Time” means (a) local time in London with respect to (i) the receipt and sending of notices by and to, and disbursement by or payment to, the European Administrative Agent, or any Lender or Issuer with respect to the European Facility or the European Obligations and (ii) with respect to the times for the determination of LIBOR Rate by the European Administrative Agent under the European Facility and the determination of the Overnight LIBOR Rate, and (b) in all other circumstances, New York time.
“London Banking Day” means any day on which dealings in Dollar or Pounds Sterling deposits are conducted by and between banks in the London interbank market or the principal financial center of such currency (and, if the Advances or Letter of Credit Borrowings which are the subject of a borrowing, drawing 

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payment, reimbursement or rate selection are denominated in Euro, the term Business Day shall also exclude any day on which the TARGET2 payment system is not open for the settlement of payments in Euros.
“Margin Stock” as defined in Regulation U of the Board of Governors of the Federal Reserve System as in effect from time to time.
“Material Adverse Effect” means any effect, event, matter or circumstance which is materially adverse to: (a) the business, assets or financial condition of the Lead Borrower and its Subsidiaries taken as a whole, (b) the ability of the Credit Parties, taken as a whole, to perform the Obligations in accordance with the terms of the Credit Documents or (c) the rights and remedies of the Agents or the Lenders under the Credit Documents, taken as a whole.
“Material Contract” means any Senior Note Document, any Term Credit Document or any contract or other arrangement to which the Lead Borrower or any of its Subsidiaries is a party (other than the Credit Documents) for which breach, nonperformance, cancellation or failure to renew could reasonably be expected to have a Material Adverse Effect.
“Material Non-Public Information” means information which is (a) not publicly available and (b) material with respect to the Lead Borrower and its Subsidiaries or their respective securities for purposes of United States federal and state securities laws.
“Material Real Estate Asset” means (a) any fee-owned Real Estate Asset having a fair market value in excess of $1,000,000 as of the date of the acquisition thereof and (b) all Leasehold Properties other than those with respect to which the aggregate payments under the terms of the lease or sublease are less than $500,000 per annum (unless such lease or sublease is a ground lease), in each case located in the United States.
“Maximum Consolidated Capital Expenditures” as defined in Section 6.8.
“Maximum Credit” means $55,000,000 (subject to adjustment as provided herein).
“Maximum Domestic Credit” means $40,000,000 (subject to adjustment as provided herein).

“Maximum European Credit” means $15,000,000 (subject to adjustment as provided herein).
“Maximum European Swing Loan Advance Amount” means $10,000,000.

“Maximum Swing Loan Advance Amount” means $10,000,000.

“Maximum Undrawn Amount” means, with respect to any outstanding Letter of Credit as of any date of determination, the amount of such Letter of Credit that is or may become available to be drawn, including all automatic increases provided for in such Letter of Credit, whether or not any such automatic increase has become effective.
“Moody’s” means Moody’s Investors Service, Inc.
“Monthly Amortization Amount” as defined in the definition of PP&E Component.
“Mortgage” means a Mortgage substantially in the form of Exhibit H, with such changes thereto (or such other form) as may be acceptable to the Collateral Agent in its reasonable discretion.

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“Multiemployer Plan” means any Employee Benefit Plan which is a “multiemployer plan” as defined in section 3(37) or 4001(a)(3) of ERISA.
“National Flood Insurance Program” means the program created by the United States
Congress pursuant to the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of
1973, the National Flood Insurance Reform Act of 1994 and the Flood Insurance Reform Act of 2004, in
each case as amended from time to time, and any successor statutes.

“NAIC” means The National Association of Insurance Commissioners, and any successor thereto.
“Negotiable Document” means a Document that is “negotiable” within the meaning of Article 7 of the UCC.
“Net Asset Sale Proceeds” means, with respect to any Asset Sale, an amount equal to: (i) Cash payments (including any Cash received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received) received by the Lead Borrower or any of its Subsidiaries from such Asset Sale, minus (ii) any bona fide direct costs (including, without limitation, reasonable transaction costs) incurred in connection with such Asset Sale, including (a) Taxes payable by the seller directly as a result of any gain recognized in or otherwise directly resulting from such Asset Sale, (b) payment of the outstanding principal amount of, premium or penalty, if any, and interest on any Indebtedness (other than the Term Loans and any Advance) that is secured by a Lien on the stock or assets in question and that is required to be repaid under the terms thereof as a result of such Asset Sale and (c) a reasonable reserve for any indemnification payments (fixed or contingent) attributable to seller’s indemnities and representations and warranties to purchaser in respect of such Asset Sale undertaken by the Lead Borrower or any of its Subsidiaries in connection with such Asset Sale.
“Net Insurance/Condemnation Proceeds” means an amount equal to: (i) any Cash payments or proceeds received by the Lead Borrower or any of its Subsidiaries (a) under any casualty insurance policy in respect of a covered loss thereunder (excluding proceeds of business interruption insurance) or (b) as a result of the taking of any assets of the Lead Borrower or any of its Subsidiaries by any Person pursuant to the power of eminent domain, condemnation or otherwise, or pursuant to a sale of any such assets to a purchaser with such power under threat of such a taking, minus (ii) (a) any actual and reasonable costs incurred by the Lead Borrower or any of its Subsidiaries in connection with the adjustment or settlement of any claims of the Lead Borrower or such Subsidiary in respect thereof, and (b) any bona fide direct costs incurred in connection with any sale of such assets as referred to in clause (i)(b) of this definition, including income taxes payable as a result of any gain recognized in connection therewith.  
“Net Orderly Liquidation Value” means the Dollar Equivalent of the “net orderly liquidation value” determined by an unaffiliated valuation company acceptable to the Applicable Agent after performance of an inventory or equipment valuation, as applicable, to be done at the Applicable Agent’s request (or as otherwise required hereunder) and the Borrowers’ expense (subject to the limitations set forth in Section 5.19), less the amount estimated by such valuation company for marshaling, reconditioning, carrying, and sales expenses designated to maximize the resale value of such Inventory or equipment and assuming that the time required to dispose of such Inventory or equipment is customary with respect to such Inventory or equipment and expressed as a percentage of the net book value of such Inventory or equipment.
“Non-Defaulting Lender” means, at any time, any Lender that is not a Defaulting Lender at such time.
“Non-US Lender” as defined in Section 2.29(c).

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“Non-US Plan” means all Canadian Registered Pension Plans and any plan, fund (including, without limitation, any superannuation fund, but does not include any plans excepted out of the definitions of Canadian Benefit Plan or Canadian Registered Pension Plan) or other similar program established, contributed to (regardless of whether through direct contributions or through employee withholding) or maintained outside the United States by the Lead Borrower or one or more of its Subsidiaries primarily for the benefit of employees of the Lead Borrower or such Subsidiaries residing outside the United States, which plan, fund or other similar program provides, or results in, retirement income, a deferral of income in contemplation of retirement or payments to be made upon termination of employment, and which plan is not subject to ERISA or the Code.
“Note” or “Notes” means, individually or collectively, each Revolving Credit Note and each Swing Loan Note.
“Obligations” means all obligations of every nature of a Credit Party from time to time owed to the Agents (including former Agents), the Lenders, each Issuer, each Swing Loan Lender, or any of them, any Lender Counterparties, including Hedging Obligations and Cash Management Obligations, under any Credit Document or the applicable documents creating the Hedging Obligations or Cash Management Obligations (including, without limitation, with respect to Hedging Obligations and Cash Management Obligations, obligations owed to any person who was an Agent, a Lender or an Affiliate of an Agent or a Lender, at the time such Hedging Obligation or Cash Management Obligation was incurred), whether for principal, interest (including interest which, but for the filing of a petition in bankruptcy with respect to such Credit Party, would have accrued on any Obligation, whether or not a claim is allowed against such Credit Party for such interest in the related bankruptcy proceeding), payments for early termination of Hedging Obligations, Parallel Debt, fees, expenses, indemnification or otherwise; provided, however, the term “Obligations” shall not include any Excluded Swap Obligations.
“Obligee Guarantor” as defined in Section 7.7.
“Officer’s Certificate” means a certificate signed on behalf of the Lead Borrower by the chief executive officer, the chief financial officer, the treasurer or the chief accounting officer of the Lead Borrower.
“Operating Facility” means any real property (including all buildings, fixtures or other improvements located thereon) now, hereafter or heretofore owned, leased, operated or used by the Lead Borrower or any of its Subsidiaries or any of their respective predecessors or Affiliates.
“Order” as defined in Section 2.18(b).
“Ordinary Course” means ordinary course of business or ordinary trade activities that are customary, typical and carried out in a manner consistent with past practice.
“Organizational Documents” means (i) with respect to any corporation, its certificate or articles of incorporation or organization (or its equivalent organizational documents), as amended, and its bylaws (or its equivalent organizational documents), as amended, with respect to any limited partnership, its certificate of limited partnership (or its equivalent organizational documents), and with respect to a limited liability company established under the laws of Germany (Gesellschaft mit beschränkter Haftung), the articles of association (Gesellschaftervertrag), the shareholder list (Liste der Gesellschafter), an excerpt from the commercial register (Handelsregisterauszug) and any other organizational agreement applicable to it, and with respect to a stock corporation incorporated under the laws of Germany (Aktiengesellschaft), the articles of association (Satzung) and an excerpt from the commercial register (Handelsregisterauszug), and any other organizational agreement applicable to it as amended, and its partnership agreement (or its equivalent 

45

organizational documents), as amended, and (iii) with respect to any limited liability company, its articles of organization (or its equivalent organizational documents), as amended, and its operating agreement (or its equivalent organizational documents), as amended.  In the event any term or condition of this Agreement or any other Credit Document requires any Organizational Document to be certified by a secretary of state or similar governmental official, the reference to any such “Organizational Document” shall only be to a document of a type customarily certified by such governmental official.
“Original Closing Date” as defined in the Recitals hereto.
“Overnight LIBOR Rate” means the rate of interest per annum (rounded upwards, if necessary, to the next 1/16 of 1%) at which overnight deposits in Dollars, Pounds Sterling or Euros, as the case may be, in an amount approximately equal to the amount with respect to which such rate is being determined, would be offered for such day by a branch or affiliate of the European Administrative Agent in the London interbank market or (in respect of Dollars of Euros) the European interbank market to major banks in the London interbank market or European interbank market (as the case may be).
“Overnight LIBOR Rate Loan” means any Advance in Dollars, Pounds Sterling or Euros, as the case may be, that bears interest based on the Overnight LIBOR Rate.
“Parallel Debt” as defined in Section 9.4(a).
“Parent Company” means, with respect to a Lender, the bank holding company (as defined in Federal Reserve Board Regulation Y), if any, of such Lender and/or any Person owning, beneficially or of record, directly or indirectly, a majority of the shares of such Lender.
“Participant” means each Person who shall be granted the right by any Lender to participate in any of the Advances and who shall have entered into a participation agreement in form and substance satisfactory to such Lender.
“Participant Register” as defined in Section 10.6(g).
“Participating Member State” means each state so described in any EMU Legislation.
“Participation Advance” as defined in Section 2.13(d).
“Participation Commitment” means the obligation hereunder of each Lender holding a Revolving Commitment to buy a participation equal to its Revolving Commitment Percentage (subject to any reallocation pursuant to Section 2.20(b)(iii)) in Swing Loans made hereunder or in the Letters of Credit issued hereunder as provided for in Section 2.13(a).
“Patriot Act” as defined in Section 10.21.
“Payment Office” means, singularly or collectively, as the context may require, the Domestic Payment Office and the European Payment Office.
“PBGC” means the Pension Benefit Guaranty Corporation or any successor thereto.
“Pension Plan” means any Employee Benefit Plan, other than a Multiemployer Plan, which is subject to section 412 of the Code or section 302 of ERISA which is or, within the preceding six years, was 

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sponsored, maintained or contributed to by, or required to be contributed by, the Lead Borrower, any of its Subsidiaries or any of its ERISA Affiliates.
“Permitted Acquisition” means any acquisition by the Lead Borrower or any of its wholly owned Subsidiaries, whether by purchase, merger or otherwise, of all or substantially all of the assets of, all or substantially all of the Capital Stock of, or a business line or unit or a division of, any Person; provided,
(i)    immediately prior to, and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing or would result therefrom;
(ii)    all transactions in connection therewith shall be consummated, in all material respects, in accordance with all applicable laws and in conformity with all applicable Governmental Authorizations;
(iii)    in the case of the acquisition of Capital Stock, all of the Capital Stock (except for any such Securities in the nature of directors’ qualifying shares required pursuant to applicable law) acquired or otherwise issued by such Person or any newly formed Subsidiary of the Lead Borrower in connection with such acquisition shall be owned (directly or indirectly) 100% by the Lead Borrower or another US Credit Party; provided that the Lead Borrower shall have taken, or caused to be taken, as of the date such Person becomes a Subsidiary of the Lead Borrower (or such later date as may be specified in Section 5.11), each of the actions set forth in Sections 5.10 and/or 5.11, as applicable;
(iv)    the Applicable Conditions shall have been satisfied on a pro forma basis after giving effect to such acquisition as of the last day of the Fiscal Quarter most recently ended (as determined pursuant to Section 1.4);
(v)    there are no material contingent liabilities (including, without limitation, Environmental Claims) relating to the company or business acquired;
(vi)    any Person or assets or division as acquired in accordance herewith (x) shall be in the same business or lines of business in which the Lead Borrower and/or any of its Subsidiaries are engaged as of the Closing Date or which are permitted by Section 6.13; and
(vii)    the Lead Borrower shall have delivered to the Administrative Agent at least five (5) Business Days prior to such proposed acquisition, a Compliance Certificate evidencing compliance with clause (iv) above, together with all relevant financial information with respect to such acquired assets, including, without limitation, the aggregate consideration for such acquisition and any other information required to demonstrate compliance with clause (iv) above.
Notwithstanding the foregoing, no assets acquired in connection with a Permitted Acquisition shall be eligible for inclusion in the Borrowing Base (or any component definition thereof) until the Applicable Agent receives an appraisal and collateral audit satisfactory to it with respect to such assets proposed to be included in the Borrowing Base.   If an appraisal and collateral audit satisfactory to the Applicable Agent is received with respect to such assets proposed to be included in the Borrowing Base, the Applicable Agent shall notify the Lead Borrower of the inclusion of such assets in the Borrowing Base (subject to eligibility criteria) within ten (10) Business Days after receipt thereof.

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“Permitted Discretion” means a determination made in good faith and in the exercise of commercially reasonable (from the perspective of a secured asset-based lender) business judgment.
“Permitted Joint Venture” means a Person: (a) that is a corporation, limited liability company, joint venture or similar limited liability legal entity hereafter formed or entered into by the Lead Borrower or any of its Subsidiaries with another Person in order to conduct a common venture or enterprise with such Person; (b) that is not a strategic alliance formed or entered into by the Lead Borrower or any of its Subsidiaries with any other Person for the purposes of joint research, product development, marketing, or other similar purposes that does not create a Person; and (c) that does not own any Capital Stock in a Credit Party nor at any time itself has been a Credit Party.
“Permitted Liens” means each of the Liens permitted pursuant to Section 6.2.
“Permitted Refinancing Indebtedness” as defined in Section 6.1(p).
“Person” means and includes natural persons, corporations, limited partnerships, general partnerships, limited liability companies, limited liability partnerships, joint stock companies, Joint Ventures, associations, companies, trusts, banks, trust companies, land trusts, business trusts or other organizations, whether or not legal entities, and Governmental Authorities.
“Platform” as defined in Section 10.1(b).
“Pounds Sterling and £” means the official currency of the United Kingdom of Great Britain and Northern Ireland.
“Pounds Sterling Denominated Advances” means each Revolving Advance denominated in Pounds Sterling at the time of the incurrence thereof.
“PP&E Component” means, with respect to the European Borrowers, (a) at any time from the Closing Date through and including the date that is the second anniversary of the Closing Date, the lesser of (i) 85% of the Net Orderly Liquidation Value of Eligible Equipment of the European Borrowers (as determined as of the Closing Date), as such amount is reduced monthly on a five year straight line amortization basis the amount of such reduction during any applicable period of time, the “Monthly Amortization Amount”) or (ii) $6,000,000, and (b) at any time after the date that is the second anniversary of the Closing Date and thereafter, $0.00.  
“PPSA” means the Personal Property Security Act (Ontario), or any other applicable Canadian federal or provincial statute pertaining to the granting, perfecting, priority or ranking of security interests, Liens, hypothecs on personal property, and any successor statutes, together with any regulations thereunder, in each case as in effect from time to time.  References to sections of the PPSA shall be construed to also refer to any successor sections.
“Principal Office” means, for any Agent, the “Principal Office” as set forth on Appendix B, or such other office as the Applicable Agent may from time to time designate in writing to the Lead Borrower and each Lender.
“Priority Payables” means (a) the full amount of the obligations, liabilities or indebtedness of any Canadian Borrower which (i) have a trust, deemed trust or statutory lien imposed to provide for payment or a Lien, choate or inchoate, ranking or capable of ranking senior to or pari passu with Liens securing the Canadian Obligations on any Collateral under any Requirement of Law of Canada or (ii) have a right imposed 

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to provide for payment ranking or capable of ranking senior to or pari passu with the Canadian Obligations under any Requirement of Law of Canada, including, but not limited to, claims for unremitted and/or accelerated rents, utilities, taxes (including sales taxes and goods and services taxes and harmonized sales taxes and withholding taxes), amounts payable to an insolvency administrator, wages, employee withholdings or deductions and vacation pay, severance and termination pay, government royalties and  pension fund obligations (including any amounts payable under the Wage Earner Protection Program Act (Canada) and amounts representing any unfunded liability, solvency deficiency or wind-up deficiency with respect to a Canadian Registered Pension Plan or a Canadian multi-employer pension plan, as defined under applicable laws, for which a Canadian Borrower or any Affiliate of a Canadian Borrower is responsible) and (b) the amount equal to the aggregate value of the Inventory located in Canada which the Administrative Agent, in good faith, and on a reasonable basis, considers is or may be subject to retention of title by a supplier or a right of a supplier to recover possession thereof, where such supplier’s right has priority over the Liens securing the Canadian Obligations, including, without limitation, Inventory subject to a right of a supplier to repossess goods pursuant to section 81.1 of the Bankruptcy and Insolvency Act (Canada) or any other Requirement of Law granting revendication or similar rights to unpaid suppliers or any similar laws of Canada or any other applicable jurisdiction; provided, that to the extent such Inventory has been excluded from Eligible Inventory, the amount owing to such supplier shall not be a Priority Payable.
“Protective Advance” as defined in Section 2.34.
“Public Lenders” means Lenders that do not wish to receive Material Non-Public Information.
“Published Rate” means the rate of interest published each Business Day in The Wall Street Journal “Money Rates” listing under the caption “London Interbank Offered Rates” for a one month period (or, if no such rate is published therein for any reason, then the Published Rate shall be the LIBOR Rate for a one month period as published in another publication selected by the Administrative Agent).
“Qualified ECP Guarantor” means, in respect of any Swap Obligations, each Credit Party that has total assets exceeding $10,000,000 at the time the relevant Guaranty or grant of the relevant security interest becomes effective with respect to such Swap Obligation is incurred or such other person as constitutes an ECP under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another person to qualify as an ECP at such time by entering into a keepwell under Section 1(a)(18)(A)(v)(II) of the Commodity Exchange Act.
“Real Estate Asset” means, at any time of determination, any right, title and interest (fee, leasehold or otherwise) then owned in fee, leasehold or otherwise held by any Credit Party in any real property.
“Receivables” means and includes, as to each Borrower, all of such Borrower’s accounts (as defined in Article 9 of the UCC as in effect in the State of New York or, under the PPSA, as applicable) and all of such Borrower’s contract rights, instruments (including those evidencing indebtedness owed to such Borrower by its Affiliates), documents, chattel paper (including electronic chattel paper), general intangibles relating to accounts, contract rights, instruments, documents and chattel paper, and drafts and acceptances, credit card receivables and all other forms of obligations owing to such Borrower arising out of or in connection with the sale or lease of Inventory or the rendition of services, all supporting obligations, guarantees and other security therefor, whether secured or unsecured, now existing or hereafter created, and whether or not specifically sold or assigned to the Applicable Agent, as applicable, hereunder.
“Record Document” means, with respect to any Leasehold Property, (i) the lease evidencing such Leasehold Property or a memorandum thereof, executed and acknowledged by the owner of the affected real property, as lessor, or (ii) if such Leasehold Property was acquired or subleased from the holder of a 

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Recorded Leasehold Interest, the applicable assignment or sublease document, executed and acknowledged by such holder, in each case in form sufficient to give such constructive notice upon recordation and otherwise in form reasonably satisfactory to the Applicable Agent.
“Recorded Leasehold Interest” means a Leasehold Property with respect to which a Record Document has been recorded in all places necessary or desirable, in the Applicable Agent’s reasonable judgment, to give constructive notice of such Leasehold Property to third party purchasers and encumbrancers of the affected real property.
“Reimbursement Obligation” as defined in Section 2.13(b).
“Related Fund” means, with respect to any Lender that is an investment fund, any other investment fund that invests in commercial loans and that is managed or advised by the same investment advisor as such Lender or by an Affiliate of such investment advisor.
“Release” means any release, spill, emission, leaking, pumping, pouring, injection, escaping, deposit, disposal, discharge, dispersal, dumping, leaching or migration of any Hazardous Material into the indoor or outdoor environment (including the abandonment or disposal of any barrels, containers or other closed receptacles containing any Hazardous Material), including the movement of any Hazardous Material through the air, soil, surface water or groundwater.
“Relevant Interbank Market” means the London interbank market or, with respect to any Advances denominated in Euros, the European interbank market..
“Replacement Lender” as defined in Section 2.32.
“Replacement Notice” as defined in Section 2.32.
“Reportable Compliance Event” means that any Covered Entity becomes a Sanctioned Person, or is indicted, arraigned, investigated or custodially detained, or receives an inquiry from regulatory or law enforcement officials, in connection with any Anti-Terrorism Law or any predicate crime to any Anti-Terrorism Law, or self-discovers facts or circumstances implicating any aspect of its operations with the actual or possible violation of any Anti-Terrorism Law.
“Requirement of Law” means, with respect to any Person, the common law and all federal, state, provincial, local and foreign laws, rules and regulations, orders, judgments, decrees or other determinations of any Governmental Authority or arbitrator, applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject; provided that the foregoing shall not apply to non-binding recommendations or guidance of any Governmental Authority.
“Requisite Lenders” means, collectively (but subject to Section 2.20(c)), Administrative Agent and European Agent, together with one or more Lenders having or holding Revolving Commitments and representing more than fifty percent (50.0%) of the sum of the aggregate  amount of Revolving Commitments of all Lenders; provided that, after the termination of the Revolving Commitments, the Requisite Lenders means one or more Lenders having or holding outstanding Revolving Advances and Revolving Commitment Percentages of (x) outstanding Swing Loans and (y) Letter of Credit Obligations and representing more than fifty percent (50.0%) of the sum of the total outstanding Revolving Advances and the aggregate Revolving Commitment Percentages of all Lenders of the total outstanding Swing Loans and Letter of Credit Obligations.

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“Reserves” means such reserves as the Applicable Agent may from time to time establish in its Permitted Discretion, including, without limitation, reserves for (a) matters that could adversely affect the Collateral, its value or the amount that the Agents and the Lenders might receive from the sale or other disposition thereof or the ability of any Agent to realize thereon, (b) sums that the Borrowers are required to pay under any provision of this Agreement or any other Credit Document or otherwise (such as taxes, assessments, payroll, insurance premiums, amounts owing to customs brokers, or, in the case of leased assets or locations, rents or other amounts payable under such leases or, in the case of license agreements, royalties or other amounts payable under such license agreements), (c) amounts owing by any Borrower to any Person to the extent secured by a Lien on, or trust over, any of the Collateral or over any assets or properties of any Customer of any Borrower (such as Liens or trusts in favor of landlords, warehousemen, carriers, mechanics, materialmen, laborers, or suppliers, or Liens or trusts for ad valorem, income, payroll, excise, sales, pension plan obligations or other taxes), including without limitation any Permitted Liens and Priority Payables, (d) amounts believed by the Applicable Agent to be necessary to provide for possible inaccuracies in any report or in any information provided to the Applicable Agent pursuant to this Agreement, (e) dilution with respect to the Receivables of the Borrowers (based on the ratio of the aggregate amount of non-cash reductions in the Receivables of the Borrowers for any period to the aggregate dollar amount of sales of the Borrowers for such period) calculated by the Applicable Agent for any period that is or is reasonably anticipated to be greater than five (5%) percent, (f) the Canadian Inventory Reserve and the European Inventory Reserve, (g) the Administrative Agent’s estimate of the costs and expenses associated with the importation of Foreign In-Transit Canadian Inventory and Foreign In-Transit US Inventory as of such date, including an estimate for all customs broker fees then due or to become due with respect to such Foreign In-Transit Canadian Inventory or Foreign In-Transit US Inventory,  (h) reserves for "extended" or "extendable" retention of title, (i) reserves for uninsured, underinsured, un-indemnified or under-indemnified liabilities or potential liabilities with respect to any litigation, reserves for taxes, fees, assessments, reserves for VAT, (j) reserves for fees payable to an insolvency administrator pursuant to Section 171 of the German Insolvency Code (Insolvenzordnung) (or relevant successor provisions), and (k) Cash Management Obligations or Hedging Obligations to the extent that such Cash Management Obligations or Hedging Obligations constitute Obligations as such term is defined herein or otherwise receive the benefit of the security interest of the Applicable Agent in any Collateral.  The amount of any Reserve established by the Applicable Agent shall have a reasonable relationship to the event, condition or other matter which is the basis for such reserve as determined by the Applicable Agent in its Permitted Discretion and to the extent that such Reserve is in respect of amounts that may be payable to third parties, the Applicable Agent may, at its option, deduct such Reserve from the Maximum Credit, the Maximum Domestic Credit, the Canadian Revolving Loan Maximum Amount or the Maximum European Credit, as applicable, at any time that such limit is less than the amount of the US Borrowing Base at such time with respect to the US Borrowers, the Canadian Borrowing Base at such time with respect to the Canadian Borrowers or the European Borrowing Base at such time with respect to the European Borrowing Base, as applicable.  Notwithstanding the foregoing, so long as no Default or Event of Default then exists, the Applicable Agent shall provide the Applicable Lead Borrower with two (2) days’ prior notice of the establishment of any Reserves not in effect on the Closing.  
“Reserve Percentage” means as of any day the maximum effective percentage in effect on such day as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the reserve requirements (including supplemental, marginal and emergency reserve requirements) with respect to eurocurrency funding (currently referred to as “Eurocurrency Liabilities”.
“Restricted” means, when referring to Cash or Cash Equivalents of the Lead Borrower or any of its Subsidiaries, that such Cash or Cash Equivalents (i) appears (or would be required to appear) as “restricted” on a consolidated balance sheet of the Lead Borrower or of any such Subsidiary (unless such appearance is related to the Credit Documents, the Term Credit Documents or Liens created thereunder), (ii) are subject 

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to any Lien in favor of any Person other than (x) the Collateral Agent or European Collateral Agent for the benefit of the Secured Parties or (y) to the extent subject to the Intercreditor Agreement, the Term Agent for the benefit of the secured parties under the Term Credit Documents or (iii) are not otherwise generally available for use by the Lead Borrower or such Subsidiary.
“Restricted Payment” means (i) any dividend or other distribution, direct or indirect, (whether in cash, securities or other property) on account of any shares of any class of stock of the Lead Borrower or any of its Subsidiaries now or hereafter outstanding, except a dividend payable solely in shares of that class of stock to the holders of that class; (ii) any redemption, retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of any shares of any class of stock of the Lead Borrower or any of its Subsidiaries now or hereafter outstanding, except any payment made solely in shares of that class of stock to the holders of that class; (iii) any payment made to retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire shares of any class of stock of the Lead Borrower or any of its Subsidiaries now or hereafter outstanding; and (iv) any payment or prepayment of principal of or premium, if any, on, or redemption, purchase, retirement, defeasance (including in substance or legal defeasance), sinking fund or similar payment with respect to, any Indebtedness incurred pursuant to Section 6.1(c) or Section 6.1(o), excluding, in respect of this clause (iv), any Permitted Refinancing Indebtedness with respect thereto and payments in kind.
“Revolving Advances” means the revolving loans made (or deemed made) from time to time by the Lenders to the Borrowers pursuant to Section 2.1(a) or otherwise pursuant to this Agreement (other than Swing Loans but including, for the avoidance of doubt, Protective Advances).
“Revolving Commitment” means (a) as to any Lender, the obligation of such Lender to make  Revolving Advances and participate in Letters of Credit, Swing Loans and Protective Advances, in an aggregate principal and/or face amount not to exceed the Revolving Commitment Amount (if any) of such Lender.
“Revolving Commitment Amount” means, (i) as to any Lender (other than an Additional Lender), the Revolving Commitment amount (if any) set forth below such Lender’s name on Appendix A-1 (or, in the case of any Lender that became party to this Agreement after the Closing Date pursuant to Section 10.6(c), the Revolving Commitment amount (if any) of such Lender as set forth in the applicable Commitment Transfer Supplement), and (ii) as to any Lender that is an Additional Lender, the Revolving Commitment amount provided for in the joinder signed by such Additional Lender under Section 2.22, in each case, as the same may be adjusted upon any increase by such Lender pursuant to Section 2.22, or any assignment by or to such Lender pursuant to Section 10.6(c).
“Revolving Commitment Increase” as defined in Section 2.22(a).
“Revolving Commitment Increase Amendment” as defined in Section 2.22(c)(i).
“Revolving Commitment Increase Effective Date” as defined in Section 2.22(c)(ii).
“Revolving Commitment Percentage” means, with respect to a Lender’s obligation to make Revolving Advances and participate in Letters of Credit and in Swing Loans, and right to receive payments of principal, interest and fees with respect thereto, (c) prior to the Revolving Commitments being terminated or reduced to zero, the percentage obtained by dividing (ii) such Lender’s Revolving Commitment by (iii) the aggregate Revolving Commitments of all Lenders, and (d) from and after the time that the Revolving Commitments have been terminated or reduced to zero, the percentage obtained by dividing (i) the outstanding principal amount of such Lender’s Revolving Advances and ratable portion in Swing Loans and in Letters 

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of Credit by (ii) the outstanding principal amount of all Revolving Advances made by the Lenders and the aggregate ratable portion of the Lenders in the outstanding principal amount of all Swing Loans made by the Swing Loan Lenders and all Letters of Credit issued by the Issuers.
“Revolving Commitment Termination Date” means the date that is five (5) years after the Original Closing Date; provided, however, in the event that any Senior Notes remain outstanding on March 16, 2018, then the Revolving Commitment Termination Date instead shall be such date.  
“Revolving Credit Notes” as defined in Section 2.1(a).
“Revolving Interest Rate” means an interest rate per annum equal to:
(a) with respect to Domestic Rate Loans, the sum of the Alternate US Base Rate plus the Applicable Margin,
(b) with respect to LIBOR Rate Loans, the sum of the LIBOR Rate plus the Applicable Margin,
(c) with respect to Canadian Prime Rate Loans, the sum of the Canadian Prime Rate plus the Applicable Margin,
(d) with respect to BA Rate Loans, the sum of the applicable CDOR Rate plus the Applicable Margin,
(e) with respect to US Base Rate Loans, the sum of the Alternate US Base Rate plus the Applicable Margin, and
(f)  with respect to Overnight LIBOR Rate Loans, the sum of the Overnight LIBOR Rate plus the Applicable Margin.
“Robec Germany” as defined in the preamble hereto.
“Roll-Over Amount” as defined in Section 6.8.
“S&P” means Standard & Poor’s Ratings Group, a division of The McGraw Hill Companies.
“Sanctioned Country” means a country subject to a sanctions program maintained by any Compliance Authority.
“Sanctioned Person” means any individual person, group, regime, entity or thing listed or otherwise recognized as a specially designated, prohibited, sanctioned or debarred person or entity, or subject to any limitations or prohibitions (including but not limited to the blocking of property or rejection of transactions), under any order or directive of any Compliance Authority or otherwise subject to, or specially designated under, any sanctions program maintained by any Compliance Authority.
“Sale and Lease Back Transaction” as defined in Section 6.11.
“Secured Parties” means any Agent (including former agents), the Lenders, each Issuer, each Swing Loan Lender, any Lender Counterparties, or any of them.  

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“Securities” means any stock, shares, partnership interests, voting trust certificates, certificates of interest or participation in any profit sharing agreement or arrangement, options, warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in general any instruments commonly known as “securities” or any certificates of interest, shares or participations in temporary or interim certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire, any of the foregoing.
“Securities Account” has the meaning specified in the UCC or the PPSA, as applicable.
“Securities Account Control Agreement” means a letter agreement, in form and substance reasonably satisfactory to the Collateral Agent or European Collateral Agent, as applicable, executed by the relevant Credit Party, the Collateral Agent or European Collateral Agent, and the relevant Securities Intermediary.
“Securities Act” means the Securities Act of 1933, as amended from time to time, and any successor statute.
“Securities Intermediary” has the meaning specified in the UCC.
“Security Agreements” means the US Pledge and Security Agreement, the Canadian Pledge and Security Agreement, the German Collateral Documents, and the European Collateral Documents.
“Senior Notes” means the Lead Borrower’s 8.875% senior unsecured notes due 2018 issued pursuant to the Senior Notes Indenture.  
“Senior Notes Documents” means the Senior Notes, the Senior Notes Indenture and any other indenture and/or other agreement governing the Senior Notes and all documentation delivered pursuant thereto.
“Senior Notes Indenture” means the Indenture, dated as of May 26, 2011, by and among the Lead Borrower, certain Subsidiaries of the Lead Borrower, as guarantors, and U.S. Bank National Association, as trustee, governing the Senior Notes.
“Settlement” as defined in Section 2.5(d).
“Settlement Date” as defined in Section 2.5(d).
“Solvency Certificate” means a Solvency Certificate of the chief financial officer or treasurer of the Lead Borrower substantially in the form of Exhibit K.
“Solvent” means, that as of the date of determination, both (i) (a) the sum of such Credit Party’s debt (including contingent liabilities) does not exceed the present fair saleable value of such Credit Party’s present assets; (b) such Credit Party’s capital is not unreasonably small in relation to its business as contemplated on the Closing Date and reflected in the Initial Business Plan or with respect to any transaction contemplated or undertaken after the Closing Date; and (c) such Person has not incurred and does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts beyond its ability to pay such debts as they become due (whether at maturity or otherwise); and (ii) such Person is “solvent” within the meaning given that term and similar terms under applicable laws relating to fraudulent transfers and conveyances and by the laws of the jurisdiction where such Credit Party is incorporated, formed or organized.  For purposes of this definition, the amount of any contingent liability at any time shall be computed as the 

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amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability (irrespective of whether such contingent liabilities meet the criteria for accrual under Statement of Financial Accounting Standard No. 5).
“Special Purpose Vehicle” means any special purpose funding vehicle identified as such in writing by any Lender to the Administrative Agent and the European Administrative Agent.
“Stowe Germany” as defined in the preamble hereto.
“Subject Transaction” as defined in Section 1.4.
“Subordinated Debt” means any unsecured subordinated Debt of any Credit Party which meets the requirements of Section 6.1(c), other than Debt incurred by a Credit Party, or for which a Credit Party could remain liable, in accordance with Section 6.1(b).
“Subsidiary” means, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture or other business entity of which more than 50% of the total voting power of shares of stock or other ownership interests entitled (without regard to the occurrence of any contingency) to vote in the election of the Person or Persons (whether directors, managers, trustees or other Persons performing similar functions) having the power to direct or cause the direction of the management and policies thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof; provided, in determining the percentage of ownership interests of any Person controlled by another Person, no ownership interest in the nature of a “qualifying share” of the former Person shall be deemed to be outstanding; provided, further, that each Permitted Joint Venture shall be deemed not to be a Subsidiary of the Borrower or its Subsidiaries for all purposes under this Agreement and the other Credit Documents. Unless the context requires otherwise, “Subsidiary” refers to a Subsidiary of the Lead Borrower.
“Supermajority Lenders” means Administrative Agent and European Agent, together with those Lenders which would constitute the Requisite Lenders under, and as defined in, this Agreement, if each reference to “fifty percent (50.0%)” contained therein were changed to “sixty-six and two-thirds percent (662⁄3%)”.
“Swap Obligation” means, with respect to any Credit Party, any obligation to pay or perform under any swap agreement to the extent that such swap agreement constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act.
“Swing Loan Lender” means, singularly or collectively as the context may require, the Domestic Swing Loan Lender and the European Swing Loan Lender.
“Swing Loans” as defined in Section 2.3(a).
“Swing Loan Notes” as defined in Section 2.3(a).
“TARGET2” means the Trans-European Automated Real-time Gross Settlement Express Transfer payment system which utilizes a single shared platform and which as launched on 19 November 2007.
“Target Day” means any day on which TARGET2 is open for the settlement of payments in Euros.

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“Tax” means any present or future tax, levy, impost, duty, assessment, charge, fee, deduction or withholding of any nature imposed, levied, collected, withheld or assessed, by any Governmental Authority including any interest, penalties or additions thereto and any installments in respect thereof.
“Term Agent” means Jefferies Finance LLC, in its capacity as administrative agent under the Term Loan Credit Agreement, together with any of its successors in such capacity.
“Term Credit Agreement” means the Credit and Guaranty Agreement, dated as of May 17, 2013, among the Lead Borrower, certain of its Subsidiaries from time to time party thereto, the Term Lenders from time to time party thereto, the Term Agent and the other agents and parties from time to time party thereto (including any Permitted Refinancing Indebtedness in respect thereof).
“Term Credit Documents” means the “Credit Documents” (or any similarly defined term) as defined in the Term Credit Agreement.
“Term Lenders” means the lenders from time to time party to the Term Credit Agreement.
“Term Loans” means the term loans from time to time made under the Term Credit Agreement.
“Term Priority Collateral” has the meaning assigned to that term in the Intercreditor Agreement.
“Title Policy” means an ALTA mortgage title insurance policy or an unconditional commitment therefor issued by one or more title companies reasonably satisfactory to the Collateral Agent.
“Transactions” means, collectively, the transactions to occur pursuant to the Credit Documents, including the execution and delivery of the Credit Documents.
“Treasury Regulations” means the United Stated federal income tax regulations promulgated under the Code.
“Type” means, when referring to an Advance, an Advance maintained as a BA Rate Loan, a LIBOR Rate Loan, a Canadian Prime Rate Loan, a Domestic Rate Loan, a US Base Rate Loan or an Overnight LIBOR Rate Loan.
“UCC” means the Uniform Commercial Code (or any similar or equivalent legislation) as in effect in any applicable jurisdiction.
“UCP” as defined in Section 2.11(b).
“Unrestricted” means, when referring to Cash or Cash Equivalents of the Lead Borrower or any of its Subsidiaries, that such cash or Cash Equivalents are not Restricted.
“Unused Line Fee” as defined in Section 2.25.
“Unused Line Fee Rate” means (i) for each Fiscal Quarter (or, if shorter, for the period from the Closing Date through March 31, 2014) during which the daily average Aggregate Exposure for such period exceeds fifty percent (50%) of the aggregate Revolving Commitments, 0.375%, and (ii) for each Fiscal Quarter (or, if shorter, for the period from the Closing Date through March 31, 2014) during which the daily average Aggregate Exposure for such period is less than or equal to fifty percent (50%) of the aggregate Revolving Commitments, 0.50%.  

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“US Aggregate Payments” as defined in Section 7.2.
“US Base Rate” means the base commercial lending rate in the United States of the Administrative Agent as publicly announced to be in effect from time to time, such rate to be adjusted automatically, without notice, on the effective date of any change in such rate.  This rate of interest is determined from time to time by the Administrative Agent as a means of pricing some loans to its customers and is neither tied to any external rate of interest or index nor does it necessarily reflect the lowest rate of interest actually charged by the Administrative Agent to any particular class or category of customers of the Administrative Agent.
“US Base Rate Loans” means an Advance made by the Lenders (including the Domestic Swing Loan Lender) in Dollars to the Canadian Borrowers that bears interest determined by reference to the Alternate US Base Rate in accordance with the terms hereof.
“US Borrower Revolving Credit Note” as defined in Section 2.1(a).
“US Borrowers” as defined in the preamble to this Agreement.
“US Borrowing Base” means, at any time, as to the US Borrowers, the amount calculated pursuant to the Borrowing Base Certificate most recently delivered to the Administrative Agent pursuant to this Agreement (as such amount may be adjusted from time to time in accordance with the terms of this Agreement) equal to:
(a)    Eighty-five percent (85%) of Eligible Receivables of the US Borrowers, plus
(b)    the least of (i) sixty-five percent (65%) of the Value of the Eligible Inventory and Eligible Foreign In-Transit US Inventory of the US Borrowers, (ii) eight-five percent (85%) of the Net Orderly Liquidation Value of Eligible Inventory of the US Borrowers or (iii) an amount equal to the remainder of (x) $20,000,000 minus (y) the amount of Canadian Obligations supported by Eligible Inventory of the Canadian Borrowers on any date of determination, minus
(c)    Reserves.
“US Cash Management Products and Services” means agreements or other arrangements entered into with a Lender Counterparty in the Lead Borrower’s or any of its Subsidiaries’ Ordinary Course that provides any of the following products or services to any of the US Credit Parties:  (a) credit cards; (b) credit card processing services; (c) debit cards and stored value cards; (d) purchase cards; (e) ACH transactions; (f) cash management and treasury management services and products, including controlled disbursement accounts or services, lockboxes, automated clearinghouse transactions, overdrafts, interstate depository network services; or (g) foreign currency exchange and foreign currency swaps and hedges.  The indebtedness, obligations and liabilities of any US Credit Party to the provider of any Cash Management Products and Services (including all obligations and liabilities owing to such provider in respect of any returned items deposited with such provider) (the “US Cash Management Obligations”) shall be “Obligations” hereunder, Guaranteed Obligations under the Guaranty and secured obligations under the US Collateral Documents, as applicable, and otherwise treated as Obligations for purposes of each of the other Credit Documents.
“US Cash Management Obligations” as defined in the definition of “US Cash Management Products and Services.”
“US Collateral” means all of the Collateral which is subject or is purported to be subject to the Liens granted by any of the US Collateral Documents.

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“US Collateral Documents” means the US Pledge and Security Agreement, the US Mortgages, the Landlord Consent and Estoppels, if any, the Landlord Personal Property Collateral Access Agreements, if any, entered by any US Credit Party, and all other instruments, documents and agreements delivered by any US Credit Party pursuant to this Agreement or any of the other Credit Documents in order to grant and/or confirm to the Collateral Agent, for the benefit of the Secured Parties, a Lien on any real, personal or mixed property of that US Credit Party as security for the Obligations.
“US Contributing Guarantors” as defined in Section 7.2.
“US Credit Party” means the Lead Borrower, each other US Borrower and each US Guarantor.
“US Fair Share” as defined in Section 7.2.
“US Fair Share Contribution Amount” as defined in Section 7.2.
“US Funding Guarantor” as defined in Section 7.2.
“US Guarantor” means (i) with respect to the Obligations of each Borrower and each other Credit Party, each US Borrower, (ii) each Guarantor listed in Schedule 1.1(b) as a US Guarantor and (iii) each other Domestic Subsidiary that becomes a party to the Guaranty.  For purposes of the Guaranty, the term “US Guarantor” as applied to any US Borrower shall refer to such US Borrower as a guarantor of Obligations incurred by another Credit Party and not to Obligations directly incurred by such US Borrower in its capacity as a US Borrower hereunder.
“US Guarantor Subsidiary” means each US Guarantor other than a US Borrower.
“US Hedging Obligations” means any Hedging Obligations owed by a US Credit Party.
“US Lender” as defined in Section 2.29(c).
“US Letters of Credit” means standby and/or trade letters of credit issued for the account of a US Borrower pursuant to this Agreement.
“US Letter of Credit Obligations” means, at any time, the sum of (a) the aggregate undrawn amount of all US Letters of Credit outstanding at such time, plus (b) the aggregate amount of all drawings under US Letters of Credit for which the applicable Issuer has not at such time been reimbursed, plus (c) without duplication, the aggregate amount of all payments made by each Lender to the applicable Issuer with respect to such Lender’s participation in US Letters of Credit as provided in Section 2.13 for which the US Borrowers have not at such time reimbursed the Lenders, whether by way of a Revolving Advance or otherwise.
“US Mortgages” means any Mortgage entered into by a US Credit Party.  
“US Obligations” means all Obligations owing to the Administrative Agent, the Collateral Agent, any Issuer, any Swing Loan Lender, any Lender or any Lender Counterparty by any US Borrower.
“US Pledge and Security Agreement” means the US Pledge and Security Agreement, dated as of the Original Closing Date, executed by each US Credit Party substantially in the form of Exhibit G-1, as may be amended, supplemented or otherwise modified from time to time.
“US Swing Loan Note” as described in Section 2.3(a).

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“US Swing Loans” as defined in Section 2.3(a).
“Value” means, the Dollar Equivalent, as determined by the Applicable Agent in its Permitted Discretion, with respect to Inventory, of the lower of (a) cost computed on a first-in first-out basis in accordance with GAAP consistently applied or (b) market value; provided, that, for purposes of the calculation of the applicable Borrowing Base, the Value of the Inventory shall not include: (A) the portion of the value of Inventory equal to the profit earned by any Affiliate on the sale thereof to any Borrower or (B) write-ups or write-downs in value with respect to currency exchange rates.
“Weekly Borrowing Base Period” means any period commencing on the date on which (x) a Default or an Event of Default shall have occurred and be continuing, (y) Domestic Excess Availability shall have been less than the greater of (i) ten percent (10%) of the lesser of (A) the Maximum Credit at such time and (B) the Borrowing Base at such time, and (ii) $3,000,000, provided, that, any such Weekly Borrowing Base Period resulting solely from this clause (y) shall cease to exist on such date as (b) Domestic Excess Availability shall have been at least equal to the greater of (i) ten (10%) of the lesser of (A) the Maximum European Credit at such time and (B) the Domestic Borrowing Base at such time, and (ii) $3,000,000 for sixty (60) consecutive calendar days, or (z) European Excess Availability shall have been less than the greater of (i) ten percent (10%) of the lesser of (A) the Maximum European Credit at such time and (B) the European Borrowing Base at such time, and (ii) $2,500,000, provided that notwithstanding the foregoing, the European Administrative Agent may, in its sole discretion, allow the Lead Borrower to maintain its monthly reporting schedule pursuant to Section 5.19, and provided further that, any such Weekly Borrowing Base Period resulting solely from this clause (z) shall cease to exist on such date as (b) European Excess Availability shall have been at least equal to the greater of (i) ten (10%) of the lesser of (A) the Maximum European Credit at such time and (B) the European Borrowing Base at such time, and (ii) $2,500,000 for sixty (60) consecutive calendar days.
“Xerium Brazil Tax Assessment” means the proposed income tax assessment by the Federal Revenue Department of the Ministry of Finance of Brazil against Xerium Technologies Brasil Industria e Comercio S.A., a Brazilian indirect subsidiary of the Lead Borrower, originally totaling approximately $41,800,000 in taxes, penalties and interest (subject to currency exchange rates).
“Xerium Canada” as defined in the preamble hereto.
1.2    Accounting Terms.
(a)    Except as otherwise expressly provided herein, all accounting terms not otherwise defined herein shall have the meanings assigned to them in conformity with GAAP.  Financial statements and other information required to be delivered by the Lead Borrower to the Administrative Agent pursuant to Sections 5.1(a) and 5.1(b) shall be prepared in accordance with GAAP as in effect at the time of such preparation.  Notwithstanding any other provision contained herein, all terms of an accounting or financial nature used herein shall be construed, and all computations of the Fixed Charge Coverage Ratio and the Leverage Ratio shall be made, without giving effect to any election under Accounting Standards Codification 825-10 (or any other Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of the Borrower or any of its Subsidiaries at “fair value.”
(b)    If at any time any change in GAAP or conversion to IFRS (including without limitation modifications to or issuance of accounting standards under GAAP which create material changes to the financial statements such as the proposed lease accounting guidance and conversion to IFRS as described below) would affect the computation of any ratio, basket, covenant or requirement set forth in any Credit Document, and either the Lead Borrower or the Requisite Lenders shall so request, the Administrative 

59

Agent and the Lead Borrower shall negotiate in good faith to amend such covenant to preserve the original intent thereof in light of such change in GAAP or conversion to IFRS; provided that, until so amended, (i) such ratio, basket, covenant or requirement shall continue to be computed in accordance with GAAP or the application thereof prior to such change therein or such conversion to IFRS and (ii) the Lead Borrower shall provide to the Administrative Agent and the Lenders a written reconciliation (which shall be required to be provided only once) in form and substance reasonably satisfactory to the Administrative Agent, between calculations of such covenant made before and after giving effect to such change in GAAP (or such conversion to IFRS).  If the Lead Borrower notifies the Administrative Agent that it is required to report under IFRS or has elected to do so through an early adoption policy, “GAAP” shall mean international financial reporting standards pursuant to IFRS (provided that after such conversion, the Lead Borrower cannot elect to report under GAAP).
(c)    Notwithstanding anything to the contrary contained in clause (a) above or the definition of Capitalized Lease Obligations, in the event of an accounting change requiring all leases to be capitalized, only those leases (assuming for purposes hereof that they were in existence on the date hereof) that would constitute Capitalized Lease Obligations on the date hereof shall be considered Capitalized Lease Obligations and all calculations and deliverables under this Agreement or any other Credit Document shall be made in accordance therewith (provided that all financial statements delivered to the Administrative Agent in accordance with the terms of this Agreement after the date of such accounting change shall contain a schedule showing the adjustments necessary to reconcile such financial statements with GAAP as in effect immediately prior to such accounting change).
1.3    Interpretation, etc.  Any of the terms defined herein may, unless the context otherwise requires, be used in the singular or the plural, depending on the reference.  References herein to any Section, Appendix, Schedule or Exhibit shall be to a Section, an Appendix, a Schedule or an Exhibit, as the case may be, hereof unless otherwise specifically provided.  The use herein of the word “include” or “including”, when following any general statement, term or matter, shall not be construed to limit such statement, term or matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not limiting language (such as “without limitation” or “but not limited to” or words of similar import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that fall within the broadest possible scope of such general statement, term or matter. All terms used in the definitions of Inventory, Receivables, Eligible Receivables and Eligible Inventory, to the extent defined in the UCC as adopted in the State of New York from time to time, shall have the respective meanings given therein unless otherwise defined herein; provided, however, all such terms, to the extent used in the calculation of the Canadian Borrowing Base and defined in the PPSA, shall have the respective meanings given in the PPSA unless otherwise defined.  
For purposes of any assets, liabilities or entities located in the Province of Québec and for all other purposes pursuant to which the interpretation or construction of this Agreement may be subject to the laws of the Province of Québec or a court or tribunal exercising jurisdiction in the Province of Québec, (a) “personal property” shall include “movable property”, (b) “real property” or “real estate” shall include “immovable property”, (c) “tangible property” shall include “corporeal property”, (d) “intangible property” shall include “incorporeal property”, (e) “security interest”, “mortgage” and “lien” shall include a “hypothec”, “right of retention”, “prior claim” and a resolutory clause, (f) all references to filing, perfection, priority, remedies, registering or recording under the UCC or a PPSA shall include publication under the Civil Code of Québec, (g) all references to “perfection” of or “perfected” liens or security interest shall include a reference to an “opposable” or “set up” lien or security interest as against third parties, (h) any “right of offset”, “right of setoff” or similar expression shall include a “right of compensation”, (i) ”goods” shall include “corporeal movable property” other than chattel paper, documents of title, instruments, money and securities, (j) an 

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“agent” shall include a “mandatary”, (k) ”construction liens” shall include “legal hypothecs”; (l) ”joint and several” shall include “solidary”; (m) “gross negligence or willful misconduct” shall be deemed to be “intentional or gross fault”; (n) “beneficial ownership” shall include “ownership on behalf of another as mandatary”; (o) “easement” shall include “servitude”; (p) “priority” shall include “prior claim”; (q) “survey” shall include “certificate of location and plan”; (r) “state” shall include “province”; (s) “fee simple title” shall include “absolute ownership”; (t) “accounts” shall include “claims”.
In this Agreement, where it relates to a German Credit Party, a reference to:
		
	i.
	a necessary action to authorize, where applicable, includes without limitation, obtaining an unconditional positive advice from the competent works council(s);

		
	ii.
	gross negligence includes grobe Fahrlässigkeit;

		
	iii.
	negligence includes Fahrlässigkeit;

		
	iv.
	a security interest includes any mortgage (Grundschuld, Hypothek), pledge (Pfandrecht), retention of title arrangement (Eigentumsvorbehalt), right of retention (Zurückbehaltungsrecht), right to reclaim goods (Herausgabeansprüche), and, in general, any right in rem created for the purpose of granting security;

		
	v.
	a winding-up, administration or dissolution (and any of those terms) includes a German entity being declared bankrupt (insolvent) or dissolved (ausfgelöst);

		
	vi.
	any step or procedure taken in connection with insolvency proceedings includes a German entity having applied for bankruptcy (Insolvenzantrag) or the opening of bankruptcy proceedings (Insolvenzeröffnung); and

		
	vii.
	an administrator includes an Insolvenzverwalter or insolvency trustee Sachverständiger.

1.4    Certain Calculations.
(i)With respect to any period during which a Permitted Acquisition or an Asset Sale has occurred (each, a “Subject Transaction”), for purposes of determining compliance with any financial ratios set forth in this Agreement, Adjusted EBITDA shall be calculated with respect to such period on a pro forma basis (including (x) pro forma adjustments arising out of events which are directly attributable to a specific transaction, are factually supportable and identifiable and are expected to have a continuing impact, in each case determined on a basis consistent with Article 11 of Regulation S-X promulgated under the Securities Act and as interpreted by the staff of the Securities and Exchange Commission, which would include cost savings resulting from head count reduction, closure of facilities and similar restructuring charges and applicable interest expense shall be calculated with respect to such period on a pro rata basis, which pro forma adjustments shall be certified by the chief financial officer or treasurer of the Lead Borrower and (y) such other adjustments not addressed in preceding clause (x) in an aggregate amount not to exceed 10% of the Adjusted EBITDA of the Lead Borrower and its Subsidiaries for the period of four most recent consecutive Fiscal Quarters for which financial statements have been delivered in accordance with Section 5.1 (calculated without giving any effect to pro forma adjustments in accordance with the foregoing clause (x) or this clause (y)) that are acceptable to the Administrative Agent and the European Administrative Agent) using the historical audited financial statements of any business so acquired or to be acquired or sold or to be sold and the consolidated financial statements of the Lead Borrower and its Subsidiaries which shall be reformulated as if such Subject Transaction, and any Indebtedness incurred or repaid in connection 

61

therewith, had been consummated or incurred or repaid at the beginning of such period (and assuming that such Indebtedness bears interest during any portion of the applicable measurement period prior to the relevant acquisition at the weighted average of the interest rates applicable to outstanding Loans incurred during such period).
(ii)    Whenever pro forma effect is to be given to any transaction, the pro forma calculations shall be made in good faith by a responsible financial or accounting officer of the Lead Borrower.  Interest on a Capitalized Lease Obligation shall be deemed to accrue at an interest rate reasonably determined by a responsible financial or accounting officer of the Borrower to be the rate of interest implicit in such Capitalized Lease Obligation in accordance with GAAP
1.5    Currency Matters.  Principal, interest, reimbursement obligations, fees, and all other amounts payable under this Agreement and the other Credit Documents to the Secured Parties shall be payable in the currency in which such Obligations are denominated.  Unless stated otherwise, all calculations, comparisons, measurements or determinations under this Agreement (including without limitation, the determination of whether a repayment is required under Section 2.6), shall be made in Dollars.  For the purpose of such calculations, comparisons, measurements or determinations, amounts denominated in other currencies shall be converted to the Dollar Equivalent thereof on the date of calculation, comparison, measurement or determination. If any Agent shall receive payment in a currency other that the currency in which the Obligations are due, whether pursuant to the exercise of control under a Securities Account Control Agreement or Deposit Account Control Agreement, or as proceeds or realization of the Collateral or otherwise, then such Agent shall be authorized to convert such amounts at the Exchange Rate to the currencies in which such Obligations are due for application thereto.

SECTION 2.    ADVANCES, PAYMENTS
2.1    Revolving Advances.  
(a)    Amount of Revolving Advances.  Subject to the terms and conditions set forth in this Agreement,
(i)    each Lender, severally and not jointly, agrees to make its Revolving Commitment Percentage of Revolving Advances in Dollars (which Revolving Advances shall be repayable in Dollars) to the US Borrowers (on a joint and several basis) from time to time in amounts requested by the Lead Borrower on behalf of the US Borrowers up to the aggregate principal amount outstanding for all Lenders at any time such that (1) the Aggregate Exposure at such time shall not exceed the Maximum Credit at such time, (2) the Aggregate Domestic Exposure at such time shall not exceed the Maximum Domestic Credit at such time and (3) the Aggregate US Exposure at such time shall not exceed the US Borrowing Base at such time,
(ii)    each Lender, severally and not jointly, agrees to make its Revolving Commitment Percentage of Revolving Advances in Canadian Dollars or Dollars to the Canadian Borrowers (on a joint and several basis) (which Revolving Advances shall be repayable in the currency in which such Revolving Advance was made) from time to time in amounts requested by the Lead Borrower on behalf of the Canadian Borrowers up to the aggregate principal amount outstanding for all Lenders at any time such that (1) the Aggregate Exposure at such time shall not exceed the Maximum Credit at such time, (2) 

62

the Aggregate Domestic Exposure at such time shall not exceed the Maximum Domestic Credit at such time and (3) the Aggregate Canadian Exposure at such time shall not exceed the lesser of (x) the Canadian Borrowing Base at such time and (y) the Canadian Revolving Loan Maximum Amount at such time, and
(iii)    each Lender, severally and not jointly, agrees to make its Revolving Commitment Percentage of Revolving Advances in Pounds Sterling, Euros or Dollars to the European Borrowers (on a joint and several basis) (which Revolving Advances shall be repayable in the currency in which such Revolving Advance was made) from time to time in amounts requested by the European Lead Borrower on behalf of the European Borrowers up to the aggregate principal amount outstanding for all Lenders at any time such that (1) the Aggregate Exposure at such time shall not exceed the Maximum Credit at such time, (2) the Aggregate European Exposure at such time shall not exceed the lesser of (x) the European Borrowing Base at such time and (y) the Maximum European Credit at such time and (3) the Individual Aggregate European Exposure of any European Borrower at such time shall not exceed such European Borrower’s Individual European Borrowing Base, and
Revolving Advances include Protective Advances provided that the Lenders' several (and not joint) commitments to participate in Protective Advances are subject to Section 2.34.  All Revolving Advances made by the Lenders to (x) the US Borrowers shall be Dollar Denominated Advances, (y) the Canadian Borrowers shall be Canadian Dollar Denominated Advances or Dollar Denominated Advances and (z) the European Borrowers shall be Pounds Sterling Denominated Advances, Euros Denominated Advances or Dollar Denominated Advances. Revolving Advances constituting Dollar Denominated Advances shall be available by way of Domestic Rate Loans, US Base Rate Loans, and LIBOR Rate Loans (except that Dollar Denominated Advances to the European Borrowers shall be LIBOR Rate Loans only; Revolving Advances constituting Canadian Dollar Denominated Advances shall be available by way of Canadian Prime Rate Loans and BA Rate Loans; Revolving Advances constituting Pounds Sterling Denominated Advances or Euros Denominated Advances shall be available by way of LIBOR Rate Loans. The Revolving Advances made to the US Borrowers shall be evidenced by one or more secured promissory notes (collectively, the “US Borrower Revolving Credit Note”) substantially in the form attached hereto as Exhibit A-1.  The Revolving Advances made to the Canadian Borrowers shall be evidenced by one or more secured promissory notes (collectively, the “Canadian Borrower Revolving Credit Note”) substantially in the form attached hereto as Exhibit A-2.  The Revolving Advances made to the European Borrowers shall be evidenced by one or more secured promissory notes (collectively, the “European Borrower Revolving Credit Note” and, together with the US Borrower Revolving Credit Note and the Canadian Borrower Revolving Credit Note, collectively, the “Revolving Credit Notes”) substantially in the form attached hereto as Exhibit A-5.
(b)    Discretionary Rights.  The Advance Rates may be increased subject to the provisions of Section 10.5.  The Advance Rate may be decreased by the Applicable Agent at any time and from time to time in the exercise of its Permitted Discretion.  Each Borrower consents to any such increases or decreases and acknowledges that decreasing the Advance Rates or increasing or imposing Reserves may limit or restrict Advances or Letters of Credit requested by the Borrowers. Prior to the occurrence of a Default or an Event of Default, the Applicable Agent shall provide the Applicable Lead Borrower two (2) days prior notice of its intention to decrease the Advance Rates.
2.2    Procedures for Requesting Revolving Advances; Procedures for Selection of Applicable Interest Rates for Revolving Advances.  
(a)    With respect to Revolving Advances under the Domestic Facility, subject to clause (b) below in the case of Fixed Rate Loans, the Lead Borrower on behalf of the applicable Borrowers may 

notify the Administrative Agent prior to 10:00 a.m. Local Time on a Business Day of the Lead Borrower’s request to incur, on that day, a Revolving Advance hereunder, which request shall specify (i) the date of the proposed borrowing (which shall be a Business Day) and (ii) the Type and borrowing amount of such Revolving Advance to be borrowed, which amount shall be in a minimum amount of  $1,000,000 for Dollar Denominated Advances and Cdn$1,000,000 for Canadian Dollar Denominated Advances and in integral multiples of $500,000 for Dollar Denominated Advances and Cdn$500,000 for Canadian Dollar Denominated Advances. 
(b)    (x) With respect to Revolving Advances under the Domestic Facility, notwithstanding the provisions of subsection (a) above, and (y) with respect to any request by the European Lead Borrower for Revolving Advances under the European Facility, in the event the Applicable Lead Borrower on behalf of any applicable Borrower desires to obtain a Fixed Rate Loan for any Revolving Advance, the Applicable Lead Borrower shall provide the Applicable Agent written notice by no later than 10:00 a.m. Local Time on the day which is three (3) Business Days prior to the date such Fixed Rate Loan is to be borrowed, specifying (i) the date of the proposed borrowing (which shall be a Business Day), (ii) the Type of borrowing and the amount of such Revolving Advance to be borrowed, which amount shall be in a minimum amount of $1,000,000 for Dollar Denominated Advances, Cdn$1,000,000 for Canadian Dollar Denominated Advances, €1,000,000 for Euros Denominated Advances and  £1,000,000 for Pounds Sterling Denominated Advances and in integral multiples of $500,000 for Dollar Denominated Advances, Cdn$500,000 for Canadian Dollar Denominated Advances, €100,000 for Euros Denominated Advances and £100,000 for Pounds Sterling Denominated Advances, (iii) the duration of the first Interest Period therefor and (iv) in the case of any request under the European Facility, the applicable European Borrower for which the applicable Revolving Advance is requested.  Interest Periods for Fixed Rate Loans shall be for one, three or six months (or in addition, two (2) months in the case of any Revolving Advance under the European Facility); provided that, if an Interest Period would end on a day that is not a Business Day, it shall end on the next succeeding Business Day unless such day falls in the next succeeding calendar month in which case the Interest Period shall end on the next preceding Business Day.  No Fixed Rate Loan shall be made available to any Borrower during the continuance of a Default or an Event of Default.  After giving effect to each requested Fixed Rate Loan, including those which are converted from a Base Rate Loan under Section 2.2(e), there shall not be outstanding more than (A) five (5) Fixed Rate Loans in the aggregate under the Domestic Facility (or such greater number of Fixed Rate Loans as may be acceptable to the Administrative Agent) or (B) ten (10) Fixed Rate Loans in the aggregate under the European Facility (or such greater number of Fixed Rate Loans as may be acceptable to the European Administrative Agent).
(c)    Each Interest Period of a Fixed Rate Loan shall commence on the date such Fixed Rate Loan is made and shall end on such date as the Applicable Lead Borrower may elect as set forth in subsection (b)(iii) above, provided that the exact length of each Interest Period shall be determined in accordance with the Applicable Agent’s normal practice and no Interest Period shall end after the last day of the Revolving Commitment Termination Date.
(d)    The Applicable Lead Borrower shall elect the initial Interest Period applicable to a Fixed Rate Loan by its Funding Notice given to the Applicable Agent pursuant to Section 2.2(b) or by its notice of conversion given to the Applicable Agent pursuant to Section 2.2(e), as the case may be.  The Applicable Lead Borrower shall elect the duration of each succeeding Interest Period by giving irrevocable written notice to the Applicable Agent of such duration not later than 10:00 a.m. Local Time on the day which is three (3) Business Days prior to the last day of the then current Interest Period applicable to such Fixed Rate Loan.  If the Applicable Agent does not receive timely notice of the Interest Period elected by the Applicable Lead Borrower, (i) with respect to Revolving Advances under the Domestic Facility, the Lead Borrower shall be deemed to have elected to convert such Fixed Rate Loan to a Base Rate Loan subject to 

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Section 2.2(e), and (ii) with respect to any Revolving Advance under the European Facility, the European Lead Borrower shall be deemed to have elected to convert such Fixed Rate Loan on the last day of the applicable Interest Period to a Fixed Rate Loan with an Interest Period of one (1) month.
(e)    Provided that no Default or Event of Default shall have occurred and be continuing, the Lead Borrower may, on the last Business Day of the then current Interest Period applicable to any outstanding Fixed Rate Loan under the Domestic Facility only, or with respect to Revolving Advances under the Domestic Facility only, the Lead Borrower may on any Business Day with respect to Base Rate Loans, convert any such loan into a loan of another Type in the same currency and in the same aggregate principal amount provided that any conversion of a Fixed Rate Loan under the Domestic Facility shall be made only on the last Business Day of the then current Interest Period applicable to such Fixed Rate Loan.  If the Lead Borrower desires to convert a loan under the Domestic Facility, the Lead Borrower shall give the Administrative Agent written notice by no later than 10:00 a.m. Local Time  (i) on the day which is three (3) Business Days prior to the date on which such conversion is to occur with respect to a conversion from a Base Rate Loan to a Fixed Rate Loan under the Domestic Facility, or (ii) on the day which is one (1) Business Day prior to the date on which such conversion is to occur (which date shall be the last Business Day of the Interest Period for the applicable Fixed Rate Loan) with respect to a conversion from a Fixed Rate Loan to a Base Rate Loan under the Domestic Facility, specifying, in each case, the date of such conversion, the loans to be converted and if the conversion is to a Fixed Rate Loan, the duration of the first Interest Period therefor.
(f)    At its option and upon written notice given prior to 10:00 a.m. Local Time at least three (3) Business Days prior to the date of such prepayment, any Borrower may, subject to Section 2.2(g), prepay the Fixed Rate Loans in whole at any time or in part from time to time with accrued interest on the principal being prepaid to the date of such repayment. Such Borrower shall specify the date of prepayment of Revolving Advances which are Fixed Rate Loans and the amount of such prepayment.  In the event that any prepayment of a Fixed Rate Loan is required or permitted on a date other than the last Business Day of the then current Interest Period with respect thereto, such Borrower shall indemnify the Agents and the Lenders therefor in accordance with Section 2.2(g).
(g)    Each Borrower shall indemnify the Agents and the Lenders and hold the Agents and the Lenders harmless from and against any and all losses or expenses that the Agents and the Lenders may sustain or incur as a consequence of any prepayment or conversion of, prior to the last day of the applicable Interest Period, any Fixed Rate Loan or failure by such Borrower to complete a borrowing of, a prepayment of or conversion of or to a Fixed Rate Loan after a request therefor has been given, including, but not limited to, any interest payable by the Agents or the Lenders to lenders of funds obtained by it in order to make or maintain its Fixed Rate Loans hereunder. A certificate as to any additional amounts payable pursuant to the foregoing sentence submitted by any Agent or any Lender to the Applicable Lead Borrower shall be conclusive absent manifest error.  For the avoidance of doubt, this Section 2.2(g) does not apply to any Taxes incurred by the Agents and the Lenders, which shall exclusively be dealt with in Section 2.29.
(h)    Notwithstanding anything to the contrary provided herein, should any amount required to be paid as interest hereunder, or as fees or other charges under this Agreement or any other agreement with the Agents or the Lenders, or with respect to any other Obligation under this Agreement, become due, same shall be deemed a request for a Revolving Advance maintained as (i) a Domestic Rate Loan, if a US Borrower is the obligor with respect to such amount, fee, charge or other Obligation, (ii) a Revolving Advance bearing interest based at the Canadian Prime Rate or the Alternate Base Rate, as applicable, if a Canadian Borrower is the obligor with respect to such amount, fee, charge or other Obligation or (iii) a LIBOR Rate Loan in the applicable currency of such outstanding Obligations with an Interest Period 

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of one (1) month if a European Borrower is the obligor with respect to such amount, fee, charge or other Obligation, in each case as of the date such payment is due, in the amount required to pay in full such interest, fee, charge or Obligation, and such request shall be irrevocable.
(i)    Notwithstanding anything to the contrary provided herein Borrowers may not convert or continue Protective Advances.

2.3    Swing Loans.
(a)    Subject to the terms and conditions set forth in this Agreement, and in order to minimize the transfer of funds between the Lenders and the Applicable Agent for administrative convenience, the Agents, the Lenders and each Swing Loan Lender agree that in order to facilitate the administration of this Agreement,  (A) the Domestic Swing Loan Lender may, at its election and option made in its sole discretion cancelable at any time for any reason whatsoever, make swing loan advances (x) to any US Borrower by way of Domestic Rate Loans (each, a “US Swing Loan” and, collectively, the “US Swing Loans”) and (y) to any Canadian Borrower by way of US Base Rate Loans or Canadian Prime Rate Loans (each, a “Canadian Swing Loan” and, collectively, the “Canadian Swing Loans”) in each case, as provided for in this Section 2.3 at any time or from time to time after the Closing Date to, but not including, the Revolving Commitment Termination Date, in an aggregate principal amount up to but not in excess of the Maximum Swing Loan Advance Amount, and (B) the European Swing Loan Lender may, at its election and option made in its sole discretion cancelable at any time for any reason whatsoever, make swing loan advances to any European Borrower by way of Overnight LIBOR Rate Loans (each, a “European Swing Loan” and, collectively, the “European Swing Loans” and, together with the US Swing Loans and the Canadian Swing Loans, each, a “Swing Loan” and, collectively, the “Swing Loans”) in each case, as provided for in this Section 2.3 at any time or from time to time after the Closing Date to, but not including, the Revolving Commitment Termination Date, in an aggregate principal amount up to but not in excess of (i) in the case of the aggregate amount of US Swing Loans and Canadian Swing Loans, the Maximum Swing Loan Advance Amount, and (ii) in the case of European Swing Loans, the Maximum European Swing Loan Advance Amount; provided that (x) the outstanding aggregate principal amount of all US Swing Loans outstanding at any time shall not exceed an amount that would cause (1) the Aggregate Exposure at such time to exceed the Maximum Credit at such time, (2) the Aggregate Domestic Exposure at such time to exceed the Maximum Domestic Credit at such time and (3) the Aggregate US Exposure at such time to exceed the US Borrowing Base at such time, (y) the outstanding aggregate principal amount of all Canadian Swing Loans outstanding at any time shall not exceed an amount that would cause (1) the Aggregate Exposure at such time to exceed the Maximum Credit at such time, (2) the Aggregate Domestic Exposure at such time to exceed the Maximum Domestic Credit at such time and (3) the Aggregate Canadian Exposure at such time to exceed the lesser of (A) the Canadian Borrowing Base at such time and (B) the Canadian Revolving Loan Maximum Amount at such time, and (z) the outstanding aggregate principal amount of all European Swing Loans outstanding at any time shall not exceed an amount that would cause (1) the Aggregate Exposure at such time to exceed the Maximum Credit at such time, (2) the Aggregate European Exposure at such time to exceed the lesser of (A) the European Borrowing Base at such time and (B) the Maximum European Credit at such time and (3) the Individual Aggregate European Exposure of any European Borrower at such time to exceed such European Borrower’s Individual European Borrowing Base. All (i) US Swing Loans and Canadian Swing Loans shall be Base Rate Loans only and (ii) European Swing Loans shall be Overnight LIBOR Rate Loans only. The Borrowers may borrow (at the option and election of the applicable Swing Loan Lender), repay and reborrow (at the option and election of the applicable Swing Loan Lender) Swing Loans and the applicable Swing Loan Lender may make Swing Loans as provided in this Section 2.3 during the period between Settlement Dates.  All (i) US Swing Loans shall be evidenced by a secured promissory note (the “US Swing Loan Note”) substantially in the form attached hereto as Exhibit A-3, (ii) Canadian Swing Loans shall be 

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evidenced by a secured promissory note (the “Canadian Swing Loan Note”) substantially in the form attached hereto as Exhibit A-4 and (iii) European Swing Loans shall be evidenced by a secured promissory note (the “European Swing Loan Note” and together with the US Swing Loan Note and the Canadian Swing Loan Note, each, a “Swing Loan Note” and, collectively, the “Swing Loan Notes”) substantially in the form attached hereto as Exhibit A-6. Each Swing Loan Lender’s agreement to make Swing Loans under this Agreement is cancelable at any time for any reason whatsoever and the making of Swing Loans by any Swing Loan Lender from time to time shall not create any duty or obligation, or establish any course of conduct, pursuant to which such Swing Loan Lender shall thereafter be obligated to make Swing Loans in the future.
(b)    Upon either (x) any request by the Lead Borrower or the European Lead Borrower for a Revolving Advance made pursuant to the terms of this Agreement or (y) the occurrence of any deemed request by the Borrowers for a Revolving Advance pursuant to the provisions of Section 2.2(h), the applicable Swing Loan Lender may elect, in its sole discretion, to have such request or deemed request treated as a request for a Swing Loan, and may advance same day funds to the applicable Borrowers as a Swing Loan; provided that notwithstanding anything to the contrary provided for herein, the applicable Swing Loan Lender may not make Swing Loans if such Swing Loan Lender has been notified by any Agent or by the Requisite Lenders that one or more of the applicable conditions set forth in Section 3.2 have not been satisfied or the Revolving Commitments have been terminated for any reason.
(c)    Upon the making of a Swing Loan (whether before or after the occurrence of a Default or an Event of Default and regardless of whether a Settlement has been requested with respect to such Swing Loan), each Lender shall be deemed, without further action by any party hereto, to have unconditionally and irrevocably purchased from the applicable Swing Loan Lender, without recourse or warranty, an undivided interest and participation in such Swing Loan in proportion to its Revolving Commitment Percentage.  Each Swing Loan Lender or the Applicable Agent may, at any time, require the Lenders to fund such participations by means of a Settlement as provided for in Section 2.5(d).  From and after the date, if any, on which any Lender is required to fund, and funds, its participation in any Swing Loans purchased hereunder, the Applicable Agent shall promptly distribute to such Lender its Revolving Commitment Percentage of all payments of principal and interest and all proceeds of Collateral thereafter received by the Applicable Agent in respect of such Swing Loan; provided that no Lender shall be obligated in any event to make Revolving Advances in an amount in excess of its Revolving Commitment Amount minus its Participation Commitment (taking into account any reallocations under Section 2.20) of the Maximum Undrawn Amount of all outstanding Letters of Credit.
2.4    Disbursement of Advance Proceeds.  All Advances shall be disbursed from whichever office or other place the Applicable Agent or the Lenders, as applicable, may designate from time to time and, together with any and all other Obligations of the Borrowers to the Agents or the Lenders, shall be charged to the applicable Borrowers’ Account on the Applicable Agent’s books. The proceeds of each Revolving Advance or Swing Loan requested by the Applicable Lead Borrower on behalf of any Borrower (in respect of any European Swing Loan, such request being made to the European Administrative Agent by or before 10:00 a.m. Local Time on the relevant day) or deemed to have been requested by any applicable Borrower under Section 2.2(h), 2.5(b) or 2.13 shall, (i) with respect to requested Revolving Advances, to the extent the applicable Lenders make such Revolving Advances in accordance with Section 2.2(h), 2.5(b) or 2.13, and with respect to Swing Loans made upon any request by the Applicable Lead Borrower for a Revolving Advance to the extent that the applicable Swing Loan Lender makes such Swing Loan in accordance with Section 2.3(b), be made available to the applicable Borrower on the day so requested by way of credit to (x) the US Borrowers’ operating account for Dollars or Canadian Dollars, as applicable, at the Administrative Agent, (y) the Canadian Borrowers’ operating account at the Administrative Agent (or 

its applicable Canadian Affiliate, as applicable), or (z) the European Borrowers’ operating account for Dollars, Pounds Sterling or Euros, as applicable, at the European Administrative Agent, or in any case such other bank as the Applicable Lead Borrower may designate following notification to and approval by the Applicable Agent, in immediately available funds or, (ii) with respect to Revolving Advances deemed to have been requested by any Borrower or Swing Loans made upon any deemed request for a Revolving Advance by any Borrower, be disbursed to the Applicable Agent to be applied to the outstanding Obligations giving rise to such deemed request.  Prior to the Revolving Commitment Termination Date, the Borrowers may use the Revolving Advances by borrowing, prepaying and reborrowing, all in accordance with the terms and conditions hereof.
2.5    Making and Settlement of Advances.
(a)    Each borrowing of Revolving Advances shall be advanced according to the applicable Revolving Commitment Percentages of the applicable Lenders (subject to any contrary terms of Section 2.20). Each borrowing of Swing Loans shall be advanced by the applicable Swing Loan Lender alone.
(b)    Promptly after receipt by the Applicable Agent of a request or a deemed request for a Revolving Advance pursuant to the terms of this Agreement and, with respect to Revolving Advances, to the extent the applicable Swing Loan Lender elects not to provide a Swing Loan or the making of a Swing Loan would result in the aggregate amount of all applicable outstanding Swing Loans exceeding the maximum amount permitted under Section 2.3(a), the Applicable Agent shall notify the Lenders of its receipt of such request specifying the information provided by the Applicable Lead Borrower and the apportionment among the Lenders of the requested Revolving Advance as determined by the Applicable Agent in accordance with the terms hereof.  Each Lender shall remit the principal amount of each Revolving Advance to the Applicable Agent such that the Applicable Agent is able to, and the Applicable Agent shall, to the extent the Lenders have made funds available to it for such purpose and subject to Sections 3.1 and 3.2, fund such Revolving Advance to the applicable Borrowers in Dollars (in the case of Dollar Denominated Advances), in Canadian Dollars (in the case of Canadian Dollar Denominated Advances) in Pounds Sterling (in the case of Pounds Sterling Dollar Denominated Advances), or in Euros (in the case of Euros Denominated Advances) and immediately available funds at the applicable Payment Office prior to the close of business, on the applicable borrowing date; provided that if any Lender fails to remit such funds to the Applicable Agent in a timely manner, the Applicable Agent may elect in its sole discretion to fund with its own funds the Revolving Advance of such Lender on such borrowing date, and such Lender shall be subject to the repayment obligation in Section 2.5(c).
(c)    Unless the Applicable Agent shall have been notified by telephone, confirmed in writing, by any Lender that such Lender will not make the amount which would constitute its applicable Revolving Commitment Percentage of the requested Revolving Advance available to the Applicable Agent, the Applicable Agent may (but shall not be obligated to) assume that such Lender has made such amount available to the Applicable Agent on such date in accordance with Section 2.5(b) and may, in reliance upon such assumption, make available to the applicable Borrowers a corresponding amount. In such event, if a Lender has not in fact made its applicable Revolving Commitment Percentage of the requested Revolving Advance available to the Applicable Agent, then the applicable Lender and the applicable Borrowers severally agree to pay to the Applicable Agent on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to the applicable Borrowers through but excluding the date of payment to the Applicable Agent, at (i) in the case of a payment to be made by such Lender under (1) the Domestic Facility, the greater of (A) (x) the daily average Federal Funds Effective Rate (computed on the basis of a year of 360 days) during such period as quoted by the Administrative Agent, 

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times (y) such amount or (B) a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation, or (2) the European Facility, the greater of (A) (x) the daily average Overnight LIBOR Rate (computed on the basis of a year of 360 days or for Sterling amounts on the basis of 365 days) during such period as quoted by European Administrative Agent, times (y) such amount or (B) a rate determined by European Administrative Agent in accordance with banking industry rules on interbank compensation, (ii) in the case of a payment to be made by the US Borrowers, the Revolving Interest Rate for Revolving Advances that are Domestic Rate Loans, (iii) in the case of a payment to be made by the Canadian Borrowers, the Revolving Interest Rate for Revolving Advances that are US Base Rate Loans or Canadian Prime Rate Loans, as applicable, and (iv) in the case of a payment to be made by the European Borrowers, the Revolving Interest Rate for Revolving Advances that are LIBOR Rate Loans with an Interest Period of one (1) month. If such Lender pays its share of the applicable Revolving Advance to the Applicable Agent, then the amount so paid shall constitute such Lender’s Revolving Advance. Any payment by the US Borrowers, the Canadian Borrowers or the European Borrowers, as applicable, shall be without prejudice to any claim the US Borrowers, the Canadian Borrowers or the European Borrowers, as applicable, may have against a Lender that shall have failed to make such payment to the Applicable Agent. A certificate of the Applicable Agent submitted to any Lender or the Applicable Lead Borrower, as applicable, with respect to any amounts owing under this paragraph (c) shall be conclusive, in the absence of manifest error.
(d)    The Applicable Agent, on behalf of the applicable Swing Loan Lender, shall demand settlement (a “Settlement”) of all or any Swing Loans with the relevant Lenders on at least a weekly basis, or on any more frequent date that the Applicable Agent elects or that the applicable Swing Loan Lender at its option exercisable for any reason whatsoever may request, by notifying the relevant Lenders of such requested Settlement by facsimile, telephonic or electronic transmission no later than 10:00 a.m. Local Time (i) with respect to Swing Loans under the Domestic Facility, on the date of such requested Settlement and (ii) with respect to Swing Loans under the European Facility, three (3) Business Days prior to such requested Settlement (in each case, the “Settlement Date”). Subject to any contrary provisions of Section 2.20, each Lender shall transfer the amount of such Lender’s Revolving Commitment Percentage of the outstanding principal amount (plus interest accrued thereon to the extent requested by the Applicable Agent) of the applicable Swing Loan with respect to which Settlement is requested by the Applicable Agent, to such account of the Applicable Agent as the Applicable Agent may designate not later than 12:00 p.m. Local Time on such Settlement Date if requested by the Applicable Agent by 10:00 a.m. Local Time, otherwise not later than 12:00 p.m. Local Time on the next Business Day. Settlements may occur at any time notwithstanding that the conditions precedent to making Revolving Advances set forth in Section 3.2 have not been satisfied or the Revolving Commitments shall have otherwise been terminated at such time.  All amounts so transferred to the Applicable Agent shall be applied against the amount of outstanding Swing Loans and, when so applied, shall constitute Revolving Advances of such Lenders accruing interest as the applicable Base Rate Loan or, in the case of the European Facility, LIBOR Rate Loans with an Interest Period of one (1) week.  If any such amount is not transferred to the Applicable Agent by any Lender on such Settlement Date, the Applicable Agent shall be entitled to recover such amount on demand from such Lender together with interest thereon as specified in Section 2.5(c).
(e)    If any Lender or Participant (a “Benefited Lender”) shall at any time receive any payment of all or part of its Advances, or interest thereon, or receive any Collateral in respect thereof (whether voluntarily or involuntarily or by set-off) in a greater proportion than any such payment to and Collateral received by any other Lender, if any, in respect of such other Lender’s Advances, or interest thereon, and such greater proportionate payment or receipt of Collateral is not expressly permitted hereunder, such Benefited Lender shall purchase for cash from the other Lenders a participation in such portion of each such other Lender’s Advances, or shall provide such other Lender with the benefits of any such Collateral, or the proceeds thereof, as shall be necessary to cause such Benefited Lender to share the excess payment or benefits 

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of such Collateral or proceeds ratably with each of the other Lenders; provided, however, that if all or any portion of such excess payment or benefits is thereafter recovered from such Benefited Lender, such purchase shall be rescinded, and the purchase price and benefits returned, to the extent of such recovery, but without interest. Each Borrower consents to the foregoing and agrees, to the extent it may effectively do so under any Requirement of Law, that each Lender so purchasing a portion of another Lender’s Advances may exercise all rights of payment (including rights of set-off) with respect to such portion as fully as if such Lender were the direct holder of such portion, and the obligations owing to each such purchasing Lender in respect of such participation and such purchased portion of any other Lender’s Advances shall be part of the Obligations secured by the Collateral, and the obligations owing to each such purchasing Lender in respect of such participation and such purchased portion of any other Lender’s Advances shall be part of the Obligations secured by the Collateral.
2.6    Maximum Advances and Repayments.  On any day on which one or more of the following conditions shall exist, the applicable Borrowers shall repay on such day the applicable Advances and/or cash collateralize on such day outstanding Letters of Credit (in Dollars, Canadian Dollars, Pounds Sterling or Euros, as applicable, and pursuant to cash collateral arrangements reasonably satisfactory to the Applicable Agent) in such amount as may be required to cause such conditions to cease to exist on such day:
(a)    the Aggregate Exposure at such time exceeds the Maximum Credit at such time;
(b)    the Aggregate Domestic Exposure at such time exceeds the Maximum Domestic Exposure at such time;
(c)    the Aggregate US Exposure at such time exceeds the US Borrowing Base at such time;
(d)    the Aggregate Canadian Exposure at such time exceeds the lesser of (i) the Canadian Borrowing Base at such time and (ii) the Canadian Revolving Loan Maximum Amount at such time;
(e)    the Aggregate European Exposure at such time exceeds the lesser of (i) the European Borrowing Base at such time and (ii) the Maximum European Credit at such time;
(f)    the Individual Aggregate European Exposure of any European Borrower at such time exceeds such European Borrower’s Individual European Borrowing Base at such time;
(g)    the aggregate outstanding principal amount of US Swing Loans and Canadian Swing Loans at such time exceeds the Maximum Swing Loan Advance Amount at such time;
(h)    the aggregate outstanding principal amount of European Swing Loans at such time exceeds the Maximum European Swing Loan Advance Amount at such time;
(i)    the aggregate Letter of Credit Obligations at such time exceeds $20,000,000;
(j)    the aggregate Canadian Letter of Credit Obligations at such time exceeds the Canadian Letter of Credit Limit at such time; and/or
(k)    the aggregate European Letter of Credit Obligations at such time exceeds the European Letter of Credit Limit at such time.

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In connection with the foregoing, to the extent applicable, the applicable Borrowers shall (i) first, repay outstanding Swing Loans, (ii) second, repay outstanding Revolving Advances, and (iii) third, cash collateralize outstanding Letters of Credit in such amount as may be required to cause such conditions giving rise to such mandatory repayment and/or cash collateralization requirement to cease to exist on such day.

2.7    Manner and Repayment of Advances.  (a)    The Revolving Advances and Swing Loans shall be due and payable in full on the Revolving Commitment Termination Date subject to earlier prepayment or repayment as herein provided.  Notwithstanding the foregoing, all Revolving Advances and Swing Loans shall be subject to earlier repayment upon (x) acceleration upon the occurrence of an Event of Default under this Agreement or (y) termination of the Revolving Commitments.  Each payment (including each prepayment) by any Borrower on account of the principal of and interest on the Advances shall be applied, first to the outstanding Swing Loans and next, pro rata according to the applicable Revolving Commitment Percentages of the Lenders, to the applicable outstanding Revolving Advances (subject to any contrary provisions of Section 2.20).
(b)    Each Borrower recognizes that the amounts evidenced by checks, notes, drafts or any other items of payment relating to and/or proceeds of Collateral may not be collectible by the Applicable Agent on the date received by the Applicable Agent.  The Applicable Agent shall conditionally credit the applicable Borrowers’ Account for each item of payment on the next Business Day after the Business Day on which such item of payment is received by the Applicable Agent (and the Business Day on which each such item of payment is so credited shall be referred to, with respect to such item, as the “Application Date”). The Applicable Agent is not, however, required to credit the applicable Borrowers’ Account for the amount of any item of payment which is unsatisfactory to the Applicable Agent, and the Applicable Agent may charge the applicable Borrowers’ Account for the amount of any item of payment which is returned, for any reason whatsoever, to the Applicable Agent, unpaid.  Subject to the foregoing, the Borrowers agree that for purposes of computing the interest charges under this Agreement, each item of payment received by the Applicable Agent shall be deemed applied by the Applicable Agent on account of the Obligations on its respective Application Date.  The Borrowers further agree that there is a monthly float charge payable to each Applicable Agent, for each such Applicable Agent’s sole benefit, in an amount equal to (y) the face amount of all items of payment received during the prior month (including items of payment received by the Administrative Agent as a wire transfer or electronic depository check) multiplied by (z) the Revolving Interest Rate with respect to applicable Base Rate Loans for one (1) Business Day.
(c)    All payments of principal, interest and other amounts payable hereunder, or under any of the other Credit Documents shall be made to the Applicable Agent at the applicable Payment Office not later than 1:00 p.m. Local Time on the due date therefor in immediately available funds and in the currency in which such Advance or other amount is denominated hereunder.  The Applicable Agent shall have the right to effectuate payment on any and all Obligations due and owing hereunder by charging the applicable Borrowers’ Account or by making Revolving Advances as provided in Section 2.2.
(d)    Except as expressly provided herein, all payments (including prepayments) to be made by any Borrower on account of principal, interest, fees and other amounts payable hereunder shall be made without deduction, setoff or counterclaim.
(e)    At any time during a Cash Dominion Period and except as otherwise provided with respect to Defaulting Lenders:
(i)    all payments remitted to the Administrative Agent by any US Credit Party and all proceeds of US Collateral received by the Administrative Agent shall be applied to 

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the US Obligations as follows (it being understood that in the event that any Lender, as opposed to the Administrative Agent, receives such payment or proceeds from any source other than the Administrative Agent, such Lender shall remit such payment or proceeds, as applicable to the Administrative Agent for application to the US Obligations as provided in this Agreement): first, to the US Obligations consisting of costs and expenses (including attorneys’ fees and expenses) incurred by the Administrative Agent and the Collateral Agent in connection with this Agreement or any other Credit Document and to the principal and interest of Advances made to the US Borrowers (including US Swing Loans and Protective Advances) by the Administrative Agent and not reimbursed by the Lenders until paid in full; second, pro rata to interest due to the Lenders upon any of the Advances made to the US Borrowers and to the US Obligations consisting of costs and expenses (including attorneys’ fees and expenses) incurred by the Lenders in connection with (and to the extent payable or reimbursable to the Lenders under) this Agreement or any other Credit Document according to their respective Revolving Commitment Percentages thereof until paid in full; third, pro rata to fees due to the Administrative Agent and the Lenders in connection with this Agreement or any other Credit Document according to their respective Revolving Commitment Percentages thereof until paid in full; fourth, to the principal of the US Swing Loans made by the Domestic Swing Loan Lender and Protective Advances by the Administrative Agent; fifth, pro rata to the principal of the Revolving Advances made to the US Borrowers by each Lender according to their respective Revolving Commitment Percentages thereof and, after an Event of Default pursuant to Section 8.1(f) or (g) or if requested by the Administrative Agent or the Requisite Lenders after the occurrence of any other Event of Default, on a pro rata basis, to furnish to the Administrative Agent cash collateral in an amount not less than one hundred five (105%) percent of the Maximum Undrawn Amount of all US Letters of Credit, such cash collateral arrangements to be in form and substance reasonably satisfactory to the Administrative Agent until paid in full; sixth, to pay, pro rata, (x)  any of the Canadian Obligations in the manner provided in clause (e)(ii) below until paid in full (other than Canadian Cash Management Obligations and Canadian Hedging Obligations) and (y) any of the European Obligations in the manner provided in clause (e)(iii) below until paid in full (other than European Cash Management Obligations and European Hedging Obligations); seventh, pro rata to any US Cash Management Obligations or any US Hedging Obligations until paid in full; eighth, pro rata to any Canadian Cash Management Obligations and Canadian Hedging Obligations in the manner provided in clause (e)(ii) below until paid in full; (y) any European Cash Management Obligations and European Hedging Obligations in the manner provided in clause (e)(iii) below until paid in full, in each case on a pro rata basis; ninth, pro rata to any other Obligations until paid in full; and tenth, any remaining amounts to the Lead Borrower on behalf of the Borrowers.
(ii)    all payments remitted to the Administrative Agent by any Canadian Credit Party and, to the extent provided in clause (e)(i) above, any US Credit Party and all proceeds of Canadian Collateral and, to the extent provided in clause (e)(i) above, US Collateral received by the Administrative Agent shall be applied to the Canadian Obligations as follows (it being understood that in the event that any Lender, as opposed to the Administrative Agent, receives such payment or proceeds from any source other than the Administrative Agent, such Lender shall remit such payment or proceeds, as applicable to the Administrative Agent for application to the Canadian Obligations as provided in this Agreement): first, to the Canadian Obligations consisting of costs and expenses (including attorneys’ fees and expenses) incurred by the Administrative Agent and the Collateral Agent in connection with 

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this Agreement or any other Credit Document and to the principal and interest of the Advances made to the Canadian Borrowers (including Canadian Swing Loans and Protective Advances made to Canadian Borrowers) by the Administrative Agent and not reimbursed by Lenders until paid in full; second, pro rata to interest due to the Lenders upon any of the Advances made to the Canadian Borrowers and to the Canadian Obligations consisting of costs and expenses (including attorneys’ fees and expenses) incurred by Lenders in connection with (and to the extent payable or reimbursable to the Lenders under) this Agreement or any other Credit Document according to their respective Revolving Commitment Percentages thereof until paid in full; third, pro rata to fees due to the Administrative Agent and the Lenders in connection with this Agreement or any other Credit Document according to their respective Revolving Commitment Percentages thereof until paid in full; fourth, to the principal of the Canadian Swing Loans made by the Domestic Swing Loan Lender and Protective Advances by the Administrative Agent to the Canadian Borrowers; fifth, pro rata to the principal of the Revolving Advances made to the Canadian Borrowers made by each Lender according to their respective Revolving Commitment Percentages thereof and, after an Event of Default pursuant to Section 8.1(f) or (g) or if requested by the Administrative Agent or Requisite Lenders after the occurrence of any other Event of Default, on a pro rata basis, to furnish to the Administrative Agent cash collateral in an amount not less than one hundred five (105%) percent of the Maximum Undrawn Amount of all Canadian Letters of Credit, such cash collateral arrangements to be in form and substance reasonably satisfactory to the Administrative Agent until paid in full; sixth, pro rata to any Canadian Cash Management Obligations or any Canadian Hedging Obligations until paid in full; seventh, pro rata to any other Canadian Obligations until paid in full; and eighth, any remaining amounts to the Lead Borrower on behalf of the Borrowers.
(iii)    all payments remitted to the European Administrative Agent by any European Credit Party and all proceeds of European Collateral received by the European Administrative Agent shall be applied to the European Obligations as follows (it being understood that in the event that any Lender, as opposed to the European Administrative Agent, receives such payment or proceeds from any source other than the European Administrative Agent, such Lender shall remit such payment or proceeds, as applicable to the European Administrative Agent for application to the European Obligations as provided in this Agreement): first, to the European Obligations consisting of costs and expenses (including attorneys’ fees and expenses) incurred by the European Administrative Agent and the European Collateral Agent in connection with this Agreement or any other Credit Document and to the principal and interest of Advances made to the European Borrowers (including European Swing Loans and Protective Advances under the European Facility) by the European Administrative Agent and not reimbursed by the Lenders until paid in full; second, pro rata to interest due to the Lenders upon any of the Advances made to the European Borrowers and to the European Obligations consisting of costs and expenses (including attorneys’ fees and expenses) incurred by the Lenders in connection with (and to the extent payable or reimbursable to the Lenders under) this Agreement or any other Credit Document according to their respective Revolving Commitment Percentages thereof until paid in full; third, pro rata to fees due to the European Administrative Agent and the Lenders in connection with this Agreement or any other Credit Document according to their respective Revolving Commitment Percentages thereof until paid in full; fourth, to the principal of the European Swing Loans made by the European Swing Loan Lender and Protective Advances by the Administrative Agent; fifth, pro rata to the principal of the Revolving Advances made to the European Borrowers by each Lender according to their respective Revolving Commitment 

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Percentages thereof and, after an Event of Default pursuant to Section 8.1(f) or (g) or if requested by the European Administrative Agent or the Requisite Lenders after the occurrence of any other Event of Default, on a pro rata basis, to furnish to the European Administrative Agent cash collateral in an amount not less than one hundred five (105%) percent of the Maximum Undrawn Amount of all European Letters of Credit, such cash collateral arrangements to be in form and substance reasonably satisfactory to the European Administrative Agent until paid in full; sixth, pro rata to any European Cash Management Obligations or any European Hedging Obligations until paid in full; seventh, pro rata to any other European Obligations until paid in full; and eighth, any remaining amounts to the European Lead Borrower on behalf of the Borrowers.
(iv)    If any deficiency shall arise, the applicable Credit Parties shall remain liable to the Applicable Agent and the Lenders therefor.  If it is determined by an authority of competent jurisdiction that a disposition by the Applicable Agent did not occur in a commercially reasonably manner, the Applicable Agent may obtain a deficiency judgment for the difference between the amount of the Obligation and the amount that a commercially reasonable sale would have yielded.  The Applicable Agent will not be considered to have offered to retain the Collateral in satisfaction of the Obligations unless the Applicable Agent has entered into a written agreement with the Credit Party to that effect.
Notwithstanding the foregoing, amounts received from any Credit Party that is not an ECP shall not be applied to any Excluded Swap Obligations owing to any Lender Counterparty (it being understood, that in the event that any amount is applied to Obligations other than Excluded Swap Obligations as a result of this sentence, the Applicable Agent shall make such adjustments as it determines are appropriate to distributions pursuant to this Section 2.7 from amounts received from ECP’s to ensure, as nearly as possible, that the proportional aggregate recoveries with respect to Obligations described in above paragraphs of this Section 2.7 by Lender Counterparties that are the holders of any Excluded Swap Obligations are the same as the proportional aggregate recoveries with respect to other Obligations pursuant to the above paragraphs of this Section 2.7.

2.8    [Reserved].
2.9    Statement of Account.  The Applicable Agent shall maintain, in accordance with its customary procedures, a separate sub-loan account for the US Borrowers, the Canadian Borrowers and the European Borrowers and by applicable currency (collectively, the “Borrowers’ Account”) in the name of the US Borrowers, the Canadian Borrowers and the European Borrowers, in which shall be recorded separately the date and amount of each Advance made by the Applicable Agent and the Lenders and the date and amount of each payment in respect thereof; provided, however, the failure by the Applicable Agent to record the date and amount of any Advance shall not adversely affect the Applicable Agent or any Lender.  Each month the Applicable Agent shall send to the Applicable Lead Borrower a statement showing the accounting for the Advances made, payments made or credited in respect thereof, and other transactions between the Applicable Agent, the Lenders and each Borrower during such month.  The monthly statements shall be deemed correct and binding upon each Borrower in the absence of manifest error and shall constitute an account stated between the Lenders and the Borrowers unless the Applicable Agent receives a written statement of the Applicable Lead Borrower’s specific exceptions thereto within thirty (30) days after such statement is received by the Applicable Lead Borrower. The records of the Applicable Agent with respect to the applicable Borrowers’ Account shall be conclusive evidence absent manifest error of the amounts of Advances and other charges thereto and of payments applicable thereto.

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2.10    Letters of Credit.
(a)    Subject to the terms and conditions hereof, (i) at the request of the Lead Borrower on behalf of a US Borrower, the Administrative Agent agrees to cause the applicable Issuer to issue, and such Issuer agrees to issue, for the joint and several account of the US Borrowers one or more US Letters of Credit denominated in Dollars, Canadian Dollars, Euros, Australian Dollars or another currency acceptable to such Issuer in its sole discretion, for the ratable risk of each Lender according to its Revolving Commitment Percentage, containing terms and conditions acceptable to the Administrative Agent and such Issuer, (ii) at the request of the Lead Borrower on behalf of a Canadian Borrower, the Administrative Agent agrees to cause the applicable Issuer to issue, and such Issuer agrees to issue, for the joint and several account of the Canadian Borrowers one or more Canadian Letters of Credit denominated in Dollars or Canadian Dollars, for the ratable risk of each Lender according to its Revolving Commitment Percentage, containing terms and conditions acceptable to the Administrative Agent and such Issuer and (iii) at the request of the European Lead Borrower on behalf of a European Borrower, the European Administrative Agent agrees to cause the applicable Issuer to issue, and such Issuer agrees to issue, for the joint and several account of the European Borrowers one or more European Letters of Credit denominated in Dollars, Pounds Sterling or Euros, for the ratable risk of each Lender according to its Revolving Commitment Percentage, containing terms and conditions acceptable to the European Administrative Agent and such Issuer; provided, however, that, no Issuer will be required to issue any (r) Letters of Credit to the extent that the Dollar Equivalent of the face amount of such Letters of Credit would cause the Aggregate Exposure to exceed the Maximum Credit at such time, (s) Letters of Credit to the extent that the Dollar Equivalent of the face amount of such Letters of Credit would cause the Aggregate Domestic Exposure to exceed the Maximum Domestic Credit at such time, (t) Letters of Credit to the extent that the Dollar Equivalent of the face amount thereof would exceed $20,000,000, (u) US Letters of Credit to the extent that the Dollar Equivalent of the face amount of such US Letters of Credit would cause the Aggregate US Exposure to exceed the US Borrowing Base at such time, (v) Canadian Letters of Credit to the extent that the Dollar Equivalent of the face amount of such Canadian Letters of Credit would cause the Aggregate Canadian Exposure to exceed the lesser of (I) the Canadian Borrowing Base at such time and (II) Canadian Revolving Loan Maximum Amount at such time, (w) European Letters of Credit to the extent that the Dollar Equivalent of the face amount of such European Letters of Credit would cause the Aggregate European Exposure to exceed the lesser of (I) the European Borrowing Base at such time and (II) Maximum European Credit at such time, (x) Canadian Letters of Credit to the extent that the Dollar Equivalent of the face amount thereof would exceed the Canadian Letter of Credit Limit, (y) European Letters of Credit to the extent that the Dollar Equivalent of the face amount thereof would exceed the European Letter of Credit Limit and (z) European Letters of Credit to the extent that the Dollar Equivalent of the face amount of such European Letters of Credit would cause the Individual Aggregate European Exposure of any European Borrower to exceed the Individual European Borrowing Base of such European Borrower at such time. All disbursements or payments related to US Letters of Credit issued for the account of the US Borrowers shall be deemed to be Domestic Rate Loans consisting of Revolving Advances (subject to Section 2.13(b)) and shall bear interest at the Revolving Interest Rate for Domestic Rate Loans. All disbursements or payments related to Canadian Letters of Credit issued for the account of the Canadian Borrowers shall be deemed to be Canadian Prime Rate Loans or US Base Rate Loans, according to the applicable currency, consisting of Revolving Advances and shall bear interest at the Canadian Prime Rate or the US Base Rate, as applicable.  All disbursements or payments related to European Letters of Credit issued for the account of the European Borrowers shall be deemed to be LIBOR Rate Loans with an Interest Period of one (1) month consisting of Revolving Advances (subject to Section 2.13(b)) and shall bear interest at the Revolving Interest Rate for LIBOR Rate Loans.  Letters of Credit that have not been drawn upon shall not bear interest (but fees shall accrue in respect of outstanding Letters of Credit as provided in Section 2.24).  

