Document:

EXHIBIT 10.1

 

EXECUTION VERSION

 

$1,500,000,000

 

CREDIT AGREEMENT

 

dated as of

 

October 26, 2018

 

among

 

The Estée Lauder Companies Inc.,

 

 

The Eligible Subsidiaries From Time to Time Party Hereto,

 

The Lenders From Time to Time Party Hereto,

 

 

JPMorgan Chase Bank, N.A.,
 as Administrative Agent and

 

 

BNP Paribas,
 Citibank, N.A.,

Bank of America, N.A. 
 and 
 MUFG Bank, Ltd.,
 as Syndication Agents

 

 

JPMorgan Chase Bank, N.A.,
 BNP Paribas Securities Corp.,
 Citibank, N.A.,

Merrill Lynch, Pierce, Fenner & Smith Incorporated
 and
 MUFG Bank, Ltd.,

as Joint Bookrunners and Joint Lead Arrangers

 

 

TABLE OF CONTENTS

 

	
 
    	
PAGE
    
	
 
    	
 
    
	
ARTICLE 1
    
	
DEFINITIONS
    
	
 
    	
 
    
	
Section 1.01. Definitions
    	
1
    
	
Section 1.02. Accounting Terms and Determinations
    	
29
    
	
Section 1.03. Types of Borrowing
    	
30
    
	
Section 1.04. Terms Generally
    	
30
    
	
Section 1.05. Interest Rates
    	
31
    
	
 
    	
 
    
	
ARTICLE 2
    
	
THE CREDITS
    
	
 
    	
 
    
	
Section 2.01. Commitments To Lend
    	
31
    
	
Section 2.02. Notice of Committed Borrowing
    	
32
    
	
Section 2.03. Competitive Bid Borrowings
    	
33
    
	
Section 2.04. Notice To Lenders; Funding of Loans
    	
37
    
	
Section 2.05. Evidence Of Debt
    	
39
    
	
Section 2.06. Maturity of Loans
    	
39
    
	
Section 2.07. Interest Rates
    	
40
    
	
Section 2.08. Fees
    	
42
    
	
Section 2.09. Optional Termination or Reduction of Commitments
    	
43
    
	
Section 2.10. Method of Electing Interest Rates
    	
43
    
	
Section 2.11. Mandatory Termination of Commitments
    	
46
    
	
Section 2.12. Optional Prepayments
    	
46
    
	
Section 2.13. Determining Dollar Amounts of Committed Alternative Currency Loans;   Related Mandatory Prepayments
    	
46
    
	
Section 2.14. General Provisions as to Payments
    	
48
    
	
Section 2.15. Funding Losses
    	
49
    
	
Section 2.16. Computation of Interest and Fees
    	
50
    
	
Section 2.17.   [Reserved]
    	
50
    
	
Section 2.18. Regulation D Compensation
    	
50
    
	
Section 2.19. Letters of Credit
    	
51
    
	
Section 2.20. Defaulting Lenders
    	
56
    
	
Section 2.21.  Incremental Increase in   Commitments
    	
60
    
	
Section 2.22. Termination Date Extension
    	
60
    
	
 
    	
 
    
	
ARTICLE 3
    
	
CONDITIONS
    
	
 
    	
 
    
	
Section 3.01. Closing
    	
61
    
	
Section 3.02. Borrowings and Issuances of Letters of Credit
    	
62
    

 

i

 

	
Section 3.03. First Borrowing by Each Eligible Subsidiary
    	
64
    
	
Section 3.04. Existing Credit Agreement
    	
64
    
	
 
    	
 
    
	
ARTICLE 4
    
	
REPRESENTATIONS   AND WARRANTIES
    
	
 
    	
 
    
	
Section 4.01. Corporate Existence and Power
    	
65
    
	
Section 4.02. Corporate and Governmental Authorization; No Contravention
    	
65
    
	
Section 4.03. Binding Effect
    	
65
    
	
Section 4.04. Financial Information
    	
65
    
	
Section 4.05. Litigation
    	
66
    
	
Section 4.06. Compliance with ERISA
    	
66
    
	
Section 4.07. Environmental Matters
    	
66
    
	
Section 4.08. Taxes
    	
66
    
	
Section 4.09. Subsidiaries
    	
67
    
	
Section 4.10. Regulatory Restrictions on Borrowing
    	
67
    
	
Section 4.11. Full Disclosure
    	
67
    
	
Section 4.12. Anti-Corruption Laws and Sanctions
    	
67
    
	
 
    	
 
    
	
ARTICLE 5
    
	
COVENANTS
    
	
 
    	
 
    
	
Section 5.01. Information
    	
68
    
	
Section 5.02. Payment of Obligations
    	
70
    
	
Section 5.03. Insurance
    	
70
    
	
Section 5.04. Conduct of Business and Maintenance of Existence
    	
70
    
	
Section 5.05. Compliance with Laws
    	
71
    
	
Section 5.06. Inspection of Property, Books and Records
    	
71
    
	
Section 5.07. Mergers and Sales of Assets
    	
71
    
	
Section 5.08. Use of Proceeds
    	
72
    
	
Section 5.09. Negative Pledge
    	
72
    
	
Section 5.10. Debt of Subsidiaries
    	
73
    
	
Section 5.11. Transactions with Affiliates
    	
74
    
	
 
    	
 
    
	
ARTICLE 6
    
	
DEFAULTS
    
	
 
    	
 
    
	
Section 6.01. Events of Default
    	
74
    
	
Section 6.02. Notice of Default
    	
76
    
	
Section 6.03. Application of Proceeds
    	
76
    
	
 
    	
 
    
	
ARTICLE 7
    
	
THE   ADMINISTRATIVE AGENT
    
	
 
    	
 
    
	
Section 7.01. Appointment and Authorizations
    	
78
    

 

ii

 

	
Section 7.02. Agents and Affiliates
    	
78
    
	
Section 7.03. Action by Agents
    	
78
    
	
Section 7.04. Consultation with Experts
    	
79
    
	
Section 7.05. Delegation of Duties
    	
80
    
	
Section 7.06. Indemnification
    	
80
    
	
Section 7.07. Resignation of Administrative Agent
    	
80
    
	
Section 7.08. Administrative Agent’s Fees
    	
81
    
	
Section 7.09. Other Agents Not Liable
    	
81
    
	
Section 7.10. Credit Decision
    	
81
    
	
Section 7.11. Posting of Communications
    	
82
    
	
Section 7.12. Certain ERISA Matters
    	
83
    
	
 
    	
 
    
	
ARTICLE 8
    
	
CHANGE IN   CIRCUMSTANCES
    
	
 
    	
 
    
	
Section 8.01. Basis for Determining Interest Rate Inadequate or Unfair
    	
85
    
	
Section 8.02. Illegality
    	
87
    
	
Section 8.03. Increased Cost and Reduced Return
    	
88
    
	
Section 8.04. Taxes
    	
89
    
	
Section 8.05. Base Rate Loans Substituted for Affected Fixed Rate Loans
    	
93
    
	
Section 8.06. Substitution of Lenders
    	
94
    
	
 
    	
 
    
	
ARTICLE 9
    
	
REPRESENTATIONS   AND WARRANTIES OF ELIGIBLE SUBSIDIARIES
    
	
 
    	
 
    
	
Section 9.01. Corporate Existence and Power
    	
95
    
	
Section 9.02. Corporate Governmental Authorization; No Contravention
    	
95
    
	
Section 9.03. Binding Effect
    	
95
    
	
 
    	
 
    
	
ARTICLE 10
    
	
MISCELLANEOUS
    
	
 
    	
 
    
	
Section 10.01. Notices
    	
96
    
	
Section 10.02. No Waivers
    	
96
    
	
Section 10.03. Expenses; Indemnification
    	
96
    
	
Section 10.04. Sharing of Set-Offs
    	
98
    
	
Section 10.05. Amendments and Waivers
    	
98
    
	
Section 10.06. Successors and Assigns
    	
99
    
	
Section 10.07. Collateral
    	
103
    
	
Section 10.08. Governing Law, Submission to Jurisdiction
    	
103
    
	
Section 10.09. Service of Process
    	
104
    
	
Section 10.10. Counterparts; Integration; Effectiveness
    	
104
    
	
Section 10.11. WAIVER OF JURY TRIAL
    	
104
    
	
Section 10.12. Confidentiality
    	
104
    
	
Section 10.13. Conversion of Currencies
    	
106
    
	
Section 10.14. European Economic and Monetary Union
    	
106
    

 

iii

 

	
Section 10.15. USA Patriot Act
    	
107
    
	
Section 10.16. Acknowledgement and Consent to Bail-in of EEA Financial Institutions
    	
107
    
	
Section 10.17. Right of Setoff
    	
108
    
	
Section 10.18. No Fiduciary Duty
    	
108
    
	
 
    	
 
    
	
ARTICLE 11
    
	
GUARANTY
    
	
 
    	
 
    
	
Section 11.01. The Guaranty
    	
108
    
	
Section 11.02. Guaranty Unconditional
    	
109
    
	
Section 11.03. Discharge Only upon Payment in Full; Reinstatement in Certain   Circumstances
    	
110
    
	
Section 11.04. Waiver by the Company
    	
110
    
	
Section 11.05. Subrogation
    	
110
    
	
Section 11.06. Stay of Acceleration
    	
110
    
	
Section 11.07. Limitation of Liability
    	
110
    

 

Commitment Schedule

Pricing Schedule

Schedule 2.19 – Issuing Lenders

Schedule 4.05 – Litigation

 

	
EXHIBIT A
    	
Note
    
	
EXHIBIT B
    	
Competitive Bid Quote   Request
    
	
EXHIBIT C
    	
Invitation for   Competitive Bid Quotes
    
	
EXHIBIT D
    	
Competitive Bid Quote
    
	
EXHIBIT E-1
    	
Opinion of Counsel for   the Obligors (New York)
    
	
EXHIBIT E-2
    	
Opinion of Counsel for   Estée Lauder NV
    
	
EXHIBIT F
    	
Assignment and   Assumption Agreement
    
	
EXHIBIT G
    	
[Reserved]
    
	
EXHIBIT H
    	
Election to Participate
    
	
EXHIBIT I
    	
Election to Terminate
    

 

iv

 

CREDIT AGREEMENT dated as of October 26, 2018 among THE ESTÉE LAUDER COMPANIES INC., the ELIGIBLE SUBSIDIARIES referred to herein, the LENDERS listed on the signature pages hereof, and JPMORGAN CHASE BANK, N.A., as Administrative Agent.

 

The parties hereto agree as follows:

 

ARTICLE 1
 DEFINITIONS

 

Section 1.01.  Definitions.  The following terms, as used herein, have the following meanings:

 

“Absolute Rate Auction” means a solicitation of Competitive Bid Quotes setting forth Competitive Bid Absolute Rates pursuant to Section 2.03.

 

“Administrative Agent” means JPMorgan Chase Bank, N.A. in its capacity as administrative agent for the Lenders hereunder, and its successors in such capacity.

 

“Administrative Questionnaire” means, with respect to each Lender, an administrative questionnaire in the form prepared by the Administrative Agent and submitted to the Administrative Agent (with a copy to the Company) duly completed by such Lender.

 

“Affiliate” means (i) any Person that directly, or indirectly through one or more intermediaries, controls the Company (a “Controlling Person”) or (ii) any Person (other than the Company or a Subsidiary) which is controlled by or is under common control with a Controlling Person.  As used herein, the term “control” means possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Affiliate Transaction” has the meaning set forth in Section 5.11.

 

“Agreement” means this Credit Agreement.

 

“Alternative Currencies” means Sterling, Euros, Yen and Swiss Francs.

 

“Alternative Currency Sublimit” means a Dollar Amount equal to $500,000,000.

 

“Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Company or any of its Subsidiaries from time to time concerning or relating to bribery or corruption.

 

 

“Applicable Agent” means, (a) with respect to a Loan or Borrowing denominated in Dollars, the Administrative Agent, or (b) with respect to a Loan or Borrowing denominated in Australian Dollars, Canadian Dollars, HK Dollars or any particular Alternative Currency, the Administrative Agent (including its affiliates or branches) or such other Person as may be agreed upon by the Company and the Administrative Agent and designated in a notice delivered to the Lenders.

 

“Applicable Lending Office” means, with respect to any Lender, (i) in the case of its Base Rate Loans, its Domestic Lending Office, (ii) in the case of its Canadian Prime Rate Loans or CDOR Rate Loans, its Canadian Lending Office, (iii) in the case of its Australian Bill Rate Loans, HIBOR Rate Loans and Euro-Currency Loans, its Euro-Currency Lending Office, (iv) in the case of its Competitive Bid Loans, its Competitive Bid Lending Office or (v) in any case, such other office as a Lender may from time to time notify the Company and the Administrative Agent for Loans of the particular type, which office may include any Affiliate of such Lender or any domestic or foreign branch of such Lender or such Affiliate.

 

“Approved Electronic Platform” has the meaning set forth in Section 7.11.

 

“Approved Fund” means any Fund that is administered or managed by (i) a Lender, (ii) an affiliate of a Lender or (iii) an entity or an affiliate of an entity that administers or manages a Lender.

 

“Assignee” has the meaning set forth in Section 10.06(c).

 

“Australian Bill Rate” shall mean, with respect to each Interest Period for an Australian Bill Rate Loan, the rate per annum equal to the average bid rate (the “BBR Screen Rate”) displayed at or about 10:30 a.m. (Sydney Time) on the first day of such Interest Period on the Reuters screen BBSY page for a term equivalent to such Interest Period (expressed as a percentage yield per annum to maturity being the arithmetic average, rounded up to the nearest four decimal places); or to the extent the BBR Screen Rate is not available at such time for any reason, then the applicable rate will be determined by the Administrative Agent to be the average of the buying rates quoted by three Reference Banks at or about 10:30 a.m. (Sydney Time) on the date of determination for bills of exchange with a tenor approximating the length of such Interest Period; provided that if any of the above rates shall be less than 0%, such rate shall be deemed to be 0% for purposes of this Agreement.

 

“Australian Bill Rate Margin” has the meaning set forth in the Pricing Schedule.

 

2

 

“Australian Bill Rate Loan” means a Committed Loan which bears interest at the Australian Bill Rate pursuant to the applicable Notice of Committed Borrowing or Notice of Interest Rate Election.

 

“Australian Dollars” and “AUD” each means the lawful currency of Australia.

 

“Available Commitment” means, with respect to any Lender at any time, an amount equal to such Lender’s Commitment at such time minus such Lender’s Outstanding Committed Amount at such time.

 

“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

 

“Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

 

“Bankruptcy Event” means, with respect to any Person, such Person becomes the subject of a voluntary or involuntary bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, custodian, assignee for the benefit of creditors or similar Person charged with the reorganization or liquidation of its business appointed for it, or, in the good faith determination of the Administrative Agent, has taken any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any such proceeding or appointment, provided that a Bankruptcy Event shall not result solely by virtue of any ownership interest, or the acquisition of any ownership interest, in such Person by a Governmental Authority or instrumentality thereof, unless such ownership interest results in or provides such Person with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permits such Person (or such Governmental Authority or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made by such Person.

 

“Base Rate” means, for any day, a rate per annum equal to the greatest of (i) the Prime Rate in effect on such day, (ii) the NYFRB Rate in effect on such day plus 1⁄2 of 1% and (iii) the London Interbank Offered Rate for a one month Interest Period on such day (or if such day is not a Euro-Dollar Business Day, the immediately preceding Euro-Dollar Business Day) plus 1%; provided that, for the purpose of this definition, the London Interbank Offered Rate shall be based on the LIBO Screen Rate (or if the LIBO Screen Rate is not available for such one month Interest Period, the Interpolated Rate) at approximately 11:00 a.m. London time on such day.  Any change in the Base Rate due to a change in the Prime

 

3

 

Rate, the NYFRB Rate or the London Interbank Offered Rate shall be effective from and including the effective date of such change in the Prime Rate, the NYFRB Rate or the London Interbank Offered Rate, respectively.  If the Base Rate is being used as an alternate rate of interest pursuant to Section 8.01 hereof, then the Base Rate shall be the greater of clauses (i) and (ii) above and shall be determined without reference to clause (iii) above.  For the avoidance of doubt, if the Base Rate as so determined would be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Base Rate Margin” has the meaning set forth in the Pricing Schedule.

 

“Base Rate Loan” means (i) a Committed Dollar Loan which bears interest at the Base Rate pursuant to the applicable Notice of Committed Borrowing or Notice of Interest Rate Election, (ii) a Committed Loan which bears interest at the Base Rate pursuant to the provisions of Section 8.01 or (iii) an overdue amount which was a Base Rate Loan immediately before it became overdue.

 

“Beneficial Ownership Certification” means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.

 

“Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.

 

“Benefit Arrangement” means at any time an employee benefit plan within the meaning of Section 3(3) of ERISA which is not a Plan or a Multiemployer Plan and which is maintained or otherwise contributed to by any member of the ERISA Group.

 

“Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in and subject to Section 4975 of the Internal Revenue Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Internal Revenue Code) the assets of any such “employee benefit plan” or “plan”.

 

“Borrower” means the Company or any Eligible Subsidiary, as the context may require, and their respective successors, and “Borrowers” means all of the foregoing.  When used in relation to any Loan or Letter of Credit, references to “the Borrower” are to the particular Borrower to which such Loan is or is to be made or at whose request such Letter of Credit is or is to be issued.

 

“Borrowing” has the meaning set forth in Section 1.03.

 

“Canadian Dollars” or “CAD$” refers to the lawful money of Canada.

 

“Canadian Lending Office” means as to each Lender, its office, branch or affiliate located at its address set forth in its Administrative Questionnaire (or identified in its Administrative Questionnaire as its Canadian Lending Office) or

 

4

 

such other office, branch or affiliate of such Lender as it may hereafter designate as its Canadian Lending Office by notice to the Company and the Administrative Agent; provided that any Lender may from time to time by notice to the Company and the Administrative Agent designate separate Canadian Lending Offices for its Loans in Canadian Dollars, in which case all references herein to the Canadian Lending Office of such Lender shall be deemed to refer to any or all of such offices, as the context may require.

 

“Canadian Prime Rate” means, on any day, the rate determined by the Administrative Agent to be the higher of (i) the rate equal to the PRIMCAN Index rate that appears on the Bloomberg screen at 10:15 a.m. Toronto time on such day (or, in the event that the PRIMCAN Index is not published by Bloomberg, any other information services that publishes such index from time to time, as selected by the Administrative Agent in its reasonable discretion) and (ii) the average rate for 30 day Canadian Dollar bankers’ acceptances that appears on the Reuters Screen CDOR Page (or, in the event such rate does not appear on such page or screen, on any successor or substitute page or screen that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time, as selected by the Administrative Agent in its reasonable discretion) at 10:15 a.m. Toronto time on such day, plus 1.00% per annum; provided that if any of the above rates shall be less than 0%, such rate shall be deemed to be 0% for purposes of this Agreement.  Any change in the Canadian Prime Rate due to a change in the PRIMCAN Index or the CDOR Rate shall be effective from and including the effective date of such change in the PRIMCAN Index or CDOR Rate, respectively.

 

“Canadian Prime Rate Loans” means a Committed Loan which bears interest at the Canadian Prime Rate pursuant to the applicable Notice of Committed Borrowing or Notice of Interest Rate Election.

 

“Canadian Prime Rate Margin” has the meaning set forth in the Pricing Schedule.

 

“Capitalized Lease Obligations” of any Person means obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required under GAAP to be classified and accounted for as capital leases or financing leases on a balance sheet of such Person.  The amount of such obligations will be the capitalized amount thereof determined in accordance with GAAP.

 

“Cash Collateralize” means to pledge and deposit with or deliver to the Administrative Agent, in the case of Letter of Credit Liabilities, for the benefit of each Issuing Lender and each Lender, as collateral for the Letter of Credit Liabilities, cash or deposit account balances, and “Cash Collateral” shall refer to such cash or deposit account balances.

 

5

 

“CDOR” when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the CDOR Rate.

 

“CDOR Rate” means for the relevant interest period, the Canadian deposit offered rate which, in turn means on any day the annual rate of interest determined with reference to the arithmetic average of the discount rate quotations of all institutions listed in respect of the relevant interest period for CAD Dollar-denominated bankers’ acceptances displayed and identified as such on the “Reuters Screen CDOR Page” as defined in the International Swap Dealer Association, Inc. definitions, as modified and amended from time to time, as of 10:00 a.m. Toronto local time on such day and, if such day is not a business day, then on the immediately preceding business day (as adjusted by Administration Agent after 10:00 a.m. Toronto local time to reflect any error in the posted rate of interest or in the posted average annual rate of interest); provided that if such rates are not available on the Reuters Screen CDOR Page on any particular day, then the Canadian deposit offered rate component of such rate on that day shall be calculated as the cost of funds quoted by Administration Agent to raise CAD Dollars for the applicable interest period as of 10:00 a.m. Toronto local time on such day for commercial loans or other extensions of credit to businesses of comparable credit risk; or if such day is not a business day, then as quoted by Administration Agent on the immediately preceding business day.  If the CDOR Rate shall be less than 0%, the CDOR Rate shall be deemed to be 0% for purposes of this Agreement.

 

“CDOR Rate Loans” means a Committed Loan which bears interest at the CDOR Rate pursuant to the applicable Notice of Committed Borrowing or Notice of Interest Rate Election.

 

“CDOR Rate Margin” has the meaning set forth in the Pricing Schedule.

 

“Change of Control” means (i) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof) other than the Lauder Family Members, of equity interests representing more than 50% of the aggregate ordinary voting power represented by the issued and outstanding equity interests of the Company; (ii) occupation of a majority of the seats (other than vacant seats) on the board of directors of the Company by persons who were neither (x) nominated by the board of directors of the Company nor (y) appointed by directors so nominated; or (iii) the acquisition of direct or indirect control of the Company by any person or group other than the Lauder Family Members.

 

“Change in Law” means the occurrence, after the date of this Agreement (or with respect to any Lender, if later, the date on which such Lender becomes a Lender), of any of the following: (a) the adoption or taking effect of any law, rule,

 

6

 

regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation or application thereof by any Governmental Authority, or (c) the making or issuance of any request, rules, guideline, requirement or directive (whether or not having the force of law) by any Governmental Authority; provided, however, that notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements and directives thereunder, issued in connection therewith or in implementation thereof, and (ii) all requests, rules, guidelines, requirements and directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law” regardless of the date enacted, adopted, issued or implemented provided that a Lender shall only be entitled to seek payment pursuant to Section 8.03 attributable to any such deemed Change in Law if such Lender is generally seeking reimbursement for such costs from similarly situated borrowers under other credit agreements.

 

“Closing Date” means October 26, 2018 or such later date on which the Administrative Agent shall have received the documents specified in or pursuant to Section 3.01.

 

“Commitment” means (i) with respect to each Lender, the amount of such Lender’s Commitment, as such amount is set forth opposite the name of such Lender on the Commitment Schedule, as such Commitment may be increased from time to time pursuant to Section 2.21, (ii) with respect to any Additional Lender, the amount of the Commitment assumed by it pursuant to Section 2.21, and (iii) with respect to any Assignee, the amount of the transferor Lender’s Commitment assigned to it pursuant to Section 10.06, in each case as such amount may be reduced from time to time pursuant to Section 2.09 and Section 2.21 or Section 10.06; provided that, if the context so requires, the term “Commitment” means the obligation of a Lender to extend credit up to such amount to the Borrowers hereunder.

 

“Committed Alternative Currency Loans” means Loans denominated in Alternative Currencies and made pursuant to Section 2.01.

 

“Committed Australian Dollar Loans” means Loans denominated in Australian Dollars and made pursuant to Section 2.01.

 

“Committed Canadian Dollar Loans” means Loans denominated in Canadian Dollars and made pursuant to Section 2.01.

 

“Committed HK Dollar Loans” means Loans denominated in HK Dollars and made pursuant to Section 2.01.

 

7

 

“Committed Dollar Loans” means Loans denominated in dollars and made pursuant to Section 2.01.

 

“Committed Loan” means a Committed Dollar Loan, Committed Australian Dollar Loan, Committed Canadian Dollar Loan, Committed HK Dollar Loan or a Committed Alternative Currency Loan; provided that, if any such loan or loans (or portions thereof) are combined or subdivided pursuant to a Notice of Interest Rate Election, the term “Committed Loan” shall refer to the combined principal Dollar Amount resulting from such combination or to each of the separate principal Dollar Amounts resulting from such subdivision, as the case may be.

 

“Company” means The Estée Lauder Companies Inc., a Delaware corporation, and its successors.

 

“Competitive Bid Absolute Rate” has the meaning set forth in Section 2.03(d)(ii)(D).

 

“Competitive Bid Absolute Rate Loan” means a loan to be made by a Lender pursuant to an Absolute Rate Auction.

 

“Competitive Bid Lending Office” means, as to each Lender, its Domestic Lending Office or such other office, branch or affiliate of such Lender as it may hereafter designate as its Competitive Bid Lending Office by notice to the Company and the Administrative Agent; provided that any Lender may from time to time by notice to the Company and the Administrative Agent designate separate Competitive Bid Lending Offices for its Competitive Bid LIBOR Loans, on the one hand, and its Competitive Bid Absolute Rate Loans, on the other hand, in which case all references herein to the Competitive Bid Lending Office of such Lender will be deemed to refer to either or both of such offices, as the context may require.

 

“Competitive Bid LIBOR Loan” means a loan to be made by a Lender pursuant to a LIBOR Auction (including such a loan bearing interest at the Base Rate pursuant to Section 8.01).

 

“Competitive Bid Loan” means a Competitive Bid LIBOR Loan or a Competitive Bid Absolute Rate Loan.

 

“Competitive Bid Margin” has the meaning set forth in Section 2.03(d)(ii)(C).

 

“Competitive Bid Quote” means an offer by a Lender to make a Competitive Bid Loan in accordance with Section 2.03.

 

8

 

“Consolidated Subsidiary” means at any date any Subsidiary or other entity the accounts of which would be consolidated with those of the Company in its consolidated financial statements if such statements were prepared as of such date.

 

“Consolidated Tangible Net Worth” means at any date the consolidated stockholders’ equity of the Company and its Consolidated Subsidiaries (excluding for this purpose any amount attributable to stock which is required to be redeemed, or is redeemable at the option of the holder, if certain events or conditions occur or exist or otherwise) less their consolidated Intangible Assets, all determined as of such date.  For purposes of this definition, “Intangible Assets” means the amount (to the extent reflected in determining such consolidated stockholders’ equity) of (i) all write-ups (other than write-ups resulting from foreign currency translations and write-ups of assets of a going concern business made within twelve months after the acquisition of such business) subsequent to June 30, 2018 in the book value of any asset owned by the Company or a Consolidated Subsidiary, (ii) all investments in unconsolidated Subsidiaries and all equity investments in Persons which are not Subsidiaries and (iii) all unamortized debt discount and expense, unamortized deferred charges, goodwill, patents, trademarks, service marks, trade names, anticipated future benefit of tax loss carry-forwards, copyrights, organization or developmental expenses and other intangible assets.

 

“Credit Contact” means such Person designated in the Administrative Questionnaire or other notice provided to the Administrative Agent by an Assignee in accordance with Section 10.06(c).

 

“Customary Permitted Liens” means:

 

(a)           carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, construction or other like Liens arising in the ordinary course of business;

 

(b)           permits, servitudes, licenses, easements, rights-of-way, restrictions and other similar encumbrances imposed by applicable law or incurred in the ordinary course of business or minor imperfections in title to real property that do not in the aggregate materially interfere with the ordinary conduct of the business of the Company and its Subsidiaries taken as a whole;

 

(c)           leases, licenses, subleases or sublicenses of assets (including, without limitation, with respect to real property and intellectual property rights) granted to others that do not in the aggregate materially interfere with the ordinary conduct of the business of the Company and its Subsidiaries taken as a whole;

 

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(d)           pledges or deposits made in the ordinary course of business or statutory Liens imposed in connection with worker’s compensation, unemployment insurance or other types of social security or pension benefits or Liens incurred or pledges or deposits made to secure the performance of bids, tenders, sales, contracts (other than for the repayment of borrowed money), statutory obligations, and surety, appeal, customs or performance bonds and similar obligations, or deposits as security for contested taxes or import or customs duties or for the payment of rent, in each case incurred in the ordinary course of business;

 

(e)           Liens arising from UCC financing statement filings (or similar filings) regarding or otherwise arising under leases entered into by the Company or any of its Subsidiaries;

 

(f)            any Lien arising out of claims under a judgment or award rendered or claim filed so long as such judgments, awards or claims do not constitute an Event of Default;

 

(g)           any Lien consisting of rights reserved to or vested in any Governmental Authority by any statutory provision;

 

(h)           Liens created in the ordinary course of business in favor of banks and other financial institutions over credit balances of any bank accounts held at such banks or financial institutions or over investment property held in a securities account, as the case may be, to facilitate the operation of cash pooling and/or interest set-off arrangements in respect of such bank accounts or securities accounts in the ordinary course of business; and

 

(i)            Liens securing Debt or other obligations of a Subsidiary owing to the Company.

 

“Debt” of any Person means at any date, without duplication, (i) all obligations of such Person for borrowed money, (ii) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (iii) all obligations of such Person to pay the deferred purchase price of property or services, except trade accounts payable arising in the ordinary course of business, (iv) all Capitalized Lease Obligations of such Person, (v) all non-contingent obligations (and, for purposes of the definitions of Material Debt and Material Financial Obligations, all contingent obligations) of such Person to reimburse any bank or other Person in respect of amounts paid under a letter of credit or similar instrument, (vi) all Debt secured by a Lien on any asset of such Person, whether or not such Debt is otherwise an obligation of such Person and (vii) all Debt of others Guaranteed by such Person.

 

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“Default” means any condition or event which constitutes an Event of Default or which with the giving of notice or lapse of time or both would, unless cured or waived, become an Event of Default.

 

“Defaulting Lender” means any Lender that (a) has failed, within two Domestic Business Days of the date required to be funded or paid, to (i) fund any portion of its Loans, (ii) fund any portion of its participations in Letters of Credit or (iii) pay over to the Administrative Agent or any Lending Party any other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such Lender notifies the Administrative Agent and the Company, in writing that such failure is the result of such Lender’s good faith determination that a condition precedent to funding (specifically identified and including the particular default, if any) has not been satisfied, (b) has notified the Company, any other Obligor, the Administrative Agent or any Lending Party in writing, or has made a public statement to the effect, that it does not intend or expect to comply with any of its funding obligations under this Agreement (unless such writing or public statement indicates that such position is based on such Lender’s good faith determination that a condition precedent (specifically identified and including the particular default, if any) to funding a loan under this Agreement cannot be satisfied) or generally under other agreements in which it commits to extend credit, (c) has failed, within three Domestic Business Days after request by any Obligor, the Administrative Agent or any Lending Party, acting in good faith, to provide a certification in writing from an authorized officer of such Lender that it will comply with its obligations (and is financially able to meet such obligations) to fund prospective Loans and 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 such Lending Party’s receipt of such certification in writing in form and substance satisfactory to it and the Administrative Agent (a copy of which such certification shall be promptly shared with the Company) or (d) has, or has a Parent that has, become the subject of (A) a Bankruptcy Event or (B) a Bail-In Action.

 

“Derivatives Obligations” of any Person means all obligations of such Person in respect of any rate swap transaction, basis swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or equity index option, bond option, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate swap transaction, currency option or any other similar transaction (including any option with respect to any of the foregoing transactions) or any combination of the foregoing transactions.

 

“Dollar Amount” means, at any time:

 

(i)            with respect to any Loan denominated in dollars, the principal amount thereof then outstanding;

 

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(ii)           with respect to any Australian Dollar Loan, Canadian Dollar Loan, HK Dollar Loan or other Committed Alternative Currency Loan, the equivalent in dollars of the principal amount thereof then outstanding in Australian Dollars, Canadian Dollars, HK Dollars or the relevant Alternative Currency, determined by the Administrative Agent using the Exchange Rate with respect to the relevant currency then in effect; and

 

(iii)          with respect to any Letter of Credit Liabilities, (A) if denominated in Dollars, the amount thereof and (B) if denominated in Australian Dollars, Canadian Dollars, HK Dollars or an Alternative Currency, determined by the Administrative Agent using the Exchange Rate with respect to the relevant currency then in effect.

 

“dollars”, “Dollars” and the sign “$” mean lawful currency of the United States.

 

“Domestic Business Day” means any day except a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to close.

 

“Domestic Lending Office” means, as to each Lender, its office located at its address set forth in its Administrative Questionnaire (or identified in its Administrative Questionnaire as its Domestic Lending Office) or such other office as such Lender may hereafter designate as its Domestic Lending Office by notice to the Company and the Administrative Agent.

 

“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

 

“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

“EEA Resolution Authority” means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“Election to Participate” means an Election to Participate substantially in the form of Exhibit H hereto.

 

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“Election to Terminate” means an Election to Terminate substantially in the form of Exhibit I hereto.

 

“Eligible Subsidiary” means Estée Lauder NV and any Wholly-Owned Consolidated Subsidiary, as to which an Election to Participate shall have been delivered to the Administrative Agent and as to which an Election to Terminate with respect to such Election to Participate shall not have been delivered to the Administrative Agent.  Each such Election to Participate and Election to Terminate shall be duly executed on behalf of such Wholly-Owned Consolidated Subsidiary and the Company in such number of copies as the Administrative Agent may request.  If at any time a Subsidiary theretofore designated as an Eligible Subsidiary no longer qualifies as a Wholly-Owned Consolidated Subsidiary, the Company shall cause to be delivered to the Administrative Agent an Election to Terminate terminating the status of such Subsidiary as an Eligible Subsidiary.  The delivery of an Election to Terminate shall not affect any obligation of an Eligible Subsidiary theretofore incurred or the guaranty thereof by the Company.  The Administrative Agent shall promptly give notice to the Lenders of the receipt of any Election to Participate or Election to Terminate.

 

“Environmental Laws” means any and all federal, state, local and foreign statutes, laws, judicial decisions, regulations, ordinances, rules, judgments, orders, decrees, plans, injunctions, permits, concessions, grants, franchises, licenses, legally binding agreements and other governmental restrictions relating to the environment, or to emissions, discharges or releases of pollutants, contaminants or Hazardous Substances into the environment including, without limitation, ambient air, surface water, ground water, or land, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of pollutants, contaminants or Hazardous Substances or the clean-up or other remediation thereof.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, or any successor statute.

 

“ERISA Group” means the Company, any Subsidiary and all members of a controlled group of corporations and all trades or businesses (whether or not incorporated) under common control which, together with the Company or any Subsidiary, are treated as a single employer under Section 414 of the Internal Revenue Code.

 

“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.

 

“Euro” means the single currency of the Participating Member States of the European Union.

 

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“Euro-Currency Business Day” means a Euro-Dollar Business Day, unless such term is used in connection with an Australian Dollar Borrowing, Canadian Dollar Borrowing, HK Dollar Borrowing, Alternative Currency Borrowing or Committed Alternative Currency Loan, in which case such day shall not be a Euro-Currency Business Day unless commercial banks are open for international business (including dealings in deposits in Australian Dollars, Canadian Dollars, HK Dollars or such Alternative Currency, as applicable) in both London and the place designated by the Applicable Agent with respect to Australian Dollars, Canadian Dollars, HK Dollars or such Alternative Currency for funds to be paid or made available in Australian Dollars, Canadian Dollars, HK Dollars or such Alternative Currency, as applicable.

 

“Euro-Currency Lending Office” means, as to each Lender, its office, branch or affiliate located at its address set forth in its Administrative Questionnaire (or identified in its Administrative Questionnaire as its Euro-Currency Lending Office) or such other office, branch or affiliate of such Lender as it may hereafter designate as its Euro-Currency Lending Office by notice to the Company and the Administrative Agent; provided that any Lender may from time to time by notice to the Company and the Administrative Agent designate separate Euro-Currency Lending Offices for its Loans in different currencies, in which case all references herein to the Euro-Currency Lending Office of such Lender shall be deemed to refer to any or all of such offices, as the context may require.

 

“Euro-Currency Loan” means a Committed Loan that is either a Euro-Dollar Loan or a Committed Alternative Currency Loan.

 

“Euro-Currency Margin” has the meaning set forth in the Pricing Schedule.

 

“Euro-Currency Rate” means a rate of interest determined pursuant to Section 2.07(a) on the basis of a London Interbank Offered Rate.

 

“Euro-Currency Reserve Percentage” means, for any day, that percentage (expressed as a decimal) which is in effect on such day, as prescribed by the Federal Reserve Board (or any successor) or any other banking authority to which any Lender is subject, as applicable, for determining the maximum reserve requirement for a member bank of the Federal Reserve System in New York City with deposits exceeding five billion dollars in respect of “Euro-Currency liabilities” (or in respect of any other category of liabilities which includes deposits by reference to which the interest rate on Euro-Dollar Loans is determined or any category of extensions of credit or other assets which includes loans by a non-United States office of any Lender to the United States residents).

 

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“Euro-Dollar Business Day” means any Domestic Business Day on which commercial banks are open for international business (including dealings in dollar deposits) in London.

 

“Euro-Dollar Loan” means (i) a Committed Dollar Loan which bears interest at a Euro-Currency Rate pursuant to the applicable Notice of Committed Borrowing or Notice of Interest Rate Election or (ii) an overdue amount which was a Euro-Dollar Loan immediately before it became overdue.

 

“Event of Default” has the meaning set forth in Section 6.01.

 

“Exchange Rate” means, on any day, with respect to Australian Dollars, Canadian Dollars, HK Dollars or any Alternative Currency, the rate at which such Alternative Currency may be exchanged into dollars (and, for purposes of any provision of this Agreement requiring or permitting the conversion of Committed Alternative Currency Loans to Loans denominated in dollars, the rate at which dollars may be exchanged into the applicable Alternative Currency), as set forth at or about 9:00 a.m., New York City time, or at or about 11:00 a.m., London time, on such date on the relevant Bloomberg page displaying the rate of exchange for that currency into dollars.  In the event that such rate does not appear on any Bloomberg page, the Exchange Rate shall be determined by reference to such other publicly available service for displaying exchange rates as may be agreed upon by the Administrative Agent, the Applicable Agent with respect to such currency and the Company, or, in the absence of such agreement, such Exchange Rate shall instead be the arithmetic average of the spot buying and selling rates of exchange of such Applicable Agent in the market where its foreign currency exchange operations in respect of such currency are then being conducted, on or about 11:00 a.m., New York City time, or on or about 11:00 a.m., London time, on such date for the purchase of dollars (or such foreign currency, as the case may be) for delivery two Domestic Business Days later; provided that if at the time of any such determination, for any reason, no such spot rate is being quoted, such Applicable Agent, after consultation with the Company and the Administrative Agent, may use any reasonable method it deems appropriate to determine such rate, and such determination shall be presumed correct absent manifest error.

 

“Existing Credit Agreement” means the Credit Agreement dated as of October 3, 2016 , among the Company, as borrower, the subsidiary borrowers from time to time party thereto, the lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent.

 

“Extending Lender” has the meaning set forth in Section 2.22(b).

 

“Facility Fee” has the meaning set forth in Section 2.08.

 

“Facility Fee Rate” has the meaning set forth in the Pricing Schedule.

 

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“FATCA” means Sections 1471 through 1474 of the Internal Revenue Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof (or related legislation or official administrative rules or practices) and any agreements entered into pursuant to Section 1471(b)(1) of the Internal Revenue Code.

 

“Federal Funds Rate” means, for any day, the rate calculated by the NYFRB based on such day’s federal funds transactions by depositary institutions (as determined in such manner as the NYFRB shall set forth on its public website from time to time) and published on the next succeeding Euro-Dollar Business Day by the NYFRB as the effective federal funds rate; provided that if the Federal Funds Rate as so determined would be less than 0%, such rate shall be deemed to be 0% for purposes of this Agreement.

 

“Federal Reserve Board” means the Board of Governors of the Federal Reserve System of the United States of America.

 

“Fixed Rate Loans” means Euro-Currency Loans or Competitive Bid Loans (excluding Competitive Bid LIBOR Loans bearing interest at the Base Rate pursuant to Section 8.01) or any combination of the foregoing.

 

“Fund” means any Person (other than a natural Person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business.

 

“GAAP” means generally accepted accounting principles as in effect from time to time in the United States.

 

“Governmental Authority” means any national, state, county, city, town, village, municipal or other government department, commission, board, bureau, agency, authority or instrumentality of a country or any political subdivision thereof, exercising executive, legislative, judicial, regulatory or administrative powers of functions of or pertaining to government.

 

“Granting Lender” has the meaning specified in Section 10.06(f).

 

“Group of Loans” means at any time a group of Loans consisting of (i) all Committed Loans to the same Borrower which are Base Rate Loans at such time, (ii) all Committed Loans to the same Borrower which are Canadian Prime Rate Loans at such time, (iii) all Euro-Currency Loans to the same Borrower which are in the same currency and have the same Interest Period at such time, (iv) all Australian Bill Rate Loans to the same Borrower which have the same Interest Period at such time, (v) all CDOR Rate Loans to the same Borrower which have the same Interest Period at such time and (vi) all HIBOR Rate Loans to the same Borrower which have the same Interest Period at such time; provided

 

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that, if a Committed Loan of any particular Lender is converted to or made as a Base Rate Loan pursuant to Article 8, such Loan shall be included in the same Group or Groups of Loans from time to time as it would have been if it had not been so converted or made.

 

“Guarantee” by any Person means any obligation, contingent or otherwise, of such Person directly or indirectly guaranteeing any Debt of any other Person and, without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Debt (whether arising by virtue of partnership arrangements, by agreement to keep-well, to purchase assets, goods, securities or services, to take-or-pay, or to maintain financial statement conditions or otherwise) or (ii) entered into for the purpose of assuring in any other manner the holder of such Debt of the payment thereof or to protect such holder against loss in respect thereof (in whole or in part); provided that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business.  The term “Guarantee” used as a verb has a corresponding meaning.

 

“Guaranty” means the obligations of the Company set forth in Article 11.

 

“Hazardous Substances” means any substance, material, or waste defined as “toxic”, “hazardous”, “pollutant”, “contaminant”, or words of similar meaning and effect, including petroleum, its derivatives, by-products and other hydrocarbons, or any substance having any constituent elements displaying any of the foregoing characteristics.

 

“HIBOR Rate” means, for any Interest Period for a HIBOR Rate Loan, (a) the applicable rate displayed at or about 11:00 a.m. on the first day of each such Interest Period on page HKABHIBOR of the Thomson Reuters Services (or such other successor or substitute page or service as determined by the Administrative Agent for the purpose of displaying the averaged Hong Kong inter-bank Hong Kong Dollar deposits offered rates of leading banks) for the same duration as the relevant Interest Period (or, if the periods are not the same, such period, if any, as the Administrative Agent determines to be substantially the same); or (b) (if no such rate is available for HK Dollars or for the Interest Period for that HIBOR Rate Loan) the average of the buying rates per annum (rounded to the nearest 1/100 of 1%) as supplied to the Administrative Agent at its request by three Reference Banks to leading banks in the Hong Kong interbank market, at or about 11:00 a.m. (Hong Kong time) the first day of such Interest Period for the offering of deposits in HK Dollars for a period comparable to such Interest Period; provided that if any of the above rates as so determined would be less than 0%, such rate shall be deemed to be 0% for purposes of this Agreement.

 

“HIBOR Rate Loans” means a Committed Loan which bears interest at the HIBOR Rate pursuant to the applicable Notice of Committed Borrowing.

 

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“HIBOR Rate Margin” has the meaning set forth in the Pricing Schedule.

 

“HK Dollars” means the lawful currency of the Hong Kong Special Administrative Region of the People’s Republic of China.

 

“Impacted Interest Period” has the meaning set forth in Section 2.07(g).

 

“Increased Cost” has the meaning set forth in Section 10.06(f).

 

“Incremental Commitments” has the meaning set forth in Section 2.21.

 

“Incremental Commitment Notice” has the meaning set forth in Section 2.21.

 

“Indemnitee” has the meaning set forth in Section 10.03(b).

 

“Ineligible Lender” has the meaning set forth in Section 8.02(b).

 

“Interest Period” means:

 

(1)           with respect to each London Interbank Offered Rate Loan, Australian Bill Rate Loan, CDOR Loan, HIBOR Loan or any Euro-Currency Loan, the period commencing on the date of borrowing specified in the applicable Notice of Borrowing or on the date specified in the applicable Notice of Interest Rate Election and ending one, two, three or six months thereafter, as a Borrower may elect in the applicable notice; provided that:

 

(a)           any Interest Period (except an Interest Period determined pursuant to clause (c) below) which would otherwise end on a day which is not a Euro-Currency Business Day shall be extended to the next succeeding Euro-Currency Business Day unless such Euro-Currency Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Euro-Currency Business Day;

 

(b)           any Interest Period which begins on the last Euro-Currency Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall, subject to clause (c) below, end on the last Euro-Currency Business Day of a calendar month; and

 

(c)           any Interest Period which would otherwise end after the Termination Date shall end on the Termination Date (or, if the Termination Date is not a Euro-Currency Business Day, on the next preceding Euro-Currency Business Day);

 

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(2)           with respect to each Competitive Bid LIBOR Loan, the period commencing on the date of borrowing specified in the applicable Notice of Borrowing and ending such whole number of months thereafter as a Borrower may elect in accordance with Section 2.03; provided that:

 

(a)           any Interest Period (except an Interest Period determined pursuant to clause (c) below) which would otherwise end on a day which is not a Euro-Dollar Business Day shall be extended to the next succeeding Euro-Dollar Business Day unless such Euro-Dollar Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Euro-Dollar Business Day;

 

(b)           any Interest Period which begins on the last Euro-Dollar Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall, subject to clause (c) below, end on the last Euro-Dollar Business Day of a calendar month; and

 

(c)           any Interest Period which would otherwise end after the Termination Date shall end on the Termination Date (or, if the Termination Date is not a Euro-Dollar Business Day, the next preceding Euro-Dollar Business Day); and

 

(3)           with respect to each Competitive Bid Absolute Rate Loan, the period commencing on the date of borrowing specified in the applicable Notice of Borrowing and ending such number of days thereafter (but not less than 7 days) as a Borrower may elect in accordance with Section 2.03; provided that:

 

(a)           any Interest Period (except an Interest Period determined pursuant to clause (b) below) which would otherwise end on a day which is not a Euro-Dollar Business Day shall be extended to the next succeeding Euro-Dollar Business Day; and

 

(b)           any Interest Period which would otherwise end after the Termination Date shall end on the Termination Date (or, if the Termination Date is not a Euro-Dollar Business Day, on the next preceding Euro-Dollar Business Day).

 

“Internal Revenue Code” means the Internal Revenue Code of 1986, as amended.

 

“Interpolated Rate” means at any time, for any Interest Period, the rate per annum (rounded upward to four decimal places) determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the London Interbank Offered Rate for the longest period

 

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(for which the London Interbank Offered Rate is available) that is shorter than the Impacted Interest Period and (b) the London Interbank Office Rate for the shortest period (for which the London Interbank Offered Rate is available) that exceeds the Impacted Interest Period, in each case, at such time.

 

“Issuing Lender” means the Persons listed on Schedule 2.19 and any other Lender that may agree to issue Letters of Credit hereunder as provided in Section 2.19(h), in each case in its capacity as an issuer of a Letter of Credit hereunder.  An Issuing Lender may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of such Issuing Lender, in which case the term “Issuing Lender” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate.  When used with respect to a particular Letter of Credit, “Issuing Lender” means the Issuing Lender that issued or is issuing such Letter of Credit.

 

“Joint Arrangers” means JPMorgan Chase Bank, N.A, BNP Paribas Securities Corp, Citibank, N.A., Merrill Lynch, Pierce, Fenner & Smith Incorporated (or any other registered broker-dealer wholly-owned by Bank of America Corporation to which all or substantially all of Bank of America Corporation’s or any of its subsidiaries’ investment banking, commercial lending services or related businesses may be transferred following the date of this Agreement) and MUFG Bank, Ltd.

 

“Joint Bookrunners” means JPMorgan Chase Bank, N.A., BNP Paribas Securities Corp., Citibank, N.A., Merrill Lynch, Pierce, Fenner & Smith Incorporated (or any other registered broker-dealer wholly-owned by Bank of America Corporation to which all or substantially all of Bank of America Corporation’s or any of its subsidiaries’ investment banking, commercial lending services or related businesses may be transferred following the date of this Agreement) and MUFG Bank, Ltd.

 

“Lauder Family Member” means (i) the estate of Mrs. Estée Lauder, (ii) each descendant of Mrs. Estée Lauder (each such Person, a “Lauder Descendant”) and their respective estates, guardians, conservators or committees, (iii) each Family Controlled Entity, (iv) each Current Spouse of Lauder Descendants and (v) the trustees, in their respective capacities as such, of each Family Controlled Trust.  As used herein, “Family Controlled Entity” means (w) any not-for-profit corporation if at least a majority of its board of directors is composed of Lauder Descendants and/or Current Spouses of Lauder Descendants, (x) any other corporation if (i) both (aa) Lauder Descendants and/or Current Spouses of Lauder Descendants (or in the case of subclause (i)(aa)(xx), their respective estates, guardians, conservators or committees) (xx) hold in the aggregate, directly or indirectly through one or more wholly owned Persons, securities having ordinary voting power to elect a majority of the board of directors of such corporation or (yy) constitute a majority of the board of directors of such corporation and (bb) at least a majority of the value of the outstanding

 

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equity of such corporation is owned by Lauder Family Members or (ii) at least 80% of the value of the outstanding equity of such corporation is owned by Lauder Family Members, (y) any partnership if at least a majority of the value of its partnership interests (both general and limited) are owned by Lauder Family Members, and (z) any limited liability or similar company if (i) both (aa) Lauder Descendants and/or Current Spouses of Lauder Descendants (or, in the case of subclause (i)(aa)(xx), their respective estates, guardians, conservators or committees) (xx) hold in the aggregate, directly or indirectly through one or more wholly owned Persons, securities or other equity interests having ordinary voting power to elect or appoint at least a majority of the managing members of such company or (yy) constitute a majority of the managing members of such company and (bb) a majority of the value of such company is owned by Lauder Family Members or (ii) at least 80% of the value of such company is owned by Lauder Family Members. As used herein, “Family Controlled Trust” shall mean any trust the primary beneficiaries of which are Lauder Descendants, Spouses of Lauder Descendants and/or charitable organizations (collectively, “Lauder Beneficiaries”); provided that, if the trust is a wholly charitable trust, at least a majority of the trustees of such trust consist of Lauder Descendants and/or Current Spouses of Lauder Descendants.  For purposes of the definition of “Family Controlled Trust”, the primary beneficiaries of a trust will be deemed to be Lauder Beneficiaries if, under the maximum exercise of discretion by the trustee in favor of persons who are neither Lauder Beneficiaries nor Family Controlled Trusts, the value of the interests of such persons in such trust, computed actuarially, is less than 50%.  In determining the primary beneficiaries of a trust for purposes of the definition of “Family Controlled Trust”, (A) the factors and methods prescribed in section 7520 of the Internal Revenue Code of 1986, as amended, for use in ascertaining the value of certain interests shall be used in determining a beneficiary’s actuarial interest in a trust, (B) the actuarial value of the interest in a trust of any person in whose favor a testamentary power of appointment may be exercised shall be deemed to be zero and (C) in the case of a trust created by one or more of Mrs. Estée Lauder, Joseph H. Lauder or Lauder Descendants, the actuarial value of the interest in such trust of any person who may receive trust property only at the termination of the trust and then only in the event that, at the termination of the trust, there are no living issue of one or more of Mrs. Estée Lauder, Joseph H. Lauder or Lauder Descendants shall be deemed to be zero.  For purposes hereof, (1) “Spouses of Lauder Descendants” means those individuals who at any time were married to any Lauder Descendant whether or not such marriage is subsequently dissolved by death, divorce, or by any other means, (2) “Current Spouse of Lauder Descendants” means an individual who is married to a Lauder Descendant, but only so long as such marriage has not been dissolved by death, divorce or by any other means, (3) the relationship of any person that is derived by or through legal adoption shall be considered a natural relationship, (4) a minor who is a descendant of Mrs. Estée Lauder and for whom equity interests are held pursuant to a Uniform Gifts to Minors Act or similar law shall be considered the holder of such equity interests 

 

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and the custodian who is the record holder of such equity interests shall not be considered the holder thereof, (5) an incompetent stockholder of any equity interests whose equity interests are owned or held by a guardian or conservator shall be considered the holder of such equity interest and such guardian or conservator who is the holder of such equity interests shall not be considered the holder thereof, (6) any equity interests pledged by a holder thereof as security for any obligation shall be deemed to be held by such holder unless and until the pledgee of such equity interests has declared a default with respect to such obligation and has the right (whether or not being presently exercised) to vote or direct the voting of such equity interests and (7) except as provided in clauses (4), (5) and (6) above, the holder of any equity interests shall mean the record holder of such equity interests; provided, however, that if such record holder of such equity interests is a nominee, the holder of such equity interests shall be the first person in the chain of ownership of such equity interests who is not holder thereof solely as a nominee.

 

“Lender” means (i) each bank or other institution listed on the signature pages hereof, (ii) each financial institution which becomes a Lender pursuant to Section 2.21, (iii) each Assignee which becomes a Lender pursuant to Section 10.06(c) and (iv) their respective successors.

 

“Lender Parent” means, with respect to any Lender, any Person as to which such Lender is, directly or indirectly, a subsidiary.

 

“Lending Parties” mean the Lenders and the Issuing Lenders.

 

“Letter of Credit” means a letter of credit to be issued hereunder by any Issuing Lender in accordance with Section 2.19.

 

“Letter of Credit Borrowing” means an extension of credit resulting from a drawing under any Letter of Credit which has not been reimbursed on the date when made or refinanced as a Borrowing.

 

“Letter of Credit Commitment” means, with respect to each Issuing Lender, the commitment of such Issuing Lender to issue Letters of Credit pursuant to Section 2.19.  The Dollar Amount of each initial Issuing Lender’s Letter of Credit Commitment is set forth on Schedule 2.19.

 

“Letter of Credit Credit Extension” means, with respect to any Letter of Credit, the issuance thereof, the extension of the expiry date thereof or the increase of the amount thereof.

 

“Letter of Credit Disbursement” means a payment made by the Issuing Lender pursuant to a Letter of Credit.

 

“Letter of Credit Fee” has the meaning set forth in Section 2.08.

 

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“Letter of Credit Fee Rate” has the meaning set forth in the Pricing Schedule.

 

“Letter of Credit Liabilities” means, for any Lender and at any time, such Lender’s ratable participation in the sum of (x) the amounts then owing by each Borrower in respect of amounts drawn under Letters of Credit and (y) the aggregate amount then available for drawing under all Letters of Credit.

 

“Letter of Credit Sublimit” means a Dollar Amount equal to $100,000,000.

 

“LIBO Screen Rate” means, for any day and time, with respect to a Euro-Currency Borrowing for any Interest Period or any determination of the Base Rate pursuant to clause (iii) of the definition thereof, the London interbank offered rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate) for the applicable currency for a period equal in length to such Interest Period as displayed on such day and time on pages LIBOR01 or LIBOR02 of the Reuters screen that displays such rate (or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion); provided that, if the LIBO Screen Rate as so determined would be less than 0%, such rate shall be deemed to be 0% for purposes of this Agreement.

 

“LIBOR Auction” means a solicitation of Competitive Bid Quotes setting forth Competitive Bid Margins based on the London Interbank Offered Rate pursuant to Section 2.03.

 

“Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind, or any other type of preferential arrangement that has the practical effect of creating a security interest, in respect of such asset.  For the purposes of this Agreement, the Company or any Subsidiary shall be deemed to own subject to a Lien any asset which it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement, capital lease or other title retention agreement relating to such asset.

 

“Loan” means an Australian Bill Rate, Base Rate Loan, Canadian Prime Rate Loan, CDOR Rate Loan, HIBOR Rate Loan, Euro-Currency Loan or a Competitive Bid Loan and “Loans” means Australian Bill Rate Loans, Base Rate Loans, Canadian Prime Rate Loans, CDOR Rate Loans, HIBOR Rate Loans, Euro-Currency Loans or Competitive Bid Loans or any combination of the foregoing.

 

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“Loan Document” means this Agreement, including without limitation, schedules and exhibits hereto and any agreements entered into in connection herewith, including amendments, modifications or supplements thereto or waivers thereof, any Notes and any other documents prepared in connection with the other Loan Documents, if any.

 

“London Interbank Offered Rate” means, with respect to any Euro-Currency Borrowing for any Interest Period or any determination of the Base Rate pursuant to clause (iii) of the definition thereof, the LIBO Screen Rate for the applicable currency at approximately 11:00 a.m., London time, two Euro-Currency Business Days prior to the commencement of such Interest Period (other than any Euro-Currency Borrowing in Sterling, which will be determined on the date of commencement of such Interest Period); provided that if the LIBO Screen Rate for such currency shall not be available at such time for such Interest Period (an “Impacted Interest Period”) then the London Interbank Offered Rate shall be the Interpolated Rate, subject to Section 8.01(a) in the event that the 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); provided, further, that if the London Interbank Offered Rate as so determined would be less than 0%, such rate shall be deemed to be 0% for purposes of this Agreement.

 

“Material Adverse Effect” means a material adverse effect on the business, financial position or results of operations of the Company and its Consolidated Subsidiaries, taken as a whole.

