Document:

Exhibit 10.1

 

Execution Version

 

EIGHTH AMENDMENT TO CREDIT AGREEMENT

THIS EIGHTH AMENDMENT TO CREDIT AGREEMENT (this “Eighth Amendment”), dated as of February 16, 2018, is by and among NEW MEDIA HOLDINGS I LLC, a Delaware limited liability company (“Holdings”), NEW MEDIA HOLDINGS II LLC, a Delaware limited liability company (the “Borrower”), certain Subsidiaries of Holdings party hereto (together with Holdings, collectively, the “Guarantors”), the several banks and other financial institutions or entities party hereto (the “Incremental Term Lenders”) and CITIZENS BANK OF PENNSYLVANIA, as administrative agent on behalf of the Lenders under the Credit Agreement (as hereinafter defined) (in such capacity, the “Administrative Agent”).  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement.

W I T N E S S E T H

WHEREAS, the Borrower, Holdings, certain banks and financial institutions from time to time party thereto (the “Lenders”) and the Administrative Agent are parties to that certain credit agreement dated as of June 4, 2014 (as previously amended or modified pursuant to that certain letter agreement dated as of July 17, 2014, that certain First Amendment dated as of September 3, 2014, that certain Second Amendment dated as of November 20, 2014, that certain Third Amendment dated as of January 9, 2015, that certain Fourth Amendment dated as of February 13, 2015, that certain Fifth Amendment dated as of March 6, 2015, that certain Sixth Amendment dated as of May 29, 2015 and that certain Seventh Amendment dated as of July 14, 2017 and as further amended, modified, extended, restated, replaced, or supplemented from time to time, the “Credit Agreement”);

WHEREAS, pursuant to Section 2.24(a) of the Credit Agreement, the Borrower has notified the Administrative Agent that it is requesting (i) a Term Loan Increase in an aggregate principal amount of $50,000,000 (the “Eighth Amendment Incremental Term Loan”) on the terms set forth in this Eighth Amendment and (ii) that the Administrative Agent and the Incremental Term Lenders amend the Credit Agreement to effect such amendments as may be necessary or appropriate, in the reasonable opinion of the Administrative Agent and the Borrower, to effect the Eighth Amendment Incremental Term Loan;

WHEREAS, the Incremental Term Lenders are willing to provide the Eighth Amendment Incremental Term Loan and to make such amendments to the Credit Agreement, in accordance with and subject to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I

AMENDMENT AND INCREMENTAL TERM LOANS

1.1          Eighth Amendment.  This Eighth Amendment constitutes an “Incremental Amendment” pursuant to Section 2.24 of the Credit Agreement.

1.2          Amendments to Credit Agreement.  From and after the Eighth Amendment Effective Date (as hereinafter defined), the Credit Agreement is amended pursuant to this Eighth Amendment to make the amendments set forth in Annex A to this Eighth Amendment.

1.3          Amendments to Schedule 2.1.  From and after the Eighth Amendment Effective Date, Schedule 2.1 to the Credit Agreement is hereby amended and supplemented to add the information set forth on the Supplement to Schedule 2.1 attached as Annex B to this Eighth Amendment to reflect amendments pursuant to this Eighth Amendment.  All other Schedules to the Credit Agreement shall not be modified or otherwise affected.

1.4          Eighth Amendment Incremental Term Loans.  Each Incremental Term Lender hereby agrees, severally and not jointly, to provide the Eighth Amendment Incremental Term Loans in the form of a Term Loan Increase (which shall be of the same Class as, and fungible with, the Seventh Amendment Extended Term Loans and the 2017 Incremental Term Loans and shall have identical terms as the Seventh Amendment Extended Term Loans and the 2017 Incremental Term Loans) in an aggregate principal amount of $50,000,000 to the Borrower on the Eighth Amendment Effective Date (as hereinafter defined), on the terms and conditions set forth herein and in the Credit Agreement (as amended by this Amendment).

1.5          Credit Agreement Governs.  Except as set forth in this Eighth Amendment and in the Credit Agreement (as amended by this Amendment), the Eighth Amendment Incremental Term Loans shall be subject to the provisions, including any provisions restricting the rights, or regarding the obligations, of the Loan Parties or any provisions regarding the rights of the Lenders, of the Credit Agreement and the other Loan Documents.

 

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ARTICLE II

INTEREST PERIODS

In connection with this Eighth Amendment, the Interest Periods applicable to the Seventh Amendment Extended Term Loans and the 2017 Incremental Term Loans shall be reset as necessary to cause the Interest Periods applicable to the Seventh Amendment Extended Term Loans and the 2017 Incremental Term Loans to be identical to the Interest Periods applicable to the Eighth Amendment Incremental Term Loans funded on the Eighth Amendment Effective Date.  The Borrower shall be responsible for any costs arising under Section 2.19 of the Credit Agreement resulting from such action.

ARTICLE III

CONDITIONS TO EFFECTIVENESS

3.1          Closing Conditions.  This Eighth Amendment shall become effective as of the day and year set forth above (the “Eighth Amendment Effective Date”) upon satisfaction (or waiver) of the following conditions (in each case, in form and substance reasonably acceptable to the Administrative Agent):

(a)           Executed Eighth Amendment.  The Administrative Agent shall have received a copy of this Eighth Amendment duly executed by each of the Loan Parties, the Administrative Agent and the Incremental Term Lenders.

(b)           Eighth Amendment Incremental Term Loan Conditions.  The conditions set forth in Section 2.24(d) of the Credit Agreement shall have been satisfied.

(c)           Fees and Expenses.

(i)         The Borrower shall have paid, or cause to be paid, or shall have arranged for such payment in a manner reasonably satisfactory to the Administrative Agent, all fees due and payable on the Eighth Amendment Effective Date pursuant to the terms of that certain Engagement Letter, dated as of February 6, 2018, by and among the Borrower, the Administrative Agent, and Citizens Bank, N.A., as lead arranger.

(ii)        The Administrative Agent shall have received from the Borrower such other fees and expenses that are due and payable in connection with the consummation of the transactions contemplated hereby and King & Spalding LLP shall have received from the Borrower payment of all outstanding fees and expenses previously incurred and all fees and expenses incurred in connection with this Eighth Amendment.

(d)           Closing Certificates.  The Administrative Agent shall have received for each Loan Party a certificate (which may be in the form of an omnibus certificate) (A) certifying that the articles of incorporation or other organizational documents, as applicable, of each Loan Party that were delivered on the Closing Date (or later date, as

 

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applicable) remain true and complete as of the Eighth Amendment Effective Date (or certified updates as applicable), (B) certifying that the bylaws, operating agreements or partnership agreements of each Loan Party that were delivered on the Closing Date (or later date, as applicable) remain true and correct and in force and effect as of the Eighth Amendment Effective Date (or certified updates as applicable), (C) attaching copies of the resolutions of the board of directors or comparable managing body of each Loan Party approving and adopting this Eighth Amendment, the transactions contemplated herein and authorizing execution and delivery hereof, and certifying such resolutions to be true and correct and in force and effect as of the Eighth Amendment Effective Date and (D) certifying that each officer listed in the incumbency certification contained in each Loan Party’s secretary’s certificate, delivered on the Closing Date (or later date, as applicable) remains duly authorized to execute and deliver on behalf of such Loan Party the Eighth Amendment or attaching a new incumbency certificate for each officer signing this Eighth Amendment.