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(b)    Notwithstanding any provision of this Agreement, no Issuer shall be under any obligation to issue any Letter of Credit if (i) any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain such Issuer from issuing any Letter of Credit, or any Requirement of Law applicable to such Issuer or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over such Issuer shall prohibit, or request that such Issuer refrain from, the issuance of letters of credit generally or the Letter of Credit in particular or shall impose upon such Issuer with respect to the Letter of Credit any restriction, reserve or capital requirement (for which such Issuer is not otherwise compensated hereunder) not in effect on the date of this Agreement, or shall impose upon such Issuer any unreimbursed loss, cost or expense which was not applicable on the date of this Agreement, and which such Issuer in good faith deems material to it, or (ii) the issuance of the Letter of Credit would violate one or more policies of such Issuer applicable to letters of credit generally.
2.11    Issuance of Letters of Credit.
(a)    The Applicable Lead Borrower, on behalf of any Borrower, may request the applicable Issuer to issue or cause the issuance of a Letter of Credit by delivering to such Issuer, with a copy to the Applicable Agent at the applicable Payment Office prior to 10:00 a.m. Local Time, at least five (5) Business Days prior to the proposed date of issuance (or such shorter period of time as may be acceptable to such Issuer), such Issuer’s form of Letter of Credit Application (the “Letter of Credit Application”) completed to the satisfaction of the Applicable Agent (which, in the case of a Letter of Credit issued for any European Borrower, must include the form of Letter of Credit to be issued, which must be in an agreed form 3 Business Days prior to its issuance) and such Issuer; and such other certificates, documents and other papers and information as the Applicable Agent or such Issuer may reasonably request. No Issuer shall issue any requested Letter of Credit if such Issuer has received notice from the Applicable Agent or any Lender that one or more of the applicable conditions set forth in Section 3.2 have not been satisfied or the commitments of the Lenders to make Revolving Advances hereunder have been terminated for any reason.
(b)    Each Letter of Credit shall, among other things, (i) provide for the payment of sight drafts, or other written demands for payment, or acceptances of issuance drafts when presented for honor thereunder in accordance with the terms thereof and when accompanied by the documents described therein and (ii) have an expiry date not later than twelve (12) months after such Letter of Credit’s date of issuance and in no event later than five (5) Business Days prior to the Revolving Commitment Termination Date. Each standby Letter of Credit shall be subject either to the Uniform Customs and Practice for Documentary Credits as most recently published by the International Chamber of Commerce at the time a Letter of Credit is issued (the “UCP”) or the International Standby Practices (International Chamber of Commerce Publication Number 590) (the “ISP98 Rules”), or any subsequent revision thereof at the time a standby Letter of Credit is issued, as determined by Issuer, and each trade Letter of Credit shall be subject to the UCP.  In addition, no trade Letter of Credit may permit the presentation of an ocean bill of lading that includes a condition that the original bill of lading is not required to claim the goods shipped thereunder.
(c)    The Applicable Agent shall use its reasonable efforts to notify Lenders of the request by the Applicable Lead Borrower for a Letter of Credit hereunder.
2.12    Requirements For Issuance of Letters of Credit.
(a)    The Applicable Lead Borrower shall authorize and direct any Issuer to name the applicable Borrower as the “Applicant” or “Account Party” of each Letter of Credit.  If the Applicable Agent is not the Issuer of any Letter of Credit, the Applicable Lead Borrower shall authorize and direct such Issuer to deliver to the Applicable Agent all instruments, documents, and other writings and property received by 

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the Issuer pursuant to the Letter of Credit and to accept and rely upon the Applicable Agent’s instructions and agreements with respect to all matters arising in connection with the applicable Letter of Credit and the application therefor.
(b)    In connection with all trade Letters of Credit issued or caused to be issued by an Issuer under this Agreement, each Borrower hereby appoints such Issuer, or its designee, as its attorney, with full power and authority if an Event of Default shall have occurred: (i) to sign and/or endorse such Borrower’s name upon any warehouse or other receipts, and acceptances; (ii) to sign such Borrower’s name on bills of lading; (iii) to clear Inventory through the United States of America Customs Department or the Canadian Borders Services Agency, as applicable (“Customs”), in the name of such Borrower or such Issuer or such Issuer’s designee, and to sign and deliver to Customs officials powers of attorney in the name of such Borrower for such purpose; and (iv) to complete in such Borrower’s name or Issuer’s name, or in the name of such Issuer’s designee, any order, sale or transaction, obtain the necessary documents in connection therewith, and collect the proceeds thereof.  Neither any Agent, any Issuer nor their attorneys will be liable for any acts or omissions nor for any error of judgment or mistakes of fact or law, except for such Agent’s, such Issuer’s or their respective attorney’s gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final and non-appealable decision).  This power, being coupled with an interest, is irrevocable as long as any Letters of Credit remain outstanding.
2.13    Disbursements, Reimbursement.
(a)    Immediately upon the issuance of each Letter of Credit, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the applicable Issuer a participation in each such Letter of Credit and each drawing thereunder in an amount equal to such Lender’s Revolving Commitment Percentage of the Maximum Undrawn Amount of such Letter of Credit (as in effect from time to time) and the amount of such drawing, respectively.
(b)    In the event of any request for a drawing under a Letter of Credit by the beneficiary or transferee thereof, the applicable Issuer will promptly notify the Applicable Agent and the Applicable Lead Borrower. Regardless of whether the Applicable Lead Borrower shall have received such notice, the US Borrowers (in the case of a US Letter of Credit), the Canadian Borrowers (in the case of a Canadian Letter of Credit) and the European Borrowers (in the case of a European Letter of Credit) shall joint and severally reimburse (such obligation to reimburse the applicable Issuer shall sometimes be referred to as a “Reimbursement Obligation”) the applicable Issuer prior to 12:00p.m. Local Time, on each date that an amount is paid by such Issuer under any Letter of Credit (each such date, a “Drawing Date”) in an amount equal to the amount so paid by such Issuer. In the event the applicable Borrowers fail to reimburse the applicable Issuer for the full amount of any drawing under any Letter of Credit by 12:00p.m. Local Time, on the Drawing Date, such Issuer will promptly notify the Applicable Agent and each Lender thereof, and the applicable Borrowers shall be automatically deemed to have requested that a Revolving Advance maintained as an applicable Base Rate Loan (or a LIBOR Rate Loan with an Interest Period of one (1) month under the European Facility for European Letters of Credit) be made by the Lenders, as applicable, to be disbursed on the Drawing Date under such Letter of Credit (which Revolving Advance, in the case of a US Letter of Credit or European Letter of Credit) denominated in a currency other than Dollars, shall be in an aggregate principal amount equal to the Dollar Equivalent of the applicable Reimbursement Obligation), and the Lenders shall be unconditionally obligated to fund such Revolving Advance (whether or not the conditions specified in Section 3.2 are then satisfied or the commitments of Lenders to make Revolving Advances hereunder have been terminated for any reason) as provided for in Section 2.13(c). Any notice given by an Issuer pursuant to this Section 2.13(b) may be oral if promptly confirmed in writing; provided that the lack of such a confirmation shall not affect the conclusiveness or binding effect of such notice.

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(c)    Each Lender shall upon any notice pursuant to Section 2.13(b) make available to the applicable Issuer through the Applicable Agent at the applicable Payment Office an amount in immediately available funds equal to its Revolving Commitment Percentage (subject to any contrary provisions of Section 2.20) of the amount of the drawing, whereupon the participating Lenders shall (subject to Section 2.13(d)) each be deemed to have made a Revolving Advance maintained as a Base Rate Loan (or a LIBOR Rate Loan with an Interest Period of one (1) month under the European Facility in respect of European Letters of Credit) to the applicable Borrowers in that amount. If any Lender so notified fails to make available to the Applicable Agent, for the benefit of the applicable Issuer, the amount of such Lender’s Revolving Commitment Percentage of such amount by 2:00 p.m. Local Time on the Drawing Date, then interest shall accrue on such Lender’s obligation to make such payment, from the Drawing Date to the date on which such Lender makes such payment (i) at a rate per annum equal to the Federal Funds Effective Rate or one month CDOR Rate (or the Overnight LIBOR Rate under the European Facility), as applicable, during the first three (3) days following the Drawing Date and (ii) at a rate per annum equal to the rate applicable to Revolving Advances maintained as Base Rate Loans (or an Overnight LIBOR Rate Loan under the European Facility) on and after the fourth (4th) day following the Drawing Date. The Applicable Agent and the applicable Issuer will promptly give notice of the occurrence of the Drawing Date, but failure of the Applicable Agent or such Issuer to give any such notice on the Drawing Date or in sufficient time to enable any Lender to effect such payment on such date shall not relieve such Lender from its obligations under this Section 2.13(c); provided that such Lender shall not be obligated to pay interest as provided in Section 2.13(c)(i) and (ii) until and commencing from the date of receipt of notice from the Applicable Agent or such Issuer of a drawing.
(d)    With respect to any unreimbursed drawing that is not converted into a Revolving Advance maintained as a Base Rate Loan (or a LIBOR Rate Loan with an Interest Period of one (1) month under the European Facility) to the applicable Borrowers in whole or in part as contemplated by Section 2.13(b), because of the applicable Borrowers’ failure to satisfy the conditions set forth in Section 3.2 (other than any notice requirements) or for any other reason, the applicable Borrowers shall be deemed to have incurred from the Applicable Agent a borrowing (each a “Letter of Credit Borrowing”) in the amount of such drawing (or, in the case of a drawing under a US Letter of Credit or European Letter of Credit denominated in a currency other than Dollars, the Dollar Equivalent of such drawing).  Such Letter of Credit Borrowing shall be due and payable on demand (together with interest) and shall bear interest at the rate per annum applicable to a Revolving Advance maintained as a Base Rate Loan (or a LIBOR Rate Loan with an Interest Period of one (1) month under the European Facility).  Each applicable Lender’s payment to the Applicable Agent pursuant to Section 2.13(c) shall be deemed to be a payment in respect of its participation in such Letter of Credit Borrowing and shall constitute a “Participation Advance” from such Lender in satisfaction of its Participation Commitment in respect of the applicable Letter of Credit under this Section 2.13.
(e)    Each applicable Lender’s Participation Commitment in respect of the Letters of Credit shall continue until the last to occur of any of the following events: (x) the applicable Issuer ceases to be obligated to issue or cause to be issued Letters of Credit hereunder; (y) no Letter of Credit issued or created hereunder remains outstanding and uncancelled; and (z) all Persons (other than the Borrowers) have been fully reimbursed for all payments made under or relating to the Letters of Credit.
2.14    Repayment of Participation Advances.
(a)    Upon (and only upon) receipt by the Applicable Agent for the account of the applicable Issuer of immediately available funds from the applicable Borrowers (i) in reimbursement of any payment made by such Issuer or the Applicable Agent under the Letter of Credit with respect to which any Lender has made a Participation Advance to the Applicable Agent or (ii) in payment of interest on such a payment made by such Issuer or the Applicable Agent under such a Letter of Credit, the Applicable Agent 

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will pay to each Lender, in the same funds as those received by the Applicable Agent, the amount of such Lender’s Revolving Commitment Percentage of such funds, except the Applicable Agent shall retain the amount of the Revolving Commitment Percentage of such funds of any Lender that did not make a Participation Advance in respect of such payment by the Applicable Agent (and, to the extent that any of the other Lender(s) have funded any portion such Defaulting Lender’s Participation Advance in accordance with the provisions of Section 2.20, the Applicable Agent will pay over to such Non-Defaulting funding Lenders a pro rata portion of the funds so withheld from such Defaulting Lender).
(b)    If any Issuer or the Applicable Agent is required at any time to return to any Borrower, or to a trustee, receiver, liquidator, custodian, or any official in any insolvency proceeding pursuant to an Insolvency Event, any portion of the payments made by the Borrowers to any Issuer or the Applicable Agent pursuant to Section 2.14(a) in reimbursement of a payment made under the Letter of Credit or interest or fee thereon, each Lender shall, on demand of the Applicable Agent forthwith return to such Issuer or the Applicable Agent the amount of its Revolving Commitment Percentage of any amounts so returned by such Issuer or the Applicable Agent plus interest at the Federal Funds Effective Rate or one month CDOR Rate, as applicable (or under the European Facility, the Overnight LIBOR Rate).
2.15    Documentation.  Each Borrower agrees to be bound by the terms of the Letter of Credit Application and by the applicable Issuer’s interpretations of any Letter of Credit issued on behalf of such Borrower and by such Issuer’s written regulations and customary practices relating to letters of credit, though the Issuer’s interpretations may be different from such Borrower’s own.  In the event of a conflict between the Letter of Credit Application and this Agreement, this Agreement shall govern.  It is understood and agreed that, except in the case of gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final non-appealable judgment), no Issuer shall be liable for any error, negligence and/or mistakes, whether of omission or commission, in following the Applicable Lead Borrower or any other Borrower’s instructions or those contained in the Letters of Credit or any modifications, amendments or supplements thereto.
2.16    Determination to Honor Drawing Request.  In determining whether to honor any request for drawing under any Letter of Credit by the beneficiary thereof, the applicable Issuer shall be responsible only to determine that the documents and certificates required to be delivered under such Letter of Credit have been delivered and that they comply on their face with the requirements of such Letter of Credit and that any other drawing condition appearing on the face of such Letter of Credit has been satisfied in the manner so set forth.
2.17    Nature of Participation and Reimbursement Obligations.  The obligation of each Lender in accordance with this Agreement to make the Revolving Advances or Participation Advances as a result of a drawing under a Letter of Credit, and the obligations of the Borrowers to reimburse the applicable Issuer upon a draw under a Letter of Credit, shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Section 2.17 under all circumstances, including the following circumstances:
(i)    any set-off, counterclaim, recoupment, defense or other right which such Lender or any Borrower, as the case may be, may have against any Issuer, any Agent, any Borrower or any Lender, as the case may be, or any other Person for any reason whatsoever;
(ii)    the failure of any Borrower or any other Person to comply, in connection with a Letter of Credit Borrowing, with the conditions set forth in this Agreement for the making of a Revolving Advance, it being acknowledged that such conditions are not required 

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for the making of a Letter of Credit Borrowing and the obligation of the Lenders to make Participation Advances under Section 2.13;
(iii)    any lack of validity or enforceability of any Letter of Credit;
(iv)    any claim of breach of warranty that might be made by any Borrower, any Agent, any Issuer or any Lender against the beneficiary of a Letter of Credit, or the existence of any claim, set-off, recoupment, counterclaim, cross-claim, defense or other right which any Borrower, any Agent, any Issuer or any Lender may have at any time against a beneficiary, any successor beneficiary or any transferee of any Letter of Credit or assignee of the proceeds thereof (or any Persons for whom any such transferee or assignee may be acting), any Issuer, any Agent or any Lender or any other Person, whether in connection with this Agreement, the transactions contemplated herein or any unrelated transaction (including any underlying transaction between any Borrower or any Subsidiaries of such Borrower and the beneficiary for which any Letter of Credit was procured);
(v)    the lack of power or authority of any signer of (or any defect in or forgery of any signature or endorsement on) or the form of or lack of validity, sufficiency, accuracy, enforceability or genuineness of any draft, demand, instrument, certificate or other document presented under or in connection with any Letter of Credit, or any fraud or alleged fraud in connection with any Letter of Credit, or the transport of any property or provision of services relating to a Letter of Credit, in each case even if the applicable Issuer or any of such Issuer’s Affiliates has been notified thereof;
(vi)    payment by any Issuer under any Letter of Credit against presentation of a demand, draft or certificate or other document which is forged or does not fully comply with the terms of such Letter of Credit (provided that the foregoing shall not excuse such Issuer from any obligation under the terms of any applicable Letter of Credit to require the presentation of documents that on their face appear to satisfy any applicable requirements for drawing under such Letter of Credit prior to honoring or paying any such draw);
(vii)    the solvency of, or any acts or omissions by, any beneficiary of any Letter of Credit, or any other Person having a role in any transaction or obligation relating to a Letter of Credit, or the existence, nature, quality, quantity, condition, value or other characteristic of any property or services relating to a Letter of Credit;
(viii)    any failure by any Issuer or any of such Issuer’s Affiliates to issue any Letter of Credit in the form requested by the Applicable Lead Borrower, unless the Applicable Agent and such Issuer have each received written notice from the Applicable Lead Borrower of such failure within three (3) Business Days after such Issuer shall have furnished the Applicable Agent and the Applicable Lead Borrower a copy of such Letter of Credit and such error is material and no drawing has been made thereon prior to receipt of such notice;
(ix)    the occurrence of any Material Adverse Effect;
(x)    any breach of this Agreement or any other Credit Document by any party hereto or thereto;

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(xi)    the occurrence or continuance of an Insolvency Event with respect to any Borrower or any Guarantor;
(xii)    the fact that a Default or Event of Default shall have occurred and be continuing;
(xiii)    the fact that the Revolving Commitment Termination Date shall have occurred or this Agreement or the obligations of the Lenders to make Advances have been terminated; and
(xiv)    any other circumstance or happening whatsoever, whether or not similar to any of the foregoing.
2.18    Liability for Acts and Omissions.
(a)    As between the Borrowers and each Issuer, the Agents and the Lenders, each Borrower assumes all risks of the acts and omissions of, or misuse of the Letters of Credit by, the respective beneficiaries of such Letters of Credit. In furtherance and not in limitation of the foregoing, no Issuer shall be responsible for: (i) the form, validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in connection with the application for an issuance of any such Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged (even if such Issuer or any of its Affiliates shall have been notified thereof); (ii) the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign any such Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason; (iii) the failure of the beneficiary of any such Letter of Credit, or any other party to which such Letter of Credit may be transferred, to comply fully with any conditions required in order to draw upon such Letter of Credit or any other claim of any Borrower against any beneficiary of such Letter of Credit, or any such transferee, or any dispute between or among any Borrower and any beneficiary of any Letter of Credit or any such transferee; (iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by mail, cable, facsimile, telex or otherwise, whether or not they be in cipher; (v) errors in interpretation of technical terms; (vi) any loss or delay in the transmission or otherwise of any document required in order to make a drawing under any such Letter of Credit or of the proceeds thereof; (vii) the misapplication by the beneficiary of any such Letter of Credit of the proceeds of any drawing under such Letter of Credit; or (viii) any consequences arising from causes beyond the control of such Issuer, including any Governmental Acts, and none of the above shall affect or impair, or prevent the vesting of, any of the Issuer’s rights or powers hereunder. Nothing in the preceding sentence shall relieve any Issuer from liability for such Issuer’s gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final non-appealable judgment) in connection with actions or omissions described in such clauses (i) through (viii) of such sentence.  In no event shall any Issuer or any Issuer’s Affiliates be liable to any Borrower for any indirect, consequential, incidental, punitive, exemplary or special damages or expenses (including without limitation attorneys’ fees), or for any damages resulting from any change in the value of any property relating to a Letter of Credit.
(b)    Without limiting the generality of the foregoing, each Issuer and each of its Affiliates:  (i) may rely on any oral or other communication believed in good faith by each Issuer or such Affiliate to have been authorized or given by or on behalf of the applicant for a Letter of Credit; (ii) may honor any presentation if the documents presented appear on their face substantially to comply with the terms and conditions of the relevant Letter of Credit; (iii) may honor a previously dishonored presentation under a Letter of Credit, whether such dishonor was pursuant to a court order, to settle or compromise any claim of 

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wrongful dishonor, or otherwise, and shall be entitled to reimbursement to the same extent as if such presentation had initially been honored, together with any interest paid by such Issuer or its Affiliates; (iv) may honor any drawing that is payable upon presentation of a statement advising negotiation or payment, upon receipt of such statement (even if such statement indicates that a draft or other document is being delivered separately), and shall not be liable for any failure of any such draft or other document to arrive, or to conform in any way with the relevant Letter of Credit; (v) may pay any paying or negotiating bank claiming that it rightfully honored under the laws or practices of the place where such bank is located; and (vi) may settle or adjust any claim or demand made on such Issuer or its Affiliate in any way related to any order issued at the applicant’s request to an air carrier, a letter of guarantee or of indemnity issued to a steamship agent or carrier or any document or instrument of like import (each an “Order”) and honor any drawing in connection with any Letter of Credit that is the subject of such Order, notwithstanding that any drafts or other documents presented in connection with such Letter of Credit fail to conform in any way with such Letter of Credit.
(c)    In furtherance and extension and not in limitation of the specific provisions set forth above, any action taken or omitted by any Issuer under or in connection with the Letters of Credit issued by it or any documents and certificates delivered thereunder, if taken or omitted in good faith and without gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final non-appealable judgment), shall not put such Issuer under any resulting liability to any Borrower, any Agent or any Lender.
2.19    Use of Proceeds.
(a)    The Borrowers shall apply the proceeds of Advances and use the Letters of Credit to (i) provide for their working capital and general corporate needs and (ii) in the case of Advances, reimburse drawings under Letters of Credit.
(b)    Without limiting the generality of Section 2.19(a), neither the Borrowers, the Guarantors nor any other Person which may in the future become party to this Agreement or the other Credit Documents as a Borrower or a Guarantor, intends to use nor shall they use any portion of the proceeds of the Advances or any Letters of Credit, directly or indirectly, for any purpose in violation of any Requirement of Law.
2.20    Defaulting Lender.
(a)    Notwithstanding anything to the contrary contained herein, in the event any Lender is a Defaulting Lender, all rights and obligations hereunder of such Defaulting Lender and of the other parties hereto shall be modified to the extent of the express provisions of this Section 2.20 so long as such Lender is a Defaulting Lender.
(b)    (i) Except as otherwise expressly provided for in this Section 2.20, Revolving Advances shall be made pro rata from the Lenders which are not Defaulting Lenders based on their respective Revolving Commitment Percentages, and no Revolving Commitment Percentage of any Lender or any pro rata share of any Revolving Advances required to be advanced by any Lender shall be increased as a result of any Lender being a Defaulting Lender. Amounts received in respect of principal of any Type of Revolving Advance shall be applied to reduce such Type of Revolving Advance of each Lender (other than a Defaulting Lender) in accordance with their Revolving Commitment Percentages; provided, that, neither Applicable Agent shall not be obligated to transfer to a Defaulting Lender any payments received by the Applicable Agent for the Defaulting Lender’s benefit, nor shall a Defaulting Lender be entitled to the sharing of any payments hereunder (including any principal, interest or fees).  Amounts payable to a Defaulting Lender 

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shall instead be paid to or retained by the Applicable Agent.  The Applicable Agent may hold and, in its discretion, re-lend to a Borrower the amount of such payments received or retained by it for the account of such Defaulting Lender.
(ii)    fees pursuant to Section 2.25 shall cease to accrue in favor of such Defaulting Lender;
(iii)    if any Swing Loans or Protective Advances are outstanding or any Letter of Credit Obligations (or drawings under any Letter of Credit for which the applicable Issuer has not been reimbursed) are outstanding or exist at the time any such Lender becomes a Defaulting Lender, then:
(A)    the Defaulting Lender’s Participation Commitment in the outstanding Swing Loans and Protective Advances and of the Maximum Undrawn Amount of all outstanding Letters of Credit shall be reallocated among the applicable Non-Defaulting Lenders in proportion to the respective Revolving Commitment Percentages of such Non-Defaulting Lenders to the extent (but only to the extent) that (x) such reallocation does not cause the aggregate sum of outstanding Revolving Advances made by any such Non-Defaulting Lender plus such Lender’s reallocated Participation Commitment in the outstanding Swing Loans plus such Lender’s reallocated Participation Commitment in the aggregate Maximum Undrawn Amount of all outstanding Letters of Credit to exceed the Revolving Commitment Amount of any such Non-Defaulting Lender, and (y) no Default or Event of Default has occurred and is continuing at such time;
(B)    if the reallocation described in clause (A) above cannot, or can only partially, be effected, the applicable Borrowers shall within one (1) Business Day following notice by the Applicable Agent (x) first, prepay any outstanding Swing Loans and Protective Advances that cannot be reallocated, and (y) second, cash collateralize for the benefit of each Issuer the applicable Borrowers’ obligations corresponding to such Defaulting Lender’s Participation Commitment in the Maximum Undrawn Amount of all Letters of Credit issued for the account of such Borrower (after giving effect to any partial reallocation pursuant to clause (A) above) in accordance with Section 2.24(b) for so long as such Obligations are outstanding;
(C)    if the Borrowers cash collateralize any portion of such Defaulting Lender’s Participation Commitment in the Maximum Undrawn Amount of all applicable Letters of Credit pursuant to clause (B) above, the applicable Borrowers shall not be required to pay any fees to such Defaulting Lender pursuant to Section 2.24(b) with respect to such Defaulting Lender’s Revolving Commitment Percentage of Maximum Undrawn Amount of all Letters of Credit during the period such Defaulting Lender’s Participation Commitment in the Maximum Undrawn Amount of all Letters of Credit are cash collateralized;
(D)    if the Defaulting Lender’s Participation Commitment in the Maximum Undrawn Amount of all applicable Letters of Credit is reallocated pursuant to clause (A) above, then the fees payable to the applicable Lenders pursuant to Section 2.25 shall be adjusted and reallocated to the Non-Defaulting Lenders in accordance with such reallocation;
(E)    if all or any portion of such Defaulting Lender’s Participation Commitment in the Maximum Undrawn Amount of all applicable Letters of Credit is neither reallocated nor cash collateralized pursuant to clause (A) or (B) above, then, without prejudice to any rights or remedies of any Issuer or any Lender hereunder, all applicable Letter of Credit Fees payable under Section 2.25 with respect to such Defaulting Lender’s Revolving Commitment Percentage of the Maximum Undrawn Amount 

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of all applicable Letters of Credit shall be payable to the respective Issuer (and not to such Defaulting Lender) until (and then only to the extent that) such Revolving Participation Commitment in the Maximum Undrawn Amount of all applicable Letters of Credit is reallocated and/or cash collateralized; and
(iv)    so long as any Lender is a Defaulting Lender, no Swing Loan Lender shall be required to fund any Swing Loans and no Issuer shall be required to issue, amend or increase any Letter of Credit, unless such Issuer is satisfied that the related exposure and the Defaulting Lender’s Participation Commitment in the Maximum Undrawn Amount of all applicable Letters of Credit and all Swing Loans (after giving effect to any such issuance, amendment, increase or funding) will be fully allocated to the Non-Defaulting Lenders and/or cash collateral for such Letters of Credit will be provided by the applicable Borrowers in accordance with clauses (A) and (B) above, and participating interests in any newly made Swing Loan or any newly issued or increased Letter of Credit shall be allocated among the Non-Defaulting Lenders in a manner consistent with Section 2.20(b)(iii)(A) (and such Defaulting Lender shall not participate therein).
(c)    A Defaulting Lender shall not be entitled to give instructions to any Agent or to approve, disapprove, consent to or vote on any matters relating to this Agreement and the other Credit Documents, and all amendments, waivers and other modifications of this Agreement and the other Credit Documents may be made without regard to a Defaulting Lender and, for purposes of the definition of “Requisite Lenders”, a Defaulting Lender shall not be deemed to be a Lender, to have any outstanding Advances or a Revolving Commitment Percentage; provided, that this clause (c) shall not apply to the vote of a Defaulting Lender in the case of an amendment, waiver or other modification described in clauses (i), (ii), (iii), (iv), (v), (vi) or (ix) of Section 10.5(b).
(d)    Other than as expressly set forth in this Section 2.20, the rights and obligations of a Defaulting Lender (including the obligation to indemnify the Agents and the Lenders) and the other parties hereto shall remain unchanged. Nothing in this Section 2.20 shall be deemed to release any Defaulting Lender from its obligations under this Agreement and the other Credit Documents, shall alter such obligations, shall operate as a waiver of any default by such Defaulting Lender hereunder, or shall prejudice any rights which any Borrower, any Agent or any Lender may have against any Defaulting Lender as a result of any default by such Defaulting Lender hereunder.
(e)    In the event that the Agents, the Lead Borrower, the European Lead Borrower, each Swing Loan Lender and the Issuers agree in writing that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the Applicable Agent will so notify the parties hereto, and the Participation Commitments of the Lenders (including such cured Defaulting Lender) of the Swing Loans, Protective Advances and the Maximum Undrawn Amount of all outstanding applicable Letters of Credit shall be reallocated to reflect the inclusion of such Lender’s Revolving Commitment, and on such date such Lender shall purchase at par such of the applicable Revolving Advances of the other applicable Lenders as the Applicable Agent shall determine may be necessary in order for such Lender to hold such applicable Revolving Advances in accordance with its Revolving Commitment Percentage.
(f)    If any Swing Loan Lender or any Issuer has a good faith belief that any Lender has defaulted in fulfilling its obligations under one or more other agreements in which such Lender commits to extend credit, such Swing Loan Lender shall not be required to fund any Swing Loans and no Issuer shall be required to issue, amend or increase any Letter of Credit, unless such Swing Loan Lender or such Issuer, as the case may be, shall have entered into arrangements with the Borrowers or such Lender, satisfactory to 

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such Swing Loan Lender or such Issuer, as the case may be, to defease any risk to it in respect of such Lender hereunder.
2.21    Payment of Obligations.  The Applicable Agent may charge to the applicable Borrowers’ Account as a Revolving Advance (or as a Protective Advance, as applicable) or at the discretion of the applicable Swing Loan Lender, as a Swing Loan (i) all payments with respect to any of the respective US Obligations, Canadian Obligations or European Obligations, as the case may be, required hereunder (including without limitation principal payments, payments of interest, payments of Letter of Credit Fees and all other fees provided for hereunder and payments under Sections 10.2 and 10.3) as and when each such payment shall become due and payable (whether as regularly scheduled, upon or after acceleration, upon maturity or otherwise), subject to any grace periods hereunder, and all amounts so charged shall be added to the US Obligations, the Canadian Obligations or the European Obligations, as applicable, and shall be secured by the applicable Borrower’s Collateral. To the extent Revolving Advances are not actually funded by the other Lenders in respect of any such amounts so charged, all such amounts so charged shall be deemed to be Revolving Advances made by and owing to the Applicable Agent, and the Applicable Agent shall be entitled to all rights (including accrual of interest) and remedies of a Lender under this Agreement and the other Credit Documents with respect to such Revolving Advances.
2.22    Increase in Maximum Credit
(a)    Increase Requests.  The (A) Lead Borrower may make one or more requests to the Administrative Agent, in writing, at any time prior to the Revolving Commitment Termination Date, to request that the Maximum Credit be increased, with a corresponding increase to the Maximum Domestic Credit, and (B) the European Lead Borrower may make one or more requests to the Administrative Agent (with a copy to the European Administrative Agent), in writing, at any time prior to the Revolving Commitment Termination Date, to request that the Maximum Credit be increased, with a corresponding increase to the Maximum European Credit (in each case, a “Revolving Commitment Increase”) by (1) one or  more of the current Lenders increasing their Revolving Commitment Amount (any current Lender which elects to increase its Revolving Commitment Amount shall be referred to as an “Increasing Lender”) or (2) one or more new lenders (each a “Additional Lender”) joining this Agreement and providing a Revolving Commitment Amount hereunder; provided, that after giving effect to any such increase, (i) the aggregate amount of all Revolving Commitments provided pursuant to Revolving Commitment Increases requested by the Lead Borrower pursuant to clause (A) above shall not exceed $15,000,000, and (ii) the aggregate amount of all Revolving Commitments provided pursuant to Revolving Commitment Increases requested by the European Lead Borrower pursuant to clause (B) above shall not exceed $10,000,000.00; provided, further that any such Revolving Commitment Increase must be in a minimum amount of at least $5,000,000 (or such lesser amount which shall be approved by the Applicable Agent) and in integral multiples of $1,000,000 in excess thereof.  Notwithstanding the foregoing, (i) no Borrower may request the addition of an Additional Lender unless (and then only to the extent that) there is insufficient participation on behalf of the existing Lenders in the Revolving Commitment Increase being requested by such Borrower, and (ii) each Increasing Lender shall have the option to be allocated such portion of the increase in the Revolving Commitment Amount as will allow such Lender to maintain its Revolving Commitment Percentage after giving effect to such increase in the Revolving Commitment Amount.
(b)    General.  A Revolving Commitment Increase will:
(i)    only become effective if:

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(A)    the Lead Borrower shall have given the Administrative Agent, or the European Lead Borrower shall have given the Administrative Agent and the European Administrative Agent, at least five (5) Business Days’ notice of its intention to effect a Revolving Commitment Increase and the desired amount of such Revolving Commitment Increase;
(B)    the conditions precedent to a Credit Extension set forth in Section 3.2 (except for Section 3.2(a)(i) to the extent inapplicable) are satisfied as of the date of such Revolving Commitment Increase;
(C)    as of the date of such Revolving Commitment Increase and immediately after giving effect thereto, the representations and warranties contained herein and in the other Credit Documents shall be true and correct in all material respects on and as of the date of such Increase to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date;
(D)    as of the date of such Revolving Commitment Increase and immediately after giving effect thereto, no event shall have occurred and be continuing or would result from the consummation of such Revolving Commitment Increase that would constitute an Event of Default or a Default;
(E)    if requested by the Administrative Agent (or in the case of any increase requested by the European Lead Borrower, the European Administrative Agent), Organizational Documents of the Credit Parties, resolutions (or equivalent authorization) of each Credit Party’s board of directors (or equivalent body) or shareholders (or equivalent), as applicable, approving such Revolving Commitment Increase and an opinion of counsel to the Credit Parties in form and substance and from counsel reasonably satisfactory to the Administrative Agent (and in the case of any increase requested by the European Lead Borrower, the European Administrative Agent) and addressed to each Agent and the Lenders and addressing such matters as the applicable Agents may reasonably request shall be delivered to the Administrative Agent (and in the case of any increase requested by the European Lead Borrower, the European Administrative Agent);
(ii)    be secured by the Collateral on a pari passu basis with the other Revolving Advances, rank pari passu in right of payment with the other Revolving Advances, and be guaranteed to the same extent as the other Revolving Advances;
(iii)    (A) have the same maturity date as the Revolving Commitment Termination Date for the existing Revolving Advances, (B) have the same Applicable Margins as the Revolving Advances and (C) otherwise be on the exact same terms and pursuant to the exact same documentation applicable to the Revolving Advances.
(c)    Procedures. (i) Each Increasing Lender shall confirm its agreement to increase its Revolving Commitment Amount pursuant to an acknowledgement in a form acceptable to the Administrative Agent and the European Administrative Agent, signed by it and each Borrower and delivered to the Administrative Agent and the European Administrative Agent at least five (5) days before the effective date 

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of such increase. No Lender shall be obligated to provide any Revolving Commitment Increase unless it so agrees in its sole discretion. Any Additional Lender shall be subject to the approval of the Administrative Agent (and with respect to any such increase requested by the European Lead Borrower, the European Administrative Agent), the Domestic Swing Loan Lender (and with respect to any such increase requested by the European Lead Borrower, the European Swing Loan Lender) and each Issuer. Any increase in the Maximum Credit shall be effected pursuant to an amendment to this Agreement (each such amendment a “Revolving Commitment Increase Amendment”) and, as appropriate, the other Credit Documents, executed by the Borrowers, each Additional Lender, if any, and the Administrative Agent (and with respect to any such increase requested by the European Lead Borrower, the European Administrative Agent). Any such Commitment Increase Amendment may, without the consent of any other Lenders, effect such amendments to any Credit Documents as may be necessary or appropriate, in the opinion of the Administrative Agent and the European Administrative Agent, to effect the provisions of this Section 2.22.  Each such Revolving Commitment Increase Amendment and all other documentation in respect of such Revolving Commitment Increase shall be reasonably satisfactory to the Administrative Agent (and with respect to any such increase requested by the European Lead Borrower, the European Administrative Agent).
(ii)    The Administrative Agent, European Administrative Agent and the Applicable Lead Borrower shall determine the effective date of such Revolving Commitment Increase (the “Revolving Commitment Increase Effective Date”). The Applicable Agent shall promptly notify the Applicable Lead Borrower and the Lenders of the final allocation of such Revolving Commitment Increase and the Revolving Commitment Increase Effective Date. On each Revolving Commitment Increase Effective Date, each Lender or Additional Lender which is providing a Revolving Commitment Amount shall become a “Lender” for all purposes of this Agreement and the other Credit Documents.
(iii)    On the Revolving Commitment Increase Effective Date, (i) the Borrowers shall repay all Revolving Advances then outstanding, subject to the Borrowers’ obligations under Sections 2.28 or 2.29; provided that subject to the other conditions of this Agreement, the Applicable Lead Borrower may request new Revolving Advances on such date and (ii) the Revolving Commitment Percentages of all of the Lenders holding a Revolving Commitment (including each Increasing Lender and/or Additional  Lender) shall be recalculated such that each such Lender’s Revolving Commitment Percentage is equal to (x) the Revolving Commitment Amount of such Lender divided by (y) the aggregate of the Revolving Commitment Amounts of all Lenders.  Each of the Lenders shall participate in any new Revolving Advances made on or after such date in accordance with their respective Revolving Commitment Percentages after giving effect to the increase in the Maximum Credit and recalculation of the Revolving Commitment Percentages contemplated by this Section 2.22.
(iv)    On the Revolving Commitment Increase Effective Date, each Increasing Lender shall be deemed to have purchased an additional/increased participation in, and each Additional Lender will be deemed to have purchased a new participation in, each then outstanding Letter of Credit and each drawing thereunder and each then outstanding Swing Loan in an amount equal to such Lender’s Revolving Commitment Percentage (as calculated pursuant to Section 2.22(b)) of the Maximum Undrawn Amount of each such Letter of Credit (as in effect from time to time) and the amount of each drawing and of each such Swing Loan, respectively.  As necessary to effectuate the foregoing, each existing Lender holding a Revolving Commitment Percentage that is not an Increasing Lender shall be deemed to have sold to each applicable Increasing Lender and/or Additional Lender, as necessary, a 

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portion of such existing Lender’s participations in such outstanding Letters of Credit and drawings and such outstanding Swing Loans such that, after giving effect to all such purchases and sales, each Lender holding a Revolving Commitment (including each Increasing Lender and/or Additional Lender) shall hold a participation in all Letters of Credit (and drawings thereunder) and all Swing Lines in accordance with their respective Revolving Commitment Percentages (as calculated pursuant to Section 2.22(b) above).

(vi)    Nothing set forth in Section 10.5 or any pro rata payment provisions in Section 2.14 shall be interpreted as restricting or prohibiting any aspect of the transactions contemplated by this Section 2.21.

(d)    Use of Proceeds of Facility Increase. The proceeds of any Revolving Commitment Increase may be used as specified in Section 2.19.
(e)    At the time of any provision of any Revolving Commitment Increase pursuant to this Section 2.21, all Dollar thresholds included in any determination made with respect to Global Excess Availability, 90-Day Global Excess Availability, European Excess Availability and Domestic Excess Availability shall be increased automatically in an amount equal to the percentage by which the Revolving Commitment Increase increases the Maximum Credit.
2.23    Interest.  Interest on Advances shall be payable in arrears on the first day of each Fiscal Quarter with respect to Base Rate Loans and Overnight LIBOR Rate Loans and, with respect to Fixed Rate Loans, at (a) the end of each Interest Period, and (b) for Fixed Rate Loans with an Interest Period in excess of three months, at the end of each three month period during such Interest Period; provided, that all accrued and unpaid interest shall be due and payable on the Revolving Commitment Termination Date (or any earlier termination of this Agreement or the Revolving Commitments). Interest charges shall be computed on the actual principal amount of Advances outstanding during the applicable period at a rate per annum equal to (i) with respect to Revolving Advances (other than Protective Advances), the applicable Revolving Interest Rate and (ii) with respect to (y) US Swing Loans, Canadian Swing Loans and Protective Advances under the Domestic Facility, the Revolving Interest Rate for applicable Base Rate Loans and (z) European Swing Loans and Protective Advances under the European Facility, the Revolving Interest Rate for Overnight LIBOR Rate Loans. Except as expressly provided otherwise in this Agreement, any Obligations other than the Advances that are not paid when due shall accrue interest at the Revolving Interest Rate for applicable Base Rate Loans (or in the case of the European Facility, the Revolving Interest Rate for LIBOR Rate Loans for an Interest Period of one (1) month), subject to the provision of the final sentence of this Section 2.23 regarding the Default Rate.  Whenever, subsequent to the date of this Agreement, the Alternate US Base Rate, the US Base Rate, the Canadian Prime Rate or the Overnight LIBOR Rate is increased or decreased, the Revolving Interest Rate for Base Rate Loans or Overnight LIBOR Rate Loans, as applicable, shall be similarly changed without notice or demand of any kind by an amount equal to the amount of such change in the US Alternate Base Rate or the Canadian Prime Rate or US Base Rate or the Overnight LIBOR Rate, as applicable, during the time such change or changes remain in effect.  The LIBOR Rate shall be adjusted with respect to Fixed Rate Loans without notice or demand of any kind on the effective date of any change in the Reserve Percentage (or any statutory reserve requirement for Eurocurrency liabilities affecting the LIBOR Rate with respect to Advances under the European Facility) as of such effective date.  The Overnight LIBOR Rate shall be adjusted with respect to Overnight LIBOR Rate Loans without notice or demand of any kind on the effective date of any change in the Reserve Percentage as of such effective date.  Upon and after the occurrence of an Event of Default under Section 8.1(a), 8.1(f) or 8.1(g), and during the continuation thereof, (i) the Advances other than Fixed Rate Loans and Overnight LIBOR Rate Loans shall bear interest at the applicable Revolving Interest Rate for Base Rate Loans plus two (2.00%) percent per annum, (ii) Fixed 

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Rate Loans shall bear interest at the Revolving Interest Rate for Fixed Rate Loans plus two (2.00%) percent per annum and (iii) Overnight LIBOR Rate Loans shall bear interest at the Revolving Interest Rate for Overnight LIBOR Rate Loans plus two (2.00%) percent per annum (as applicable, the “Default Rate”).
2.24    Letter of Credit Fees.
(a)    The applicable Borrowers shall pay (x) to the Applicable Agent, for the ratable benefit of the Lenders, fees for their respective US Letters of Credit, Canadian Letters of Credit or European Letters of Credit for the period from and excluding the date of issuance of same to and including the date of expiration or termination, equal to the Dollar Equivalent of the average daily face amount of each outstanding Letter of Credit multiplied by the Applicable Margin for Revolving Advances consisting of Fixed Rate Loans under the Domestic Facility or European Facility as applicable, such fees to be calculated with respect to US Letters of Credit, Canadian Letters of Credit and European Letters of Credit (other than any such Letters of Credit denominated in Canadian Dollars or Pounds Sterling), on the basis of a 360-day year for the actual number of days elapsed and with respect to US Letters of Credit or Canadian Letters of Credit denominated in Canadian Dollars and European Letters of Credit denominated in Pounds Sterling, on the basis of a 365-day (or 366-day, as applicable) year for the actual number of days elapsed, and to be payable quarterly in arrears on the first day of each Fiscal Quarter and on the first day on or after the termination of the Revolving Commitments on which no Letters of Credit remain outstanding, and (y) to each Issuer, a fronting fee of one quarter of one percent (0.25%) per annum (calculated on a basis consistent with preceding clause (x)) times the Dollar Equivalent of the average daily face amount of each outstanding Letter of Credit issued by such Issuer for the period from and excluding the date of issuance of same to and including the date of expiration or termination, and to be payable at the same times as the fees set forth in preceding clause (x) (all of the foregoing fees, the “Letter of Credit Fees”). In addition, the applicable Borrowers shall pay to the Applicable Agent, for the benefit of each Issuer, any and all administrative, issuance, amendment, payment and negotiation charges with respect to US Letters of Credit, Canadian Letters of Credit or European Letters of Credit, as applicable, issued by such Issuer and all fees and expenses as agreed upon by such Issuer and the Applicable Lead Borrower in connection with any Letter of Credit, including in connection with the opening, amendment or renewal of any such Letter of Credit and any acceptances created thereunder, all such charges, fees and expenses, if any, to be payable on demand.  All such charges shall be deemed earned in full on the date when the same are due and payable hereunder and shall not be subject to rebate or pro-ration upon the termination of this Agreement for any reason.  Any such charge in effect at the time of a particular transaction shall be the charge for that transaction, notwithstanding any subsequent change in the respective Issuer’s prevailing charges for that type of transaction.  Upon and after the occurrence of an Event of Default under Section 8.1(a), 8.1(f) or (g), and during the continuation thereof, the Letter of Credit Fees described in clause (x) of this Section 2.24(a) shall be increased by an additional two percent (2.00%) per annum.
(b)    At any time following the occurrence of an Event of Default, at the option of the Applicable Agent or at the direction of Requisite Lenders (or, in the case of any Event of Default under Section 8.1(f) or (g), immediately and automatically upon the occurrence of such Event of Default, without the requirement of any affirmative action by any party), or on the Revolving Commitment Termination Date or any other termination of this Agreement or the Revolving Commitments, (i) the US Borrowers will cause cash to be deposited and maintained in an account with the Administrative Agent, as cash collateral, in an amount equal to one hundred and five percent (105%) of the Maximum Undrawn Amount of all outstanding US Letters of Credit, (ii) the Canadian Borrowers will cause cash to be deposited and maintained in an account with the Administrative Agent as cash collateral, in an amount equal to one hundred and five percent (105%) of the Maximum Undrawn Amount of all outstanding Canadian Letters of Credit and (iii) the European Borrowers will cause cash to be deposited and maintained in an account with the European Administrative Agent as cash collateral, in an amount equal to one hundred and five percent (105%) of the 

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Maximum Undrawn Amount of all outstanding European Letters of Credit, and each Borrower hereby irrevocably authorizes the Applicable Agent, in its sole discretion, on such Borrower’s behalf and in such Borrower’s name, to open such an account and to make and maintain deposits therein, or in an account opened by such Borrower, in the amounts required to be made by such Borrower, out of the proceeds of such Borrower’s Receivables or other Collateral or out of any other funds of such Borrower coming into any Lender’s possession at any time in accordance with the terms of this Agreement.  The Applicable Agent may, in its discretion, invest such cash collateral (less applicable reserves) in such short-term money-market items as to which the Applicable Agent and the Applicable Lead Borrower mutually agree (or, in the absence of such agreement, as the Applicable Agent may reasonably select) and the net return on such investments shall be credited to such account and constitute additional cash collateral, or the Applicable Agent may (notwithstanding the foregoing) establish the account provided for under this Section 2.24(b) as a non-interest bearing account and in such case the Applicable Agent shall have no obligation (and the Borrowers hereby waive any claim) under Article 9 of the UCC or under any other Requirement of Law to pay interest on such cash collateral being held by the Applicable Agent. No Borrower may withdraw amounts credited to any such account except upon the occurrence of all of the following: (x) payment and performance in full of all US Obligations, Canadian Obligations or European Obligations, as applicable; (y) expiration of all US Letters of Credit,  Canadian Letters of Credit or European Letters of Credit, as applicable; and (z) termination of this Agreement.  The (i) US Borrowers and Canadian Borrowers hereby assign, pledge and grant to the Administrative Agent for its benefit and the ratable benefit of each Issuer, each Swing Loan Lender, the Lenders and each other Secured Party, a continuing security interest in and to and Lien on any such cash collateral and any right, title and interest of such Borrowers in any deposit account, securities account or investment account into which such cash collateral may be deposited from time to time to secure the US Obligations or Canadian Obligations, as applicable, specifically including all Obligations with respect to any US Letters of Credit and Canadian Letters of Credit and (ii) European Borrowers hereby assign, pledge and grant to the European Administrative Agent for its benefit and the ratable benefit of each Issuer, each Swing Loan Lender, the Lenders and each other Secured Party, a continuing security interest in and to and Lien on any such cash collateral and any right, title and interest of such Borrowers in any deposit account, securities account or investment account into which such cash collateral may be deposited from time to time to secure the European Obligations, specifically including all Obligations with respect to any European Letters of Credit. The Borrowers agree that upon the coming due of any Reimbursement Obligations (or any other Obligations, including Obligations for Letter of Credit Fees) with respect to the Letters of Credit, the Applicable Agent may use such cash collateral to pay and satisfy such Obligations.
2.25    Unused Line Fee.  The (x) US Borrowers shall pay to the Administrative Agent, for the pro rata benefit of the Lenders (other than any Defaulting Lender), a fee equal to the Unused Line Fee Rate multiplied by the amount by which the Maximum Domestic Credit exceeds the sum of the Dollar Equivalent of the average principal balance of the outstanding Revolving Advances under the Domestic Facility (for purposes of this computation, US Swing Loans and Canadian Swing Loans shall be deemed to be Revolving Advances made by PNC Bank, National Association as a Lender) and Letter of Credit Obligations under the Domestic Facility during the immediately preceding Fiscal Quarter (or part thereof) while this Agreement is in effect and for so long thereafter as any of the Obligations are outstanding and (y) European Borrowers shall pay to the European Administrative Agent, for the pro rata benefit of the Lenders (other than any Defaulting Lender), a fee equal to the Unused Line Fee Rate multiplied by the amount by which the Maximum European Credit exceeds the sum of the Dollar Equivalent of the average principal balance of the outstanding Revolving Advances under the European Facility (for purposes of this computation, European Swing Loans shall be deemed to be Revolving Advances made by JPMorgan Chase Bank, N.A. as a Lender) and Letter of Credit Obligations under the European Facility during the immediately preceding Fiscal Quarter (or part thereof) while this Agreement is in effect and for so long thereafter as any of the Obligations are outstanding (such fee, in each case, the “Unused Line Fee”).  Such 

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fee shall be, in each case, calculated based on the actual number of days elapsed over a 360-day year (and with respect to Sterling amounts on the actual number of days elapsed over a 365-day year) and payable quarterly in arrears, on the first day of each Fiscal Quarter and on the Revolving Commitment Termination Date (or any earlier termination of this Agreement or the Revolving Commitments). 
2.26    Computation of Interest and Fees.
(a)    Interest and fees hereunder (i) with respect to Canadian Prime Rate Loans, US Base Rate Loans, BA Rate Loans and LIBOR Rate Loans denominated in Sterling shall be computed on the basis of a 365 day (or 366 day, as applicable) year for the actual number of days elapsed, and (ii) with respect to all other Advances and all fees (other than as provided in Section 2.24(a)), interest and all other amounts chargeable under this Agreement or the other Credit Documents shall be computed on the basis of a 360 day year for the actual number of days elapsed.  If any payment to be made hereunder becomes due and payable on a day other than a Business Day, the due date thereof shall be extended to the next succeeding Business Day and interest thereon shall be payable at the Revolving Interest Rate for Base Rate Loans (or Revolving Interest Rate for Overnight LIBOR Rate Loans with respect to the European Facility) during such extension.
(b)    For purposes of the Interest Act (Canada): (i) whenever any interest or fee under this Agreement is calculated on the basis of a period of time other than a calendar year, such rate used in such calculation, when expressed as an annual rate, is equivalent to (x) such rate, multiplied by (y) the actual number of days in the calendar year in which the period for which such interest or fee is calculated ends, and divided by (z) the number of days in such period of time; (ii) the principle of deemed reinvestment of interest shall not apply to any interest calculation under this Agreement; and (iii) the rates of interest stipulated in this Agreement are intended to be nominal rates and not effective rates or yields.
2.27    Basis for Determining Interest Rate Inadequate or Unfair.  In the event that any Agent or any Lender shall have determined that:
(a)    reasonable means do not exist for ascertaining the LIBOR Rate or CDOR Rate applicable pursuant to Section 2.2 for any Interest Period; or
(b)    deposits in the relevant currency and amount and for the relevant maturity are not available in the London interbank LIBOR market, with respect to an outstanding LIBOR Rate Loan, a proposed LIBOR Rate Loan, or a proposed conversion of a Base Rate Loan into a LIBOR Rate Loan; or
(c)    the making, maintenance or funding of any Fixed Rate Loan has been made impracticable or unlawful by compliance by such Agent or such Lender in good faith with any Requirement of Law or any interpretation or application thereof by any Governmental Authority or with any request or directive of any such Governmental Authority (whether or not having the force of law),
then the Applicable Agent shall give the Lead Borrower prompt written or telephonic notice of such determination. If such notice is given, (i) any such (y) requested Fixed Rate Loan under the Domestic Facility shall be made as a Base Rate Loan (plus, for the purpose of calculating interest on such Base Rate Loans, the Applicable Margin for Base Rate Loans), unless the Lead Borrower shall notify the Administrative Agent no later than 10:00 a.m. Local Time two (2) Business Days prior to the date of such proposed borrowing, that its request for such borrowing shall be cancelled or made as an unaffected type of Fixed Rate Loan, if any and (z) requested Fixed Rate Loan under the European Facility shall be made as a Revolving Advance at a rate determined by the European Administrative Agent which expresses a percentage rate per annum equal to the Lenders’ or applicable Lender’s (as applicable) cost of funding its or their participation in such Revolving Advance (plus, for the purpose of calculating interest on such 

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Advance, the Applicable Margin for LIBOR Rate Loans) (in each case, a “Cost of Funds Loan”), unless the European Lead Borrower shall notify the European Administrative Agent no later than 10:00 a.m., Local Time, two (2) Business Days prior to the date of such proposed borrowing, that its request for such borrowing shall be cancelled or made as an unaffected type of Fixed Rate Loan, if any, (ii) any Base Rate Loan or Fixed Rate Loan which was to have been converted to an affected type of Fixed Rate Loan shall be continued as or converted into a Base Rate Loan (or a Cost of Funds Loan under the European Facility), or, if the Applicable Lead Borrower shall notify the Applicable Agent, no later than 10:00 a.m. Local Time two (2) Business Days prior to the proposed conversion, shall be maintained as an unaffected type of Fixed Rate Loan, if any, and (iii) any outstanding affected Fixed Rate Loans shall be converted into a Base Rate Loan (or a Cost of Funds Loan under the European Facility), or, if the Applicable Lead Borrower shall notify the Applicable Agent, no later than 10:00 a.m. Local Time two (2) Business Days prior to the last Business Day of the then current Interest Period applicable to such affected Fixed Rate Loan, shall be converted into an unaffected type of Fixed Rate Loan, if any, on the last Business Day of the then current Interest Period for such affected Fixed Rate Loans (or sooner, if any Lender cannot continue to lawfully maintain such affected Fixed Rate Loan).  Until such notice has been withdrawn, the Lenders shall have no obligation to make an affected type of Fixed Rate Loan or maintain outstanding affected Fixed Rate Loans and no Borrower shall have the right to convert a Base Rate Loan or an unaffected type of Fixed Rate Loan into an affected type of Fixed Rate Loan.

2.28    Increased Costs; Capital Adequacy.
(a)    Compensation For Increased Costs and Taxes.  Subject to the provisions of Section 2.29 (which shall be controlling with respect to the matters covered thereby), in the event that any Lender or any Issuer shall determine (which determination shall, absent manifest error, be final and conclusive and binding upon all parties hereto) that any law, treaty or governmental rule, regulation or order, or any change therein or in the interpretation, administration or application thereof (including the introduction of any new law, treaty or governmental rule, regulation or order), or any determination of a court or Governmental Authority, in each case that becomes effective after the date hereof, or compliance by such Lender or such Issuer with any guideline, request or directive issued or made after the date hereof by any central bank or other Governmental or quasi-Governmental Authority (whether or not having the force of law) (each of the foregoing, a “Change in Law”): (i) subjects such Lender (or its applicable lending office) or such Issuer to any additional Tax (other than an Excluded Tax) with respect to this Agreement or any of the other Credit Documents or any of its obligations hereunder or thereunder or any payments to such Lender (or its applicable lending office) or such Issuer of principal, interest, fees or any other amount payable hereunder; (ii) imposes, modifies or holds applicable any reserve (including any marginal, emergency, supplemental, special or other reserve), special deposit, compulsory loan, FDIC insurance or similar requirement against assets held by, or deposits or other liabilities in or for the account of, or advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of such Lender or such Issuer (other than any such reserve or other requirements with respect to LIBOR Rate Loans); or (iii) imposes any other condition on or affecting such Lender (or its applicable lending office) or its obligations hereunder or the Relevant Interbank Market; and the result of any of the foregoing is to increase the cost to such Lender or such Issuer of agreeing to make, making, converting to, continuing or maintaining Advances or Letters of Credit hereunder or to reduce any amount received or receivable by such Lender (or its applicable lending office) with respect thereto; then, in any such case, the Borrowers shall promptly pay to such Lender or such Issuer, as applicable, upon receipt of the statement referred to in the next sentence, such additional amount or amounts (in the form of an increased rate of, or a different method of calculating, interest or otherwise as such Lender or such Issuer, as applicable, in its sole discretion shall determine) as may be necessary to compensate such Lender or such Issuer for any such increased cost or reduction in amounts received or receivable hereunder; provided, that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer 

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Protection Act or any European equivalent regulations (such as the European Market and Infrastructure Regulation and other regulations related thereto) and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.  Such Lender or such Issuer, as applicable, shall deliver to the Applicable Lead Borrower (with a copy to the Applicable Administrative Agent) a written statement, setting forth in reasonable detail the basis for calculating the additional amounts owed to such Lender or such Issuer under this Section 2.28(a), which statement shall be conclusive and binding upon all parties hereto absent manifest error.  The obligations of the Borrowers pursuant to this Section 2.28(a) and Section 2.28(b) shall survive the termination of this Agreement and the payment of all amounts hereunder.  For the avoidance of doubt, this Section 2.28(a) shall not apply to the extent that any loss, liability or cost is compensated for by an increased payment under Section 2.29(b) or to the extent that such loss, liability or cost is an Excluded Tax.
(b)    Capital Adequacy Adjustment.  In the event that any Lender or any Issuer shall have determined that the adoption, effectiveness, phase in or applicability after the Closing Date of any law, rule or regulation (or any provision thereof) regarding capital adequacy, or any change therein or in the interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by any Lender (or its applicable lending office) or any Issuer with any guideline, request or directive regarding capital adequacy (whether or not having the force of law) of any such Governmental Authority, central bank or comparable agency, has or would have the effect of reducing the rate of return on the capital of such Lender or such Issuer or any corporation controlling such Lender or such Issuer as a consequence of, or with reference to, such Lender’s Advances, or participations therein or in any Letter of Credit or other obligations hereunder with respect to the Revolving Commitments (or related Obligations) to a level below that which such Lender or such Issuer or such controlling corporation could have achieved but for such adoption, effectiveness, phase in, applicability, change or compliance (taking into consideration the policies of such Lender or such Issuer or such controlling corporation with regard to capital adequacy), then from time to time, within five (5) Business Days after receipt by the Applicable Lead Borrower from such Lender or such Issuer of the statement referred to in the next sentence, the Borrowers shall pay to such Lender or such Issuer such additional amount or amounts as will compensate such Lender or such Issuer or such controlling corporation on an after tax basis for such reduction.  Such Lender or such Issuer, as applicable, shall deliver to the Applicable Lead Borrower (with a copy to the Administrative Agent) a written statement, setting forth in reasonable detail the basis for calculating the additional amounts owed to such Lender or such Issuer under this Section 2.28(b), which statement shall be conclusive and binding upon all parties hereto absent manifest error.
2.29    Taxes; Withholding, etc. 
(a)    Payments to Be Free and Clear.  All sums payable by any Credit Party or any other Person hereunder and under the other Credit Documents shall (except to the extent required by law) be paid free and clear of, and without any deduction or withholding on account of, any Tax (other than any Excluded Taxes) imposed, levied, collected, withheld or assessed by any Governmental Authority or by any federation or organization of which such Governmental Authority is a member at the time of payment (such Taxes, “Indemnified Taxes”).
(b)    Withholding of Taxes.  If any Credit Party or any other Person is required by law to make any deduction or withholding on account of any Tax from any sum paid or payable by any Credit Party or any other Person to any Agent, any Issuer or any Lender under any of the Credit Documents: (i) the 

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Applicable Lead Borrower shall notify the Applicable Agent of any such requirement or any change in any such requirement as soon as the Applicable Lead Borrower becomes aware of it; (ii) the Borrowers shall pay to the appropriate taxing or other authority any such Tax before the date on which penalties attach thereto and such payment shall be made (if the liability to pay is imposed on any Credit Party) for its own account or (if that liability is imposed on such Agent, such Issuer or such Lender, as the case may be) on behalf of and in the name of such Agent, such Issuer or such Lender; (iii) subject to Section 2.29(c), the sum payable by such Credit Party or Person in respect of which the relevant deduction, withholding or payment is required shall be increased to the extent necessary to ensure that, after the making of that deduction, withholding or payment, (including deductions, withholdings or payments applicable to additional sums payable under this Section 2.29(b)) such Agent, such Issuer or such Lender, as the case may be, receives on the date due a net sum equal to what it would have received had no such deduction, withholding or payment been required or made in respect of Indemnified Taxes; and (iv) within thirty (30) days after paying any sum from which it is required by law to make any deduction or withholding, and within thirty (30) days after the due date of payment of any Tax which it is required by clause (ii) above to pay, each applicable Credit Party shall deliver to the Applicable Agent evidence satisfactory to the Applicable Agent of such deduction, withholding or payment and of the remittance thereof to the relevant taxing or other Governmental Authority.  Each Credit Party shall indemnify each Agent, each Issuer and each Lender, within ten (10) days after written demand therefor, which demand shall identify in reasonable detail the nature and amount of such Indemnified Taxes (and provide such other evidence thereof as has been received by such Agent, such Issuer or such Lender, as the case may be), for the full amount of any Indemnified Taxes paid by such Agent, such Issuer or such Lender, as the case may be, on or with respect to any payment by or on account of any obligation of such Credit Party hereunder and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to a Credit Party by a Lender, by an Issuer or by an Agent on its own behalf or on behalf of a Lender or an Issuer, as applicable, shall be conclusive absent manifest error.
(c)    Withholding Tax Documentation and Other Information.  (I) Each Lender, each Issuer or the Applicable Agent shall deliver to the Lead Borrower and to the Applicable Agent, whenever reasonably requested in writing by the Lead Borrower or the Applicable Agent, such properly completed and duly executed documentation prescribed by applicable Laws and such other reasonably requested information as will permit the Lead Borrower or the Applicable Agent, as the case may be, (A) to determine whether or not payments made hereunder or under any other Credit Document are subject to deduction, withholding, or backup withholding of United States federal income tax or Canadian withholding tax, (B) to determine, if applicable, the required rate of withholding or deduction and (C) to establish the entitlement of such Lender, such Issuer or the Applicable Agent to any available exemption from, or reduction of, applicable Taxes in respect of any payments to be made to such Lender, such Issuer or the Applicable Agent pursuant to any Credit Document or otherwise to establish the status of such Lender, such Issuer or the Applicable Agent for withholding tax purposes in an applicable jurisdiction.  Without limiting the generality of the foregoing, each Lender and each Issuer that is not a “United States person” (as such term is defined in section 7701(a)(30) of the Code) for U.S. federal income tax purposes (a “Non-US Lender”) shall deliver to the Administrative Agent for transmission to the Lead Borrower, on or prior to the Closing Date (in the case of each Lender and each Issuer listed on the signature pages hereof on the Closing Date) or on or prior to the date of the Commitment Transfer Supplement pursuant to which it becomes a Lender or an Issuer (in the case of each other Lender or other Issuer), and at such other times as may be necessary in the determination of the Lead Borrower or the Administrative Agent (each in the reasonable exercise of its discretion), (i) two original copies of Internal Revenue Service Form W-8BEN or W-8ECI (or any successor forms), properly completed and duly executed by such Lender or such Issuer, and such other documentation required under the Code and reasonably requested by the Lead Borrower to establish that such Lender or such Issuer is 

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qualified for an exemption from or reduction in United States federal withholding tax with respect to any payments to such Lender or such Issuer of principal, interest, fees or other amounts payable under any of the Credit Documents, or (ii) if such Lender or such Issuer is not a “bank” or other Person described in section 881(c)(3) of the Code and cannot deliver Internal Revenue Service Form W-8ECI pursuant to clause (i) above, two original copies of a Certificate re Non-Bank Status together with two original copies of Internal Revenue Service Form W-8BEN (or any successor form), properly completed and duly executed by such Lender or such Issuer, and such other documentation required under the Code and reasonably requested by the Lead Borrower to establish that such Lender or such Issuer is qualified for an exemption from or reduction in United States federal withholding tax with respect to any payments to such Lender or such Issuer of principal, interest, fees or other amounts payable under any of the Credit Documents.  Each Lender and each Issuer that is a “United States person” (as such term is defined in section 7701(a)(30) of the Code) for U.S. federal income tax purposes (a “US Lender”) and is listed on the signature pages hereof on the Closing Date shall deliver to the Administrative Agent for transmission to the Lead Borrower, on or prior to the Closing Date, two original copies of Internal Revenue Service Form W-9, and each other US Lender (other than US Lenders described in Treasury Regulations section 1.6049-4(c)(1)(ii)(A)(1)) shall deliver to the Administrative Agent for transmission to the Lead Borrower, on or prior to the date of the Commitment Transfer Supplement pursuant to which it becomes a Lender or an Issuer, two original copies of Internal Revenue Service Form W-9.  Each US Lender shall deliver to the Administrative Agent for transmission to the Lead Borrower, at such times as may be necessary in the determination of the Lead Borrower or the Administrative Agent (each in the reasonable exercise of its discretion), such other form or forms, certificates or documentation, including two original copies of Internal Revenue Service Form W-9, as reasonably requested by the Administrative Agent or the Lead Borrower in writing to confirm or establish that such Lender is not subject to deduction, withholding, or backup withholding of United States federal income tax with respect to any payments to such Lender or such Issuer of principal, interest, fees or other amounts payable under any of the Credit Documents.  Each Lender and each Issuer required to deliver any forms, certificates or other evidence with respect to United States federal income tax withholding matters pursuant to this Section 2.29(c) hereby agrees, from time to time after the initial delivery by such Lender or such Issuer of such forms, certificates or other evidence, whenever a (i) lapse in time or (ii) change in circumstances renders such forms, certificates or other evidence obsolete or inaccurate in any material respect, that, in the case of (i), only upon the reasonable written request of the Lead Borrower or the Administrative Agent, and in the case of (ii), upon the occurrence of such change in circumstances, such Lender or such Issuer, as the case may be, shall promptly deliver to the Administrative Agent for transmission to the Lead Borrower two new original copies of Internal Revenue Service Form W-8BEN or W-8ECI, or two original copies of a Certificate re Non-Bank Status and two original copies of Internal Revenue Service Form W-8BEN (or any successor form), or two new original copies of Internal Revenue Service Form W-9, as the case may be, properly completed and duly executed by such Lender or such Issuer, and such other documentation required under the Code and reasonably requested by the Lead Borrower in writing to confirm or establish that such Lender or such Issuer qualifies for an exemption from or reduction in United States federal withholding tax with respect to payments to such Lender or such Issuer under the Credit Documents, or notify the Administrative Agent and the Lead Borrower of its inability to deliver any such forms, certificates or other evidence.  Notwithstanding anything to the contrary in this Section 2.29(c), no Lender, Issuer or Administrative Agent shall be required to deliver any documentation that it is not legally eligible to deliver.
(II)    If a payment made to a Lender, as Issuer or the Administrative Agent under any Credit Document would be subject to U.S. federal withholding tax imposed by FATCA if such Lender, such Issuer or the Administrative Agent were to fail to comply with the applicable reporting requirements of FATCA, such Lender, such Issuer or the Administrative Agent shall deliver to the Lead Borrower and the Administrative Agent at the time or times prescribed by applicable law and at such time or times reasonably requested by the Lead Borrower or the Administrative Agent such 

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documentation prescribed by applicable law and such additional documentation reasonably requested by the Lead Borrower or the Administrative Agent as may be necessary for the Lead Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine whether such Lender, such Issuer or the Administrative Agent has or has not complied with such Lender’s, such Issuer’s or the Administrative Agent’s obligations under FATCA and, if necessary, to determine the amount to deduct and withhold from such payment.  Solely for purposes of this Section 2.29(c)(II), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.
(d)    Certain Documents.  If any Tax was not correctly or legally asserted, the relevant Lender(s) or Issuer(s) shall, upon any Credit Party’s reasonable request and at the expense of such Credit Party, provide such documents to the Credit Party to enable the Credit Party to contest such Tax pursuant to appropriate proceedings then available to the relevant Lender(s) or Issuer(s) (so long as providing such documents shall not, in the good faith determination of the relevant Lender(s) or Issuer(s) result in any liability to the relevant Lender(s) or Issuer(s) and doing so is otherwise permitted under applicable law as determined by the relevant Lender(s) or Issuer(s)).
(e)    Withholdings for Certain Taxes.  The provisions of Sections 2.29(a), (b), (c) and (d) shall, in addition to all other deductions and withholdings on account of any Taxes, also apply to deductions and withholdings that are to be made by a Credit Party with respect to any sums payable under the Credit Documents that constitute deemed distributions by a Credit Party.  As among the Credit Parties on the one hand and the Agents, the Issuers and the Lenders on the other hand, the Credit Parties shall be responsible for, and effect, the payment of these deductions and withholdings and indemnify the Agents, the Issuers and the Lenders against any sums paid or damages incurred as a result of being required to make the respective payments; Section 2.29(b) shall in such event apply, mutatis mutandis.
2.30    Obligation to Mitigate.  Each Lender and each Issuer agrees that, as promptly as practicable after the officer of such Lender or Issuer, as applicable, responsible for administering its Revolving Commitments becomes aware of the occurrence of an event or the existence of a condition that would cause such Lender or Issuer to become an Affected Lender or that would entitle such Lender or Issuer to receive payments under Sections 2.27, 2.28 or 2.29, it will, to the extent not inconsistent with the internal policies of such Lender or Issuer and any applicable legal or regulatory restrictions, use reasonable efforts to (a) make, issue, fund, maintain or participate in its Advances or Letters of Credit through another office of such Lender or  Issuer, as applicable, or (b) take such other measures as such Lender or Issuer may deem reasonable, if as a result thereof the circumstances which would cause such Lender or Issuer to be an Affected Lender would cease to exist or the additional amounts which would otherwise be required to be paid to such Lender or Issuer pursuant to Section 2.27, 2.28 or 2.29 would be materially reduced and if, as determined by such Lender or Issuer in its sole discretion, the making, issuing, funding, maintaining of or participation in, such Advances or Letters of Credit through such other office or in accordance with such other measures, as the case may be, would not otherwise adversely affect such Advances, such Letters of Credit or the interests of such Lender or Issuer; provided, such Lender or Issuer will not be obligated to utilize such other office pursuant to this Section 2.30 unless the Applicable Lead Borrower agrees to pay all incremental expenses incurred by such Lender or Issuer as a result of utilizing such other office as described in clause (a) above.  A certificate as to the amount of any such expenses payable by the Applicable Lead Borrower pursuant to this Section 2.30 (setting forth in reasonable detail the basis for requesting such amount) submitted by such Lender or Issuer, as applicable, to the Applicable Lead Borrower (with a copy to the Applicable Agent) shall be conclusive absent manifest error.

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2.31    Tax Refund.  If a Credit Party pays any additional amount under Section 2.29(b) and the relevant Lender (or the relevant Agent, as the case may be) determines in its sole discretion that it has received a refund of any Taxes as to which it has been indemnified pursuant to Section 2.29(b), to the extent that it can do so without prejudice to the retention of such refund, pay such amount, net of all reasonable out-of-pocket expenses of such Lender (or such Agent, as the case may be) to the Credit Party; provided, however, that such Credit Party, upon the request of such Lender or Agent, agrees to repay the amount paid over to such Credit Party to such Lender or Agent (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) within fifteen (15) days of such Lender’s or such Agent’s request in the event that such Lender or such Agent is required, pursuant to a request from the relevant Governmental Authority, to repay that refund.  Nothing herein contained shall interfere with the right of any Lender (or any Agent, as the case may be) to arrange its affairs in whatever manner it thinks fit and, in particular, no Lender (or Agent, as the case may be) shall be under any obligation to claim a refund or to disclose or make available its tax returns or other details of its affairs.  Any amount to be paid by a Lender pursuant to this Section 2.31 shall be made promptly on the date of receipt of the relevant refund by such Lender (or the Applicable Agent, as the case may be).
2.32    Removal or Replacement of a Lender.  If any Lender (an “Affected Lender”) (a) makes demand upon the Borrowers for (or if the Borrowers are otherwise required to pay) amounts pursuant to Sections 2.27, 2.28 or 2.29, (b) is a Defaulting Lender, or (c) denies any consent requested by the Administrative Agent pursuant to Section 10.5 for which the consent of all Lenders (or all affected Lenders) is required, the Lead Borrower may, within twenty (20) days of receipt of such demand, notice (or the occurrence of such other event causing the Borrowers to be required to pay such compensation or causing Section 2.27 to be applicable), or such Lender becoming a Defaulting Lender or denial of a request by the Administrative Agent pursuant to Section 10.5, as the case may be, by notice (a “Replacement Notice”) in writing to the Administrative Agent and such Affected Lender (i) request the Affected Lender to cooperate with the Lead Borrower in obtaining a replacement Lender satisfactory to the Administrative Agent and the Lead Borrower (the “Replacement Lender”); (ii) request the non-Affected Lenders to acquire and assume all of the Affected Lender’s Advances and its Revolving Commitment Percentage, as provided herein, but none of such Lenders shall be under any obligation to do so; or (iii) propose a Replacement Lender subject to approval by the Administrative Agent (not to be unreasonably withheld). If any satisfactory Replacement Lender shall be obtained pursuant to the foregoing clause (iii), and/or if any one or more of the non-Affected Lenders shall agree to acquire and assume all of the Affected Lender’s Advances and its Revolving Commitment Percentage, then such Affected Lender shall assign, in accordance with Section 10.6, all of its Advances and its Revolving Commitment Percentage, and other rights and obligations under this Agreement and the other Credit Documents to such Replacement Lender or non-Affected Lenders, as the case may be, in exchange for payment of the principal amount so assigned and all interest and fees accrued on the amount so assigned, plus all other Obligations then due and payable to the Affected Lender.
2.33    Currency Indemnity.  If, for the purposes of obtaining judgment in any court in any jurisdiction with respect to this Agreement or any other Credit Document, it becomes necessary to convert into a particular currency (the “Judgment Currency”) any amount due under this Agreement or under any other Credit Document in any currency other than the Judgment Currency (the “Currency Due”), then conversion shall be made at the rate of exchange prevailing on the Business Day before the day on which judgment is given.  For this purpose “rate of exchange” means the rate at which the Applicable Agent is able, on the relevant date, to purchase the Currency Due with the Judgment Currency in accordance with its normal practices.  In the event that there is a change in the rate of exchange prevailing between the Business Day before the day on which the judgment is given and the date of receipt by the Applicable Agent of the amount due, the Borrowers will, on the date of receipt by the Applicable Agent, pay such additional amounts, if any, or be entitled to receive reimbursement of such amount, if any, as may be necessary to ensure that the amount 

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received by the Applicable Agent on such date is the amount in the Judgment Currency which when converted at the rate of exchange prevailing on the date of receipt by the Applicable Agent is the amount then due under this Agreement or such other Credit Document in the Currency Due.  If the amount of the Currency Due which the Applicable Agent is so able to purchase is less than the amount of the Currency Due originally due to it, the Borrowers shall indemnify and save the Applicable Agent and the Lenders harmless from and against all loss or damage arising as a result of such deficiency.  This indemnity shall constitute an obligation separate and independent from the other obligations contained in this Agreement and the other Credit Documents, shall give rise to a separate and independent cause of action, shall apply irrespective of any indulgence granted by Applicable Agent or the Lenders from time to time and shall continue in full force and effect notwithstanding any judgment or order for a liquidated sum in respect of an amount due under this Agreement or any other Credit Document or under any judgment or order.
2.34    Protective Advances.
(a)    Subject to the limitations set forth below, Administrative Agent (with respect to the Domestic Facility) and European Administrative Agent (with respect to the European Facility) are each  authorized by the Borrowers and the Lenders, from time to time in the Applicable Agent’s sole discretion (but neither Applicable Agent shall have any obligation to), to make Advances to the Borrowers, on behalf of all Lenders, which the Applicable Agent, in its Permitted Discretion, deems necessary or desirable, in connection with the Domestic Facility or European Facility, as applicable, (i) to preserve or protect the Collateral, or any portion thereof, (ii) to enhance the likelihood of, or maximize the amount of, repayment of the Advances and other Obligations, or (iii) to pay any other amount chargeable to or required to be paid by the Borrowers pursuant to the terms of this Agreement, including payments of reimbursable expenses (including costs, fees, and expenses as described in Section 10.2) and other sums payable under the Credit Documents (any of such Advances are herein referred to as “Protective Advances”); provided that, the aggregate amount of Protective Advances outstanding at any time shall not at any time exceed 10% of the Maximum Domestic Credit in respect of Protective Advances by the Administrative Agent in connection with the Domestic Facility and 10% of the Maximum European Credit in respect of Protective Advances by the European Administrative Agent in connection with the European Facility; provided further that after giving effect to any such Protective Advances, (i) the Aggregate Domestic Exposure at such time shall not exceed the Maximum Domestic Credit at such time, (ii) the Aggregate Canadian Exposure at such time shall not exceed the Canadian Revolving Loan Maximum Amount at such time, (iii) the Aggregate European Exposure at such time shall not exceed the Maximum European Credit at such time and (iv) the Aggregate Exposure at such time shall not exceed the Maximum Credit at such time. Protective Advances may be made even if the conditions precedent set forth in Section 3.2 have not been satisfied.  The Protective Advances shall be secured by the Liens in favor of the applicable Agent in and to the Collateral and shall constitute Obligations hereunder. Each Applicable Agent’s authorization to make Protective Advances may be revoked at any time by the Required Lenders.  Any such revocation must be in writing and shall become effective prospectively upon the Applicable Agent’s receipt thereof.  At any time that there is sufficient borrowing availability and the conditions precedent set forth in Section 3.2 have been satisfied, each Applicable Agent may request the Lenders to make an Advance to repay a Protective Advance.  At any other time each Applicable Agent may require the Lenders to fund their risk participations described in Section 2.34(b).
(b)    Upon the making of a Protective Advance by either Applicable Agent (whether before or after the occurrence of a Default), each Lender shall be deemed, without further action by any party hereto, to have unconditionally and irrevocably purchased from such Applicable Agent, without recourse or warranty, an undivided interest and participation in such Protective Advance in proportion to its Revolving Commitment Percentage.  From and after the date, if any, on which any Lender is required to fund its participation in any Protective Advance purchased hereunder, the Applicable Agent shall promptly 

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distribute to such Lender, such Lender's pro rata portion of all payments of principal and interest and all proceeds of Collateral received by such Applicable Agent in respect of such Protective Advance.
SECTION 3.    CONDITIONS PRECEDENT
3.1    Conditions to Closing Date.  The obligation of each Lender, each Issuer and each Swing Loan Lender to make Credit Extensions hereunder on the Closing Date is, in addition to the conditions specified in Sections 3.2, subject at the time of or concurrent with the making of such Credit Extensions, the satisfaction, or waiver in accordance with Section 10.5, of the following conditions:
(a)    Credit Documents. The Agents shall have received sufficient copies of each Credit Document to be executed by the appropriate Credit Party on the Closing Date (including, without limitation, any amendments, supplements, reaffirmations or other modifications requested by Administrative Agent or the European Administrative Agent to any such Credit Document in existence prior to the Closing Date), including, without limitation, the Intercreditor Agreement) and delivered by each applicable Credit Party for each Lender (which may be delivered by facsimile or other electronic means for the purposes of satisfying this Section 3.1(a) on the Closing Date, with signed originals to be delivered promptly thereafter) and such Credit Documents shall be in form and substance satisfactory to the Borrowers and their counsel and the Agents and their counsel. The European Administrative Agent shall have further received such other closing documents as are customary or that it may reasonably request, all in form and substance satisfactory to the European Administrative Agent and its counsel.
(b)    Organizational Documents; Incumbency.  The Agents shall have received, in form and substance satisfactory to the Applicable Agent: (i) a copy of each Organizational Document of each Credit Party, as applicable, and, to the extent applicable, certified as of a recent date by the appropriate governmental official, each dated the Closing Date or a recent date prior thereto; (ii) signature and incumbency certificates of the officers of such Credit Party executing the Credit Documents to which it is a party; (iii) resolutions of the board of directors or similar governing body or shareholder resolutions of each Credit Party approving and authorizing the execution, delivery and performance of this Agreement and the other Credit Documents to which it is a party or by which it or its assets may be bound as of the Closing Date, certified as of the Closing Date by its secretary, an assistant secretary, or other Authorized Officer as being in full force and effect without modification or amendment; and (iv) a good standing certificate from the applicable Governmental Authority of each Credit Party’s jurisdiction of incorporation, organization or formation, each dated a recent date prior to the Closing Date, if applicable. 
(c)    Closing Date Certificate.  The Administrative Agent shall have received a Closing Date Certificate, dated the Closing Date and signed by an Authorized Officer of the Lead Borrower.
(d)    No Liabilities.  Neither the Lead Borrower nor any of its Subsidiaries has any contingent liability or liability for taxes, long term lease or unusual forward or long term commitment that is not reflected in the audited financial statements delivered pursuant to Section 3.1(f) for Fiscal Year 2012 or the notes thereto and which in any such case is material in relation to the business, operations, properties, assets, condition (financial or otherwise) or prospects of the Lead Borrower and its Subsidiaries taken as a whole.
(e)    Financial Statements.  The Lenders shall have received from the Lead Borrower (i) the audited consolidated balance sheets of the Lead Borrower and its Subsidiaries as of December 31, 2012 for the Fiscal Year then ended and the related consolidated statements of income, stockholders’ equity and cash flows of the Lead Borrower and its Subsidiaries for such Fiscal Year, together with a report thereon of Ernst & Young LLP, which financial statements and report shall be in form and substance reasonably 

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satisfactory to the Agents and (ii) the unaudited consolidated balance sheets of the Lead Borrower and its Subsidiaries as of September 30, 2013 for the Fiscal Quarter then ended and the related consolidated statements of income, stockholders’ equity and cash flows of the Lead Borrower and its Subsidiaries for such Fiscal Quarter.
(f)    Governmental Authorizations and Consents.  Each Credit Party shall have obtained all material necessary Governmental Authorizations and all consents of other Persons, in each case that are necessary in connection with the transactions contemplated by the Credit Documents and each of the foregoing shall be in full force and effect and in form and substance reasonably satisfactory to the Agents.  All applicable waiting periods shall have expired without any action being taken or threatened by any competent authority which would restrain, prevent or otherwise impose adverse conditions on the transactions contemplated by the Credit Documents and no action, request for stay, petition for review or rehearing, reconsideration, or appeal with respect to any of the foregoing shall be pending, and the time for any applicable agency to take action to set aside its consent on its own motion shall have expired. 
(g)    Solvency Certificate.  On the Closing Date, the (i) Administrative Agent shall have received a Solvency Certificate from the Lead Borrower dated the Closing Date and addressed to the Agents and the Lenders, and (ii) European Administrative Agent shall have received a Solvency Certificate from each European Borrower dated the Closing Date and addressed to the Agents and the Lenders.
(h)    Personal Property Collateral.  In order to create in favor of the Collateral Agent or the European Collateral Agent, as applicable, for the benefit of the Secured Parties, a valid, perfected security interest in the personal property Collateral, the Collateral Agent or the European Collateral Agent, as applicable, shall have received:
(i)    evidence reasonably satisfactory to the Collateral Agent or the European Collateral Agent, as applicable, of the compliance by each Credit Party of their obligations under the Security Agreements and the other Collateral Documents (including their obligations to execute and deliver UCC financing statements, PPSA financing statements (or equivalent filings), other securities, instruments and chattel paper and any agreements or notifications governing deposit and/or securities accounts as provided therein);
(ii)    (A) the originals of certificates representing the shares of Capital Stock pledged pursuant to the Security Agreements and the other Collateral Documents, together with an original of an undated stock power for each such certificate executed in blank by a duly Authorized Officer of the pledgor thereof (if and to the extent permitted by the applicable Requirements of Law and subject to the provisions of the relevant Collateral Document); provided, that no pledge of Capital Stock by the European Credit Parties shall be included in the European Collateral, and (B) originals of each promissory note (if any) pledged to the Collateral Agent or the European Collateral Agent, as applicable, pursuant to the Security Agreements and the other Collateral Documents endorsed in blank (or, if and to the extent permitted by the applicable law and subject to the provisions of the relevant Collateral Document, accompanied by an executed transfer form in blank) by the pledgor thereof;
(iii)     with respect to the European Credit Parties, a completed Collateral Questionnaire dated the Closing Date and executed by an Authorized Officer of the Lead Borrower, together with all attachments contemplated thereby;

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(iv)    (A) the results of a recent search, by a Person satisfactory to the Collateral Agent or the European Collateral Agent, as applicable, of all effective UCC and PPSA financing statements (or equivalent filings) made with respect to any personal, real or mixed property of any Credit Party (except for the German Credit Parties) in the jurisdictions specified in the Collateral Questionnaire, together with copies of all such filings disclosed by such search, and (B) UCC and PPSA termination statements (or similar documents) duly executed by all applicable Persons for filing in all applicable jurisdictions as may be necessary to terminate any effective UCC and PPSA financing statements (or equivalent filings) disclosed in such search (other than any such financing statements in respect of Permitted Liens); 
(v)    opinions of counsel (which counsel shall be reasonably satisfactory to the Applicable Agent) with respect to the creation and perfection of the security interests in favor of the Collateral Agent or European Collateral Agent, as applicable, in such Collateral and such other matters governed by the laws of each jurisdiction in which any Credit Party or any personal property Collateral is located as the Collateral Agent or European Collateral Agent, as applicable, may reasonably request, in each case in form and substance reasonably satisfactory to the Collateral Agent or European Collateral Agent, as applicable,; and
(vi)    evidence that each Credit Party shall have taken or caused to be taken any other action, executed and delivered or caused to be executed and delivered any other agreement, document, notice and instrument (including without limitation, any intercompany notes evidencing Indebtedness permitted to be incurred pursuant to Section 6.1(b)) and made or caused to be made any other filing and recording (other than as set forth herein) reasonably required by the Collateral Agent or European Collateral Agent, as applicable.
(i)    Insurance.  The (y) Collateral Agent shall have received a certificate from the Domestic Credit Parties’ insurance broker or other evidence satisfactory to it that all insurance required to be maintained pursuant to Section 5.5 is in full force and effect, together with endorsements naming the Collateral Agent, for the benefit of the Secured Parties, as additional insured and naming the Collateral Agent, on behalf of the Secured Parties as lender loss payee thereunder to the extent required under Section 5.5, and (z) European Collateral Agent shall have received a certificate from the European Credit Parties’ insurance broker or other evidence satisfactory to it that all insurance required to be maintained pursuant to Section 5.5 is in full force and effect, together with endorsements naming the European Collateral Agent, for the benefit of the Secured Parties, as additional insured and naming the European Collateral Agent, on behalf of the Secured Parties as lender loss payee thereunder to the extent required under Section 5.5.
(j)    Opinions of Counsel to Credit Parties.  The (i) Administrative Agent and its counsel shall have received executed copies of the favorable written opinions of counsel (including, without limitation, New York and Canadian counsel) to the Domestic Credit Parties as to such matters as the Administrative Agent may reasonably request and (ii) European Administrative Agent and its counsel shall have received executed copies of the favorable written opinions of counsel to the European Credit Parties as to such matters as the European Administrative Agent may reasonably request, in each case dated as of the Closing Date, addressed to the Agents and Lenders and otherwise in form and substance reasonably satisfactory to the Administrative Agent and European Administrative Agent, as applicable.

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(k)    Fees and Expenses.  The Agents and the Lenders shall have received payment in full of all fees and expenses invoiced and due to the Agents (including the reasonable fees and expenses due of their advisors and legal counsel) in connection with this Agreement.
(l)    No Litigation.  There shall not exist any action, suit, investigation, litigation or proceeding or other legal or regulatory developments, pending or threatened in any court or before any arbitrator or Governmental Authority that, in the reasonable opinion of any Agent, singly or in the aggregate, materially impairs the transactions contemplated by the Credit Documents or that could reasonably be expected to have a Material Adverse Effect.
(m)    Representations and Warranties.  The representations and warranties contained herein and in the other Credit Documents shall be true and correct in all material respects on and as of the Closing Date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date; provided that any representation or warranty that is by its terms qualified by materiality shall be true and correct in all respects.
(n)    No Default.  No event shall have occurred and be continuing or would result from the consummation of the transaction contemplated hereunder or under the Credit Documents that would constitute an Event of Default or a Default.
(o)    Compliance with Law and Regulations.  All Advances and all other financings to the Borrowers (and all guaranties thereof and security therefor), as well as the transactions contemplated by the Credit Documents and the consummation thereof, shall be in full compliance in all material respects with all applicable requirements of law, including Regulations T, U and X of the Federal Reserve Board.
(p)    No Conflict with Material Contracts.  After giving effect to the transactions contemplated by the Credit Documents, there shall be no conflict with, or default under, any Material Contract.
(q)    Patriot Act Information.  Each of the Credit Parties shall have provided the documentation and other information to the Lenders that is required by regulatory authorities under applicable “know your customer” and applicable Anti-Terrorism Laws, including, without limitation, the Patriot Act.
(r)    Borrowing Base Certificate.  On the Closing Date, the European Administrative Agent shall have received the initial Borrowing Base Certificate from the Lead Borrower and meeting the requirements of Section 5.19(a) (together with such supporting documentation and supplemental reports as requested by European Administrative Agent).
(s)    Collateral Examination.  The European Administrative Agent shall have completed and received (i) collateral field examinations of the receivables and inventory of each European Borrower and all books and records in connection therewith and (ii) appraisals of the inventor, machinery and equipment of each European Borrower, the results of which shall in all cases be satisfactory in form and substance to the European Administrative Agent and shall have been conducted by independent firms and appraisers directly engaged by European Administrative Agent, with no direct or indirect interest, financial or otherwise, in the property of the Credit Parties or their Subsidiaries or their assets..
(t)    European Excess Availability.  After giving effect to the initial Advances and Letters of Credit under the European Facility on the Closing Date and all fees and expenses pertaining to the closing of this Agreement and the other Transactions, the European Borrowers shall have European Excess Availability of at least $7,500,000.

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(u)    Due Diligence.  European Administrative Agent shall have completed its business and legal due diligence, with results satisfactory to European Administrative Agent, including its satisfactory review of audited and unaudited financial statements, quarterly projections up to the end of the Fiscal Year ending December 31, 2014, and reasonable due diligence on the Guarantors, including, but not limited to, field exams, appraisals, financial statements and projections provided to Administrative Agent in conjunction with the Existing Credit Agreement.   European Administrative Agent shall have completed its review of regulatory and tax matters, corporate structure, capital structure, debt instruments and existing debt financing arrangements, material accounts, and governing documents of the European Borrowers and their affiliates, with results satisfactory to European Administrative Agent.
(v)    Account Documentation.  The European Credit Parties shall have, to the satisfaction of European Administrative Agent, completed all procedures and provided all documentation necessary to open the European Credit Parties’ depository and disbursement bank accounts with European Administrative Agent.
For purposes of determining compliance with the conditions specified in this Section 3.1, each of the Lenders shall be deemed to have consented to, approved, accepted or be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to the Lenders unless an officer of any Agent responsible for the transactions contemplated by the Credit Documents shall have received notice from such Lender prior to the initial Credit Extension hereunder specifying its objection thereto and such Lender shall not have made available to the Applicable Agent such Lender’s Revolving Commitment Percentage of such Credit Extension.
3.2    Conditions to Each Credit Extension.
(a)    Conditions Precedent.  The obligation of each Lender, each Issuer and each Swing Loan Lender to make any Credit Extension on any Credit Date including the Closing Date, is subject to the satisfaction, or waiver in accordance with Section 10.5, of the following conditions precedent:
(i)    the Applicable Lead Borrower shall have delivered to the Applicable Agent (and the applicable Swing Loan Lender in the case of a borrowing of Swing Loans and the applicable Issuer in the case of an issuance of a Letter of Credit) a Funding Notice or Letter of Credit Application, as the case may be;
(ii)    no Protective Advances are outstanding and the limits set forth in Section 2.1, 2.3 or 2.10 are not exceeded after giving effect to such Advances or Letters of Credit, as applicable;
(iii)    as of such Credit Date, the representations and warranties contained herein and in the other Credit Documents shall be true and correct in all material respects on and as of that Credit Date to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date; and
(iv)    as of such Credit Date, no event shall have occurred and be continuing or would result from the consummation of the applicable Credit Extension that would constitute an Event of Default or a Default.

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(b)    Notices.  Any Funding Notice or Letter of Credit Application shall be executed by an Authorized Officer in a writing delivered to the Applicable Agent.  In lieu of delivering a Funding Notice, the Applicable Lead Borrower may give the Applicable Agent telephonic notice by the required time of any proposed borrowing or conversion or continuation of any Advance; provided each such notice shall be promptly confirmed in writing by delivery of the applicable Funding Notice to the Applicable Agent on or before the applicable date of any such borrowing, conversion, continuation or issuance.  Neither any Agent nor any Lender shall incur any liability to any Borrower in acting upon any telephonic notice referred to above that the Applicable Agent believes in good faith to have been given by an Authorized Officer of the Lead Borrower or European Lead Borrower or other person authorized on behalf of any Borrower or for otherwise acting in good faith.
SECTION 4.    REPRESENTATIONS AND WARRANTIES
In order to induce the Lenders, the Issuers and the Swing Loan Lenders to make each Credit Extension to be made by this Agreement, and to induce each Lender Counterparty to enter into any transaction in respect of any Hedging Obligations or any Cash Management Obligations, each Credit Party represents and warrants to each Lender, each Issuer, each Swing Loan Lender and each Lender Counterparty, on the Closing Date and each Credit Date, that the following statements are true and correct:  
4.1    Organization; Requisite Power and Authority; Qualification.  Each of the Lead Borrower and its Subsidiaries (a) is duly organized, validly existing and in good standing (or, for Foreign Subsidiaries of equivalent status when reasonably ascertainable) under the laws of its jurisdiction of organization as identified in Schedule 4.1, (b) has all requisite power and authority to own and operate its properties, to carry on its business as now conducted and as proposed to be conducted, to enter into the Credit Documents to which it is a party and to carry out the transactions contemplated thereby, and (c) is qualified to do business and in good standing in every jurisdiction where its assets are located and wherever necessary to carry out its business and operations, except in jurisdictions where the failure to be so qualified or in good standing has not had, and could not be reasonably expected to have, a Material Adverse Effect.
4.2    Capital Stock and Ownership.  The Capital Stock of each of the Lead Borrower and its Subsidiaries has been duly authorized and validly issued and is fully paid and non-assessable.  Except as set forth on Schedule 4.2, as of the Closing Date, there is no existing option, warrant, call, right, commitment or other agreement to which the Lead Borrower or any of its Subsidiaries is a party requiring, and there is no membership interest or other Capital Stock of the Lead Borrower or any of its Subsidiaries outstanding which upon conversion or exchange would require, the issuance by the Lead Borrower or any of its Subsidiaries of any additional membership interests or other Capital Stock of the Lead Borrower or any of its Subsidiaries or other Securities convertible into, exchangeable for or evidencing the right to subscribe for or purchase, a membership interest or other Capital Stock of the Lead Borrower or any of its Subsidiaries.  Schedules 4.1 and 4.2 correctly set forth the ownership interest of the Lead Borrower and each of its Subsidiaries in their respective Subsidiaries as of the Closing Date.
4.3    Due Authorization.  The execution, delivery and performance of the Credit Documents have been duly authorized by all necessary action on the part of each Credit Party that is a party thereto.
4.4    No Conflict.  The execution, delivery and performance by the Credit Parties of the Credit Documents to which they are parties and the consummation of the transactions contemplated by the Credit Documents do not and will not (a) violate any provision of any law or any governmental rule or regulation applicable to the Lead Borrower or any of its Subsidiaries, any of the Organizational Documents of the Lead Borrower or any of its Subsidiaries, or any order, judgment or decree of any court or other agency of 

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government binding on the Lead Borrower or any of its Subsidiaries; (b) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any Contractual Obligation of the Lead Borrower or any of its Subsidiaries except to the extent such conflict, breach or default could not reasonably be expected to have a Material Adverse Effect; (c) result in or require the creation or imposition of any Lien upon any of the properties or assets of the Lead Borrower or any of its Subsidiaries (other than (x) any Liens created under any of the Credit Documents in favor of the Collateral Agent or European Collateral Agent, on behalf of the Secured Parties and (y) subject to the terms of the Intercreditor Agreement, any Liens on the US Collateral created under the Term Credit Documents in favor of the Term Agent); or (d) require any approval of stockholders, members or partners or any approval or consent of any Person under any Contractual Obligation of the Lead Borrower or any of its Subsidiaries, except for such approvals or consents which will be obtained on or before the Closing Date and disclosed in writing to Lenders and except for any such approvals or consents the failure of which to obtain will not have, and could not reasonably be expected to have, a Material Adverse Effect.
4.5    Governmental Consents.  The execution, delivery and performance by the Credit Parties of the Credit Documents to which they are parties and the consummation of the transactions contemplated by the Credit Documents do not and will not require any registration with, consent or approval of, or notice to, or other action to, with or by, any Governmental Authority except for (i) filings and recordings with respect to the Collateral to be made, or otherwise delivered to the Collateral Agent for filing and/or recordation, as of the Closing Date and (ii) filings and recordings to be made in connection with the perfection of Collateral acquired after the Closing Date.
4.6    Binding Obligation.  
(a)    Each Credit Document has been duly executed and delivered by each Credit Party that is a party thereto and is the legally valid and binding obligation of such Credit Party, enforceable against such Credit Party in accordance with its respective terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability.
(b)    The choice of governing law provisions contained in this Agreement and each other Credit Document to which any European Credit Party is a party are enforceable in the jurisdictions where such European Credit Party is organized or incorporated or any Collateral of such European Credit Party is located.  Any judgment obtained in connection with this Agreement or any other Credit Document in the jurisdiction of the governing law this Agreement or such other Credit Document will be recognized and be enforceable in the jurisdictions where such European Credit Party is organized or any Collateral is located, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability and subject to the matters which are set out as qualifications or reservations as to matters of law of general applicability in the legal opinions provided to the Secured Parties in accordance with this Agreement.
4.7    Historical Financial Statements.  The Historical Financial Statements were prepared in conformity with GAAP and fairly present, in all material respects, the financial position, on a consolidated basis, of the Persons (including the European Borrowers on a stand-alone basis where applicable) described in such financial statements as at the respective dates thereof and the results of operations and cash flows, on a consolidated basis, of the entities described therein for each of the periods then ended, subject, in the case of any such unaudited financial statements, to changes resulting from audit and normal year-end adjustments.  As of the Closing Date, neither the Lead Borrower nor any of its Subsidiaries has any contingent liability or liability for taxes, long term lease or unusual forward or long term commitment that is not reflected 

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in the Historical Financial Statements or the notes thereto and which in any such case is material in relation to the business, operations, properties, assets, condition (financial or otherwise) or prospects of the Borrower and any of its Subsidiaries taken as a whole.
4.8    Business Plan.  The Initial Business Plan and each Business Plan delivered pursuant to Section 5.1(m) is and will be based on good faith estimates and assumptions made by the management of the Borrower.
4.9    No Material Adverse Change.  Since December 31, 2012, no event, circumstance or change has occurred that has caused or evidences, or could reasonably be expected to cause, either in any case or in the aggregate, a Material Adverse Effect.
4.10    Use of Proceeds.  The proceeds of the Advances and the Letters of Credit shall be used by the Borrowers solely in accordance with Section 2.19.
4.11    Adverse Proceedings, etc.  There are no Adverse Proceedings, individually or in the aggregate, that could reasonably be expected to have a Material Adverse Effect.  Neither the Lead Borrower nor any of its Subsidiaries (a) is in violation of any applicable laws (including Environmental Laws) that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, or (b) is subject to or in default with respect to any final judgments, writs, injunctions, decrees, rules or regulations of any Governmental Authority that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.
4.12    Payment of Taxes.  Except as otherwise permitted under Section 5.3, all federal, foreign country, state, provincial, territorial and all other material tax returns and reports of the Lead Borrower and its Subsidiaries required to be filed by any of them have been timely filed, all such tax returns are complete and correct in all material respects and all taxes shown on such tax returns to be due and payable and all assessments, fees and other governmental charges upon the Lead Borrower and its Subsidiaries and upon their respective properties, assets, income, businesses and franchises and all Priority Payables which are due and payable have been paid when due and payable, except those taxes which are being contested in good faith by appropriate proceedings diligently conducted (provided that such contest operates to suspend collection of the contested tax) and for which adequate reserves have been provided in accordance with GAAP.  The Lead Borrower knows of no proposed tax assessment against the Lead Borrower or any of its Subsidiaries which is not being actively contested by the Lead Borrower or such Subsidiary in good faith and by appropriate proceedings diligently conducted (provided that such contest operates to suspend collection of the contested tax) and for which adequate reserves have been provided in accordance with GAAP.
4.13    Properties.
(a)    Title.  Each of the Lead  Borrower and its Subsidiaries has (i) good, valid and legal title to (in the case of fee interests in real property), (ii) valid leasehold and subleasehold interests in (in the case of leasehold and subleasehold interests in real or personal property), and (iii) good title to (in the case of all other personal property), all of their respective properties and assets reflected in their respective Historical Financial Statements referred to in Section 4.7 and in the most recent financial statements delivered pursuant to Section 5.1, in each case except for assets disposed of since the date of such financial statements in the Ordinary Course or as otherwise permitted under Section 6.9.  Except as permitted by this Agreement, all such properties and assets are free and clear of Liens.

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(b)    Real Estate.  As of the Closing Date, Schedule 4.13(b) contains a true, accurate and complete list of (i) all Real Estate Assets, and (ii) all leases, subleases or assignments of leases (together with all amendments, modifications, supplements, renewals or extensions of any thereof) affecting each Real Estate Asset of any Credit Party, regardless of whether such Credit Party is the landlord or tenant (whether directly or as an assignee or successor in interest) under such lease, sublease or assignment.  Each agreement listed in clause (ii) of the immediately preceding sentence is in full force and effect and the Lead Borrower does not have knowledge of any default that has occurred and is continuing thereunder except where the consequences, direct or indirect, of such default or defaults, if any, could not be reasonably expected to have a Material Adverse Effect, and each such agreement constitutes the legally valid and binding obligation of each applicable Credit Party, enforceable against such Credit Party in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles.
4.14    Environmental Matters.  Neither the Lead Borrower nor any of its Subsidiaries nor any of their respective Operating Facilities or operations are subject to any outstanding written order, consent decree or settlement agreement with any Person relating to any Environmental Law, any Environmental Claim, or any Hazardous Materials Activity that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.  There are and, to each of the Lead Borrower’s and its Subsidiaries’ knowledge, have been, no conditions, occurrences, or Hazardous Materials Activities which could reasonably be expected to form the basis of an Environmental Claim against the Lead Borrower or any of its Subsidiaries that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.  Neither the Lead Borrower nor any of its Subsidiaries nor, to any Credit Party’ s knowledge, any predecessor of the Lead Borrower or any of its Subsidiaries, has filed any notice under any Environmental Law indicating past or present treatment of Hazardous Materials at any Operating Facility that, individually or in the aggregate, could be reasonably expected to have a Material Adverse Effect, and none of the Lead Borrower’s or any of its Subsidiaries’ operations involves the generation, transportation, treatment, storage or disposal of Hazardous Materials, except as would not reasonably be expected to form the basis of an Environmental Claim against the Lead Borrower or any of its Subsidiaries, or as listed on Schedule 4.14-1.  Compliance with all current or reasonably foreseeable applicable future requirements pursuant to or under Environmental Laws could not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect.  Except as disclosed on Schedule 4.14-2, no event or condition has occurred or is occurring with respect to the Lead Borrower or any of its Subsidiaries relating to any Environmental Law, any Release of Hazardous Materials, or any Hazardous Materials Activity which individually or in the aggregate has had, or could reasonably be expected to have, a Material Adverse Effect.  The Lead Borrower and its Subsidiaries have made available to the Agents true and complete final copies of all material environmental, health or safety assessments, audits, studies, reports, analyses and investigations in the Lead Borrower’s or its Subsidiaries’ possession with respect to the Lead Borrower or any of its Subsidiaries, to the Operating Facilities or to any pending or any unresolved Environmental Claim that could result in material environmental liability to any of the Credit Parties.
4.15    No Defaults.  Neither the Lead Borrower nor any of its Subsidiaries is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any of its Contractual Obligations, and no condition exists which, with the giving of notice or the lapse of time or both, could constitute such a default, except where the consequences, direct or indirect, of such default or defaults, if any, could not reasonably be expected to have a Material Adverse Effect.
4.16    Material Contracts.  Schedule 4.16 contains a true, correct and complete list of all the Material Contracts in effect on the Closing Date, and except as described thereon, all such Material Contracts are in full force and effect and no defaults currently exist thereunder, except any such default or failure to 

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be in force and effect which could not reasonably be expected to result in an exercise of remedies or acceleration of the indebtedness created thereunder.
4.17    Governmental Regulation.  Neither the Lead Borrower nor any of its Subsidiaries is subject to regulation under the Federal Power Act or the Investment Company Act of 1940 or under any other federal, provincial, territorial or state statute or regulation which may limit its ability to incur Indebtedness or which may otherwise render all or any portion of the Obligations unenforceable.  Neither the Lead Borrower nor any of its Subsidiaries is a “registered investment company” or a company “controlled” by a “registered investment company” or a “principal underwriter” of a “registered investment company” as such terms are defined in the Investment Company Act of 1940.
4.18    Margin Stock.  Neither the Lead Borrower nor any of its Subsidiaries is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any Margin Stock.  No part of the proceeds of the Advances or any Letter of Credit will be used to purchase or carry any such margin stock or to extend credit to others for the purpose of purchasing or carrying any such margin stock or for any purpose that violates, or is inconsistent with, the provisions of Regulation T, U or X of said Board of Governors.
4.19    Employee Matters.  Neither the Lead Borrower nor any of its Subsidiaries is engaged in any unfair labor practice that could reasonably be expected to have a Material Adverse Effect.  There is (a) no unfair labor practice complaint pending against the Lead Borrower or any of its Subsidiaries, or to the best knowledge of the Lead Borrower and each other Credit Party, threatened against any of them before the National Labor Relations Board or any similar Governmental Authority and no grievance or arbitration proceeding arising out of or under any collective bargaining agreement that is so pending against the Lead Borrower or any of its Subsidiaries or to the best knowledge of the Lead Borrower and each other Credit Party, threatened against any of them, (b) no strike, work stoppage or lock-out in existence or threatened involving the Lead Borrower or any of its Subsidiaries, and (c) to the best knowledge of the Lead Borrower and each other Credit Party, no union representation question existing with respect to the employees of the Lead Borrower or any of its Subsidiaries and, to the best knowledge of the Lead Borrower and each other Credit Party, no union organization activity that is taking place, except (with respect to any matter specified in clause (a), (b) or (c) above, either individually or in the aggregate) such as could not reasonably be expected to have a Material Adverse Effect.
4.20    Employee Benefit Plans.  (a) The Lead Borrower, each of its Subsidiaries and each of their respective ERISA Affiliates are in compliance with all applicable provisions and requirements of ERISA and the Code and the regulations and published interpretations thereunder with respect to each Employee Benefit Plan, and have performed all their obligations under each Employee Benefit Plan, other than any non-compliance or non-performance that could not be reasonably expected to have a Material Adverse Effect.  Each Employee Benefit Plan which is intended to qualify under section 401(a) of the Code has received a recent, unexpired favorable determination letter from the Internal Revenue Service indicating that such Employee Benefit Plan is so qualified and nothing has occurred subsequent to the issuance of such determination letter which would cause such Employee Benefit Plan to lose its qualified status, except such defect that can be corrected pursuant to Rev.  Proc. 2003-44 or any successor ruling or regulation in a manner that does not and could not reasonably be expected to give rise to a Material Adverse Effect (or, in the case of an Employee Benefit Plan with an expired determination letter, an application has been timely filed for a new determination letter and nothing has occurred that would materially adversely affect the issuance of a new favorable determination letter or otherwise materially adversely affect such qualification).  No liability to the PBGC (other than required premium payments), the Internal Revenue Service, any Employee Benefit Plan or any trust established under Title IV of ERISA (other than Ordinary Course contribution obligations) 

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has been or is expected to be incurred by the Lead Borrower, any of its Subsidiaries or any of their ERISA Affiliates that could reasonably be expected to have a Material Adverse Effect.  No ERISA Event has occurred or is reasonably expected to occur which could reasonably be expected to result in a Material Adverse Effect.
(b)    As at the Closing Date and at no time preceding or following that date has there been any active or retiree members of the Canadian Registered Pension Plan who are or were employed in any province outside of Quebec and Nova Scotia other than one active and eight retiree employees in Ontario or existed a Canadian multi-employer pension plan, as defined under applicable laws, contributed to or required to be contributed to by a Canadian Borrower or any Affiliate of a Canadian Borrower.  Except as could not reasonably be expected to have a Material Adverse Effect: (i) each Non-U.S. Plan has been maintained in compliance with its terms and with the requirements of any and all applicable laws, statutes, rules, regulations and orders and has been maintained, where required, in good standing (including, where applicable, maintaining tax-exempt or tax-preferred status) with applicable regulatory authorities; (ii) all contributions required to be made with respect to a Non-U.S. Plan have been timely made; (iii) neither the Lead Borrower nor any of its Subsidiaries has incurred any obligation in connection with (or taken any steps to commence or received a notice from a Governmental Authority requiring)  the termination of, or withdrawal from, any Non-U.S. Plan; and (iv) the present value of the accrued benefit liabilities (whether or not vested) under each Non-U.S. Plan, determined as of the end of the Lead Borrower’s most recently ended Fiscal Year on the basis of actuarial assumptions, each of which is reasonable, did not exceed the current value of the assets of such Non-U.S. Plan allocable to such benefit liabilities; and (v) no Canadian Registered Pension Plan contains a deficit, as that term is defined under applicable laws, as described in the most recent actuarial valuation report submitted to the applicable Governmental Authority in accordance with applicable laws. As of the Closing Date, (i) the solvency deficit under the Canadian Borrower’s Canadian Registered Pension Plan was Cdn$1,881,000, based upon the most recent actuarial report filed by the Canadian Borrower under the applicable Requirement of Law in Nova Scotia, and (ii) all contributions in respect of current service costs, special payments and any other amounts (as well as registration fees) in respect of the sole Canadian Registered Pension Plan have been made in a timely manner in accordance with Requirements of Law.  No Canadian Pension Event has occurred or is reasonably expected to occur which could reasonably be expected to result in a Material Adverse Effect.