 

“Material Debt” means Debt (other than the Loans) of the Company and/or one or more of its Subsidiaries, arising in one or more related or unrelated transactions, in an aggregate principal or face amount exceeding $175,000,000.

 

“Material Financial Obligations” means a principal or face amount of Debt and/or payment or collateralization obligations in respect of Derivatives Obligations of the Company and/or one or more of its Subsidiaries, arising in one or more related or unrelated transactions, exceeding in the aggregate $175,000,000.

 

“Multiemployer Plan” means at any time an employee pension benefit plan within the meaning of Section 4001(a)(3) of ERISA to which any member of the ERISA Group is then making or accruing an obligation to make contributions or has within the preceding five plan years made contributions, including for these purposes any Person which ceased to be a member of the ERISA Group during such five year period.

 

“Non-Extending Lender” has the meaning set forth in Section 2.22(b).

 

“Non-U.S. Lender” has the meaning set forth in Section 8.04(d).

 

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“Notes” means promissory notes of a Borrower, substantially in the form of Exhibit A hereto, evidencing the obligation of such Borrower to repay the Loans made to it, and “Note” means any one of such promissory notes issued hereunder.

 

“Notice of Borrowing” means a Notice of Committed Borrowing (as defined in Section 2.02) or a Notice of Competitive Bid Borrowing (as defined in Section 2.03(f)).

 

“Notice of Interest Rate Election” has the meaning set forth in Section 2.10.

 

“Notice of Issuance” has the meaning set forth in Section 2.19.

 

“NYFRB” means the Federal Reserve Bank of New York.

 

“NYFRB Rate” means, for any day, the greater of (a) the Federal Funds Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect on such day (or for any day that is not a Euro-Dollar Business Day, for the immediately preceding Euro-Dollar Business Day); provided that if none of such rates are published for any day that is a Euro-Dollar Business Day, the term “NYFRB Rate” means the rate for a federal funds transaction quoted at 11:00 a.m. on such day received by the Administrative Agent from a federal funds broker of recognized standing selected by it; provided, further, that if any of the aforesaid rates as so determined would be less than 0%, such rate shall be deemed to be 0% for purposes of this Agreement.

 

“Obligors” means the Company and the other Borrowers, and “Obligor” means any one of them.

 

“Outstanding Committed Amount” means, as to any Lender at any time, the sum at such time, without duplication, of (i) the aggregate principal amount of the outstanding Committed Dollar Loans of such Lender at such time, (ii) the aggregate Dollar Amount of the aggregate principal amount of the outstanding Committed Alternative Currency Loans, Australian Dollar Loans, Canadian Dollar Loans and HK Dollar Loans of such Lender at such time and (iii) the aggregate Dollar Amount of such Lender’s Letter of Credit Liabilities at such time.

 

“Overnight Bank Funding Rate” means, for any day, the rate comprised of both overnight federal funds and overnight Euro-Currency borrowings by U.S.-managed banking offices of depositary institutions (as such composite rate shall be determined by the NYFRB as set forth on its public website from time to time) and published on the next succeeding Euro-Dollar Business Day by the NYFRB as an overnight bank funding rate.

 

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“Parent” means, with respect to any Lender, any Person controlling such Lender.

 

“Participant” has the meaning set forth in Section 10.06(b).

 

“Participating Member State” means any member state of the European Community that adopts or has adopted the Euro as its lawful currency in accordance with legislation of the European Community relating to Economic and Monetary Union.

 

“PBGC” means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions under ERISA.

 

“Permitted Securitization Financing” means any sale or sales of any accounts receivable, general intangibles, chattel paper or other financial assets and related rights and assets of the Company and/or any of its Subsidiaries, and financing secured by the assets so sold, including, without limitation, any revolving purchase(s) of such assets; provided (a) all such sales are made at fair market value (as determined in good faith by the Company) and (b) that such financing shall be non-recourse (except for customary representations, warranties, covenants and indemnities made in connection with such facilities) to the Company or any Subsidiary (other than a special purpose Subsidiary with no assets other than the financial assets which are the basis for such financing).

 

“Person” means an individual, a corporation, a limited liability company, a partnership, an association, a trust or any other entity or organization, including a government or political subdivision or an agency or instrumentality thereof.

 

“Plan” means at any time an employee pension benefit plan (other than a Multiemployer Plan) which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Internal Revenue Code and either (i) is maintained, or contributed to, by any member of the ERISA Group for employees of any member of the ERISA Group or (ii) has at any time within the preceding five years been maintained, or contributed to, by any Person which was at such time a member of the ERISA Group for employees of any Person which was at such time a member of the ERISA Group.

 

“Pricing Schedule” means the Pricing Schedule attached hereto.

 

“Prime Rate” means the rate of interest last quoted by The Wall Street Journal as the “Prime Rate” in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Administrative Agent) or any similar release by the Federal Reserve Board (as determined by the

 

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Administrative Agent).  Each change in the Prime Rate shall be effective from and including the date such change is publicly announced as being effective.

 

“Pro Rata Share” means, with respect to each Lender (other than a Defaulting Lender) at any time, a fraction (expressed as a percentage, carried out to the ninth decimal place), the numerator of which is the amount of the Commitment of such Lender and the denominator of which is the total amount of the Commitments, subject to adjustment as provided in Section 2.20(a)(iii); provided that if the commitment of each Lender to make Loans and the obligation of each Issuing Lender to make Letter of Credit Credit Extensions have been terminated pursuant to Section 2.09 or Section 6.01, then the Pro Rata Share of each Lender shall be determined based on the Pro Rata Share of such Lender immediately prior to such termination and after giving effect to any subsequent assignments made pursuant to the terms hereof and any Lender’s status as a Defaulting Lender at the time of determination.

 

“Proxy Statement” means the Proxy Statement of the Company, dated as of September 27, 2018, for the Annual Meeting of Stockholders.

 

“PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.

 

“Quarterly Date” means each March 31, June 30, September 30 and December 31.

 

“Rate Fixing Date” means, with respect to any Interest Period, the day on which quotes for deposits in the relevant currency for such Interest Period are customarily taken in the London interbank market for delivery on the first day of such Interest Period.

 

“Reference Banks” means (i) in connection with any determination of the London Interbank Offered Rate, the principal London offices, (ii) in connection with any determination of the HIBOR Rate, the principal Hong Kong offices and (iii) in connection with any determination of the Australian Bill Rate, the principal Sidney offices, in each case, of one or more Lenders selected by the Administrative Agent from time to time and consented to by such Lender or Lenders (such consent not to be unreasonably withheld, conditioned or delayed).

 

“Regulation U” means Regulation U of the Federal Reserve Board, as in effect from time to time.

 

“Related Parties” means, with respect to any specified Person, such Person’s Affiliates and the respective directors, officers, employees, agents and advisors of such Person and such Person’s Affiliates.

 

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“Reimbursement Obligation” has the meaning set forth in Section 2.19(d).

 

“Required Lenders” means at any time Lenders having in excess of 50% of the aggregate amount of the Commitments or, if the Commitments shall have been terminated, holding more than 50% of the Total Outstanding Amount.

 

“Revolving Credit Period” means the period from and including the Closing Date to but not including the earlier of the Termination Date and the date of termination of the Commitments.

 

“Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, or (b) the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United Kingdom.

 

“Sanctioned Country” means, at any time, a country, region or territory which is the subject or target of any comprehensive territorial Sanctions (as of the date of this Agreement, Crimea, Cuba, Iran, North Korea and Syria, but subject to change).

 

“Sanctioned Person” means, at any time, (a) an agency or instrumentality of the government of a Sanctioned Country, (b) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State or by the United Nations Security Council or the European Union, (c) any Person located, organized or resident in a Sanctioned Country or (d) any Person controlled or 50% or more owned, directly or indirectly, by one or more such Persons.

 

“Senior Officer” means, with respect to any Person, the chief executive officer, the chief operating officer, the president, the chief financial officer, the general counsel, the chief accounting officer or the treasurer of such Person (or in any case persons having substantially similar responsibilities regardless of title).

 

“Significant Subsidiary” means at any time a Subsidiary that as at that time would be a “significant subsidiary” as defined in Rule 1-02 of Regulation S-X promulgated by the Securities and Exchange Commission as in effect on the date hereof; provided that each Eligible Subsidiary shall always be deemed to be a Significant Subsidiary.

 

“SPC” has the meaning specified in Section 10.06(f).

 

“Sterling” means the lawful currency of the United Kingdom.

 

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“Subsidiary” means, as to any Person, any corporation or other entity of which securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by such Person; unless otherwise specified, “Subsidiary” means a Subsidiary of the Company.

 

“Swiss Francs” means the lawful currency of the Swiss Confederation.

 

“Syndication Agents” means BNP Paribas, Citibank, N.A., Bank of America, N.A., and MUFG Bank, Ltd.

 

“Termination Date” means, as to any Lender, initially October 26, 2023, or, if such day is not a Euro-Dollar Business Day, the next preceding Euro-Dollar Business Day, as such date for such Lender may be extended from time to time pursuant to Section 2.22.

 

“Total Outstanding Amount” means, at any time, the aggregate Dollar Amount of all Loans outstanding at such time plus the aggregate Dollar Amount of the Letter of Credit Liabilities of all Lenders at such time.

 

“United States” means the United States of America, including the States and the District of Columbia, but excluding its territories and possessions.

 

“Wholly-Owned Consolidated Subsidiary” means any Consolidated Subsidiary all of the shares of capital stock or other ownership interests of which (except for qualifying shares held by directors or foreign nationals in accordance with applicable law) are at the time directly or indirectly owned by the Company or one or more other Wholly-Owned Consolidated Subsidiaries.

 

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

 

“Yen” means the lawful currency of Japan.

 

Section 1.02.  Accounting Terms and Determinations.  Unless otherwise specified herein, all accounting terms used herein shall be interpreted, all accounting determinations hereunder shall be made, and all financial statements required to be delivered hereunder shall be prepared in accordance with GAAP, applied on a basis consistent (except for changes concurred in by the Company’s independent public accountants) with the most recent audited consolidated financial statements of the Company and its Consolidated Subsidiaries delivered to the Lenders; provided that, (a) all obligations of any Person that are or would have been treated as operating leases for purposes of GAAP prior to the issuance

 

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by the Financial Accounting Standards Board on February 25, 2016 of an Accounting Standards Update (the “ASU”) shall continue to be accounted for as operating leases for purposes of this Agreement (whether or not such operating lease obligations were in effect on such date) notwithstanding the fact that such obligations are required in accordance with the ASU (on a prospective or retroactive basis or otherwise) to be treated as capitalized lease obligations in the Company’s financial statements, and (b) if the Company notifies the Administrative Agent that the Company wishes to amend any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent or the Required Lenders, by notice to the Company, shall request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith, and any such amendment, whether requested by the Company, the Administrative Agent or the Required Lenders, shall be negotiated in good faith.

 

Section 1.03.  Types of Borrowing.  The term “Borrowing” denotes the aggregation of Loans of one or more Lenders to be made to a single Borrower pursuant to Article 2 on the same date, all of which Loans are of the same type and currency (subject to Article 8) and, except in the case of Base Rate Loans, have the same initial Interest Period.  Borrowings are classified for purposes of this Agreement either (a) by reference to the currency and/or pricing of Loans comprising such Borrowing (e.g., a “Fixed Rate Borrowing” is a Euro-Currency Borrowing or a Competitive Bid Borrowing (excluding any such Borrowing consisting of Competitive Bid LIBOR Loans bearing interest at the Base Rate pursuant to Section 8.01), and a “Euro-Currency Borrowing” is a Borrowing comprised of Euro-Currency Loans), or (b) by reference to the provisions of Article 2 under which participation therein is determined (i.e., a “Committed Borrowing” is a Borrowing under Section 2.01 in which all Lenders participate in proportion to their Commitments, while a “Competitive Bid Borrowing” is a Borrowing under Section 2.03 in which the Lender participants are determined on the basis of their bids in accordance therewith).

 

Section 1.04.  Terms Generally.  The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have the same meaning and effect as the word “shall”.  Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended,

 

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supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference to any law, rule or regulation herein shall, unless otherwise specified, refer to such law, rule or regulation as amended, modified or supplemented from time to time and (f) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights. Any reference in the Loan Documents to “Bank of America Merrill Lynch International Limited” is a reference to its successor in title Bank of America Merrill Lynch International Designated Activity Company (including, without limitation, its branches) pursuant to and with effect from the merger between Bank of America Merrill Lynch International Limited and Bank of America Merrill Lynch International Designated Activity Company that takes effect in accordance with Chapter II, Title II of Directive (EU) 2017/1132 (which repeals and codifies the Cross-Border Mergers Directive (2005/56/EC)), as implemented in the United Kingdom and Ireland.  Notwithstanding anything to the contrary in the Loan Documents, a transfer of rights and obligations from Bank of America Merrill Lynch International Limited to Bank of America Merrill Lynch International Designated Activity Company pursuant to such merger shall be permitted.

 

Section 1.05.  Interest Rates.  The Administrative Agent does not warrant or accept responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related to the rates in the definition of “London Interbank Offered Rate” or with respect to any comparable or successor rate thereto, or replacement rate therefor (except to the extent that a court of competent jurisdiction determines in a final and nonappealable judgment that the Administrative Agent acted with gross negligence, bad faith or willful misconduct).

 

ARTICLE 2
 THE CREDITS

 

Section 2.01.  Commitments To Lend.  (a) During the Revolving Credit Period, each Lender severally agrees, on the terms and conditions set forth in this Agreement, to make Loans denominated in Dollars, Australian Dollars, Canadian Dollars, HK Dollars or in an Alternative Currency to any Borrower pursuant to this Section 2.01(a) from time to time in amounts such that (i) such Lender’s Outstanding Committed Amount shall not exceed the amount of its Commitment, (ii) the Total Outstanding Amount shall not exceed the aggregate amount of the

 

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Commitments and (iii) the sum of the aggregate Dollar Amount of the aggregate principal amount of all outstanding Committed Australian Dollar Loans, Committed Canadian Dollar Loans, Committed HK Dollar Loans or Committed Alternative Currency Loans plus the aggregate Dollar Amount of the aggregate Letter of Credit Liabilities for Letters of Credit in Australian Dollars, Canadian Dollars, HK Dollars or an Alternative Currency shall not exceed the Alternative Currency Sublimit.  Each Borrowing under this Section 2.01(a) shall be (x) in the case of a Dollar-Denominated Borrowing, in a minimum aggregate Dollar Amount of $20,000,000 and any larger multiple of $1,000,000 and (y) in the case of an Australian Dollar Borrowing, Canadian Dollar Borrowing, Hong Kong Dollar Borrowing or an Alternative Currency Borrowing, in a minimum aggregate Dollar Amount of $5,000,000 and in integral multiples of 500,000 units of the applicable currency (except that any such Borrowing may be in the aggregate amount available in accordance with this Section 2.01(a) and Section 3.02) and shall be made from the several Lenders ratably in proportion to their respective Available Commitments.

 

(b)        Within the foregoing limits, any Borrower may borrow under this Section, repay, or to the extent permitted by Section 2.12, prepay Loans and reborrow at any time during the Revolving Credit Period under this Section.

 

(c)        Committed Canadian Dollar Loans shall, at the option of the Borrower, be made either by means of (i) Canadian Prime Rate Loans or (ii) CDOR Rate Loans.

 

Section 2.02.  Notice of Committed Borrowing.   A Borrower shall give the Applicable Agent notice (a “Notice of Committed Borrowing”) not later than (i) in the case of an Alternative Currency Borrowing, 10:30 a.m. (London time), on the third Euro-Currency Business Day before each such Alternative Currency Borrowing; (ii) in the case of an Australian Bill Rate Borrowing, 10:30 a.m. (London time) on the fourth Euro-Currency Business Day before such Australian Bill Rate Borrowing, (iii) in the case of a Base Rate Borrowing, 10:30 a.m. (New York City time) on the date of such Base Rate Borrowing; (iv) in the case of a Canadian Prime Rate Borrowing, 10:30 a.m. (Toronto time), on the Euro-Currency Business Day before such Canadian Prime Rate Borrowing; (v) in the case of a CDOR Rate Borrowing, 10:30 a.m. (Toronto time), on the third Euro-Currency Business Day before such CDOR Rate Borrowing; (vi) in the case of a Euro-Dollar Borrowing, 10:30 a.m. (New York City time), on the third Euro-Dollar Business Day before such Euro-Dollar Borrowing; (vii) in the case of a HIBOR Rate Borrowing, 10:30 a.m. (Hong Kong time), on the fourth Euro-Currency Business Day before such HIBOR Rate Borrowing, specifying:

 

(i)            the date of such Borrowing, which shall be a Domestic Business Day in the case of a Base Rate Borrowing or a Euro-Currency Business Day in the case of an Australian Bill Rate Borrowing, Canadian

 

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Prime Rate Borrowing, CDOR Rate Borrowing, HIBOR Rate Borrowing, Euro-Currency Borrowing or Alternative Currency Borrowing;

 

(ii)           the currency and the aggregate amount in the relevant currency and the Dollar Amount of such Borrowing; provided that if no currency is specified with respect to any requested Borrowing, then the Borrower shall be deemed to have selected Dollars;

 

(iii)          in the case of Committed Dollar Loans, whether the Loans comprising such Borrowing are to bear interest initially at the Base Rate or a Euro-Currency Rate; and

 

(iv)          in the case of a Euro-Currency Borrowing, Australian Bill Rate Borrowing, CDOR Rate Borrowing and HIBOR Rate Borrowing, the duration of the initial Interest Period applicable thereto, subject to the provisions of the definition of Interest Period, and the location from which payments of the principal and interest on such Borrowing will be made, which will comply with the requirements of Section 2.14.

 

Section 2.03.  Competitive Bid Borrowings.  (a) The Competitive Bid Option.  In addition to Committed Borrowings pursuant to Section 2.01, any Borrower may, as set forth in this Section, request the Lenders during the Revolving Credit Period to make offers to make Competitive Bid Loans to such Borrower.  The Lenders may, but shall have no obligation to, make such offers and a Borrower may, but shall have no obligation to, accept any such offers in the manner set forth in this Section.

 

(b)        Competitive Bid Quote Request.  When a Borrower wishes to request offers to make Competitive Bid Loans under this Section, it shall transmit to the Administrative Agent by telex or facsimile transmission a Competitive Bid Quote Request substantially in the form of Exhibit B hereto so as to be received not later than 10:30 a.m. (New York City time) (or 10:30 a.m. (London time) in the case of a proposed Alternative Currency Borrowing) on (x) the fourth Euro-Dollar Business Day prior to the date of Borrowing proposed therein (or in the case of an Alternative Currency Borrowing, the fourth Euro-Currency Business Day), in the case of a LIBOR Auction or (y) the Euro-Currency Business Day prior to the date of Borrowing proposed therein, in the case of an Absolute Rate Auction (or, in either case, such other time or date as such Borrower and the Administrative Agent shall have mutually agreed and shall have notified to the Lenders not later than the date of the Competitive Bid Quote Request for the first LIBOR Auction or Absolute Rate Auction for which such change is to be effective) specifying:

 

(i)            the proposed date of Borrowing, which shall be a Euro-Dollar Business Day (or in the case of an Alternative Currency Borrowing,

 

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a Euro-Currency Business Day) in the case of a LIBOR Auction or a Domestic Business Day in the case of an Absolute Rate Auction in dollars,

 

(ii)           the proposed currency of such Borrowing,

 

(iii)          the aggregate amount of such Borrowing, which shall be (x) in the case of a Dollar-Denominated Borrowing, in a minimum aggregate Dollar Amount of $20,000,000 and any larger multiple of $1,000,000 and (y) in the case of an Alternative Currency Borrowing, in a minimum aggregate Dollar Amount of $5,000,000 and in integral multiples of 500,000 units of the applicable Alternative Currency,

 

(iv)          the duration of the Interest Period applicable thereto, subject to the provisions of the definition of Interest Period, and

 

(v)           whether the Competitive Bid Quotes requested are to set forth a Competitive Bid Margin or a Competitive Bid Absolute Rate.

 

A Borrower may request offers to make Competitive Bid Loans for more than one Interest Period in a single Competitive Bid Quote Request.  No Competitive Bid Quote Request shall be given within four Euro-Dollar Business Days (or such other number of days as the applicable Borrower and the Administrative Agent may agree) of any other Competitive Bid Quote Request.

 

(c)        Invitation for Competitive Bid Quotes.  Promptly upon receipt of a Competitive Bid Quote Request, the Administrative Agent shall send to the Lenders by telex or facsimile transmission an Invitation for Competitive Bid Quotes substantially in the form of Exhibit C hereto, which shall constitute an invitation by the applicable Borrower to each Lender to submit Competitive Bid Quotes offering to make the Competitive Bid Loans to which such Competitive Bid Quote Request relates in accordance with this Section.

 

(d)        Submission and Contents of Competitive Bid Quotes.  (i) Each Lender may submit a Competitive Bid Quote containing an offer or offers to make Competitive Bid Loans in response to any Invitation for Competitive Bid Quotes.  Each Competitive Bid Quote must comply with the requirements of this subsection (d) and must be submitted to the Administrative Agent by telex or facsimile transmission at its offices specified in or pursuant to Section 10.01 not later than (x) 9:30 a.m. (New York City time) (or 9:30 a.m. (London time) in the case of an Alternative Currency Borrowing) on the third Euro-Dollar Business Day prior to the proposed date of Borrowing (or in the case of an Alternative Currency Borrowing, the third Euro-Currency Business Day), in the case of a LIBOR Auction or (y) 9:30 a.m. (New York City time) (or 9:30 a.m. (London time) in the case of an Alternative Currency Borrowing) on the proposed date of Borrowing, in the case of an Absolute Rate Auction (or, in either case, such other time or date as the applicable Borrower and the Administrative Agent shall have

 

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mutually agreed and shall have notified to the Lenders not later than the date of the Competitive Bid Quote Request for the first LIBOR Auction or Absolute Rate Auction for which such change is to be effective); provided that Competitive Bid Quotes submitted by the Administrative Agent (or any affiliate of the Administrative Agent) in the capacity of a Lender may be submitted, and may only be submitted, if the Administrative Agent or such affiliate notifies the Borrower of the terms of the offer or offers contained therein not later than (x) one hour prior to the deadline for the other Lenders, in the case of a LIBOR Auction or (y) 15 minutes prior to the deadline for the other Lenders, in the case of an Absolute Rate Auction.  Subject to Articles 3 and 6, any Competitive Bid Quote so made shall be irrevocable except with the written consent of the Administrative Agent given on the instructions of the applicable Borrower.

 

(ii)           Each Competitive Bid Quote shall be substantially in the form of Exhibit D hereto and shall in any case specify:

 

(A)         the proposed date of Borrowing,

 

(B)         the principal amount of the Competitive Bid Loan for which each such offer is being made, which principal amount (w) may be greater than or less than the Commitment of the quoting Lender, (x) must be (1) in the case of a Dollar-Denominated Borrowing, $5,000,000 or a larger multiple of $1,000,000 and (2) in the case of an Alternative Currency Borrowing, $500,000 or an integral multiple of 500,000 units of the applicable Alternative Currency, (y) may not exceed the principal amount of Competitive Bid Loans for which offers were requested and (z) may be subject to an aggregate limitation as to the principal amount of Competitive Bid Loans for which offers being made by such quoting Lender may be accepted,

 

(C)         in the case of a LIBOR Auction, the margin above or below the applicable London Interbank Offered Rate (the “Competitive Bid Margin”) offered for each such Competitive Bid Loan, expressed as a percentage (specified to the nearest 1/10,000th of 1%) to be added to or subtracted from such base rate,

 

(D)         in the case of an Absolute Rate Auction, the rate of interest per annum (specified to the nearest 1/10,000th of 1%) (the “Competitive Bid Absolute Rate”) offered for each such Competitive Bid Loan, and

 

(E)         the identity of the quoting Lender.

 

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A Competitive Bid Quote may set forth up to five separate offers by the quoting Lender with respect to each Interest Period specified in the related Invitation for Competitive Bid Quotes.

 

(iii)          Any Competitive Bid Quote shall be disregarded if it:

 

(A)            is not substantially in conformity with Exhibit D hereto or does not specify all of the information required by subsection (d)(ii) above;

 

(B)            contains qualifying, conditional or similar language;

 

(C)            proposes terms other than or in addition to those set forth in the applicable Invitation for Competitive Bid Quotes; or

 

(D)            arrives after the time set forth in subsection (d)(i).

 

(e)        Notice to Borrower.  The Administrative Agent shall promptly notify the applicable Borrower of the terms (x) of any Competitive Bid Quote submitted by a Lender that is in accordance with subsection (d) and (y) of any Competitive Bid Quote that amends, modifies or is otherwise inconsistent with a previous Competitive Bid Quote submitted by such Lender with respect to the same Competitive Bid Quote Request.  Any such subsequent Competitive Bid Quote shall be disregarded by the Administrative Agent unless such subsequent Competitive Bid Quote is submitted solely to correct a manifest error in such former Competitive Bid Quote.  The Administrative Agent’s notice to the applicable Borrower shall specify (A) the aggregate principal amount of Competitive Bid Loans for which offers have been received for each Interest Period specified in the related Competitive Bid Quote Request, (B) the respective principal amounts and Competitive Bid Margins or Competitive Bid Absolute Rates, as the case may be, so offered and (C) if applicable, limitations on the aggregate principal amount of Competitive Bid Loans for which offers in any single Competitive Bid Quote may be accepted.

 

(f)        Acceptance and Notice by Borrower.  Not later than 10:30 a.m. (New York City time) (or 10:30 a.m. (London time) in the case of an Alternative Currency Borrowing) on (x) the third Euro-Dollar Business Day prior to the proposed date of Borrowing (or in the case of an Alternative Currency Borrowing, the third Euro-Currency Business Day), in the case of a LIBOR Auction or (y) the proposed date of Borrowing, in the case of an Absolute Rate Auction (or, in either case, such other time or date as the Borrower and the Administrative Agent shall have mutually agreed and shall have notified to the Lenders not later than the date of the Competitive Bid Quote Request for the first LIBOR Auction or Absolute Rate Auction for which such change is to be effective), the applicable Borrower

 

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shall notify the Administrative Agent of its acceptance or non-acceptance of the offers so notified to it pursuant to subsection (e).  In the case of acceptance, such notice (a “Notice of Competitive Bid Borrowing”) shall specify the aggregate principal amount of offers for each Interest Period that are accepted.  The applicable Borrower may accept any Competitive Bid Quote in whole or in part; provided that:

 

(i)            the aggregate principal amount of each Competitive Bid Borrowing may not exceed the applicable amount set forth in the related Competitive Bid Quote Request;

 

(ii)           the principal amount of each Competitive Bid Borrowing must be (x) in the case of a Dollar-Denominated Borrowing, in a minimum aggregate Dollar Amount of $20,000,000 and any larger multiple of $1,000,000 and (y) in the case of an Alternative Currency Borrowing, in a minimum aggregate Dollar Amount of $5,000,000 and in integral multiples of 500,000 units of the applicable Alternative Currency;

 

(iii)          acceptance of offers may only be made on the basis of ascending Competitive Bid Margins or Competitive Bid Absolute Rates, as the case may be; and

 

(iv)          the applicable Borrower may not accept any offer that is described in subsection (d)(iii) or that otherwise fails to comply with the requirements of this Agreement.

 

(g)        Allocation by Administrative Agent.  If offers are made by two or more Lenders with the same Competitive Bid Margins or Competitive Bid Absolute Rates, as the case may be, for a greater aggregate principal amount than the amount in respect of which such offers are accepted for the related Interest Period, the principal amount of Competitive Bid Loans in respect of which such offers are accepted shall be allocated by the Administrative Agent among such Lenders as nearly as possible (as the Administrative Agent may deem appropriate) in proportion to the aggregate principal amounts of such offers.  Determinations by the Administrative Agent of the amounts of Competitive Bid Loans shall be conclusive in the absence of manifest error.

 

Section 2.04.  Notice To Lenders; Funding of Loans.  (a) Upon receipt of a Notice of Borrowing, the Applicable Agent shall promptly notify each Lender of the contents thereof and of such Lender’s share (if any) of such Borrowing and such Notice of Borrowing shall not thereafter be revocable by the applicable Borrower.

 

(b)        On the date of each Borrowing, each Lender participating therein shall (except as provided in subsection (c) of this Section):

 

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(1)           if such Borrowing is to be made in dollars, make available its share of such Borrowing in dollars not later than 12:00 noon (New York City time), in Federal or other funds immediately available in New York City, to the Administrative Agent at its office specified in or pursuant to Section 10.01; or

 

(2)           if such Borrowing is to be made in Australian Dollars, Canadian Dollars, HK Dollars or an Alternative Currency, make available its share of such Borrowing in such currency (in such funds as may then be customary for the settlement of international transactions in Australian Dollars, Canadian Dollars, HK Dollars or such Alternative Currency, as applicable) to the account of the Applicable Agent at such time and place as shall have been notified by the Applicable Agent to the Lenders by at least three Euro-Currency Business Days’ notice.

 

(c)        Unless the Applicable Agent shall have received notice from a Lender prior to the date of any Borrowing that such Lender will not make available to the Applicable Agent such Lender’s share of such Borrowing, the Applicable Agent may assume that such Lender has made such share available to the Applicable Agent on the date of such Borrowing in accordance with subsection (b) of this Section and the Applicable Agent may, in reliance upon such assumption, make available to the applicable Borrower on such date a corresponding amount.  If and to the extent that such Lender shall not have so made such share available to the Applicable Agent, such Lender and the applicable Borrower severally agree to repay to the Applicable Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to the applicable Borrower until the date such amount is repaid to the Applicable Agent, at (i) in the case of the applicable Borrower, a rate per annum equal to the higher of the Federal Funds Rate and the interest rate applicable thereto pursuant to Section 2.07 and (ii) in the case of such Lender, the Federal Funds Rate (if such Borrowing is in dollars), the applicable Australian Bill Rate (if such Borrowing is in an Australian Dollars), the applicable CDOR Rate (if such Borrowing is in Canadian Dollars), the applicable HIBOR Rate (if such Borrowing is in HK Dollars) or the applicable London Interbank Offered Rate (if such Borrowing is in an Alternative Currency).  If such Lender shall repay to the Applicable Agent such corresponding amount, such amount so repaid shall constitute such Lender’s Loan included in such Borrowing for purposes of this Agreement.

 

(d)        Each Lender may, at its option, make any Loan available to a Borrower that is organized under the laws of a jurisdiction other than of the United States or a political subdivision thereof or make any Loan that is denominated in Australian Dollars, Canadian Dollars, HK Dollars or in an Alternative Currency by causing any foreign or domestic branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall

 

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not affect the obligation of such Borrower to repay such Loan in accordance with the terms of this Agreement.

 

Section 2.05.  Evidence Of Debt.  (a) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of each Borrower to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender by such Borrower from time to time hereunder.

 

(b)        The Administrative Agent shall maintain accounts in which it shall record (i) the Dollar Amount of each Loan made to a Borrower hereunder, the class, type and, in the case of any Committed Alternative Currency Loans, currency thereof and the Interest Period (if any) applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from each Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.

 

(c)        The entries made in the accounts maintained pursuant to paragraph (a) or (b) of this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of each Borrower to repay the Lenders in accordance with the terms of this Agreement; provided further that in the event of a conflict between the entries maintained by the Administrative Agent and the Lender, the accounts of the Administrative Agent shall prevail (absent manifest error), and provided further that in the event of a conflict between the Register (maintained pursuant to Section 10.06(f)) and the entries of maintained by the Administrative Agent (maintained pursuant to clause (b) of this Section) the Register shall prevail (absent manifest error).

 

(d)        Any Lender may request that Loans made by it be evidenced by a promissory note.  In such event, the applicable Borrower shall prepare, execute and deliver to such Lender a promissory note payable to such Lender, and its registered assigns, substantially in the form of Exhibit A hereto.  Thereafter, the Loans evidenced by each such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 10.06) be represented by one or more promissory notes in such form payable to the payee named therein, and its registered assigns.  Each reference in this Agreement to the “Note” of such Lender shall be deemed to refer to and include any or all of such Notes.

 

Section 2.06.  Maturity of Loans.  (a) Each Committed Loan shall mature, and the principal amount thereof shall be due and payable, together with accrued interest thereon, on the Termination Date.

 

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(b)        Each Competitive Bid Loan shall mature, and the principal amount thereof shall be due and payable, together with accrued interest thereon, on the last day of the Interest Period applicable to such Loan.

 

Section 2.07.  Interest Rates.  (a) Each Base Rate Loan shall bear interest on the outstanding principal amount thereof, for each day from the date such Loan is made until it becomes due, at a rate per annum equal to the sum of the Base Rate Margin plus the Base Rate for such day.  Such interest shall be payable quarterly in arrears on each Quarterly Date and, with respect to the principal amount of any Base Rate Loan converted to a Euro-Dollar Loan, on each date a Base Rate Loan is so converted.  Any overdue principal of or interest on any Base Rate Loan shall bear interest, payable on demand, for each day until paid at a rate per annum equal to the sum of 2% plus the rate otherwise applicable to Base Rate Loans for such day.

 

(b)        [Reserved].

 

(c)        Each Canadian Prime Rate Loan shall bear interest on the outstanding principal amount thereof, for each day from the date such Loan is made until it becomes due, at a rate per annum equal to the sum of the Canadian Prime Rate Margin plus the Canadian Prime Rate for such day.  Such interest shall be payable quarterly in arrears on each Quarterly Date.  Any overdue principal of or interest on any Canadian Prime Rate Loan shall bear interest, payable on demand, for each day until paid at a rate per annum equal to the sum of 2% plus the rate otherwise applicable to Canadian Prime Rate Loans for such day.

 

(d)        Each Australian Bill Rate Loan shall bear interest on the outstanding principal amount thereof, for each day during the Interest Period applicable thereto, at a rate per annum equal to the sum of the Australian Bill Rate Margin plus the Australian Bill Rate applicable to such Interest Period.  Such interest shall be payable for each Interest Period on the last day thereof and, if such Interest Period is longer than three months, at intervals of three months after the first day of such Interest Period.  Any overdue principal of or interest on any Australian Bill Rate Loan shall bear interest, payable on demand, for each day until paid at a rate per annum equal to the sum of 2% plus the rate otherwise applicable to Australian Bill Rate Loans for such day.

 

(e)        Each CDOR Rate Loan shall bear interest on the outstanding principal amount thereof, for each day during the Interest Period applicable thereto, at a rate per annum equal to the sum of the CDOR Rate Margin plus the CDOR Rate applicable to such Interest Period.  Such interest shall be payable for each Interest Period on the last day thereof and, if such Interest Period is longer than three months, at intervals of three months after the first day of such Interest Period.  Any overdue principal of or interest on any CDOR Rate Loan shall bear interest, payable on demand, for each day until paid at a rate per annum equal to

 

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the sum of 2% plus the rate otherwise applicable to CDOR Rate Loans for such day.

 

(f)        Each HIBOR Loan shall bear interest on the outstanding principal amount thereof, for each day during the Interest Period applicable thereto, at a rate per annum equal to the sum of the HIBOR Rate Margin plus the HIBOR Rate applicable to such Interest Period.  Such interest shall be payable for each Interest Period on the last day thereof and, if such Interest Period is longer than three months, at intervals of three months after the first day of such Interest Period.  Any overdue principal of or interest on any HIBOR Rate Loan shall bear interest, payable on demand, for each day until paid at a rate per annum equal to the sum of 2% plus the rate otherwise applicable to HIBOR Rate Loans for such day.

 

(g)        Each Euro-Currency Loan shall bear interest on the outstanding principal amount thereof, for each day during the Interest Period applicable thereto, at a rate per annum equal to the sum of the Euro-Currency Margin plus the London Interbank Offered Rate applicable to such Interest Period.  Such interest shall be payable for each Interest Period on the last day thereof and, if such Interest Period is longer than three months, at intervals of three months after the first day of such Interest Period.

 

(h)        Any overdue principal of or interest on any Euro-Currency Loan shall bear interest, payable on demand, for each day until paid at a rate per annum equal to the higher of (i) the sum of 2% plus the Euro-Currency Margin plus the London Interbank Offered Rate applicable to the Interest Period for such Loan and (ii) the sum of 2% plus the Euro-Currency Margin plus the average (rounded upward, if necessary, to the next higher 1/16 of 1%) of the respective rates per annum at which one day (or, if such amount due remains unpaid more than three Euro-Currency Business Days, then for such other period of time not longer than three months as the Administrative Agent may select) deposits in the relevant currency in an amount approximately equal to such overdue payment due to each of the Reference Banks are offered to such Reference Bank in the London interbank market for the applicable period determined as provided above (or, if the circumstances described in clause (a)(i) or (a)(ii) of Section 8.01 shall exist, at a rate per annum equal to the sum of 2% plus the rate applicable to Base Rate Loans for such day).

 

(i)         Subject to Section 8.01, each Competitive Bid LIBOR Loan shall bear interest on the outstanding principal amount thereof, for the Interest Period applicable thereto, at a rate per annum equal to the sum of the London Interbank Offered Rate for such Interest Period (determined in accordance with Section 2.07(b) as if the related Competitive Bid LIBOR Borrowing were a Committed Euro-Dollar Borrowing) plus (or minus) the Competitive Bid Margin quoted by the Lender making such Loan in accordance with Section 2.03.  Each Competitive Bid Absolute Rate Loan shall bear interest on the outstanding principal amount thereof, for the Interest Period applicable thereto, at a rate per annum equal to the

 

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Competitive Bid Absolute Rate quoted by the Lender making such Loan in accordance with Section 2.03.  Such interest shall be payable for each Interest Period on the last day thereof and, if such Interest Period is longer than three months, at intervals of three months after the first day thereof.

 

(j)         Any overdue principal of or interest on any Competitive Bid Loan shall bear interest, payable on demand, for each day until paid at a rate per annum equal to the sum of 2% plus the Base Rate for such day.

 

(k)        The Administrative Agent shall determine each interest rate applicable to the Loans hereunder pursuant to Section 2.16.  The Administrative Agent shall give prompt notice to the applicable Borrower and the participating Lenders of each rate of interest so determined, and its determination thereof shall be conclusive in the absence of manifest error.

 

(l)         Each Reference Bank agrees to use its best efforts to furnish quotations to the Administrative Agent as contemplated by this Section.  If any Reference Bank does not furnish a timely quotation, the Administrative Agent shall determine the relevant interest rate on the basis of the quotation or quotations furnished by the remaining Reference Bank or Banks or, if none of such quotations is available on a timely basis, the provisions of Section 8.01 shall apply.

 

Section 2.08.  Fees.  (a) Subject to Section 2.20, the Company shall pay to the Administrative Agent for the account of the Lenders ratably a facility fee (the “Facility Fee”), which shall accrue at the Facility Fee Rate (i) from and including the Closing Date to but excluding the date of termination of the Commitments in their entirety, on the average daily aggregate amount of the Commitments (whether used or unused) and (ii) from and including such date of termination to but excluding the date the Loans shall be repaid in their entirety, on the average daily aggregate outstanding principal Dollar Amount of the Loans.

 

(b)        Subject to Section 2.20, the Company shall pay to the Administrative Agent (i) for the account of the Lenders ratably a letter of credit fee (the “Letter of Credit Fee”) in Dollars accruing daily on the aggregate Dollar Amount of all outstanding Letters of Credit at the Letter of Credit Fee Rate (determined daily in accordance with the Pricing Schedule) and (ii) for the account of each Issuing Lender a letter of credit fronting fee accruing daily on the aggregate Dollar Amount of all Letters of Credit issued by such Issuing Lender at a rate per annum mutually and separately agreed from time to time by the Company and each Issuing Lender.  The Company shall also pay to each Issuing Lender for its own account issuance, drawing, amendment and extension charges in the amounts and at the times as agreed between the Company and such Issuing Lender.

 

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(c)        Accrued fees under this Section shall be payable quarterly in arrears on each Quarterly Date and on the date of termination of the Commitments in their entirety (and, in the case of clause (a), if later, the date the Loans shall be repaid in their entirety and, in the case of clause (b), if later, the date on which all Letters of Credit shall have been terminated).

 

Section 2.09.  Optional Termination or Reduction of Commitments.  During the Revolving Credit Period, the Company may, upon at least three Domestic Business Days’ notice to the Administrative Agent, (i) terminate the Commitments at any time, if no Loans or Letter of Credit Liabilities are outstanding at such time or (ii) ratably reduce from time to time by an aggregate amount of $20,000,000 or a larger multiple of $1,000,000, the aggregate amount of the Commitments in excess of the Total Outstanding Amount.

 

Section 2.10.  Method of Electing Interest Rates.  (a) The Committed Australian Dollar Loans, Committed Canadian Dollar Loans, Committed HK Dollar Loans and Dollar Loans included in each Committed Borrowing shall bear interest initially at the type of rate specified by the applicable Borrower in the applicable Notice of Committed Borrowing.  Thereafter, the applicable Borrower may from time to time elect to change or continue the type of interest rate borne by each Group of Loans (subject in each case to Section 2.07(c) and the provisions of Article 8 and the last sentence of this subsection (a)), as follows:

 

(i)            if such Loans are Base Rate Loans, the applicable Borrower may elect to convert such Loans to Euro-Dollar Loans as of any Euro-Dollar Business Day;

 

(ii)           if such Loans are Euro-Dollar Loans, the applicable Borrower may elect to convert such Loans to Base Rate Loans as of any Domestic Business Day, or elect to continue such Loans as Euro-Dollar Loans for an additional Interest Period as of any Euro-Dollar Business Day, subject to Section 2.15 in the case of any such conversion or continuation effective on any day other than the last day of the then current Interest Period applicable to such Loans;

 

(iii)          [Reserved];

 

(iv)          if such Loans are Australian Bill Rate Loans, the applicable Borrower may elect to continue such Loans as Australian Bill Rate Loans for an additional Interest Period as of any Euro-Currency Business Day, subject to Section 2.15 in the case of any such conversion or continuation effective on any day other than the last day of the then current Interest Period applicable to such Loans;

 

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(v)            if such Loans are Canadian Prime Rate Loans, the applicable Borrower may elect to convert such Loans to CDOR Rate Loans as of any Euro-Currency Business Day;

 

(vi)          if such Loans are CDOR Rate Loans, the applicable Borrower may elect to convert such Loans to Canadian Prime Rate Loans as of any Euro-Currency Business Day, or elect to continue such Loans as CDOR Rate Loans for an additional Interest Period as of any Euro-Currency Business Day, subject to Section 2.15 in the case of any such conversion or continuation effective on any day other than the last day of the then current Interest Period applicable to such Loans;

 

Each such election shall be made by delivering a notice (a “Notice of Interest Rate Election”) to the Administrative Agent not later than 10:00 a.m. (New York City time) on the third Euro-Dollar Business Day (or in the case of an Australian Dollar Borrowing, Canadian Dollar Borrowing, HK Dollar Borrowing or Alternative Currency Borrowing, the third Euro-Currency Business Day) before the conversion or continuation selected in such notice is to be effective.  A Notice of Interest Rate Election may, if it so specifies, apply to only a portion of the aggregate principal Dollar Amount of the relevant Group of Loans; provided that (i) such portion is allocated ratably among the Loans comprising such Group and (ii) the portion to which such Notice applies, and the remaining portion to which it does not apply, are each (x) in the case of a Dollar-Denominated Borrowing, $20,000,000 or any larger multiple of $1,000,000 and (y) in the case of an Australian Dollar Borrowing, Canadian Dollar Borrowing, HK Dollar Borrowing or Alternative Currency Borrowing, $5,000,000 or an integral multiple of 500,000 units of the applicable currency.  If no Notice of Interest Rate Election is timely delivered prior to the end of an Interest Period for any Euro-Dollar Loan, the Borrower shall be deemed to have elected that all Loans having such Interest Period shall be converted to Base Rate Loans effective as of the last day of such Interest Period.

 

(b)        Each Notice of Interest Rate Election shall specify:

 

(i)            the Group of Loans (or portion thereof) to which such notice applies;

 

(ii)           the date on which the conversion or continuation selected in such notice is to be effective, which shall comply with the applicable clause of subsection (a) above;

 

(iii)          if the Loans comprising such Group are to be converted, the new type of Loans and, if the Loans being converted are to be Australian Bill Rate Loans, CDOR Rate Loans or Euro-Dollar Loans, the duration of the next succeeding Interest Period applicable thereto; provided that, if at the time such notice is delivered an Event of Default

 

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has occurred and is continuing, the duration of the Interest Period with respect to any Australian Bill Rate Loans, CDOR Rate Loans, Euro-Dollar Loans to which such notice applies shall be one month; and

 

(iv)          if such Loans are to be continued as Australian Bill Rate Loans, CDOR Rate Loans, Euro-Dollar Loans or HIBOR for an additional Interest Period, the duration of such additional Interest Period; provided that, if at the time such notice is delivered an Event of Default has occurred and is continuing, the duration of the Interest Period with respect to any Australian Bill Rate Loans, CDOR Rate Loans, Euro-Dollar Loans or HIBOR to which such notice applies shall be one month.

 

Each Interest Period specified in a Notice of Interest Rate Election shall comply with the provisions of the definition of Interest Period.

 

(c)        Upon receipt of a Notice of Interest Rate Election from the applicable Borrower pursuant to subsection (a) above, the Administrative Agent shall promptly notify each Lender of the contents thereof and such notice shall not thereafter be revocable by such Borrower.

 

(d)        A Borrower shall not be entitled to elect to convert any Committed Dollar Loans to, or continue any Committed Dollar Loans for an additional Interest Period as, Euro-Dollar Loans, in each case made to it, if a Default shall have occurred and be continuing when such Borrower delivers notice of such election to the Administrative Agent.

 

(e)        An election by any Borrower to change or continue the rate of interest applicable to any Group of Loans pursuant to this Section shall not constitute a “Borrowing” subject to the provisions of Section 3.02.

 

(f)        The initial Interest Period for each Group of Committed Alternative Currency Loans shall be specified by the applicable Borrower in the applicable Notice of Borrowing.  The applicable Borrower may specify the duration of each subsequent Interest Period applicable to such Group of Loans by delivering to the Administrative Agent, not later than the time set forth in Section 2.02 with respect to the relevant Type of Loan before the end of the immediately preceding Interest Period, a notice specifying the Group of Loans to which such notice applies and the duration of such subsequent Interest Period (which shall comply with the provisions of the definition of Interest Period).  Such notice may, if it so specifies, apply to only a portion of the aggregate principal amount of the relevant Group of Loans; provided that (i) such portion is allocated ratably among the Loans comprising such Group and (ii) the Dollar Amounts of the portion to which such notice applies, and the remaining portion to which it does not apply, are each at least $5,000,000 and shall be in integral multiples of 500,000 units of Australian Dollars, Canadian Dollars, HK Dollars or the relevant Alternative Currency.  If no such notice is timely received by the Administrative Agent before the end of any

 

45

 

applicable Interest Period, the applicable Borrower shall be deemed to have elected that the subsequent Interest Period for such Group of Loans shall have a duration of one month (subject to the provisions of the definition of Interest Period).

 

Section 2.11.  Mandatory Termination of Commitments.  Unless previously terminated, the Commitments shall terminate on the Termination Date and any Loans then outstanding (together with accrued interest thereon) shall be due and payable on such date.

 

Section 2.12.  Optional Prepayments.  (a)  Subject in the case of any Fixed Rate Borrowing to Section 2.15, each Borrower may, upon at least one Domestic Business Days’ notice to the Administrative Agent, prepay any Base Rate Borrowing (or any Competitive Bid Borrowing bearing interest at the Base Rate pursuant to Section 8.01) made to it or upon at least three Euro-Currency Business Days’ notice to the Administrative Agent and the Applicable Agent (if different), prepay any Euro-Currency Borrowing made to it, in each case in whole at any time, or from time to time in part in an aggregate Dollar Amount not less than $20,000,000 or in the case of any Loan denominated in dollars, any larger multiple of $1,000,000, or in the case of any Australian Dollar Loan, Canadian Dollar Loan, HK Dollar Loan or Committed Alternative Currency Loan in an aggregate Dollar Amount not less than $5,000,000 or any larger integral multiple of 500,000 units of the relevant currency, by paying (in the relevant currency) the principal Dollar Amount to be prepaid together with accrued interest thereon to the date of prepayment.  Each such optional prepayment shall be applied to prepay ratably the Loans of the several Lenders included in such Borrowing.

 

(b)        A Borrower may not prepay all or any portion of the principal amount of any Competitive Bid Loan made to it prior to the maturity thereof except (i) as provided in subsection (a) above or (ii) with respect to any particular Competitive Bid Loan, as agreed upon between the Lender making such Loan and such Borrower so long as at the time such Borrower makes such prepayment no Default has occurred and is continuing.

 

(c)        Upon receipt of a notice of prepayment pursuant to this Section, the Administrative Agent shall promptly notify each Lender of the contents thereof and of such Lender’s ratable share (if any) of such prepayment and such notice shall not thereafter be revocable by the applicable Borrower.

 

Section 2.13.  Determining Dollar Amounts of Committed Alternative Currency Loans; Related Mandatory Prepayments.  (a)  The Administrative Agent shall determine the Dollar Amount of each Committed Australian Dollar Loan, Committed Canadian Dollar Loan, Committed HK Dollar Loan or Committed Alternative Currency Loan promptly after it receives the related Notice of Committed Borrowing, based on the Exchange Rate on the second Euro-Currency Business Day, or, in the case of any Committed HIBOR Rate

 

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Loans, on the fifth Euro-Currency Business Day, before the date of Borrowing specified in such notice.  Thereafter, the Administrative Agent shall redetermine the Dollar Amount of each Committed Australian Dollar Loan, Committed Canadian Dollar Loan, Committed HK Dollar Loan or Committed Alternative Currency Loan on the last Euro-Currency Business Day of each calendar month while such Loan remains outstanding, based in each case on the Exchange Rate on such Euro-Currency Business Day.  The Administrative Agent shall promptly notify the applicable Borrower and the participating Lenders of each Dollar Amount so determined, and its determination thereof shall be conclusive in the absence of manifest error.

 

(b)        The Administrative Agent shall determine the Dollar Amount of the Letter of Credit Liabilities related to each Letter of Credit promptly after it receives the related Notice of Issuance, based on the Exchange Rate on the third Euro-Currency Business Day before (or, solely in the case of a Letter of Credit denominated in Sterling, on) the date of issuance specified in such notice.  Thereafter, the Administrative Agent shall redetermine the Dollar Amount of each Letter of Credit on the last Euro-Currency Business Day of each calendar month while such Letter of Credit remains outstanding, based in each case on the Exchange Rate on such Euro-Currency Business Day.  The Administrative Agent shall promptly notify the applicable Borrower and the participating Lenders of each Dollar Amount so determined, and its determination thereof shall be conclusive in the absence of manifest error.

 

(c)        If, (i) on the last day of any Interest Period for any Borrowing, the Total Outstanding Amount at such time exceeds the aggregate amount of Commitments, the relevant Borrower shall, on such day, prepay Committed Loans included in such Borrowing in an amount equal to the lesser of (x) such excess and (y) the amount of such Borrowing and (ii) on the last day of any Interest Period for any Australian Dollar Borrowing, Canadian Dollar Borrowing, HK Dollar Borrowing or Committed Alternative Currency Borrowing, the Dollar Amount of the aggregate principal amount of outstanding Committed Australian Dollar Loans, Committed Canadian Dollar Loans, Committed HK Dollar Loans or Committed Alternative Currency Loans exceeds the Alternative Currency Sublimit, the relevant Borrower shall, on such date, prepay Committed Australian Dollar Loans, Committed Canadian Dollar Loans, Committed HK Dollar Loans and Committed Alternative Currency Loans included in such Borrowing in an amount equal to the lesser of (x) such excess and (y) the amount of such Borrowing.

 

(d)        If, on the last Euro-Currency Business Day of any calendar month, after any redetermination of the Dollar Amounts pursuant to Section 2.13(a), the Total Outstanding Amount at such time exceeds 105% of the aggregate amount of Commitments, then the Borrowers shall, on the last Euro-Currency Business Day of the next calendar month (the “Prepayment Date”), prepay one or more Groups of Borrowings in an aggregate principal amount equal to the excess, if any, of the

 

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Total Outstanding Amount as of such Prepayment Date over the then outstanding Commitments.

 

(e)        If, on the last Euro-Currency Business Day of any calendar month, after any redetermination of the Dollar Amounts pursuant to Section 2.13(a), the aggregate Dollar Amount of the aggregate Committed Australian Dollar Loans, Committed Canadian Dollar Loans, Committed HK Dollar Loans or Committed Alternative Currency Loans exceeds 105% of the Alternative Currency Sublimit, then the Borrowers shall, on the Prepayment Date, prepay one or more Groups of Borrowings in an aggregate principal amount equal to the excess, if any, of the aggregate Dollar Amount of the aggregate Committed Australian Dollar Loans, Committed Canadian Dollar Loans, Committed HK Dollar Loans or Committed Alternative Currency Loans as of such Prepayment Date over the Alternative Currency Sublimit.

 

Section 2.14.  General Provisions as to Payments.  (a)  Each Borrower shall make each payment of principal of, and interest on, the Loans and Letter of Credit Liabilities denominated in Dollars and of fees hereunder, not later than 12:00 noon (New York City time) on the date when due, in Federal or other funds immediately available in New York City, without defense, set-off or counterclaim and free of any restriction or condition, to the Administrative Agent at its address referred to in Section 10.01.  Each Borrower shall make each payment of principal of, and interest on, the Committed Australian Dollar Loans, Committed Canadian Dollar Loans, Committed HK Dollar Loans and Committed Alternative Currency Loans in the relevant currency in such funds as may then be customary for the settlement of international transactions in such currency, to such account and at such time and at such place as shall have been notified by the Applicable Agent to such Borrower and the Lenders by at least three Euro-Currency Business Days’ notice (or, solely in the case of Alternative Currency Borrowings denominated in Sterling, by at least one Euro-Currency Business Days’ notice).  The Borrower may specify in any notice delivered to the Administrative Agent and the Applicable Agent with respect to Australian Dollars, Canadian Dollars, HK Dollars or any Alternative Currency, one or more locations from which such Borrower may make payments of principal or of interest on any Committed Australian Dollar Loan, Committed Canadian Loan, Committed HK Dollar Loan or Committed Alternative Currency Loan in such currency; provided that the Administrative Agent approve such location.  The Applicable Agent will promptly distribute to each Lender its ratable share of each such payment received by the Administrative Agent for the account of the Lenders.  Whenever any payment of principal of, or interest on, the Base Rate Loans, Letter of Credit Liabilities denominated in Dollars or of fees shall be due on a day which is not a Domestic Business Day, the date for payment thereof shall be extended to the next succeeding Domestic Business Day.  Whenever any payment of principal of, or interest on, the Australian Dollar Loans, the Canadian Dollar Loans, the HK Dollars Loans or the Euro-Currency Loans shall be due on a day which is not a

 

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Euro-Currency Business Day, the date for payment thereof shall be extended to the next succeeding Euro-Currency Business Day unless such Euro-Currency Business Day falls in another calendar month, in which case the date for payment thereof shall be the next preceding Euro-Currency Business Day.  Whenever any payment of principal of, or interest on, the Competitive Bid Loans shall be due on a day which is not a Euro-Dollar Business Day, the date for payment thereof shall be extended to the next succeeding Euro-Dollar Business Day.  Whenever any payment of principal of or interest on Letter of Credit Liabilities denominated in Australian Dollars, Canadian Dollars, HK Dollars or in an Alternative Currency shall be due on a day which is not a Euro-Currency Business Day, the date for payment thereof shall be extended to the next succeeding Euro-Currency Business Day.  If the date for any payment of principal is extended by operation of law or otherwise, interest thereon shall be payable for such extended time.

 

(b)        Unless the Administrative Agent shall have received notice from a Borrower prior to the date on which any payment is due to the Lenders hereunder that such Borrower will not make such payment in full, the Administrative Agent may assume that such Borrower has made such payment in full to the Administrative Agent on such date and the Administrative Agent may, in reliance upon such assumption, cause to be distributed to each Lender on such due date an amount equal to the amount then due such Lender.  If and to the extent that such Borrower shall not have so made such payment, each Lender shall repay to the Administrative Agent forthwith on demand such amount distributed to such Lender together with interest thereon, for each day from the date such amount is distributed to such Lender until the date such Lender repays such amount to the Administrative Agent, at the Federal Funds Rate (if such amount was distributed in dollars) or (ii) the rate per annum at which one-day deposits in the relevant currency are offered to the Administrative Agent in the London interbank market for such day (if such amount was distributed in an Alternative Currency).

 

Section 2.15.  Funding Losses.  If a Borrower makes any payment of principal with respect to any Fixed Rate Loan, any Fixed Rate Loan is converted (pursuant to Article 2, 6 or 8 or otherwise) or continued on any day other than the last day of an Interest Period applicable thereto, or the last day of an applicable period fixed pursuant to Section 2.07(c), or if any Committed Alternative Currency Loan is converted to a Loan denominated in dollars pursuant to Article 8, or if a Borrower fails to borrow, prepay, convert or continue any Fixed Rate Loans after notice has been given to any Lender in accordance with Section 2.04(a), 2.12(a) or Section 2.10, respectively, such Borrower shall reimburse each Lender within 15 days after demand for any resulting loss or expense incurred by it (or by an existing or prospective Participant in the related Loan), including (without limitation) any loss incurred in obtaining, liquidating or employing deposits from third parties, but excluding loss of margin for the period after any such prepayment or conversion or continuation or failure to borrow, prepay, convert or continue; provided that such Lender shall have delivered to such

 

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Borrower and the Administrative Agent a certificate as to the amount of such loss or expense and setting forth the calculation thereof in reasonable detail, which certificate shall be conclusive in the absence of manifest error.