(e)           Legal Opinion.  The Administrative Agent shall have received an opinion from Cleary Gottlieb Steen and Hamilton LLP, New York counsel for the Loan Parties, dated the Eighth Amendment Effective Date and addressed to the Administrative Agent and the Lenders which shall be in form and substance reasonably satisfactory to the Administrative Agent.

(f)            Good Standings.  The Administrative Agent shall have received for each Loan Party customary certificates of good standing, existence or its equivalent with respect to such Loan Party in its state of incorporation or organization, as applicable.

ARTICLE IV

MISCELLANEOUS

4.1          Amended Terms.  On and after the Eighth Amendment Effective Date, all references to the Credit Agreement in each of the Loan Documents shall hereafter mean the Credit Agreement as amended by this Eighth Amendment.  Except as specifically amended hereby or otherwise agreed, the Credit Agreement is hereby ratified and confirmed and shall remain in full force and effect according to its terms.

4.2          Representations and Warranties of the Loan Parties.  The Loan Parties hereby represent and warrant that (a) each of the representations and warranties made by any Loan Party in or pursuant to the Loan Documents is true and correct in all material respects on and as of the Eighth Amendment Effective Date as if made on and as of such date, except to the extent that any such representation and warranty specifically relates to an earlier date, in which case such representation and warranty was true and correct in all material respects on and as of such earlier date; provided that, in each case, such materiality qualifier shall not be applicable to any representation and warranty that is already qualified or modified by materiality in the text thereof and (b) no Default or Event of Default has occurred and is continuing on the Eighth Amendment Effective Date or after giving effect to this Eighth Amendment.

 

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4.3          Reaffirmation of Obligations.  Each Loan Party hereby ratifies the Credit Agreement and acknowledges and reaffirms (a) that it is bound by all terms of the Credit Agreement applicable to it and (b) that it is responsible for the observance and full performance of its respective Obligations.

4.4          Loan Document.  This Eighth Amendment shall constitute a Loan Document under the terms of the Credit Agreement.

4.5          Expenses.  The Borrower agrees to pay all reasonable and documented out-of-pocket costs and expenses of the Administrative Agent in connection with the preparation, execution and delivery of this Eighth Amendment, including without limitation the reasonable and documented fees and expenses of the Administrative Agent’s legal counsel.

4.6          Further Assurances.  The Loan Parties agree to promptly take such action, upon the reasonable request of the Administrative Agent, as is necessary to carry out the intent of this Eighth Amendment.

4.7          Entirety.  This Eighth Amendment and the other Loan Documents embody the entire agreement among the parties hereto and supersede all prior agreements and understandings, oral or written, if any, relating to the subject matter hereof.

4.8          Counterparts; Telecopy.  This Eighth Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of an executed counterpart to this Eighth Amendment by telecopy or other electronic means shall be effective as an original and shall constitute a representation that an original will be delivered.

4.9          GOVERNING LAW.  THIS EIGHTH AMENDMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

4.10        Successors and Assigns.  This Eighth Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

4.11        Consent to Jurisdiction; Service of Process; Waiver of Jury Trial.  The jurisdiction, service of process and waiver of jury trial provisions set forth in Sections 9.12 and 9.18 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

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IN WITNESS WHEREOF the parties hereto have caused this Eighth Amendment to be duly executed on the date first above written.

	
BORROWER:

	
NEW MEDIA HOLDINGS II LLC

	 
	 		 	 

		
By:

	 	
/s/ Gregory W. Freiberg

	 

		
Name:

	
Gregory W. Freiberg

	 
	 	
Title:

	
Chief Financial Officer

	 
	 	 	 	 
	
GUARANTORS:

	
NEW MEDIA HOLDINGS I LLC

	 
	 	 	 	 

		
By:

	 	
/s/ Gregory W. Freiberg

	 

		
Name:

	
Gregory W. Freiberg

	 
	 	
Title:

	
Chief Financial Officer

	 
	 	 	 	 
	 	
LOCAL MEDIA GROUP HOLDINGS LLC

	 
	 	
LOCAL MEDIA GROUP, INC.

	 
	 	
SEACOAST NEWSPAPERS, INC.

	 
	 	
LMG MASSACHUSETTS, INC.

	 
	 	
THE INQUIRER AND MIRROR, INC.

	 
	 	
THE MAIL TRIBUNE, INC.

	 
	 	
LMG NATIONAL PUBLISHING, INC.

	 
	 	
THE NICKEL OF MEDFORD, INC.

	 
	 	
LMG STOCKTON, INC.

	 
	 	 	 	 

		
By:

	 	
/s/ Gregory W. Freiberg

	 

		
Name:

	
Gregory W. Freiberg

	 
	 	
Title:

	
Chief Financial Officer

	 

 

NEW MEDIA HOLDINGS II LLC

EIGHTH AMENDMENT TO CREDIT AGREEMENT

 

COPLEY OHIO NEWSPAPERS, INC.

ENHE ACQUISITION, LLC

ENTERPRISE NEWSMEDIA HOLDING, LLC

ENTERPRISE NEWSMEDIA, LLC

ENTERPRISE PUBLISHING COMPANY, LLC

GATEHOUSE MEDIA ARKANSAS HOLDINGS, INC.

GATEHOUSE MEDIA CALIFORNIA HOLDINGS, INC.

GATEHOUSE MEDIA COLORADO HOLDINGS, INC.

GATEHOUSE MEDIA CONNECTICUT HOLDINGS, INC.

GATEHOUSE MEDIA CORNING HOLDINGS, INC.

GATEHOUSE MEDIA DELAWARE HOLDINGS, INC.

GATEHOUSE MEDIA DIRECTORIES HOLDINGS, INC.

GATEHOUSE MEDIA FREEPORT HOLDINGS, INC.

GATEHOUSE MEDIA HOLDCO, LLC

GATEHOUSE MEDIA ILLINOIS HOLDINGS II, INC.

GATEHOUSE MEDIA ILLINOIS HOLDINGS, INC.

GATEHOUSE MEDIA INTERMEDIATE HOLDCO, LLC

GATEHOUSE MEDIA IOWA HOLDINGS, INC.

GATEHOUSE MEDIA KANSAS HOLDINGS II, INC.

GATEHOUSE MEDIA KANSAS HOLDINGS, INC.

GATEHOUSE MEDIA LANSING PRINTING, INC.

GATEHOUSE MEDIA LOUISIANA HOLDINGS, INC.

GATEHOUSE MEDIA MANAGEMENT SERVICES, INC.

GATEHOUSE MEDIA MICHIGAN HOLDINGS II, INC.

GATEHOUSE MEDIA MICHIGAN HOLDINGS, INC.

GATEHOUSE MEDIA MINNESOTA HOLDINGS, INC.

GATEHOUSE MEDIA MISSOURI HOLDINGS II, INC.

GATEHOUSE MEDIA MISSOURI HOLDINGS, INC.