4.21    Certain Fees.  No broker’s or finder’s fee or commission will be payable with respect hereto or any of the transactions contemplated by the Credit Documents.
4.22    Solvency.  As of the Closing Date, after giving effect to the Transactions and the other transactions contemplated hereby and the incurrence of the Indebtedness and obligations being incurred in connection herewith, each Credit Party is Solvent and with respect to each German Relevant Entity, no German Insolvency Event has occurred with respect to it.
4.23    Anti-Money Laundering/International Trade Law Compliance.  (a) No Covered Entity (i) is a Sanctioned Person; (ii) has any of its assets in a Sanctioned Country or in the possession, custody or control of a Sanctioned Person; or (iii) does business in or with, or derives any of its operating income from investments in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any law, regulation, order or directive enforced by any Compliance Authority; (b) the Advances and Letter of Credit drawings will not be used to fund any operations in, finance any investments or activities in, or, make any payments to, a Sanctioned Country or Sanctioned Person in violation of any law, regulation, order or directive enforced by any Compliance Authority; (c) the funds used to repay the Obligations are not derived from any unlawful activity; and (d) each Covered Entity is in compliance with, and no Covered Entity engages in any dealings or transactions prohibited by, any laws of the United States and any Anti-Terrorism Laws.

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4.24    Compliance with Statutes, etc.  Each of the Lead Borrower and its Subsidiaries is in compliance with all applicable statutes, regulations and orders of, and all applicable restrictions imposed by, all Governmental Authorities, in respect of the conduct of its business and the ownership of its property (including compliance with all applicable Environmental Laws, which includes obtaining, maintaining and complying with the requirements of any Governmental Authorizations required under such Environmental Laws with respect to any such Real Estate Asset or the operations of the Lead Borrower or any of its Subsidiaries), except such non-compliance that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.
4.25    Disclosure.  No representation or warranty of any Credit Party contained in any Credit Document or in any other documents, certificates or written statements, including without limitation, information contained in the presentations made to the Lenders (excluding any projections and pro forma financial information contained in such materials), furnished to the Lenders by or on behalf of the Lead Borrower or any of its Subsidiaries for use in connection with the transactions contemplated hereby contains any untrue statement of a material fact or omits to state a material fact (known to the Lead Borrower, in the case of any document not furnished by it) necessary in order to make the statements contained herein or therein not misleading in light of the circumstances in which the same were made.  Any projections and pro forma financial information contained in such materials are based upon good faith estimates and assumptions believed by the Lead Borrower to be reasonable at the time made, it being recognized by Lenders that such projections as to future events are not to be viewed as facts and that actual results during the period or periods covered by any such projections may differ from the projected results.  There are no facts known (or which should upon the reasonable exercise of diligence be known) to the Lead Borrower (other than matters of a general economic nature) that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect and that have not been disclosed herein or in such other documents, certificates and statements furnished to Lenders for use in connection with the transactions contemplated hereby.
4.26    Insurance.  All policies of insurance of the Lead Borrower or any of its Subsidiaries, including policies of fire, theft, product liability, public liability, property damage, other casualty, employee fidelity and workers’ compensation, are in full force and effect and are of a nature and provide such coverage as is sufficient and as is customarily carried by businesses of the size and character of such Person.
4.27    Borrowing Base Certificate.As of the date of any Borrowing Base Certificate, the information set forth in such Borrowing Base Certificate is true and correct in all material respects and has been prepared in accordance with the requirements of this Agreement.
4.28    Centre of Main Interest and Establishments  Each European Credit Party (to the extent organized in the European Union) has its "centre of main interests" (as that term is used in Article 3(7) of the Council of the European Union Regulation No. 1346/2000 as Insolvency Proceeding (the "Regulation") in its jurisdiction of incorporation.  No European Credit Party has an establishment (as that term is used in Article 2(h) of the Regulation) in any jurisdiction other than its jurisdiction of incorporation.
SECTION 5.    AFFIRMATIVE COVENANTS
Each Credit Party covenants and agrees that, so long as any Revolving Commitment is in effect and until payment in full of all Obligations (other than Hedging Obligations and Cash Management Obligations) and the cancellation or expiration of all Letters of Credit, each Credit Party shall perform, and shall cause each of its Subsidiaries to perform, all covenants in this Section 5.
5.1    Financial Statements and Other Reports.  The Lead Borrower will deliver to the Administrative Agent (and, where expressly contemplated in this Section 5.1, such other Agents and Lenders 

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described herein, including, with respect to clauses (e), (g), (h), and (m) of this Section 5.1, the European Administrative Agent):
(a)    Periodic Financial Statements.  (i) As soon as available, and in any event within 45 days after the end of each of the first three Fiscal Quarters of each Fiscal Year, the consolidated and consolidating balance sheets of the Lead Borrower and its Subsidiaries as at the end of such Fiscal Quarter (and a separate balance sheet covering the European Borrowers on a stand-alone basis) and the related consolidated and consolidating statements of income, stockholders’ equity and cash flows of the Lead Borrower and its Subsidiaries (and separate such statements covering the European Borrowers on a stand-alone basis) for such Fiscal Quarter and for the period from the beginning of the then current Fiscal Year to the end of such Fiscal Quarter, setting forth in each case in comparative form the corresponding figures for the corresponding periods of the previous Fiscal Year (it being understood and agreed that the consolidating financial statements shall be in the form that the Lead Borrower currently files with the Securities and Exchange Commission as part of its Form 10-Q, except for the inclusion of statements provided with respect to the European Borrowers on a stand-alone basis) and (ii) as soon as available, and in any event within 30 days after the end of each month, the consolidated balance sheets of the Lead Borrower and its Subsidiaries (and a separate balance sheet covering the European Borrowers on a stand-alone basis) as at the end of such month and the related consolidated  statements of income, stockholders’ equity and cash flows of the Lead Borrower and its Subsidiaries (and separate such statements covering the European Borrowers on a stand-alone basis) for such month and for the period from the beginning of the then current Fiscal Year to the end of such month, setting forth in each case in comparative form the corresponding figures for the corresponding periods of the previous Fiscal Year;
(b)    Annual Financial Statements.  As soon as available, and in any event within 90 days after the end of each Fiscal Year, beginning with Fiscal Year 2013, (i) the audited consolidated and unaudited consolidating balance sheets of the Lead Borrower and its Subsidiaries (and a separate balance sheet covering the European Borrowers on a stand-alone basis) as at the end of such Fiscal Year and the related consolidated and consolidating statements of income, stockholders’ equity and cash flows of the Lead Borrower and its Subsidiaries (and separate such statements covering the European Borrowers on a stand-alone basis) for such Fiscal Year, setting forth, in each case, in comparative form the corresponding figures for the previous Fiscal Year (it being understood and agreed that the consolidating financial statements shall be in the form that the Lead Borrower currently files with the Securities and Exchange Commission as part of its Form 10-K, except for the inclusion of statements provided with respect to the European Borrowers on a stand-alone basis), and (ii) with respect to such consolidated financial statements, a report thereon of Ernst & Young LLP or other independent certified public accountants of recognized international standing selected by the Lead Borrower (which report shall be unqualified as to going concern and scope of audit, and shall state that such consolidated financial statements fairly present, in all material respects, the consolidated financial position of the Lead Borrower and its Subsidiaries as at the dates indicated and the results of their operations and their cash flows for the periods indicated in conformity with GAAP applied on a basis consistent with prior years (except as otherwise disclosed in such financial statements));
(c)    Compliance Certificate.  Together with each delivery of financial statements of the Lead Borrower and its Subsidiaries pursuant to Sections 5.1(a) and 5.1(b), a duly executed and completed Compliance Certificate, including, without limitation, with respect to financial statements delivered pursuant to Section 5.1(a), a Financial Officer Certification; provided, that in respect of the fourth Fiscal Quarter of each Fiscal Year, it shall also deliver a duly executed and completed Compliance Certificate as soon as available, and in any event within 90 days after the end of the fourth Fiscal Quarter;

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(d)    Sufficiency of Public Quarterly and Annual Reports.  Notwithstanding anything to the contrary contained herein, delivery to the Administrative Agent by the Lead Borrower of its quarterly report on Form 10-Q and its annual report on Form 10-K shall satisfy the requirements of Sections 5.1(a) and (b), respectively, except with respect to statements provided with respect to the European Borrowers on a stand-alone basis required by Sections 5.1(a) and (b), for so long as the Lead Borrower remains a reporting company under the Exchange Act and such Form 10-Q and Form 10-K also includes the Lead Borrower’s consolidating financial statements.
(e)    Notice of Default.  Promptly upon any officer of the Lead Borrower obtaining knowledge (i) of any condition or event that constitutes a Default or an Event of Default or that notice has been given to the Lead Borrower with respect thereto, (ii) that any Person has given any notice to the Lead  Borrower or any of its Subsidiaries or taken any other action with respect to any event or condition set forth in Section 8.1(b), or (iii) of the occurrence of any event or change that has caused or evidences or could reasonably be expected to cause, either in any case or in the aggregate, a Material Adverse Effect, a certificate of its Authorized Officers specifying the nature and period of existence of such condition, event or change, or specifying the notice given and action taken by any such Person and the nature of such claimed Event of Default, Default, default, event or condition, and what action the Borrower has taken, is taking and proposes to take with respect thereto;
(f)    Notice of Litigation.  Promptly upon any officer of the Lead Borrower obtaining knowledge of (i) the institution of, or non-frivolous threat of, any Adverse Proceeding not previously disclosed in writing by the Lead Borrower to the Lenders, or (ii) any material development in any Adverse Proceeding that, in the case of either clause (i) or (ii) above could be reasonably expected to have a Material Adverse Effect, or seeks to enjoin or otherwise prevent the consummation of, or to recover any damages or obtain relief as a result of, the transactions contemplated hereby, written notice thereof together with such other information as may be reasonably available to the Lead Borrower to enable the Lenders and their counsel to evaluate such matters;
(g)    ERISA. (i) Promptly upon becoming aware of the occurrence of or forthcoming occurrence of any ERISA Event, a written notice specifying the nature thereof, what action the Lead Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates has taken, is taking or proposes to take with respect thereto and, when known, any action taken or threatened by the Internal Revenue Service, the Department of Labor or the PBGC with respect thereto; and (ii) with reasonable promptness, copies of (1) each Schedule B (Actuarial Information) to the annual report (Form 5500 Series) filed by the Lead Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates with the Internal Revenue Service with respect to each Pension Plan, (2) all notices received by the Lead Borrower, any of its Subsidiaries or any of their respective ERISA Affiliates from a Multiemployer Plan sponsor concerning an ERISA Event, and (3) copies of such other documents or governmental reports or filings relating to any Employee Benefit Plan as the Administrative Agent or the European Administrative Agent shall reasonably request;
(h)    Insurance Report.  As soon as practicable following any material change in the insurance coverage, notice to the Administrative Agent and the European Administrative Agent of such change and an explanation in form and substance reasonably satisfactory to the Administrative Agent of such change;
(i)    Information Regarding Collateral.  The (A) Lead Borrower will furnish to the Collateral Agent prompt written notice of any change (i) in any Domestic Credit Party’s corporate name, (ii) in any Domestic Credit Party’s identity or corporate structure or (iii) in any Domestic Credit Party’s Federal or Canadian Taxpayer Identification Number, and (B) European Lead Borrower will furnish to the European 

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Collateral Agent prompt written notice of any change (i) in any European Credit Party’s corporate name, (ii) in any European Credit Party’s identity or corporate structure or (iii) in any European Credit Party’s Federal Identification Number (or local law equivalent).  The Applicable Lead Borrower agrees not to effect or permit any change referred to in the preceding sentence unless all filings have been made under the UCC or PPSA or other local law equivalents with respect to the European Credit Parties, as applicable, or otherwise that are required in order for the Collateral Agent or European Agent, as applicable, to continue at all times following such change to have a valid, legal and perfected security interest in all the applicable Collateral as contemplated in the Collateral Documents.  The (i) Lead Borrower also agrees promptly to notify the Collateral Agent if any material portion of the Domestic Collateral is damaged or destroyed and (ii) the European Lead Borrower also agree promptly to notify the European Collateral Agent if any material portion of the European Collateral is damaged or destroyed;
(j)    Annual Collateral Verification.  Each year, at the time of delivery of annual financial statements with respect to the preceding Fiscal Year pursuant to Section 5.1(b), (i) the Lead Borrower shall deliver to the Collateral Agent an Officer’s Certificate and (ii) the European Lead Borrower shall deliver to the European Collateral Agent an Officer’s Certificate, in each case either confirming that there has been no change in such information since the date of the applicable Collateral Questionnaire delivered on the Closing Date (or the Original Closing Date with respect to the Domestic Credit Parties) or the date of the most recent certificate delivered pursuant to this Section and/or identifying such changes;
(k)    Other Information. (i) Promptly upon their becoming available, copies of (A) all financial statements, reports, notices and proxy statements sent or made available generally by the Lead Borrower to its security holders acting in such capacity or by any Subsidiary of the Lead Borrower to its security holders other than the Lead Borrower or another Subsidiary of the Lead Borrower, (B) all regular and periodic reports and all registration statements and prospectuses, if any, filed by the Lead Borrower or any of its Subsidiaries with any securities exchange or with the Securities and Exchange Commission (or any other similar Governmental Authority, as applicable) and (C) all press releases and other statements made available generally by the Lead Borrower or any of its Subsidiaries to the public concerning material developments in the business of the Lead Borrower or any of its Subsidiaries and (ii) such other information and data with respect to the Lead Borrower or any of its Subsidiaries as from time to time may be reasonably requested by any Agent;
(l)    Electronic Delivery.
(i)    Notwithstanding anything in any Credit Document to the contrary, each Credit Party hereby agrees that it will use its reasonable best efforts to provide to each Agent all information, documents and other materials that it is obligated to furnish to the such Agent pursuant to the Credit Documents, including, without limitation, all notices, requests, financial statements, financial and other reports, certificates and other information materials, but excluding any such communication that (A) relates to a request for a new Credit Extension or other extension of credit (including any election of an interest rate or Interest Period relating thereto), (B) relates to the payment of any principal or other amount due under any Credit Document prior to the scheduled date therefor, (C) provides notice of any Default or Event of Default under any Credit Document or (D) is required to be delivered to satisfy any condition set forth in Sections 3.1 and/or 3.2 (all such non-excluded communications being referred to herein collectively as the “Communications”), by transmitting the Communications in accordance with Section 10.1(c).  In addition, each Credit Party agrees to continue to provide the Communications to each Agent in the manner specified in the 

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Credit Documents, but only to the extent requested by such Agent pursuant to Section 10.1(c).
(ii)    Each Agent agrees that the receipt of the Communications in accordance with Section 10.1(c) shall constitute effective delivery of the Communications to such Agent for purposes of this Section 5.1(l) unless otherwise requested by such Agent pursuant to Section 10.1(c).
(iii)    Nothing in this Section 5.1(l) shall prejudice the right of any Agent or any Lender to give any notice or other communication pursuant to any Credit Document in any other manner specified in such Credit Document.
(m)    Business Plan.  Promptly after approval thereof by the board of directors of the Lead Borrower, and in any event no later than April 1 of each Fiscal Year, the Lead Borrower shall deliver to the Administrative Agent and the European Administrative Agent (commencing with Fiscal Year 2014), a detailed consolidated budget and business plan of the Lead Borrower and its Subsidiaries for such Fiscal Year prepared on a monthly basis (including a projected monthly consolidated balance sheet and related monthly statements of projected operations and cash flow as of the end of each month during such Fiscal Year), and including, in addition, all such information on a stand-alone basis for the European Borrowers, in each case in a form reasonably satisfactory to the Administrative Agent (the “Business Plan”); provided, that although any projections included in the Business Plan shall be prepared in good faith on the basis of the assumptions stated therein, which assumptions were believed to be reasonable at the time of preparation of such projections, it is understood that actual results may vary from such projections and that such variations may be material.
(n)    Quarterly Lender Calls.  The Lead Borrower shall cause its management to participate, during normal business hours and with reasonable advance notice, in a conference call with the Agents and the Lenders within seven (7) Business Days (or such later date as may be agreed to by the Administrative Agent and the European Administrative Agent) after the date on which the financial statements are delivered pursuant to pursuant to Sections 5.1(a) and 5.1(b).  Notwithstanding anything to the contrary contained herein, a conference call held with investors by the Lead Borrower in connection with the filing of its quarterly report on Form 10-Q and its annual report on Form 10-K to discuss its financial results for such periods shall satisfy the requirements of this Section 5.1(n) for so long as the Lead Borrower remains a reporting company under the Exchange Act.
(o)    Certification of Public Information. The Lead Borrower hereby acknowledges that (a) the Agents will make available to the Lenders materials and/or information provided by or on behalf of the Lead Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on the Platform and (b) certain of the Lenders may be Public Lenders and may have personnel who do not wish to receive Material Non-Public Information and who may be engaged in investment and other market-related activities with respect to such Persons’ securities.  The Lead Borrower hereby agrees that it will use commercially reasonable efforts to identify that portion of the Borrower Materials that may be distributed to the Public Lenders and will promptly confirm, at the request of any Agent, whether any Borrower Materials contain Material Non-Public Information and that (w) all such Borrower Materials shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof, (x) by marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to have authorized the Agents and the Lenders to treat such Borrower Materials as not containing any Material Non-Public Information (although it may be sensitive and proprietary), (y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated 

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as “Public”, and (z) the Applicable Agent shall treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public” and suitable for non-Public Lenders.  Notwithstanding the foregoing, the following Borrower Materials shall be marked “PUBLIC,” unless the Lead Borrower notifies the Administrative Agent and the European Administrative Agent promptly that any such document contains Material Non-Public Information: (1) the Credit Documents and (2) term sheets and notification of changes in the terms of this Agreement and the other Credit Documents.
(p)    Canadian Registered Pension Plans. (i) Promptly upon becoming aware of the occurrence of or forthcoming occurrence of any Canadian Pension Plan Event, a written notice specifying the nature thereof, what action the Lead Borrower or any Subsidiary of the Lead Borrower has taken, is taking or proposes to take with respect thereto and, when known, any action taken or threatened by the Canada Revenue Agency or any applicable pension regulator; and (ii) with reasonable promptness, (1) copies of annual information return filed, within the last two (2) years, with the Canada Revenue Agency or any applicable pension regulator with respect to any Canadian Registered Pension Plan; (2) copies of all notices received by the Lead Borrower or any Subsidiary of the Lead Borrower from the administrator of a multi-employer pension plan, as defined under applicable laws, concerning a Canadian Pension Plan Event; (3) copies of each actuarial valuation for each Canadian Registered Pension Plan filed with any applicable pension regulator within the last four (4) years; (4) copies of any actuarial certifications in respect of each Canadian Registered Pension Plan filed with any applicable pension regulator within the last four (4) years, whether in connection with a request for approval to effect commuted value transfers from such plan or otherwise; (5) copies of such other documents or governmental reports or filings relating to any Canadian Registered Pension Plan as the Administrative Agent shall reasonably request.
5.2    Existence.  Except as otherwise permitted under Section 6.9, each Credit Party will, and will cause each of its Subsidiaries to, at all times preserve and keep in full force and effect its existence and all rights and franchises, licenses and permits material to its business; provided, no Credit Party or any of its Subsidiaries shall be required to preserve any such existence, right or franchise, licenses and permits if such Person’s board of directors (or similar governing body) shall determine that the preservation thereof is no longer desirable in the conduct of the business of such Person, and that the loss thereof is not disadvantageous in any material respect to such Person or to the Lenders.
5.3    Payment of Taxes and Claims.  Each Credit Party will, and will cause each of its Subsidiaries to, timely pay all Priority Payables and all federal, foreign country, state, provincial, territorial and all other material taxes imposed upon it or any of its properties or assets or in respect of any of its profits, income, capital, capital gains, payroll businesses or franchises before any penalty or fine accrues thereon, and all taxes or claims (including claims for labor, services, materials and supplies) for sums that have become due and payable and that by law have or may become a Lien upon any of its properties or assets; provided, that no such tax or claim need be paid if it is being contested in good faith by appropriate proceedings promptly instituted and diligently conducted, so long as (a) adequate reserve or other appropriate provision, as shall be required in conformity with GAAP, shall have been made therefor, and (b) in the case of a tax or claim which has or may become a Lien against any of the Collateral, such contest proceedings conclusively operate to stay the sale of any portion of the Collateral to satisfy such tax or claim.  No Credit Party will, nor will it permit any of its Subsidiaries to, file or consent to the filing of any consolidated income tax return with any Person (other than the Lead Borrower or any of its Subsidiaries).
5.4    Maintenance of Properties.  Each Credit Party will, and will cause each of its Subsidiaries to, (a) maintain or cause to be maintained in good repair, working order and condition, ordinary wear and tear excepted, all material properties used or useful in the business of the Lead Borrower and its Subsidiaries and from time to time will make or cause to be made all appropriate repairs, renewals and replacements 

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thereof and (b) maintain and preserve (i) all rights, permits, licenses, approvals and privileges (including all Governmental Authorizations) used or useful or necessary in the conduct of its business and (ii) all registered patents, trademarks, trade names, copyrights and service marks with respect to its business, except where failure to so maintain and preserve the items set forth in clause (a) or (b) above could not reasonably be expected in any individual case or in the aggregate to have a Material Adverse Effect.
5.5    Insurance.  The Lead Borrower and its Subsidiaries will maintain or cause to be maintained, with financially sound and reputable insurers, such public liability insurance, third party property damage insurance, business interruption insurance and casualty insurance with respect to liabilities, losses or damage in respect of the assets, properties and businesses of the Lead Borrower and its Subsidiaries as may customarily be carried or maintained under similar circumstances by Persons of established reputation engaged in similar businesses, in each case in such amounts (giving effect to self-insurance), with such deductibles, covering such risks and otherwise on such terms and conditions as shall be customary for such Persons.  Without limiting the generality of the foregoing, the Lead Borrower and its Subsidiaries will maintain or cause to be maintained (a) flood insurance with respect to each Flood Hazard Property that is located in a community that participates in the National Flood Insurance Program, in each case in compliance with any applicable regulations of the Board of Governors of the Federal Reserve System, and (b) replacement value casualty insurance on the Collateral under such policies of insurance, with such insurance companies, in such amounts, with such deductibles, and covering such risks as are at all times carried or maintained under similar circumstances by Persons of established reputation engaged in similar businesses.  Each such policy of insurance issued by an insurer organized or incorporated in the United States (or, in the case of (y) any Canadian Credit Party, an insurer organized or incorporated in Canada or any province thereof, and (z) any European Credit Party, an insurer organized or incorporated in a jurisdiction(s) satisfactory to European Collateral Agent (or, the United States or Canada to the extent the Borrowers maintain a global insurance policy) shall (i) name the Applicable Agent, on behalf of the Secured Parties as an additional insured thereunder as its interests may appear and (ii) in the case of each casualty insurance policy, contain a lender’s loss payable clause or endorsement, satisfactory in form and substance to the Applicable Agent, that names the Applicable Agent, on behalf of the Secured Parties, as the loss payee thereunder  for, except in the case of losses of inventory, losses of $1,000,000 or greater and provides for at least thirty (30) days’ prior written notice to the Applicable Agent of any modification or cancellation of such policy.
5.6    Books and Records; Inspections.  Subject to Section 5.19(d), each Credit Party will, and will cause each of its Subsidiaries to, keep books and records which accurately reflect its business affairs in all material respects and material transactions and each Credit Party will, and will cause each of its Subsidiaries to, permit any authorized representatives designated by any Agent to visit and inspect any of the properties of any Credit Party and any of its Subsidiaries, to inspect, copy and take extracts from its and their financial and accounting records, and to discuss its and their affairs, finances and accounts with its and their officers and independent public accountants, all upon reasonable notice and at such reasonable times during normal business hours and as often as may reasonably be requested.
5.7    Compliance with Laws; SEC Filings.  Each Credit Party will comply, and shall cause each of its Subsidiaries and all other Persons, if any, on or occupying any Operating Facilities to comply, with the requirements of all applicable laws, rules, regulations and orders of any Governmental Authority (including all Environmental Laws and Governmental Authorizations), except where failure to do so could not reasonably be expected to have a Material Adverse Effect and the Lead Borrower shall timely file with the Securities and Exchange Commission (and any other similar Governmental Authority, as applicable) all reports, notices and documents required to be filed under the Exchange Act.

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5.8    Use of Proceeds.  The proceeds of the Advances and the Letters of Credit shall be used by the Borrowers solely in accordance with Section 2.19.
5.9    Environmental.
(a)    Environmental Disclosure.  The Lead Borrower will deliver to the Administrative Agent (and the European Administrative Agent with respect to any of the following related to or affecting a European Credit Party):
(i)    as soon as practicable following receipt thereof, final copies of all environmental audits, assessments, investigations, analyses and reports prepared by personnel of the Lead Borrower or any of its Subsidiaries, independent consultants, Governmental Authorities, or any other Person with respect to significant environmental matters at any Operating Facility or with respect to any Environmental Claims that could reasonably be expected to have a Material Adverse Effect;
(ii)    promptly upon the occurrence thereof, written notice describing in reasonable detail (1) any Release required to be reported by the Lead Borrower or any of its Subsidiaries to any Governmental Authority under any applicable Environmental Laws, (2) any remedial action taken by the Lead Borrower or any other Person in response to (A) any Hazardous Materials Activities the existence of which could reasonably be expected to result in one or more Environmental Claims having, individually or in the aggregate, a Material Adverse Effect, or (B) any Environmental Claims that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect, and (3) the Lead Borrower’s discovery of any occurrence or condition on any real property adjoining or in the vicinity of any Operating Facility that could cause such Operating Facility or any part thereof to be subject to any material restrictions on the ownership, occupancy, transferability or use thereof under any Environmental Laws;
(iii)    as soon as practicable following the sending or receipt thereof by the Lead Borrower or any of its Subsidiaries, a copy of any and all material written communications with respect to (1) any Environmental Claims that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect, (2) any Release required to be reported by the Lead Borrower or any of its Subsidiaries to any Governmental Authority pursuant to Environmental Law, and (3) any request for information from any Governmental Authority that suggests such Governmental Authority is investigating whether the Lead Borrower or any of its Subsidiaries may be potentially responsible for any Hazardous Materials Activity under Environmental Law;
(iv)    prompt written notice describing in reasonable detail (1) any proposed acquisition of stock, assets, or property by the Lead Borrower or any of its Subsidiaries that could reasonably be expected to (A) expose the Lead Borrower or any of its Subsidiaries to, or result in, Environmental Claims that could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect or (B) adversely affect the ability of the Lead Borrower or any of its Subsidiaries to maintain in full force and effect all material Governmental Authorizations required under any Environmental Laws for their respective operations and (2) any proposed action to be taken by the Lead Borrower or any of its Subsidiaries to modify their respective operations in a manner that could reasonably be 

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expected to subject the Lead Borrower or any of its Subsidiaries to any additional material obligations or requirements under any Environmental Laws; and
(v)    with reasonable promptness, such other documents and information as from time to time may be reasonably requested by the Administrative Agent or European Administrative Agent in relation to any matters disclosed pursuant to this Section 5.9(a).
(b)    Hazardous Materials Activities, Etc.  Each Credit Party shall promptly take, and shall cause each of its Subsidiaries promptly to take, any and all actions necessary to (i) cure any violation of applicable Environmental Laws by such Credit Party or its Subsidiaries that could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, and (ii) make an appropriate response to any Environmental Claim against such Credit Party or any of its Subsidiaries and discharge any obligations it may have to any Person thereunder where failure to do so could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.  Without limiting the foregoing, if an Event of Default is continuing or if any Agent at any time has a reasonable basis to believe that there exist any non-compliance with Environmental Laws by any Credit Party or its Subsidiaries or that there exist any environmental liabilities, in each case, that could have, or could reasonably be expected to have, in the aggregate, a Material Adverse Effect, and the respective Credit Party or Subsidiary has not cured or taken reasonable steps to perform the actions necessary to cure, such Event of Default or noncompliance with or liability under Environmental Law within thirty (30) days of receipt of written notice from such Agent, then such Agent can require the relevant Credit Party or Subsidiary to promptly engage a reputable environmental consulting firm reasonably acceptable to such Agent to perform an environmental audit and/or assessment, including, solely during the existence of an Event of Default, subsurface sampling of soil and groundwater, of the relevant Real Estate Asset(s) and to summarize the results in a report (a copy of which shall be provided to such Agent in a form and substance reasonably acceptable to the such Agent).  If such Credit Party or Subsidiary fails to perform the environmental audits, assessments or reports required by this Section, any Agent may, but is not required to, cause the performance of such work, and the Credit Party and its Subsidiaries grant each Agent reasonable access during normal business hours to the relevant Real Estate Asset(s) to perform such audits and/or assessments.
5.10    Additional Collateral and Guarantees.  In the event that any Person becomes (I) a Domestic Subsidiary (other than an Immaterial Subsidiary), the Lead Borrower shall promptly cause such Domestic Subsidiary (a) to become a US Guarantor hereunder (and, at the request of the Lead Borrower and with the consent of the Administrative Agent, a US Borrower hereunder), (b) to become a Grantor under the US Pledge and Security Agreement by executing and delivering to the Administrative Agent and the Collateral Agent a Counterpart Agreement and (c) to take all such actions and execute and deliver, or cause to be executed and delivered, all such documents, instruments, agreements, opinions and certificates necessary or advisable to grant to the Collateral Agent for the benefit of the Secured Parties a perfected security interest in the US Collateral described in the applicable US Collateral Documents with respect to such new Domestic Subsidiary, including the filing of UCC financing statements in such jurisdictions within any applicable time limit as may be required by the US Collateral Documents or by any Requirement of Law or as may reasonably be requested by the Collateral Agent, (II) a Canadian Subsidiary (other than an Immaterial Subsidiary), the Lead Borrower shall promptly cause such Canadian Subsidiary (a) to become a Canadian Guarantor hereunder (and, at the request of the Lead Borrower and with the consent of the Administrative Agent, a Canadian Borrower hereunder), (b) to become a Grantor under the Canadian Pledge and Security Agreement by executing and delivering to the Administrative Agent and the Collateral Agent a Counterpart Agreement and (c) to take all such actions and execute and deliver, or cause to be executed and delivered, all such documents, instruments, agreements, opinions and certificates necessary or advisable to grant to the Collateral Agent for the benefit of the Secured Parties a perfected security interest in the Canadian Collateral described in the 

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applicable Canadian Collateral Documents with respect to such new Canadian Subsidiary, including the filing of PPSA financing statements in such jurisdictions within any applicable time limit as may be required by the Canadian Collateral Documents or by any Requirement of Law or as may reasonably be requested by the Collateral Agent, and (III) a European Subsidiary (other than an Immaterial Subsidiary), the European Lead Borrower shall promptly cause such European Subsidiary (a) to become a European Guarantor hereunder (and, at the request of the European Lead Borrower and with the consent of the European Administrative Agent, a European Borrower hereunder), (b) to become a Grantor under the Collateral Documents by executing and delivering to the European Administrative Agent and the European Collateral Agent a Counterpart Agreement and European Collateral Documents and (c) to take all such actions and execute and deliver, or cause to be executed and delivered, all such documents, instruments, agreements, opinions and certificates necessary or advisable to grant to the European Collateral Agent for the benefit of the Secured Parties a perfected security interest in the European Collateral described in the applicable European Collateral Documents with respect to such new European Subsidiary, including the filing of financing statements (or local law equivalents) in such jurisdictions, if applicable,  within any applicable time limit as may be required by the European Collateral Documents or by any Requirement of Law or as may reasonably be requested by the European Collateral Agent.  With respect to each Person that becomes a Subsidiary of the Lead Borrower, the Lead Borrower shall promptly send to the Administrative Agent written notice setting forth with respect to such Person (i) the date on which such Person became a Subsidiary of the Lead Borrower and (ii) all of the information required to be set forth in Schedules 4.1 and 4.2 with respect to all Subsidiaries of the Lead Borrower, and such written notice shall be deemed to supplement to supplement Schedules 4.1 and 4.2 for purposes hereof.  Notwithstanding the foregoing provisions of this Section 5.10, no more than 65% of the total voting power of the Capital Stock of each first tier Foreign Subsidiary and each Disregarded Domestic Subsidiary of any Credit Party shall be required to be pledged to secure, or to directly or indirectly provide security for, any Obligation owed by a US Credit Party in respect of the Obligations of another US Credit Party (provided that this limitation shall not apply to any Guaranty by the US Credit Parties of the Canadian Obligations).
5.11    Additional Material Real Estate Assets.  In the event that any Credit Party acquires, leases or subleases, as applicable, a Material Real Estate Asset or a Real Estate Asset owned, leased or subleased on the Closing Date becomes a Material Real Estate Asset and such interest has not otherwise been made subject to the Lien of the Collateral Documents in favor of the Collateral Agent, for the benefit of the Secured Parties, then such Credit Party, as soon as practicable but in no event later than twenty (20) days after acquiring, leasing or subleasing, as applicable, such Material Real Estate Asset (as such date may be extended by the Collateral Agent in its sole discretion), shall take all such actions and execute and deliver, or cause to be executed and delivered, all such Mortgages, UCC financing statements, title policies, surveys, flood determinations (if applicable), Recorded Documents (if applicable), documents, instruments, agreements, opinions and certificates with respect to each such Material Real Estate Asset that the Collateral Agent or European Collateral Agent, as applicable, shall reasonably request to create in favor of the Collateral Agent or European Collateral Agent, as applicable, for the benefit of the Secured Parties, a valid and, subject to any filing and/or recording referred to herein, perfected lien and security interest in such Material Real Estate Assets. The applicable Credit Party shall use its commercially reasonable efforts to cause a Landlord Personal Property Collateral Access Agreement and a Landlord Consent and Estoppel to be executed by the applicable landlord and delivered to the Collateral Agent or European Collateral Agent, as applicable, (i) to the extent not previously delivered, within ninety (90) days after the Closing Date (as such date may be extended by the Collateral Agent or European Collateral Agent, as applicable, in its sole discretion) with respect to any Leasehold Property listed on Schedule 4.13(b) as a Leasehold Property and located in the United States, Canada and with respect to which aggregate payments under the terms of such lease are $500,000 or more per annum, and (ii) within ninety (90) days after the acquisition of interest therein (as such date may be extended by the Collateral Agent or European Collateral Agent, as applicable, in its sole discretion), any 

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other Leasehold Property constituting a Material Real Estate Asset.  In addition to the foregoing, the Applicable Lead Borrower shall, at the request of the Requisite Lenders, deliver, from time to time, to the Applicable Agent such appraisals as are required by law or regulation of Real Estate Assets with respect to which the Collateral Agent or European Collateral Agent, as applicable, has been granted a Lien.
5.12    Deposit Accounts; Securities Accounts. (a) The (x) the Lead Borrower shall and shall cause each of its Domestic Subsidiaries, (y) the Canadian Borrowers shall and shall cause each of their Canadian Subsidiaries and (z) the European Borrowers shall and shall cause each of their European Subsidiaries to (i) deposit in an Approved Deposit Account all cash received by them (other than cash in any Immaterial Account), (ii) not establish or maintain any Securities Account (other than any Immaterial Account) that is not a Control Account and (iii) not establish or maintain any Deposit Account (other than any Immaterial Account) that is not with a Deposit Account Bank.  Each Credit Party shall instruct all account debtors of such Credit Party to remit all payments in Dollars, Canadian Dollars, Pounds Sterling or Euros, as applicable, to the applicable “P.O. Boxes” or “Lockbox Addresses” of the applicable Deposit Account Bank, or to remit such payments to the applicable Deposit Account Bank by electronic settlement, electronic wire transfer or otherwise, with respect to all accounts of such account debtor, which remittances shall be collected, or transfers credited, by the applicable Deposit Account Bank and deposited into an Approved Deposit Account.  All amounts received by any Credit Party and any Deposit Account Bank in respect of any account of an account debtor of any Credit Party shall upon receipt be deposited into an Approved Deposit Account.
(b)    Each Deposit Account Control Agreement relating to an Approved Deposit Account shall (unless otherwise agreed by the Applicable Agent in its sole discretion) include provisions that allow, during any Cash Dominion Period, for all collected amounts held in such Approved Deposit Account from and after the date requested by the Applicable Agent, to be sent by ACH or wire transfer or similar electronic transfer no less frequently than once per Business Day to one or more accounts maintained by the Applicable Agent or an Affiliate thereof. Subject to the terms of the respective Collateral Documents, all amounts received by the Applicable Agent shall be applied (and allocated) on a daily basis in accordance with Section 2.7(e).
(c)    At any time at the request of the European Administrative Agent in its sole discretion following either (y) the occurrence and continuance of an Event of Default or Default or (z) during any Cash Dominion Period, the European Credit Parties shall (a) either (i) immediately cause all of their European Approved Deposit Accounts (each an “Existing Blocked Account”) to be transferred to the name of the European Administrative Agent or (ii) to the extent such Existing Blocked Accounts cannot be transferred to the European Administrative Agent, promptly open new Approved Deposit Accounts with (and, at the discretion of the European Administrative Agent, in the name of) the European Administrative Agent (such new bank accounts being Approved Deposit Accounts under and for the purposes of this Agreement), and (b) if new Approved Deposit Accounts have been established pursuant to this Section (each a “New Blocked Account”) ensure that the proceeds of all Receivables owing to them will immediately be re-directed to the New Blocked Accounts.  Until all proceeds of Receivables have been redirected to the New Blocked Accounts, each European Credit Party shall cause all amounts on deposit in any Existing Blocked Account to be transferred to a New Blocked Account at the end of each Business Day, provided that if any such European Credit Party does not instruct such re-direction or transfer, each of them hereby authorizes the European Administrative Agent to give such instructions on their behalf to the applicable Customers and/or the account bank holding such Existing Blocked Account (as applicable).
(d)    At any time at the request of the European Administrative Agent in its sole discretion following (y) the occurrence and continuance of an Event of Default or Default or (z) any Cash Dominion Period, each European Borrower agrees that if any of its Customers have not previously received notice of 

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the security interest of the European Administrative Agent over its Receivables, it shall promptly give notice to such Customers and if the relevant European Credit Party does not serve such notice, each of them hereby authorizes the European Administrative Agent to serve notice on their behalf.
(e)    In the event that (i) any Credit Party or any Deposit Account Bank or Securities Intermediary at a financial institution at which a Control Account or Approved Deposit Account is open shall terminate a Deposit Account Control Agreement or a Securities Account Control Agreement for any reason, (ii) the Collateral Agent or European Collateral Agent, as applicable, shall demand such termination as a result of the Deposit Account Bank or the Securities Intermediary at which a Control Account or Approved Deposit Account is open to comply with the applicable Collateral Document or (iii) the Collateral Agent or European Collateral Agent, as applicable, determines in its sole discretion that the financial condition of the Deposit Account Bank or the Securities Intermediary at which a Control Account or Approved Deposit Account is open has materially deteriorated, the Applicable Lead Borrower shall, and shall cause the applicable Domestic Subsidiary, Canadian Subsidiary or European Subsidiary, as applicable, to notify all of its obligors that were making payments to such terminated Deposit Account or Control Account, as the case may be, to make all future payments to another Approved Deposit Account or Control Account, as the case may be, in each case subject to a First Priority security interest in favor of the Collateral Agent or European Collateral Agent, as applicable, for the benefit of the Secured Parties (subject only to Permitted Liens).
(f)    The parties hereto hereby acknowledge, confirm and agree that the implementation of the cash management arrangements contemplated herein is a contractual right provided to the Agents and the Lenders hereunder in order for the Agents and the Lenders to manage and monitor their collateral position and not a proceeding for enforcement or recovery of a claim, or pursuant to, or an enforcement of, any security or remedies whatsoever, that the cash management arrangements contemplated herein are critical to the structure of the lending arrangements contemplated herein, that the Lenders are relying on the Borrowers’ and the Guarantors’ acknowledgement, confirmation and agreement with respect to such cash management arrangements in making accommodations of credit available to the Borrowers and in particular that any accommodations of credit are being provided by the Lenders to the Borrower strictly on the basis of a borrowing base calculation to fully support and collateralize any such accommodations of credit hereunder.
5.13    Further Assurances.  To the extent not delivered to the Collateral Agent or European Collateral Agent, as applicable, on or before the Closing Date, the Applicable Lead Borrower agrees to, and to cause each of the other Credit Parties to, promptly do each of the following:
(a)    execute and deliver to the Collateral Agent or European Collateral Agent, as applicable, such Collateral Documents and amendments to Collateral Documents and to take all such actions and execute and deliver, or cause to be executed and delivered, all such documents, instruments, agreements, opinions and certificates necessary or advisable to grant to the Collateral Agent or European Collateral Agent, as applicable, for the benefit of the Secured Parties a perfected security interest (or applicable equivalent under foreign law) in the assets and Securities of such Credit Party, including the filing of UCC and PPSA financing statements (or the applicable equivalent) in such jurisdictions as may be required by the Collateral Documents or as may reasonably be requested by the Collateral Agent or European Collateral Agent, as applicable,;
(b)    deliver to the Collateral Agent the certificates (if any) representing the pledged Securities, together with in the case of certificated Securities, undated stock or equivalent powers endorsed in blank;

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(c)    if reasonably requested by the Collateral Agent or European Collateral Agent, as applicable, deliver to the Collateral Agent or European Collateral Agent, as applicable, legal opinions relating to the matters described above, which opinions shall be in form and substance reasonably satisfactory to the Collateral Agent or European Collateral Agent, as applicable; and
(d)    notwithstanding the foregoing clause (a) or clause (b), no more than 65% of the total voting power of the Capital Stock of each first tier Foreign Subsidiary and each Disregarded Domestic Subsidiary of any Credit Party shall be required to be pledged to secure, or to directly or indirectly provide security for, any Obligation owed by a US Credit Party in respect of the Obligations of another US Credit Party (provided that this limitation shall not apply to any Guaranty by the US Credit Parties of the Canadian Obligations).
5.14    Intellectual Property.  The Lead Borrower and each of its Subsidiaries will continue to own or possess the right to use, free from any restrictions, all patents, trademarks, copyrights, trade secrets and domain names that are used in the operation of their respective businesses as presently conducted and as proposed to be conducted, except to the extent the failure to so own or possess could not reasonably be expected to have a Material Adverse Effect.
5.15    Know-Your-Customer Rules.
If:
(i)    (A)    the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation made after the Closing Date;
(B)    any change in the status of a Credit Party after the Closing Date; or
(C)    a proposed assignment or transfer by a Lender of any of its rights and obligations under this Agreement to a party that is not a Lender prior to such assignment or transfer,
obliges the Administrative Agent, the European Administrative Agent or any Lender (or, in the case of paragraph (C) above, any prospective new Lender) to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, each Credit Party shall promptly upon the request of the Administrative Agent, the European Administrative Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Administrative Agent or the European Administrative Agent (for itself or on behalf of any Lender) or any Lender (for itself or, in the case of the event described in paragraph (C) above, on behalf of any prospective new Lender) in order for the Administrative Agent, the European Administrative Agent such Lender or, in the case of the event described in paragraph (C) above, any prospective new Lender to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Credit Documents.
(ii)    Each Lender shall promptly upon the request of the Administrative Agent or the European Administrative Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Administrative Agent (for itself) or the European Administrative Agent in order for the Administrative Agent to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks 

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under all applicable laws and regulations pursuant to the transactions contemplated in the Credit Documents.
(iii)    The Lead Borrower shall, by not less than ten (10) Business Days’ prior written notice to the Applicable Agent, notify the Applicable Agent (which shall promptly notify the Lenders) that one of its Subsidiaries shall become a Guarantor or Borrower pursuant to Section 5.10.
Following the giving of any notice pursuant to paragraph (iii) above, if the accession of such Subsidiary obliges the Applicable Agent or any Lender to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, the Lead Borrower shall promptly upon the request of the Applicable Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Applicable Agent (for itself or on behalf of any Lender) or any Lender (for itself or on behalf of any prospective new Lender) in order for the Applicable Agent or such Lender or any prospective new Lender to carry out and be satisfied it has complied with the results of all necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the accession of such Subsidiary to this Agreement.
5.16    Pari Passu Ranking.  Each Credit Party will, and will cause each of its Subsidiaries to, ensure that its payment obligations under each of the Credit Documents rank and will at all times rank at least pari passu in right and priority of payment with all its other present and future unsubordinated indebtedness (actual or contingent) except indebtedness preferred solely by operation of law.
5.17    Post-Closing Matters. Except as otherwise agreed by both the Administrative Agent and the European Administrative Agent in their sole discretion, the Lead Borrower shall, and shall cause each of its Subsidiaries to, deliver each of the documents, instruments and agreements and take each of the actions set forth in Schedule 5.17 within the time periods set forth therein (or such longer time periods as determined by the Administrative Agent and the European Administrative Agent in their sole discretion).
5.18    Performance Obligation. The Lead Borrower will, and will cause each of its Subsidiaries to, perform all of its obligations under the terms of each Contractual Obligation by which it is bound or any of its property is subject, except such non-performances as could not, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
5.19    Borrowing Base and Related Matters.
(a)    Borrowing Base Certificates.  On the Closing Date, the Lead Borrower shall deliver to the European Administrative Agent an initial Borrowing Base Certificate setting forth the European Borrowing Base and each Individual European Borrowing Base (with supporting calculations in reasonable detail), which shall be prepared as of January 31, 2014.  The Lead Borrower shall (i) unless clause (ii) below applies, on or before the twentieth (20th) day of March 2014 and each consecutive month thereafter after the Closing Date, (ii) during any period in which a Weekly Borrowing Base Period is in effect, on or before Wednesday of each week, (iii) at the time of the consummation of any Asset Sale involving Eligible Receivables and/or Eligible Inventory and (iv) within five (5) Business Days after any casualty event or condemnation (or similar) event involving Eligible Inventory with an aggregate value of $1,000,000 or more, in each case, deliver to the Applicable Agent a Borrowing Base Certificate setting forth each applicable Borrowing Base (in each case with supporting calculations in reasonable detail), which shall be prepared as of the last Business Day of the preceding month (or, if any such Borrowing Base Certificate is delivered more frequently than monthly, as of the last Business Day of the week preceding such delivery); provided 

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that any Borrowing Base Certificate delivered pursuant to preceding clauses (iii) and (iv) shall be prepared on a pro forma basis to exclude any Eligible Receivables or Eligible Inventory the subject of any such event.  Each such Borrowing Base Certificate shall include such supporting information as may be reasonably requested from time to time by the Applicable Agent. All calculations of Global Excess Availability and Global Undrawn Availability in any Borrowing Base Certificate shall be made by the Lead Borrower and certified by an Authorized Officer of the Lead Borrower; provided that the Administrative Agent (and, in connection with the European Facility components thereof, the European Administrative Agent), may from time to time review and adjust any such calculation in consultation with the Lead Borrower to the extent the calculation is not made in accordance with this Agreement.  By the twentieth (20th) day after the end of each Fiscal Quarter, the (y) Lead Borrower shall deliver (i) to the Administrative Agent an officer’s certificate setting forth a calculation of the Domestic Quarterly Average Undrawn Availability for the calendar quarter most recently ended and the corresponding Applicable Margins and Unused Line Fee Rate, and (ii) updates, if any, to the Collateral Questionnaire to reflect all locations of Inventory at the end of the Fiscal Quarter then ended and (z) the European Lead Borrower shall deliver (i) to the European Administrative Agent an officer’s certificate setting forth a calculation of the European Quarterly Average Undrawn Availability for the calendar quarter most recently ended and the corresponding Applicable Margins and Unused Line Fee Rate, and (ii) updates, if any, to the Collateral Questionnaire to reflect all locations of Inventory at the end of the Fiscal Quarter then ended.
(b)    Records and Schedules of Accounts.  Each (i) US Borrower and Canadian Borrower shall keep accurate and complete records of its Receivables, including all payments and collections thereon, and shall submit to the Administrative Agent sales, collection, reconciliation and other reports in form satisfactory to the Administrative Agent on a periodic basis (but not more frequently than monthly) and (ii) European Borrower shall keep accurate and complete records of its Receivables, including all payments and collections thereon, and shall submit to the European Administrative Agent sales, collection, reconciliation and other reports in form satisfactory to the European Administrative Agent on a periodic basis (but not more frequently than monthly). Each (i) US Borrower and Canadian Borrower shall also provide to the Administrative Agent, on or before the twentieth (20th) day of each month, commencing with the first full month ending after the Closing Date, a detailed aged trial balance of all Receivables as of the end of the preceding month, specifying each Receivable’s account debtor name and the amount, invoice date and due date as the Administrative Agent may reasonably request and (ii) European Borrower shall also provide to the European Administrative Agent, on or before the twentieth (20th) day of each month, commencing with the first full month ending after the Closing Date, a detailed aged trial balance of all Receivables as of the end of the preceding month, specifying each Receivable’s account debtor name and the amount, invoice date and due date as the European Administrative Agent may reasonably request.
(c)    Notice of Dominion Period or Compliance Period.  Promptly, and in any event within two (2) Business Days after any Authorized Officer of the Lead Borrower or European Lead Borrower obtains knowledge thereof, the Applicable Lead Borrower shall deliver to the Applicable Agent (and such Applicable Agent shall notify the other Applicable Agent) notice of the commencement of a Cash Dominion Period, Covenant Trigger Period or Weekly Borrowing Base Period.
(d)    Field Examinations and Appraisals. The Borrowers agree that the Applicable Agent (and its agents, representatives, consultants and appraisers) shall be permitted to conduct from time to time collateral field examinations and inventory appraisals with respect to the assets included in the applicable Borrowing Base (and related assets); provided that each Applicable Agent shall only be permitted to conduct two (2) collateral field examinations and one inventory appraisal at the Borrowers’ expense in any twelve (12) month period with respect to each of the Domestic Facility and the European Facility; provided further, that (x) if at any time Domestic Excess Availability is less than thirty percent (30.0%) of the lesser of (A) 

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the Maximum Domestic Credit and (B) the Domestic Borrowing Base, up to one additional collateral field examination and up to one additional inventory appraisal shall be permitted by the Administrative Agent in such twelve (12) month period at the Borrowers’ expense with respect to the Domestic Facility, (y) if at any time European Excess Availability is less than thirty percent (30.0%) of the lesser of (A) the Maximum European Credit and (B) the European Borrowing Base, up to one additional collateral field examination and up to one additional inventory appraisal shall be permitted by the European Administrative Agent in such twelve (12) month period at the Borrowers’ expense with respect to the European Facility and (z) during the existence and continuance of an Event of Default, there shall be no limit on the number of additional collateral field examinations and inventory appraisals, at the Borrowers’ expense. Neither any Agent nor any Lender shall have any duty to any Borrower to make any inspection, nor to share any results of any inspection, appraisal or report with any Borrower.  Each of the Borrowers acknowledges that all inspections, appraisals and reports are prepared by the Applicable Agent and Lenders for their purposes and the Borrowers shall not be entitled to rely upon them.
(e)    Expenses.  Each Borrower will reimburse each Applicable Agent for all reasonable out-of-pocket costs and expenses of each Applicable Agent in connection with (i) examinations of any Borrower’s books and records or any other financial or Collateral matters as each Applicable Agent deems appropriate; and (ii) Collateral field examinations and inventory appraisals of Collateral comprising the Borrowing Base; in each case subject to the limitations on such examinations, audits and appraisals permitted under preceding clause (d).  Subject to and without limiting the foregoing, the Borrowers specifically agree to pay each Applicable Agent Agent’s then standard charges for examination activities, including the standard charges of the Administrative Agent’s internal appraisal group.  This Section shall not be construed to limit any Agent’s right to use third parties for such purposes.
(f)    Each of the Receivables shall be a bona fide and valid account representing a bona fide indebtedness incurred by the Customer therein named, for a fixed sum as set forth in the invoice relating thereto (provided immaterial or unintentional invoice errors shall not be deemed to be a breach hereof) with respect to an absolute sale or lease and delivery of goods upon stated terms of a European Credit Party, or work, labor or services theretofore rendered by a European Credit Party as of the date each Receivable is created.  Same shall be due and owing in accordance with the applicable European Credit Party’s terms of sale without dispute, setoff or counterclaim except as may be stated on the accounts receivable schedules delivered by European Credit Parties to European Administrative Agent.  
(g)    Each Customer, to the best of each European Credit Party’s knowledge, as of the date each Receivable is created, is and will be solvent and able to pay all Receivables on which the Customer is obligated in full when due.  With respect to such Customers of any European Credit Party who are not solvent, such European Credit Party has set up on its books and in its financial records bad debt reserves adequate to cover such Receivables.
(h)    Neither European Administrative Agent nor any Lender shall, under any circumstances or in any event whatsoever, have any liability for any error or omission or delay of any kind occurring in the settlement, collection or payment of any of the Receivables or any instrument received in payment thereof, or for any damage resulting therefrom, unless such liability arises from European Administrative Agent’s or such Lender's willful misconduct or gross negligence as finally determined by a court of competent jurisdiction.
5.20    European Accounts. Within one hundred and twenty (120) days after the Closing Date, the European Credit Parties shall cause the European Administrative Agent to be the European Credit Parties’ principal depository and disbursement bank and shall have opened the Approved Deposit Accounts for each 

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European Credit Party at the branch specified by European Administrative Agent.  Within the earlier to occur of (i) ten (10) days after opening such Approved Deposit Accounts and (ii) one hundred twenty (120) days after Closing Date, the European Credit Parties shall direct all Receivables of such Credit Party to be paid to the Approved Deposit Accounts held with the European Administrative Agent.
SECTION 6.    NEGATIVE COVENANTS
Each Credit Party covenants and agrees that, so long as any Revolving Commitment is in effect and until payment in full of all Obligations (other than Hedging Obligations and Cash Management Obligations) and cancellation or expiration of all Letters of Credit, such Credit Party shall perform, and shall cause each of its Subsidiaries to perform, all covenants in this Section 6.
6.1    Indebtedness.  No Credit Party shall, nor shall it permit any of its Subsidiaries to, directly or indirectly, create, incur, assume, or otherwise become or remain directly or indirectly liable with respect to any Indebtedness or guaranty any Indebtedness, except:
(a)    the Obligations;
(b)    Indebtedness (other than as described in clause (q) below) of any of its Subsidiaries to the Lead Borrower or to any other Subsidiary of the Lead Borrower, or of the Lead Borrower owed to any Subsidiary of the Lead Borrower; provided, (i) any such Indebtedness of (x) any Subsidiary of the Lead Borrower that is a non-Credit Party payable to a Credit Party shall be permitted under Section 6.7(b) and (y) any Canadian Credit Party or European Credit Party payable to a US Credit Party shall be permitted under Section 6.7(b), (ii) any such Indebtedness payable to a Credit Party shall be made in the Ordinary Course, shall be evidenced by promissory notes and all such notes shall be subject to a perfected First Priority Lien pursuant to the applicable Collateral Documents, which notes shall be executed and delivered as soon as commercially practicable after the incurrence of such Indebtedness, (iii) all such Indebtedness of any Credit Party shall be unsecured and subordinated in right of payment to the payment in full of the Obligations pursuant to the terms of the Affiliate Subordination Agreement, (iv) any payment of such Indebtedness by any US Guarantor Subsidiary under any guaranty of the US Obligations shall result in a pro tanto reduction of the amount of any such Indebtedness owed by such US Credit Party to the Lead Borrower or to any of its Subsidiaries for whose benefit such payment is made, (v) any payment of such Indebtedness by any Canadian Guarantor Subsidiary under any guaranty of the Canadian Obligations shall result in a pro tanto reduction of the amount of any such Indebtedness owed by such Canadian Credit Party to the Lead Borrower or to any of its Subsidiaries for whose benefit such payment is made, and (vi) any payment of such Indebtedness by any European Guarantor Subsidiary under any guaranty of the European Obligations shall result in a pro tanto reduction of the amount of any such Indebtedness owed by such European Credit Party to the Lead Borrower or to any of its Subsidiaries for whose benefit such payment is made;
(c)    unsecured Debt (including Subordinated Debt) of the Lead Borrower (which may be guaranteed on a like basis by the US Credit Parties); provided, that (i) no Default or Event of Default is continuing under this Agreement or would result from such issuance, (ii) after giving effect to such issuance (as determined in accordance with Section 1.4(e)), the Leverage Ratio shall not be greater than 4.75:1.00, calculated on a pro forma basis as of the last day of the most recently ended four Fiscal Quarter period for which financial statements have been delivered pursuant to Section 5.1, (iii) the proceeds of such issuance shall be used for Permitted Acquisitions, to fund Capital Expenditures permitted under this Agreement or to prepay the Term Loans in accordance with the terms of the Term Credit Agreement, (iv) such Debt shall have a maturity of not earlier than six (6) months after the Revolving Commitment Termination Date, (v) the documentation relating to such Debt shall not permit or provide for any scheduled amortization (or 

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similar) payments prior to the Revolving Commitment Termination Date and (vi) the documentation relating to such Debt shall not contain any covenant or event of default that is either (x) not substantially provided for in the Term Credit Agreement or (y) more favorable to the holder of such Debt in any material respect than the comparable covenant or event of default set forth in the Term Credit Agreement, and, with respect to Subordinated Debt, shall contain customary subordination provisions pursuant to which such Subordinated Debt is subordinate to the prior payment in full of the Obligations or shall otherwise be subject to a subordination agreement in form and substance satisfactory to the Agents;
(d)    Indebtedness incurred by the Lead Borrower or any of its Subsidiaries arising from agreements providing for indemnification, adjustment of purchase price or similar obligations, or from guaranties or letters of credit, surety bonds or performance bonds securing the performance of the Lead Borrower or any of its Subsidiaries pursuant to such agreements, in connection with Permitted Acquisitions or permitted dispositions of any business, assets or Subsidiary of the Lead Borrower or any of its Subsidiaries;
(e)    Indebtedness which may be deemed to exist pursuant to any performance, surety, statutory, appeal or similar obligations incurred in the Ordinary Course;
(f)    Indebtedness in respect of netting services, overdraft protections and otherwise in connection with deposit accounts;
(g)    Indebtedness of the US Credit Parties under the Term Credit Documents in an aggregate principal amount not to exceed at any time outstanding $200,000,000; provided that such amount may be increased by the aggregate principal amount of any Facility Increase (as defined in the Term Credit Agreement as in effect on the Original Closing Date) so long as the aggregate principal amount of all Facility Increases does not exceed the aggregate principal amount permitted to be incurred under Section 2.21 of the Term Credit Agreement (as in effect on the Original Closing Date) (in each case, as reduced by any prepayments or repayments or principal thereof after the Original Closing Date);
(h)    guaranties or the provision of other credit support by (x) a US Credit Party of Indebtedness of another US Credit Party with respect to Indebtedness otherwise permitted to be incurred pursuant to this Section 6.1, (y) a Canadian Credit Party of Indebtedness of another Canadian Credit Party with respect to Indebtedness otherwise permitted to be incurred pursuant to this Section 6.1 and (z) a European Credit Party of Indebtedness of another European Credit Party with respect to Indebtedness otherwise permitted to be incurred pursuant to this Section 6.1;
(i)    Indebtedness, including the ability to draw on commitments to incur Indebtedness, described in Schedule 6.1(i), but not any extensions, renewals or replacements of such Indebtedness except (i) renewals and extensions expressly provided for in the agreements evidencing any such Indebtedness as the same are in effect on the date of this Agreement and (ii) refinancings and extensions of any such Indebtedness if the terms and conditions thereof are not materially less favorable, taken as a whole, to the obligor thereon or to the Lenders than the Indebtedness being refinanced or extended, and the average life to maturity thereof is greater than or equal to that of the Indebtedness being refinanced or extended (provided that a certificate of an Authorized Officer of the Lead Borrower delivered to the Administrative Agent at least five (5) Business Days prior to the incurrence of such Indebtedness, together with a reasonably detailed description of the material terms and conditions of such Indebtedness or drafts of the documentation relating thereto, stating that the Lead Borrower has determined in good faith that such terms and conditions satisfy the foregoing requirement shall be conclusive evidence that such terms and conditions satisfy the foregoing requirement unless the Administrative Agent notifies the Lead Borrower within such five (5) Business Day period that it disagrees with such determination (including a reasonable description of the basis upon which 

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it disagrees)); provided, such Indebtedness permitted under the immediately preceding clause (i) or (ii) above shall not (A) include Indebtedness of an obligor that was not an obligor with respect to the Indebtedness being extended, renewed or refinanced, (B) exceed in a principal amount the Indebtedness being renewed, extended or refinanced, except as to fees and expenses at refinancing or (C) be incurred, created or assumed if any Default or Event of Default has occurred and is continuing or would result therefrom;
(j)    Indebtedness with respect to Capital Leases or purchase money Indebtedness (including any Attributable Indebtedness incurred in connection with any Sale and Lease Back Transaction that is otherwise permitted under clause (i) of Section 6.11) in an amount not to exceed in the aggregate (including any Indebtedness acquired in connection with a Permitted Acquisition) at any time the greater of $50,000,000 and six and one-half percent (6.5%) of the Consolidated Total Assets of the Lead Borrower; provided, any such purchase money Indebtedness shall be secured only by the asset(s) acquired in connection with the incurrence of such Indebtedness (other than Inventory);
(k)    other Indebtedness of the Lead Borrower and its Subsidiaries in an aggregate principal amount not to exceed at any time $30,000,000;
(l)    (i) Indebtedness under the Factoring Agreements to which the Lead Borrower or any Subsidiary is party on the Closing Date as set forth on Schedule 1.1(a), and (ii) additional Indebtedness under Factoring Agreements in an aggregate amount not to exceed at any time $25,000,000;
(m)    working capital facilities of any Foreign Subsidiary (other than a Canadian Subsidiary or a European Subsidiary);
(n)    Hedging Obligations entered into for the purpose of hedging risks associated with the operations of the Lead Borrower and its Subsidiaries and not for speculative purposes;
(o)    Indebtedness of the US Credit Parties under the Senior Notes Documents in an aggregate principal amount not to exceed $236,410,000 (as reduced by any payments or prepayments of principal thereof after the Closing Date);
(p)    provided that no Event of Default shall have occurred and be continuing or would occur as a consequence thereof, any replacement, renewal or refinancing of any Indebtedness described in Sections 6.1(c), (g) and (o) (collectively, the “Permitted Refinancing Indebtedness”) that (i) does not exceed the aggregate principal amount of the Indebtedness being replaced, renewed or refinanced, except as to fees and expenses at refinancing, (ii) does not have a maturity date earlier than the Indebtedness being replaced, renewed or refinanced, (iii) does not rank at the time of such replacement, renewal or refinancing senior to the Indebtedness being replaced, renewed or refinanced, (iv) the obligors in respect of such Permitted Refinancing Indebtedness (including in their capacities as primary obligor and guarantor) are the same as for the Indebtedness being replaced, renewed or refinanced, (v) any Liens securing such Permitted Refinancing Indebtedness are not extended to any property which does not secure the Indebtedness being replaced, renewed or refinanced, (vi) does not have a weighted average life to maturity less than the Indebtedness being replaced, renewed or refinanced and (vii) the terms of such Permitted Refinancing Indebtedness are not materially less favorable, taken as a whole, to the Lead Borrower and its Subsidiaries than the terms of the replaced, renewed or refinanced Indebtedness;
(q)    any intercompany loans advanced by any Credit Party (or any of its Subsidiaries) to any of its Subsidiaries (each an “Intercompany Borrower”) the proceeds of which are applied by the Intercompany Borrower to discharge its obligations under the Existing Credit Agreement; provided, that (i) 

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all such Indebtedness of the Intercompany Borrower shall be evidenced by promissory notes, which notes shall be executed and delivered on or prior to the Closing Date and shall be subject to a perfected First Priority Lien pursuant to the applicable Collateral Documents (other than in the case of the intercompany loan made from Austria GmbH, as lender, to Italia SpA, as borrower, which such intercompany loan shall be evidenced by the Intra-Group On Demand Facility Agreement, dated as of May 26, 2011, between Austria GmbH and Italia SpA, and the receivables and related rights and claims under such agreement shall be subject to a perfected First Priority Lien pursuant to the Receivables Pledge Agreement, dated as of the Original Closing Date, between Austria GmbH and the Collateral Agent) and (ii) all such Indebtedness of the Intercompany Borrower shall be unsecured and subordinated in right of payment to the payment in full of the Obligations pursuant to the terms of the applicable promissory notes or an intercompany subordination agreement which shall be entered into on or prior to the Closing Date and shall be in form and substance reasonably satisfactory to the Administrative Agent; and the European Administrative Agent.  
(r)    Indebtedness in the form of a payment or performance bond or letter of credit to secure the payment of (and in an aggregate amount not to exceed) the Xerium Brazil Tax Assessment.
6.2    Liens.  No Credit Party shall, nor shall it permit any of its Subsidiaries to, directly or indirectly, create, incur, assume or permit to exist any Lien on or with respect to any property or asset of any kind (including any document or instrument in respect of goods or accounts receivable) of the Lead Borrower or any of its Subsidiaries, whether now owned or hereafter acquired, or any income or profits therefrom, except:
(a)    Liens in favor of the Collateral Agent or European Collateral Agent for the benefit of the Secured Parties granted pursuant to any Credit Document;
(b)    Liens for Taxes not then due or, if due, obligations with respect to such Taxes that are not at such time required to be paid pursuant to Section 5.3 or which are being contested in good faith by appropriate proceedings promptly instituted and diligently conducted (provided that such contest operates to suspend collection of the contested tax) and for which an adequate reserve has been made in accordance with GAAP;
(c)    statutory Liens of landlords, banks (and rights of set off), of carriers, warehousemen, mechanics, repairmen, workmen and materialmen, and other Liens imposed by law (other than any such Lien imposed pursuant to section 401 (a)(29) or 430 of the Code or by ERISA), in each case incurred in the Ordinary Course (i) for amounts not yet overdue or (ii) for amounts that are overdue and that (in the case of any such amounts overdue for a period in excess of fifteen (15) days) are being contested in good faith by appropriate proceedings, so long as such reserves or other appropriate provisions, if any, as shall be required by GAAP shall have been made for any such contested amounts;
(d)    Liens incurred in the Ordinary Course in connection with workers’ compensation, unemployment insurance and other types of social security, or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids, leases, government contracts, trade contracts, performance and return of money bonds and other similar obligations (exclusive of obligations for the payment of borrowed money or other Indebtedness), so long as no foreclosure, sale or similar proceedings have been commenced with respect to any portion of the Collateral on account thereof;  
(e)    easements, rights of way, restrictions, encroachments, and other minor defects or irregularities in title, in each case which do not and will not interfere in any material respect with the ordinary conduct of the business of the Borrower or any of its Subsidiaries;

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(f)    any (i) interest or title of a lessor or sublessor under any lease of real estate permitted hereunder, (ii) restriction or encumbrance that the interest or title of such lessor or sublessor may be subject to, or (iii) subordination of the interest of the lessee or sublessee under such lease to any restriction or encumbrance referred to in the preceding clause (ii), so long as the holder of such restriction or encumbrance agrees to recognize the rights of such lessee or sublessee under such lease;
(g)    Liens solely on any cash earnest money deposits made by the Lead Borrower or any of its Subsidiaries in connection with any letter of intent or purchase agreement permitted hereunder;
(h)    purported Liens evidenced by the filing of precautionary UCC or PPSA financing statements or, for property located in foreign jurisdictions, the preparation and/or filing of functionally similar documents, relating solely to operating leases of personal property entered into in the Ordinary Course;
(i)    Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods;
(j)    any zoning or similar law or right reserved to or vested in any governmental office or agency to control or regulate the use of any real property;
(k)    (i) non-exclusive licenses of patents, trademarks and other intellectual property rights granted by the Lead Borrower or any of its Subsidiaries in the Ordinary Course and not interfering in any material respect with the ordinary conduct of the business of the Lead Borrower or such Subsidiary and (ii) leases or subleases granted by the Lead Borrower of any of its Subsidiaries to third parties in respect of surplus property (which shall not, for the avoidance of doubt, include any property included in the Borrowing Base or any component definitions) which is not fundamental to the operation of the business in the Ordinary Course; provided that such leases and subleases are on arms- length commercial terms;
(l)    existing Liens described in Schedule 6.2(l) and replacements thereof, so long as the replacement Liens encumber only the assets subject to the Liens being replaced and the replacement Liens secure obligations in an amount no greater than the obligations secured by the Liens being replaced;
(m)    Liens securing Indebtedness permitted pursuant to Sections 6.1(j) and (k); provided, that (i) in the case of Section 6.1(j), any such Lien shall encumber only the asset acquired with the proceeds of such Indebtedness and (ii) such Liens shall not secure Indebtedness permitted pursuant to Section 6.1(k) in an aggregate amount exceeding at any time $25,000,000;
(n)    Liens granted by entities acquired pursuant to Section 6.9 prior to their acquisition and not in contemplation of such acquisition; provided that (i) such Liens were not created in contemplation of such acquisition, (ii) such Lien does not extend to or cover any other assets or property (other than the proceeds or products thereof and after-acquired property subjected to a Lien pursuant to terms existing at the time of such acquisition, it being understood that such requirement shall not be permitted to apply to any property to which such requirement would not have applied but for such acquisition) and (iii) the Indebtedness secured thereby (or, as applicable, any modifications, replacements, renewals or extension thereof) is permitted under Section 6.1; provided, further, that any such Lien securing Indebtedness in an aggregate amount at any time outstanding in excess of $20,000,000 shall be permitted only to the extent that such Lien is discharged within five (5) months of the date of such acquisition.
(o)    subject to the terms of the Intercreditor Agreement, Liens on US Collateral to secure obligations under the Term Credit Documents;

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(p)    Liens in connection with the performance of any response action or remediation pursuant to Environmental Law as the result of the Release of Hazardous Materials at, on or beneath any real property, provided such Lien does not (a) take priority over any Lien granted pursuant to any Collateral Document, and (b) does not materially or adversely affect the value or use of such real property;
(q)    Liens securing Permitted Refinancing Indebtedness, provided that any such Lien shall encumber only the assets that secure the Indebtedness being replaced, renewed or refinanced by such of such Permitted Refinancing Indebtedness;
(r)    existing Liens on a Title Policy delivered pursuant to Section 5.17;
(s)    any Liens arising by operation of law and any lien arising under customary retention of title arrangements of suppliers in the Ordinary Course (other than suppliers of Inventory);
(t)    any Lien arising under the general terms and conditions of banks or Sparkassen (Allgemeine Geschäftsbedingungen der Banken oder Sparkassen) with whom the Lead Borrower or any of its Subsidiaries maintains a banking relationship with a financial institution in Germany;
(u)    Liens on real estate which may not be prohibited to be created pursuant to section 1136 of the German Civil Code (Bürgerliches Gesetzbuch);
(v)    additional Liens (other than on ABL Priority Collateral (as defined in the Intercreditor Agreement)) securing Indebtedness or obligations that do not exceed $25,000,000 (the “Lien Basket Amount”) at any time; provided, that not more than $10,000,000 of the Lien Basket Amount may relate to Liens encumbering assets located in the United States or Canada; and
(w)    Liens securing Indebtedness permitted pursuant to Section 6.1(l); provided that the only assets secured by such Liens are the receivables being sold or otherwise disposed of pursuant to the respective Factoring Agreement.
6.3    Fiscal Year.  No Credit Party shall, nor shall it permit any of its Subsidiaries to, change its Fiscal Year end from December 31st.
6.4    No Further Negative Pledges.  Except with respect to (a) specific property encumbered to secure payment of particular Indebtedness permitted hereunder or to be sold pursuant to an executed agreement with respect to a permitted Asset Sale, (b) restrictions contained in any documents evidencing unsecured Debt or Subordinated Debt permitted pursuant to Section 6.1(c), in the Senior Notes Documents, in the Term Credit Documents and any Permitted Refinancing Indebtedness with respect thereto; provided, that in respect of such unsecured Debt or Subordinated Debt, in the Term Credit Documents and in the Senior Notes Documents and any Permitted Refinancing Indebtedness with respect thereto, such restrictions do not restrict the ability to grant security interests as required under the Credit Documents or any agreement that refinances this Agreement, (c) restrictions by reason of customary provisions restricting assignments, subletting or other transfers contained in leases, licenses and similar agreements entered into in the Ordinary Course (provided that such restrictions are limited to the property or assets secured by such Liens or the property or assets subject to such leases, licenses or similar agreements, as the case may be), (d) restrictions in the agreements relating to Liens permitted to be incurred under Section 6.2 that limit the right of any Credit Party to dispose of or transfer the assets subject to such Liens, (e) provisions limiting the disposition or distribution of assets or property in sale-leaseback agreements, stock sale agreements and other similar agreements, which limitation is applicable only to the assets that are the subject of such agreements, (f) any 

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encumbrance or restriction in connection with an acquisition of property, so long as such encumbrance or restriction relates solely to the property so acquired and was not created in connection with or in anticipation of such acquisition, (g) restrictions imposed by customary provisions in partnership agreements, limited liability company organizational governance documents, joint venture agreements and other similar agreements that restrict the transfer of ownership interest in such partnership, limited liability company, joint venture or similar Person, provided that to the extent such restriction restricts the ability to grant security interests as required under the Credit Documents, such restrictions shall have existed prior to the Closing Date, and (h) restrictions on receivables sold or otherwise disposed of pursuant to a Factoring Agreement permitted by Section 6.1(l), no Credit Party nor any of its Subsidiaries shall enter into any agreement prohibiting the creation or assumption of any Lien upon any of its properties or assets, whether now owned or hereafter acquired.
6.5    Restricted Payments.  No Credit Party shall, nor shall it permit any of its Subsidiaries or Affiliates through any manner or means or through any other Person to, directly or indirectly, declare, order, pay, make or set apart, or agree to declare, order, pay, make or set apart, any sum for any Restricted Payment, except:
(a)    any Subsidiary may declare and pay or make any distributions to its shareholders, provided that such payments are made to all its shareholders proportionately based on their ownership interest in such Subsidiary (provided, that no Restricted Payments shall be made by the European Borrowers to any Subsidiary of the Credit Parties unless both immediately before and after giving effect to any such Restricted Payment, the Lead Borrower shall demonstrate to the European Administrative Agent, in form and substance satisfactory to the European Administrative Agent, (A) pro forma European Excess Availability (calculated after giving effect to any Advances or Letters of Credit then being made or issued in connection with such Investment or transfer) in excess of $5,000,000, and (B) pro forma Fixed Charge Coverage Ratio for the last period of four (4) consecutive Fiscal Quarters ended prior to the date of such Investment or transfer of greater than 1.25:1.00;;
(b)    the Lead Borrower or any Subsidiary may make regularly scheduled payments of principal and interest in respect of any Indebtedness that is permitted by Sections 6.1(c) and (o), but only to the extent permitted pursuant to the terms of such Indebtedness (including, without limitation, any subordination terms applicable to such Indebtedness);
(c)    so long as no Default or Event of Default has occurred and is continuing, the Lead Borrower may repurchase or redeem Common Stock in an amount not to exceed $7,000,000 per annum solely for the purpose of repurchases of Common Stock from departing executives of the Lead Borrower or any of its Subsidiaries or satisfying the purchase price of equity award under, or paying withholding taxes payable with respect to, vested equity compensation programs;
(d)    so long as no Default or Event of Default has occurred and is continuing, (x) the Lead Borrower and its Subsidiaries may make additional Restricted Payments in an aggregate amount not to exceed, when added to the aggregate payments made to voluntarily or optionally repay, prepay, or purchase outstanding Term Loans pursuant to clause (i) of Section 6.18, $10,000,000, and (y) the Lead Borrower may make additional Restricted Payments so long as Domestic Excess Availability on the date of such additional Restricted Payment (calculated after giving effect to any Advances or Letters of Credit then being made or issued in connection with the action or proposed action) exceeds fifteen percent (15.0%) of the lesser of (i) the Maximum Credit at such time and (ii) the Borrowing Base at such time; and

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(e)    so long as no Default or Event of Default has occurred and is continuing, the Lead Borrower may repurchase or redeem Senior Notes with the proceeds of (x) Debt incurred pursuant to Section 6.1(c) or (y) Permitted Refinancing Indebtedness in respect thereof incurred pursuant to Section 6.1(p).
6.6    Restrictions on Subsidiary Distributions.  Except as provided herein, in the Term Credit Documents and as provided in the Senior Notes Documents or documents governing any Permitted Refinancing Indebtedness with respect thereto, no Credit Party shall, nor shall it permit any of its Subsidiaries to, create or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction of any kind on the ability of any Subsidiary of the Lead Borrower to (a) pay dividends or make any other distributions on any of such Subsidiary’s Capital Stock owned by the Lead Borrower or any other Subsidiary of the Lead Borrower, (b) repay or prepay any Indebtedness owed by such Subsidiary to the Lead Borrower or any other Subsidiary of the Lead Borrower, (c) make loans or advances to the Lead Borrower or any other Subsidiary of the Lead Borrower, or (d) transfer any of its property or assets to the Lead Borrower or any other Subsidiary of the Lead Borrower, other than restrictions (i) in agreements evidencing Indebtedness permitted by Section 6.1(j) that impose restrictions on the property so acquired; (ii) by reason of customary provisions restricting assignments, subletting or other transfers contained in leases, licenses, joint venture agreements and similar agreements entered into in the Ordinary Course; (iii) that are or were created by virtue of any transfer of, agreement to transfer or option or right with respect to any property, assets or Capital Stock not otherwise prohibited under this Agreement; (iv) in any agreement for the sale or other disposition of a Subsidiary that restricts distributions by that Subsidiary pending the sale or other disposition; (v) in provisions in agreements or instruments which prohibit the payment of dividends or the making of other distributions with respect to any class of Capital Stock of a Person other than on a pro rata basis; (vi) in any instrument governing Indebtedness or Capital Stock of a Person acquired by the Lead Borrower or any of its Subsidiaries as in effect at the time of such acquisition (except to the extent such Indebtedness or Capital Stock was incurred in connection with or in contemplation of such acquisition), which encumbrance or restriction is not applicable to any Person, or the properties or assets of any Person, other than the Person or the property or assets of the Person, so acquired, provided that, in the case of Indebtedness, such Indebtedness was permitted by Section 6.1; (vii) in any intercompany arrangement entered into for tax planning purposes so long as such arrangement may be terminated at any time at the direction of the Lead Borrower or any other Party in its sole discretion; and (viii) on the transfer of any receivables sold or otherwise disposed of pursuant to a Factoring Agreement permitted by Section 6.1(l).
6.7    Investments.  No Credit Party shall, nor shall it permit any of its Subsidiaries to, directly or indirectly, make or own any Investment in any Person, including without limitation any Joint Venture, except:
(a)    Investments in Cash and Cash Equivalents;
(b)    (i) equity Investments and loans as of the Closing Date in or to the Lead Borrower or any of its Subsidiaries, (ii) equity Investments and loans made after the Closing Date (w) in or to the Lead Borrower or any other US Credit Party, (x) by a Canadian Credit Party in another Canadian Credit Party, (y) by a European Credit Party in another European Credit Party or (z) by a non-Credit Party in another non-Credit Party, (iii) equity Investments or transfers of assets made after the Closing Date by a US Credit Party or Canadian Credit Party in or to a Subsidiary of the Lead Borrower that is not a Credit Party or by a US Credit Party in or to a Canadian Credit Party or European Credit Party, so long as, with respect to equity Investments or transfers of assets under this clause (iii), the aggregate amount of such equity Investments and the aggregate fair market value of such transfers of assets, does not exceed at any time $30,000,000; provided, further that, for purposes of this clause (iii), at any given time the amount of cash distributions and dividends or other similar amounts received in respect of such equity Investments and the amount of 

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cash consideration received in respect of such transfers of assets, in each case, up to the value of such equity Investments or transfers of assets, as applicable, used to calculate the aggregate amount of the equity Investments and transfers of assets made pursuant to this clause (iii), shall be netted against the outstanding aggregate amount of equity Investments and transfers of assets made pursuant to this clause (iii), and (iv) equity Investments or transfers of assets made after the Closing Date by a European Credit Party in or to a Subsidiary of the Lead Borrower that is not a Credit Party, so long as, with respect to equity Investments or transfers of assets under this clause (iv), both immediately before and after giving effect to any such Investment or transfer, the Lead Borrower shall demonstrate to the European Administrative Agent, in form and substance satisfactory to the European Administrative Agent, (A) pro forma European Excess Availability (calculated after giving effect to any Advances or Letters of Credit then being made or issued in connection with such Investment or transfer) in excess of $5,000,000, and (B) pro forma Fixed Charge Coverage Ratio for the last period of four (4) consecutive Fiscal Quarters ended prior to the date of such Investment or transfer of greater than 1.25:1.00; 
(c)    Investments (i) in any Securities received in satisfaction or partial satisfaction of obligations of financially troubled account debtors and (ii) deposits, prepayments and other credits to suppliers made in the Borrower’s and its Subsidiaries’ Ordinary Course;
(d)    intercompany loans and guaranties to the extent permitted under Sections 6.1(b), (d), (e) and (h);
(e)    Consolidated Capital Expenditures otherwise permitted under Section 6.8;
(f)    loans and advances to employees of the Lead Borrower and its Subsidiaries made in the Ordinary Course in an aggregate principal amount not to exceed $2,000,000 in the aggregate at any one time outstanding;
(g)    Investments made in connection with Permitted Acquisitions permitted pursuant to and in accordance with Section 6.9;
(h)    Investments received in lieu of Cash in connection with Asset Sales permitted by and in accordance with Section 6.9;
(i)    Investments described in Schedule 6.7(i);
(j)    Investments in Permitted Joint Ventures in an aggregate amount not to exceed at any time $20,000,000; and
(k)    other Investments (including without limitation Investments in Subsidiaries which are not wholly owned, directly or indirectly, by the Lead Borrower) (x) in an aggregate amount not to exceed at any time $30,000,000 and (y) so long as, in the case of this clause (y), the Applicable Conditions are satisfied; provided; further that for purposes of this Section 6.7(k), at any given time the amount of any cash repayments of principal, interest, distributions and dividends or other similar amounts received in respect of any such Investments, up to the value of such Investments used to calculate the aggregate amount of other Investments made under this Section 6.7(k), shall be netted against the then outstanding aggregate amount of other Investments made under this Section 6.7(k).

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Notwithstanding the foregoing, in no event shall any Credit Party make any Investment which results in or facilitates in any manner any Restricted Payment not otherwise permitted under the terms of Section 6.5.
6.8    Maximum Consolidated Capital Expenditures.  The Lead Borrower shall not, and shall not permit its Subsidiaries to, make or incur Consolidated Capital Expenditures, in any Fiscal Year indicated below, in an aggregate amount for the Lead Borrower and its Subsidiaries in excess of the corresponding amount (“Maximum Consolidated Capital Expenditures”) set forth below opposite such Fiscal Year (exclusive of Capital Expenditures paid with Net Asset Sale Proceeds or with Net Insurance/Condemnation Proceeds):

	
		
	Fiscal Year
	Maximum Consolidated Capital Expenditures

	2013
	$42,000,000.00

	2014
	$42,000,000.00

	2015
	$42,000,000.00

	2016
	$42,000,000.00

	2017
	$42,000,000.00

	2018
	$42,000,000.00

provided, that the Maximum Consolidated Capital Expenditures for any Fiscal Year shall be increased by (i) an amount equal to the portion of Maximum Consolidated Capital Expenditures not expended in the immediately preceding Fiscal Year (the “Roll-Over Amount”); provided, further, that any Roll-Over Amount not expended in the applicable Fiscal Year shall not be added to the amount of Maximum Consolidated Capital Expenditures for the immediately succeeding Fiscal Year.
In the event that the Lead Borrower and its Subsidiaries have made Consolidated Capital Expenditures in any Fiscal Year in an aggregate amount equal to the Maximum Consolidated Capital Expenditures for such Fiscal Year (as such amount may be increased by any applicable Roll-Over Amount), the Lead Borrower and its Subsidiaries may utilize up to 100% of the applicable Maximum Consolidated Capital Expenditures for the immediately succeeding Fiscal Year to make additional Consolidated Capital Expenditures in the then current Fiscal Year (and with the amount so utilized to reduce the Maximum Consolidated Capital Expenditures in such immediately succeeding Fiscal Year).
In addition to the foregoing, (i) the Lead Borrower or its applicable Subsidiaries may make additional Consolidated Capital Expenditures in an aggregate amount for all such Persons not to exceed $10,000,000 as a result of the replacement of the non-equipment operating leases in effect on the Closing Date with respect to their facilities in Youngsville, North Carolina and Geelong, Australia with Capital Leases and (ii) so long as the Applicable Conditions are satisfied, the Lead Borrower and its Subsidiaries may make additional Consolidated Capital Expenditures.

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6.9    Fundamental Changes; Disposition of Assets; Acquisitions.  No Credit Party shall, nor shall it permit any of its Subsidiaries to, enter into any merger or consolidation, or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), or convey, sell, lease or sub lease (as lessor or sublessor), exchange, transfer or otherwise dispose of, in one transaction or a series of transactions, all or any part of its business, assets or property of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible, whether now owned or hereafter acquired, or acquire by purchase or otherwise (other than purchases or other acquisitions of inventory, materials and equipment and Capital Expenditures in the Ordinary Course) the business, property or fixed assets of, or stock or other evidence of beneficial ownership of, any Person or any division or line of business or other business unit of any Person, except:
(a)    any Subsidiary of the Lead Borrower may be merged with or into the Lead Borrower or any other Subsidiary, or be liquidated, wound up or dissolved; provided, however, in the case of such a merger involving (t) the Lead Borrower, the Lead Borrower shall be the continuing or surviving Person, (u) another US Borrower, a US Borrower shall be the continuing or surviving Person, (v) a US Guarantor Subsidiary merging with a non-US Guarantor Subsidiary, the US Guarantor Subsidiary shall be the continuing or surviving Person, (w) a Canadian Borrower, a Canadian Borrower shall, except to the extent provided in preceding clauses (t), (u) or (v), be the continuing or surviving Person, (x) a Canadian Guarantor Subsidiary merging or amalgamating with a non-Canadian Guarantor Subsidiary, the Canadian Guarantor Subsidiary shall, except as provided in preceding clause (t), (u), (v) or (w), be the continuing or surviving Person, (y) a European Borrower, a European Borrower shall, except to the extent provided in preceding clauses (t), (u) or (v), be the continuing or surviving Person, or (z) a European Guarantor Subsidiary merging or amalgamating with a non-European Guarantor Subsidiary, the European Guarantor Subsidiary shall, except as provided in preceding clause (t), (u), (v) or (w), be the continuing or surviving Person;
(b)    sales or other dispositions of assets that do not constitute Asset Sales;
(c)    Asset Sales (other than Inventory, Receivables and other assets or property included in the Borrowing Base or any component definition), the proceeds of which (valued at the principal amount thereof in the case of non-Cash proceeds consisting of notes or other debt Securities and valued at fair market value (determined in good faith by the board of directors (or similar governing body) of the respective Person making such Asset Sale) in the case of other non-Cash proceeds), when aggregated with the proceeds of all other Asset Sales made within the same Fiscal Year, are less than $35,000,000; provided (1) the consideration received for such assets shall be in an amount at least equal to the fair market value thereof (determined in good faith by the board of directors (or similar governing body) of the respective Person making such Asset Sale), (2) in the case of any Asset Sale generating aggregate Net Asset Sale Proceeds in excess of $1,000,000, no less than 75% thereof shall be paid in Cash (for purposes of this clause (2), each of the following will be deemed to be cash: (A) Cash Equivalents and (B) any Indebtedness, as shown on the Lead Borrower’s most recent consolidated balance sheet, of any Credit Party or Subsidiary (other than Indebtedness that is by its terms subordinated to the Revolving Advances) that is assumed by the transferee of any such assets pursuant to an agreement that releases such Credit Party or Subsidiary from, or indemnifies such Credit Party or Subsidiary against, any liability under, and any Liens on such assets securing, such Indebtedness, (3) no Capital Stock of any Borrower may be sold pursuant to this Section 6.9(c) and (4) no Capital Stock of any Guarantor Subsidiary may be sold pursuant to this Section 6.9(c) unless all of the Capital Stock of such Guarantor Subsidiary is sold in compliance with this Section 6.9(c);
(d)    disposals of obsolete, worn out or surplus property, and any assets acquired in connection with the acquisition of another Person in a division or line of business of such Person reasonably determined by the acquirer to be surplus assets;

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(e)    Permitted Acquisitions, so long as (i) the Common Stock of the Lead Borrower is used as 100% of the consideration in connection therewith or (ii) cash of the Lead Borrower or any of its Subsidiaries is used as all or a portion of the consideration; provided that, in the case of clause (ii), the  Applicable Conditions are satisfied;
(f)    Investments made in accordance with Section 6.7; and
(g)    disposals of real estate which may not be prohibited pursuant to section 1136 of the German Civil Code.
6.10    Disposal of Subsidiary Interests.  Except for any contribution or sale of its interests in the Capital Stock of any of its Subsidiaries in compliance with the provisions of Section 6.9 or pursuant to the Collateral Documents, no Credit Party shall, nor shall it permit any of its Subsidiaries to, (a) directly or indirectly sell, assign, pledge or otherwise encumber or dispose of any Capital Stock of any of its Subsidiaries, except to qualify directors if required by applicable law; or (b) permit any of its Subsidiaries directly or indirectly to sell, assign, pledge or otherwise encumber or dispose of any Capital Stock of any of its Subsidiaries, except to another Credit Party (subject to the restrictions on such disposition otherwise imposed hereunder), or to qualify directors if required by applicable law.
6.11    Sales and Lease Backs.  No Credit Party shall, nor shall it permit any of its Subsidiaries to, directly or indirectly, become or remain liable as lessee or as a guarantor or other surety with respect to any lease of any property (whether real, personal or mixed), whether now owned or hereafter acquired, which such Credit Party or Subsidiary (a) has sold or transferred or is to sell or to transfer to any other Person (other than the Lead Borrower or any of its Subsidiaries), or (b) intends to use for substantially the same purpose as any other property which has been or is to be sold or transferred by such Credit Party or Subsidiary to any Person (other than the Lead Borrower or any of its Subsidiaries) in connection with such lease (any such transaction, a “Sale and Lease Back Transaction”), unless, in each case, (i) the sale of such property is permitted by Section 6.9, (ii) any Lien arising in connection with the use of such property by any Credit Party or any of its Subsidiaries is permitted by Section 6.2 and (iii) any Attributable Indebtedness of any Credit Party or any of its Subsidiaries in respect of such lease is permitted under Section 6.1.
6.12    Transactions with Shareholders and Affiliates.  No Credit Party shall, nor shall it permit any of its Subsidiaries to, directly or indirectly, enter into or permit to exist any transaction (including the purchase, sale, lease or exchange of any property or the rendering of any service) with any Affiliate of such Credit Party or its Subsidiaries on terms that are less favorable to such Credit Party or its Subsidiaries, as the case may be, than those that might be obtained at the time from a Person who is not an Affiliate of such Credit Party or its Subsidiaries; provided, the foregoing restriction shall not apply to (a) any transaction among the Lead Borrower or any of its wholly-owned Subsidiaries otherwise permitted by this Agreement; (b) reasonable and customary fees paid to members of the board of directors (or similar governing body) of the Lead Borrower and its Subsidiaries; (c) compensation arrangements for officers and other employees of the Lead Borrower and its Subsidiaries entered into in the Ordinary Course; and (d) transactions described in Schedule 6.12.
6.13    Conduct of Business.  From and after the Closing Date, no Credit Party shall, nor shall it permit any of its Subsidiaries to, engage in any business other than (i) the businesses engaged in by one or more Credit Parties on the Closing Date and similar or related businesses and (ii) such other lines of business as may be consented to by Requisite Lenders.

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6.14    Anti-Money Laundering/International Trade Law Compliance.  No Credit Party shall fail to immediately notify the Administrative Agent and the European Administrative Agent in writing upon the occurrence of a Reportable Compliance Event and shall take all such actions so that the representations and warranties set forth in Section 4.23 shall continue to be true and correct.
6.15    Amendments or Waivers to Organizational Documents.  No Credit Party shall terminate or agree to any amendment, restatement, supplement or other modification to, any Organizational Document that would be materially adverse to the Lenders.
6.16    Amendments or Waivers to Certain Indebtedness.  No Credit Party shall, nor shall it permit any of its Subsidiaries to, amend or otherwise change the terms of any Indebtedness incurred pursuant to Section 6.1(c) or Section 6.1(o) or any Permitted Refinancing Indebtedness with respect thereto or make any payment consistent with an amendment thereof or change thereto, if the effect of such amendment or change is to increase the interest rate or the amortization rate on such Indebtedness or such Permitted Refinancing Indebtedness, change (to earlier dates) any dates upon which payments of principal or interest are due thereon, change any event of default or condition to an event of default with respect thereto (other than to eliminate any such event of default or increase any grace period related thereto), change the redemption, prepayment or defeasance provisions thereof, change the subordination provisions of such Indebtedness or such Permitted Refinancing Indebtedness (or any guaranty thereof), or if the effect of such amendment or change, together with all other amendments or changes made, is to increase materially the obligations of the obligor thereunder or to confer any additional rights on the holders of such Indebtedness or such Permitted Refinancing Indebtedness (or a trustee or other representative on their behalf) which would be adverse to any Credit Party or Lenders in any material respect.
6.17    Springing Financial Covenant.  During each Covenant Trigger Period, the Lead Borrower shall not permit (i) the Fixed Charge Coverage Ratio for the last period of four (4) consecutive Fiscal Quarters ended prior to the beginning of such Covenant Trigger Period for which financial statements have been delivered to the Administrative Agent pursuant to Section 5.1(a) or (b), as applicable, to be less than 1.00:1.00, (ii) the Fixed Charge Coverage Ratio for the period or four (4) consecutive Fiscal Quarters for which financial statements first are delivered to the Administrative Agent pursuant to Section 5.1(a) or (b), as applicable, during such Covenant Trigger Period to be less than 1.00:1.00 or (iii) the Fixed Charge Coverage Ratio for any period or four (4) consecutive Fiscal Quarters ending during such Covenant Trigger Period to be less than 1.00:1.00.  Within three (3) Business Days after the beginning of a Covenant Trigger Period, the Lead Borrower shall provide to the Administrative Agent a compliance certificate calculating the Fixed Charge Coverage Ratio for the period of four consecutive Fiscal Quarters for which financial statements are required to be delivered ended immediately prior to the beginning of such Covenant Trigger Period based on the most recent financial statements required to be delivered pursuant to Section 5.1(a) or (b), as applicable.
6.18    Limitations on Voluntary Prepayments of Term Loans.  No Credit Party shall, nor shall it permit any of its Subsidiaries to, make any voluntary or optional repayment, prepayment or purchase of Term Loans, except (i) so long as no Default or Event of Default then exists or would result therefrom, the Lead Borrower may make voluntary or optional repayments, prepayments or purchases of Term Loans in an aggregate amount not to exceed, when added to the aggregate amount of Restricted Payments made pursuant to clause (x) of Section 6.5(d), $10,000,000, and (ii) so long as (I) no Default or Event of Default then exists or would result therefrom and (II) Global Excess Availability on the date of the action or proposed action (calculated after giving effect to any Advances or Letters of Credit then being made or issued in connection with the action or proposed action) exceeds fifteen percent (15.0%) of the lesser of (x) the Maximum Credit at such time and (y) the Borrowing Base at such time, the Lead Borrower may make additional voluntary or optional repayments, prepayments or purchases of Term Loans.

