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gccnutronicsamendmentfin

DocuSign Envelope ID: E660873F-9F59-440E-81D6-ABF2AAB8C0B7                      EXHIBIT 10.3                                     THIRD AMENDMENT TO LEASE                   THIS  THIRD  AMENDMENT  TO  LEASE  (“Amendment”),  dated  effective  as  of            7/1/2020           _________________, is  entered  into  by  and  between  GCC  LONGMONT  HOLDINGS,            LIMITED PARTNERSHIP,  a  Delaware  limited  partnership  (“Landlord”),  and  NUTRONICS,  INC.,            a  Nevada corporation (“Tenant”).                                               WITNESSETH:                   WHEREAS,  Landlord’s  predecessor  in  interest  and  Tenant  entered  into  that  certain  Lease            dated  July  3,  2014, including  that  certain Addendum  (“Addendum”), as  amended  by  that  certain  First            Amendment to Lease dated August 4, 2016, that certain Second Amendment to Lease dated November 2,            2016,  and  that  certain  Expansion  Date  Acknowledgement  and  Agreement  dated  May  3,  2017            (collectively, the “Lease”), pertaining to those certain premises (the “Existing Premises”) consisting of            approximately  16,792  rentable  square  feet  of  space  known  as  Suite  G  in  the  building  (the “Building”)            having  an  address  of  1851  Lefthand  Circle,  Longmont,  Colorado.  Terms  not  otherwise  defined  herein            shall have their respective meanings set forth in the Lease.                    WHEREAS,  the  parties  desire  to  expand  the  Existing  Premises  with  additional  space  in  the            building having an address  of 1841 Lefthand Circle,  Longmont, Colorado (“1841 Building”), as further            described on Exhibit A-1 attached hereto and incorporated herein by this reference, and extend the Term            of the Lease for the Premises, as provided herein;                   WHEREAS, on or about November 14, 2019, nLIGHT, Inc., a Delaware corporation            (“Guarantor”), acquired 100% of the ownership interest in Tenant.                   WHEREAS,  the  parties  desire  to  amend  the  Lease  to  reflect  the  expansion  of  the  Existing            Premises,  extension  of  the  Term,  and  otherwise  the  amendment  of  the  Lease  in  the  manner  and  form            hereinafter set forth.                  NOW, THEREFORE, for good and valuable consideration, Landlord and Tenant hereby agree as            follows:                   1.    Landlord hereby leases to Tenant and Tenant hereby leases from Landlord, in addition to           the Existing Premises, space in the 1841 Building consisting of approximately 21,143 rentable square feet            (the “Expansion Premises”), as shown on Exhibit A hereto and made a part hereof by reference, on all of            the terms of the Lease as herein amended on the following basis:                         A.    Tenant’s  right  to  occupy  the  Expansion  Premises  and  its  obligations  under  the           Lease with respect to the Expansion Premises, including but not limited to Tenant’s obligations to pay Rent            and other charges payable pursuant to the Lease, shall commence on the earlier of (the “Expansion Date”):            (a) February 1, 2021, (b) the date the Expansion Space Improvements are substantially completed, or (c)           the date Tenant conducts the Permitted Use from the Expansion Premises. “Substantially completed” as           used in the prior sentence means that the Expansion Space Improvements have been completed to the extent           Tenant may occupy the Expansion Premises and operate the Permitted Use. The Lease, as it pertains to both           the Existing Premises and the Expansion Premises, shall terminate on the last day of the 66th whole calendar           month after the Expansion Date (the “New Expiration Date”).  As of the Expansion Date, references to           Premises in the Lease shall include the Expansion Premises, Tenant’s occupancy of the Expansion Premises           shall be subject to all terms of the Lease as herein specifically amended, and the Premises described in the           Lease shall consist of the Existing Premises and the Expansion Premises for a total of approximately 37,935           rentable square feet of space.             756069                             1 

 

DocuSign Envelope ID: E660873F-9F59-440E-81D6-ABF2AAB8C0B7                         B.    Except as expressly set forth herein, Landlord has no obligation to make or pay for           improvements or alterations to the Existing Premises or the Expansion Premises, and Tenant accepts the            Existing  Premises  and  the  Expansion  Premises  in  their  current “as  is”  condition  as  of  the  date  of  this            Amendment. Tenant shall have the right to access the Expansion Premises commencing on the date of this            Amendment  for  purposes  of  planning  and  design,  but  Tenant  shall  not  commence  construction  of  the            Expansion  Space  Improvements  in  the  Expansion  Premises  until  the  Garage  Contingency  (as  hereafter            defined) has been satisfied or waived by Tenant. No Base Rent or any other amounts owed under the Lease            for the Expansion Premises  will apply during this  early access period.  At the request of Landlord, the            parties  will  evidence  the  Expansion  Date, and  such  other  matters  set  forth  therein  in  an  agreement            substantially in the form of Exhibit B attached hereto, which agreement will contain a revised Base Rent            schedule for the Premises.                         C.    Landlord  shall  reimburse  Tenant  for  the  cost  of  improvements  to  be  made  by           Tenant to the Expansion Premises (the “Expansion Space Improvements”) up to a maximum amount of            $528,575.00 (the “Expansion Space Allowance”).  In addition to the Expansion Space Allowance, Landlord            shall reimburse Tenant for the cost of improvements to be made by Tenant to the Existing Premises (the            “Existing  Premises  Improvements”)  up  to  a  maximum  amount  of  $58,772.00  (the “Existing  Premises            Allowance”).  The Expansion Space Allowance and the Existing Premises Allowance are referred to herein            together as the “Allowance.” The Expansion Space Improvements and the Existing Premises Improvements            are referred to herein together as the “Improvements.” The Improvements shall be generally in accordance            with the 4/22/2019 plans of Hampton Architecture (“Approved Plans”). The Allowance shall be used to            pay for expenditures related to the Improvements including but not limited to costs of all labor, materials,            permits, fees, contractors and subcontractors’ charges, and, pursuant to Section 10 of the Lease, payment            of  Landlord’s supervisory  fee  in  an  amount  equal  to  $95.00  per  hour or,  if  the  Improvements  are  not            constructed by Landlord’s employees, 3% of project costs of the Improvements, plus any out of pocket            engineering and architectural review costs. All costs of the Improvements in excess of the Allowance shall            be at Tenant’s expense.  Tenant is responsible for and shall pay all costs and expenses of the Improvements            that  are  not  allowable  as  expenditures  from  the  Allowance  as  such  amounts  become  due  and  payable.            Promptly following completion of the Improvements, Tenant will deliver to Landlord a request for payment            of the Allowance, accompanied by all of the following in form and substance reasonably satisfactory to            Landlord: (a) a copy of the contract with Tenant’s general contractor which includes a plan or scope of            work to be performed; (b) duly executed unconditional lien waivers and such other affidavits, certificates,            information,  and  data  as  may  be  reasonably  requested  by  Landlord  from  all  general  contractors,            subcontractors and materialmen performing work on the Premises; (c) an itemized computation of the actual            total costs incurred by Tenant (“Actual Costs”) and paid invoices evidencing payment of the Actual Costs;            (d) final as-built plans and specifications for the Expansion Improvements; and (e) such other information           and documentation as Landlord or Landlord’s lender may reasonably request to evidence the proper, lien-           free completion of the Improvements. Unless Landlord reasonably disputes in writing Tenant’s assertion           that  the  Improvements  have  been  completed  in  accordance  with  the  provisions  of  the  Lease  as  herein           amended, within 30 days after Landlord’s receipt, review and reasonable approval of all of the foregoing,           Landlord will pay to Tenant the amount of the Actual Costs of the Improvements, up to the  maximum           amount of the Allowance.  In no event will Landlord have any obligation to reimburse Tenant for any costs           of the Improvements in  excess of the  Allowance.  Unless otherwise agreed by Landlord and Tenant in           writing, if any portion of the Allowance has not been requested by Tenant on or before the date that is 24           full calendar months from the date of this Amendment, such amount will be forfeited by Tenant to Landlord.           The Improvements shall be performed as alterations in accordance with the terms and conditions of the           Lease, including without limitation Section 10 of the Lease; provided, however, that Tenant shall have no           obligation to remove the Improvements at the end of the Term, provided such Improvements are constructed           in accordance with the Approved Plans. In addition to the Allowance, Landlord has paid the cost of the           initial space plan for the Improvements and shall pay for one revision to the space plan.             756069                             2 