GATEHOUSE MEDIA MASSACHUSETTS I, INC.

GATEHOUSE MEDIA MASSACHUSETTS II, INC.

GATEHOUSE MEDIA NEBRASKA HOLDINGS, INC.

GATEHOUSE MEDIA VIRGINIA HOLDINGS, INC.

GATEHOUSE MEDIA NEW YORK HOLDINGS, INC.

GATEHOUSE MEDIA NORTH DAKOTA HOLDINGS, INC.

GATEHOUSE MEDIA OHIO HOLDINGS, INC.

GATEHOUSE MEDIA OKLAHOMA HOLDINGS, INC.

GATEHOUSE MEDIA OPERATING, LLC

GATEHOUSE MEDIA PENNSYLVANIA HOLDINGS, INC.

GATEHOUSE MEDIA SUBURBAN NEWSPAPERS, INC.

GATEHOUSE MEDIA TENNESSEE HOLDINGS, INC.

GATEHOUSE MEDIA TEXAS HOLDINGS, INC.

UPCURVE, INC.

GATEHOUSE MEDIA, LLC

GEORGE W. PRESCOTT PUBLISHING COMPANY, LLC

LIBERTY SMC, L.L.C.

LOW REALTY, LLC

LRT FOUR HUNDRED, LLC

MINERAL DAILY NEWS TRIBUNE, INC.

NEWS LEADER, INC.

SUREWEST DIRECTORIES

TERRY NEWSPAPERS, INC.

THE PEORIA JOURNAL STAR, INC.

 

	
By:

	
/s/ Gregory W. Freiberg

	
Name:

	
Gregory W. Freiberg

	
Title:

	
Chief Financial Officer

 

NEW MEDIA HOLDINGS II LLC

EIGHTH AMENDMENT TO CREDIT AGREEMENT

 

GATEHOUSE MEDIA TEXAS HOLDINGS II, INC.

LMG RHODE ISLAND HOLDINGS, INC.

LMG MAINE HOLDINGS, INC.

CUMMINGS ACQUISITION, LLC

CA ALABAMA HOLDINGS, INC.

CA FLORIDA HOLDINGS, LLC

CA SOUTH CAROLINA HOLDINGS, INC.

CA NORTH CAROLINA HOLDINGS, INC.

CA LOUISIANA HOLDINGS, INC.

CA MASSACHUSETTS HOLDINGS, INC.

DB ACQUISITION, INC.

DB ARKANSAS HOLDINGS, INC.

DB IOWA HOLDINGS, INC.

DB NORTH CAROLINA HOLDINGS, INC.

DB OKLAHOMA HOLDINGS, INC.

DB TENNESSEE HOLDINGS, INC.

DB TEXAS HOLDINGS, INC.

DB WASHINGTON HOLDINGS, INC.

ADUS, INC.

GATEHOUSE MEDIA OHIO HOLDINGS II, INC.

DOLCO ACQUISITION, LLC

BRIDGETOWER MEDIA, LLC

THE NWS COMPANY, LLC

LONG ISLAND BUSINESS NEWS, LLC

NEW ORLEANS PUBLISHING GROUP, L.L.C.

NOPG, L.L.C.

LAWYER’S WEEKLY, LLC

THE DAILY RECORD COMPANY, LLC

IDAHO BUSINESS REVIEW, LLC

THE JOURNAL RECORD PUBLISHING CO., LLC

BRIDGETOWER MEDIA DLN, LLC

DAILY JOURNAL OF COMMERCE, INC.

DAILY REPORTER PUBLISHING COMPANY

BRIDGETOWER MEDIA HOLDING COMPANY

ARIZONA NEWS SERVICE, LLC

MISSOURI LAWYERS MEDIA, LLC

FINANCE AND COMMERCE, INC.

CONVERSION INNOVATIONS, INC.

CYBERINK, LLC

VIWO LLC

GATEHOUSE MEDIA GEORGIA HOLDINGS, INC.

GATEHOUSE MEDIA ALASKA HOLDINGS, INC.

GATEHOUSE MEDIA OREGON HOLDINGS, INC.

 

	 	
By:

	 	
/s/ Gregory W. Freiberg

	 	
Name:

	
Gregory W. Freiberg

	 	
Title:

	
Chief Financial Officer

 

NEW MEDIA HOLDINGS II LLC

EIGHTH AMENDMENT TO CREDIT AGREEMENT

 

	
ADMINISTRATIVE AGENT:

	
CITIZENS BANK OF PENNSYLVANIA, as Administrative Agent

 

	 	
By:

	 	
/s/ Arthur D. Burns

	 	
Name:

	Arthur D. Burns
	 	
Title:

	Managing Director

NEW MEDIA HOLDINGS II LLC

EIGHTH AMENDMENT TO CREDIT AGREEMENT

 

	
INCREMENTAL TERM LENDERS:

	
CITIZENS BANK, N.A., as an Incremental Term Lender

	 	
By:

	 	
/s/ Arthur D. Burns

	 	
Name: 

	Arthur D. Burns
	 	
Title:    

	Managing Director

NEW MEDIA HOLDINGS II LLC

EIGHTH AMENDMENT TO CREDIT AGREEMENT

 

Annex A

Amendments to Credit Agreement

 

1.1          New Definitions.  Section 1.1 of the Credit Agreement is hereby amended by inserting in appropriate alphabetical order the following new definitions:

 

“Eighth Amendment” means that certain Eighth Amendment to Credit Agreement dated as of the Eighth Amendment Effective Date, by and among Holdings, the Borrower, the other Loan Parties party thereto, the Lenders party thereto and the Administrative Agent.

 

“Eighth Amendment Effective Date” means February 16, 2018.

 

“Eighth Amendment Incremental Term Commitment” means, as to each Term Loan Lender, its obligation (if applicable) to make an Eighth Amendment Incremental Term Loan to the Borrower pursuant to Section 2.1(a)(viii) in an aggregate amount not to exceed the amount specified opposite such Lender’s name on Schedule 2.1 under the caption “Eighth Amendment Incremental Term Commitment” or in the Assignment and Acceptance (or Affiliated Lender Assignment and Assumption) pursuant to which such Term Loan Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement (including pursuant to Section 2.24 or Section 2.25).  The aggregate amount of the Eighth Amendment Incremental Term Commitments as of the Eighth Amendment Effective Date is $50,000,000.

“Eighth Amendment Incremental Term Loans” means the term loans made by the Lenders on the Eighth Amendment Effective Date to the Borrower pursuant to Section 2.1(a)(viii); it being understood that except as set forth in the Eighth Amendment and in this Agreement, the Eighth Amendment Incremental Term Loans shall be of the same Class as (and fungible with) the Seventh Amendment Extended Term Loans and the 2017 Incremental Term Loans, shall have identical terms as the Seventh Amendment Extended Term Loans and the 2017 Incremental Term Loans and shall otherwise be subject to the provisions, including any provisions restricting the rights, or regarding the obligations, of the Loan Parties or any provisions regarding the rights of the Lenders, of this Agreement and the other Loan Documents.