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SECTION 7.    GUARANTY
7.1    Guaranty of the Obligations.
(a)    The Canadian Guarantors jointly and severally hereby irrevocably and unconditionally guaranty to the Administrative Agent and the European Administrative Agent for the ratable benefit of the Beneficiaries the due and punctual payment in full of all Canadian Obligations and European Obligations (other than Excluded Swap Obligations) when the same shall become due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under applicable Insolvency Laws (collectively, the “Guaranteed Canadian Obligations”).
(b)    Subject to the provisions of Section 7.2, the US Guarantors jointly and severally hereby irrevocably and unconditionally guaranty to the Administrative Agent and the European Administrative Agent for the ratable benefit of the Beneficiaries the due and punctual payment in full of all Obligations (other than Excluded Swap Obligations) when the same shall become due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under section 362(a) of the Bankruptcy Code (collectively, the “Guaranteed Obligations”).
(c)    The European Guarantors jointly and severally hereby irrevocably and unconditionally guaranty to the Administrative Agent and European Administrative Agent for the ratable benefit of the Beneficiaries the due and punctual payment in full of all European Obligations and Canadian Obligations (other than Excluded Swap Obligations) when the same shall become due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under applicable Insolvency Laws (collectively, the “Guaranteed European Obligations”).
7.2    Contribution by Guarantors.
All US Guarantors desire to allocate among themselves (collectively, the “US Contributing Guarantors”), in a fair and equitable manner, their obligations arising under this Guaranty.  Accordingly, in the event any payment or distribution is made on any date by a US Guarantor (a “US Funding Guarantor”) under this Guaranty such that its US Aggregate Payments exceed its US Fair Share as of such date, such US Funding Guarantor shall be entitled to a contribution from each of the other US Contributing Guarantors in an amount sufficient to cause each US Contributing Guarantor’s US Aggregate Payments to equal its US Fair Share as of such date. “US Fair Share” means, with respect to a US Contributing Guarantor as of any date of determination, an amount equal to (a) the ratio of (i) the US Fair Share Contribution Amount with respect to such US Contributing Guarantor to (ii) the aggregate of the US Fair Share Contribution Amounts with respect to all US Contributing Guarantors multiplied by (b) the aggregate amount paid or distributed on or before such date by all US Funding Guarantors under this Guaranty in respect of the obligations Guaranteed. “US Fair Share Contribution Amount” means, with respect to a US Contributing Guarantor as of any date of determination, the maximum aggregate amount of the obligations of such US Contributing Guarantor under this Guaranty that would not render its obligations hereunder or thereunder subject to avoidance as a fraudulent transfer or conveyance under section 548 of the Bankruptcy Code or any comparable applicable provisions of state law; provided, solely for purposes of calculating the “US Fair Share Contribution Amount” with respect to any US Contributing Guarantor for purposes of this Section 7.2, any assets or liabilities of such US Contributing Guarantor arising by virtue of (a) any rights to subrogation, reimbursement or indemnification or any rights to or obligations of contribution hereunder or (b) any liabilities 

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of such US Contributing Guarantor in respect of intercompany Indebtedness to the Borrower to the extent that such Indebtedness would be discharged in an amount equal to the amount paid by such US Contributing Guarantor hereunder shall not be considered as assets or liabilities of such US Contributing Guarantor. “US Aggregate Payments” means, with respect to a US Contributing Guarantor as of any date of determination, an amount equal to (1) the aggregate amount of all payments and distributions made on or before such date by such US Contributing Guarantor in respect of this Guaranty (including, without limitation, in respect of this Section 7.2), minus (2) the aggregate amount of all payments received on or before such date by such US Contributing Guarantor from the other US Contributing Guarantors as contributions under this Section 7.2.  The amounts payable as contributions hereunder shall be determined as of the date on which the related payment or distribution is made by the applicable US Funding Guarantor.  The allocation among US Contributing Guarantors of their obligations as set forth in this Section 7.2 shall not be construed in any way to limit the liability of any US Contributing Guarantor hereunder.  Each US Guarantor is a third party beneficiary to the contribution agreement set forth in this Section 7.2.
7.3    Payment by Guarantors.
(a)    The Canadian Guarantors hereby jointly and severally agree, in furtherance of the foregoing and not in limitation of any other right which any Beneficiary may have at law or in equity against any Canadian Guarantor by virtue hereof, that upon the failure of any Canadian Borrower or European Borrower to pay any of the Guaranteed Canadian Obligations when and as the same shall become due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under applicable Insolvency Laws), the Canadian Guarantors will upon demand pay, or cause to be paid, in Cash, to the Applicable Agent for the ratable benefit of the Beneficiaries, an amount equal to the sum of the unpaid principal amount of all Guaranteed Canadian Obligations then due as aforesaid, accrued and unpaid interest on such Guaranteed Canadian Obligations (including interest which, but for any Canadian Borrower’s or European Borrower's becoming the subject of a case under applicable Insolvency Laws, would have accrued on such Guaranteed Canadian Obligations, whether or not a claim is allowed against such Canadian Borrower for such interest in the related bankruptcy case) and all other Guaranteed Canadian Obligations then owed to Beneficiaries as aforesaid.
(b)    Subject to Section 7.2, the US Guarantors hereby jointly and severally agree, in furtherance of the foregoing and not in limitation of any other right which any Beneficiary may have at law or in equity against any US Guarantor by virtue hereof, that upon the failure of any Borrower to pay any of the Guaranteed Obligations when and as the same shall become due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under section 362(a) of the Bankruptcy Code), the US Guarantors will upon demand pay, or cause to be paid, in Cash, to the Applicable Agent for the ratable benefit of the Beneficiaries, an amount equal to the sum of the unpaid principal amount of all Guaranteed Obligations then due as aforesaid, accrued and unpaid interest on such Guaranteed Obligations (including interest which, but for any Borrower’s becoming the subject of a case under the Bankruptcy Code or the Bankruptcy and Insolvency Act (Canada), would have accrued on such Guaranteed Obligations, whether or not a claim is allowed against such Borrower for such interest in the related bankruptcy case) and all other Guaranteed Obligations then owed to Beneficiaries as aforesaid.
(c)    The European Guarantors hereby jointly and severally agree, in furtherance of the foregoing and not in limitation of any other right which any Beneficiary may have at law or in equity against any European Guarantor by virtue hereof, that upon the failure of any European Borrower or Canadian Borrower to pay any of the Guaranteed European Obligations when and as the same shall become due, 

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whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under applicable Insolvency Laws), the European Guarantors will upon demand pay, or cause to be paid, in Cash, to the Applicable Agent for the ratable benefit of the Beneficiaries, an amount equal to the sum of the unpaid principal amount of all Guaranteed European Obligations then due as aforesaid, accrued and unpaid interest on such Guaranteed European Obligations (including interest which, but for any European Borrower’s or Canadian Borrower’s becoming the subject of a case under applicable Insolvency Laws, would have accrued on such Guaranteed European Obligations, whether or not a claim is allowed against such European Borrower for such interest in the related bankruptcy case) and all other Guaranteed European Obligations then owed to Beneficiaries as aforesaid.
7.4    Liability of Guarantors Absolute.  Each Guarantor agrees that its obligations hereunder are irrevocable, absolute, independent and unconditional and shall not be affected by any circumstance which constitutes a legal or equitable discharge of a guarantor or surety other than payment in full of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be.  In furtherance of the foregoing and without limiting the generality thereof, each Guarantor agrees as follows:
(a)    this Guaranty is a guaranty of payment when due and not of collectability.  This Guaranty is a primary obligation of such Guarantor and not merely a contract of surety;
(b)    the Applicable Agent may enforce this Guaranty upon the occurrence of an Event of Default notwithstanding the existence of any dispute between any Borrower and any Beneficiary with respect to the existence of such Event of Default;
(c)    the obligations of such Guarantor hereunder are independent of the obligations of any Borrower and the obligations of any other guarantor (including any other Guarantor) of the obligations of any Borrower, and a separate action or actions may be brought and prosecuted against such Guarantor whether or not any action is brought against any Borrower or any of such other guarantors and whether or not any Borrower is joined in any such action or actions;
(d)    payment by any Guarantor of a portion, but not all, of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, shall in no way limit, affect, modify or abridge any Guarantor’s liability for any portion of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, which has not been paid.  Without limiting the generality of the foregoing, if the Applicable Agent is awarded a judgment in any suit brought to enforce any Guarantor’s covenant to pay a portion of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, such judgment shall not be deemed to release such Guarantor from its covenant to pay the portion of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, that is not the subject of such suit, and such judgment shall not, except to the extent satisfied by such Guarantor, limit, affect, modify or abridge any other Guarantor’s liability hereunder in respect of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be;
(e)    any Beneficiary, upon such terms as it deems appropriate, without notice or demand and without affecting the validity or enforceability hereof or giving rise to any reduction, limitation, impairment, discharge or termination of any Guarantor’s liability hereunder, from time to time may (i) renew, extend, accelerate, increase the rate of interest on, or otherwise change the time, place, manner or terms of payment of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be; (ii) settle, compromise, release or discharge, or accept or refuse any offer 

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of performance with respect to, or substitutions for, the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, or any agreement relating thereto and/or subordinate the payment of the same to the payment of any other obligations; (iii) request and accept other guaranties of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, and take and hold security for the payment hereof or the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be; (iv) release, surrender, exchange, substitute, compromise, settle, rescind, waive, alter, subordinate or modify, with or without consideration, any security for payment of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, any other guaranties of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, or any other obligation of any Person (including any other Guarantor) with respect to the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, provided, however, that no Credit Document to which such Guarantor is party may be amended without its written consent; (v) enforce and apply any security now or hereafter held by or for the benefit of such Beneficiary in respect hereof or the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, and direct the order or manner of sale thereof, or exercise any other right or remedy that such Beneficiary may have against any such security, in each case as such Beneficiary in its discretion may determine consistent herewith or the applicable documentation creating Hedging Obligations or Cash Management Obligations and any applicable security agreement, including foreclosure on any such security pursuant to one or more judicial or non-judicial sales, whether or not every aspect of any such sale is commercially reasonable, and even though such action operates to impair or extinguish any right of reimbursement or subrogation or other right or remedy of any Guarantor against any Borrower or any security for the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be; and (vi) exercise any other rights available to it under the Credit Documents or the applicable documentation creating Hedging Obligations or Cash Management Obligations; and
(f)    this Guaranty and the obligations of Guarantors hereunder shall be valid and enforceable and shall not be subject to any reduction, limitation, impairment, discharge or termination for any reason (other than payment in full of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations), including the occurrence of any of the following, whether or not any Guarantor shall have had notice or knowledge of any of them: (i) any failure or omission to assert or enforce or agreement or election not to assert or enforce, or the stay or enjoining, by order of court, by operation of law or otherwise, of the exercise or enforcement of, any claim or demand or any right, power or remedy (whether arising under the Credit Documents or the applicable documentation creating Hedging Obligations or Cash Management Obligations, at law, in equity or otherwise) with respect to the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, or any agreement relating thereto, or with respect to any other guaranty of or security for the payment of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be; (ii) any rescission, waiver, amendment or modification of, or any consent to departure from, any of the terms or provisions (including provisions relating to events of default) hereof, any of the other Credit Documents, any of the applicable documentation creating Hedging Obligations or Cash Management Obligations or any agreement or instrument executed pursuant thereto, or of any other guaranty or security for the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, in each case whether or not in accordance with the terms hereof or such Credit Document, such applicable documentation creating Hedging Obligations or Cash Management Obligations or any agreement relating to such other guaranty or security; (iii) the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, or any agreement relating thereto, at any time being found to be illegal, invalid or unenforceable in any respect; (iv) the application of payments received from 

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any source (other than payments received pursuant to the other Credit Documents or any of the applicable documentation creating Hedging Obligations or Cash Management Obligations from the proceeds of any security for the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, except to the extent such security also serves as collateral for indebtedness other than the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be) to the payment of indebtedness other than the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, even though any Beneficiary might have elected to apply such payment to any part or all of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be; (v) any Beneficiary’s consent to the change, reorganization or termination of the corporate structure or existence of the Lead Borrower or any of its Subsidiaries and to any corresponding restructuring of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be; (vi) any failure to perfect or continue perfection of a security interest in any collateral which secures any of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be; (vii) any defenses, set offs or counterclaims which any Borrower may allege or assert against any Beneficiary in respect of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, including failure of consideration, breach of warranty, payment, statute of frauds, statute of limitations, accord and satisfaction and usury; (viii) any law or regulation of any jurisdiction or any other event affecting any term of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations as the case may be; and (ix) any other act or thing or omission, or delay to do any other act or thing, which may or might in any manner or to any extent vary the risk of any Guarantor as an obligor in respect of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be.
7.5    Waivers by Guarantors.  To the fullest extent permitted by any Requirement of Law, each Guarantor hereby waives, for the benefit of the Beneficiaries: (a) any right to require any Beneficiary, as a condition of payment or performance by such Guarantor, to (i) proceed against any Borrower, any other guarantor (including any other Guarantor) of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, or any other Person, (ii) proceed against or exhaust any security held from any Credit Party, any such other guarantor or any other Person, (iii) proceed against or have resort to any balance of any Deposit Account or credit on the books of any Beneficiary in favor of any Borrower or any other Person, or (iv) pursue any other remedy in the power of any Beneficiary whatsoever; (b) any defense arising by reason of the incapacity, lack of authority or any disability or other defense of any Borrower or any other Guarantor including any defense based on or arising out of the lack of validity or the unenforceability of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, or any agreement or instrument relating thereto or by reason of the cessation of the liability of any Borrower or any other Guarantor from any cause other than payment in full of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be; (c) any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome than that of the principal; (d) any defense based upon any Beneficiary’s errors or omissions in the administration of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, except behavior which amounts to bad faith; (e) (i) any principles or provisions of law, statutory or otherwise, which are or might be in conflict with the terms hereof and any legal or equitable discharge of such Guarantor’s obligations hereunder, (ii) the benefit of any statute of limitations affecting such Guarantor’s liability hereunder or the enforcement hereof, (iii) any rights to set offs, recoupments and counterclaims, and (iv) promptness, diligence and any requirement that any Beneficiary protect, secure, perfect or insure any security interest or lien or any property subject thereto; (f) notices, demands, presentments, protests, notices of protest, notices of dishonor and notices of any action or inaction, including acceptance hereof, notices of default 

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hereunder, the applicable documentation creating Hedging Obligations or any agreement or instrument related thereto, notices of any renewal, extension or modification of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, or any agreement related thereto, notices of any extension of credit to any Borrower and notices of any of the matters referred to in Section 7.4 and any right to consent to any thereof; and (g) any defenses or benefits that may be derived from or afforded by law which limit the liability of or exonerate guarantors or sureties, or which may conflict with the terms hereof.
7.6    Guarantors’ Rights of Subrogation, Contribution, etc.  Until the Guaranteed Obligations, Guaranteed Canadian Obligations and Guaranteed European Obligations shall have been indefeasibly paid in full in Cash and the Revolving Commitments shall have been terminated and all Letters of Credit shall have expired or been cancelled, each Guarantor hereby waives any claim, right or remedy, direct or indirect, that such Guarantor now has or may hereafter have against any Borrower or any other Guarantor or any of its assets in connection with this Guaranty or the performance by such Guarantor of its respective obligations hereunder, in each case whether such claim, right or remedy arises in equity, under contract, by statute, under common law or otherwise and including, without limitation, (a) any right of subrogation, reimbursement or indemnification that such Guarantor now has or may hereafter have against any Borrower with respect to the Guaranteed Obligations or the Guaranteed Canadian Obligations, as the case may be, (b) any right to enforce, or to participate in, any claim, right or remedy that any Beneficiary now has or may hereafter have against any Borrower, and (c) any benefit of, and any right to participate in, any collateral or security now or hereafter held by any Beneficiary.  In addition, until the Guaranteed Obligations, Guaranteed Canadian Obligations and Guaranteed European Obligations shall have been indefeasibly paid in full in Cash and the Revolving Commitments shall have been terminated and all Letters of Credit shall have expired or been cancelled, each Guarantor shall withhold exercise of any right of contribution such Guarantor may have against any other guarantor (including any other Guarantor) of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, including, without limitation, any such right of contribution as contemplated by Section 7.2.  Each Guarantor further agrees that, to the extent the waiver or agreement to withhold the exercise of its rights of subrogation, reimbursement, indemnification and contribution as set forth herein is found by a court of competent jurisdiction to be void or voidable for any reason, any rights of subrogation, reimbursement or indemnification such Guarantor may have against any Borrower or against any collateral or security, and any rights of contribution such Guarantor may have against any such other guarantor, shall be junior and subordinate to any rights any Beneficiary may have against any Borrower, to all right, title and interest any Beneficiary may have in any such collateral or security, and to any right any Beneficiary may have against such other guarantor.  If any amount shall be paid to any Guarantor on account of any such subrogation, reimbursement, indemnification or contribution rights at any time when all Guaranteed Obligations shall not have been finally and indefeasibly paid in full in Cash, such amount shall be held in trust for the Applicable Agent on behalf of the Beneficiaries and shall forthwith be paid over to the Applicable Agent for the benefit of the Beneficiaries to be credited and applied against the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, whether matured or unmatured, in accordance with the terms hereof.
7.7    Subordination of Other Obligations.  Any Indebtedness of any Borrower or any Guarantor now or hereafter held by any Guarantor (the "Obligee Guarantor") is hereby subordinated in right of payment to the Guaranteed Obligations, Guaranteed Canadian Obligations and Guaranteed European Obligations and any such indebtedness collected or received by the Obligee Guarantor after an Event of Default has occurred and is continuing shall be held in trust for the Applicable Agent on behalf of the Beneficiaries and shall forthwith be paid over to the Applicable Agent for the benefit of the Beneficiaries to be credited and applied against the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, 

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as the case may be, but without affecting, impairing or limiting in any manner the liability of the Obligee Guarantor under any other provision hereof.
7.8    Continuing Guaranty.  This Guaranty is a continuing guaranty and shall remain in effect until all of the Guaranteed Obligations, Guaranteed Canadian Obligations and Guaranteed European Obligations shall have been paid in full and the Revolving Commitments shall have been terminated and all Letters of Credit shall have expired or been cancelled.  Each Guarantor hereby irrevocably waives any right to revoke this Guaranty as to future transactions giving rise to any Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be.
7.9    Authority of Guarantors or Borrowers.  It is not necessary for any Beneficiary to inquire into the capacity or powers of any Guarantor or any Borrower or the officers, directors or any agents acting or purporting to act on behalf of any of them.
7.10    Financial Condition of Each Borrower.  Any Credit Extension may be made to any Borrower or continued from time to time, and any applicable documentation creating Hedging Obligations or Cash Management Obligations may be entered into from time to time, in each case without notice to or authorization from any Guarantor regardless of the financial or other condition of any Borrower at the time of any such grant or continuation or at the time such applicable documentation creating Hedging Obligations or Cash Management Obligations is entered into, as the case may be.  No Beneficiary shall have any obligation to disclose or discuss with any Guarantor its assessment, or any Guarantor’s assessment, of the financial condition of any Borrower.  Each Guarantor has adequate means to obtain information from any Borrower on a continuing basis concerning the financial condition of any Borrower and its ability to perform its respective obligations under the Credit Documents and the applicable documentation creating Hedging Obligations or Cash Management Obligations, and each Guarantor assumes the responsibility for being and keeping informed of the financial condition of any Borrower and of all circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be.  Each Guarantor hereby waives and relinquishes any duty on the part of any Beneficiary to disclose any matter, fact or thing relating to the business, operations or conditions of any Borrower now known or hereafter known by any Beneficiary.
7.11    Bankruptcy, etc.
(a)    So long as any Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations remain outstanding, no Guarantor shall, without the prior written consent of the Administrative Agent (or in the case of any European Guarantor, the European Administrative Agent) acting pursuant to the instructions of the Requisite Lenders, commence or join with any other Person in commencing any bankruptcy, reorganization or insolvency case or proceeding of or against any Borrower or any other Guarantor.  The obligations of the Guarantors hereunder shall not be reduced, limited, impaired, discharged, deferred, suspended or terminated by any case or proceeding, voluntary or involuntary, involving the bankruptcy, insolvency, receivership, reorganization, liquidation or arrangement of any Borrower or any Guarantor or by any defense which any Borrower or any Guarantor may have by reason of the order, decree or decision of any court or administrative body resulting from any such proceeding.
(b)    Each Guarantor acknowledges and agrees that any interest on any portion of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, which accrues after the commencement of any case or proceeding referred to in clause (a) above (or, if interest on any portion of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations ceases to accrue by operation of law by reason of the commencement of such case or 

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proceeding, such interest as would have accrued on such portion of the Guaranteed Obligations, Guaranteed Canadian Obligations and Guaranteed European Obligations if such case or proceeding had not been commenced) shall be included in the Guaranteed Obligations, Guaranteed Canadian Obligations and Guaranteed European Obligations because it is the intention of the Guarantors and the Beneficiaries that the Guaranteed Obligations, Guaranteed Canadian Obligations and Guaranteed European Obligations which are guaranteed by the applicable Guarantors pursuant hereto should be determined without regard to any rule of law or order which may relieve any Borrower of any portion of such Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be. The Guarantors will permit any trustee in bankruptcy, receiver, debtor in possession, assignee for the benefit of creditors or similar person to pay the Applicable Agent, or allow the claim of the Applicable Agent in respect of, any such interest accruing after the date on which such case or proceeding is commenced.
(c)    In the event that all or any portion of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations are paid by any Borrower, the obligations of the Guarantors hereunder shall continue and remain in full force and effect or be reinstated, as the case may be, in the event that all or any part of such payment(s) are rescinded or recovered directly or indirectly from any Beneficiary as a preference, fraudulent transfer or otherwise, and any such payments which are so rescinded or recovered shall constitute Guaranteed Obligations, Guaranteed Canadian Obligations and Guaranteed European Obligations for all purposes hereunder.
7.12    Discharge of Guaranty Upon Sale of Guarantor.  If (i) all of the Capital Stock of any Guarantor or any of its successors in interest hereunder shall be sold or otherwise disposed of (including by merger or consolidation) in accordance with the terms and conditions hereof or (ii) any Guarantor (other than a Borrower) shall become an Immaterial Subsidiary at a time when no Default or Event of Default exists and is continuing and the Lead Borrower or European Lead Borrower (with respect to a European Guarantor) shall so request, the Guaranty of such Guarantor or such successor in interest, as the case may be, hereunder shall automatically be discharged and released without any further action by any Beneficiary or any other Person effective as of the time of such Asset Sale and, so long as, as applicable, (a) the Lead Borrower shall have previously provided the Collateral Agent and the Administrative Agent such certifications or documents as the Collateral Agent and/or the Administrative Agent shall reasonably have requested, the Collateral Agent shall take, and the Lenders hereby irrevocably authorize the Collateral Agent to take, such actions as are necessary to effect such release in accordance with the relevant provisions of this Agreement and the Collateral Documents, or (b) the European Lead Borrower shall have previously provided the European Collateral Agent and the European Administrative Agent such certifications or documents as the European Collateral Agent and/or the European Administrative Agent shall reasonably have requested, the European Collateral Agent shall take, and the Lenders hereby irrevocably authorize the European Collateral Agent to take, such actions as are necessary to effect such release in accordance with the relevant provisions of this Agreement and the Collateral Documents.
7.13    Validity and Effectiveness.  This Guaranty shall remain wholly valid and effective until the full, unconditional and irrevocable performance and discharge of the Guaranteed Obligations, Guaranteed Canadian Obligations or Guaranteed European Obligations, as the case may be, and for all the period during which payments effected in such respect are subject to the claw back and/or avoidance under any applicable law.
7.14    Keepwell.  Each Qualified ECP Guarantor hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide such funds or other support as may be needed from time to time by each other Guarantor to honor all of its obligations under the guarantee contained in this Section 7 in respect of Swap Obligations (provided, however, that each Qualified ECP Guarantor shall only 

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be liable under this Section 7.14 for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this Section 7.14, or otherwise under the guaranty contained in this Section 7, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount).  The obligations of each Qualified ECP Guarantor under this Section 7.14 shall remain in full force and effect until the full, unconditional and irrevocable performance and discharge of the Guaranteed Obligations, Guaranteed Canadian Obligations and Guaranteed European Obligations and the termination of all Revolving Commitments and expiration or cancellation of all Letters of Credit.  Each Qualified ECP Guarantor intends that this Section 7.14 constitute, and this Section 7.14 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each other Guarantor for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.
7.15    Limitation Of Enforcement.  
(a)    Limitation.  The European Administrative Agent agrees to restrict the enforcement of the guarantee granted by the relevant German Credit Party in its capacity as European Guarantor pursuant to this Agreement if and to the extent that (i) the relevant payment is applied in satisfaction of any liabilities of the relevant German Credit Party in its capacity as German Guarantor's direct or indirect shareholder(s) (upstream) or any entity affiliated to such shareholder (verbundenes Unternehmen) within the meaning of section 15 of the German Stock Corporation Act (Aktiengesetz) (cross-stream) (other than the liabilities of any of the relevant German Credit Party in its capacity as European Guarantor's subsidiaries and, for the avoidance of doubt, the relevant German Credit Party in its capacity as European Guarantor's own liabilities) and (ii) such payment under the guarantee would cause the amount of the relevant German Credit Party's net assets (Reinvermögen), as adjusted pursuant to the following provisions, to fall below the amount of its registered share capital (Stammkapital or Grundkapital, as applicable) (Begründung einer Unterbilanz) or to increase any already existing capital impairment (Vertiefung einer Unterbilanz) in violation of sections 30 and 31 of the German Limited Liability Company Act (GmbHG) or section 57 of the German Stock Corporation Act (Aktiengesetz), as applicable, (each such event is hereinafter referred to as a "Capital Impairment").  For the purposes of the calculation of a Capital Impairment, the following balance sheet items shall be adjusted as follows:
(i)    the amount of any increase of the relevant German Credit Party in its capacity as European Guarantor's registered share capital after the date of this Agreement that has been effected without prior written consent of the European Administrative Agent shall be deducted from the relevant German Credit Party in its capacity as European Guarantor's registered share capital; and
(ii)    loans provided to the relevant German Credit Party in its capacity as European Guarantor by any member of the group shall be disregarded if and to the extent such loans are subordinated or are considered subordinated by operation of law and such loans are not shown in the balance sheet as liability of the relevant German Credit Party in its capacity as European Guarantor.
(b)     Disposal of Relevant Assets.  In a situation where the relevant German Credit Party in its capacity as European Guarantor would not have sufficient assets to maintain its registered share capital after satisfaction (in whole or in part) of the relevant demand, the relevant German Credit Party in its capacity as European Guarantor shall dispose of all assets, to the extent legally permitted, which are not necessary for its business (nicht betriebsnotwendig) on market terms where the relevant assets are shown in the balance sheet of the relevant German Credit Party in its capacity as European Guarantor with a book value which is 

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significantly lower than the market value of such assets, provided, however, that such disposal does not have a commercially adverse effect.
(c)    Management Notification/Auditor's Determination.
(i)    The limitation pursuant to this Section 7.15 shall apply, subject to the following requirements, if following a notice by the European Administrative Agent that it intends to enforce any guarantee granted under this Agreement, the relevant German Credit Party in its capacity as European Guarantor notifies the European Administrative Agent("Management Notification") within fifteen (15) days upon receipt of the relevant notice that a Capital Impairment would occur (setting out in reasonable detail to what extent a Capital Impairment would occur and providing prima facie evidence that a realisation or other measures undertaken in accordance with the mitigation provisions set out above would not prevent such Capital Impairment). 
(ii)    If the Management Notification is contested by the European Administrative Agent, the European Administrative Agent shall nevertheless be entitled to enforce any guarantee granted under this Agreement up to such amount, which is, based on the Management Notification, undisputed between itself and the relevant German Credit Party in its capacity as European Guarantor. In relation to the amount which is in dispute, the relevant German Credit Party in its capacity as European Guarantorundertakes (at its own cost and expense) to arrange for the preparation of a balance sheet by its auditors in order to have such auditors determine whether (and if so, to what extent) any payment under this Agreement would cause a Capital Impairment (the "Auditor's Determination"). The Auditor's Determination shall be prepared, taking into account the adjustments set out above in relation to the calculation of a Capital Impairment, by applying the generally accepted accounting principles applicable from time to time in Germany (Grundsätze ordnungsmäßiger Buchführung) based on the same principles and evaluation methods as consistently applied by the relevant German Credit Party in its capacity as European Guarantor in the preparation of its financial statements, in particular in the preparation of its most recent annual balance sheet, and taking into consideration applicable court rulings of German courts. The relevant German Credit Party in its capacity as European Guarantor shall provide the Auditor's Determination to the European Administrative Agent within thirty (30) days from the date on which the European Administrative Agent contested the Management Notification in writing. The Auditor's Determination shall be binding on the relevant German Credit Party in its capacity as European Guarantor and the European Administrative Agent.
(iii)    If, and to the extent that, any security under this Agreement has been enforced without regard to the limitation set forth in clause (a) of this Section 7.15 because the amount of the available net assets pursuant to the Auditor's Determination is lower than the amount stated in the Management Notification, the European Administrative Agent shall upon written demand of the relevant German Credit Party in its capacity as European Guarantorto the European Administrative Agent repay any amount (if and to the extent already paid to the European Administrative Agent) up to and including the amount calculated in the Auditor's Determination as of the date the demand to enforce any guarantee under this Agreement was made and in accordance with clause (ii) above, provided such demand for repayment is made to the European Administrative Agent within 6 months (Ausschlussfrist) from the date any security under this Agreement has been enforced.

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(iv)    If pursuant to the Auditor's Determination the amount of the available net assets is higher than set out in the Management Notification, the European Administrative Agent shall be entitled to enforce into such available net assets accordingly.
(d)    Exceptions.  Notwithstanding the above, the limitations pursuant to this Clause 7.15 shall not apply:
(i)    if the relevant German Credit Party in its capacity as European Guarantor is (i) party as dominated entity (beherrschtes Unternehmen) of a domination agreement (Beherrschungsvertrag) and/or a profit and loss transfer agreement (Gewinnabführungsvertrag) pursuant to section 30 para 1 sentence 2 of the German Limited Liability Company Act (GmbHG), unless the dominating entity is insolvent; or 
(ii)    if the relevant German Credit Party in its capacity as European Guarantor has a recourse right (Rückgriffsanspruch) pursuant to section 30 para 1 sentence 2 of the German Limited Liability Company Act (GmbHG), towards its direct or indirect shareholder(s) (upstream) or any entity affiliated to such shareholder (verbundenes Unternehmen) within the meaning of section 15 of the German Stock Corporation Act (Aktiengesetz) (cross-stream) which is fully recoverable (werthaltig); or
(iii)    for so long as the relevant German Credit Party in its capacity as European Guarantor fails, after the expiry of the relevant time periods set forth in clause (c) of this Section 7.15, to deliver the Management Notification and/or the Auditor's Determination pursuant to clause (c) of this Section 7.15 (Management Notification/Auditor's Determination); or
(iv)    to any amounts borrowed under the Credit Documents to the extent the proceeds of such borrowing are on-lent to the relevant German Credit Party in its capacity as European Guarantor or its Subsidiaries to the extent that any amounts so on-lent are still outstanding at the time the relevant demand is made against the relevant German Credit Party in its capacity as European Guarantor and the repayment of such loans as a result of such on-lending is not prohibited by operation of law; or
(v)    to any amounts borrowed under the Credit Documents by the relevant German Credit Party in its capacity as European Guarantor to the extent that any amounts so borrowed are still outstanding at the time the relevant demand for repayment is made against the relevant German Credit Party in its capacity as European Guarantor.
SECTION 8.    EVENTS OF DEFAULT
8.1    Events of Default.  If any one or more of the following conditions or events shall occur:
(a)    Failure to Make Payments When Due.  Failure by a Borrower to pay (i) when due any installment of principal of any Advance, whether at stated maturity, by acceleration, by notice of voluntary prepayment, by mandatory prepayment or otherwise, (ii) when due any amount payable to any Issuer in reimbursement of any drawing under a Letter of Credit or (iii) within five (5) Business Days after the same becomes due, any interest on any Advance or drawing under any Letter of Credit or any fee or any other amount due hereunder or under any other Credit Document; or

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(b)    Default in Other Agreements. (i) Failure of any Credit Party or any of their respective Subsidiaries to pay when due any principal of or interest on or any other amount payable in respect of one or more items of Indebtedness (other than Indebtedness referred to in Section 8.1(a)) with an aggregate principal amount of $20,000,000 or more, in each case beyond the grace period, if any, provided therefor, or (ii) breach or default by any Credit Party or any of their respective Subsidiaries with respect to any other term of (1) one or more items of Indebtedness in the individual or aggregate principal amounts referred to in clause (i) above or (2) any loan agreement, mortgage, indenture or other agreement relating to such item(s) of Indebtedness, in each case beyond the grace period, if any, originally provided therefor, if the effect of such breach or default is to cause, or to permit the holder or holders of that Indebtedness (or a trustee on behalf  of such holder or holders), to cause, that Indebtedness to become or be declared due and payable (or redeemable) prior to its stated maturity or the stated maturity of any underlying obligation, as the case may be; or
(c)    Breach of Certain Covenants.  Failure of (i) the Lead Borrower to deliver a Borrowing Base Certificate required to be delivered pursuant to Section 5.19(a) within five (5) Business Days after the date such Borrowing Base Certificate was required to be delivered pursuant to Section 5.19(a) and (ii) any Credit Party to perform or comply with any term or condition contained in Section 2.19, Section 5.1(e)(i), Section 5.2, Section 5.5, Section 5.16, Section 5.17 or Section 6; or
(d)    Breach of Representations, etc.  Any representation, warranty, certification or other statement made or deemed made by any Credit Party in any Credit Document or in any statement or certificate at any time given by any Credit Party or any of its Subsidiaries in writing pursuant hereto or thereto or in connection herewith or therewith shall be false in any material respect as of the date made or deemed made; or
(e)    Other Defaults Under Credit Documents.  Any Credit Party shall default in the performance of or compliance with any term contained herein or any of the other Credit Documents, other than any such term referred to in any other subsection of this Section 8.1, and such default shall not have been remedied or waived within twenty (20) Business Days after the earlier of (i) an Authorized Officer of the Lead Borrower becoming aware of such default or (ii) receipt by the Lead Borrower of notice from the Administrative Agent, the European Administrative Agent or any Lender of such default; or
(f)    Involuntary Bankruptcy; Appointment of Receiver, etc. (i) A court of competent jurisdiction shall enter a decree or order for relief in respect of the Lead Borrower or any of its Subsidiaries (other than an Immaterial Subsidiary) in an involuntary case under the Bankruptcy Code or under any other applicable Insolvency Laws now or hereafter in effect, which decree or order is not stayed; or any other similar relief shall be granted under any applicable federal, provincial, state or foreign law; or (ii) an involuntary case (including, without limitation, a winding-up, dissolution, reorganization, compromise or arrangement) shall be commenced against the Lead Borrower or any of its Subsidiaries (other than an Immaterial Subsidiary) under the Bankruptcy Code or under any other applicable Insolvency Laws now or hereafter in effect, or any application shall have been made, or is required by applicable law to be made, with a court for the opening of insolvency proceedings with regard to the Lead Borrower or any of its Subsidiaries (other than an Immaterial Subsidiary); or a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, interim receiver, receiver and manager, sequestrator, trustee, custodian or other officer having similar powers over the Lead Borrower or any of its Subsidiaries (other than an Immaterial Subsidiary), or over all or a substantial part of its property, shall have been entered; or there shall have occurred the involuntary appointment of an interim receiver, trustee, monitor or other custodian of the Lead Borrower or any of its Subsidiaries (other than an Immaterial Subsidiary) for all or a substantial part of its property; or a warrant of attachment, execution or similar process shall have been 

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issued against any substantial part of the property of the Lead Borrower or any of its Subsidiaries (other than an Immaterial Subsidiary), and (A) in relation only to any Foreign Subsidiary, any such event described in this clause (ii) shall continue for seven (7) days without having been dismissed, bonded or discharged, and (B) in relation only to the Lead Borrower or any Domestic Subsidiary, any such event described in this clause (ii) shall continue for sixty (60) days without having been dismissed, bonded or discharged; or
(g)    Voluntary Bankruptcy; Appointment of Receiver, etc. (i) The Lead Borrower or any of its Subsidiaries (other than an Immaterial Subsidiary) shall have an order for relief entered with respect to it or shall commence a voluntary case (including, without limitation, a winding-up, dissolution, reorganization, compromise or arrangement) under the Bankruptcy Code or under any other applicable Insolvency Laws now or hereafter in effect, or shall consent to the entry of an order for relief in an involuntary case, or to the conversion of an involuntary case to a voluntary case, under any such law, or shall consent to the appointment of or taking possession by a receiver, trustee or other custodian for all or a substantial part of its property; or the Lead Borrower or any of its Subsidiaries (other than an Immaterial Subsidiary) shall make any assignment for the benefit of creditors; or (ii) the Lead Borrower or any of its Subsidiaries (other than an Immaterial Subsidiary) shall be unable, or shall fail generally, or shall admit in writing its inability, to pay its debts as such debts become due; or the board of directors (or similar governing body) of the Lead Borrower or any of its Subsidiaries (other than an Immaterial Subsidiary) (or any committee thereof) shall adopt any resolution or otherwise authorize any action to approve any of the actions referred to herein or in Section 8.1(f); or (iii) with respect to a German Borrower, a German Insolvency Event occurs; or
(h)    Judgments and Attachments.  Any money judgment, writ or warrant of attachment or similar process involving in the aggregate at any time an amount in excess of $15,000,000 (in either case to the extent not adequately covered by insurance as to which a solvent and unaffiliated insurance company has acknowledged coverage) shall be entered or filed against the Lead Borrower or any of its Subsidiaries or any of their respective assets and shall remain undischarged, unvacated, unbonded or unstayed for a period of sixty (60) days (or in any event later than five (5) days prior to the date of any proposed sale thereunder); or
(i)    Dissolution.  Any order, judgment or decree shall be entered against any Credit Party decreeing the dissolution or split up of such Credit Party and such order shall remain undischarged or unstayed for a period in excess of thirty (30) days (provided, that none of the Lenders, Swing Loan Lenders, Issuers, nor any Agents shall have any obligation to fund an Advance or issue any Letter of Credit during such period); or
(j)    Employee Benefit Plans. (i) There shall occur one or more ERISA Events which individually or in the aggregate results in or could reasonably be expected to result in liability of the Lead Borrower any of its Subsidiaries or any of their respective ERISA Affiliates in excess of $15,000,000 during the term hereof; or (ii) there exists any fact or circumstance that would reasonably be expected to result in the imposition of a Lien or security interest under section 412(n) of the Code or under ERISA; or (iii) there shall occur one or more Canadian Pension Plan Events which individually or in the aggregate results in or could reasonably be expected to result in liability of the Canadian Borrower any Affiliate of a Canadian Borrower in excess of $7,500,000; or
(k)    Change of Control.  A Change of Control shall occur; or
(l)    Guaranties, Collateral Documents and Other Credit Documents.  At any time after the execution and delivery thereof, (i) any Guaranty for any reason, other than the satisfaction in full of all Obligations, shall cease to be in full force and effect (other than in accordance with its terms) or shall be 

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declared to be null and void or any Guarantor shall repudiate its obligations thereunder, (ii) this Agreement or any Collateral Document ceases to be in full force and effect (other than by reason of a release of Collateral in accordance with the terms hereof or thereof or the satisfaction in full of the Obligations in accordance with the terms hereof or any other termination of such Collateral Document in accordance with the terms thereof) or shall be declared null and void, or the Collateral Agent shall not have or shall cease to have a valid and perfected Lien in any Collateral purported to be covered by the Collateral Documents with the priority required by the relevant Collateral Document, in each case for any reason other than the failure of the Collateral Agent or any Secured Party to take any action within its control, or (iii) any Credit Party shall contest the validity or enforceability of any Credit Document in writing or deny in writing that it has any further liability, including with respect to future advances by the Lenders, under any Credit Document to which it is a party or any Credit Document shall cease to be in full force and effect or shall be declared null and void; or
(m)    Disposals and Encumbrances on Real Property.  A Credit Party (i) creates or permits any of its Subsidiaries, directly or indirectly, to create any Lien permitted pursuant to Section 6.2(u) and such Lien is not removed within ten (10) days of its effectiveness other than where such Lien is permitted pursuant to any other clause of Section 6.2 or (ii) makes or permits any of its Subsidiaries to make a disposition permitted pursuant to Section 6.9(g) other than where such disposal is permitted pursuant to any other clause of Section 6.9; or
(n)    Failure to Reimburse the Issuer from Revolving Advances. The failure of any Issuer to be reimbursed in full for any drawings under any Letters of Credit from proceeds of Revolving Advances required to be made pursuant to Section 2.13(b);
THEN, (1) upon the occurrence of any Event of Default described in Sections 8.1(f) or (g), automatically, and (2) upon the occurrence and continuation of any other Event of Default, at the request of (or with the consent of) the Requisite Lenders, upon notice to the Lead Borrower by the Administrative Agent, (A) the  Revolving Commitments of each Lender and the obligation of each Issuer to issue any Letter of Credit shall immediately terminate; (B) each of the following shall immediately become due and payable, in each case without presentment, demand, protest or other requirements of any kind, all of which are hereby expressly waived by each Credit Party: (I) the unpaid principal amount of and accrued interest on the Advances, and (II) an amount equal to the maximum amount that may at any time be drawn under all Letters of Credit then outstanding (regardless of whether any beneficiary under any such Letter of Credit shall have presented, or shall be entitled at such time to present, the drafts or other documents or certificates required to draw under such Letters of Credit), and (III) all other Obligations; provided that the foregoing shall not affect in any way the obligations of the Lenders under Section 2.13(b); (C) the Applicable Agent may cause the Collateral Agent and/or the European Collateral Agent to enforce any and all Liens and security interests created pursuant to the Collateral Documents; (D) any Agent may exercise any and all of its other rights and remedies under this Agreement, the other Credit Documents and applicable law; and (E) the Applicable Agent shall direct each applicable Borrower to pay (and each Borrower hereby agrees upon receipt of such notice, or upon the occurrence of any Event of Default specified in Section 8.1(f) and (g) to pay) to the Applicable Agent such additional amounts of cash, to be held as security for each Borrower’s Reimbursement Obligations in respect of Letters of Credit then outstanding, equal to the Maximum Undrawn Amount at such time.
SECTION 9.    AGENTS  
9.1    Appointment of Agents.  Each Lender, each Issuer and each Swing Loan Lender hereby designates (i) PNC Bank, National Association, to act as Administrative Agent and Collateral Agent and (ii) JPMorgan Chase Bank, N.A., to act as European Administrative Agent and European Collateral 

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Agent, in each case for such Lender, Issuer and Swing Loan Lender under this Agreement and the other Credit Documents.  Each Lender, each Issuer and each Swing Loan Lender hereby irrevocably authorizes each Agent to take such action on its behalf under the provisions of this Agreement and the other Credit Documents and to exercise such powers and to perform such duties hereunder and thereunder as are specifically delegated to or required of such Agent by the terms hereof and thereof and such other powers as are reasonably incidental thereto and each Agent shall hold all Collateral, payments of principal and interest, fees (except the fees set forth in Section 2.7(b), charges and collections received pursuant to this Agreement, for the ratable benefit of the Lenders, the Issuers and the Swing Loan Lenders to the extent entitled thereto.  Each Agent may perform any of its duties hereunder by or through its agents or employees. As to any matters not expressly provided for by this Agreement (including collection of the Notes), no Agent shall be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the Requisite Lenders, and such instructions shall be binding; provided, however, that no Agent shall be required to take any action which, in such Agent’s discretion, exposes such Agent to liability or which is contrary to this Agreement or the other Credit Documents or Requirement of Law unless such Agent is furnished with an indemnification reasonably satisfactory to such Agent with respect thereto.

9.2    Nature of Duties.  No Agent shall have any duties or responsibilities except those expressly set forth in this Agreement and the other Credit Documents.  Neither any Agent nor any of its officers, directors, employees or agents shall be (i) liable for any action taken or omitted by them as such hereunder or in connection herewith, unless caused by their gross (not mere) negligence or willful misconduct (as determined by a court of competent jurisdiction in a final non-appealable judgment), or (ii) responsible in any manner for any recitals, statements, representations or warranties made by any Credit Party or any officer thereof contained in this Agreement, in any of the other Credit Documents or in any certificate, report, statement or other document referred to or provided for in, or received by any Agent under or in connection with, this Agreement or any of the other Credit Documents or for the value, validity, effectiveness, genuineness, due execution, enforceability or sufficiency of this Agreement, or any of the other Credit Documents or for any failure of any Credit Party to perform its obligations hereunder.  No Agent shall be under any obligation to any Lender, any Issuer or any Swing Loan Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any of the other Credit Documents, or to inspect the properties, books or records of any Credit Party.  The duties of each Agent with respect to the Advances and the Letters of Credit to (or for the benefit of) the Borrowers shall be mechanical and administrative in nature; no Agent shall have by reason of this Agreement a fiduciary relationship in respect of any Lender, any Issuer or any Swing Loan Lender; and nothing in this Agreement, expressed or implied, is intended to or shall be so construed as to impose upon any Agent any obligations in respect of this Agreement or the transactions described herein except as expressly set forth herein.
9.3    German Collateral Matters  In relation to the German Collateral Documents the following additional provisions shall apply:
(a)    The European Collateral Agent, with respect to the part of the Collateral secured pursuant to the German Collateral Documents or any other Collateral created under German law ("German Collateral"), shall:
		
	i.
	hold, administer and realise such German Collateral that is transferred or assigned by way of security (Sicherungseigentum/Sicherungsabtretung) or otherwise granted to it and is creating or evidencing a non-accessory security right (nicht akzessorische 

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Sicherheit) in its own name as trustee (Treuhänder) for the benefit of the Secured Parties;
		
	ii.
	hold, administer, and realise any such German Collateral that is pledged (verpfändet) or otherwise transferred to the European Collateral Agent and is creating or evidencing an accessory security right (akzessorische Sicherheit) as agent.

(b)    With respect to the German Collateral, each Secured Party hereby authorizes and each future Secured Party by becoming a party to this Agreement in accordance with Section 10.6 of this Agreement authorizes and grants a power of attorney (Vollmacht) to the European Collateral Agent (whether or not by or through employees or agents) to:
		
	i.
	to accept as its representative (Stellvertreter) any pledge or other creation of any accessory security right granted in favor of such Secured Party in connection with the German Collateral Documents and to agree to and execute on its behalf as its representative (Stellvertreter) any amendments and/or alterations to any German Collateral Documents or any other agreement related to such German Collateral which creates a pledge or any other accessory security right (akzessorische Sicherheit) including the release or confirmation of release of such security;

		
	ii.
	execute on behalf of itself and the Secured Parties where relevant and without the need for any further referral to, or authority from, the Secured Parties or any other person all necessary releases of any such German Collateral secured under the German Collateral Documents or any other agreement related to such German Collateral;

		
	iii.
	realize such Collateral in accordance with the German Collateral Documents or any other agreement securing such German Collateral; and

		
	iv.
	make, receive all declarations and statements and undertake all other necessary actions and measures which are necessary or desirable in connection with such German Collateral or the German Collateral Documents or any other agreement securing the German Collateral;

		
	v.
	take such action on its behalf as may from time to time be authorized under or in accordance with the German Collateral Documents; and

		
	vi.
	exercise such rights, remedies, powers and discretions as are specifically delegated to or conferred upon the Secured Parties under the German Collateral Documents together with such powers and discretions as are reasonably incidental thereto.

(c)    Each of the Secured Parties agrees that, if the courts of Germany do not recognize or give effect to the trust expressed to be created by this Agreement or any Collateral Document, the relationship of the Secured Parties to the European Collateral Agent shall be construed as one of principal and agent but, to the extent permissible under the laws of Germany, all the other provisions of this Agreement shall have full force and effect between the parties hereto.
(d)    Each Secured Party hereby ratifies and approves, and each future Secured Party by becoming a party to this Agreement in accordance with Section 10.6 of this Agreement ratifies and approves, all acts and declarations previously done by the European Collateral Agent on such person’s behalf (including 

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for the avoidance of doubt the declarations made by the European Collateral Agent as representative without power of attorney (Vertreter ohne Vertretungsmacht) in relation to the creation of any pledge (Pfandrecht) on behalf and for the benefit of each Secured Party as future pledgee or otherwise).
(e)    For the purpose of performing its rights and obligations as European Collateral Agent and to make use of any authorization granted under the German Collateral Documents, each Secured Party hereby authorizes, and each future Secured Party by becoming a party to this Agreement in accordance with Section 10.6 of this Agreement authorizes, the European Collateral Agent to act as its agent (Stellvertreter), and releases the European Collateral Agent from any restrictions on representing several persons and self-dealing under any applicable law, and in particular from the restrictions of Section 181 of the German Civil Code (Bürgerliches Gesetzbuch). The European Collateral Agent has the power to grant sub-power of attorney, including the release from the restrictions of section 181 of the German Civil Code (Bürgerliches Gesetzbuch).
9.4    Parallel Debt.
(a)    Each Credit Party hereby irrevocably and unconditionally undertakes (and to the extent necessary undertakes in advance) to pay to the European Collateral Agent amounts equal to any amounts owing from time to time by such Credit Party to any Secured Party under this Agreement and any other Credit Document pursuant to any Obligations as and when those amounts are due under any Credit Document (such payment undertakings under this Section 9.4 and the obligations and liabilities resulting there from being the "Parallel Debt"). 
(b)    The European Collateral Agent shall have its own independent right to demand payment of the Parallel Debt by the Credit Party. Each Credit Party and the European Collateral Agent acknowledge that the obligations of each Credit Party under Section 9.4 are several, separate and independent (selbständiges Schuldanerkenntnis) from, and shall not in any way limit or affect, the corresponding obligations of each Credit Party to any Secured Party under this Agreement or any other Credit Document (the "Corresponding Debt") nor shall the amounts for which each Credit Party are liable under this Section 9.4 be limited or affected in any way by its Corresponding Debt provided that:
(i)    the Parallel Debt shall be decreased to the extent that the Corresponding Debt has been irrevocably paid or discharged (other than, in each case, contingent obligations); 
(ii)    the Corresponding Debt shall be decreased to the extent that the Parallel Debt has been irrevocably paid or discharged; 
(iii)    the amount of the Parallel Debt shall at all times be equal to the amount of the Corresponding Debt; and
(iv)    for the avoidance of doubt, the Parallel Debt will become due and payable at the same time when the Corresponding Debt becomes due and payable.
(c)    The security granted under any German Collateral Document with respect to the Parallel Debt is granted to the European Collateral Agent in its capacity as sole creditor of the Parallel Debt

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(d)    Without limiting or affecting the European Collateral Agent's rights against any Credit Party (whether under this Agreement or any other Credit Document), each of the Credit Party acknowledges that:
(i)    Nothing in this Agreement shall impose any obligation on the European Collateral Agent to advance any sum to any Credit Party or otherwise under any Credit Document; and
(ii)    for the purpose of any vote taken under any Credit Document, the European Collateral Agent shall not be regarded as having any participation or commitment other that those which it has in its capacity as a Lender.
(e)    The parties to this Agreement acknowledge and confirm that the provisions contained in this Section 9.4 shall not be interpreted so as to increase the maximum total amount of the Obligations.
(f)    The Parallel Debt shall remain effective in case a third person should assume or be entitled, partially or in whole, to any rights of any of the Secured Parties under any Credit Documents, be it by virtue of assignment, novation or otherwise.
(g)    All monies received or recovered by the European Collateral Agent pursuant to this Agreement and all amounts received or recovered by the European Collateral Agent from or by the enforcement of any security granted to secure the Parallel Debt shall be applied in accordance with this Agreement.
9.5    Lack of Reliance on Agent.Independently and without reliance upon any Agent or any Lender, each Lender, each Issuer and each Swing Loan Lender has made and shall continue to make (i) its own independent investigation of the financial condition and affairs of each Borrower and each Guarantor in connection with the making and the continuance of the Advances and the Letters of Credit hereunder and the taking or not taking of any action in connection herewith, and (ii) its own appraisal of the creditworthiness of each Borrower and each Guarantor.  No Agent shall have any duty or responsibility, either initially or on a continuing basis, to provide any Lender, any Issuer or any Swing Loan Lender with any credit or other information with respect thereto, whether coming into its possession before making of the Advances or Letters of Credit or at any time or times thereafter except as shall be provided by any Borrower pursuant to the terms hereof.  No Agent shall be responsible to any Lender, the Issuer or any Swing Loan Lender for any recitals, statements, information, representations or warranties herein or in any agreement, document, certificate or a statement delivered in connection with or for the execution, effectiveness, genuineness, validity, enforceability, collectability or sufficiency of this Agreement or any other Credit Document, or of the financial condition of any Borrower or any Guarantor, or be required to make any inquiry concerning either the performance or observance of any of the terms, provisions or conditions of this Agreement, the Notes, the other Credit Documents or the financial condition or prospects of any Borrower or any Guarantor, or the existence of any Event of Default or any Default.
9.6    Resignation of Agent; Successor Agent.  Any Agent may resign on thirty (30) days written notice to each of the Lenders, the Issuers and the Applicable Lead Borrower and upon such resignation, the Requisite Lenders will promptly designate a successor to such Agent reasonably satisfactory to the Applicable Lead Borrower (provided that no such approval by the Applicable Lead Borrower shall be required (i) in any case where the successor Agent is one of the Lenders or (ii) after the occurrence and during the continuance of any Event of Default).  Any such successor Agent shall succeed to the rights, powers and duties of the 

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applicable Agent that is resigning, and shall in particular succeed to all of such Agent’s right, title and interest in and to all of the Liens in the Collateral securing the Obligations created hereunder or any other Credit Document (including the Mortgages, Security Agreements, the Landlord Personal Property Collateral Access Agreements, Deposit Account Control Agreements and Securities Account Control Agreements) and the terms “Administrative Agent”,  “Collateral Agent”, “European Administrative Agent” and “European Collateral Agent” shall mean such successor administrative and/or collateral agent effective upon its appointment, and the former Agent’s rights, powers and duties as such Agent shall be terminated, without any other or further act or deed on the part of such former Agent.  However, notwithstanding the foregoing, if at the time of the effectiveness of the new Agent’s appointment, any further actions need to be taken in order to provide for the legally binding and valid transfer of any Liens in the Collateral from the former Collateral Agent or European Collateral Agent, as applicable, to the new Agent and/or for the perfection of any Liens in the Collateral as held by the new Agent or it is otherwise not then possible for the new Agent to become the holder of a fully valid, enforceable and perfected Lien as to any of the Collateral, the former Collateral Agent or European Collateral Agent, as applicable, shall continue to hold such Liens solely as agent for perfection of such Liens on behalf of the new Agent until such time as the new Agent can obtain a fully valid, enforceable and perfected Lien on all Collateral, provided that the Collateral Agent or European Collateral Agent, as applicable, shall not be required to or have any liability or responsibility to take any further actions after such date as such agent for perfection to continue the perfection of any such Liens (other than to forego from taking any affirmative action to release any such Liens).  After any Agent’s resignation as an Agent, the provisions of this Section 9, and any indemnification rights under this Agreement, including without limitation, rights arising under Section 10.3, shall inure to its benefit as to any actions taken or omitted to be taken by it while it was such Agent under this Agreement (and in the event the resigning Collateral Agent or European Collateral Agent, as applicable, continues to hold any Liens pursuant to the provisions of the immediately preceding sentence, the provisions of this Section 9 and any indemnification rights under this Agreement, including without limitation, rights arising under Section 10.3, shall inure to its benefit as to any actions taken or omitted to be taken by it in connection with such Liens).
9.7    Certain Rights of Agent.  If any Agent shall request instructions from the Lenders with respect to any act or action (including failure to act) in connection with this Agreement or any other Credit Document, such Agent shall be entitled to refrain from such act or taking such action unless and until such Agent shall have received instructions from the Requisite Lenders; and such Agent shall not incur liability to any Person by reason of so refraining.  Without limiting the foregoing, the Lenders shall not have any right of action whatsoever against any Agent as a result of its acting or refraining from acting hereunder in accordance with the instructions of the Requisite Lenders.
9.8    Reliance.  Each Agent shall be entitled to rely, and shall be fully protected in relying, upon any note, writing, resolution, notice, statement, certificate, email, facsimile, telex, teletype or telecopier message, cablegram, order or other document or telephone message believed by it to be genuine and correct and to have been signed, sent or made by the proper person or entity, and, with respect to all legal matters pertaining to this Agreement and the other Credit Documents and its duties hereunder, upon advice of counsel selected by it.  Each Agent may employ agents and attorneys-in-fact and shall not be liable for the default or misconduct of any such agents or attorneys-in-fact selected by such Agent with reasonable care.
9.9    Notice of Default.  No Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default hereunder or under the other Credit Documents, unless such Agent has received notice from a Lender or the Lead Borrower or the European Borrowers referring to this Agreement or the other Credit Documents, describing such Default or Event of Default and stating that such notice is a “notice of default”.  In the event that any Agent receives such a notice, such Agent shall give notice thereof to the Lenders.  Each Agent shall take such action with respect to such Default or Event of 

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Default as shall be reasonably directed by the Requisite Lenders; provided, that, unless and until such Agent shall have received such directions, such Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable in the best interests of the Lenders.
9.10    Indemnification.  To the extent any Agent is not reimbursed and indemnified by the applicable Borrowers, each Lender will reimburse and indemnify such Agent in proportion to its respective portion of the outstanding Revolving Advances under the applicable Facility and its respective Participation Commitments in the outstanding Swing Loans and Letters of Credit under such Facility in accordance herewith (or, if no Advances or Letters of Credit are outstanding under such Facility, pro rata according to its Revolving Commitment Percentage) from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against such Agent in performing its duties hereunder, or in any way relating to or arising out of this Agreement or any other Credit Document; provided that the Lenders shall not be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from such Agent’s gross (not mere) negligence or willful misconduct (as determined by a court of competent jurisdiction in a final non-appealable judgment).
9.11    Agent in its Individual Capacity.  With respect to the obligation of any Agent to lend under this Agreement, the Advances made by it shall have the same rights and powers hereunder as any other Lender and as if it were not performing the duties as Agent specified herein; and the term “Lender” or any similar term shall, unless the context clearly otherwise indicates, include such Agent in its individual capacity as a Lender.  Any Agent may engage in business with any Credit Party or any Affiliate thereof as if it were not performing the duties specified herein, and may accept fees and other consideration from any Credit Party or any Affiliate thereof for services in connection with this Agreement or otherwise without having to account for the same to Lenders.
9.12    Delivery of Documents.  To the extent the Administrative Agent or European Administrative Agent receives financial statements required under Sections 5.1(a), (b), (k) and (m) or Borrowing Base Certificates from the Lead Borrower or European Lead Borrower pursuant to the terms of this Agreement which the Lead Borrower or European Lead Borrower, as applicable, is not obligated to deliver to each Lender, the Administrative Agent or European Administrative Agent, as applicable, will promptly furnish such documents and information to the Lenders.
9.13    Borrowers’ Undertaking to Agents.  Without prejudice to their respective obligations to the Lenders under the other provisions of this Agreement, each (y) Domestic Borrower hereby undertakes with each Agent to pay to the Administrative Agent, and (z) European Borrower hereby undertakes with each Agent to pay to the European Administrative Agent, in each case from time to time on demand all amounts from time to time due and payable by it for the account of the Agents or the Lenders or any of them pursuant to this Agreement to the extent not already paid.  Any payment made pursuant to any such demand shall pro tanto satisfy the relevant Borrower’s obligations to make payments for the account of Lenders or the relevant one or more of them pursuant to this Agreement.
9.14    No Reliance on Agents’ Customer Identification Program.  To the extent the Advances or this Agreement is, or becomes, syndicated in cooperation with other Lenders, each Lender acknowledges and agrees that neither such Lender, nor any of its Affiliates, participants or assignees, may rely on any Agent to carry out such Lender's, Affiliate's, participant's or assignee's customer identification program, or other obligations required or imposed under or pursuant to the Patriot Act or the regulations thereunder, including the regulations contained in 31 CFR 103.121 or the Proceeds of Crime (Money Laundering) and Terrorist 

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Financing Act (Canada) and the regulations promulgated thereunder (as hereafter amended or replaced, collectively, the “CIP Regulations”), or any other Anti-Terrorism Law, including any programs involving any of the following items relating to or in connection with any of the Borrowers, their Affiliates or their agents, the other Credit Documents or the transactions hereunder or contemplated hereby: (i) any identity verification procedures, (ii) any recordkeeping, (iii) comparisons with government lists, (iv) customer notices or (v) other procedures required under the CIP Regulations or such Anti-Terrorism Laws.
9.15    Other Agreements.  Each of the Lenders and Issuers agrees that it shall not, without the express consent of the Applicable Agent, and that it shall, to the extent it is lawfully entitled to do so, upon the request of the Applicable Agent, set off against the respective applicable Obligations, any amounts owing by such Lender, such Issuer, or Swing Loan Lender to any Credit Party or any Deposit Accounts of any Credit Party now or hereafter maintained with such Lender or Issuer.  Anything in this Agreement to the contrary notwithstanding, each of the Lenders, the Issuer and the Swing Loan Lenders further agrees that it shall not, unless specifically requested to do so by the Applicable Agent, take any action to protect or enforce its rights arising out of this Agreement or the other Credit Documents, it being the intent of the Lenders that any such action to protect or enforce rights under this Agreement and the other Credit Documents shall be taken in concert and at the direction or with the consent of the Applicable Agent or the Requisite Lenders.
9.16    Appointment for English Law.  In this Agreement and any Collateral Document governed by English law, any rights and remedies exercisable by, any documents to be delivered to, or any other indemnities or obligations in favor of the European Collateral Agent shall be, as the case may be, exercisable by, delivered to, or be indemnities or other obligations in favor of, the European Collateral Agent (or any other person acting in such capacity) in its capacity as security trustee of the Secured Parties to the extent that the rights, deliveries, indemnities or other obligations relate to any Collateral Document governed by English law or the security thereby created.  Any obligations of the European Collateral Agent (or any other person acting in such capacity) in this Agreement and any Collateral Document governed by English law shall be obligations of the European Collateral Agent in its capacity as security trustee of the Secured Parties to the extent that the obligations relate to any Collateral Document governed by English law or the security thereby created. Additionally, in its capacity as security trustee of the Secured Parties, the European Collateral Agent (or any other person acting in such capacity) shall have (i) all the rights, remedies and benefits in favor of the European Collateral Agent contained in this Agreement, (ii) all the powers of an absolute owner of the security constituted by any Collateral Document governed by English law and (iii) all the rights, remedies and powers granted to it and be subject to all the obligations and duties owed by it under any Collateral Document governed by English law and/or any of the Credit Documents.
Each Secured Party hereby appoints the European Collateral Agent (i) to act as its trustee under and in relation to any Collateral Document governed by English law and (ii) to hold the assets subject to the security thereby created as trustee for the Secured Parties on the trusts and other terms contained in any Collateral Document governed by English law and each Secured Party hereby irrevocably authorizes the European Collateral Agent in its capacity as security trustee of Secured Parties to exercise such rights, remedies, powers and discretions as are specifically delegated to the European Collateral Agent as security trustee of the Secured Parties by the terms of any Collateral Document governed by English law together with all such rights, remedies, powers and discretions as are reasonably incidental thereto.
The Secured Parties agree that, at any time that the person acting as security trustee of the Secured Parties in respect of any Collateral Document governed by English law shall be a person other than the Agents, such other person shall have the rights, remedies, benefits and powers granted to the European Administrative Agent and/or the European Collateral Agent in its capacity as security trustee of the Secured Parties under this Agreement and (as the case may be) any Collateral Document governed by English law. Nothing shall 

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require the European Collateral Agent in the capacity as security trustee of the Secured Parties under this Agreement and any Collateral Document governed by English law to act as a trustee at common law or to be holding any property on trust, in any jurisdiction outside the United States of America or England and Wales which may not operate under the principles of trust or where such trust would not be recognized or its effects would not be enforceable.
9.17    Intercreditor Agreement.  Each Agent, as applicable, is authorized to enter into the Intercreditor Agreement and any other intercreditor agreement contemplated hereby with respect to Indebtedness that is (i) required or permitted to be subordinated hereunder and/or (ii) secured by Liens and which Indebtedness contemplates an intercreditor, subordination or collateral trust agreement (any such other Intercreditor agreement, an “Additional Agreement”), in a form and in substance satisfactory to such Agent, and the parties hereto acknowledge that the Intercreditor Agreement and any Additional Agreement is binding upon them.  Each Lender (a) hereby consents to the subordination of the Liens on the Term Priority Collateral securing the Obligations on the terms set forth in the Intercreditor Agreement, (b) hereby agrees that it will be bound by and will take no actions contrary to the provisions of the Intercreditor Agreement or any Additional Agreement and (c) hereby authorizes and instructs the Administrative Agent and Collateral Agent to enter into the Intercreditor Agreement or any Additional Agreement and to subject the Liens on the Collateral securing the US Obligations to the provisions thereof. The foregoing provisions are intended as an inducement to the Secured Parties to extend credit to the Borrowers and such Secured Parties are intended third-party beneficiaries of such provisions and the provisions of the Intercreditor Agreement or any Additional Agreement.
9.18    Québec Collateral Documents.  For the purposes of holding any security or hypothec which may now or in the future granted by any Canadian Credit Party pursuant to the laws of the Province of Quebec to secure the Canadian Obligations under any Credit Document, the Collateral Agent is hereby authorized and appointed to act on behalf of each of the Lenders, the Issuers and the Swing Loan Lenders as the holder of an irrevocable power of attorney (fondé de pouvoir) within the meaning of article 2692 of the Civil Code of Québec in order to hold any hypothec granted under the laws of the Province of Quebec as security for any bond, debenture or other title of indebtedness that may be issued by any Canadian Credit Party (as the case may be) pursuant to any deed of hypothec comprised in the Canadian Collateral Documents and to exercise such rights and duties as are conferred upon a fondé de pouvoir under the relevant deed of hypothec and applicable laws (with the power to delegate any such rights or duties). Notwithstanding the provisions of Section 32 of An Act Respecting the Special Powers of Legal Persons (Quebec), the fondé de pouvoir (person holding the power of attorney) of the Lenders, Issuers and the Swing Loan Lenders in whose favour a hypothec securing any bond, debenture or other title of indebtedness issued thereunder is granted may (but need not) be a Lender, an Issuer, or a Swing Loan Lender.  Each Lender, each Issuer and each Swing Loan Lender hereby acknowledges that any such bond or debenture constitutes a title of indebtedness, as such term is used in article 2692 of the Civil Code of Québec. Any person who becomes a Lender, an Issuer, or a Swing Loan Lender or any successor Collateral Agent shall be deemed to have consented to and ratified the foregoing appointment of the Collateral Agent as fondé de pouvoir, agent and mandatary on behalf of all Lenders, Issuers and the Swing Loan Lenders, including such person and any affiliate of such person designated as a Lender, an Issuer or the Swing Loan Lenders. For greater certainty, the Collateral Agent, acting as the holder of an irrevocable power of attorney (fondé de pouvoir), shall have the same rights, powers, immunities, indemnities and exclusions from liability as are prescribed in favour of the Collateral Agent in this Agreement, which shall apply mutatis mutandis. In the event of the resignation and appointment of a successor Collateral Agent, such successor Collateral Agent shall also act as such holder of an irrevocable power of attorney (fondé de pouvoir).
SECTION 10.    MISCELLANEOUS

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10.1    Notices. (a) Notices.  Unless otherwise specifically provided herein, any notice or other communication herein required or permitted to be given to a Credit Party or the Agents, shall be sent, in writing, or by any telecommunication device capable of creating a written record (including electronic mail), and addressed to such Person at its address as set forth on Appendix B or in the other relevant Credit Document or at such other address as shall be notified in writing (x) in the case of the Lead Borrower, the European Lead Borrower, the Administrative Agent or the Collateral Agent, to the other parties, (y) in the case of any Lender, to the Administrative Agent and the European Administrative Agent and (z) in the case of all other parties, to the Lead Borrower, the Administrative Agent and the European Administrative Agent.
(b)    Effectiveness of Notices.  All notices, demands, requests, consents and other communications described in clause (a) above (for purposes of this Section 10.1 only, a “Notice”) shall be effective (i) if delivered by hand, including any overnight courier service, upon personal delivery, (ii) if delivered by mail, when deposited in the mails, (iii) if delivered by posting (an “Internet Posting”) to a platform, an Internet website or a similar telecommunication device (a “Platform”) requiring that a user have prior access to such Platform when such Internet Posting shall have been made generally available on such Platform to the class of Person being notified (regardless of whether any such Person must accomplish, and whether or not any such Person shall have accomplished, any action prior to obtaining access to such items, including registration, disclosure of contact information, compliance with a standard user agreement or undertaking a duty of confidentiality) and such Person has been notified that such Internet Posting has been posted to such Platform and (iv) if delivered by electronic mail or any other telecommunications device, when transmitted to an electronic mail address (or by another means of electronic delivery) as provided in clause (a) above; provided, however, that notices and communications to any Agent shall not be effective until received by such Agent and all notices from or to a Credit Party shall be sent through the applicable Agent.
(c)    Use of Platform.  Notwithstanding clauses (a) and (b) above (unless the Applicable Agent requests that the provisions of clauses (a) and (b) above be followed) and any other provision in this Agreement or any other Credit Document providing for the delivery of any Notice by any other means, the Credit Parties shall deliver all Notices to the Applicable Agent by properly transmitting such Notices in an electronic/soft medium in a format acceptable to (i) in the case of the Administrative Agent, to patrick.mcconnell@pnc.com or such other electronic mail address (or similar means of electronic delivery) as the Administrative Agent may notify the Lead Borrower or (ii) in the case of the European Administrative Agent, to loanandagencylondon@jpmorgan.com or such other electronic mail address (or similar means of electronic delivery) as the European Administrative Agent may notify the European Lead Borrower.  Nothing in this clause (c) shall prejudice the right of any Agent or any of the Lenders to deliver any Notice to any Credit Party in any manner authorized in this Agreement or to request that the Lead Borrower or European Lead Borrower effects delivery in such manner.
(d)    Each Public Lender agrees to cause at least one individual at or on behalf of such Public Lender to at all times have selected the “Private Side Information” or similar designation on the content declaration screen of the Platform in order to enable such Public Lender or its delegate, in accordance with such Public Lender’s compliance procedures and applicable law, including United States federal and state securities laws, to make reference to information that is not made available through the “Public Side Information” portion of the Platform and that may contain Material Non-Public Information.  In the event that any Public Lender has determined for itself to not access any information disclosed through the Platform or otherwise, such Public Lender acknowledges that (i) other Lenders may have availed themselves of such information and (ii) neither the Lead Borrower nor the Administrative Agent nor the European Administrative Agent has any responsibility for such Public Lender’s decision to limit the scope of the information it has obtained in connection with this Agreement and the other Credit Documents.

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10.2    Expenses.  Whether or not the transactions contemplated hereby shall be consummated, the Borrowers agree to pay promptly (a) all reasonable costs and expenses of preparation of the Credit Documents and any consents, amendments, waivers or other modifications thereto; (b) all costs of furnishing all opinions by counsel for the Lead Borrower, the European Lead Borrower and the other Credit Parties; (c) all reasonable fees, expenses and disbursements of counsel to the Agents (in each case including allocated costs of internal counsel) in connection with the negotiation, preparation, execution and administration of the Credit Documents, advising the Agents of their respective rights and obligations under the Credit Documents and any consents, amendments, waivers or other modifications thereto and any other documents or matters requested by the Lead Borrower or European Lead Borrower; (d) all reasonable costs and expenses of creating and perfecting Liens in favor of the Applicable Collateral Agent, for the benefit of the Secured Parties pursuant hereto, including filing and recording fees, expenses, stamp, registration, transfer, documentary and other similar taxes, search fees, title insurance premiums and reasonable fees, expenses and disbursements of counsel to each Agent and of counsel providing any opinions that any Agent or the Requisite Lenders may reasonably request in respect of the Collateral or the Liens created pursuant to the Collateral Documents or any Agent’s rights and obligations under any Credit Document; (e) subject to the limitations set forth in Section 5.19, all reasonable costs, fees, expenses and disbursements of any auditors, accountants, consultants, advisors or appraisers retained by any Agent with the prior consent of the Applicable Lead Borrower (not to be unreasonably withheld; provided, however, the Applicable Lead Borrower’s consent shall not be required for the consultants and appraisers retained to deliver the reports pursuant to Section 5.19) unless a Default or an Event of Default has occurred and is continuing (in which case, the Applicable Lead Borrower’s consent shall not be required); (f) all reasonable costs and expenses (including the reasonable fees, expenses and disbursements of any appraisers, consultants, advisors and agents employed or retained by the Collateral Agent or European Collateral Agent and in each case, its counsel) in connection with the custody or preservation of any of the Collateral, including with respect to any environmental reviews; (g) all other reasonable costs and expenses incurred by each Agent in connection with the syndication of the Revolving Commitments and the negotiation, preparation and execution of the Credit Documents and any consents, amendments, waivers or other modifications thereto and the transactions contemplated thereby; provided, that, in each of the cases in the foregoing clauses (a) through (g), attorneys’ fees shall be limited to the fees of one (1) outside counsel in each applicable jurisdiction for each of the Administrative Agent and Collateral Agent and one (1) outside counsel in each applicable jurisdiction for each of the European Administrative Agent and European Collateral Agent and the Lenders in each relevant jurisdiction (and in the case of an actual or perceived conflict of interest among or between the Agents, the Issuers or the Lenders, one additional counsel to each affected Agent, Issuer or Lender and, if necessary, one local counsel to the Agents, the Issuers and the Lenders taken as a whole in each appropriate jurisdiction); and (h) after the occurrence of a Default or an Event of Default, all costs and expenses, including reasonable attorneys’ fees and costs of settlement, incurred by any Agent, the Issuer and the Lenders in enforcing any Obligations of or in collecting any payments due from any Credit Party hereunder or under the other Credit Documents by reason of such Default or Event of Default (including in connection with the sale of, collection from, or other realization upon any of the Collateral or the enforcement of the Guaranty) or in connection with any refinancing or restructuring of the credit arrangements provided hereunder in the nature of a “work out” or pursuant to any insolvency or bankruptcy cases or proceedings.
10.3    Indemnity. (a) In addition to the payment of expenses pursuant to Section 10.2, whether or not the transactions contemplated hereby shall be consummated, each Credit Party agrees to defend (subject to Indemnitees’ reasonable approval of counsel, which shall be limited to one (1) counsel to the Indemnitees taken as a whole (and in the case of an actual or perceived conflict of interest among or between Indemnitees, one additional counsel to each affected Indemnitee and, if necessary, one local counsel to the Indemnitees taken as a whole in each appropriate jurisdiction)), indemnify, pay and hold harmless, each Agent, each Issuer and each Lender and the officers, partners, directors, trustees, investment advisors, employees, agents 

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and Affiliates of each Agent, each Issuer and each Lender (each, an “Indemnitee”), from and against any and all Indemnified Liabilities; provided, no Credit Party shall have any obligation to any Indemnitee hereunder with respect to any Indemnified Liabilities to the extent such Indemnified Liabilities arise from the gross negligence or willful misconduct of that Indemnitee (as determined by a court of competent jurisdiction in a final and non-appealable judgment); provided, further, that Section 2.29 (instead of this Section 10.3) shall govern indemnities for Taxes.  To the extent that the undertakings to defend, indemnify, pay and hold harmless set forth in this Section 10.3 may be unenforceable in whole or in part because they are in violation of any law or public policy, the applicable Credit Party shall contribute the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by Indemnitees or any of them.
(b)    To the extent permitted by applicable law, no Credit Party shall assert, and each Credit Party hereby waives, any claim against the Lenders, the Issuers, the Agents and their respective Affiliates, directors, employees, attorneys or agents, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) in connection with, arising out of, as a result of, or in any way relating to, this Agreement or any Credit Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the transactions contemplated hereby or thereby, any Advance or Letter of Credit or the use of the proceeds thereof or any act or omission or event occurring in connection therewith, and the Lead Borrower, the European Lead Borrower and each other Credit Party hereby waives, releases and agrees not to sue upon any such claim or any such damages, whether or not accrued and whether or not known or suspected to exist in its favor.
10.4    Set Off.  In addition to any rights now or hereafter granted under applicable law and not by way of limitation of any such rights, upon the occurrence and continuation of any Event of Default each Lender, each Issuer and each of its respective Affiliates is hereby authorized by each Credit Party at any time or from time to time subject to the consent of the Applicable Agent, without notice to any Credit Party or to any other Person (other than the Applicable Agent), any such notice being hereby expressly waived, to set off and to appropriate and to apply any and all deposits (general or special, including Indebtedness evidenced by certificates of deposit, whether matured or unmatured, but not including trust accounts) and any other Indebtedness at any time held or owing by such Lender, such Issuer or each of its respective Affiliate to or for the credit or the account of any Credit Party against and on account of the obligations and liabilities of any Credit Party to such Lender or such Issuer hereunder and under the other Credit Documents, including all claims of any nature or description arising out of or connected hereto or with any other Credit Document, irrespective of whether or not (a) such Lender or such Issuer shall have made any demand hereunder or (b) the principal of or the interest on the Revolving Advances or any other amounts due hereunder shall have become due and payable pursuant to Section 2 and although such obligations and liabilities, or any of them, may be contingent or unmatured.
10.5    Amendments and Waivers. 
(a)    Requisite Lenders’ and Borrower Consent.  Subject to clauses (b) and (c) of this Section 10.5, no amendment, modification, termination or waiver (other than any Facility Increase Amendment in accordance with the terms hereof) of any provision of the Credit Documents (other than the Fee Letters), or consent to any departure by any Credit Party therefrom, shall in any event be effective without the written concurrence of the Credit Parties and the Requisite Lenders; provided, however, that the Administrative Agent may, with the consent of the Credit Parties, amend, modify or supplement this Agreement to cure any ambiguity, omission, defect or inconsistency or to grant a new Lien for the benefit 

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of the Secured Parties or extend an existing Lien over additional property, so long as such amendment, modification or supplement does not adversely affect the rights of any Lender or any Issuer.  
(b)    Affected Lenders’ Consent.  Without the written consent of the Credit Parties and each Lender (other than a Defaulting Lender) that would be adversely affected thereby, no amendment, modification, termination, or consent (other than any Facility Increase Amendment in accordance with the terms hereof) shall be effective if the effect thereof would:
(i)    extend the scheduled final maturity of any Revolving Commitment or Advance;
(ii)    waive, reduce or postpone any scheduled repayment on any Advance (but not prepayment);
(iii)    extend the stated expiration date of any Letter of Credit beyond the Revolving Commitment Termination Date;
(iv)    reduce the rate of interest on any Advance or any fee payable hereunder (other than any waiver of any increase in any interest rate or any fee pursuant to Section 2.07);
(v)    extend the time for payment of any such interest or fees;
(vi)    reduce or forgive the principal amount of any Advance or any Reimbursement Obligation in respect of any Letter of Credit;
(vii)    amend, modify, terminate or waive any provision of this Section 10.5(b) or Section 10.5(c);
(viii)    amend the definition of “Requisite Lenders” or “Revolving Commitment Percentage” or “Supermajority Lender”; provided, with the consent of the Requisite Lenders, additional extensions of credit or additional tranches established pursuant hereto may be included in the determination of “Requisite Lenders” or “Revolving Commitment Percentage” on substantially the same basis as the Revolving Commitments and the Revolving Advances are included on the Closing Date;
(ix)    extend the Revolving Commitment Termination Date;
(x)    (i) release all or substantially all of the Collateral or (ii) except as expressly permitted in the Credit Documents, release all or substantially all of the Guarantors from the Guaranty;
(xi)    consent to the assignment or transfer by any Credit Party of any of its rights and obligations under any Credit Document (other than the Fee Letters);
(xii)    amend, modify or waive any provision of Section 2.7(e); or
(xiii)    except as expressly provided otherwise in Section 2.22(e), without the prior written consent of the Supermajority Lenders, change the definition of the terms “Global 

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Excess Availability”, "90-Day Global Excess Availability", “Global Undrawn Availability” or “Borrowing Base” or any component definition used therein if, as a result thereof, the amounts available to be borrowed by the Borrowers would be increased; provided that the foregoing shall not limit the discretion of the Applicable Agent to use its Permitted Discretion to change, establish or eliminate any reserves or to add Accounts and Inventory acquired in a Permitted Acquisition to the Borrowing Base as provided herein; provided further, the consent of each Lender shall be required to increase the percentages set forth in the term "Borrowing Base" or add any new classes of eligible assets thereto,
(xiv)    without the prior written consent of the Supermajority Lenders, amend the Intercreditor Agreement, or
(xv)    change Section 10.06(c) in a manner which further restricts assignments thereunder.
(c)    Other Consents.  No amendment, modification, termination or waiver of any provision of the Credit Documents (other than the Fee Letters), or consent to any departure by any Credit Party therefrom, shall:
(i)    increase any Revolving Commitment of any Lender over the amount thereof then in effect without the consent of each Credit Party and such Lender; provided, no amendment, modification or waiver of any condition precedent, covenant, Default or Event of Default shall constitute an increase in any Revolving Commitment of any Lender;
(ii)    amend, modify, terminate or waive the rights or duties of any Issuer or Swing Loan Lender, as applicable, under this Agreement or the other Credit Documents without the consent of each Credit Party, the Administrative Agent, the European Administrative Agent and of such Issuer or such Swing Loan Lender, as applicable;
(iii)    amend, modify, terminate or waive any provision of Section 9 as the same applies to any Agent, or any other provision hereof as the same applies to the rights or obligations of any Agent, in each case without the consent of each Credit Party and such Agent; or
(iv)    amend, modify, terminate or waive any provision in a manner that affects the grant or nature of any option granted to any Special Purpose Vehicle pursuant to Section 10.6 or the right or duties of such Special Purpose Vehicle hereunder, in each case without the consent of such Special Purpose Vehicle.
(d)    Execution of Amendments, etc.  The Administrative Agent may, but shall have no obligation to, with the concurrence of any Lender, execute amendments, modifications, waivers or consents on behalf of such Lender.  Any waiver or consent shall be effective only in the specific instance and for the specific purpose for which it was given.  No notice to or demand on any Credit Party in any case shall entitle any Credit Party to any other or further notice or demand in similar or other circumstances.  Any amendment, modification, termination, waiver or consent effected in accordance with this Section 10.5 shall be binding upon each Lender at the time outstanding, each future Lender and, if signed by a Credit Party, on such Credit Party.
10.6    Successors and Assigns; Participations. 

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(a)    Generally.  This Agreement shall be binding upon the parties hereto and their respective successors and assigns and shall inure to the benefit of the parties hereto and the successors and assigns of the Lenders.  No Credit Party’s rights or obligations hereunder nor any interest therein may be assigned or delegated by any Credit Party without the prior written consent of the Agents and all Lenders.  No Lender may assign or otherwise transfer any of its rights or obligations hereunder except (A) to an assignee in accordance with the provisions of subsection (c) of this Section 10.6, (B) by way of participation in accordance with the provisions of subsection (g) of this Section 10.6, (C) by way of pledge or assignment of a security interest in accordance with the provisions of subsection (i) of this Section 10.6 or (D) by way of option in accordance with subsection (j) of this Section 10.6.  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, participants to the extent provided in clause (g) below, Special Purpose Vehicles to the extent provided in clause (i) below and, to the extent expressly contemplated hereby, Affiliates of each of the Agents and Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.
(b)    Register.  Each Borrower, the Applicable Agent and each Lender shall deem and treat the Persons listed as Lenders in the Register as the holders and owners of the corresponding Revolving Commitments and Revolving Advances listed therein for all purposes hereof, and no assignment or transfer of any such Revolving Commitment or Revolving Advance shall be effective, in each case, unless and until a Commitment Transfer Supplement effecting the assignment or transfer thereof shall have been delivered to and accepted by the Applicable Agent and recorded in the Register as provided in Section 10.6(e).  Prior to such recordation, all amounts owed with respect to the applicable Revolving Commitment or Revolving Advance shall be owed to the Lender listed in the Register as the owner thereof, and any request, authority or consent of any Person who, at the time of making such request or giving such authority or consent, is listed in the Register as a Lender shall be conclusive and binding on any subsequent holder, assignee or transferee of the corresponding Revolving Advance.
(c)    Right to Assign; Eligible Assignees; Minimum Amounts. (i) Each Lender shall have the right at any time to sell, assign or transfer all or a portion of its rights and obligations under this Agreement, including, without limitation, all or a portion of its Revolving Commitment or Revolving Advances owing to it or other Obligations (provided, however, that each such assignment shall be of a proportionate percentage of all of the assigning Lender’s rights and obligations under and in respect of any Revolving Advance and any related Revolving Commitments):
(A)    to any Person meeting the criteria of clause (i) of the definition of the term “Eligible Assignee”; and
(B)    to any Person meeting the criteria of clause (ii) of the definition of the term “Eligible Assignee” upon the giving of notice to the Applicable Lead Borrower, the Administrative Agent and the European Administrative Agent; subject, however, to the prior written consent by the Applicable Lead Borrower, the Administrative Agent and the European Administrative Agent (such consent not to be (x) in the case of the Administrative Agent, the European Administrative Agent and the Applicable Lead Borrower, unreasonably withheld, delayed or conditioned, or (y) in the case of the Applicable Lead Borrower, required at any time an Event of Default shall have occurred and then be continuing); provided that the Applicable Lead Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent and European Administrative Agent within ten (10) Business Days after having received notice thereof.

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(ii)    Each such assignment pursuant to this Section 10.6(c) shall be in an aggregate amount of not less than (determined as of the date the Commitment Transfer Supplement with respect to such assignment is delivered to the Administrative Agent and the European Administrative Agent, or, if a “Trade Date” is specified in the Commitment Transfer Supplement, as of such Trade Date) $2,500,000, unless the Administrative Agent and the European Administrative Agent and, so long as no Event of Default shall have occurred and be continuing, the Applicable Lead Borrower otherwise consents (each such consent not to be unreasonably withheld, delayed or conditioned); provided in the case of an assignment of (1) the entire remaining amount of the assigning Lender’s Revolving Advances and/or Revolving Commitments at the time owing to it, (2) contemporaneous assignments to Related Funds that equal at the least the amount specified in clause (B) above in the aggregate, or (3) of an assignment to a Lender, an Affiliate of a Lender or a Related Fund, no minimum amount need be assigned.  It is the express intent of the parties hereto that all Lenders shall at all times participate pro rata in the Domestic Facility and European Facility (and the applicable sublimits or components thereof); therefore, no Lender may sell, assign or transfer its rights and obligations under this Agreement with respect to solely the Domestic Facility or the European Facility (or the applicable sublimits or components thereof), or with respect to the European Borrowers or the Domestic Borrowers separately.
(d)    Mechanics.  The assigning Lender and the assignee thereof shall execute and deliver to the Administrative Agent and the European Administrative Agent a Commitment Transfer Supplement, together with (i) a processing and recordation fee of $3,500 (except (A) that only one fee shall be payable in the case of contemporaneous assignments to or by Related Funds and (C) the Administrative Agent and the European Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment), and (ii) such forms, certificates or other evidence, if any, with respect to United States federal income tax withholding matters as the assignee under such Commitment Transfer Supplement may be required to deliver to any Agent pursuant to Section 2.29(c).
(e)    Notice of Assignment.  Upon its receipt of a duly executed and completed Commitment Transfer Supplement, together with the processing and recordation fee referred to in Section 10.6(d) (and any forms, certificates or other evidence required by this Agreement in connection therewith), the Administrative Agent shall record the information contained in such Commitment Transfer Supplement in the register and shall maintain a copy of such Commitment Transfer Supplement (and shall provide a copy of such Commitment Transfer Supplement to the European Administrative Agent).
(f)    Effect of Assignment.  Subject to the terms and conditions of this Section 10.6, as of the “Effective Date” specified in the applicable Commitment Transfer Supplement: (i) the assignee thereunder shall have the rights and obligations of a “Lender” hereunder to the extent such rights and obligations hereunder have been assigned to it pursuant to such Commitment Transfer Supplement and shall thereafter be a party hereto and a “Lender” for all purposes hereof, and in the case of an assignment from an Issuer, shall have the rights and obligations of an “Issuer” hereunder to the extent such rights and obligations hereunder have been assigned to it pursuant to such Commitment Transfer Supplement and shall thereafter be an “Issuer” for all purposes hereof; (ii) the assigning Lender thereunder shall, to the extent that rights and obligations hereunder have been assigned thereby pursuant to such Commitment Transfer Supplement, relinquish its rights (other than any rights which survive the termination hereof under Section 10.8) and be released from its obligations hereunder (and, in the case of a Commitment Transfer Supplement covering all or the remaining portion of an assigning Lender’s rights and obligations hereunder, such Lender shall cease to be a party hereto and, if such Lender were an Issuer, relinquish its rights (other than any rights which survive the termination hereof under Section 10.8) and be released from its obligations hereunder as an 

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“Issuer”; provided, anything contained in any of the Credit Documents to the contrary notwithstanding, such assigning Lender shall continue to be entitled to the benefit of all indemnities hereunder as specified herein with respect to matters arising out of the prior involvement of such assigning Lender as a Lender hereunder); and (iii) the Revolving Commitments shall be modified to reflect the Revolving Commitment of such assignee and any Revolving Commitment of such assigning Lender, if any.  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with subsections (c) through (f) of this Section 10.6 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with clause (g).
(g)    Participations. (i) Each Lender shall have the right at any time to sell one or more participations to any Person (other than the Lead Borrower any of its Subsidiaries or any of its Affiliates (excluding Affiliate Lenders)) in all or any part of its Revolving Advances or Revolving Commitments or in any other Obligation; provided, that (x) such Lender’s obligations under this Agreement shall remain unchanged, (y) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (z) the Borrowers, the Agents, the Issuers and the Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 9.8 with respect to any payments made by such Lender to its participants.
(ii)    The holder of any such participation, other than an Affiliate of the Lender granting such participation, shall not be entitled to require such Lender to take or omit to take any action hereunder except that the participation agreement may provide that such Lender shall not, without the consent of the participant, agree to any amendment, modification or waiver that would (i) extend the final scheduled maturity of any Advance, or any Letter of Credit (unless such Letter of Credit is not extended beyond the Revolving Commitment Termination Date) in which such participant is participating, or reduce the rate or extend the time of payment of interest or fees thereon (except in connection with a waiver of applicability of any post default increase in interest rates) or reduce the principal amount thereof, or increase the amount of the participant’s participation over the amount thereof then in effect (it being understood that a waiver of any Default or Event of Default or of a mandatory reduction in the Revolving Commitments shall not constitute a change in the terms of such participation, and that an increase in any Revolving Commitment or Revolving Advance shall be permitted without the consent of any participant if the participant’s participation is not increased as a result thereof), (ii) consent to the assignment or transfer by any Credit Party of any of its rights and obligations under this Agreement or (iii) release all or substantially all of the Collateral under the Collateral Documents (except as expressly provided in the Credit Documents) supporting the Revolving Advances and Revolving Commitments hereunder in which such participant is participating.  The Borrowers agree that each participant shall be entitled to the benefits of Sections 2.27, 2.28 and 2.29 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (c) of this Section; provided that such participant agrees to be subject to the provisions of Sections 2.30 and 2.32 as though it were a Lender; provided, further, (i) a participant shall not be entitled to receive any greater payment under Section 2.28 or 2.29 than the applicable Lender would have been entitled to receive with respect to the participation sold to such participant, unless the sale of the participation to such participant is made with the Lead Borrower’s prior written consent, and (ii) a participant that would be a Non-US Lender if it were a Lender shall not be entitled to the benefits of Section 2.29 unless the Lead Borrower is notified of the participation sold to such participant and such 

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participant agrees, for the benefit of the Borrower, to comply with Section 2.29 as though it were a Lender.
(iii)    Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Borrowers, maintain a register on which it enters the name and address of each participant and the principal amounts (and stated interest) of each such participant’s interest in the Revolving Commitments or other Obligations (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any participant or any information relating to a participant's interest in any commitments, loans or its other obligations under any Credit Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan or other obligation is in registered form under Section 5f.103-1(c) of the Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the (i) Administrative Agent (in its capacity as Administrative Agent), and (ii) European Administrative Agent, as applicable, shall have no responsibility for maintaining a Participant Register.
(h)    Certain Other Assignments.  In addition to any other assignment permitted pursuant to this Section 10.6, any Lender may assign and/or pledge all or any portion of its Revolving Commitments or the other Obligations owed by or to such Lender, to secure obligations of such Lender including, without limitation, any Federal Reserve Bank as collateral security pursuant to Regulation A of the Board of Governors of the Federal Reserve System and any operating circular issued by such Federal Reserve Bank; provided, no Lender, as between the Borrowers and such Lender, shall be relieved of any of its obligations hereunder as a result of any such assignment and pledge, and provided, further, in no event shall the applicable Federal Reserve Bank, pledgee or trustee be considered to be a “Lender” or be entitled to require the assigning Lender to take or omit to take any action hereunder.
(i)    In addition to the other assignment rights provided in this Section 10.6, each Lender may grant to a Special Purpose Vehicle the option to make all or any part of any Revolving Advance that such Lender would otherwise be required to make hereunder and the exercise of such option by any such Special Purpose Vehicle and the making of Revolving Advances pursuant thereto shall satisfy (once and to the extent that such Revolving Advances are made) the obligation of such Lender to make such Revolving Advances thereunder, provided, however, that (x) nothing herein shall constitute a commitment or an offer to commit by such a Special Purpose Vehicle to make Revolving Advances hereunder and no such Special Purpose Vehicle shall be liable for any indemnity or other Obligation (other than the making of Revolving Advances for which such Special Purpose Vehicle shall have exercised an option, and then only in accordance with the relevant option agreement) and (y) such Lender’s obligations under the Credit Documents shall remain unchanged, such Lender shall remain responsible to the other parties for the performance of its obligations under the terms of this Agreement and shall remain the holder of the Obligations for all purposes hereunder.  Each party hereto acknowledges and agrees that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or other senior debt of any such Special Purpose Vehicle, such party shall not institute against, or join any other Person in instituting against, any Special Purpose Vehicle that has been granted an option pursuant to this clause (i) any bankruptcy, reorganization, insolvency or liquidation proceeding (such agreement shall survive the payment in full of the Obligations).  The terms of the designation of, or assignment to, such Special Purpose Vehicle shall not restrict such Lender’s ability to, or grant such Special Purpose Vehicle the right to, consent to any amendment or waiver to this Agreement or any other Credit Document or to the departure by any Borrower from any provision of this 

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Agreement or any other Credit Document without the consent of such Special Purpose Vehicle except, as long as the Agents and the Lenders, the Issuers and the Swing Loan Lenders and other Secured Parties shall continue to, and shall be entitled to continue to, deal solely and directly with such Lender in connection with such Lender’s obligations under this Agreement, to the extent any such consent would reduce the principal amount of, or the rate of interest on, any Obligations, amend this clause (i) or postpone any scheduled date of payment of such principal or interest.  Each Special Purpose Vehicle shall be entitled to the benefits of Sections 2.27, 2.28 and 2.29 as if it were such Lender; provided, however, that anything herein to the contrary notwithstanding, no Borrower shall, at any time, be obligated to make under Sections 2.27, 2.28 and 2.29 to any such Special Purpose Vehicle and any such Lender any payment in excess of the amount any of the Borrowers would have been obligated to pay to such Lender in respect of such interest if such Special Purpose Vehicle had not been assigned the rights of such Lender hereunder; provided, further, that such Special Purpose Vehicle shall have no direct right to enforce any of the terms of this Agreement against the Borrower, the Agents or the other Lenders.
10.7    Independence of Covenants.  All covenants hereunder shall be given independent effect so that if a particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists.
10.8    Survival of Representations, Warranties and Agreements.  All representations, warranties and agreements made herein shall survive the execution and delivery hereof and the making of any Credit Extension.  Notwithstanding anything herein or implied by law to the contrary, the agreements of each Credit Party set forth in Sections 2.27, 2.28, 2.29, 10.2, 10.3 and 10.4 and the agreements of the Lenders set forth in Sections 2.17, 9.2 and 9.8 shall survive the payment of the Revolving Advances, the cancellation or expiration of the Letters of Credit and the reimbursement of any amounts drawn thereunder, and the termination hereof.
10.9    No Waiver; Remedies Cumulative.  No failure or delay on the part of any Agent, any Issuer or any Lender in the exercise of any power, right or privilege hereunder or under any other Credit Document shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other power, right or privilege.  The rights, powers and remedies given to each Agent, each Issuer and each Lender hereby are cumulative and shall be in addition to and independent of all rights, powers and remedies existing by virtue of any statute or rule of law or in any of the other Credit Documents or any of the applicable documentation creating Hedging Obligations or Cash Management Obligations. Any forbearance or failure to exercise, and any delay in exercising, any right, power or remedy hereunder shall not impair any such right, power or remedy or be construed to be a waiver thereof, nor shall it preclude the further exercise of any such right, power or remedy.
10.10    Marshalling; Payments Set Aside.  Neither any Agent nor any Lender shall be under any obligation to marshal any assets in favor of any Credit Party or any other Person or against or in payment of any or all of the Obligations.  To the extent that any Credit Party makes a payment or payments to the Agents, the Issuers or the Lenders (or to the Administrative Agent or the European Administrative Agent, on behalf of the Issuers or the Lenders), or the Agents, the Issuers or the Lenders enforce any security interests or exercise their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, any other provincial, state or federal law, common law or any equitable cause, then, to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor or related thereto, 

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shall be revived and continued in full force and effect as if such payment or payments had not been made or such enforcement or setoff had not occurred.
10.11    Severability.  In case any provision in or obligation hereunder shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.
10.12    Obligations Several.  The obligations of the Lenders hereunder are several and no Lender shall be responsible for the obligations or Revolving Commitments of any other Lender hereunder.  Nothing contained herein or in any other Credit Document, and no action taken by Lenders pursuant hereto or thereto, shall be deemed to constitute Lenders as a partnership, an association, a joint venture or any other kind of entity.
10.13    Headings.  Section headings herein are included herein for convenience of reference only and shall not constitute a part hereof for any other purpose or be given any substantive effect.
10.14    APPLICABLE LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK INCLUDING GENERAL OBLIGATIONS LAW 5-1401.
10.15    CONSENT TO JURISDICTION AND SERVICE OF PROCESS. (a) ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY CREDIT PARTY ARISING OUT OF OR RELATING HERETO OR ANY OTHER CREDIT DOCUMENT, OR ANY OF THE OBLIGATIONS, SHALL BE BROUGHT IN ANY STATE OR FEDERAL COURT IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN.  BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH CREDIT PARTY, FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (i) ACCEPTS GENERALLY AND UNCONDITIONALLY THE EXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS, UNLESS OTHERWISE PROVIDED IN A COLLATERAL DOCUMENT; (ii) WAIVES ANY DEFENSE OF FORUM NON-CONVENIENS; (iii) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE CREDIT PARTY AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 10.1; (iv) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (iii) ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE CREDIT PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (v) AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW; PROVIDED, HOWEVER, NOTHING IN THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT SHALL AFFECT ANY RIGHT THAT ANY AGENT OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT AGAINST ANY CREDIT PARTY OR ITS PROPERTIES IN THE COURTS OF ANY OTHER JURISDICTION; AND
(b)    EACH CREDIT PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY CONSENTS TO SERVICE OF PROCESS IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY CREDIT DOCUMENT, IN THE MANNER PROVIDED 

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FOR NOTICES (OTHER THAN FACSIMILE OR EMAIL) IN SECTION 10.1.  NOTHING IN THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LEGAL REQUIREMENTS.
10.16    WAIVER OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY OF THE OTHER CREDIT DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS LOAN TRANSACTION OR THE LENDER/BORROWER RELATIONSHIP THAT IS BEING ESTABLISHED.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.  EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS.  EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.  THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 10.16 AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO OR ANY OF THE OTHER CREDIT DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE REVOLVING ADVANCES MADE HEREUNDER.  IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.
10.17    Confidentiality.  Each Agent, each Issuer and each Lender agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ directors, officers, trustees, employees and agents, including accountants, legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority, including the NAIC, (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement or any other Credit Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section 10.17, to (i) any assignee of, participant in, or Special Purpose Vehicle grantee of any option described in Section 10.6(i), or any prospective assignee of, participant in, or Special Purpose Vehicle grantee of any option described in Section 10.6(i), any of its rights or obligations under this Agreement, (ii) any rating agency, or (iii) the CUSIP Service Bureau or any similar organization, (g) with the consent of the Lead Borrower or the European Lead Borrower, (h) to any pledgee referred to in Section 10.6(h) or any actual or prospective party (or its managers, administrators, trustees, partners, directors, officers, employees, agents, advisors or other representatives) to any swap or derivatives or similar transaction under which payments are to be made by reference to the Borrowers and the Obligations, this Agreement or payments hereunder, so long as such pledgee or any actual or prospective counterparty (or its managers, administrators, trustees, partners, directors, officers, employees, agents, advisors and other representatives) agrees to be bound by 

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the provisions of this Section 10.17, or (i) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section 10.17, (ii) becomes available to any Agent, any Issuer or any Lender on a non-confidential basis from a source other than the Borrowers or (iii) is independently developed by any Agent, any Issuer or any Lender.  For the purposes of this Section 10.17, “Information” means all information received from the Borrowers relating to the Borrowers or their business, other than any such information that is available to any Agent, any Issuer or any Lender on a non-confidential basis prior to disclosure by the Borrowers. Any Person required to maintain the confidentiality of Information as provided in this Section 10.17 shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.  Notwithstanding anything in this Agreement or in any other Credit Document to the contrary, the Borrowers and each Lender (and each employee, representative or other agent of the Borrowers) may disclose to any taxing authority and to any tax advisor of such party, without limitation of any kind, the U.S. tax treatment and U.S. tax structure of the transactions contemplated hereby and all materials of any kind (including opinions or other tax analyses) that are provided to the Borrowers relating to such U.S. tax treatment and U.S. tax structure.
10.18    Usury Savings Clause.  (a) Notwithstanding any other provision herein, the aggregate interest rate charged with respect to any of the Obligations, including all charges or fees in connection therewith deemed in the nature of interest under applicable law shall not exceed the Highest Lawful Rate.  If the rate of interest (determined without regard to the preceding sentence) under this Agreement at any time exceeds the Highest Lawful Rate, the outstanding amount of the Advances made hereunder shall bear interest at the Highest Lawful Rate until the total amount of interest due hereunder equals the amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect.  In addition, if when the Advances made hereunder are repaid in full the total interest due hereunder (taking into account the increase provided for above) is less than the total amount of interest which would have been due hereunder if the stated rates of interest set forth in this Agreement had at all times been in effect, then to the extent permitted by law, the applicable Borrowers shall pay to the Applicable Agent an amount equal to the difference between the amount of interest paid and the amount of interest which would have been paid if the Highest Lawful Rate had at all times been in effect.  Notwithstanding the foregoing, it is the intention of each Lender and the Borrowers to conform strictly to any applicable usury laws.  Accordingly, if any Lender contracts for, charges, or receives any consideration which constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled automatically and, if previously paid, shall at such Lender’s option be applied to the outstanding amount of the Revolving Advances made hereunder or be refunded to the Borrowers, as applicable.
(b)    Without limiting the foregoing, if any provision of this Agreement or any other Credit Document would obligate any Canadian Credit Party to make any payment of interest or other amount payable to any Lender in an amount or calculated at a rate which would be prohibited by law or would result in a receipt by that Lender of “interest” at a “criminal rate” (as such terms are construed under the Criminal Code (Canada)), then, notwithstanding such provision, such amount or rate shall be deemed to have been adjusted with retroactive effect to the maximum amount or rate of interest, as the case may be, as would not be so prohibited by applicable law or so result in a receipt by that Lender of “interest” at a “criminal rate”, such adjustment to be effected, to the extent necessary (but only to the extent necessary), as follows: first, by reducing the amount or rate of interest, and, thereafter, by reducing any fees, commissions, costs, expenses, premiums and other amounts required to be paid to the affected Lender which would constitute interest for purposes of section 347 of the Criminal Code (Canada).

10.19    Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall 

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constitute but one and the same instrument.  Delivery of an executed signature page of this Agreement by facsimile transmission or “PDF” shall be effective as delivery of a manually executed counterpart hereof.
10.20    Effective Date.  This Agreement shall become effective on the Closing Date.
10.21    USA Patriot Act Notice.  (a) Each Lender and the Agents (for the Agents and not on behalf of any Lender) hereby notifies the Borrowers that pursuant to the requirements of the USA Patriot Act (Title III of Pub.  L. 107-5 (signed into law on October 26, 2001)), as amended (the “Patriot Act”), it is required to obtain, verify and record information that identifies each Borrower and each other Credit Party, which information includes the name and address of each Borrower and each other Credit Party and other information that will allow such Lender or the applicable Agent, as applicable, to identify each Borrower and each other Credit Party in accordance with the Patriot Act.
(b)    Each Lender or assignee or participant of a Lender that is not incorporated under the laws of the United States of America or a state thereof (and is not excepted from the certification requirement contained in Section 313 of the Patriot Act and the applicable regulations because it is both (i) an affiliate of a depository institution or foreign bank that maintains a physical presence in the United States or foreign country, and (ii) subject to supervision by a banking authority regulating such affiliated depository institution or foreign bank) shall deliver to the Administrative Agent the certification, or, if applicable, recertification, certifying that such Lender is not a “shell” and certifying to other matters as required by Section 313 of the Patriot Act and the applicable regulations: (1) within 10 days after the Closing Date, and (2) as such other times as are required under the Patriot Act.
10.22    No Setoffs and Defenses.  Each Credit Party acknowledges it has no setoffs or defenses to their respective obligations under the Credit Documents and no claims or counterclaims against any of the Agents or the Lenders.
10.23    Entire Agreement.  This Agreement and the other Credit Documents represent the entire agreement of the Credit Parties, the Agents and the Lenders with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Agents or any Lender relative to the subject matter hereof not expressly set forth or referred to herein or in the other Credit Documents.  If and to the extent that any provision of any Credit Document limits, qualifies or conflicts with a provision of this Agreement, such provision of this Agreement shall control.
10.24    Borrowing Agency Provisions.
(a)    Each (y) US Borrower and Canadian Borrower hereby irrevocably designates the Lead Borrower, and (z) each European Borrower hereby irrevocably designates the European Lead Borrower, in each case respectively to be its attorney and agent and in such capacity to (i) borrow, (ii) request advances, (iii) request the issuance of Letters of Credit, (iv) sign and endorse notes, (v) execute and deliver all instruments, documents, applications, security agreements, reimbursement agreements and letter of credit agreements for Letters of Credit and all other certificates, notice, writings and further assurances now or hereafter required hereunder, (vi) make elections regarding interest rates, (vii) give instructions regarding Letters of Credit and agree with any Issuer upon any amendment, extension or renewal of any Letter of Credit and (viii) otherwise take action under and in connection with this Agreement and the other Credit Documents, all on behalf of and in the name such Borrower or Borrowers, and hereby authorizes the Applicable Agent to pay over or credit all loan proceeds hereunder in accordance with the request of the Applicable Lead Borrower.

174

(b)    The handling of this credit facility as a co-borrowing facility with a borrowing agent in the manner set forth in this Agreement is solely as an accommodation to the Borrowers and at their request.  Neither any Agent, any Issuers nor any Lender shall incur liability to the Borrowers as a result thereof.  To induce the Agents, the Issuers and the Lenders to do so and in consideration thereof, each Borrower hereby indemnifies the each Agent, each Issuer and each Lender and holds each Agent, each Issuer and each Lender harmless from and against any and all liabilities, expenses, losses, damages and claims of damage or injury asserted against any Agent, any Issuer or any Lender by any Person arising from or incurred by reason of the handling of the financing arrangements of the Borrowers as provided herein, reliance by any Agent, any Issuer or any Lender on any request or instruction from the Lead Borrower or European Lead Borrower or any other action taken by any Agent or any Lender with respect to this Section 10.24 except due to willful misconduct or gross (not mere) negligence by the indemnified party (as determined by a court of competent jurisdiction in a final and non-appealable judgment).
(c)    (i) All US Obligations shall be joint and several of each of the US Borrowers, and each US Borrower shall make payment upon the maturity of the US Obligations by acceleration or otherwise, (ii) all Canadian Obligations shall be joint and several of each Canadian Borrower, and each Canadian Borrower shall make payment upon the maturity of the Canadian Obligations by acceleration or otherwise and (iii) all European Obligations shall be joint and several of each European Borrower, and each European Borrower shall make payment upon the maturity of the European Obligations by acceleration or otherwise, and in each case, such obligations and liabilities on the part of each US Borrower, each Canadian Borrower and each European Borrower shall in no way be affected by any extensions, renewals and forbearance granted by any Agent or any Lender to any Borrower, failure of any Agent or any Lender to give any Borrower notice of borrowing or any other notice, any failure of any Agent or any Lender to pursue or preserve its rights against any Borrower, the release by any Agent or any Lender of any Collateral now or thereafter acquired from any Borrower, and such agreement by each Borrower to pay upon any notice issued pursuant thereto is unconditional and unaffected by prior recourse by any Agent or any Lender to the other Borrowers or any Collateral for such US Borrower’s Obligations, such Canadian Borrower’s Canadian Obligations or such European Borrower’s European Obligations, as the case may be, or the lack thereof.  Each Borrower waives all suretyship defenses.
(d)    (i) Each US Borrower expressly waives any and all rights of subrogation, reimbursement, indemnity, exoneration, contribution of any other claim which such US Borrower may now or hereafter have against the other US Borrowers or any other Person directly or contingently liable for the US Obligations hereunder, or against or with respect to any other US Borrowers’ property (including, without limitation, any property which is Collateral for the US Obligations), arising from the existence or performance of this Agreement, until termination of this Agreement and repayment in full of the Obligations.
(ii) Each Canadian Borrower expressly waives any and all rights of subrogation, reimbursement, indemnity, exoneration, contribution of any other claim which such Canadian Borrower may now or hereafter have against the other Canadian Borrowers or any other Person directly or contingently liable for the Canadian Obligations hereunder, or against or with respect to any other Canadian Borrowers’ property (including, without limitation, any property which is Collateral for the Canadian Obligations), arising from the existence or performance of this Agreement, until termination of this Agreement and repayment in full of the Canadian Obligations.

(iii)  Each European Borrower expressly waives any and all rights of subrogation, reimbursement, indemnity, exoneration, contribution of any other claim which such European Borrower may now or hereafter have against the other European 

175

Borrowers or any other Person directly or contingently liable for the European Obligations hereunder, or against or with respect to any other European Borrowers’ property (including, without limitation, any property which is Collateral for the European Obligations), arising from the existence or performance of this Agreement, until termination of this Agreement and repayment in full of the European Obligations.