 

DocuSign Envelope ID: E660873F-9F59-440E-81D6-ABF2AAB8C0B7                         D.    In addition to Tenant’s parking rights for the Existing Premises, Tenant shall have           the right to use 68 parking spaces in the parking areas for the 1841 Building, based on a parking ratio of            3.21 spaces/1,000 rentable square feet leased. Tenant’s use of the parking areas shall be subject to and in            accordance with the provisions of the Lease, as herein amended.                   2.    Tenant desires, at Tenant’s sole cost and expense, to construct a garage (the “Garage”) in           the location, size, configuration and construction as shown on Exhibit C attached hereto and incorporated            herein by this reference.  Tenant agrees to diligently pursue completion of the Garage in a manner so as to            minimize disruption to other tenants of the Building and other buildings in close proximity to the Building.            Tenant shall not be required to remove the Garage at the end of the Term provided the Garage conforms to            the specifications set forth on Exhibit C in all material aspects; provided, however, if changes to Exhibit C            are requested by Tenant and approved in writing by Landlord, Landlord shall notify Tenant of whether any            such changes will need to be removed at the time of approval if so requested in writing by Tenant. Upon            the earlier of (i) substantial completion of the Garage or (ii) upon Tenant conducting the Permitted Use            within the Garage, Tenant shall pay to Landlord, at the same times and in the same manner as Base Rent is            paid for the Premises, rent for the Garage at the initial rate of $4.00 per rentable square foot of the Garage,            which rate shall increase annually by 5%. Substantial completion as used in the prior sentence means that            the Garage has been completed to the extent Tenant may occupy the Garage and operate all or a portion of            the Permitted Use. Promptly following the date of this Amendment, Landlord, on behalf of Tenant and at            Tenant’s expense, shall use commercially reasonable efforts to obtain the site plan waiver approval (the            “Approval”) required to construct the Garage  from the City of Longmont’s Planning and Development            Services Department (the “Department”), and Tenant shall fully cooperate without  delay as reasonably            required with Landlord’s efforts to obtain the Approval, including without limitation promptly providing            all information and documentation as may be required. The cost of obtaining the Approval shall be deducted            from the Allowance, or, if the Approval is not obtained, then Tenant shall reimburse Landlord for all costs            incurred by Landlord in seeking to obtain the Approval within thirty (30) days after receipt of an invoice            from Landlord. If the Department does not issue the Approval for the construction of the Garage on or            before four (4) months after the date of this Amendment (the “Garage Contingency”), then Tenant in its            sole discretion shall have the option, upon delivery of written notice to Landlord within seven (7) days after            the end of such 4-month period, to elect to declare this Amendment null and void and of no further effect,            provided the Lease shall remain in full force and effect without regard to this Amendment. Upon issuance            of the Approval, the contingency set forth in this Section 2 shall be deemed satisfied.                     3.    Until the Expansion Date, Tenant shall continue to pay Base Rent for the Existing Premises           pursuant to the terms of the Lease. Commencing on the Expansion Date, Tenant shall pay Base Rent for            the Existing Premises pursuant to the terms of the Lease and, notwithstanding anything contained in the            Lease to the contrary, in accordance with the following schedule:                                           Period                  Annual PSF   Monthly Base                                                                                 Rent                         Expansion Date through Month 12           $12.00      $16,792.00                         Month 13 through Month 24                 $12.50      $17,491.67                         Month 25 through Month 36                 $13.00      $18,191.33                         Month 37 through Month 48                 $13.50      $18,891.00                         Month 49 through New Expiration Date      $14.00      $19,590.67            The Lease shall continue for the Existing Premises through the New Expiration Date.  As of August 1,            2022, the Base Rent rate for the Existing Premises shall be payable at the then current rate of Base Rent for            the Expansion Premises, and shall increase at the same times and in the same amounts as for the Expansion            Premises through the New Expiration Date.  The final Base Rent Schedule for the Premises (inclusive of            the  Existing  Premises  and  the  Expansion  Premises)  shall  be  set  forth  in  the  Expansion  Date              756069                             3 

 

DocuSign Envelope ID: E660873F-9F59-440E-81D6-ABF2AAB8C0B7             Acknowledgment and Agreement. In consideration for the increase in Base Rent applicable to the Existing            Premises,  in  addition  to  the  Allowance,  Landlord  provide  Tenant  with  an  additional  allowance  in  the            amount of $79,720.02 (the “Additional Allowance”), which may be used for Improvements and is payable            by Landlord in the same manner as the Allowance; provided, however, any amount not used by Tenant for            the cost of Improvements may, upon Tenant’s written notice to Landlord, be applied as a credit toward Base            Rent payments first coming due after Tenant’s notice.  The Additional Allowance is based on the actual            number of months of increased Base Rent for the Existing Premises, and if the Expansion Date does not            occur on or before February 1, 2021, then the Additional Allowance is subject to proportionate reduction.            Unless otherwise agreed by Landlord and Tenant in writing, if any portion of the Allowance has not been            requested by Tenant on or before the date that is 24 full calendar months from the date of this Amendment,            such amount will be forfeited by Tenant to Landlord.                   4.    Commencing on the Expansion Date, in addition to Base Rent for the Existing Premises,           Tenant shall pay Base Rent for the Expansion Premises pursuant to the terms of the Lease, in accordance            with the following schedule:                              Period                     Annual PSF       Monthly Base Rent             Expansion Date through Month 12*             $12.00            $21,143.00*             Month 13 through Month 24                    $12.50            $22,023.96             Month 25 through Month 36                    $13.00            $22,904.92             Month 37 through Month 48                    $13.50            $23,785.88             Month 49 through New Expiration Date         $14.00            $24,666.83             *Notwithstanding anything to the contrary, Tenant may abate the payment of Base Rent (but not any other           charges payable by Tenant pursuant to the Lease) for the first 6 months following the Expansion Date (the           “Abated Rent Period”).  Rents payable hereunder are allocable to, and will be accrued by the parties during,           their fiscal periods in which the same is actually paid.  No portion of the Rent paid by Tenant during periods           after the expiration of the Abated Rent Period will be allocated to such Abated Rent Period, nor is such           Rent intended to be allocable to the Abated Rent Period.  If at any time during the Term, an event of default           by Tenant occurs, Tenant owes Landlord, in addition to all other amounts, the unamortized portion of the           Rent abated hereunder, such amortization to be on a straight-line basis over the period commencing on the           Expansion Date and continuing  through the New Expiration Date. Tenant has no  obligation to pay the           abated amounts if no event of default by Tenant occurs prior to the expiration of the Term.                  5.    In addition to Base Rent for the Premises, Tenant shall be obligated to pay all other charges           payable  by  Tenant  for  the  Premises  (inclusive  of  the  Existing  Premises  and  the  Expansion  Premises),            including without limitation utilities and Tenant’s Share of all Operating Costs, Taxes, insurance, and other            sums payable by Tenant in accordance with the Lease for both the Building and the 1841 Building.  For            periods on and after the Expansion Date, Tenant’s Share of the 1841 Building shall mean 71.429%. In the            event the Garage  is constructed, the Building  will be  remeasured by Landlord’s architect and Tenant’s            Share shall include the Garage and be adjusted based on the new rentable square footage of the Building.                    6.    Upon  execution  of  this  Amendment,  Tenant  shall  deposit  with  Landlord  an  additional           amount equal to $15,503.93 to be added to the existing Security Deposit being held by Landlord in the            amount of $46,728.97. Thereafter, Landlord shall hold the Security Deposit in the amount of $62,232.90            for the duration of the Term as it may be extended.                   7.    Concurrently  with  the  execution  and  delivery  of  this  Amendment  by  Tenant,  and  as  a           condition to the effectiveness of this Amendment, Tenant shall deliver to Landlord a Guaranty in the form            attached hereto as Exhibit D executed by Guarantor.                756069                             4 