1.2          Amended Definitions. The following definitions in Section 1.1 of the Credit Agreement shall be amended as follows:

 

(a)           Clause (a) of the definition of “Applicable Margin” shall be replaced in its entirety with the following:

 

“(a)          (i) with respect to Fourth Amendment Replacement Term Loans and the Sixth Amendment Incremental Term Loans, (x) 6.25% for Eurodollar Rate Loans and (y) 5.25% for Base Rate Loans and (ii) with respect to Seventh Amendment Extended Term Loans, the 2017 Incremental Term Loans and Eighth Amendment Incremental Term Loans, (x) 6.25% for Eurodollar Rate Loans and (y) 5.25% for Base Rate Loans; and”

(b)           The first sentence of the definition of “Base Rate” shall be replaced in its entirety with the following:

 

“”Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus 1⁄2 of 1% and (c) the Eurodollar Rate for an Interest Period of one month plus 1.0%; provided, however, that notwithstanding the foregoing, the Base Rate with respect to Fourth Amendment Replacement Term Loans, Sixth Amendment Incremental Term Loans, Seventh Amendment Extended Term Loans, the 2017 Incremental Term Loans and the Eighth Amendment Incremental Term Loans shall at no time be less than 2.0% per annum.”

(c)           The definition of “Incremental Term Commitment” shall be replaced in its entirety with the following:

 

““Incremental Term Commitment” has the meaning set forth in Section 2.24(a) and shall include the Sixth Amendment Incremental Term Loan Commitment, the 2017 Incremental Term Loan Commitment and the Eighth Amendment Incremental Term Loan Commitment.”

(d)           The definition of “Incremental Term Loans” shall be replaced in its entirety with the following:

 

““Incremental Term Loans” has the meaning set forth in Section 2.24(b) and shall include the Sixth Amendment Incremental Term Loans, the 2017 Incremental Term Loans and the Eighth Amendment Incremental Term Loans.”

(e)           The definition of “Interest Period” shall be amended by (x) deleting the “and” at the end of clause (v) thereof, (y) inserting “; and” at the end of clause (vi) thereof and inserting the following as a new clause (vii):

 

“(vii)       any Interest Period election with respect to the Seventh Amendment Extended Term Loans and the 2017 Incremental Term Loans as in effect on the Eighth Amendment Effective Date shall apply to the Eighth Amendment Incremental Term Loans.”

 

(f)            The definition of “Maturity Date” shall be replaced in its entirety with the following:

 

   ““Maturity Date” means (i) with respect to the Fourth Amendment Replacement Term Loans and the Sixth Amendment Incremental Term Loans (for the avoidance of doubt, other than any Fourth Amendment Replacement Term Loans and the Sixth Amendment Incremental Term Loans that have been converted to Seventh Amendment Extended Term Loans), the sixth anniversary of the Closing Date; (ii) with respect to the Seventh Amendment Extended Term Loans, the 2017 Incremental Term Loans and the Eighth Amendment Incremental Term Loans, July 14, 2022 and (iii) with respect to the Revolving Credit Facility, July 14, 2021 (the “Revolving Credit Maturity Date”); (iv) with respect to any tranche of Extended Term Loans (other than the Seventh Amendment Extended Term Loans), Extended Revolving Credit Commitments, the final maturity date as specified in the applicable Extension Request accepted by the respective Lender or Lenders and (v) with respect to any Incremental Loans (other than the Sixth Amendment Incremental Term Loans, the 2017 Incremental Term Loans and the Eighth Amendment Incremental Term Loans) or Incremental Revolving Credit Commitments (other than the Fifth Amendment Incremental Revolver Increase), the final maturity date as specified in the applicable Incremental Amendment; provided that, in each case, if such day is not a Business Day, the applicable Maturity Date shall be the Business Day immediately succeeding such day.”

(g)           The definition of “Repricing Transaction” shall be replaced in its entirety with the following:

 

““Repricing Transaction” means(a) the prepayment, refinancing, substitution, replacement or conversion of all or a portion of the Seventh Amendment Extended Term Loans, the 2017 Incremental Term Loans or the Eighth Amendment Incremental Term Loans with the incurrence by the Borrower or any Subsidiary of any Indebtedness under any credit facilities that results in the reduction of the All-In Yield of such Indebtedness relative to the Seventh Amendment Extended Term Loans, the 2017 Incremental Term Loans or the Eighth Amendment Incremental Term Loans so repaid, refinanced, substituted, replaced or converted and (b) any amendment to this Agreement that results in the reduction of the All-In Yield applicable to the Seventh Amendment Extended Term Loans, the 2017 Incremental Term Loans or the Eighth Amendment Incremental Term Loans, excluding, in each case, for avoidance of doubt, any such reductions in connection with a Change of Control; provided, that, for the avoidance of doubt, a Repricing Transaction does not include any prepayment, repayment or refinancing, as the case may be, in connection with a Change of Control.”

 

1.3          Other Amendments.  The following sections of the Credit Agreement shall be amended as follows:

 

(a)           The first whereas clause in the recitals shall be replaced in its entirety with the following:

 

“WHEREAS, the Borrower has requested the Lenders to extend credit in the form of (i) Initial Term Loans in an aggregate principal amount of $200,000,000, (ii) First Amendment Incremental Term Loans in an aggregate principal amount of $25,000,000, (iii) Third Amendment Incremental Term Loans in an aggregate principal amount as of the Third Amendment Effective Date of $102,000,000, (iv) Fourth Amendment Replacement Term Loans in an initial aggregate principal amount of $327,000,000 which Fourth Amendment Replacement Term Loans replaced the Initial Term Loans, the First Amendment Incremental Term Loans and the Third Amendment Incremental Term Loans in accordance with the terms of Section 9.1(d) of this Agreement and on the Seventh Amendment Effective Date, $317,725,312.50 of such Fourth Amendment Replacement Term Loans were converted into Seventh Amendment Extended Term Loans in accordance with the terms of Section 2.25(a) of this Agreement, (v) Revolving Credit Commitments in an initial aggregate principal amount of $25,000,000 (which may be used for the issuance of one or more Letters of Credit from time to time and one or more Swing Line Loans from time to time), which Revolving Credit Commitments were increased to $75,000,000 as of the Third Amendment Effective Date by an Incremental Revolving Credit Commitment of $50,000,000 (such increase, the “Third Amendment Incremental Revolver Increase” and the Revolving Credit Loans made thereunder, the “Third Amendment Incremental Revolving Credit Loans”) and which Third Amendment Incremental Revolving Credit Loans have been repaid prior to the Conversion Date and the Third Amendment Incremental Revolver Increase automatically terminated in accordance with Section 2.2(a)(ii), (vi) additional Revolving Credit Commitments in an aggregate principal amount of $15,000,000 as of the Fifth Amendment Effective Date (such increase, the “Fifth Amendment Incremental Revolver Increase”), (vii) Sixth Amendment Incremental Term Loans in an aggregate principal amount of $25,000,000 and on the Seventh Amendment Effective Date, $24,436,085.38 of such Sixth Amendment Incremental Term Loans were converted into Seventh Amendment Extended Term Loans in accordance with the terms of Section 2.25(a) of this Agreement, (viii) 2017 Incremental Term Loans in an aggregate principal amount of $20,000,000 and (ix) Eighth Amendment Incremental Term Loans in an aggregate principal amount of $50,000,000;”