 

Section 2.16.  Computation of Interest and Fees.  Interest based on the Prime Rate, Canadian Prime Rate, CDOR Rate, Australian Bill Rate, HIBOR Rate and, in the case of Committed Alternative Currency Loans denominated in Sterling, the Euro-Currency Rate hereunder shall be computed on the basis of a year of 365 days and paid for the actual number of days elapsed (including the first day but excluding the last day).  All other interest and fees shall be computed on the basis of a year of 360 days and paid for the actual number of days elapsed (including the first day but excluding the last day); provided that if the Administrative Agent reasonably determines that a different basis of computation is the market convention for a particular Alternative Currency, such different basis shall be used.

 

Section 2.17.  [Reserved].

 

Section 2.18.  Regulation D Compensation.  (a)  Each Lender may require each Borrower to pay, contemporaneously with each payment of interest on the Euro-Currency Loans, additional interest on the related Euro-Currency Loan of such Lender at a rate per annum determined by such Lender up to but not exceeding the excess of (i) (A) the applicable London Interbank Offered Rate divided by (B) one minus the Euro-Currency Reserve Percentage over (ii) the applicable London Interbank Offered Rate.  Any Lender wishing to require payment of such additional interest (x) shall so notify such Borrower and the Administrative Agent, in which case such additional interest on the Euro-Currency Loans of such Lender shall be payable to such Lender at the place indicated in such notice with respect to each Interest Period commencing at least three Euro-Currency Business Days after the giving of such notice and (y) shall notify such Borrower at least five Euro-Currency Business Days prior to each date on which interest is payable on the Euro-Currency Loans of the amount then due it under this Section.

 

(b)        [Reserved].

 

(c)        If and so long as any Lender is required to comply with reserve assets, liquidity, cash margin or other requirements of any monetary or other authority (including any such requirement imposed by the European Central Bank or the European System of Central Banks, but excluding requirements referred to in subsection (a) above) in respect of any of such Lender’s Euro-Currency Loans, such Lender may require each Borrower to pay, contemporaneously with each payment of interest on each of such Lender’s Euro-Currency Loans subject to such requirements, additional interest on such Loan at a rate per annum specified by such Lender to be the cost to such Lender of complying with such requirements in relation to such Loan up to but not exceeding the excess of (i) (A)

 

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the applicable Euro-Currency Rate divided by (B) one minus the Euro-Currency Reserve Percentage over (ii) the applicable Euro-Currency Rate.  Any Lender wishing to require payment of such additional interest (x) shall so notify such Borrower and the Administrative Agent, in which case such additional interest on the Euro-Currency Loans of such Lender shall be payable to such Lender at the place indicated in such notice with respect to each Interest Period commencing at least three Euro-Currency Business Days after the giving of such notice and (y) shall notify such Borrower at least five Euro-Currency Business Days prior to each date on which interest is payable on the Euro-Currency Loans of the amount then due it under this Section.

 

(d)                       Any additional interest owed pursuant to subsection (a), (b) or (c) above shall be determined by the relevant Lender, which determination shall be conclusive and binding for all purposes except in the case of manifest error, and notified to each Borrower (with a copy to the Administrative Agent) at least five Euro-Currency Business Days before each date on which interest is payable for the relevant Loan, and such additional interest so notified to such Borrower by such Lender shall be payable to the Administrative Agent for the account of such Lender on each date on which interest is payable for such Loan.

 

Section 2.19.  Letters of Credit.  (a) Subject to the terms and conditions hereof, each Issuing Lender agrees to issue Letters of Credit hereunder denominated in Dollars, Australian Dollars, Canadian Dollars, HK Dollars, or in an Alternative Currency from time to time until the tenth day prior to the Termination Date upon the request of the Company for its account or the account of any Subsidiary; provided that, immediately after each Letter of Credit is issued (i) the Total Outstanding Amount shall not exceed the aggregate amount of the Commitments, (ii) the aggregate Dollar Amount of Letter of Credit Liabilities shall not exceed the Letter of Credit Sublimit, (iii) the sum of the aggregate Dollar Amount of the aggregate principal amount of all outstanding Committed Australian Dollar Loans, Committed Canadian Dollar Loans, and Committed HK Dollar Loans and Committed Alternative Currency Loans plus the aggregate Dollar Amount of the aggregate Letter of Credit Liabilities for Letters of Credit denominated in Australian Dollars, Canadian Dollars, HK Dollars or in an Alternative Currency shall not exceed the Alternative Currency Sublimit and (iv) the sum of (x) the aggregate undrawn amount of all outstanding Letters of Credit issued by any Issuing Lender plus (y) the aggregate amount of all Letter of Credit Disbursements made by such Issuing Lender that have not yet been reimbursed by or on behalf of the Borrowers at such time shall not exceed such Issuing Lender’s Letter of Credit Commitment; provided, further, that any Issuing Lender may agree, in its sole discretion, to issue Letters of Credit in excess of its Letter of Credit Commitment, so long as after giving effect to such issuance, clauses (i), (ii) and (iii) of the immediately preceding proviso are satisfied.  Upon the date of issuance by any Issuing Lender of a Letter of Credit, such Issuing Lender shall be deemed, without further action by any party hereto, to have sold to each Lender,

 

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and each Lender shall be deemed, without further action by any party hereto, to have purchased from such Issuing Lender, a participation in such Letter of Credit and the related Letter of Credit Liabilities in the proportion their respective Commitments bear to the aggregate Commitments.

 

(b)                       The Company shall give the applicable Issuing Lender notice at least (i) five Euro-Currency Business Days prior to the requested issuance of a Letter of Credit denominated in Australian Dollars, Canadian Dollars, HK Dollars or in an Alternative Currency and (ii) three Domestic Business Days prior to the requested issuance of a Letter of Credit denominated in dollars specifying the date such Letter of Credit is to be issued, and describing the terms of such Letter of Credit, the nature of the transactions to be supported thereby and the proposed currency of such Letter of Credit (such notice, including any such notice given in connection with the extension of a Letter of Credit, a “Notice of Issuance”).  Upon receipt of a Notice of Issuance, the applicable Issuing Lender shall promptly notify the Administrative Agent, and the Administrative Agent shall promptly notify each Lender of the contents thereof and of the amount of such Lender’s participation in such Letter of Credit.  The issuance by any Issuing Lender of any Letter of Credit shall, in addition to the conditions precedent set forth in Article 3, be subject to the conditions precedent that such Letter of Credit shall be in such form and contain such terms as shall be satisfactory to the applicable Issuing Lender and that the Company shall have executed and delivered such other instruments and agreements relating to such Letter of Credit as the applicable Issuing Lender shall have reasonably requested.  The extension or renewal of any Letter of Credit shall be deemed to be an issuance of such Letter of Credit, and if any Letter of Credit contains a provision pursuant to which it is deemed to be extended unless notice of termination is given by the applicable Issuing Lender, such Issuing Lender shall timely give such notice of termination unless it has theretofore timely received a Notice of Issuance and the other conditions to issuance of a Letter of Credit have also theretofore been met with respect to such extension.  Notwithstanding anything to the contrary in this Agreement, no Issuing Lender shall be under any obligation to issue, renew, amend or extend any Letter of Credit if:  (i) any order, judgment or decree of any Governmental Authority shall by its terms purport to enjoin or restrain the Issuing Lender from issuing, renewing, amending or extending the Letter of Credit, or any law, rule, regulation or treaty applicable to the Issuing Lender or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over the Issuing Lender shall prohibit, or request that the Issuing Lender refrain from, the issuance, renewal, amendment or extension of letters of credit generally or the Letter of Credit in particular; (ii) any Change in Law shall impose upon the Issuing Lender with respect to the Letter of Credit any restriction, reserve or capital requirement (for which the Issuing Lender is not otherwise compensated hereunder) not in effect on the Closing Date, (iii) the Issuing Lender does not as of the issuance date of the requested Letter of Credit issue, renew, amend or extend Letters of Credit in the requested currency, or (iv)

 

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the proceeds of such Letter of Credit would be made available to any Person (x) to fund any activity or business of or with any Sanctioned Person, or in any country or territory that, at the time of such funding, is the subject of any Sanctions or (y) in any manner that would result in a violation of any Sanctions by any party to this Agreement.

 

(c)                        Each Letter of Credit shall expire at or prior to the close of business on the earlier of (i) the date one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, one year after such renewal or extension) and (ii) the date that is five Domestic Business Days prior to the Termination Date.

 

(d)                       Upon receipt from the beneficiary of any Letter of Credit of any notice of a drawing under such Letter of Credit, the applicable Issuing Lender shall notify the Administrative Agent and the Administrative Agent shall promptly notify the Company and each other Lender as to the amount to be paid as a result of such demand or drawing and the payment date.  The Company shall be irrevocably and unconditionally obligated forthwith to reimburse the applicable Issuing Lender for any amounts paid by such Issuing Lender upon any drawing under any Letter of Credit, in the currency of such payment (a “Reimbursement Obligation”) without presentment, demand, protest or other formalities of any kind.  All such amounts paid by any Issuing Lender and remaining unpaid by the Company shall bear interest, payable on demand, for each day until paid at a rate per annum equal to the sum of 2% plus (i) if such amount is denominated in Dollars, the sum of the Base Rate Margin plus the Base Rate for such day, (ii) if such amount is denominated in Australian Dollars, the rate otherwise applicable to Australian Bill Rate Loans for such day, (iii) if such amount is denominated in Canadian Dollars, the rate otherwise applicable to Canadian Prime Rate Loans for such day (iv) if such amount is denominated in HK Dollars, the rate otherwise applicable to HIBOR Rate Loans for such day and (v) if such amount is denominated in an Alternative Currency, the sum of the Euro-Currency Margin plus the rate per annum at which one-day deposits in the relevant currency are offered by the principal London office of the Administrative Agent in the London interbank market for such day.  In addition, each Lender will pay to the Administrative Agent, for the account of the applicable Issuing Lender, immediately upon such Issuing Lender’s demand at any time during the period commencing after such drawing until reimbursement therefor in full by the Company, an amount equal to such Lender’s ratable share of such drawing (in proportion to its participation therein), together with interest on such amount for each day from the date of the applicable Issuing Lender’s demand for such payment (or, if such demand is made after 12:00 noon (New York City time) on such date, from the next succeeding Domestic Business Day) to the date of payment by such Lender of such amount at a rate of interest per annum equal to (i) if such amount is denominated in Dollars, the Federal Funds Rate, (ii) if such amount is denominated in Australian Dollars, the applicable Australian Bill Rate,

 

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(iii) if such amount is denominated in Canadian Dollars, the applicable CDOR Rate (iv) if such amount is denominated in HK Dollars, the applicable HIBOR Rate and (v) if such amount is denominated in an Alternative Currency, the rate per annum at which one-day deposits in the relevant currency are offered by the principal London office of the Administrative Agent in the London interbank market for such day.  The applicable Issuing Lender will pay to each Lender ratably all amounts received from the Company for application in payment of its reimbursement obligations in respect of any Letter of Credit, but only to the extent such Lender has made payment to the Issuing Lender in respect of such Letter of Credit pursuant hereto.

 

(e)                        The obligations of the Company under Section 2.19(d) above shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement, under all circumstances whatsoever, including without limitation the following circumstances:

 

(i)                                     the use which may be made of any Letter of Credit by, or any acts or omission of, a beneficiary of any Letter of Credit (or any Person for whom the beneficiary may be acting);

 

(ii)                                  the existence of any claim, set-off, defense or other rights that the Company may have at any time against a beneficiary of a Letter of Credit (or any Person for whom the beneficiary may be acting), the Lenders (including each Issuing Lender) or any other Person, whether in connection with this Agreement or the Letter of Credit or any document related hereto or thereto or any unrelated transaction;

 

(iii)                               any lack of validity or enforceability of any Letter of Credit or this Agreement, or any term or provision therein;

 

(iv)                              any statement or any other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect whatsoever;

 

(v)                                 payment under a Letter of Credit to the beneficiary of such Letter of Credit against presentation to the applicable Issuing Lender of a draft or certificate that does not comply with the terms of the Letter of Credit; or

 

(vi)                              any other act or omission to act or delay of any kind by any Lender (including each Issuing Lender), the Administrative Agent or any other Person or any other event or circumstance whatsoever that might, but for the provisions of this Section, constitute a legal or equitable discharge of, or provide a right of setoff against, the Company’s obligations hereunder.

 

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(f)                         The Company hereby indemnifies and holds harmless each Lender (including each Issuing Lender) and the Administrative Agent from and against any and all claims, damages, losses, liabilities, costs or expenses which such Lender or the Administrative Agent may incur (including, without limitation, any claims, damages, losses, liabilities, costs or expenses which any Issuing Lender may incur by reason of or in connection with the failure of any other Lender to fulfill or comply with its obligations to such Issuing Lender hereunder (but nothing herein contained shall affect any rights the Company may have against such defaulting Lender)), and none of the Lenders (including each Issuing Lender) nor the Administrative Agent nor any of their officers or directors or employees or agents shall be liable or responsible, by reason of or in connection with the execution and delivery or transfer of or payment or failure to pay under any Letter of Credit, including without limitation any of the circumstances enumerated in Section 2.19(e) above, as well as (i) any error, omission, interruption or delay in transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise, (ii) any loss or delay in the transmission of any document required in order to make a drawing under a Letter of Credit, and (iii) any consequences arising from causes beyond the control of any Issuing Lender, including without limitation any government acts, or any other circumstances whatsoever in making or failing to make payment under such Letter of Credit; provided that the Company shall not be required to indemnify any Issuing Lender for any claims, damages, losses, liabilities, costs or expenses, and the Company shall have a claim for direct (but not consequential) damage suffered by it, to the extent found by a court of competent jurisdiction by final and nonappealable judgment to have been caused by (x) the willful misconduct or gross negligence of the applicable Issuing Lender in determining whether a request presented under any Letter of Credit complied with the terms of such Letter of Credit or (y) the applicable Issuing Lender’s failure to pay under any Letter of Credit after the presentation to it of a request strictly complying with the terms and conditions of the Letter of Credit.  Nothing in this Section 2.19(f) is intended to limit the obligations of the Company under any other provision of this Agreement.  To the extent the Company does not indemnify an Issuing Lender as required by this subsection, the Lenders agree to do so ratably in accordance with their Commitments.

 

(g)                        If any Event of Default shall occur and be continuing, on the day that the Company receives notice from the Administrative Agent or the Required Lenders demanding the deposit of Cash Collateral pursuant to this paragraph, the Company shall Cash Collateralize an amount in cash in the relevant currency equal to the Letter of Credit Liabilities as of such date plus any accrued and unpaid interest thereon; provided that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to the Company described in clause (g) or clause (h) of Section 6.01.  Such deposit shall be held by the

 

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Administrative Agent as collateral for the payment and performance of the obligations of the Company under this Agreement.  The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account.  Other than any interest earned on the investment of such deposits, which investments shall be made at the option and sole discretion of the Administrative Agent and at the Company’s risk and expense, such deposits shall not bear interest.  Interest or profits, if any, on such investments shall accumulate in such account.  Moneys in such account shall be applied by the Administrative Agent to reimburse the applicable Issuing Lender for Letter of Credit Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Company for the Letter of Credit Liabilities at such time or, if the maturity of the Loans has been accelerated, be applied to satisfy other obligations of the Company under this Agreement.  If the Company is required to provide an amount of Cash Collateral hereunder as a result of the occurrence and continuance of an Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to the Company within three Euro-Dollar Business Days after all Events of Default have been cured or waived.

 

(h)                       From time to time, the Company may, with the consent of the Administrative Agent (which consent shall not be unreasonably withheld or delayed) and by notice to the Lenders, designate as additional Issuing Lenders one or more Lenders that agree to serve in such capacity as provided below.  The acceptance by a Lender of any appointment as an Issuing Lender hereunder shall be evidenced by an instrument, which shall be in a form reasonably satisfactory to the Company, such Lender and the Administrative Agent, shall set forth the Letter of Credit Commitment of such Lender and shall be executed by such Lender, the Company and the Administrative Agent and, from and after the effective date of such agreement (i) such Lender shall have all the rights and obligations of an Issuing Lender under this Agreement and (ii) references herein to the term “Issuing Lender” shall be deemed to include such Lender in its capacity as an Issuing Lender.

 

Section 2.20.  Defaulting Lenders.  (a) Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender:

 

(i)                                     Facility Fees shall cease to accrue, or to be payable by the Company, on the Commitment of such Defaulting Lender pursuant to Section 2.08(a) for the account of such Defaulting Lender or otherwise;

 

(ii)                                  the Commitment or Outstanding Committed Amount of such Defaulting Lender shall not be included in determining whether any Lender, the Required Lenders or all Lenders have taken or may take any action hereunder (including any consent to any amendment, waiver or

 

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other modification pursuant to Section 10.05); provided, however, that this clause (ii) shall not (subject to Section 10.05) apply to the vote of a Defaulting Lender in the case of an amendment, waiver or other modification specifically requiring the consent of such Lender or each Lender affected thereby (and in circumstances where the consent of “all Lenders” is required, such Defaulting Lender’s vote shall not be included except (A) such Defaulting Lender’s Commitment may not be increased or extended without its consent and (B) the principal amount of, or interest or fees payable on, Loans or Letter of Credit Borrowings may not be reduced or excused or the scheduled date of payment may not be postponed as to such Defaulting Lender without such Defaulting Lender’s consent); and

 

(iii)                               if any Letter of Credit Liabilities exist at the time such Lender becomes a Defaulting Lender then:

 

(A)                               all or any part of the Letter of Credit Liabilities of such Defaulting Lender shall be reallocated among the non-Defaulting Lenders in accordance with their respective Pro Rata Shares but only to the extent that after giving effect to such reallocation the Outstanding Committed Amount of each non-Defaulting Lender does not exceed such Lender’s Commitment;

 

(B)                               if the reallocation described in clause (A) above cannot, or can only partially, be effected, the Company shall within three Domestic Business Days following notice by the Administrative Agent, Cash Collateralize for the benefit of the Issuing Lenders only the Company’s obligations corresponding to such Defaulting Lender’s Letter of Credit Liabilities (after giving effect to any partial reallocation pursuant to clause (A) above) in accordance with the procedures set forth in Section 2.19(g) for so long as such Letter of Credit Liabilities are outstanding;

 

(C)                               if the Company Cash Collateralizes any portion of such Defaulting Lender’s Letter of Credit Liabilities pursuant to clause (B) above, the Company shall not be required to pay any fees to such Defaulting Lender pursuant to Section 2.08(b) with respect to such Defaulting Lender’s Letter of Credit Liabilities during the period such Defaulting Lender’s Letter of Credit Liabilities are Cash Collateralized;

 

(D)                               if the Letter of Credit Liabilities of the non-Defaulting Lenders are reallocated pursuant to clause (A) above, then the fees payable to the Lenders pursuant to Section 2.08(b) shall be adjusted in accordance with such non-Defaulting Lenders’ Pro Rata Shares; and

 

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(E)                                if all or any portion of such Defaulting Lender’s Letter of Credit Liabilities are neither reallocated nor Cash Collateralized pursuant to Section 2.20(a)(iii)(A) or Section 2.20(a)(iii)(B) above, then, without prejudice to any rights or remedies of any Issuing Lender or any other Lender hereunder, all Letter of Credit Fees payable under Section 2.08(b) with respect to such Defaulting Lender’s Letter of Credit Liabilities shall be payable to the Issuing Lenders until and to the extent that such Letter of Credit Liabilities is reallocated and/or Cash Collateralized; and

 

(iv)                              any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Section 6.03 or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 10.04 shall be applied, in lieu of being distributed to such Defaulting Lender, at such time or times as may be determined by the Administrative Agent as follows:  first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to any Issuing Lender hereunder; third, to Cash Collateralize the Issuing Lenders’ Letter of Credit Liabilities with respect to such Defaulting Lender in accordance with this Section; fourth, as any Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; fifth, if so determined by the Administrative Agent and the Company, to be held in a deposit account and released pro rata in order to (x) satisfy such Defaulting Lender’s potential future funding obligations with respect to Loans under this Agreement and (y) Cash Collateralize the Issuing Lenders’ future Letter of Credit Liabilities with respect to such Defaulting Lender with respect to future Letters of Credit issued under this Agreement, in accordance with this Section; sixth, to the payment of any amounts owing to the Lenders or the Issuing Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender or any Issuing Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement or under any other Loan Document; seventh, so long as no Default or Event of Default exists, to the payment of any amounts owing to any Borrower as a result of any judgment of a court of competent jurisdiction obtained by such Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement or under any other Loan Document; and eighth, to such Defaulting Lender or as otherwise directed by a court of competent 

 

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jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Loans or Letter of Credit Disbursements in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made or the related Letters of Credit were issued at a time when the conditions set forth in Section 3.02 were satisfied or waived, such payment shall be applied solely to pay the Loans of, and Letter of Credit Disbursements owed to, all non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or Letter of Credit Disbursements owed to, such Defaulting Lender until such time as all Loans and funded and unfunded participations in the Borrower’s obligations corresponding to such Defaulting Lender’s Letter of Credit Liabilities are held by the Lenders pro rata in accordance with the Commitments without giving effect to clause (iii) above. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to this Section shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

 

(b)                       So long as any Lender is a Defaulting Lender, no Issuing Lender shall be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the Defaulting Lender’s related exposure and its then outstanding Letter of Credit Liabilities will be 100% covered in accordance with the terms of this Agreement by the Commitments of the non-Defaulting Lenders and/or Cash Collateral will be provided by the Company in accordance with Section 2.20(a)(iii), and participating interests in any newly issued or increased Letter of Credit shall be allocated among non-Defaulting Lenders in a manner consistent with Section 2.20(a)(iii)(A) (and such Defaulting Lender shall not participate therein).

 

(c)                        If (i) a Bankruptcy Event or a Bail-In Action with respect to a Lender Parent shall occur following the date hereof and for so long as such event shall continue or (ii) any Issuing Lender 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, no Issuing Lender shall be required to issue, amend or increase any Letter of Credit, unless the Issuing Lenders shall have entered into arrangements with the Company or such Lender, satisfactory to each Issuing Lender, to defease any risk to it in respect of such Lender hereunder.

 

(d)                       In the event that the Administrative Agent, the Company and each Issuing Lender agrees that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then the Letter of Credit Liabilities of the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment and on such date such Lender shall purchase at par such of the Committed Loans of the other Lenders as the Administrative Agent shall 

 

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determine may be necessary in order for such Lender to hold such Committed Loans in accordance with its Pro Rata Share.

 

Section 2.21.  Incremental Increase in Commitments.  (a)  At any time, if no Event of Default shall have occurred and be continuing, the Company may, if it so elects but subject to due authorization by all necessary corporate action, increase the aggregate amount of the Commitments (the “Incremental Commitments”), either by designating one or more financial institutions not theretofore Lenders to become a Lender (such designation to be effective only with the prior written consent of the Administrative Agent and each Issuing Lender, which consent will not be unreasonably withheld or delayed), or by agreeing with one or more existing Lenders that such Lender’s Commitment shall be increased.  The Incremental Commitments shall be treated as Commitments for all purposes under this Agreement, except as specifically addressed herein.  No Lender shall be obligated to make any Incremental Commitment unless it shall elect to do so in its sole and absolute discretion in response to the Company’s request.

 

(b)                       Upon execution and delivery by the Company and such Lender or other financial institution of an instrument (the “Incremental Commitment Notice”) in form reasonably satisfactory to the Administrative Agent (which instrument shall specify the amount of each Commitment), such existing Lender shall have a Commitment as therein set forth or such other financial institution shall become a Lender with a Commitment as therein set forth and all the rights and obligations of a Lender with such a Commitment hereunder; provided that:

 

(i)                                     the Company shall provide prompt notice of such increase to the Administrative Agent, who shall promptly notify the Lenders;

 

(ii)                                  the amount of such Incremental Commitment, together with all other increases in the aggregate amount of the Commitments pursuant to this Section 2.21 since the date of this Agreement, shall not exceed $500,000,000; and

 

(iii)                               the Letter of Credit Sublimit and Alternative Currency Sublimit shall each be increased by an amount which bears the same ratio to the Increased Commitments as the Letter of Credit Sublimit and Alternative Currency Sublimit, respectively, bears to the aggregate Commitments then existing.

 

Section 2.22.  Termination Date Extension.  (a)  The Company may, by notice to the Administrative Agent given not less than 30 days prior to an anniversary of the Closing Date, request that the Lenders extend the Termination Date for an additional one-year period, in each such case; provided that (i) the Company shall not be permitted to request any such extension more than twice during the term of this Agreement and (ii) in no event shall such request be made

 

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more than once in any calendar year.  Upon receipt of any such notice the Administrative Agent shall promptly notify each Lender thereof.  Each Lender shall respond to such request in writing within 20 calendar days after such request and any failure of a Lender to respond shall be deemed to be a denial of such request.  If the Required Lenders agree to such extension, the Termination Date shall be extended to the date that is one year after the Termination Date then in effect subject, with respect to each Non-Extending Lender, to the provisions of Section 2.22(b); provided that, any such extension shall become effective on the applicable anniversary date of the Closing Date.

 

(b)                       If any Lender does not consent to any extension request pursuant to Section 2.22(a) (a “Non-Extending Lender”) but the Required Lenders agree to such extension (each such Lender, an “Extending Lender”), then (i) the Termination Date for each Extending Lender shall be extended to the date specified in the Company’s extension request and (ii) the Commitments of each Non-Extending Lender shall, subject to the terms of Section 8.06, continue until the Termination Date for such Non-Extending Lender in effect prior to such extension.

 

(c)                        Notwithstanding the terms of Section 10.05, the Company and the Administrative Agent shall be entitled to enter into any amendments to this Agreement that the Administrative Agent believes are necessary to appropriately reflect, or provide for the integration of, any extension of a Termination Date pursuant to this Section 2.22.

 

ARTICLE 3
 CONDITIONS

 

Section 3.01.  Closing.  The closing hereunder shall occur upon receipt by the Administrative Agent of the following documents, each dated the Closing Date unless otherwise indicated:

 

(a)                       the Administrative Agent (or its counsel) shall have received from each party hereto either (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include telecopy transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement;

 

(b)                       (i) an opinion of Weil, Gotshal & Manges, LLP, counsel for the Obligors, substantially in the form of Exhibit E-1 hereto and covering such additional matters relating to the transactions contemplated hereby as the Required Lenders may reasonably request, and (ii) an opinion of Baker & McKenzie CVBA/SCRL, Belgium counsel for Estée Lauder NV, substantially in the form of Exhibit E-2 hereto and covering such additional matters relating to the transactions contemplated hereby as the Required Lenders may reasonably request;

 

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(c)                        the Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Closing Date, including reimbursement or payment of all reasonable out-of-pocket expenses to be reimbursed or paid by the Company;

 

(d)                       all documents the Administrative Agent may reasonably request relating to the existence of each of the Company and Estée Lauder NV, the corporate authority for and the validity of the execution and delivery of this Agreement and the Notes, and any other matters relevant hereto, all in form and substance satisfactory to the Administrative Agent;

 

(e)                        the Administrative Agent shall have received evidence reasonably satisfactory to it that all principal of any loans outstanding under, and all accrued interest and fees under, the Existing Credit Agreement shall have been paid in full and that the commitments under the Existing Credit Agreement have been terminated;

 

(f)                         the Administrative Agent shall have received a certificate of an authorized officer of the Company certifying as to the satisfaction of the conditions set forth in clauses (c) and (d) of Section 3.02 (provided that with respect to clause (d) such certification shall apply to all representations and warranties);

 

(g)                        receipt by the Lenders of all documentation and other information required by bank regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the Patriot Act; and

 

(h)                       to the extent the Company or any Eligible Subsidiary on the Closing Date qualifies as a “legal entity customer” under the Beneficial Ownership Regulation, at least five days prior to the Closing Date, any Lender that has requested, in a written notice to the Company, a Beneficial Ownership Certification in relation to the Company or such Eligible Subsidiary shall have received such Beneficial Ownership Certification (provided that, upon the execution and delivery by such Lender of its signature page to this Agreement, the condition set forth in this clause (h) shall be deemed to be satisfied).

 

The Administrative Agent shall promptly notify the Company and the Lenders of the Closing Date, and such notice shall be conclusive and binding on all parties hereto.

 

Section 3.02.  Borrowings and Issuances of Letters of Credit.  The obligation of any Lender to make a Loan on the occasion of any Borrowing and the obligation of any Issuing Lender to issue (or renew or extend the term of ) any Letter of Credit is subject to the satisfaction of the following conditions:

 

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(a)                       receipt by the Administrative Agent of a Notice of Borrowing as required by Section 2.02 or Section 2.03, or receipt by the applicable Issuing Lender of a Notice of Issuance as required by Section 2.19, as the case may be;

 

(b)                       the fact that, immediately after such Borrowing or issuance of such Letter of Credit (i) the Total Outstanding Amount will not exceed the aggregate amount of the Commitments, (ii) the aggregate amount of Letter of Credit Liabilities will not exceed the Letter of Credit Sublimit, (iii) the sum of the aggregate Dollar Amount of the aggregate principal amount of all outstanding Committed Australian Dollar Loans, Committed Canadian Dollar Loans, Committed HK Dollar Loans and Committed Alternative Currency Loans plus the aggregate Dollar Amount of the aggregate Letter of Credit Liabilities for Letters of Credit in Australian Dollars, Canadian Dollars, HK Dollars or an Alternative Currency shall not exceed the Alternative Currency Sublimit and (iv) the sum of (x) the aggregate undrawn amount of all outstanding Letters of Credit issued by any Issuing Lender plus (y) the aggregate amount of all Letter of Credit Disbursements made by such Issuing Lender that have not yet been reimbursed by or on behalf of the Borrowers at such time shall not exceed such Issuing Lender’s Letter of Credit Commitment; provided that any Issuing Lender may agree, in its sole discretion, to issue Letters of Credit in excess of its Letter of Credit Commitment, so long as after giving effect to such issuance, clauses (i), (ii) and (iii) of the immediately preceding proviso are satisfied;

 

(c)                        the fact that, immediately before and after such Borrowing or issuance of such Letter of Credit, no Default shall have occurred and be continuing;

 

(d)                       the fact that the representations and warranties of the Company (and, in the case of a Borrowing or an issuance of a Letter of Credit by an Eligible Subsidiary, of such Eligible Subsidiary) contained in this Agreement (other than the representations and warranties in Sections 4.04(c) and 4.05) shall be true in all material respects on and as of the date of such Borrowing or issuance of such Letter of Credit (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, correct and complete in all material respects on and as of such earlier date; provided that if any such representation or warranty is qualified by “materially”, “Material Adverse Effect” or a similar term, such representation and warranty (as so qualified) shall be true and correct in all respects); and

 

(e)                        the closing shall have occurred in accordance with Section 3.01.

 

Each Borrowing and issuance of a Letter of Credit hereunder shall be deemed to be a representation and warranty by the Company (and, in the case of a Borrowing or an issuance of a Letter of Credit by an Eligible Subsidiary, of such 

 

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Eligible Subsidiary) on the date of such Borrowing as to the facts specified in clauses (b), (c) and (d) of this Section.

 

Section 3.03.  First Borrowing by Each Eligible Subsidiary.  The obligation of each Lender to make a Loan, and the obligation of each Issuing Lender to issue a Letter of Credit, on the occasion of the first Borrowing by or issuance of a Letter of Credit for the account of each Eligible Subsidiary is subject to the satisfaction of the following further conditions:

 

(a)                       receipt by the Administrative Agent of an opinion of counsel for such Eligible Subsidiary reasonably acceptable to the Administrative Agent covering such matters relating to the transactions contemplated hereby as the Lenders may reasonably request;

 

(b)                       receipt by the Administrative Agent of all documents which it may reasonably request relating to the existence of such Eligible Subsidiary, the corporate authority of and the validity of the execution and delivery of the Election to Participate, this Agreement and the Notes (if any) of such Eligible Subsidiary, and any other matters relevant thereto, all in form and substance reasonably satisfactory to the Administrative Agent;

 

(c)                                  receipt by the Lenders of all documentation and other information required by bank regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the Patriot Act; and

 

(d)                                 to the extent such Eligible Subsidiary qualifies as a “legal entity customer” under the Beneficial Ownership Regulation, at least five days prior to the first Borrowing by, or issuance of a Letter of Credit for the account of, such Eligible Subsidiary, any Lender that has requested, in a written notice to the Company, a Beneficial Ownership Certification in relation to such Eligible Subsidiary shall have received such Beneficial Ownership Certification.

 

Section 3.04.  Existing Credit Agreement.  (a) On the Closing Date, the “Commitments” and the “Alternative Currency Commitments”, if any, as defined in the Existing Credit Agreement shall terminate.

 

(b)                       The Lenders that are parties to the Existing Credit Agreement, comprising the “Required Lenders” as defined therein, hereby waive any requirement of notice of termination of the “Commitments” (as defined in the Existing Credit Agreement) pursuant to Section 2.09 thereof.

 

ARTICLE 4
 REPRESENTATIONS AND WARRANTIES

 

The Company represents and warrants that:

 

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Section 4.01.  Corporate Existence and Power.  Each Obligor is an organization duly organized or formed, validly existing and in good standing under the laws of the jurisdiction of its organization, and has all requisite powers and all governmental licenses, authorizations, consents and approvals required to carry on its business as now conducted, except to the extent that the failure to have such licenses, authorizations, consents and approvals could not reasonably be expected to have a Material Adverse Effect.

 

Section 4.02.  Corporate and Governmental Authorization; No Contravention.  The execution, delivery and performance by the Company (and, as applicable, each Eligible Subsidiary) of this Agreement and by the Company (and, as applicable, each Eligible Subsidiary) of the Notes (if any) (A) are within the corporate or other organizational powers of the Company (and, as applicable, each Eligible Subsidiary), (B) have been duly authorized by all necessary corporate or other organizational action, (C) require no action by or in respect of, or filing with, any governmental body, agency or official (other than those which have been made and are in full force and in effect), (D) do not contravene, or constitute a default under, (i) any provision of applicable law or regulation, (ii) the certificate of incorporation, organizational documents or by-laws of the Company (and, as applicable, each Eligible Subsidiary), (iii) any agreement evidencing or governing Debt or of any other agreement or instrument, or (iv) any judgment, injunction, order or decree binding upon the Company or any of its Subsidiaries, except, in the case of clauses (i), (iii) and (iv), as would not reasonably be expected to result in a Material Adverse Effect, and (E) will not result in the creation or imposition of any Lien on any asset of the Company or any of its Subsidiaries.

 

Section 4.03.  Binding Effect.  This Agreement constitutes a valid, legal and binding agreement of each Obligor and each Note (if any), when executed and delivered by the Company (and, as applicable, any Eligible Subsidiary) in accordance with this Agreement, will constitute a valid, legal and binding obligation of the Company (and, as applicable, such Eligible Subsidiary), in each case enforceable in accordance with its terms, except as the same may be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights generally and by general principles of equity, regardless of whether considered in a proceeding in equity or law.

 

Section 4.04.  Financial Information.  (a)  The consolidated balance sheet of the Company and its Consolidated Subsidiaries as of June 30, 2018 and the related consolidated statements of earnings and cash flows for the fiscal year then ended, reported on by KPMG LLP, a copy of which has been delivered to each of the Lenders, fairly present, in all material respects and in conformity with GAAP (except as expressly set forth in the notes thereto), the consolidated financial position of the Company and its Consolidated Subsidiaries as of such date and their consolidated results of operations and cash flows for such fiscal year.

 

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(b)                       [Reserved].

 

(c)                        On the Closing Date, there has been no material adverse change in the business, financial position or results of operations of the Company and its Consolidated Subsidiaries, considered as a whole, since June 30, 2018.

 

Section 4.05.  Litigation.  Except as described in Schedule 4.05 and in the Company’s Form 10-K or Form 10-Q most recently filed with the SEC, there is no action, suit or proceeding pending against, or to the knowledge of any Obligor, overtly threatened against or affecting, the Company or any of its Subsidiaries before any court or arbitrator or any governmental body, agency or official in which there is a reasonable possibility of an adverse decision which could have a Material Adverse Effect, or which in any manner draws into question the validity or enforceability of this Agreement or the Notes (if any).

 

Section 4.06.  Compliance with ERISA.  Except as would not reasonably be expected to result in a Material Adverse Effect, (a) each member of the ERISA Group has fulfilled its obligations under the minimum funding standards of ERISA and the Internal Revenue Code with respect to each Plan and is in compliance with the presently applicable provisions of ERISA and the Internal Revenue Code with respect to each Plan and (b) no member of the ERISA Group has (i) sought a waiver of the minimum funding standard under Section 412 of the Internal Revenue Code in respect of any Plan, (ii) failed to make any contribution or payment to any Plan or Multiemployer Plan, or made any amendment to any Plan, which has resulted or could result in the imposition of a Lien or the posting of a bond or other security under ERISA or the Internal Revenue Code or (iii) incurred any liability under Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA.

 

Section 4.07.  Environmental Matters.  In the ordinary course of its business, the Company reviews the effect of Environmental Laws on the business, operations and properties of the Company and its Subsidiaries, in the course of which it evaluates associated liabilities and costs (including, without limitation, any capital or operating expenditures required for clean-up of properties presently or previously owned, any capital or operating expenditures required to achieve or maintain compliance with Environmental Laws, any costs or liabilities in connection with off-site disposal of wastes or Hazardous Substances, and any actual or potential liabilities under Environmental Laws to third parties, including employees, and any related costs and expenses).  On the basis of this review, the Company has reasonably concluded that such associated liabilities and costs, including the costs of compliance with Environmental Laws, are unlikely to have a Material Adverse Effect.

 

Section 4.08.  Taxes.  Except as would not reasonably be expected to result in a Material Adverse Effect, the Company and its Subsidiaries have filed all United States Federal income tax returns and all other tax returns which are 

 

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required to be filed by them and have paid all taxes due pursuant to such returns or pursuant to any assessment received by the Company or any Subsidiary, other than taxes due pursuant to any such assessment which are being contested in good faith by appropriate proceedings.

 

Section 4.09.  Subsidiaries.  Each of the Company’s corporate Significant Subsidiaries (other than the Eligible Subsidiaries, with respect to which representations and warranties comparable to those set forth in this Section are being made in Section 4.01) is a corporation duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation, and has all corporate or other organizational powers and all governmental licenses, authorizations, consents and approvals required to carry on its business as now conducted, except to the extent that the failure to be or have any of the foregoing could not reasonably be expected to have a Material Adverse Effect.

 

Section 4.10.  Regulatory Restrictions on Borrowing.  No Obligor is an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

 

Section 4.11.  Full Disclosure.

 

(a)                        All information heretofore furnished by each Obligor to the Administrative Agent or any Lender for purposes of or in connection with this Agreement or any transaction contemplated hereby, and all such information hereafter furnished by each Obligor to the Administrative Agent or any Lender, in each case, when taken as a whole, does not or will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances under which such statements were (or hereafter are) made.

 

(b)                       As of the Closing Date, to the best knowledge of the Company or the applicable Eligible Subsidiary, as applicable, the information included in any Beneficial Ownership Certification provided on or prior to the Closing Date to any Lender in connection with this Agreement is true and correct in all respects.

 

Section 4.12.  Anti-Corruption Laws and Sanctions.  Each Borrower has implemented and maintains in effect policies and procedures designed to ensure compliance by such Borrower, its Subsidiaries and their respective directors, officers, employees and agents (in their capacity as such) with Anti-Corruption Laws and applicable Sanctions, and each Borrower, its Subsidiaries and, to the knowledge of such Borrower, their respective officers, employees, directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects.  None of (a) any Borrower, any Subsidiary or, to the knowledge of any Borrower, any of their respective directors, officers or employees, or (b) to the knowledge of any Borrower, any agent of the Borrower or any Subsidiary that will act in any capacity in connection with or benefit from 

 

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the credit facility established hereby, is a Sanctioned Person.  No Borrowing or Letter of Credit, or use of proceeds of the Loans will violate Anti-Corruption Laws or applicable Sanctions.

 

ARTICLE 5
 COVENANTS

 

The Company agrees that, so long as any Lender has any Commitment hereunder or any amount payable in respect of any Loan remains unpaid or any Letter of Credit Liability remains outstanding:

 

Section 5.01.  Information.  The Company will furnish to each of the Lenders:

 

(a)                       as soon as available and in any event within 75 days after the end of each fiscal year of the Company, a consolidated balance sheet of the Company and its Consolidated Subsidiaries as of the end of such fiscal year and the related consolidated statements of earnings and cash flows for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by KPMG LLP or other independent public accountants of nationally recognized standing without any qualification or exception which (i) is of a “going concern” or similar nature or (ii) relates to the limited scope of examination of matters relevant to such financial statements;

 

(b)                       as soon as available and in any event within 40 days after the end of each of the first three fiscal quarters of each fiscal year of the Company, a consolidated balance sheet of the Company and its Consolidated Subsidiaries as of the end of such quarter, the related consolidated statements of earnings for such quarter and the related consolidated statements of earnings and cash flows for the portion of the Company’s fiscal year ended at the end of such quarter, setting forth in the case of such statements of earnings and cash flows, in comparative form the figures for the corresponding quarter (with respect to the statement of earnings only) and the corresponding portion of the Company’s previous fiscal year, all certified (subject to normal year-end adjustments) as to fairness of presentation and GAAP applied on a consistent basis by the chief financial officer or the chief accounting officer of the Company;

 

(c)                        within ten days after any Senior Officer of any Obligor obtains knowledge of any Default, if such Default is then continuing, a certificate of the chief financial officer, the chief accounting officer or the treasurer of the Company setting forth the details thereof and the action which each Obligor is taking or proposes to take with respect thereto;

 

(d)                       within ten days after the mailing thereof to the stockholders of the Company generally, copies of all financial statements, reports and proxy statements so mailed;

 

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(e)                        within ten days after the filing thereof, copies of all registration statements (other than the exhibits thereto and any registration statements on Form S-8 or its equivalent) and reports on Forms 10-K, 10-Q and 8-K (or their equivalents) which the Company shall have filed with the Securities and Exchange Commission; provided that so long as the Company is a reporting company (within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof), the furnishing of such registration statements and reports shall be deemed satisfied upon posting of such registration statements and reports on the SEC’s website (www.sec.gov/edgar);

 

(f)                         if and when any member of the ERISA Group (i) gives or is required to give notice to the PBGC of any “reportable event” (as defined in Section 4043 of ERISA) with respect to any Plan which might constitute grounds for a termination of such Plan under Title IV of ERISA, or knows that the plan administrator of any Plan has given or is required to give notice of any such reportable event, a copy of the notice of such reportable event given or required to be given to the PBGC; (ii) receives notice of complete or partial withdrawal liability under Title IV of ERISA or notice that any Multiemployer Plan is in endangered or critical status, is insolvent or has been terminated, a copy of such notice; (iii) receives notice from the PBGC under Title IV of ERISA of an intent to terminate, impose liability (other than for premiums under Section 4007 of ERISA) in respect of, or appoint a trustee to administer any Plan, a copy of such notice; (iv) applies for a waiver of the minimum funding standard under Section 412 of the Internal Revenue Code, a copy of such application; (v) gives notice of intent to terminate any Plan under Section 4041(c) of ERISA, a copy of such notice and other information filed with the PBGC; (vi) gives notice of withdrawal from any Plan pursuant to Section 4063 of ERISA, a copy of such notice; or (vii) fails to make any payment or contribution to any Plan or Multiemployer Plan or in respect of any Benefit Arrangement or makes any amendment to any Plan or Benefit Arrangement which has resulted or could result in the imposition of a Lien or the posting of a bond or other security, a certificate of the chief financial officer, the chief accounting officer or the treasurer of the Company setting forth details as to such occurrence and action, if any, which the Company or applicable member of the ERISA Group is required or proposes to take, except in the case of any events described in clauses (i) or (ii), which individually or in the aggregate could not reasonably be expected to result in a Material Adverse Effect;

 

(g)                        promptly following any request therefor, information and documentation reasonably requested by the Administrative Agent or any Lender for purposes of compliance with applicable “know your customer” and anti-money laundering rules and regulations, including the Patriot Act and the Beneficial Ownership Regulation;

 

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(h)                       written notice of any change in the information provided in any Beneficial Ownership Certification delivered to such Lender that would result in a change to the list of beneficial owners identified in such certification; and

 

(i)                           from time to time such additional information regarding the financial position or business of the Company and its Subsidiaries as the Administrative Agent, at the request of any Lender, may reasonably request.

 

For purposes of this Section, the Company’s obligation to deliver the items referred to in Sections 5.01(a), (b), (d) and (e) will be deemed satisfied by (i) the electronic delivery to the Administrative Agent of such items, (ii) the posting of such items on a website to which the Lenders have access, and which shall have been designated in a notice delivered to the Lenders and the Administrative Agent or (iii) so long as the Company is a reporting company (within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof), the posting of such items on the SEC’s website (www.sec.gov/edgar) (it being understood that in the case of Section 5.01(b), such posting will be deemed a certification in satisfaction of the requirements of such clause).

 

Section 5.02.  Payment of Obligations.  The Company will pay and discharge, and will cause each Significant Subsidiary to pay and discharge, at or before maturity, all their respective material obligations and liabilities (including, without limitation, tax liabilities and claims of materialmen, warehousemen and the like which if unpaid might by law give rise to a Lien), except where the same may be contested in good faith by appropriate proceedings or to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect, and will maintain, and will cause each Significant Subsidiary to maintain, in accordance with GAAP, appropriate reserves for the accrual of any of the same.

 

Section 5.03.  Insurance.  The Company will, and will cause each of its Significant Subsidiaries to, maintain (either in the name of the Company or in such Significant Subsidiary’s own name), with financially sound and responsible insurance companies or pursuant to a self-insurance program, insurance on all their respective properties in at least such amounts, against at least such risks and with such risk retention as are usually maintained, insured against or retained, as the case may be, in the same general area by companies of established repute engaged in the same or a similar business; and will furnish to the Lenders, upon request from the Administrative Agent, information presented in reasonable detail as to the insurance so carried.

 

Section 5.04.  Conduct of Business and Maintenance of Existence.  The Company will preserve, renew and keep in full force and effect, and will cause each Significant Subsidiary to preserve, renew and keep in full force and effect its corporate existence and rights, privileges and franchises necessary or desirable in

 

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the normal conduct of business (except, solely with respect to any Significant Subsidiary that is not a Borrower, to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect); provided that nothing in this Section 5.04 shall prohibit the merger of a Significant Subsidiary into the Company or the merger or consolidation of a Significant Subsidiary with or into another Person if the corporation surviving such consolidation or merger is a Subsidiary and if, in each case, after giving effect thereto, no Default shall have occurred and be continuing.

 

Section 5.05.  Compliance with Laws.

 

(a)        The Company will comply, and cause each Significant Subsidiary to comply, in all material respects with all applicable laws, ordinances, rules, regulations, and requirements of governmental authorities (including, without limitation, Environmental Laws and ERISA and the rules and regulations thereunder) except where the necessity of compliance therewith is contested in good faith by appropriate proceedings or to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.

 

(b)        The Company will maintain in effect and enforce policies and procedures designed to ensure compliance by the Company, its Subsidiaries and their respective directors, officers, employees, and agents with Anti-Corruption Laws and applicable Sanctions.

 

Section 5.06.  Inspection of Property, Books and Records.  The Company will keep, and will cause each Significant Subsidiary to keep, proper books of record and account in which full, true and correct entries shall be made in all material respects of all dealings and transactions in relation to its business and activities; and will permit, and will cause each Eligible Subsidiary to permit, representatives of any Lender at such Lender’s expense to visit and inspect any of its properties, to examine and make abstracts from any of its books and records and to discuss its affairs, finances and accounts with its officers, employees and independent public accountants, all at such reasonable times and as often as may reasonably be desired; provided that (i) such inspections do not unreasonably interfere with the operations of such Person and (ii) such Lender is subject to the Company’s confidentiality obligations.

 

Section 5.07.  Mergers and Sales of Assets.  The Company will not, (i) consolidate or merge with or into any other Person or (ii) sell, lease or otherwise transfer, directly or indirectly, all or substantially all of the assets of the Company and its Subsidiaries, taken as a whole, to any other Person; provided that the Company may merge with another Person if (x) the Company is the corporation surviving such merger and (y) after giving effect to such merger, no Default shall have occurred and be continuing.

 

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Section 5.08.  Use of Proceeds.  The proceeds of the Loans made under this Agreement will be used by each Borrower for general corporate purposes as shall be determined by the Company from time to time.  None of such proceeds will be used, directly or indirectly, for the purpose, whether immediate, incidental or ultimate, of buying or carrying any “margin stock” within the meaning of Regulation U.  No Borrower will request any Borrowing or Letter of Credit, and the Borrowers shall not, directly or, to their knowledge, indirectly, use the proceeds of any Borrowing or Letter of Credit, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other Person (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of Anti-Corruption Laws, (B) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, except to the extent permissible for a Person required to comply with Sanctions or (C) in any manner that would result in the violation of any Sanctions by any party hereto.

 

Section 5.09.  Negative Pledge.  The Company will not, and will not permit any Subsidiary to, create, assume or suffer to exist any Lien on any asset now owned or hereafter acquired by it, except:

 

(a)        Liens existing on the date of this Agreement securing Debt outstanding on the date of this Agreement in an aggregate principal or face amount not exceeding $50,000,000;

 

(b)        any Lien existing on any asset of any Person at the time such Person becomes a Subsidiary and not created in contemplation of such event;

 

(c)        any Lien on any asset securing Debt incurred or assumed for the purpose of financing all or any part of the cost of acquiring or constructing such asset; provided that such Lien attaches to such asset concurrently with or within 90 days after the acquisition or substantial completion of construction thereof, as the case may be;

 

(d)        any Lien on any asset of any Person existing at the time such Person is merged or consolidated with or into the Company or a Subsidiary and not created in contemplation of such event;

 

(e)        any Lien existing on any asset prior to the acquisition thereof by the Company or a Subsidiary and not created in contemplation of such acquisition;

 

(f)        any Lien arising out of the refinancing, extension, renewal or refunding of any Debt secured by any Lien permitted by any of the foregoing clauses of this Section; provided that such Debt is not increased and is not secured by any additional assets;

 

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(g)        Liens imposed by any governmental authority for taxes, assessments, governmental charges, duties or levies not yet due or which are being contested in good faith and by appropriate proceedings; provided adequate reserves with respect thereto are maintained on the books of the Company and its Consolidated Subsidiaries in accordance with GAAP;

 

(h)        Customary Permitted Liens;

 

(i)         Liens (other than Liens described in clauses (g) or (h)) arising in the ordinary course of its business which (i) do not secure Debt or Derivatives Obligations, (ii) do not secure any obligation in an amount exceeding $300,000,000 and (iii) do not in the aggregate materially detract from the value of its assets or materially impair the use thereof in the operation of its business;

 

(j)         Liens on cash and cash equivalents securing Derivatives Obligations; provided that the aggregate amount of cash and cash equivalents subject to such Liens may at no time exceed $100,000,000;

 

(k)        Liens securing Permitted Securitization Financings in an aggregate principal or face amount at any date not to exceed the greater of (i) $400,000,000 and (ii) 15% of Consolidated Tangible Net Worth at the last day of the most recently ended fiscal quarter; and.

 

(l)         Liens not otherwise permitted by the foregoing clauses of this Section securing Debt in an aggregate principal or face amount at any date not to exceed the greater of (i) $400,000,000 and (ii) 15% of Consolidated Tangible Net Worth at the last day of the most recently ended fiscal quarter.

 

Section 5.10.  Debt of Subsidiaries.  The Company will not permit any of its Subsidiaries to incur or at any time be liable with respect to any Debt other than (i) Debt owing to the Company or a wholly owned Subsidiary, (ii) Debt created under this Agreement, (iii) any commercial paper issued by an Eligible Subsidiary the credit support for which is provided by this Agreement, (iv) Debt in respect of trade letters of credit, (v) other Debt in an aggregate principal amount outstanding not exceeding $600,000,000, (vi) Permitted Securitization Financings in an aggregate principal or face amount at any date not to exceed the greater of (A) $400,000,000 and (B) 15% of Consolidated Tangible Net Worth at the last day of the most recently ended fiscal quarter and (vii) extensions, refinancings, renewals or replacements of the Debt permitted above which, in the case of any such extension, refinancing, renewal or replacement, does not increase the amount of the Debt being extended, refinanced, renewed or replaced, other than amounts incurred to pay the costs of such extension, refinancing, renewal or replacement.  For purposes of this Section any preferred stock of a Subsidiary held by a Person other than the Company or a Wholly-Owned Subsidiary shall be included, at the higher of its voluntary or involuntary liquidation value, in the “Debt” of such Subsidiary.

 

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Section 5.11.  Transactions with Affiliates.  The Company will not, and will not permit any Subsidiary to, directly or indirectly, pay any funds to or for the account of, make any investment (whether by acquisition of stock or indebtedness, by loan, advance, transfer of property, guarantee or other agreement to pay, purchase or service, directly or indirectly, any Debt, or otherwise) in, lease, sell, transfer or otherwise dispose of any assets, tangible or intangible, to, or participate in, or effect, any transaction with, any Affiliate (any such payment, investment, lease, sale, transfer, other disposition or transaction, an “Affiliate Transaction”) except on an arms-length basis on terms at least as favorable to the Company or such Subsidiary as terms that could have been obtained from a third party who was not an Affiliate; provided that the foregoing provisions of this Section shall not prohibit (i) any such Person from declaring or paying any lawful dividend or other payment ratably in respect of all of its capital stock of the relevant class so long as, after giving effect thereto, no Default or Event of Default shall have occurred and be continuing, (ii) any Affiliate Transaction approved by the independent directors (or any committee thereof) of the board of directors of the Company or any Subsidiary which is a party to such Affiliate Transaction, (iii) any Affiliate Transaction disclosed in the Proxy Statement under the heading “Certain Relationships and Related Transactions” or (iv) any Affiliate Transaction (other than any Affiliate Transaction described in clauses (i), (ii) or (iii)) in which the amount involved does not exceed $15,000,000.

 

ARTICLE 6
 DEFAULTS

 

Section 6.01.  Events of Default.  If one or more of the following events (“Events of Default”) shall have occurred and be continuing:

 

(a)        any Borrower shall fail to pay when due any principal of any Loan or any Reimbursement Obligation or shall fail to pay any interest, fees or other amounts payable hereunder within five Domestic Business Days of the due date thereof;

 

(b)        the Company shall fail to observe or perform any covenant contained in Article 5, other than those contained in Sections 5.01 through 5.03, 5.05, 5.06 and 5.11; provided that with respect to Section 5.04, this clause (b) shall apply only with respect to the corporate existence of the Company;

 

(c)        any Obligor shall fail to observe or perform any covenant or agreement contained in this Agreement (other than those covered by clause (a) or (b) above) for 30 days after notice thereof has been given to the Company by the Administrative Agent at the request of any Lender;

 

(d)        any representation, warranty, certification or statement made by any Obligor in this Agreement or in any certificate, financial statement or other 

 

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document delivered pursuant to this Agreement shall prove to have been incorrect in any material respect when made (or deemed made);

 

(e)        the Company or any Subsidiary shall fail to make any payment in respect of any Material Financial Obligations when due or within any applicable grace period;

 

(f)        any event or condition shall occur which results in the acceleration of the maturity of any Material Debt;

 

(g)        the Company or any Significant Subsidiary shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its property, or shall consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other proceeding commenced against it, or shall make a general assignment for the benefit of creditors, or shall fail generally to pay its debts as they become due, or shall take any corporate action to authorize any of the foregoing;

 

(h)        an involuntary case or other proceeding shall be commenced against the Company or any Significant Subsidiary seeking liquidation, reorganization or other relief with respect to it or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its property, and such involuntary case or other proceeding shall remain undismissed and unstayed for a period of 90 days; or an order for relief shall be entered against the Company or any Significant Subsidiary under the federal bankruptcy laws as now or hereafter in effect;

 

(i)         any member of the ERISA Group shall fail to pay when due an amount or amounts which it shall have become liable to pay under Title IV of ERISA; or notice of intent to terminate a Plan shall be filed under Title IV of ERISA by any member of the ERISA Group, any plan administrator or any combination of the foregoing; or the PBGC shall institute proceedings under Title IV of ERISA to terminate, to impose liability (other than for premiums under Section 4007 of ERISA) in respect of, or to cause a trustee to be appointed to administer any Plan; or a condition shall exist by reason of which the PBGC would be entitled to obtain a decree adjudicating that any Plan must be terminated; or there shall occur a complete or partial withdrawal from, or a default within the meaning of Section 4219(c)(5) of ERISA with respect to, one or more Multiemployer Plans; and any such event or events described in this Section 6.01(i) individually or in the aggregate could reasonably be expected to result in a Material Adverse Effect;

 

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(j)         judgments or orders for the payment of money in excess of $175,000,000 (net of any insurance with respect to which the carrier has acknowledged coverage) shall be rendered against the Company or any Subsidiary and such judgments or orders shall continue unsatisfied and unstayed for a period of 30 days;

 

(k)        there occurs a Change of Control; or

 

(l)         the Guaranty or any provision thereof shall be found or held invalid or unenforceable by a court of competent jurisdiction or the Company shall have repudiated its obligations under the Guaranty; then, following the occurrence and during the continuance of every such event, the Administrative Agent shall (i) if requested by Required Lenders, by notice to the Company terminate the Commitments and they shall thereupon terminate, and (ii) if requested by Lenders holding more than 50% of the aggregate principal Dollar Amount of the Loans, by notice to the Company declare the Loans (together with accrued interest thereon) to be, and the Loans shall thereupon become, immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by each Obligor; provided that in the case of any of the Events of Default specified in clause 6.01(g) or 6.01(h) above with respect to the Company or any other applicable Obligor, without any notice to any Obligor or any other act by the Administrative Agent or the Lenders, the Commitments shall thereupon terminate and the Loans (together with accrued interest thereon) shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by each Obligor.