 

DocuSign Envelope ID: E660873F-9F59-440E-81D6-ABF2AAB8C0B7                   8.    This Amendment shall not affect the Option to extend the Term of the Lease granted to           Tenant in paragraph 1 of the Addendum; provided, however, Tenant shall have two (2) Options to extend            the Term of the Lease for a period of five (5) years each, and each Option shall apply to the Premises,            inclusive of the Existing Premises and the Expansion Premises.  All other terms and conditions set forth in            paragraph 1 of the Addendum shall apply to each of said Options.                   9.    Subject to the Prior Rights (as hereafter defined), Tenant shall have a continuous and on-           going Right of First Offer (“ROFO”) to lease any rentable space in the Building or the 1841 Building that            is contiguous and adjacent to the Premises (the “ROFO Space”) which becomes available after the date of            this Amendment, subject to and in accordance with the terms and conditions of this Section 8.                         A.    If  any  portion  of  the  ROFO  Space  becomes  available  and  Landlord  intends  to           market the ROFO Space for leasing to third parties from time to time, Landlord shall give notice thereof to            Tenant in each such instance (“Offer Notice”).  Each Offer Notice shall provide that the ROFO Space will            be offered to Tenant upon the provisions that Landlord would offer to lease the ROFO Space to third parties.            Such provisions will include, among other things, escalations and pass-throughs.  Tenant has 7 days after            receiving an Offer Notice within which to notify Landlord whether it elects to lease the ROFO Space, which            election must be upon the terms and for all space included in the Offer Notice.                         B.    Landlord’s obligation to offer ROFO Space to Tenant is subordinate to all rights           of extension, expansion, or first offer or refusal as to the ROFO Space in favor of the tenants under existing            leases as of the date of this Lease and is subordinate to the option of Landlord to extend the existing lease            of any current tenant of any ROFO Space, whether or not such tenant’s lease expressly provides for such            extension option (“Prior Rights”).                         C.    If Tenant does not timely notify Landlord of its election to lease the ROFO Space           offered under the applicable Offer Notice,  it  will be  conclusively presumed that Tenant has waived its            ROFO as to the ROFO Space offered under the applicable Offer Notice, and Landlord shall be free to lease            the ROFO Space offered under the applicable Offer Notice to a third party upon such terms as Landlord            and the third party agree.                          D.    Upon  exercise  of  any  ROFO,  the  ROFO  Space  will  be  deemed  added  to  the           Premises and Tenant will accept such space in its “as is” condition without any remodeling or fix-up work            performed by Landlord, except to the extent set forth in the Offer Notice. All costs of preparing any ROFO            Space for Tenant’s occupancy, including costs of compliance with applicable laws will be paid by Tenant,            except to the extent set forth in the Offer Notice.  After exercise of any ROFO, the parties will execute an            amendment to the Lease evidencing the addition of such ROFO Space.                         E.    Tenant’s right to exercise any ROFO is conditioned on: (i) no event of default by           Tenant existing at the time it exercises the ROFO or on the date that Tenant’s occupancy of the ROFO            Space is scheduled to commence; (ii) there having been no more than 2 uncured events of default by Tenant            during the Term; (iii) Tenant not having vacated the Premises or assigned its interest in the Lease, except            to a Permitted Transferee; and (iv) Tenant not having first sublet the Premises or any portion thereof from            and after the date of the Offer Notice. This ROFO is personal to Tenant and may not be assigned (except            to a Permitted Transferee). In the  event of such an assignment  of the Lease (other than to a Permitted            Transferee) or a subletting or vacation of any portion  of the Premises, or if there has been more than 2            uncured Events of Default by Tenant during the Term, the ROFO shall be deemed null and void and of no            further force or effect.              756069                             5 

 

DocuSign Envelope ID: E660873F-9F59-440E-81D6-ABF2AAB8C0B7                         F.    All notifications contemplated by this Section 8, whether from Tenant to Landlord,           or from Landlord to Tenant, must be in writing and given in the manner provided for notices in this Lease.                   10.   Tenant hereby represents and warrants to Landlord that it has not engaged any broker in           connection with the negotiation and/or execution of this Amendment other than JLL (“Tenant’s Broker”),            who has acted as Tenant’s agent. Tenant has no knowledge of any broker’s involvement in this transaction,            other than Sentinel Management, Inc. (“Landlord’s Broker”), who has acted as Landlord’s agent. Landlord            shall pay those commissions regarding this Amendment owed to Tenant’s Broker and/or Landlord’s Broker            pursuant to a separate agreement.  Tenant will indemnify Landlord against any claim or expense (including,            without limitation, attorneys’ fees) paid or incurred by Landlord as a result of any claim for commissions            or fees by any broker, finder, or agent, whether or not meritorious, employed by Tenant or claiming by,            through or under Tenant other than Tenant’s Broker.  Landlord will indemnify Tenant against any claim or            expense (including, without limitation, attorneys’ fees) paid or incurred by Tenant as a result of any claim            for commissions or fees by any broker, finder, or agent, whether or not meritorious, employed by Landlord            or claiming by, through or under Landlord.                     11.   The 1841 Building has two existing 120/208 volt transformers. One transformer is 750kw           and  the  second  transformer  is  500kw.  Tenant  shall  have  access  to  all  1250kw  except  for  one  400amp            120/208 volt electrical panel.                    12.   In Section 10 (Alterations – Changes and Additions – Responsibility – No Holes in Roof           – No Equipment on Roof) of the Lease, the second to last sentence of the second paragraph shall be deleted           in its entirety and replaced with the following in lieu thereof:                        If within 20 days after such plans and specifications are submitted by Tenant to Landlord                         for such approval, Landlord shall have not given Tenant notice of disapproval, stating the                         reason for such disapproval, Tenant may deliver a second request for approval to Landlord                        which request shall clearly state in large bold letters that failure to respond within ten (10)                        days shall be deemed approval, and if Landlord fails to respond within such 10-day period,                        then such plans and specifications shall be considered approved by Landlord.                    13.   In Section 22.1.3 (Default Defined) of the Lease, “10 days” shall be deleted and replaced           with “15 days”.                     14.   Notwithstanding  anything  to  the  contrary  in  the  Lease,  if  this  Lease  is  junior  to  any           mortgage or deed of trust, prior to the Expansion Date, Landlord shall request a subordination, attornment            and non-disturbance agreement to be entered into with Tenant from all such holders of a mortgage or deed            of trust, on such holders’ standard form (“SNDA”).                    15.   Tenant’s parent company is Guarantor, which is a publicly traded company. So long as           Guarantor remains a publicly traded company, Section 30 of the Lease is hereby modified to the effect that            if Landlord requests financial statements or other financial information from Tenant, the request will be            satisfied if Tenant provides publicly available financial information of Guarantor.                   15.   Section 38.3 (Substitute Premises) of the Lease is hereby deleted in its entirety.                  16.   If there is any conflict between the terms of this Amendment and the terms of the Lease,           the terms of this Amendment govern.  The Lease as hereby amended is in full force and effect, is hereby            ratified and affirmed by the parties, and is binding upon the parties in accordance with its terms.                   17.   Time is of the essence herein.            756069                             6 

 