(b)           Section 2.1(a) shall be amended by adding the following as a new clause (viii):

 

“(viii)   Subject to the terms and conditions hereof, the Term Loan Lenders with an Eighth Amendment Incremental Term Commitment severally agree to make an Eighth Amendment Incremental Term Loan denominated in Dollars to

 

the Borrower on the Eighth Amendment Effective Date in an amount equal to the amount of the Eighth Amendment Incremental Term Commitment of such Lender, provided that, there may only be one Borrowing Date for the Eighth Amendment Incremental Term Loan and any remaining Eighth Amendment Incremental Term Commitment that is not borrowed shall automatically expire on such Borrowing Date.  The Eighth Amendment Incremental Term Loans may from time to time be Eurodollar Rate Loans or Base Rate Loans, as determined by the Borrower and notified to the Administrative Agent in accordance with Sections 2.1 and 2.11.  Subject to Sections 2.5, 2.9 and 2.10, all amounts owed hereunder with respect to the Eighth Amendment Incremental Term Loans shall be paid in full no later than the Maturity Date with respect thereto.  Amounts repaid or prepaid on the Eighth Amendment Incremental Term Loans may not be reborrowed.”

(c)           Section 2.1(b) shall be amended by adding the following as a new clause (vii):

 

“(vii)    The Borrower shall deliver to the Administrative Agent a Borrowing Notice (which Borrowing Notice must be received by the Administrative Agent prior to 10:00 A.M., New York City time, one (1) Business Day prior to the Eighth Amendment Effective Date) requesting that the Term Loan Lenders with an Eighth Amendment Incremental Term Commitment make the Eighth Amendment Incremental Term Loans on the Eighth Amendment Effective Date.  Upon receipt of such Borrowing Notice, which notice shall be irrevocable, the Administrative Agent shall promptly notify each Term Loan Lender with an Eighth Amendment Incremental Term Commitment thereof.  Not later than 10:00 A.M., New York City time, on the Eighth Amendment Effective Date, each Term Loan Lender with an Eighth Amendment Incremental Term Commitment shall make available to the Administrative Agent at the Funding Office an amount in immediately available funds equal to the Eighth Amendment Incremental Term Loan to be made by such Lender.  The Administrative Agent shall promptly make available to the Borrower the aggregate of the amounts made available to the Administrative Agent by the Term Loan Lenders in Dollars.”

(d)           Section 2.5(a) shall be replaced in its entirety with the following:

 

“(a)      The Borrower hereby unconditionally promises to pay to the Administrative Agent for the account of the appropriate Term Loan Lender (i) (x) on June 30, 2017, each Term Loan Lender’s pro rata share of $877,344.68 (which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority set forth in Section 2.9 and Section 2.10) and (y) on the last Business Day of each March, June, September and December after December 31, 2017 commencing with March 31, 2018, with respect to the Seventh Amendment Extended Term Loans, the 2017 Incremental Term Loans and the Eighth Amendment Incremental Term Loans, each applicable Term Loan Lender’s pro rata share of $1,031,031.64 (which payments shall be reduced as a result of the application of prepayments in accordance with the order of priority

 

set forth in Section 2.9 and Section 2.10) and (ii) on the Maturity Date for the Seventh Amendment Extended Term Loans, the 2017 Incremental Term Loans and for the Eighth Amendment Incremental Term Loans, the aggregate principal amount of all Seventh Amendment Extended Term Loans, 2017 Incremental Term Loans and Eighth Amendment Incremental Term Loans outstanding on such date (or on such earlier date on which the Loans become due and payable pursuant to Section 7).  With respect to any Replacement Loans, Incremental Term Loans or Extended Term Loans, such Loans shall be repaid by the Borrower in the amounts and on the dates set forth in the Incremental Amendment or Extension Amendment, as applicable.”

(e)           The first sentence in Section 2.7(d) shall be amended by deleting the word “and” at the end of clause (v) thereof and adding the following text immediately before the period at the end thereof:

 

“and (vii) for the account of each Lender with an Eighth Amendment Incremental Term Loan Commitment on the Eighth Amendment Effective Date, to such Lender out of the proceeds of the Eighth Amendment Incremental Term Loan made by such Lender on the Eighth Amendment Effective Date, as fee compensation for the funding of such Lender’s Eighth Amendment Incremental Term Loan a closing fee to be effected in the form of an OID in an amount equal to 0.50% of such Lender’s Eighth Amendment Incremental Term Loan Commitment on the Eighth Amendment Effective Date.”

(f)           The second sentence in Section 2.7(d) shall be replaced in its entirety with the following:

 

“Such closing fee will be in all respects fully earned, due and payable on (i) with respect to the Initial Term Loan, the Closing Date, (ii) with respect to the First Amendment Incremental Term Loan, the First Amendment Effective Date, (iii) with respect to the Third Amendment Incremental Term Loan and the Third Amendment Incremental Revolver Increase, the Third Amendment Effective Date, (iv) with respect to the Sixth Amendment Incremental Term Loan, the Sixth Amendment Effective Date, (v) with respect to the 2017 Incremental Term Loan, the Seventh Amendment Effective Date and (vi) with respect to the Eighth Amendment Incremental Term Loan, the Eighth Amendment Effective Date, and in each case will be non-refundable and non-creditable thereafter.”

 

(g)           Section 2.9(b) shall be replaced in its entirety with the following:

 

“(b)      Loan Repricing Protection.  In the event that, on or prior to the six month anniversary of the Eighth Amendment Effective Date, the Borrower (a) makes any prepayment of the Seventh Amendment Extended Term Loans, the 2017 Incremental Term Loans or the Eighth Amendment Incremental Term Loans in connection with any Repricing Transaction or (b) effects any amendment of this Agreement resulting in a Repricing Transaction with respect to the Seventh Amendment Extended Term Loans, the 2017 Incremental Term Loans or the

 

Eighth Amendment Incremental Term Loans, the Borrower shall pay to the Administrative Agent, for the ratable account of each applicable Lender, (i) in the case of clause (a), a prepayment premium not to exceed 1.00% of the aggregate principal amount of the Seventh Amendment Extended Term Loans, the 2017 Incremental Term Loans or the Eighth Amendment Incremental Term Loans being prepaid and (ii) in the case of clause (b), a payment not to exceed 1.00% of the aggregate principal amount of the applicable Seventh Amendment Extended Term Loans, the 2017 Incremental Term Loans or the Eighth Amendment Incremental Term Loans outstanding immediately prior to such amendment that is subject to such Repricing Transaction (it being understood that if a Non-Consenting Lender is removed pursuant to Section 2.23  in connection with a Repricing Transaction, such fee shall be paid to the Non-Consenting Lender and not to the replacement Lender pursuant to Section 2.23).”