 

Section 6.02.  Notice of Default.  The Administrative Agent shall give notice to the Company under Section 6.01(c) promptly upon being requested to do so by any Lender and shall thereupon notify all the Lenders thereof.

 

Section 6.03.  Application of Proceeds.  Notwithstanding anything herein to the contrary, following the occurrence and during the continuance of an Event of Default, and notice thereof to the Administrative Agent by the Company or the Required Lenders, all payments received on account of the obligations hereunder shall, subject to  Section 2.20, be applied by the Administrative Agent as follows:

 

(i)            first, to payment of that portion of the obligations constituting fees, indemnities, expenses and other amounts payable to the Administrative Agent (including fees and disbursements and other charges of counsel to the Administrative Agent payable under Section 10.03 and amounts pursuant to Section 7.08 payable to the Administrative Agent in its capacity as such);

 

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(ii)           second, to payment of that portion of the obligations constituting fees, expenses, indemnities and other amounts (other than principal, reimbursement obligations in respect of Letter of Credit Disbursements, interest and Letter of Credit fees) payable to the Lenders and the Issuing Lenders (including fees and disbursements and other charges of counsel to the Lenders and the Issuing Lenders payable under Section 10.03) arising under the Loan Documents, ratably among them in proportion to the respective amounts described in this clause (ii) payable to them;

 

(iii)          third, to payment of that portion of the obligations constituting accrued and unpaid Letter of Credit fees and charges and interest on the Loans and unreimbursed Letter of Credit Disbursements, ratably among the Lenders and the Issuing Lenders in proportion to the respective amounts described in this clause (iii) payable to them;

 

(iv)          fourth, (A) to payment of that portion of the obligations constituting unpaid principal of the Loans and unreimbursed Letter of Credit Disbursements and (B) to Cash Collateralize that portion of Letter of Credit exposure comprising the undrawn amount of Letters of Credit to the extent not otherwise Cash Collateralized by the Company pursuant to Section 2.19 or Section 2.20, ratably among the Lenders and the Issuing Lenders in proportion to the respective amounts described in this clause (iv) payable to them; provided that (x) any such amounts applied pursuant to subclause (B) above shall be paid to the Administrative Agent for the ratable account of the applicable Issuing Lenders to Cash Collateralize obligations in respect of Letters of Credit, (y) subject to Section 2.19 or Section 2.20, amounts used to Cash Collateralize the aggregate amount of Letters of Credit pursuant to this clause (iv) shall be used to satisfy drawings under such Letters of Credit as they occur and (z) upon the expiration of any Letter of Credit (without any pending drawings), the pro rata share of Cash Collateral shall be distributed to the other obligations, if any, in the order set forth in this Section 6.03;

 

(v)           fifth, to the payment in full of all other obligations due and payable under this Agreement, in each case ratably among the Administrative Agent, the Lenders and the Issuing Lenders based upon the respective aggregate amounts of all such obligations owing to them in accordance with the respective amounts thereof then due and payable; and

 

(vi)          finally, the balance, if any, after all obligations have been indefeasibly paid in full, to the Company or as otherwise required by law.

 

If any amount remains on deposit as Cash Collateral after all Letters of Credit have either been fully drawn or expired (without any pending drawings), such 

 

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remaining amount shall be applied to the other obligations due and payable under this Agreement, if any, in the order set forth above.

 

ARTICLE 7
 THE ADMINISTRATIVE AGENT

 

Section 7.01.  Appointment and Authorizations.  Each of the Lenders and each of the Issuing Lenders hereby irrevocably appoints the Administrative Agent and its successors and assigns as its agent and authorizes the Administrative Agent to take such actions as agent on its behalf under this Agreement and the other Loan Documents and to exercise such powers as are delegated to the Administrative Agent by the terms under such agreements, together with such actions and powers as are reasonably incidental thereto.  Without limiting the foregoing, each Lender hereby authorizes the Administrative Agent to execute and deliver, and to perform its obligations under, each of the Loan Documents to which the Administrative Agent is a party, to exercise all rights, powers and remedies that the Administrative Agent may have under such Loan Documents.

 

Section 7.02.  Agents and Affiliates.  The bank serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor for or in any other advisory capacity for and generally engage in any kind of banking, trust or other business with the Company or any Subsidiary or any Affiliate of the foregoing as if it were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.

 

Section 7.03.  Action by Agents.  The Administrative Agent shall not have any duties or obligations except those expressly set forth herein.  In performing its functions and duties hereunder and under the other Loan Documents, the Administrative Agent is acting solely on behalf of the Lenders (except in limited circumstances expressly provided for herein relating to the maintenance of the Register), and its duties are entirely mechanical and administrative in nature.  Without limiting the generality of the foregoing, (a) the Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing; additionally, each Lender agrees that it will not assert any claim against the Administrative Agent based on an alleged breach of fiduciary duty by the Administrative Agent in connection with this Agreement and the transactions contemplated hereby, (b) the Administrative Agent shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby that the Administrative Agent is required to exercise in writing as directed by the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in 

 

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Section 10.05), and (c) except as expressly set forth herein, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Company or any of its Subsidiaries that is communicated to or obtained by the bank serving as Administrative Agent or any of its Affiliates in any capacity.  The Administrative Agent shall not be liable for (i) any action taken or not taken by it under or in connection with this Agreement or the other Loan Documents with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 10.05) or in the absence of its own gross negligence or willful misconduct or (ii) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by any Borrower or any officer thereof contained in this Agreement or any other Loan Document or in any certificate, report, statement or other document referred to or provided for in, or received by the Administrative Agent under or in connection with, this Agreement or any other Loan Document or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or for any failure of any Borrower to perform its obligations hereunder or thereunder (except to the extent that a court of competent jurisdiction determines in a final and nonappealable judgment that the Administrative Agent acted with gross negligence or willful misconduct).  The Administrative Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof is given to the Administrative Agent by the Company or a Lender, and the Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with any Loan Document, (ii) the contents of any certificate, report or other document delivered thereunder or in connection therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth in any Loan Document, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article 3 or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.

 

Section 7.04.  Consultation with Experts.  The Administrative Agent shall be entitled to rely upon, and shall not incur any liability under or in respect of this Agreement or any other Loan Document for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person.  The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying thereon.  The Administrative Agent may consult with legal counsel (who may be counsel for any Obligor), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

 

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Section 7.05.  Delegation of Duties.  The Administrative Agent may perform any and all its duties and exercise its rights and powers by or through any one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Related Parties.  The exculpatory provisions of the preceding paragraphs shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent.

 

Section 7.06.  Indemnification.  Each Lender shall, ratably in accordance with its Commitment (or, if at any time the Commitments shall have been terminated, ratably in accordance with the aggregate outstanding principal Dollar Amount of Loans of such Lender), indemnify the Administrative Agent, its affiliates and their respective directors, officers, agents and employees (to the extent not reimbursed by any Obligor but without limiting their obligation to do so) against any cost, expense (including reasonable counsel fees and disbursements), claim, demand, action, loss or liability (except such as result from such indemnitees’ gross negligence or willful misconduct) that such indemnitees may suffer or incur in connection with this Agreement or any action taken or omitted by such indemnitees hereunder.

 

Section 7.07.  Resignation of Administrative Agent.  Subject to the appointment and acceptance of a successor Administrative Agent as provided in this paragraph, the Administrative Agent (a) may resign at any time by giving 30 days’ prior written notice thereof to the Lenders, the Issuing Lenders and the Company and (b) shall resign if requested by the Required Lenders.  Upon any such resignation, the Required Lenders shall have the right to appoint a successor to the Administrative Agent approved by the Company (such approval not to be unreasonably withheld, conditioned or delayed); provided that no approval of the Company shall be necessary if an Event of Default has occurred and is continuing.  If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may, on behalf of the Lenders and the Issuing Lenders, appoint a successor Administrative Agent which shall be a bank with an office in New York, New York, or an Affiliate of any such bank.  Upon the acceptance of its appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents.  Prior to any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the retiring Administrative Agent shall take such action as may be reasonably necessary to assign to the successor

 

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Administrative Agent its rights as Administrative Agent under the Loan Documents.  The fees payable by the Company to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor.  After the Administrative Agent’s resignation hereunder, the provisions of this Article and Section 10.03 shall continue in effect for the benefit of such retiring Administrative Agent, its sub agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Administrative Agent.

 

Section 7.08.  Administrative Agent’s Fees.  The Company shall pay to the Administrative Agent for its own account fees in the amounts and at the times previously agreed upon between the Company and the Administrative Agent.

 

Section 7.09.  Other Agents Not Liable.  Nothing in this Agreement shall impose upon Citibank, N.A., BNP Paribas, Bank of America, N.A. or MUFG Bank, Ltd., in their capacities as Syndication Agents, or JPMorgan Chase Bank, N.A., Citibank, N.A., BNP Paribas Securities Corp., Merrill Lynch, Pierce, Fenner & Smith Incorporated (or any other registered broker-dealer wholly-owned by Bank of America Corporation to which all or substantially all of Bank of America Corporation’s or any of its subsidiaries’ investment banking, commercial lending services or related businesses may be transferred following the date of this Agreement) or MUFG Bank, Ltd., in their capacities as Joint Arrangers and Joint Bookrunners, any duties or responsibilities whatsoever in such capacity under this Agreement or other Loan Document.  No Syndication Agent, Joint Bookrunner and Joint Arranger shall have or deemed to have any fiduciary relationship with any Lender.

 

Section 7.10.  Credit Decision.

 

(a)                       Each Lender acknowledges and agrees that the extensions of credit made hereunder are commercial loans and letters of credit and not investments in a business enterprise or securities.  Each Lender further represents that it is engaged in making, acquiring or holding commercial loans in the ordinary course of its business and has, independently and without reliance upon the Administrative Agent or any other Lender, or any Related Parties of any of the foregoing, and based on such documents and information as it has deemed appropriate made its own credit analysis and decision to enter into this Agreement as a Lender, and to make, acquire or hold Loans hereunder.  Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender, or any Related Parties of any of the foregoing, and based on such documents and information (which may contain material, non-public information within the meaning of the United States securities laws concerning the Company and its Affiliates) as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder and in 

 

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deciding whether or to the extent to which it will continue as a Lender or assign or otherwise transfer its rights, interests and obligations hereunder.

 

(b)                       Each Lender, by delivering its signature page to this Agreement on the Closing Date, or delivering its signature page to an Assignment and Assumption Agreement or any other Loan Document pursuant to which it shall become a Lender hereunder, shall be deemed to have acknowledged receipt of, and consented to and approved, each Loan Document and each other document required to be delivered to, or be approved by or satisfactory to, the Administrative Agent or the Lenders on the Closing Date.

 

Section 7.11.  Posting of Communications.  (a) The Company agrees that the Administrative Agent may, but shall not be obligated to, make any Communications available to the Lenders and the Issuing Lenders by posting the Communications on IntraLinksTM, DebtDomain, SyndTrak, ClearPar or any other electronic platform chosen by the Administrative Agent to be its electronic transmission system (the “Approved Electronic Platform”).

 

(b)                       Although the Approved Electronic Platform and its primary web portal are secured with generally-applicable security procedures and policies implemented or modified by the Administrative Agent from time to time (including, as of the Closing Date, a user ID/password authorization system) and the Approved Electronic Platform is secured through a per-deal authorization method whereby each user may access the Approved Electronic Platform only on a deal-by-deal basis, each of the Lenders, each of the Issuing Lenders and the Company acknowledges and agrees that the distribution of material through an electronic medium is not necessarily secure, that the Administrative Agent is not responsible for approving or vetting the representatives or contacts of any Lender that are added to the Approved Electronic Platform, and that there are confidentiality and other risks associated with such distribution. Each of the Lenders, each of the Issuing Lenders and the Company hereby approves distribution of the Communications through the Approved Electronic Platform and understands and assumes the risks of such distribution.

 

(c)                        THE APPROVED ELECTRONIC PLATFORM AND THE COMMUNICATIONS ARE PROVIDED “AS IS” AND “AS AVAILABLE”. THE APPLICABLE PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE APPROVED ELECTRONIC PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE APPROVED ELECTRONIC PLATFORM AND THE COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE APPLICABLE 

 

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PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE APPROVED ELECTRONIC PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT, ANY JOINT ARRANGER, ANY JOINT BOOKRUNNER, ANY SYNDICATION AGENT OR ANY OF THEIR RESPECTIVE RELATED PARTIES (COLLECTIVELY, “APPLICABLE PARTIES”) HAVE ANY LIABILITY TO ANY BORROWER, ANY LENDER, ANY ISSUING LENDER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF ANY BORROWER’S OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET OR THE APPROVED ELECTRONIC PLATFORM.

 

“Communications” means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of any Borrower pursuant to any Loan Document or the transactions contemplated therein which is distributed by the Administrative Agent, any Lender or any Issuing Lender by means of electronic communications pursuant to this Section, including through an Approved Electronic Platform.

 

(d)                       Each Lender and each Issuing Lender agrees that notice to it (as provided in the next sentence) specifying that Communications have been posted to the Approved Electronic Platform shall constitute effective delivery of the Communications to such Lender for purposes of the Loan Documents. Each Lender and Issuing Lender agrees (i) to notify the Administrative Agent in writing (which could be in the form of electronic communication) from time to time of such Lender’s or Issuing Lender’s (as applicable) email address to which the foregoing notice may be sent by electronic transmission and (ii) that the foregoing notice may be sent to such email address.

 

(e)                        Each of the Lenders, each of the Issuing Lenders and the Company agrees that the Administrative Agent may, but (except as may be required by applicable law) shall not be obligated to, store the Communications on the Approved Electronic Platform in accordance with the Administrative Agent’s generally applicable document retention procedures and policies.

 

(f)                         Nothing herein shall prejudice the right of the Administrative Agent, any Lender or any Issuing Lender to give any notice or other communication pursuant to any Loan Document in any other manner specified in such Loan Document.

 

Section 7.12.  Certain ERISA Matters.  (a) Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the 

 

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Administrative Agent and not, for the avoidance of doubt, to or for the benefit of the Company or any other Obligor, that at least one of the following is and will be true:

 

(i)                                     such Lender is not using “plan assets” (within the meaning of Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments or this Agreement,

 

(ii)                                  the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement,

 

(iii)                               (A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement, or

 

(iv)                              such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.

 

(b)         In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) a Lender has provided another representation, warranty and covenant in accordance with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y)

 

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covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for the benefit of the Company or any other Obligor, that the Administrative Agent is not a fiduciary with respect to the assets of such Lender involved in such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related to hereto or thereto).

 

ARTICLE 8
 CHANGE IN CIRCUMSTANCES

 

Section 8.01.  Basis for Determining Interest Rate Inadequate or Unfair.

 

(a)                       If on or prior to the first day of any Interest Period for any Australian Bill Rate Loan, CDOR Rate Loan, HIBOR Rate Loan, Euro-Currency Loan or Competitive Bid LIBOR Loan:

 

(i)                                     the Administrative Agent shall have determined (which determination shall be conclusive and binding upon the Company) that, by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining (including, without limitation, by means of an Interpolated Rate) the London Interbank Offered Rate for such Interest Period, or

 

(ii)                                  the Administrative Agent is advised by the Reference Banks that deposits in the relevant currency (in the applicable amounts) are not being offered to the Reference Banks in the relevant market for such Interest Period, or

 

(iii)                               in the case of Euro-Currency Loans, Lenders having 50% or more of the aggregate amount of the Commitments advise the Administrative Agent that the London Interbank Offered Rate as determined by the Administrative Agent will not adequately and fairly reflect the cost to such Lenders of funding their Euro-Currency Loans in the relevant currency for such Interest Period,

 

the Administrative Agent shall forthwith give notice thereof to the Company and the Lenders, whereupon until the Administrative Agent notifies the Company that the circumstances giving rise to such suspension no longer exist, (i) the obligations of the Lenders to make Australian Bill Rate Loan, CDOR Rate Loan, HIBOR Rate Loan, or Euro-Currency Loans in the relevant currency or to continue or convert outstanding Loans as or into Australian Bill Rate Loan, CDOR Rate Loan, HIBOR Rate Loan, or Euro-Currency Loans in the relevant 

 

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currency, as the case may be, shall be suspended, (ii) each outstanding Australian Bill Rate Loan, CDOR Rate Loan, HIBOR Rate Loan, and Euro-Currency Loan shall be prepaid (or in the case of an affected Loan denominated in dollars, converted into a Base Rate Loan) on the last day of the then current Interest Period applicable thereto, (iii) unless the Company notifies the Administrative Agent at least two Domestic Business Days before the date of any Fixed Rate Borrowing denominated in dollars for which a Notice of Borrowing has previously been given that it elects not to borrow on such date, (x) if such Fixed Rate Borrowing is a Committed Dollar Borrowing, such Borrowing shall instead be made as a Base Rate Borrowing and (y) if such Fixed Rate Borrowing is a Competitive Bid LIBOR Borrowing, the Competitive Bid LIBOR Loans comprising such Borrowing shall bear interest for each day from and including the first day to but excluding the last day of the Interest Period applicable thereto at the Base Rate for such day and (iv) any request for a Committed Australian Dollar Loan, Committed Canadian Dollar Loan, Committed HK Dollar Loan or Committed Alternative Currency Loan shall be ineffective.

 

(b)                       If at any time the Administrative Agent determines (which determination shall be conclusive absent manifest error) that (i) the circumstances set forth in clause (a)(i) have arisen and such circumstances are unlikely to be temporary or (ii) the circumstances set forth in clause (a)(i) have not arisen but either (w) the supervisor for the administrator of the LIBO Screen Rate has made a public statement that the administrator of the LIBO Screen Rate is insolvent (and there is no successor administrator that will continue publication of the LIBO Screen Rate), (x) the administrator of the LIBO Screen Rate has made a public statement identifying a specific date after which the LIBO Screen Rate will permanently or indefinitely cease to be published by it (and there is no successor administrator that will continue publication of the LIBO Screen Rate), (y) the supervisor for the administrator of the LIBO Screen Rate has made a public statement identifying a specific date after which the LIBO Screen Rate will permanently or indefinitely cease to be published or (z) the supervisor for the administrator of the LIBO Screen Rate or a Governmental Authority having jurisdiction over the Administrative Agent has made a public statement identifying a specific date after which the LIBO Screen Rate may no longer be used for determining interest rates for loans, then the Administrative Agent and the Company shall endeavor to establish an alternate rate of interest to the London Interbank Offered Rate that gives due consideration to the then prevailing market convention for determining a rate of interest for syndicated loans in the United States at such time, and shall enter into an amendment to this Agreement to reflect such alternate rate of interest and such other related changes to this Agreement as may be applicable (but for the avoidance of doubt, such related changes shall not include a reduction of the Applicable Rate); provided that, if such alternate rate of interest as so determined would be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.  Notwithstanding anything to the contrary in Section 10.05, such amendment shall become effective without any 

 

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further action or consent of any other party to this Agreement so long as the Administrative Agent shall not have received, within five Domestic Business Days of the date notice of such alternate rate of interest is provided to the Lenders, a written notice from the Required Lenders stating that such Required Lenders object to such amendment.  Until an alternate rate of interest shall be determined in accordance with this clause (b) (but, in the case of the circumstances described in clause (ii) of the first sentence of this Section 8.01(b), only to the extent the LIBO Screen Rate for the applicable currency and such Interest Period is not available or published at such time on a current basis), (x) any Notice of Interest Rate Election that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Euro-Currency Borrowing shall be ineffective, (y) if any Notice of Borrowing requests a Euro-Currency Borrowing, such Borrowing shall be made (1) in the case of a Borrowing denominated in Dollars, a Base Rate Borrowing in the amount specified therein and (2) in the case of a Borrowing denominated in an Alternative Currency, a Borrowing of Loans bearing interest at a rate for short term borrowings of such Alternative Currency determined in a customary manner in good faith by the Administrative Agent in consultation with the Company, in each case in the amount specified therein and (z) any request by any Borrower for a Euro-Currency Competitive Bid Borrowing shall be ineffective.

 

Section 8.02.  Illegality.

 

(a)                       If, on or after the date of this Agreement, any Change in Law shall make it unlawful or impossible for any Lender (or its Euro-Currency Lending Office or Canadian Lending Office) to make, maintain or fund any of its Australian Bill Rate Loans, CDOR Rate Loans, HIBOR Rate Loans or Euro-Currency Loans in any currency and such Lender shall so notify the Administrative Agent, the Administrative Agent shall forthwith give notice thereof to the other Lenders and the Company, whereupon until such Lender notifies the Company and the Administrative Agent that the circumstances giving rise to such suspension no longer exist, the obligation of such Lender to make Australian Bill Rate Loans, CDOR Rate Loans, HIBOR Rate Loans or Euro-Currency Loans in such currency, or to convert or continue outstanding Loans into Australian Bill Rate Loans, CDOR Rate Loans, HIBOR Rate Loans or Euro-Currency Loans in such currency, shall be suspended.  Before giving any notice to the Administrative Agent pursuant to this Section, such Lender shall designate a different Euro-Currency Lending Office or Canadian Lending Office if such designation will avoid the need for giving such notice and will not, in the sole judgment of such Lender, be otherwise disadvantageous to such Lender.  If such notice is given, each Euro-Currency Loan of such Lender then outstanding in such currency shall be converted at the Exchange Rate on the day of conversion to a Base Rate Loan either (i) on the last day of the then current Interest Period applicable to such Euro-Currency Loan if such Lender may lawfully continue to maintain and fund such Loan to such day or (ii) immediately if such Lender shall 

 

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determine that it may not lawfully continue to maintain and fund such Loan to such day.

 

(b)                       If by reason of the fact that an Eligible Subsidiary is organized in, or conducts business in, a jurisdiction outside the United States, it is unlawful or impracticable under any applicable Law or regulation for such Lender (or its Applicable Lending Office) to make or maintain Loans to such Eligible Subsidiary, such Lender (an “Ineligible Lender”) shall so notify the Administrative Agent, the Administrative Agent shall forthwith give notice thereof to the other Lenders and the Company, whereupon until such Lender notifies the Company and the Administrative Agent that the circumstances giving rise to such suspension no longer exist, the obligation of such Lender to make or maintain Loans to such Eligible Subsidiary shall be suspended.  If such notice is given, the Company shall, effective on or before the date that such Eligible Subsidiary shall have the right to make a Borrowing hereunder, (i) replace or terminate the Commitments of such Ineligible Lender in accordance with Section 2.09, (ii) cancel its request to designate such Subsidiary as an Eligible Subsidiary hereunder or (iii) prepay each Loan of such Ineligible Lender (x) in the case of any Euro-Currency Loan held by such Ineligible Lender, on the last day of the then current Interest Period applicable thereto if such Ineligible Lender may lawfully continue to maintain such Loan to such day or (y) immediately if clause (x) does not apply.

 

Section 8.03.  Increased Cost and Reduced Return.  (a)  If on or after (x) the date hereof, in the case of any Committed Loan or Letter of Credit or any obligation to make Committed Loans or issue or participate in any Letter of Credit or (y) the date of any related Competitive Bid Quote, in the case of any Competitive Bid Loan, any Change in Law shall impose, modify or deem applicable any reserve (including, without limitation, any such requirement imposed by the Federal Reserve Board, but excluding with respect to any Euro-Currency Loan any such requirement with respect to which such Lender is entitled to compensation during the relevant interest period under Section 2.21), special deposit, insurance assessment or similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender (or its Applicable Lending Office) or shall subject any Lender to any taxes (other than any taxes indemnified under Section 8.04 or excluded in the definition of Taxes) on its Loans, loan principal, Letters of Credit, Commitments, or other obligations, or its deposits, reserves, other liabilities attributable or allocated thereto, or impose on any Lender (or its Applicable Lending Office) or on the London interbank market any other condition affecting its Fixed Rate Loans, its Note (if any) or its obligation to make Fixed Rate Loans or its obligations hereunder with respect of Letters of Credit and the result of any of the foregoing is to increase the cost to such Lender (or its 

 

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Applicable Lending Office) of making or maintaining any Fixed Rate Loan or issuing or participating in any Letter of Credit, or to reduce the amount of any sum received or receivable by such Lender (or its Applicable Lending Office) under this Agreement or under its Note (if any) with respect thereto, by an amount deemed by such Lender to be material, then, within 15 days after demand by such Lender (with a copy to the Administrative Agent), the Company shall pay, or shall cause another Borrower to pay, to such Lender such additional amount or amounts as will compensate such Lender for such increased cost or reduction.

 

(b)                       If any Lender, other than a Defaulting Lender, shall have determined that, after the date hereof, any Change in Law, has or would have the effect of reducing the rate of return on capital of such Lender (or its Parent) as a consequence of such Lender’s obligations hereunder to a level below that which such Lender (or its Parent) could have achieved but for such Change in Law (taking into consideration its policies with respect to capital adequacy) by an amount deemed by such Lender to be material, then from time to time, within 15 days after demand by such Lender (with a copy to the Administrative Agent), the Company shall pay to such Lender such additional amount or amounts as will compensate such Lender (or its Parent) for such reduction.

 

(c)                        Each Lender will promptly notify the Company and the Administrative Agent of any event of which it has knowledge, occurring after the date hereof, which will entitle such Lender to compensation pursuant to this Section and will use reasonable efforts to designate a different Applicable Lending Office if such designation will avoid the need for, or reduce the amount of, such compensation and will not, in the sole judgment of such Lender, be otherwise disadvantageous to such Lender.  A certificate of any Lender claiming compensation under this Section and setting forth the additional amount or amounts to be paid to it hereunder and the calculation thereof in reasonable detail shall be conclusive in the absence of manifest error.  In determining such amount, such Lender may use any reasonable averaging and attribution methods.  Notwithstanding anything to the contrary in this Section, the Company or relevant Borrower shall not be required to compensate a Lender pursuant to this Section for any amounts incurred more than six months prior to the date that such Lender notifies the Company or such Borrower of such Lender’s intention to claim compensation therefor; provided that, if the circumstances giving rise to such claim have a retroactive effect, then such six-month period shall be extended to include the period of such retroactive effect.  The obligations of the Company or relevant Borrower pursuant to this Section shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.

 

Section 8.04.  Taxes.  (a)  For the purposes of this Section 8.04, the following terms have the following meanings:

 

“Taxes” means any and all present or future taxes, duties, levies, imposts, deductions, charges or withholdings with respect to any payment by any Obligor pursuant to this Agreement or under any Note, and all liabilities with respect 

 

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thereto, excluding (i) in the case of each Lender and the Administrative Agent, taxes imposed on its income, and franchise, branch profits or similar taxes imposed on it, by a jurisdiction under the laws of which such Lender or the Administrative Agent (as the case may be) is organized or in which its principal executive office is located or, in the case of each Lender, in which its Applicable Lending Office is located, as a result of a present or former connection, in each case, between such jurisdiction and the Lender or the Administrative Agent and (ii) in the case of each Lender (other than an Assignee pursuant to a request by a Borrower), any United States withholding tax (including tax imposed by FATCA) imposed on such payments at the time such Lender first becomes a party to this Agreement or designates a new Applicable Lending Office, except with respect to an Assignee to the extent that its assignor was entitled to receive additional amounts in relation to withholding taxes pursuant to this Agreement.

 

“Other Taxes” means any present or future stamp or documentary taxes and any other excise or property taxes, or similar charges or levies, which arise from any payment made pursuant to this Agreement or under any Note or from the execution or delivery of, or otherwise with respect to, this Agreement or any Note.

 

(b)                       Any and all payments by any Obligor to or for the account of any Lender or the Administrative Agent hereunder or under any Note shall be made without deduction for any Taxes or Other Taxes; provided that, if an Obligor shall be required by law to deduct any Taxes or Other Taxes from any such payments, (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section) such Lender or the Administrative Agent (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (ii) such Obligor shall make such deductions, (iii) such Obligor shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law and (iv) as soon as practicable but in no event later than 30 days after the date of such payment, such Obligor shall furnish to the Administrative Agent, at its address referred to in Section 10.01, the original receipt or a certified copy of a receipt evidencing payment thereof.

 

(c)                        Each Obligor agrees to indemnify each Lender and the Administrative Agent for the full amount of Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes imposed or asserted by any jurisdiction on amounts payable under this Section) paid by such Lender or the Administrative Agent (as the case may be) and any liability (including penalties, interest and expenses) arising therefrom or with respect thereto.  This indemnification shall be paid within 30 days after such Lender or the Administrative Agent (as the case may be) makes demand therefor.

 

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(d)                       Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any this Agreement or any Note shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding or any party to make any filings required by law.  In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable requirements of law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.

 

Without limiting the generality of the foregoing,

 

(i) Each Lender that is not a United States person within the meaning of Section 7701(a)(30) of the Internal Revenue Code (a “Non-U.S. Lender”), on or prior to the date of its execution and delivery of this Agreement in the case of each Lender listed on the signature pages hereof and on or prior to the date on which it becomes a Lender in the case of each other Lender, and from time to time thereafter if requested in writing by the Company (but only so long as such Lender remains lawfully able to do so), shall provide the Company and the Administrative Agent with two properly completed and duly executed copies of (A) Internal Revenue Service form W-8BEN, W-8BEN-E, W-8IMY or W-8ECI, as appropriate, or any successor form prescribed by the Internal Revenue Service, certifying that such Lender is entitled to benefits under an income tax treaty to which the United States is a party which exempts the Lender from United States withholding tax or reduces the rate of withholding tax on payments of interest for the account of such Lender or certifying that the income receivable pursuant to this Agreement is effectively connected with the conduct of a trade or business in the United States; (B) in the case of a Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Internal Revenue Code: (i) a certificate to the effect that such Lender is not: (1) a “bank” within the meaning of Section 881(c)(3)(A) of the Internal Revenue Code; (2) a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Internal Revenue Code; or (3) a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Internal Revenue Code; and (ii) two properly completed and duly executed copies of Internal Revenue Service Form W-8BEN or W-8BEN-E, as appropriate; or (C) any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in United States federal withholding tax duly completed together with such supplementary documentation as may be prescribed by applicable law to 

 

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permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made.  Such forms shall be delivered by any Non-U.S. Lender that changes its Applicable Lending Office.

 

(ii) Each Lender that is a United States person within the meaning of Section 7701(a)(30) of the Internal Revenue Code, on or prior to the date of its execution and delivery of this Agreement in the case of each Lender listed on the signature pages hereof and on or prior to the date on which it becomes a Lender in the case of each other Lender, and from time to time thereafter if requested in writing by the Company (but only so  long as such Lender remains lawfully able to do so), shall provide the Company and Administrative Agent with two properly completed and duly executed copies of Internal Revenue Service form W-9, or any subsequent versions or successor thereto as may be prescribed by applicable law establishing that the Lender (or any Participant) is not subject to United States backup withholding tax.

 

(e)                        For any period with respect to which a Lender has failed to provide the Company or the Administrative Agent with the appropriate form pursuant to Section 8.04(d) (unless such failure is due to a change in treaty, law or regulation occurring subsequent to the date on which such form originally was required to be provided), such Lender shall not be entitled to indemnification under Section 8.04(b) or (c) with respect to Taxes imposed by the United States; provided that if a Lender, which is otherwise exempt from or subject to a reduced rate of withholding tax, becomes subject to Taxes because of its failure to deliver a form required hereunder, the Company shall take such steps as such Lender shall reasonably request to assist such Lender to recover such Taxes.

 

(f)                         If any Obligor is required to pay additional amounts to or for the account of any Lender pursuant to this Section, then such Lender will, upon request by such Obligor, use reasonable efforts to change the jurisdiction of its Applicable Lending Office if, in the sole judgment of such Lender, such change (i) will eliminate or reduce any such additional payment which may thereafter accrue and (ii) is not otherwise disadvantageous to such Lender.

 

(g)                        If a payment made to a Lender under this Agreement or any Note would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent 

 

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as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this clause (g), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

 

(h)                       If the Administrative Agent or any Lender determines, in its sole discretion, that it has received a refund including a refund that such Administrative Agent or Lender decided to apply to future Taxes, a refund of any indemnified Taxes or Other Taxes as to which it has been indemnified by any  party or with respect to which such party has paid additional amounts pursuant to this Section 8.04, it shall pay over such refund to such party (but only to the extent of indemnity payments made, or additional amounts paid, by such party under this Section 8.04 with respect to the indemnified Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent or such Lender (including any Taxes imposed with respect to such refund), and without interest (other than any interest paid by the relevant governmental authority with respect to such refund); provided that such party, upon the request of the Administrative Agent or such Lender agrees to repay the amount paid over to such party (plus any penalties, interest or other charges imposed by the relevant governmental authority) to the Administrative Agent or such Lender in the event the Administrative Agent or such Lender is required to repay such refund to such governmental authority.  Notwithstanding anything to the contrary in this paragraph (h), in no event will the Administrative Agent or any Lender be required to pay any amount to any party pursuant to this paragraph (h) to the extent that the payment thereof would place the Administrative Agent or Lender in a less favorable net after-Tax position than the Administrative Agent or such Lender would have been in if the Tax subject to indemnification had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts giving rise to such refund had never been paid.  This Section shall not be construed to require the Administrative Agent or any Lender to make available its Tax returns (or any other information relating to its Taxes which it deems confidential) to the relevant party or any other Person.

 

Section 8.05.  Base Rate Loans Substituted for Affected Fixed Rate Loans.  If (i) the obligation of any Lender to make, or to convert or continue outstanding Loans to, Euro-Currency Loans in any currency has been suspended pursuant to Section 8.02 or (ii) any Lender has demanded compensation under Section 8.03 or 8.04 with respect to its Euro-Currency Loans in any currency and the Company shall, by at least five Euro-Dollar Business Days’ prior notice to such Lender through the Administrative Agent, have elected that the provisions of this Section shall apply to such Lender, then, unless and until such Lender notifies the Company that the circumstances giving rise to such suspension or demand for compensation no longer exist:

 

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(a)                       all Loans which would otherwise be made by such Lender as (or continued as or converted into) Euro-Currency Loans in such currency shall be made instead as Base Rate Loans (in the case of Committed Alternative Currency Loans, in the same Dollar Amount as the Euro-Currency Loan that such Lender would otherwise have made in the Alternative Currency (on which interest and principal shall be payable contemporaneously with the related Fixed Rate Loans of the other Lenders); and

 

(b)                       after each of its Euro-Currency Loans in such currency has been repaid (or converted to a Base Rate Loan), all payments of principal which would otherwise be applied to repay such Fixed Rate Loans shall be applied to repay its Base Rate Loans instead.

 

If such Lender notifies the Company that the circumstances giving rise to such notice no longer apply, the principal amount of each such Base Rate Loan shall be converted into a Euro-Currency Loan denominated in the relevant currency, as the case may be, on the first day of the next succeeding Interest Period applicable to the related Euro-Currency Loans of the other Lenders. If such Loan is converted into an Committed Alternative Currency Loan, such Lender, the Administrative Agent and the relevant Borrower shall make such arrangements as shall be required (including increasing or decreasing the amount of such Committed Alternative Currency Loan) so that such Committed Alternative Currency Loan shall be in the same amount as it would have been if the provisions of this Section had never applied thereto.

 

Section 8.06.  Substitution of Lenders.  If (i) the obligation of any Lenders to make Euro Currency Loans has been suspended pursuant to Section 8.02, (ii) any Lender has demanded compensation under Section 8.03 or 8.04, (iii) any Lender is a Defaulting Lender, (iv) any Lender fails to give its consent for any amendment or waiver requiring the consent of 100% of the Lenders or all affected Lenders (and such Lender is an affected Lender) and for which the Required Lenders have consented or (v) fails to give its consent to an extension of any Termination Date to which the Required Lenders have consented, the Company shall have the right, with the assistance of the Administrative Agent and the Issuing Lenders, at the Company’s sole expense, to seek a substitute lender or lenders (which may be one or more of the Lenders), satisfactory to the Company, the Administrative Agent and the Issuing Lenders, without recourse to the applicable Lender, to purchase the Loans and assume the Commitments and Letter of Credit Liabilities of such Lender, for a purchase price equal to the aggregate outstanding principal of such Loans and any funded and outstanding participations in Letter of Credit Disbursements (together with any accrued and unpaid interest thereon and breakage costs, if any) or such other purchase price as such Lender and substitute lender or lenders shall agree upon provided that (a) such Lender shall have received from the Company (or assignee Lender, if agreed) payment of accrued fees and all other amounts payable to it hereunder and under the other Loan Documents not otherwise contemplated in the purchase 

 

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price referred to above, (b) such assignment does not conflict with applicable law and (c) in the case of any assignment resulting from a Lender becoming a non-consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.

 

ARTICLE 9
 REPRESENTATIONS AND WARRANTIES OF ELIGIBLE SUBSIDIARIES

 

Each Eligible Subsidiary shall be deemed by the execution and delivery of its Election to Participate to have represented and warranted as of the date thereof that:

 

Section 9.01.  Corporate Existence and Power.  It is an organization duly organized or formed, validly existing and in good standing under the laws of its jurisdiction of organization or formation and is a Wholly-Owned Consolidated Subsidiary.

 

Section 9.02.  Corporate Governmental Authorization; No Contravention.  The execution and delivery by it of its Election to Participate and its Notes (if any), and the performance by it of this Agreement and its Notes (if any), (A) are within its corporate or other organizational powers, (B) have been duly authorized by all necessary company or other organizational action, (C) require no action by or in respect of, or filing with, any governmental body, agency or official (other than those already obtained or made and in full force and effect), (D) do not contravene, or constitute a default under, (i) any provision of applicable law or regulation, (ii) its certificate of incorporation, articles of incorporation (or the equivalent organizational documents) or by-laws (or the equivalent governing documents), (iii) any agreement evidencing or governing Debt or of any other agreement or instrument, or (iv) any judgment, injunction, order or decree binding upon the Company or such Eligible Subsidiary, except, in the case of clauses (i), (iii) and (iv), as would not reasonably be expected to result in a Material Adverse Effect, and (E) will not result in the creation or imposition of any Lien on any asset of the Company or any of its Subsidiaries.

 

Section 9.03.  Binding Effect.  This Agreement constitutes a valid and binding agreement of such Eligible Subsidiary and its Notes, when and if executed and delivered in accordance with this Agreement, will constitute valid and binding obligations of such Eligible Subsidiary, in each case enforceable in accordance with its terms except as the same may be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights generally and by general principles of equity, regardless of whether considered in a proceeding in equity or law.

 

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ARTICLE 10
 MISCELLANEOUS

 

Section 10.01.  Notices.  All notices, requests and other communications to any party hereunder shall be in writing (including bank wire, facsimile transmission or similar writing) and shall be given to such party: (a) in the case of the Company or the Administrative Agent, at its address or facsimile number set  forth on the signature pages hereof, (b) in the case of any Lender, at its address or facsimile number set forth in its Administrative Questionnaire, (c) in the case of any Eligible Subsidiary, to it in care of the Company or (d) in the case of any party, such other address or facsimile number as such party may hereafter specify for the purpose by notice to the Administrative Agent and the Company.  Each such notice, request or other communication shall be effective (i) if given by facsimile transmission, when transmitted to the facsimile number specified in this Section and confirmation of receipt is received, (ii) if given by mail, 72 hours after such communication is deposited in the mails with first class postage prepaid, addressed as aforesaid or (iii) if given by any other means, when delivered at the address specified in this Section; provided that notices to the Administrative Agent or the Issuing Lenders under Article 2 or Article 8 shall not be effective until received.

 

Section 10.02.  No Waivers.  No failure or delay by the Administrative Agent or any Lender in exercising any right, power or privilege hereunder or under any Note shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

 

Section 10.03.  Expenses; Indemnification.  (a)  The Company shall pay (i) all reasonable out-of-pocket expenses of the Administrative Agent and the Joint Arrangers, including reasonable fees and disbursements of special counsel for the Administrative Agent (which in the absence of a conflict of interest shall be limited to one primary counsel for the Administrative Agent and the Joint Arrangers, collectively, plus, if advisable in the judgment of the Administrative Agent, one local counsel per jurisdiction for the Administrative Agent and the Joint Arrangers, collectively), in connection with the preparation and administration of this Agreement, any waiver or consent hereunder or any amendment hereof and (ii) all out of pocket expenses incurred by the Administrative Agent, each Issuing Lender and each Lender including (without duplication) the fees and disbursements of outside counsel, in connection with any collection, bankruptcy, insolvency and other enforcement proceedings resulting from any Event of Default.

 

(b)                       The Company agrees to indemnify the Administrative Agent, each Issuing Lender, each Joint Arranger and each Lender, their respective affiliates and the respective directors, officers, agents and employees of the foregoing (each 

 

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an “Indemnitee”) and hold each Indemnitee harmless from and against any and all liabilities, losses, damages, costs and expenses of any kind, including, without limitation, the reasonable fees and disbursements of counsel (which, in the absence of a conflict of interest, shall be limited to one primary counsel for the Indemnitees, collectively, plus, if advisable in the judgment of such Indemnitees, one local counsel per jurisdiction for all such Indemnitees, collectively), which may be incurred by such Indemnitee in connection with any investigative,  administrative or judicial proceeding (whether or not such Indemnitee shall be designated a party thereto) brought or overtly threatened relating to or arising out of this Agreement or any actual or proposed use of proceeds of Loans hereunder; provided that no Indemnitee shall have the right to be indemnified hereunder for such Indemnitee’s own gross negligence or willful misconduct as determined by a final, non-appealable judgment of a court of competent jurisdiction.  Each Indemnitee agrees to notify the Company promptly of any proceeding in respect of which it will seek indemnification hereunder; provided, however, that the failure of any Indemnitee so to notify the Company shall not affect the rights of such Indemnitee hereunder; but provided, further, that the Company shall be entitled to assert by separate action against such Indemnitee any claim for actual damages incurred by the Company as a consequence of such failure by such Indemnitee to give such notice.  In the event any action, suit or proceeding is brought against any Indemnitee by any Person other than a Lender, the Administrative Agent, an Issuing Lender or any of their respective affiliates (a “third party action”), (i) the Company shall be entitled, upon written notice to such Indemnitee, to assume the investigation and defense thereof with counsel reasonably satisfactory to such Indemnitee unless (x) the employment by such Indemnitee of separate counsel has been specifically approved by the Company in writing or (y) the designated parties to the proceeding in which such claim, demand, action or cause of action has been asserted include (or are reasonably likely to include) both such Indemnitee and any of the Obligor, or any Affiliate (each, a “designated related party”) and in the opinion of counsel for such Indemnitee there exist one or more defenses that may be available to such Indemnitee which are in conflict with those available to any designated related party, (ii) such Indemnitee shall be entitled to employ separate counsel and to participate in the investigation and defense of any such third party action (whether or not the Company has elected to assume such investigation and defense as contemplated by clause (i) above) and (iii) the fees and expenses of any separate counsel employed by any Indemnitee in connection with any such third party action shall be borne by such Indemnitee except (x) under the circumstances contemplated by subclauses (x) and (y) of clause (i) above or (y) if such Indemnitee has reasonably concluded that the Company is failing actively and diligently to defend such third party action (whether or not the Company has elected to assume such investigation and defense as contemplated by clause (i) above).  The Company shall not settle or compromise any action or claim without the relevant Indemnitee’s consent if the settlement or compromise involves any performance by, or adverse admission of, such Indemnitee.  To the extent 

 

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permitted by applicable law, no party hereto shall assert, and each such party hereby waives, any claim against any other party hereto, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, any Loan Document or any agreement or instrument contemplated thereby, any Loan or Letter of Credit or the use of the proceeds thereof; provided that, nothing in this sentence shall relieve the Company of any obligation it may have to indemnify an Indemnitee against special, indirect, consequential or punitive damages asserted against such Indemnitee by a third party.  The obligations of the Company pursuant to this Section shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.

 

Section 10.04.  Sharing of Set-Offs.  Each Lender agrees that if it shall, by exercising any right of set-off or counterclaim or otherwise, receive payment of a proportion of the aggregate amount of principal and interest due with respect to any Loan and Letter of Credit Liabilities held by it which is greater than the proportion received by any other Lender in respect of the aggregate amount of principal and interest due with respect to any Loan and Letter of Credit Liability held by such other Lender, the Lender receiving such proportionately greater payment shall purchase such participations in the Loans and Letter of Credit Liabilities held by the other Lenders, and such other adjustments shall be made, as may be required so that all such payments of principal and interest with respect to the Loans and Letter of Credit Liabilities held by the Lenders shall be shared by the Lenders pro rata; provided that nothing in this Section shall impair the right of any Lender to exercise any right of set-off or counterclaim it may have and to apply the amount subject to such exercise to the payment of indebtedness of the Obligors other than its indebtedness hereunder.  Each Obligor agrees, to the fullest extent it may effectively do so under applicable law, that any holder of a participation in a Loan and Letter of Credit Liability, whether or not acquired pursuant to the foregoing arrangements, may exercise rights of set-off or counterclaim and other rights with respect to such participation as fully as if such holder of a participation were a direct creditor of such Obligor in the amount of such participation.

 

Section 10.05.  Amendments and Waivers.

 

(a)                       Except as explicitly set forth in Section 2.12(b), Section 8.01(b) or Section 10.05(c), any provision of this Agreement or the Notes (if any) may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by each Obligor and the Required Lenders (and, if the rights or duties of the Administrative Agent or the Issuing Lenders are affected thereby, by the Administrative Agent and the Issuing Lenders, respectively); provided that, except as explicitly set forth in Section 2.12(b) and subject to Section 2.20 with respect to any Defaulting Lender, no such amendment or waiver shall, (x) (i) increase or decrease the Commitment of any Lender (except for a ratable decrease in the Commitments of all Lenders) or subject any Lender to any additional 

 

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obligation unless signed by such Lender, (ii) reduce the principal of or rate of interest on any Loan or the amount to be reimbursed in respect of any Letter of Credit or any interest thereon or any fees hereunder unless signed by each Lender directly affected thereby or (iii) postpone the date fixed for any payment of principal of or interest on any Loan or for reimbursement in respect of any Letter of Credit or any fees hereunder or for any scheduled reduction or termination of any Commitment unless signed by each Lender directly affected thereby or (y)  unless signed by all the Lenders (i) release the Company from any of its obligations under Article 11, (ii) change the percentage of the Commitments or of the aggregate unpaid principal amount of the Loans or the aggregate amount of the Letter of Credit Liabilities, or the number of Lenders, which shall be required for the Lenders or any of them to take any action under this Section or any other provision of this Agreement, (iii) change the payment waterfall provisions of Section 2.20(a)(iv) or Section 6.03 or (iv) amend or waive the provisions of Section 10.04, this Section 10.05, Section 10.06(a) or the definition of Required Lenders.

 

(b)                       Increases in Commitments and related modifications pursuant to Section 2.21 and extension of Commitments and related modifications pursuant to Section 2.22 are not amendments subject to the provisions of this Section.

 

(c)                        If the Administrative Agent and the Company acting together identify any ambiguity, omission, mistake, typographical error or other defect in any provision of this Agreement or any other Loan Document, then the Administrative Agent and the Company shall be permitted to amend, modify or supplement such provision to cure such ambiguity, omission, mistake, typographical error or other defect, and such amendment shall become effective without any further action or consent of any other party to this Agreement; provided that the Lenders shall be deemed to have consented to such amendment unless they shall have objected thereto by written notice to the Administrative Agent within five Domestic Business Days after having received notice thereof.

 

Section 10.06.  Successors and Assigns.  (a)  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns, except that (i) none of the Obligors may assign or otherwise transfer any of its rights under this Agreement without the prior written consent of all Lenders and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this Section.

 

(b)                       Any Lender may at any time grant to one or more banks or other institutions (each a “Participant”) participating interests in its Commitments or any or all of its Loans and Letter of Credit Liabilities.  In the event of any such grant by a Lender of a participating interest to a Participant, whether or not upon notice to each Obligor and the Administrative Agent, such Lender shall remain responsible for the performance of its obligations hereunder, and each Obligor 

 

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and the Administrative Agent shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  Any agreement pursuant to which any Lender may grant such a participating interest shall provide that such Lender shall retain the sole right and responsibility to enforce the obligations of the Borrowers hereunder including, without limitation, the right to approve any amendment, modification or waiver of any provision of this Agreement; provided that such participation agreement may  provide that such Lender will not agree to any modification, amendment or waiver of this Agreement described in the proviso in Section 10.05 without the consent of the Participant.  Each Obligor agrees that each Participant shall, to the extent provided in its participation agreement, be entitled to the benefits of Section 2.18 and Article 8 with respect to its participating interest as if it were a Lender.  An assignment or other transfer which is not permitted by subsection (c) or (d) below shall be given effect for purposes of this Agreement only to the extent of and as a participating interest granted in accordance with this subsection (b).  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under this Agreement (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register to any Person (including the identity of any Participant or any information relating to a Participant’s interest in any Commitments, Loans, Letters of Credit or its other obligations under this Agreement) except to the extent that such disclosure is necessary to establish that such Commitment, Loan, Letter of Credit or other obligation is in registered form under Treasury Regulations Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error.

 

(c)                        With the prior written consent of the Administrative Agent, the Issuing Lenders and, so long as no Event of Default has occurred and is continuing, the Company, which consents shall not be unreasonably withheld or delayed (provided that the Company shall be deemed to have consented to any assignment unless the Company shall object thereto by written notice to the Administrative Agent within fifteen (15) Domestic Business Days after having received a request for such consent) (provided, further, that if an Assignee (as defined below) is an affiliate of any Lender, was a Lender immediately prior to such assignment or is an Approved Fund, no such consent from the Administrative Agent, Issuing Lenders or Company shall be required and no minimum assignment amount shall apply to any such assignment), any Lender may at any time assign to one or more banks or other institutions (each an “Assignee”; provided that none of the Company or its Affiliates nor any natural person shall be an “Assignee”) all, or a proportionate part (equivalent to an initial Commitment in an amount of not less than $10,000,000) of all, of its rights and obligations under this Agreement and the Notes (if any), and such Assignee shall

 

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assume such rights and obligations, pursuant to an Assignment and Assumption Agreement in substantially the form of Exhibit F hereto; provided that (i) such assignment may, but need not, include rights of the transferor Lender in respect of outstanding Competitive Bid Loans; (ii) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loans and the Commitment assigned; (iii) the Assignee, if not already a Lender hereunder, shall deliver to the Administrative Agent an Administrative Questionnaire in which the Assignee designates one or more Credit Contacts to whom all syndicate-level information (which may contain material non-public information about the Obligors and their related parties or their respective securities) will be made available; and (iv) no assignment shall be made to a Defaulting Lender.  Upon execution and delivery of such instrument and payment by such Assignee to such transferor Lender of an amount equal to the purchase price agreed between such transferor Lender and such Assignee, such Assignee shall be a Lender party to this Agreement and shall have all the rights and obligations of a Lender with Commitments as set forth in such instrument of assumption, and the transferor Lender shall be released from its obligations hereunder to a corresponding extent, and no further consent or action by any party shall be required.  Upon the consummation of any assignment pursuant to this subsection (c), the transferor Lender, the Administrative Agent and the Borrowers shall make appropriate arrangements so that, if required, a new Note is issued to the Assignee.  In connection with any such assignment, the transferor Lender shall pay to the Administrative Agent an administrative fee for processing such assignment in the amount of $3,500.  The Assignee, if not already a Lender hereunder, shall deliver to the Company and the Administrative Agent certification as to exemption from deduction or withholding of any United States federal income taxes in accordance with Section 8.04.

 

(d)                       Any Lender may at any time assign all or any portion of its rights under this Agreement and its Note (if any) to a Federal Reserve Bank.  No such assignment shall release the transferor Lender from its obligations hereunder.

 

(e)                        No Assignee, Participant or other transferee of any Lender’s rights shall be entitled to receive any greater payment under Section 8.03 or 8.04 than such Lender would have been entitled to receive with respect to the rights transferred, unless such transfer is made with the Company’s prior written consent or by reason of the provisions of Section 8.02, 8.03 or 8.04 requiring such Lender to designate a different Applicable Lending Office under certain circumstances or at a time when the circumstances giving rise to such greater payment did not exist.  A Participant that would be a Non-U.S. Lender if it were a Lender shall not be entitled to the benefits of Section 8.04 unless such Participant agrees to comply with Section 8.04(d) as though it were a Lender (it being understood that the documentation required under Section 8.04(d) shall be delivered to the Participating Lender).

 

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(f)                         The Administrative Agent, acting for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of its offices a copy of each Assignment and Assumption Agreement delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amount of the Loans and Letter of Credit Liabilities owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent, the Issuing Lenders and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for inspection by the Borrower, any Issuing Lender and any Lender, at any reasonable time and from time to time upon reasonable prior notice.

 

(g)                        Upon its receipt of a duly completed Assignment and Assumption Agreement executed by an assigning Lender and an Assignee, the Assignee’s completed Administrative Questionnaire (unless the Assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (c) of this Section and any written consent to such assignment required by paragraph (c) of this Section, the Administrative Agent shall accept such Assignment and Assumption Agreement and record the information contained therein in the Register; provided that if either the assigning Lender or the Assignee shall have failed to make any payment required to be made by it pursuant to Section 2.04(b), Section 2.14(b), Section 2.19(a) or Section 2.19(d), the Administrative Agent shall have no obligation to accept such Assignment and Assumption Agreement and record the information therein in the Register unless and until such payment shall have been made in full, together with all accrued interest thereon.  No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph (including a Note as defined in Section 2.05(d)).

 

(h)                       Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”) may grant to a special purpose funding vehicle (an “SPC”) sponsored by a Granting Lender and identified as such in writing from time to time by the Granting Lender to the Administrative Agent and the Company, the option to provide to the Company all or any part of any Loan that such Granting Lender would otherwise be obligated to make to the Borrower pursuant to this Agreement; provided that (i) nothing herein shall constitute a commitment by any SPC to make any Loan and (ii) if an SPC elects not to exercise such option or otherwise fails to provide all or any part of such Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof.  The making of a Loan by an SPC hereunder shall utilize the Commitments of the Granting Lender to the same extent, and as if, such Loan were made by such Granting Lender.  Each party hereto hereby agrees that no SPC shall be liable for any indemnity or similar payment obligation under this 

 

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Agreement (all liability for which shall remain with the Granting Lender).  In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this Agreement) 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 indebtedness of any SPC, it will not institute against, or join any other Person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws of the United States or any State thereof.  In addition, notwithstanding anything to the contrary  in this Section 10.06, any SPC may (i) with notice to, but without the prior written consent of, the Company and the Administrative Agent and without paying any processing fee therefor, assign all or a portion of its interests in any Loans to the Granting Lender or to any financial institution providing liquidity and/or credit support to or for the account of such SPC to support the funding or maintenance of Loans; provided that any such assignment to a financial institution other than to the Granting Lender shall require the consent of the Company and the Administrative Agent, which consent shall be provided in the sole and absolute discretion of the Company or the Administrative Agent, as the case may be, and (ii) disclose any non-public information relating to its Loans to any rating agency, commercial paper dealer or provider of any surety, guarantee or credit or liquidity enhancement to such SPC; provided that any such Person (other than a rating agency) signs a confidentiality agreement which contains substantially the same provisions as set forth in Section 10.12.  As this Section 10.06(f) applies to any particular SPC, this Section 10.06(f) may not be amended without the written consent of such SPC.  Additionally, the Company shall not be subject to any increased costs pursuant to Section 8.03, indemnity claims pursuant to Section 10.03(b) or increased taxes pursuant to Section 8.04 (collectively, “Increased Costs”) with respect to an SPC if the Company would not have been subjected to such Increased Costs had the Loan not been funded (directly or indirectly) by the SPC and any payment for any such Increased Costs shall be limited to the amounts that the Company would have been required to pay to the Granting Lender if such Loan had not been so funded by the SPC; provided, however, that the SPC shall be entitled to the benefits of Article 8 and Section 10.03 with respect to the interest granted to it by the Granting Lender to the extent that the Granting Lender was entitled to such benefits pursuant to this Agreement.

 

Section 10.07.  Collateral.  Each of the Lenders represents to the Administrative Agent and each of the other Lenders that it in good faith is not relying upon any “margin stock” (as defined in Regulation U) as collateral in the extension or maintenance of the credit provided for in this Agreement.

 

Section 10.08.  Governing Law, Submission to Jurisdiction .  This Agreement and each Note (if any) shall be governed by and construed in accordance with the laws of the State of New York.  Each Obligor hereby submits to the exclusive jurisdiction of the United States District Court for the Southern District of New York sitting in the Borough of Manhattan (or, if such court lacks 

 

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subject matter jurisdiction, the Supreme Court of the State of New York sitting in the Borough of Manhattan), and any appellate court from any thereof, for purposes of all legal proceedings arising out of or relating to this Agreement or the transactions contemplated hereby.  Each Obligor irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum.