10.25    Nature of Borrowers Obligations. Notwithstanding anything to the contrary contained elsewhere in this Agreement, it is understood and agreed by the various parties to this Agreement that (a) the Canadian Obligations shall constitute obligations of the Canadian Borrowers and shall be guaranteed pursuant to, and in accordance with the terms of this Agreement and (b) the European Obligations shall constitute obligations of the European Borrowers and shall be guaranteed pursuant to, and in accordance with the terms of this Agreement.  Notwithstanding anything to the contrary herein or in any other Credit Document (including provisions that may override any other provision), in no event shall (i) the Canadian Borrowers or any other Canadian Credit Party be deemed to have guaranteed or become liable or obligated for, or to have pledged any of its assets to secure, any Obligation of a US Credit Party under this Agreement or any of the other Credit Documents or (ii) the European Borrowers or any other European Credit Party be deemed to have guaranteed or become liable or obligated for, or to have pledged any of its assets to secure, any Obligation of a US Credit Party under this Agreement or any of the other Credit Documents.
10.26    Designation of Debt for Purposes of the Senior Notes Indenture.  Pursuant to the Senior Notes Indenture, the Lead Borrower hereby designates this Agreement and the other Credit Documents as a “Credit Facility” for all purposes under the Senior Notes Indenture.
10.27    Quebec Interpretation Matters.  For purposes of any assets, liabilities or entities located in the Province of Québec and for all other purposes pursuant to which the interpretation or construction of this Agreement may be subject to the laws of the Province of Québec or a court or tribunal exercising jurisdiction in the Province of Québec, (a) “personal property” shall include “movable property”, (b) “real property” or “real estate” shall include “immovable property”, (c) “tangible property” shall include “corporeal property”, (d) “intangible property” shall include “incorporeal property”, (e) “security interest”, “mortgage” and “lien” shall include a “hypothec”, “right of retention”, “prior claim” and a resolutory clause, (f) all references to filing, perfection, priority, remedies, registering or recording under the Uniform Commercial Code or a Personal Property Security Act shall include publication under the Civil Code of Québec, (g) all references to “perfection” of or “perfected” liens or security interest shall include a reference to an “opposable” or “set up” lien or security interest as against third parties, (h) any “right of offset”, “right of setoff” or similar expression shall include a “right of compensation”, (i) ”goods” shall include “corporeal movable property” other than chattel paper, documents of title, instruments, money and securities, (j) an “agent” shall include a “mandatary”, (k) ”construction liens” shall include “legal hypothecs”; (l) ”joint and several” shall include “solidary”; (m) ”gross negligence or wilful misconduct” shall be deemed to be “intentional or gross fault”; (n) “beneficial ownership” shall include “ownership on behalf of another as mandatary”; (o) ”easement” shall include “servitude”; (p) ”priority” shall include “prior claim”; (q) ”survey” shall include “certificate of location and plan”; (r) ”state” shall include “province”; (s) ”fee simple title” shall include “absolute ownership”; and (t) “accounts” shall include “claims”. 
10.28    English Language.  The parties hereto confirm that it is their wish that this Agreement and any other document executed in connection with the transactions contemplated herein be drawn up in the English language only and that all other documents contemplated thereunder or relating thereto, including notices, may also be drawn up in the English language only.  Les parties aux présentes confirment que c’est leur volonté que cette convention et les autres documents de crédit y affereuts soient rédigés en anglais 

176

seulement et que tous les documents, y compris tous avis, envisagés par cette convention soient rédigés en anglais seulement.
10.29     Amendment and Restatement.  This Agreement amends and restates in its entirety the Existing Credit Agreement.  All references to the "Credit Agreement" contained in the Credit Documents delivered in connection with the Existing Credit Agreement or this Agreement shall, and shall be deemed to, refer to this Agreement.  Notwithstanding the amendment and restatement of the Existing Credit Agreement by this Agreement, the Obligations of the Credit Parties outstanding under the Existing Credit Agreement and the other Credit Documents as of the Closing Date shall remain outstanding and shall constitute continuing Obligations hereunder without novation and shall continue as such to be secured by the Collateral.  Such Obligations shall in all respects be continuing and this Agreement shall not be deemed to evidence or result in a novation or repayment and reborrowing of such Obligations.  The Liens securing payment of the Obligations under the Existing Credit Agreement, as amended and restated in the form of this Agreement, shall in all respects be continuing, securing the payment of all Obligations
10.30    CAM Exchange.
(a)    On the CAM Exchange Date,
(i)    the Revolving Commitments shall have terminated in accordance with Section 8;
(ii)    each Lender shall fund its participation in any outstanding Swing Loans and Protective Advances in accordance with the terms of this Agreement;
(iii)    each Lender shall fund its participation in any unreimbursed disbursements made under the Letters of Credit in accordance with the terms of this Agreement; and
(iv)    the Lenders shall purchase in the applicable currency at par interests in principal, interest, applicable fees owing to the Lenders, unreimbursed drawings under Letters of Credit and other outstanding participation interests under each of the Domestic Facility and European Facility (and shall make payments to the Applicable Agent for reallocation to other Lenders to the extent necessary to give effect to such purchases) and shall assume the obligations to reimburse each Issuer for unreimbursed disbursements under outstanding Letters of Credit under such Facility such that such Lender shall own an interest equal to such Lender’s CAM Percentage in each component of such Obligations immediately following the CAM Exchange.
(b)    Each Lender and each Person acquiring a participation from any Lender as contemplated by this Section 10.30 hereby consents and agrees to the CAM Exchange.  Each Borrower agrees from time to time to execute and deliver to the Lenders all such promissory notes and other instruments and documents as any Agent shall reasonably request to evidence and confirm the respective interests and obligations of the Lenders after giving effect to the CAM Exchange, and each Lender agrees to surrender any promissory notes originally received by it in connection with its Advances under this Agreement to the Applicable Agent against delivery of any promissory notes so executed and delivered; provided that the failure of any Lender to deliver or accept any such promissory note, instrument or document shall not affect the validity or effectiveness of the CAM Exchange.
(c)    As a result of the CAM Exchange, from and after the CAM Exchange Date, each payment received by any Agent pursuant to this Agreement or any other Credit Document in respect of any 

177

of such Obligations shall be distributed to the Lenders, pro rata in accordance with their respective CAM Percentages.
(d)    In the event that on or after the CAM Exchange Date, the aggregate amount of such Obligations shall change as a result of the making of a disbursement under a Letter of Credit by an Issuer that is not reimbursed by the applicable Borrowers, then each Lender shall promptly reimburse such Issuer for its CAM Percentage of such unreimbursed payment in the applicable currency.
Notwithstanding any other provision of this Section 10.30, each Secured Party agrees that if any Secured Party is required under applicable law to withhold or deduct any taxes or other amounts from payments made by it hereunder or as a result hereof, such Person shall be entitled to withhold or deduct such amounts and pay over such taxes or other amounts to the applicable Governmental Authority imposing such tax without any obligation to indemnify any Secured Party with respect to such amounts and without any other obligation of gross up or offset with respect thereto and there shall be no recourse whatsoever by any Secured Party subject to such withholding to any other Secured Party making such withholding and paying over such amounts, but without diminution of the rights of such Secured Party subject to such withholding as against Borrowers and the other Credit Parties to the extent (if any) provided in this Agreement and the other Credit Documents.  Any amounts so withheld or deducted shall be treated as, for the purpose of this Section 10.30, having been paid to such Secured Party to which such withholding or deduction was made.
10.31    Closing Date Allocation. 
(a)    Upon the effectiveness of the amendment and restatement of this Agreement on the Closing Date, (i) the Borrowers shall repay all Revolving Advances then outstanding under the Existing Credit Agreement; provided that subject to the other conditions of this Agreement, the Applicable Lead Borrower may request new Revolving Advances on such date and (ii) the Revolving Commitment Percentages of all of the Lenders holding a Revolving Commitment shall be recalculated such that after giving effect to the effectiveness of this Agreement, each such Lender’s Revolving Commitment Percentage is equal to (x) the Revolving Commitment Amount of such Lender divided by (y) the aggregate of the Revolving Commitment Amounts of all Lenders.  Each of the Lenders shall participate in any new Revolving Advances made on or after the Closing Date in accordance with their respective Revolving Commitment Percentages after giving effect to the effectiveness of this Agreement and recalculation of the Revolving Commitment Percentages contemplated by this Section 10.31.
(b)    Upon the effectiveness of the amendment and restatement of this Agreement on the Closing Date, each new Lender shall be deemed to have purchased a participation in each then outstanding Letter of Credit and each drawing thereunder and each then outstanding Swing Loan in an amount equal to such Lender’s Revolving Commitment Percentage of the Maximum Undrawn Amount of each such Letter of Credit (as in effect from time to time) and the amount of each drawing and of each such Swing Loan, respectively.  As necessary to effectuate the foregoing, each existing Lender holding a Revolving Commitment Percentage shall be deemed to have sold to each new Lender a portion of such existing Lender’s participations in such outstanding Letters of Credit and drawings and such outstanding Swing Loans such that, after giving effect to all such purchases and sales, each Lender holding a Revolving Commitment shall hold a participation in all Letters of Credit (and drawings thereunder) and all Swing Lines in accordance with their respective Revolving Commitment Percentages.
[Remainder of page intentionally left blank]

178

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first written above.
XERIUM TECHNOLOGIES, INC.	
		
	By:
	/s/ Michael S. Buchanan

	Name:
	Michael S. Buchanan

	Title:
	Treasurer

HUYCK LICENSCO INC.
                        	
		
	By:
	/s/ Michael S. Buchanan

	Name:
	Michael S. Buchanan

	Title:
	Treasurer

ROBEC BRAZIL LLC 	
		
	By:
	/s/ Michael S. Buchanan

	Name:
	Michael S. Buchanan

	Title:
	Treasurer

STOWE WOODWARD LICENSCO LLC 	
		
	By:
	/s/ Michael S. Buchanan

	Name:
	Michael S. Buchanan

	Title:
	Treasurer

STOWE WOODWARD LLC 	
		
	By:
	/s/ Michael S. Buchanan

	Name:
	Michael S. Buchanan

	Title:
	Treasurer

WANGNER ITELPA I LLC 	
		
	By:
	/s/ Michael S. Buchanan

	Name:
	Michael S. Buchanan

	Title:
	Treasurer

179

WANGNER ITELPA II LLC 	
		
	By:
	/s/ Michael S. Buchanan

	Name:
	Michael S. Buchanan

	Title:
	Treasurer

WEAVEXX, LLC 	
		
	By:
	/s/ Michael S. Buchanan

	Name:
	Michael S. Buchanan

	Title:
	Treasurer

XERIUM ASIA, LLC 	
		
	By:
	/s/ Michael S. Buchanan

	Name:
	Michael S. Buchanan

	Title:
	Treasurer

XERIUM III (US) LIMITED 	
		
	By:
	/s/ Michael S. Buchanan

	Name:
	Michael S. Buchanan

	Title:
	Treasurer

XERIUM IV (US) LIMITED 	
		
	By:
	/s/ Michael S. Buchanan

	Name:
	Michael S. Buchanan

	Title:
	Treasurer

XERIUM V (US) LIMITED 	
		
	By:
	/s/ Michael S. Buchanan

	Name:
	Michael S. Buchanan

	Title:
	Treasurer

XTI LLC 
	
		
	By:
	/s/ Michael S. Buchanan

	Name:
	Michael S. Buchanan

	Title:
	Treasurer

180

XERIUM CANADA INC.	
		
	By:
	/s/ Michael S. Buchanan

	Name:
	Michael S. Buchanan

	Title:
	Treasurer

HUYCK.WANGNER GERMANY GMBH	
		
	By:
	/s/ Michael S. Buchanan

	Name:
	Michael S. Buchanan

	Title:
	Managing Director

ROBEC WALZEN GMBH	
		
	By:
	/s/ Michael S. Buchanan

	Name:
	Michael S. Buchanan

	Title:
	Managing Director

STOWE WOODWARD
 AKTIENGESELLSCHAFT	
		
	By:
	/s/ David J. Pretty

	Name:
	David J. Pretty

	Title:
	CEO

XERIUM GERMANY HOLDING GMBH	
		
	By:
	/s/ Michael S. Buchanan

	Name:
	Michael S. Buchanan

	Title:
	Managing Director

XERIUM TECHNOLOGIES LTD	
		
	By:
	/s/ Michael S. Buchanan

	Name:
	Michael S. Buchanan

	Title:
	Director

181

PNC BANK, NATIONAL ASSOCIATION 
as Administrative Agent, Collateral Agent and as a Lender
	
		
	By:
	/s/  Patrick McConnell

	Name:
	Patrick McConnell

	Title:
	V.P.

182

JPMORGAN CHASE BANK, N.A. LONDON 
BRANCH as European Administrative Agent, European Collateral Agent and as a Lender	
		
	By:
	/s/ Tim Jacob

	Name:
	Tim Jacob

	Title:
	Senior Vice President

183

PNC BANK CANADA BRANCH 
as a Lender to the extent provided in the Credit Agreement
	
		
	By:
	/s/ Michael Etienne

	Name:
	Senior Vice President

	Title:
	Senior Vice President

184

JPMORGAN CHASE BANK, N.A. TORONTO BRANCH, as a Lender to the extent provided in the Credit Agreement
	
		
	By:
	/s/ A. Marchetti

	Name:
	A. Marchetti

	Title:
	Authorized Officer

185

JPMORGAN CHASE BANK, N.A., as a Lender to the extent provided in the Credit Agreement	
		
	By:
	/s/ Kennedy A. Capin

	Name:
	Kennedy A. Capin

	Title:
	Authorized Officer

186

APPENDIX A 
TO CREDIT AND GUARANTY AGREEMENT
Revolving Commitment Amounts
	
						
	Lender
	Revolving Commitment Amount
	Revolving Commitment Percentage

	PNC Bank, National Association (in accordance with the definition of "Lender" and without duplication, PNC Bank Canada Branch, to the extent of any (i) outstanding Advances  to the Canadian Borrowers or (ii) participations in Canadian Letters of Credit or Canadian Swing Loans)
	

	$27,500,000
	

	50
	%

	JPMorgan Chase Bank, N.A. (in accordance with the definition of "Lender" and without duplication, (a)  JPMorgan Chase Bank, N.A., Toronto Branch, to the extent of any (i) outstanding Advances to the Canadian Borrowers or (ii) participations in Canadian Letters of Credit or Canadian Swing Loans and (b) JPMorgan Chase Bank, N.A., London Branch, to the extent of any (i) outstanding Advances  to the European Borrowers or (ii) participations in European Letters of Credit or European Swing Loans)))
	

	$27,500,000
	

	50
	%

	Total
	

	$55,000,000
	

	100
	%

APPENDIX A- 1

APPENDIX B 
TO CREDIT AND GUARANTY AGREEMENT
Notice Addresses
XERIUM TECHNOLOGIES, INC. 
14101 Capital Boulevard
Youngsville, NC 27596 
Attn: Michael S. Buchanan 
Fax: 919-526-1430 
Phone: 919-526-1406 
Email:
cliff.pietrafitta@xerium.com
mike.buchanan@xerium.com

HUYCK.WANGNER GERMANY GMBH 
Föhrstr. 39, 72760 
Reutlingen, Germany
Attn: Kurt Medlitsch  

with a copy to:

XERIUM TECHNOLOGIES, INC. 
14101 Capital Boulevard 
Youngsville, NC 27596 
Attn: Michael S. Buchanan 
Fax: 919-526-1430 
Phone: 919-526-1406 
 
Email:
cliff.pietrafitta@xerium.com  
mike.buchanan@xerium.com
teresa.kazaglis@xerium.com

APPENDIX B- 1

PNC Bank, National Association 
as Administrative Agent, Collateral Agent and as a Lender
For Payments and Borrowing Requests/Interest Election Requests:
PNC Bank, National Association
PNC Agency Services
PNC Firstside Center
500 First Avenue, 4th Floor
Pittsburgh, Pennsylvania 15219
Attention: Lisa Pierce
Telephone: (412) 762-6442
Facsimile: (412) 762-8672

Other Notices as Administrative Agent or Collateral Agent:

PNC Bank, National Association  
340 Madison Avenue, 11th Floor
New York, NY 10173
Attention: Patrick McConnell
Telephone: (212) 752-6086
Facsimile: (212) 303-0060
E-mail: patrick.mcconnell@pnc.com

PNC Bank, National Association 
as Collateral Agent
Two Tower Center Boulevard, 21st Floor
East Brunswick, NJ 08816
Attention: Patricia Loprete-Antola
Telephone: (732) 220-4368
Facsimile: (732) 220-4399
E-mail: patricia.loprete@pnc.com

APPENDIX B- 2

JPMorgan Chase Bank, N.A. 
as European Administrative Agent, European Collateral Agent and as a Lender
For notices relating to funding and operational matters to:
J.P.Morgan Europe Limited
Loans Agency
25 Bank Street
Canary Wharf
London 
E14 5JP
Fax: +44 20 7777 2360
Email: loanandagencylondon@jpmorgan.com 

For notices related to Collateral to:

JP Morgan 
Chase Business Credit
25 Bank Street
Canary Wharf
London 
E14 5JP
Fax:  +44 20 3493 1365
timothy.i.jacob@jpmorgan.com
helen.f.mathie@jpmorgan.com

 
For Borrowing Base Certificates:
Jewelle Carnegie 
Tel: 312-732-7711 
Email: jewelle.l.carnegie@jpmchase.com 
Address: JP Morgan Chase Bank, N.A, 
10 South Dearborn, 22nd floor, Chicago, IL 60603, USA

With a copy to: 
Kennedy Capin
Tel: +1 404 926 2606
Fax: +1 404 926 2656
Email: kennedy.a.capin@chase.com
Address: Chase Business Credit, 3475 Piedmont Road NE, 
Floor 18, Atlanta, GA 30305-2954, USA

APPENDIX B- 310-K - 2013 Exhibit 10.21 - Master Indenture

Exhibit 20.21

MASTER INDENTURE
DATED AS OF DECEMBER 23, 2013
___________________
BETWEEN
SPIRIT MASTER FUNDING VII, LLC,
AS AN ISSUER,
AND
CITIBANK, N.A.    
AS INDENTURE TRUSTEE
NET-LEASE MORTGAGE NOTES

TABLE OF CONTENTS
	
			
	 
	 
	Page

	ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	2

	Section 1.01
	Definitions.
	2

	Section 1.02
	Rules of Construction.
	24

	ARTICLE II THE NOTES
	25

	Section 2.01
	Forms; Denominations.
	25

	Section 2.02
	Execution, Authentication, Delivery and Dating.
	26

	Section 2.03
	Certification of Receipt of the Collateral.
	28

	Section 2.04
	The Notes Generally; New Issuances.
	28

	Section 2.05
	Registration of Transfer and Exchange of Notes.
	31

	Section 2.06
	Book-Entry Notes.
	38

	Section 2.07
	Mutilated, Destroyed, Lost or Stolen Notes.
	40

	Section 2.08
	Noteholder Lists.
	41

	Section 2.09
	Persons Deemed Owners.
	41

	Section 2.10
	Payment Account.
	41

	Section 2.11
	Payments on the Notes.
	42

	Section 2.12
	Final Payment Notice.
	47

	Section 2.13
	Compliance with Withholding Requirements.
	47

	Section 2.14
	Cancellation.
	47

	Section 2.15
	The Hedge Agreements.
	48

	Section 2.17
	Tax Treatment of the Notes and the Issuers.
	49

	Section 2.18
	Cashflow Coverage Reserve Account.
	49

	Section 2.19
	Representations and Warranties With Respect To Mortgage Loans, Mortgaged Properties and Leases.
	50

	Section 2.20
	Satisfaction of the Rating Condition.
	52

	Section 2.21
	Reserve Accounts.
	52

	ARTICLE III SATISFACTION AND DISCHARGE
	53

	Section 3.01
	Satisfaction and Discharge of Indenture.
	53

	Section 3.02
	Application of Trust Money.
	54

	ARTICLE IV EVENTS OF DEFAULT; REMEDIES
	54

	Section 4.01
	Events of Default.
	54

	Section 4.02
	Acceleration of Maturity; Rescission and Annulment.
	55

	Section 4.03
	Collection of Indebtedness and Suits for Enforcement by Indenture Trustee.
	56

	Section 4.04
	Remedies.
	58

	Section 4.05
	Application of Money Collected.
	59

	Section 4.06
	Limitation on Suits.
	59

	Section 4.07
	Unconditional Right of Noteholders to Receive Principal and Interest.
	60

-i-

	
			
	Section 4.08
	Restoration of Rights and Remedies.
	60

	Section 4.09
	Rights and Remedies Cumulative.
	60

	Section 4.10
	Delay or Omission Not Waiver.
	60

	Section 4.11
	Control by Requisite Global Majority.
	61

	Section 4.12
	Waiver of Past Defaults.
	61

	Section 4.13
	Undertaking for Costs.
	62

	Section 4.14
	Waiver of Stay or Extension Laws.
	62

	Section 4.15
	Sale of Collateral.
	62

	Section 4.16
	Action on Notes.
	63

	ARTICLE V THE INDENTURE TRUSTEE
	64

	Section 5.01
	Certain Duties and Responsibilities.
	64

	Section 5.02
	Notice of Defaults.
	69

	Section 5.03
	Certain Rights of Indenture Trustee.
	69

	Section 5.04
	Compensation; Reimbursement; Indemnification.
	71

	Section 5.05
	Corporate Indenture Trustee Required; Eligibility.
	72

	Section 5.06
	Authorization of Indenture Trustee.
	73

	Section 5.07
	Merger, Conversion, Consolidation or Succession to Business.
	73

	Section 5.08
	Resignation and Removal; Appointment of Successor.
	73

	Section 5.09
	Acceptance of Appointment by Successor.
	75

	Section 5.10
	Unclaimed Funds.
	75

	Section 5.11
	Illegal Acts.
	76

	Section 5.12
	Communications by the Indenture Trustee.
	76

	Section 5.13
	Separate Indenture Trustees and Co-Trustees.
	76

	Section 5.14
	Representations and Warranties of the Indenture Trustee.
	78

	ARTICLE VI REPORTS TO NOTEHOLDERS
	79

	Section 6.01
	Reports to Noteholders and Others.
	79

	Section 6.02
	Access to Certain Information.
	80

	ARTICLE VII REDEMPTION; SERIES ENHANCEMENT
	82

	Section 7.01
	Redemption of the Notes.
	82

	Section 7.02
	Series Enhancement.
	83

	ARTICLE VIII SUPPLEMENTAL INDENTURES; AMENDMENTS
	84

	Section 8.01
	Supplemental Indentures or Amendments Without Consent of Noteholders.
	84

	Section 8.02
	Supplemental Indentures With Consent.
	85

	Section 8.03
	Delivery of Supplements and Amendments.
	86

	Section 8.04
	Series Supplements.
	87

	Section 8.05
	Execution of Supplemental Indentures, Etc.
	88

	ARTICLE IX COVENANTS; WARRANTIES
	88

	Section 9.01
	Maintenance of Office or Agency.
	88

	Section 9.02
	Existence and Good Standing.
	88

-ii-

	
			
	Section 9.03
	Payment of Taxes and Other Claims.
	88

	Section 9.04
	Validity of the Notes; Title to the Collateral; Lien.
	89

	Section 9.05
	Protection of Collateral Pool.
	90

	Section 9.06
	Issuer Covenants and Representations.
	91

	Section 9.07
	Affirmative Covenants.
	92

	Section 9.08
	Negative Covenants.
	95

	Section 9.09
	Statement as to Compliance.
	95

	Section 9.10
	Issuers May Consolidate, Etc., Only on Certain Terms.
	96

	ARTICLE X COVENANTS REGARDING MORTGAGED PROPERTIES
	97

	Section 10.01
	Insurance.
	97

	Section 10.02
	Mortgage Loans, Leases and Rents.
	97

	Section 10.03
	Compliance With Laws.
	98

	Section 10.04
	Estoppel Certificates.
	99

	Section 10.05
	Other Rights, Etc.
	99

	Section 10.06
	Right to Release Any Portion of the Collateral Pool.
	100

	Section 10.07
	Environmental Covenants.
	100

	ARTICLE XI COSTS
	101

	Section 11.01
	Performance at the Issuers’ Expense.
	101

	ARTICLE XII MISCELLANEOUS
	102

	Section 12.01
	Execution Counterparts.
	102

	Section 12.02
	Compliance Certificates and Opinions, Etc.
	102

	Section 12.03
	Form of Documents Delivered to Indenture Trustee.
	102

	Section 12.04
	No Oral Change.
	103

	Section 12.05
	Acts of Noteholders.
	103

	Section 12.06
	Computation of Percentage of Noteholders.
	103

	Section 12.07
	Notice to the Indenture Trustee, the Issuers and Certain Other Persons.
	104

	Section 12.08
	Notices to Noteholders; Notification Requirements and Waiver.
	104

	Section 12.09
	Successors and Assigns.
	104

	Section 12.10
	Interest Charges; Waivers.
	105

	Section 12.11
	Severability Clause.
	105

	Section 12.12
	Governing Law.
	105

	Section 12.13
	Effect of Headings and Table of Contents.
	105

	Section 12.14
	Benefits of Indenture.
	106

	Section 12.15
	Trust Obligation.
	106

	Section 12.16
	Inspection.
	106

	Section 12.17
	Method of Payment.
	106

	Section 12.18
	Limitation on Liability of the Issuers.
	106

	Section 12.19
	Non-Petition.
	107

	Section 12.20
	Non-Recourse.
	107

-iii-

Exhibits
Exhibit A-1        Form of Restricted Global Net-Lease Mortgage Note
Exhibit A-2        Form of Regulation S Global Net-Lease Mortgage Note
Exhibit A-3        Form of Definitive Global Net-Lease Mortgage Note
Exhibit B        Form of Trustee Report
Exhibit C-1        Form of Transferor Certificate for Transfers of Definitive Notes
		
	Exhibit C-2
	Form of Transferee Certificate for Transfers of Definitive Notes

		
	Exhibit D-1
	Form of Transfer Certificate for Transfers From Regulation S Global Note to Restricted Global Note

		
	Exhibit D-2
	Form of Transfer Certificate for Transfer from Restricted Global Note to Regulation S Global Note During the Restricted Period

		
	Exhibit D-3
	Form of Transfer Certificate for Transfer from Restricted Global Note to Regulation S Global Note After the Restricted Period

		
	Exhibit D-4
	Form of Regulation S Letter for Exchange of Interests in the Temporary Regulation S Global Note for Interests in the Permanent Regulation S Global Note

		
	Exhibit E-1
	Form of Certificate with Respect to Information Request by Beneficial Owner

		
	Exhibit E-2
	Form of Certificate with Respect to Information Request by Prospective Purchaser

		
	Exhibit F
	Form of NRSRO Certification

Schedules

		
	Schedule I-A
	Representations and Warranties with Respect to Mortgage Loans

		
	Schedule I-B
	Representations and Warranties with Respect to Mortgaged Properties (Other than Mortgaged Properties Securing Mortgage Loans Included in the Collateral Pool) and Leases

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MASTER INDENTURE, dated as of December 23, 2013 (as amended, modified or supplemented from time to time as permitted hereby, the “Indenture”), between Spirit Master Funding VII, LLC, a Delaware limited liability company, as an issuer (the “Issuer”), and Citibank, N.A., a national banking association, not in its individual capacity, but solely as Indenture Trustee (the “Indenture Trustee”) under this Indenture.
PRELIMINARY STATEMENT
The Issuers (as defined herein) have duly authorized the execution and delivery of this Indenture to provide for the issuance from time to time of one or more series of Net-Lease Mortgage Notes (collectively, the “Notes”), to be issued pursuant to this Indenture.  The Notes issuable under this Indenture shall be issued in series (each, a “Series”), as from time to time may be created by supplements (each, a “Series Supplement”) to this Indenture. 
In connection with each Series of Notes issued under this Indenture, the applicable Issuers may enter into agreements with other entities that will provide credit enhancement or other protection for the Holders of a Series of Notes and the applicable Issuers will incur obligations under the terms of such agreements.
All things necessary to make the Notes, when the Notes are executed by the applicable Issuers and authenticated and delivered by the Indenture Trustee hereunder and duly issued by such Issuers, the valid and legally binding obligations of such Issuers enforceable in accordance with their terms, and to make this Indenture a valid and legally binding agreement of such Issuers enforceable in accordance with its terms, have been done.
GRANTING CLAUSE
Each of the Issuers hereby Grants to the Indenture Trustee on the applicable Series Closing Date, for the benefit of the Indenture Trustee and the Noteholders, all of such Issuer’s right, title and interest in and to the assets of such Issuer, whether now owned or hereafter acquired by such Issuer, or in which such Issuer now has or at any time in the future may acquire any right, title or interest, together with the assets of any other Issuers (individually, the “Collateral” and, collectively, the “Collateral Pool”), including, without limitation, (i) such Issuer’s Mortgaged Properties (other than Mortgaged Properties securing Mortgage Loans), (ii) each of the Leases with respect to such Mortgaged Properties and all payments required thereunder on and after the applicable First Collateral Date with respect thereto, (iii) such Issuer’s Mortgage Loans and all payments required thereunder on and after the applicable First Collateral Date with respect thereto, (iv) all of such Issuer’s right, title and interest in all fixtures and reserves and escrows, if any, related to such Issuer’s Mortgaged Properties, (v) any guarantees of and security for the Tenants’ obligations under the Leases, including any security deposits thereunder, (vi) all of such Issuer’s rights under the applicable Performance Undertaking and Environmental Indemnity Agreement, (vii) all of such Issuer’s rights (but none of its obligations) under the Property Transfer Agreements, (viii) the Collection Account, the Release Account, the Lockbox Accounts, the Cashflow Coverage Reserve Account, the Payment Account, any sub-accounts of such accounts and any other accounts established under the Transaction Documents for purposes of receiving, retaining and distributing amounts received in respect of the Collateral Pool and making payments to the holders of the Notes and making 

distributions to the holders of the LLC Interests, and all funds and Permitted Investments as may from time to time be deposited therein, (ix) all present and future claims, demands and causes of action in respect of the foregoing, and (x) all proceeds of the foregoing of every kind and nature whatsoever, including, without limitation, all proceeds of the conversion thereof, voluntary or involuntary, into cash or other liquid property, all cash proceeds, accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, rights to payment of any and every kind and other forms of obligations and receivables, instruments and other property that at any time constitute all or part of or are included in the proceeds of the foregoing.
The foregoing Grants are made in trust to secure the payment of principal of and interest on, and any other amounts owing in respect of, the Notes, and to secure compliance with the provisions of this Indenture, all as provided in this Indenture and each Series Supplement. Any amounts, proceeds or other property expressly released from the lien of the Indenture shall cease to constitute “Collateral” and shall cease to be part of the “Collateral Pool”.
LIMITED RECOURSE
The obligation of the Issuers to make payments of principal of and interest on the Notes are limited recourse obligations of the applicable Issuers that are secured solely by and are payable solely from the related Collateral and only to the extent proceeds and distributions on such Collateral are allocated for their benefit under the terms of this Indenture.  The holders of the Notes shall have no recourse to any other assets of the Issuer.  In the event the Collateral has been exhausted and any of the Notes have not been paid in full, then any and all amounts that are still due on such Notes shall be extinguished and shall not revive, and such Notes shall be cancelled.
GENERAL COVENANT
IT IS HEREBY COVENANTED AND DECLARED that the Notes are to be authenticated and delivered by the Indenture Trustee on the applicable Series Closing Dates, that the Collateral is to be held by or on behalf of the Indenture Trustee and that moneys in or from the Collateral Pool are to be applied by the Indenture Trustee for the benefit of the Noteholders, subject to the further covenants, conditions and trusts hereinafter set forth, and each Issuer does hereby represent and warrant, and covenant and agree, to and with the Indenture Trustee, for the equal and proportionate benefit and security of each Noteholder, as follows:
ARTICLE I 
 
DEFINITIONS AND OTHER PROVISIONS 
OF GENERAL APPLICATION
Section 1.01    Definitions.
Whenever used in this Indenture, including in the Preliminary Statement, the Granting Clause and the General Covenant hereinabove set forth, the following words and phrases, unless the context otherwise requires, shall have the meanings specified in this Section 1.01 or, if not specified in this Section 1.01, then in the Property Management Agreement.

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“1933 Act”:  The Securities Act of 1933, as amended, and the rules, regulations and published interpretations of the SEC promulgated thereunder from time to time.
“1939 Act”:  The Trust Indenture Act of 1939, as amended, and the rules, regulations and published interpretations of the SEC promulgated thereunder from time to time.
“1940 Act”:  The Investment Company Act of 1940, as amended, and the rules, regulations and published interpretations of the SEC promulgated thereunder from time to time.
“17g-5 Information Provider”: The Indenture Trustee, acting in such capacity.
“17g-5 Website”:  The internet website of the 17g-5 Information Provider, initially located at www.sf.citidirect.com under the tab “NRSRO”, access to which is limited to Rating Agencies and NRSROs who have provided an NRSRO Certification.
“Account Control Agreement”: As defined in the Property Management Agreement.
“Accrual Period”:  With respect to any Class of Notes, as defined in the applicable Series Supplement.  
“Act”:  As defined in Section 12.05.
“Additional Rent”: As defined in the Property Management Agreement.
“Additional Servicing Compensation”:  As defined in the Property Management Agreement.
“Advance”:  As defined in the Property Management Agreement.
“Affiliate”:  With respect to any specified Person, any other Person controlling or controlled by or under common control with such specified Person.  For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have meanings correlative to the foregoing.
“Affirmative Rating Condition”: With respect to any action or event or proposed action or event, a condition that will be satisfied upon the provision by each Rating Agency (then rating any Notes at the request of any Issuer) of confirmation in writing (including via electronic mail or the publication of a press release) that such action or event, or proposed action or event, will not result in the downgrade, qualification or withdrawal of its then current ratings of any Notes that it is then rating at the request of any Issuer; provided, that the Affirmative Rating Condition also shall be deemed satisfied with respect to a single Series in the event 100% of the Noteholders of such Series consent to or approve such action or proposed action or event or proposed action or event.

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“Aggregate Collateral Value”:  On any date of determination, the sum of the Collateral Values of the Mortgage Loans and Mortgaged Properties (that do not otherwise secure Mortgage Loans), that are included in the Collateral Pool.
“Aggregate Note Principal Balance”:  For any date of determination and any Series, the sum of the Class Principal Balances of each Class of Notes of such Series.
“Aggregate Series Principal Balance”:  On any date of determination, the sum of the Aggregate Note Principal Balances of each outstanding Series, in each case after giving effect to any payments of principal on such date.
“Anticipated Repayment Date”: For any Series of Notes, the Anticipated Repayment Date for such Series of Notes, as specified in the related Series Supplement.
“Applicable Laws”:  As defined in Section 10.03(a).
“Appraised Value”:  As defined in the Property Management Agreement.
“Authenticating Agent”:  As defined in Section 2.02(b).
“Authorized Officer”:  With respect to each Issuer, any person who is authorized to act for such Issuer and who is identified on the list delivered by such Issuer to the Indenture Trustee on each Series Closing Date (as such list may be modified or supplemented from time to time thereafter).
“Automotive Parts and Services”: A Business Sector that includes all retail automotive establishments, including auto parts stores (SIC 5531), automotive services, except repair and carwashes (SIC 7549) and general automotive repair shops (SIC 7538).
“Available Amount”:  As defined in the Property Management Agreement.
“Average Cashflow Coverage Ratio”:  As defined in the Property Management Agreement.
“Back-Up Fee”: As defined in the Property Management Agreement.
“Back-Up Manager”:  As defined in the Property Management Agreement.
“Bank”: Citibank, N.A., a national banking association, in its individual capacity and not as Indenture Trustee, or any successor thereto.
“Banking Facilities”: A Business Sector that includes consumer banking and credit union locations (SIC 6061).
“Bankruptcy Code”:  As defined in the Property Management Agreement.

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“Book-Entry Custodian”:  Initially, the Indenture Trustee and thereafter, such other bank or trust company as the Indenture Trustee shall appoint pursuant to Section 2.06(a).
“Book-Entry Note”:  Any Note registered in the name of the Depository or its nominee.
“Borrower”:  As defined in the Property Management Agreement.
“Business Day”:  Any day other than a Saturday, a Sunday or a day on which banking institutions are authorized or obligated by law or executive order to remain closed in New York, New York, Scottsdale, Arizona, or any other city in which the principal office of the Issuer, the Primary Servicing Office of the Property Manager or the Special Servicer or the Indenture Trustee’s Office is located.
“Business Sector”:  With respect to any Industry Group, any of the following business sectors:  Automotive Parts and Services, Banking Facilities, Car Washes, Convenience Stores, Drug Stores, Education Facilities, Gas/Propane Facilities, Health Clubs/Gyms, Interstate Travel Plazas, Light Manufacturing, Medical Offices and Specialty Medical Facilities, Movie Theaters, Plumbing/Electrical Facilities, Poultry Distribution Facilities, Recreational Facilities, Restaurants and Specialty Retailers.  Additional Business Sectors may be indicated in any of the Series Supplements.
“Car Washes”:  A Business Sector that encompasses facilities that provide cleaning, washing and waxing and services for cars, trucks, vans and trailers (SIC 7542)
“Cash”:  Coin or currency of the United States or immediately available federal funds, including such funds delivered by wire transfer.
“Cashflow Coverage Ratio”:  As defined in the Property Management Agreement.
“Cashflow Coverage Reserve Account”:  The segregated account established in the name of the Indenture Trustee pursuant to Section 2.18 hereof.
“Cashflow Shortfall Amount”:  As defined in Section 2.18(d).  
“Class”:  Collectively, all of the Notes bearing the same Series, alphabetical and, if applicable, numerical class designations.
“Class Principal Balance”:  With respect to any Class of Notes and any date of determination, the aggregate initial principal amount specified in the applicable Series Supplement for such Class of Notes, as such amount is reduced by (x) any payments of principal actually made on the Notes of such Class prior to such date of determination and (y) the principal balance of any Notes of such Class canceled prior to the date of determination.
“Code”:  The Internal Revenue Code of 1986, as amended.
“Collateral”:  As defined in the Granting Clause hereto.

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“Collateral Agency Agreement”:  The Collateral Agency Agreement, dated as of December 23, 2013, among the Collateral Agent, the Issuer, Spirit Realty, any Joining Party Issuer (as defined in the Collateral Agency Agreement) and Any Joining Party Lender (as defined in the Collateral Agency Agreement), as amended, supplemented or modified from time to time and any other Collateral Agency Agreement as set forth in a Series Supplement.
“Collateral Agent”:  Citibank, N.A., a national banking association, in its capacity as collateral agent under this Indenture and the Collateral Agency Agreement, or its successor in interest, or any successor collateral agent appointed as provided in the Collateral Agency Agreement.
“Collateral Defect”:  As defined in the Property Management Agreement.
“Collateral Pool”:  As defined in the Granting Clause hereto.
“Collateral Pool Expenses”:  As defined in Section 2.11(b).
“Collateral Value”:  As defined in the Property Management Agreement.
“Collection Account”:  As defined in the Property Management Agreement.
“Collection Period”:  As defined in the Property Management Agreement.
“Condemnation Proceeds”: As defined in the Property Management Agreement.
“Control Person”:  With respect to any Person, any director, officer, partner, member, manager, employee or agent of such Person or any other Person that constitutes a “controlling person” within the meaning of Section 15 of the 1933 Act.
“Controlling Party”:  With respect to any Series, as defined in the applicable Series Supplement.
“Convenience Stores”: A Business Sector that includes all retail establishments classified as convenience stores (SIC 5412), gasoline service stations (5541) and retail establishments generally classified as gasoline stations (SIC 5500) that also offer convenience store retail services.
“Corrected Lease”:  As defined in the Property Management Agreement.
“Corrected Loan”:  As defined in the Property Management Agreement.
“Cure Party”:  As defined in the Property Management Agreement.
“Current Cashflow Coverage Ratio”:  With respect to any Determination Date, the Cashflow Coverage Ratio for the Determination Date for the Collection Period most recently ended.

-6-

“Custodian”:  U.S. Bank National Association, a national banking association or a custodian on its behalf, or its successor in interest.
“Custodian Fee”:  A per annum amount equal to the product of (a) 0.0009% and (b) the Aggregate Series Principal Balance, subject to a minimum annual fee of $4,000.
“Custody Agreement”: The Custody Agreement, dated as of December 23, 2013, among the Issuer, the Trustee, the Custodian and any joining party issuers, each as a co-Issuer, as the same may be amended.
“Deemed Rating Condition Agency”:  KBRA, and any other Rating Agency specified as a “Deemed Rating Condition Agency” in a Series Supplement.
“Deferred Post ARD Additional Interest”: With respect to any Payment Date and any Series of Notes, the applicable accrued and unpaid Post-ARD Additional Interest from any prior Payment Date in respect of the Notes of such Series. The Post-ARD Additional Interest with respect to each Class of Notes will be calculated on a 30/360 basis or actual/360 basis, as indicated in the applicable Series Supplement.
“Deficiency”:  As defined in Section 2.15.
“Definitive Note”:  As defined in Section 2.06(a).
“Depository”:  The Depository Trust Company or any successor depository hereafter named as contemplated by Section 2.06.  The nominee of the initial Depository, for purposes of registering such Notes that are Book-Entry Notes, is Cede & Co.  The Depository shall at all times be a “clearing corporation” as defined in Section 8-102(4) of the Uniform Commercial Code of the State of New York and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934, as amended.
“Depository Participant”:  A broker, dealer, bank or other financial institution or other Person for whom from time to time the Depository effects book-entry transfers and pledges of securities deposited with the Depository.
“Determination Date”:  As to any Payment Date, the 7th day of the month in which such Payment Date occurs or, if such 7th day is not a Business Day, the Business Day immediately succeeding such 7th day.
“Drug Stores”: A Business Sector that includes all retail establishments classified as drug stores (SIC 5912) that offer pharmacy services and general retail (and are not grocery store locations).
“Early Amortization Event”:  An Early Amortization Event will occur (A) as of any Determination Date, if the Average Cashflow Coverage Ratio for such Determination Date is less than the Early Amortization Threshold; provided that, following the occurrence of any such Early Amortization Event, if, as of any date of determination, the Cashflow Coverage Ratio as of the three most recent Determination Dates (including any Determination Date occurring on such 

-7-

date of determination) exceeded the Early Amortization Threshold as of such date of determination, then such Early Amortization Event will be deemed to be cured for all purposes and no longer continuing as of such date of determination; (B) if an Event of Default shall have occurred and shall not have been cured or waived in accordance with this Indenture; (C) if (i) a Series Post ARD Event has occurred and is continuing with respect to any Series and (ii) any of the Notes are then rated more than two rating subcategories lower than the ratings originally assigned to such Notes by any Rating Agency then rating such Notes at the request of an Issuer; provided that, following the occurrence of any such Early Amortization Event, if at any time (x) no Notes are rated more than two subcategories lower than the ratings originally assigned to such Notes by any Rating Agency then rating such Notes at the request of an Issuer or (y) no Series Post ARD Event is continuing with respect to any Series, then such Early Amortization Event will be deemed to have been cured for all purposes and no longer continuing; (D) if a Series Post ARD Event has occurred and is continuing with respect to more than one Series of Notes; provided that, following the occurrence of any such Early Amortization Event, if at any time a Series Post ARD Event is no longer continuing with respect to more than one Series of Notes, then such Early Amortization Event will be deemed to have been cured for all purposes and no longer continuing or (E) if any other “Early Amortization Event” occurs as may be set forth in a Series Supplement that is specified as applying to any Series (but only with respect to such Series for which such “Early Amortization Event” applies). An Early Amortization Event under clause (A) of the definition above may only be cured two times in any calendar year and may be cured no more than five times in total (after which such Early Amortization Event may no longer be cured).
“Early Amortization Threshold”:  An amount that (x) in the event that a Series Post ARD Event has occurred and is continuing, is equal to 1.25 or (y) otherwise, is equal to 1.10; provided, that an Issuer may in its sole discretion increase either such amount, provided that the Rating Condition is satisfied with respect to such increase.
“Education Facilities”: A Business Sector that encompasses universities (SIC 8221), vocational/technical schools (SIC 8249), child day care facilities (SIC 83518531), private specialized K-12 facilities (SIC 8211) and public charter schools (SIC 8211). 
“Eligible Account”:  Any of (i) a segregated account maintained with a federal or state-chartered depository institution or trust company, the long-term deposit or long-term unsecured debt obligations of which (or of such institution’ s parent holding company) are rated “A-” or better by S&P (and no lower than an equivalent rating by KBRA if then rated by KBRA), if the deposits are to be held in the account for more than 30 days, or the short-term deposit or short-term unsecured debt obligations of which (or of such institution’s parent holding company) are rated “A-1” by S&P (and no lower than an equivalent rating by KBRA if then rated by KBRA) if the deposits are to be held in the account for 30 days or less, in any event at any time funds are on deposit therein, (ii) a segregated trust account maintained with a federal- or state-chartered depository institution or trust company acting in its fiduciary capacity, which, in the case of a state-chartered depository institution or trust company is subject to regulations regarding fiduciary funds on deposit therein substantially similar to 12 C.F.R. § 9.10(b), and which, in either case, has a combined capital and surplus of at least $50,000,000 and is subject to supervision or examination by federal or state authority, or (iii) any other account that is acceptable to the Rating Agencies (as evidenced by written confirmation 

-8-

from such Rating Agencies); provided, that in the event that any of the accounts no longer qualifies as an Eligible Account under this definition, the Issuers shall promptly, and in no event later than thirty (30) calendar days following such account failing to qualify as an Eligible Account, direct the Indenture Trustee to remit all funds in such account to a specified Eligible Account. Eligible Accounts may bear interest.
“Environmental Indemnity Agreement”:  Each Environmental Indemnity Agreement, dated as of the applicable Series Closing Date, executed by the applicable Issuer in favor of the Indenture Trustee and the other beneficiaries thereunder, as the same may be amended, supplemented or otherwise modified from time to time.
“Environmental Law”:  As defined in Section 10.07.
“Environmental Lien”:  As defined in Section 10.07.
“Environmental Release”:  As defined in Section 10.07.
“Equipment Loan”:  As defined in the Property Management Agreement.
“ERISA”:  The Employee Retirement Income Security Act of 1974, as amended.
“Event of Default”:  As defined in Section 4.01.
“Excess Cashflow”: With respect to any Payment Date, consists of Additional Rent and any Excess Insurance Proceeds received by the Issuer during the related Collection Period.
“Excess Insurance Proceeds”:  As of any Determination Date, the excess, if any, of (a) the amounts released in respect of casualty insurance policies related to the Mortgaged Properties during the preceding Collection Period minus (b) the sum of (i) the amount necessary to reimburse the Property Manager, Back-Up Manager or the Indenture Trustee for any Property Protection Advances made with respect to casualties relating to such casualty insurance policies, and (ii) the repair or replacement costs (as determined by the Property Manager) associated with such casualties on the Mortgaged Properties, as applicable.
“Exchange Act”:  The Securities Exchange Act of 1934, as amended.
“Extraordinary Expense Cap”:  An amount equal to the greater of (i) the sum of (x) $375,000 for so long as either the Series of Notes designated as “Series 2013-1” or “Series 2013-2” is outstanding and (y) the product of $250,000 and the number of then outstanding Series (other than the Series designated as “Series 2013-1” or “Series 2013-2”) and (ii) 0.070% of the Aggregate Series Principal Balance (such amount determined as of the most recent Series Closing Date and the commencement of each calendar year thereafter) per calendar year and 1/12 of such amount per Collection Period (such amount to be cumulative for each Collection Period in a calendar year if not used, although any such cumulative amount will not be carried forward into the next calendar year).

-9-

“Extraordinary Expenses”:  Unanticipated expenses required to be borne by the applicable Issuers, that consist of, among other things: (i) amounts to be paid for the transfer of the Loan Files, Lease Files and other administrative expenses incurred in connection with the sale or transfer of Leases, Mortgage Loans and Mortgaged Properties by such Issuers; (ii) payments to each party entitled thereto of amounts for certain expenses and liabilities as specified in this Indenture (including Section 5.04(a)(2)), the Notes, the Property Management Agreement, the applicable LLC Agreements or any other agreement related thereto; (iii) costs and expenses incurred in connection with environmental remediation with respect to any Mortgaged Property included in the Collateral Pool or securing a Mortgage Loan included in the Collateral Pool, (iv) indemnities payable by the Issuer under any Transaction Document; and (iv) unless otherwise specified, payments for the advice of counsel and the cost of opinions of counsel in connection with any Transaction Document.
“FDIC”:  Federal Deposit Insurance Corporation or any successor.
“Final Payment Date”:  With respect to any Class of Notes, the Payment Date on which the final payment on such Notes is made hereunder by reason of all principal, interest and other amounts due and payable on such Notes having been paid and/or such Notes having been cancelled.
“First Collateral Date”:  With respect to any Mortgaged Property or Mortgage Loan, (i) in the event that such Mortgaged Property or Mortgage Loan was owned by an Issuer on the Series Closing Date on which such Issuer first became an Issuer, the Series Closing Date, or (ii) otherwise, the Transfer Date with respect thereto.
“Foreclosure Proceeding”:  Any proceeding, non-judicial sale or power of sale or other proceeding (judicial or non-judicial) for the foreclosure, sale or assignment of any Mortgage Loan, Mortgaged Property or Lease or any other Collateral under any Mortgage.
“GAAP”:  Such accounting principles as are generally accepted in the United States.
“Gas/Propane Facilities”: A Business Sector that includes distribution facilities that store and distribute propane to retail outlets (such as convenience or home improvement stores) that allow consumers to have their propane tanks refilled (similar to businesses classified under SIC 5169).
“Global Appraisal Event”: As defined in the Property Management Agreement.
“Grant”:  To mortgage, pledge, bargain, sell, warrant, alienate, demise, convey, assign, transfer, create and grant a security interest in and right of set-off against, deposit, set over and confirm.  A Grant of Collateral shall include all rights, powers and options (but none of the obligations) of the granting party thereunder, including, without limitation, the immediate and continuing right to claim for, collect, receive and give receipt for principal and interest payments in respect of such Collateral and all other moneys and proceeds payable thereunder, to give and receive notices and other communications, to make waivers or other agreements, to exercise all rights and options, to bring Proceedings in the name of the granting party or otherwise, and generally 

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to do and receive anything which the granting party is or may be entitled to do or receive thereunder or with respect thereto.
“Ground Lease”: As defined in the Property Management Agreement.
“Guaranty”:  As defined in the Property Management Agreement.
“Hazardous Materials”:  As defined in Section 10.07.
“Health Clubs/Gyms”: A Business Sector (SIC 7991) that encompasses facilities that offer services that promote health and physical well-being.
“Hedge Agreement”:  With respect to the Class of any Series, as defined in the applicable Series Supplement.
“Hedge Counterparty”:  With respect to the Class of any Series, as defined in the applicable Series Supplement.
“Hedge Counterparty Account”:  With respect to the Class of any Series, as defined in the applicable Series Supplement.
“Indenture”:  This instrument as originally executed or as it may be supplemented, amended or modified from time to time pursuant to the applicable provisions hereof, including, with respect to any Series, the related Series Supplement.
“Indenture Trustee”:  Citibank, N.A., a national banking association, in its capacity as trustee under this Indenture, or its successor in interest, or any successor trustee appointed as provided in this Indenture.
“Indenture Trustee Fee”:  A per annum amount equal to $6,000 for each Series of Notes Outstanding plus the product of (a) 0.0018% and (b) the Aggregate Collateral Value.
“Indenture Trustee’s Office”:  The corporate trust office of the Indenture Trustee at which at any particular time its mortgage-backed securities trust business with respect to this Indenture shall be administered, which office at the date of the execution of this Indenture is located at (i) solely for purposes of the transfer, surrender or exchange of Notes, 480 Washington Boulevard, 30th Floor, Jersey City, New Jersey 07310 Attention: Agency and Trust: Spirit Master Funding and (ii) for all other purposes, 388 Greenwich Street, 14th Floor, New York, New York 10013, Attention: Agency and Trust-Spirit Master Funding, or at such other address as the Indenture Trustee or Note Registrar may designate from time to time.
“Independent”:  As defined in the Property Management Agreement.
“Industry Group”:  As defined in the Property Management Agreement.
“Initial Closing Date”: The Series Closing Date of the first Series of Notes issued hereunder.

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“Initial Purchaser”: With respect to a Series of Notes, any Person named as such in the applicable Series Supplement or any successor thereto.
“Interested Person”:  Any Issuer, any Issuer Member, the Property Manager, the Special Servicer, any Holder of Notes or an Affiliate of any such Person.
“Interstate Travel Plazas”:  A Business Sector (SIC 5411) that includes travel plaza operations, which generally offer (at a minimum) gasoline and diesel fuel, a convenience store and food service, although additional services, such as showering facilities, truck maintenance, truck washing, tire balancing and other services may be offered.
“Issuer”:  Each of Spirit Master Funding VII, LLC, a Delaware limited liability company, or its successor in interest, and any other party designated as an “Issuer” in any Series Supplement, or its successors in interest, as the context may require.  References to a “related” or “applicable” Issuer shall refer to the Issuer that owns the Collateral or has issued or co-issued the Notes being addressed.
“Issuer Advances”: As defined in Section 2.11(b).
“Issuer Expense Cap”:  An amount equal to 0.050% of the Aggregate Series Principal Balance (determined as of the most recent Series Closing Date and the commencement of each calendar year thereafter) per calendar year and 1/12 of such amount per Collection Period; provided, that, if the Affirmative Rating Condition is satisfied, the Issuer Expense Cap will be such higher amount as proposed by an Issuer in its sole discretion. 
“Issuer Expenses”:  With respect to the Collateral Pool, the costs and expenses relating to the Collateral Pool for (i) general liability insurance policies maintained by the applicable Issuers as owners of the Mortgaged Properties, or such Issuers’ respective proportionate shares of premiums with respect to general liability insurance policies maintained by Affiliates of such Issuers, (ii) casualty insurance policies maintained by the applicable Issuers, or such Issuers’ respective proportionate shares of premiums with respect to casualty insurance policies maintained by Affiliates of such Issuers, to insure casualties not otherwise insured by any related Tenant due to a default by such Tenant under the insurance covenants of its Lease or because any related Tenant permitted to self-insure fails to pay for casualty losses, and (iii) state franchise taxes prohibited by law from being passed through by the Issuer as lessor to a Tenant.
“Issuer Order”:  A written order signed in the name of an Issuer by a Responsible Officer of such Issuer.
“Issuer Request”:  A written request signed in the name of an Issuer by a Responsible Officer of such Issuer.
“Issuer’s Office”:  The principal office of Spirit Master Funding VII, LLC, which office at the Initial Closing Date is located at 16767 N. Perimeter Drive, Suite 210, Scottsdale, Arizona 85260, facsimile number: 480-606-0820, Attention: Ryan Berry, General Counsel.  The 

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principal office of any Issuer (other than Spirit Master Funding VII, LLC) is located at the address provided in the related LLC Agreement.
“KBRA”: Kroll Bond Rating Agency, Inc.
“Lease”:  As defined in the Property Management Agreement.
“Lease Due Date”:  With respect to a Lease, the day of each calendar month on which the Monthly Lease Payment with respect thereto is due. 
“Lease File”:  As defined in the Custody Agreement.
“Legal Final Payment Date”:  With respect to any Series of Notes, the date specified in the applicable Series Supplement.
“Letter of Representations”:  With respect to any Series of Notes, the Letter of Representations, dated the applicable Series Closing Date, among the Depository, the Indenture Trustee and the applicable Issuers.
“Light Manufacturing”: A Business Sector includes facilities that manufacture goods as inputs for other manufacturers or to be sold to end users, including specialty textile manufacturers (SIC 2299), specialty plastics manufacturers (SIC 2820), automotive parts and accessories manufacturers (SIC 3714), sporting and athletic goods manufacturers (SIC 3949) and a ready-mixed concrete manufacturers (SIC 3273).
“Liquidation Fee”:  As defined in the Property Management Agreement.
“Liquidation Proceeds”: As defined in the Property Management Agreement.
“LLC Agreement”:  As defined in the Property Management Agreement.
“LLC Interests”:  As defined in the Property Management Agreement.
“Loan Due Date”:  With respect to a Mortgage Loan, the first day of each calendar month on which the Monthly Loan Payment with respect thereto is due, without giving effect to any subsequent change or modification by the Property Manager or Special Servicer pursuant to the Property Management Agreement or any bankruptcy or similar proceeding with respect to the Borrower.
“Loan File”:  As defined in the Custody Agreement.
“Lockbox Account”:  As defined in the Property Management Agreement.
“Make Whole Payment”:  With respect to the Notes of any Series, an amount specified in the applicable Series Supplement.

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“Maturity”:  With respect to any Note, the date as of which the principal of and interest on such Note has become due and payable as herein provided, whether on the Legal Final Payment Date, by acceleration or otherwise.
“Maximum Asset Concentrations”:  As defined in the most recent Series Supplement.
“Medical Office and Specialty Medical Facilities”: A Business Sector that encompasses establishments other than hospitals of licensed practitioners having the degree of M.D. and engaged in the practice of generic or specialized medicine and surgery, as well as a range of other services, including outpatient surgery centers (SIC 8069) and offices and clinics of medical doctors (SIC 8011).
“Monthly Lease Payment”:  As defined in the Property Management Agreement.
“Monthly Loan Payment”:  As defined in the Property Management Agreement.
“Moody’s”:  Moody’s Investors Service, Inc.
“Mortgage”:  With respect to any Mortgaged Property, a mortgage (or deed of trust or deed to secure debt), assignment of leases and rents, security agreement and fixture filing or similar document executed by the applicable Issuer or the related Borrower, as applicable, pursuant to which such Issuer or Borrower grants a lien on its interest in such Mortgaged Property in favor of the Collateral Agent or the initial lender of the related Mortgage Loan, as applicable.
“Mortgage Loan”:  As defined in the Property Management Agreement.
“Mortgage Loan Schedule”:  As defined in the Property Management Agreement.
“Mortgaged Property”:  As defined in the Property Management Agreement.
“Mortgaged Property Schedule”:  As defined in the Property Management Agreement.
“Movie Theaters”: A Business Sector (SIC 7830) that comprises the primary initial distribution channel for new motion picture releases.
“New Issuance”: As defined in Section 2.04(c). 
“Nonrecoverable Advance”:  As defined in the Property Management Agreement.
“Note”:  Any of the Issuers’ Net Lease Mortgage Notes, executed, authenticated and delivered hereunder and under the related Series Supplements, substantially in the forms attached as Exhibit A hereto.
“Note Interest”:  On any Payment Date for any Class of Notes, the interest accrued during the related Accrual Period at the Note Rate for such Class, applied to the Class Principal 

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Balance of such Class on such Payment Date before giving effect to any payments of principal on such Payment Date.  The Note Interest with respect to each Class of Notes will be calculated on a 30/360 basis or actual/360 basis, as indicated in the applicable Series Supplement.
“Note Owner”:  With respect to a Book-Entry Note, the Person who is the beneficial owner of such Note as reflected on the books of the Depository, a Depository Participant or an indirect participating brokerage firm for which a Depository Participant acts as agent.
“Note Principal Balance”:  With respect to any Note and any date of determination, the initial outstanding principal amount of such Note specified on such Note, as such amount is reduced by (x) any payments of principal actually made on such Note prior to such date of determination and (y) the principal amount of such Note canceled prior to the date of determination.
“Note Rate”:  With respect to any Class of Notes, the note interest rate specified in the applicable Series Supplement.
“Note Register”:  As defined in Section 2.05(a).
“Note Registrar”:  Initially, the Indenture Trustee and thereafter, such other bank or trust company as the Indenture Trustee shall appoint pursuant to Section 2.05(a).
“Noteholder” or “Holder”:  With respect to any Note, the Person in whose name such Note is registered on the Note Register maintained pursuant to Section 2.05.  All references herein to “Noteholders” shall reflect the rights of Note Owners as they may indirectly exercise such rights through the Depository and the Depository Participants, except as otherwise specified herein; provided, however, that the parties hereto shall be required to recognize as a “Noteholder” or “Holder” only the Person in whose name a Note is registered in the Note Register as of the related Record Date.
“Notice of Default”:  As defined in Section 5.02.
“NRSRO”: Any nationally recognized statistical rating organization, as the term is used in federal securities laws, including, without limitation, the Rating Agencies.
“NRSRO Certification”:  A certification executed by a NRSRO in favor of the 17g-5 Information Provider (with a copy to the Indenture Trustee) substantially in the form attached as Exhibit F hereto or such other form as provided by the 17g-5 Information Provider (which may also be submitted electronically via the Indenture Trustee’s internet website), certifying that such person is a NRSRO and if such Person is not a Rating Agency, providing the certifications required under Exchange Act Rule 17g-5(e), upon which the 17g-5 Information provider may conclusively rely for purposes of granting such NRSRO access to the 17g-5 Website.
“Officer’s Certificate”:  A certificate signed by any Responsible Officer of an Issuer or of the Property Manager or Special Servicer, as the case may be.

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“Opinion of Counsel”:  A written opinion of counsel (which shall be rendered by counsel that is Independent of the Issuers, the Issuer Members and the Indenture Trustee) in form and substance reasonably acceptable to and delivered to the addressees thereof.
“Optional Repayment Date”: As set forth in the applicable Series Supplement.
“Originators”:  As defined in the Property Management Agreement.
“OTS”:  Office of Thrift Supervision or any successor thereto.
“Outstanding”:  When used with respect to Notes, means, as of any date of determination, any Note theretofore authenticated and delivered under this Indenture, except:
(i)    Notes theretofore canceled by the Note Registrar or delivered to the Note Registrar for cancellation (other than any Note as to which any amount that has become due and payable in respect thereof has not been paid in full); 
(ii)    Notes in exchange for or in lieu of which other Notes have been authenticated and delivered pursuant to this Indenture, other than any such Notes in respect of which there shall have been presented to the Note Registrar proof satisfactory to it that such Notes are held by a bona fide purchaser in whose hands such Notes are valid obligations of the applicable Issuers; and
(iii)    Notes or portions thereof for whose payment or redemption funds in the necessary amount have been theretofore deposited with the Indenture Trustee in trust for the Holders of such Notes pursuant to Section 7.01; provided that if such Notes or portions thereof are to be redeemed, notice of redemption has been duly given pursuant to this Indenture;
provided, however, that in determining whether the Holders of the requisite amount or percentage have given any request, demand, authorization, vote, direction, notice, consent or waiver hereunder, Notes owned by an Interested Person shall be disregarded and deemed not to be Outstanding (unless any such Person or Persons owns all the Notes), except that, in determining whether the Indenture Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Notes which the Indenture Trustee actually knows to be so owned shall be so disregarded.  Notes owned by an Interested Person which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Note Registrar in its sole discretion the pledgee’s right to act with respect to such Notes and that the pledgee is not an Interested Person.
“Ownership Interest”:  As to any Note, any ownership or security interest in such Note as held by the Holder thereof and any other interest therein, whether direct or indirect, legal or beneficial, as owner or as pledgee.
“P&I Advance”: As defined in the Property Management Agreement.
“P&I Shortfall”: As defined in the Property Management Agreement.

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“Payment Account”:  The segregated account established in the name of the Indenture Trustee pursuant to Section 2.10(a).
“Payment Date”:  The 20th day of each calendar month, or, if such 20th day is not a Business Day, the next succeeding Business Day, commencing with respect to each Series on the date specified in the applicable Series Supplement.
“Payoff Amount”:  As defined in the Property Management Agreement.
“Percentage Interest”:  With respect to any Note of any Class, the fraction, expressed as a percentage, the numerator of which is the initial Note Principal Balance of such Note on the applicable Series Closing Date as set forth on the face thereof, and the denominator of which is the initial Class Principal Balance of such Class on the applicable Series Closing Date.
“Percentage Rent”:  As defined in the Property Management Agreement.
“Performance Undertaking”:  Each Performance Undertaking, dated as of the applicable Series Closing Date, between Spirit Realty and the applicable Issuer and executed by Spirit Realty in favor of the such Issuer and its assignees, including the Indenture Trustee and the Collateral Agent, as the same may be amended or otherwise modified.
“Permanent Regulation S Global Note”:  As defined in Section 2.01(c).
“Permitted Exceptions”:  With respect to any Mortgaged Property and the related Mortgage Loans and/or Leases, as applicable, (i) liens for real estate taxes and special assessments not yet due and payable or due but not yet delinquent, (ii) covenants, conditions and restrictions, rights-of-way, easements and other matters of public record, such exceptions being of a type or nature that are acceptable to mortgage lending institutions generally, (iii) other matters to which like properties are commonly subject, which matters referred to in clauses (i), (ii) and (iii) do not, individually or in the aggregate, (x) in the case of Mortgaged Properties securing Mortgage Loans, materially interfere with the value of the Mortgaged Loan, or do not materially interfere or restrict the current use or operation of the applicable Mortgaged Property or do not materially interfere with the security intended to be provided by the Mortgage, the current use or operation of the Mortgaged Property or the current ability of the Mortgaged Property to generate net operating income sufficient to service the Mortgage Loan or (y) in the case of Mortgaged Properties which do not secure Mortgage Loans, materially interfere with the value of such Mortgaged Property, or do not materially interfere or restrict the current use or operation of such Mortgaged Property relating to the Lease or do not materially interfere with the security intended to be provided by any mortgage, the current use or operation of the Mortgaged Property or the current ability of the Mortgaged Property to generate net operating income sufficient to service the Lease.
“Person”:  Any individual, corporation, partnership, limited liability company, joint venture, joint-stock company, estate, trust, association, unincorporated organization, or any federal, state, county or municipal government or any political subdivision thereof.

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“Plan”:  Any one of: (i)(A) an “employee benefit plan”, as defined in Section 3(3) of ERISA that is subject to the provisions of Title I of ERISA, or (B) a “plan”, as defined in Section 4975 of the Code, that is subject to the provisions of Section 4975 of the Code; or (ii) an entity whose underlying assets include assets of any such employee benefit plan or plan by reason of an investment in an entity by such employee benefit plan or plan.
“Plumbing/Electrical Facilities”: A Business Sector that encompasses wholesale operations that supply plumbing, electrical and related products primarily to contractors as opposed to the general public (SIC 5070).
“Post-ARD Additional Interest”: For any Payment Date after the Anticipated Repayment Date of any applicable Class of Notes, an amount equal to (X) the Class Principal Balance of such Class on such Payment Date before giving effect to any payments of principal on such Payment Date multiplied by (Y) the Post-ARD Additional Interest Rate.  The Post-ARD Additional Interest with respect to each Class of Notes will be calculated on a 30/360 basis or actual/360 basis, as indicated in the applicable Series Supplement.
“Post-ARD Additional Interest Rate”: With respect to any applicable Class of Notes, the rate specified in the applicable Series Supplement.
“Poultry Distribution Facilities”: A Business Sector encompasses the entire process of processing and distributing chicken to retailers who then process the chicken for end users (SIC 2015).
“Principal Redemption Amount”: As defined in Section 7.01(b).
“Principal Terms”: With respect to any Series: (i) the name or designation of such Series; (ii) the initial principal amount of the Notes to be issued for such Series; (iii) the interest rate to be paid with respect to such Series (or method for the determination thereof); (iv) the Mortgage Loans and Mortgaged Properties pledged to the Indenture Trustee in connection with such Series; (v) the designation of any Series Accounts and the terms governing the operation of any such Series Accounts; (vi) the terms of any form of Series Enhancement with respect to such Series; (vii) the Legal Final Payment Date for the Series; and (viii) such other terms and provisions as may be specified in the applicable Series Supplement with respect to the related Notes and the Collateral Pool.
“Pro Rata Share” With respect to any Series and any Payment Date and any amount, the product of (i) such amount and (ii) the result of (x) the sum of the Class Principal Balances of each Class of Notes of such Series divided by (y) the sum of the Class Principal Balances of each Class of Notes of all outstanding Series.
“Proceeding”:  Any suit in equity, action at law or other judicial or administrative proceeding.
“Property Insurance Proceeds”: As defined in the Property Management Agreement.

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“Property Management Agreement”:  The Property Management and Servicing Agreement, dated as of December 23, 2013, among the Issuer, Spirit Realty, as Property Manager and Special Servicer, the Back-Up Manager and any joining parties, each as a co-Issuer, as the same may be amended, supplemented or otherwise modified.
“Property Management Fee”:  As defined in the Property Management Agreement.
“Property Manager”:  As defined in the Property Management Agreement.
“Property Manager Additional Servicing Compensation”:  As defined in the Property Management Agreement.
“Property Protection Advance”: As defined in the Property Management Agreement.
“Property Transfer Agreements”:  Any agreement between one or more Originators or one or more non-Originators and an Issuer pursuant to which such Issuer acquires, one or more Mortgaged Properties or Mortgage Loans.
“Prospective Purchase Representations”:  As defined in Section 2.05(o).
“Protective Mortgage Loan”:  As defined in the Property Management Agreement.
“Purchase Option Deficiency”:  As defined in the Property Management Agreement.
“Purchase Premium”:  As defined in the Property Management Agreement.
“Qualified Institutional Buyer”:  A “qualified institutional buyer” within the meaning of Rule 144A.
“Qualified Substitute Mortgage Loan”: As defined in the Property Management Agreement.
“Qualified Substitute Mortgaged Property”:  As defined in the Property Management Agreement.
“Rating Agency”:  With respect to any Class of Notes as of any date of determination, each nationally recognized statistical rating organization that is then rating such Class of Notes at the request of an Issuer.
“Rating Condition”:  With respect to any action or event or proposed action or event, a condition that will be satisfied if one or more of the following has occurred with respect to all Notes then rated by any Deemed Rating Condition Agency at the request of an Issuer: (i) the Affirmative Rating Condition is satisfied with respect to each such Deemed Rating Condition Agency, (ii) a written waiver or acknowledgment from each such Deemed Rating Condition Agency (including via electronic mail or the publication of a press release) indicating its decision not to 

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review the matter for which evidence of satisfaction of the Rating Condition is sought has been received or (iii) if the requirements for deemed satisfaction of the Rating Condition set forth set forth under Section 8.06 have been met with respect to each such Deemed Rating Condition Agency.
“Re-Appraised Value”: As defined in the Property Management Agreement.
“Record Date”:  As to any Payment Date with respect to Book-Entry Notes, the Business Day immediately preceding such Payment Date.  As to any Payment Date with respect to Definitive Notes, the last Business Day of the prior calendar month or, in the case of the initial Payment Date for any Series, the applicable Series Closing Date.
“Recreational Facilities”: A Business Sector (SIC 7999) that includes all indoor and outdoor amusement and recreational facilities.
“Regulated Substance”:  As defined in Section 10.07.
“Regulation S”:  Regulation S promulgated under the 1933 Act.
“Regulation S Global Note”:  As defined in Section 2.01(c).
“Reinvestment Yield”:  As defined in the most recent Series Supplement.
“Release Account”:  As defined in the Property Management Agreement.
“Requisite Global Majority”: The Noteholders (other than Spirit Realty or any affiliates thereof) that own in the aggregate more than 66 2/3% of the Aggregate Series Principal Balance (excluding, for the purposes of this determination, any Notes held by Spirit Realty or any of its affiliates).
“Reserve Accounts”:  As defined in Section 2.21.
“Resolution”:  A copy of a resolution of the board of directors of an Issuer certified by an Authorized Officer of such Issuer to have been duly adopted by such Issuer and to be in full force and effect on the date of such certification.
“Responsible Officer”:  When used with respect to any Issuer Member or the Indenture Trustee, any officer of such Issuer Member or the Indenture Trustee, as the case may be (and, in the case of the Indenture Trustee, assigned to its Agency and Trust Division (or any successor thereto) and including any Vice President, Assistant Vice President, Trust Officer, Assistant Secretary Trust Officer or any other officer customarily performing functions with respect to corporate trust matters), and, with respect to a particular matter, any other officer to whom such matter is referred because of such officer’s knowledge of and familiarity with the particular subject, in each case having direct responsibility for the administration of this Indenture.  When used with respect to the Property Manager, the Back-Up Manager or the Special Servicer, any officer or employee involved in or responsible for the administration or servicing of the Mortgage Loans, Leases or Mortgaged Properties under this Agreement and whose name and specimen signature 

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appear on a list prepared by each party and delivered to the other party, as such list may be amended from time to time by either party.
“Restaurants”: A Business Sector that includes all retail restaurant and foodservice establishments (SIC 5812). 
“Restricted Global Note”:  As defined in Section 2.01(b).
“Restricted Note”:  A Restricted Global Note or a Definitive Note.
“Restricted Period”:  With respect to the Notes of any Series, the period of time to and including 40 days after the later of (a) the date upon which such Notes were first offered to any Persons (other than distributors) in reliance upon Regulation S and (b) the applicable Series Closing Date.
“Rule 144A”:  Rule 144A promulgated under the 1933 Act.
“S&P”:  Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.
“Scheduled Principal Payment”:  With respect to any Payment Date and any Series, an amount equal to the sum of (a) any unpaid Scheduled Principal Payment or portion thereof for the Notes of such Series from any prior Payment Date plus (b) the product of (i)(A) the related Scheduled Series Balance for such Notes for the prior Payment Date minus (B) the related Scheduled Series Balance for such Notes for the current Payment Date multiplied by (ii) a fraction (A) the numerator of which is equal to the Aggregate Note Principal Balance of such Series (without taking into account any payments to be made on such Payment Date) minus the amounts specified in clause (a) of this definition and (B) the denominator of which is the related Scheduled Series Balance of such Series for the prior Payment Date.
“Scheduled Series Balance”:  With respect to any Payment Date and any Series of Notes, as defined in the applicable Series Supplement.
“SEC”:  The Securities and Exchange Commission.
“Series”: Any series of Notes issued pursuant to this Indenture.
“Series Account”: Any account described in a related Series Supplement as established in the name of the Indenture Trustee for the benefit of the related Noteholders. 
“Series Available Amount”:  As defined in Section 2.11(b).
“Series Closing Date”: With respect to any Series, the closing date specified in the applicable Series Supplement.
“Series Enhancement”: The rights and benefits provided to the applicable Issuers or the Noteholders of any Series or Class pursuant to any interest rate swap agreement, interest rate 

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cap agreement, reserve account, spread account, guaranteed rate agreement, letter of credit, surety bond, financial guaranty insurance, interest rate protection agreement or other similar agreement. Series Enhancement shall also refer to any agreements, instruments or documents governing the terms of the enhancements mentioned in the previous sentence or under which they are issued, where the context makes sense.  The subordination of any Class to another Class shall be deemed to be a Series Enhancement.
“Series Enhancer”: The Person or Persons providing any Series Enhancement, other than (except to the extent otherwise provided with respect to any Series in the related Series Supplement) the Noteholders of any Series or Class which is subordinated to another Series or Class.
“Series Note”: Any one of the Notes with the same Series designation, executed by the applicable Issuers and authenticated by or on behalf of the Indenture Trustee.
“Series Post ARD Event”: An event that occurs with respect to any Series in the event that the Aggregate Note Principal Balance of such Series is not reduced to zero on or prior to the applicable Anticipated Repayment Date for such Series; provided, that a Series Post ARD Event shall cease to be continuing with respect to a Series upon the Aggregate Note Principal Balance of such Series being reduced to zero.
“Series Supplement”: With respect to any Series, a supplement to this Indenture, executed and delivered in connection with the original issuance of the Notes of such Series under Section 2.04 hereof, including all amendments thereof and supplements thereto.
“Series Transaction Documents”: With respect to any Series of Notes, any and all of the related Series Supplement, any supplements or amendments to the Transaction Documents, documents related to each Series Enhancement, if any, and any and all other agreements, documents and instruments executed and delivered by or on behalf or in support of the applicable Issuers with respect to the issuance and sale of such Series of Notes and specified in the applicable Series Supplement, in each case as the same may from time to time be amended, modified, supplemented or renewed.
“Servicing Standard”:  As defined in the Property Management Agreement.
“SIC”: The applicable Standard Industrial Classification code assigned to a particular Business Sector.
“Special Servicer”:  As defined in the Property Management Agreement.
“Special Servicer Additional Servicing Compensation”:  As defined in the Property Management Agreement.
“Special Servicing Fee”:  As defined in the Property Management Agreement.
“Specially Serviced Asset”:  As defined in the Property Management Agreement.

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“Specially Serviced Lease”:  As defined in the Property Management Agreement.
“Specially Serviced Loan”:  As defined in the Property Management Agreement.
“Specialty Retailers”: A Business Sector that encompasses miscellaneous retail sectors, including plant nurseries (SIC 5261), furniture stores (SIC 5712), books, music and computer stores (SIC 5735), sporting goods stores and bicycle shops (SIC 5941), family clothing stores (SIC 5651), wholesale lumber and other construction materials stores (SIC 5030) and services-equipment rental and leasing (SIC 7359).
“Spirit Realty”:  Spirit Realty L.P., a Delaware limited partnership, and its successors and assigns.
“Sub-Management Agreement”:  As defined in the Property Management Agreement.
“Sub-Manager”:  As defined in the Property Management Agreement.
“Successor Person”:  As defined in Section 9.08(a)(i).
“Sweep Period”:  Any period (a) commencing on the Determination Date, if any, on which the Current Cashflow Coverage Ratio is less than or equal to the Sweep Period Threshold but greater than the Early Amortization Threshold and (b) continuing until the Current Cashflow Coverage Ratio is greater than the Sweep Period Threshold for each of three consecutive Determination Dates.
“Sweep Period Threshold”:  An amount equal to 1.25; provided, that the Issuer may in its sole discretion increase such amount, provided that the Rating Condition is satisfied with respect to such increase.
“Taxes”:  As defined in Section 9.03(a).
“Temporary Regulation S Global Note”:  As defined in Section 2.01(b).
“Tenant”:  With respect to each Lease, the tenant under such Lease and any successor or assign thereof.
“Third Party Purchase Option”: As defined in the Property Management Agreement. 
“Total Debt Service”:  With respect to any Determination Date, the sum of (a) the aggregate Scheduled Principal Payment and Note Interest with respect to all Classes of Notes, in each case due on the Payment Date relating to such Determination Date (but excluding any principal payment due on the Anticipated Repayment Date with respect to any Notes), (b)(i) the Property Management Fee, (ii) the Special Servicing Fee, if any, (iii) the Back-Up Fee, and (iv) the Indenture Trustee Fee, each as accrued during the Collection Period ending on such Determination Date and (c) any net payment due from the Issuers to any Hedge Counterparty under any applicable Hedge 

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Agreements for such Payment Date (other than termination payments due as a result of a default or termination event with respect to any Hedge Counterparty).   For the avoidance of doubt, Post ARD Additional Interest and Deferred Post ARD Additional Interest will not be included in the calculation of Total Debt Service.
“Transaction Documents”:  This Indenture, the Custody Agreement, the Property Management Agreement, the Collateral Agency Agreement, the Hedge Agreements, the Property Transfer Agreements, the LLC Agreements and other organizational documents of the Issuers, each Account Control Agreement, the Environmental Indemnity Agreements, the Performance Undertakings and other Series Transaction Documents specified in the related Series Supplement.
“Transfer”:  Any direct or indirect transfer, sale, pledge, hypothecation or other form of assignment of any Ownership Interest in a Note.
“Transfer Date”: As defined in the Property Management Agreement.
“Treasury Regulations”:  Temporary, final or proposed regulations (to the extent that by reason of their proposed effective date such proposed regulations would apply to the Issuers) of the United States Department of the Treasury.
“Trustee Report”:  As defined in Section 6.01(a).
“UCC”:  The Uniform Commercial Code as in effect in any applicable jurisdiction.
“UCC Financing Statement”:  A financing statement executed and in form sufficient for filing pursuant to the UCC, as in effect in the relevant jurisdiction.
 “Unscheduled Principal Payment”:  On any Payment Date, the sum of (a) the Unscheduled Proceeds deposited into the Collection Account during the Collection Period relating to such Payment Date plus (b) any Purchase Option Deficiency from such Collection Period, together with any unpaid Purchase Option Deficiency from any prior Payment Date or related Collection Period.
“Unscheduled Proceeds”:  As defined in the Property Management Agreement.
“U.S. Person”:  As defined in Regulation S.
“Voluntary Prepayment”:  Any (i) voluntary redemption of any Class of Notes, in whole or in part, in accordance with the procedures set forth in Section 7.01, or (ii) payment actually made on the Notes on any Payment Date in connection with the application of any Unscheduled Principal Payment (using amounts described in clause (a) of the definition thereof), other than any portion thereof consisting of Property Insurance Proceeds, Condemnation Proceeds and amounts received in respect of a Specially Serviced Asset or a repurchase due to a Collateral Defect.
“Workout Fee”:  As defined in the Property Management Agreement.
Section 1.02    Rules of Construction.

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For all purposes of this Indenture, except as otherwise expressly provided or unless the context otherwise requires:
(1)    the terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular;
(2)    all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP, and, except as otherwise herein expressly provided, the terms “generally accepted accounting principles” or “GAAP” with respect to any computation required or permitted hereunder means such accounting principles as are generally accepted in the United States;
(3)    the word “including” shall be construed to be followed by the words “without limitation”;
(4)    article and section headings are for the convenience of the reader and shall not be considered in interpreting this Indenture or the intent of the parties hereto;
(5)    the definition of or any reference to any agreement, document or instrument herein shall be construed as referring to such agreement, document or instrument as from time to time amended, restated, supplemented or otherwise modified;
(6)    references to any law, constitution, statute, treaty, regulation, rule or ordinance, including any section or other part thereof, shall refer to such law, constitution, statute, treaty, regulation, rule or ordinance as amended from time to time, and shall include any successor thereto;
(7)    references herein to any Person shall be construed to include such Person’s successors and permitted assigns;
(8)    the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular article, section or other subdivision; and
(9)    the pronouns used herein are used in the masculine and neuter genders but shall be construed as feminine, masculine or neuter, as the context requires.
ARTICLE II     
 
THE NOTES
Section 2.01    Forms; Denominations.

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(b)    Each Series of Notes shall be substantially in the form specified in the applicable Series Supplement and shall bear, upon its face, designation as “[SPIRIT] Net-Lease Mortgage Notes”.  The Notes may be issued with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon consistent herewith, as determined by the officers executing such Notes, as evidenced by their execution thereof.  Any portion of the text of any Note may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Note. The number of Series of Notes which may be created by this Indenture is not limited. The aggregate principal amount of Notes which may be authenticated and delivered under this Indenture is unlimited.  The Notes of each Series of Notes shall be issued in the denominations set forth in the applicable Series Supplement.
(c)    The Notes of each Class in a Series, upon original issuance, shall be issued as Book-Entry Notes in substantially the form of (i) a global note without interest coupons representing the Notes of such Class sold to Qualified Institutional Buyers, in substantially the form of Exhibit A-1 hereto, with such applicable legends as may be set forth in such exhibit (the “Restricted Global Note”), and (ii) a temporary global note without interest coupons representing the Notes of such Class sold in “offshore transactions” (within the meaning of Regulation S) to non-U.S. Persons in reliance on Regulation S, in substantially the form of Exhibit A-2 hereto, with such applicable legends as may be set forth in such exhibit (the “Temporary Regulation S Global Note”).  Each Class of Notes will be issuable only in denominations of not less than $100,000 and in integral multiples of $1,000 in excess thereof or as otherwise specified in the applicable Series Supplement.  Each Note will be registered on issuance in the names of the initial Noteholders thereof.
(d)    After such time as the Restricted Period shall have terminated, and subject to the receipt by the Indenture Trustee of a certificate substantially in the form of Exhibit D-4 hereto (subject to Section 12.03), beneficial interests in a Temporary Regulation S Global Note may be exchanged for an equal aggregate principal amount of beneficial interest in a permanent global note without interest coupons (a “Permanent Regulation S Global Note” and, together with the Temporary Regulation S Global Notes, the “Regulation S Global Notes” and, with the Restricted Global Notes, the “Global Notes”), substantially in the form of Exhibit A-2 hereto, with such applicable legends as may be set forth in such exhibit.  Upon any exchange of any beneficial interest in a Temporary Regulation S Global Note for a beneficial interest in a Permanent Regulation S Global Note, (i) such Temporary Regulation S Global Note shall be endorsed by the Indenture Trustee to reflect the reduction of the principal amount evidenced thereby, whereupon the principal amount of such Temporary Regulation S Global Note shall be reduced for all purposes by the amount so exchanged and endorsed and (ii) such Permanent Regulation S Global Note shall be endorsed by the Indenture Trustee to reflect the increase of the principal amount evidenced thereby, whereupon the principal amount of such Permanent Regulation S Global Note shall be increased for all purposes by the amount so exchanged and endorsed.
(e)    Each Restricted Global Note will be deposited with the Book-Entry Custodian and registered in the name of the Depository or a nominee thereof.  Each Regulation S Global Note will be deposited with the Book-Entry Custodian and registered in the name of the 

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Depository or a nominee thereof for the accounts of Clearstream Banking, société anonyme, or its successors, and/or Euroclear Bank S.A./N.V., as operator of the Euroclear System, or its successors.
Section 2.02    Execution, Authentication, Delivery and Dating.
(a)    The Notes of each Series shall be executed by manual or facsimile signature on behalf of the applicable Issuers by any Authorized Officers of such Issuers.  Notes bearing the manual or facsimile signatures of persons who were at any time the Authorized Officers of such applicable Issuers shall be entitled to all benefits under this Indenture, subject to the following sentence, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Notes or did not hold such offices at the date of such Notes.  No Note shall be entitled to any benefit under this Indenture, or be valid for any purpose, however, unless there appears on such Note a certificate of authentication substantially in the form provided for herein, executed by the Indenture Trustee by manual signature, and such certificate of authentication upon any Note shall be conclusive evidence, and the only evidence, that such Note has been duly authenticated and delivered hereunder.  All Notes shall be dated the respective dates of their authentication.
The Indenture Trustee’s certificate of authentication shall be in substantially the following form:

This is one of the Notes of a Series of Notes issued under the within mentioned Indenture.

[Indenture Trustee],
 not in its individual capacity but solely as Indenture
Trustee

___________________________________
By:        
Authorized Signatory

(b)    At the election of the Indenture Trustee, the Indenture Trustee may appoint one or more agents (each, an “Authenticating Agent”) with power to act on its behalf and subject to its direction in the authentication of Notes in connection with transfers and exchanges under Sections 2.05 and 2.07, as fully to all intents and purposes as though each such Authenticating Agent had been expressly authorized under those Sections to authenticate the Notes.  For all purposes of this Indenture, the authentication of Notes by an Authenticating Agent shall be deemed to be the authentication of such Notes “by the Indenture Trustee.”  The Indenture Trustee shall be the initial Authenticating Agent.
Any corporation, bank, trust company or association into which any Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation, bank, trust company or association resulting from any merger, consolidation or conversion to which any Authenticating Agent shall be a party, or any corporation, bank, trust company or association succeeding to the corporate trust business of any Authenticating Agent, shall be the successor of 

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such Authenticating Agent hereunder, without the execution or filing of any further act on the part of the parties hereto or such Authenticating Agent or such successor corporation, bank, trust company or association.
Any Authenticating Agent may at any time resign by giving written notice of resignation to the Indenture Trustee and the Issuers.  The Indenture Trustee may at any time terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating Agent and the Issuers.  Upon receiving such notice of resignation or upon such a termination, the Indenture Trustee may promptly appoint a successor Authenticating Agent, and give written notice of such appointment to the Issuers and to the Noteholders.  Upon the resignation or termination of the Authenticating Agent and prior to the appointment of a successor, the Indenture Trustee shall act as Authenticating Agent.
Each Authenticating Agent shall be entitled to all limitations on liability, rights of reimbursement and indemnities that the Indenture Trustee is entitled to hereunder as if it were the Indenture Trustee.
(c)    At any time and from time to time, the Indenture Trustee shall upon Issuer Request authenticate and deliver Notes of each Series for original issue in an aggregate amount equal to the initial Class Principal Balance for each related Class as set forth in the applicable Series Supplement.
Section 2.03    Certification of Receipt of the Collateral.
(a)    The Indenture Trustee, by its execution and delivery of this Indenture, acknowledges receipt by it of all assets Granted to it and included in the Collateral Pool, subject to review thereof by the Custodian, in good faith and without notice of any adverse claim, and declares that it (or the Custodian) holds and will hold such assets on behalf of the present and future Noteholders of all Series.
(b)    The Indenture Trustee shall not be under any duty or obligation to inspect, review or examine any of the documents, instruments, certificates or other papers relating to the Mortgage Loans, Mortgaged Properties and Leases delivered to it to determine that the same are valid, legal, effective, genuine, enforceable, in recordable form, sufficient or appropriate for the represented purpose or that they are other than what they purport to be on their face.
(c)    The parties hereto acknowledge and each holder by its acceptance of its Note or interest therein thereby acknowledges that the Custodian shall perform the applicable review of the assets and provide the respective certifications as provided in the Custody Agreement.
Section 2.04    The Notes Generally; New Issuances.
(a)    Each Note of a particular Class shall rank pari passu with each other Note of such Class and be equally and ratably secured by the Collateral included in the Collateral Pool with each other Note of such Class.  All Notes of a particular Class shall be substantially identical except as to denominations and as expressly permitted in this Indenture.

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(b)    This Indenture, together with the related Mortgages, shall evidence a continuing lien on and security interest in the Collateral Granted hereunder or subsequently included in the Collateral Pool to secure the full payment of the principal, interest and other amounts on the Notes of all Series, which shall in all respects be equally and ratably secured hereby for payment as provided herein, and without preference, priority or distinction on account of the actual time or times of the authentication and delivery of the Notes of any Class with respect to any Series.
(c)    Pursuant to one or more Series Supplements, the applicable Issuers may, from time to time, direct the Indenture Trustee, on behalf of such Issuers, to issue one or more new Series of Notes (a “New Issuance”). The Notes of all outstanding Series shall, except as specified in the applicable Series Supplement, be equally and ratably entitled as provided herein to the benefits of this Indenture without preference, priority or distinction on account of the actual time of the authentication and delivery or Final Payment Date of any such Notes, all in accordance with the terms and provisions of this Indenture and each Series Supplement.
On or before the Series Closing Date relating to any New Issuance, the applicable Issuers shall execute and deliver a Series Supplement which shall specify the Principal Terms with respect to such Series.  The Indenture Trustee shall execute the Series Supplement, the applicable Issuers shall execute the Notes of such Series and the Notes of such Series shall be delivered to the Indenture Trustee for authentication and delivery.  
(d)    The issuance of each Series of Notes on the Initial Closing Date (which Series shall be issued pursuant to one or more Series Supplements dated as of the Initial Closing Date) shall be subject to the satisfaction of the following conditions: 
(i)    receipt by the Indenture Trustee of an Issuer Order authorizing the execution and authentication of such Notes;
(ii)    receipt by the Indenture Trustee of the Transaction Documents and the Series Transaction Documents for such Series duly executed and delivered by the parties thereto and being in full force and effect, free of any breach or waiver;
(iii)    all Lease Files and Loan Files with respect to the Collateral Pool, as set forth herein, shall have been delivered to the Indenture Trustee or the Custodian together with all UCC Financing Statements, documents of similar import in other jurisdictions, and other documents reasonably necessary to perfect the Indenture Trustee’s security interest in such Collateral for the benefit of the Noteholders of all Series; 
(iv)    receipt by the Indenture Trustee of Opinions of Counsel, (w) relating to the perfection of the Indenture Trustee’s security interest, (x) relating to the consolidation of the assets and liabilities of the applicable Issuer, on the one hand, and certain Persons, on the other hand, in a bankruptcy proceeding involving any such Person, (y) relating to the “true sale” or “true contribution” of the Mortgage Loans and the Mortgaged Properties included in the Collateral Pool to the applicable Issuer as of the Initial Closing Date and (z) relating to the characterization of the particular Class of Notes indicated in the related Series Supplement as debt for U.S. federal income tax purposes; and

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(v)    receipt by the Indenture Trustee of copies of letters signed by each applicable Rating Agency confirming that each Class of Notes has been given the ratings as indicated in the related Series Supplement.
(e)    The issuance of the Notes of any Series other than pursuant to Section 2.04(d) above shall be subject to the satisfaction of the following conditions:
(i)    receipt by the Indenture Trustee of an Issuer Order authorizing the execution and authentication of such Notes;
(ii)    if required by the related Series Supplement, delivery to the Indenture Trustee of the form of any Series Enhancement and all accompanying agreements with respect thereto; 
(iii)    satisfaction of the Affirmative Rating Condition; 
(iv)    receipt by the Indenture Trustee of an Opinion of Counsel to the effect that, for U.S. federal income tax purposes, such New Issuance (x) will not adversely affect the tax characterization of the Class of Notes of any outstanding Series that was characterized as debt for U.S. federal income tax purposes as of the related Series Closing Date, (y) will not cause any of the Issuers of any outstanding Series to be treated as an association, a publicly-traded partnership or a taxable mortgage pool taxable as a corporation and (z) will not cause any taxable gain or loss to be recognized by any Noteholder of an outstanding Series;
(v)    receipt by the Indenture Trustee of Opinions of Counsel, (w) relating to the perfection of the Indenture Trustee’s security interest in the Collateral added to the Collateral Pool in connection with the related Series Closing Date, (x) relating to the consolidation of the assets and liabilities of the applicable Issuer (excluding any Issuer with respect to which a similar Opinion of Counsel was previously delivered to the Indenture Trustee), on the one hand, and certain Persons, on the other hand, in a bankruptcy proceeding involving any such Person, (y) relating to the “true sale” or “true contribution” of the Collateral added to the Collateral Pool in connection with the related Series Closing Date and (z) relating to the characterization of any Class of Notes indicated in the related Series Supplement that such Notes will constitute debt for U.S. federal income tax purposes; 
(vi)    any applicable Issuer, if it has not previously done so in connection with the issuance of any prior Series, has delivered an Opinion of Counsel or Officer’s Certificate of such Issuer to the Indenture Trustee, dated the applicable Series Closing Date, to the effect that such Issuer is a solvent, special purpose, bankruptcy-remote entity; and
(vii)    the Issuers have delivered to the Indenture Trustee an Officer’s Certificate, dated the applicable Series Closing Date (upon which the Indenture Trustee may rely), to the effect that (1) based on the facts known to the Person executing such Officer’s Certificate, the Issuers reasonably believe that (a) no uncured Event of Default is continuing at the time of such New Issuance and that such New Issuance shall not result in the occurrence 

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of an Event of Default or (b) the proceeds of such New Issuance will be used to redeem the Outstanding Notes in full and pay all accrued and unpaid Note Interest, Post-ARD Additional Interest and Deferred Post-ARD Additional Interest with respect to such Outstanding Notes, (2) (a) no uncured Series Post ARD Event is continuing at the time of such New Issuance or (b) the proceeds of such New Issuance will be used to redeem each Series with respect to which a Series Post ARD Event is continuing in full and pay all accrued and unpaid Note Interest, Post-ARD Additional Interest and Deferred Post-ARD Additional Interest with respect to each such Series, (3)(a) no uncured Early Amortization Event is continuing at the time of such New Issuance and such New Issuance will not result in the occurrence of an Early Amortization Event or (b) the proceeds of such New Issuance will be used to cure each such Early Amortization Event and pay all accrued and unpaid Note Interest, Post-ARD Additional Interest and Deferred Post-ARD Additional Interest and (4) all conditions precedent in this Indenture to such New Issuance have been satisfied.
Section 2.05    Registration of Transfer and Exchange of Notes.
(a)    At all times during the term of this Indenture, there shall be maintained at the office of the Note Registrar a register of the Notes and of their transfer and exchange (a “Note Register”) in which, subject to such reasonable regulations as the Note Registrar may prescribe, the Note Registrar shall provide for the registration of Notes and of transfers and exchanges of Notes as herein provided.  The offices of the Note Registrar shall be initially located (as of the Initial Closing Date) at Citibank, N.A., 480 Washington Boulevard, Jersey City, New Jersey 07310, Attention: Agency and Trust- Spirit Master Funding.  The Indenture Trustee is hereby initially appointed (and hereby agrees to act in accordance with the terms hereof) as “Note Registrar” for the purpose of registering Notes and transfers and exchanges of Notes as herein provided.  The Indenture Trustee may appoint, by a written instrument delivered to the Issuers, any other bank or trust company to act as Note Registrar under such conditions as the predecessor Indenture Trustee may prescribe; provided, that the Indenture Trustee shall not be relieved of any of its duties or responsibilities hereunder by reason of such appointment.  If the Indenture Trustee resigns or is removed in accordance with the terms hereof, the successor trustee shall immediately succeed to its predecessor's duties as Note Registrar.  The Issuers, the Property Manager, the Special Servicer, the Back-Up Manager and the Indenture Trustee shall have the right to inspect the Note Register or to obtain a copy thereof at all reasonable times, and to rely conclusively upon a certificate of the Note Registrar as to the information set forth in the Note Register.  Upon written request of any Noteholder made for purposes of communicating with other Noteholders with respect to their rights under this Indenture, the Note Registrar shall promptly furnish such Noteholder with a list of the other Noteholders of record identified in the Note Register at the time of the request.
(b)    No Transfer of any Note or interest therein shall be made unless that Transfer is made pursuant to an effective registration statement under the 1933 Act, and effective registration or qualification under applicable state securities laws, or is made in a transaction that does not require such registration or qualification.  No purported Transfer of any interest in any Note or any portion thereof which is not made in accordance with this Section 2.05 shall be given effect by or be binding upon the Indenture Trustee and any such purported Transfer shall be null and void ab initio and vest in the transferee no rights against the Collateral Pool or the Indenture Trustee.  

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Notwithstanding any other provision of this Section 2.05 and except as otherwise provided in Section 2.06 the typewritten Note or Notes representing Book-Entry Notes for any Series of Notes may be transferred, in whole but not in part, only to another nominee of the Depository for such Series of Notes, or to a successor Depository for such Series of Notes selected or approved by the Issuers or to a nominee of such successor Depository, only if in accordance with this Section 2.5 and Section 2.06.
(c)    None of the Issuers or any other person shall be obligated to register or qualify any Notes under the 1933 Act or any other securities law or to take any action not otherwise required under this Indenture to permit the transfer of any Note or interest therein without registration or qualification.
By its acceptance of a Note or a beneficial interest therein, each Holder and Note Owner, respectively, will be deemed to have represented and agreed that the Transfer thereof is restricted and agrees that it shall Transfer such Note or Ownership Interest only in accordance with the terms of this Indenture and such Note (including the legends applicable thereto) and in compliance with applicable law.
(d)    A Noteholder or Note Owner may Transfer a Book-Entry Note or Ownership Interest therein only in accordance with the following provisions:
(viii)    No Transfer of any Book-Entry Note or an Ownership Interest therein shall be made unless such Transfer is made to a Qualified Institutional Buyer in reliance on Rule 144A or in an “offshore transaction” (within the meaning of Regulation S) to a non-U.S. Person in reliance on Regulation S, and pursuant to exemption, registration or qualification under applicable state securities laws.  The Indenture Trustee shall be entitled to rely upon the representations made by each transferee pursuant to this Section 2.05, and shall have no duty to undertake any investigation or verify that any Transfer satisfies the requirements of this paragraph.
(ix)    Restricted Global Note to Regulation S Global Note during Restricted Period.  If a Holder of or a Note Owner with respect to a Restricted Global Note wishes at any time during the Restricted Period to Transfer such Restricted Global Note or an Ownership Interest therein to a Person who wishes to take delivery thereof in the form of a Regulation S Global Note or an Ownership Interest therein, such Holder or Note Owner may, subject to the provisions of this Section 2.05, Transfer such Restricted Global Note for a Regulation S Global Note of the same Series and Class or an Ownership Interest therein with an equivalent principal amount.  Upon receipt by the Indenture Trustee of a certificate substantially in the form of Exhibit D-2 (subject to Section 12.03) given by the transferee of such Note or Ownership Interest (stating that such transferee is a non-U.S. Person and the Transfer of such interest has been made in compliance with the transfer restrictions applicable to such Notes and in accordance with Regulation S), the Indenture Trustee shall cancel the Restricted Global Note so transferred (or reduce the principal amount of the Notes evidenced thereby), the applicable Issuers shall, concurrently with such cancellation (or reduction), issue and the Indenture Trustee shall cause to be authenticated to the transferee a Regulation S Global Note of the same Series and Class (or increase the principal amount 

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of the Notes evidenced by such Regulation S Global Note) in an aggregate principal amount equal to the aggregate principal amount of the Restricted Global Note so transferred.
(x)    Restricted Global Note to Regulation S Global Note after the Expiration of Restricted Period.  If a Holder of or a Note Owner with respect to a Restricted Global Note wishes at any time after the expiration of the Restricted Period to Transfer such Restricted Global Note or an Ownership Interest therein to a Person who wishes to take delivery thereof in the form of a Regulation S Global Note or an Ownership Interest therein, such Noteholder or Note Owner may, subject to provisions of this Section 2.05, Transfer such Restricted Global Note for a Regulation S Global Note of the same Series and Class or an Ownership Interest therein with an equivalent principal amount.  Upon receipt by the Indenture Trustee of a certificate substantially in the form of Exhibit D-3 (subject to Section 12.03) given by the transferee stating that the Transfer of such interest has been made in compliance with the transfer restrictions applicable to such Notes and pursuant to and in accordance with Regulation S, the Indenture Trustee shall cancel the Restricted Global Note so transferred (or reduce the principal amount of the Notes evidenced thereby) and the applicable Issuers shall, concurrently with such cancellation (or reduction), issue and the Indenture Trustee shall cause to be authenticated to the transferee a Regulation S Global Note of the same Series and Class (or increase the principal amount of the Notes evidenced by such Regulation S Global Note) in an aggregate principal amount equal to the aggregate principal amount of the Restricted Global Note so transferred.
(xi)    Regulation S Global Note to Restricted Global Note.  If a Holder of or a Note Owner with respect to a Regulation S Global Note wishes at any time to transfer such Regulation S Global Note or an Ownership Interest therein to a Qualified Institutional Buyer who wishes to take delivery thereof in the form of a Restricted Global Note or an Ownership Interest therein, such Noteholder or Note Owner may, subject to the provisions of this Section 2.05, transfer such Regulation S Global Note for a Restricted Global Note of the same Series and Class or an Ownership Interest therein in an equivalent principal amount.  Upon receipt by the Indenture Trustee of a certificate substantially in the form of Exhibit D-1 (subject to Section 12.03) given by the transferee and stating that such transferee is a Qualified Institutional Buyer and is obtaining such Restricted Global Note or Ownership Interest therein in a transaction meeting the requirements of Rule 144A, the Indenture Trustee shall cancel the Regulation S Global Note so transferred (or reduce the principal amount of the Notes evidenced thereby) and the applicable Issuers shall, concurrently with such cancellation (or reduction), issue and the Indenture Trustee shall cause to be authenticated to the transferee a Restricted Global Note of the same Series and Class (or increase the principal amount of the Notes evidenced by such Restricted Global Note) in an aggregate principal amount equal to the aggregate principal amount of the Regulation S Global Note so transferred.
(xii)    Transfer of Ownership Interests in Book-Entry Notes.  Ownership Interests in Book-Entry Notes shall be transferred in accordance with the rules and procedures of the Depository and the Depository Participants, including, with respect to 

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Regulation S Global Notes, Clearstream Banking, société anonyme, or its successors, and Euroclear Bank S.A./N.V., as operator of the Euroclear System, or its successors.
(e)    If any Transfer of a Note or an Ownership Interest therein is to be held by the related transferee in the form of a Definitive Note, then the Note Registrar shall refuse to register such Transfer unless it receives (and, upon receipt, may conclusively rely upon) (A) an executed transferor certificate from the transferor substantially in the form attached as Exhibit C-1 (subject to Section 12.03), and (B) an executed transferee certificate from the prospective transferee substantially in the form attached as Exhibit C-2 (subject to Section 12.03).  If any such transfer of a Note or Ownership Interest held by the related transferor and also to be held by the related transferee in the form of a Book-Entry Note is to be made without registration under the 1933 Act, the transferor will be deemed to have made as of the transfer date each of the representations and warranties set forth on Exhibit C-1 in respect of such Note and the transferee will be deemed to have made as of the transfer date each of the representations and warranties set forth on Exhibit C-2 in respect of such Note, in each case as if such Note were evidenced by a Definitive Note.
(f)    If a Person is acquiring any Note as a fiduciary or agent for one or more accounts, such Person shall be required to deliver to the Note Registrar a certification to the effect that, and such other evidence as may be reasonably required by the Note Registrar to confirm that, it has (i) sole investment discretion with respect to each such account and (ii) full power to make the foregoing acknowledgments, representations, warranties, certifications and agreements with respect to each such account as set forth in subsections (b) and (c) of this Section 2.05.
(g)    Subject to the preceding provisions of this Section 2.05, upon surrender for registration of transfer of any Note at the offices of the Note Registrar maintained for such purpose, the applicable Issuers shall execute, and the Indenture Trustee shall cause to be authenticated and delivered, in the name of the designated transferee or transferees, one or more new Notes of the same Series and Class of a like Percentage Interest.
(h)    At the option of any Holder, its Notes may be exchanged for other Notes of authorized denominations of the same Series and Class of a like Percentage Interest upon surrender of the Notes to be exchanged at the offices of the Note Registrar maintained for such purpose. Whenever any Notes are so surrendered for exchange, the applicable Issuers shall execute, and the Indenture Trustee shall cause to be authenticated and delivered the Notes which the Noteholder making the exchange is entitled to receive.
(i)    Every Note presented or surrendered for registration of transfer or exchange shall be duly endorsed by, or be accompanied by a written instrument of transfer in the form satisfactory to the Note Registrar duly executed by, the Holder thereof or such Holder’s attorney duly authorized in writing.  The Note Registrar shall be permitted to request such evidence reasonably satisfactory to it documenting the identity and/or signatures of the transferor and transferee, with such signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which requirements include membership or participation in Securities Transfer Agents Medallion Program (STAMP) or such other “signature guarantee program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the Exchange Act.