(h)           Section 2.24(d) shall be amended by replacing clause (iii) thereof in its entirety with the following:

 

“(iii)     the aggregate principal amount of Incremental Term Loans and Incremental Revolving Credit Commitments incurred on and after the Seventh Amendment Effective Date shall not exceed $100,000,000 in the aggregate (the “Available Incremental Amount”) (and after giving effect to the incurrence of the 2017 Incremental Term Loans and the Eighth Amendment Incremental Term Loans, the remaining Available Incremental Amount shall be $30,000,00); and”

 

(i)            Section 3.16 shall be amended by adding the following text before the last sentence thereof:

 

“The proceeds of the Eighth Amendment Incremental Term Loans made on the Eighth Amendment Effective Date shall be applied by the Borrower for general corporate purposes, including, without limitation, to finance acquisitions permitted under this Agreement and the working capital needs of the Borrower and its Subsidiaries in the ordinary course of business.”

(j)            Section 5.10 shall be amended by adding the following text before the last sentence thereof:

 

“The proceeds of the Eighth Amendment Incremental Term Loans made on the Eighth Amendment Effective Date shall be applied by the Borrower for general corporate purposes, including, without limitation, to finance acquisitions permitted under this Agreement and the working capital needs of the Borrower and its Subsidiaries in the ordinary course of business.”

 

Annex B

Supplement to Schedule 2.1 to Credit Agreement

[See attached]

 

SCHEDULE 2.1

Eighth Amendment Incremental Term Commitment

	
Lender

	
Eighth Amendment Incremental Term Commitment

	
CITIZENS BANK, N.A.

	
$50,000,000

	
TOTAL:

	
$50,000,000Exhibit

February 16, 2018
Mr. Paul Norman
Kellogg Company 
One Kellogg Square 
Battle Creek, MI 49017 

Dear Paul, 

On behalf of Kellogg Company (the “Company”), we would like to express our gratitude and appreciation for all that you have contributed across our organization during your 30+ years at the Kellogg Company.  Paul, we wish you and your family only the very best as you transition to the next chapter in your remarkable career.  
This letter outlines the compensation you will receive, all of which is consistent with the relevant Company plans.  Your assistance through April 1, 2018 (the “Effective Date”) will be critical for me and the Company as we transition the business in an orderly manner.  You will remain eligible to receive your bonus under the Kellogg Company 2017 Annual Incentive Plan, based on the terms of the plan, and you will retain the equity awards (the “Equity Awards”) that have been previously awarded to you. You will receive prorated vesting of your 2016-2018 and 2017-2019 executive performance plan (EPP) awards through the last day that you are Senior Vice President of the Company and otherwise each Equity Award will be subject to the terms of the relevant plans. The bonus and EPP payouts will be based on actual performance, and will be paid at the time other participants receive their payouts.  During the transition period between now and the Effective Date, you will continue to be paid at your current base salary.  You will also be eligible for a prorated bonus under the 2018 Annual Incentive Plan.  Your 2018 bonus will be prorated through the last day that you are a Senior Vice President of the Company and will be paid at target at the same time as other participants in the plan receive their payments.  However, you will not be eligible for: (1) any bonus awards under the 2019 or subsequent Annual Incentive Plans, (2) any additional stock options or EPP awards, or (3) any other long-term incentives.  In addition, notwithstanding the foregoing, your Performance-Based Restricted Stock Unit Award dated on or around October 4, 2017, and your participation in the Company’s Change of Control Policy are cancelled effective on the date of this letter.  
You will be eligible for benefits under the Kellogg Company Severance Benefit Plan (the “Plan”) provided to a Senior Executive, as that term is defined in the Plan.  You represent and warrant that you have read the Plan and understand its meaning and application.  In accordance with the Company’s tax equalization policy, you will be provided with assistance in preparing and filing necessary income tax returns resulting from your various international assignments with the Company.  It will be your responsibility to file returns and provide required documentation on a timely basis to comply with all tax laws, and you understand that your failure to timely do so may result in assessment of interest and penalties.  It will be your sole responsibility to pay any interest and penalties so assessed.  
You acknowledge that you will not be entitled to additional compensation or benefits from the Company other than as set forth or described in this letter (this “Agreement”), the Plan, or other benefits vested and accrued as of the last day of your active employment with the Company.  Notwithstanding the foregoing, the language in this paragraph is not intended to operate as a waiver or relinquishment of any 

Kellogg Company / Corporate Headquarters
One Kellogg Square / P.O. Box 3599 / Battle Creek, Michigan  49016-3599   (269) 961-2000

pension plan and/or 401k plan benefits that are vested, the eligibility and entitlement to which will be governed by the terms of the applicable written plan.  
You acknowledge and agree that: (1)    usual and customary withholding for tax purposes and any other withholdings required by law will be withheld from any payments made to you pursuant to this Agreement, to the extent required by law; and (2) all tax liability, with respect to any and all payments or services received by you under this Agreement (other than employer withholding and employer payroll taxes) will be your responsibility.
You acknowledge and agree that in the course of your employment with the Company, you have and will acquire confidential information that includes, by way of example only, trade secrets (including organizational charts, reporting relationships, employee information such as credentials, individual performance, skill sets, salaries and background information), ideas, inventions, methods, designs, formulas, systems, improvements, prices, discounts, business affairs, products, product specifications, manufacturing processes, data and know-how and technical information of any kind whatsoever unless such information has been publicly disclosed by authorized officials of the Company.  You agree that you will not, except as authorized in writing on behalf of the Company, use, publish or disclose, or authorize anyone to use, publish or disclose, any secret or confidential information or knowledge concerning the business of the Company.  Nothing in this Agreement is intended to impede your contact or communication with government officials and you have the right, without criminal or civil penalty, to disclose confidential trade secrets to federal, state and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law, and to disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure. 
You agree to cooperate truthfully and fully with the Company in connection with any and all existing or future investigations or litigation of any nature brought against the Company involving events that occurred during your employment with the Company.  You agree to notify the Company immediately if subpoenaed or asked to appear as a witness in any matter related to the Company.  The Company will reimburse you for reasonable out-of-pocket expenses and, if approved in advance by the Chief Legal Officer of Kellogg, reasonable attorney’s fees incurred as a result of such cooperation.
As of the date you sign this Agreement, you represent and warrant that you have disclosed to Kellogg any information in your possession concerning any conduct involving the Company or any of its officers, directors, representatives, agents or employees that you have any reason to believe may be unlawful, or violates Company policy or would otherwise reflect poorly on the Company in any respect.
You agree to return to the Company, no later than the last day of your active employment with the Company, all property of the Company, regardless of the type or medium (e.g., computer disk, CD-ROM, flash drive) upon which it is maintained, including, but not limited to, all files, documents, correspondence, memoranda, customer and client lists, prospect lists, subscription lists, contracts, pricing policies, operational methods, marketing plans or strategies, product development techniques or plans, business acquisition plans, employee records, technical processes, designs and design projects, inventions, research project presentations, proposals, quotations, data, notes, records, photographic slides, photographs, posters, manuals, brochures, internal publications, books, films, drawings, videos, sketches, plans, outlines, computer disks, computer files, work plans, specifications, credit cards, keys (including elevator, pass, building and door keys), identification cards, and any other documents, writings and materials that you 

Kellogg Company / Corporate Headquarters
One Kellogg Square / P.O. Box 3599 / Battle Creek, Michigan  49016-3599   (269) 961-2000

came to possess or otherwise acquired as a result of and/or in connection with your employment with the Company.  If you later find any Company property in your possession, you agree to immediately return it.  You further agree not to maintain any copies of said property or make any copies of said property available to any third-party.
You understand and agree that this Agreement does not and will not be deemed or construed as an admission of liability or responsibility by the Company for any purpose.  You further agree that nothing contained in this Agreement can be used by you or any other past, present or future employee of the Company in any way as precedent for future dealings with the Company or any of its successors, officers, directors, attorneys, representatives, agents or employees.
You agree that, for a period of two years, beginning with the last day of your active employment with the Company (the “Restricted Period”), you shall not, without the prior written consent from the Chief Legal Officer of Kellogg: 
		
	•
	Directly or indirectly, accept any employment, consult for or with, or otherwise provide or perform any services of any nature to, for or on behalf of any Competitor.  