 

Section 10.09.  Service of Process.  Without limiting the foregoing, each Eligible Subsidiary hereby irrevocably designates The Estée Lauder Companies Inc., 767 Fifth Avenue, New York, New York 10153, as the designee, appointee and agent of such Eligible Subsidiary to receive, for and on behalf of such Eligible Subsidiary, service of process in such respective jurisdictions in any legal action or proceeding with respect to this Agreement or any Note.  It is understood that a copy of such process served on such agent will be promptly forwarded by mail to such Eligible Subsidiary at its address set forth opposite its signature below, but the failure of such Eligible Subsidiary to receive such copy shall not affect in any way the service of such process.

 

Section 10.10.  Counterparts; Integration; Effectiveness.  This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  This Agreement constitutes the entire agreement and understanding among the parties hereto and supersedes any and all prior agreements and understandings, oral or written, relating to the subject matter hereof.  This Agreement shall become effective upon receipt by the Administrative Agent of counterparts hereof signed by each of the parties hereto (or, in the case of any party as to which an executed counterpart shall not have been received, receipt by the Administrative Agent in form satisfactory to it of telegraphic, facsimile, electronic mail or other written confirmation from such party of execution of a counterpart hereof by such party).

 

Section 10.11.  WAIVER OF JURY TRIAL.  EACH OBLIGOR, THE AGENTS AND THE LENDERS HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

Section 10.12.  Confidentiality.  Each of the Administrative Agent and each Lender agrees to keep any information delivered or made available by any Obligor pursuant to this Agreement confidential from anyone other than persons employed or retained by the Administrative Agent or such Lender who are engaged in evaluating, approving, structuring or administering the credit facility contemplated hereby; provided that nothing herein shall prevent the Administrative Agent or any Lender from disclosing such information (a) to any 

 

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persons employed or retained by the Administrative Agent or any other Lender who are engaged in evaluating, approving, structuring or administering the credit facility contemplated hereby, (b) to any other Person if reasonably incidental to the administration of the credit facility contemplated hereby so long as such Person agrees to keep such information confidential in accordance with the provisions of this Section 10.12, (c) upon the order of any court or administrative agency, (d) upon the request or demand of any regulatory agency or authority, including any self-regulating authority, (e) which had been publicly disclosed other than as a result of a disclosure by the Administrative Agent or any Lender  prohibited by this Agreement or, to the knowledge of the Administrative Agent or such Lender, by any other Person as a result of a disclosure by such Person in violation of an obligation of confidentiality, (f) to the extent necessary, in connection with any litigation to which the Administrative Agent, any Lender or its subsidiaries or Parent may be a party, (g) to the extent necessary in connection with the exercise of any remedy hereunder, (h) to such Lender’s or the Administrative Agent’s legal counsel and independent auditors, (i) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers, employees, agents, trustees, advisors and representatives (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such information and instructed to keep such information confidential), (j) on a confidential basis to (i) any rating agency in connection with rating the Company or its Subsidiaries or the credit facility provided hereunder or (ii) the CUSIP Service Bureau or any similar agency in connection with the application, issuance, publishing and monitoring of CUSIP numbers or other market identifiers with respect to the credit facility provided hereunder, (k) with the consent of the Company or (l) subject to an agreement containing provisions substantially similar to those contained in this Section, to (i) any actual or proposed Participant or Assignee or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction or any credit insurance provider, in each case, relating to any Borrower and its obligations.  Each Lender and the Administrative Agent shall give the Company prompt notice of any disclosure made by such Lender or the Administrative Agent, as the case may be, as permitted pursuant to clauses (c), (d) (other than any such disclosure made by any Lender to bank examiners during any examination of such Lender conducted in the ordinary course by such examiners) or (f) of this Section, but solely to the extent permitted by law and, in the case of any disclosure permitted pursuant to clause (f), solely to the extent that the interests of such Lender or the Administrative Agent, as the case may be, and the applicable Obligor in the relevant litigation are not adverse in any material respect.  In addition, the Administrative Agent and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry and service providers to the Administrative Agent and the Lenders in connection with the administration of this Agreement, the other Loan Documents and the Commitments.  Additionally, the Company agrees to maintain the confidentiality of any information relating to 

 

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a rate provided by the Administrative Agent or any Reference Bank pursuant to the definition of “Australian Bill Rate”, “CDOR Rate” or “London Interbank Offered Rate”, except (a) to its directors, officers, employees, advisors or Affiliates on a confidential and need-to-know basis in connection herewith, (b) as consented to by the Administrative Agent or such Reference Lender, as applicable or (c) as required by law (including securities laws and GAAP), regulation, judicial or governmental order, subpoena or other legal process or is requested or required by any governmental or regulatory authority or exchange (in which case the Company agrees to inform the Administrative Agent or such Reference Bank,  as applicable, promptly thereof prior to such disclosure, unless the Company is prohibited from giving such notice).

 

Section 10.13.  Conversion of Currencies.  (a) If, for the purpose of obtaining judgment in any court, it is necessary to convert a sum owing hereunder in one currency into another currency, each party hereto (including any Eligible Subsidiary) agrees, to the fullest extent that it may effectively do so, that the rate of exchange used shall be that at which in accordance with normal banking procedures in the relevant jurisdiction the first currency could be purchased with such other currency on the Euro-Currency Business Day immediately preceding the day on which final judgment is given.

 

(b)                       The obligations of each Borrower in respect of any sum due to any party hereto or any holder of the obligations owing hereunder (the “Applicable Creditor”) shall, notwithstanding any judgment in a currency (the “Judgment Currency”) other than the currency in which such sum is stated to be due hereunder (the “Agreement Currency”), be discharged only to the extent that, on the Euro-Currency Business Day following receipt by the Applicable Creditor of any sum adjudged to be so due in the Judgment Currency, the Applicable Creditor may in accordance with normal banking procedures in the relevant jurisdiction purchase the Agreement Currency with the Judgment Currency; if the amount of the Agreement Currency so purchased is less than the sum originally due to the Applicable Creditor in the Agreement Currency, such Borrower agrees, as a separate obligation and notwithstanding any such judgment, to indemnify the Applicable Creditor against such loss.  The obligations of the Borrowers contained in this Section 10.13 shall survive the termination of this Agreement and the payment of all other amounts owing hereunder.

 

Section 10.14.  European Economic and Monetary Union.  (a) Definitions.  In this Section 10.14 and in each other provision of this Agreement to which reference is made in this Section 10.14 expressly or impliedly, the following terms have the meanings given to them in this Section 10.14:

 

“Euro Unit” means the currency unit of the Euro;

 

“National Currency Unit” means the unit of currency (other than a Euro Unit) of a Participating Member State;

 

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(b)                       Redenomination and Eligible Currencies.  On the date on which any state that is not a Participating Member State on the date hereof becomes a Participating Member State, each obligation under this Agreement of a party to this Agreement which has been denominated in the National Currency Unit of such Participating Member State shall be redenominated into the Euro Unit in accordance with EMU Legislation.

 

(c)                        Loans.  Any Loan in the currency of a state that becomes a Participating Member State after the date hereof shall be made in the Euro Unit after the date on which such state becomes a Participating Member State.

 

(d)                       Payments by the Administrative Agent to the Lenders.  Any amount payable by the Administrative Agent to the Lenders under this Agreement in the currency of a state that becomes a Participating Member State after the date hereof shall be paid in the Euro Unit after the date on which such state becomes a Participating Member State.

 

Section 10.15.  USA Patriot Act.  Each Lender subject to the Act hereby notifies the Borrowers that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies each Borrower, which information includes the names and addresses of each Borrower and other information that will allow such Lender to identify each Borrower in accordance with the Act.

 

Section 10.16.  Acknowledgement and Consent to Bail-in of EEA Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

(a)                       the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(b)                       the effects of any Bail-In Action on any such liability, including, if applicable:

 

(i)                                     a reduction in full or in part or cancellation of any such liability;

 

(ii)                                  a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent entity, or a bridge institution that may be issued to it or otherwise 

 

107

 

conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

 

(iii)                               the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.

 

Section 10.17.  Right of Setoff.  If an Event of Default shall have occurred and be continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations at any time owing by such Lender or Affiliate now or hereafter existing under this Agreement held by such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement and although such obligations may be unmatured.  The rights of each Lender under this Section are in addition to other rights and remedies (including other rights of setoff) which such Lender may have.

 

Section 10.18.  No Fiduciary Duty.  The Company agrees that in connection with all aspects of the Loans and Letters of Credit contemplated by this Agreement and any communications in connection therewith, the Company and its Subsidiaries, on the one hand, and the Administrative Agent, the Issuing Lenders, the Lenders and their Affiliates, on the other hand, will have a business relationship that does not create, by implication or otherwise, any fiduciary duty on the part of the Administrative Agent, the Issuing Lenders, the Lenders or their Affiliates, and no such duty will be deemed to have arisen in connection with any such transactions or communications.  The Company acknowledges and agrees that the Administrative Agent, each Issuing Lender, each Lender and their Affiliates may have economic interests that conflict with those of the Company and its Subsidiaries, their stockholders and/or their affiliates.

 

ARTICLE 11
 GUARANTY

 

Section 11.01.  The Guaranty.  The Company hereby unconditionally and irrevocably guarantees the full and punctual payment (whether at stated maturity, upon acceleration or otherwise) of the principal of and interest on each Loan made to each Borrower (other than the Company) pursuant to this Agreement, and the full and punctual payment of all other amounts payable by each such Borrower under this Agreement (including any interest, fees, costs, expenses and other obligations that accrue after the commencement of any bankruptcy, insolvency, reorganization or similar case or proceeding, or which would have accrued but for such case, proceeding or other action and whether or not such interest, fees, costs, expenses or other obligations are allowed or allowable as a 

 

108

 

claim in such case, proceeding or other action).  Upon failure by any Borrower (other than the Company) to pay punctually any such amount, the Company shall forthwith on demand pay the amount not so paid at the place and in the manner and currency specified in this Agreement.

 

Section 11.02.  Guaranty Unconditional.  The obligations of the Company under this Article 11 shall be irrevocable, unconditional and absolute and, without  limiting the generality of the foregoing, shall not be released, discharged or otherwise affected by:

 

(i)                                     any extension, renewal, settlement, compromise, waiver or release in respect of any obligation of any other Borrower under this Agreement or any Note, by operation of law or otherwise;

 

(ii)                                  any modification or amendment of or supplement to this Agreement or any Note;

 

(iii)                               any release, impairment, non-perfection or invalidity of any direct or indirect security for any obligation of any other Borrower under this Agreement or any Note;

 

(iv)                              any change in the corporate existence, structure or ownership of any other Borrower, or any insolvency, bankruptcy, reorganization or other similar proceeding affecting any other Borrower or its assets or any resulting release or discharge of any obligation of any other Borrower contained in this Agreement or any Note;

 

(v)                                 the existence of any claim, set-off or other rights which the Company may have at any time against any other Borrower, the Administrative Agent, any Issuing Lender, any Lender or any other Person, whether in connection herewith or any unrelated transactions, provided that nothing herein shall prevent the assertion of any such claim by separate suit or compulsory counterclaim;

 

(vi)                              any invalidity or unenforceability relating to or against any Borrower for any reason of this Agreement or any Note, or any provision of applicable law or regulation affecting any term of the obligations guaranteed under this Article 11 or purporting to prohibit the payment by any Borrower of the principal of or interest on any Note or any other amount payable by any Borrower under this Agreement; or

 

(vii)                           any other act or omission to act or delay of any kind by any Borrower, the Administrative Agent, any Issuing Lender, any Lender or any other Person or any other circumstance whatsoever which might, but for the provisions of this paragraph, constitute a legal or equitable 

 

109

 

discharge of or defense to the Company’s obligations under this Article 11.

 

Section 11.03.  Discharge Only upon Payment in Full; Reinstatement in Certain Circumstances.  The Company’s obligations under this Guaranty shall remain in full force and effect until the Commitments shall have terminated, the principal of and interest on the Loans and all other amounts payable by the Borrowers under this Agreement shall have been paid in full and no Letter of  Credit Liabilities remain outstanding.  If at any time any payment of the principal of or interest on any Loan, any reimbursement obligation or any other amount payable by any Borrower under this Agreement is rescinded or must be otherwise restored or returned upon the insolvency, bankruptcy or reorganization of such Borrower or otherwise, the Company’s obligations under this Guaranty with respect to such payment shall be reinstated as though such payment had been due but not made at such time.

 

Section 11.04.  Waiver by the Company.  The Company irrevocably waives acceptance hereof, presentment, demand, protest and any notice not provided for herein, as well as any requirement that at any time any action be taken by any Person against any Borrower or any other Person.

 

Section 11.05.  Subrogation.  Upon making any payment with respect to any other Borrower under this Guaranty, the Company shall be subrogated to the rights of the payee against such Borrower with respect to such payment; provided that the Company shall not enforce any payment by way of subrogation until all amounts of principal of and interest on the Loans and all other amounts payable by such Borrower under this Agreement have been paid in full and no Letter of Credit Liabilities remain outstanding.

 

Section 11.06.  Stay of Acceleration.  If acceleration of the time for payment of any amount payable by any other Borrower under this Agreement or the Notes (if any) is stayed upon the insolvency, bankruptcy or reorganization of such Borrower, all such amounts otherwise subject to acceleration under the terms of this Agreement shall nonetheless be payable by the Company forthwith on demand by the Agent made at the request of the requisite proportion of the Lenders specified in Section 6.01 of this Agreement.

 

Section 11.07.  Limitation of Liability.  Notwithstanding the other provisions of this Article 11, the obligations of the Company hereunder shall be limited to an aggregate amount equal to the largest amount that would not render its obligations hereunder subject to avoidance under Section 548 of the United States Bankruptcy Code or any comparable provisions of applicable law of any State of the United States of America.

 

110

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

 

	
 
    	
THE ESTÉE LAUDER   COMPANIES INC., as the Company and Guarantor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Adil Mistry
    
	
 
    	
 
    	
Name:
    	
Adil Mistry
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Corporate Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ESTÉE LAUDER NV, as Eligible Subsidiary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Adil Mistry
    
	
 
    	
 
    	
Name:
    	
Adil Mistry
    
	
 
    	
 
    	
Title:
    	
Senior Vice President and Corporate Treasurer
    

 

[Signature Page to Credit Agreement]

 

 

	
 
    	
JPMORGAN CHASE   BANK, N.A., as Administrative Agent, a Lender and an Issuing Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Alicia T. Schreibstein
    
	
 
    	
 
    	
Name:
    	
Alicia T. Schreibstein
    
	
 
    	
 
    	
Title:
    	
Executive Director
    

 

[Signature Page to Credit Agreement]

 

 

	
 
    	
JPMORGAN CHASE BANK, N.A., Toronto Branch, as   a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael N. Tam
    
	
 
    	
 
    	
Name:
    	
Michael N. Tam
    
	
 
    	
 
    	
Title:
    	
Senior Vice President
    

 

[Signature Page to Credit Agreement]

 

 

	
 
    	
BNP PARIBAS, as a Lender and an Issuing   Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Nicole Rodriguez
    
	
 
    	
 
    	
Name:
    	
Nicole Rodriguez
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ade Adedeji
    
	
 
    	
 
    	
Name:
    	
Ade Adedeji
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

[Signature Page to Credit Agreement]

 

 

	
 
    	
CITIBANK, N.A., as a Lender and an Issuing   Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Carolyn Kee
    
	
 
    	
 
    	
Name:
    	
Carolyn Kee
    
	
 
    	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Credit Agreement]

 

 

	
 
    	
BANK OF AMERICA, N.A., as a Lender and an   Issuing Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Anthony Hoye
    
	
 
    	
 
    	
Name:
    	
Anthony Hoye
    
	
 
    	
 
    	
Title:
    	
Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BANK OF AMERICA, N.A., Canada Branch, as a   Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Medina Sales De Andrade
    
	
 
    	
 
    	
Name:
    	
Medina Sales De Andrade
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

[Signature Page to Credit Agreement]

 

 

	
 
    	
MUFG BANK, LTD., as a Lender and Issuing   Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Liwei Liu
    
	
 
    	
 
    	
Name:
    	
Liwei Liu
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

[Signature Page to Credit Agreement]

 

 

	
 
    	
GOLDMAN SACHS BANK USA, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Annie Carr
    
	
 
    	
 
    	
Name:
    	
Annie Carr
    
	
 
    	
 
    	
Title:
    	
Authorized Signatory
    

 

[Signature Page to Credit Agreement]

 

 

	
 
    	
HSBC Bank USA, National Association, as a   Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Thomas A. Foley
    
	
 
    	
 
    	
Name:
    	
Thomas A. Foley
    
	
 
    	
 
    	
Title:
    	
Managing Director
    

 

[Signature Page to Credit Agreement]

 

 

	
 
    	
U.S. Bank National Association, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joyce P. Dorsett
    
	
 
    	
 
    	
Name:
    	
Joyce P. Dorsett
    
	
 
    	
 
    	
Title:
    	
Senior Vice President
    

 

[Signature Page to Credit Agreement]

 

 

	
 
    	
Industrial &   Commercial Bank of China Ltd., New York Branch, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Pinyen Shih
    
	
 
    	
 
    	
Name:
    	
Pinyen Shih
    
	
 
    	
 
    	
Title:
    	
Executive Director
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Xiaoyu Yang
    
	
 
    	
 
    	
Name:
    	
Xiaoyu Yang
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

[Signature Page to Credit Agreement]

 

 

	
 
    	
ROYAL BANK OF CANADA, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jason Clay
    
	
 
    	
 
    	
Name:
    	
Jason Clay
    
	
 
    	
 
    	
Title:
    	
Vice President
    

 

[Signature Page to Credit Agreement]

 

 

	
 
    	
Société Générale, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ John Hogan
    
	
 
    	
 
    	
Name:
    	
John Hogan
    
	
 
    	
 
    	
Title:
    	
Director
    

 

[Signature Page to Credit Agreement]

 

 

	
 
    	
BANCO BILBAO   VIZCAYA ARGENTARIA, S.A. NEW YORK BRANCH, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Brian Crowley
    
	
 
    	
 
    	
Name:
    	
Brian Crowley
    
	
 
    	
 
    	
Title:
    	
Managing Director
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Miriam Trautmann
    
	
 
    	
 
    	
Name:
    	
Miriam Trautmann
    
	
 
    	
 
    	
Title:
    	
Senior Vice President
    

 

[Signature Page to Credit Agreement]

 

 

	
 
    	
The Northern Trust Company, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Eric Siebert
    
	
 
    	
 
    	
Name:
    	
Eric Siebert
    
	
 
    	
 
    	
Title:
    	
Senior Vice President
    

 

[Signature Page to Credit Agreement]

 

 

COMMITMENT SCHEDULE

 

	
LENDER
    	
 
    	
COMMITMENT
    	
 
    
	
JPMorgan Chase   Bank, N.A.
    	
 
    	
$
    	
160,000,000.00
    	
 
    
	
Citibank, N.A.
    	
 
    	
$
    	
160,000,000.00
    	
 
    
	
BNP Paribas
    	
 
    	
$
    	
160,000,000.00
    	
 
    
	
Bank of America,   N.A.
    	
 
    	
$
    	
160,000,000.00
    	
 
    
	
MUFG   Bank, Ltd.
    	
 
    	
$
    	
160,000,000.00
    	
 
    
	
Goldman Sachs   Bank USA
    	
 
    	
$
    	
100,000,000.00
    	
 
    
	
HSBC Bank USA,   National Association
    	
 
    	
$
    	
100,000,000.00
    	
 
    
	
U.S. Bank   National Association
    	
 
    	
$
    	
100,000,000.00
    	
 
    
	
Industrial and   Commercial Bank of China Limited, New York Branch
    	
 
    	
$
    	
100,000,000.00
    	
 
    
	
Royal Bank of   Canada
    	
 
    	
$
    	
100,000,000.00
    	
 
    
	
Societe Generale
    	
 
    	
$
    	
100,000,000.00
    	
 
    
	
Banco Bilbao   Vizcaya Argentaria, S.A. New York Branch
    	
 
    	
$
    	
50,000,000.00
    	
 
    
	
The Northern   Trust Company
    	
 
    	
$
    	
50,000,000.00
    	
 
    
	
TOTAL
    	
 
    	
$
    	
1,500,000,000
    	
 
    

 

 

PRICING SCHEDULE

 

Each of “Facility Fee Rate”, “Letter of Credit Fee Rate”, “Base Rate and Canadian Prime Rate Margin” and “Euro-Currency, Australian Bill Rate, CDOR Rate, and HIBOR Rate Margin” means, for any day, the rate per annum set forth below in the row opposite such term and in the column corresponding to the Pricing Level that applies on such day (each, an “Applicable Rate”):

 

	
Pricing
    	
 
    	
Level I
    	
 
    	
Level II
    	
 
    	
Level III
    	
 
    	
Level IV
    	
 
    	
Level V
    	
 
    
	
Facility Fee   Rate:
    	
 
    	
0.040
    	
%
    	
0.045
    	
%
    	
0.055
    	
%
    	
0.070
    	
%
    	
0.090
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Base Rate and   Canadian Prime Rate Margin:
    	
 
    	
0.000
    	
%
    	
0.000
    	
%
    	
0.000
    	
%
    	
0.000
    	
%
    	
0.000
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Euro-Currency   Rate, Australian Bill Rate, CDOR Rate, and HIBOR Rate Margin:
    	
 
    	
0.460
    	
%
    	
0.580
    	
%
    	
0.695
    	
%
    	
0.805
    	
%
    	
0.910
    	
%
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Letter of Credit   Fee Rate:
    	
 
    	
0.460
    	
%
    	
0.580
    	
%
    	
0.695
    	
%
    	
0.805
    	
%
    	
0.910
    	
%
    

 

For purposes of this Schedule, the following terms have the following meanings:

 

“Level I Status” exists at any date if, at such date, the Company’s Unsecured Long-Term Debt is rated AA or higher by S&P or Aa2 or higher by Moody’s.

 

“Level II Status” exists at any date if, at such date, (i) the Company’s Unsecured Long-Term Debt is rated AA- or higher by S&P or Aa3 or higher by Moody’s, and (ii) Level I Status does not exist.

 

“Level III Status” exists at any date if, at such date, (i)  the Company’s Unsecured Long-Term Debt is rated A+ or higher by S&P or A1 or higher by Moody’s, and (ii) neither Level I Status nor Level II Status exists.

 

“Level IV Status” exists at any date if, at such date, (i) the Company’s Unsecured Long-Term Debt is rated A or higher by S&P or A2 or higher by Moody’s, and (ii) neither Level I Status, Level II Status nor Level III Status exists.

 

 

“Level V Status” exists at any date if, at such date, no other Status applies.

 

“Moody’s” means Moody’s Investors Services, Inc. (or any successor thereto).

 

“S&P” means Standard & Poor’s Rating Services, a Standard & Poor’s Financial Services LLC business (or any successor thereto).

 

“Status” refers to the determination of which of Level I Status, Level II Status, Level III Status, Level IV Status or Level V Status exists at any date.

 

The credit ratings to be utilized for purposes of this Schedule are those assigned to the senior unsecured long-term debt securities of the Company without third-party credit enhancement (the “Company’s Unsecured Long-Term Debt”), and any ratings assigned to any other debt security of the Company shall be disregarded.  The ratings in effect for any day are those in effect at the close of business on such day. In the case of split ratings from S&P and Moody’s, the rating to be used to determine the applicable Status is the higher of the two (e.g., AA/Aa3 results in Level I Status); provided that if the split is more than one full rating category, the rating one rating category below the higher rating shall be used (e.g., AA-/A2 results in Level III Status and AA/B2 results in Level II Status).

 

 

SCHEDULE 2.19

 

	
ISSUING LENDER
    	
 
    	
LETTER OF CREDIT
   COMMITMENT
    	
 
    
	
JPMorgan Chase   Bank, N.A.
    	
 
    	
$
    	
20,000,000
    	
 
    
	
BNP Paribas
    	
 
    	
$
    	
20,000,000
    	
 
    
	
Citibank, N.A.
    	
 
    	
$
    	
20,000,000
    	
 
    
	
Bank of America,   N.A.
    	
 
    	
$
    	
20,000,000
    	
 
    
	
MUFG   Bank, Ltd.
    	
 
    	
$
    	
20,000,000
    	
 
    
	
TOTAL
    	
 
    	
$
    	
100,000,000
    	
 
    

 

 

SCHEDULE 4.05

 

None.

 

 

EXHIBIT A

 

FORM OF NOTE

 

THIS NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MAY NOT BE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS AND PROVISIONS OF THE CREDIT AGREEMENT REFERRED TO BELOW.  TRANSFERS OF THIS NOTE AND THE OBLIGATIONS REPRESENTED HEREBY MUST BE RECORDED IN THE REGISTER MAINTAINED BY THE ADMINISTRATIVE AGENT PURSUANT TO THE TERMS OF SUCH CREDIT AGREEMENT.

 

New York, New York

 

, 201  

 

For value received,                         , a             corporation (the “Borrower”), promises to pay to the order of                        (the “Lender”), for the account of its Applicable Lending Office, the unpaid principal amount of each Loan made by the Lender to the Borrower pursuant to the Credit Agreement referred to below on the maturity date provided for in the Credit Agreement.  The Borrower promises to pay interest on the unpaid principal amount of each such Loan on the dates and at the rate or rates and in the currency provided for in the Credit Agreement.  All such payments of principal and interest shall be made (i) if in dollars, in lawful money of the United States in Federal or other immediately available funds at the office of JPMorgan Chase Bank, N.A., 10 S Dearborn, Chicago, IL 60603, or (ii) if in Australian Dollars, Canadian Dollars, HK Dollars or in an Alternative Currency, in such funds as may then be customary for the settlement of international transactions in such currency at the place specified for payment thereof pursuant to the Credit Agreement.

 

All Loans made by the Lender, the respective types and maturities and currencies thereof and all repayments of the principal thereof shall be recorded by the Lender and, if the Lender so elects in connection with any transfer or enforcement hereof, appropriate notations to evidence the foregoing information with respect to each such Loan then outstanding may be endorsed by the Lender on the schedule attached hereto, or on a continuation of such schedule attached to and made a part hereof; provided that the failure of the Lender to make any such recordation or endorsement shall not affect the obligations of the Borrower hereunder or under the Credit Agreement.

 

This note is one of the Notes referred to in the Credit Agreement, dated as of October 26, 2018 (as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among The Estée Lauder Companies Inc., the Eligible Subsidiaries from time to time party thereto, the lenders from time to time party thereto,

 

 

JPMorgan Chase Bank, N.A., as Administrative Agent, and the Issuing Lenders from time to time party thereto.  Terms defined in the Credit Agreement are used herein with the same meanings.  Reference is made to the Credit Agreement for provisions for the prepayment hereof and the acceleration of the maturity hereof.

 

[Pursuant to the terms of the Credit Agreement, the Company has unconditionally guaranteed the full and punctual payment of all amounts payable under this Note.]

 

NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN OR IN THE CREDIT AGREEMENT, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AND IN ACCORDANCE WITH THE REGISTRATION AND OTHER PROVISIONS OF SECTION 10.06 OF THE CREDIT AGREEMENT.

 

This note shall be governed by, and construed in accordance with, the laws of the State of New York.

 

 

	
 
    	
[THE BORROWER]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

LOANS AND PAYMENTS OF PRINCIPAL

 

	
Date
    	
 
    	
Amount of
   Loan
    	
 
    	
Type of
   Loan
    	
 
    	
Amount of
   Principal
   Repaid
    	
 
    	
Notation
   Made By
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

EXHIBIT B

 

FORM OF COMPETITIVE BID QUOTE REQUEST

 

[Date]

 

To:                                                                             JPMorgan Chase Bank, N.A. (the “Administrative Agent”)

 

From:                                                             [BORROWER]

 

Re:                                                                             The Credit Agreement, dated as of October 26, 2018 (as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among The Estée Lauder Companies Inc., the Eligible Subsidiaries from time to time party thereto, the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the Issuing Lenders from time to time party thereto

 

We hereby give notice pursuant to Section 2.03 of the Credit Agreement that we request Competitive Bid Quotes for the following proposed Competitive Bid Borrowing(s):

 

Date of Borrowing:

 

	
Principal Amount(1)
    	
 
    	
Interest Period(2)
    	
 
    	
Currency
    
	
$
    	
 
    	
 
    	
 
    	
 
    	
 
    
						

 

Such Competitive Bid Quotes should offer a Competitive Bid [Margin] [Absolute Rate]. [The applicable base rate is the London Interbank Offered Rate.]

 

Terms used herein have the meanings assigned to them in the Credit Agreement.

 

[Signature Pages Follow]

 

(1)  Amount must be, (x) in the case of a Dollar-Denominated Borrowing, in a minimum aggregate Dollar Amount of $20,000,000 and any larger multiple of $1,000,000 and (y) in the case of an Alternative Currency Borrowing, in a minimum aggregate Dollar Amount of $5,000,000 and in integral multiples of 500,000 units of the applicable Alternative Currency.

 

(2)  Not less than one month (LIBOR Auction) or not less than 7 days (Absolute Rate Auction), subject to the provisions of the definition of Interest Period.

 

 

IN WITNESS WHEREOF, the undersigned has caused this Competitive Bid Quote Request to be executed and delivered by as of the date set forth above.

 

 

	
 
    	
[BORROWER]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

EXHIBIT C

 

FORM OF INVITATION FOR COMPETITIVE BID QUOTES

 

To:                                                                             [Name of Lender]

 

Re:                             Invitation for Competitive Bid Quotes to [BORROWER] (the “Borrower”)

 

Pursuant to Section 2.03 of the Credit Agreement, dated as of October 26, 2018, among The Estée Lauder Companies Inc., the Eligible Subsidiaries from time to time party thereto, the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the Issuing Lenders from time to time party thereto, we are pleased on behalf of the Borrower to invite you to submit Competitive Bid Quotes to the Borrower for the following proposed Competitive Bid Borrowing(s):

 

Date of Borrowing:

 

	
Principal Amount(3)
    	
 
    	
Interest Period(4)
    	
 
    	
Currency
    
	
$
    	
 
    	
 
    	
 
    	
 
    	
 
    
						

 

Such Competitive Bid Quotes should offer a Competitive Bid [Margin] [Absolute Rate].  [The applicable base rate is the London Interbank Offered Rate.]

 

Please respond to this invitation by no later than 9:30 a.m. (New York City time) on [date].

 

	
 
    	
JPMORGAN CHASE BANK, N.A., as Administrative   Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Authorized Officer
    

 

(3)  Amount must be (x) in the case of a Dollar-Denominated Borrowing, in a minimum aggregate Dollar Amount of $20,000,000 and any larger multiple of $1,000,000 and (y) in the case of an Alternative Currency Borrowing, in a minimum aggregate Dollar Amount of $5,000,000 and in integral multiples of 500,000 units of the applicable Alternative Currency.

 

(4)  Not less than one month (LIBOR Auction) or not less than 7 days (Absolute Rate Auction), subject to the provisions of the definition of Interest Period.

 

 

EXHIBIT D

 

FORM OF COMPETITIVE BID QUOTE

 

To:                                                                             JPMorgan Chase Bank, N.A., as Administrative Agent

 

Re:                                                                             Competitive Bid Quote to [BORROWER] (the “Borrower”)

 

In response to your invitation on behalf of the Borrower dated               , 20   , we hereby make the following Competitive Bid Quote on the following terms:

 

1.                                      Quoting Lender:

2.                                      Person to contact at Quoting Lender:

3.                                      Date of Borrowing:                     (5)

4.                                      We hereby offer to make Competitive Bid Loan(s) in the following principal amounts, for the following Interest Periods and at the following rates:

 

	
Principal
   Amount(6)
    	
 
    	
Currency
    	
 
    	
Interest
   Period(7)
    	
 
    	
Competitive Bid
   [Margin](8)
    	
 
    	
[Absolute Rate](9)
    
	
$
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
$
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

(5)  As specified in the related Invitation.

 

(6)  Principal amount bid for each Interest Period may not exceed principal Dollar Amount requested.  Specify aggregate limitation if the sum of the individual offers exceeds the amount the Lender is willing to lend.  Bids (w) may be greater than or less than the Commitment of the Quoting Lender, (x) must be (1) in the case of a Dollar-Denominated Borrowing, $5,000,000 or a larger multiple of $1,000,000 and (2) in the case of an Alternative Currency Borrowing, $500,000 or an integral multiple of 500,000 units of the applicable Alternative Currency, (y) may not exceed the principal amount of Competitive Bid Loans for which offers were requested and (z) may be subject to an aggregate limitation as to the principal amount of Competitive Bid Loans for which offers being made by such Quoting Lender may be accepted

 

(7)  Not less than one month or not less than 7 days, as specified in the related Invitation.  No more than five bids are permitted for each Interest Period specified herein.

 

(8)  Margin over or under the London Interbank Offered Rate determined for the applicable Interest Period.  Specify percentage (to the nearest 1/10,000 of 1%) and specify whether “PLUS” or “MINUS”.

 

(9)  Specify rate of interest per annum (to the nearest 1/10,000th of 1%).

 

 

[provided, that the aggregate principal amount of Competitive Bid Loans for which the above offers may be accepted shall not exceed $            .](10)

 

We understand and agree that the offer(s) set forth above are subject to the satisfaction of the applicable conditions set forth in the Credit Agreement (as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), dated as of October 26, 2018 among The Estée Lauder Companies Inc., the Eligible Subsidiaries from time to time party thereto, the lenders from time to time party thereto, yourselves, as Administrative Agent, and the Issuing Lenders from time to time party thereto, irrevocably obligates us to make the Competitive Bid Loan(s) for which any offer(s) are accepted, in whole or in part.

 

 

	
 
    	
 
    	
Very truly yours,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
[NAME OF LENDER]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Authorized Officer
    

 

(10)  See supra note 7.

 

 

EXHIBIT E-1

 

OPINION OF
 COUNSEL FOR THE OBLIGORS

 

Please see the final opinion.

 

 

EXHIBIT E-2

 

OPINION OF
 COUNSEL FOR ESTÉE LAUDER NV

 

Please see the final opinion.

 

 

EXHIBIT F

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

AGREEMENT dated as of           , 20   among [NAME OF ASSIGNOR] (the “Assignor”), [NAME OF ASSIGNEE] (the “Assignee”), [THE ESTÉE LAUDER COMPANIES INC.,] JPMORGAN CHASE BANK, N.A., as Administrative Agent (the “Administrative Agent”) and the [ISSUING LENDERS].

 

WHEREAS, this Assignment and Assumption Agreement (the “Agreement”) relates to the Credit Agreement, dated as of October 26, 2018 (as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among The Estée Lauder Companies Inc., the Eligible Subsidiaries from time to time party thereto, the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the Issuing Lenders from time to time party thereto;

 

WHEREAS, as provided under the Credit Agreement, the Assignor has a Commitment to make Loans and participate in Letters of Credit in an aggregate principal Dollar Amount at any time outstanding not to exceed $          ;

 

WHEREAS, Committed Dollar Loans made to the Borrowers by the Assignor under the Credit Agreement in the aggregate principal amount of $           are outstanding at the date hereof;

 

[WHEREAS, Committed Alternative Currency Loans denominated in [currency] made to the Borrowers under the Credit Agreement in the aggregate principal Dollar Amount of $           are outstanding on the date hereof;] [Repeat this whereas clause for loans outstanding in more than one currency]

 

[WHEREAS, Committed Australian Dollar Loans made to the Borrowers under the Credit Agreement in the aggregate principal Dollar Amount of $           are outstanding on the date hereof;]

 

[WHEREAS, Committed Canadian Dollar Loans made to the Borrowers under the Credit Agreement in the aggregate principal Dollar Amount of $           are outstanding on the date hereof;]

 

[WHEREAS, Committed HK Dollar Loans made to the Borrowers under the Credit Agreement in the aggregate principal Dollar Amount of $           are outstanding on the date hereof;]

 

WHEREAS, Letters of Credit with a total Dollar Amount available for drawing thereunder of $           are outstanding at the date hereof;

 

 

WHEREAS, the Assignor proposes to assign to the Assignee all of the rights of the Assignor under the Credit Agreement in respect of a portion of its Commitment thereunder in a Dollars Amount equal to $           (the “Assigned Amount”), together with a corresponding portion of its outstanding Committed Dollar Loans [Committed Australian Dollar Loans] [Committed Canadian Dollar Loans] [Committed HK Dollar Loans] [, Committed Alternative Currency Loans denominated in such currency] and Letter of Credit Liabilities, and the Assignee proposes to accept assignment of such rights and assume the corresponding obligations from the Assignor on such terms;

 

NOW, THEREFORE, in consideration of the foregoing and the mutual agreements contained herein, the parties hereto agree as follows:

 

SECTION 1.  Definitions. All capitalized terms used herein but not otherwise defined herein shall have the respective meanings set forth in the Credit Agreement.

 

SECTION 2.  Assignment.  The Assignor hereby assigns and sells to the Assignee all of the rights of the Assignor under the Credit Agreement to the extent of the Assigned Amount, and the Assignee hereby accepts such assignment from the Assignor and assumes all of the obligations of the Assignor under the Credit Agreement to the extent of the Assigned Amount, including the purchase from the Assignor of the corresponding portion of the principal amount of the Committed Facility Loans [Committed Australian Dollar Loans] [Committed Canadian Dollar Loans] [Committed HK Dollar Loans] [and Committed Alternative Currency Loans denominated in [currency]] made by the Assignor outstanding at Assignment Effective Date (as defined below).  Following (i) the execution of this Agreement by the Assignor, the Assignee, [the Company,] the Administrative Agent and [each Issuing Lender], (ii) the Assignee’s completed Administrative Questionnaire (unless the Assignee is already a Lender under the Credit Agreement) and (iii) the payment of the amounts specified in Section 10.06(c) of the Credit Agreement and Section 3 hereof required to be paid, it will be delivered to the Administrative Agent for acceptance by it and recording by the Administrative Agent pursuant to Section 10.06 of the Credit Agreement, and be effective as of such date (the “Assignment Effective Date”).  Upon such acceptance and recording (i) the Assignee shall, as of the Assignment Effective Date, succeed to the rights and be obligated to perform the obligations of a Lender under the Credit Agreement with Commitments in an amount equal to the Assigned Amount, and (ii) the Commitments of the Assignor shall, as of the Assignment Effective Date, be reduced by a like amount and the Assignor released from its obligations under the Credit Agreement to the extent such obligations have been assumed by the Assignee.  The assignment provided for herein shall be without recourse to the Assignor.

 

 

SECTION 3.  Payments.  As consideration for the assignment and sale contemplated in Section 2 hereof, the Assignee shall pay to the Assignor on the date hereof in Federal funds the amount heretofore agreed between them.  It is understood that facility and Letter of Credit fees accrued to the date hereof in respect of the Assigned Amount are for the account of the Assignor and such fees accruing from and including the date hereof are for the account of the Assignee.  Each of the Assignor and the Assignee hereby agrees that if it receives any amount under the Credit Agreement which is for the account of the other party hereto, it shall receive the same for the account of such other party to the extent of such other party’s interest therein and shall promptly pay the same to such other party.

 

SECTION 4.  Consents.  This Agreement is conditioned upon the consent of [the Issuing Lenders] and [the Administrative Agent], and [so long as no Event of Default has occurred and is continuing, the Company (which consent of the Company shall not be unreasonably withheld)] pursuant to Section 10.06(c) of the Credit Agreement.  The execution of this Agreement by [the Company,] [the Issuing Lenders] and [the Administrative Agent] is evidence of this consent.  The Company agrees, and agrees to cause each other applicable Borrower, if requested by the Assignee pursuant to Section 2.05 of the Credit Agreement, to execute and deliver a Note payable to the order of the Assignee to evidence the assignment and assumption provided for herein; provided that no assignment pursuant to this Agreement shall be effective unless it has been recorded in the Register as provided in Section 10.06(g) of the Credit Agreement (including any Note).

 

SECTION 5.  Representations and Warranties of the Assignor.  The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Amount, (ii) the Assigned Amount is free and clear of any lien, encumbrance or other adverse claim, (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Agreement and to consummate the transactions contemplated hereby and (iv) it is not a Defaulting Lender; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Company, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Company, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.

 

SECTION 6.  Representations and Warranties of the Assignee.  The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Agreement and to consummate the transactions contemplated hereby and to become a Lender under

 

 

the Credit Agreement, (ii) it meets all the requirements to be an assignee under Section 10.06 of the Credit Agreement (subject to such consents, if any, as may be required thereunder), (iii) from and after the Assignment Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Amount, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by the Assigned Amount and either it, or the Person exercising discretion in making its decision to acquire the Assigned Amount, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Agreement and to purchase the Assigned Amount, (vi) it has, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement and to purchase the Assigned Amount and (vii) if it is a Non-U.S. Lender attached to this Agreement is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Assignor, the Administrative Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

 

SECTION 7.  Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York.

 

SECTION 8.  Counterparts.  This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  Delivery of an executed counterpart of a signature page of this Agreement by telecopier or electronic image scan transmission (such as a “pdf” file) will be effective as delivery of a manually executed counterpart of the Agreement.

 

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered by their duly authorized officers as of the date first above written.

 

 

	
 
    	
[NAME OF ASSIGNOR]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[NAME OF ASSIGNEE]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

	
 
    	
[Consented to and](11) Accepted: 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JPMORGAN CHASE BANK, N.A., as Administrative   Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[Consented to: 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE ESTÉE LAUDER COMPANIES INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:](12)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
[Consented to: 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[ISSUING LENDER], as Issuing Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[ISSUING LENDER], as Issuing Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

(11)  To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement.

 

(12)  To be added only if the consent of the Borrower is required by the terms of the Credit Agreement.

 

 

	
 
    	
[ISSUING LENDER], as Issuing Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[ISSUING LENDER], as Issuing Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[ISSUING LENDER], as Issuing Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title: ](13)
    

 

(13)  To be added only if the consent of the Issuing Lenders are required by the terms of the Credit Agreement.

 

 

EXHIBIT G

 

[RESERVED]

 

 

EXHIBIT H

 

ELECTION TO PARTICIPATE

 

, 201  

 

JPMorgan Chase Bank, N.A., as 
 Administrative Agent for
 the Lenders party to the Credit Agreement, dated as of October 26, 2018 (as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among The Estée Lauder Companies Inc., the Eligible Subsidiaries from time to time party thereto, the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the Issuing Lenders from time to time party thereto

 

Dear Sirs:

 

Reference is made to the Credit Agreement described above.  Terms not defined herein which are defined in the Credit Agreement have for purposes hereof the meanings provided therein.

 

The undersigned, [Name of Eligible Subsidiary], a [Jurisdiction of Formation] [Organizational Form], hereby elects to be an Eligible Subsidiary for purposes of the Credit Agreement, effective from the date hereof until an Election to Terminate shall have been delivered on behalf of the undersigned in accordance with the Credit Agreement.  The undersigned confirms that the representations and warranties set forth in Article 9 of the Credit Agreement are true and correct as to the undersigned as of the date hereof, and the undersigned agrees to perform all the obligations of an Eligible Subsidiary under, and to be bound in all respects by the terms of, the Credit Agreement, including without limitation Section 10.08 thereof, as if the undersigned were a signatory party thereto.

 

[Tax disclosure pursuant to Section 8.04.]

 

The address to which all notices to the undersigned under the Credit Agreement should be directed is:

 

[Address]

 

This instrument shall be construed in accordance with and governed by the laws of the State of New York.

 

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[NAME OF ELIGIBLE SUBSIDIARY]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
The undersigned represents and warrants that   [Name of Eligible Subsidiary] is an Eligible Subsidiary for purposes of the   Credit Agreement described above. The undersigned agrees that the Guaranty of   the undersigned contained in the Credit Agreement will apply to all   obligations of [Name of Eligible Subsidiary] under the Credit Agreement and   any Note issued by [Name of Eligible Subsidiary].
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE ESTÉE LAUDER COMPANIES INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Receipt of the above Election to Participate   is acknowledged on and as of the date set forth above.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JPMORGAN CHASE   BANK, N.A.,
   as Administrative Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

 

EXHIBIT I

 

ELECTION TO TERMINATE

 

, 201  

 

JPMorgan Chase Bank, N.A., as 
 Administrative Agent for
 the Lenders party to the Credit Agreement, dated as of October 26, 2018 (as the same may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among The Estée Lauder Companies Inc., the Eligible Subsidiaries from time to time party thereto, the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the Issuing Lenders from time to time party thereto

 

Dear Sirs:

 

Reference is made to the Credit Agreement described above.  Terms not defined herein which are defined in the Credit Agreement have for purposes hereof the meanings provided therein.

 

The undersigned, [Name of Eligible Subsidiary], a [Jurisdiction of Formation] [Organizational Form], hereby elects to terminate its status as an Eligible Subsidiary for purposes of the Credit Agreement, effective as of the date hereof.  The undersigned represents and warrants that all principal and interest on all Loans made to the undersigned and all other amounts payable by the undersigned pursuant to the Credit Agreement have been paid in full on or before the date hereof.  Notwithstanding the foregoing, this Election to Terminate shall not affect any obligation of the undersigned heretofore incurred under the Credit Agreement or any Note.

 

 

This instrument shall be construed in accordance with and governed by the laws of the State of New York.

 

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
[NAME OF ELIGIBLE SUBSIDIARY]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
The undersigned hereby agrees that the status   of [Name of Eligible Subsidiary] as an Eligible Subsidiary for purposes of   the Credit Agreement described above is terminated as of the date hereof.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
THE ESTÉE LAUDER COMPANIES INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Receipt of the above Election to Terminate is   acknowledged on and as of the date set forth above.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JPMORGAN CHASE BANK, N.A.
   as Administrative Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:Exhibit

Exhibit 10.1
[English Translation]

Term Loan Agreement

Dated as of October 29, 2018 

By and Among

Borrower: Tokin Corporation

Lender: Sumitomo Mitsui Trust Bank Limited

Development Bank of Japan Inc.

The Tokyo Star Bank, Limited 

Bangkok Bank Public Company Limited

Shinsei Bank, Limited

NEC Capital Solutions Limited

MUFG Bank, Ltd.

Arranger: Sumitomo Mitsui Trust Bank Limited

Co-arranger: Development Bank of Japan Inc.

Agent: Sumitomo Mitsui Trust Bank Limited

Table of Contents
	
		
	 
	Page

	 
	 

	1.   Definitions
	1

	 
	 

	2.   Rights and Obligations of Lenders
	14

	 
	 

	3.   Use of Proceeds
	14

	 
	 

	4.   Conditions Precedent for Making of Loans
	14

	 
	 

	5.   Making of Loans
	16

	 
	 

	6.   Refusal to Make Loans
	17

	 
	 

	7.  Increased Costs and Illegality
	17

	 
	 

	8.  Repayment of Principal
	18

	 
	 

	9.  Interest
	18

	 
	 

	10.  Prepayment
	18

	 
	 

	11.  Default Interest
	19

	 
	 

	12.  Agent Fee
	19

	 
	 

	13.  Expenses; Taxes and Public Charges
	20

	 
	 

	14.  Guarantee 
	20

	 
	 

	15.  Security 
	22

	 
	 

	16.  Performance of Borrower’s and Guarantors’ Obligations
	26

	 
	 

	17.  Distribution to Lenders
	27

	 
	 

	18.  Borrower’s Representations and Warranties
	30

	 
	 

	19.  Borrower’s and Guarantors’ Covenants
	34

	 
	 

	20.  Acceleration
	38

	 
	 

	21.  Set-Off, Exercise of Permitted Security Interests and Discretionary Disposal
	41

	 
	 

	22.  Arrangements Among Lenders
	42

	 
	 

	23.  Rights and Duties of the Agent
	43

	 
	 

	24.  Resignation and Dismissal of the Agent
	45

	 
	 

	25.  Clarification of the Intention of the Lenders
	46

	 
	 

	26.  Amendment to this Agreement
	46

	 
	 

	27.  Assignment of this Agreement
	47

	 
	 

	28.  Assignment of Loan Receivables
	48

	 
	 

	29.  Collection from Third Party
	48

	 
	 

	30.  General Provisions
	49

APPENDICES AND ATTACHMENTS    

APPENDICES
	
		
	Appendix 1
	List of Parties

	Appendix 2
	Repayment Schedule

ATTACHMENTS
	
		
	Attachment 1
	Permitted Commitment Lines

	Attachment 2
	Form of Compliance Certificate

	Attachment 3-1
	Form of Financial Covenant Compliance Report

	Attachment 3-2
	Form of Borrower Parent Company’s Financial Related Event Report

	Attachment 4
	Qualified Assignee

	Attachment 5-1
	Form of Guarantee Letter (for TOKIN EMC Engineering Co., Ltd.)

	Attachment 5-2
	Form of Guarantee Letter (for KEMET Corporation)

	Attachment 5-3
	Form of Guarantee Letter (for Other Companies)

	Attachment 6
	Real Estate

	Attachment 7
	Lawsuit, Arbitration, Administrative Procedure, etc.

	Attachment 8
	Existing Security Interests and Guarantees etc.

	Attachment 9
	Permitted ICL Balances

	Attachment 10
	Calculation Method for Net Leverage Ratio, Operating Profit and Net Assets of Borrower Parent Company

	Attachment 11
	Calculation Method for EBITDA

TERM LOAN AGREEMENT

Tokin Corporation (hereinafter referred to as the “Borrower”); the financial institutions described in Appendix 1 of this Agreement (hereinafter respectively referred to as a “Lender”); and Sumitomo Mitsui Trust Bank, Limited (hereinafter referred to as the “Agent”), dated as of October 29, 2018, enter into the following Term Loan Agreement (hereinafter referred to as this “Agreement”).
		
	1.
	DEFINITIONS

In this Agreement, the following terms shall have the meanings provided for below, unless it is apparent that such terms mean otherwise in the context hereof.
		
	1.1
	“Accounting Term” (kessanki) means the period from the commencement day until the last day of a fiscal year.

		
	1.2
	“Agent Fee” (agent fee) means the fees that the Borrower shall pay to the Agent as separately agreed upon between the Borrower and the Agent.

		
	1.3
	“Agent Services” (agent gyomu) means the services provided for in the provisions of this Agreement whereby the Agent was entrusted by All Lenders to perform for the benefit of All Lenders.

		
	1.4
	“All Lenders” (zen kashitsukenin) means All Term Loan A Lenders and All Term Loan B Lenders, collectively.

		
	1.5
	“All Term Loan A Lenders” (term loan A zen-kashitsukenin) means, prior to the disbursement of Term Loan A, all Term Loan A Lenders, collectively, and, after the disbursement of Term Loan A, all Term Loan A Lenders having claims against Borrower for payment of the Outstanding Term Loan A Individual Loan, collectively.

		
	1.6
	“All Term Loan B Lenders” (term loan B zen-kashitsukenin) means, prior to the disbursement of Term Loan B, all Term Loan B Lenders, collectively, and, after the disbursement of Term Loan B, all Term Loan B Lenders having claims against Borrower for payment of the Outstanding Term Loan B Individual Loans, collectively.

		
	1.7
	“Applicable Interest Rate” (tekiyo-riritsu) means the Term Loan A Applicable Interest Rate and the Term Loan B Applicable Interest Rate, as applicable.

		
	1.8
	“Assignee” (yuzuriukenin) means the person who receives the assignment of the Loan Receivables in accordance with Clause 28.1.

		
	1.9
	“Assignee of the Borrower Subsidiaries (Share Collateral)” has the meaning ascribed to it in Clause 15.5

		
	1.10
	“Assigning Lender” (chii jotonin) has the meaning ascribed to it in Clause 27.2. 

		
	1.11
	“Assignor” (yuzuriwatashinin) means the person who assigns the Loan Receivables in accordance with Clause 28.1.

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	1.12
	“Borrower’s Breach of Obligations etc.” (kariirenin-to gimuihan-to) has the meaning ascribed to it in Clause 30.2(iii).

		
	1.13
	“Borrower Group Company(ies)” (kariirenin group gaisha) means Borrower and Borrower’s subsidiaries, individually or collectively.

		
	1.14
	“Borrower Material Subsidiaries” (kariirenin juyo ko-gaisha) means a subsidiary of the Borrower that fall under any of the following conditions.  Condition (ii) is tested based on the Financial Covenant Compliance Report for the most recent fiscal year submitted by the Borrower; provided, however, that the Borrower Overseas Sales Companies shall not be included in the Borrower Material Subsidiaries until the end of December 2019 even if such Borrower Overseas Sales Companies meet condition (ii) or (iv) below.

		
	(i)
	a domestic subsidiary of the Borrower (other than NT Sales Co., Ltd. and Nippon Yttrium Co., Ltd.);

		
	(ii)
	a subsidiary of the Borrower whose EBITA calculated on the same basis as the consolidated EBITDA is to 10% or more of the consolidated EBITDA for the period with respect to the relevant Financial Covenant Compliance Report;

		
	(iii)
	a subsidiary of the Borrower which has a function to manufacture products; or

		
	(iv)
	a subsidiary of the Borrower whose gross assets (excluding intra-group assets) is 10% or more of the consolidated gross assets of the Borrower Group Companies.

		
	1.15
	“Borrower Overseas Sales Companies” (kariirenin kaigai hansha) means TOKIN America Inc, TOKIN Singapore, TOKIN Shanghai Co., Ltd., TOKIN Hong Kong Ltd., and TOKIN Taiwan Co., Ltd.

		
	1.16
	“Borrower Parent Company” (kariirenin oya-gaisha) means KEMET Corporation, a Delaware corporation.

		
	1.17
	“Borrower Parent Company, Etc.” means the Borrower Parent Company, KEC and KEMS, collectively.

		
	1.18
	 “Borrower Parent Company’s Financial Related Event” (kariirenin oya-gaisha zaimuseigen-jiyu) means the events set forth in Clause 20.2(xi).

		
	1.19
	“Borrower Parent Company’s Financial Related Event Report” (kariirenin oya-gaisha zaimuseigen-jiyu hokokusho) means the report set forth in Clause 19.1(ii)(f) to be prepared in the form of Attachment 3-2.

		
	1.20
	“Borrower Subsidiaries (Guarantee)” (kariirenin ko-gaisha (hosho)) means the Borrower Overseas Sales Companies, TOKIN Electronics (Xiamen) Co., Ltd. and TOKIN EMC Engineering Co., Ltd. 

		
	1.21
	“Borrower Subsidiaries (Share Collateral)” (kariirenin ko-gaisha (kabushiki tanpo)) means TOKIN Electronics (Thailand) Co., Ltd., TOKIN Electronics (Vietnam) Co., Ltd, TOKIN Electronics (Xiamen) Co., Ltd., TOKIN EMC Engineering Co., Ltd and the 

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Borrower Material Subsidiaries (with respect to the Borrower Overseas Sales Companies, limited to those which are Borrower Material Subsidiaries on or after July 1, 2020).
		
	1.22
	“Break Funding Cost” (seisankin) means Term Loan A Break Funding Cost and Term Loan B Break Funding Cost, individually or collectively.

		
	1.23
	“Business Day” (eigyobi) means any day other than those that are bank holidays under the Laws and Ordinances of Japan.

		
	1.24
	“Collateral” (tanpo mokutekibutsu) means properties and rights that are subject to the Security Interests.

		
	1.25
	“Commitment Ratio” (sanka-wariai) means prior to the disbursement of any of the Loans for each Lender, the ratio of the Individual Loan Amount associated with all Loans of such Lender against the total lending amount associated with all Loans, and after the disbursement of all Loans, the ratio of the principal amount in the Outstanding Individual Loan Money associated with all Loans of such Lender against the Total Loan Amount in the Outstanding Individual Loan Money associated with all Loans of such Lender.

		
	1.26
	“Compliance Certificate” (compliance certificate) means a document set forth in Clause 19.1(ii)(d) prepared in the form and with substance of Attachment 2.

		
	1.27
	“Costs Increased Lender” (zokahiyo-hassei-kashitsukenin) means a Lender that has incurred Increased Costs. 

		
	1.28
	“Defaulted Obligations” (riko chitai saimu) has the meaning ascribed to it in Clause 11.1.

		
	1.29
	“Dilution” (kihakuka) means in a case where an issuer of shares has issued securities or rights (hereinafter referred to as “Potential Shareholding Rights” (senzaiteki kabushiki hoyuken) in this definition) which through the exercise of stock options (including stock options attached to convertible bonds) that allow the demand for delivery of shares, through the exercise of a put option on shares with put option or the invocation of a call option on class shares subject to class-wide call that would result in the delivery of shares of such issuer in exchange of acquisition, or through the exercise of other similar demand or right, shares of such issuer will be delivered, the state assuming that in accordance with the terms of such Potential Shareholding Rights all shares of such issuer have been issued or transferred to the holder of such Potential Shareholding Rights. 

		
	1.30
	“Drawdown Date” (jikkobi) means the Term Loan A Drawdown Date and the Term Loan B Drawdown Date, individually or collectively. 

		
	1.31
	“Due Date” (bensaikijitsu) means, with respect to the principal of Term Loan A, the Term Loan A Interim Principal Due Date and the Term Loan A Maturity Date; with respect to the principal of Term Loan B, the 0Term Loan B Maturity Date; with respect to interest associated with each Loan, each Interest Payment Date associated with each Term Loan; and with respect to other amounts, the date provided for as the date on which payments are due and payable in accordance with this Agreement.