DocuSign Envelope ID: E660873F-9F59-440E-81D6-ABF2AAB8C0B7             IN WITNESS WHEREOF, the parties have executed this Amendment as of the day and year below and it            is effective as of the date first above written.              NUTRONICS, INC., a Nevada corporation                                                    GCC LONGMONT HOLDINGS, LIMITED                                                    PARTNERSHIP, a Delaware limited partnership              By:                                    By:   GCC Longmont Holdings GP, Inc.,              Name:  Jeff Barchers                         a Delaware corporation, its General Partner             Title:  VP/CTO                            7/1/2020                By:             Date of Signature: __________________  Name:   Dave Kristen                                                   Title:  Managing Partner                           “Tenant”                                                    Date of Signature: __________________7/1/2020                                                                  “Landlord”              756069                             7 

 

DocuSign Envelope ID: E660873F-9F59-440E-81D6-ABF2AAB8C0B7                                                                             Exhibit A                                                                     Expansion Premises                    756069                                                     8 

 

DocuSign Envelope ID: E660873F-9F59-440E-81D6-ABF2AAB8C0B7                                               Exhibit A-1                                             1841 Building             LOT 1F, LONGS PEAK INDUSTRIAL PARK-MINOR SUBDIVISION “F”, THE PLAT OF WHICH            WAS RECORDED FEBRUARY 28, 1983 ON FILM 1241 AS RECEPTION NO. 535391 UNDER            PLAN FILE NO. P-13, F-3, #10,             CITY OF LONGMONT,             COUNTY OF BOULDER,             STATE OF COLORADO.               756069                             9 

 

DocuSign Envelope ID: E660873F-9F59-440E-81D6-ABF2AAB8C0B7                                                Exhibit B                            Form of Expansion Date Acknowledgement and Agreement                                Expansion Date Acknowledgment and Agreement             This  Expansion  Date  Acknowledgment  and  Agreement  (“Agreement”)  is  an  acknowledgment  of  the            Expansion Date as defined in the Third Amendment to Lease (“Amendment”) and intended to be a part of            that certain Lease for premises  located at  1841 and 1851 Lefthand Circle, Longmont, Colorado, which            Amendment was effective on the ____ day of ___________, 2020, by GCC LONGMONT HOLDINGS,            LIMITED  PARTNERSHIP,  a  Delaware  limited  partnership,  as  Landlord,  and  NUTRONICS,  INC.,  a            Nevada corporation, as Tenant.             Landlord and Tenant hereby agree that:             1.    Tenant acknowledges that both the 1851 Building, the 1841 Building and the Premises (inclusive           of the Existing Premises and the Expansion Premises) are satisfactory in all respects.            2.    Tenant took possession of the Expansion Premises on , _____.  Tenant hereby agrees to            pay partial month’s Base Rent in the amount of $_____ (___ days at $___ per diem).             3.    The Expansion Date of the Lease is hereby agreed to be the ____ day of the month of ________,           ________. The New Expiration Date is hereby agreed to be the last day of the month of ________, 20___.            4.    Tenant shall pay Base Rent for the Premises pursuant to the terms of the Lease and in accordance           with the following schedule:                                   Period                       Annual PSF   Monthly Base                                                                                 Rent             __________, 20__ - __________, 20__                  $______    $____________             __________, 20__ - __________, 20__                  $______    $____________             __________, 20__ - __________, 20__                  $______    $____________             __________, 20__ - __________, 20__                  $______    $____________             __________, 20__ - __________, 20__                  $______    $____________             __________, 20__ - __________, 20__                  $______    $____________             __________, 20__ - __________, 20__                  $______    $____________             All other terms and conditions of the Lease are hereby ratified and acknowledged to be unchanged.              756069                             10 

 

DocuSign Envelope ID: E660873F-9F59-440E-81D6-ABF2AAB8C0B7             Agreed and executed this _______ day of         , 2020.             LANDLORD:                           GCC LONGMONT HOLDINGS, LIMITED                                                PARTNERSHIP, a Delaware limited partnership                                                 By:   GCC Longmont Holdings GP, Inc., a Delaware                                                      corporation, its General Partner                                                  By                                                Title:_____________________________             TENANT:                             NUTRONICS, INC.,                                                 a Nevada corporation                                                 By                                                Title              756069                             11 

 

DocuSign Envelope ID: E660873F-9F59-440E-81D6-ABF2AAB8C0B7                                                                             Exhibit C                                                                     Garage Specifications                    756069                                                    12 

 

DocuSign Envelope ID: E660873F-9F59-440E-81D6-ABF2AAB8C0B7                                                Exhibit D                                           Form of Guaranty                                                Guaranty                                                 7/1/2020                 THIS GUARANTY is executed as of _________________, by nLIGHT, Inc., a Delaware            corporation ("Guarantor").                                           W I T N E S S E T H :                  GCC LONGMONT HOLDINGS, LIMITED PARTNERSHIP, a Delaware limited partnership            ("Landlord"), is willing to execute that certain Third Amendment to Lease dated ____________,July 1st  2020 (the            "Third Amendment"), to that certain Lease dated July 3, 2014, including that certain Addendum            (“Addendum”), with Nutronics, Inc., a Nevada corporation (“Tenant”), as amended by that certain First            Amendment to Lease dated August 4, 2016, that certain Second Amendment to Lease dated November 2,            2016, and that certain Expansion Date Acknowledgement and Agreement dated May 3, 2017 (collectively,            the “Lease”), pertaining to those certain premises (the “Existing Premises”) consisting of approximately            16,792 rentable square feet of space known as Suite G in the building (the “Building”) having an address            of 1851 Lefthand Circle, Longmont, Colorado on condition of receiving this Guaranty;                   NOW, THEREFORE, for and in consideration of Landlord's execution and delivery of the Third            Amendment and for other good and valuable consideration, the receipt and sufficiency of which is            acknowledged by Guarantor, Guarantor hereby agrees as follows:                   1.    Guarantor represents and warrants to Landlord that:                       A.    Guarantor is financially interested in Tenant.                       B.    The  financial  information  provided  to  Landlord  by  Tenant  and  Guarantor  is           accurate for the periods shown and there has been no material adverse change since such dates in either            Tenant  or  Guarantor.  Any  financial  information  shall  be  provided  under  a  standard  non-disclosure            agreement among Landlord, Tenant and Guarantor.                  2.    Guarantor unconditionally and irrevocably guarantees the prompt and faithful performance           of all provisions of the Lease by Tenant and any assignee and any Permitted Occupant of Tenant, including,            but not limited to, payment of all rent and other sums due Landlord.  Guarantor waives each and every            notice to which Guarantor may be entitled under the Lease, or otherwise, and consents to any extension of            time,  leniency,  waiver,  forbearance,  or  any  amendment  which  may  be  made  in  the  Lease,  and  no            amendment,  waiver,  or  forbearance  will  release  Guarantor  from  any  liability  or  obligation  hereby            guaranteed.  Notwithstanding anything contained herein to the contrary, in the event of an assignment of            the Lease by the original Tenant to an entity having a net worth, as reasonably determined by Landlord, of            not less than Guarantor's as of the effective date of such assignment or as of the date of this Guaranty,            whichever is higher, and such entity is otherwise approved by Landlord in writing in accordance with the            terms and conditions of the Lease, then, provided such entity assumes Tenant's obligations under the Lease            in a writing acceptable to Landlord and there has been no default by Tenant under the Lease prior to the            date of such assignment, Guarantor's liability under the Lease for the obligations of such assignee-entity            under the Lease from and after the effective date of such assignment shall terminate; provided, however,            Guarantor  shall  remain  liable  for  all  obligations  of  Tenant  arising  prior  to  the  effective  date  of  such            assignment and such obligations shall survive such termination. In no event shall Guarantor be released            from  liability  under  this  Guaranty  in  the  event  of  an  assignment  under  the  Lease  that  does  not  require            Landlord's consent.                    3.    If an event of default (as defined in the Lease) by Tenant occurs, Landlord may commence           suit against Guarantor and/or exercise any available remedy at law or equity to enforce the provisions of              756069                             13 