		
	•
	Directly or indirectly, permit any business, entity or organization which the participant, individually or jointly with others, owns, manages, operates, or controls, to engage in the manufacture, production, distribution, sale or marketing of any of the Products in the Geographic Area. 

For purposes of this paragraph, the term “Products” means ready-to-eat cereal, hot cereal, toaster pastries, wholesome snacks including, but not limited to, cereal bars, granola bars, crispy marshmallow treats, frozen waffles, frozen pancakes, cookies, crackers, salty snacks including by not limited to potato and tortilla chips, meat substitutes, or any other product which the Company manufactures, distributes, sells or markets at the time your active employment with the Company ends.  The term “Geographic Area” means any territory, region or country where the Company sells any Products at any time during the Restricted Period.  To be clear, you may work for a consulting firm so long you are not providing or performing any services of any nature to, for or on behalf of any Competitor.
And the term “Competitor” means a company engaged in the same or similar business as Kellogg, including but not limited to, companies such as: General Mills, Nestle, Post, Mondelez, Malt-0-Meal, Quaker, Campbell’s, PepsiCo, Hershey, Utz, Snyder’s-Lance, Treehouse Foods, CPW (Cereal Partners Worldwide SA), Bright Food (Group) Co Ltd, Australasian Conference Association Ltd, Amy's Kitchen Inc., Premier Foods Plc, Hain Celestial Group Inc., Garden Protein International Ltd, Sanitarium, Carman’s, Freedom Foods, Weetabix, Jordans, Burton’s Associated British Foods plc, United Biscuits or those divisions of Nestle or Ulker producing cereals, cereal bars, and snack food; or any successor to any such company; or any person, firm, partnership, corporation or other business or entity that sells any of the Products (as defined above) in the Geographic Area.  A “Competitor” will also include any retailer that sells a private label version of any of the Products in the Geographic Area where you are directly involved in the private label brand management or operations of the retailer.
If any restriction set forth in this paragraph is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it will be interpreted to extend over the maximum period of time, range of activities or geographic area as to which it may be enforceable.

Kellogg Company / Corporate Headquarters
One Kellogg Square / P.O. Box 3599 / Battle Creek, Michigan  49016-3599   (269) 961-2000

You also agree that, for a period of two years beginning with beginning with the last day of your active employment with the Company, you shall not, without the prior written consent from Chief Legal Officer of Kellogg, directly or indirectly employ, or solicit the employment of (whether as an employee, officer, director, agent, consultant or independent contractor), any person who is or was at any time during the previous year an officer, director, representative, agent or employee of the Company; or directly or indirectly, divert or take away, or attempt to divert or take away, any customers, business or suppliers of Kellogg upon whom you called, serviced, or solicited, or with whom you became acquainted as a result of your employment with the Company.
You further agree not to engage in any form of conduct or make any statements or representations that disparage, portray in a negative light, or otherwise impair the reputation, goodwill or commercial interests of the Company, or its past, present and future subsidiaries, divisions, affiliates, successors, officers, directors, attorneys, agents and employees. Notwithstanding this limitation, nothing in this letter is intended to prevent or inhibit you from filing a charge or a complaint with a government agency or otherwise participating in or assisting a government investigation.  
In consideration of the compensation and benefits provided pursuant to this Agreement, the sufficiency of which you and the Company expressly acknowledge, each of you and the Company unconditionally and irrevocably release, waive and forever discharge the other party and its past, present and future subsidiaries, divisions, affiliates, successors, and their respective officers, directors, attorneys, agents and employees, from any and all legally waivable claims or causes of action that you had, have or may have, known or unknown, relating to your employment with and/or separation from the Company up until the date of this Agreement, including but not limited to, any claims arising under Title VII of the Civil Rights Act of 1964, as amended, Section 1981 of the Civil Rights Act of 1866, as amended, the Civil Rights Act of 1991, as amended, the Family and Medical Leave Act of 1993, as amended, the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act of 1990, the Americans with Disabilities Act of 1990, as amended, the Employee Retirement Income Security Act of 1974, as amended; claims under any other federal, state or local statute, regulation or ordinance; claims for discrimination or harassment of any kind, breach of contract or public policy, wrongful or retaliatory discharge, defamation or other personal or business injury of any kind; claims of representation, misrepresentation, or negligent representation, and any and all other claims, including any state or local wage and hour related claims that are subject to waiver, by which you seek any form of legal or equitable relief, damages, compensation or benefits (except as set forth in subparagraph(e), below), or for attorneys’ fees or costs.   
(a).    You acknowledge that no Kellogg employee, including any attorney or human resource representative, has provided advice or counsel to you regarding the circumstances surrounding your separation from the Company, including the negotiation of any term or provision set forth in this Agreement.  You acknowledges that your decision to sign this Agreement is without reliance upon any statements made by any employee or representative of the Company.
(b).    To the maximum extent permitted by law, you agree not to sue or to institute or cause to be instituted any action in any federal, state, or local court against the Company, including, but not limited to, the claims released in this paragraph.
(c).    You represent and warrant that, with the exception of those types of claims listed in subparagraph (e), below, as of the date you sign this Agreement, you, whether individually or as part 

Kellogg Company / Corporate Headquarters
One Kellogg Square / P.O. Box 3599 / Battle Creek, Michigan  49016-3599   (269) 961-2000