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	1.32
	“Due Time” (shiharai-jigen) means, if any Due Dates are provided for herein, 11:00 AM on such Due Date.

		
	1.33
	“EBITDA” means an amount calculated based on the formula set forth in Attachment 11.

		
	1.34
	“Exemption Event” (kashitsukefuno-jiyu) means (i) an outbreak of a natural disaster, war or terrorist attack, (ii) an interruption or difficulty in the electrical, communications or various settlement systems, (iii) any event that occurs within the Tokyo Interbank Market that disables loans in yen, and (iv) any other event which is equivalent to (i) through (iii) above and is not attributable to the Lenders that results in the Majority Lenders (if it is difficult to clarify the intention of the Majority Lenders, the Agent) reasonably determining that it is impossible for any or all of the Lenders to make the Loan.

		
	1.35
	“Existing KEMET Loans” (KEMET kizon kariirekin) means term loans in the aggregate principal amount of U.S. $323,437,500 (as of the Drawdown Date) outstanding under the Term Loan Agreement between KEMET and Bank of America Corporation existing as of the date of this Agreement.

		
	1.36
	“Existing Loans” (kizon kariirekin) means, with respect to Borrower Group Companies, all Financial Indebtedness (including bill discount line, corporate bonds and loan obligations pursuant to overdraft line and commitment line, but excluding lease obligations, instalment obligations, the loans under the Permitted ICL Agreements (Borrower Group Company) and other Financial Indebtedness that is permitted under this Agreement) not pursuant to the Loan-Related Agreements existing as of the Drawdown Date. 

		
	1.37
	“Existing Commitment Lines” (kizon yushi-waku) means all credit lines (including bill discount lines, overdraft lines and commitment lines) not pursuant to the Loan-Related Agreements that exist with respect to Borrower Group Companies as of the Drawdown Date.

		
	1.38
	“Existing Security Interests and Guarantees etc.” (kizon tanpoken hosho to) means all security interests and guarantees (including keepwell agreements and other similar agreements, but excluding statutory liens (sakidori-tokken), rights of retention (ryuchi-ken), and other security interests that arise pursuant to Laws and Ordinances) not pursuant to the Loan-Related Agreements existing with respect to Borrower Group Companies as of the Drawdown Date.

		
	1.39
	“Financial Covenants” (zaimu seigen joko) means the provisions relating to restrictions on Borrower’s financial condition on a consolidated basis, as set forth in the items of Clause 19.2.

		
	1.40
	“Financial Covenant Compliance Report” (zaimu seigen joko no junshu jokyo hokokusho) means the report set forth in Clause 19.1(ii)(e) prepared in the form of Attachment 3-1.

		
	1.41
	“Financial Indebtedness” (kinyu saimu) means all (i) short-term loans, (ii) commercial paper, (iii) long-term loans (including any that will become due and payable within one 

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year from the execution date of this Agreement), (iv) corporate bonds (including convertible bonds and convertible bonds with stock options), and (v) other debt obligations similar to any of (i) through (iv), that are not pursuant to the Loan-Related Agreements.
		
	1.42
	“Guarantee” (hon hosho) means a guarantee performed pursuant to the Guarantee Agreements.

		
	1.43
	“Guarantee Agreements” (hon hosho keiyaku) means guarantee letters in accordance with this Agreement, individually or collectively.

		
	1.44
	“Guarantee Claims” (hon hosho saiken) means claims associated with the Guarantee Obligations.

		
	1.45
	“Guarantee Obligations” (hon hosho saimu) means obligations which a Guarantor owes to Lenders pursuant to a Guarantee.

		
	1.46
	“Guarantor(s)” (hoshonin) means person who provide Guarantees pursuant to this Agreement, individually or collectively.

		
	1.47
	 “Increased Costs” (zokahiyo) means the increased portion (the amount reasonably calculated by a Lender) of expenses, in cases where the expenses for the drawdown or holding of an Individual Loan, continuance of the Lending Obligations or preservation of the rights by such Lender are substantially increased (excluding any increase caused by a change in tax rates on taxable incomes of such Lender) due to, among other things, (i) any enactment or amendment of Laws and Ordinances, or any change in the interpretation or application thereof, (ii) establishment or increase in capital reserves, or (iii) any change in accounting regulations or practice, in each case after the Drawdown Date.

		
	1.48
	“Individual Loan” (kobetsu-kashitsuke) means Term Loan A Individual Loan and Term Loan B Individual Loan, individually or collectively. 

		
	1.49
	“Individual Loan Money” (kobetsu-kashitsuke-jikkokin) means Term Loan A Individual Loan Money and Term Loan B Individual Loan Money, individually or collectively, and the “Individual Loan Amount” (kobetsu-kashitsuke-jikkokingaku) means Term Loan A Individual Loan Amount and Term Loan B Individual Loan Amount, individually or collectively. 

		
	1.50
	“Individual Loan Money Reduced Amount” (kobetsu-kashitsuke-jikkokingaku-genshogaku) has the meaning ascribed to it in Clause 27.2(i).

		
	1.51
	“Initial Business Plan” (tosho jigyo keikaku) means the consolidated business plan for the Borrower Group Companies prepared by the Borrower and submitted to the Lenders through Agent on August 10, 2018.

		
	1.52
	“Initial Related Agreement(s)” (hon tosho kanren keiyaku) means (i) this Agreement and (ii) the Security Agreements, the Guarantee Agreements and the Permitted ICL Agreement to be executed prior to the disbursement of the Loans, individually or collectively.

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	1.53
	“Insolvency Proceedings” (tosan tetsuzuki) means bankruptcy proceedings, corporate reorganization proceedings, special liquidation, civil rehabilitation proceedings, special mediation proceedings and other similar legal insolvency proceedings (including similar proceedings outside Japan).

		
	1.54
	“Interest Calculation Period” (risoku keisan kikan) means the Term Loan A Interest Calculation Period for Term Loan A, and the Term Loan B Interest Calculation Period for Term Loan B.

		
	1.55
	“Interest Payment Date” (riharaibi) means the Term Loan A Interest Payment Date for Term Loan A, and the Term Loan B Interest Payment Date for Term Loan B.

		
	1.56
	“KEC” means KEMET Electronics Corporation, a Delaware corporation.

		
	1.57
	“KEMS” means KEMET Electronics Marketing (S) Pte Ltd., a Singapore corporation.

		
	1.58
	“Laws and Ordinances” (horei-tou) means the treaties, laws, municipal ordinances, cabinet orders, ministerial ordinances, rules, announcements, judgments, decisions, arbitral awards, directives, and published policies of relevant authorities, which apply to this Agreement, the transactions pursuant hereto or the parties hereto.

		
	1.59
	“Lending Obligation” (kashitsuke-gimu) means Term Loan A Lending Obligation and Term Loan B Lending Obligation, individually or collectively. 

		
	1.60
	“Loan Receivables” (kashitsuke-saiken) means claims associated with Term Loan A Individual Loan and Term Loan B Individual Loan, individually or collectively.

		
	1.61
	“Loan(s)” (hon-kashitsuke) means the Term Loan A and the Term Loan B, individually or collectively. 

		
	1.62
	“Loan-Related Agreements” (hon kashitsuke kanren keiyaku) means this Agreement, the Security Agreements and the Guarantee Agreements, individually or collectively.

		
	1.63
	“Loan-Related Obligations” (hon kashitsuke kanren saimu) has the meaning ascribed to it in Clause 14.1.

		
	1.64
	“Loss” (songai-tou) means reasonable damage, losses and expenses (including reasonable out-of-pocket and documented attorneys’ fees) actually incurred.

		
	1.65
	“Majority Lender(s)” (tasu-kashitsukenin) means one or more Lenders whose Commitment Ratio(s) amount to no less than 50.1% or more in total as of the Intention Clarification Time. “Intention Clarification Time” means, in cases where the Lender determines that any event requiring instructions by All Lenders or the Majority Lenders has occurred, the point in time when the Agent receives notice in Clause 25.1(i), in cases where the Agent determines it necessary to clarify the intention of All Lenders or the Majority Lenders, the point in time when the Agent gives the notice provided for in Clause 25.2, and in cases where the Borrower determines it necessary to clarify the intention of All Lenders or the Majority Lenders, the point in time when the Agent receives notice in Clause 25.3.

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	1.66
	“Maturity Date” (mankibi) means the Term Loan A Maturity Date and the Term Loan B Maturity Date, individually or collectively.

		
	1.67
	“New Subsidiaries” (shin-ko-gaisha) means subsidiaries defined in Clause 14.2.

		
	1.68
	“Outstanding Individual Loan Money” (kobetsu-kashituke-mibaraikin) means the Outstanding Term Loan A Individual Loan and Outstanding Term Loan B Individual Loan, individually and collectively.

		
	1.69
	“Outstanding Term Loan A Individual Loan” (term loan A kobetsu-kashituke-mibaraikin) means principal, interest and default interest associated with the Term Loan A Individual Loans, the Term Loan A Break Funding Cost, and any other monies which the Borrower is obligated to pay pursuant to this Agreement.

		
	1.70
	“Outstanding Term Loan B Individual Loan” (term loan B kobetsu-kashituke-mibaraikin) means principal, interest and default interest associated with the Term Loan B Individual Loans, the Term Loan B Break Funding Cost, and any other monies which the Borrower is obligated to pay pursuant to this Agreement.

		
	1.71
	“Parent Company” (oya-gaisha), “Subsidiary” (ko-gaisha) and “Affiliate” (kanren-gaisha) shall be as defined under Article 8 of the Regulation concerning Terminology, Forms and Method of Preparation of Financial Statements, etc.

		
	1.72
	“Permitted Commitment Lines” (kyoyo yushi-waku) means the lines of credit created for the Borrower Group Companies set forth in Attachment 1.

		
	1.73
	“Permitted ICL” (kyoyo ICL) means loans disbursed pursuant to the Permitted ICL Agreements.

		
	1.74
	“Permitted ICL Agreement(s)” (kyoyo ICL keiyaku) means the Permitted ICL Agreement (Borrower Parent Company) and the Permitted ICL Agreements (Borrower Group Company), individually or collectively.

		
	1.75
	“Permitted ICL Agreements (Borrower Group Company)” (kyoyo ICL keiyaku (kariirenin group gaisha)) means (i) the existing loan agreement already executed between the Borrower and TOKIN EMC Engineering Co., Ltd. as of the execution date of this Agreement (provided, however, that such loan agreement shall be amended in a way reasonably satisfactory to the Lenders and the loan amount, together with the loan under the loan agreements in item (ii) below, shall be limited to 300 million yen), and (ii) the existing loan agreements already executed between the Borrwer and TOKIN Europe GmbH as of the execution date of this Agreement (provided, however, that such loan agreement shall be amended in a way reasonably satisfactory to the Lenders and the loan amount, together with the loan under the loan agreements in item (i) above, shall be limited to 300 million yen), and (iii) a loan agreement to be executed in or around November 2018 between the Borrower and TOKIN EMC Engineering Co., Ltd. in the form and substance reasonably satisfactory to the Lenders (provided, however, that the amount of the loan shall be 400,000,000 yen or less and such loan shall be repaid in full by June 30, 2019). 

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	1.76
	“Permitted ICL Agreement (Borrower Parent Company)” (kyoyo ICL keiyaku (kariirenin oya-gaisha) means [the loan agreement to be executed by and between the Borrower and the Borrower Parent Company having form and content reasonably satisfactory to Lenders (no greater than [33 billion yen]; limited to the purpose of repayment of the Existing KEMET Loans)].

		
	1.77
	“Permitted Reorganization” (kyoyo soshiki-saihen) means (i) a merger between any of theBorrower’s Subsidiaries (excluding the Borrower Subsidiaries (Share Collateral); the same applies hereinafter unless otherwise provided) and the Borrower Parent Company, Etc., or between the Borrower’s Subsidiaries, (ii) a business assignment by any of the Borrower’s Subsidiaries to the Borrower Parent Company, Etc. or other Borrower’s Subsidiaries, (iii) an assignment or other disposal by the Borrower of shares of any of the Borrower’s Subsidiaries to the Borrower Parent Company, Etc. or other Borrower’s Subsidiaries, and (iv) a transfer or other disposal of the shares in TOKIN Electronics (Vietnam) Co., Ltd. and TOKIN Electronics (Xiamen) Co., Ltd. from TOKIN Singapore Pte. Ltd. to the Borrower Parent Company, Etc., the Borrower or any of the Borrower’s Subsidiaries (including Borrower Subsidiaries (Share Collateral)).

		
	1.78
	“Planned Guarantor(s)” (hoshonin yoteisha) means the entities that are who is obligated to provide the Guarantee at the present time and in the future pursuant to this Agreement ((i) such persons are the Borrower Parent Company and the Borrower Subsidiaries (Guarantee) as of the execution date of this Agreement, and (ii) in a case where the Borrower gives notice of a decision to the effect that a certain person will be added to the Guarantors pursuant to Clause 14.2, such person for the period from the time of such notice until such person submits a guarantee letter in accordance with Clause 14.2), individually or collectively.

		
	1.79
	“Qualified Assignee” (tekikaku jotosaki) means an assignee set forth in Attachment 4.

		
	1.80
	“Related Agreement(s)” (hon kanren keiyaku) means (1) prior to the disbursement of the Loan, the Initial Related Agreements and (2) after the disbursement of the Loan, (i) the Initial Related Agreements and (ii) the Security Agreements, the Guarantee Agreements and the Permitted ICL Agreements executed after the disbursement of the Loan, individually or collectively.   

		
	1.81
	“Reports” (hokokusho-tou) means the financial statements etc. (balance sheet, profit-loss statement, statement of changes in net assets, notes to specific items, detailed statement, cashflow statement and business reports etc.) which Borrower and Guarantors submit pursuant to this Agreement. 

		
	1.82
	“Security Agreement(s)” (hon tanpo keiyaku) means the respective security interest agreements relating to security interests created for each Lender in accordance with the provisions of Clause 15, individually or collectively.

		
	1.83
	“Security Interests” (hon tanpoken) means security interests created pursuant to the Security Agreements, individually or collectively.

		
	1.84
	“Security Provider” (tanpoken setteisha) has the meaning ascribed to it in Clause 15.5.

		
	1.85
	“Successive Lender” (chii jojunin) has the meaning ascribed to it in Clause 27.2.

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	1.86
	“Syndicate Account” (syndicate koza) means the checking deposit account held by the Borrower.

		
	1.87
	“Taxes and Public Charges” (kosokoka-tou) means all public taxes or public charges including income taxes, corporate taxes and other taxes, which are applicable in Japan.

		
	1.88
	“Temporary Advancement” (tatekae-barai) means, with respect to the Borrower’s or any Guarantors’ repayment on a Due Date, the payment made by the Agent to the Lenders before the completion of the such Borrower’s or the Guarantors’ repayment of an amount equivalent to the amount to be distributed to the Lenders in accordance with Clause 17.  The Borrower, the Guarantors or the Lenders shall not make any objection as to the Agent’s making the Temporary Advancement.

		
	1.89
	“Temporary Advancement Costs” (tatekae cost) means, in cases where the Agent makes a Temporary Advancement for each Loan, the amount calculated as the amount of Temporary Advancement, multiplied by (i) the Funding Rate, and (ii) the actual number of days of the Temporary Advancement Period.  “Temporary Advancement Period” means the period commencing on the date that the Agent makes a Temporary Advancement related to such Loan and ending on the date that the Agent receives the amount of such Temporary Advancement, and the “Funding Rate” means the interest rate that the Agent reasonably determines as the interest rate to fund the amount of Temporary Advancement through the Temporary Advancement Period.  The calculation method for such Temporary Advancement Costs shall be on a per diem basis, inclusive of first day and exclusive of last day, assuming that there are 365 days per year, wherein divisions shall be done at the end of the calculation, and fractions less than one yen shall be rounded down.

		
	1.90
	“Term Loan A” (term loan A kashitsuke) means all Term Loan A Individual Loans in the aggregate.

		
	1.91
	“Term Loan A Applicable Interest Rate” (term loan A tekiyo riritsu) means the Term Loan A Base Rate plus the Term Loan A Spread. 

		
	1.92
	“Term Loan A Base Rate” (term loan A kijun kinri) means with respect to each Term Loan A Interest Calculation Period, the six-month (with respect to the first and last Term Loan A Interest Calculation Periods, a period corresponding to the relevant Term Loan A Interest Calculation Periods) (hereinafter referred to as “Term Loan A Base Rate Period” (term loan A kijun kinri kikan)) Japanese Yen TIBOR published by the JBA TIBOR Administration (page 17,097 of the Telerate or other page that may replace such page) at 11:00 a.m. or at the closest possible time to 11:00 a.m. that is after 11:00 a.m. on the second Business Day prior to the Interest Payment Date (with respect to the first Term Loan A Interest Calculation Period, the Term Loan A Drawdown Date) for the Term Loan A Interest Calculation Period immediately preceding such Term Loan A Interest Calculation Period. Provided, however, that if the interest rate for the relevant Term Loan A Base Rate Period is not displayed among the Japanese Yen TIBOR (page 17,097 of the Telerate or other page that may replace such page) published by the JBA TIBOR Administration, the Base Rate means the higher of (i) the interest rate for the shortest period displayed among the Japanese Yen TIBOR (page 17,097 of the Telerate or other page that may replace such page) published by the JBA TIBOR Administration that 

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exceeds the relevant Term Loan A Base Rate Period or (ii) the interest rate for the longest period displayed among the Japanese Yen TIBOR (page 17,097 of the Telerate or other page that may replace such page) published by the JBA TIBOR Administration that does not exceed the relevant Term Loan A Base Rate Period (if the relevant Term Loan A Base Rate Period is less than one week, the interest rate for one week). Further, in cases where such interest rate is not published for some reason, this rate shall be the interest rate (indicated as an annual rate) reasonably decided by the Agent as the offered rate for yen lending transactions for a period corresponding to such Term Loan A Base Rate Period in the Tokyo Interbank Market as of 11:00 a.m. on the second Business Day prior to the Desired Drawdown Date or the time closet to 11:00 a.m. that is prior to 11:00 a.m. (with respect to the first Term Loan A Interest Calculation Period, the Term Loan A Drawdown Date) associated with the Term Loan A Interest Calculation Period immediately preceding such Term Loan A Interest Calculation Period. Provided, however, that in a case where such interest rate is less than zero, such interest rate shall be zero.
		
	1.93
	“Term Loan A Break Funding Cost” (term loan A seisankin) means, in a case where the principal of the Term Loan A Individual Loan is repaid or set off on a day other than a Term Loan A Interest Payment Date (including a case where GuaranteeObligations of any Guarantor of the principal of the relevant Term Loan A Individual Loan is repaid or set off; hereinafter the same in this paragraph), if the Term Loan A Reinvestment Rate falls below the Term Loan A Applicable Interest Rate as of the time of such repayment or set-off, the amount obtained by multiplying the principal amount thus repaid or set-off by (i) the difference between the Term Loan A Reinvestment Rate and such Term Loan A Applicable Interest Rate, and (ii) the actual number of days in the Term Loan A Remaining Period. “Term Loan A Remaining Period” means the period commencing on the day the repayment or set-off was made and ending on next Term Loan A Interest Payment Date, and “Term Loan A Reinvestment Rate” means the interest rate reasonably determined by the Term Loan A Lenders as the applicable interest rate assuming that the repaid or off-set principal amount will be reinvested in the Tokyo Interbank Market during the Term Loan A Remaining Period. Such Term Loan A Break Funding Cost shall be calculated for the relevant period by prorating assuming a 365-day year, inclusive of the first day and exclusive of the last day of the relevant period, with division to be performed last and fractions less than one yen to be discarded.

		
	1.94
	“Term Loan A Commitment Ratio” (term loan A sanka-wariai) means the principal amount of Outstanding Term Loan A Individual Loan for each Term Loan A Lender against the total principal amount of Outstanding Term Loan A Individual Loan of All Term Loan A Lenders.

		
	1.95
	    “Term Loan A Drawdown Date” (term loan A kashitsuke jikkobi) means November 7, 2018.

		
	1.96
	“Term Loan A Individual Loan” (term loan A kobetsu kashitsuke) means the loans disbursed by individual Term Loan A Lenders pursuant to this Agreement.

		
	1.97
	“Term Loan A Individual Loan Money” (term loan A kobetsu kashitsuke jikkokin) means monies which the Term Loan A Lenders lend to the Borrower through the Term Loan A Individual Loans. “Term Loan A Individual Loan Amount” (term loan A kobetsu kashitsuke jikkokingaku) means the amount (in the case of a change in accordance 

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with the provisions of Clause 27.2, the amount after such change) of the Term Loan A Individual Loan Money indicated in Appendix 1 hereto for a Term Loan A Lender.
		
	1.98
	“Term Loan A Interest Calculation Period” (term loan A risoku keisan kikan) means, initially, the period from the Term Loan A Drawdown Date until the first Term Loan A Interest Payment Date, and subsequently, each period from the immediately preceding Term Loan A Interest Payment Date until the next Term Loan A Interest Payment Date.

		
	1.99
	“Term Loan A Interest Payment Date” (term loan A riharaibi) means the interest payment dates for Term Loan A, which shall be the last day of March and September of each year in the period from the day following the Term Loan A Drawdown Date until Term Loan A Maturity Date, and the Term Loan A Maturity Date (if a Term Loan A Interest Payment Date falls on a day other than a Business Day, such Term Loan A Interest Payment Date shall be the following Business Day, and if such Business Day falls in the following month, it shall be the preceding Business Day). 

		
	1.100
	“Term Loan A Interim Principal Due Date” (term loan A kichu ganpon bensaibi) means each date indicated in the Term Loan A Principal Due Date (term loan A ganpon bensaibi) column in the Payment Schedule of Appendix 2 hereto as a date on which principal in the amount indicated in the corresponding Term Loan A Principal Due Amount (term loan A ganpon bensai kingaku) column is due and payable (excluding the Term Loan A Maturity Date; if such date falls on a day other than a Business Day, it shall be the following Business Day, and if such following Business Day falls in the following month, it shall be the preceding Business Day).

		
	1.101
	“Term Loan A Lenders” (term loan A kashitsukenin) means the Lenders having Term a Loan A amount indicated in the Individual Loan Amount column of Appendix 1 hereto.

		
	1.102
	“Term Loan A Lending Obligation” (term loan A kashitsuke gimu) means the obligation of Term Loan A Lenders pursuant to Clause 2.1(1).

		
	1.103
	“Term Loan A Maturity Date” (term loan A mankibi) means the last day of September 2024 (if such day falls on a day other than a Business Day, the following Business Day, and if such following Business Day falls in the following month, the preceding Business Day).

		
	1.104
	“Term Loan A Spread” (term loan A spread) means 2.00% per annum.

		
	1.105
	“Term Loan B” (term loan B kashitsuke) means all Term Loan B Individual Loans in the aggregate.

		
	1.106
	“Term Loan B Applicable Interest Rate” (term loan B tekiyo riritsu) means the Term Loan B Base Rate plus the Term Loan B Spread.

		
	1.107
	“Term Loan B Base Rate” (term loan B kijun kinri) means with respect to each Term Loan B Interest Calculation Period, the six-month (with respect to the first and last Term Loan B Interest Calculation Periods, a period corresponding to the relevant Term Loan B Interest Calculation Periods) (hereinafter referred to as “Term Loan B Base Rate Period” (term loan A kijun kinri kikan)) Japanese Yen TIBOR published by the JBA TIBOR Administration (page 17,097 of the Telerate or other page that may replace such 

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page) at 11:00 a.m. or at the closest possible time to 11:00 a.m. that is after 11:00 a.m. on the second Business Day prior to the Interest Payment Date (with respect to the first Term Loan B Interest Calculation Period, the Term Loan B Drawdown Date) for the Term Loan B Interest Calculation Period immediately preceding such Term Loan B Interest Calculation Period. Provided, however, that if the interest rate for the relevant Term Loan B Base Rate Period is not displayed among the Japanese Yen TIBOR (page 17,097 of the Telerate or other page that may replace such page) published by the JBA TIBOR Administration, the Base Rate means the higher of (i) the interest rate for the shortest period displayed among the Japanese Yen TIBOR (page 17,097 of the Telerate or other page that may replace such page) published by the JBA TIBOR Administration that exceeds the relevant Term Loan B Base Rate Period or (ii) the interest rate for the longest period displayed among the Japanese Yen TIBOR (page 17,097 of the Telerate or other page that may replace such page) published by the JBA TIBOR Administration that does not exceed the relevant Term Loan B Base Rate Period (if the relevant Term Loan B Base Rate Period is less than one week, the interest rate for one week). Further, in cases where such interest rate is not published for some reason, this rate shall be the interest rate (indicated as an annual rate) reasonably decided by the Agent as the offered rate for yen lending transactions for a period corresponding to such Term Loan B Base Rate Period in the Tokyo Interbank Market as of 11:00 a.m. on the second Business Day prior to the Desired Drawdown Date or the time closet to 11:00 a.m. that is prior to 11:00 a.m. (with respect to the first Term Loan B Interest Calculation Period, the Term Loan B Drawdown Date) associated with the Term Loan B Interest Calculation Period immediately preceding such Term Loan B Interest Calculation Period. Provided, however, that in a case where such interest rate is less than zero, such interest rate shall be zero.
		
	1.108
	“Term Loan B Break Funding Cost” (term loan B seisankin) means, in a case where the principal of Term Loan B Individual Loan is repaid or set off on a day other than a Term Loan B Interest Payment Date (including a case where Guarantee Obligations of any Guarantor of the principal of the relevant Term Loan B Individual Loan is repaid or set off; hereinafter the same in this paragraph), if the Term Loan B Reinvestment Rate falls below the Term Loan B Applicable Interest Rate as of the time of such repayment or set-off, the amount obtained by multiplying the principal amount thus repaid or set-off by (i) the difference between the Term Loan B Reinvestment Rate and such Term Loan B Applicable Interest Rate, and (ii) the actual number of days in the Term Loan B Remaining Period. “Term Loan B Remaining Period” means the period commencing on the day the repayment or set-off was made and ending on next Term Loan B Interest Payment Date, and “Term Loan B Reinvestment Rate” means the interest rate reasonably determined by the Term Loan B Lenders as the applicable interest rate assuming that the repaid or off-set principal amount will be reinvested in the Tokyo Interbank Market during the Term Loan B Remaining Period. Such Term Loan B Break Funding Cost shall be calculated for the relevant period by prorating assuming a 365-day year, inclusive of the first day and exclusive of the last day of the relevant period, with division to be performed last and fractions less than one yen to be discarded.

		
	1.109
	“Term Loan B Drawdown Date” (term loan B kashitsuke jikkobi) means November 7, 2018.

		
	1.110
	“Term Loan B Individual Loan” (term loan B kobetsu kashitsuke) means the loans to be disbursed by individual Term Loan B Lender pursuant to this Agreement.

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	1.111
	“Term Loan B Individual Loan Money” (term loan B kobetsu kashitsuke jikkokin) means monies which the Term Loan B Lenders lend to the Borrower through the Term Loan B Individual Loans. “Term Loan B Individual Loan Amount” (term loan B kobetsu kashitsuke jikkokingaku) means the amount (in the case of a change in accordance with the provisions of Clause 27.2, the amount after such change) of Term Loan B Individual Loan Money indicated in Appendix 1 hereto for a Term Loan B Lender.

		
	1.112
	“Term Loan B Interest Calculation Period” (term loan B risoku keisan kikan) means, initially, the period from the Term Loan B Drawdown Date until the first Term Loan B Interest Payment Date, and subsequently, each period from the immediately preceding Term Loan B Interest Payment Date until the next Term Loan B Interest Payment Date.

		
	1.113
	“Term Loan B Interest Payment Date” (term loan B riharaibi) means the dates of interest payment dates for Term Loan B, which shall be the last day of March and September of each year in a period from the day following the Term Loan B Drawdown Date until the Term Loan B Maturity Date, and the Term Loan B Maturity Date (if a Term Loan B Interest Payment Date falls on a day other than a Business Day, such Term Loan B Interest Payment Date shall be the following Business Day, and if such Business Day falls in the following month, it shall be the preceding Business Day).

		
	1.114
	“Term Loan B Lenders” (term loan B kashitsukenin) means the Lenders having a Term Loan B amount indicated in the Individual Loan Amount column of Appendix 1 hereto.

		
	1.115
	“Term Loan B Lending Obligation” (term loan B kashitsuke gimu) means the obligation of the Term Loan B Lenders pursuant to Clause 2.1(1).

		
	1.116
	“Term Loan B Maturity Date” (term loan B mankibi) means the last day of September 2024 (if such day falls on a day other than a Business Day, the following Business Day, and if such following Business Day falls in the following month, the preceding Business Day).

		
	1.117
	“Term Loan B Spread” (term loan B spread) means 2.25% per annum.

		
	1.118
	“Third Party Security Provider(s)” (butsujo hoshonin) means a person other than the Borrower who creates a Security Interest pursuant to a Security Agreement, individually or collectively. 

		
	1.119
	“TOKIN Singapore” means TOKIN Singapore Pte. Ltd., a Singaporean corporation.

		
	1.120
	“Total Loan Amount” (kashitsuke so-gaku) means, with respect to the Term Loan A, the total Term Loan A Individual Loan Amount, and with respect to the Term Loan B, the total Term Loan B Individual Loan Amount.

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	2.
	RIGHTS AND OBLIGATIONS OF LENDERS

		
	2.1
	(i)    The Lenders shall, in accordance with this Agreement, each lend the Individual Loan Amount to the Borrower on the Drawdown Date if the requirements provided for in each item of Clause 4 are satisfied.

		
	(ii)
	The drawdown of the Loans shall be carried out in accordance with the provisions of this Agreement for each Term Loan A and Term Loan B 

		
	2.2
	Unless otherwise provided for in this Agreement, each Lender may exercise its rights under this Agreement separately and independently.

		
	2.3
	Unless otherwise provided for in this Agreement, the obligations of each Lender under this Agreement shall be separate and independent, and a Lender shall not be released from its obligations under this Agreement for the reason that any of the other Lenders fails to perform such obligations.  A Lender shall not be responsible for any failure of other Lenders to perform their obligations under this Agreement.

		
	2.4
	If with respect to an Individual Loan, a Lender, in breach of its Lending Obligation relating to such Individual Loan, fails to make such Individual Loan on the Drawdown Date for such Individual Loan, such Lender shall, upon request by the Borrower, immediately compensate the Borrower for all Loss incurred by the Borrower as a result of such breach; provided, however, that the maximum amount of such compensation to the Borrower for the Loss incurred shall be the difference between (i) the interest and other expenses that is required or would be required by the Borrower to be paid for the period from the Drawdown Date (inclusive) until the first Interest Payment Date for such Individual Loan (exclusive) if the Borrower separately makes a drawdown as a result of such Individual Loan’s failure to be made on the Drawdown Date, and (ii) the interest and other expenses that the Borrower would have been required pay for the period from the Drawdown Date (inclusive) until the first Interest Payment Date for such Individual Loan (exclusive) had such Individual Loan been made on the Drawdown Date.

		
	3.
	USE OF PROCEEDS

The Borrower shall use the money raised by the Loan solely for the purpose of making an intercompany loan to the Borrower Parent Company pursuant to the Permitted ICL Agreement to be used for repayment of the Existing KEMET Loans and payment of fees, costs and expenses in connection with this Agreement and the repayment of the Existing KEMET Loans.  The Agent and each Lender shall not be obliged to confirm that the Borrower complies with this Clause.

		
	4.
	CONDITIONS PRECEDENT FOR MAKING OF LOANS

The Lender shall make an Individual Loan upon the condition (irrespective of whether or not notice in Clause 6.1 was given) that the conditions (excluding conditions which were waived) provided for in each of the following items are satisfied for each Loan on the Drawdown Date relating to the relevant Loan.  The satisfaction of such conditions shall be determined individually by each Lender relating to the relevant Loan, and no Lender other than the Lender relating to the relevant Loan or the Agent shall be responsible for a Lender’s determination or refusal to make an Individual Loan.
		
	(i)
	No Exemption Event has occurred with respect to that Lender.

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	(ii)
	All representations and warranties made pursuant to the Loan-Related Agreements by relevant parties to the Loan-Related Agreements are true and correct on the Drawdown Date, provided, however, that if the relevant provision is not subject to materiality or other similar qualifications, any breach which the Lender reasonably determines to be immaterial is excluded.

		
	(iii)
	The Borrower has not breached any provision of the Loan-Related Agreements, and there is no concrete threat that such breach may occur on or after the Drawdown Date, provided, however, that if the relevant provision is not subject to materiality or other similar qualifications, any breach or threat which the Lender reasonably determines to be immaterial is excluded.

		
	(iv)
	No consultation pursuant to the provisions of Clause 7.5 has been held.

		
	(v)
	The Borrower has submitted all of the following documents to the Agent and All Lenders, and the Agent and All Lenders are reasonably satisfied with the content thereof:

		
	(a)
	the certificate of seal registration of the representative of the Borrower who signs and affixes his seal to the Loan-Related Agreements (issued within three (3) months from the execution date of this Agreement);

		
	(b)
	a certificate of all past and present recorded matters (issued within three (3) months from the execution date of this Agreement);

		
	(c)
	a certified copy of the articles of incorporation (effective as of the execution date of this Agreement);

		
	(d)
	a certified copy of the registry of shareholders (effective as of the execution date of this Agreement);

		
	(e)
	provision of the seal or signature in the form designated by the Agent; 

		
	(f)
	a certified copy of the minutes of the meeting of the board of directors of the Borrower that approved the execution of the Initial Related Agreements (to which it is a party; hereinafter the same in this Sub-item (f)) and the drawdown, the performance of the obligations and the execution of the transactions pursuant to the Initial Related Agreements; and

		
	(g)
	a certified copy of the Initial Related Agreements (excluding those to which any Lender is a party) (with respect to any loan agreement and other agreements that require a revenue stamp if copies of such agreements are certified, a copy will suffice).

		
	(vi)
	That Borrower has submitted all of the following documents relating to each Guarantor to the Agent and All Lenders, and the Agent and All Lenders are reasonably satisfied with their content thereof:

(If the Guarantor is a corporation under the laws of Japan)
		
	(i)
	the certificate of seal registration of the representative of the Guarantor who signs and affixes his seal to the Loan-Related Agreements (issued within three (3) months from the execution date of this Agreement);

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	(ii)
	a certificate of all past and present recorded matters (issued within three (3) months from the execution date of this Agreement);

		
	(iii)
	a certified copy of the articles of incorporation (effective as of the execution date of this Agreement);

		
	(iv)
	a certified copy of the registry of shareholders (effective as of the execution date of this Agreement);

		
	(v)
	provision of the seal or signature in the form designated by the Agent; and

		
	(vi)
	a certified copy of the minutes of the meeting of the board of directors of the Guarantor that approved the execution of the Initial Related Agreements (to which it is a party; hereinafter the same in this Sub-item (f)) and the drawdown pursuant to the Initial Related Agreements;

(If the Guarantor is a corporation under any foreign laws)
		
	(a)
	the certificate of seal registration or the certificate of signature of the representative of the Guarantor who signs and affixes his seal to the Loan-Related Agreements (issued within three (3) months from the execution date of this Agreement);

		
	(b)
	an official document certifying the incorporation or formation of the Guarantor (issued within three (3) months from the execution date of this Agreement);

		
	(c)
	a certified copy of the articles of incorporation or documents equivalent thereto (effective as of the execution date of this Agreement);

		
	(d)
	other than with respect to the Borrower Parent Company, a certified copy of the registry of shareholders or documents equivalent thereto (effective as of the execution date of this Agreement) (certification by the Borrower shall suffice; the same applies in the case of a foreign corporation hereinafter);

		
	(e)
	provision of the seal or signature in the form designated by the Agent; and

		
	(f)
	a certified copy of the minutes of the meeting of the board of directors of the Guarantor that approved the execution of the Initial Related Agreements (limited to those to which it is a party; hereinafter the same in this Sub-item (f)) and the performance of the duties pursuant to the Initial Related Agreements (in the case where the relevant company does not have a board of directors as at the approval, a written decision by a director, minutes of shareholders meeting or a decision of other applicable corporate body).

		
	5.
	MAKING OF LOANS

		
	5.1
	If a Lender does not give notice pursuant to Clause 6.1, and all conditions provided for in each item of Clause 4 are satisfied on the Drawdown Date, the Lender shall, with respect to the Loan for which it owes a Lending Obligation, remit the Individual Loan Amount to the Syndicate Account by 11:00 am of the Drawdown Date.  The Individual Loan shall be deemed to have been made by that Lender as of the time of the remittance to the Syndicate Account.  

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	5.2
	When the Loan is made pursuant to Clause 5.1, the Borrower shall immediately provide to the Agent a written receipt describing the amount of the Loan and the specifics of the Individual Loan.  The Agent shall, upon receiving such receipt, promptly provide a copy thereof to the Lender who made the Individual Loan.  The Agent shall retain the original receipt on behalf of that Lender until the Outstanding Individual Loan Money is repaid in full.

6.    REFUSAL TO MAKE LOANS
		
	6.1
	A Lender who decides not to make the Individual Loan for the reason that all or part of the conditions in Clause 4 are not satisfied (the “Non-Drawdown Lender”) may notify the Agent, the Borrower and all other Lenders of the Loan in respect of which the Lender decided not to make the Individual Loan of the decision with the reason affixed thereto by 10 o’clock of the Drawdown Date for the corresponding Loan; provided, however, that if, notwithstanding the satisfaction of all the conditions in Clause 4, the Individual Loan is not made, the Non-Drawdown Lender may not be released from liabilities arising from the breach of its Lending Obligations, and the Non-Drawdown Lender shall indemnify the Borrower’s Loss arising from the breach of its Lending Obligations within the scope of reasonable causation. 

		
	6.2
	The Borrower shall be responsible for any Loss within the scope of reasonable causation incurred by the Non-Drawdown Lender or the Agent as a result of the failure to make the Individual Loan by that Non-Drawdown Lender; provided, however, that the foregoing shall not apply if the failure to make the Individual Loan constitutes a breach of the Non-Drawdown Lender’s Lending Obligations.

		
	7.
	INCREASED COSTS AND ILLEGALITY

		
	7.1
	A Costs Increased Lender may, by notifying the Borrower in writing via the Agent, request the Borrower to elect either to bear the Increased Costs or to repay the obligations to the Costs Increased Lender.  The Borrower shall respond to such request within 10 Business Days from the day the response notice reaches the Borrower (inclusive; the “Increased Costs Request Arrival Date”) by giving written notice to the Costs Increased Lender via the Agent.  If the response of the Borrower does not reach the Costs Increased Lender within 10 Business Days from the Increased Costs Request Arrival Date (inclusive), the expiration of that period shall be deemed as the response by the Borrower for electing to bear the Increased Costs.

		
	7.2
	If the Borrower elects to bear the Increased Costs in response to the Costs Increased Lender’s request in Clause 7.1 (including the case where it is deemed to elect to bear the Increased Costs pursuant to Clause 7.1), the Borrower shall pay, in accordance with the provisions of Clause 16, the Costs Increased Lender the money equivalent to such costs within 10 Business Days from the day the response by the Borrower for electing to bear the Increased Costs is made in accordance with Clause 7.1 (or, if it is deemed to elect to bear the Increased Costs pursuant to Clause 7.1, from the day that is the response due date under Clause 7.1).

		
	7.3
	If the Borrower elects to repay the obligations to the Costs Increased Lender in response to the request in Clause 7.1, the Borrower shall notify the Agent and All Lenders in writing of (a) the desire to repay the obligations to the Costs Increased Lender, and (b) the date the Borrower desires to repay such obligations (the “Desired Repayment Date”).  The Desired Repayment Date must be a Business Day that falls within the period from not earlier than ten (10) Business Days to not later than fifteen (15) Business Days after the Borrower makes such notice. If the Costs Increased Lender incurs any Break Funding Cost, the Costs 

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Increased Lender shall notify the Agent of the amount of the Break Funding Cost by 2 Business Days prior to the Desired Repayment Date.  After receiving such notice, the Agent shall notify the Borrower of the same by aBusiness Day prior to the Desired Repayment Date.
		
	7.4
	In the event that notice under the first sentence of Clause 7.3 is given by the Borrower, the Borrower shall not bear the Increased Costs, and pay to the Costs Increased Lender on the Desired Repayment Date, in accordance with the provisions of Clause 16, all obligations it owes to the Costs Increased Lender pursuant to this Agreement.  The Borrower shall, at the same time as paying the principal of the Individual Loan pursuant to this paragraph, pay to the Costs Increased Lender the Accrued Interest on such principal and the Break Funding Cost notified by the Costs Increased Lender.

		
	7.5
	If the execution and performance of the Loan-Related Agreements and any transactions contemplated thereunder become contrary to any Laws and Ordinances binding upon any Lender, such Lender shall consult with the Borrower and all other Lenders through the Agent and determine measures to take.  In this case, the Borrower and All Lenders excluding such Lender may not refuse the payment of all obligations owed by the Borrower to that Lender without reasonable cause.

		
	8.
	REPAYMENT OF PRINCIPAL

		
	8.1
	The Borrower shall, in accordance with the Repayment Schedule of Appendix 2 of this Agreement, pay to the Term Loan A Lender the principal of the Term Loan A in instalments on each Term Loan A Interim Principal Due Date and the Term Loan A Maturity Date in accordance with the provisions of Clause 16.  The amount to be paid to a Term Loan A Lender on a Term Loan A Interim Principal Due Date shall be the amount of principal to be paid by the Borrower to all Term Loan A Lenders relating to the Term Loan A on the relevant Term Loan A Interim Principal Due Date multiplied by the Term Loan A Commitment Ratio of the relevant Term Loan A Lender after the drawdown of the Term Loan A on the Term Loan A Drawdown Date, and the amount to be paid to a Term Loan A Lender on the Term Loan A Maturity Date shall be the remaining principal amount of the Term Loan A Individual Loan payable to the Term Loan A Lender on the Term Loan A Maturity Date. 

		
	8.2
	The Borrower shall pay to the Term Loan B Lenders the principal of the Term Loan B in lump sum on the Term Loan B Maturity Date in accordance with Clause 16. 

		
	9.
	INTEREST

		
	9.1
	The Borrower shall pay to each Lender on each Interest Payment Date, which is final day of an Interest Calculation Period for the relevant Loan, in accordance with the provisions of Clause 16, the total amount of interest obtained by multiplying the principal amount of the Individual Loan of such Lender for such Interest Calculation Period by (i) the Applicable Interest Rate, and (ii) the actual number of days of the Interest Calculation Period.

		
	9.2
	The calculation method for interest in Clause 9.1 shall be on a per diem basis, inclusive of first day and exclusive of last day, assuming that there are 365 days per year, wherein divisions shall be done at the end of the calculation, and fractions less than one yen shall be rounded down.

		
	10.
	PREPAYMENT

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	10.1
	[Intentionally Deleted]

		
	10.2
	If the Borrower desires to make a prepayment of all or part of the principal of each Loan (hereinafter referred to as the “Prepayment”) other than on a Due Date, the Borrower may make a prepayment by giving a written notice to the Agent by 8 Business Days prior to the date the Borrower desires to make the Prepayment (the “Desired Prepayment Date”), stating (a) the facility of the Loan the Borrower desires to prepay, (b) the principal amount of the Loan the Borrower desires to prepay (the all outstanding principal amount of such Loan or not less than 1 hundred million yen, in increments of 1 hundred million yen), (c) that the Borrower will pay in full on the Desired Prepayment Date, the interest (the “Accrued Interest”) on the principal amount desired to be prepaid that has accrued by the Desired Prepayment Date (inclusive) and (d) the Desired Prepayment Date.  After receiving notice from the Borrower, the Agent shall notify All Lenders of the Loan in respect of which the Prepayment is to be made of Items (a) through (e) of this Clause 10.2 within the next Business Day 

		
	10.3
	If the Prepayment is made in accordance with Clause 10.2 on the day other than the Payment Day of each Loan, all of the Lenders of the Loan in respect of which the Prepayment is to be made shall notify the Agent of the amount of the Break Funding Cost, if any, for the Loan in respect of which the Prepayment is to be made by 3 Business Days prior to the Desired Prepayment Date.  After receiving such notice, the Agent shall notify the Borrower and the Guarantors of the same by 3 Business Days prior to the Desired Prepayment Date.  The Borrower shall pay, in accordance with the provisions of Clause 16, the total of the principal, the Accrued Interest and the Break Funding Cost in respect of the Loan to be prepaid on the Desired Prepayment Date.

		
	10.4
	The Borrower will not be able to make the Prepayment with respect to the Term Loan A until and unless the obligation of the Term Loan B is fully repaid.  Where the Prepayment of part of the principal of the Term Loan A is made in accordance with this clause, the application of the Prepayment to the principal shall be made from the principal which has the latest Due Date to the principal which has the earliest Due Date pursuant to the repayment schedule of Attachment 2.   

		
	11.
	DEFAULT INTEREST

		
	11.1
	If the Borrower and the Guarantor default in the performance of its payment obligations under the Loan Related Agreements owing to a Lender or the Agent the Borrower shall, promptly upon the Agent’s written demand and in accordance with the provisions of Clause 16, for the period commencing on the day of receipt by the Borrower should perform such defaulted obligation (the “Defaulted Obligations”) of such written demand and ending on the day the Borrower performs all Defaulted Obligations, pay default interest calculated by multiplying the amount of any overdue principal, interest and fees by the Applicable Interest Rate plus 2% per annum. 

		
	11.2
	The calculation method for default interest in Clause 14.1 shall be on a per diem basis, inclusive of first day and exclusive of last day, assuming that there are 365 days per year, wherein divisions shall be done at the end of the calculation, and fractions less than one yen shall be rounded down.

		
	12.
	AGENT FEE

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The Borrower shall pay the Agent Fee to the Agent as separately agreed between the Borrower and the Agent, for the performance of the Agent Services provided for in this Agreement.

		
	13.
	EXPENSES; TAXES AND PUBLIC CHARGES

		
	13.1
	All reasonable and documented out-of-pocket expenses (with resepct to attorney’s fees, limited to reasonable and documented attorney’s fees of such attorney as retained by the Agent) incurred by the Agent in connection with the preparation and any revision or amendment of the Loan-Related Agreements and documents relating hereto, and all reasonable and documented out-of-pocket expenses (including reasonable and documented attorney’s fees) incurred in relation to the enforcement of the rights or the performance of the obligations by the Lender and the Agent pursuant to the Loan-Related Agreements shall be borne by the Borrower to the extent that it is not in violation of Laws and Ordinances.  If any Lender or the Agent has paid these expenses in the place of the Borrower, the Borrower shall, promptly upon the Agent’s written request, pay the same in accordance with the provisions of Clause 16.

		
	13.2
	The stamp duties and any other similar Taxes and Public Charges incurred in relation to the preparation, amendment or enforcement of the Loan-Related Agreements and documents relating hereto shall be borne by the Borrower.  If any Lender or the Agent has paid these Taxes and Public Charges in the place of the Borrower, the Borrower shall, promptly upon the Agent’s written request, pay the same in accordance with the provisions of Clause 16.

14.    GUARANTEE
		
	14.1
	(i) With respect to the Borrower Parent Company and TOKIN EMC Engineering Co., Ltd., on the Drawdown Date, (ii)with respect to TOKIN Electronics (Xiamen) Co., Ltd., by the day that six months have elapsed from the Drawdown Date, and (iii)with respect to the Borrower Overseas Sales Companies (limited to those that exsit as subsidiaries of the Borrower at the end of December 2019), by the end of December 2019 (for (ii) and (iii) above, with respect to any Planned Guarantor that is not a corporation under the laws of Japan regarding which it is learned that submission of a guarantee letter is practically and reasonably difficult, the submission of the guarantee letter by such Planned Guarantor may be exempted upon agreement between the Borrower and the Lenders through a good faith consultation), the Borrower shall cause each Planned Guarantor to prepare and affix its seal to a guarantee letter in the form of Attachment 5-1 through Atachment 5-3, providing that the relevant Planned Guarantor guarantees all obligations that the Borrower owes pursuant to the Loan-Related Agreements (“Loan-Related Obligations”), and by the submission date of the relevant guarantee letter, submit to the Agent and All Lenders through the Agent a copy of the relevant guarantee letter and the following documents (excluding any documents submitted to the Agent and the Lenders through the Agent pursuant to this Agreement before submission of the relevant guarantee letter, provided that the contents have not changed), and as soon as practically possible, cause the relevant Planned Guarantor to perform procedures necessary for the relevant Guarantee.  With submission of such a guarantee letter, a Guarantee Agreement that guarantees the Borrower’s Loan-Related Obligations shall be deemed to have been formed.  If any such Planned Guarantor is not a corporation under the laws of Japan, with respect to the documents of Item (a) through Item (e), if there are any documents that are equivalent or similar to the documents in such items, submission of such equivalent or similar documents shall suffice.

		
	(i)
	A certified copy of the articles of incorporation of the relevant Planned Guarantor;

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	(ii)
	A certificate of all past and present recorded matters of the relevant Planned Guarantor (obtained within three (3) months before the submission date of the guarantee letter);

		
	(iii)
	A certificate of seal registration of the representative of the relevant Planned Guarantor (obtained within three (3) months before the submission date of the guarantee letter);

		
	(iv)
	The relevant Planned Guarantor’s seal or signature in the form designated by the Agent; and

		
	(v)
	(a) A certified copy of the resolutions of the board of directors of the relevant Planned Guarantor (if the relevant Planned Guarantor is not a company with a board of directors at the time of such approval, a directors’ decision letter, resolutions of shareholders, or other document that evidences the decision of an authorized organ), or (b) (if the decision-making organ is not a meeting body), a certificate prepared by the relevant Planned Guarantor’s representative having content reasonably satisfactory to the Lenders approving the Guarantee under the Guarantee Agreement.

		
	14.2
	If the Borrower or a Guarantor establishes or acquires a new Borrower Material Subsidiary (“New Subsidiary”) (including the case where an existing Subsidiary is determined to be a Borrower Material Subsidiary, in which case such Borrower Material Subsidiary is deemed to be acquired when such determination is made), and the Majority Lenders so reasonable demand, the Borrower or the Guarantors shall promptly comply with the Majority Lenders’ demand and cause such New Subsidiary to engage in the acts specified in the preceding paragraph, and guarantee the Loan-Related Obligations, provided that the provision of guarantee of a New Subsidiary may be exempt if it is confirmed that the provision of such guarantee is practically and reasonably difficult under local law or based on local practice.  In such a case, the portions in Item (a) through Item (e) of the preceding paragraph referring to “the relevant Planned Guarantor” shall be amended to read as “the relevant New Subsidiary,” and if such New Subsidiary is not a corporation under the laws of Japan, if there are any documents that are equivalent or similar to the documents in such Item (a) through Item (e), submission of such equivalent or similar documents shall suffice. 

		
	14.3
	If in accordance with the provisions of this Agreement, the status, rights and duties of any Lenders or the Agent are succeeded to by a third party, concurrently with such succession, the Borrower shall cause the Guarantors to consent in writing to the assignment by the Lenders and the Agent of their status, rights and duties under the Guarantee Agreements to such third party, and provide cooperation reasonably necessary; provided, however, that if the Majority Lenders demand, in lieu of causing the Guarantors to consent in writing pursuant to the first sentence of this paragraph, the Borrower shall cause the Guarantors to, concurrently with such succession (with respect to any Guarantor that is not a corporation under the laws of Japan regarding which it is learned that submission of a guarantee letter concurrently with such succession is practically and reasonably difficult, the submission of the guarantee letter may be postponed until a deadline agreed to by the Borrower and the Lender through good faith consultations or the submission of the guarantee letter may be exempted), the Borrower shall cause the Guarantors to newly prepare and affix their seals to a guarantee letter on the form of Attachment 5-1 through Attachment 5-3 providing that the relevant the Guarantor guarantees the Loan-Related Obligations, submit the same to the Agent, and submit to All Lenders through the Agent a copy of the relevant guarantee letters.  In such a case, by the submission date of the relevant guarantee letters, the Borrower shall submit to the relevant assignee through the Agent the documents set forth in the items of 

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Paragraph 1 (excluding any documents submitted to the Agent and the Lenders through the Agent pursuant to this Agreement before the submission of the relevant guarantee letter if their contents have not changed).  In a case where a Guarantor is not a corporation under the laws of Japan, if there are any documents that are equivalent or similar to the documents in Paragraph 1, Item (a) through Item (e), submission of such equivalent or similar documents shall suffice.
		
	14.4
	The Lenders and the Agent shall be entitled, without exercising their rights against the Borrower or any Guarantor and without any warning, to demand performance of the Guarantee Obligations by the Guarantors.  Further, if because of Insolvency Proceedings related to the Borrower or any Guarantor, any payment by the Borrower or such Guarantor that has already been made pursuant to this Agreement is subject to avoidance or is nullified for any other reason or refunded, the Guarantors shall owe Guarantee Obligations for obligations related to such payment as if such payment had not been made but shall not be required to make any additional payment unless and until the amount is taken away from a Lender or the Agent.

		
	14.5
	Even if any security or Guarantee related to the Loan Obligations by any Lender or the Agent is changed or cancelled in whole or in part for such Lender’s or the Agent’s reasons, Guarantors shall not assert release from obligation against such Lender or the Agent, or lodge any other objections.  Even if a Guarantor suffers damage from the foregoing, it shall not make any demand for compensation for damage against such Lender or the Agent.  

		
	14.6
	If any Guarantor performs its Guarantee Obligations to any Lender or the Agent in whole or in part, while any transactions between the Borrower and any Lender or the Agent (not limited to a Lender or the Agent for whose benefit guarantee obligations were performed) are continuing, without the consent of All Lenders and the Agent with whom such transactions are continuing, the Guarantors shall not be entitled to exercise any rights obtained from the Lenders or the Agent through subrogation pursuant to the performance of such Guarantee Obligations.  Upon request from a Lender or the Agent, the Guarantors shall assign its rights or the rank associated with its rights to such Lender or the Agent gratis. If the Borrower’s obligations pursuant to the Loan-Related Agreements are paid in full, such Lender or the Agent shall return such right or the rank associated with such rights in its possession at that point in time to such Guarantor gratis; provided, however, that, the Borrower or Guarantor shall bear reasonable costs necessary for such assignment or return.

		
	14.7
	If with respect to any transaction between the Borrower and any Lender or the Agent, any Guarantor has given a guarantee other than for the Guaranteed Obligations for the benefit of such Lender or the Agent, such guarantee shall not be changed from the bearing of the Guarantee Obligations.  If with respect to any transaction between the Borrower and any Lender or the Agent, any Guarantor has given a revolving guarantee with a maximum amount for the benefit of such Lender or the Agent, the loan amount of such Lender shall be added to such maximum amount.  If with respect to any transaction between the Borrower and any Lender or the Agent, any Guarantor provides guarantee for the benefit of such Lender or the Agent in the future, the same shall apply.  

		
	14.8
	Each Guarantor shall not assert that the receivables of the Borrower or any other Guarantor due from any Lender or the Agent shall be set off against the obligations that are, or will be in the future, owed to such Lender or the Agent by the Borrower under this Agreement.

		
	15.
	SECURITY

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	15.1
	In order to secure the performance of the Loan-Related Obligations, the Borrower shall, with respect to the following assets held by the Borrower, execute the relevant Security Agreements for each Lender having content and form reasonably satisfactory to All Lenders by the last day of December 2018 (with respect to the assets set forth in Item (1) below, by the last day of March 2019) (with respect to any assets regarding which it is learned that execution of relevant Security Agreements by such date are practically and reasonably difficult, the execution of the relevant Security Agreements may be postponed until a deadline agreed to by the Borrower and the Lenders through good faith consultations or the execution of the relevant Security Agreements may be exempted), and create first-rank security interests and complete procedures necessary for perfection (against third parties and obligors) in accordance with the schedule and contents set forth in such Security Agreements.  The same will apply in a case where any of the following assets are subsequently acquired (including the case where an existing subsidiary is determined to be a Borrower Subsidiary (Share Collateral), in which case such Borrower Subsidiary (Share Collateral) is deemed to be acquired when such determination is made): the relevant Security Agreement or other applicable documents shall be executed promptly after any such asset is acquired, first-rank security interests shall be created thereupon, and procedures necessary for perfection (against third parties and obligors) shall be completed.  

		
	(i)
	Shares of Borrower Subsidiaries (Share Collateral) held by the Borrower.

		
	(ii)
	Monetary claims (current, if any, and future claims) to the Borrower Parent Company pursuant to the Permitted ICL Agreement (Borrower Parent Company) held by Borrower.

		
	(iii)
	Real properties held by the Borrower set out in Attachment 6 (formal registration).

		
	15.2
	The Borrower shall, by the execution day of this Agreement and the day of Security Interest creation under this Clause 15, submit the following documents (excluding documents submitted to the Agent and Lenders pursuant to the provisions of this Agreement on or before such day of Security Interest creation which have not been changed) to the Agent and All Lenders through Agent. 

		
	(i)
	Certified copies of the Borrower’s articles of incorporation, registry of shareholders and registry of lost share certificates (if any);

		
	(ii)
	The Borrower’s certificate of all past and present recorded matters (obtained within three (3) months before the creation of the Security Interest);

		
	(iii)
	The Borrower’s representative’s certificate of seal registration (obtained within three (3) months before the creation of the Security Interest);

		
	(iv)
	The Borrower’s signature or seal in form designated by the Agent; and

		
	(v)
	A certified copy of the minutes of the meeting of the board of directors of the Borrower approving the relevant security creation.