 

DocuSign Envelope ID: E660873F-9F59-440E-81D6-ABF2AAB8C0B7             this Guaranty without first commencing any suit or otherwise proceeding against Tenant or exhausting its            remedies against Tenant.  This is a guaranty of payment and performance and not a guaranty of collection;            Guarantor's liability under this Guaranty is primary.  Landlord's rights shall not be exhausted by its exercise            of any remedies or by any number of successive suits until and unless all obligations hereby guaranteed            have been fully performed.                   4.    Landlord and Guarantor each waives any right to a trial by jury in suits arising out of or           concerning the provisions of this Guaranty.  If any suit is commenced by Landlord to enforce this Guaranty,            the prevailing party shall recover all reasonable costs incurred in connection therewith, including reasonable            attorneys' fees.                   5.    No payment by Guarantor except full payment and performance shall entitle Guarantor by           subrogation or otherwise, to any payment by Tenant under or out of the property of Tenant.                  6.    This Guaranty inures to the benefit of Landlord, its successors and assigns and shall be           binding upon the heirs, personal representatives, successors, and assigns of Guarantor.                  7.    The liability of Guarantor is not affected by, and Guarantor expressly waives any defenses           by reason of, (a) the release or discharge of Tenant in any bankruptcy or other proceedings; (b) the limitation            or cessation of the liability of Tenant; (c) the rejection or disaffirmance of the Lease in any proceeding; (d)            amendment, assignment or transfer of the Lease by Tenant; or (e) any disability or other defense of Tenant.                  8.    Guarantor agrees that if Tenant files a petition for relief under any provisions of the Federal           Bankruptcy Code, or any similar law, if such a petition filed by creditors of Tenant is approved by a Court,            or if any Court appoints a receiver tenant to operate, including Tenant's obligations under the Lease and/or            a substantial part of Tenant's property:                               (a)   if  the  Lease  is  terminated  or  rejected,  or  the  obligations  of  Tenant  are           modified, Landlord has the option either (i) to require Guarantor to execute and deliver to Landlord a new            lease as tenant for the balance of the term and containing the same provisions as the Lease, or (ii) to recover            from Guarantor that which Landlord would have been entitled to recover from Tenant upon a termination            of the Lease due to a default by Tenant even though Landlord may not be entitled to recover the same from            Tenant in such proceeding; and                              (b)   if any obligation under the Lease is performed by Tenant and any part of           such performance is avoided or recovered from Landlord as a preference, fraudulent transfer or otherwise,            the liability of Guarantor under this Guaranty shall remain in effect.                   9.    This Guaranty will be governed by the internal laws of the State of Colorado and shall be           deemed executed in the City and County of Denver.  Guarantor consents to and submits to the jurisdiction            of the federal and state courts located in Denver, Colorado, and any suit shall be brought in a federal or            state court located in Denver, Colorado, with appropriate jurisdiction over the subject matter.  Guarantor            waives  any  defenses  based  on  the  venue,  inconvenience  of  the  forum,  lack  of  personal  jurisdiction,            sufficiency of service of process or the like in any suit brought as aforesaid.                                                   nLIGHT, Inc., a Delaware corporation                                                 By:___________________________                                                Its:___________________________Chief Financial Officer                                                      "Guarantor"              756069                             14lamr-ex102_170.htm

Exhibit 10.2

 

SECOND AMENDMENT TO THE 

RECEIVABLES FINANCING AGREEMENT

 

This SECOND AMENDMENT TO THE RECEIVABLES FINANCING AGREEMENT (this “Amendment”), dated as of May 6, 2020, is entered into by and among the following parties:

	
 
	
(i)
	
LAMAR TRS RECEIVABLES, LLC, a Delaware limited liability company, as a Borrower (the “TRS Borrower”);

	
 
	
(ii)
	
LAMAR QRS RECEIVABLES, LLC, a Delaware limited liability company, as a Borrower (the “QRS Borrower”; together with the TRS Borrower, collectively, the “Borrowers”);

	
 
	
(iii)
	
LAMAR MEDIA CORP., a Delaware corporation, as initial Servicer; and

	
 
	
(iv)
	
PNC BANK, NATIONAL ASSOCIATION (“PNC”), as Administrative Agent and as Lender.

Capitalized terms used but not otherwise defined herein (including such terms used above) have the respective meanings assigned thereto in the Receivables Financing Agreement described below.

BACKGROUND

A.The parties hereto have entered into a Receivables Financing Agreement, dated as of December 18, 2018 (as amended, restated, supplemented or otherwise modified through the date hereof, the “Receivables Financing Agreement”).

B.Concurrently herewith, the QRS Borrower, as buyer, the Servicer, as servicer and as an originator, and the various originators party thereto, are entering into that certain Second Amendment to the Purchase and Sale Agreement, dated as of the date hereof (the “PSA Amendment”).

C.The parties hereto desire to amend the Receivables Financing Agreement as set forth herein.

NOW THEREFORE, with the intention of being legally bound hereby, and in consideration of the mutual undertakings expressed herein, each party to this Amendment hereby agrees as follows:

SECTION 1.Amendments to the Receivables Financing Agreement.  The Receivables Financing Agreement is hereby amended to incorporate the changes shown on the marked pages of the Receivables Financing Agreement attached hereto as Exhibit A.

SECTION 2.Representations and Warranties of the Borrowers and the Servicer.  Each Borrower and the Servicer hereby represent and warrant to each of the parties hereto as of the date hereof as follows:

(a)Representations and Warranties.  The representations and warranties made by it in the Receivables Financing Agreement and each of the other Transaction Documents to which it is a party are true and correct in all material respects as of the date hereof unless such representations and warranties by their terms refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date.

(b)Enforceability.  The execution and delivery by it of this Amendment, and the performance of its obligations under this Amendment, the PSA Amendment, the Receivables Financing Agreement (as amended hereby) and the other Transaction Documents to which it is a party are within its organizational powers and have been duly authorized by all necessary action on its part, and this Amendment, the PSA Amendment, the Receivables Financing Agreement (as amended hereby) and the other Transaction Documents to which it is a party are (assuming due authorization and execution by the other parties thereto) its valid and legally binding obligations, enforceable in accordance with their terms, except (i) as such 

	
 
	
 
	
 

 

 

 

enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) as such enforceability may be limited by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law.

(c)No Event of Default.  No Event of Default or Unmatured Event of Default has occurred and is continuing, or would occur as a result of this Amendment, the  PSA Amendment or the transactions contemplated hereby or thereby.

SECTION 3.Effect of Amendment; Ratification.  All provisions of the Receivables Financing Agreement and the other Transaction Documents, as expressly amended and modified by this Amendment, shall remain in full force and effect.  After this Amendment becomes effective, all references in the Receivables Financing Agreement (or in any other Transaction Document) to “this Receivables Financing Agreement”, “this Agreement”, “hereof”, “herein” or words of similar effect referring to the Receivables Financing Agreement shall be deemed to be references to the Receivables Financing Agreement as amended by this Amendment. This Amendment shall not be deemed, either expressly or impliedly, to waive, amend or supplement any provision of the Receivables Financing Agreement other than as set forth herein.  The Receivables Financing Agreement, as amended by this Amendment, is hereby ratified and confirmed in all respects.

SECTION 4.Effectiveness.  This Amendment shall become effective as of the date hereof, subject to the conditions precedent that the Administrative Agent shall have received the following:  

(a)counterparts to this Amendment executed by each of the parties hereto;

(b)counterparts to the PSA Amendment executed by each of the parties thereto; 

(c)a pro forma Information Package; and

(d)the other agreements, documents, instruments, UCC financing statements, secretary certificates, lien searches and opinions listed on Annex A hereto. 

SECTION 5.Severability.  Any provisions of this Amendment which are prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

SECTION 6.Transaction Document.  This Amendment shall be a Transaction Document for purposes of the Receivables Financing Agreement.