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(j)    All Notes issued upon any registration of transfer or exchange of the Notes shall be the valid obligations of the applicable Issuers, evidencing the same debt, and entitled to the same benefits under this Indenture, as the related Notes surrendered upon such registration of transfer or exchange.
(k)    Notwithstanding the foregoing, the Indenture Trustee or the Note Registrar, as the case may be, shall not be required to register the transfer or exchange of any Note of any Series of Notes for a period of 15 days preceding the due date for payment in full of the Class of Notes to which such Note is a part.
(l)    No service charge shall be imposed for any transfer or exchange of Notes, but the Indenture Trustee or the Note Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Notes.
(m)    All Notes surrendered for transfer and exchange shall be physically canceled by the Note Registrar, and the Note Registrar shall dispose of such canceled Notes in accordance with its customary procedures.
(n)    The Note Registrar or the Indenture Trustee shall provide to the Issuers, Property Manager and Special Servicer upon reasonable written request and at the expense of the requesting party a current copy of the Note Register.
(o)    Each purchaser of a Note that represents a beneficial interest in a Global Note (and each Note owner) and each purchaser of book-entry Notes or interests therein will be deemed to have represented, warranted and agreed, and each purchaser of definitive, physical Notes, if any, or will represent, warrant and agree, as follows (the “Prospective Purchase Representations”):
(1)    It understands that (a) the Notes have not been and will not be registered or qualified under the Securities Act or any state securities law, (b) neither the Issuer nor the Indenture Trustee is required to so register or qualify the Notes, (c) the Notes or interests therein may be resold only if registered and qualified pursuant to the provisions of the Securities Act or any state securities law, or if an exemption from such registration and qualification is available, (d) the Indenture contains restrictions regarding the transfer of the Notes or interests therein and (e) the Notes will bear a legend to the foregoing effect.
(2)    It is acquiring the Notes or interests therein for (subject to Clause (11) below) its own account for investment only and not with a view to or for sale in connection with any distribution thereof in any manner that would violate the Securities Act or any applicable state securities laws.
(3)    It is: (a) not a “U.S. Person” (as defined in Regulation S), is not acquiring the Notes or interests therein for the account or benefit of any U.S. Person (as defined in Regulation S), its outside the United States and is acquiring the Notes or interests therein in an offshore transaction pursuant to an exemption from registration ion accordance with Rule 903 or Rule 904 of Regulation S; or (b) a Qualified Institutional Buyer, as that term is defined 

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in Rule 144A under the Securities Act, is aware that the sale to it of the Notes or interests therein is being made in reliance on Rule 144A under the Securities Act, is acquiring the Notes or interests therein for its own account or for the account of a Qualified Institutional Buyer, and understands that the Notes or interests therein may be resold, pledged or transferred only (i) to a person reasonably believed to be a Qualified Institutional Buyer that purchases for its own account or for the account of a Qualified Institutional Buyer to whom notice is given that the resale, pledge or transfer is being made in reliance on Rule 144A under the Securities Act.  It is (x) a substantial, sophisticated institutional investor having such knowledge and experience in financial and business matters, and, in particular, in such matters related to securities similar to the Notes, such that it is capable of evaluating the merits and risks of investment in the Notes, and (y) able to bear the economic risks of such an investment.
(4)    It has reviewed and understands the restrictions on transfer of the Notes or interests therein and acknowledges that such transfer restrictions may adversely affect the liquidity of the Notes.
(5)    It understands that, by virtue of its acceptance of a Note or an interest therein, it assents to, and agrees to be bound by, the terms, provisions and conditions of the Indenture, including those relating to the transfer restrictions.
(6)    It understands that the Notes are being offered only in a transaction that does not require registration under the Securities Act and, if such purchaser decides to resell, pledge or otherwise transfer such Notes, then it agrees that it will resell, pledge or transfer such Notes only (1) so long as such Notes are eligible for resale pursuant to Rule 144A, to a person who the seller reasonably believes is a QIB acquiring the Notes for its own account or as a fiduciary or agent for others (which others must also be QIBs) to whom notice is given that the resale or other transfer is being made in reliance on Rule 144A or (2) to a purchaser who is not a “U.S. person” (as defined in Regulation S) (and is not purchasing for the account or benefit of a “U.S. person” as defined in Regulation S), is outside the United States, and is acquiring the Notes pursuant to an exemption from registration under the Securities Act in accordance with Rule 903 or Rule 904 of Regulation S, and, in each case, in accordance with any applicable United States state securities or “Blue Sky” laws or any securities laws of any other jurisdiction.
(7)    It understands that the information contained in the applicable private placement memorandum and all such additional information, as well as all information to be received by it as a Noteholder, is confidential and agrees to keep such information confidential (a) by not disclosing any such information other than to a person who needs to know such information and who has agreed to keep such information confidential and (b) by not using any such information other than for the purpose of evaluating an investment in the Notes; provided, however, that any such information may be disclosed as required by applicable law if the Issuer is given written notice of such requirement sufficient to enable the Issuer to seek a protective order or other appropriate remedy in advance of disclosure. 

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(8)    It has been furnished with, and has had an opportunity to review (a) a copy of the applicable private placement memorandum, (b) a copy of the Indenture and the Notes and (c) such other information concerning the Notes and payments thereon, the Collateral Pool and the Issuer as has been requested by it from the Issuer and is relevant to its decision to purchase the Notes or interests therein.  It has had any questions arising from such review answered by the Issuer to its satisfaction.
(9)    It has not and will not nor has it authorized or will it authorize any person to (a) offer, pledge, sell, dispose of or otherwise transfer any Note, any interest in any Note or any other similar security from any person in any manner, (b) otherwise approach or negotiate with respect to any Note, any interest in any Note or any other similar security with any person in any manner, (c) make any general solicitation by means of general advertising or in any other manner or (d) take any other action, that (as to any of (a) through (d) above) would constitute a distribution of any Note or interest therein under the Securities Act, that would render the disposition of any Note or interest therein a violation of Section 5 of the Securities Act or any state securities law, or that would require registration or qualification pursuant thereto.  It will not sell or otherwise transfer any of the Notes or interests therein, except to a person reasonably believed to be: (x) a Non-U.S. Person that is not acquiring the Notes or interests therein for the account or benefit of any U.S. Person (as defined in Regulation S) and is acquiring the Notes or interests therein in an offshore transaction; or (y) a Qualified Institutional Buyer that purchases for its own account or for the account of a Qualified Institutional Buyer to whom notice is given that the resale, pledge or transfer is being made in reliance on Rule 144A, or otherwise in accordance with the terms and provisions of the Indenture.
(10)    It is duly authorized to purchase the Notes or interest therein acquired thereby, and its purchase of investments having the characteristics of the Notes acquired thereby is authorized under, and not directly or indirectly in contravention of, any law, charter, trust instrument or other operative document, investment guidelines or list of permissible or impermissible investments applicable to the investor.
(11)    If it is acquiring any Notes or interests therein as a fiduciary or agent for one or more accounts, it has sole investment discretion with respect to each such account and it has full power to make the foregoing acknowledgments, representations, warranties and agreements with respect to each such account.
(12)    It, and each person for which it is acting, understands that any sale or transfer to a person that does not comply with the requirements set forth herein will be null and void ab initio.
(13)    Such purchaser acknowledges that each note will bear the following legends to the extent set forth on the applicable exhibit to this Indenture: and
(14)    either (a) it is not acquiring the Note (or any interest therein) with the assets of (1) an “employee benefit plan”, as defined in Section 3(3) of ERISA, that is subject to Title I of ERISA, (2) a “plan,” as defined in Section 4975(e)(1) of the Internal Revenue 

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Code that is subject to Section 4975 of the Internal Revenue Code, (3) an entity whose underlying assets include “plan assets” by reason of such employee benefit plan’s or plan’s investment in the entity (within the meaning of Department of Labor Regulation 29 C.F.R. 2510.3-101, as modified by section 3(42) of ERISA), or (4) any governmental, church, non-U.S. or other plan that is subject to any non-U.S., federal, state or local law that is substantially similar to Section 406 of ERISA or Section 4975 of the Internal Revenue Code (“Similar Law”); or (b) the acquisition, continued holding and disposition of the Notes (or any interest therein) will not give rise to a non-exempt prohibited transaction under Section 406 of ERISA, Section 4975 of the Internal Revenue Code or result in a non-exempt violation of Similar Law. 
(p)    If a Person is acquiring any Note or interest therein as a fiduciary or agent for one or more accounts, such Person shall be required to deliver to the Note Registrar a certification (which in the case of the Book-Entry Notes, the prospective transferee will be deemed to have represented such certification) to the effect that it has (i) sole investment discretion with respect to each such account and (ii) full power to make the foregoing acknowledgments, representations, warranties, certifications and agreements with respect to each such account as set forth in this Section 2.05.
Section 2.06    Book-Entry Notes.
(a)    The Book-Entry Notes of each Series shall be delivered as one or more Notes held by the Book-Entry Custodian or, if appointed to hold such Notes as provided below, the Depository and registered in the name of the Depository or its nominee and, except as provided in Section 2.06(c) below, transfer of such Notes may not be registered by the Note Registrar unless such transfer is to a successor Depository that agrees to hold such Notes for the respective Note Owners with Ownership Interests therein.  Except as provided in Section 2.06(c) below, such Note Owners shall hold and transfer their respective Ownership Interests in and to such Notes through the book-entry facilities of the Depository and, except as provided in Section 2.06(c) below, shall not be entitled to definitive, fully registered Notes (“Definitive Notes”) in respect of such Ownership Interests.  All transfers by Note Owners of their respective Ownership Interests in the Book-Entry Notes to be held by the related transferees as Book-Entry Notes shall be made in accordance with the procedures established by the Depository Participant or brokerage firm representing each such Note Owner.  Each Depository Participant shall only transfer the Ownership Interests in the Book-Entry Notes of Note Owners it represents or of brokerage firms for which it acts as agent in accordance with the Depository’s normal procedures.  The Indenture Trustee is hereby initially appointed as the Book-Entry Custodian and hereby agrees to act as such in accordance herewith and in accordance with the agreement that it has with the Depository authorizing it to act as such.  Neither the Indenture Trustee nor the Note Registrar shall have any responsibility to monitor or restrict the transfer of any Book-Entry Note transferable through the book-entry facilities of the Depository.  The Book-Entry Custodian may, and, if it is no longer qualified to act as such, the Book-Entry Custodian shall, appoint, by a written instrument delivered to the Issuers, the Property Manager and Special Servicer, and, if the Indenture Trustee is not the Book-Entry Custodian, the Indenture Trustee, any other transfer agent (including the Depository or any successor Depository) to act as Book-Entry Custodian under such conditions as the predecessor Book-Entry Custodian 

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and the Depository or any successor Depository may prescribe; provided, that the predecessor Book-Entry Custodian shall not be relieved of any of its duties or responsibilities by reason of any such appointment other than the Depository.  If the Indenture Trustee resigns or is removed in accordance with the terms hereof, the successor trustee or, if it so elects, the Depository shall immediately succeed to its predecessor’s duties as Book-Entry Custodian.  The Issuers shall have the right to inspect, and to obtain copies of, any Notes held as Book-Entry Notes by the Book-Entry Custodian.
(b)    The Issuers, the Indenture Trustee, the Property Manager, the Special Servicer, the Back-Up Manager and the Note Registrar may for all purposes, including the making of payments due on the Book-Entry Notes, deal with the Depository as the Noteholder and the authorized representative of the Note Owners with respect to such Notes and as sole Noteholder of such Notes, and shall have no obligations to the Note Owners.  The rights of Note Owners of each such Series of Notes shall be exercised only through the Depository and the applicable Depository Participants and the rights of Note Owners with respect to the Book-Entry Notes shall be limited to those established by law and agreements between such Note Owners and the Depository Participants and brokerage firms representing such Note Owners, and all references in this Indenture to actions by the Noteholders shall refer to actions taken by the Depositor upon instructions from the Depository Participants, and all references in this Indenture to distributions, notices, reports and statements to the Noteholders shall refer to distributions, notices, reports and statements to the Depositor, as registered holder of the Notes of such Series of Notes for distribution to the Note Owners in accordance with the procedures of the Depository.  Multiple requests and directions from, and votes of, the Depository as holder of the Book-Entry Notes with respect to any particular matter shall not be deemed inconsistent if they are made with respect to different Note Owners.  The Indenture Trustee may establish a reasonable record date in connection with solicitations of consents from or voting by Noteholders and shall give notice to the Depository of such record date.  Whenever this Indenture requires or permits actions to be taken based upon instructions or directions of Noteholders evidencing a specified percentage of the principal amount of Notes, the applicable Depository shall be deemed to represent such percentage only to the extent that it has received instructions to such effect from Note Owners and/or their related Depository Participants owning or representing, respectively, such required percentage of the beneficial interest in the Notes and has delivered such instructions to the Indenture Trustee.  Whenever notice or other communication to the Noteholders is required under this Indenture, unless and until Definitive Notes shall have been issued to such Note Owners, the Indenture Trustee and the Issuers shall give all such notices and communications specified herein to be given to Noteholders to the applicable Depository for distribution to the Note Owners.
(c)    If (i) the Issuers advise the Indenture Trustee and the Note Registrar in writing that the Depository is no longer willing or able to properly discharge its responsibilities with respect to the Book-Entry Notes (or any portion thereof), and (ii) the Issuers are unable to locate a qualified successor, the Note Registrar shall notify all affected Note Owners, through the Depository, of the occurrence of any such event and of the availability of Definitive Notes to such Note Owners requesting the same.  Upon surrender to the Note Registrar of the Book-Entry Notes (or any portion thereof) by the Book-Entry Custodian or the Depository, as applicable, and the delivery of registration instructions from the Depository for registration of transfer, the applicable Issuers shall execute, and the Indenture Trustee shall cause to be authenticated and delivered, the Definitive 

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Notes in respect of such Notes to the Note Owners identified in such instructions.  None of the applicable Issuers, the Indenture Trustee, the Collateral Agent, the Property Manager, the Special Servicer, the Back-Up Manager or the Note Registrar shall be liable for any delay in delivery of such instructions and may conclusively rely on, and shall be protected in relying on, such instructions.
(d)    Upon the issuance of Definitive Notes, for purposes of evidencing ownership of any Notes formerly held as Book-Entry Notes, the registered holders of such Definitive Notes shall be recognized as Noteholders hereunder and, accordingly, shall be entitled directly to receive payments on, to exercise voting and consent rights with respect to, and to transfer and exchange such Definitive Notes.  Upon the issuance of Definitive Notes, all references herein to obligations imposed upon or to be performed by the applicable Depository with respect to such Notes shall be deemed to be imposed upon and performed by the Indenture Trustee, to the extent applicable with respect to such Definitive Notes, and the Indenture Trustee shall recognize the Noteholders of the Definitive Notes of such Series of Notes as Noteholders of such Series of Notes hereunder.
(e)    Each of the Issuers shall provide an adequate inventory of Definitive Notes of each Class of each Series to the Indenture Trustee.
Section 2.07    Mutilated, Destroyed, Lost or Stolen Notes.
If any mutilated Note is surrendered to the Note Registrar, the applicable Issuers shall execute and the Indenture Trustee shall cause to be authenticated and delivered, in exchange therefor, a new Note of the same Series, Class and principal amount and bearing a number not contemporaneously outstanding.
If there shall be delivered to the applicable Issuers, the Indenture Trustee and the Note Registrar (i) evidence to their satisfaction of the destruction (including mutilation tantamount to destruction), loss or theft of any Note and the ownership thereof, and (ii) indemnity as may be reasonably required by them to hold each of them and any of their agents harmless, then, in the absence of notice to the applicable Issuers or the Note Registrar that such Note has been acquired by a bona fide purchaser, the applicable Issuers shall execute and the Indenture Trustee shall cause to be authenticated and delivered, in lieu of any such destroyed, lost or stolen Note, a new Note of the same Series, Class, tenor and denomination registered in the same manner, dated the date of its authentication and bearing a number not contemporaneously outstanding.
Upon the issuance of any new Note under this Section 2.07, the applicable Issuers, the Indenture Trustee and the Note Registrar may require the payment by the Noteholder of an amount sufficient to pay or discharge any tax or other governmental charge that may be imposed in relation thereto and any other reasonable expenses (including the reasonable fees and expenses of the Authenticating Agent and the Indenture Trustee) in connection therewith.
Every new Note issued pursuant to this Section 2.07 in lieu of any destroyed, mutilated, lost or stolen Note shall constitute an original additional contractual obligation of the Issuers, whether or not the destroyed, mutilated, lost or stolen Note shall be at any time enforceable 

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by any Person, and such new Note shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Notes of its Class and Series duly issued hereunder.
The provisions of this Section 2.07 are exclusive and shall preclude (to the extent permitted by applicable law) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes.
Section 2.08    Noteholder Lists.
The Note Registrar shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of the Noteholders of each Series, which list, upon request, will be made available to the Indenture Trustee insofar as the Indenture Trustee is no longer the Note Registrar.  Upon written request of any Noteholder made for purposes of communicating with other Noteholders with respect to their rights under this Indenture, the Note Registrar shall promptly furnish such Noteholder at such Noteholder’s expense with a list of the Noteholders of record identified in the Note Register at the time of the request.  Every Noteholder, by receiving such access, or by receiving a Note or an interest therein, agrees with the Note Registrar that the Note Registrar will not be held accountable in any way by reason of the disclosure of any information as to the names and addresses of any Noteholder regardless of the source from which such information was derived.
Section 2.09    Persons Deemed Owners.
The Issuers, the Indenture Trustee, the Note Registrar and any of their agents, may treat the Person in whose name a Note is registered as the owner of such Note as of the related Record Date for the purpose of receiving payments of principal, interest and other amounts in respect of such Note and for all other purposes, whether or not such Note shall be overdue, and none of the Issuers, the Indenture Trustee, the Note Registrar or any agents of any of them, shall be affected by notice to the contrary.
Section 2.10    Payment Account.
(a)    On or prior to the Initial Closing Date, the Indenture Trustee shall establish and maintain one or more segregated trust accounts (collectively, the “Payment Account”) at Citibank, N.A. (or at such other financial institution as necessary to ensure that the Payment Account is at all times an Eligible Account or a sub-account of an Eligible Account, in each case subject to an Account Control Agreement), in its name, as Indenture Trustee, bearing a designation clearly indicating that such account and all funds deposited therein are held for the exclusive benefit of the Noteholders, and the Issuers as their interests may appear.  Each Payment Account shall be an Eligible Account or a sub-account of an Eligible Account.  On each Remittance Date, the Indenture Trustee shall deposit or cause to be deposited in the Payment Account, upon receipt or withdrawal as provided in the Property Management Agreement, the Available Amount for such Payment Date.  Except as provided in this Indenture, the Indenture Trustee, in accordance with the terms of this Indenture, shall have exclusive control and sole right of withdrawal with respect to the Payment Account.  Funds in the Payment Account shall not be commingled with any other moneys.  All moneys deposited from time to time in the Payment Account shall be held by and under the control 

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of the Indenture Trustee in the Payment Account for the benefit of the Noteholders and the Issuers as herein provided.
(b)    Amounts in the Payment Account shall be held uninvested.
(c)    The Indenture Trustee is authorized to make withdrawals from the Payment Account in order to allocate amounts so withdrawn in accordance with Section 2.11(b).
(d)    Upon the satisfaction and discharge of this Indenture pursuant to Section 3.01, the Indenture Trustee shall pay to the Issuers, as their interests may appear, all amounts, if any, held by it remaining as part of the Collateral Pool.
Section 2.11    Payments on the Notes.
(a)    Subject to Section 2.11(b), the applicable Issuers agree to pay:
(i)    on each Payment Date prior to the Legal Final Payment Date for the Classes of each Series of Notes (but only to the extent of the Available Amount pursuant to Section 2.11(b), in the case of payments of principal), interest (but only to the extent of the Available Amount pursuant to Section 2.11(b), in the case of payments of Post-ARD Additional Interest and Deferred Post-ARD Additional Interest) on and principal of such Notes in the amounts and in accordance with the priorities set forth in Section 2.11(b); and
(ii)    on the Legal Final Payment Date for the Classes of each Series of Notes, the entire applicable Aggregate Note Principal Balance, together with all accrued and unpaid interest thereon (but only to the extent of the Available Amount pursuant to Section 2.11(b), in the case of payments of Post-ARD Additional Interest and Deferred Post-ARD Additional Interest).
Amounts properly withheld under the Code by any Person from a payment to any Holder of a Note of interest, principal or other amounts, or any such payment set aside on the Final Payment Date for such Note as provided in Section 2.11(b), shall be considered as having been paid by the applicable Issuers to such Noteholder for all purposes of this Indenture.
(b)    With respect to each Payment Date, any interest, principal and other amounts payable on the Notes shall be paid to each Person that is a registered holder thereof at the close of business on the related Record Date; provided, however, that interest, principal and other amounts payable at the Final Payment Date of any Note shall be payable only against surrender thereof at the Indenture Trustee’s Office or such other address as may be specified in the notice of final payment.  Payments of interest, principal and other amounts on the Notes to be made pursuant to the terms of this Indenture shall be made on each Payment Date other than the Final Payment Date, subject to applicable laws and regulations, by wire transfer to such accounts as each such Noteholder shall designate by written instruction received by the Indenture Trustee not later than the Record Date related to such Payment Date or otherwise by check mailed on or before such Payment Date to the Person entitled thereto at such Person’s address appearing on the Note Register as of the related Record Date.  Any amounts to be paid with respect to a Note in connection with its Final 

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Payment Date shall be paid in immediately available funds from funds in the Payment Account as promptly as possible after presentation to the Indenture Trustee of such Note at the Indenture Trustee’s Office, but in no event later than the next Business Day after the day of such presentation.  If presentation is made after 3:30 p.m., New York City time, on any day, such presentation shall be deemed to have been made on the immediately succeeding Business Day.
Each payment with respect to a Book-Entry Note shall be paid to the Depository, as holder thereof, and the Depository shall be responsible for crediting the amount of such payment to the accounts of its Depository Participants in accordance with its normal procedures.  Each Depository Participant shall be responsible for disbursing such payments to the related Note Owners that it represents and to each indirect participating brokerage firm (a “brokerage firm” or “indirect participating firm”) for which it acts as agent.  Each brokerage firm shall be responsible for disbursing funds to the related Note Owners that it represents.  None of the parties hereto shall have any responsibility therefor except as otherwise provided by this Indenture or applicable law.  The applicable Issuers and the Indenture Trustee shall perform their respective obligations under each Letter of Representations.
Except as provided in the following sentence, if a Note is issued in exchange for any other Note during the period commencing at the close of business at the office or agency where such exchange occurs on any Record Date and ending before the opening of business at such office or agency on the related Payment Date, no interest, principal or other amounts will be payable on such Payment Date in respect of such new Note, but will be payable on such Payment Date only in respect of the prior Note.  Interest, principal and other amounts payable on any Note issued in exchange for any other Note during the period commencing at the close of business at the office or agency where such exchange occurs on the Record Date immediately preceding the Final Payment Date for such Notes and ending on the Final Payment Date for such Notes, shall be payable to the Person that surrenders the new Note as provided in this Section 2.11.
All payments of interest, principal and other amounts made with respect to the Notes of a Class of any Series will be allocated pro rata among the Outstanding Notes of such Class based on the related Note Principal Balance.
If any Note on which the final payment was due is not presented for payment on its Final Payment Date, then the Indenture Trustee shall set aside any payments that would be made in respect of such final payment in a segregated, non-interest bearing account (and shall remain uninvested) separate from the Payment Account (but which may be a sub-account thereof) but which constitutes an Eligible Account (or a sub-account of an Eligible Account), and the Indenture Trustee and the Issuers shall act in accordance with Section 5.10 in respect of the unclaimed funds.
On each Payment Date, the Available Amount for such Payment Date will be applied by the Indenture Trustee, first to pay the following expenses of the Issuers related to the Collateral Pool (collectively, “Collateral Pool Expenses”) in the following order of priority:
(1)    to the extent not withdrawn from the Collection Account by the Property Manager on or prior to the applicable Remittance Date in accordance with the Property Management Agreement, from amounts received on or in respect of any 

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Mortgage Loan or Mortgaged Property or related Lease: first, to the Indenture Trustee, then, any remaining amounts, pari passu, to the Property Manager or the Back-Up Manager, as applicable, reimbursement for unreimbursed Property Protection Advances (plus interest thereon) made with respect to such Mortgage Loan or Mortgaged Property or related Lease; and second, to the Special Servicer, any earned and unpaid Special Servicing Fee, liquidation fees and workout fees incurred with respect to such Mortgage Loan or Mortgaged Property or related Lease;
(2)    to the extent not withdrawn from the Collection Account by the Property Manager on or prior to the applicable Remittance Date in accordance with the Property Management Agreement, on a pro rata basis (based on amounts owing pursuant to this clause (2)), (I) to the Indenture Trustee, the earned and unpaid Indenture Trustee Fees, (II) to the Property Manager, the earned and unpaid Property Management Fee, (III) to the extent not already paid pursuant to clause (1) above, to the Special Servicer, any earned and unpaid Special Servicing Fees, (IV) to the Back-Up Manager, the earned and unpaid Back-Up Fee, (V) to the Custodian, the earned and unpaid Custodian Fee, (VI) to the parties entitled thereto, the amount of any accrued and unpaid Issuer Expenses (the amount allocated pursuant to this sub-clause (VI) for any Payment Date shall not exceed the Issuer Expense Cap for the related Collection Period, unless an Event of Default resulting in the acceleration of the Notes has occurred and is then continuing, in which case, such Issuer Expense Cap limit will not apply), (VII) first, to the Indenture Trustee, and second, pari passu, to the Property Manager or the Back-Up Manager, as applicable, reimbursement for unreimbursed P&I Advances (provided that, unless such P&I Advance has been determined to constitute a Nonrecoverable Advance, such reimbursement will not cause a P&I Shortfall or increase the amount of any P&I Shortfall in respect of such Payment Date) and unreimbursed Property Protection Advances that have been determined to constitute Nonrecoverable Advances (in each case plus accrued and unpaid interest thereon) and (VIII) (a) first, to the Indenture Trustee and (b) second, to each other relevant party, any accrued and unpaid Extraordinary Expenses for which amounts have not already been allocated pursuant to sub-clauses (I) through (VII) above (the amount allocated pursuant to this sub-clause (VIII) for any Payment Date shall not exceed the Extraordinary Expense Cap for the related Collection Period, unless an Event of Default resulting in the acceleration of the Notes has occurred and is then continuing, in which case (i) such Extraordinary Expense Cap Limit will not apply and (ii) indemnities due to any Issuer or any Control Person, member, manager, officer, employee or agent of any such Issuers, other than any such party in connection with its role as (or with respect to the) Property Manager or Special Servicer, that would otherwise be paid pursuant to this clause (VIII) will be payable only after payments due to the Noteholders pursuant to the allocation of Series Available Amount below); and
(3)    to any Reserve Account, up to an amount with respect to which the Affirmative Rating Condition has been satisfied.

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The Available Amount remaining on any Payment Date after payment of Collateral Pool Expenses will be allocated among each Series in the following manner and priority (such manner and priority, the “Inter-Series Priority of Payments” and the aggregate amount allocated to any Series (or the Notes of such Series) pursuant to clauses (1) through (8) below, the “Series Available Amount” with respect to such Series):
(1)    pro rata, based on amounts owing to each Series pursuant to this clause (1), to each Series, the aggregate Note Interest due on the Notes of such Series for such Payment Date plus unpaid Note Interest in respect of such Notes from any prior Payment Date (together with interest thereon at the applicable Note Rate), in each case, plus or minus, as applicable, any net payment due or proceeds received (excluding any termination payments due from an Issuer as a result of a default or termination event with respect to any hedge counterparty) in respect of such Payment Date pursuant to any Hedge Agreement related to the Notes;
(2)    so long as no Early Amortization Event has occurred and is continuing: first (a) pro rata, based on amounts owing to each Series pursuant to this clause (a), to each Series, the Scheduled Principal Payments due on the Notes of such Series for such Payment Date; and second (b) to each Series, its Pro Rata Share (calculated after giving effect to the application of the allocations described in clause (a) above) of the amount of the Unscheduled Principal Payment for such Payment Date, if any;
(3)    if a Series Post ARD Event has occurred and is continuing and no Early Amortization Event has occurred and is continuing, pro rata, based on amounts owing to each Series pursuant to this clause (3), to each Series for which a Series Post ARD Event has occurred and is continuing, in reduction of the Aggregate Note Principal Balance of the Notes of such Series, until the Aggregate Note Principal Balance of the Notes of such Series has been reduced to zero;
(4)    during the continuance of an Early Amortization Event, pro rata, based on amounts owing to each Series pursuant to this clause (4), to each Series, in reduction of the Aggregate Note Principal Balance of the Notes of such Series until reduced to zero;
(5)     (I) if a Sweep Period is in effect (but the Average Cashflow Coverage Ratio equals or exceeds the Early Amortization Threshold) and no Early Amortization Event or Series Post ARD Event has otherwise occurred and is continuing (after giving effect to the application of the allocations described in clause (3) above), to the Cashflow Coverage Reserve Account, the sum of (a) the amount that would be required to be added to the Cashflow Coverage Ratio Numerator in respect of the applicable Determination Date to achieve a Cashflow Coverage Ratio equal to the Sweep Period Threshold on such Determination Date plus (b) the aggregate shortfalls, if any, of the amount that would have been deposited into the Cashflow Coverage Reserve Account on any prior Payment Date but for there being insufficient Available Amounts in respect of such Payment Date; or (II) if the Average 

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Cashflow Coverage Ratio is below the Early Amortization Threshold and the Requisite Global Majority waives the related Early Amortization Event and no Series Post-ARD Event is then in effect (after giving effect to the application of the allocations described in clause (3) above), to each Series, its Pro Rata Share (calculated after giving effect to the application of the allocations described in clauses (2) and (3) above)) of an amount equal to the sum of (a) all amounts on deposit in the Cashflow Coverage Reserve Account as of such Payment Date (immediately prior to any release of amounts from such Cashflow Coverage Reserve Account in respect of such Payment Date) plus (b) the aggregate shortfalls, if any, of the amount that would have been deposited into the Cashflow Coverage Reserve Account on any prior Payment Date but for there being insufficient Available Amounts in respect of such Payment Date;
(6)    to any Hedge Counterparty, any and all amounts (including any termination payments due from an Issuer as a result of the default or termination event with respect to any Hedge Counterparty) due on such Payment Date to such Hedge Counterparty not paid pursuant to the allocation described in clause (1) above, pro rata, based on such amounts due to such Hedge Counterparties pursuant to this clause (6);
(7)    pro rata, based on amounts owing to each Series pursuant to this clause (7), to each Series, the Make Whole Payments, if any, due on the Notes of such Series in respect of such Payment Date plus any unpaid Make Whole Payments in respect of such Notes from any prior Payment Date; and
(8)    to each Series, pro rata, based on amounts owing to each Series pursuant to this clause (8), to each Series, the  aggregate unpaid Post-ARD Additional Interest and Deferred Post-ARD Additional Interest, if any, accrued on the Notes of such Series as of such Payment Date.
On each Payment Date, the Indenture Trustee will apply and will pay the Series Available Amount with respect to each Series for such Payment Date for the purposes and in the order of priority indicated in the related Series Supplement.  The Available Amount remaining on any Payment Date after the allocations described above shall be applied first, to the payment of Issuer Expenses and Extraordinary Expenses not paid from the Available Amount in accordance with the foregoing allocations, and second, pro rata, to the Issuers (such amounts to be released from the lien of this Indenture) or, at the option of any Issuer, with respect to its pro rata share of such remaining Available Amount, to the Release Account.
The Notes are nonrecourse obligations solely of the applicable Issuers and will be payable only from the Collateral included in the Collateral Pool.  Each Noteholder and Note Owner will be deemed to have agreed that they have no rights or claims against the Issuers directly and may only look to the Collateral Pool to satisfy any such Issuer’s obligations hereunder.  Each Noteholder and Note Owner will be deemed to have agreed, by its acceptance of its Note or its Ownership Interest therein, not to file or join in filing any petition in bankruptcy or commence any similar proceeding in respect of any applicable Issuer for a period of two years and 31 days following 

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payment in full of the Notes of all Series. Notwithstanding the provisions of this Section 2.11(b), the Issuers may, subject to Section 9.08, at any time advance funds to the Indenture Trustee for the purpose of allowing the Indenture Trustee to make required payments on the Notes (“Issuer Advances”) without right of reimbursement.
(c)    In connection with making any payments pursuant to Section 2.11(b), the Indenture Trustee shall make available to each Issuer on the related Payment Date via the Indenture Trustee’s internet website specified in Section 6.01(a), a written statement detailing the amounts so paid; provided, that if such information is not so available on the Indenture Trustee’s internet website for any reason, the Indenture Trustee shall provide each Issuer with such written statement by facsimile transmission, confirmed in writing by first class mail or overnight courier.
Section 2.12    Final Payment Notice.
(a)    Notice of final payment under Section 2.11(b) shall be given by the Indenture Trustee as soon as practicable, but not later than two Business Days prior to the Final Payment Date for a Class of any Series, to each Noteholder of such Series as of the close of business on the Record Date preceding the Final Payment Date at such Noteholder’s address appearing in the Note Register and to each applicable Rating Agency and each applicable Issuer.
(b)    All notices of final payment in respect of a Class of Notes of any Series shall state (i) the Final Payment Date for such Notes, (ii) the amount of the final payment for such Notes and (iii) the place where such Notes are to be surrendered for payment.
(c)    Notice of final payment of a Class of Notes of any Series shall be given by the Indenture Trustee in the name and at the expense of the Indenture Trustee.  Failure to give notice of final payment, or any defect therein, to any Noteholder of such Series shall not impair or affect the validity of the final payment of any other Note.
Section 2.13    Compliance with Withholding Requirements.
Notwithstanding any other provision of this Indenture, the Indenture Trustee shall comply with all federal, state, local or foreign withholding requirements with respect to payments to Noteholders of interest, original issue discount, or other amounts that the Indenture Trustee reasonably believes are applicable under the Code or any other applicable law.  The consent of Noteholders shall not be required for any such withholding.
Section 2.14    Cancellation.
The applicable Issuers may at any time deliver to the Note Registrar for cancellation any Notes previously authenticated and delivered hereunder which such Issuers may have acquired in any manner whatsoever, and all Notes so delivered shall be promptly canceled by the Note Registrar.  The principal of and all accrued interest on all such cancelled Notes will be deemed to have been paid in full (and such payment of principal and interest will be deemed to have been made to the relevant Noteholders) and such cancelled Notes shall be deemed no longer to be outstanding for all purposes under this Indenture and the other transaction documents.

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If any Note shall have been authenticated and delivered hereunder but never issued and sold by the Issuers, and the Issuers shall deliver such Note to the Indenture Trustee for cancellation as provided in this Section 2.14 together with a written statement stating that such Indenture Note has never been issued and sold by the Issuers, for all purposes of this Indenture such Note shall be deemed never to have been authenticated and delivered hereunder and shall not be entitled to the benefits of this Indenture.
All Notes delivered to the Indenture Trustee for payment shall be forwarded to the Note Registrar.  All such Notes and all Notes surrendered for transfer and exchange in accordance with the terms hereof shall be canceled and disposed of by the Note Registrar in accordance with its customary procedures.
Section 2.15    The Hedge Agreements.
(a)     On any Series Closing Date, the applicable Issuers may enter into one or more Hedge Agreements with respect to any Class of any related Series of Notes.

(b)    The Indenture Trustee shall, on behalf of the applicable Issuers, distribute amounts due to each Hedge Counterparty under the applicable Hedge Agreements on any Payment Date from the Payment Account in accordance with Section 2.11 and the applicable Series Supplement.

(c)    The Indenture Trustee shall agree to any reduction in the notional amount of any Hedge Agreement requested by the applicable Issuers; provided, that the Affirmative Rating Condition is satisfied with respect to (but only with respect to) Notes of Series to which such Hedge Agreement relates. Any amount paid by a Hedge Counterparty to the applicable Issuers in connection with such reduction shall constitute part of the Available Amount except as otherwise provided in the applicable Series Supplement.

(d)    Each Hedge Agreement (unless otherwise provided in the applicable Series Supplement) shall permit the complete or partial termination thereof (without the payment by the applicable Issuers of penalties or fees other than termination-related expenses) by the applicable Issuers subject to the provision of at least ten (10) Business Days notification to the Rating Agencies. The Indenture Trustee shall, prior to each applicable Series Closing Dates if required by the applicable Series Supplement, establish at Citibank, N.A. (or at such other financial institution as provided in the applicable Series Supplement and as necessary to ensure that the Hedge Counterparty Account is at all times an Eligible Account or a sub-account of an Eligible Account) a segregated trust account that shall be designated as a “Hedge Counterparty Account”, in its name, as Indenture Trustee, bearing a designation clearly indicating that such account and all funds deposited therein are held for the exclusive benefit of the applicable Noteholders, over which the Indenture Trustee shall have exclusive control and the sole right of withdrawal, and in which neither the applicable Issuers nor any other Person shall have any legal or beneficial interest.  The Hedge Counterparty Accounts may be a sub-accounts of the Payment Account.  The only permitted withdrawal from or application of funds on deposit in, or otherwise to the credit of, a Hedge Counterparty Account shall 

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be for application to obligations of the applicable Hedge Counterparty to the applicable Issuers under the related Hedge Agreement.

(e)    In the event a Responsible Officer of the Indenture Trustee becomes aware that a Hedge Counterparty has defaulted in the payment when due of its obligations to the applicable Issuers under the related Hedge Agreement, the Indenture Trustee shall make a demand on such Hedge Counterparty, or any guarantor, if applicable, demanding payment by 12:30 p.m., New York City time, on such date (or by such time on the next succeeding Business Day if such knowledge is obtained after 11:30 a.m., New York City time).  The Indenture Trustee shall give notice to the applicable Noteholders upon the continuing failure by such Hedge Counterparty to perform its obligations during the two Business Days following a demand made by the Indenture Trustee on such Hedge Counterparty.

(f)    If at any time a Hedge Agreement becomes subject to early termination due to the occurrence thereunder of an event of default or a termination event, the applicable Issuers and the Indenture Trustee shall take such actions (following the expiration of any applicable grace period and after the expiration of the two Business Day period referred to in Section 2.16(e), as applicable) to enforce the rights of the applicable Issuers and the Indenture Trustee thereunder as may be permitted by the terms of such Hedge Agreement and consistent with the terms hereof, and shall apply the proceeds of any such actions (including, without limitation, the proceeds of the liquidation of any collateral pledged by the related Hedge Counterparty) to enter into a replacement Hedge Agreement on such terms or provide such other substitute arrangement (or forebear from doing either of the foregoing), or as otherwise provided in the applicable Series Supplement. Any costs attributable to entering into a replacement Hedge Agreement which exceed the aggregate amount of the proceeds of the liquidation of the terminated Hedge Agreement shall constitute Issuer Expenses payable under Section 2.11(b). In addition, the applicable Issuers will use their commercially reasonable efforts to cause the termination of a Hedge Agreement to become effective simultaneously with the entry into a replacement Hedge Agreement described as aforesaid.

(g)    The applicable obligations under a Hedge Agreement must be non-recourse obligations of the applicable Issuers payable only to the extent of available funds in accordance with Section 2.11(b) and the applicable Series Supplement and must contain the agreement of the Hedge Counterparty equivalent to Section 9.12 of the Property Management Agreement.

Section 2.01    Tax Treatment of the Notes and the Issuers.
The Issuers have entered into this Indenture, and each Class of Notes will be issued, with the intention that, for purposes of any federal, state and local income or franchise tax and any other taxes imposed on or measured by income, such Notes will qualify as indebtedness (unless otherwise provided in the applicable Series Supplement).  The Issuers, by entering into this Indenture, each Noteholder, by acceptance of its Note, and each Note Owner, by purchasing or otherwise acquiring an Ownership Interest in a Note, agree to treat the Notes and such Ownership Interests for purposes of any federal, state and local income or franchise tax and any other taxes imposed on or measured by income, as indebtedness (unless otherwise provided in the applicable Series Supplement).

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Section 2.02    Cashflow Coverage Reserve Account.
(a)    On or prior to the date hereof, the Indenture Trustee shall establish and maintain at Citibank, N.A. (or at such other financial institution as necessary to ensure that the Cashflow Coverage Reserve Account is at all times an Eligible Account or a sub-account of an Eligible Account, in each case subject to an Account Control Agreement) one or more segregated trust accounts (collectively, the “Cashflow Coverage Reserve Account”), in its name, as Indenture Trustee, bearing a designation clearly indicating that such account and all funds deposited therein are held for the exclusive benefit of the Noteholders and the Issuers as their interests may appear.

(b)    The Indenture Trustee shall deposit or cause to be deposited in the Cashflow Coverage Reserve Account during any Sweep Period the amount allocated for such purpose pursuant to Section 2.11(b). Except as provided in this Indenture, the Indenture Trustee, in accordance with the terms of this Indenture, shall have exclusive control and sole right of withdrawal with respect to the Cashflow Coverage Reserve Account. Funds in the Cashflow Coverage Reserve Account shall not be commingled with any other moneys. All moneys deposited from time to time in the Cashflow Coverage Reserve Account shall be held by and under the control of the Indenture Trustee in the Cashflow Coverage Reserve Account for the benefit of the Noteholders and the Issuers as herein provided.
(c)    All amounts in the Cashflow Coverage Reserve Account shall remain uninvested.

(d)    If, on any Determination Date, the Indenture Trustee shall have determined (based on information with respect to the Mortgage Loan and Mortgaged Properties and Leases provided to it by the Property Manager and the Special Servicer) that the Available Amount for the related Payment Date is not sufficient to make, in full, the payments set forth in clauses (1) through (2)(a) of the Inter-Series Priority of Payments pursuant to Section 2.11(b) (the amount of any such insufficiency, the “Cashflow Shortfall Amount”) for the related Payment Date, the Indenture Trustee shall transfer an amount equal to the lesser of (x) such Cashflow Shortfall Amount and (y) the amount then on deposit in the Cashflow Coverage Reserve Account to the Payment Account, to be distributed as Available Amounts in respect of such Payment Date.  

(e)    On any Determination Date upon which a Sweep Period ceases to be continuing, 50% of the funds on deposit in the Cashflow Coverage Reserve Account shall be transferred to the Payment Account and treated as Available Amount in respect of the Payment Date relating to such Determination Date.  In the event that the Current Cashflow Coverage Ratio exceeds the Sweep Period Threshold for any three consecutive Determination Dates following the Determination Date upon which such Sweep Period was no longer continuing, any remaining funds on deposit in the Cashflow Coverage Reserve Account will be transferred to the Payment Account and treated as Available Amount in respect of the Payment Date relating to such third consecutive Determination Date.

Section 2.03    Representations and Warranties With Respect To Mortgage Loans, Mortgaged Properties and Leases.

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Subject to any exceptions (x) approved by the Requisite Global Majority, (y) with respect to which the Affirmative Rating Condition is satisfied or (z) for any Mortgage Loans or Mortgaged Properties and Leases added to the Collateral Pool on a Series Closing Date, as set forth in the Series Supplement for the Series issued on such Series Closing Date, (i) in connection with the issuance of any Series of Notes, the applicable Issuer hereby makes the applicable representations and warranties set forth on Schedule I-A and Schedule I-B with respect to the (X) Mortgage Loans and (Y) Mortgaged Properties and any related Leases, respectively, added to the Collateral Pool by such Issuer on such Series Closing Date; provided, that such representations and warranties shall be made as of the date specified in such Schedule I-A or Schedule I-B or, in the event no such date is specified with respect to any such representation or warranty, as of the Transfer Date, or (ii) in any other instance in which an Issuer acquires any Mortgage Loans or Mortgaged Properties and related Leases (including in connection with the addition of any Qualified Substitute Mortgage Loans and/or Qualified Substitute Mortgaged Properties to the Collateral Pool), such Issuer hereby makes the applicable representations and warranties set forth on Schedule I-A and Schedule I-B with respect to such (X) Mortgage Loans or (Y) Mortgaged Properties and any related Leases, respectively; provided, that such representations and warranties shall be made as of the date specified in such Schedule I-A or Schedule I-B or, in the event no such date is specified with respect to any such representation or warranty, as of the Transfer Date.  Notwithstanding the foregoing, the terms and provisions and requirements of this paragraph shall not apply to any Mortgage Loans, Mortgaged Properties or Leases acquired by an Issuer from an Originator or the transactions effected by any such acquisition.
With respect to any Mortgage Loans or Mortgaged Properties and related Leases acquired by an Issuer from an Originator (whether on a Series Closing Date or otherwise), the applicable Issuer shall cause (i) the applicable representations and warranties set forth on Schedule I-A and Schedule I-B with respect to (X) the Mortgage Loans and (Y) the Mortgaged Properties and any related Leases, respectively, to be made by such Originator as of the date specified in such Schedule I-A or Schedule I-B or, in the event no such date is specified with respect to any such representation or warranty, as of the Transfer Date (in each case subject to any exceptions approved by the Requisite Global Majority or with respect to which the Affirmative Rating Condition is satisfied) and (ii) such Originator’s obligations with respect to such representations and warranties to be guaranteed by the Support Provider pursuant to a Performance Undertaking and such guarantee to be substantially similar in substance (subject to any modifications or differences with respect to which the Affirmative Rating Condition is satisfied) to the analogous guarantee contained in the Performance Undertaking (the “Initial Performance Undertaking”) entered into by the Support Provider in connection with the Initial Closing Date.  In connection with the issuance of any Series of Notes subsequent to the Initial Closing Date, the applicable Issuer shall cause a Performance Undertaking which contains provisions substantially similar in substance (subject to any modifications or differences with respect to which the Affirmative Rating Condition is satisfied) to Section 2(b) of the Initial Performance Undertaking to be entered into by the Support Provider (or an Affiliate of the Support Provider with respect to which the Affirmative Rating Condition is satisfied). 

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The sole remedy for the breach of any representations or warranties set forth on Schedule I-A or Schedule I-B shall be set forth in the Property Management Agreement (and, for the avoidance of doubt, no such breach shall constitute or give rise to a default hereunder).
Section 2.04    Satisfaction of the Rating Condition.
The Rating Condition (but not the Affirmative Rating Condition) will be deemed to have been satisfied with respect to any Deemed Rating Condition Agency if all of the following conditions are met:
(f)    the party required to obtain evidence of the satisfaction of the Rating Condition (the “Requesting Party”) has made a request to such Deemed Rating Condition Agency for such evidence, and
(g)    within 10 Business Days following such request, such Deemed Rating Condition Agency (I) has not replied to such request or (II) has responded in a manner that indicates that such Deemed Rating Condition Agency is neither reviewing such request nor waiving the requirement that the Rating Condition be satisfied; provided that: 
(i)    in the case of (b)(I) above, such Requesting Party will be required to confirm that such Deemed Rating Condition Agency has received the request, and, if it has not, promptly request the related evidence again, and
(ii)    if there is no response from such Deemed Rating Condition Agency to such request for evidence of satisfaction of the Rating Condition within three Business Days following such second request or confirmation that the first request was received as contemplated by clause (i) above or if the Requesting Party receives the response to the initial request described above in clause (b)(II) from such Deemed Rating Condition Agency, then (x) the Rating Condition shall be deemed satisfied with respect to such Deemed Rating Condition Agency (other than as described in clause (y) below) and (y) with respect to a replacement or succession of the Back-up Manager, the Rating Condition will be deemed to be satisfied with respect to any applicable replacement or successor (1) if KBRA has not publicly cited (in writing) servicing concerns of the applicable replacement as the sole or material factor in any qualification, downgrade or withdrawal of the ratings (or placement on “watch status” in contemplation of a ratings downgrade or withdrawal) of securities in a transaction serviced by the  Back-Up Manager prior to the time of such replacement, if KBRA is the non-responding Deemed Rating Condition Agency or (2) if the criteria set forth in the applicable Series Supplement are met, if the non-responding Deemed Rating Condition Agency is not KBRA.
Section 2.05    Reserve Accounts.
Upon satisfaction of the Affirmative Rating Condition (but without the consent of any Noteholders), the Issuer will be permitted to cause the Indenture Trustee to establish one or more reserve accounts (to be held in the name of the Indenture Trustee on behalf of the Noteholders) (the “Reserve Accounts”) for the purpose of paying any costs and expenses relating to the Issuer’s 

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ownership of particular Mortgaged Properties.  Each Reserve Account shall be an Eligible Account or a sub-account of an Eligible Account.
ARTICLE III     
 
SATISFACTION AND DISCHARGE
Section 3.01    Satisfaction and Discharge of Indenture.
This Indenture shall cease to be of further effect except as to (i) any surviving rights herein expressly provided for, including any rights of transfer or exchange of Notes herein expressly provided for, (ii) in the case of clause (1)(B) below, the rights of the Noteholders hereunder to receive payment of the Note Principal Balance of and interest on the Notes, and (iii) the provisions of Section 3.02, and the Indenture Trustee, at the request of and at the expense of the applicable Issuers, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when:
(1)    either: (A) all Notes theretofore authenticated and delivered (other than (i) Notes which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 2.07 and (ii) Notes for whose full payment of money is held in trust by the Indenture Trustee and thereafter released to the Issuer or discharged from such trust, as provided in Section 5.10) have been delivered to the Note Registrar for cancellation; or (B) all such Notes not theretofore delivered to the Note Registrar for cancellation (i) have become due and payable, or (ii) will become due and payable on the next Payment Date, and in the case of clause (B)(i) or (B)(ii) above, cash in an amount sufficient to pay and discharge the entire indebtedness on such Notes not theretofore delivered to the Note Registrar for cancellation or sufficient to pay the Note Principal Balance thereof and any interest thereon accrued to the date of such deposit (in the case of Notes which have become due and payable) or to the end of the related Accrual Period for the next Payment Date has been deposited with the Indenture Trustee as trust funds in trust for these purposes;
(2)    the Issuers have paid or caused to be paid all other sums payable or reasonably expected to become payable by such Issuers to the Indenture Trustee, the Collateral Agent, the Property Manager, the Special Servicer, the Back-Up Manager, each of the Rating Agencies, each of the other Persons to which amounts are payable hereunder and each of the Noteholders (in each case, if any); and
(3)    the Issuers have delivered to the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel (upon which the Indenture Trustee may rely) stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with;
provided, however, that if, at any time after the payment that would have otherwise resulted in the satisfaction and discharge of this Indenture and such obligations, such payment is rescinded or must 

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otherwise be returned for any reason, effective upon such rescission or return such satisfaction and discharge of this Indenture and such obligations shall automatically be deemed never to have occurred and this Indenture and such obligations shall be deemed to be in full force and effect.
Notwithstanding the foregoing, the obligations of the Issuers to the Indenture Trustee under Section 5.04 hereof and the obligations of the Indenture Trustee to the Noteholders under Section 3.02 hereof shall survive satisfaction and discharge of this Indenture.
Section 3.02    Application of Trust Money.
Subject to the provisions of Section 2.11, Section 5.10 and Section 7.01, all Cash deposited with the Indenture Trustee pursuant to Section 3.01 shall be held in the Payment Account and applied by the Indenture Trustee, in accordance with the provisions of the Notes and this Indenture, to pay to the Persons entitled thereto the amounts to which such Persons are entitled pursuant to the provisions hereof.
ARTICLE IV     
 
EVENTS OF DEFAULT; REMEDIES
Section 4.01    Events of Default.
“Event of Default,” wherever used herein with respect to the Notes of any Series, means any one of the following events (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):
(d)    a default by any Issuer to pay interest on any Notes on any Payment Date (not including any Post-ARD Additional Interest or Deferred Post-ARD Additional Interest);
(e)    a failure to pay the principal balance of all Outstanding Notes of any Class of Notes in full on the applicable Legal Final Payment Date for such Class of Notes;
(f)    any material default in the observance or performance of any material covenant or agreement of the Issuers made in this Indenture or any related Mortgage (other than a covenant or agreement, a default in the observance or performance of which is elsewhere in this Section 4.01 specifically dealt with), which default shall continue unremedied for a period of 60 days after there shall have been given to the Issuers by the Indenture Trustee, or to the Issuers and the Indenture Trustee by the Noteholders holding at least 25% of the Aggregate Series Principal Balance, a written notice specifying such default and requiring it to be remedied;
(g)    the impairment of the validity or effectiveness of this Indenture or the lien of this Indenture or any Mortgage, the subordination of the lien of any such Mortgage, the creation of any lien or other encumbrance on any part of the Collateral Pool in addition to the lien of any such Mortgage or the failure of the lien of any such Mortgages to constitute a valid first priority perfected security interest in the Collateral included in the Collateral Pool, in each case subject to 

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(and excluding) liens expressly permitted under the terms of the Indenture, the Property Management Agreement or the related Mortgages which impairments, subordinations, creations or failures, shall, individually or in the aggregate, simultaneously apply to Collateral with an aggregate value in excess of $1,000,000; provided, that if susceptible of cure, no Event of Default shall arise pursuant to this clause (d) until the continuation of any such impairments, subordinations, creations or failures for a period of 5 consecutive days or, with respect to the lien of any Mortgage, 30 days, in either case after receipt by the Issuers of notice thereof;
(h)    a breach of the representations and warranties of any Issuer contained in Section 9.04, and such breach has a material adverse effect on the Noteholders;
(i)    a decree or order of a court or agency or supervisory authority having jurisdiction in the premises in an involuntary case under any present or future federal or state bankruptcy, insolvency or similar law or appointing a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities and reorganization or similar proceedings, or for the winding up or liquidation of its affairs, shall have been entered against any Issuer and such decree or order shall have remained in force undischarged or unstayed for a period of 60 days;
(j)    any Issuer shall voluntarily file a petition for bankruptcy, reorganization, assignment for the benefit of creditors or similar proceeding or consent to the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities, or similar proceedings of, or relating to, such Issuer or of, or relating to, all or substantially all of the assets of the Issuers; or
(k)    the Mortgaged Properties are transferred or encumbered other than as provided in (or contemplated in) this Indenture or the Property Management Agreement.
Section 4.02    Acceleration of Maturity; Rescission and Annulment.
If an Event of Default should occur and be continuing, the Indenture Trustee shall, at the written direction of the Requisite Global Majority (which shall have the right, but not the obligation, to direct the Indenture Trustee to accelerate the Notes), declare all of the Notes to be immediately due and payable.  
At any time after such declaration of acceleration has been made and before a judgment or decree for payment of the money due in respect of the Notes has been obtained by the Indenture Trustee as hereinafter provided in this Article IV, the Requisite Global Majority may rescind and annul such declaration and its consequences if:
		
	(i)
	the Issuers have paid or deposited with the Indenture Trustee a sum sufficient to pay:

		
	(A)
	all payments of principal of and interest on the Notes and all other amounts that would, in each case, then be due hereunder or upon the 

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Notes if the Event of Default giving rise to such acceleration had not occurred; and
		
	(B)
	all sums paid or advanced by the Indenture Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Indenture Trustee and counsel; and

		
	(ii)
	all Events of Default, other than the nonpayment of the principal of the Notes that has become due solely by virtue of such acceleration, have been cured or waived as provided in Section 4.12.

No such rescission and annulment shall affect any subsequent default or impair any right consequent thereto.
Section 4.03    Collection of Indebtedness and Suits for Enforcement by Indenture Trustee.
(q)    If the Issuers fail to pay all amounts due upon an acceleration of the Notes under Section 4.02 forthwith upon demand and such declaration and its consequences shall not have been rescinded and annulled, the Indenture Trustee, in its capacity as Indenture Trustee and as trustee of an express trust, shall, if directed in writing by the Requisite Global Majority (which will have the right, but not the obligation, to direct the Indenture Trustee to cause the foreclosure and sale of the Collateral in the Collateral Pool), institute a judicial proceeding for the collection of the sums so due and unpaid, prosecute such proceeding to judgment or final decree and enforce the same against the Issuers or any other obligor upon such Notes and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the Collateral, wherever situated, or may institute and prosecute such non-judicial proceedings in lieu of judicial proceedings as are then permitted by applicable law.
(r)    If an Event of Default occurs and is continuing, the Indenture Trustee may, in its discretion and in any order, proceed to protect and enforce its rights and the rights of the Noteholders by such appropriate proceedings as the Indenture Trustee shall deem most effective to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein or to enforce any other proper remedy or legal or equitable right vested in the Indenture Trustee by this Indenture or any Mortgage or by law.
(s)    In case (x) there shall be pending, relative to the Issuers or any Person having or claiming an interest in the Collateral Pool, proceedings under Title 11 of the United States Code or any other applicable federal or state bankruptcy, insolvency or other similar law, (y) a receiver, assignee, debtor-in-possession or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been appointed for or shall have taken possession of any Issuers or its property or such Person or (z) there shall be pending a comparable judicial proceeding brought by creditors of any Issuer or affecting the property of such Issuer, the Indenture Trustee, irrespective of whether the principal of or interest on any Notes shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Indenture Trustee shall have made 

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any demand pursuant to the provisions of this Section, shall be entitled and empowered, by intervention in such proceedings or otherwise:
(i)    to file and prove a claim or claims for the whole amount of principal and interest owing and unpaid in respect of the Notes and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Indenture Trustee (including any claim for reasonable compensation to the Indenture Trustee and each predecessor Indenture Trustee, and their respective attorneys, and for reimbursement of all reasonable expenses and liabilities incurred, and all advances made, by the Indenture Trustee and each predecessor Indenture Trustee, except as a result of willful misconduct, negligence or bad faith of the Indenture Trustee or any predecessor Indenture Trustee, as applicable) and of the Noteholders allowed in such proceedings;
(ii)    unless prohibited by applicable law and regulations, to vote on behalf of the Noteholders in any election of a trustee, a standby trustee or Person performing similar functions in any such proceedings;
(iii)    to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute all amounts received with respect to the claims of the Noteholders and of the Indenture Trustee on their and its behalf; and
(iv)    to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Indenture Trustee or the Noteholders allowed in any judicial proceedings relative to any Issuer, its creditors and its property;
and any trustee, receiver, liquidator, custodian or other similar official in any such proceeding is hereby authorized by each of Noteholders to make payments to the Indenture Trustee, and, in the event that the Indenture Trustee shall consent to the making of payments directly to such Noteholders, to pay to the Indenture Trustee such amounts as shall be sufficient to cover reasonable compensation to the Indenture Trustee, each predecessor Indenture Trustee and their respective attorneys, and all other expenses and liabilities incurred, and all advances made, by the Indenture Trustee and each predecessor Indenture Trustee except as a result of willful misconduct, negligence or bad faith of the Indenture Trustee or predecessor Indenture Trustee.
(t)    Nothing herein contained shall be deemed to authorize the Indenture Trustee to authorize or consent to or vote for or accept or adopt on behalf of any Noteholder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any related Noteholder or to authorize the Indenture Trustee to vote in respect of the claim of any Noteholder in any such proceeding except, as aforesaid, to vote for the election of a trustee in bankruptcy or similar Person.
(u)    In any proceedings brought by the Indenture Trustee (and also any proceedings involving the interpretation of any provision of this Indenture to which the Indenture Trustee shall be a party), the Indenture Trustee shall be held to represent all the Noteholders, and it shall not be necessary to make any Noteholder a party to any such proceedings.

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(v)    All rights of action and claims under this Indenture or the Notes may be prosecuted and enforced by the Indenture Trustee without the possession of any of the Notes or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Indenture Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Indenture Trustee and its counsel, be for the ratable benefit of the Noteholders in respect of which such judgment has been recovered, subject to the payment priorities of Section 2.11(b).
Section 4.04    Remedies.
If an Event of Default has occurred and is continuing, and the Notes have been declared due and payable pursuant to Section 4.02 and such declaration and its consequences shall not have been rescinded and annulled, the Indenture Trustee shall, at the written direction of the Requisite Global Majority, in addition to performing any tasks as provided in Section 4.03, do one or more of the following:
(f)    institute, or cause to be instituted, Proceedings for the collection of all amounts then payable on or under this Indenture with respect to the Notes, whether by declaration of acceleration or otherwise, of the sums due and unpaid, prosecute such Proceedings, enforce any judgment obtained and collect from the Collateral included in the Collateral Pool the moneys adjudged to be payable;
(g)    liquidate, or cause to be liquidated, all or any portion of the Collateral Pool at one or more public or private sales called and conducted in any manner permitted by applicable laws; provided, however, that the Indenture Trustee shall give the Issuers written notice of any private sale called by or on behalf of the Indenture Trustee pursuant to this Section 4.04(b) at least 10 days prior to the date fixed for such private sale;
(h)    institute, or cause to be instituted, Foreclosure Proceedings with respect to all or part of the Collateral included in the Collateral Pool;
(i)    exercise, or cause to be exercised, any remedies of a secured party under the UCC;
(j)    maintain the lien of this Indenture and the Mortgages over the Collateral included in the Collateral Pool and, in its own name or in the name of the Issuers or otherwise, collect and otherwise receive in accordance with the Property Management Agreement or this Indenture any money or property at any time payable or receivable on account of or in exchange for the Mortgage Loans, Mortgaged Properties and Leases in the Collateral Pool;
(k)    take any other appropriate action to protect and enforce the rights and remedies of the Indenture Trustee hereunder; and
(l)    exercise, or cause to be exercised, any remedies contained in any Mortgage;

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provided, however, that the Indenture Trustee shall not, unless required by law, sell or otherwise liquidate all or any portion of the Collateral Pool following any Event of Default except in accordance with Section 4.15; provided, further, that, with respect to instituting any remedies pursuant to this Section 4.04 in any state wherein the law prohibits more than one “judicial action” or “one form of action” to enforce a mortgage obligation, the Indenture Trustee shall enforce any of the Indenture Trustee’s rights hereunder with respect to any Mortgaged Properties in accordance with the directions of the Property Manager.
In the event that the Indenture Trustee, following an Event of Default hereunder, institutes Foreclosure Proceedings, the Indenture Trustee shall promptly give a notice to that effect to the Issuers and each Rating Agency.
Section 4.05    Application of Money Collected.
Any money collected by the Indenture Trustee pursuant to this Article shall be deposited in the Payment Account and, on the Payment Date relating to the Collection Period in which such moneys are deposited in the Payment Account, shall be applied in accordance with Section 2.11 and, in case of the distribution of such money on account of the principal of or interest on the Notes, upon presentation and surrender of the Notes if fully paid.
Section 4.06    Limitation on Suits.
No Noteholder shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless:
(1)    such Noteholder has previously given written notice to the Indenture Trustee of a continuing Event of Default;
(2)    the Noteholders holding more than 50% of the Aggregate Series Principal Balance shall have made written request to the Indenture Trustee to institute proceedings in respect of such Event of Default in its own name as Indenture Trustee hereunder;
(3)    such Noteholders have offered to the Indenture Trustee adequate indemnity or security satisfactory to the Indenture Trustee against the costs, expenses and liabilities to be incurred in compliance with such request;
(4)    the Indenture Trustee for 60 days after its receipt of such notice, request and offer of indemnity or security has failed to institute any such proceeding;
(5)    no direction inconsistent with such written request has been given to the Indenture Trustee during such 60-day period by the Requisite Global Majority; and
(6)    an Event of Default shall have occurred and be continuing;

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it being understood and intended that no one or more of such Noteholders shall have any right in any manner whatever by virtue of, or by availing itself or themselves of, any provision of this Indenture to affect, disturb or prejudice the rights of any other of such Noteholders, or to obtain or to seek to obtain priority or preference over any other of such Noteholders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all of such Noteholders.  Subject to the foregoing restrictions, the Noteholders may exercise their rights under this Section 4.06 independently.
Section 4.07    Unconditional Right of Noteholders to Receive Principal and Interest.
Notwithstanding any other provision in this Indenture, the Holder of any Note at Maturity shall have the right, which is absolute and unconditional, to receive payments of interest, principal and other amounts then due on such Note (subject to Section 2.11 and the limited recourse provisions herein) and to institute suit for the enforcement of any such payment (subject to Section 4.06), and such rights shall not be impaired without the consent of such Noteholder, unless a non-payment has been cured pursuant to the second paragraph of Section 4.02; provided, that notwithstanding any other provision in this Indenture or any Series Supplement or any Note to the contrary, the obligation to pay principal of or interest on the Notes or any other amount payable to any Noteholder will be without recourse to the Issuer (except to the Collateral Pool), and the obligation of the Issuer to pay principal of or interest on the Notes or any other amount payable to any Noteholder will be subject to Section 2.11.  The Issuers shall, however, be subject to only one consolidated lawsuit by the Noteholders, or by the Indenture Trustee on behalf of the Noteholders, for any one cause of action arising under this Indenture or otherwise.
Section 4.08    Restoration of Rights and Remedies.
If the Indenture Trustee or any Noteholder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued, waived, rescinded or abandoned for any reason, or has been determined adversely to the Indenture Trustee or to such Noteholder, then and in every such case, subject to any determination in such proceeding, the Issuers, the Indenture Trustee and the Noteholders shall be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies of the Indenture Trustee and the Noteholders shall continue as though no such proceeding had been instituted.
Section 4.09    Rights and Remedies Cumulative.
Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes in Section 2.07, no right or remedy herein conferred upon or reserved to the Indenture Trustee, to the Noteholders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.
Section 4.10    Delay or Omission Not Waiver.

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No delay or omission of the Indenture Trustee or any Noteholder to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein.  Every right and remedy given by this Indenture or by law to the Indenture Trustee or to the Noteholders may be exercised from time to time, and as often as may be deemed expedient, to the extent permitted by applicable law, by the Indenture Trustee or the Noteholders, as the case may be.
Section 4.11    Control by Requisite Global Majority.
(a)    The Requisite Global Majority shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Indenture Trustee under Section 4.04, or exercising any trust or power conferred on the Indenture Trustee (including, without limitation, the exercise of its rights under any Account Control Agreement); provided, that such direction shall not be in conflict with any applicable law or with this Indenture or involve the Indenture Trustee in personal liability; and provided, further, that the Indenture Trustee may take any other action deemed proper by the Indenture Trustee which is not inconsistent with such direction.
(b)    Notwithstanding anything to the contrary herein, the Requisite Global Majority may waive the occurrence of an Early Amortization Event.  Upon any such waiver, such Early Amortization Event shall cease to exist, and any Early Amortization Event arising therefrom shall be deemed to have been cured, for every purpose of this Indenture, but no such waiver shall extend to any subsequent or other Early Amortization Event or impair any right consequent thereon.
Section 4.12    Waiver of Past Defaults.
Prior to the acceleration of the Maturity of the Notes, the Requisite Global Majority may waive any past default hereunder and its consequences, except a default:
(1)    in the payment of principal or interest on any Note, for which a waiver shall require the consent of Noteholders holding 100% of the aggregate Note Principal Balance of all Notes affected thereby;
(2)    in respect of a covenant or provision hereof which under Article VIII cannot be modified or amended without the consent of the Holder of each Note affected thereby, for which a waiver shall require the consent by each such Holder;
(3)    depriving the Indenture Trustee of a lien on any part the Collateral, for which a waiver shall require the consent of the Indenture Trustee; or
(4)    depriving the Indenture Trustee or the Collateral Agent of any fees, reimbursement, or indemnification, to which the Indenture Trustee or Collateral Agent, as applicable, is entitled, for which a waiver shall require the written consent of the Indenture Trustee or Collateral Agent, as applicable.

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Upon any such waiver, such default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture, but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon.  Any costs or expenses incurred by the Indenture Trustee in connection with such waiver shall be reimbursable to the Indenture Trustee as an Extraordinary Expense from amounts on deposit in the Payment Account.
Section 4.13    Undertaking for Costs.
All parties to this Indenture agree, and each Noteholder and Note Owner by its acceptance of such Note or an Ownership Interest therein shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Indenture Trustee for any action taken, suffered or omitted by it as Indenture Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and expenses based on time expended, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by any Issuer, or to any suit instituted by the Indenture Trustee, or to any suit instituted by any Noteholder, or group of Noteholders, holding in the aggregate at least 25% of the Aggregate Series Principal Balance, or to any suit instituted by any Noteholder for the enforcement of the payment of the principal of or interest on any Note on or after the Maturity of such Note.
Section 4.14    Waiver of Stay or Extension Laws.
Each Issuer covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim to take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; each Issuer (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of such law and covenants that it will not hinder, delay or impede the exercise of any power herein granted to the Indenture Trustee, but will suffer and permit the exercise of every such power as though no such law had been enacted.
Section 4.15    Sale of Collateral.
(a)    The power to effect any public or private sale of any portion of the Collateral Pool pursuant to Section 4.03 or Section 4.04 shall not be exhausted by any one or more sales as to any portion of the Collateral remaining unsold, but shall continue unimpaired until either the entirety of the Collateral Pool shall have been sold or all amounts payable on the Notes, and under this Indenture with respect thereto shall have been paid.  The Indenture Trustee may from time to time postpone any sale by public announcement made at the time and place of such sale.  The Indenture Trustee hereby expressly waives its right to any amount fixed by law as compensation for any such sale but such waiver does not apply to any amounts to which the Indenture Trustee is otherwise entitled under Section 5.04.

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(b)    Subject to Section 4.15(c), the Indenture Trustee shall not sell the Collateral included in the Collateral Pool pursuant to Section 4.03 or Section 4.04, unless:
(i)    the Requisite Global Majority consents to or directs the Indenture Trustee to make the related sales; or
(ii)    the proceeds of such liquidation would be greater than or equal to the Aggregate Series Principal Balance plus all accrued and unpaid interest.
The foregoing provisions of this Section 4.15 shall not preclude or limit the ability of the Indenture Trustee or its designee to purchase all or any portion of the Collateral at any sale, public or private.
(c)    In connection with a sale of all or any portion of the Collateral Pool:
(i)    any Holder or Holders of Notes may bid for and purchase the property offered for sale, and upon compliance with the terms of sale may hold, retain and possess and dispose of such property, without further accountability, and may, in paying the purchase money therefor, deliver any Outstanding Notes or claims for interest thereon in lieu of cash up to the amount which shall, upon distribution of the net proceeds of such sale, be payable thereon, and such Notes, in case the amounts so payable thereon shall be less than the amount due thereon, shall be returned to the Holders thereof after being appropriately stamped to show such partial payment;
(ii)    the Indenture Trustee shall execute and deliver, without recourse, an appropriate instrument of conveyance transferring its interest in any portion of the Collateral Pool in connection with a sale thereof;
(iii)    the Indenture Trustee is hereby irrevocably appointed the agent and attorney-in-fact of the Issuers to transfer and convey any such Issuer’s interest in any portion of the Collateral Pool in connection with a sale thereof, and to take all action necessary to effect such sale; and
(iv)    no purchaser or transferee at such a sale shall be bound to ascertain the Indenture Trustee’s authority, inquire into the satisfaction of any conditions precedent or see to the application of any moneys.
For the avoidance of doubt, no Collateral may be sold pursuant to this Section 4.15 unless an Event of Default has occurred and is continuing and the Notes have been accelerated.
Section 4.16    Action on Notes.
The Indenture Trustee’s right to seek and recover judgment on the Notes or under this Indenture shall not be affected by the seeking, obtaining or application of any other relief under or with respect to this Indenture.  Neither the lien of the Mortgages and this Indenture nor any rights or remedies of the Indenture Trustee, any Series Enhancer or the Noteholders shall be impaired by 

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the recovery of any judgment by the Indenture Trustee against any Issuer or by the levy of any execution under such judgment upon any portion of the Collateral Pool.
ARTICLE V     
 
THE INDENTURE TRUSTEE
Section 5.01    Certain Duties and Responsibilities.
The Issuers hereby irrevocably constitute and appoint the Indenture Trustee, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in place and stead of the Issuers and in the name of the Issuers or in its own name or in the name of a nominee, from time to time in the Indenture Trustee’s discretion, to take any and all appropriate action and to execute any and all documents and instruments which may be necessary or desirable to accomplish the purposes of this Indenture, all as set forth in this Section.  Such designation shall not impose upon the Indenture Trustee, or release or diminish, the Issuer’s obligations under any of the Transaction Documents.  The Indenture Trustee shall also perform all of the duties and obligations required of it under the Property Management Agreement (it being understood and agreed that all limitations of liabilities, indemnities, exculpatory provisions and similar matters set forth herein shall apply to the Indenture Trustee’s performance of such duties and obligations).
(h)    The rights, duties and liabilities of the Indenture Trustee in respect of this Indenture shall be as follows:
(iii)    The Indenture Trustee shall have the full power and authority to do all things not inconsistent with the provisions of this Indenture that it may deem advisable in order to enforce the provisions hereof or to take any action with respect to a default or an Event of Default hereunder, or to institute, appear in or defend any suit or other proceeding with respect hereto, or to protect the interests of the Noteholders.  The Issuers shall prepare and file or cause to be filed, at the applicable Issuers’ expense, a UCC Financing Statement and any continuation statements, describing such Issuers as debtor, the Indenture Trustee as secured party and the Collateral included in the Collateral Pool as the collateral, in all appropriate locations in the State of Delaware promptly following the initial issuance of each Series of Notes, and within six months prior to each fifth anniversary of the original filing.  The Indenture Trustee is hereby authorized and obligated to make, at the expense of the applicable Issuers, all required filings and refilings with respect to which the Indenture Trustee receives written direction from an Issuer, necessary to preserve the liens created by the Mortgages and this Indenture as provided therein and herein.  The Indenture Trustee shall not be required to take any action to exercise or enforce the trusts hereby created which, in the opinion of the Indenture Trustee, shall be likely to involve expense or liability to the Indenture Trustee, unless the Indenture Trustee shall have received an agreement satisfactory to it in its reasonable discretion to indemnify it against such liability and expense.  Except as otherwise expressly provided herein, the Indenture Trustee shall not be required to ascertain or inquire as to the performance or observance of any of the covenants or 

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agreements contained herein, or in any other instruments to be performed or observed by the Issuers.
(iv)    Subject to the other provisions of this Article V, the Indenture Trustee, upon receipt of all resolutions, certificates, statements, opinions, reports, documents, orders or other instruments furnished to the Indenture Trustee that are specifically required to be furnished pursuant to any provisions of this Indenture, shall examine them to determine whether they are on their face in the form required by this Indenture to the extent expressly set forth herein.  If any such instrument is found on its face not to conform to the requirements of this Indenture in a material manner, the Indenture Trustee shall take such action as it deems appropriate to have the instrument corrected.  The Indenture Trustee shall not incur any liability in acting upon any signature, notice, request, consent, certificate, opinion, or other instrument reasonably believed by it to be genuine.  In administering the trusts hereunder, the Indenture Trustee may execute any of the trusts or powers hereunder directly or through its agents or attorneys; provided, that it shall remain liable for the acts of all such agents and attorneys who are not parties to the Transaction Documents operating in their named capacities under such Transaction Documents.  The Indenture Trustee may, at its own expense (except as otherwise provided in Section 5.04), consult with counsel, accountants and other professionals to be selected and employed by it, and the Indenture Trustee shall not be liable for anything done, suffered or omitted in good faith by it in accordance with the advice of any such Person nor for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Indenture Trustee was negligent in ascertaining the pertinent facts.
(v)    The Indenture Trustee shall not, except as otherwise provided in Section 5.01(a)(i), have any duty to make, arrange or ensure the completion of any recording, filing or registration of any instrument or other document (including any UCC Financing Statements), or any amendments or supplements to any of said instruments or to determine if any such instrument or other document is in a form suitable for recording, filing or registration, and the Indenture Trustee shall not have any duty to make, arrange or ensure the completion of the payment of any fees, charges or taxes in connection therewith.
(vi)    Whenever in performing its duties hereunder, the Indenture Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Indenture Trustee may, in the absence of bad faith on the part of the Indenture Trustee, rely upon (unless other evidence in respect thereof be specifically prescribed herein) an Officer’s Certificate of the Issuers or the Property Manager and such Officer’s Certificate shall be full warrant to the Indenture Trustee for any action taken, suffered or omitted by it on the faith thereof.
(vii)    Except in its capacity as successor to the Property Manager, the Indenture Trustee shall not have any obligations to see to the payment or discharge of any liens (other than the liens of this Indenture and the Mortgages) upon the Collateral included in the Collateral Pool, or to see to the application of any payment of the principal of or interest on any Note secured thereby or to the delivery or transfer to any Person of any 

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property released from any such lien, or to give notice to or make demand upon any mortgagor, mortgagee, trustor, beneficiary or other Person for the delivery or transfer of any such property.  The Indenture Trustee (and any successor trustee or co-trustee in its individual capacity) nevertheless agrees that it will, at its own cost and expense, promptly take all action as may be necessary to discharge any liens or encumbrances on the Collateral included in the Collateral Pool, arising as a result of the Indenture Trustee (or such successor trustee or co-trustee, as the case may be) acting negligently, in bad faith or with willful misconduct in its capacity as Indenture Trustee (or such successor trustee or co-trustee, as the case may be).
(viii)    The Indenture Trustee shall not be concerned with or accountable to any Person for the use or application of any deposited moneys or of any property or securities or the proceeds thereof that shall be released or withdrawn and distributed in accordance with the provisions hereof or the proceeds thereof that shall be released from the lien hereof or thereof in accordance with the provisions hereof and the Indenture Trustee shall not have any liability for the acts of other parties that are not in accordance with the provisions hereof.
(i)    The rights, duties and liabilities of the Indenture Trustee in respect of the Collateral Pool and this Indenture, in addition to those set forth in Section 5.01(a), shall be as follows:
(ii)    except during the continuance of an Event of Default with respect to the Notes, the Indenture Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Indenture Trustee; and
(iii)    the Indenture Trustee may, in the absence of bad faith on its part, conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Indenture Trustee and conforming to the requirements of this Indenture or any other Transaction Document, as applicable; but in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Indenture Trustee, the Indenture Trustee shall be under a duty to examine the same to determine whether or not they conform on their face to the requirements of this Indenture, to the extent expressly set forth herein.
(j)    Subject to Section 4.12, in case an Event of Default known to the Indenture Trustee with respect to the Notes has occurred and is continuing, the Indenture Trustee shall exercise such of the rights and powers vested in it by this Indenture and the Mortgages, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of his own affairs.
(k)    No provision of this Indenture shall be construed to relieve the Indenture Trustee from liability for its own negligent action, its own negligent failure to act, or its own fraud, bad faith or willful misconduct, except that:

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(ii)    this subsection shall not be construed to limit the effect of subsections (a), (b) or (c) of this Section;
(iii)    the Indenture Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Indenture Trustee was negligent in ascertaining the pertinent facts;
(iv)    the Indenture Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the directions of any applicable party pursuant to a Transaction Document that is entitled to give such directions under this Indenture or any other Transaction Document relating to the time, method and place of conducting any proceeding for any remedy available to the Indenture Trustee, or exercising or omitting exercise any trust or power conferred upon the Indenture Trustee, under this Indenture with respect to the Notes; and
(v)    No provision of this Indenture shall require the Indenture Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers contemplated hereunder, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity satisfactory to it against such risk or liability is not reasonably assured to it (if, in the Indenture Trustee's sole determination, the amount of such funds or risk or liability is reasonably expected not to exceed the amount payable to the Indenture Trustee pursuant to Section 2.11 on the immediately succeeding Payment Date, as applicable, net of the amounts specified in Section 5.04, the Indenture Trustee shall be deemed to be reasonably assured of such repayment) unless such risk or liability relates to the performance of its incidental services, including mailing of notices under Article 4, under this Indenture (it being expressly acknowledged and agreed without implied limitation that the enforcement or exercise of rights and remedies under Article IV and/or commencement of or participation in any legal proceeding does not constitute "incidental services").
(vi)    In no event shall the Indenture Trustee be liable for special, punitive, indirect or consequential loss or damage (including lost profits) even if the Indenture Trustee has been advised of the likelihood of such damages and regardless of such action.
(vii)    For all purposes under this Indenture, the Indenture Trustee shall not be deemed to have notice or knowledge of any default or Event of Default unless a Responsible Officer assigned to and working in the Corporate Trust Office has actual knowledge thereof or unless written notice of any event which is in fact such an Event of Default or default is received by the Indenture Trustee at the Corporate Trust Office, and such notice references the Notes generally, the Issuers or this Indenture. For purposes of determining the Indenture Trustee's responsibility and liability hereunder, whenever reference is made in this Indenture to such an Event of Default or a default, such reference shall be construed to refer only to such an Event of Default or Default of which the Indenture Trustee is deemed to have notice as described in this Section 5.01(g). 

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(viii)    The Indenture Trustee shall not be liable for the actions or omissions of the Property Manager, the Issuers, the Special Servicer, the Back-up Manager and without limiting the foregoing, the Indenture Trustee shall not be under any obligation to monitor, evaluate or verify compliance by any of such parties, or to verify or independently determine the accuracy of information received by the Indenture Trustee from any of them.
(ix)    In the event the Bank is also acting in the capacity of Authenticating Agent, 17g-5 Information Provider, Note Registrar, Collateral Agent or Securities Intermediary, the rights, protections, benefits, immunities and indemnities afforded to the Indenture Trustee pursuant to this Article V shall also be afforded to the Bank acting in such capacities.
(x)    The Indenture Trustee shall not be responsible for delays or failures in performance resulting from acts or circumstances beyond its control (such circumstances include but are not limited to acts of God, strikes, lockouts, riots, acts of war, or loss or malfunctions of utilities or communications services).
(xi)    The Indenture Trustee shall obtain, verify, and record information that identifies individuals or entities that establish a relationship or open an account with the Indenture Trustee. The Indenture Trustee shall ask for the name, address, tax identification number and other information that shall allow the Indenture Trustee to identify the individual or entity who is establishing the relationship or opening the account. The Indenture Trustee may also ask for formation documents such as articles of incorporation, an offering memorandum, or other identifying documents to be provided. In accordance with the U.S. Unlawful Internet Gambling Act, the Issuer may not use the Series Accounts or other Citibank, N.A. facilities in the United States to process restricted transactions as such term is defined in U.S. 31 CFR Section 132.2(y). Therefore, neither the Issuer nor any person who has an ownership interest in or control over the Series Accounts may use them to process or facilitate payments for prohibited internet gambling transactions.
(xii)    Notwithstanding anything to the contrary herein, any and all communications (both text and attachments) by or from the Indenture Trustee (other than information required by any Rating Agency) that the Indenture Trustee in its sole discretion deems to contain confidential, proprietary and/or sensitive information and are sent by electronic mail will be encrypted. The recipient of the email communication will be required to complete a one-time registration process. Information and assistance on registering and using the email encryption technology can be found at the Indenture Trustee's secure website www.citigroup.net/informationsecurity/dataprotect.htm or by calling (866) 535-2504 (in the U.S.) or (904) 954-6181 at any time.
(xiii)    In making or disposing of any investment permitted by this Indenture, the Indenture Trustee is authorized to deal with itself (in its individual capacity) or with any one or more of its Affiliates, in each case on an arm's-length basis, whether it or such Affiliate is acting as a subagent of the Indenture Trustee or for any third person or dealing as principal for its own account. If otherwise qualified, obligations of the Bank or any of its Affiliates shall qualify as Eligible Investments hereunder.

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(xiv)    The Indenture Trustee or its Affiliates are permitted to receive additional compensation that could be deemed to be in the Indenture Trustee's economic self-interest for (i) serving as investment advisor, administrator, shareholder, servicing agent, custodian or subcustodian with respect to certain of the Eligible Investments, (ii) using Affiliates to effect transactions in certain Eligible Investments and (iii) effecting transactions in certain Eligible Investments. Such compensation is not payable or reimbursable under Section 5.04 of this Indenture.
The Indenture Trustee shall perform the duties and obligations specified to be performed by the Indenture Trustee in the Property Management Agreement and in the other Transaction Documents.

Section 5.02    Notice of Defaults.
The Indenture Trustee, promptly but not later than two (2) Business Days after a Responsible Officer of the Indenture Trustee acquires actual knowledge of the occurrence of any default under this Indenture, shall notify the Issuers, the Noteholders and the Rating Agencies of any such default (a “Notice of Default”), unless all such defaults known to the Indenture Trustee shall have been cured before the giving of such notice or unless the same is rescinded and annulled, or waived in accordance with the terms hereof.  For the purpose of this Section 5.02, the term “default” means any event which is, or after the giving of notice or lapse of time or both would become, an Event of Default.
Section 5.03    Certain Rights of Indenture Trustee.
Subject to the provisions of Section 5.01, in connection with this Indenture:
(m)    the Indenture Trustee may request and rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties as may be required by such party or parties pursuant to the terms of this Indenture or any other Transaction Document, as applicable;
(n)    any request or direction of an Issuer mentioned herein shall be sufficiently evidenced by an Issuer Request or Issuer Order and any resolution of the board of directors of an Issuer may be sufficiently evidenced by a Resolution;
(o)    whenever in the administration of this Indenture the Indenture Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Indenture Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, rely upon an Officer’s Certificate;
(p)    the Indenture Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel rendered thereby shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;

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(q)    the Indenture Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any applicable party pursuant to a Transaction Document, the Requisite Global Majority or of any of the Noteholders pursuant to this Indenture, unless the Requisite Global Majority or such Noteholders shall have offered to the Indenture Trustee reasonable security or indemnity against the costs, expenses and liabilities that might be incurred by it in compliance with such request or direction and such Requisite Global Majority, such Noteholders or such party is entitled to make such request or provide such direction pursuant to the terms of this Indenture or such Transaction Document; provided, that, nothing contained herein shall, however, relieve the Indenture Trustee of the obligation, upon the occurrence of an Event of Default of which a Responsible Officer of the Indenture Trustee shall have actual knowledge, and such Event of Default having not been cured, to exercise such of the rights and powers vested in it by this Indenture, and to use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs;
(r)    the Indenture Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, coupon, other evidence of indebtedness or other paper or document believed by it to be genuine, but the Indenture Trustee in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Indenture Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Issuer, personally or by agent or attorney;
(s)    the Indenture Trustee may, at its own expense (except as otherwise provided in Section 5.04), execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys of the Indenture Trustee; provided, that it shall remain liable for the acts of all such attorneys and agents who are not parties to the Transaction Documents operating in their named capacities under such Transaction Documents;
(t)    the Indenture Trustee shall not be required to provide any surety or bond of any kind in connection with the execution or performance of its duties hereunder;
(u)    except with respect to the representations made by it in Section 5.06, the Indenture Trustee shall not make any representations as to the validity or sufficiency of this Indenture;
(v)    the Indenture Trustee shall not at any time have any responsibility or liability with respect to the legality, validity or enforceability of the Collateral included in the Collateral Pool other than its failure to act in accordance with the terms of this Indenture or the Property Management Agreement;
(w)    The Indenture Trustee shall not be personally liable for any action taken, suffered or omitted by it in good faith and believed by it to be authorized or within the discretion or the rights and powers conferred upon it by this Indenture; 

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(x)    Any request or direction of an Issuer mentioned herein shall be sufficiently evidenced by an Issuer Request or Issuer Order, as the case may be; and
(y)    The right of the Indenture Trustee to perform any discretionary act enumerated in this Indenture shall not be construed as a duty, and the Indenture Trustee shall not be answerable for other than its own negligence or willful misconduct in the performance of such act.
Section 5.04    Compensation; Reimbursement; Indemnification.
(a)    Subject to Section 5.04(b), the applicable Issuers hereby agree:
(1)    to pay or cause to be paid to the Indenture Trustee, subject to and in accordance with the terms of this Indenture, monthly, the related Indenture Trustee Fee as compensation for all services rendered by it hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust); and
(2)    to reimburse, indemnify or cause to be indemnified and hold harmless the Indenture Trustee and its directors, officers, employees, agents, Affiliates and Control Persons for any loss, liability, claim, expense or disbursements (including without limitation costs and expenses of litigation, and of investigation, reasonable counsel fees, damages, judgments and amounts paid in settlement): (A) incurred in connection with any act (including any actions taken by the Indenture Trustee or its agents pursuant to Article IV) or omission on the part of the Indenture Trustee with respect to this Indenture (and the transactions contemplated in connection herewith), any other Transaction Documents, the Collateral Pool (including but not limited to protecting its interest in such Collateral or collecting any amount payable thereunder or in enforcing its rights with respect to such Collateral, whether or not any legal proceeding is commenced hereunder or under the Mortgages) or the Notes (in each case, other than any loss, liability or expense incurred by reason of willful misfeasance, bad faith or negligence in the performance of the Indenture Trustee’s obligations or duties under this Indenture); (B) arising out of or in any way relating to any one or more of the following: (i) any accident, injury to or death of persons or loss of or damage to property occurring in, on or about any Mortgaged Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (ii) any use, nonuse or condition in, on or about any Mortgaged Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (iii) performance of any labor or services or the furnishing of any materials or other property in respect of any Mortgaged Property or any part thereof; and (iv) any failure of any Mortgaged Property to be in compliance with any Applicable Laws; or (C) arising out of or in any way relating to any tax on the making and/or recording of any Mortgage; provided, that any amounts to be paid by the Issuer in respect of such indemnification shall be paid solely in accordance with, and subject to, the priority of payment set forth in Section 2.11.

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With respect to any third party claim:
(i)    the Indenture Trustee shall give the Issuers written notice thereof promptly after the Indenture Trustee shall have knowledge thereof;
(ii)    while maintaining control over its own defense, the Indenture Trustee shall cooperate and consult fully with the Issuers in preparing such defense; and
(iii)    notwithstanding the foregoing provisions of this Section 5.04(a), the Indenture Trustee shall not be entitled to reimbursement out of the Payment Account for settlement of any such claim by the Indenture Trustee entered into without the prior written consent of the applicable Issuers, which consent shall not be unreasonably withheld.
The provisions of this Section 5.04(a) shall survive the termination of this Indenture and the resignation or termination of the Indenture Trustee.
The Indenture Trustee agrees to fully perform its duties under this Indenture notwithstanding any failure on the part of any of the Issuers to make any payments, reimbursements or indemnifications to the Indenture Trustee pursuant to this Section 5.04(a); provided, however, that (subject to Sections 5.04(b) and 5.04(c)) nothing in this Section 5.04 shall be construed to limit the exercise by the Indenture Trustee of any right or remedy permitted under this Indenture in the event of any such Issuer’s failure to pay any sums due the Indenture Trustee pursuant to this Section 5.04.
(b)    The obligations of the Issuers set forth in Section 5.04(a) are nonrecourse obligations solely of the Issuers and will be payable only from the Collateral Pool in accordance with and subject to the priority set forth in Section 2.11.  The Indenture Trustee hereby agrees that it has no rights or claims against the Issuers directly and shall only look to the Collateral Pool to satisfy any Issuer’s obligations under Section 5.04(a).  Notwithstanding anything to the contrary herein, the Indenture Trustee hereby agrees not to file or join in filing any petition in bankruptcy or commence any similar proceeding in respect of any Issuer.
(c)    The Indenture Trustee shall not institute any proceeding seeking the enforcement of any lien against the Collateral Pool unless (i) such proceeding is in connection with a proceeding in accordance with Article IV hereof for enforcement of the lien of the Mortgages and this Indenture for the benefit of the Noteholders after the occurrence of an Event of Default (other than an Event of Default due solely to a breach of this Section 5.04) and a resulting declaration of acceleration of such Notes that has not been rescinded and annulled, or (ii) such proceeding does not and will not result in or cause a sale or other disposition of the Collateral included in the Collateral Pool.
Section 5.05    Corporate Indenture Trustee Required; Eligibility.
The Issuers hereby agree that there shall at all times be an Indenture Trustee hereunder which shall be a bank (within the meaning of Section 2(a)(5) of the 1940 Act) organized and doing business under the laws of the United States or any State thereof, authorized under such laws to 

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exercise corporate trust powers, having aggregate capital, surplus and undivided profits of at least $100,000,000, and subject to supervision or examination by Federal or State authority, the long-term unsecured debt of which is rated not lower than “A-” by S&P (and no lower than an equivalent rating by KBRA, if then rated by KBRA) and the short term debt of which is rated no lower than “A-1 by S&P (and no lower than an equivalent rating by KBRA if then rated by KBRA), or another institution the retention of which satisfies the Affirmative Rating Condition.  If such bank publishes reports of condition at least annually, pursuant to law or to the requirements of said supervising or examining authority, then for the purposes of this Section, the combined capital, surplus and undivided profits of such bank shall be deemed to be its combined capital, surplus and undivided profits as set forth in its most recent report of condition so published.  The Indenture Trustee shall at all times meet the requirements of Section 26(a)(1) of the 1940 Act and shall in no event be an Affiliate of any Issuer or an Affiliate of any Person involved in the organization or operation of any Issuer or be directly or indirectly controlled by any Issuer.  If at any time a Responsible Officer of the Indenture Trustee becomes aware that the Indenture Trustee has ceased to be eligible in accordance with the provisions of this Section, the Indenture Trustee shall resign immediately in the manner and with the effect hereinafter specified in this Article.
Section 5.06    Authorization of Indenture Trustee.
The Indenture Trustee represents and warrants as to itself: that it is duly authorized under applicable federal law, its charter and its by-laws to execute and deliver this Indenture, and to perform its obligations hereunder, including, without limitation, that (assuming it is enforceable against the other parties hereto) this Indenture constitutes its valid and binding obligation enforceable against it in accordance with the Indenture’s terms (subject to applicable bankruptcy and insolvency laws and general principles of equity), that it is duly authorized to accept the Grant to it of the Collateral included in the Collateral Pool and is authorized to authenticate any Series of Notes, and that all corporate action necessary or required therefor has been duly and effectively taken or obtained and all federal and state governmental consents and approvals required with respect thereto have been obtained.
Section 5.07    Merger, Conversion, Consolidation or Succession to Business.
Any corporation, bank, trust company or association into which the Indenture Trustee may be merged or converted or with which it may be consolidated, or any corporation, bank, trust company or association resulting from any merger, conversion or consolidation to which the Indenture Trustee shall be a party, or any corporation, bank, trust company or association succeeding to all or substantially all the corporate trust business of the Indenture Trustee, shall be the successor of the Indenture Trustee hereunder; provided, that such corporation, bank, trust company or association shall be otherwise qualified and eligible under this Article, without the execution or filing of any paper or any further act on the part of any of the parties hereto.
Section 5.08    Resignation and Removal; Appointment of Successor.
(d)    No resignation or removal of the Indenture Trustee and no appointment of a successor Indenture Trustee pursuant to this Article shall become effective until (i) the acceptance of appointment by the successor Indenture Trustee in accordance with the applicable requirements 

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of Section 5.09, (ii) payment to the predecessor Indenture Trustee of all unpaid fees and expenses and (iii) the Affirmative Rating Condition is satisfied.
(e)    Subject to Section 5.08(a), the Indenture Trustee may be removed at any time with respect to the Notes by the Requisite Global Majority and notice of such action by the Noteholders shall be delivered to the Indenture Trustee, the Issuers and the Rating Agencies.
(f)    If at any time:
(i)    the Indenture Trustee shall cease to be eligible under Section 5.05, or the representations of the Indenture Trustee in Section 5.06 shall prove to be untrue in any material respect, and the Indenture Trustee shall fail to resign after written request therefor by the Issuers or the Noteholders of 10% of the Aggregate Series Principal Balance; or
(ii)    the Indenture Trustee shall consent to the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings of or relating to the Indenture Trustee or all or substantially all of its property, or a decree or order of a court or agency or supervisory authority having jurisdiction in the premises for the appointment of a conservator or receiver or liquidator in any insolvency, readjustment of debt, marshalling of assets and liabilities or similar proceedings, or for the winding-up or liquidation of its affairs, shall have been entered against the Indenture Trustee; or the Indenture Trustee shall admit in writing its inability to pay its debts as they become due or fail to pay its debts generally as they become due, file a petition to take advantage of any applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors or voluntarily suspend payment of its obligations; or
(iii)    the Indenture Trustee otherwise shall become incapable of acting;
then, in any such case, (i) the Issuers, may by written notice remove the Indenture Trustee, or (ii) subject to Section 4.13, any Noteholder may, on its own behalf and on behalf of all others similarly situated, petition any court of competent jurisdiction for the removal of the Indenture Trustee and the appointment of a successor Indenture Trustee.
(g)    If the Indenture Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Indenture Trustee for any reason (including removal), the Issuers, with the consent of the Requisite Global Majority, shall promptly appoint a successor Indenture Trustee, who shall comply with the applicable requirements of Section 5.09 and be eligible under Section 5.05.  If, within 60 days after such resignation, or incapacity, or the occurrence of such vacancy, a successor Indenture Trustee shall not have been appointed by the Issuers and shall not have accepted such appointment in accordance with the applicable requirements of Section 5.09, then a successor Indenture Trustee shall be appointed by act of the Requisite Global Majority or by the Issuers delivered to the Issuers or the Noteholders, as applicable, and the retiring Indenture Trustee, and the successor Indenture Trustee so appointed shall, forthwith upon its acceptance of such appointment in accordance with the applicable requirements of Section 5.09, 

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become the successor Indenture Trustee with respect to the Notes.  If the Indenture Trustee shall resign pursuant to this Section 5.08, then such resigning Indenture Trustee must pay all costs and expenses associated with the transfer of its duties.  If the Indenture Trustee shall be removed pursuant to this Section 5.08, then the party requesting such removal of the Indenture Trustee shall pay all costs and expenses associated with the transfer of its duties.
If, within 120 days after such resignation, removal or incapacity, or the occurrence of such vacancy, no successor Indenture Trustee shall have been so appointed and accepted appointment in the manner required by Section 5.09, any Issuer, the Requisite Global Majority or the resigning Indenture Trustee may, on its own behalf, petition any court of competent jurisdiction for the appointment of a successor Indenture Trustee.
(h)    The Issuers shall give notice of any resignation or removal of the Indenture Trustee and the appointment of a successor Indenture Trustee by giving notice of such event to the Rating Agencies and the Noteholders.  Each notice shall include the name of the successor Indenture Trustee and the address of its corporate trust office.
Section 5.09    Acceptance of Appointment by Successor.
In case of the appointment hereunder of a successor Indenture Trustee, the successor Indenture Trustee so appointed shall execute, acknowledge and deliver to the Issuers and to the retiring Indenture Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Indenture Trustee shall become effective and such successor Indenture Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Indenture Trustee; but, on the request of the Issuers or the successor Indenture Trustee, such retiring Indenture Trustee shall, upon payment of its fees, execute and deliver an instrument transferring to such successor Indenture Trustee all the rights, powers and trusts of the retiring Indenture Trustee, shall duly assign, transfer and deliver to such successor Indenture Trustee all property and money held by such retiring Indenture Trustee hereunder, and shall take such action as may be requested by the Issuers to provide for the appropriate interest in the Collateral Pool (including, without limitation, the Mortgages) to be vested in such successor Indenture Trustee, but shall not be responsible for the recording of such documents and instruments as may be necessary to give effect to the foregoing.
Upon request of any such successor Indenture Trustee, the Issuers shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor Indenture Trustee all such rights, powers and trusts referred to in this Section.
No successor Indenture Trustee shall accept its appointment unless at the time of such acceptance such successor Indenture Trustee shall be qualified and eligible under this Article.
Section 5.10    Unclaimed Funds.
The Indenture Trustee is required to hold any payments received by it with respect to the Notes that are not paid to the Noteholders in trust for the Noteholders.  Notwithstanding the foregoing, at the expiration of three years following the Final Payment Date for any Class of Notes 

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of any Series, any moneys set aside in accordance with Section 2.11(b) for payment of principal, interest and other amounts on such Notes remaining unclaimed by any lawful owner thereof, and, to the extent required by applicable law, any accrued interest thereon shall be remitted to the applicable Issuers, as their interest may appear, to be held in trust by such Issuers for the benefit of the applicable Noteholder until distributed in accordance with applicable law, and all liability of the Indenture Trustee with respect to such money shall thereupon cease; provided, that the Indenture Trustee, before being required to make any such remittance, may, at the expense of the applicable Noteholder, payable out of such unclaimed funds, to the extent permitted by applicable law, and otherwise at the expense of the applicable Issuers payable out of the Collateral Pool (in accordance with and subject to the priority set forth in Section 2.11), cause to be published at least once but not more than three times in two newspapers in the English language customarily published on each Business Day and of general circulation in New York, New York, a notice to the effect that such moneys remain unclaimed and have not been applied for the purpose for which they were deposited, and that after a date specified therein, which shall be not less than 30 days after the date of first publication of said notice, any unclaimed balance of such moneys then remaining in the hands of the Indenture Trustee will be paid to the applicable Issuers upon their written directions to be held in trust for the benefit of the applicable Noteholder until distributed in accordance with applicable law.  Any successor to an Issuer through merger, consolidation or otherwise or any recipient of substantially all the assets of an Issuer in a liquidation of such Issuer shall remain liable for the amount of any unclaimed balance paid to such Issuer pursuant to this Section 5.10.
Section 5.11    Illegal Acts.
No provision of this Indenture or any amendment or supplement hereto shall be deemed to impose any duty or obligation on the Indenture Trustee to do any act in the performance of its duties hereunder or to exercise any right, power, duty or obligation conferred or imposed on it, which under any present or future law shall be unlawful, or which shall be beyond the corporate powers, authorization or qualification of the Indenture Trustee.
Section 5.12    Communications by the Indenture Trustee.
The Indenture Trustee, if any principal of or interest on any Notes due and payable hereunder is not paid, shall send to the applicable Issuers, within one (1) Business Day after the Maturity thereof, a written demand for payment thereon.
Section 5.13    Separate Indenture Trustees and Co-Trustees.
(a)    Notwithstanding any other provisions of this Indenture, at any time, for the purpose of meeting legal requirements applicable to it in the performance of its duties hereunder, the Indenture Trustee shall have the power to, and shall execute and deliver all instruments to, appoint one or more Persons to act as separate trustees or co-trustees hereunder, jointly with the Indenture Trustee, of any portion of the Collateral Pool subject to this Indenture, and any such Persons shall be such separate trustee or co-trustee, with such powers and duties consistent with this Indenture as shall be specified in the instrument appointing such Person but without thereby releasing the Indenture Trustee from any of its duties hereunder.  If the Indenture Trustee shall reasonably request the Issuers to do so, the Issuers shall join with the Indenture Trustee in the 

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execution of such instrument, but the Indenture Trustee shall have the power to make such appointment without making such request.  A separate trustee or co-trustee appointed pursuant to this Section 5.13 need not meet the eligibility requirements of Section 5.05.
(b)    Every separate trustee and co-trustee shall, to the extent not prohibited by law, be subject to the following terms and conditions:
(i)    the rights, powers, duties and obligations conferred or imposed upon the Indenture Trustee shall be conferred or imposed upon and exercised or performed by the Indenture Trustee and such separate or co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized to act separately without the Indenture Trustee joining in such act), as shall be provided in the appointing instrument, except to the extent that under any law of any jurisdiction in which any particular act is to be performed, the Indenture Trustee shall be incompetent or unqualified to perform such act, in which event such rights, powers, duties and obligations shall be exercised and performed by such separate trustee or co-trustee at the direction of the Indenture Trustee;
(ii)    all powers, duties, obligations and rights conferred upon the Indenture Trustee, in respect of the custody of all cash deposited hereunder shall be exercised solely by the Indenture Trustee; and
(iii)    the Indenture Trustee may at any time by written instrument accept the resignation of or remove any such separate trustee or co-trustee, and, upon the reasonable request of the Indenture Trustee, the Issuers shall join with the Indenture Trustee in the execution, delivery and performance of all instruments and agreements necessary or proper to make effective such resignation or removal, but the Indenture Trustee shall have the power to accept such resignation or to make such removal without making such request.  A successor to a separate trustee or co-trustee so resigning or removed may be appointed in the manner otherwise provided herein.
(c)    (c)    Any notice, request or other writing given to the Indenture Trustee shall be deemed to have been given to each of the then separate trustees and co-trustees, as effectively as if given to each of them.  Every instrument appointing any separate trustee or co-trustee shall refer to this Indenture and the conditions of this Article V.  Every such instrument shall be filed with the Indenture Trustee.  Such separate trustee or co-trustee, upon acceptance of such trust, shall be vested with the estates or property specified in such instruments, jointly with the Indenture Trustee, and the Indenture Trustee shall take such action as may be necessary to provide for (i) the appropriate interest in the Collateral Pool to be vested in such separate trustee or co-trustee, and (ii) the execution and delivery of any transfer documentation or bond powers that may be necessary to give effect to the transfer of the lien of this Indenture and the Mortgages to the co-trustee.  Any separate trustee or co-trustee may, at any time, by written instrument constitute the Indenture Trustee, its agent or attorney-in-fact with full power and authority, to the extent permitted by law, do all lawful acts and things and exercise all discretion authorized or permitted by it, for and on behalf of it and in its name.  If any separate trustee or co-trustee shall be dissolved, become incapable of acting, resign, be removed or die, all the estates, property, rights, powers, trusts, duties and obligations of said separate trustee or co-trustee, so far as permitted by law, shall vest in and be exercised by the 

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Indenture Trustee, without the appointment of a successor to said separate trustee or co-trustee, until the appointment of a successor to said separate trustee or co-trustee is necessary as provided in this Indenture.
(d)    Any notice, request or other writing, by or on behalf of any Noteholder, delivered to the Indenture Trustee shall be deemed to have been delivered to all separate trustees and co-trustees.
(e)    Although co-trustees may be jointly liable, no co-trustee or separate trustee shall be severally liable by reason of any act or omission of the Indenture Trustee or any other such trustee hereunder.
(f)    No appointment of a separate trustee or co-trustee pursuant to this Section 5.13 shall relieve the Indenture Trustee of any of its obligations, duties or responsibilities hereunder in any way or to any degree.
Section 5.14    Representations and Warranties of the Indenture Trustee.
The Indenture Trustee represents and warrants:
(i)    the Indenture Trustee is duly organized and validly existing under the laws of the jurisdiction of its organization;
(ii)    the Indenture Trustee has full power and authority to deliver and perform this Indenture, any Series Supplement and each other Transaction Document to which it is a party and to authenticate the Notes and has taken all necessary action to authorize the execution, delivery and performance by it of this Indenture, each Series Supplement and each other Transaction Document to which it is a party and to authenticate the Notes;
(iii)    each of this Indenture, each Series Supplement and each other Transaction Document to which it is a party has been duly executed and delivered by the Indenture Trustee and constitutes its legal, valid and binding obligation enforceable against it in accordance with its terms (except as such enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws affecting creditors’ rights generally or by general equitable principles, whether considered in a proceeding at law or in equity and by an implied covenant of good faith and fair dealing);
(iv)    the Indenture Trustee meets the eligibility requirements set forth in Section 5.05.
(v)    the Indenture Trustee is duly authorized to accept the Grant to it of the Collateral included in the Collateral Pool, and represents that all corporate action necessary or required therefor has been duly and effectively taken or obtained and all federal and state governmental consents and approvals required with respect thereto have been obtained.