of a class or group, have no charges, claims, or lawsuits of any kind pending against the Company or any of its past, present and future subsidiaries, divisions, affiliates, successors, or their respective officers, directors, attorneys, agents, and employees that fall within the scope of the release set forth in this paragraph.  To the extent that you have such pending charges, claims, or lawsuits as of the date you sign this Agreement, you agree to disclose in writing to the Company all such pending charges, claims, or lawsuits and to obtain the immediate dismissal with prejudice of such matters or withdraw from participation in such matters and to provide written confirmation immediately of same (i.e., court order, and/or agency determination) as a condition precedent to the Company’s obligations under this Agreement (including, but not limited to, providing any compensation or benefits under this Agreement or the Plan). 
(d).    If you actually breach any portion of this Agreement, or disavow any portion of the release given above, you acknowledge and agree that, in addition to any damages, you shall be obligated, to the maximum extent permitted by law, to reimburse the Company for all amounts paid to you pursuant to this Agreement and under the Plan, and you will be liable for all expenses, including costs and attorney’s fees, incurred by any entity released in recovering those amounts or defending a lawsuit or claim, regardless of the outcome.  You also agree and acknowledge that if you breach this Agreement, because it would be impractical and excessively difficult to determine the actual damages to the Company as a result of such breach, any remedies at law (such as a right to monetary damages) would be inadequate.  You, therefore agree that, if you breach this Agreement, the Company shall have the immediate right (in addition to, and not in lieu of, any other right or remedy available to it) to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without proof of actual damage.
(e).    Notwithstanding the foregoing, the release given above does not apply to any claims arising after the date you sign this Agreement.  In addition, nothing in this Agreement prevents you or the Company from instituting any action to enforce the terms of this Agreement or challenge the Agreement’s validity under the Age Discrimination in Employment Act, as amended, or any other right or recovery that cannot by express and unequivocal terms of law, be limited, waived, extinguished, or released.  This Agreement does not limit or extinguish your right to receive an award for information provided to the Securities and Exchange Commission.  Nothing in this Agreement will be construed to prevent you from enforcing any rights you may have under the Employee Retirement Income Security Act of 1974 to recover vested benefits or to prohibit you from filing a charge or otherwise cooperating or participating in an investigation or proceeding conducted by any federal, state or local agency.  You understand and agree that you are waiving the right to recover monetary damages or other individual relief in connection with any such charge, or investigation or in any proceeding brought by you or on your behalf.
(f).    You acknowledge that you have been advised to consult an attorney before signing this Agreement.  You further acknowledge that you have read this Agreement and the Plan, and that you have been given a period of at least 21 days to consider this Agreement, that you understand its meaning and application, and that you are signing of your own free will with the intent of being bound by the terms of this Agreement.  If you elect to sign this Agreement prior to the expiration of 21 days, you have done so voluntarily and knowingly, without any improper inducement or coercion by the Company.  You understand that you may revoke this Agreement as it relates to any potential claim that could be brought or filed under the Age Discrimination in Employment Act, as 

Kellogg Company / Corporate Headquarters
One Kellogg Square / P.O. Box 3599 / Battle Creek, Michigan  49016-3599   (269) 961-2000

amended, within seven days after the date on which you sign this Agreement, and that this Agreement, as it relates to such a claim, does not become effective until the expiration of the seven-day period.  In the event that you revoke this Agreement within the seven-day period, you understand that you must provide such revocation in writing to the Company, Attn: Chief Legal Officer. 
(g).    You acknowledge that to receive benefits under the Plan, you must sign a new agreement and release of claims, which will mirror the terms of this Agreement, within twenty-one days after your last day of active employment with the Company, and the newly signed agreement will become effective as of the date you sign it.
If any provision of this Agreement is found by a court of competent jurisdiction to be unenforceable, in whole or in part, then that provision will be eliminated, modified or restricted in whatever manner is necessary to make the remaining provisions enforceable to the maximum extent allowable by law.
This Agreement will be binding upon, enforceable by, and inure to the benefit of you and the Company, and your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees, and to any successor or assignee of the Company, but neither this Agreement, nor any rights, payments, or obligations arising under this Agreement may be assigned, pledged, transferred, or hypothecated by you.
You agree that the laws of the State of Michigan will govern this Agreement.  You and the Company also agree that any controversy, claim or dispute between the parties, directly or indirectly, concerning this Agreement, the breach of this Agreement or your employment with the Company, including the termination thereof, will only be resolved in individual arbitration before JAMS (Judicial Arbitration Mediation Services) subject to JAMS’ Streamlined Arbitration Rules and Procedures, unless the parties jointly agree to resolution in individual arbitration before the American Arbitration Association (“AAA”), subject to the AAA’s Employment Dispute Arbitration Rules.  You and the Company understand and agree that by agreeing to arbitrate any aforementioned controversies, claims or disputes, you and the Company are waiving the right to have such controversies, claims and disputes heard or resolved by a jury.  Notwithstanding their mutual agreement to arbitrate disputes that may arise between them, and to waive their right to a jury trial with respect to such disputes, you and the Company agree that either may file an action in court for the limited purpose of securing injunctive relief in order to preserve the status quo pending arbitration, provided that any such court action for injunctive relief is filed in the Circuit Court of Calhoun County, Michigan or the United States District Court for the Western District of Michigan, whichever court has jurisdiction over the subject matter in dispute, and the parties expressly submit to the jurisdiction of said courts.
Neither party to this Agreement can discharge or waive any claim or right arising out of a breach or default under this Agreement unless the waiver or discharge is in writing and is signed by the party that will be bound by the waiver or discharge.  A waiver by either party to this Agreement of a breach or default by the other party of any provision of this Agreement will not be deemed a waiver of future compliance with that provision and that provision will remain in full force and effect.
All notices, requests, demands and other communications regarding this Agreement must be in writing and delivered in person or sent by registered or certified mail, postage prepaid, return receipt requested, and properly addressed as follows:

Kellogg Company / Corporate Headquarters
One Kellogg Square / P.O. Box 3599 / Battle Creek, Michigan  49016-3599   (269) 961-2000

To the Company:    Kellogg Company
One Kellogg Square
P.O. Box 3599
Battle Creek, MI  49016
Attention: Gary Pilnick
		
	To Employee:
	At the address provided above.

This letter does not cancel or alter in any way your obligation to reimburse or repay amounts you owe to the Company under any program or policy, including but not limited to, Company credit card, vacation, short-term disability overpayments, tuition reimbursement, relocation, and tax equalization policies, and you agree that the Company may reduce severance pay owed to you under the Plan in satisfaction of the amount you owe the Company under such policies or programs. 
You agree that this Agreement constitutes the entire agreement between you and the Company, and that this Agreement supersedes any and all prior and/or contemporaneous written and/or oral agreements relating to your employment with the Company and separation from the Company.  You acknowledge that this Agreement may not be modified except by written document, signed by you and the Chief Legal Officer or VP Chief Counsel of Kellogg.
This letter and the agreements herein will be interpreted to avoid any penalty sanctions under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and to deliver the full economic value of all the benefits provided herein. If any payment or benefit cannot be provided or made at the time specified herein without incurring sanctions under Section 409A of the Code, then such benefit or payment shall be provided in full at the earliest time thereafter when such sanctions will not be imposed.  Upon your request, the Company agrees to make any changes to this letter and the agreements herein that will assure that no sanctions will be imposed under Section 409A of the Code. 
You represent and warrant that you have not sold, assigned, transferred, conveyed or otherwise disposed of to any third party, by operation of law or otherwise, any action, cause of action, debt, obligation, contract, agreement, covenant, guarantee, judgment, damage, claim, counterclaim, liability or demand of any nature whatsoever relating to any matter covered in this Agreement. 
Paul, on behalf of the Board of Directors, we thank you for your years of dedication, continued commitment and affection for our great Company. 
Sincerely,
/s/ Steve Cahillane____
Steve Cahillane, CEO
Acknowledged and agreed this
16th day of February, 2018
/s/ Paul Norman__
Paul Norman

Kellogg Company / Corporate Headquarters
One Kellogg Square / P.O. Box 3599 / Battle Creek, Michigan  49016-3599   (269) 961-2000

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