SECTION 7.Counterparts.  This Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement.  Delivery of an executed counterpart hereof by facsimile or other electronic means shall be equally effective as delivery of an originally executed counterpart.

SECTION 8.GOVERNING LAW AND JURISDICTION. 

(a)THIS AMENDMENT, INCLUDING THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE 

	
 
	
2
	
 

 

 

STATE OF NEW YORK, BUT WITHOUT REGARD TO ANY OTHER CONFLICTS OF LAW PROVISIONS THEREOF).

(b)EACH PARTY HERETO HEREBY IRREVOCABLY SUBMITS TO (I) WITH RESPECT TO EACH BORROWER AND THE SERVICER, THE EXCLUSIVE JURISDICTION, AND (II) WITH RESPECT TO EACH OF THE OTHER PARTIES HERETO, THE NON-EXCLUSIVE JURISDICTION, IN EACH CASE, OF ANY NEW YORK STATE OR FEDERAL COURT SITTING IN NEW YORK CITY, NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AMENDMENT, AND EACH PARTY HERETO HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING (I) IF BROUGHT BY ANY BORROWER, THE SERVICER OR ANY AFFILIATE THEREOF, SHALL BE HEARD AND DETERMINED, AND (II) IF BROUGHT BY ANY OTHER PARTY TO THIS AMENDMENT MAY BE HEARD AND DETERMINED, IN EACH CASE, IN SUCH NEW YORK STATE COURT OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT.  NOTHING IN THIS SECTION 8 SHALL AFFECT THE RIGHT OF THE ADMINISTRATIVE AGENT OR ANY OTHER CREDIT PARTY TO BRING ANY ACTION OR PROCEEDING AGAINST ANY BORROWER OR THE SERVICER OR ANY OF THEIR RESPECTIVE PROPERTY IN THE COURTS OF OTHER JURISDICTIONS.  EACH BORROWER AND THE SERVICER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING.  THE PARTIES HERETO AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.

SECTION 9.Section Headings.  The various headings of this Amendment are included for convenience only and shall not affect the meaning or interpretation of this Amendment, the Receivables Financing Agreement or any provision hereof or thereof.

SECTION 10.Performance Guaranty Ratification.  After giving effect to this Amendment and the PSA Amendment and the transactions contemplated hereby and thereby, (i) each of the New Originators shall constitute “Covered Entities” for purposes of the Performance Guaranty, (ii) all of the provisions of the Performance Guaranty shall remain in full force and effect and (iii) the Performance Guarantor hereby ratifies and affirms the Performance Guaranty and acknowledges that the Performance Guaranty has continued and shall continue in full force and effect in accordance with its terms.

[Signature pages follow]

 

	
 
	
3
	
 

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment by their duly authorized officers as of the date first above written.

	
 
	
LAMAR TRS RECEIVABLES, LLC,

	
 
	
as a Borrower

	
 
	
 

	
 
	
By: /s/ Jay L. Johnson
	
 
	
 

	
 
	
Name: Jay L. Johnson

	
 
	
Title: Executive Vice President, Chief Financial Officer

	
 
	
 

	
 
	
LAMAR QRS RECEIVABLES, LLC,

	
 
	
as a Borrower

	
 
	
 

	
 
	
By: /s/ Jay L. Johnson
	
 
	
 

	
 
	
Name: Jay L. Johnson

	
 
	
Title: Executive Vice President, Chief Financial Officer

	
 
	
 

	
 
	
LAMAR MEDIA CORP.,

	
 
	
as the Servicer

	
 
	
 

	
 
	
By: /s/ Jay L. Johnson
	
 
	
 

	
 
	
Name: Jay L. Johnson

	
 
	
Title: Executive Vice President, Chief Financial Officer

 

	
 
	
S-1
	
Second Amendment to the Receivables Financing Agreement

 

 

 

	
 
	
PNC BANK, NATIONAL ASSOCIATION,

	
 
	
as Administrative Agent

	
 
	
 

	
 
	
 

	
 
	
By: /s/ Michael Brown

	
 
	
Name: Michael Brown

	
 
	
Title: Senior Vice President

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
PNC BANK, NATIONAL ASSOCIATION,

	
 
	
as a Lender

	
 
	
 

	
 
	
 

	
 
	
By: /s/ Michael Brown

	
 
	
Name: Michael Brown

	
 
	
Title: Senior Vice President

 

	
 
	
S-2
	
Second Amendment to the Receivables Financing Agreement

 

 

 

	
Acknowledged and agreed:

 

LAMAR MEDIA CORP., 
as Performance Guarantor

 

 

 

By: /s/ Jay L. Johnson
Name: Jay L. Johnson
Title: Executive Vice President, Chief Financial Officer

 

 

	
 
	
S-3
	
Second Amendment to the Receivables Financing Agreement

 

 

 

Exhibit A

(attached)

 

 

 

 

 

 

EXECUTION COPYVERSION

EXHIBIT A to

FirstSecond Amendment to Receivables Financing Agreement, dated as of FebruaryMay 6, 2020

 

RECEIVABLES FINANCING AGREEMENT

Dated as of December 18, 2018

by and among

THE PERSONS FROM TIME TO TIME PARTY HERETO, 

as Borrowers,

THE PERSONS FROM TIME TO TIME PARTY HERETO,

as Lenders,

PNC BANK, NATIONAL ASSOCIATION, 
as Administrative Agent,

LAMAR MEDIA CORP., 
as initial Servicer,

and

PNC CAPITAL MARKETS LLC, 
as Structuring Agent

 

 

 

 

 

 

TABLE OF CONTENTS

 

	
 
	
 
	
 
	
Page

	
 
	
 
	
 
	
 

	
ARTICLE I
	
DEFINITIONS
	
1

	
 
	
SECTION 1.01.
	
Certain Defined Terms
	
1

	
 
	
SECTION 1.02.
	
Other Interpretative Matters
	
3435

	
ARTICLE II
	
 
	
TERMS OF THE LOANS
	
3536

	
 
	
SECTION 2.01.
	
Loan Facility
	
3536

	
 
	
SECTION 2.02.
	
Making Loans; Repayment of Loans
	
3536

	
 
	
SECTION 2.03.
	
Interest and Fees
	
3739

	
 
	
SECTION 2.04.
	
Records of Loans
	
3839

	
 
	
SECTION 2.05.
	
Selection of Interest Rates and Tranche Periods
	
3839

	
 
	
SECTION 2.06.
	
Borrowers Jointly and Severally Liable for Obligations
	
3840

	
 
	
SECTION 2.07.
	
Defaulting Lenders
	
4243

	
ARTICLE III
	
[RESERVED]
	
4344

	
ARTICLE IV
	
SETTLEMENT PROCEDURES AND PAYMENT PROVISIONS
	
4344

	
 
	
SECTION 4.01.
	
Settlement Procedures
	
4344

	
 
	
SECTION 4.02.
	
Payments and Computations, Etc
	
4647

	
ARTICLE V
	
INCREASED COSTS; FUNDING LOSSES; TAXES; ILLEGALITY AND SECURITY INTEREST
	
4647

	
 
	
SECTION 5.01.
	
Increased Costs
	
4647

	
 
	
SECTION 5.02.
	
Funding Losses
	
4849

	
 
	
SECTION 5.03.
	
Taxes
	
4849

	
 
	
SECTION 5.04.
	
Inability to Determine Adjusted LIBOR or LMIR; Change in Legality
	
5253

	
 
	
SECTION 5.05.
	
Security Interest
	
5354

	
 
	
SECTION 5.06.
	
Successor Adjusted LIBOR or LMIR
	
5455

	
ARTICLE VI
	
CONDITIONS TO EFFECTIVENESS AND CREDIT EXTENSIONS
	
5556

	
 
	
SECTION 6.01.
	