		
	15.3
	To secure the performance of the Loan-Related Obligations, with respect to 100 % of the Borrower’s shares held by KEC, the Borrower shall cause KEC to execute a related Security Agreement for each Lender having content and form reasonably satisfactory to All Lenders by the last day of December 2018, and create first-rank security interests and complete the procedures necessary for perfection (against third parties and obligors) in accordance with the schedule and terms set forth in the relevant Security Agreements.  The same shall apply 

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in a case where the Borrower’s shares are subsequently acquired; the relevant Security Agreement or other applicable documents shall be executed promptly after any such shares are acquired, first-rank security interests shall be created, and the procedures necessary for perfection (against third parties and obligors) shall be completed.
		
	15.4
	The Borrower shall, by the day of Security Interest creation in this Clause 15, cause KEC to submit the following documents (excluding documents submitted to the Agent and Lenders pursuant to the provisions of this Agreement on or before such day of security interest creation which have not been changed) to Agent and All Lenders through the Agent.

		
	(i)
	a certificate of the secretary or assistant secretary of KEC dated as of the date hereof, certifying that:

		
	(a)
	attached thereto is a true and complete copy of each of the certificate or articles of incorporation and the by-laws (or equivalent organizational documents), as applicable, of the KEC certified (to the extent applicable) as of a recent date by the Secretary of State of the state of its incorporation or organization, as the case may be;

		
	(a)
	attached thereto is a true and complete copy of resolutions duly adopted by the board of directors, managers, or other applicable governing body of KEC authorizing the execution, delivery and performance of this Agreement and the documents executed in connection with this Agreement; and

		
	(b)
	as to the incumbency and specimen signature of each officer executing any documents delivered in connection with this Agreement on behalf of KEC.

		
	15.5
	To secure the performance of the Loan-Related Obligations, with respect to all shares in the Borrower Subsidiaries (Share Collateral) held by TOKIN Singapore, the Borrower shall cause TOKIN Singapore to execute a related Security Agreement for each Lender having content and form reasonably satisfactory to All Lenders by the last day of March 2019, and create first-rank security interests and complete the procedures necessary for perfection (against third parties and obligors) in accordance with the schedule and terms set forth in the relevant Security Agreements.  In the case where TOKIN Singapore transfers or otherwise disposes of the shares in the Borrower Subsidiaries (Share Collateral) held by it to the Borrower, the Borrower Parent Company, Etc. or a Subsidiary of the Borrower (hereinafter referred to as the “Assignee of the Borrower Subsidiaries (Share Collateral)”) as a result of a Permitted Reorganization, the Borrower shall cause such Assignee of the Borrower Subsidiaries (Share Collateral) to execute the relevant Security Agreements, create security interests and perform the procedures necessary for perfection with respect to all shares in the Borrower Subsidiaries (Share Collateral) held by such Assignee of the Borrower Subsidiaries (Share Collateral) pursuant to this Clause 15.5.  The same shall apply in a case where the shares in the Borrower Subsidiaries (Share Collateral) are subsequently acquired by TOKIN Singapore or such Assignee of the Borrower Subsidiaries (Share Collateral); the relevant Security Agreement or other applicable documents shall be executed promptly after any such shares are acquired, first-rank security interests shall be created, and the procedures necessary for perfection (against third parties and obligors) shall be completed (such TOKIN Singapore or Assignee of the Borrower Subsidiaries (Share Collateral) which create security interests pursuant to this Clause 15.5, the “Security Provider”).

		
	15.6
	The Borrower shall, by the day of Security Interest creation under this Clause 15, cause the Security Provider to submit the following documents (excluding documents submitted to the Agent and Lenders pursuant to the provisions of this Agreement on or before such day 

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of Security Interest creation which have not been changed) to the Agent and All Lenders through Agent. If any such Security Provider is not a corporation under the laws of Japan, with respect to the documents of Item (i) through Item (iii), if there are any documents that are equivalent or similar to the documents in such items, submission of such equivalent or similar documents shall suffice.
		
	(i)
	Certified copies of the Security Provider’s articles of incorporation, registry of shareholders and registry of lost share certificates (if any);

		
	(ii)
	The Security Provider’s certificate of all past and present recorded matters (obtained within three (3) months before the creation of the Security Interest);

		
	(iii)
	The Security Provider’s representative’s certificate of seal registration (obtained within three (3) months before the creation of the Security Interest);

		
	(iv)
	The Security Provider’s signature or seal in form designated by the Agent; and

		
	(v)
	A certified copy of the minutes of the meeting of the board of directors of the Security Provider approving the relevant security creation.

		
	15.7
	In accordance with the Security Agreement, the Borrower shall, and shall cause KEC and the Security Providers to create first-rank security interests for each Lender against the Collateral set forth in this Clause 15 having content reasonably satisfactory to All Lenders, and unless otherwise provided in the Security Agreement, shall perfect the same to the extent necessary.  If transfer restrictions are attached to shares which are Collateral set forth in this Clause 15, the Borrower shall  include, or cause the issuer of such shares to include, deemed approval provisions in its articles of incorporation by the day of security creation (inclusive) set forth in this Clause 15, and shall cause KEC and the Security Providers to cooperate to such action; provided, however, that with respect to shares of Subsidiaries incorporated outside of Japan, it is sufficient to take necessary measures to attain a similar purpose to the extent reasonably practical under Laws and Ordinances and business practice.

		
	15.8
	If a third party has succeeded to the status and rights and duties of a Lender hereunder in accordance with the provisions of this Agreement, concurrently with such succession, in order to perform the Loan-Related Obligations, the Borrower shall  create on the Collateral that they possess which are the subjects of the first-rank security interests created pursuant to this Clause 15 security interests pari passu with the Security Interests, or consent in writing to such Lender’s transferring the Security Interests to such third party, and cooperate to the extent reasonably necessary.  The Borrower shall  submit a document evidencing the creation of such Security Interests and perform any other reasonably necessary acts, and shall cause KEC and the the Security Providers to do such acitons.

		
	15.9
	[Intentionally Deleted]

		
	15.10
	The Borrower shall cause KEC and the Security Provider to, comply with the provisions of the following items.

		
	(i)
	KEC and the Security Provider shall not exercise the right to claim reimbursement or subrogation rights against the Borrower obtained through the third party performance of the Borrower’s obligations or the foreclosure on any Security Interest which it created until all of the Borrower’s obligations pursuant to the Loan-Related Agreements are paid in full. Upon request from a Lender or the Agent, KEC or the Security Provider shall, as applicable, assign its rights or the rank associated with 

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its rights to such Lender or the Agent gratis. If the Borrower’s obligations pursuant to the Loan-Related Agreements are paid in full, such Lender or the Agent shall return such right or the rank associated with such rights in its possession at that point in time to KEC or the Security Provider gratis; provided, however, that, the Borrower or Guarantor shall bear reasonable costs necessary for such assignment or return.
		
	(ii)
	KEC and the Security Provider shall not assert release from liability even if a Lender modifies or terminates other security or guarantee for the Loan-Related Obligations for its own reasons.

		
	15.11
	The distribution of monies (including monies received from voluntary sale instead of the foreclosure on security) received pursuant to Security Interests created under this Clause 15 to each Lender shall be subject to Clause 22.

		
	16.
	PERFORMANCE OF BORROWER’S AND GUARANTORS’ OBLIGATIONS

		
	16.1
	In order to repay the obligations under the Loan-Related Agreements, the Borrower and shall transfer the relevant amount to the Syndicate Account (i) by the Due Time, for those obligations the Due Date of which is provided for therein, or (ii) immediately upon the Agent’s request, for those obligations the Due Date of which is not provided for therein.  In such cases, the obligations of the Borrower to the Agent or each Lender shall be deemed to have been performed upon the time of the Agent’s withdrawal of the relevant amount from the Syndicate Account.  The Agent shall perform such withdrawal (i) on the Due Date, for those obligations the Due Date of which is provided for herein, (ii) on the Business Day following the transfer date, for those obligations the Due Date of which is not provided for herein, and (iii) shall not assume any other obligation.  The Borrower shall grant to the Agent the authority to withdraw money from the Syndicate Account in accordance with Clause 18.1, and waives the right to cancel such entrustment (provided that such withdrawal from the Syndicate Account may be made without the Borrower submitting a payment request).  

		
	16.2
	Unless otherwise provided for in this Agreement, a payment by the Borrower or the Guarantors directly to a Lender other than the Agent contrary to the provisions of the preceding paragraph of amounts owing under the Loan-Related Agreements shall not be deemed to constitute the due performance of obligations under the Loan-Related Agreements.  In this case, the Lender receiving such payment shall immediately pay the money it receives to the Agent, and the obligations with respect to such money shall be deemed to have been performed upon the Agent’s receipt of such money.  The Borrower may not perform its obligations under the Loan-Related Agreements by deed-in-lieu of performance (daibutsu bensai) unless the Agent and All Lenders give their prior written approval.

		
	16.3
	Payments made pursuant to Clause 20 shall be applied in the order provided for below; provided, however, that the provisions of Clause 17.4 shall apply if any obligation of the Borrower becomes immediately due and payable pursuant to Clause 20.  

		
	(i)
	those expenses to be borne by the Borrower or a Guarantor under the Loan-Related Agreements, which the Agent has incurred in the place of the Borrower or a Guarantor, and the Agent Fee and the default interest imposed thereon;

		
	(ii)
	those expenses to be borne by the Borrower or a Guarantor under the Loan-Related Agreements, payable to a third party;

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	(iii)
	those expenses to be borne by the Borrower or a Guarantor under the Loan-Related Agreements, which any Lender has incurred in place of the Borrower or a Guarantor and the default interest imposed thereon;

		
	(iv)
	the default interest (excluding the default interest provided for in Items (i) and (iii)) and the Break Funding Costs;

		
	(v)
	the interest on each Loan; and

		
	(vi)
	the principal of each Loan.

		
	16.4
	Upon the application in Clause 16.3, if the amount to be applied falls short of the amount outlined in any of the items thereunder, with respect to the first item not fully covered (the “Item Not Fully Covered”), the remaining amount, after the application to the item of the next highest order of priority, shall be applied after the proration in proportion to the amount of the individual payment obligations owed by the Borrower or a Guarantor regarding the Item Not Fully Covered, which have become due and payable.  If with respect to the Item Not Fully Covered there are obligations relating to the multiple Loans, proration shall be made in proportion to the amount of the obligations for each such Loan.

		
	16.5
	Unless otherwise required by Laws and Ordinances, the Borrower and the Guarantors shall not deduct Taxes and Public Charges from the amount of obligations to be paid pursuant to the Loan-Related Agreements.  If it is necessary to deduct Taxes and Public Charges from the amount payable by the Borrower and the Guarantors, the Borrower and the Guarantors shall additionally pay the amount necessary in order for the Lender or the Agent to be able to receive the amount that it would receive if no Taxes and Public Charges were imposed.  In such cases, the Borrower and the Guarantors shall, within thirty (30) days from the date of payment, directly send to such Lender or the Agent the certificate of tax payment in relation to withholding taxes issued by the tax authorities or other competent governmental authorities in Japan.

		
	17.
	DISTRIBUTION TO LENDERS

		
	17.1
	If there still exists any remaining amounts after deducting the amounts equivalent to the amounts described in Clause 16.3(i) and Clause 16.3(ii) from the amounts withdrawn from the Syndicate Account pursuant to Clause 16.1, the Agent shall immediately distribute such remaining amounts to the Lenders in accordance with the provisions of this Clause 17; provided, however, that if such money was withdrawn from the Syndicate Account pursuant to Clause 7.2 or Clause 7.4, notwithstanding the provisions of this Clause 17, the Agent shall promptly distribute such money to  the Costs Increased Lender.  

		
	17.2
	If, prior to distribution by the Agent to the Lenders pursuant to this Clause 17, (a) an order for provisional attachment (kari-sashiosae), preservative attachment (hozen-sashiosae) or attachment (sashiosae) in relation to the Loan Receivables or the Guarantee Claims is served on the Borrower or the Guarantors, or (b) an assignment in relation to the Loan Receivables or the Guarantee Claims is made, the rights and obligations of the Borrower, the Guarantors, the Agent and the Lenders shall be regulated in accordance with the following provisions:

(i)    
		
	(a)
	If the Agent completes the distribution to the Lenders pursuant to this Clause 17 before receiving notice from the Borrower or the Guarantors pursuant to 

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Clause 19.12 that it has received service of an order for provisional attachment (kari-sashiosae), preservative attachment (hozen-sashiosae) or attachment (sashiosae) with respect to the Loan Receivables or the Guarantee Claims:
In this case, even if the creditor obtaining an order for provisional attachment (kari-sashiosae), preservative attachment (hozen-sashiosae) or attachment (sashiosae), the Borrower, the Guarantors, the Lenders or any other third party suffers Loss as a result of  such distribution and the withdrawal from the Syndicate Account prior to such distribution by the Agent, the Agent shall not be liable in relation thereto, and the Borrower or the Guarantors shall deal with them at its own cost and liability.  The Borrower or the Guarantors shall compensate the Agent for any Loss incurred by the Agent due to such withdrawal and distribution.
		
	(b)
	If the Agent, after the withdrawal from the Syndicate Account pursuant to Clause 16.1 and before the completion of the distributions to the Lenders pursuant to this Clause 17, receives notice from the Borrower or the Guarantors pursuant to Clause 19.12 that it has received service of an order for provisional attachment (kari-sashiosae), preservative attachment (hozen-sashiosae) or attachment (sashiosae) with respect to the Loan Receivables or the Guarantee Claims for which such distribution is made:

In this case, (1) with respect to the money relating to such notice, the Agent may withhold the distributions pursuant to this Clause 17, and may take other measures in the manner that the Agent deems reasonable; and (2) the Agent shall distribute to All Lenders other than the Lender subject to such notice, the money withdrawn from the Syndicate Account excluding those subject to such notice.  If the creditor obtaining an order for provisional attachment (kari-sashiosae), preservative attachment (hozen-sashiosae) or attachment (sashiosae), the Borrower, the Guarantors, the Lenders or any other third party suffers any Loss as a result of the measures by the Agent pursuant to (1) of this Item (b) or distribution and the withdrawal from the Syndicate Account prior to such distribution by the Agent pursuant to (2) of this Item (b), the Agent shall not be liable in relation thereto, and the Borrower or the Guarantors shall deal with them at its own cost and liability.  The Borrower or the Guarantors shall compensate the Agent for any Loss incurred by the Agent due to such measures or withdrawal and distribution.
		
	(c)
	If the Agent receives notice from the Borrower or the Guarantors pursuant to Clause 19.12 that it has received service of an order for provisional attachment (kari-sashiosae), preservative attachment (hozen-sashiosae) or attachment (sashiosae) before the withdrawal from the Syndicate Account pursuant to Clause 16.1:

In this case, (1) with respect to the money relating to such notice, the Agent shall not make the withdrawal from the Syndicate Account pursuant to Clause 16.1; provided, however, that notwithstanding such notice, if the Agent has not received notice from the Borrower or the Guarantors pursuant to Clause 19.12 that it has received service of an order for provisional attachment (kari-sashiosae), preservative attachment (hozen-sashiosae) or attachment (sashiosae) by the Business Day immediately prior to the date of the Agent’s 

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withdrawal, the Agent may, at its option, make the withdrawal from the Syndicate Account and the distributions, or with respect to the money relating to such notice, the Agent may withhold the distributions pursuant to this Clause 17, and may take other measures in the manner that the Agent deems reasonable, and (2) the Agent shall distribute to All Lenders other than the Lender subject to such notice, the money withdrawn from the Syndicate Account excluding those subject to such notice.  If the creditor obtaining an order for provisional attachment (kari-sashiosae), preservative attachment (hozen-sashiosae) or attachment (sashiosae), the Borrower, the Guarantors, the Lenders or any other third party suffers any Loss as a result of the distribution by the Agent pursuant to the proviso of (1) of this Item (c) and the withdrawal from the Syndicate Account prior to such distribution, the Agent shall not be liable in relation thereto, and the Borrower or the Guarantors shall deal with them at its own cost and liability.  The Borrower or the Guarantors shall compensate the Agent for any Loss incurred by the Agent due to such withdrawal and distribution.
		
	(ii)
	If the Assignor and the Assignee, under joint names, notifies the Agent of an assignment of the Loan Receivables in accordance with Clause 28.2:

In this case, the Agent shall, after receiving these notices, immediately commence all administrative procedures necessary in order to treat such Assignee as the creditor of such Loan Receivables, and the Agent shall be exempt insofar as the Agent treats the previous Lender as the party in interest until the Agent notifies the Borrower, the Guarantors, the Assignor and the Assignee that such procedures have been completed.  If the Assignee or any other third party suffers Loss due to such treatment by the Agent, the Agent shall not be liable in relation thereto, and the Borrower and the Assignor of such Loan Receivables shall deal with them at their own cost and liability.  The Borrower, the Guarantors, and the Assignor of such Loan Receivables shall jointlycompensate the Agent for any Loss incurred by the Agent arising out of this Item (ii).
		
	17.3
	The distributions by the Agent to the Lenders shall be made in order, starting from Clause 16.3(iii) to Clause 16.3(vi).  If there is an Item Not Fully Covered regarding the amounts to be distributed, the application and distribution with respect to such Item Not Fully Covered shall be made in accordance with the provisions of Clause 16.4.

		
	17.4
	Notwithstanding the provisions of Clause 16.3, Clause 16.4, and Clause 17.3, if the Borrower’s obligations hereunder become immediately due and payable pursuant to Clause 20, the Agent shall distribute the remaining amount after deducting the amounts described in Clause 16.3(i) and Clause 16.3(ii) from the amount paid by the Borrower, prorated in proportion to the ratio (or, if there is a change in the ratio of the amount of the obligations that the Borrower owes to each Lender under this Agreement by the time that such distribution is made, the ratio reasonably adjusted by the Agent) of the amount of the obligations that the Borrower owes to the Lenders under this Agreement at the time that such obligations become immediately due and payable, and the Agent shall not be liable to the extent that the Agent makes such distribution, in which case, the application shall be made in the order and method that the Lenders deems appropriate.

		
	17.5
	If the remittance of money by the Borrower or the Guarantors provided for in Clause 16.1 fails to be completed by the Due Time, the Agent shall be under no obligation to make the distributions provided for in Clause 17.1 on the same date.  In such cases, the Agent shall 

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make such distributions immediately after withdrawing by [3:00 PM] on the Business Day following the remittance from the Borrower or the Guarantors, and the Borrower or the Guarantors shall bear any Loss incurred by the Lender or the Agent in connection therewith.
		
	17.6
	Upon request from the Agent, and if such request is based on a reasonable cause, the Lenders receiving such request shall immediately notify the Agent of the amount (including specifics) of the receivables they hold against the Borrower or the Guarantors under the Loan-Related Agreements.  In this case, the obligation of the Agent to make distributions provided for in Clause 17.1 shall arise at the time all such notices reach the Agent.  In the case where a Lender delays this notice without reasonable cause, such Lender shall bear all Loss incurred by any Lender or the Agent due to such delay.

		
	17.7
	The Agent may make the distributions to Lenders by Temporary Advancement.  Such Temporary Advancement does not correspond to the performance by the Borrower or the Guarantors of its obligations, and if a Temporary Advancement is made and the Borrower or the Guarantors fails to perform its obligations in relation to such Temporary Advancement by the Due Time, the Lender who received the distribution by Temporary Advancement pursuant to this Clause 17.7 shall, immediately upon the Agent’s request, reimburse to the Agent the amount of such Temporary Advancement that it received.  The Lender shall, immediately upon the Agent’s request, pay to the Agent any Temporary Advancement Costs required in making such Temporary Advancement, per the amount of Temporary Advancement that it received.  If the Lender pays such Temporary Advancement Costs to the Agent, the Borrower or the Guarantors shall compensate such Lender for such Temporary Advancement Costs.

		
	18.
	BORROWER’S REPRESENTATIONS AND WARRANTIES

The Borrower represents and warrants to a Lender and the Agent that each of the following matters is true and correct as of the execution date of this Agreement and the Drawdown Date:
		
	(i)
	The Borrower and the Guarantors are corporations duly incorporated and validly existing under the law governing their incorporation.

		
	(ii)
	The execution and performance of the Loan-Related Agreements by the Borrower and the Guarantors and any transactions associated therewith are within the corporate purposes of the Borrower and the Guarantors, and the Borrower and the Guarantors have duly completed all procedures necessary therefor under the Laws and Ordinances, and the Articles of Incorporation and other internal company rules of the Borrower and the Guarantors.

		
	(iii)
	The execution and performance of the Loan-Related Agreements by the Borrower or the Guarantors and any transactions associated therewith do not result in (a) any violation of Laws and Ordinances which bind the Borrower or the Guarantors, (b) any breach of its Articles of Incorporation and other internal company rules of the Borrower or the Guarantors, and (c) any breach of a third-party contract to which the Borrower or the Guarantors is a party or which binds the Borrower or the Guarantors or the assets of the Borrower or the Guarantors, other than in the case of (a) or (c), of such violation or breach that is minor.

		
	(iv)
	The each person who signed or attached his/her name and seal to the Loan-Related Agreements on behalf of the Borrower or a Guarantor is authorised to sign or attach his/her name and seal to the Loan-Related Agreements as the representative of the 

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Borrower or such Guarantor by all procedures necessary pursuant to the Laws and Ordinances, Articles of Incorporation or other internal company rules of the Borrower or such Guarantor. 
		
	(v)
	The Loan-Related Agreements constitute legal, valid and binding obligations of the Borrower and the Guarantors, and are enforceable against the Borrower and the Guarantors in accordance with the terms of the Loan-Related Agreements, except to the extent that enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law).

		
	(vi)
	All Reports prepared by the Borrower and the Borrower Parent Company are, in all material respects, accurately and duly prepared in accordance with the accounting standards which are generally accepted as fair and appropriate in the location of the headquarters, and if such Reports are required to be audited under the Laws and Ordinances, they have been audited as required.

		
	(vii)
	After the last day of the fiscal year ended on March 31, 2018, no material change, which will cause a deterioration of the business, assets, or financial condition of the Borrower Group Companies and the Borrower Parent Company, taken as a whole, described in the Reports prepared by the Borrower and the Borrower Parent Company for such fiscal year (if such Reports are required to be audited under the Laws and Ordinances, and have been otherwise audited, the audited Reports) and which materially adversely affect the performance of the obligations of the Borrower Group Companies and the Borrower Parent Company, taken as a whole, under the Loan-Related Agreements, has occurred.

		
	(viii)
	Except for those provided for in Attachment 7, no lawsuit, arbitration, administrative procedure, or any other dispute has commenced or is concretely likely to commence with respect to the Borrower and the Guarantors, taken as a whole, which is reasonably likely to materially cause adverse effects on the performance of their obligations under the Loan-Related Agreements.

		
	(ix)
	No matter provided for in the items of Clauses 20.1 or 20.2 has occurred or is concretely  likely to occur, provided, however, that, for the items which provide for a grace period, the matters that are reasonably expected to be remedied within such grace period do not constitute a breach of this item.

		
	(x)
	No Borrower Group Companies have any Existing Commitment Lines or Existing Loans other than the Permitted Commitment Lines and the obligations relating thereto as of the Drawdown Date.  Except for those provided for in Attachment 8, there are no Existing Security Interests and Guarantees etc. with respect to the Borrower Group Companies.

		
	(xi)
	The balances as of the Drawdown Date of the Permitted ICLs among the Borrower Group Companies are as specified in Attachment 9. 

		
	(xii)
	Except for those pursuant to any Related Agreements and rights of retention (ryuchi-ken), statutory liens (sakidori-tokken), and other statutory collateral rights, none of the Borrower Group Companies has, to the benefit of itself or a third party, provided any guarantee, security, or other security interest; provided, however, that for the 

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period until the Drawdown Date (inclusive), the Existing Security Interests and Guarantees etc. are excluded.
		
	(xiii)
	With the Guarantors’ provision to the Agent and the Lenders of the guarantee letter and the completion of the procedures set out in the guarantee letter, the Guarantee Agreements will take effect in accordance with the provisions of the guarantee letter.

		
	(xiv)
	The Security Interests created pursuant to the Security Agreements shall be perfected and be lawful, valid and assertible by the perfection and the completion of the procedures pursuant thereto. 

		
	(xv)
	The ratio of voting rights in the Borrower held directly or indirectly by the Borrower Parent Company is 100% (after Dilution).  For the purpose of this item (xv), the ratio of voting rights in the Borrower indirectly held by the Borrower Parent Company is the total of: 

		
	(x)
	the product of (a) the ratio of voting rights in the Borrower held by a company which directly holds such voting rights (the “Company Directly Holding the Voting Rights”) multiplied by (b) the ratio of voting rights in the Company Directly Holding the Voting Rights directly held by the Borrower Parent Company; and

		
	(y)
	the product of (a) the ratio of voting rights in the Borrower held by the Company Directly Holding the Voting Rights multiplied by (b) the ratio of voting rights in the Company Directly Holding the Voting Rights indirectly held by the Borrower Parent Company, which is the product of the ratio of voting rights held by the Borrower Parent Company of a company whose shares are directly held by the Borrower Parent Company multiplied by each of the ratio of voting rights held by any other company between the Borrower Parent Company and the Company Directly Holding the Voting Rights of a company whose shares are directly held by such other company.

		
	(xvi)
	The Borrower, the Borrower Parent Company, and the Guarantors are not any of the following:

		
	(a)
	an organized crime group member

		
	(i)
	any organized crime group (boryokudan) (meaning a group a member of which (including a member of a member group of such group), in an organized or habitual way, is likely to encourage the committing of violent illegal acts or similar acts; the same applies hereinafter);

		
	(ii)
	any organized crime group member (boryokudan-in) (meaning a member of an organized crime group; the same applies hereinafter);

		
	(iii)
	any person for whom less than five (5) years have passed since it ceased to be an organized crime group member;

		
	(iv)
	any associated member of an organized crime group (boryokudan jun koseiin) (a person other than an organized crime group member who has a relationship with an organized crime group and is likely to perform violent unlawful acts or similar acts because of the influence of the organized crime group, or cooperates in, or is involved in, 

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maintaining or operating the organized crime group by supplying funds, weapons, or other items to the organized crime group or an organized crime group member; the same applies hereinafter);
		
	(v)
	any corporation related to an organized crime group (boryokudan kankei kigyo) (meaning a corporation the management of which an organized crime group member is substantially involved in, a corporation which is operated by any associated or former member of an organized crime group and actively cooperates in, or is involved in, maintaining or operating an organized crime group such as by supplying funds, or a corporation which actively uses the organized crime group and cooperates in maintaining or operating an organized crime group in the performance of its business);

		
	(vi)
	any corporate racketeer (sokaiya) or other person (meaning a person who is likely to perform violent unlawful acts or similar acts in the pursuit of unjust profits against a corporation or other entity and threatens the safety of civil life, such as a corporate racketeer (sokaiya) or a corporate swindler (kaisha goro));

		
	(vii)
	any corporate swindler acting in the name of a social movement (shakai undo tou hyobo goro) (a person who is likely to perform violent unlawful acts or similar acts in the pursuit of unjust profits by pretending to represent or acting in the name of a social movement or political activity and threatens the safety of civil life);

		
	(viii)
	any organized crime group that utilizes specialized knowledge or similar organization (tokushu chino hanzai shudan) (meaning a group or individual, other than those listed in (i) through (vii) above, that plays a key part in structural injustice by using its powers or having a financial connection with an organized crime group backed by a relationship with organized crime group); or

		
	(ix)
	any anti-market force (meaning a stock speculator (shite suji), group that conducts fraudulent acts or any other person who conducts acts which inhibit sound economic activities)

		
	(x)
	any other person similar to (i) through (ix);

		
	(b)
	other relevant persons

		
	(i)
	any person who has a relationship in which a person who falls under (i) through (x) in (a) above (an “Organized Crime Group Member”) is deemed to control its management;

		
	(ii)
	any person who has a relationship in which an Organized Crime Group Member is deemed to be substantially involved in the management;

		
	(iii)
	any person who has a relationship in which it is deemed to wrongly use an Organized Crime Group Member for the purposes of seeking to obtain unfair profit for itself, its company or a third party, or causing damage to a third party, or for other such purposes;

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	(iv)
	any person who has a relationship in which it is deemed to provide funds or benefits to an Organized Crime Group Member or otherwise be involved in an Organized Crime Group Member; or

		
	(v)
	a director or a person substantially involved in the management has a relationship with an Organized Crime Group Member that should be socially condemned.

19.    BORROWER’S AND GUARANTORS’ COVENANTS 
		
	19.1
	The Borrower and the Guarantors each covenant to perform at their expense, the matters described in each of the following items on and after the execution date of the Loan-Related Agreements, and the Borrower and the Guarantors complete the performance of all of their obligations under the Loan-Related Agreements to each Lender and the Agent. 

		
	(i)
	If any matter provided for in each item of Clause 20.1 or 20.2 has occurred, the Borrower shall promptly notify the Agent and All Lenders thereof.

		
	(ii)
	The Borrower (i) shall, and shall cause the Borrower Group Companies or the Borrower Parent Company to, prepare the following documents, and (ii) shall submit those to the Agent and All Lenders via the Agent by the following respective submission deadline.

		
	(a)
	Annual accounting documents (financial statements etc. audited by an audit corporation for the Accounting Term of the Borrower Parent Company (balance sheet and income statement)) (consolidated), and audited balance sheet, income statement, statement of changes in net assets, notes, supplementary statements, cash flow statements, and business Report, for the Accounting Term of the Borrower (consolidated and non-consolidated; however audit by an audit corporation is not required for (i) non-consolidated cash flow statements and business reports, and (ii) consolidated balance sheets, income statements, statements of changes in net assets, notes, supplementary statements, cash flow statements and business reports): within three (3) months after termination of the relevant Accounting Term and in all cases prepared under the accounting rules of the applicable jurisdiction of organization.

		
	(b)
	[Intentionally Deleted]

		
	(c)
	Quarterly accounting documents with respect to the first three (3) fiscal quarters (financial statements etc. for the quarterly settlement of the Borrower Parent Company (balance sheet and income statement)) (consolidated) and balance sheet, income statement, and cash flow statements, for the quarterly settlement of the Borrower (consolidated and non-consolidated; audit by an audit corporation is not required for both above): within two (2) months after termination of the relevant quarterly settlement and in all cases prepared under the accounting rules of the applicable jurisdiction of organization.

		
	(d)
	Compliance Certificate: within two (2) months after termination of each quarter of Borrower. 

		
	(e)
	Financial Covenant Compliance Report: within two (2) months after termination of business year of Borrower.

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	(f)
	Borrower Parent Company’s Financial Related Event Report: within three (3) months after termination of the fiscal year of the Borrower Parent Company.

		
	(g)
	List of balances in deposit accounts of the Borrower Group Companies separately by financial institution and bank account: a list as of the last day of each quarter, within 10 Business Days after the termination of the relevant quarter.

		
	(iii)
	Upon a reasonable request made by the Agent or a Lender through the Agent, the Borrower and the Guarantors shall promptly notify to the Agent of the general condition of the assets and businesses of the Borrower Group Companies, taken as a whole and provide any necessary benefits for the investigation with respect thereto.

		
	(iv)
	If any material adverse change has occurred, to the assets and businesses of the Borrower Parent Company or the Borrower Group Companies, taken as a whole, or if any lawsuit, arbitration, administrative procedure, or any other dispute, which will materially and adversely affect, or is concretely likely to materially and adversely affect, the performance of the obligations of the Borrower or the Guarantors, taken as a whole, under the Loan-Related Agreements, has commenced, or is concretely likely to commence, the Borrower and the Guarantors, as the case may be, shall promptly notify the Agent and All Lenders thereof.

		
	(v)
	If any of the items described in Clause 18 is found untrue (with respect to Clauses 18(ii) and 18(xii), when made in any material respect), the Borrower and the Guarantors shall promptly notify thereof to the Agent and All Lenders.

		
	19.2
	The Borrower shall comply with the following Financial Covenants.

		
	(i)
	The total amount of net assets on the Borrower’s consolidated balance sheet as of the end of a fiscal year of the Borrower starting from the fiscal year ending March 2019 (inclusive) shall be maintained at least 80% of the total net assets on a consolidated basis with the Borrower as parent company as of the end of the immediately preceding fiscal year (in calculating the total amount of the net assets, the foreign currency conversion adjustment account shall not be included in such calculation). Provided, however, that in case the total amount of net assets on the Borrower’s consolidated balance sheet for the fiscal year ending March 2019 falls below 80% of the total amount of net assets on a consolidated basis as of the end of the fiscal year ended March 2018, and if the amount equal to the total amount for acquisition of treasury shares and dividends carried out in March 2018 is added to the number of the net assets on the Borrower’s consolidated balance sheet for the Accounting Term ending March 2019, and the result is greater than 80% of the total amount of net assets on a consolidated basis as of the end of the Accounting Term ended March 2018, then this will not constitute a breach of this Item (i). 

		
	(ii)
	The Borrower’s operating profit on a consolidated basis as of the end of a fiscal year starting with the fiscal year ending March 2019 (inclusive) shall not be negative for two consecutive fiscal years. In the event that the Borrower’s operating profit on a consolidated basis as of the end of an Accounting Term starting from the term ending March 2019 (inclusive) or the subsequent Accounting Term will be negative, the Initial Business Plan (if the Initial Business Plan has been changed with the Majority Lenders’ approval, this means such changed version) shall be changed to content 

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reasonably satisfactory to the Lenders and submitted to the Agent, and shall obtain the approval of All Lenders.
		
	19.3
	The Borrower shall not bear, and shall not cause the Borrower Group Companies (other than the Borrower) to bear, without the prior written consent of the Majority Lenders, any new Financial Indebtedness other than the obligations permitted under this Agreement (including any Intercompany Loans pursuant to the Permitted ICL Agreements), the obligations under the Permitted Commitment Lines and obligations under the Related Agreements.  

		
	19.4
	On and after the execution date of this Agreement, and until the Borrower and the Guarantors complete the performance of all of their obligations under Loan-Related Agreement with respect to each Lender and the Agent, the Borrower shall not offer, and shall not cause the Borrower Group Companies (other than the Borrower) to offer, without the prior written consent of the Lenders and the Agent, any security to secure its obligations in respect of of the Borrower, the Guarantors, or any third party, excluding (i) the creation of Security Interests pursuant to the Security Agreements and (ii) the creation of statutory liens (sakidori-tokken), possessory liens (ryuchi-ken), or other security interests arising pursuant to Laws and Ordinances.  For the avoidance of doubt, this Clause 19.4 shall not prevent the Borrower Parent Company from offering any security to any third party. 

		
	19.5
	On and after the execution date of this Agreement, and until the Borrower and the Guarantors complete the performance of all of their obligations under the Loan-Related Agreements with respect to each Lender and the Agent, the Borrower shall not bear, and shall not cause the Borrower Group Companies (other than the Borrower) to bear, without the prior written consent of the Majority Lenders, any new Guarantee Obligations (including obligations similar to guarantees) other than obligations pursuant to the Loan-Related Agreements and guarantees which are equivalent to the guarantees provided for in Attachment 8 and are provided in relation to the expiration of such guarantees. 

		
	19.6
	The Borrower shall not make or maintain, and shall not cause the Borrower Group Companies (other than the Borrower) to make, without the prior written consent of the Majority Lenders, investments (excluding capital investment, but including tokumei kumiai investments, limited partnership investments, or other partnership investments) to another person (regardless of whether it is an individual or corporation or other organization, and including the Borrower Parent Company and the Borrower Group Companies) other than (i) investments made associated with the Permitted Reorganization and (ii) investments from the Borrower Group Companies (other than the Borrower) to the Borrower, or disburse loans (excluding (a) any loans pursuant to the Permitted ICL Agreements and  (b) any loans made from the Borrower Group Companies (other than the Borrower) to the Borrower, but including all loans to the Borrower Parent Company and the Borrower Group Companies other than the loans in (a) and (b) above).

		
	19.7
	The Borrower shall maintain the ratio of voting rights in the Borrower held directly or indirectly by the Borrower Parent Company to be 100% (after the Dilution).

		
	19.8
	The Borrower shall, and shall cause the Borrower Group Companies (other than the Borrower) to, affirmatively covenant to be in compliance with matters described in the items below on or after the execution date of this Agreement and until the Borrower and the Guarantors complete the performance of all of their obligations under the Loan-Related Agreements to each Lender and the Agent:

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	(i)
	The Borrower Group Companies will maintain licenses and other similar permits that are necessary to conduct their main business, and continue to carry out the business in compliance with all Laws and Ordinances, except where the failure to maintain cannot reasonably be expected to have a material adverse effect on the business or assets of the Borrower Group Companies, taken as a whole.

		
	(ii)
	The Borrower Group Companies will not change its primary business, except due to the Permitted Reorganization.

		
	(iii)
	The Borrower Group Companies will not, unless otherwise specified in the Laws and Ordinances, subordinate the payment of any of its debts under the Loan-Related Agreements to the payment of any unsecured debts (including any secured debts that will not be fully collected after the foreclosure sale of the security), or at least will treat them equally.

		
	(iv)
	Except with consent of the Agent and the Majority Lenders, with respect to the Borrower Group Companies, the Borrower Group Companies will not enter into any entity conversion (as defined in Article 2, Item (xxvi) of the Companies Act), merger, company split, share exchange, share transfer, assign (including an assignment for a sale and leaseback transaction) all or a part of its business or assets to a third party, decrease in capital amount, succeed to all or a part of the material business or assets of a third party, assign or dispose of the shares of any Subsidiary or Affiliate, or carry out acquisition of shares (including incorporation of a Subsidiary or Affiliate) accompanying a change of any Subsidiary or Affiliate, which has a material adverse effect on the performance of the obligations of the Borrower or the Guarantors under the Loan-Related Agreements, but excluding any of such conduct in relation to the Permitted Reorganization.

		
	(v)
	The Borrower Group Companies will not become an Organized Crime Group Member or any person listed in Clauses 18(xvi)(b)(i) through 18(xvi)(b)(v).

		
	(vi)
	The Borrower Group Companies will not conduct any of the following acts by itself or by using a third party:

		
	(a)
	violent demands;

		
	(b)
	unjust demands of a person that exceeds that person’s legal liability;

		
	(c)
	using threatening behaviour or violence in connection with a transaction;

		
	(d)
	damaging the Lender’s or the Agent’s credibility or obstructing the Lender’s or the Agent’s business by spreading rumours, using fraudulent means or using force; or

		
	(e)
	any other acts similar to (a) through (d) above.

		
	19.9
	The Borrower shall not bear, and shall not cause the Borrower Group Companies (other than the Borrower) to bear, without the prior written consent of the Majority Lenders, any lease obligations (regardless of whether they are on or off the balance sheet, but excluding obligations with respct to any rents and other relevant obligations under any lease of buildings or other real property) or instalment obligations totalling 500 million yen or greater on a balance basis as of the end of a fiscal year on a consolidated basis with Borrower as the parent company. 

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	19.10
	The Borrower shall not, and shall not cause the Borrower Group Companies (other than the Borrower) to (regardless of the reason such as paying dividends, buying back own shares, making an appropriation of surplus, disbursing loans, paying management advisory fee or other), deliver any funds to the Borrower Parent Company, excluding (i) payments of commission fees payable in the ordinary course of business (limited to the amount not exceeding the term and conditions of the arm’s length transactions), and (ii) loans pursuant to the Permitted ICL Agreement (Borrower Parent Company).

		
	19.11
	If the Borrower makes any amendment thereto, forgives any breach of duties, or waives its rights in relation to the Permitted ICL Agreement (Borrower Parent Company), the Borrower shall immediately notify the Agent of such action, along with the reason and background of such action. 

		
	19.12
	If the Borrower receives any service of an order for provisional attachment (kari-sashiosae), preservative attachment (hozen-sashiosae), or attachment (sashiosae) with respect to the Loan Receivables, the Borrower shall immediately notify All Lenders through the Agent in writing, together with a photocopy of such order. 

		
	20.
	ACCELERATION

		
	20.1
	If any of the events described in the items below has occurred, all of the Borrower’s and the Guarantors’ debts under the Loan-Related Agreements payable to All Lenders and the Agent shall automatically become due and payable without any notice or demand by a Lender or the Agent, and the Borrower and the Guarantors shall promptly pay the principal of all Loans and the interest and Break Funding Costs and any other payment obligation that the Borrower and the Guarantors owes pursuant to the Loan-Related Agreements in accordance with the provisions of Clause 16:

		
	(i)
	If any payment by the Borrower or a Guarantor has been suspended under aplicable Laws and Ordinances, or if a petition for Insolvency Proceedings has been filed against the Borrower or a Guarantor, provided, however, that this event of default is deemed not to occur retroactively if the Insolvency Proceedings are wihdrawn within 10 days (with respect to jurisdicitons other than Japan, 60 days) from the filing, provided, however, that the event of default is deemed not to occur retroactively if (i) (a) such petition has no basis or is abusive and such Borrower or Guarantor has disputed against it in good faith or (b) the Borrower reasonably determines such petition as inappropriate based on reasonable grounds and (ii) such petition is withdrawn within 10 Business Days (with respect to the Borrower Parent Company, 60 days) from the date of such petition;

		
	(ii)
	If the resolution for dissolution is adopted with respect to the Borrower or a Guarantor, or the Borrower or a Guarantor receives order of dissolution (excluding the dissolution upon merger or the dissolution after a business transfer which is a Permitted Reorganization);

		
	(iii)
	If the Borrower or a Guarantor abolishes its business, except where the Borrower or a Guarantor liquidates under the Permitted Reorganization; or

		
	(iv)
	[Intentionally Deleted]; 

		
	(v)
	If any order or notice of provisional attachment (kari-sashiosae), preservative attachment (hozen-sashiosae), or attachment (sashiosae) (including any such procedure taken outside Japan) has been sent out, or any disposition that orders a 

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service of an order of preservative attachment (hozen-sashiosae) or attachment (sashiosae) has been rendered, with respect to the deposit receivables or other receivables held by the Borrower or the Guarantors against a Lender.  Provided, however, that in the case of attachment, the event of default is deemed not to occur retroactively if (i) release bonds are deposited within 10 Business Days after such order, or (ii) enforcement of such attachment is suspended or revoked within 10 Business Days after such order.
		
	20.2
	If any of the events described in the items below has occurred, all of the Borrower’s or the Guarantors’ debts under the Loan-Related Agreements payable to All Lenders and the Agent shall become due and payable upon notice to the Borrower, from the Agent, after request by the Majority Lenders, and the Borrower or the Guarantors, shall immediately pay the principal of all Loans and the interest and Break Funding Costs and any other payment obligation that the Borrower or the Guarantors owe pursuant to this Agreement in accordance with the provisions of Clause 16:

		
	(i)
	If the Borrower or the Guarantors have defaulted in performing when due its payment obligations, whether under the Loan-Related Agreements or not, payable to a Lender or the Agent in whole or in part, except where (i) such default was due to an administrative or technical misconduct without the Borrower’s willful conduct or gross negligence and (ii) the payment is made within 3 Business Days after the due date ;

		
	(ii)
	If any representations and warranties made pursuant to the Loan-Related Agreements has been found to be untrue in any material respect (limiting to the cases where such breach is curable and not being cured within 15 Business Days after such breach);

		
	(iii)
	Except for the cases described in the preceding two (2) items, if the Borrower, the Third Party Security Provider, or the Guarantors breached any of its obligations under the Loan-Related Agreements; provided, however, that if such breach is able to be resolved or remedied (excluding the breach of Clause 19.8(v) or 19.8(vi)), only if such breach has not been remedied for 15 or more Business Days from the date of such breach;

		
	(iv)
	If any order or notice of attachment (sashiosae), provisional attachment (kari-sashiosae), preservative attachment (hozen-sashiosae), or provisional disposition (kari-shobun) (including similar procedure taken outside Japan) has been sent out or auction procedures (keibaitetsuzuki) have been commenced with respect to Collateral offered by the Borrower or by the Third Party Security Provider.  Provided, however, that in the case of attachment, this event of default is deemed not to occur retroactively if (i) release bonds are deposited within 10 Business Days after such order, or (ii) enforcement of such attachment is suspended or revoked within 20 days (60 days for the U.S.)after such order.;

		
	(v)
	if a petition of specific conciliation (tokutei-chotei) has been filed against the Borrower or the Guarantors;

		
	(vi)
	If any of the outstanding corporate bonds (with repect to the Borrower Parent Company, limited to the aggregate outstanding principal amount equal to or greater than U.S. $10,000,000) issued by the Borrower or the Guarantors have been accelerated, provided, however, that, with repect to the Borrower Parent Company, this event of default is deemed not to occur retroactively if such circumstances are cured within 3 Business Days;

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	(vii)
	(a) If all or part of the Borrower’s or the Guarantors’ Financial Indebtedness (excluding any Financial Indebtedness with respect to corporate bonds and any Financial Indebtedness the creditor of which is the Borrower Parent Company or its Subsidiary, and with respect to the Borrower Parent Company, limited to the aggregate outstanding principal amount equal to or greater than U.S. $10,000,000) other than those under the Loan-Related Agreements has been delayed or has been accelerated; or (b) if any of the Borrower’s or the Guarantors’ guarantee obligations for the Financial Indebtedness of a third party (including Financial Indebtedness with respect to corporate bonds issued by a third party) (with respect to guarantee obligations of the Borrower Parent Company, limited to the guarantee obligations equal to or greater than U.S. $10,000,000 in the total payment amount) has become due and payable, and the Borrower or the Guarantors are unable to perform such obligations; provided, however, that, with repect to the Borrower Parent Company and the Subsidiaries of the Borrower (other than Japanese Subsidiaries), this event of default is deemed not to occur retroactively if such circumstances are cured within 7 Business Days; 

		
	(viii)
	If all or part of the Borrower’s or the Guarantors’ non-financial indebtedness (excluding any non-financial indebtedness the creditor of which is the Borrower Parent Company or its Subsidiary, and with respect to the Borrower Parent Company, limited to the aggregate outstanding principal amount equal to or greater than U.S. $10,000,000, and with respect to the Borrower and other Guarantors collectively, limited to the aggregate outstanding principal amount equal to or greater than U.S. $10,000,000) other than those under the Loan-Related Agreements has been delayed or has been accelerated; or if any of the Borrower’s or the Guarantors’ guarantee obligations for non-financial indebtedness of a third party (with respect to the Borrower Parent Company, limited to the guarantee obligations equal to or greater than U.S. $10,000,000, and with respect to the Borrower and other Guarantors collectively, limited to the guarantee obligations equal to or greater than U.S. $10,000,000) has become due and payable, and the Borrower or the Guarantors are unable to perform such obligations, provided, however, that, with respect to the Borrower Parent Company and the Subsidiaries of the Borrower (other than Japanese Subsidiaries), this event of default is deemed not to occur retroactively if such circumstances are cured within 7 Business Days. In addition, in the case where the Borrower or a Guarantor is disputing against the obligee of such non-financial indebtedness based on a reasonable basis in respect of non-financial indebtedness, including matters related to the existence, amounts, a due date for payments of such non-finaicial indebtedness, during the pendency of the dispute, the absence of the payment of such non-financial indebtedness shall not constitute an event of default under this item;

		
	(ix)
	If the Borrower or the Guarantors have suspended its business (excluding where the Borrower or a Guarantor liquidates under the Permitted Reorganization), determined to suspend or abolish its business, or received dispositions such as suspension of business or others from the competent government authority;

		
	(x)
	If any check or note in the amount issued by the Borrower or the Guarantor has been dishonored for the first time in Japan, if densai.net Co., Ltd. has recorded that the Borrower’s or the Guarantor’s electronically recorded monetary claims under Japanese Law become insolvent, or if other Electric Monetary Claim Recording Institutions (as defined in Article 2, Paragraph 2 of the Electronically Monetary Recorded Claims Act of Japan; the same shall apply hereinafter) have taken 

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equivalent procedures; except for in the case of handling mistake made by a Japanese clearing house or densai.net Co., Ltd. or other Electric Monetary Claim Recording Institutions; or
		
	(xi)
	If any of the following events has occurred with respect to the Borrower Parent Company (provided that, the net leverage ratio, the amount of operating profit and the amount of net assets shall be calculated in accordance with Attachment 10 on a consolidated basis ):

		
	(a)
	The consolidated net leverage ratio of the Borrower Parent Company as of each fiscal year starting with the fiscal year ending March 2019 exceeds 1.5.

		
	(b)
	The consolidated operating profit of the Borrower Parent Company as of each fiscal year starting with the fiscal year ending March 2019) is negative for two (2) consecutive fiscal years.

		
	(c)
	The amount of consolidated net assets of the Borrower Parent Company as of any fiscal year starting with the fiscal ending March 2019 falls below 80% of the amount of the consolidated net assets as of the end of the immediately preceding fiscal year.

		
	20.3
	If the notice dispatched pursuant to Clause 20.2 has been delayed or has not been delivered to the Borrower or the Guarantors due to fault of the Borrower or the Guarantors, all of the Borrower’s debts under the Loan-Related Agreements shall become due and payable by the time such request or notice should have been delivered to the Borrower, and the Borrower shall promptly  pay the principal of all Loans and the interest and Break Funding Costs and any other payment obligations that the Borrower owes pursuant to this the Loan-Related Agreements, in accordance with the provisions of Clause 16.

		
	20.4
	If a Lender has become aware of the occurrence of any events provided for in Clauses 20.1(i) through 20.1(v) or items of 20.2, the Lender shall promptly notify the Agent of such occurrence, and the Agent shall notify all other Lenders of the occurrence of such events.  In the case of the occurrence of an event described in Cause 20.1(v), if a Lender has become aware of the occurrence of such event, the Lender shall promptly notify the Borrower, the Guarantors, all other Lenders and the Agent of the occurrence of such event.

		
	21.
	SET-OFF

		
	21.1
	When the Borrower or the Guarantors are required to perform its obligations to the Agent or a Lender upon their Due Date, upon acceleration or otherwise, (a) the Agent or the Lender may set off the receivables it has against the Borrower or the Guarantors, as the case may be, under the Loan-Related Agreements against its deposit obligations, obligations under the insurance contract or other obligations owed to the Borrower whether or not such obligations are due and payable, regardless of the provisions of Clause 16.2, and (b) the Agent or the Lender may also omit giving prior notice and following established procedures, may take the deposited amount on behalf of the Borrower or the Guarantors, and apply this amount to the payment of obligations.  The interest, Break Funding Costs and default interest and others for the receivables and obligations involved in such a set-off or application to payment shall be calculated as the receivables and obligations are deemed to be extinguished on the date of such calculation, and in such calculation, the interest rate or default interest rate shall be in accordance with each agreement providing for such interest rate or default interest rate, and the foreign exchange rate at the time such calculation is made, as reasonably determined by the Agent or the Lender, shall be applied.  If the amount to be set-off or 

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applied to payment is not sufficient to extinguish all of the Borrower’s debts, the Agent or the Lender may apply such set-off amount in the order and method it deems appropriate, and the Borrower and the Guarantors shall not object to such application. 
		
	21.2
	The Borrower and the Guarantors may, if the receivables the Agent or the Lender has against the Borrower or the Guarantors under the Loan-Related Agreements become due, and if it is necessary for the Borrower to preserve its deposit receivables, receivables under the insurance contract or any other receivables that it has against the Agent or a Lender that became due, set off such receivables against its obligations owed to the Lender under this Agreement, regardless of the provisions of Clause 16.2.  In this case, the Borrower and the Guarantors shall give written set-off notice to the Agent or the Lender and promptly submit to the Agent or the Lender the receivable certificates for the deposit receivables, receivables under the insurance contract or other receivables being set-off and the passbook impressed with the seal of the seal impression submitted.  The interest and default interest for the receivables and obligations involved in such a set-off shall be calculated as the receivables and obligations are deemed to be extinguished on the day of receipt of such set-off notice, and in such calculation, the interest rate or default interest rate shall be in accordance with each agreement providing for such interest rate or default interest rate, and the foreign exchange rate at the time such calculation is made, as reasonably determined by the Agent or the Lender, shall be applied.  If the Borrower’s receivables to be set-off are not sufficient to extinguish all of its debts, the Borrower may apply such set-off amount in the order and method it deems appropriate; provided, however, that if the Borrower does not instruct such order or method, any such amounts may be applied in the order and method deemed appropriate by the Agent or each Lender, and the Borrower and the Guarantors shall not object to such application.

		
	21.3
	If the principal of the Individual Loan is extinguished due to the performance of a set-off pursuant to Clause 21.1, and if the date of calculation in the case described in Clause 21.1 is the day other than the Interest Payment Date of such Individual Loan, the Borrower and the Guarantors shall, at the same time of such set-off, pay in accordance with the provisions of Clause 16 to each Lender of such Individual Loan the Accrued Interest and the Break Funding Costs for the Individual Loan to be extinguished due to the performance of the set-off.  Each Lender of such Individual Loan shall promptly notify the Agent of the amount of the Break Funding Costs for such Individual Loan after the set-off, and the Agent shall promptly notify the Borrower of such amount after the receipt of such notice.

		
	22.
	ARRANGEMENTS AMONG LENDERS

		
	22.1
	If a set-off or application to payment is performed by a Lender pursuant to Clause 21.1 (such Lender, hereafter, a “Setting-off Lender”), the Lender and the Agent shall make arrangements with each other by way of assigning receivables pursuant to the procedures described in the items below; provided, however, that if All Lenders and the Agent agree that the Lender and the Agent make arrangements with each other by the procedures other than those described in the items below, or if the Agent determines at its discretion that the Lender and the Agent will make arrangements with each other by other procedures, the Lender and the Agent shall make arrangements with each other in accordance with such agreement or determination:

		
	(i)
	The Agent shall specify the Loan Receivables that the Agent or the Lender other than a Setting-off Lender (the “Non Setting-off Lender”) should have received in accordance with the provisions of Clauses 17.1 through 17.4 assuming that the 

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amount of debt obligations, which has been extinguished due to the performance of a set-off or application to payment, had been paid to the Agent, and shall calculate the amount of such Loan Receivables.
		
	(ii)
	The Setting-off Lender shall purchase from the Non Setting-off Lender the Loan Receivables of the amount equivalent to the amount calculated by the Agent pursuant to the preceding item from and among the Loan Receivables of the Non Setting-off Lender specified by the Agent pursuant to the preceding item at their face value; 

		
	(iii)
	If assignment is made pursuant to Clause 22.1(ii), the Non Setting-off Lender shall, at its own expense, notify the Borrower and the Guarantors promptly after such assignment by a document bearing an incontrovertible date (kakutei hizuke) pursuant to Article 467 of the Civil Code.

		
	22.2
	In the case described below, the assignment of receivables provided for in Clause 22.1 will not be performed, and only the relevant Lender may receive repayment:

		
	(i)
	If the Lender exercises the Security Interest;

		
	(ii)
	If the Lender receives any repayment of debt obligations it has against the Borrower and the Guarantors under the Loan-Related Agreements with respect to the Security Interest as a result of any compulsory enforcement or exercise of Security Interest through a foreclosure by a third party.

		
	23.
	RIGHTS AND DUTIES OF THE AGENT

		
	23.1
	The Agent shall, pursuant to the entrustment by All Lenders, perform the Agent Services and exercise rights for the benefit of All Lenders, and shall exercise the rights which, in the Agent’s opinion, are ordinarily necessary or appropriate, upon performing the Agent Services.  The Agent shall not be liable for the duties other than those expressly specified in each provision of the Loan-Related Agreements, nor shall be liable for any non-performance of obligations by the Lenders under the Loan-Related Agreements.  The Agent shall be an agent of the Lenders and, unless otherwise provided, shall never act as an agent of the Borrower or the Guarantors.

		
	23.2
	The Agent may in good faith rely upon any communication, instrument and document that has been delivered between appropriate persons and has been signed or has the name and seal attached by such appropriate persons and believed by the Agent in good faith to be true and correct, and may act in reliance upon any written opinion or explanatory letter of experts appointed by the Agent within the reasonably necessary extent in relation to the Loan-Related Agreements.

		
	23.3
	The Agent shall perform its duties and exercise its authorities provided for in the Loan-Related Agreements in good faith with the due care of a good manager.

		
	23.4
	Neither the Agent nor any of its directors, employees or agents shall be liable to the Lenders for any acts or omissions conducted by the Agent pursuant to, or in connection with the Loan-Related Agreements, except for its or their willful misconduct, bad faith or gross negligence.  The Lenders (other than Lenders who act as the Agent) shall jointly and severally indemnify the Agent for any and all liabilities and Loss incurred by the Agent in the course of the performance of its duties under the Loan-Related Agreements, to the extent not reimbursed by the Borrower or the Guarantors, and only for the amount outstanding after deducting the portion for which the Agent should contribute, calculated pursuant to the 

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Agent’s Commitment Ratio; provided, however, that if any of the Lenders cannot perform the indemnity for which it is liable, the Agent’s Commitment Ratio shall be figured by dividing the Agent’s Commitment Ratio by the aggregate of the Commitment Ratio of the Lenders other than such non-indemnifying Lenders.
		
	23.5
	If the Majority Lenders or All Lenders give written instructions, the Agent shall conduct acts in accordance with such instructions to the extent that such instructions do not violate any provision expressly provided for in the Loan-Related Agreements and are legal.  In this case, the Agent shall not be liable to the Borrower and the Guarantors or the Lender for the results arising from such acts.