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The Indenture Trustee is hereby authorized to execute any Joinder Agreements with respect to the Custody Agreement in connection with the inclusion of a new Issuer thereunder.
ARTICLE VI     
 
REPORTS TO NOTEHOLDERS
Section 6.01    Reports to Noteholders and Others.
(w)    Based on information with respect to the Mortgage Loans, Mortgaged Properties and Leases provided to the Indenture Trustee by the Property Manager and the Special Servicer pursuant to the Property Management Agreement (and the Indenture Trustee’s calculations based on such information and the Indenture Trustee’s records with respect to the Notes), the Indenture Trustee shall prepare, or cause to be prepared, and make available either in electronic format or by first class mail on each Payment Date, or as soon thereafter as is practicable, to the Issuers, the Initial Purchasers, the Rating Agencies, each Noteholder and any other Person upon the direction of any Issuer a statement in respect of the payments made on such Payment Date setting forth the information set forth in Exhibit B hereto (the “Trustee Report”).  The Indenture Trustee shall promptly make each Trustee Report available via the Indenture Trustee’s internet website to any Noteholder, Note Owner or prospective investor upon receipt by the Indenture Trustee from such person of a certification in the form of Exhibit E-1 or E-2 attached hereto, as applicable, and to the Issuers, designees of the Issuers, the Property Manager, the Special Servicer, the Back-Up Manager, any Sub-Manager, the Rating Agencies and the Initial Purchasers.  The Indenture Trustee’s internet website will be located at “http://www.sf.citidirect.com” or at such other address as the Indenture Trustee shall notify the parties hereto from time to time.  For assistance with the Indenture Trustee’s internet website, Noteholders may call (800) 422-2066.
In connection with providing access to the Indenture Trustee’s internet website, the Indenture Trustee shall require registration and the acceptance of a disclaimer as well as the delivery of a request for information, substantially in the form of Exhibit E-1 or Exhibit E-2, as applicable.  The Indenture Trustee shall not be liable for having disseminated information in accordance with this Indenture.
The Indenture Trustee shall be entitled to rely on and shall not be responsible for the content or accuracy of any information provided by third parties for purposes of preparing the Trustee Report and may affix thereto any disclaimer it deems appropriate in its reasonable discretion (without suggesting liability on the part of any other party hereto).
(x)    Within a reasonable period of time after the end of each calendar year (but in no event more than 60 days following the end of such calendar year), the Indenture Trustee shall prepare, or cause to be prepared, and make available either in electronic format or by first class mail upon request to each Person who at any time during the calendar year was a Noteholder (i) a statement containing the aggregate amount of principal and interest payments on the Notes for such calendar year or applicable portion thereof during which such person was a Noteholder and (ii) such other customary information as the Indenture Trustee deems necessary or desirable for Noteholders to prepare their federal, state and local income tax returns including, without limitation (and to the 

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extent provided to it by the Issuers which shall so cause such information to be provided), the amount of original issue discount accrued on the Notes, if applicable.  The obligations of the Indenture Trustee in the immediately preceding sentence shall be deemed to have been satisfied to the extent that substantially comparable information has been provided by the Indenture Trustee.
Section 6.02    Access to Certain Information.
(z)    The Indenture Trustee shall afford to the Issuers, the Property Manager, the Special Servicer, the Back-Up Manager, the OTS, the FDIC and any other banking or insurance regulatory authority that may exercise authority over any Noteholder, access to any documentation regarding the Collateral Pool within its control that may be required to be provided by this Indenture or by applicable law.  Such access shall be afforded without charge but only upon reasonable prior written request and during normal business hours at the offices of the Indenture Trustee designated by it.
(aa)    The Indenture Trustee shall maintain at its office primarily responsible for administration of the Collateral Pool and shall deliver to the Issuers and, subject to the succeeding paragraph, any Noteholder or Note Owner or Person identified to the Indenture Trustee as a prospective transferee of a Note or an Ownership Interest therein (at the reasonable request and expense of the requesting party), and shall make available on the 17g-5 Website, copies of the following items (to the extent that such items have been delivered to the Indenture Trustee or the Indenture Trustee can cause such items to be delivered to it without unreasonable burden or expense): (i) any private placement memorandum or disclosure document relating to the applicable Notes, in the form most recently provided to the Indenture Trustee by the applicable Issuers or by any Person designated by such Issuers; (ii) this Indenture, the LLC Agreements, the Property Management Agreement, any Property Transfer Agreements and any amendments hereto or thereto; (iii) all reports required to be prepared by, and all reports delivered to, the Indenture Trustee, the Property Manager, the Special Servicer or the Back-Up Manager in such capacities since the Initial Closing Date pursuant to the Property Management Agreement or this Indenture; (iv) all Officer’s Certificates delivered by the Property Manager and the Special Servicer since the Initial Closing Date pursuant to Section 3.13 of the Property Management Agreement and all Officer’s Certificates delivered by the Issuers since the Initial Closing Date pursuant to Section 9.07; (v) all accountants’ reports caused to be delivered by the Property Manager and the Special Servicer since the Initial Closing Date pursuant to Section 3.14 of the Property Management Agreement; (vi) all Determination Date Reports, Special Servicer Reports and Modified Collateral Detail and Realized Loss Reports (each, as defined in the Property Management Agreement) since the Initial Closing Date prepared pursuant to Section 4.01 of the Property Management Agreement; (vii) copies of the Loan Files and the Lease Files, including any and all modifications, waivers and amendments of the terms of each Mortgage Loan or Lease entered into or consented to by the Property Manager or the Special Servicer and delivered to the Indenture Trustee pursuant to Section 3.19 of the Property Management Agreement or otherwise; and (viii) any and all Officer’s Certificates and other evidence to support the Property Manager’s, the Special Servicer’s or the Indenture Trustee’s, as the case may be, determination that any Advance was or, if made, would be a Nonrecoverable Advance.  The Indenture Trustee shall make available copies of any and all of the foregoing items upon request of any party set forth in the previous sentence.  However, the Indenture Trustee shall be permitted to require of such party 

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the payment of a sum sufficient to cover the reasonable costs and expenses of providing such copies as are requested by such party.
If requested by any Noteholder, the Indenture Trustee (to the extent it is able to obtain such information from the Property Manager) shall provide: (i) the most recent inspection report prepared by the Property Manager or the Special Servicer in respect of each Mortgaged Property pursuant to Section 3.12(a) of the Property Management Agreement; (ii) the most recent available operating statement and financial statements of the related Borrower or Tenant collected by the Property Manager or the Special Servicer pursuant to Section 3.12(b) of the Property Management Agreement, together with the accompanying written reports to be prepared by the Property Manager or the Special Servicer, as the case may be, pursuant to Section 3.12(c) of the Property Management Agreement; and (iii) any and all notices and reports with respect to any Mortgaged Property as to which environmental testing is contemplated by Section 10.08.
The Indenture Trustee will make available, upon reasonable advance notice and at the expense of the requesting party, copies of the above items to any Noteholder or Note Owner and to prospective purchasers of Notes; provided, that, as a condition to making such items available, the Indenture Trustee shall require (a) in the case of Noteholders or Note Owners, a confirmation executed by the requesting Person substantially in the form of Exhibit E-1 hereto generally to the effect that such Person is a Noteholder or Note Owner, is requesting the information solely for use in evaluating such Person’s investment in the related Notes and will otherwise keep such information confidential and (b) in the case of a prospective purchaser, confirmation executed by the requesting Person and such Person’s prospective transferor substantially in the form of Exhibit E-2 hereto generally to the effect that such Person is a prospective purchaser of Notes, is requesting the information solely for use in evaluating a possible investment in such Notes and will otherwise keep such information confidential.
(bb)    (i) To the extent that any of the Issuers, the Property Manager, the Special Servicer or the Indenture Trustee is required to provide any information to, or communicate with, any Rating Agency in accordance with its obligations under this Indenture or the Property Management Agreement, or in the event evidence of satisfaction of the Rating Condition is sought, the Issuers, the Property Manager, the Special Servicer or the Indenture Trustee, as applicable (or their respective representatives or advisors), shall provide such information or communication to the 17g-5 Information Provider by e-mail at ratingagencynotice@citi.com with the subject heading of “Spirit Master Funding VII” and with sufficient detail to indicate that such information is required to be posted on the 17g-5 Website. The 17g-5 Information Provider shall upload such information or communication to the 17g-5 Website in a commercially reasonable time following receipt, and after the applicable party has received written notification from the 17g-5 Information Provider (which the 17g-5 Information Provider agrees to provide on a reasonably prompt basis) (which may be in the form of e-mail) that such information has been uploaded to the 17g-5 Website, the applicable party or its representative or advisor shall provide such information to such Rating Agency.
(i)    If any information delivered to the 17g-5 Information Provider is not in electronic format readable and uploadable on the 17g-5 Information Provider’s system or is locked or corrupted or otherwise does not comply with the requirements of the prior 

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sentence, then the 17g-5 Information Provider shall immediately notify the applicable delivering party thereof, whereupon such party shall promptly use reasonable efforts to deliver the subject information in the required format.
(ii)    The information set forth in clauses (a) and (b) shall be made available by the 17g-5 Information Provider on the 17g-5 Website.  The 17g-5 Information Provider shall have no obligation or duty to verify, confirm or otherwise determine whether the information being delivered is accurate, complete, conforms to the transaction, or otherwise is or is not anything other than what it purports to be or whether such information is required to be posted on the 17g-5 Website pursuant to this Agreement or applicable law.  In the event that any information is delivered or posted in error, the 17g-5 Information Provider may remove it from the 17g-5 Website.  The Indenture Trustee and the 17g-5 Information Provider shall not be deemed to have obtained actual knowledge of any information as a result of receipt of such information for purposes of posting such information to the 17g-5 Website or as a result of posting such information to the 17g-5 Website.  The 17g-5 Information Provider shall not be liable for its failure to make any information available on the 17g-5 Website unless such information was delivered in the format required pursuant to Section 6.03(c)(i).
(cc)    In connection with providing access to the 17g-5 Website, the 17g-5 Information Provider may require registration and the acceptance of a disclaimer.  The 17g-5 Information Provider makes no representations or warranties as to the accuracy or completeness of any information being made available on the 17g-5 Website and assumes no responsibility for it.  The 17g-5 Information Provider will not be deemed to have knowledge of any information posted on the 17g-5 Website solely by virtue of such posting.  In addition, the Indenture Trustee and the 17g-5 Information Provider disclaim responsibility for any information for which it is not the original source.
(dd)    Subject to Section 5.01, the Indenture Trustee shall not be liable for any dissemination of information made in accordance with Sections 6.03(a) or (b).
ARTICLE VII     
 
REDEMPTION; SERIES ENHANCEMENT
Section 7.01    Redemption of the Notes.
(ee)    The Notes of each Series shall be subject to optional redemption as provided in clause (b) below unless otherwise specified in the applicable Series Supplement.
(ff)    Unless otherwise specified in a Series Supplement for any Series of Notes, an optional redemption (it being understood that, for purposes of this Section 7.01, the allocation and distribution of Unscheduled Principal Proceeds shall not constitute an optional redemption) with respect to such Series of Notes or any Class thereof shall occur in the following manner:

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(i)    Any such optional redemption of any Series of Notes shall occur on a Payment Date after the Optional Repayment Date for such Series of Notes.  
(ii)    The applicable Issuers shall provide written notice of any such optional redemption to the Indenture Trustee at least ten (10) days prior to its exercise, and such notice shall specify the amount of principal that will be redeemed (the “Principal Redemption Amount”) and the amount of any Make Whole Payment (or similar payment), if any, that will be due in respect of such optional redemption (such amount of principal and Make Whole Payment (or similar payment) with respect to any optional redemption, the “Specified Terms”).  Following receipt of such notice, the Indenture Trustee, shall provide written notice to the Noteholders of the optional redemption of such Notes.  Such notice to Noteholders shall to the extent practicable be mailed no later than five Business Days prior to such Payment Date and shall specify (a) the Specified Terms and (b) in the event that such Payment Date will constitute the Final Payment Date with respect to any Notes, that amounts will be payable on such Payment Date only upon presentation and surrender of such Note and shall specify the place where such Note may be presented and surrendered for such final payment.
(gg)    In the event of any optional redemption with respect to any Notes of any Series, the applicable Issuer(s) will deposit (or cause to be deposited) amounts (other than Available Amounts) that, when combined with the Series Available Amount allocated to such Series on the Payment Date on which such optional redemption occurs, will result in sufficient funds being available in order to pay in full, pursuant to the terms of the applicable Series Supplement, (i) the Principal Redemption Amount with respect to such Notes, (ii) all accrued and unpaid interest on such Notes and (iii) the Make Whole Payment (or any similar payment) payable on such Notes in respect of such optional redemption.  The Indenture Trustee shall treat any amounts so deposited as Series Available Amounts with respect to such Series of Notes, and such amounts shall not be available to make payments with respect to any other Series of Notes or pay any other obligations of any Issuer.   The applicable Issuer(s) shall deposit (or cause to be deposited) amounts (other than Available Amounts) that, when combined with the Available Amount on such Payment Date, will be sufficient in order to pay in full all Collateral Pool Expenses for such Payment Date in accordance with Section 2.11(b).
Section 7.02    Series Enhancement.
To manage any other risks between the Collateral Pool and the Notes of any Series, the applicable Issuers, on or before the related Series Closing Date, may enter into one or more types of Series Enhancement with respect to such Series of Notes, and may from time to time thereafter enter into additional Series Enhancements, in each case so long as the Affirmative Rating Condition is satisfied.  The Series Supplement with respect to such Series of Notes shall specify the form of Series Enhancement and Series Enhancer, if any, and any additional terms with respect thereto.
ARTICLE VIII     
 
SUPPLEMENTAL INDENTURES; AMENDMENTS

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Section 8.01    Supplemental Indentures or Amendments Without Consent of Noteholders.
Without the consent of any Noteholder, upon 20 days’ prior written notice to the Rating Agencies, the parties to each agreement listed below, at any time and from time to time, may enter into one or more indentures supplemental hereto, or one or more amendments hereto or to the Notes, the Property Management Agreement, the Property Transfer Agreements, the Environmental Indemnity Agreement, the Performance Undertaking or any other Transaction Documents, as applicable, for any of the following purposes:
(1)    to correct any typographical error or cure any ambiguity, or to cure, correct, amend or supplement any provision herein or in the Notes, the Property Management Agreement, the Property Transfer Agreements, the Environmental Indemnity Agreement, the Performance Undertaking or any other Transaction Document; provided, that such action shall not adversely affect the interests of the Noteholders in any material respect; provided, that if the Affirmative Rating Condition is satisfied, any such action shall be deemed not to materially adversely affect the interests of any Noteholder;
(2)    to convey, transfer, assign, mortgage or pledge any property to the Indenture Trustee so long as the interests of the Noteholders would not be adversely affected in any material respect;
(3)    to correct any manifestly incorrect description, or amplify the description, of any property subject to the lien of the Mortgages or this Indenture;
(4)    to modify the Indenture, the Property Management Agreement, the Property Transfer Agreements, the Environmental Indemnity Agreement, the Performance Undertaking or any other Transaction Documents as required or made necessary by any change in applicable law, so long as the interests of the Noteholders would not be adversely affected in any material respect; provided, that if the Affirmative Rating Condition is satisfied, any such action shall be deemed not to materially adversely affect the interests of any Noteholder;
(5)    to add to the covenants of any Issuer, or any other party for the benefit of the Noteholders, or to surrender any right or power conferred upon any Issuer under this Indenture, the Property Management Agreement, any Property Transfer Agreement, any Environmental Indemnity Agreement or the Performance Undertaking;
(6)    to add any additional Events of Default hereunder or Servicer Replacement Events (as defined in the Property Management Agreement) under the Property Management Agreement; provided, that such action shall not adversely affect the interests of the Noteholders in any material respect; provided, that if the Affirmative Rating Condition is satisfied, any such action shall be deemed not to materially adversely affect the interests of any Noteholder; or

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(7)    to evidence and provide for the acceptance of appointment by a successor Indenture Trustee, Property Manager, Special Servicer, Collateral Agent, Custodian or Back-Up Manager.
No such supplemental indenture or amendment shall be effective unless the Indenture Trustee shall have first received an Opinion of Counsel to the effect that such amendment will not cause (i) any Class of Notes of any Series that was characterized as debt, as of the applicable Series Closing Dates, to be characterized other than as indebtedness for U.S. federal income tax purposes, (ii) any of the Issuers of any outstanding Series to be treated as an association, a publicly-traded partnership or a taxable mortgage pool taxable as a corporation or (iii) any taxable gain or loss to be recognized by any Noteholder of an outstanding Series.
Section 8.02    Supplemental Indentures With Consent.
Without limiting Section 8.01, with the consent of the Controlling Party of each Series, and 20 days’ prior written notice to the Rating Agencies, the parties to the agreements listed below may enter into one or more indentures supplemental hereto, or one or more amendments hereto or to the Notes, the Property Management Agreement, the Property Transfer Agreements, the Environmental Indemnity Agreement, the Performance Undertaking or any other Transaction Document for the purpose of adding any provisions hereto or thereto, changing in any manner or eliminating any of the provisions hereof or thereof or modifying in any manner the rights of the Noteholders hereunder or thereunder; provided, that no such supplemental indenture or amendment shall be effective unless the Indenture Trustee shall have first received an Opinion of Counsel to the effect that such amendment will not (i) cause any Class of Notes of any Series that was characterized as debt as of the applicable Series Closing Date to be characterized other than as indebtedness for U.S. federal income tax purposes, and (ii) cause any of the Issuers of any outstanding Series to be treated as an association, a publicly-traded partnership or a taxable mortgage pool taxable as a corporation; and provided, further, that no such supplemental indenture or amendment described in this section may, without the consent of the Noteholders of 100% of the Aggregate Series Principal Balance of the Outstanding Notes affected thereby:
(1)    change any Legal Final Payment Date or the Payment Date of any principal, interest or other amount on any Note; 
(2)    reduce the Note Principal Balance of a Note, or the applicable Note Rate;

(3)    authorize the Indenture Trustee to agree to delay the timing of, or reduce the payments to be made on or in respect of, the Mortgage Loans, the Mortgaged Properties or the Leases except as provided in this Indenture, in the Property Management Agreement or in the Property Transfer Agreements, or change the coin or currency in which the principal of any Note or interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or after the applicable Legal Final Payment Date; 

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(4)    reduce the percentage of the then Aggregate Series Principal Balance, the consent of whose Noteholders is required for any such supplemental indenture or amendment, or the consent of whose Noteholders is required for any waiver of defaults under this Indenture and their consequences provided for in this Indenture, or for any other reason under this Indenture; 
(5)    change any obligation of any Issuer to maintain an office or agency in the places and for the purposes specified in the Indenture; 
(6)    except as otherwise expressly provided in this Indenture, in the Property Management Agreement, in any Property Transfer Agreement or in any Mortgage, deprive the Indenture Trustee of the benefit of a first priority security interest in the Collateral; 
(7)    modify Section 2.11; or 
(8)    release from the lien of this Indenture, the applicable Property Transfer Agreement and the applicable Mortgage (except as specifically permitted under this Indenture, the Property Management Agreement or such Mortgage) all or any part of the Collateral Pool.
It shall not be necessary for the consent of the Noteholders under this Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such consent shall approve the substance thereof.  
Notwithstanding anything to the contrary in this Indenture, none of the above-referenced Transaction Documents may be amended without the consent of the Property Manager, the Special Servicer or the Back-Up Manager, as applicable, if such person would be materially adversely affected by such amendment, regardless of whether any such person is a party to such agreement.
Section 8.03    Delivery of Supplements and Amendments.
Promptly after the execution by the Issuers and the Indenture Trustee (and any other party, if required) of any supplemental indenture or amendment pursuant to the provisions hereof, the Indenture Trustee, at the expense of the Issuers payable out of the Collateral Pool pursuant to Section 5.04, shall furnish a notice setting forth in general terms the substance of such supplemental indenture or amendment to the Rating Agencies and to each Noteholder at the address for such Noteholder set forth in the Note Register.
Section 8.04    Series Supplements.
(e)    For purposes of this Article VIII, a Series Supplement executed in accordance with the provisions of Section 2.04(c) shall not be considered an amendment or supplemental indenture for the purposes of this Article VIII.  Accordingly, any Series Supplement executed in accordance with the provisions of Section 2.04(c) may amend, modify or supplement this Indenture 

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and the Issuers and the other parties thereto may amend, modify or supplement any of the Transaction Documents in connection with any such New Issuance, in each case without the consent of the Noteholders; provided, that no such amendment, modification or supplement may, without the consent of the holders of 100% of the Aggregate Series Principal Balance affected thereby: 
(5)    change the Legal Final Payment Date, the Anticipated Repayment Date or the Payment Date of any principal, interest or other amount on any such Note, or reduce the Note Principal Balance thereof or the Note Rate thereon, or change the coin or currency in which the principal of any Note or interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or after the applicable Legal Final Payment Date thereof; 
(6)    reduce the percentage of the then Aggregate Series Principal Balance, the consent of whose Holders is required for any supplemental indenture or amendment, or the consent of whose Holders is required for any waiver of default under the Transaction Documents, or for any other reason under a Transaction Document (including for actions taken by the Indenture Trustee pursuant to Section 4.01);
(7)    change any obligation of the Issuer to maintain an office or agency in the places and for the purposes specified in this Indenture;
(8)    except as otherwise expressly provided in this Indenture, in the Property Management Agreement, in any Property Transfer Agreement or in any Mortgage, deprive the Indenture Trustee of the benefit of a first priority perfected security interest in the Collateral included in the Collateral Pool;
(9)    release from the lien of the Mortgages or this Indenture, (except as specifically permitted under this Indenture, the Property Management Agreement or such Mortgage) all or any part of the Collateral;
(10)    modify the definition of the term “Noteholder”; or
(11)    modify Article VIII of this Indenture.
No such supplemental indenture or amendment shall be effective unless the Indenture Trustee shall have first received an Opinion of Counsel to the effect that such amendment will not (i) cause any Class of Notes of any Series that was characterized as debt, as of the applicable Series Closing Dates, to be characterized other than as indebtedness for U.S. federal income tax purposes, and (ii) any of the Issuers of any outstanding Series to be treated as an association, a publicly-traded partnership or a taxable mortgage pool taxable as a corporation.
Section 8.05    Execution of Supplemental Indentures, Etc.
In executing, or accepting the additional trusts created by, any supplemental indenture or amendment permitted by this Article or in accepting the modifications thereby of the 

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trusts created by this Indenture or in giving any consent to any modification of any Mortgage Loan or any Lease pursuant to this Indenture, the Indenture Trustee shall be entitled to receive, at the applicable Issuers’ expense payable out of the Collateral Pool pursuant to Section 2.11, and shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture, amendment or modification is authorized or permitted by this Indenture and each Series Supplement.  The Indenture Trustee may, but shall not be obligated to, enter into any such supplemental indenture or amendment or consent to any such modification which affects the Indenture Trustee’s own rights, duties or immunities under this Indenture or otherwise.
ARTICLE IX     
 
COVENANTS; WARRANTIES
Section 9.01    Maintenance of Office or Agency.
The Issuers shall maintain or cause to be maintained an office or agency in the continental United States where notices and demands to or upon the Issuers in respect of the Notes and this Indenture may be served.  The Issuers shall give prompt written notice to the Indenture Trustee and the Noteholders of the location, and any change in the location, of such office or agency.
Section 9.02    Existence and Good Standing.
Subject to Section 9.08, the Issuers will each keep in full effect its existence, rights and franchises under the laws of its jurisdiction of organization, and will remain in good standing as a foreign limited liability company, in each jurisdiction to the extent the failure to remain in good standing would affect materially and adversely (i) the enforceability of this Indenture or (ii) such Issuer’s performance of its obligations hereunder.
Section 9.03    Payment of Taxes and Other Claims.
(f)    The Issuers shall pay or discharge or cause to be paid or discharged, before the same shall become delinquent, all taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees, or other governmental charges and claims, including any interest, additions to tax or penalties applicable thereto (the “Taxes”) levied or imposed upon the Issuers or upon the income, profits or property of the Issuers, or shown to be due on the tax returns filed by the Issuers, except any such Taxes which any Issuer is in good faith contesting in appropriate proceedings and with respect to which adequate reserves are established if required in accordance with GAAP; provided, that such failure to pay or discharge will not cause a forfeiture of, or a lien to encumber, any property included in the Collateral Pool. Upon the written direction of the Property Manager in accordance with the Property Management Agreement, the Indenture Trustee is authorized to pay out of the Payment Account, prior to making payments on the Notes, any such Taxes which, if not paid, would cause a forfeiture of, or a lien to encumber, any property included in the Collateral Pool.
(g)    After prior written notice to the Indenture Trustee, any Issuer, at its own expense, may contest by appropriate legal proceeding, promptly initiated and conducted in good 

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faith and with due diligence, the amount or validity or application in whole or in part of any of the Taxes; provided, that (i) no Event of Default has occurred and is continuing, (ii) such Issuer is not prohibited from doing so under the provisions of any mortgage, deed of trust or deed to secure debt affecting the related Mortgaged Property, (iii) such proceeding shall suspend the collection of the Taxes from such Issuer and from such Mortgaged Property or such Issuer shall have paid all of the Taxes under protest, (iv) such proceeding shall be permitted under and be conducted in accordance with the provisions of any other instrument to which such Issuer is subject and shall not constitute a default thereunder, (v) neither such Mortgaged Property nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, cancelled or lost, and (vi) unless such Issuer has paid all of the Taxes under protest, such Issuer has furnished such security as may be required in the proceeding, as may be reasonably requested by the Indenture Trustee to insure the payment of any contested Taxes, together with all interest and penalties thereon.
Section 9.04    Validity of the Notes; Title to the Collateral; Lien.
(i)    Each Issuer represents and warrants to the other parties hereto that such Issuer is duly authorized under applicable law and the related LLC Agreement to create and issue the Notes with respect to which it is an issuer, to pledge the applicable Collateral included in the Collateral Pool to the Indenture Trustee, to execute and deliver this Indenture, the other documents referred to herein to which it is a party and all instruments included in the Collateral Pool which it has executed and delivered, and that all partnership action and governmental consents, authorizations and approvals necessary or required therefor have been duly and effectively taken or obtained.  The Notes, when issued, will be, and this Indenture and such other documents are, valid and legally binding obligations of the Issuers enforceable in accordance with their terms, subject only to (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws affecting creditor’s rights generally, (ii) general equitable principles, whether considered in a proceeding at law or in equity and (iii) an implied covenant of good faith and fair dealing.
(j)    Each Issuer represents and warrants to the other parties hereto that (i) such Issuer has good title to, and is the sole owner of, each applicable Mortgage Loan, Mortgaged Property and Lease, as applicable, and all other applicable Collateral included in the Collateral Pool, free and clear of any pledge, lien, encumbrance or security interest other than Permitted Exceptions and the liens created hereby and under the related Mortgages, (ii) this Indenture creates a valid and continuing security interest in each such item of the Collateral Pool in which a security interest may be created under Article 9 of the UCC in favor of the Indenture Trustee, which security interest is prior to all other liens, encumbrances and security interests, subject only to exceptions permitted in this Indenture, in the Property Management Agreement and in the related Mortgages, and is enforceable as such against creditors of and purchasers from such Issuer, (iii) each Mortgage creates a valid lien upon the applicable Mortgage Loans, Mortgaged Property and Lease, as applicable, specified therein, which lien is prior to all other liens, encumbrances and security interests, subject only to exceptions permitted in this Indenture, in the Property Management Agreement and in such Mortgage, and is enforceable as such against creditors of and purchasers from such Issuer, (iv) the assignment of rents contained in each related Mortgage (or in a separate document, if required by the local jurisdiction) constitutes the legal, valid, binding and enforceable assignment of such Issuer’s rights in each applicable Mortgage Loan or Lease, as applicable, subject only to exceptions 

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permitted in this Indenture, in the Property Management Agreement and in such Mortgage or separate document, and (v) such Issuer has received all consents and approvals required by the terms of the applicable Collateral to Grant such Collateral included in the Collateral Pool to the Indenture Trustee as provided herein and in the related Mortgages.
(k)    The Issuers have caused the filing of appropriate financing statements with the Secretary of State of the State of Delaware in order to perfect the security interests in the Collateral granted to the Indenture Trustee hereunder, to the extent such security interests may be perfected by such filing.
(l)    Other than the lien and security interest Granted to the Indenture Trustee hereunder and under the Mortgages (and as otherwise permitted in the Property Management Agreement or this Indenture), the Issuers have not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Collateral included in the Collateral Pool.  The Issuers have not authorized the filing of and are not aware of any financing statements against any such Issuer that include a description of collateral covering the Collateral other than any financing statements filed in favor of the Indenture Trustee, and any financing statements that have been terminated.  The Issuers are not aware of any judgment or tax lien filings against any such Issuer.
(m)    The Issuers shall ensure that all cash and investment property at any time owned by the Issuers and held as part of the Collateral Pool is deposited and maintained in the Collection Account, Lockbox Account, Payment Account, Cashflow Coverage Reserve Account, Release Account, Hedge Counterparty Accounts or any other account subject to an Account Control Agreement (or that will promptly after establishment thereof be subject to an Account Control Agreement) or in the name of the Indenture Trustee or as expressly permitted hereunder or under the Property Management Agreement.  Each such account shall be maintained in all material respects as specified in the applicable Transaction Documents.
(n)    The Issuers represent and warrant that the Indenture is not required to be qualified under the 1939 Act and that no Issuer is, and is not controlled by, an “investment company” within the meaning of, and is not required to register as an “investment company” under, the 1940 Act.
Section 9.05    Protection of Collateral Pool.
The Issuers, and, to the extent directed by the Issuers or the Requisite Global Majority, the Indenture Trustee, will from time to time execute and deliver all such amendments and supplements hereto (subject to Sections 8.01 and 8.02) and all such financing statements, continuation statements, instruments of further assurance and other instruments (provided, however, that the Indenture Trustee will not be obligated to prepare or file any such supplements, statements or other instruments), and will take such other action necessary or advisable to:
(d)    Grant more effectively all or any portion of the Collateral Pool;
(e)    maintain or preserve the lien (and the priority thereof) of the Mortgages and this Indenture or carry out more effectively the purposes hereof;

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(f)    perfect, publish notice of, or protect the validity of any Grant made or to be made by or in the Mortgages or this Indenture;
(g)    enforce any of the Mortgage Loans or Leases included in the Collateral Pool; or
(h)    preserve and defend title to the Collateral included in the Collateral Pool and the rights of the Indenture Trustee in such Collateral against the claims of all Persons and parties.
Each of the Issuers hereby designates the Indenture Trustee, its agent and attorney-in-fact, to execute and deliver any financing statement, continuation statement or other instrument required pursuant to this Section 9.05; provided, that, subject to and consistent with Section 5.01, the Indenture Trustee will not be obligated to prepare or file any such statements or instruments.
Section 9.06    Issuer Covenants and Representations.
Each Issuer hereby represents, solely with respect to itself:
(c)    The Issuer is a limited liability company validly existing and in good standing under the laws of, and is duly qualified to do business in, the jurisdiction of its organization, and has full power and authority to own its properties and conduct its business as presently owned or conducted, and to execute, deliver and perform its obligations under the Transaction Documents to which it is a party.
(d)    The Issuer is in good standing as a foreign limited liability company and is duly qualified to do business, and has obtained all necessary licenses and approvals (whether directly or indirectly), in each jurisdiction in which failure to so qualify or to obtain such licenses and approvals would have a material adverse effect on the Noteholders.
(e)    The execution and delivery by the Issuer of the Transaction Documents to which it is a party and the performance by the Issuer of the transactions contemplated by such Transaction Documents to which it is a party and the fulfillment by the Issuer of the terms hereof and thereof applicable to the Issuer, will not conflict with or violate the organizational documents of the Issuer or any requirements of law applicable to the Issuer or conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time or both) a default under, any indenture, contract, agreement, mortgage, deed of trust or other instrument to which the Issuer is a party or by which it or its properties are bound, except to the extent that such conflict, violation, breach or default would not materially adversely affect the Issuer’s ability to perform its obligations under the Transaction Documents.
(f)    There are no proceedings or investigations pending before any governmental authority or, to the best knowledge of the Issuer, threatened, against the Issuer (i) asserting the invalidity of this Agreement or any other Transaction Document to which the Issuer is a party, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement or any other Transaction Document to which the Issuer is a party, (iii) seeking any determination or ruling that, in the reasonable judgment of the Issuer, would materially and adversely affect the performance by the Issuer of its obligations under this Agreement or any other Transaction Document 

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to which it is a party, (iv) seeking any determination or ruling that would materially and adversely affect the validity or enforceability of this Agreement or any other Transaction Document to which the Issuer is a party, or (v) seeking to affect adversely the income or franchise tax attributes of the Issuer under the United States Federal or any state or local income or franchise tax systems.
(g)    All authorizations, consents, orders or approvals of or registrations or declarations with any governmental authority required to be obtained, effected or given by the Issuer in connection with the execution and delivery by the Issuer of this Agreement and any Transaction Document to which it is a party and the performance of the transactions contemplated by this Agreement and any Transaction Document to which it is a party have been duly obtained, effected or given and are in full force and effect.
(h)    As of the Initial Closing Date, the Issuer is solvent within the meaning of the Bankruptcy Code.
Section 9.07    Affirmative Covenants.
Each Issuer agrees, severally with respect to itself:

(b)    Separate Existence.  The Issuer shall:
(i)    Maintain in full effect its existence, rights and franchises as a limited liability company under the laws of the state of its formation and will obtain and preserve its qualification to do business in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of the Transaction Documents to which it is a party and each other instrument or agreement necessary or appropriate to proper administration hereof or thereof and to permit and effectuate the transactions contemplated hereby or thereby;
(ii)    Maintain its own separate books and records separate from those of any Affiliate of the Issuer;
(iii)    At all times hold itself out to the public as a separate legal and economic entity apart from any Affiliate of the Issuer, and strictly comply with all organizational formalities to maintain its separate existence;
(iv)    Correct any known misunderstanding regarding its separate identity and refrain from engaging in any activity that compromises the separate identity of the Issuer;
(v)    Maintain adequate capital and a sufficient number of employees, if any employees are so needed, in light of its contemplated business purposes, transactions and liabilities and in order to pay its debts as such debts become due;
(vi)    Observe all other Delaware limited liability company formalities;
(vii)    Not acquire any obligations or securities of any Affiliate of the Issuer;

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(viii)    File its own tax returns, if any, as may be required under applicable law, to the extent (1) not part of a consolidated group filing a consolidated return or returns or (2) not treated as a division for tax purposes of another taxpayer, and pay any taxes so required to be paid under applicable law;
(ix)    Not commingle its assets with assets of any Affiliate of the Issuer except as contemplated by the Transaction Documents;
(x)    Conduct its business in its own name;
(xi)    Maintain separate financial statements, prepared in accordance with applicable generally accepted accounting principles, showing its assets and liabilities separate and apart from those of any Affiliate of the Issuer and not have its assets listed on any financial statement of any Affiliate of the Issuer other than as a consequence of the application of consolidation rules in accordance with general accepted accounting principles;
(xii)    Pay its own liabilities and expenses only out of its own funds;
(xiii)    Maintain an arm’s length relationship with unaffiliated parties, and not enter into any transaction with an Affiliate except on commercially reasonable terms similar to those available to unaffiliated parties in an arm’s length transaction;
(xiv)    Pay the salaries of its own employees, if any, only out of its own funds;
(xv)    Not hold out its credit or assets as being available to satisfy the obligations of any Affiliate of the Issuer nor pledge its assets for the benefit of any Affiliate of the Issuer nor make any intercompany loans to any Affiliate of the Issuer or accept any intercompany loans from any Affiliate of the Issuer;
(xvi)    Clearly identify its offices, if any, as its offices and, to the extent that the Issuer and its Affiliates have offices in the same location, allocate fairly and reasonably any overhead expenses that are shared with such Affiliates, including and for services performed by an employee of such Affiliates;
(xvii)    Ensure that it shall at all times have at least one Independent Manager (as defined in the applicable LLC Agreement) and at least one officer;
(xviii)    Use separate stationery, invoices and checks bearing its own name;
(xix)    Not guarantee any obligation of any Affiliate of the Issuer;
(xx)    Not engage, directly or indirectly, in any business other than that required or permitted to be performed under the Issuer LLC Agreement, the Transaction Documents or this Section 9.07(a); 

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(xxi)    Not incur, create or assume any indebtedness or liabilities other than the Notes or as otherwise expressly permitted under the Transaction Documents;
(xxii)    The Issuer shall pay out of its own funds, without reimbursement, the costs and expenses relating to any stamp, documentary, excise, property (whether on real, personal or intangible property) or any similar tax levied on the Issuer or the Issuer’s assets that are not expressly stated in this Agreement to be payable by the Issuer (other than federal, state, local and foreign income and franchise taxes, if any, or any interest or penalties with respect thereto, assessed on the Issuer); and
Solely for purposes of this Section 9.07(a), when used with respect to an Issuer, the term “Affiliate” shall be deemed to exclude each other Issuer.  
(c)    Bankruptcy Limitations.  No Issuer shall voluntarily (A) dissolve or liquidate, in whole or in part, or institute proceedings to be adjudicated bankrupt or insolvent, (B) consent to the institution of bankruptcy or insolvency proceedings against it, (C) file a petition seeking or consent to reorganization or relief under any applicable federal or state law relating to bankruptcy, (D) consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Issuer or a substantial part of its property, (E) make a general assignment for the benefit of creditors, (F) admit in writing its inability to pay its debts generally as they become due, or (G) take any entity action in furtherance of the actions set forth in clauses (A) through (F) above; provided, however, that no manager may be required by any member of the Issuer to consent to the institution of bankruptcy or insolvency proceedings against the Issuer so long as it is solvent.
(d)    The Issuer will comply in all respects with all requirements of law with respect to the Issuer and all applicable laws, ordinances, rules, regulations, and requirements of governmental authorities except where the necessity of compliance therewith is contested in good faith by appropriate proceedings and where such noncompliance would not materially and adversely affect the business, financial condition, operations or properties of the Issuer or the ability of the Issuer to perform its obligations under this Indenture or under any other Transaction Documents to which it is a party.
(e)    The Issuer will not declare or pay any distributions on any of its limited liability company interests; provided, however, that so long as Event of Default has occurred and is continuing with respect to any Series of Notes Outstanding or would result therefrom, the Issuer may declare and pay distributions to the extent permitted under Section 18-607 of the Delaware Limited Liability Company Act; provided, further, that no such distribution may violate the terms of this Indenture. 
(f)    The Issuer will use commercially reasonable efforts not to enter into any material agreements that could reasonably be expected to subject the Issuer to material liability unless such agreements contain provisions similar in effect to Sections 12.19 and 12.20 hereof.
Section 9.08    Negative Covenants.
For so long as the Notes of any Series are outstanding, no Issuer shall:

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(a)    cause or permit a voluntary or involuntary sale, transfer, exchange, conveyance, mortgage, grant, bargain, encumbrance, pledge, assignment, grant of any options with respect to, or any other transfer or disposition of (directly or indirectly, voluntarily or involuntarily, by operation of law or otherwise, and whether or not for consideration or of record) of a legal or beneficial interest in any Mortgage Loan, Mortgaged Property, Lease or any part thereof or any legal or beneficial interest therein or any other part of the Collateral Pool, except as expressly permitted by this Indenture, the Property Management Agreement or any other Transaction Document;
(b)    dissolve or liquidate in whole or in part, except as provided in Section 9.10;
(c)    change its state of organization, name, identity or organizational status, or otherwise amend the related LLC Agreement, without notifying the Indenture Trustee of such change in writing at least thirty (30) days prior to the effective date of such change and, in the case of a change in such Issuer’s organizational status or any such amendment, without first obtaining the prior written consent of the Indenture Trustee and satisfying the Affirmative Rating Condition; 
(d)    withdraw or direct any party to withdraw any funds from the Lockbox Accounts or the Collection Account, other than in accordance with the terms of this Indenture or the Property Management Agreement;
(e)    engage in any business or activity other than as permitted under the related LLC Agreement and this Indenture; or
(f)    permit itself to be taxed for U.S. federal income tax purposes as (a) other than a “qualified REIT subsidiary” for so long as Spirit Realty (or any parent thereof) qualifies as a “real estate investment trust” for U.S. federal income tax purposes and Spirit Realty or such parent holds all of the equity interests in such Issuer, or otherwise (b) an association, a publicly-traded partnership or a taxable mortgage pool taxable as a corporation.
Section 9.09    Statement as to Compliance.
Each Issuer shall deliver to the Indenture Trustee and the Rating Agencies, within 120 days after the end of each fiscal year commencing with fiscal year 2013, an Officer’s Certificate of such Issuer stating that, in the course of the performance by the officer executing such Officer’s Certificate of such officer’s present duties as an officer of such Issuer, such officer would normally obtain knowledge or have made due inquiry as to the existence of any condition or event which would constitute an Event of Default after the giving of notice or lapse of time or both and that to the best of the officer’s knowledge, (a) such Issuer has fulfilled all of its obligations under this Indenture in all material respects throughout such year, or, if there has been a default in the fulfillment of any such obligation in any material respect, specifying each such default known to such officer and the nature and status thereof, and (b) no event has occurred and is continuing which is, or after the giving of notice or lapse of time or both would become, an Event of Default, or, if such an event has occurred and is continuing, specifying each such event known to such officer and the nature and status thereof.

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Section 9.10    Issuers May Consolidate, Etc., Only on Certain Terms.
(d)    For so long as the Notes of any Series are outstanding, the Issuers may not consolidate or merge with or into any other Person or convey or transfer all or substantially all of the Collateral Pool to any Person (other than as provided in the Transaction Documents) without the consent of the Requisite Global Majority, unless:
(i)    the Person formed by or surviving such consolidation or merger (the “Successor Person”) (if other than any such Issuer) is organized under the laws of the United States of America or any State thereof and has assumed by written instrument all obligations of such Issuer to make payments on all of the applicable Notes and all other obligations of such Issuer under this Indenture; 
(ii)    immediately prior to, and immediately after giving effect to such merger or consolidation, no Event of Default or Early Amortization will have occurred and be continuing;
(iii)    the Indenture Trustee has received written confirmation that the Affirmative Rating Condition has been satisfied;
(iv)    any such Issuer shall have delivered to the Indenture Trustee an Officers’ Certificate and an Opinion of Counsel, each to the effect that, such consolidation, merger, conveyance or transfer complies with and satisfies all conditions precedent relating to the transactions set forth in this Section 9.10;
(v)    the Successor Person shall have delivered to the Indenture Trustee an Officer’s Certificate stating that (1) the Successor Person has good and marketable title to the applicable Collateral included in the Collateral Pool, free and clear of any lien, security interest or charge other than the lien and security interest of the related Mortgages and this Indenture and any other lien permitted hereby, and (2) immediately following the event which causes the Successor Person to become the Successor Person, the Indenture Trustee continues to have a perfected security interest in such Collateral included in the Collateral Pool to the extent a security interest may be created and perfected under Article 9 of the UCC and a valid, first priority lien (subject to Permitted Exceptions) in the related Mortgage Loans, Mortgaged Properties and Leases; and
(vi)    the Successor Person shall have delivered to the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel each stating that, with respect to a Successor Person that is a corporation, partnership or trust; such Successor Person shall be duly organized, validly existing and in good standing in the jurisdiction in which such Successor Person is organized; that the Successor Person has sufficient power and authority to assume the obligations set forth in clause (i) above and to execute and deliver an indenture supplement hereto for the purpose of assuming such obligation; that the Successor Person has duly authorized the execution, delivery and performance of any indenture supplement and that such supplemental indenture is a valid, legal and binding obligation of the Successor Person, enforceable in accordance with its terms, subject only to bankruptcy, reorganization, 

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insolvency and other laws affecting the enforcement of creditor’s rights generally and to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or law); and that, immediately following the event which causes the Successor Person to become the Successor Person, the Indenture Trustee continues to have a perfected security interest in the applicable Collateral included in the Collateral Pool to the extent a security interest may be created and perfected under Article 9 of the UCC.
(e)    Upon any consolidation or merger, or any conveyance or transfer of all or substantially all of the Collateral Pool, the Successor Person shall succeed to, and be substituted for, and may exercise every right and power of, the Issuers under this Indenture with the same effect as if such Successor Person had been named as an Issuer herein. In the event of any such conveyance or transfer of the Collateral Pool permitted by this Section 9.10, the Person named as an “Issuer” in the first paragraph of this Indenture, or any successor that shall theretofore have become such in the manner prescribed in this Article and that has thereafter effected such a conveyance or transfer, may be dissolved, wound up and liquidated at any time thereafter, and such Person thereafter shall be released from its liabilities as obligor and maker on all of the then Outstanding Notes and from its obligations under this Indenture.
ARTICLE X     
 
COVENANTS REGARDING MORTGAGED PROPERTIES
Section 10.01    Insurance.
The Issuers will be required to maintain, or cause to be maintained, insurance of the types and amounts required to be maintained by it pursuant to the Property Management Agreement.  The Issuers shall comply with all such insurance requirements and shall not bring or keep or permit to be brought or kept any article upon any Mortgaged Property or cause or permit any condition to exist thereon which would be prohibited by an insurance requirement, or would invalidate the insurance coverage required thereunder to be maintained by the related Issuer on or with respect to any part of a Mortgaged Property.
Section 10.02    Mortgage Loans, Leases and Rents.
With respect to each Mortgaged Property, the related Issuer (i) shall observe and perform (or cause to be performed) all the obligations imposed upon the Borrower under the related Mortgage Loan or the lessor under the related Lease and shall not do or permit to be done anything to impair materially the value of any Mortgage Loan, Mortgaged Property or Lease as security, (ii) shall promptly send copies to the Indenture Trustee of all notices of default which such Issuer shall send or receive under the Mortgage Loans and Leases, (iii) shall notify the Indenture Trustee in writing of any material change in the status of any tenancy at such Mortgaged Property, including, without limitation, the vacating, surrender or going dark of any Tenant, even if such action is expressly permitted by the terms of such Tenant’s Lease, (iv) shall enforce all of the material terms, covenants and conditions contained in a related Mortgage Loan upon the part of the Borrower or a related Lease upon the part of the Tenant, as applicable, thereunder to be observed or performed (including, without limitation, collecting financial information from each Borrower or Tenant, as 

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applicable), (v) shall not collect any Monthly Loan Payment or Monthly Lease Payment more than one month in advance (except that security deposits shall not be deemed Monthly Loan Payments or Monthly Lease Payments collected in advance), (vi) shall not execute any assignment of the Borrower’s interest in a related Mortgage Loan or the Monthly Loan Payments or the lessor’s interest in a related Lease or the Monthly Lease Payments except as permitted under the Property Management Agreement, and (vii) unless otherwise permitted under the Property Management Agreement, shall not consent to any assignment of or subletting under a related Lease other than in accordance with its terms, provided, that the Issuer shall be deemed to have satisfied its obligations in clauses (i) and (iv) above to the extent that it causes the Property Manager or Special Servicer, as applicable, to service and administer the Mortgage Loans and Mortgaged Properties and related Leases in accordance with the Property Management Agreement.  No Issuer shall agree to any material modification of a related Mortgage Loan or Lease except in accordance with the terms of the Property Management Agreement.
Section 10.03    Compliance With Laws.
With respect to each Mortgaged Property:
(o)    The related Issuer shall promptly comply in all material respects with all federal, state and local laws, orders, ordinances, governmental rules and regulations or court orders affecting such Mortgaged Property, or the use thereof (“Applicable Laws”), currently existing or enacted in the future.
(p)    The Issuers shall from time to time, upon the Indenture Trustee’s request, provide the Indenture Trustee with evidence reasonably satisfactory to the Indenture Trustee that the Mortgaged Properties comply in all material respects with all currently existing Applicable Laws or is exempt from compliance with currently existing Applicable Laws.
(q)    Notwithstanding any provisions set forth herein or in any document regarding the Property Manager’s approval of alterations of a Mortgaged Property, the related Issuer shall not alter such Mortgaged Property in any manner which would materially increase such Issuer’s responsibilities for compliance with Applicable Laws without the prior written approval of the Property Manager.  The foregoing shall apply to tenant improvements constructed by the related Issuer or by any of its Tenants.  The Property Manager may condition any such approval upon receipt of a certificate of compliance with Applicable Laws from an independent architect, engineer, or other person acceptable to the Property Manager.
(r)    The Issuers shall give prompt notice to the Indenture Trustee of the receipt by any such Issuer of any governmental agency notice related to a violation of any Applicable Laws and of the commencement of any governmental agency proceedings or investigations which relate to compliance with Applicable Laws.
(s)    After prior written notice to the Indenture Trustee, the related Issuer, at its own expense, may contest by appropriate legal proceeding, promptly initiated and conducted in good faith and with due diligence, the Applicable Laws affecting any Mortgaged Property; provided, that (i) no Event of Default has occurred and is continuing under any Mortgage or this Indenture, 

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(ii) such Issuer is not prohibited from doing so under the provisions of any Mortgage Loan or Lease and any other mortgage, deed of trust or deed to secure debt affecting such Mortgaged Property, (iii) such proceeding shall not be prohibited under, and shall be conducted in accordance with, the provisions (if any) of any other instrument to which such Issuer or such Mortgaged Property is subject and shall not constitute a default thereunder, (iv) none of such Mortgaged Property, any part thereof or interest therein, any of the related Borrowers, such Tenants or occupants thereof, or such Issuer shall be affected in any materially adverse way as a result of such proceeding, (v) non-compliance with the Applicable Laws shall not impose criminal liability on such Issuer or civil or criminal liability on the Indenture Trustee, and (vi) such Issuer shall have furnished to the Indenture Trustee all other items reasonably requested by the Indenture Trustee.
Section 10.04    Estoppel Certificates.
The Issuers shall use their commercially reasonable best efforts to deliver or cause to be delivered to the Indenture Trustee, promptly upon request, duly executed estoppel certificates from any one or more Borrowers or Tenants as required by the Property Manager in accordance with the Property Management Agreement attesting to such facts regarding a related Mortgage Loan or Lease, as applicable, as the Property Manager may require in accordance with the Property Management Agreement, including but not limited to, attestations that each Lease covered thereby is in full force and effect with no defaults thereunder on the part of any party, that none of the Monthly Loan Payments or Monthly Lease Payments, as applicable, have been paid more than one month in advance, and that the Borrower or Tenant claims no defense or offset against the full and timely performance of its related obligations under such Mortgage Loan or Lease.
Section 10.05    Other Rights, Etc.
It is agreed that the risk of loss or damage to a Mortgaged Property is on the related Issuer, and the Indenture Trustee shall have no liability whatsoever for decline in value of such Mortgaged Property, for failure to maintain insurance policies, or for failure to determine whether insurance in force is adequate as to the amount of risks insured.  Possession by the Indenture Trustee shall not be deemed an election of judicial relief, if any such possession is requested or obtained, with respect to any Mortgage Loan or Mortgaged Property or any other Collateral included in the Collateral Pool and not in the Indenture Trustee’s possession.
Section 10.06    Right to Release Any Portion of the Collateral Pool.
The Indenture Trustee shall release any portion of the Collateral Pool without, as to the remainder of such Collateral, in any way impairing or affecting the lien or priority of this Indenture, or improving the position of any subordinate lienholder with respect thereto, except to the extent that the obligations hereunder shall have been reduced by the actual monetary consideration, if any, received by the Indenture Trustee for such release, and may accept by assignment, pledge or otherwise any other property in place thereof, all in accordance with the terms hereof and of the Property Management Agreement.  This Indenture shall continue as a lien and security interest in the remaining portion of the Collateral Pool to which it applies.  Notwithstanding anything to the contrary herein, Collateral may be released from the lien of this Indenture to the extent permitted by the Property Management Agreement and this Indenture.

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Section 10.07    Environmental Covenants.
Each Issuer covenants and agrees that so long as such Issuer owns, manages, is in possession of, or otherwise controls a Mortgaged Property:  (a) all uses and operations on or of such Mortgaged Property, whether by such Issuer or any other person or entity, shall be in material compliance with all Environmental Laws and permits issued pursuant thereto; (b) there shall be no Environmental Releases of Hazardous Materials in, on, under or from such Mortgaged Property in material violation of Environmental Laws; (c) there shall be no Hazardous Materials present at, in, on, or under such Mortgaged Property or generated, managed, stored, treated, transported or disposed in connection with the use and operation of such Mortgaged Property, except those that are both (i) in material compliance with all Environmental Laws and with permits issued pursuant thereto, if and to the extent required, and (ii) in amounts necessary to operate such Mortgaged Property; (d) such Issuer shall keep the Mortgaged Property free and clear of all liens and other encumbrances imposed pursuant to any Environmental Law, whether due to any act or omission of the Issuer or any other person or entity (the “Environmental Liens”); (e) such Issuer shall, at its sole cost and expense, fully and expeditiously cooperate in all activities pursuant to Section 10.08, including but not limited to providing all relevant information and making knowledgeable persons available for interviews; (f) such Issuer shall, at its sole cost and expense, perform any environmental site assessment or other investigation of environmental conditions in connection with such Mortgaged Property, pursuant to any reasonable written request of the Property Manager in accordance with the Property Management Agreement and share with the Indenture Trustee the reports and other results thereof, and the Indenture Trustee shall be entitled to rely on such reports and other results thereof; (g) such Issuer shall, at its sole cost and expense, comply with all reasonable written requests of the Property Manager in accordance with the Property Management Agreement to (i) reasonably effectuate remediation of any Hazardous Materials in, on, under or from such Mortgaged Property associated with an Environmental Release and (ii) comply with any Environmental Law; (h) such Issuer shall not knowingly permit any Borrower, Tenant or other user of the Mortgaged Property to violate any Environmental Law in any material respect; and (i) such Issuer shall immediately notify the Property Manager in writing after it has become aware of (A) any presence or Environmental Release or threatened Environmental Releases of Hazardous Materials in, on, under, from or migrating towards such Mortgaged Property in violation of any Environmental Law, (B) any non-compliance with any Environmental Laws related in any way to such Mortgaged Property, (C) any actual or potential Environmental Lien, (D) any required or proposed governmental agency investigation, remediation or other response to environmental conditions relating to such Mortgaged Property, and (E) any written or oral notice or other communication of which such Issuer becomes aware from any source whatsoever (including but not limited to a governmental agency) relating in any way to Hazardous Materials at such Mortgaged Property in violation of Environmental Law.
“Environmental Law” means any present and future federal, state and local laws, statutes, ordinances, rules, regulations, standards, policies, consent decrees or settlement agreements and other governmental directives or requirements, as well as common law, that apply to any Mortgaged Property and relate to Hazardous Materials, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, and the Resource Conservation and Recovery Act, as amended.  “Hazardous Materials” shall mean: (a) petroleum and petroleum products and compounds containing them, including gasoline, 

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diesel fuel and oil; (b) explosives; (c) flammable materials; (d) radioactive materials; (e) polychlorinated biphenyls (“PCBs”) and compounds containing them; (f) lead and lead-based paint; (g) asbestos or asbestos-containing materials in any form that is or could become friable; (h) underground or above-ground storage tanks, whether empty or containing any substance; (i) any substance the presence of which on any Mortgaged Property is regulated by or prohibited by any federal, state or local authority (a “Regulated Substance”); (j) any Regulated Substance that requires special handling; (k) and any other material, substance or waste now or in the future defined as a “hazardous substance,” “hazardous material,” “hazardous waste,” “toxic substance,” “toxic pollutant,” “contaminant,” “pollutant” or other words of similar import within the meaning of any Environmental Law.  “Environmental Release” of any Hazardous Materials includes but is not limited to any release, deposit, discharge, emission, leaking, leaching, spilling, seeping, migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing or other movement of Hazardous Materials, including the threat of any of the foregoing.
ARTICLE XI     
 
COSTS
Section 11.01    Performance at the Issuers’ Expense.
The Issuers acknowledge and confirm that the Indenture Trustee shall impose certain administrative processing fees in connection with the release or substitution of any Mortgage Loan or Mortgaged Property (the occurrence of any of the above shall be called an “Event”), which fees are payable to the Indenture Trustee under the Property Management Agreement as an Extraordinary Expense in accordance with Section 2.11(b).  The Issuers hereby acknowledge and agree to pay all such fees (as the same may be reasonably increased or decreased from time to time), and any additional fees of a similar type or nature which may reasonably be imposed by the Indenture Trustee from time to time, upon the occurrence of any Event or otherwise, in accordance with the priorities set forth herein and in the Property Management Agreement and as Extraordinary Expenses.  Wherever it is provided for herein that an Issuer pay any costs and expenses, such costs and expenses shall include, but not be limited to, all reasonable legal fees and disbursements of the Indenture Trustee in accordance with the priorities set forth herein.
ARTICLE XII     
 
MISCELLANEOUS
Section 12.01    Execution Counterparts.
This instrument may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument.
Section 12.02    Compliance Certificates and Opinions, Etc.

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Upon any application or request by an Issuer to the Indenture Trustee to take any action under any provision of this Indenture, such Issuer shall (at the request of the Indenture Trustee) furnish to the Indenture Trustee an Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with, except that, in the case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture, no additional certificate or opinion need be furnished.
Section 12.03    Form of Documents Delivered to Indenture Trustee.
In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents.
Any certificate or opinion of an Authorized Officer of an Issuer may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the matters upon which his certificate or opinion is based are erroneous.  Any such certificate of an Authorized Officer or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of an Issuer stating that the information with respect to such factual matters is in the possession of such Issuer, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are erroneous.
Whenever this Indenture requires that a document or instrument (other than any Note) be delivered in substantially the form attached hereto as an exhibit, modifications and additions to and deletions from any such exhibit reflected in such document or instrument as delivered hereunder shall not impair the validity or acceptability of such document or instrument (nor shall any Person be entitled to reject such document or instrument as a result thereof) to the extent that such modifications, additions or deletions are approved by the Issuers and are made in a manner consistent with applicable law (including changes thereto).
Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument.
Section 12.04    No Oral Change.
This Indenture, and any provisions hereof, may not be modified, amended, waived, extended, changed, discharged or terminated orally or by any act or failure to act on the part of any Issuer or the Indenture Trustee, but only by an agreement in writing signed by the party against 

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whom enforcement of any modification, amendment, waiver, extension, change, discharge or termination is sought and otherwise in accordance herewith.
Section 12.05    Acts of Noteholders.
(g)    Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by the Noteholders of any Class of any Series or in their entirety may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Noteholders in person or by agents duly appointed in writing; and except as herein otherwise expressly provided such action shall become effective when such instrument or instruments are delivered to the Indenture Trustee, and, where it is hereby expressly required, to the applicable Issuers.  Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Noteholders signing such instrument or instruments.  Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Section 5.01) conclusive in favor of the Indenture Trustee and the Issuers if made in the manner provided in this Section.
(h)    The fact and date of the execution by any Person of any such instrument or writing may be proved in any manner that the Indenture Trustee deems sufficient.
(i)    The Series, Class, Note Principal Balance and serial numbers of Notes held by any Person, and the date of holding the same, shall be proved by the Note Register.
(j)    Any request, demand, authorization, amendment, direction, notice, consent, election, declaration, waiver or other act of any Noteholder shall bind every future Noteholder of the same Note and the Noteholder of every Note issued upon the transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, suffered or omitted to be done by the Indenture Trustee or the applicable Issuers in reliance thereon, whether or not notation of such action is made upon such Note.
Section 12.06    Computation of Percentage of Noteholders.
Unless otherwise specified herein, whenever this Indenture states that any action may be taken by a specified percentage of the Noteholders or the Noteholders of any Class, such statement shall mean that such action may be taken by the Noteholders of such specified percentage of the Aggregate Series Principal Balance or of such Class of Notes, respectively.
Section 12.07    Notice to the Indenture Trustee, the Issuers and Certain Other Persons.
Any communication provided for or permitted hereunder shall be in writing and, unless otherwise expressly provided herein, shall be deemed to have been duly given if delivered by courier or mailed by first class mail, postage prepaid, or if transmitted by facsimile and confirmed in a writing delivered or mailed as aforesaid, to: (i) in the case of any Issuer to Spirit Master Funding VII, LLC, 16767 N. Perimeter Drive, Suite 210, Scottsdale, Arizona 85260, facsimile number: 480-606-0820, Attention: Ryan Berry, General Counsel, or to such other address as provided in the 

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applicable Series Supplement, as applicable; (ii) in the case of the Indenture Trustee, Citibank, N.A., at 388 Greenwich Street, 14th Floor, New York, New York 10013, Attention: Agency and Trust- Spirit Master Funding, facsimile number: 212-816-5527; and (iii) with respect to any applicable Series, in the case of any Hedge Counterparty or Rating Agency, the address of such Hedge Counterparty or Rating Agency as provided in the applicable Series Supplement, or, as to each such Person, such other address or facsimile number as may hereafter be furnished by such Person to the parties hereto in writing.
Section 12.08    Notices to Noteholders; Notification Requirements and Waiver.
Where this Indenture provides for notice to Noteholders of any event, such notice shall be sufficiently given if in writing and delivered by courier or mailed by first class mail, postage prepaid to each Noteholder affected by such event, at its address as it appears on the Note Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice.  In any case where notice to Noteholders is given by mail, neither the failure to mail such notice nor any defect in any notice so mailed to any particular Noteholder shall affect the sufficiency of such notice with respect to other Noteholders, and any notice that is delivered or mailed in the manner herein provided shall conclusively be presumed to have been duly given.
Where this Indenture provides for notice in any manner, such notice may be waived in writing by any Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice.  Waivers of notice by Noteholders shall be filed with the Indenture Trustee but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such a waiver.
In case, by reason of the suspension of regular courier and mail service as a result of a strike, work stoppage or similar activity, it shall be impractical to mail notice of any event to Noteholders when such notice is required to be given pursuant to any provision of this Indenture, then any manner of giving such notice as shall be satisfactory to the Indenture Trustee shall be deemed to be a sufficient giving of such notice.
Where this Indenture provides for notice to the Rating Agencies, failure to give any such notice shall not affect any other rights or obligations created hereunder, and shall not under any circumstance constitute a default or Event of Default.
Section 12.09    Successors and Assigns.
All covenants and agreements in this Indenture by the Issuers shall bind their successors and permitted assigns, whether so expressed or not.
Section 12.10    Interest Charges; Waivers.
This Indenture is subject to the express condition that at no time shall any Issuer be obligated or required to pay interest hereunder at a rate which could subject the Indenture Trustee to either civil or criminal liability as a result of being in excess of the maximum interest rate which such Issuer is permitted by applicable law to contract or agree to pay.  If by the terms of this Indenture, 

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any Issuer is at any time required or obligated to pay interest hereunder at a rate in excess of such maximum rate, such rate shall be deemed to be immediately reduced to such maximum rate and all previous payments in excess of the maximum rate shall be deemed to have been payments in reduction of principal and not on account of the interest due hereunder.
The Issuers expressly waives presentment, demand, diligence, protest and all notices of any kind whatsoever with respect to this Indenture, except for notices expressly provided for in this Indenture, the Mortgages or the Notes.
Section 12.11    Severability Clause.
In case any provision of this Indenture or of the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall, to the extent permitted by law, not in any way be affected or impaired thereby.
Section 12.12    Governing Law.
(a)    THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES).
(b)    Any action or proceeding against any of the parties hereto relating in any way to this Indenture or any Note or the Collateral included in the Collateral Pool may be brought and enforced in the courts of the State of New York sitting in the borough of Manhattan or of the United States District Court for the Southern District of New York and each of the Issuers irrevocably submits to the jurisdiction of each such court in respect of any such action or proceeding.  The Issuers hereby waive, to the fullest extent permitted by law, any right to remove any such action or proceeding by reason of improper venue or inconvenient forum.  As long as any of the Notes remain Outstanding, service of process upon any Issuer shall, to the fullest extent permitted by law, be deemed in every respect effective service in any such legal action or proceeding.
Section 12.13    Effect of Headings and Table of Contents.
The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof.
Section 12.14    Benefits of Indenture.
Nothing in this Indenture or in the Notes, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, the Noteholders, the Series Enhancers, the Property Manager, the Special Servicer, the Back-Up Manager and any other party secured hereunder or named as a beneficiary of any provision hereof, any benefit or any legal or equitable right, remedy or claim under this Indenture.
Section 12.15    Trust Obligation.

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No recourse may be taken, directly or indirectly, with respect to the obligations of the Issuers on the Notes or under this Indenture or any certificate or other writing delivered in connection herewith or therewith, against (i) any Issuer, the Indenture Trustee, the Collateral Agent, the Property Manager, the Back-Up Manager or the Special Servicer in its individual capacity, (ii) any owner of a beneficial interest in an Issuer or (iii) any partner, owner, beneficiary, agent, officer, director, employee, agent or Control Person of an Issuer, the Indenture Trustee, the Collateral Agent, the Property Manager, the Back-Up Manager or the Special Servicer in its individual capacity, any holder of a beneficial interest in an Issuer or of any successor or assignee of an Issuer, the Indenture Trustee, the Collateral Agent, the Property Manager, the Back-Up Manager or the Special Servicer in its individual capacity, except as any such Person may have expressly agreed (it being understood that none of the Indenture Trustee, the Collateral Agent, the Property Manager, the Back-Up Manager or the Special Servicer has any such obligations in its individual capacity).
Section 12.16    Inspection.
Each Issuer agrees that, on reasonable prior notice, it will permit any representative of the Indenture Trustee, during such Issuer’s normal business hours, to examine all the books of account, records, reports, and other papers of such Issuer, to make copies and extracts therefrom and to discuss such Issuer’s affairs, finances and accounts relating to such Issuer and such Issuer’s employees and independent public accounting firm, all at such reasonable times and as often as may be reasonably requested.  The Indenture Trustee shall and shall cause its representatives to hold in confidence all such information except to the extent disclosure may be required by law (and all reasonable applications for confidential treatment are unavailing) or the Indenture Trustee may reasonably determine that such disclosure is consistent with its obligations hereunder.
Section 12.17    Method of Payment.
Except as otherwise provided in Section 2.11(b), all amounts payable or to be remitted pursuant to this Indenture shall be paid or remitted or caused to be paid or remitted in immediately available funds by wire transfer to an account specified in writing by the recipient thereof.
Section 12.18    Limitation on Liability of the Issuers.
None of the Issuers or any of the directors, officers, partners, managers, members, employees, agents or Control Persons of any Issuer, shall be under any liability to the Noteholders for any action taken or for refraining from the taking of any action in good faith pursuant to this Agreement, or for errors in judgment.  The Issuers, and any person who is a manager, officer, employee, agent or Control Person of the Issuers will be entitled to indemnification, payable in accordance with (and subject to) Section 2.11, against any losses, liabilities or expenses incurred in connection with any legal action that relates to the Indenture, the Notes or any agreement related thereto.  The Issuers, and any director, officer, employee or agent of any Issuer may rely in good faith on any document of any kind which, prima facie, is properly executed and submitted by any Person respecting any matters arising hereunder.  No Issuer shall be under any obligation to appear in, prosecute or defend any legal action unless such action is related to its duties under this Indenture and which in its opinion does not involve it in any expenses or liability; provided, however, that any such Issuer may in its discretion undertake any such action which it may deem necessary or 

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desirable with respect to this Indenture and the rights and duties of the parties hereto and the interests of the Noteholders hereunder.
Section 12.19    Non-Petition. 
Each of the Noteholders, by its acceptance of a Note, and the Indenture Trustee hereby covenants and agrees that, prior to the date which is two years and thirty-one days after the payment in full of the latest maturing Note, it will not institute against, or join with, encourage or cooperate with any other Person in instituting, against an Issuer any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings, under any federal or state bankruptcy or similar law; provided, however, that nothing in this Section 12.19 shall constitute a waiver of any right to indemnification, reimbursement or other payment from the Issuer pursuant to this Indenture.  In the event that any such Noteholder or the Indenture Trustee takes action in violation of this Section 12.19, the applicable Issuer, shall file or cause to be filed an answer with the bankruptcy court or otherwise properly contesting the filing of such a petition by any such Noteholder or the Indenture Trustee against such Issuer or the commencement of such action and raising the defense that such Noteholder or the Indenture Trustee has agreed in writing not to take such action and should be estopped and precluded therefrom and such other defenses, if any, as its counsel advises that it may assert.  The provisions of this Section 12.19 shall survive the termination of this Indenture, and the resignation or removal of the Indenture Trustee.  Nothing contained herein shall preclude participation by any Noteholder or the Indenture Trustee in the assertion or defense of its claims in any such proceeding involving an Issuer.
Section 12.20    Non-Recourse.
The obligations of each Issuer under this Indenture are solely the obligations of such Issuer.  No recourse shall be had for the payment of any amount owing in respect of any fee hereunder or any other obligation or claim arising out of or based upon this Indenture against any member, employee, officer or director of such Issuer.  Fees, expenses, costs or other obligations payable by an Issuer hereunder shall be payable by such Issuer only to the extent that funds are then available or thereafter become available for such purpose pursuant to Section 2.11.  In the event that sufficient funds are not available for their payment pursuant to Section 2.11, the excess unpaid amount of such fees, expenses, costs or other obligations shall in no event constitute a claim (as defined in Section 101 of the Bankruptcy Code) against, or corporate obligation of, such Issuer. Nothing in this Section 12.20 shall be construed to limit the Trustee from exercising its rights hereunder with respect to the Collateral Pool.

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IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, all as of the day and year first above written.
SPIRIT MASTER FUNDING VII, LLC, as Issuer

By: Spirit SPE Manager, LLC, its manager

By:     
Name:
Title:
CITIBANK, N.A.,
not in its individual capacity but solely as Indenture Trustee
By:        
Name:
Title:

STATE OF ____________    )
)  ss.:
COUNTY OF __________    )
On this ___ day of __________ 2013, before me, the undersigned officer, personally appeared Pete Mavoides and acknowledged himself to me to be the President & COO of Spirit SPE Manager, LLC, the Manager of Spirit Master Funding VII, LLC, and that as such officer, being duly authorized to do so pursuant to such entity’s by-laws or a resolution of its board of directors, executed and acknowledged the foregoing instrument for the purposes therein contained, by signing the name of such entity by him as such officer as his free and voluntary act and deed and the free and voluntary act and deed of said entity.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
    
Notary Public
NOTARIAL SEAL

STATE OF ____________    )
)  ss.:
COUNTY OF __________    )
On this ___ day of __________ 2013, before me, the undersigned officer, personally appeared ______________________________, and acknowledged himself to me to be a __________________________________________________________ of Citibank, N.A., and that as such officer, being duly authorized to do so pursuant to such entity’s by-laws or a resolution of its board of directors, executed and acknowledged the foregoing instrument for the purposes therein contained, by signing the name of such entity by him as such officer as his free and voluntary act and deed and the free and voluntary act and deed of said entity.
IN WITNESS WHEREOF, I hereunto set my hand and official seal.
    
Notary Public
NOTARIAL SEAL

EXHIBIT A-1
FORM OF RESTRICTED GLOBAL NET-LEASE MORTGAGE NOTE
SERIES [__], CLASS [__] NOTE
	
		
	Note Rate: [___]%
	Aggregate Series Principal Balance as of the Series Closing Date:  $[_________]

	Series Cut-off Date: [_____], 20[_]
	Note Principal Balance of the Class [__] Notes as of the Series Closing Date: $[_____]

	Series Closing Date:  [_____], 20[_]
	Initial Note Principal Balance of this Class [__] Note:  $[_________]

	First Payment Date: [_____], 20[__]
	CUSIP No. ___________

	Issuer(s):  [SPIRIT]
	ISIN No. _____________

	Indenture Trustee: 
Citibank, N.A.
	Property Manager and Special Servicer:   
Spirit Realty L.P.

	Note No.  __
	Legal Final Payment Date:  [____________]

	 
	 

A-1-1

NEITHER THIS NOTE NOR ANY BENEFICIAL INTEREST HEREIN HAS BEEN OR WILL BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES OR “BLUE SKY” LAWS OR OTHER APPLICABLE SECURITIES LAWS.
THIS NOTE AND INTERESTS IN THIS NOTE MAY NOT BE OFFERED, SOLD, REOFFERED, RESOLD, PLEDGED, EXCHANGED OR OTHERWISE TRANSFERRED IN VIOLATION OF THE SECURITIES ACT OR ANY STATE OR OTHER APPLICABLE SECURITIES LAWS. THIS NOTE, AND ANY BENEFICIAL INTEREST HEREIN, MAY BE TRANFERRED ONLY IN MINIMUM DENOMINATIONS OF $100,000 AND $1,000 INCREMENTS IN EXCESS THEREOF.  EACH PERSON WHO PURCHASES OR OTHERWISE ACQUIRES THIS NOTE (OR AN INTEREST HEREIN), BY PURCHASING OR OTHERWISE ACQUIRING SUCH NOTE OR INTEREST, IS DEEMED TO REPRESENT, WARRANT, ACKNOWLEDGE AND AGREE, FOR THE BENEFIT OF THE ISSUER, THAT IT AND ANY PERSON FOR WHICH IT IS ACTING WILL NOT REOFFER, RESELL, PLEDGE, EXCHANGE OR OTHERWISE TRANSFER THIS NOTE OR ANY INTEREST HEREIN EXCEPT IN COMPLIANCE WITH THE SECURITIES ACT AND ANY STATE OR OTHER APPLICABLE SECURITIES LAWS AND EXCEPT TO (A) TO SPIRIT MASTER FUNDING VII, LLC (THE “ISSUER”), (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A (A “QIB”) THAT ACQUIRES THIS NOTICE FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A OR (D) TO A PERSON WHO IS NOT A “U.S. PERSON” (AS DEFINED IN REGULATION S PROMULGATED UNDER THE SECURITIES ACT (“REGULATION S”)) OUTSIDE THE UNITED STATES ACQUIRING THIS NOTE IN ACCORDANCE WITH RULE 903 OR RULE 904 OF REGULATION S OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE RIGHT OF THE ISSUER, PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO THIS CLAUSE (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT.  
BY YOUR ACQUISITION OF THIS NOTE OR ANY INTEREST HEREIN, YOU SHALL BE DEEMED TO REPRESENT, COVENANT AND AGREE, FOR THE BENEFIT OF THE ISSUER, ANY PREVIOUS HOLDER OF THIS NOTE AND THE INDENTURE TRUSTEE, THAT (A) YOU ARE NOT ACQUIRING THIS NOTE (OR INTEREST HEREIN) FOR, ON BEHALF OF, OR WITH THE ASSETS OF A BENEFIT PLAN (AS DEFINED BELOW) OR WITH THE ASSETS OF A GOVERNMENTAL, NON-U.S. OR CHURCH PLAN THAT IS SUBJECT TO ANY FEDERAL, STATE, LOCAL OR OTHER LAW THAT IS SUBSTANTIALLY SIMILAR TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE 

A-1-2

INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR (B) YOU AGREE TO TREAT THIS NOTE (OR INTEREST HEREIN) (I) AS INDEBTEDNESS WITHOUT SUBSTANTIAL EQUITY FEATURES FOR PURPOSES OF THE PLAN ASSETS REGULATION (AS DEFINED HEREIN) AND (II) YOUR ACQUISITION, HOLDING AND DISPOSITION OF THIS NOTE (OR INTEREST HEREIN) WILL NOT RESULT IN OR CONSTITUTE A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR, IN THE CASE OF A GOVERNMENTAL, NON-U.S. OR CHURCH PLAN SUBJECT TO SIMILAR LAW, A VIOLATION OF SIMILAR LAW. FOR THESE PURPOSES, A “BENEFIT PLAN” INCLUDES (1) AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF ERISA, WHICH IS SUBJECT TO TITLE I OF ERISA, (2) A “PLAN” (AS DESCRIBED BY SECTION 4975(e)(1) OF THE CODE, WHICH IS SUBJECT TO SECTION 4975 OF THE CODE), OR (3) ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” PURSUANT TO 29 C.F.R. SECTION 2510.3-101 AS AMENDED BY SECTION 3(42) OF ERISA (THE “PLAN ASSETS REGULATION”) OF ANY OF THE FOREGOING BY REASON OF AN EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN THE ENTITY.
THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”), A NEW YORK CORPORATION, 55 WATER STREET, NEW YORK, NEW YORK 10004, OR A NOMINEE THEREOF.  THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN DTC OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE ISSUER OR THE NOTE REGISTRAR, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.  OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, AND ANY PAYMENT IS MADE TO CEDE & CO.  OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE THE REGISTERED OWNER, CEDE & CO., HAS AN INTEREST HEREIN.

A-1-3

Spirit Master Funding VII, LLC (the “Issuer”) a Delaware limited liability company, for value received, hereby promises to pay to Cede & Co. or its registered assigns, upon presentation and surrender of this Note (this “Note”), the principal sum of [___________________________] United States dollars ($[____________]) which shall be payable in the amounts and at the times set forth in the Indenture; provided, however, that the entire unpaid principal amount of this Note shall be due on the Legal Final Payment Date referred to above, together with interest hereon from time to time in the amounts and at the times specified in the Indenture referred to below.  Interest will be computed as provide din the Indenture.  Principal of this Note will be paid in the manner specified on the reverse hereof. 
The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.
Reference is made to the further provisions of this Note set forth on the reverse hereof, which will have the same effect as though fully set forth on the face of this Note.
Unless the certificate of authentication hereon has been executed by or on behalf of the Indenture Trustee, by manual signature, this Note will not be entitled to any benefit under the Indenture or be valid for any purpose.

A-1-4

IN WITNESS WHEREOF, the Issuers have caused this instrument to be duly executed by the Issuers.
Dated:    [__________]
[SPIRIT]

By:        
Authorized Signatory
CERTIFICATE OF AUTHENTICATION
This is one of the Notes of a Series of Notes issued under the within mentioned Indenture.
CITIBANK, N.A., 
not in its individual capacity but solely as Indenture Trustee
By:                                         
Authorized Signatory

A-1-5

SPIRIT MASTER FUNDING VII, LLC
NET-LEASE MORTGAGE NOTES, SERIES 2013-[  ]
This Note is one of the Net-Lease Mortgage Notes, Series 2013-[  ] issued by the Issuer pursuant to a Master Indenture, to be dated on or about December 23, 2013 (as amended or supplemented thereafter, the “Master Indenture”),between the Issuer and Citibank, N.A., as indenture trustee (in such capacity, the “Indenture Trustee”), as supplemented by the Series [_____] Indenture Supplement (together with the Master Indenture and any other indenture supplement thereto (each, a “Series Supplement”), the “Indenture”), and will be payable solely from the assets of the Issuers (individually, the “Collateral” and, collectively, the “Collateral Pool”).  To the extent not defined herein, capitalized terms used herein have the respective meanings assigned in the Indenture.  This Note is issued under and is subject to the terms, provisions and conditions of the Indenture, to which Indenture the Holder of this Note by virtue of the acceptance hereof assents and by which such holder is bound.  Capitalized terms used but not defined in this Note shall have the meanings set forth in the Indenture. 
This Note does not purport to summarize the Indenture and reference is made to the Indenture for the interests, rights and limitations of rights, benefits, obligations and duties evidenced thereby.  
The Initial Class Principal Balance of the Series 2013-[  ] Notes (the “Class”) is $[   ].  The Class Principal Balance of such Class and any date of determination, is the Initial Class Principal Balance of such Class, as such amount is reduced by (x) any payments of principal actually made on the Notes of such Class prior to such date of determination and (y) the principal balance of any Notes of such Class canceled prior to the date of determination.  Payments of principal of the Notes will be made in accordance with the provisions of, and subject to the limitations in, the Indenture.  The Notes are subject to optional redemption as described in the Indenture.
Pursuant to the terms of the Indenture, payments of any interest, principal and other amounts payable on this Note shall be made on the Class of Notes to which this Note belongs, pro rata among the Notes of such Class based on their respective Note Principal Balance, on the 20th day of each calendar month or, if any such day is not a Business Day, then on the next succeeding Business Day (each, a “Payment Date”), commencing on the first Payment Date specified above, to the Person in whose name this Note is registered at the close of business on the related Record Date.  All payments made under the Indenture on this Note will be made by the Indenture Trustee by wire transfer of immediately available funds to the account of the Person entitled thereto at a bank or other entity having appropriate facilities therefor, if such Noteholder shall have provided the Indenture Trustee with wiring instructions prior to the related Record Date (which wiring instructions may be in the form of a standing order applicable to all subsequent payments), or otherwise by check mailed to the address of such Noteholder as it appears in the Note Register as of the related Record Date.  Notwithstanding the foregoing, the final payment on this Note on the Final Payment Date will be made in like manner, but only upon presentation and surrender of this Note at the offices of the Indenture Trustee or such other location specified in the notice to the Holder hereof of such final payment.  Notwithstanding anything herein to the contrary, no payments will be made with respect to a Note that has previously been surrendered as contemplated by the 

A-1-6

preceding sentence or, with limited exception, that should have been surrendered as contemplated by the preceding sentence.
The Notes are limited in right of payment to certain distributions on the Mortgage Loans, Mortgaged Properties and Leases and the other Collateral included in the Collateral Pool, all as more specifically set forth herein and in the Indenture.  This Note does not represent an obligation of, or an interest in, Spirit Realty, L.P. or any affiliate thereof (other than the Issuer) and is not insured or guaranteed by any governmental agency or instrumentality or any other Person.  
Any payment to the Holder of this Note in reduction of the Note Principal Balance hereof is binding on such Holder and all future Holders of this Note and any Note issued upon the transfer hereof or in exchange therefor or in lieu hereof whether or not notation of such payment is made upon this Note.
The Class of Notes to which this Note belongs are issuable in fully registered form only without coupons in minimum denominations specified in the Indenture.  As provided in the Indenture and subject to certain limitations therein set forth, this Note is exchangeable for new Notes of the same Class in authorized denominations of a like Percentage Interest, as requested by the Holder surrendering the same.
No service charge will be imposed for any transfer or exchange of this Note, but the Indenture Trustee or the Note Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of this Note.
The Issuer, the Indenture Trustee, the Note Registrar and any agent of any thereof may treat the Person in whose name this Note is registered as the owner hereof for all purposes, and none of the Issuer, the Indenture Trustee, the Note Registrar or any such agent shall be affected by notice to the contrary.  Each Noteholder, by accepting a Note, and each beneficial owner of such Note hereby covenants and agrees that it will not at any time institute against the Issuer, or join in instituting against the Issuer, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar law.
The Indenture, the Property Management Agreement, any Property Transfer Agreements and the Notes are subject to amendment, including by supplemental indenture, from time to time in accordance with the terms thereof, including in circumstances which do not require the consent of any or all Noteholders.
Unless the certificate of authentication hereon has been executed by the Indenture Trustee, by manual signature, the Note shall not be entitled to any benefit under the Indenture or be valid for any purpose.
The registered Holder hereof, by its acceptance hereof, agrees that it will look solely to the Collateral Pool (to the extent of its rights therein) for payments hereunder.

A-1-7

The Indenture Trustee makes no representation as to the validity or sufficiency of this Note (other than as to its signature set forth hereon below).
THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

A-1-8

 
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto  
     
     
     
(please print or typewrite name and address including postal zip code of assignee)  
 
the within Note and hereby authorize(s) the registration of transfer of such Note to assignee on the Note Register.
I (we) further direct the Note Registrar to issue a new Net-Lease Mortgage Note of a like Note Principal Balance and Class to the above named assignee and deliver such Note to the following address: 
     
     
     
Dated:    
    
Signature by or on behalf of Assignor
    
Signature Guaranteed
PAYMENT INSTRUCTIONS
The Assignee should include the following for purposes of payment:
Payments shall, if permitted, be made by wire transfer or otherwise, in immediately available funds, to     
 
for the account of    .
 
    
 
Payments made by check (such check to be made payable 

A-1-9

to    )
 
and all applicable statements and notices should be mailed to    .
This information is provided by ____________________________, the Assignee named above, or _______________________________________, as its agent.

A-1-10

EXHIBIT A-2
FORM OF REGULATION S GLOBAL NET-LEASE MORTGAGE NOTE
[TEMPORARY] [PERMANENT] REGULATION S GLOBAL NOTE
SERIES [__], CLASS [__] NOTE
	
		
	Note Rate: [___]%
	Aggregate Series Principal Balance as of the Series Closing Date:  $[_________]

	Series Cut-off Date: [_____], 20[_]
	Note Principal Balance of the Class [__] Notes as of the Series Closing Date: $[_____]

	Series Closing Date:  [_____], 20[_]
	Initial Note Principal Balance of this Class [__] Note:  $[_________]

	First Payment Date: [____], 20[_]
	CUSIP No. ___________

	Issuer(s):  [SPIRIT]
	ISIN No. _____________

	Indenture Trustee: 
Citibank, N.A.
	Property Manager and Special Servicer:   
Spirit Realty L.P.

	Note No.  __
	Legal Final Payment Date:  [____________]

A-2-1

NEITHER THIS NOTE NOR ANY BENEFICIAL INTEREST HEREIN HAS BEEN OR WILL BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE OR OTHER APPLICABLE SECURITIES LAWS. 
UNTIL 40 DAYS AFTER THE ORIGINAL ISSUE DATE OF THE NOTES (THE “RESTRICTED PERIOD”) IN CONNECTION WITH THE OFFERING OF THE NOTES IN THE UNITED STATES FROM OUTSIDE OF THE UNITED STATES, THE SALE, PLEDGE OR TRANSFER OF THIS NOTE IS SUBJECT TO CERTAIN CONDITIONS AND RESTRICTIONS.  THE HOLDER HEREOF, BY PURCHASING OR OTHERWISE ACQUIRING THIS NOTE, ACKNOWLEDGES THAT THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT AND AGREES FOR THE BENEFIT OF THE ISSUER THAT THIS NOTE MAY BE TRANSFERRED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS OF THE STATES, TERRITORIES AND POSSESSIONS OF THE UNITED STATES GOVERNING THE OFFER AND SALE OF SECURITIES, AND PRIOR TO THE EXPIRATION OF THE RESTRICTED PERIOD, ONLY (1) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT, (2) PURSUANT TO AND IN ACCORDANCE WITH RULE 144A UNDER THE SECURITIES ACT OR (3) TO THE ISSUER.
THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”), A NEW YORK CORPORATION, 55 WATER STREET, NEW YORK, NEW YORK 10004, OR A NOMINEE THEREOF.  THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN DTC OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE ISSUER OR THE NOTE REGISTRAR, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.  OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, AND ANY PAYMENT IS MADE TO CEDE & CO.  OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE THE REGISTERED OWNER, CEDE & CO., HAS AN INTEREST HEREIN.
BY YOUR ACQUISITION OF THIS NOTE OR ANY INTEREST HEREIN, YOU SHALL BE DEEMED TO REPRESENT, COVENANT AND AGREE, FOR THE BENEFIT OF THE ISSUER, ANY PREVIOUS HOLDER OF THIS NOTE AND THE INDENTURE TRUSTEE, THAT (A) YOU ARE NOT ACQUIRING THIS NOTE (OR INTEREST HEREIN) FOR, ON BEHALF OF, OR WITH THE ASSETS OF A BENEFIT PLAN (AS DEFINED BELOW) OR WITH THE ASSETS OF A GOVERNMENTAL, NON-U.S. OR CHURCH PLAN THAT IS 

A-2-2

SUBJECT TO ANY FEDERAL, STATE, LOCAL OR OTHER LAW THAT IS SUBSTANTIALLY SIMILAR TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR (B) YOU AGREE TO TREAT THIS NOTE (OR INTEREST HEREIN) (I) AS INDEBTEDNESS WITHOUT SUBSTANTIAL EQUITY FEATURES FOR PURPOSES OF THE PLAN ASSETS REGULATION (AS DEFINED HEREIN) AND (II) YOUR ACQUISITION, HOLDING AND DISPOSITION OF THIS NOTE (OR INTEREST HEREIN) WILL NOT RESULT IN OR CONSTITUTE A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR, IN THE CASE OF A GOVERNMENTAL, NON-U.S. OR CHURCH PLAN SUBJECT TO SIMILAR LAW, A VIOLATION OF SIMILAR LAW. FOR THESE PURPOSES, A “BENEFIT PLAN” INCLUDES (1) AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF ERISA, WHICH IS SUBJECT TO TITLE I OF ERISA, (2) A “PLAN” (AS DESCRIBED BY SECTION 4975(e)(1) OF THE CODE, WHICH IS SUBJECT TO SECTION 4975 OF THE CODE), OR (3) ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” PURSUANT TO 29 C.F.R. SECTION 2510.3-101 AS AMENDED BY SECTION 3(42) OF ERISA (THE “PLAN ASSETS REGULATION”) OF ANY OF THE FOREGOING BY REASON OF AN EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN THE ENTITY.

A-2-3

Spirit Master Funding VII, LLC (the “Issuer”) a Delaware limited liability company, for value received, hereby promises to pay to Cede & Co. or its registered assigns, upon presentation and surrender of this Note (this “Note”), the principal sum of [___________________________] United States dollars ($[____________]) which shall be payable in the amounts and at the times set forth in the Indenture; provided, however, that the entire unpaid principal amount of this Note shall be due on the Legal Final Payment Date referred to above, together with interest hereon from time to time in the amounts and at the times specified in the Indenture referred to below.  Interest will be computed as provide din the Indenture.  Principal of this Note will be paid in the manner specified on the reverse hereof. 
The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.
Reference is made to the further provisions of this Note set forth on the reverse hereof, which will have the same effect as though fully set forth on the face of this Note.
Unless the certificate of authentication hereon has been executed by or on behalf of the Indenture Trustee, by manual signature, this Note will not be entitled to any benefit under the Indenture or be valid for any purpose.

A-2-4

IN WITNESS WHEREOF, the Issuers have caused this instrument to be duly executed by the Issuers.
Dated:    [__________]
[SPIRIT]

By:        
Authorized Signatory
CERTIFICATE OF AUTHENTICATION
This is one of the Notes of a Series of Notes issued under the within mentioned Indenture.
CITIBANK, N.A., 
not in its individual capacity but solely as Indenture Trustee
By:                                         
Authorized Signatory

A-2-5

SPIRIT MASTER FUNDING VII, LLC
NET-LEASE MORTGAGE NOTES, SERIES 2013-[  ]
This Note is one of the Net-Lease Mortgage Notes, Series 2013-[  ] issued by the Issuer pursuant to a Master Indenture, to be dated on or about December 23, 2013 (as amended or supplemented thereafter, the “Master Indenture”),between the Issuer and Citibank, N.A., as indenture trustee (in such capacity, the “Indenture Trustee”), as supplemented by the Series [_____] Indenture Supplement (together with the Master Indenture and any other indenture supplement thereto (each, a “Series Supplement”), the “Indenture”), and will be payable solely from the assets of the Issuers (individually, the “Collateral” and, collectively, the “Collateral Pool”).  To the extent not defined herein, capitalized terms used herein have the respective meanings assigned in the Indenture.  This Note is issued under and is subject to the terms, provisions and conditions of the Indenture, to which Indenture the Holder of this Note by virtue of the acceptance hereof assents and by which such holder is bound.  Capitalized terms used but not defined in this Note shall have the meanings set forth in the Indenture. 
This Note does not purport to summarize the Indenture and reference is made to the Indenture for the interests, rights and limitations of rights, benefits, obligations and duties evidenced thereby.  
The Initial Class Principal Balance of the Series 2013-[  ] Notes (the “Class”) is $[   ].  The Class Principal Balance of such Class and any date of determination, is the Initial Class Principal Balance of such Class, as such amount is reduced by (x) any payments of principal actually made on the Notes of such Class prior to such date of determination and (y) the principal balance of any Notes of such Class canceled prior to the date of determination.  Payments of principal of the Notes will be made in accordance with the provisions of, and subject to the limitations in, the Indenture.  The Notes are subject to optional redemption as described in the Indenture.
Pursuant to the terms of the Indenture, payments of any interest, principal and other amounts payable on this Note shall be made on the Class of Notes to which this Note belongs, pro rata among the Notes of such Class based on their respective Note Principal Balance, on the 20th day of each calendar month or, if any such day is not a Business Day, then on the next succeeding Business Day (each, a “Payment Date”), commencing on the first Payment Date specified above, to the Person in whose name this Note is registered at the close of business on the related Record Date.  All payments made under the Indenture on this Note will be made by the Indenture Trustee by wire transfer of immediately available funds to the account of the Person entitled thereto at a bank or other entity having appropriate facilities therefor, if such Noteholder shall have provided the Indenture Trustee with wiring instructions prior to the related Record Date (which wiring instructions may be in the form of a standing order applicable to all subsequent payments), or otherwise by check mailed to the address of such Noteholder as it appears in the Note Register as of the related Record Date.  Notwithstanding the foregoing, the final payment on this Note on the Final Payment Date will be made in like manner, but only upon presentation and surrender of this Note at the offices of the Indenture Trustee or such other location specified in the notice to the Holder hereof of such final payment.  Notwithstanding anything herein to the contrary, no payments will be made with respect to a Note that has previously been surrendered as contemplated by the 

A-2-6

preceding sentence or, with limited exception, that should have been surrendered as contemplated by the preceding sentence.
The Notes are limited in right of payment to certain distributions on the Mortgage Loans, Mortgaged Properties and Leases and the other Collateral included in the Collateral Pool, all as more specifically set forth herein and in the Indenture.  This Note does not represent an obligation of, or an interest in, Spirit Realty, L.P. or any affiliate thereof (other than the Issuer) and is not insured or guaranteed by any governmental agency or instrumentality or any other Person.
Any payment to the Holder of this Note in reduction of the Note Principal Balance hereof is binding on such Holder and all future Holders of this Note and any Note issued upon the transfer hereof or in exchange therefor or in lieu hereof whether or not notation of such payment is made upon this Note.
The Class of Notes to which this Note belongs are issuable in fully registered form only without coupons in minimum denominations specified in the Indenture.  As provided in the Indenture and subject to certain limitations therein set forth, this Note is exchangeable for new Notes of the same Class in authorized denominations of a like Percentage Interest, as requested by the Holder surrendering the same.
No transfer of this Note or any interest herein may be made unless that transfer is made pursuant to an effective registration statement under the Securities Act, and effective registration or qualification under applicable state securities laws, or is made in a transaction that does not require such registration or qualification.  No person is obligated to register or qualify any of the Notes under the Securities Act or any other securities law or to take any action not otherwise required under the Indenture to permit the transfer of any Note or interest therein without registration or qualification.
Each transferee of a Note will be deemed to have represented, warranted and agreed that either (i) such transferee is not, and is not purchasing such Note on behalf of, as a fiduciary of, as trustee of, or with the assets of, a Plan or (ii)(A) such transferee will treat such Note as indebtedness without substantial equity features for purposes of Department of Labor Regulations and (B) such transferee’s acquisition and continued holding of such Note or Ownership Interest therein will not give rise to a non-exempt prohibited transaction described in Section 406 of ERISA or Section 4975 of the Code (or any materially similar applicable law).
As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Note Register upon surrender of this Note for registration of transfer at the offices of the Note Registrar, duly endorsed by, or accompanied by a written instrument of transfer in the form satisfactory to the Note Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of the same Class in authorized denominations evidencing the same Aggregate Series Principal Balance will be issued to the designated transferee or transferees.
No service charge will be imposed for any transfer or exchange of this Note, but the Indenture Trustee or the Note Registrar may require payment of a sum sufficient to cover any tax 

A-2-7

or other governmental charge that may be imposed in connection with any transfer or exchange of this Note.
[After such time as the Restricted Period shall have terminated, and subject to the receipt by the Indenture Trustee of a certificate substantially in the form of Exhibit D-4 to the Indenture, beneficial interests in this Note may be exchanged for an equal aggregate principal amount of beneficial interest in the Permanent Regulation S Global Note.  Upon any exchange of any beneficial interest in this Note for a beneficial interest in the Permanent Regulation S Global Note, (i) this Note shall be endorsed by the Indenture Trustee to reflect the reduction of the principal amount evidenced hereby, whereupon the principal amount of this Note shall be reduced for all purposes by the amount so exchanged and endorsed and (ii) the Permanent Regulation S Global Note shall be endorsed by the Indenture Trustee to reflect the increase of the principal amount evidenced thereby, whereupon the principal amount of the Permanent Regulation S Global Note shall be increased for all purposes by the amount so exchanged and endorsed.]
The Issuer[s], the Indenture Trustee, the Note Registrar and any agent of any thereof may treat the Person in whose name this Note is registered as the owner hereof for all purposes, and none of the Issuer[s], the Indenture Trustee, the Note Registrar or any such agent shall be affected by notice to the contrary.
The Indenture, the Property Management Agreement, any Property Transfer Agreements and the Notes are subject to amendment, including by supplemental indenture, from time to time in accordance with the terms thereof, including in circumstances which do not require the consent of any or all Noteholders.
Unless the certificate of authentication hereon has been executed by the Indenture Trustee, by manual signature, the Note shall not be entitled to any benefit under the Indenture or be valid for any purpose.
The registered Holder hereof, by its acceptance hereof, agrees that it will look solely to the Collateral Pool (to the extent of its rights therein) for payments hereunder.
The Indenture Trustee makes no representation as to the validity or sufficiency of this Note (other than as to its signature set forth hereon below).
This Note shall be governed by and construed in accordance with the laws of the State of New York (including Section 5-1401 of the General Obligations Law of the State of New York, but otherwise without regard to conflict of laws principles).

A-2-8

ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto  
     
     
     
(please print or typewrite name and address including postal zip code of assignee)  
 
the within Note and hereby authorize(s) the registration of transfer of such Note to assignee on the Note Register.
I (we) further direct the Note Registrar to issue a new Net-Lease Mortgage Note of a like Note Principal Balance and Class to the above named assignee and deliver such Note to the following address: 
     
     
     
Dated:    
    
Signature by or on behalf of Assignor
    
Signature Guaranteed
PAYMENT INSTRUCTIONS
The Assignee should include the following for purposes of payment:
Payments shall, if permitted, be made by wire transfer or otherwise, in immediately available funds, to     
 
for the account of    .
 
    
 
Payments made by check (such check to be made payable to    )

A-2-9

 
and all applicable statements and notices should be mailed to    .
This information is provided by                                                 , the Assignee named above, or                                                                          , as its agent.

A-2-10

EXHIBIT A-3
FORM OF DEFINITIVE GLOBAL NET-LEASE MORTGAGE NOTE
DEFINITIVE NOTE
SERIES [__], CLASS [__] NOTE
	
		
	Note Rate: [___]%
	Aggregate Series Principal Balance as of the Series Closing Date:  $[_________]

	Series Cut-off Date: [_____], 20[_]
	Note Principal Balance of the Class [__] Notes as of the Series Closing Date: $[_____]

	Series Closing Date:  [_____], 20[_]
	Initial Note Principal Balance of this Class [__] Note:  $[_________]

	First Payment Date: [_____], 20[_]
	CUSIP No. ___________

	Issuer(s):  [SPIRIT]
	ISIN No. _____________

	Indenture Trustee: 
Citibank, N.A.
	Property Manager and Special Servicer:   
Spirit Realty L.P.

	Note No.  __
	Legal Final Payment Date:  [____________]

A-3-1

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”), A NEW YORK CORPORATION, 55 WATER STREET, NEW YORK, NEW YORK 10004, OR A NOMINEE THEREOF.  THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN DTC OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE ISSUER OR THE NOTE REGISTRAR, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.  OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, AND ANY PAYMENT IS MADE TO CEDE & CO.  OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE THE REGISTERED OWNER, CEDE & CO., HAS AN INTEREST HEREIN.
BY YOUR ACQUISITION OF THIS NOTE OR ANY INTEREST HEREIN, YOU SHALL BE DEEMED TO REPRESENT, COVENANT AND AGREE, FOR THE BENEFIT OF THE ISSUER, ANY PREVIOUS HOLDER OF THIS NOTE AND THE INDENTURE TRUSTEE, THAT (A) YOU ARE NOT ACQUIRING THIS NOTE (OR INTEREST HEREIN) FOR, ON BEHALF OF, OR WITH THE ASSETS OF A BENEFIT PLAN (AS DEFINED BELOW) OR WITH THE ASSETS OF A GOVERNMENTAL, NON-U.S. OR CHURCH PLAN THAT IS SUBJECT TO ANY FEDERAL, STATE, LOCAL OR OTHER LAW THAT IS SUBSTANTIALLY SIMILAR TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR (B) YOU AGREE TO TREAT THIS NOTE (OR INTEREST HEREIN) (I) AS INDEBTEDNESS WITHOUT SUBSTANTIAL EQUITY FEATURES FOR PURPOSES OF THE PLAN ASSETS REGULATION (AS DEFINED HEREIN) AND (II) YOUR ACQUISITION, HOLDING AND DISPOSITION OF THIS NOTE (OR INTEREST HEREIN) WILL NOT RESULT IN OR CONSTITUTE A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR, IN THE CASE OF A GOVERNMENTAL, NON-U.S. OR CHURCH PLAN SUBJECT TO SIMILAR LAW, A VIOLATION OF SIMILAR LAW. FOR THESE PURPOSES, A “BENEFIT PLAN” INCLUDES (1) AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF ERISA, WHICH IS SUBJECT TO TITLE I OF ERISA, (2) A “PLAN” (AS DESCRIBED BY SECTION 4975(e)(1) OF THE CODE, WHICH IS SUBJECT TO SECTION 4975 OF THE CODE), OR (3) ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” PURSUANT TO 29 C.F.R. SECTION 2510.3-101 AS AMENDED BY SECTION 3(42) OF ERISA (THE “PLAN ASSETS REGULATION”) OF ANY OF THE FOREGOING BY REASON OF AN EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN THE ENTITY.

A-3-2

[THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), ANY STATE SECURITIES LAWS IN THE UNITED STATES OR THE SECURITIES LAWS OF ANY OTHER JURISDICTION, AND MAY NOT BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT AS PERMITTED BY THIS LEGEND.  THE HOLDER HEREOF, BY ITS ACCEPTANCE OF THIS NOTE, REPRESENTS, ACKNOWLEDGES AND AGREES THAT IT WILL NOT REOFFER, RESELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE EXCEPT IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND EXCEPT (A) IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER, WHOM THE SELLER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, PROVIDED THAT SUCH PURCHASER DELIVERS ALL DOCUMENTS AND CERTIFICATIONS AS THE INDENTURE TRUSTEE MAY REASONABLY REQUIRE; OR (B) OUTSIDE THE UNITED STATES IN “OFFSHORE TRANSACTIONS” TO NON-US PERSONS IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT.
THE HOLDER HEREOF, BY ACCEPTING THIS NOTE, AGREES TO TREAT THIS NOTE FOR PURPOSES OF UNITED STATES FEDERAL, STATE AND LOCAL INCOME OR FRANCHISE TAXES AND ANY OTHER TAXES IMPOSED ON OR MEASURED BY INCOME, AS INDEBTEDNESS OF THE ISSUER[S] AND TO REPORT THIS NOTE ON ALL APPLICABLE TAX RETURNS IN A MANNER CONSISTENT WITH SUCH TREATMENT.
REDUCTIONS OF THE NOTE PRINCIPAL BALANCE OF THIS NOTE MAY BE MADE MONTHLY AS SET FORTH IN THE INDENTURE REFERRED TO HEREIN.  ACCORDINGLY, THE OUTSTANDING NOTE PRINCIPAL BALANCE HEREOF AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ABOVE.
THE NOTES ARE SOLELY OBLIGATIONS OF THE ISSUER[S] AND DO NOT REPRESENT OBLIGATIONS OF ANY OTHER PERSON, INCLUDING, WITHOUT LIMITATION, THE INDENTURE TRUSTEE, THE COLLATERAL AGENT, THE PROPERTY MANAGER, THE SUPPORT PROVIDER, THE SPECIAL SERVICER, THE BACK-UP MANAGER, THE INITIAL PURCHASERS OR ANY OF THEIR RESPECTIVE AFFILIATES. THE NOTES ARE NOT INSURED OR GUARANTEED BY ANY GOVERNMENTAL AGENCY OR INSTRUMENTALITY.  EACH NOTE IS ONE OF A SERIES OF NOTES, ALL OF WHICH ARE PAYABLE SOLELY FROM THE PROCEEDS OF THE COLLATERAL POOL AND FROM DRAWINGS ON THE INSURANCE POLICY.  ADDITIONAL SERIES OF NOTES SECURED PRO RATA BY THE COLLATERAL POOL MAY ALSO BE ISSUED IN THE FUTURE.  PROSPECTIVE INVESTORS SHOULD 

A-3-3

MAKE AN INVESTMENT DECISION BASED UPON AN ANALYSIS OF THE SUFFICIENCY OF THE COLLATERAL POOL.]

A-3-4

Spirit Master Funding VII, LLC (the “Issuer”) a Delaware limited liability company, for value received, hereby promises to pay to Cede & Co. or its registered assigns, upon presentation and surrender of this Note (this “Note”), the principal sum of [___________________________] United States dollars ($[____________]) which shall be payable in the amounts and at the times set forth in the Indenture; provided, however, that the entire unpaid principal amount of this Note shall be due on the Legal Final Payment Date referred to above, together with interest hereon from time to time in the amounts and at the times specified in the Indenture referred to below.  Interest will be computed as provide din the Indenture.  Principal of this Note will be paid in the manner specified on the reverse hereof. 
The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.
Reference is made to the further provisions of this Note set forth on the reverse hereof, which will have the same effect as though fully set forth on the face of this Note.
Unless the certificate of authentication hereon has been executed by or on behalf of the Indenture Trustee, by manual signature, this Note will not be entitled to any benefit under the Indenture or be valid for any purpose.