Conditions Precedent to Effectiveness and the Initial Credit Extension
	
5556

	
 
	
SECTION 6.02.
	
Conditions Precedent to All Credit Extensions
	
5556

	
 
	
SECTION 6.03.
	
Conditions Precedent to All Releases
	
56

	
ARTICLE VII
	
REPRESENTATIONS AND WARRANTIES
	
5657

	
 
	
SECTION 7.01.
	
Representations and Warranties of the Borrowers
	
5657

	
 
	
SECTION 7.02.
	
Representations and Warranties of the Servicer
	
62

	
ARTICLE VIII
	
COVENANTS
	
6566

	
 
	
SECTION 8.01.
	
Covenants of the Borrowers
	
6566

	
 
	
SECTION 8.02.
	
Covenants of the Servicer
	
7576

	
 
	
SECTION 8.03.
	
Separate Existence of the Borrowers
	
8384

 

 

 

 

	
ARTICLE IX
	
ADMINISTRATION AND COLLECTION OF RECEIVABLES
	
8788

	
 
	
SECTION 9.01.
	
Appointment of the Servicer
	
8788

	
 
	
SECTION 9.02.
	
Duties of the Servicer
	
8889

	
 
	
SECTION 9.03.
	
Collection Account Arrangements
	
8890

	
 
	
SECTION 9.04.
	
Enforcement Rights
	
8990

	
 
	
SECTION 9.05.
	
Responsibilities of the Borrowers
	
9293

	
 
	
SECTION 9.06.
	
Servicing Fee
	
9293

	
ARTICLE X
	
EVENTS OF DEFAULT
	
9294

	
 
	
SECTION 10.01.
	
Events of Default
	
9294

	
ARTICLE XI
	
THE ADMINISTRATIVE AGENT
	
9698

	
 
	
SECTION 11.01.
	
Authorization and Action
	
9698

	
 
	
SECTION 11.02.
	
Administrative Agent’s Reliance, Etc
	
9798

	
 
	
SECTION 11.03.
	
Administrative Agent and Affiliates
	
9798

	
 
	
SECTION 11.04.
	
Indemnification of Administrative Agent
	
9799

	
 
	
SECTION 11.05.
	
Delegation of Duties
	
9899

	
 
	
SECTION 11.06.
	
Action or Inaction by Administrative Agent
	
9899

	
 
	
SECTION 11.07.
	
Notice of Events of Default; Action by Administrative Agent
	
9899

	
 
	
SECTION 11.08.
	
Non-Reliance on Administrative Agent and Other Parties
	
9899

	
 
	
SECTION 11.09.
	
Successor Administrative Agent
	
99100

	
 
	
SECTION 11.10.
	
Structuring Agent
	
99100

	
 
	
SECTION 11.11.
	
LIBOR Notification
	
100

	
ARTICLE XII
	
[RESERVED]
	
99101

	
ARTICLE XIII
	
INDEMNIFICATION
	
99101

	
 
	
SECTION 13.01.
	
Indemnities by the Borrowers
	
99101

	
 
	
SECTION 13.02.
	
Indemnification by the Servicer
	
103104

	
ARTICLE XIV
	
MISCELLANEOUS
	
105106

	
 
	
SECTION 14.01.
	
Amendments, Etc
	
105106

	
 
	
SECTION 14.02.
	
Notices, Etc
	
106107

	
 
	
SECTION 14.03.
	
Assignability; Addition of Lenders
	
106107

	
 
	
SECTION 14.04.
	
Costs and Expenses
	
109110

	
 
	
SECTION 14.05.
	
No Proceedings; Limitation on Payments
	
109110

	
 
	
SECTION 14.06.
	
Confidentiality
	
109110

	
 
	
SECTION 14.07.
	
GOVERNING LAW
	
111112

	
 
	
SECTION 14.08.
	
Execution in Counterparts
	
111112

	
 
	
SECTION 14.09.
	
Integration; Binding Effect; Survival of Termination
	
111112

	
 
	
SECTION 14.10.
	
CONSENT TO JURISDICTION
	
111113

	
 
	
SECTION 14.11.
	
WAIVER OF JURY TRIAL
	
112113

 

 

 

 

	
 
	
SECTION 14.12.
	
Ratable Payments
	
112113

	
 
	
SECTION 14.13.
	
Limitation of Liability
	
112114

	
 
	
SECTION 14.14.
	
Intent of the Parties
	
113114

	
 
	
SECTION 14.15.
	
USA Patriot Act
	
113115

	
 
	
SECTION 14.16.
	
Right of Setoff
	
114115

	
 
	
SECTION 14.17.
	
Severability
	
114115

	
 
	
SECTION 14.18.
	
Mutual Negotiations
	
114115

	
 
	
SECTION 14.19.
	
Captions and Cross References
	
114115

	
 
	
SECTION 14.20.
	
Post-Closing Covenants Covenant
	
114116

 

 

 

Party, as the case may be), in which case, “Attorney Costs” shall also include the fees, costs and disbursements of such separate counsel). For the avoidance of doubt, “Attorney Costs” shall include fees, costs, expenses and disbursements of McGlinchey Stafford PLLC, as a local Louisiana law firm for the Credit Parties.

“Bankruptcy Code” means the United States Bankruptcy Reform Act of 1978 (11 U.S.C. § 101, et seq.), as amended from time to time.

“Base Rate” means, for any day and any Lender, a fluctuating interest rate per annum as shall be in effect from time to time, which rate shall be at all times equal to the highest of:

(a)the rate of interest in effect for such day as publicly announced from time to time by such Lender or its Affiliate as its “reference rate” or “prime rate”, as applicable. Such “reference rate” or “prime rate” is set by the applicable Lender or its Affiliate based upon various factors, including such Person’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above or below such announced rate, and is not necessarily the lowest rate charged to any customer;

(b)0.50% per annum above the latest Federal FundsOvernight Bank Funding Rate; and

(c)0.50% per annum above Adjusted LIBOR applicable to the Interest Period for which the Base Rate is then being determined.

“Benchmark Replacement” means the sum of: (a) the alternate benchmark rate that has  been selected by the Administrative Agent and the Borrowers giving due consideration to (i) any  selection or recommendation of a replacement rate or the mechanism for determining such a rate  by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention  for determining a rate of interest as a replacement to Adjusted LIBOR or LMIR, for U.S.  dollar-denominated credit facilities and (b) the Benchmark Replacement Adjustment; provided  that, if the Benchmark Replacement as so determined would be less than zero, the Benchmark  Replacement will be deemed to be zero for the purposes of this Agreement. 

“Benchmark Replacement Adjustment” means, with respect to any replacement of  Adjusted LIBOR or LMIR with an alternate benchmark rate for each applicable Interest Period,  the spread adjustment, or method for calculating or determining such spread adjustment, (which  may be a positive or negative value or zero) that has been selected by the Administrative Agent  and the Borrowers (a) giving due consideration to (i) any selection or recommendation of a  spread adjustment, or method for calculating or determining such spread adjustment, for the  replacement of Adjusted LIBOR or LMIR with the applicable 

 

 

 

 

Benchmark Replacement  (excluding such spread adjustment) by the Relevant Governmental Body or (ii) any evolving or  then-prevailing market convention for determining a spread adjustment, or method for  calculating or determining such spread adjustment, for such replacement of Adjusted LIBOR or  LMIR for U.S. dollar-denominated credit facilities at such time and (b) which may also reflect  adjustments to account for (i) the effects of the transition from Adjusted LIBOR or LMIR to the Benchmark Replacement and (ii) yield- or risk-based differences between Adjusted LIBOR or  LMIR and the Benchmark Replacement. 