		
	23.6
	Unless the Agent receives from the Borrower, the Guarantors, or the Lender notice of the existence of an event provided for in each item of Clause 20.1 or each item of Clause 20.2, the Agent shall be deemed to have no knowledge of the existence of such event.

		
	23.7
	The Agent shall not be liable for the validity of the Loan-Related Agreements, nor shall guarantee any matters represented by the parties in the Loan-Related Agreements.  The Lenders shall enter into, and conduct transactions contemplated in, the Loan-Related Agreements at its sole discretion by conducting investigations as to the necessary matters including creditworthiness of the Borrower or the Guarantors on the basis of the documents, information and other data as it has deemed appropriate.

		
	23.8
	In cases where the Agent is also acting as a Lender, the Agent shall have the same rights and obligations as each other Lender, irrespective of the Agent’s obligations under the Loan-Related Agreements.  The Agent may engage in commonly accepted banking transactions with the Borrower or the Guarantors other than under the Loan-Related Agreements.  In this case, the Agent shall not be required to disclose to other Lenders the information in relation to the Borrower or the Guarantors it has obtained through the transactions with the Borrower or the Guarantors other than under the Loan-Related Agreements, nor shall the Agent be required to distribute to other Lenders any money it has received from the Borrower or the Guarantors through transactions with the Borrower or the Guarantors other than under the Loan-Related Agreements.  (Any information that has been disclosed to the Agent by the Borrower or the Guarantors shall be, unless expressly identified as being made in relation to the Loan-Related Agreements, deemed as the information obtained in relation to the transactions with the Borrower or the Guarantors other than under the Loan-Related Agreements.)  

		
	23.9
	The calculation of the amounts to be distributed to each Lender pursuant to the provisions of Clause 17 shall be made in accordance with the following: (i) for amounts to be distributed to each Lender other than the Lender designated by the Agent (a “Fraction Integrating Lender”; but if the Agent is also a Lender, the Lender who is also appointed as the Agent will be the Fraction Integrating Lender), any amount less than one yen shall be rounded down, and (ii) for amounts to be distributed to a Fraction Integrating Lender shall be the difference between the aggregate of the amounts to be distributed to All Lenders and the aggregate of the amounts distributed to other Lenders. 

		
	23.10
	The determination of the interest rate and repayment date included in a notice given by the Agent to the Borrower, the Guarantors, or the Lenders, and other determination and amount paid under the Loan-Related Agreements shall be binding upon the Borrower, the Guarantors, and the Lenders as they are finally determined unless there is any manifest error.

23.11    If the Agent receives any notice from the Borrower or the Guarantors which is required to be given to each Lender in relation to the Loan-Related Agreements, the Agent shall immediately 

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inform All Lenders of the details of such notice, or if the Agent receives any notice from a Lender which is required to be given to the Borrower, the Guarantors, or other Lenders in relation to the Loan-Related Agreements, the Agent shall immediately inform the Borrower, the Guarantors, or All Lenders, as the case may be, of the details of such notice.  The Agent shall make any documents, which the Agent has obtained from the Borrower the Guarantors and has kept, available for review by a Lender during the ordinary business hours.

		
	24.
	RESIGNATION AND DISMISSAL OF THE AGENT

		
	24.1
	The resignation of the Agent shall follow the procedures described below:

		
	(i)
	The Agent may resign its position as the Agent by giving written notice to All Lenders, the Borrower, and the Guarantors; provided, however, that such resignation shall not become effective until a successor Agent is appointed and such successor accepts such appointment.

		
	(ii)
	If the Agent gives notice pursuant to the preceding item, the Majority Lender(s) may appoint a successor Agent upon obtaining the prior written consent from the Borrower.

		
	(iii)
	If a successor Agent is not appointed by the Majority Lender(s) within thirty (30) days (including the same day of notice) after the notice of resignation is given as described in Item (i) above, or if the entity being appointed by the Majority Lender(s) as a successor Agent does not accept its assumption of the office of the Agent, the Agent in office at that time shall, upon obtaining  the prior written consent form the Borrower, appoint a successor Agent on behalf of the Majority Lender(s).

		
	24.2
	The dismissal of the Agent shall follow the procedures described below:

		
	(i)
	The Majority Lender(s) may dismiss the Agent by giving written notice thereof to each of the other Lenders, the Borrower, the Guarantors, and the Agent; provided, however, that such dismissal shall not become effective until a successor Agent is appointed and such successor accepts such appointment.

		
	(ii)
	If the Majority Lender(s) gives notice pursuant to the preceding item, the Majority Lender(s) may appoint a successor Agent upon obtaining the prior written consent from the Borrower.

		
	24.3
	If the entity appointed as the successor Agent pursuant to Clauses 24.1 or 24.2 accepts the assumption of the office, the former Agent shall deliver to the successor Agent all documents and the materials it has kept as the Agent under the Loan-Related Agreements, and shall give all the support necessary for the successor Agent to perform the duties of the Agent under the Loan-Related Agreements.

		
	24.4
	The successor Agent shall succeed to the rights and obligations of the former Agent under the Loan-Related Agreements, and the former Agent shall, at the time of the assumption of office by the successor Agent, be exempted from all of its obligations as the Agent; provided, however, that the provisions of the Loan-Related Agreements relevant to any actions (including omissions) conducted by the former Agent during the period it was in office shall remain in full force and effect.

		
	24.5
	If any of the following events occurs, notwithstanding the provisions of the preceding four paragraphs, the Agent may resign its position as the Agent upon agreement with the Majority Lenders.  If the Agent resigns its position as the Agent pursuant to this paragraph, the 

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resigning Agent shall promptly notify the Borrower of such resignation, and the Borrower shall not object to such resignation.  Even if the Agent resigns its position as the Agent pursuant to this paragraph, the Borrower shall not be released from its obligations to pay the Agent Fee that has already accrued:
		
	(i)
	If a petition of commencement of Insolvency Proceedings has been filed against the Borrower or the Guarantors; or

		
	(ii)
	If the Borrower or the Guarantors fail to pay the Agent Fee, and if, although the Agent requests the Borrower to pay the Agent Fee by setting a reasonable period of time, the Borrower fails to pay the Agent Fee within such period.

		
	25.
	CLARIFICATION OF THE INTENTION OF THE LENDERS

		
	25.1
	The clarification of the intention of the Majority Lenders or All Lenders shall follow the procedures described below.

		
	(i)
	If a Lender deems that any event which requires the instructions of the Majority Lenders or All Lenders in the Loan-Related Agreements has occurred, such Lender may give notice to the Agent to request the clarification of the intention of the Majority Lenders or All Lenders.  

		
	(ii)
	The Agent shall, upon receipt of a notice described in the preceding item, immediately give to All Lenders notice to seek the clarification of the intention of the Majority Lenders or All Lenders.

		
	(iii)
	Each Lender shall, upon receipt of the notice described in the preceding item, make its decision on the relevant event and inform the Agent of such decision within a reasonable period of time as designated by the Agent (in principle, within 10   Business Days after the date of the receipt of the notice in the preceding item).

		
	(iv)
	If a decision of the Majority Lenders or All Lenders is made pursuant to the preceding three items, the Agent shall immediately notify the Borrower, the Guarantors, and All Lenders of such decision as the instruction by the Majority Lenders or All Lenders.

		
	25.2
	If the Agent deems that any event which requires the clarification of the intention of the Majority Lenders or All Lenders occurs, other than in the case of Clause 25.1, the Agent may give to All Lenders notice to seek such clarification.  In such case, procedures to be taken after giving the notice shall follow the provisions of Items (iii) and (iv) of Clause 25.1.

		
	25.3
	In addition to the preceding paragraphs, if the Borrower deems that any event which requires the instructions of the Majority Lenders or All Lenders has occurred, the Borrower may give notice to the Agent to request the clarification of its intention of the Majority Lenders or All Lenders.  In such case, procedures to be taken after giving notice shall follow the provisions of Items (iii) and (iv) of Clause 25.1. 

26.    AMENDMENT TO THIS AGREEMENT
		
	26.1
	This Agreement may not be amended except as agreed in writing by the Borrower, the Guarantors, All Lenders, and the Agent.  Notwithstanding, any discharge from liabilities for a breach of obligations of the Borrower or the Guarantors under this Agreement, and any other waiver by the Lenders and the Agent (including where the amendment to this 

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Agreement includes such discharge or waiver (including, but not limited to, where Section 19 or 20 is amended to the advantage of the Borrower) but only to the extent of the amendment with respect to such discharge or waiver) may be made by written agreement between the Majority Lenders through the Agent and the Agent.
		
	26.2
	Notwithstanding the provisions of the preceding paragraph, if the Agent resigns in accordance with Clause 24.5 and a successor of that Agent is not immediately appointed through agreement of the Majority Lenders, this Agreement may be amended, upon written agreement of the Borrower, the Majority Lenders and the Agent (or written agreement of the Majority Lenders, if the Agent has already resigned), to the extent reasonably necessary to make it possible for each Lender to exercise their rights individually.  The party having amended this Agreement in accordance with this paragraph shall provide the other parties hereto with a written notice of the details of the amendment without delay.

		
	27.
	ASSIGNMENT OF THIS AGREEMENT BY BORROWER; ASSIGNMENT BEFORE MAKING OF LOANS

		
	27.1
	The Borrower and the Guarantors may not assign to any third party its status as a party, its rights and obligations under the Loan-Related Agreements, unless All Lenders and the Agent give their prior consent in writing.

		
	27.2
	For the period until the drawdown of an Individual Loan, a Lender may assign to any third party its status as a party to this Agreement, or all or any part of its rights and obligations associated therewith, if the Borrower, the Guarantors, and the Agent give their prior consent in writing and all requirements described in the items below are fulfilled (hereinafter, a Lender which made such assignment as an “Assigning Lender” and which accepted such assignment as a “Successive Lender”).  The Borrower, the Guarantors and the Agent may not unreasonably withhold their consent, and the Agent, upon such assignment, shall notify All Lenders of such assignment.

		
	(i)
	If any partial assignment of the status under this Agreement is made, both the Assigning Lender and the Successive Lender shall become a Lender under this Agreement and each provision of this Agreement shall be applicable to such Lender on and after the date of the assignment, and the Individual Loan Money of the Assigning Lender prior to the assignment of the status shall be reduced by an amount separately agreed upon between the Assigning Lender and the Successive Lender (the “Individual Loan Money Reduced Amount”) and thereafter the Individual Loan Money equal to the reduced Individual Loan Money (or, if the relevant Successive Lender has already been a Lender before the relevant assignment is made, the Individual Loan Money calculated by adding the amount equal to the relevant reduced Individual Loan Money to the Individual Loan Money of the relevant Lender as of the time before the assignment is made) shall apply to the Successive Lender.  

		
	(ii)
	The Successive Lender is a Qualified Assignee.

		
	(iii)
	If a partial assignment is made with respect to its status under this Agreement, the value of (i) the Individual Loan Money Reduced Amount and (ii) the Successive Lender’s Individual Loan Money after such reduction are equal to or more than 1 hundred million yen, unless the Assignor is a Lender who also acts as the Agent.

		
	(iv)
	No withholding tax or other taxes arise from any assignment pursuant to Clause 27.2, and there will be no increase in the amount of the Borrower’s and the Guarantors’ interest expense payable to the Successive Lender; except for any 

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assignment of status to the Lender’s foreign Subsidiary or Affiliate due to any revocation of the Lender’s lending business in Japan.
		
	27.3
	All expenses incurred from the assignment provided for in Clause 27.2 shall be borne by the Assigning Lender or the Successive Lender, as the case may be; provided, however, that the provision of Clause 7 shall apply with respect to any Increased Costs incurred in relation to the Successive Lender after the assignment.  The Assigning Lender or the Successive Lender shall pay to the Agent, by the actual date of such assignment, the amount of 500,000 yen per Successive Lender, together with applicable consumption tax, as consideration for administrative duties performed in connection with the assignment.

		
	28.
	ASSIGNMENT AFTER MAKING OF LOAN

		
	28.1
	Unless otherwise specified in this Agreement, the Lender may assign its Loan Receivables subject to the satisfaction of all requirements described in each item below.

		
	(i)
	The Assignee agrees that the Loan Receivables it has succeeded to will be bound upon by each provision in relation to the Loan Receivables under this Agreement.

		
	(ii)
	The Assignee is a Qualified Assignee.

		
	(iii)
	If the assignment is made in divided portions of the Loan Receivables, the value of each Loan Receivables after such division is equal to or more than [1] hundred million yen, unless the Assignor is a Lender who also acts as the Agent.

		
	(iv)
	No withholding tax or other taxes arise from the assignment, and there will be no increase in the amount of the Borrower’s and the Guarantors’ interest expense payable to the Assignee; except for any assignment to the Lender’s foreign Subsidiary or Affiliate due to any revocation of the Lender’s lending business in Japan.

		
	28.2
	If intending to assign the Loan Receivables, the Assignor and the Assignee shall perfect the assignment against the third parties and the obligor as of the date of the assignment.  In this case, the Assignor and Assignee shall, under their joint name, immediately notify the Agent of the fact that such assignment was made.  If the assignment of the Loan Receivables pursuant to Clause 28.1 is made, any and all rights that are a part of the Assignor’s rights under this Agreement and relating to the Loan Receivables to be assigned will be transferred to the Assignee, and any and all obligations that are a part of the Assignor’s obligations under this Agreement and relating to the Loan Receivables to be assigned are borne by the Assignee.  The Borrower and the Guarantors acknowledge in advance the transfer of the rights to the Assignee and the burden of the obligations by the Assignee.  In applying provisions of this Agreement in relation to the Loan Receivables, if all of the Loan Receivables are assigned, the Assignee is treated as a Lender and if the Loan Receivables are partly assigned, both the Assignor and the Assignee are treated as Lenders under this Agreement.

		
	28.3
	All expenses incurred from the assignment provided for in Clause 28.1 shall be borne by the Assignor or the Assignee, as the case may be.  The provision of Clause 7 shall apply with respect to any Increased Costs incurred after the assignment.  The Assignor or the Assignee shall pay to the Agent, by the actual date of such assignment, the amount of 500,000 yen per Assignee, together with applicable consumption tax, as consideration for administrative duties performed in connection with the assignment.

		
	29.
	COLLECTION FROM THIRD PARTY

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	29.1
	No repayment of the Borrower’s debt obligations under the Loan-Related Agreements by any party other than the Borrower and the Guarantors are allowed, unless it obtains prior written consent from the Agent and All Lenders.

		
	29.2
	The Borrower shall not, on or after the execution date of the Loan-Related Agreements, consign any third party to guarantee (including any guarantee by property, but excluding any pursuant to the Guarantee Agreements) the Borrower’s performance of its debt obligations under the Loan-Related Agreements, nor shall the Borrower make any third party assume its debt obligations under the Loan-Related Agreements or performance thereof, unless it obtains prior written consent from the Agent and All Lenders.

		
	29.3
	If a Lender enters into a guarantee without consignment to the Guarantors by the Borrower (including any property guarantee) or a debt assumption with any third party with respect to the Borrower’s obligations under the Loan-Related Agreements, the Lender shall have satisfied all of the requirements specified in each item described below.  In this case, if the Lender receives any repayment from the third party pursuant to such guarantee or debt assumption, no arrangement among the Lenders pursuant to the assignment of receivables in Clause 22.1 shall be made.

		
	(i)
	The third party shall have the same obligations as a Lender has against the Agent, other Lenders, the Borrower, and the Guarantors under the Loan-Related Agreements with respect to any exercise of its right for recourse and the contractual rights hereunder arising as a result of the performance of its Guarantee Obligation.

		
	(ii)
	The third party shall be bound upon by each provision of the Loan-Related Agreements.

		
	(iii)
	The third party is a Qualified Assignee and is not a Subsidiary or an Affiliate of the Borrower or the Guarantors, and the Borrower and the Guarantors are not a Subsidiary or an Affiliate of such third party.

		
	(iv)
	The value of the Loan Receivables that the third party obtains by subrogation is equal to or more than 1 hundred million yen.

		
	(v)
	There will be no increase in the amount of the Borrower’s or the Guarantors’ interest expense payable to the third party, and no withholding tax or other taxes arise from any such obtainment by subrogation. 

In the case of any obtainment by subrogation of the Loan Receivables by the third party pursuant to the provisions of Item (i) above, such obtainment by subrogation shall be considered the assignment of the Loan Receivables pursuant to Clause 28, and the provisions of Clauses 28.3 shall apply.

30.    GENERAL PROVISIONS
		
	30.1
	Confidentiality Obligations

Except as provided below, the parties to this Agreement agrees that it will not disclose, or use for the purposes other than those of the Loan-Related Agreements and the credit review or credit management without the prior written consent of the counterparty, any confidential information provided by or on behalf of the Borrower or any Guarantor in connection with the Loan-Related Agreements.  The Borrower and the Guarantors hereby consent to the disclosure of information provided for in each item below in advance:

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	(i)
	If the notice of refusal to make an Individual Loan has been given pursuant to the provisions of Clause 6.1, or if any of the events described in the items of Clause 20.1 or 20.2 have occurred, or if the clarification of the intention of the Majority Lenders has been required pursuant to the provisions of Clause 25, the Agent and a Lender may disclose any information with regard to the Borrower or the Guarantors or the transaction with the Borrower or the Guarantors, which either party has obtained through the Loan-Related Agreements or an agreement other than the Loan-Related Agreements, to the extent reasonably required.

		
	(ii)
	Upon the assignment of status pursuant to this Agreement or the assignment of Loan Receivables or execution of a guarantee without consignment by the Borrower (including any property guarantee) or a debt assumption with respect to the obligations that the Borrower assumes under this Agreement, a Lender may disclose any information with regard to  the Loan-Related Agreements to the Assignee (including the Successive Lender provided for in the provisions of Clause 27.2), a guarantor, or a person who assumes the obligations or a person who considers acquiring, guaranteeing, or assuming obligations (including an intermediary of such transaction), on the condition that those agree to be bound by the confidentiality obligations.  The information with regard to the Loan-Related Agreements in this item shall mean any information regarding the Borrower’s and the Guarantors’ credit that has been obtained in connection with the Loan-Related Agreements, any information regarding the contents of the Loan-Related Agreements and other information incidental thereto, and any information regarding the contents of the Loan Receivables subject to the transaction and other information incidental thereto, and shall not include any information regarding the Borrower’s or the Guarantors’ credit that has been obtained in connection with any agreement other than the Loan-Related Agreements.

		
	(iii)
	The Lender may disclose information relating to the Loan-Related Agreements, to the extent reasonably necessary, upon an order, direction, request, or the like made pursuant to applicable laws or by administrative agencies, judicial agencies or other relevant authorities in Japan and foreign countries, central banks, or self-regulatory agencies, or to an attorney, judicial scrivener, certified public accountant, accounting firm, tax accountant, rating agency, or any other expert who needs to receive the disclosure of the confidential information in relation to his/her works.  The Lender may also disclose the information relating to the Loan-Related Agreements to its Parent Company, Subsidiary, and Affiliate to the extent necessary and appropriate for internal control purposes.

		
	30.2
	Risk Bearing; Exemption, Compensation, and Indemnification

		
	(i)
	If any documents furnished by the Borrower and the Guarantors to the Agent or each Lender have been lost, destroyed, or damaged for any unavoidable reasons such as incidents or natural disasters, the Borrower and the Guarantors shall, upon consultation with the Agent, perform its obligations under the Loan-Related Agreements based on the records, such as books and vouchers, of the Lender or the Agent.  The Borrower and the Guarantors shall, upon request of the Agent or a Lender through the Agent, forthwith prepare substitute documents and furnish them to the Agent or the Lender through the Agent.

		
	(ii)
	If each Lender or the Agent performs transactions after comparing, with due care, the seal impression of the representative and agent of the Borrower or the Guarantors 

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to be used for the transactions in relation to the Loan-Related Agreements with the seal impression submitted by the seal submitted by the Borrower and the Guarantors in advance, the Borrower and the Guarantors shall bear any Loss incurred as a result of an event such as forgery, alteration, or theft of seal.
		
	(iii)
	Even if the Borrower or the Guarantors incur damage as a result of the Lender or the Agent taking any actions permitted under the Loan-Related Agreements (those acts include deciding not to make the Individual Loan, providing the Borrower or the Guarantors with a notice in accordance with Clause 20.2, and disclosing information in accordance with of Clause 30.1) due to the fact that the Borrower or the Guarantors violate the Loan-Related Agreements or that any of the representations and warranties made pursuant to the Loan-Related Agreements is not true (including the fact that any of the matters described in Item (xvi) of Clause 18 is not true or that the Borrower or the Guarantors violate Items (v) or (vi) of Clause 19.8; the “Borrower’s Breach of Obligations etc.”), the Borrower and the Guarantors will not make any claim against the Lender or the Agent.  The Borrower or the Guarantors shall bear any Loss arising with respect to a Lender or the Agent as a result of the Borrower’s Breach of Obligations etc. or as a result of a Lender not performing indemnity pursuant to the provisions of Clause 23.4.

		
	30.3
	Severability

Should any provision which constitutes a part of this Agreement be held null, illegal, or unenforceable, validity, legality and enforceability of all other provisions shall in no way be prejudiced or affected.
		
	30.4
	Exceptions to the Application of the Bank Transactions Agreement

The Agreement on Bank Transactions and the Agreement on Financial Transactions separately submitted by the Borrower or the Guarantors to a Lender or separately made and entered into by and between the Borrower or the Guarantors and a Lender shall not apply to the Loan-Related Agreements and the transactions contemplated in the Loan-Related Agreements.
		
	30.5
	Notices

		
	(i)
	Any notice under this Agreement shall be made in writing expressly stating that it is made for the purpose of this Agreement, and given by any of the methods described in (a) to (d) below to the address of the receiving party.  Each party to this Agreement may change its address by giving notice thereof to the Agent.

		
	(a)
	Personal delivery

		
	(b)
	Registered mail or courier service

		
	(c)
	Transmission by facsimile (in this case, upon request of the other party, the original copy of notice must be delivered later to the recipient by either of the methods described in (a) and (b) above)

		
	(ii)
	The notice pursuant to the preceding item shall be deemed to have been delivered at the time, in the case of transmission by facsimile, when receipt of facsimile is confirmed, and in the case of any other methods, when actually received.

-51-

		
	30.6
	Changes in Notified Matters 

		
	(i)
	In the case of changes in the matters of which a Lender, the Borrower, or the Guarantors notified to the Agent, such as the trade name, representative, agent, signature, seal, or address, the Lender, the Borrower, and the Guarantors shall immediately notify the Agent of such changes in writing.

		
	(ii)
	If notice given under this Agreement is delayed or not delivered as a result of the failure to notify as described in the preceding item, such notice shall be deemed to have arrived at the time when it should have normally arrived.

		
	30.7
	Funds Transfer

		
	(i)
	Settlement of funds between the Agent and the Lender is to be made in principle through the Japanese Banks’ Data Communication System, and if a Lender wishes settlement to be made through the Bank of Japan Financial Network System, that Lender shall consult with the Agent in advance.  However, if a Lender is not a member of the Japanese Banks’ Data Communication System, the Lender shall settle funds through the bank account designated by the Lender held in the Lender’s name in a bank that is a member of the Japanese Banks’ Data Communication System.

		
	(ii)
	Charges incurred in connection with payment made by a party to another party under the Loan-Related Agreements are borne by the party who makes the payment.

		
	30.8
	Calculation

Unless otherwise expressly provided for with respect to any calculation under this Agreement, all calculation shall be inclusive of first day and exclusive of last day, on a per diem basis assuming that there are 365days per year, wherein the division shall be done at the end of the calculation, and fractions less than one yen shall be rounded down (or in a manner the Agent considers appropriate, if the Agent considers it especially necessary).
		
	30.9
	Preparation of the Notarized Deed

The Borrower and the Guarantors shall, at any time upon the reasonable request of the Agent or a Majority Lender, take the necessary procedures to entrust a notary public to execute a notarized deed in which the Borrower or the Guarantors, as the case may be, acknowledges its indebtedness under the Loan-Related Agreements and agrees to compulsory execution with regard thereto.
		
	30.10
	Survival of Rights

Any failure or delay by the Agent or the Lender in exercising all or part of their rights under the Loan-Related Agreements will not be interpreted as a waiver of those rights by the Agent or the Lender or as a release or reduction of the obligations of the Borrower, and will have no effect on those rights of the Agent or the Lender.
		
	30.11
	Governing Law and Jurisdiction

This Agreement shall be governed by the laws of Japan, and the Tokyo District Court shall have the exclusive jurisdiction over any disputes arising in connection with this Agreement.
		
	30.12
	Language

-52-

This Agreement shall be prepared in the Japanese language and the Japanese language version shall be deemed the original copy. 
		
	30.13
	Consultation

Any matters not provided for in this Agreement, or in the case of any doubt among the parties with respect to the interpretation, the Borrower and the Lenders shall consult through the Agent and shall determine the response therefor.

-53-

IN WITNESS WHEREOF, the representatives or their agent of the Borrower, each Lender, and the Agent have caused this Agreement to be signed and sealed in one original copy, and the Agent shall retain the same.  The Borrower and each Lender will receive a copy of the original from the Agent. 
	
			
	Date: 
	October 29, 2018
	Borrower: 

	 
	 
	TOKIN CORPORATION

	 
	 
	 

	 
	By:
	/s/ Shigenori Oyama

	 
	Name:
	Shigenori Oyama

	 
	Title:
	President

	 
	 
	 

-54-

	
			
	 
	 
	Lender and Agent:

	 
	 
	Sumitomo Mitsui Trust Bank Limited

	 
	 
	 

	 
	By:
	/s/ 

	 
	Name:
	 

	 
	Title:
	 

	 
	 
	 

                                     Seal

-55-

	
			
	 
	 
	Lender:

	 
	 
	Development Bank of Japan Inc.

	 
	 
	 

	 
	By:
	/s/ 

	 
	Name:
	 

	 
	Title:
	 

	 
	 
	 

                                      Seal

-56-

	
			
	 
	 
	Lender:

	 
	 
	The Tokyo Star Bank, Limited

	 
	 
	 

	 
	By:
	/s/ 

	 
	Name:
	 

	 
	Title:
	 

	 
	 
	 

                                      Seal

-57-

	
			
	 
	 
	Lender:

	 
	 
	Bangkok Bank Public Company Limited

	 
	 
	 

	 
	By:
	/s/ 

	 
	Name:
	 

	 
	Title:
	 

	 
	 
	 

                                     Seal

-58-

	
			
	 
	 
	Lender:

	 
	 
	Shinsei Bank, Limited

	 
	 
	 

	 
	By:
	/s/ 

	 
	Name:
	 

	 
	Title:
	 

	 
	 
	 

                                     Seal

-59-

	
			
	 
	 
	Lender:

	 
	 
	NEC Capital Solutions Limited

	 
	 
	 

	 
	By:
	/s/ 

	 
	Name:
	 

	 
	Title:
	 

	 
	 
	 

                                     Seal

-60-

	
			
	 
	 
	Lender:

	 
	 
	MUFG Bank, Ltd.

	 
	 
	 

	 
	By:
	/s/ 

	 
	Name:
	 

	 
	Title:
	 

	 
	 
	 

                                     Seal

-61-

Appendix 1

List of Parties

1.    Borrower

	
		
	Borrower and department in charge
	Address

	TOKIN Corporation
Accounting and Finance Department
	1-1, Asahi-cho 7-chome, Shiroishi-shi, Miyagi
Tel: +81-224-24-3941
Fax: +81-224-24-3948

2.    Agent

	
		
	Agent and department in charge
	Address

	Sumitomo Mitsui Trust Bank Limited 
Finance Product Solution Department

	1-4-1, Marunouchi, Chiyoda-ku, Tokyo
Sumitomo Mitsui Trust Bank Limited Head Office Building
Tel: +81-3-6256-5487
Fax: +81-3-3286-4607

3.    Lender

-62-

	
			
	Lenders and departments in charge
	Individual Loan Money
	Address

	Sumitomo Mitsui Trust Bank Limited 
Corporate Business Department IV, Head Office

	Term Loan A: 4,125,000,000 yen
Term Loan B: 4,125,000,000 yen
	1-4-1, Marunouchi, Chiyoda-ku, Tokyo
Sumitomo Mitsui Trust Bank Limited Head Office Building
Tel: +81-3-6256-5282
Fax: +81-3-3286-4644

	Development Bank of Japan Inc. 
Business Department I (Gyoumu Dai-ichi ka), Tohoku Branch
	Term Loan A: 4,125,000,000 yen
Term Loan B: 4,125,000,000 yen
	1-6-35, Chuo, Aoba-ku, Sendai-shi, Miyagi
Tel: +81-22-227-8150
Fax: +81-22-261-6383

	The Tokyo Star Bank, Limited 
Corporate and Acquisition Finance Department

	Term Loan A: 3,250,000,000 yen
Term Loan B: 3,250,000,000 yen
	2-3-5, Akasaka, Minato-ku, Tokyo
Akasaka Star Gate Plaza
Tel: +81-3-3224-3766
Fax: +81-3-3224-9290

	Bangkok Bank Public Company Limited 
Marketing Department
	Term Loan A: 2,500,000,000 yen
Term Loan B: 2,500,000,000 yen
	2-8-10, Nishi-shimbashi, Minato-ku, Tokyo
Bangkok Bank Building
Tel: +81-3-3503-3335
Fax: +81-3-3502-6420

	Shinsei Bank, Limited
Sendai Branch
	Term Loan A: 1,500,000,000 yen
Term Loan B: 1,500,000,000 yen
	3-11-12, Ichiban-cho, Aoba-ku, Sendai-shi, Miyagi
Tel: +81-22-225-3109
Fax: +81-3-4560-2768

	NEC Capital Solutions Limited
Corporate Department II, Group I (Jigyo-hojin Dai-ni Bu Dai-ichi Group)
	Term Loan A: 500,000,000 yen
Term Loan B: 500,000,000 yen
	2-15-3, Minami, Minato-ku, Tokyo
Shinagawa Intercity, Building C
Tel: +81-3-6720-8391
Fax: +81-3-6720-8475

	MUFG Bank, Ltd.
Corporate Department I, Sendai Branch
	Term Loan A: 500,000,000 yen
Term Loan B: 500,000,000 yen
	2-2-1, Chuo, Aoba-ku, Sendai-shi, Miyagi
Tel: +81-22-222-7130
Fax: +81-22-225-0885

-63-

Appendix 2

Repayment Schedule

	
		
	Principal Due Date
	Principal Due Amount

	March 29, 2019
	1,375,000,000yen

	September 30, 2019
	1,375,000,000 yen

	March 31, 2020
	1,375,000,000 yen

	September 30, 2020
	1,375,000,000 yen

	March 31, 2021
	1,375,000,000 yen

	September 30, 2021
	1,375,000,000 yen

	March 31, 2022
	1,375,000,000 yen

	September 30, 2022
	1,375,000,000 yen

	March 31, 2023
	1,375,000,000 yen

	September 29, 2023
	1,375,000,000 yen

	March 29, 2024
	1,375,000,000 yen

	September 30, 2024
	1,375,000,000 yen

-64-

Attachment 1
Permitted Commitment Lines

	
		
	Type of credit lines
	Permissible amount

	Borrowing, letter of guarantee and overdraft
	350,000,000 yen

	620,000,000 THB

	Currency exchange contract
	20,000,000 USD

	200,000,000 THB

	Settlement limit
	30,000,000THB

Where a credit line is denominated in currency other than indicated above, the permissible amount above shall apply based on the exchange rate separately notified by the Agent to the Borrower as the exchange rate as of the date of this Agreement.

Attachment 2
Form of Compliance Certificate

[mm/dd/yy]

Lender:
To: Sumitomo Mitsui Trust Bank Limited 
To: Development Bank of Japan Inc.
To: The Tokyo Star Bank, Limited 
To: Bangkok Bank Public Company Limited
To: Shinsei Bank, Limited
To: NEC Capital Solutions Limited
To: MUFG Bank, Ltd.

Agent:
To: Sumitomo Mitsui Trust Bank Limited

Borrower:
Address: 7-1, Kouriyama 6-chome, Taihaku-ku, Sendai-shi, Miyagi
Name: TOKIN Corporation

[Position], [Name]

                                      
[Registered seal]

Compliance Certificate

We hereby certify as follows pursuant to the provision of Clause 19.1 (2)(d) of the Term Loan Agreement (as amended; the “Agreement”) as of October, 29, 2018 executed with us as the Borrower, Sumitomo Mitsui Trust Bank Limited, Development Bank of Japan Inc., The Tokyo Star Bank, Limited, Bangkok Bank Public Company Limited, Shinsei Bank, Limited, NEC Capital Solutions Limited and MUFG Bank, Ltd. as the Lenders, and Sumitomo Mitsui Trust Bank Limited as the Lender and the Agent. Except in cases where defined otherwise herein, the terms used herein have the same meanings ascribed to them under the Agreement.   
 

We hereby report that we [comply with all/do not comply with [  ] of] covenants specified in the Agreement.

Attachment 3-1
Form of Financial Covenant Compliance Report

[mm/dd/yy]

Lender:
To: Sumitomo Mitsui Trust Bank Limited 
To: Development Bank of Japan Inc.
To: The Tokyo Star Bank, Limited 
To: Bangkok Bank Public Company Limited
To: Shinsei Bank, Limited
To: NEC Capital Solutions Limited
To: MUFG Bank, Ltd.

Agent:
To: Sumitomo Mitsui Trust Bank Limited

Borrower:
Address: 7-1, Kouriyama 6-Chome, Taihaku-ku, Sendai-shi, Miyagi
Name: TOKIN Corporation
[Position], [Name]

                                      
[Registered seal]

Financial Covenant Compliance Report

We hereby report as follows with respect to financial covenant compliance pursuant to the provision of Clause 19.1 (2)(e) of the Term Loan Agreement (as amended; the “Agreement”) as of October 29, 2018 executed with us as the Borrower, Sumitomo Mitsui Trust Bank Limited, Development Bank of Japan Inc., The Tokyo Star Bank, Limited, Bangkok Bank Public Company Limited, Shinsei Bank, Limited, NEC Capital Solutions Limited and MUFG Bank, Ltd. as the Lenders, and Sumitomo Mitsui Trust Bank Limited as the Lender and the Agent. Except in cases where defined otherwise herein, the terms used herein have the same meanings ascribed to them under the Agreement.

We hereby report that we [comply with all/do not comply with [  ] of] the Financial Covenants specified in Clause 19.2 of the Agreement.
(1)    Covenants under Clause 19.2(1) of the Agreement

	
		
	 
	As of the end of the fiscal year ended on [mm/dd/yyyy]

	Total amount of net assets on the Borrower’s consolidated balance sheet (A)
	[   ] yen

	Total amount of net assets as of the end of the most recent calculation period (B)
	[   ] yen

	Ratio of A against B
	[   ] %

(2)    Covenants under Clause 19.2(2) of the Agreement

	
			
	 
	As of the end of the fiscal year ended on [mm/dd/yyyy]
	As of the end of the fiscal year ended on [mm/dd/yyyy]

	Borrower’s consolidated operating profit
	●●円
	●●円

In addition, we hereby report that the Borrower’s consolidated EBITDA and gross assets and the EBITDA and gross assets of the Borrower Group Companies (other than the Borrower) which are calculated on the same basis as the Borrower are as follows.  Also, we hereby report that the capacity to manufacture and the qualification for the Borrower Material Subsidiary regarding the Borrower’s subsidiaries are as follows. 

(x)    Consolidated EBITDA and gross assets of the Borrower

	
		
	Consolidated EBITDA
	●● yen

	Consolidated gross assets
	●● yen

(y)    Non-consolidated EBITDA and gross assets of each Borrower Group Company

	
					
	Company’s name
	EBITDA
	Gross assets
	Capacity to manufacture
	Qualification for Borrower Material Subsidiary

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

End

Attachment 3-2

Form of Borrower Parent Company’s Financial Related Event Report

[mm/dd/yy]

Lender:
To: Sumitomo Mitsui Trust Bank Limited 
To: Development Bank of Japan Inc.
To: The Tokyo Star Bank, Limited 
To: Bangkok Bank Public Company Limited
To: Shinsei Bank, Limited
To: NEC Capital Solutions Limited
To: MUFG Bank, Ltd.

Agent:
To: Sumitomo Mitsui Trust Bank Limited
Borrower:
Address: 7-1, Kouriyama 6-Chome, Taihaku-ku, Sendai-shi, Miyagi
Name: TOKIN Corporation
[Position], [Name]

                                      
[Registered seal]

Borrower Parent Company’s Financial Related Event Report

We hereby report as follows with respect to the financial covenant compliance pursuant to the provision of Clause 19.1 (2)(f) of the Term Loan Agreement (as amended; the “Agreement”) as of October 29, 2018 executed with us as the Borrower, Sumitomo Mitsui Trust Bank Limited, Development Bank of Japan Inc., The Tokyo Star Bank, Limited, Bangkok Bank Public Company Limited, Shinsei Bank, Limited, NEC Capital Solutions Limited and MUFG Bank, Ltd. as the Lenders, and Sumitomo Mitsui Trust Bank Limited as the Lender and the Agent. Except in cases where defined otherwise herein, the terms used herein have the same meanings ascribed to them in the Agreement.   

We hereby report that we [are not in breach any of/are in breach of [  ] of] the events of Clause 20.2(xi) of the Agreement as follows.

(1)    Item provided for in Clause 20.2(xi)(a) of the Agreement in all cases, notwithstanding the items below, calculated in accordance with the provisions of Attachment 10
.  

	
		
	      Long-term debt
( + )   Current portion of long-term debt
( + )   Short-term debt
( - )    Cash and cash equivalents

Balance of Debt (A)
	U.S. $●●
U.S. $●●

U.S. $●●
U.S. $●●

U.S. $●●

	      Net Income (loss)
( + )  Income tax expense
( + )  Interest expense
( + )  Depreciation and amortization
( + )  Equity (income) loss from equity method of reporting
( + )   Acquisition (gain) loss
( + )   (Gain) loss on write down and disposal of long-lived assets
( + )   ERP integration costs/IT transition costs
( + )   Stock-based compensation
( + )   Restructuring charges
( + )  Legal expenses/fines related to antitrust class actions
( + )  Net foreign exchange (gain) loss
( + )   Plant start-up costs
( + )  Plant shut-down costs
( + )   (Gain) loss on early extinguishment of debt

EBITDA (Borrower Parent Company) (B)
	U.S. $●●

U.S. $●●
U.S. $●●
U.S. $●●
U.S. $●●

U.S. $●●
U.S. $●●

U.S. $●●

U.S. $●●
U.S. $●●
U.S. $●●

U.S. $●●

U.S. $●●
U.S. $●●
U.S. $●●

U.S. $●●

	Net Leverage Ratio (A)/(B)
	●.●●

* The actual category of add-backs may vary from period to period.

(2)    Item provided for in Clause 20.2(xi)(b) of the Agreement

	
			
	 
	As of the end of the fiscal year ended on [mm/dd/yyyy]
	As of the end of the fiscal year ended on [mm/dd/yyyy]

	Consolidated Operating Profit of the Borrower Parent Company
	U.S. $●●
	U.S. $●●

* The actual category of add-backs may vary from period to period.

(3)    Item provided for in Clause 20.2(xi)(c) of the Agreement

	
		
	 
	As of the end of the fiscal year ended on [mm/dd/yyyy]

	Amount of Consolidated Net Assets of the Borrower Parent Company (A)
	U.S. $●●

	Total amount of Consolidated Net Assets as of the end of the most recent calculation period (B)
	U.S. $●●

	Ratio of A against B
	●● %

* The actual category of add-backs may vary from period to period.

Attachment 4

Qualified Assignee

		
	1.
	A qualified institutional investor as set forth in Article 2, Paragraph 3 of the Financial Instruments and Exchange Act (1948, Law No. 25; as amended).

		
	2.
	A kabushiki kaisha, tokurei yugen kaisha, godo kaisha or foreign corporation established with contributions from a qualified institutional investor, that falls under the category of a subsidiary as set forth in Article 8, Paragraph 3 of the Rules on Terminology, Forms and Preparation Methods of Financial Statements or an affiliate as set forth in Article 8, Paragraph 5 of such rules.

		
	3.
	A corporation that lawfully operates a banking, securities, insurance or moneylending business in a foreign country, a kabushiki kaisha, tokurei yugen kaisha, godo kaisha or foreign corporation established with contributions from such a corporation, that falls under the category of a subsidiary or affiliate thereto.

Attachment 5-1

Form of Guarantee Letter

[mm/dd/yy]

Lender:
To: Sumitomo Mitsui Trust Bank Limited 
To: Development Bank of Japan Inc.
To: The Tokyo Star Bank, Limited 
To: Bangkok Bank Public Company Limited
To: Shinsei Bank, Limited
To: NEC Capital Solutions Limited
To: MUFG Bank, Ltd.

Agent:
To: Sumitomo Mitsui Trust Bank Limited

Guarantor:
398 Shiboguchi, Takatsu-ku, Kawasaki-city, Kanagawa
Kabushiki Kaisha TOKIN EMC Engineering
Susumu Matsuoka, Representative Director

                                      
[Registered seal]

Guarantee Letter

In accordance with Article 14 of that certain Term Loan Agreement as of October 29, 2018 among Tokin Corporation as the Borrower, Sumitomo Mitsui Trust Bank Limited, Development Bank of Japan Inc., The Tokyo Star Bank, Limited, Bangkok Bank Public Company Limited, Shinsei Bank, Limited, NEC Capital Solutions Limited and MUFG Bank, Ltd. as the Lenders, and Sumitomo Mitsui Trust Bank Limited as Lender and Agent (as amended; the “Loan Agreement”), the Company will guarantee all current and future obligations that the Borrower may owe to the Lenders (if a person has succeeded to the status and rights and duties of a Lender pursuant to the Loan Agreement, including such person) pursuant to the Related Agreements (“Guarantee Obligation”), and shall be liable for paying the full amounts on the payment deadlines; the Company shall comply with the terms and conditions of the Loan Agreement and the following terms and conditions. Terms defined in the Loan Agreement shall have the same meaning when used herein, unless otherwise stipulated. The Company confirms that it understands the content of the Loan Agreement.

		
	1.
	The Company agrees without object to being bound by the duties of Guarantors set forth in Clause 14 of the Loan Agreement and the Guarantors compliance matters set forth in Clause 19, and any other matters set forth as the duties of the Guarantors under the Loan Agreement, and will perform all such duties in good faith.

		
	2.
	The Company confirms that when a Lender or the Agent makes a demand for performance of the Guarantee Obligation, the Company will perform that obligation in accordance with 

Clause 14 of the Loan Agreement and other provisions of the Loan Agreement and the Security Agreements.

		
	3.
	In regards to the matters relating to the Guarantors and the Company set forth in Clause 18 of the Loan Agreement, the Company represents and warrants in accordance with such Clause.

		
	4.
	The Company agrees that the duties of the Company pursuant to this Guarantee Letter will validly survive regardless of the commencement of Insolvency Proceedings relating to the Borrower.

		
	5.
	If the provisions of the Loan Agreement are amended or changed in accordance with Clause 26 or other provision of the Loan Agreement or are amended and changed in accordance with other provisions, the Company agrees that it will be bound by, and owe duties under, such amended or changed agreement.

		
	6.
	The Guarantee Obligation shall survive until all current and future obligations that the Borrower owes to the Lenders pursuant to the Loan Agreement are repaid in full and All Lenders’ Lending Obligation has extinguished.

		
	7.
	The following is the Company’s address for notice of Appendix 1 of the Loan Agreement. 

	
			
	Guarantor
	Address
	Tel/Fax

	Kabushiki Kaisha TOKIN EMC Engineering
	Address༚〒 213-0023
398 Shiboguchi, Takatsu-ku, Kawasaki-city, Kanagawa
	[Tel]
+81-44-751-5331
[Fax]
+81-44-751-5330

End

Attachment 5-2

Form of Guarantee Letter

		
	From:
	KEMET Corporation (the “Guarantor”)

		
	To:
	Sumitomo Mitsui Trust Bank, Limited

Development Bank of Japan Inc.
                 The Tokyo Star Bank, Limited
                 Bangkok Bank Public Company Limited
                 Shinsei Bank, Limited
                 NEC Capital Solutions Limited
                 MUFG Bank, Ltd., as the Lenders
                 Sumitomo Mitsui Trust Bank, Limited, as the Agent
    
 as the Lenders
Sumitomo Mitsui Trust Bank, Limited, as the Agent
    
		
	Dated:
	[November 7, 2018]

Dear Sirs:

Joint Guarantee Agreement (USA (KEMET Corporation))

This Joint Guarantee Agreement (USA (KEMET Corporation)) (this “Agreement”) is executed as of [November 7, 2018], by the Guarantor for the benefit of the Lenders (kashitsuke nin) and the Agent (e-jento), each as defined in the Term Loan Agreement (Term Loan keiyaku) dated October 29, 2018 entered into among TOKIN Corporation. as the Borrower, Sumitomo Mitsui Trust Bank, Limited, Development Bank of Japan Inc., The Tokyo Star Bank, Limited, Bangkok Bank Public Company Limited, Shinsei Bank, Limited, NEC Capital Solutions Limited and MUFG Bank, Ltd. (the “Lenders”) as the Lenders and Sumitomo Mitsui Trust Bank Limited (the “Agent”) as the Agent (as modified, amended, restated and/or supplemented from time to time, the “Loan Agreement”).  Unless otherwise defined in this Agreement, all capitalized terms and expressions shall have the same meanings ascribed to them in the Loan Agreement. 

		
	1.
	The Guarantor hereby confirms that it has fully understood the contents of the Loan Agreement.

		
	2.
	The Guarantor hereby unconditionally and absolutely, continually and irrevocably guarantees, jointly and severally with the Borrower, any and all of the present and future obligations and liabilities that the Borrower may incur against the Lenders and the Agent pursuant to the Loan Relevant Agreement (hon kashitsuke kanren keiyaku), including, without limitation, the principal, interest, break funding costs, delinquency charges and fees of the loans under the Loan Agreement (collectively, the “Borrower’s Liabilities”).  Performance of the Borrower’s Liabilities by the Guarantor shall be made on or before 

the due date of the Borrower’s Liabilities specified in the Loan Agreement and in accordance with the Loan Agreement and this Agreement.  Notwithstanding anything in this Agreement to the contrary, the obligations of the Guarantor hereunder shall be limited to the maximum amount as will result in the obligations of the Guarantor under this Agreement not constituting a fraudulent transfer or fraudulent conveyance for purposes of any bankruptcy law or other debtor-relief law applicable to this Agreement and the obligations of the Guarantor hereunder.

		
	3.
	The Guarantor hereby acknowledges and agrees without any objection that the Guarantor shall be bound by and shall perform any and all obligations, including, without limitation, the Guarantor’s obligations stipulated in Article 14 of the Loan Agreement and any other obligations, imposed upon the Guarantor under the Loan Agreement. 

		
	4.
	The Guarantor hereby acknowledges and agrees that the request to perform the guarantee obligations hereunder by the Lenders and the Agent shall be made pursuant to the Loan Agreement (including, without limitation, Article 14 of the Loan Agreement). 

		
	5.
	The Guarantor hereby represents and warrants to each of the Lenders and the Agent that on the date hereof: 

		
	(i)
	it has the full legal capacity and power to enter into this Agreement and to exercise its rights and perform its obligations hereunder;

		
	(ii)
	it has taken all necessary corporate action required by Law and its constitutional documents or any other internal rules to authorize its entry into this Agreement and exercise of its rights and performance of its obligations hereunder;

		
	(iii)
	the execution and delivery of this Agreement and the performance of obligations by the Guarantor hereunder are within the corporate (or other organizational) powers of the Guarantor and do not conflict with:

		
	(x) 
	its constitutional documents or any laws binding on it or its assets; or 

		
	(y) 
	any material contract or deed binding on it or any of its assets, where such conflict would have a material adverse effect on the continuation of its business;

		
	(iv)
	all governmental permits, licenses and other legal procedures required to be obtained by the Guarantor for it to enter into this Agreement and perform the obligations hereunder have been duly and properly obtained and completed, except where the failure to obtain the same would not reasonably be expected to have a material adverse effect on the continuation of its business or the performance of its obligations under this Agreement; 

		
	(v)
	the obligations to be assumed by the Guarantor in this Agreement are not, by their terms, expressly subordinated to any other unsecured indebtedness of the Guarantor; and

		
	(vi)
	when executed, this Agreement constitutes legal, valid and binding obligations of the Guarantor and is enforceable against the Guarantor, subject to applicable bankruptcy, reorganization, insolvency, moratorium or similar laws affecting creditors’ rights generally and by equitable principles (regardless of whether enforcement is sought in equity or at law).

		
	6.
	The Guarantor hereby agrees that, to the maximum extent permitted by applicable law, the obligations of the Guarantor herein shall not in any way be reduced, discharged or otherwise adversely affected by: 

		
	(a)
	any intermediate payment, settlement of account or discharge in whole or in part of the Borrower’s Liabilities;

		
	(b)
	any act or omission by the Lenders or any other person in taking up, perfecting or enforcing any security, indemnity, or guarantee from or against the Borrower or any other person;

		
	(c)
	any termination, amendment, variation, novation, replacement or supplement of or to any of the Borrower’s Liabilities, except for payment in full of the Borrower’s Liabilities;

		
	(d)
	any grant of time, indulgence, waiver or concession to the Borrower or any other person;

		
	(e)
	any invalidity, illegality, unenforceability, irregularity or frustration of any actual or purported obligation of, or security held from, the Borrower or any other person in connection with the Borrower’s Liabilities; or

		
	(f)
	any insolvency, bankruptcy, liquidation, administration, winding up, corporate rehabilitation, civil reorganization, any change in the constitution of the Borrower, or other similar proceedings of the Borrower or any other event.

		
	7.
	The Guarantor hereby agrees that, in the case where the Loan Agreement is amended in accordance with Article 26 and/or other provisions of the Loan Agreement, the Guarantor shall be bound by, and have obligations under, such amended Loan Agreement.

		
	8.
	The Guarantor hereby acknowledges and agrees that the Guarantor’s Liabilities and obligations hereunder shall continue and survive until all of the Borrower’s present and future obligations to the Lenders under the Loan Agreement have been paid in full and the Lenders’ lending obligations to the Borrower under the Loan Agreement have been terminated. 

		
	9.
	All of the Guarantor’s obligations under this Agreement for payment will be paid in lawful currency of Japan and in immediately available funds, regardless of any law, regulation or decree now or hereafter in effect that might in any manner affect the Borrower’s Liabilities, or the rights of any Lender or the Agent with respect thereto as against the Borrower, or cause or permit to be invoked any alteration in the time, amount or manner of payment by the Borrower of any or all of the Borrower’s Liabilities.  If any claim arising under or related to this Agreement is reduced to judgment denominated in a currency (the “Judgment Currency”) other than the currency in which the Borrower’s Liabilities are denominated or the currency payable hereunder (the “Obligations Currency”), the judgment shall be for the equivalent in the Judgment Currency of the amount of the claim denominated in the Obligations Currency included in the judgment, determined as of the date of judgment.  The equivalent of any Obligations Currency amount in any Judgment Currency shall be calculated at the spot rate for the purchase of the Obligations Currency with the Judgment Currency quoted by the Agent in the place of the Agent’s choice at or about 8:00 a.m. on the date for determination specified above.  The Guarantor shall indemnify the Agent and each Lender and hold the Agent and each Lender harmless from and against all loss or damage resulting from any change in exchange rates between the date any claim is reduced to judgment and the date of payment thereof by the Guarantor or any failure of the amount of any such judgment to be calculated as provided in this Section.

		
	10.
	The contact information of the Guarantor set forth in Schedule 1 attached to the Loan Agreement shall be as follows:

	
		
	Corporate Name
	KEMET Corporation

	Address & 
Contact Information
	KEMET Tower 
One East Broward Blvd., 2nd Floor
Fort Lauderdale, Florida 33301 USA 
Attention: R. James Assaf 
Telecopier No.: (954) 766-2817 
Email: JamieAssaf@kemet.com 

with a copy to: 

Jenner & Block LLP
353 N. Clark Street Chicago, IL 60654
Attention: H. Kurt von Moltke 
Telecopier No.: (312) 527-0484 
Email: KvonMoltke@jenner.com

		
	11.
	This Agreement shall be governed by, and construed in accordance with, the laws of Japan.  The Tokyo District Court shall be the court of non-exclusive jurisdiction for the first instance over any lawsuits regarding any rights or obligations arising from or under this Agreement.

		
	12.
	This Agreement shall be prepared in the English language, and the English language version shall be deemed to be the original.  Any translation for this Agreement shall be for the reference purpose only.

Yours faithfully
[Signature page follows.]

Joint Guarantee Agreement (USA (KEMET Corporation))

The Guarantor

KEMET Corporation

One East Broward Boulevard 
Suite 200
Fort Lauderdale, FL 33301

 

By: ______________________________________
Name: William M. Lowe, Jr.
Title: Executive Vice President and 
Chief Financial Officer

Attachment 5-3

Form of Guarantee Letter

This Guarantee Letter shall be in the form separately agreed by the Borrower and the Lenders.

Attachment 6
Real Estate

Attachment 7
Lawsuit, Arbitration, Administrative Procedure, etc.

Attachment 8
Existing Security Interests and Guarantees etc.

Attachment 9
Permitted ICL Balances

		
	1.
	TOKIN EMC Engineering Co., Ltd.

	
				
	No.
	Title of Agreement
	Term / Maturity date
	Balance

	1
	Agreement relating to Loans and Deposits
	September 14, 2019
	JPY 64,080,150

		
	2.
	TOKIN Europe GmbH

	
				
	No.
	Title of Agreement
	Term / Maturity date
	Balance

	1
	Individual Agreement
	April 11, 2019
	EUR 500,000.00

Attachment 10

Calculation Method for Consolidated Net Leverage Ratio, Consolidated Operating Profit and Consolidated Net Assets of Borrower Parent Company

Note: All amounts shall be as reported on the Borrower Parent Company audited financial statements which are submitted to the Agent and All Lenders pursuant to this Agreement by referring to the applicable entry from the face of the audited financial statements in US$ Any amounts not reflected on the face of the audited financial statements shall be as reported in the Borrower Parent Company public filings with the US SEC, or in the reports or releases issued by the Borrower Parent Company to its stockholders. All amounts will, to the extent applicable, be calculated in accordance with US GAAP as in effect on the date of the Loan Agreement, consistently applied. To the extent an item is a non-GAAP item or calculation, it shall be as reported by Borrower Parent Company as described in this Note. In all cases, the consolidated effect of the acquisition of treasury shares and payment of dividend by Borrower during the fiscal year ending March 31, 2018, shall be excluded from the calculations below for all determination periods.

"Consolidated Net Leverage Ratio" shall mean (i) Debt minus (ii) Cash and cash equivalents divided by (iii) EBITDA.

"Debt” shall mean the sum of (i) Long-term debt, (ii) Current portion of long-term debt, and (iii) Short-term debt. In determining the amount of the debt represented by the Loan Agreement, the outstanding actual balance shall be converted into US$ on the date of determination by reference to the actual exchange rate in effect on the date the Loan was first made, not the date of determination, as published in the Wall Street Journal, US edition.

"EBITDA" shall mean "Adjusted EBITDA" as reported in the Borrower Parent Company Annual Report on Form 10-K, and shall generally mean (i) Net Income (loss) plus (ii) Income tax expense, (iii) Interest expense, (iv) Depreciation and amortization, (v) Equity (income) loss from equity method of reporting, (vi) Acquisition (gain) loss, (vii) (Gain) loss on write down and disposal of long-lived assets, (viii) ERP integration costs/IT transition costs, (ix) Stock-based compensation, (x) Restructuring charges, (xi) Legal expenses/fines related to antitrust class actions, (xii) Net foreign exchange (gain) loss, (xiii) Plant start-up costs, (xiv) Plant shut-down costs, (xv) (Gain) loss on early extinguishment of debt. The actual category of add-backs may vary from period to period. 

"Consolidated Net Assets" shall mean Total stockholder’s equity (without regard to the exchange adjustment account) as reported in the Borrower Parent Company Annual Report on Form 10-K.

"Consolidated Operating Profit' shall mean "Adjusted Operating Income (Loss) as reported in the Borrower Parent Company Annual Report on Form 10-K, and shall generally mean (i)Operating Income (loss) (US GAAP) plus extraordinary items that were included in the calculation of Operating Income (loss) (US GAAP) such as (a) ERP Integration/IT transition costs, (b) Stock-based compensation expense, (c) Legal expense/fines related to antitrust class actions, (d) loss on write down and disposal of longlived assets, (e) Plant start-up costs and (f) restructuring charges. The actual category of add-backs may vary from period to period. The effect of any foreign currency changes to the extent reflected in the determination of tConsolidated shall be excluded in each determination period.

Attachment 11

Calculation Method for Borrower EBITDA

	
		
	 
	Operating profit

	(+)
	Depreciation expenses (including depreciation expenses for lease) (limited to those deducted from operating profit)

	(+)
	Amortization expenses regarding goodwill (limited to those deducted from operating profit)

	(+)
	Other amortization expenses

	(-)
	Payments to lease obligations (limited to those added to operating profit)

	Total 

	EBITDA

Note 1: The figure shall be calculated based on the last twelve months from the reference date for the calculation

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