A-3-5

IN WITNESS WHEREOF, the Issuers have caused this instrument to be duly executed by the Issuers.
Dated:    [__________]
[SPIRIT]

By:        
Authorized Signatory
CERTIFICATE OF AUTHENTICATION
This is one of the Notes of a Series of Notes issued under the within mentioned Indenture.
CITIBANK, N.A., 
not in its individual capacity but solely as Indenture Trustee
By:                                         
Authorized Signatory

A-3-6

SPIRIT MASTER FUNDING VII, LLC
NET-LEASE MORTGAGE NOTES, SERIES 2013-[  ]
This Note is one of the Net-Lease Mortgage Notes, Series 2013-[  ] issued by the Issuer pursuant to a Master Indenture, to be dated on or about December 23, 2013 (as amended or supplemented thereafter, the “Master Indenture”),between the Issuer and Citibank, N.A., as indenture trustee (in such capacity, the “Indenture Trustee”), as supplemented by the Series [_____] Indenture Supplement (together with the Master Indenture and any other indenture supplement thereto (each, a “Series Supplement”), the “Indenture”), and will be payable solely from the assets of the Issuers (individually, the “Collateral” and, collectively, the “Collateral Pool”).  To the extent not defined herein, capitalized terms used herein have the respective meanings assigned in the Indenture.  This Note is issued under and is subject to the terms, provisions and conditions of the Indenture, to which Indenture the Holder of this Note by virtue of the acceptance hereof assents and by which such holder is bound.  Capitalized terms used but not defined in this Note shall have the meanings set forth in the Indenture. 
This Note does not purport to summarize the Indenture and reference is made to the Indenture for the interests, rights and limitations of rights, benefits, obligations and duties evidenced thereby.  
The Initial Class Principal Balance of the Series 2013-[  ] Notes (the “Class”) is $[   ].  The Class Principal Balance of such Class and any date of determination, is the Initial Class Principal Balance of such Class, as such amount is reduced by (x) any payments of principal actually made on the Notes of such Class prior to such date of determination and (y) the principal balance of any Notes of such Class canceled prior to the date of determination.  Payments of principal of the Notes will be made in accordance with the provisions of, and subject to the limitations in, the Indenture.  The Notes are subject to optional redemption as described in the Indenture.
Pursuant to the terms of the Indenture, payments of any interest, principal and other amounts payable on this Note shall be made on the Class of Notes to which this Note belongs, pro rata among the Notes of such Class based on their respective Note Principal Balance, on the 20th day of each calendar month or, if any such day is not a Business Day, then on the next succeeding Business Day (each, a “Payment Date”), commencing on the first Payment Date specified above, to the Person in whose name this Note is registered at the close of business on the related Record Date.  All payments made under the Indenture on this Note will be made by the Indenture Trustee by wire transfer of immediately available funds to the account of the Person entitled thereto at a bank or other entity having appropriate facilities therefor, if such Noteholder shall have provided the Indenture Trustee with wiring instructions prior to the related Record Date (which wiring instructions may be in the form of a standing order applicable to all subsequent payments), or otherwise by check mailed to the address of such Noteholder as it appears in the Note Register as of the related Record Date.  Notwithstanding the foregoing, the final payment on this Note on the Final Payment Date will be made in like manner, but only upon presentation and surrender of this Note at the offices of the Indenture Trustee or such other location specified in the notice to the Holder hereof of such final payment.  Notwithstanding anything herein to the contrary, no payments will be made with respect to a Note that has previously been surrendered as contemplated by the 

A-3-7

preceding sentence or, with limited exception, that should have been surrendered as contemplated by the preceding sentence.
The Notes are limited in right of payment to certain distributions on the Mortgage Loans, Mortgaged Properties and Leases and the other Collateral included in the Collateral Pool, all as more specifically set forth herein and in the Indenture.  This Note does not represent an obligation of, or an interest in, Spirit Realty, L.P. or any affiliate thereof (other than the Issuer) and is not insured or guaranteed by any governmental agency or instrumentality or any other Person.
Any payment to the Holder of this Note in reduction of the Note Principal Balance hereof is binding on such Holder and all future Holders of this Note and any Note issued upon the transfer hereof or in exchange therefor or in lieu hereof whether or not notation of such payment is made upon this Note.
The Class of Notes to which this Note belongs are issuable in fully registered form only without coupons in minimum denominations specified in the Indenture.  As provided in the Indenture and subject to certain limitations therein set forth, this Note is exchangeable for new Notes of the same Class in authorized denominations of a like Percentage Interest, as requested by the Holder surrendering the same.
No transfer of this Note or any interest herein may be made unless that transfer is made pursuant to an effective registration statement under the Securities Act, and effective registration or qualification under applicable state securities laws, or is made in a transaction that does not require such registration or qualification.  No person is obligated to register or qualify any of the Notes under the Securities Act or any other securities law or to take any action not otherwise required under the Indenture to permit the transfer of any Note or interest therein without registration or qualification.
Each transferee of a Note will be deemed to have represented, warranted and agreed that either (i) such transferee is not, and is not purchasing such Note on behalf of, as a fiduciary of, as trustee of, or with the assets of, a Plan or (ii)(A) such transferee will treat such Note as indebtedness without substantial equity features for purposes of Department of Labor Regulations and (B) such transferee’s acquisition and continued holding of such Note or Ownership Interest therein will not give rise to a non-exempt prohibited transaction described in Section 406 of ERISA or Section 4975 of the Code (or any materially similar applicable law).
As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Note is registrable in the Note Register upon surrender of this Note for registration of transfer at the offices of the Note Registrar, duly endorsed by, or accompanied by a written instrument of transfer in the form satisfactory to the Note Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of the same Class in authorized denominations evidencing the same Aggregate Series Principal Balance will be issued to the designated transferee or transferees.
No service charge will be imposed for any transfer or exchange of this Note, but the Indenture Trustee or the Note Registrar may require payment of a sum sufficient to cover any tax 

A-3-8

or other governmental charge that may be imposed in connection with any transfer or exchange of this Note.
The Issuer[s], the Indenture Trustee, the Note Registrar and any agent of any thereof may treat the Person in whose name this Note is registered as the owner hereof for all purposes, and none of the Issuer[s], the Indenture Trustee, the Note Registrar or any such agent shall be affected by notice to the contrary.
The Indenture, the Property Management Agreement, any Property Transfer Agreements and the Notes are subject to amendment, including by supplemental indenture, from time to time in accordance with the terms thereof, including in circumstances which do not require the consent of any or all Noteholders.
Unless the certificate of authentication hereon has been executed by the Note Registrar, by manual signature, the Note shall not be entitled to any benefit under the Indenture or be valid for any purpose.
The registered Holder hereof, by its acceptance hereof, agrees that it will look solely to the Collateral Pool (to the extent of its rights therein) for payments hereunder.
The Indenture Trustee makes no representation as to the validity or sufficiency of this Note (other than as to its signature set forth hereon below).
This Note shall be governed by and construed in accordance with the laws of the State of New York (including Section 5-1401 of the General Obligations Law of the State of New York, but otherwise without regard to conflict of laws principles).

A-3-9

ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto  
     
     
     
(please print or typewrite name and address including postal zip code of assignee)  
 
the within Note and hereby authorize(s) the registration of transfer of such Note to assignee on the Note Register.
I (we) further direct the Note Registrar to issue a new Net-Lease Mortgage Note of a like Note Principal Balance and Class to the above named assignee and deliver such Note to the following address: 
     
     
     
Dated:    
    
Signature by or on behalf of Assignor
    
Signature Guaranteed
PAYMENT INSTRUCTIONS
The Assignee should include the following for purposes of payment:
Payments shall, if permitted, be made by wire transfer or otherwise, in immediately available funds, to     
 
for the account of    .
 
    
 
Payments made by check (such check to be made payable to    )

A-3-10

 
and all applicable statements and notices should be mailed to    .
This information is provided by ____________________________, the Assignee named above, or _______________________________________, as its agent.

A-3-11

EXHIBIT B
FORM OF TRUSTEE REPORT

B-1

EXHIBIT C-1
FORM OF TRANSFEROR CERTIFICATE
FOR TRANSFERS OF DEFINITIVE NOTES
[Date]
Citibank, N.A.
480 Washington Boulevard, 30th Floor
Jersey City, New Jersey 07310
Attention:  Agency and Trust – Spirit Master Finding VII
		
	Re:
	Spirit Master Funding VII, LLC, Net-Lease Mortgage Notes, Series 20[ ]-[ ] (the “Notes”)

Ladies and Gentlemen:
This letter is delivered to you in connection with the transfer by ___________ (the “Transferor”) to _____________ (the “Transferee”) of Class A-[1][2] Notes having an initial Aggregate Series Principal Balance as of [_____], 20[ ] (the “Closing Date”) of $[_________] (the “Transferred Notes”).  The Notes, including the Transferred Notes, were issued pursuant to a Master Indenture, to be dated on or about December 23, 2013 (as amended or supplemented thereafter, the “Master Indenture”), between Spirit Master Funding VII, LLC (the “Issuer”) and Citibank, N.A., as indenture trustee (in such capacity, the “Indenture Trustee”), as supplemented by the Series 20[ ]-[ ] Supplement (together with the Master Indenture and any other indenture supplement thereto (each, a “Supplement”), the “Indenture”).  All capitalized terms used but not otherwise defined herein shall have the respective meanings set forth in the Indenture.  The Transferor hereby certifies, represents and warrants to you, as Note Registrar, and for the benefit of the Issuer, the Indenture Trustee and the Transferee, that:
1.    The Transferor is the lawful owner of the Transferred Notes with the full right to transfer such Notes free from any and all claims and encumbrances whatsoever.
2.    Neither the Transferor nor anyone acting on its behalf has (a) offered, transferred, pledged, sold or otherwise disposed of any Note, any interest in any Note or any other similar security to any person in any manner, (b) solicited any offer to buy or accept a transfer, pledge or other disposition of any Note, any interest in any Note or any other similar security from any person in any manner, (c) otherwise approached or negotiated with respect to any Note, any interest in any Note or any other similar security with any person in any manner, (d) made any general solicitation by means of general advertising or in any other manner, or (e) taken any other action, which (in the case of any of the acts described in clauses (a) through (e) hereof) would constitute a distribution of any Note under the Securities Act of 1933, as amended (the “Securities Act”), or would render the disposition of any Note a violation of Section 5 of the Securities Act or any state securities laws, or would require registration or qualification of any Note pursuant to the Securities Act or any state securities laws.

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[3.    The Transferor and any person acting on behalf of the Transferor in this matter reasonably believe that the Transferee is a Non-U.S. Person that is not acquiring the Transferred Notes for the account or benefit of any U.S. Person (as defined in Regulation S) and is acquiring the Transferred Notes in an offshore transaction outside the United States.  No directed selling efforts have been made in contravention of the requirements of Rule 903(b) or 904(b) of Regulation S, as applicable.  The transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act.]
[3.    The Transferor and any person acting on behalf of the Transferor in this matter reasonably believe that the Transferee is a “qualified institutional buyer” as that term is defined in Rule 144A (“Rule 144A”) under the Securities Act (a “Qualified Institutional Buyer”) purchasing for its own account (with respect to which the transferee exercises sole investment discretion) or for the account of a Qualified Institutional Buyer and the Notes are being transferred in accordance with Rule 144A.  In determining whether the Transferee is a Qualified Institutional Buyer, the Transferor and any person acting on behalf of the Transferor in this matter have relied upon the following method(s) of establishing the Transferee’s ownership and discretionary investments of securities (check one or more):
		
	___
	(a)    The Transferee’s most recent publicly available financial statements, which statements present the information as of a date within 16 months preceding the date of sale of the Transferred Note in the case of a U.S. purchaser and within 18 months preceding such date of sale for a foreign purchaser; or

		
	___
	(b)    The most recent publicly available information appearing in documents filed by the Transferee with the SEC or another United States federal, state, or local governmental agency or self-regulatory organization, or with a foreign governmental agency or self-regulatory organization, which information is as of a date within 16 months preceding the date of sale of the Transferred Note in the case of a U.S. purchaser and within 18 months preceding such date of sale for a foreign purchaser; or

		
	___
	(c)    The most recent publicly available information appearing in a recognized securities manual, which information is as of a date within 16 months preceding the date of sale of the Transferred Note in the case of a U.S. purchaser and within 18 months preceding such date of sale for a foreign purchaser; or

		
	___
	(d)    A certification by the chief financial officer, a person fulfilling an equivalent function, or other executive officer of the Transferee, specifying the amount of securities owned and invested on a discretionary basis by the Transferee as of a specific date on or since the close of the Transferee’s most recent fiscal year, or, in the case of a Transferee that is a member of a “family of investment companies”, as that term is defined in Rule 144A, a certification by an executive officer of the investment adviser specifying the amount of 

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securities owned by the “family of investment companies” as of a specific date on or since the close of the Transferee’s most recent fiscal year.
4.    The Transferor and any person acting on behalf of the Transferor understand that in determining the aggregate amount of securities owned and invested on a discretionary basis by an entity for purposes of establishing whether such entity is a Qualified Institutional Buyer:
		
	(a)
	the following instruments and interests shall be excluded: securities of issuers that are affiliated with the Transferee; securities that are part of an unsold allotment to or subscription by the Transferee, if the Transferee is a dealer; securities of issuers that are part of the Transferee’s “family of investment companies”, if the Transferee is a registered investment company; bank deposit notes and certificates of deposit; loan participations; repurchase agreements; securities owned but subject to a repurchase agreement; and currency, interest rate and commodity swaps;

		
	(b)
	the aggregate value of the securities shall be the cost of such securities, except where the entity reports its securities holdings in its financial statements on the basis of their market value, and no current information with respect to the cost of those securities has been published, in which case the securities may be valued at market;

		
	(c)
	securities owned by subsidiaries of the entity that are consolidated with the entity in its financial statements prepared in accordance with generally accepted accounting principles may be included if the investments of such subsidiaries are managed under the direction of the entity, except that, unless the entity is a reporting company under Section 13 or Section 15(d) of the Securities Exchange Act of 1934, as amended, securities owned by such subsidiaries may not be included if the entity itself is a majority-owned subsidiary that would be included in the consolidated financial statements of another enterprise.

5.    The Transferor or a person acting on its behalf has taken reasonable steps to ensure that the Transferee is aware that the Transferor is relying on the exemption from the provisions of Section 5 of the Securities Act provided by [Rule 144A][Regulation S].
6.    The Transferor or a person acting on its behalf has furnished, or caused to be furnished, to the Transferee all information regarding (a) the Transferred Notes and payments thereon, (b) the nature and performance of the Leases and the Mortgaged Properties, (c) the Indenture and the Collateral, and (d) any credit enhancement mechanism associated with the Transferred Notes, that the Transferee has requested.

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Very truly yours,
    
(Transferor)
    
By:    
Name:    
Title:    

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EXHIBIT C-2
FORM OF TRANSFEREE CERTIFICATE
FOR TRANSFERS OF DEFINITIVE NOTES
[Date]
Citibank, N.A.
480 Washington Boulevard, 30th Floor
Jersey City, New Jersey 07310
Attention:  Agency and Trust – Spirit Master Finding VII
		
	Re:
	Spirit Master Funding VII, LLC, Net-Lease Mortgage Notes, Series 20[ ]-[ ] (the “Notes”)

Ladies and Gentlemen:
This letter is delivered to you in connection with the transfer by ______________ (the “Transferor”) to ____________ (the “Transferee”) of Class A-[1][2] Notes (the “Transferred Notes”) having an initial Note Principal Balance as of [_____], 20[ ] of $[_________].  The Notes, including the Transferred Notes, were issued pursuant to a Master Indenture, to be dated on or about December 23, 2013 (as amended or supplemented thereafter, the “Master Indenture”), between Spirit Master Funding VII, LLC (the “Issuer”) and Citibank, N.A., as indenture trustee (in such capacity, the “Indenture Trustee”), as supplemented by the Series 20[ ]-[ ] Supplement (together with the Master Indenture and any other indenture supplement thereto (each, a “Supplement”), the “Indenture”).  All terms used herein and not otherwise defined shall have the meanings set forth in the Indenture.  The Transferee hereby certifies, represents and warrants to you, as Note Registrar, and for the benefit of the Issuer, the Indenture Trustee and the Transferor, that:
1.    The Transferee understands that (a) the Transferred Notes have not been and will not be registered or qualified under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities law, (b) neither of the Issuer[s] or the Indenture Trustee is required to so register or qualify the Transferred Notes, (c) the Transferred Notes may be resold only if registered and qualified pursuant to the provisions of the Securities Act or any state securities law, or if an exemption from such registration and qualification is available, (d) the Indenture contains restrictions regarding the transfer of the Transferred Notes and (e) the Transferred Notes will bear a legend to the foregoing effect.
2.    The Transferee is acquiring the Transferred Notes for its own account for investment only and not with a view to or for sale in connection with any distribution thereof in any manner that would violate the Securities Act or any applicable state securities laws.
3.    The Transferee is (a) not a “U.S. Person” (as defined in Regulation S), is not acquiring the Notes or interests therein for the account or benefit of any U.S. Person (as that term is defined in Regulation S under the Securities Act), its outside the United States and is acquiring the Transferred Notes in an offshore transaction pursuant to an exemption from registration ion 

C-2-1

accordance with Rule 903 or Rule 904 of Regulation S; or (b) a “qualified institutional buyer” (a “Qualified Institutional Buyer”) as that term is defined in Rule 144A (“Rule 144A”) under the Securities Act and has completed one of the forms of certification to that effect attached hereto as Annex 1 and Annex 2.  The Transferee is aware that the sale to it of the Transferred Notes is being made in reliance on Rule 144A or pursuant to Regulation S under the Securities Act, as applicable.  The Transferee is acquiring the Transferred Notes for its own account or for the account of a Qualified Institutional Buyer or another Non-U.S. Person in an offshore transaction, and understands that such Transferred Notes may be resold, pledged or transferred only to a person reasonably believed to be a Qualified Institutional Buyer that purchases for its own account or for the account of a Qualified Institutional Buyer to whom notice is given that the resale, pledge or transfer is being made in reliance on Rule 144A.  The Transferee is (a) a substantial, sophisticated institutional investor having such knowledge and experience in financial and business matters, and, in particular, in such matters related to securities similar to the Transferred Notes, such that it is capable of evaluating the merits and risks of investment in the Transferred Notes, and (b) able to bear the economic risks of such an investment.
4.    The Transferee has reviewed and understands the restrictions on transfer of the Transferred Notes and acknowledges that such transfer restrictions may adversely affect the liquidity of the Transferred Notes.
5.    The Transferee understands that each Noteholder, by virtue of its acceptance thereof, assents to, and agrees to be bound by, the terms, provisions and conditions of the Indenture, including those relating to the transfer restrictions.
6.    The Transferee understands that the Notes are being offered only in a transaction that does not require registration under the Securities Act and, if such purchaser decides to resell, pledge or otherwise transfer such Notes, then it agrees that it will resell, pledge or transfer such Notes only (1) so long as such Notes are eligible for resale pursuant to Rule 144A, to a person who the seller reasonably believes is a QIB acquiring the Notes for its own account or as a fiduciary or agent for others (which others must also be QIBs) to whom notice is given that the resale or other transfer is being made in reliance on Rule 144A or (2) to a purchaser who is not a “U.S. person” (as defined in Regulation S) (and is not purchasing for the account or benefit of a “U.S. person” as defined in Regulation S), is outside the United States, and is acquiring the Notes pursuant to an exemption from registration under the Securities Act in accordance with Rule 903 or Rule 904 of Regulation S, and, in each case, in accordance with any applicable United States state securities or “Blue Sky” laws or any securities laws of any other jurisdiction.
7.    The Transferee understands that the information contained in the Memorandum (as defined below) and all such additional information, as well as all information to be received by the Transferee as a Noteholder, is confidential and agrees to keep such information confidential (a) by not disclosing any such information other than to a person who needs to know such information and who has agreed to keep such information confidential and (b) by not using any such information other than for the purpose of evaluating an investment in the Transferred Notes; provided, however, that any such information may be disclosed as required by applicable 

C-2-2

law if the Issuer is given written notice of such requirement sufficient to enable the Issuer to seek a protective order or other appropriate remedy in advance of disclosure.
8.    The Transferee has been furnished with, and has had an opportunity to review (a) a copy of the Private Placement Memorandum dated [____], 20[ ], relating to the Transferred Notes (the “Memorandum”), (b) a copy of the Indenture and the Transferred Notes and (c) such other information concerning the Transferred Notes and payments thereon, the Mortgaged Properties and Leases and the other Collateral, the Issuer[s] as has been requested by the Transferee from the Issuer[s] or the Transferor and is relevant to the Transferee's decision to purchase the Transferred Notes.  The Transferee has had any questions arising from such review answered by the Issuer[s] or the Transferor to the satisfaction of the Transferee.
9.    The Transferee has not and will not nor has it authorized or will it authorize any person to (a) offer, pledge, sell, dispose of or otherwise transfer any Transferred Note, any interest in any Transferred Note or any other similar security from any person in any manner, (b) otherwise approach or negotiate with respect to any Transferred Note, any interest in any Transferred Note or any other similar security with any person in any manner, (c) make any general solicitation by means of general advertising or in any other manner or (d) take any action, that (as to any of (a) through (d) above) would constitute a distribution of any Transferred Note under the Securities Act, that would render the disposition of any Transferred Note a violation of Section 5 of the Securities Act or any state securities law, or that would require registration or qualification pursuant thereto.  The Transferee will not sell or otherwise transfer any of the Transferred Notes, except to a person reasonably believed to be (x) a Non-U.S. Person that is not acquiring the Transferred Notes for the account or benefit of any U.S. Person (as defined in Regulation S) and is acquiring the Transferred Notes or interests therein in an offshore transaction, or (y) a Qualified Institutional Buyer that purchases for its own account or for the account of a Qualified Institutional Buyer to whom notice is given that the resale, pledge or transfer is being made in reliance on Rule 144A, or otherwise in accordance with the terms and provisions of the Indenture.
10.    The Transferee is duly authorized to purchase the Transferred Notes acquired thereby, and its purchase of investments having the characteristics of the Notes acquired thereby is authorized under, and not directly or indirectly in contravention of, any law, charter, trust instrument or other operative document, investment guidelines or list of permissible or impermissible investments applicable to the investor.
11.    If the Transferee is acquiring any Transferred Notes or interests therein as a fiduciary or agent for one or more accounts, it has sole investment discretion with respect to each such account and it has full power to make the foregoing acknowledgments, representations, warranties and agreements with respect to each such account.
12.    It, and each person for which it is acting, understands that any sale or transfer to a person that does not comply with the requirements set forth herein will be null and void ab initio.
Very truly yours,

C-2-3

______________________
(Transferee)
By:    
Name:
Title:

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ANNEX 1 TO EXHIBIT C-2
QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SECURITIES ACT RULE 144A
[for Transferees other than Registered Investment Companies]
The undersigned hereby certifies as follows to [name of Transferor (the “Transferor”)] and [name of Note Registrar], as Note Registrar, with respect to the Notes being transferred (the “Transferred Notes”) as described in the Transferee Certificate to which this certification relates and to which this certification is an Annex:
1.    As indicated below, the undersigned is the chief financial officer, a person fulfilling an equivalent function, or other executive officer of the entity purchasing the Transferred Notes (the “Transferee”).
2.    The Transferee is a “qualified institutional buyer” as that term is defined in Rule 144A (“Rule 144A”) under the Securities Act of 1933, as amended (the “Securities Act”), because (i) the Transferee owned and/or invested on a discretionary basis $ _______________ in securities (other than the excluded securities referred to below) as of the end of the Transferee’s most recent fiscal year (such amount being calculated in accordance with Rule 144A) and (ii) the Transferee satisfies the criteria in the category marked below:
		
	___
	Corporation, etc.  The Transferee is a corporation (other than a bank, savings and loan association or similar institution), Massachusetts or similar business trust, partnership, or any organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended.

		
	___
	Bank.  The Transferee (a) is a national bank or a banking institution organized under the laws of any State, U.S. territory or the District of Columbia, the business of which is substantially confined to banking, and is supervised by the State or territorial banking commission or similar official or is a foreign bank or equivalent institution, and (b) has an audited net worth of at least $25,000,000 as demonstrated in its latest annual financial statements, a copy of which is attached hereto, as of a date not more than 16 months preceding the date of sale of the Note in the case of a U.S. bank, and not more than 18 months preceding such date of sale for a foreign bank or equivalent institution.

		
	___
	Savings and Loan.  The Transferee (a) is a savings and loan association, building and loan association, cooperative bank, homestead association or similar institution, which is supervised and examined by a State or Federal authority having supervision over any such institutions or is a foreign savings and loan association or equivalent institution and (b) has an audited net worth of at least $25,000,000 as demonstrated in its latest annual financial 

C-2-5

statements, a copy of which is attached hereto, as of a date not more than 16 months preceding the date of sale of the Note in the case of a U.S. savings and loan association, and not more than 18 months preceding such date of sale for a foreign savings and loan association or equivalent institution.
		
	___
	Broker-dealer.  The Transferee is a dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended.

		
	___
	Insurance Company.  The Transferee is an insurance company whose primary and predominant business activity is the writing of insurance or the reinsuring of risks underwritten by insurance companies and which is subject to supervision by the insurance commissioner or a similar official or agency of a State, U.S. territory or the District of Columbia.

		
	___
	State or Local Plan.  The Transferee is a plan established and maintained by a State, its political subdivisions, or any agency or instrumentality of the State or its political subdivisions, for the benefit of its employees.

		
	___
	ERISA Plan.  The Transferee is an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974.

		
	___
	Investment Advisor.  The Transferee is an investment advisor registered under the Investment Advisers Act of 1940, as amended.

		
	___
	Other. (Please supply a brief description of the entity and a cross-reference to the paragraph and subparagraph under subsection (a)(1) of Rule 144A pursuant to which it qualifies.  Note that registered investment companies should complete Annex 2 rather than this Annex 1.)    

 
    
 
    
3.    The term “securities” as used herein does not include (i) securities of issuers that are affiliated with the Transferee, (ii) securities that are part of an unsold allotment to or subscription by the Transferee, if the Transferee is a dealer, (iii) bank deposit notes and certificates of deposit, (iv) loan participations, (v) repurchase agreements, (vi) securities owned but subject to a repurchase agreement and (vii) currency, interest rate and commodity swaps.  For purposes of determining the aggregate amount of securities owned and/or invested on a discretionary basis by the Transferee, the Transferee did not include any of the securities referred to in this paragraph.
4.    For purposes of determining the aggregate amount of securities owned and/or invested on a discretionary basis by the Transferee, the Transferee used the cost of such securities to the Transferee, unless the Transferee reports its securities holdings in its financial statements on the basis of their market value, and no current information with respect to the cost of those securities 

C-2-6

has been published, in which case the securities were valued at market.  Further, in determining such aggregate amount, the Transferee may have included securities owned by subsidiaries of the Transferee, but only if such subsidiaries are consolidated with the Transferee in its financial statements prepared in accordance with generally accepted accounting principles and if the investments of such subsidiaries are managed under the Transferee’s direction.  However, such securities were not included if the Transferee is a majority-owned, consolidated subsidiary of another enterprise and the Transferee is not itself a reporting company under the Securities Exchange Act of 1934, as amended.
5.    The Transferee acknowledges that it is familiar with Rule 144A and understands that the Transferor and other parties related to the Transferred Notes are relying and will continue to rely on the statements made herein because one or more sales to the Transferee may be in reliance on Rule 144A.
____    ____        Will the Transferee be purchasing the Transferred Notes
Yes    No        only for the Transferee’s own account?
6.    If the answer to the foregoing question is “no”, then in each case where the Transferee is purchasing for an account other than its own, such account belongs to a third party that is itself a “qualified institutional buyer” within the meaning of Rule 144A, and the “qualified institutional buyer” status of such third party has been established by the Transferee through one or more of the appropriate methods contemplated by Rule 144A.
7.    The Transferee will notify each of the parties to which this certification is made of any changes in the information and conclusions herein.  Until such notice is given, the Transferee’s purchase of the Transferred Notes will constitute a reaffirmation of this certification as of the date of such purchase.  In addition, if the Transferee is a bank or savings and loan as provided above, the Transferee agrees that it will furnish to such parties any updated annual financial statements that become available on or before the date of such purchase, promptly after they become available.
    
Print Name of Transferee
By:    
Name:    
Title:    
Date:    

ANNEX 2 TO EXHIBIT C-2
QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SECURITIES ACT RULE 144A
[for Transferees that are Registered Investment Companies]
The undersigned hereby certifies as follows to [name of Transferor (the “Transferor”)] and [name of Note Registrar], as Note Registrar, with respect to the Notes being transferred (the “Transferred Notes”) as described in the Transferee Certificate to which this certification relates and to which this certification is an Annex:
1.    As indicated below, the undersigned is the chief financial officer, a person fulfilling an equivalent function, or other executive officer of the entity purchasing the Transferred Notes (the “Transferee”) or, if the Transferee is a “qualified institutional buyer” as that term is defined in Rule 144A (“Rule 144A”) under the Securities Act of 1933, as amended (the “Securities Act”), because the Transferee is part of a Family of Investment Companies (as defined below), is an executive officer of the investment adviser (the “Adviser”).
2.    The Transferee is a “qualified institutional buyer” as defined in Rule 144A because (i) the Transferee is an investment company registered under the Investment Company Act of 1940, as amended, and (ii) as marked below, the Transferee alone owned and/or invested on a discretionary basis, or the Transferee’s Family of Investment Companies owned, at least $100,000,000 in securities (other than the excluded securities referred to below) as of the end of the Transferee’s most recent fiscal year.  For purposes of determining the amount of securities owned by the Transferee or the Transferee’s Family of Investment Companies, the cost of such securities was used, unless the Transferee or any member of the Transferee’s Family of Investment Companies, as the case may be, reports its securities holdings in its financial statements on the basis of their market value, and no current information with respect to the cost of those securities has been published, in which case the securities of such entity were valued at market.
		
	___
	The Transferee owned and/or invested on a discretionary basis $                    in securities (other than the excluded securities referred to below) as of the end of the Transferee’s most recent fiscal year (such amount being calculated in accordance with Rule 144A).

		
	___
	The Transferee is part of a Family of Investment Companies which owned in the aggregate $____________ in securities (other than the excluded securities referred to below) as of the end of the Transferee’s most recent fiscal year (such amount being calculated in accordance with Rule 144A).

3.    The term “Family of Investment Companies” as used herein means two or more registered investment companies (or series thereof) that have the same investment adviser or investment advisers that are affiliated (by virtue of being majority owned subsidiaries of the same parent or because one investment adviser is a majority owned subsidiary of the other).
4.    The term “securities” as used herein does not include (i) securities of issuers that are affiliated with the Transferee or are part of the Transferee’s Family of Investment Companies, (ii) bank deposit notes and certificates of deposit, (iii) loan participations, (iv) repurchase agreements, (v) securities owned but subject to a repurchase agreement and (vi) currency, interest rate and commodity swaps.  For purposes of determining the aggregate amount of securities owned and/or invested on a discretionary basis by the Transferee, or owned by the Transferee’s Family of Investment Companies, the securities referred to in this paragraph were excluded.
5.    The Transferee is familiar with Rule 144A and understands that the parties to which this certification is being made are relying and will continue to rely on the statements made herein because one or more sales to the Transferee will be in reliance on Rule 144A.
____    ____        Will the Transferee be purchasing the Transferred Notes
Yes    No        only for the Transferee’s own account?
6.    If the answer to the foregoing question is “no”, then in each case where the Transferee is purchasing for an account other than its own, such account belongs to a third party that is itself a “qualified institutional buyer” within the meaning of Rule 144A, and the “qualified institutional buyer” status of such third party has been established by the Transferee through one or more of the appropriate methods contemplated by Rule 144A.
7.    The undersigned will notify the parties to which this certification is made of any changes in the information and conclusions herein.  Until such notice, the Transferee’s purchase of the Transferred Notes will constitute a reaffirmation of this certification by the undersigned as of the date of such purchase.
    
Print Name of Transferee or Adviser
By:    
Name:    
Title:    
IF AN ADVISER:
    
Print Name of Transferee
Date:    
EXHIBIT D-1
FORM OF TRANSFER CERTIFICATE FOR TRANSFERS FROM
REGULATION S GLOBAL NOTE TO RESTRICTED GLOBAL NOTE
[DATE]
Citibank, N.A.
480 Washington Boulevard, 30th Floor
Jersey City, New Jersey 07310
Attention:  Agency and Trust – Spirit Master Finding VII
		
	Re:
	Spirit Master Funding VII, LLC, Net-Lease Mortgage Notes, Series 20[ ]-[ ] (the “Notes”)

Ladies and Gentlemen:
This letter is delivered to you in connection with the transfer by [____] (the “Transferor”) to [___] (the “Transferee”) of [beneficial interests in] Class A-[1][2] Notes evidenced by Regulation S Global Notes (the “Transferred Notes”) having an initial Note Principal Balance as of [_____], 20[ ] of $[________] evidencing a [_]% Percentage Interest in such Class.  The Transferor has requested a transfer of such Transferred Note for a [beneficial interest in a] Restricted Global Note evidencing Notes of the same Class, in a like principal balance to be registered in the name of the Transferee.  The Notes, including the Transferred Notes, were issued pursuant to a Master Indenture, to be dated on or about December 23, 2013 (as amended or supplemented thereafter, the “Master Indenture”), between Spirit Master Funding VII, LLC (the “Issuer”) and Citibank, N.A., as indenture trustee (in such capacity, the “Indenture Trustee”), as supplemented by the Series 20[ ]-[ ] Supplement (together with the Master Indenture and any other indenture supplement thereto (each, a “Supplement”), the “Indenture”).  All capitalized terms used but not otherwise defined herein shall have the respective meanings set forth in the Indenture.  The Transferee hereby certifies, represents and warrants to you, as Note Registrar, and for the benefit of the Issuer, the Indenture Trustee and the Transferor, that:
1.    The Transferee is a “qualified institutional buyer” (a “Qualified Institutional Buyer”) as that term is defined in Rule 144A (“Rule 144A”) under the Securities Act of 1933, as amended (the “Securities Act”), and has completed one of the forms of certification to that effect attached hereto as Annex A and Annex B.  The Transferee is aware that the sale to it of the Transferred Notes is being made in reliance on Rule 144A.  The Transferee is acquiring the Transferred Notes for its own account or for the account of a Qualified Institutional Buyer, and understands that such Transferred Notes may be resold, pledged or transferred only (i) to a person reasonably believed to be a Qualified Institutional Buyer that purchases for its own account or for the account of a Qualified Institutional Buyer to whom notice is given that the resale, pledge or transfer is being made in reliance on Rule 144A, or (ii) pursuant to another exemption from registration under the Securities Act.
2.    The Transferee has been furnished with all information regarding (a) the Transferred Notes and distributions thereon, (b) the nature, performance and servicing of the Leases and the Mortgaged Properties, (c) the Indenture and the Collateral and (d) any credit enhancement mechanism associated with the Transferred Notes, that it has requested.
Very truly yours,
______________________________________
(Transferee)
By:___________________________________
Name:_____________________________
 
Title:  _____________________________
ANNEX A TO EXHIBIT D-1
QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SECURITIES ACT RULE 144A
[for Transferees other than Registered Investment Companies]
The undersigned hereby certifies as follows to [name of Transferor] (the “Transferor”) and [name of Note Registrar], as Note Registrar, with respect to the Notes being transferred (the “Transferred Notes”) as described in the Transferee Certificate to which this certification relates and to which this certification is an Annex:
1.    As indicated below, the undersigned is the chief financial officer, a person fulfilling an equivalent function, or other executive officer of the entity purchasing the Transferred Notes (the “Transferee”).
2.    The Transferee is a “qualified institutional buyer” as that term is defined in Rule 144A (“Rule 144A”) under the Securities Act of 1933, as amended (the “Securities Act”), because (i) the Transferee owned and/or invested on a discretionary basis $                                 in securities (other than the excluded securities referred to below) as of the end of the Transferee’s most recent fiscal year (such amount being calculated in accordance with Rule 144A) and (ii) the Transferee satisfies the criteria in the category marked below:
		
	____
	Corporation, etc.  The Transferee is a corporation (other than a bank, savings and loan association or similar institution), Massachusetts or similar business trust, partnership, or any organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended.

		
	____
	Bank.  The Transferee (a) is a national bank or a banking institution organized under the laws of any State, U.S. territory or the District of Columbia, the business of which is substantially confined to banking and is supervised by the State or territorial banking commission or similar official or is a foreign bank or equivalent institution, and (b) has an audited net worth of at least $25,000,000 as demonstrated in its latest annual financial statements, a copy of which is attached hereto, as of a date not more than 16 months preceding the date of sale of the Note in the case of a U.S. bank, and not more than 18 months preceding such date of sale for a foreign bank or equivalent institution.

		
	____
	Savings and Loan.  The Transferee (a) is a savings and loan association, building and loan association, cooperative bank, homestead association or similar institution that is supervised and examined by a State or Federal authority having supervision over any such institutions or is a foreign savings and loan association or equivalent institution and (b) has an audited net worth of at least $25,000,000 as demonstrated in its latest annual financial statements, a copy of which is attached hereto, as of a date not more than 16 months preceding the date of sale of the Note in the case of a U.S. savings and loan association, and not more than 18 months preceding such date of sale for a foreign savings and loan association or equivalent institution.

		
	____
	Broker-dealer.  The Transferee is a dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

		
	____
	Insurance Company.  The Transferee is an insurance company whose primary and predominant business activity is the writing of insurance or the reinsuring of risks underwritten by insurance companies and which is subject to supervision by the insurance commissioner or a similar official or agency of a State, U.S. territory or the District of Columbia.

		
	____
	State or Local Plan.  The Transferee is a plan established and maintained by a State, its political subdivisions, or any agency or instrumentality of the State or its political subdivisions, for the benefit of its employees.

		
	____
	ERISA Plan.  The Transferee is an employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974.

		
	____
	Investment Advisor.  The Transferee is an investment advisor registered under the Investment Advisers Act of 1940, as amended.

		
	____
	Other. (Please supply a brief description of the entity and a cross-reference to the paragraph and subparagraph under subsection (a)(1) of Rule 144A pursuant to which it qualifies.  Note that registered investment companies should complete Annex B rather than this Annex A.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

3.    The term “securities” as used herein does not include (i) securities of issuers that are affiliated with the Transferee, (ii) securities that are part of an unsold allotment to or subscription by the Transferee, if the Transferee is a dealer, (iii) bank deposit notes and certificates of deposit, (iv) loan participations, (v) repurchase agreements, (vi) securities owned but subject to a repurchase agreement and (vii) currency, interest rate and commodity swaps.  For purposes of determining the aggregate amount of securities owned and/or invested on a discretionary basis by the Transferee, the Transferee did not include any of the securities referred to in this paragraph.
4.    For purposes of determining the aggregate amount of securities owned and/or invested on a discretionary basis by the Transferee, the Transferee used the cost of such securities to the Transferee, unless the Transferee reports its securities holdings in its financial statements on the basis of their market value, and no current information with respect to the cost of those securities has been published, in which case the securities were valued at market.  Further, in determining such aggregate amount, the Transferee may have included securities owned by subsidiaries of the Transferee, but only if such subsidiaries are consolidated with the Transferee in its financial statements prepared in accordance with generally accepted accounting principles and if the investments of such subsidiaries are managed under the Transferee’s direction.  However, such securities were not included if the Transferee is a majority-owned, consolidated subsidiary of another enterprise and the Transferee is not itself a reporting company under the Exchange Act.
5.    The Transferee acknowledges that it is familiar with Rule 144A and understands that the Transferor and other parties related to the Transferred Notes are relying and will continue to rely on the statements made herein because one or more sales to the Transferee may be in reliance on Rule 144A.
Will the Transferee be purchasing the Transferred Notes
____    ___    only for the Transferee’s own account?
Yes    No
6.    If the answer to the foregoing question is “no,” then in each case where the Transferee is purchasing for an account other than its own, such account belongs to a third party that is itself a “qualified institutional buyer” within the meaning of Rule 144A, and the “qualified institutional buyer” status of such third party has been established by the Transferee through one or more of the appropriate methods contemplated by Rule 144A.
7.    The Transferee will notify each of the parties to which this certification is made of any changes in the information and conclusions herein.  Until such notice is given, the Transferee’s purchase of the Transferred Notes will constitute a reaffirmation of this certification as of the date of such purchase.  In addition, if the Transferee is a bank or savings and loan as provided above, the Transferee agrees that it will furnish to such parties any updated annual financial statements that become available on or before the date of such purchase, promptly after they become available.
___________________________________
Print Name of Transferee
By: ________________________________
Name:                                    
Title:                                      
Date:                          
ANNEX B TO EXHIBIT D-1
QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SECURITIES ACT RULE 144A
[for Transferees that are Registered Investment Companies]
The undersigned hereby certifies as follows to [name of Transferor (the “Transferor”) and Citibank, N.A., as Note Registrar, with respect to the Notes being transferred (the “Transferred Notes”) as described in the Transferee Certificate to which this certification relates and to which this certification is an Annex:
1.    As indicated below, the undersigned is the chief financial officer, a person fulfilling an equivalent function, or other executive officer of the entity purchasing the Transferred Notes (the “Transferee”) or, if the Transferee is a “qualified institutional buyer” as that term is defined in Rule 144A(“Rule 144A”) under the Securities Act of 1933, as amended (the “Securities Act”), because the Transferee is part of a Family of Investment Companies (as defined below), is an executive officer of the investment adviser (the “Adviser”).
2.    The Transferee is a “qualified institutional buyer” as defined in Rule 144A because (i) the Transferee is an investment company registered under the Investment Company Act of 1940, and (ii) as marked below, the Transferee alone owned and/or invested on a discretionary basis, or the Transferee’s Family of Investment Companies owned, at least $100,000,000 in securities (other than the excluded securities referred to below) as of the end of the Transferee’s most recent fiscal year.  For purposes of determining the amount of securities owned by the Transferee or the Transferee’s Family of Investment Companies, the cost of such securities was used, unless the Transferee or any member of the Transferee’s Family of Investment Companies, as the case may be, reports its securities holdings in its financial statements on the basis of their market value, and no current information with respect to the cost of those securities has been published, in which case the securities of such entity were valued at market:
		
	          
	The Transferee owned and/or invested on a discretionary basis $                  in securities (other than the excluded securities referred to below) as of the end of the Transferee’s most recent fiscal year (such amount being calculated in accordance with Rule 144A).

		
	       
	The Transferee is part of a Family of Investment Companies that owned in the aggregate $                        in securities (other than the excluded securities referred to below) as of the end of the Transferee’s most recent fiscal year (such amount being calculated in accordance with Rule 144A).

3. The term “Family of Investment Companies” as used herein means two or
more registered investment companies (or series thereof) that have the same investment adviser or investment advisers that are affiliated (by virtue of being majority owned subsidiaries of the same parent or because one investment adviser is a majority owned subsidiary of the other).
4.    The term “securities” as used herein does not include (i) securities of issuers that are affiliated with the Transferee or are part of the Transferee’s Family of Investment Companies, (ii) bank deposit notes and certificates of deposit, (iii) loan participations, (iv) repurchase agreements, (v) securities owned but subject to a repurchase agreement and (vi) currency, interest rate and commodity swaps.  For purposes of determining the aggregate amount of securities owned and/or invested on a discretionary basis by the Transferee, or owned by the Transferee’s Family of Investment Companies, the securities referred to in this paragraph were excluded.
5.    The Transferee is familiar with Rule 144A and understands that the parties to which this certification is being made are relying and will continue to rely on the statements made herein because one or more sales to the Transferee will be in reliance on Rule 144A.
Will the Transferee be purchasing the Transferred Notes
                        only for the Transferee’s own account?
Yes    No
6.    If the answer to the foregoing question is “no,” then in each case where the Transferee is purchasing for an account other than its own, such account belongs to a third party that is itself a “qualified institutional buyer” within the meaning of Rule 144A, and the “qualified institutional buyer” status of such third party has been established by the Transferee through one or more of the appropriate methods contemplated by Rule 144A.
7.    The undersigned will notify the parties to which this certification is made of any changes in the information and conclusions herein.  Until such notice, the Transferee’s purchase of the Transferred Notes will constitute a reaffirmation of this certification by the undersigned as of the date of such purchase.
___________________________________
Print Name of Transferee or Advisor
By: ________________________________
Name:                                    
Title:                                      
IF AN ADVISER:
_________________________________________
Print Name of Transferee
Date:                      

EXHIBIT D-2
FORM OF TRANSFER CERTIFICATE FOR TRANSFER
FROM RESTRICTED GLOBAL NOTE
TO REGULATION S GLOBAL NOTE
DURING THE RESTRICTED PERIOD
[DATE]
Citibank, N.A.
480 Washington Boulevard, 30th Floor
Jersey City, New Jersey 07310
Attention:  Agency and Trust – Spirit Master Finding VII

		
	Re:
	Spirit Master Funding VII, LLC, Net-Lease Mortgage Notes, Series 20[ ]-[ ] (the “Notes”)

Ladies and Gentlemen:
This letter is delivered to you in connection with the transfer by [____] (the “Transferor”) to [___] (the “Transferee”) of [beneficial interests in] Class A-[1][2] Notes evidenced by Restricted Global Notes (the “Transferred Notes”) having an initial Note Principal Balance as of [_____], 20[ ] of $[_________] evidencing a [_]% Percentage Interest in such Class.  The Transferor has requested a transfer of such Transferred Note for a [beneficial interest in a] Temporary Regulation S Global Note, evidencing Notes of the same Class, in a like principal balance to be registered in the name of the Transferee.  The Notes, including the Transferred Notes, were issued pursuant to a Master Indenture, to be dated on or about December 23, 2013 (as amended or supplemented thereafter, the “Master Indenture”), between Spirit Master Funding VII, LLC (the “Issuer”) and Citibank, N.A., as indenture trustee (in such capacity, the “Indenture Trustee”), as supplemented by the Series 20[ ]-[ ] Supplement (together with the Master Indenture and any other indenture supplement thereto (each, a “Supplement”), the “Indenture”).  All capitalized terms used but not otherwise defined herein shall have the respective meanings set forth in the Indenture.
In connection with such request and in respect of such Notes, the Transferee does hereby certify that such transfer has been effected in accordance with the transfer restrictions set forth in the Indenture and the Notes and pursuant to and in accordance with Rule 904 of Regulation S, and accordingly the Transferee does hereby certify, represent and warrant to you, as Note Registrar, and for the benefit of the Issuer and the Indenture Trustee that:
1.    The Transferee is not a U.S. person (as defined in Regulation S) or holding the Notes for the account or benefit of any U.S. person.
2.    The offer of the Notes was not made to a person in the United States.
[3.    At the time the buy order was originated, the Transferee was outside the United States.]
[3.    The transaction was executed in, on or through the facilities of a designated offshore securities market and the transaction was not prearranged with a buyer in the United States.]
Very truly yours,
___________________________________
(Transferee)
By:_________________________________
Name:____________________________
 
Title:  ____________________________

EXHIBIT D-3
FORM OF TRANSFER CERTIFICATE FOR TRANSFER
FROM RESTRICTED GLOBAL NOTE TO REGULATION S
GLOBAL NOTE AFTER THE RESTRICTED PERIOD
[DATE]
Citibank, N.A.
480 Washington Boulevard, 30th Floor
Jersey City, New Jersey 07310
Attention:  Agency and Trust – Spirit Master Finding VII
		
	Re:
	Spirit Master Funding VII, LLC, Net-Lease Mortgage Notes, Series 20[ ]-[ ] (the “Notes”)

Ladies and Gentlemen:
This letter is delivered to you in connection with the transfer by [____] (the “Transferor”) to [___] (the “Transferee”) of [beneficial interests in] Class A-[1][2] Notes evidenced by Restricted Global Notes (the “Transferred Notes”) having an initial Note Principal Balance as of [_____], 20[ ] of $[_________] evidencing a [_]% Percentage Interest in such Class.  The Transferor has requested a transfer of such Transferred Note for a [beneficial interest in a] Permanent Regulation S Global Note, evidencing Notes of the same Class, in a like principal balance to be registered in the name of the Transferee.  The Notes, including the Transferred Notes, were issued pursuant to a Master Indenture, to be dated on or about December 23, 2013 (as amended or supplemented thereafter, the “Master Indenture”), between Spirit Master Funding VII, LLC (the “Issuer”) and Citibank, N.A., as indenture trustee (in such capacity, the “Indenture Trustee”), as supplemented by the Series 20[ ]-[ ] Supplement (together with the Master Indenture and any other indenture supplement thereto (each, a “Supplement”), the “Indenture”).  All capitalized terms used but not otherwise defined herein shall have the respective meanings set forth in the Indenture.
In connection with such request and in respect of such Notes, the transferee does hereby certify that such transfer has been effected in accordance with the transfer restrictions set forth in the Indenture and the Notes and pursuant to and in accordance with Rule 904 of Regulation S, and accordingly the Transferee does hereby certify, represent and warrant to you, as Note Registrar, and for the benefit of the Issuer, the Indenture Trustee and the Transferee, that:
1.    The offer of the Notes was not made to a person in the United States.
[2.    At the time the buy order as originated, the Transferee was outside the United States.].
[2.    The transaction was executed in, on or through the facilities of a designated offshore securities market and the transaction was not prearranged with a buyer in the United States.]
Very truly yours,
_________________________________________
(Transferee)
By:______________________________________
Name:________________________________
 
Title:  ________________________________

EXHIBIT D-4
FORM OF REGULATION S LETTER FOR EXCHANGE OF INTERESTS IN THE TEMPORARY REGULATION S GLOBAL NOTE FOR INTERESTS IN THE PERMANENT REGULATION S GLOBAL NOTE
[DATE]
Citibank, N.A.
480 Washington Boulevard, 30th Floor
Jersey City, New Jersey 07310
Attention:  Agency and Trust – Spirit Master Finding VII
		
	Re:
	Spirit Master Funding VII, LLC, Net-Lease Mortgage Notes, Series 20[ ]-[ ] (the “Notes”)

Ladies and Gentlemen:
This letter is delivered to you in connection with the exchange by [____] (the “Transferor”) to [___] (the “Transferee”) of $[________] principal amount of beneficial interests in the Temporary Regulation S Global Note evidencing Class A-[1][2] Notes for a like amount of beneficial interests in the Permanent Regulation S Global Note evidencing Notes of the same Class.  The Notes, including the Transferred Notes, were issued pursuant to a Master Indenture, to be dated on or about December 23, 2013 (as amended or supplemented thereafter, the “Master Indenture”), between Spirit Master Funding VII, LLC (the “Issuer”) and Citibank, N.A., as indenture trustee (in such capacity, the “Indenture Trustee”), as supplemented by the Series 20[ ]-[ ] Supplement (together with the Master Indenture and any other indenture supplement thereto (each, a “Supplement”), the “Indenture”).  All capitalized terms used but not otherwise defined herein shall have the respective meanings set forth in the Indenture.
In connection with such request, we hereby certify that, based solely on certifications we have received in writing, by tested telex or by electronic transmission, from member organizations appearing in our records as persons entitled to a portion of the principal amount set forth above (our “Member Organizations”) substantially to the effect that the beneficial interests in the Temporary Regulation S Global Note are beneficially owned by (a) non-U.S. persons or (b) U.S. persons who purchased their beneficial interests in transactions that did not require registration under the United States Securities Act of 1933.
We further certify that as of the date hereof we have not received any notification from any of our Member Organizations to the effect that the statements made by such Member Organizations with respect to any portion of the part submitted herewith for exchange (or, if relevant, exercise of any rights or collection of any interest) are no longer true and cannot be relied upon as of the date hereof.
We understand that this certification is required in connection with certain securities laws of the United States.  In connection therewith, if administrative or legal proceedings are commenced or threatened in connection with which this certification is or would be relevant, we irrevocably authorize you to produce this certification to any interested party to such proceedings.
Yours faithfully,
[EUROCLEAR BANK, S.A./N.A., as operator of the Euroclear Clearance Systems S.C., a Belgian cooperative corporation]
or
[CLEARSTREAM BANKING, S.A.]
By:_________________________________
Name:___________________________
 
Title:  ___________________________

EXHIBIT E-1
FORM OF CERTIFICATE WITH RESPECT TO INFORMATION 
REQUEST BY BENEFICIAL OWNER
[Date]
Citibank, N.A.
388 Greenwich Street, 14th Floor
New York, New York 10013
Attention:  Agency and Trust – Spirit Master Funding
Spirit Master Funding VII, LLC 
16767 N. Perimeter Drive, Suite 210,  
Scottsdale, Arizona 85260 
Attention: Ryan Berry, General Counsel
[ADDITIONAL SPIRIT ISSUERS]
In accordance with Section 6.03 of the Master Indenture, to be dated on December 23, 2013 (as amended or supplemented thereafter, the “Master Indenture”), between Spirit Master Funding VII, LLC (the “Issuer”) and Citibank, N.A., as indenture trustee (in such capacity, the “Indenture Trustee”), as supplemented by the Series 20[ ]-[ ] Supplement (together with the Master Indenture and any other indenture supplement thereto (each, a “Supplement”), the “Indenture”), with respect to the Spirit Master Funding VII, LLC, Net-Lease Mortgage Notes, Series 20[ ]-[ ] (the “Notes”), the undersigned hereby certifies and agrees as follows:
1.    The undersigned is a beneficial owner of Class A-[1][2] Notes.
2.    The undersigned is requesting access to certain non-public information contained on the Indenture Trustee’s website relating to the Notes or such other information identified on the schedule attached hereto pursuant to Section 6.03 of the Indenture (in each case, the “Information”) for use in evaluating its investment in the Class A-[1][2] Notes.
3    In consideration of the Indenture Trustee’s disclosure to the undersigned of the Information, the undersigned will keep the Information confidential (except from such outside persons as are assisting it in making the evaluation described in paragraph 2 and from its accountants, attorneys and any governmental agency or authority which regulates the undersigned), and such Information will not, without the prior written consent of the Indenture Trustee, be disclosed by the undersigned or by its officers, directors, partners, employees, agents or representatives (collectively, the “Representatives”) in any manner whatsoever, in whole or in part.
4.    The undersigned will not use or disclose the Information in any manner which could result in a violation of any provision of the Securities Act of 1933, as amended (the “Securities Act”), or the Securities Exchange Act of 1934, as amended, or would require registration of any Note pursuant to Section 5 of the Securities Act.
5.    The undersigned shall be fully liable for any breach of this agreement by itself or any of its Representatives and shall indemnify the Issuer, the Indenture Trustee and the Collateral for any loss, liability or expense incurred thereby with respect to any such breach by the undersigned or any of its Representatives.
6.    The undersigned [is] [is not] a chain restaurant company.
Capitalized terms used but not defined herein shall have the respective meanings assigned thereto in the Indenture.
IN WITNESS WHEREOF, the undersigned has caused its name to be signed hereto by its duly authorized officer, as of the day and year written above.
    
[BENEFICIAL OWNER OF A NOTE]
By:    
Name:    
Title:    

EXHIBIT E-2
FORM OF CERTIFICATE WITH RESPECT TO INFORMATION 
REQUEST BY PROSPECTIVE PURCHASER
[Date]
Citibank, N.A.
388 Greenwich Street, 14th Floor
New York, New York 10013
Attention:  Agency and Trust – Spirit Master Funding
Spirit Master Funding VII, LLC 
16767 N. Perimeter Drive, Suite 210,  
Scottsdale, Arizona 85260 
Attention: Ryan Berry, General Counsel
[ADDITIONAL SPIRIT ISSUERS]
In accordance with Section 6.03 of the Master Indenture, to be dated on December 23, 2013 (as amended or supplemented thereafter, the “Master Indenture”), between Spirit Master Funding VII, LLC (the “Issuer”) and Citibank, N.A., as indenture trustee (in such capacity, the “Indenture Trustee”), as supplemented by the Series 20[ ]-[ ] Supplement (together with the Master Indenture and any other indenture supplement thereto (each, a “Supplement”), the “Indenture”), with respect to the Spirit Master Funding VII, LLC, Net-Lease Mortgage Notes, Series 20[ ]-[ ] (the “Notes”), the undersigned hereby certifies and agrees as follows:
1.    The undersigned is contemplating an investment in the [__] Notes.
2.    The undersigned is requesting access to certain non-public information contained on the Indenture Trustee’s website relating to the Notes or such other information identified on the schedule attached hereto pursuant to Section 6.03 of the Indenture (in each case, the “Information”) solely for use in evaluating such possible investment.
3.    In consideration of the Indenture Trustee’s disclosure to the undersigned of the Information, the undersigned will keep the Information confidential (except from such outside persons as are assisting it in making the investment decision described in paragraphs 1 and 2 and from its accountants, attorneys and any governmental agency or authority which regulates the undersigned), and such Information will not, without the prior written consent of the Indenture Trustee, be disclosed by the undersigned or by its officers, directors, partners, employees, agents or representatives (collectively, the “Representatives”) in any manner whatsoever, in whole or in part.
4.    The undersigned will not use or disclose the Information in any manner which could result in a violation of any provision of the Securities Act of 1933, as amended (the “Securities Act”), or the Securities Exchange Act of 1934, as amended, or would require registration of any Note pursuant to Section 5 of the Securities Act.
5.    The undersigned shall be fully liable for any breach of this agreement by itself or any of its Representatives and shall indemnify the Issuer, the Transferor, the Indenture Trustee and the Collateral for any loss, liability or expense incurred thereby with respect to any such breach by the undersigned or any of its Representatives.
6.    The undersigned [is] [is not] a chain restaurant company.
Capitalized terms used but not defined herein shall have the respective meanings assigned thereto in the Indenture.
IN WITNESS WHEREOF, the undersigned has caused its name to be signed hereto by its duly authorized officer, as of the day and year written above.
    
[PROSPECTIVE PURCHASER]
By:    
Name:    
Title:    
The undersigned is a beneficial owner of Class __ Notes contemplating a transfer of all or a portion of such Notes to the prospective purchaser named above.
[PROSPECTIVE TRANSFEROR]
By:    
Name:    
Title:    

EXHIBIT F
FORM OF NRSRO CERTIFICATION

Citibank, N.A.
388 Greenwich Street, 14th Floor
New York, New York 10013
Attention:  Agency and Trust – Spirit Master Funding

In accordance with the Master Indenture dated as of December 23, 2013 (the “Indenture”) between Spirit Master Funding VII, LLC, as issuer, and Citibank, N.A., as indenture trustee (the “Indenture Trustee”), pursuant to which the Net-Lease Mortgage Notes (the “Notes”) were issued, the undersigned hereby certifies and agrees as follows:
1.    The undersigned, a Nationally Recognized Statistical Rating Organization (“NRSRO”) has provided the 17g-5 Information Provider with the appropriate certifications under Exchange Act 17g-5(e) and has access to the 17g-5 Information Provider’s 17g-5 Website.
2.    The undersigned is requesting access pursuant to the Indenture to certain information (the “Information”) on the 17g-5 Information Provider’s 17g-5 Website and/or the Indenture Trustee’s website pursuant to the provisions of the Indenture.

In consideration of the disclosure to the undersigned of the Information, or the access thereto, the undersigned will keep the Information confidential, and such Information will not, without the prior written consent of the 17g-5 Information Provider or the Indenture Trustee, as the case may be, be otherwise disclosed by the undersigned or by its officers, directors, partners, employees, agents, or representatives (collectively, the “Representatives”) in any manner whatsoever, in whole or in part.
3.    The undersigned agrees that each time it accesses the 17g-5 Information Provider’s 17g-5 Website or the Indenture Trustee’s website, it is deemed to have recertified that the representations herein contained remain true and correct.
Capitalized terms used but not defined herein shall have the respective meanings assigned thereto in the Indenture.
BY ITS CERTIFICATION HEREOF, the undersigned has made the representations above and shall be deemed to have caused its name to be signed hereto by its duly authorized signatory, as of the date certified.
[INSERT NAME OF NRSRO]

By:______________________
Name: 
Title:

SCHEDULE I-A

REPRESENTATIONS AND WARRANTIES 
WITH RESPECT TO MORTGAGE LOANS

(a)Solely with respect to any Mortgage Loan conveyed by such Originator to the Issuer (the “Originator Conveyed Loans”), (i) immediately prior to the transfer and assignment of the Mortgage Loan to the Issuer, such Originator had good and insurable fee title to, and was the sole owner and holder of, the Mortgage Loan, free and clear of any and all liens, encumbrances and other interests on, in or to the Mortgage Loan and (ii) such transfer and assignment from such Originator to the Issuer of the Mortgage Loan by collateral assignment and by individual allonges of the Mortgage Notes and Assignments of the Mortgages in blank validly assigns all of such Originator’s right, title and ownership of the Mortgage Loan to the Issuer (and, with respect to the Mortgage, to the Collateral Agent) free and clear of any pledge, lien, encumbrance or security interest.  Solely with respect any Mortgage Loan acquired by the Issuer from a Person other than an Originator (the “Third Party Loans”), the Issuer has good and insurable fee title to, and is the sole owner and holder of, the Mortgage Loan, free and clear of any and all liens, encumbrances and other interests on, in or to the Mortgage Loan.
(a)    The Originator (with respect to Originator Conveyed Loans) or the seller (with respect to Third Party Loans) has full right and authority to sell, contribute, assign and transfer the Mortgage Loan to the Issuer.  The entire agreement with the applicable Originator (whether originated by such Originator or a different originator) is contained in the Loan Documents and there are no warranties, agreements or options regarding such Mortgage Loan or the related Mortgaged Property not set forth therein.  Other than the Loan Documents, there are no agreements between any predecessor in interest in the Mortgage Loan and the Borrower.  With respect to Third Party Loans, to the Issuer’s knowledge, the third party from whom the Issuer obtained the Mortgaged Property had full right and authority to sell, contribute, assign and transfer the Mortgage Loan to the Issuer.
(b)    With respect to any Originator Conveyed Loan, the information pertaining to the Mortgage Loan set forth in the mortgage loan schedule attached to the related Property Transfer Agreement was true and correct in all material respects as of the related Transfer Date.  With respect to any Third Party Loan, the information pertaining to the Mortgage Loan set forth in the Mortgage Loan Schedule, if any, attached to the related Property Transfer Agreement was, to the Issuer’s knowledge, true and correct in all material respects as of the date the Issuer acquired the Mortgage Loan.  The Mortgage Loan was originated (in the case of Mortgage Loans originated by an Originator) or acquired by such Originator (in the case of all other Originator Conveyed Loans) or acquired by the Issuer (in the case of any Third Party Loan) in accordance with, the then current policies and procedures constituting mortgage loan underwriting, property acquisition and lease underwriting standards of the Originators (the “Underwriting Guidelines”) (at the time of such origination or acquisition) in all material respects.  The related Loan File contains all of the documents and instruments required to be contained therein.
(c)    With respect to each Mortgage Loan, the related Mortgage constitutes a valid, legally binding and enforceable first priority lien upon the related Mortgaged Property securing the Mortgage Loan and the improvements located thereon and forming a part thereof, in each case to the extent securing such Mortgage Loan, prior to all other liens and encumbrances, except for Permitted Exceptions.  The lien of the Mortgage is insured by an American Land Title Association (or an equivalent form thereof as adopted in the applicable jurisdiction) mortgagee’s title insurance policy (a “Title Policy”), issued by a nationally recognized title insurance company, insuring the originator of the Mortgage Loan, its successors and assigns, as to the first priority lien of the Mortgage in the original principal amount of the Mortgage Loan after all advances of principal, subject only to Permitted Exceptions (or, if a Title Policy has not yet been issued in respect of the Mortgage Loan, a policy meeting the foregoing description is evidenced by a commitment for title insurance “marked up” (or by “pro-forma” otherwise agreed to in a closing instruction letter countersigned by the title company) as of the closing date of the Mortgage Loan).  Each Title Policy (or, if it has yet to be issued, the coverage to be provided thereby) is in full force and effect, all premiums thereon have been paid and no material claims have been made thereunder and no claims have been paid thereunder.  Neither the Originator (with respect to Originator Conveyed Loans) nor the Issuer (with respect to Third Party Loans) has, by act or omission, done anything that would materially impair the coverage under such Title Policy.  Immediately following the transfer and assignment of the Mortgage Loan to the Issuer, such Title Policy (or, if it has yet to be issued, the coverage to be provided thereby) will inure to the benefit of the Issuer without the consent of or notice to the insurer. The following are “Permitted Exceptions” with respect to any Mortgaged Property securing a Mortgage Loan: (i) liens for real estate taxes and special assessments not yet due and payable or due but not yet delinquent, (ii) covenants, conditions and restrictions, rights-of-way, easements and other matters of public record, such exceptions being of a type or nature that are acceptable to mortgage lending institutions generally, and (iii) other matters to which like properties are commonly subject, which matters referred to in clauses (i), (ii), and (iii) do not, individually or in the aggregate, materially interfere with the value of the Mortgage Loan, or do not materially interfere or restrict the current use or operation of the Mortgaged Property relating to the Mortgage Loan or do not materially interfere with the security intended to be provided by the Mortgage, the current use or operation of the Mortgaged Property or the current ability of the Mortgaged Property to generate net operating income sufficient to service the Mortgage Loan.  Financing Statements have been filed and/or recorded (or, if not filed and/or recorded, have been submitted in proper form for filing and recording), in all public places necessary to perfect a valid first priority security interest in all items of personal property defined as part of the Mortgaged Property and in all cases, subject to a purchase money security interest and to the extent perfection may be effected pursuant to applicable law solely by recording or filing Financing Statements.  
(d)    Such Originator (with respect to Originator Conveyed Loans) or the Issuer (with respect to Third Party Loans) has not waived any material default, breach, violation or event of acceleration existing under the Mortgage or Mortgage Note.
(e)    The Borrower has not waived any material default, breach, violation or event of acceleration by the tenant (if any) then existing under the lease (if any) then in effect with respect to the related Mortgaged Property.
(f)    There is no valid offset, defense or counterclaim to the payment or performance obligations of the Mortgage Loan.
(g)    The Mortgaged Property securing the Mortgage Loan is free and clear of any damage that would materially and adversely affect its value as security for the Mortgage Loan.  No proceeding for the condemnation of all or any material portion of the Mortgaged Property has been commenced.
(h)    The Mortgage Loan complied with all applicable usury laws in effect at its date of origination.
(i)    The proceeds of the Mortgage Loan have been fully disbursed and there is no requirement for future advances thereunder.  All costs, fees and expenses incurred in making, closing and recording the Mortgage Loan, including, but not limited to, mortgage recording taxes and recording and filing fees relating to the origination of such Mortgage Loan, have been paid.  Any and all requirements as to completion of any on-site or off-site improvement by the Borrower and as to disbursements of any escrow funds therefor that were to have been complied with have been complied with.
(j)    The Borrower under the related Mortgage Note, Mortgage and all other Loan Documents had the power, authority and legal capacity to enter into, execute and deliver the same, and, as applicable, such Mortgage Note, Mortgage and other Loan Documents have been duly authorized, properly executed and delivered by the parties thereto, and each is the legal, valid and binding obligation of the maker thereof (subject to any non-recourse provisions contained in any of the foregoing agreements and any applicable state anti-deficiency legislation), enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other laws relating to or affecting the rights of creditors generally and by general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law).
(k)    All improvements upon the Mortgaged Property securing the Mortgage Loan are insured under insurance policies (as described, with respect to Originator Conveyed Loans, in a schedule to the related Property Transfer Agreement entitled the “Insurance Schedule”).  The Loan Documents require the Borrower to maintain, or cause the tenant to maintain, insurance coverage (i) with respect to Originator Conveyed Loans, as described on the Insurance Schedule and (ii) with respect to all Mortgage Loans, all insurance required under applicable law including, without limitation, insurance against loss by hazards with extended coverage in an amount (subject to a customary deductible) at least equal to the full replacement cost of the improvements located on such Mortgaged Property, including without limitation, flood insurance if any portion of the improvements located upon the Mortgaged Property was, at the time of the origination of the Mortgage Loan, in a flood zone area as identified in the Federal Register by the Federal Emergency Management Agency as a 100 year flood zone or special hazard area, and flood insurance was available under the then current guidelines of the Federal Insurance Administration and is in effect with a generally acceptable insurance carrier.  The Loan Documents require the Borrower to maintain, or to cause the tenant to maintain, on the Mortgaged Property securing any Mortgage Loan a fire and extended perils insurance policy, in an amount not less than the replacement cost and the amount necessary to avoid the operation of any co-insurance provisions with respect to the Mortgaged Property. All such insurance policies contain a standard “additional insured” clause (or similar clause) naming the Borrower (as landlord under the related Lease, if applicable), its successors and assigns (including, without limitation, subsequent owners of the Mortgaged Property), as additional insured, and may not be reduced, terminated or canceled without thirty and, in some cases, ten days’ prior written notice to the additional insured.  In addition, the Mortgage requires the Borrower to (i) cause the holder of the Mortgage to be named as an additional insured mortgagee, and (ii) maintain (or to require the tenant to maintain) in respect of the Mortgaged Property workers’ compensation insurance (if applicable), commercial general liability insurance in amounts generally required by such holder of the Mortgage, and at least six months’ rental or business interruption insurance.  The related Loan Documents obligate the Borrower to maintain (or cause the tenant to maintain) such insurance and, at such Borrower’s failure to do so, authorizes the mortgagee to maintain such insurance at the Borrower’s cost and expense and to seek reimbursement therefor from such Borrower.  Each such insurance policy, as applicable, is required to name the holder of the Mortgage as an additional insured or contain a mortgagee endorsement naming the holder of the Mortgage as loss payee and requires prior notice to the holder of the Mortgage of termination or cancellation, and no such notice has been received, including any notice of nonpayment of premiums, that has not been cured.  There have been no acts or omissions that would impair the coverage of any such insurance policy or the benefits of the mortgage endorsement.  All insurance contemplated in this section is maintained with insurance companies with a claims paying ability rated at least “A: VIII” by A. M. Best’s Key Rating Guide and at least “A” by S&P, and are licensed to do business in the state wherein the Borrower or the Mortgaged Property subject to the policy, as applicable, is located.
(l)    The Mortgaged Property securing the Mortgage Loan was subject to one or more environmental site assessments or reports (or an update of a previously conducted assessment or report) prior to the origination of such Mortgage Loan. Neither such Originator (with respect to Originator Conveyed Loans) nor the Issuer (with respect to Third Party Loans) has knowledge of any material and adverse environmental conditions or circumstance affecting such Mortgaged Property that was not disclosed in the related assessment or report(s).  There are no material and adverse environmental conditions or circumstances affecting the Mortgaged Property securing any such Mortgage Loan other than, with respect to any adverse environmental condition described in such report, those conditions for which either (a) an environmental insurance policy has been obtained from an insurer meeting the requirements set forth in the Property Management Agreement, with limits the Issuer reasonably believes to be sufficient to satisfy the remediation of and any potential Issuer or Originator liability derivative of such condition, or (b) remediation has been completed and, thereafter, to the extent that such report or remediation program is so recommended: (i) a program of annual integrity testing and/or monitoring was recommended and implemented in connection with the Mortgaged Property securing any such Mortgage Loan or an adjacent or neighboring property; (ii) an operations and maintenance plan or periodic monitoring of such Mortgaged Property or nearby properties was recommended and implemented; or (iii) a follow-up plan was otherwise required to be taken under CERCLA or under regulations established thereunder from time to time by the Environmental Protection Agency, and such plan has been implemented in the case of (i), (ii) and (iii) above.  To the extent required by the then current Underwriting Guidelines (1) with respect to Originator Conveyed Loans, at the time of origination (in the case of Originator Conveyed Loans originated by an Originator) or acquisition (in the case of all other Originator Conveyed Loans) or (2) with respect to any Third Party Loans, at the time of acquisition by the Issuer, it was determined (or had previously been determined) that adequate funding was available for such program or plan, as applicable.  The related Originator (with respect to Originator Conveyed Loans) or the Issuer (with respect to Third Party Loans) has not taken any action with respect to the Mortgage Loan or the Mortgaged Property securing such Mortgage Loan that could subject the Issuer, or its successors and assigns in respect of the Mortgage Loan, to any liability under CERCLA or any other applicable federal, state or local environmental law, and neither the Originator (with respect to Originator Conveyed Loans) nor the Issuer (with respect to Third Party Loans) has received any actual notice of a material violation of CERCLA or any applicable federal, state or local environmental law with respect to the Mortgaged Property securing such Mortgage Loan that was not disclosed in the related report.  The Mortgage or other Loan Documents require the Borrower (and, if applicable, the Leases related thereto, require the tenant relating thereto) to comply with all applicable federal, state and local environmental laws and regulations.
(m)    The Mortgage Loan is not cross-collateralized with any mortgage loan that is not included in the Collateral Pool.
(n)    The terms of the Mortgage, Mortgage Note and other Loan Documents have not been impaired, waived, altered, modified, satisfied, canceled or subordinated in any material respect, except by written instruments that are part of the Loan File, recorded or filed in the applicable public office if necessary to maintain the priority of the lien of the related Mortgage.
(o)    There are no delinquent taxes, ground rents, assessments for improvements or other similar outstanding lienable charges affecting the related Mortgaged Property which are or may become a lien of priority equal to or higher than the lien of the Mortgage.  For purposes of this representation and warranty, real property taxes and assessments shall not be considered unpaid until the date on which interest and/or penalties would be payable thereon.
(p)    Except for any Mortgage Loan secured primarily by equipment used in the operation of a Mortgaged Property, the interest of the Borrower in the Mortgaged Property consists of a fee simple estate in real property.  
(q)    The Mortgage Loan is a whole loan and not a participation interest.
(r)    The assignment of the Mortgage referred to in the Loan File constitutes the legal, valid and binding assignment of such Mortgage from the relevant assignor to the Issuer or to the Collateral Agent.  The Assignment of Leases and Rents set forth in the Mortgage or separate from the Mortgage and related to and delivered in connection with the Mortgage Loan establishes and creates a valid, subsisting and, subject only to Permitted Exceptions, enforceable first priority lien and first priority security interest in the Borrower’s interest in all leases, subleases, licenses or other agreements pursuant to which any person is entitled to occupy, use or possess all or any portion of the real property subject to the Mortgage, and each assignor thereunder has the full right to assign the same.  The related assignment of Mortgage or any assignment of leases and rents not included in a Mortgage, executed and delivered in favor of the Issuer is in recordable form and constitutes a legal, valid and binding assignment, sufficient to convey to the assignee named therein all of the assignor’s right, title and interest in, to and under such assignment of leases and rents.
(s)    All escrow deposits relating to the Mortgage Loan that are required to be deposited with the related holder of the Mortgage Loan or its agent have been so deposited.
(t)    The Mortgaged Property securing such Mortgage Loan was and is free and clear of any mechanics’ and materialmen’s liens or liens in the nature thereof which create a lien prior to that created by the Mortgage, except those which are insured against by the Title Policy referred to in paragraph (e) above.
(u)    As of the date of the origination of the Mortgage Loan, no improvement that was included for the purpose of determining the appraised value of the related Mortgaged Property securing such Mortgage Loan at the time of origination of the Mortgage Loan lay outside the boundaries and building restriction lines of such property in any way that would materially and adversely affect the value of such Mortgaged Property or the ability to operate the Mortgaged Property as it was then being operated (unless affirmatively covered by the title insurance referred to in paragraph (e) above), and no improvements on adjoining properties encroached upon such Mortgaged Property to any material extent.
(v)    (i) There exists no material default, breach or event of acceleration under the Mortgage Loan or any of the Loan Documents or the related lease, if any, (ii) there exists no event (other than payments due but not yet delinquent) that, with the passage of time or with notice and the expiration of any grace or cure period, would constitute such a material default, breach or event of acceleration, (iii) no payment is, or solely with respect to Originator Conveyed loans has previously been during any time owned by the applicable Originator, 30 or more days delinquent, and (iv) no payment on any related lease is or, solely with respect to Originator Conveyed Loans, has previously been during any time owned by the applicable Originator, 30 or more days delinquent; provided, however, that this representation and warranty does not cover any default, breach or event of acceleration that specifically pertains to any matter otherwise covered or addressed by any other representation and warranty made by such Originator of the Issuer with respect to the Mortgage Loan.
(w)    In connection with the origination of the Mortgage Loan originated by an Originator, the applicable Originator (in the case of Originator Conveyed Loans) or the Issuer or an affiliate thereof (in the case of Third Party Loans) inspected or caused to be inspected the Mortgaged Property securing the Mortgage Loan by inspection or appraisal, in either case as required in the Underwriting Guidelines then in effect at the time of such origination or acquisition.
(x)    Unless specified in the Lease File, the Mortgage Loan contains no equity participation by or shared appreciation rights in the lender or beneficiary under the Mortgage, and does not provide for any contingent or additional interest in the form of participation in the cash flow of the Mortgaged Property securing the Mortgage Loan, or for negative amortization.
(y)    No holder of the Mortgage Loan has advanced funds or induced, solicited or knowingly received any advance of funds from a party other than the owner of the Mortgaged Property securing the Mortgage Loan, directly or indirectly, for the payment of any amount required by the Mortgage Loan (other than amounts paid by any tenant as specifically provided under the related lease).
(z)    To the applicable Originator’s knowledge (with respect to Originator Conveyed Loans) or to the Issuer’s knowledge (with respect to Third Party Loans), in each case based on due diligence customarily performed in the origination or acquisition of comparable mortgage loans by such Originator or Issuer, as applicable, as of the date of origination (in the case of Originator Conveyed Loans originated by an Originator) or acquisition (in the case of other Mortgage Loans) of the Mortgage Loans by such Originator or Issuer, as applicable, the related Borrowers, were in compliance with all applicable laws relating to the ownership and operation of the Mortgaged Properties securing the Mortgage Loan as they were then operated and were in possession of all material licenses, permits and authorizations required by applicable laws for the ownership and operation of such Mortgaged Properties as they were operated.  With respect to Mortgaged Properties that are operated as franchised properties, and except with respect to Mortgage Loans for which the related tenant is the franchisor, the tenant of such Mortgaged Property has entered into a legal, valid, and binding franchise agreement and such lessee operator has represented in the applicable lease documents that, as of the date of origination (in the case of Originator Conveyed Loans originated by an Originator) or acquisition (in the case of any other Mortgage Loans) by such Originator or Issuer, as applicable, of the Mortgage Loan, there were no defaults under the franchise agreement by such tenant.
(aa)    The origination, servicing and collection practices such Originator or such Issuer has used with respect to the Mortgage Loan since such Originator’s origination or, as applicable, such Originator’s or Issuer’s acquisition thereof have complied with applicable law in all material respects and are consistent and in accordance with the terms of the related Loan Documents and in accordance with customary industry standards.
(bb)    The Mortgage or Mortgage Note, together with applicable state law, contains customary and enforceable provisions (subject to the exceptions set forth in paragraph (l) above) such as to render the rights and remedies of the holders thereof adequate for the practical realization against the Mortgaged Property securing the Mortgage Loan of the principal benefits of the security intended to be provided thereby, including the right of foreclosure under the laws of the state in which the Mortgaged Property securing the Mortgage Loan is located.
(cc)    The Mortgage provides that insurance proceeds and condemnation proceeds will be applied for one of the following purposes: to restore or repair the Mortgaged Property securing the Mortgage Loan; to repay the principal of the Mortgage Loan; or to be used as otherwise directed by the holder of such Mortgage.
(dd)    There are no actions, suits, legal, arbitration or administrative proceedings or investigations by or before any court or governmental authority or, to the best of such Originator’s (with respect to Originator Conveyed Loans) or Issuer’s (with respect to Third Party Loans) knowledge, as applicable, pending against or affecting the Borrower or the Mortgaged Property securing the Mortgage Loan that, if determined adversely to such Borrower or the Mortgaged Property securing the Mortgage Loan, would materially and adversely affect the value of the Mortgaged Property securing the Mortgage Loan or the ability of the Borrower to pay principal, interest or any other amounts due under the Mortgage Loan or the related Lease, as applicable.
(ee)    If the Mortgage is a deed of trust, a trustee, duly qualified under applicable law to serve as such, is properly designated and serving under such Mortgage.  Except in connection with a trustee’s sale or as otherwise required by applicable law, after default by the Borrower, no fees or expenses are payable to such trustee.
(ff)    Except in cases where either (i) a release of a portion of the Mortgaged Property securing the Mortgage Loan was contemplated at origination of the Mortgage Loan and such portion was not considered material for purposes of underwriting the Mortgage Loan, or (ii) release is conditioned upon the satisfaction of certain underwriting and legal requirements and the payment of a release price, neither the Mortgage Note nor the Mortgage requires the holder thereof to release all or any portion of the Mortgaged Property securing the Mortgage Loan from the lien of the Mortgage except upon payment in full of all amounts due under the Mortgage Loan.
(gg)    The Mortgage does not permit the Mortgaged Property securing the Mortgage Loan to be encumbered by any lien junior to or of equal priority with the lien of the Mortgage (excluding any lien relating to another Mortgage Loan that is cross collateralized with the Mortgage Loan) without the prior written consent of the holder thereof.
(hh)    The Borrower is not a debtor in any state or federal bankruptcy or insolvency proceeding.
(ii)    As of the date of origination (in the case of Originator Conveyed Loans originated by an Originator) or acquisition (in the case of any other Originator Conveyed Loans) by an Originator or acquisition (in the case of Third Party Loans) by the Issuer (and to the Issuer’s knowledge), the Borrower (if not a natural person) was duly organized and validly existing under the laws of the state of its jurisdiction.
(jj)    The Mortgage Loan contains provisions for the acceleration of the payment of the unpaid principal balance of the Mortgage Loan if, without complying with the requirements of the Mortgage Loan, the Mortgaged Property securing the Mortgage Loan, or any controlling interest in the Borrower, is directly or indirectly transferred or sold.
(kk)    The Loan Documents for the Mortgage Loan generally provide that the Borrower is to provide periodic financial and operating reports including, without limitation, annual profit and loss statements, statements of cash flow and other related information that such Issuer reasonably requests from time to time.
(ll)    To such Originator’s actual knowledge, based upon zoning letters, zoning reports, the Title Policy insuring the lien of the Mortgage, historical use and/or other due diligence customarily performed by such Originator in connection with the origination or acquisition, as applicable, of comparable mortgage loans, the improvements located on or forming part of such Mortgaged Property securing the Mortgage Loan comply in all material respects with applicable zoning laws and ordinances (except to the extent that they may constitute legal non-conforming uses).
(mm)    Any Mortgaged Property securing the Mortgage Loan is located within one of the 50 United States or the District of Columbia.
(nn)    With respect to a Mortgage Loan secured by Mortgaged Property located in “seismic zones” 3 or 4, the Borrower has obtained, and is required under the Loan Documents to maintain, or is required to cause the applicable tenant to maintain (and the tenant has obtained), or the Issuer has obtained earthquake insurance with respect to the improvements on and forming a part of such Mortgaged Property.
(oo)    Such Originator (with respect to Originator Conveyed Loans) or the Issuer (with respect to Third Party Loans) does not have knowledge of any circumstance or condition with respect to such Mortgage Loan, the Mortgaged Property securing the Mortgage Loan, the related lease (if any) or the Borrower’s or the tenant’s credit standing (if any) that could reasonably be expected to cause such Issuer to regard such Mortgage Loan as unacceptable security, cause such Mortgage Loan or the related lease to become delinquent or have a material adverse effect on the value or marketability of such Mortgage Loan. 
(pp)    The Mortgaged Property securing the Mortgage Loan has adequate rights of access to public rights-of-way and is served by utilities, including, without limitation, adequate water, sewer, electricity, gas, telephone, sanitary sewer, and storm drain facilities. All public utilities necessary to the continued use and enjoyment of the Mortgaged Property securing the Mortgage Loan as presently used and enjoyed are located in such public rights-of-way abutting such Mortgaged Property or are the subject of access easements for the benefit of the Mortgaged Property, and all such utilities are connected so as to serve such Mortgaged Property without passing over other property or are the subject of access easements for the benefit of such Mortgaged Property. All roads necessary for the full use of the Mortgaged Property securing the Mortgage Loan for its current purpose have been completed and dedicated to public use and accepted by all governmental authorities or are the subject of access easements for the benefit of such Mortgaged Property.
(qq)    The Mortgage Loan is not a construction loan.
Solely for the purposes of this Schedule I-A: (1) an Originator Conveyed Loan shall be deemed to have been originated by the Originator conveying such Mortgage Loan to the Issuer in the event that it was originated by a person who was an affiliate of such Originator as of the time of such origination and (2) an Originator Conveyed Loan shall be deemed to have been acquired by the Originator conveying such Originator Conveyed Loan to the Issuer as of the earlier of (x) the date it was acquired by such Originator and (y) the date it was first acquired by an affiliate (at the time of such acquisition) of such Originator.  Capitalized terms used but not defined in this Schedule I-A shall have the meanings assigned to such terms in the Indenture, or if not defined therein, in the Property Management Agreement.

SCHEDULE I-B

REPRESENTATIONS AND WARRANTIES WITH RESPECT TO MORTGAGED PROPERTIES (OTHER THAN MORTGAGED PROPERTIES SECURING MORTGAGE LOANS INCLUDED IN THE COLLATERAL POOL) AND LEASES

(a)    Solely with respect to (i) such Mortgaged Properties conveyed by such Originator to the Issuer (the “Originator Conveyed Properties”), immediately prior to such conveyance to the Issuer, such Originator owned such Mortgaged Property and (other than as contemplated in clause (gg) below) any related Lease free and clear of any and all liens and other encumbrances except for the Permitted Exceptions and (ii) such Mortgaged Properties acquired by the Issuer from a Person other than an Originator (the “Third Party Properties”), the Issuer owns such Mortgaged Property and related Lease free and clear of any and all liens and other encumbrances except for the Permitted Exceptions.  The following are “Permitted Exceptions” with respect to such Mortgaged Properties and Leases: (i) liens for real estate taxes and special assessments not yet due and payable or due but not yet delinquent, (ii) covenants, conditions and restrictions, rights-of-way, easements and other matters of public record, such exceptions being of a type or nature that are acceptable to mortgage lending institutions generally, (iii) purchase options and (iv) other matters to which like properties or leases are commonly subject, which matters referred to in clauses (i), (ii), (iii) and (iv) do not, individually or in the aggregate, materially interfere with the value of such Mortgaged Property, or do not materially interfere or restrict the current use or operation of such Mortgaged Property relating to the Lease or do not materially interfere with the security intended to be provided by any mortgage, the current use or operation of the Mortgaged Property or the current ability of the Mortgaged Property to generate net operating income sufficient to service the Lease. Financing Statements have been filed and/or recorded (or, if not filed and/or recorded, have been submitted in proper form for filing and recording), in all public places necessary to perfect a valid first priority security interest in all items of personal property defined as part of the Mortgaged Property and in all cases, subject to a purchase money security interest and to the extent perfection may be effected pursuant to applicable law solely by recording or filing Financing Statements.
(b)    With respect to Originator Conveyed Properties, such Originator has full right and authority to sell, contribute, assign, mortgage, pledge and transfer its interest in such Lease and Mortgaged Property or, to the extent that consent of a tenant is required, such consent has been obtained.  With respect to Third Party Properties, to the Issuer’s knowledge, the third party from whom the Issuer obtained the Mortgaged Property has full right and authority to sell, contribute, assign, mortgage, pledge and transfer its interest in such Lease and Mortgaged Property or, to the extent that consent of a tenant is required, such consent was obtained.
(c)    With respect to any Originator Conveyed Property, the information set forth in the Lease Schedule (attached to the related Property Transfer Agreement) with respect to such Mortgaged Property and Lease was true and correct in all material respects as of the related Transfer Date.  With respect to any Third Party Property, the information pertaining to the Mortgaged Property set forth in the Lease Schedule (attached to the related Property Transfer Agreement) with respect to such Mortgaged Property and Lease was true and correct in all material respects as of the date the Issuer acquired the Mortgaged Property.
(d)    Such Lease was not delinquent (giving effect to any applicable grace period) in the payment of any Monthly Lease Payments (other than Additional Rents that are being recalculated with respect to certain Leases set forth in a schedule to the related Property Transfer Agreement) and, solely with respect to Originator Conveyed Properties, has not been, during the time owned by such Originator, 30 days or more delinquent in respect of any Monthly Lease Payment required thereunder.
(e)    [RESERVED].
(f)    (i) There exists no material default, breach or event of acceleration under such Lease or any other agreement, document or instrument executed in connection with such Lease, (ii) to such Originator’s (with respect to Originator Conveyed Properties) or Issuer’s (with respect to Third Party Properties) knowledge, as applicable, there exists no event (other than payments due but not yet delinquent) that, with the passage of time or with notice and the expiration of any grace or cure period, would constitute such a material default, breach or event of acceleration under such Lease, and (iii) there exists no material default, breach or event of acceleration under such Lease which such Originator (with respect to Originator Conveyed Properties) or Issuer (with respect to Third Party Properties and promptly after such acquisition), as applicable, as landlord, or its servicer is not pursuing to cure, resolve or otherwise pursue remedies under such Lease with diligence.
(g)    Neither such Lease nor any other agreement, document or instrument executed in connection with such Lease has been waived, modified, altered, satisfied, cancelled or subordinated in any material respect, and such Lease has not been terminated or cancelled, nor has any instrument been executed that would affect any such waiver, modification, alteration, satisfaction, termination, cancellation, subordination or release, except in each case by a written instrument that is part of the related Lease File.
(h)    The Mortgaged Property will be covered by a Title Policy issued during the six months after the First Collateral Date thereof, in an amount at least equal to the Appraised Value of such Mortgaged Property as of such First Collateral Date.  The Title Policy insures, as of the date of such policy, that the Collateral Agent has a valid security interest in such Mortgaged Property subject only to the Permitted Exceptions (to the extent stated therein); such Title Policy will be in full force and effect and will name the Collateral Agent as a mortgagee of record; all premiums thereon shall have been paid; and no material claims have been made thereunder.  The Title Policy will be issued by a company licensed to issue such policies in the state in which such Mortgaged Property is located.
(i)    The Mortgaged Property is not a Defaulted Asset or a Delinquent Asset as of the First Collateral Date.
(j)    At commencement of the Lease, the Tenant had all material licenses, permits and material agreements, including without limitation franchise agreements and certificates of occupancy, necessary for the operation and continuance of the Tenant’s business on the Mortgaged Property; and, to the best of such Originator’s (with respect to Originator Conveyed Properties) or Issuer’s (with respect to Third Party Properties) knowledge, (1) the Tenant is not in default of its obligations under any such applicable license, permit or agreement and (2) each such license, permit and agreement is in full force and effect.
(k)    The Tenant is not the subject of any bankruptcy or insolvency proceeding.
(l)    There are no pending actions, suits or proceedings by or before any court or governmental authority against or affecting, such Lease, such Mortgaged Property or, to such Originator’s (with respect to Originator Conveyed Properties) or Issuer’s (with respect to Third Party Properties)  knowledge, the Tenant, that is reasonably likely to be determined adversely and, if determined adversely, would materially and adversely affect the value of the Lease or use or value of the Mortgaged Property, or the ability of the Tenant to pay any amounts due under the Lease.
(m)    All of the material improvements built or to be built on the Mortgaged Property that were included for the purpose of determining the Appraised Value of the Mortgaged Property as of the First Collateral Date lay within the boundaries of such Mortgaged Property and there are no encroachments into the building setback restriction lines of such Mortgaged Property in any way that would materially and adversely affect the value of the Mortgaged Property or the ability of the Tenant to pay any amounts due under the Lease (unless affirmatively covered in the applicable Title Policy described in paragraph (h) above).
(n)    There are no delinquent or unpaid taxes or assessments, or other outstanding charges affecting the Mortgaged Property that are or may become a lien of priority equal to or higher than the lien of the Mortgage in favor of the Indenture Trustee (or Collateral Agent on its behalf), other than such amounts that do not materially and adversely affect the value of the Lease or use or value of the Mortgaged Property.  For purposes of this representation and warranty, real property taxes and assessments shall not be considered unpaid until the date on which interest and/or penalties would be payable thereon.  
(o)    There is no valid dispute, claim, offset, defense or counterclaim to such Originator’s (with respect to Originator Conveyed Properties) or Issuer’s (with respect to Third Party Properties) rights in the Lease.
(p)    There is no proceeding pending for the total or partial condemnation of the Mortgaged Property and the Mortgaged Property is free and clear of any damage that would materially and adversely affect the value or use of such Mortgaged Property.
(q)    The Lease and each other agreement, document or instrument executed by the Tenant in connection with such Lease is the legal, valid and binding and enforceable obligation of the Tenant (except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other laws relating to or affecting the rights of creditors generally and by general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law)) and is in full force and effect.
(r)    Except for Leases that permit the Tenant to self-insure, each Lease requires the Tenant to maintain (or make payment to the lessor to cover such premiums) in respect of the Mortgaged Property insurance against loss by hazards (excluding flood and earthquake) and comprehensive general liability insurance in amounts generally required by such Originator (with respect to Originator Conveyed Properties) or Issuer (with respect to Third Party Properties), and in some cases (which may be only required at an Originator’s or Issuer’s request), business interruption or rental value insurance for at least six months; all of such insurance required under the related Lease for such Mortgaged Property (including, without limitation, if provided under a master insurance policy of the Issuer or an affiliate thereof) is in full force and effect and, with respect to Originator Conveyed Properties, names such Originator or its respective successors and assigns as an additional insured or, with respect to Third Party Properties, the Issuer will be an additional insured thereunder immediately after giving effect to such acquisition; all premiums for any insurance policies (including, without limitation, any applicable master insurance policy of the Issuer or an affiliate thereof) required to be paid as of the date of the applicable Property Transfer Agreement (with respect to the Originator Conveyed Properties) or as of the First Collateral Date (with respect to any Third Party Properties) have been paid; all of such insurance policies require prior notice to the lessor under the Lease of termination or cancellation, and as of the date of the applicable Property Transfer Agreement (with respect to the Originator Conveyed Properties) or as of the First Collateral Date (with respect to any Third Party Properties), no such notices have been received; in the event that the Tenant fails to maintain the insurance required thereunder, the Lease (or other applicable document) authorizes the lessor under the Lease to maintain such insurance at the Tenant’s cost and expense and to seek reimbursement therefor from such Tenant. If such Mortgaged Property is located in a flood zone area as identified by the Federal Emergency Management Agency as a 100 year flood zone or special hazard area, such Mortgaged Property is required under the Lease to be covered by insurance against loss by flood in amounts generally required by such Originator (with respect to Originator Conveyed Properties) or Issuer (with respect to Third Party Properties), which insurance is in full force and effect.  With respect to each Lease that permits the related Tenant to self-insure, such Lease requires one of the following in order for such Tenant to self-insure:  (i) the related Tenant to not be in default, and such Tenant or any related Guarantor must be a company listed on the NYSE with a rating of “NAIC-2” or better by the National Association of Insurance Commissioners; (ii) the related Tenant to not be in default and maintain a minimum tangible net worth of at least $50,000,000; (iii) the related Tenant to maintain limits of not less than $2,000,000; or (iv) the related Tenant may self-insure up to $100,000 single limits per occurrence for each $10,000,000 of such Tenant’s net worth as reflected on such Tenant’s most recent audited balance sheet.
(s)    The Mortgaged Property was subject to one or more environmental assessments or reports (or an update of a previously conducted assessment or report) and the Originator (with respect to Originator Conveyed Properties) or Issuer (with respect to Third Party Properties) has no knowledge of any material and adverse environmental conditions or circumstance affecting such Mortgaged Property that were not disclosed in the related assessment or report(s).  There are no material and adverse environmental conditions or circumstances affecting the Mortgaged Property other than, with respect to any adverse environmental condition described in such report, those conditions for which either (a) an environmental insurance policy has been obtained from an insurer meeting the requirements set forth in the Property Management Agreement, with limits the Issuer reasonably believes to be sufficient to satisfy the remediation of and any potential Issuer or Originator liability derivative of such condition, or (b)  remediation has been completed and, thereafter, to the extent that such report or remediation program so recommended: (i) a program of annual integrity testing and/or monitoring was recommended and implemented in connection with the Mortgaged Property or an adjacent or neighboring property; (ii) an operations and maintenance plan or periodic monitoring of such Mortgaged Property or nearby properties was recommended and implemented; or (iii) a follow-up plan was otherwise required to be taken under CERCLA or under regulations established thereunder from time to time by the Environmental Protection Agency, and such plan has been implemented in the case of (i), (ii) and (iii) above.  The Originator (with respect to Originator Conveyed Properties) or Issuer (with respect to Third Party Properties), as applicable, determined in accordance with the then current Underwriting Guidelines at the time of such determination that adequate funding was available for such program or plan, as applicable.  Neither the Originator (with respect to Originator Conveyed Properties) or Issuer (with respect to Third Party Properties) has taken any action with respect to the Mortgaged Property that would subject the Issuer, or its successors and assigns in respect of the Mortgaged Property, to any liability under CERCLA or any other applicable Environmental Law, and neither the Originator (with respect to Originator Conveyed Properties) nor the Issuer (with respect to Third Party Properties) has received any actual notice of a material violation of CERCLA or any applicable Environmental Law with respect to the Mortgaged Property that was not disclosed in the related report.  The Lease requires the Tenant to comply with all applicable federal, state and local laws. For purposes of this paragraph (s), “Environmental Law” means any present federal, state and local laws, statutes, ordinances, rules, regulations, standards, policies, consent decrees, consent or settlement agreements and other governmental directives or requirements, as well as common law, that apply to the Mortgaged Property and relate to Hazardous Substances, including, without limitation, CERCLA and RCRA.  For purposes of this paragraph (s), “Hazardous Substances” means petroleum and petroleum products and compounds containing them, including gasoline, diesel fuel and oil; explosives; flammable materials; radioactive materials; polychlorinated biphenyls (PCBs) and compounds containing them; lead and lead-based paint; asbestos or asbestos-containing materials in any form that is or could become friable; underground or above-ground storage tanks, whether empty or containing any substance; any substance the presence of which on the Mortgaged Property is regulated by or prohibited by any federal, state or local authority; any substance that requires special handling; and any other material, substance or waste now or in the future defined as a “hazardous substance”, “hazardous material”, “hazardous waste”, “toxic substance”, “toxic pollutant”, “contaminant”, “pollutant” or other words of similar import within the meaning of any Environmental Law.
(t)    Such Mortgaged Property is free and clear of any mechanics’ and materialmen’s liens or liens in the nature thereof that would materially and adversely affect the value, use or operation of such Mortgaged Property except those that are insured against by the Title Policy referred to in paragraph (h) above.
(u)    The Lease, together with applicable state law, contains customary and enforceable provisions such as to render the rights and remedies of the lessors thereof adequate for the practical realization against the related Mortgaged Property of the principal benefits of the security intended to be provided thereby, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other laws relating to or affecting the rights of creditors generally and by general principles of equity (regardless of whether such enforcement is considered in a proceeding in equity or at law).
(v)    With respect to each Mortgaged Property:
(1)    such Mortgaged Property is not subject to any lease other than a sublease and/or the related Lease; no person has any possessory interest in, or right to occupy, the leased property except under and pursuant to the Lease or such sublease; the Tenant (or sub-tenant) is in occupancy of the Mortgaged Property and is paying rent pursuant to the Lease; and, in the case of any sublease, the Tenant remains primarily liable on the Lease;
(2)    except with respect to those Mortgaged Properties with respect to which the Tenant can terminate the related Lease during the last forty-two months of the lease term in the event of a casualty and any insurance proceeds related thereto are payable to the Tenant, the obligations of the Tenant, including, but not limited to, the obligation to pay fixed and additional rent, are not affected by reason of: any damage to or destruction of any portion of the leased property; any taking of the leased property or any part thereof by condemnation or otherwise; or any prohibition, limitation, interruption, cessation, restriction, prevention or interference of the Tenant’s use, occupancy or enjoyment of the leased property, except the Tenant’s rights to abate or terminate its obligation to pay fixed or additional rent are coupled with insurance proceeds or condemnation awards going to the lessor; or the right to abate as a result of a landlord’s default;
(3)    neither such Originator (with respect to Originator Conveyed Properties) nor Issuer (with respect to Third Party Properties), as applicable, as lessor under the Lease, has any monetary obligation under the Lease that has not been satisfied (other than obligations customary for a triple net lease lessor or, in the case of Mortgaged Properties subject to Ground Leases, a Ground Lease lessor);
(4)    the Tenant has not been released, in whole or in part, from its obligations under the terms of the Lease;
(5)    all obligations related to the initial construction of the improvements on the Mortgaged Property have been satisfied and, except for the obligation to rebuild such improvements after a casualty (which obligation is limited by available insurance proceeds), neither such Originator (with respect to Originator Conveyed Properties) nor Issuer (with respect to Third Party Properties), as applicable, has any nonmonetary obligations under the Lease (other than obligations customary for a triple net lease lessor or, in the case of Mortgaged Properties subject to Ground Leases, a Ground Lease lessor) and has made no representation or warranty under the Lease, the breach of which would result in the abatement of rent, a right of setoff or termination of the Lease;
(6)    there is no right of rescission, set-off, abatement (except in the case of casualty or condemnation), diminution, defense or counterclaim to the Lease, nor does the operation of any of the terms of the Lease, or the exercise of any rights thereunder, render the Lease unenforceable, in whole or in part, or subject to any right of rescission, set-off, abatement, diminution, defense or counterclaim, and no such right has been asserted;
(7)    the Tenant has agreed to indemnify the lessor from any claims of any nature relating to the Lease and the related Mortgaged Property other than the lessor’s gross negligence or willful misconduct, including, without limitation, arising as a result of violations of environmental and hazardous waste laws resulting from the Tenant’s operation of the property;
(8)    any obligation or liability imposed on the lessor by any easement or reciprocal easement agreement is also an obligation of the Tenant under the Lease;
(9)    the Tenant is required to make rental payments as directed by the lessor and its successors and assigns; and
(10)    except in certain cases where the Tenant may exercise a right of first refusal, the Lease is freely assignable by the lessor and its successors and assigns to any person without the consent of the Tenant, and in the event the lessor’s interest is so assigned, the Tenant is obligated to recognize the assignee as lessor under such Lease, whether under the Lease or by operation of law.
(w)    In connection with Leases with a Guaranty:
(1)    such Guaranty, on its face, is unconditional, irrevocable and absolute, and is a guaranty of payment and not merely of collection and contains no conditions to such payment, other than a notice and right to cure; and the Guaranty provides that it is the guaranty of both the performance and payment of the financial obligations of the Tenant under the Lease and does not provide for offset, counterclaim or defense; and
(2)    such Guaranty is binding on the successors and assigns of the guarantor and inures to the benefit of the lessor’s successors and assigns and cannot be released or amended without the lessor’s consent or unless a predetermined performance threshold is achieved.
(x)    Solely with respect to Originator Conveyed Properties, no fraudulent acts were committed by the applicable Originator during the origination process with respect to the Lease related to such Mortgaged Property.
(y)    In connection with the acquisition of each Mortgaged Property, such Originator (with respect to Originator Conveyed Properties) or the Issuer (with respect to Third Party Properties), as applicable,  inspected or caused to be inspected the Mortgaged Property by inspection, appraisal or otherwise as required in such Underwriting Guidelines then in effect at the time of such acquisition.
(z)    The origination, servicing and collection of Monthly Lease Payments on such Lease is in all respects legal, proper and prudent and in accordance with customary industry standards.
(aa)    To the extent required under applicable law, such Originator (with respect to Originator Conveyed Properties) or the Issuer (with respect to Third Party Properties) was authorized to transact and do business in the jurisdiction in which such Mortgaged Property is located, except where such failure to qualify would not result in a material adverse effect on the enforceability of the related Lease.
(bb)    The Mortgaged Property has adequate rights of access to public rights-of-way and is served by utilities, including, without limitation, adequate water, sewer, electricity, gas, telephone, sanitary sewer, and storm drain facilities. All public utilities necessary to the continued use and enjoyment of the Mortgaged Property as presently used and enjoyed are located in the public right-of-way abutting the Mortgaged Property or are the subject of access easements for the benefit of the Mortgaged Property, and all such utilities are connected so as to serve the Mortgaged Property without passing over other property or are the subject of access easements for the benefit of the Mortgaged Property. All roads necessary for the full use of the Mortgaged Property for its current purpose have been completed and dedicated to public use and accepted by all governmental authorities or are the subject of access easements for the benefit of the Mortgaged Property.
(cc)    The Lease File contains (or Spirit Realty or an affiliate thereof holds) a survey with respect to such Mortgaged Property, which survey was deemed sufficient to delete the standard title survey exception (to the extent the deletion of such exception is available in the related state).  
(dd)    [RESERVED].
(ee)    Each Originator Conveyed Property  was acquired and each related Lease conveyed to the Issuer originated (in the case of Leases originated by an Originator) or acquired (in the case of any other Lease) by such Originator in all material respects in accordance with the Underwriting Guidelines in effect at the time of such origination or acquisition.  Each Third Party Property and related Lease was acquired by the Issuer in all material respects in accordance with the Underwriting Guidelines in effect at the time of such acquisition.
(ff)    No adverse selection was employed in selecting such Lease.
(gg)    With respect to any Mortgaged Property which is the subject of a Master Lease (noting that not all properties subject to such Master Lease are included as Mortgaged Properties in the Collateral Pool), the lessor under the Master Lease has assigned its interest in the Leases of the Mortgaged Properties to such Originator (with respect to Originator Conveyed Properties) or the Issuer (with respect to Third Party Properties) and such Originator or the Issuer, as applicable, and the other lessors under the Master Leases have entered into inter-lessor agreements by which the rents and the rights to enforce the provisions of the Master Leases pertinent to any of the Mortgaged Properties have also been assigned to such Originator or the Issuer, as applicable.
(hh)    Such Mortgaged Property is (i) free of any damage that would materially and adversely affect the use or value of such Mortgaged Property and (ii) in good repair and condition so as not to materially and adversely affect the use or value of such Mortgaged Property; and all building systems contained in such Mortgaged Property are in good working order so as not to materially and adversely affect the use or value of such Mortgaged Property.
(ii)    All security deposits collected in connection with such Mortgaged Property are being held in accordance with all applicable laws.
(jj)    To the Originator’s (with respect to Originator Conveyed Properties) or the Issuer’s (with respect to Third Party Properties) actual knowledge, based upon zoning letters, zoning reports, the Title Policy insuring the lien of the Mortgage, historical use and/or other due diligence customarily performed by such party in connection with the acquisition of the Mortgaged Property, the improvements located on or forming part of such Mortgaged Property comply in all material respects with applicable zoning laws and ordinances (except to the extent that they may constitute legal non-conforming uses), including the existence of a certificate of occupancy.
(kk)    Such Mortgaged Property constitutes one or more separate tax parcels which do not include any property which is not part of the Mortgaged Property or is subject to an endorsement under the related Title Policy insuring the Mortgaged Property.
Solely for the purposes of this Schedule I-B: (1) a Lease relating to an Originator Conveyed Property shall be deemed to have been originated by the Originator conveying such Lease to the Issuer in the event that it was originated by a person who was an affiliate of such Originator at the time of such origination and (2) an Originator Conveyed Property or related Lease shall be deemed to have been acquired by the Originator conveying such Originator Conveyed Property or related Lease to the Issuer as of the earlier of (x) the date it was acquired by such Originator and (y) the date it was first acquired by a person who was an affiliate (at the time of such acquisition) of such Originator.  Capitalized terms used but not defined in this Schedule I-B shall have the meanings assigned to such terms in the Indenture, or if not defined therein, in the Property Management Agreement.

C-2-7

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