“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark  Replacement, any technical, administrative or operational changes (including changes to the  definition of “Base Rate,” the definition of “Interest Period,” timing and frequency of  determining rates and making payments of interest and other administrative matters) that the  Administrative Agent decides may be appropriate to reflect the adoption and implementation of  such Benchmark Replacement and to permit the administration thereof by the Administrative  Agent in a manner substantially consistent with market practice (or, if the Administrative Agent  decides that adoption of any portion of such market practice is not administratively feasible or if  the Administrative Agent determines that no market practice for the administration of the  Benchmark Replacement exists, in such other manner of administration as the Administrative  Agent decides is reasonably necessary in connection with the administration of this Agreement). 

“Benchmark Replacement Date” means the earlier to occur of the following events with  respect to Adjusted LIBOR or LMIR: 

(1)in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,”  the later of (a) the date of the public statement or publication of information referenced therein  and (b) the date on which the administrator of the London Interbank Offered Rate for interbank  deposits in Dollars (“USD LIBOR”) permanently or indefinitely ceases to provide USD LIBOR;  or 

(2)in the case of clause (3) of the definition of “Benchmark Transition Event,” the  date of the public statement or publication of information referenced therein. 

“Benchmark Transition Event” means the occurrence of one or more of the following  events with respect to Adjusted LIBOR or LMIR: 

(1)a public statement or publication of information by or on behalf of the  administrator of USD LIBOR announcing that such administrator has ceased or will cease to  provide USD LIBOR, permanently or indefinitely, provided that, at the time of such statement or  publication, there is no successor administrator that will continue to provide USD LIBOR; 

(2)a public statement or publication of information by a Governmental Authority  having jurisdiction over the Administrative Agent, the regulatory supervisor for the administrator  of USD LIBOR, the U.S. Federal Reserve System, an insolvency official with jurisdiction over  the administrator for USD LIBOR, a resolution authority with jurisdiction over the administrator  for USD LIBOR or a court or an entity with similar insolvency or resolution authority over the  administrator for USD LIBOR, which states that the administrator of USD LIBOR has ceased or  will cease to provide USD LIBOR permanently or indefinitely, provided that, at the time of such  statement or publication, there is no successor administrator that will continue to provide USD  LIBOR; or

(3)a public statement or publication of information by the regulatory supervisor for the administrator of USD LIBOR or a Governmental Authority having jurisdiction over the  Administrative Agent  announcing that USD LIBOR is no longer representative. 

 

 

 

“Benchmark Unavailability Period” means, if a Benchmark Transition Event and its  related Benchmark Replacement Date have occurred with respect to Adjusted LIBOR or LMIR  and solely to the extent that Adjusted LIBOR or LMIR (as the case may be) has not been  replaced with a Benchmark Replacement, the period (x) beginning at the time that such  Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has  replaced Adjusted LIBOR or LMIR (as the case may be) for all purposes hereunder in accordance  with Section 5.06 and (y) ending at the time that a Benchmark Replacement has replaced  Adjusted LIBOR or LMIR (as the case may be) for all purposes hereunder pursuant to Section  5.06. 

“Borrowers” has the meaning specified in the preamble to this Agreement. “Borrower Indemnified Amounts” has the meaning set forth in Section 13.01(a). “Borrower Indemnified Party” has the meaning set forth in Section 13.01(a). 

“Borrower Obligations” means all present and future indebtedness, reimbursement obligations, and other liabilities and obligations (howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, or due or to become due) of the Borrowers to any Credit Party, Borrower Indemnified Party and/or any Affected Person, arising under or in connection with this Agreement or any other Transaction Document or the transactions contemplated hereby or thereby, and shall include, without limitation, all Capital and Interest on the Loans, all Fees and all other amounts due or to become due under the Transaction Documents (whether in respect of fees, costs, expenses, indemnifications or otherwise), including, without limitation, interest, fees and other obligations that accrue after the commencement of any Insolvency Proceeding with respect to any Borrower (in each case whether or not allowed as a claim in such proceeding).

“Borrowers’ Net Worth” means, at any time of determination, an amount equal to (i) the aggregate Outstanding Balance of all Pool Receivables at such time (other than any Pool Receivables that constitute Defaulted Receivables at such time), minus (ii) the sum of (A) the Aggregate Capital at such time, plus (B) the Aggregate Interest at such time, plus (C) the aggregate accrued and unpaid Fees at such time, plus (D) the aggregate outstanding principal balance owing under each Intercompany Loan Agreement at such time, plus (E) the aggregate accrued and unpaid interest owing under each Intercompany Loan Agreement at such time, plus (F) without duplication, the aggregate accrued and unpaid other Borrower Obligations at such time.

“Borrowing Base” means, at any time of determination, the amount equal to the lesser of (a) the Facility Limit and (b) the amount equal to (i) the Net Receivables Pool Balance at such time, minus (ii) the Total Reserves at such time.

(b)TRS Holdings ceases to own, directly, 100% of the issued and outstanding Capital Stock and all other equity interests of the TRS Borrower free and clear of all Adverse Claims;

(c)Holdings ceases to own, directly, 100% of the issued and outstanding Capital Stock, membership interests or other equity interests of the Performance Guarantor;

(d)Holdings ceases to own, directly or indirectly, 100% of the issued and outstanding Capital Stock, membership interests or other equity interests of any Borrower, the Servicer or any Originator;

(e)a “Change inof Control” (as defined in the Credit Agreement);

(f)any Adverse Claim shall exist with respect to any Intercompany Loan Agreement or any Intercompany Loan; or

(g)with respect to Holdings:

(i)the capital stock of Holdings owned directly or indirectly by Charles W. Lamar, III or Kevin P. Reilly, Sr., either of their wives, children, children’s spouses, grandchildren, trusts of which either 

 

 

 

of them, their wives, children, children’s spouses and grandchildren are the sole beneficiaries and for which one or more of such individuals are the sole trustee(s) and any Qualified Reilly Partnership shall (on a fully diluted basis after giving effect to the exercise of any outstanding rights or options to acquire capital stock of Lamar) cease to constitute at least such percentage of the aggregate voting stock of Holdings as is sufficient at all times to elect a majority of the Board of Directors of Holdings;

(ii)any Person or group (within the meaning of the Exchange Act and the rules of the SEC thereunder as in effect on the Closing Date), other than Charles W. Lamar, III or Kevin P. Reilly, Sr. and any of the other permitted holders referred to in clause (i) above, shall acquire or own, directly or indirectly, beneficially or of record, shares representing more than 20% of the ordinary voting power represented by the issued and outstanding voting capital stock of Holdings, or (y) acquire direct or indirect Control of Holdings; or

(iii)a majority of the seats (other than vacant seats) on the Board of Directors of Holdings shall be occupied by Persons who were neither (x) nominated by the Board of Directors of Holdings nor (y) appointed by directors so nominated.

“Change in Law” means the occurrence, after the Closing Date, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, during such Fiscal Month, by (b) the aggregate sales made by the Originators during the Fiscal Month that is one month prior to such Fiscal Month.

“Dilution Reserve Percentage” means, at any time of determination, the product (expressed as a percentage and rounded to the nearest 1/100th of 1%, with 5/1000th of 1% rounded upward) of (a) the Dilution Horizon Ratio, multiplied by (b) the sum of (i) 2.25 times the average of the Dilution Ratios for the twelve most recent Fiscal Months and (ii) the Dilution Volatility Component.

“Dilution Volatility Component” means, for any Fiscal Month, the product (expressed as a percentage and rounded to the nearest 1/100th of 1%, with 5/1000th of 1% rounded upward) of:

(a)the positive difference, if any, between: (i) the highest Dilution Ratio for any Fiscal Month during the twelve (12) most recent Fiscal Months and (ii) the arithmetic average of the Dilution Ratios for such twelve (12) Fiscal Months; multiplied by

(b)the quotient of (i) the highest Dilution Ratio for any Fiscal Month during the twelve (12) most recent Fiscal Months, divided by (ii) the arithmetic average of the Dilution Ratios for such twelve (12) Fiscal Months.

“Dollars” and “$” each mean the lawful currency of the United States of America. “Early Opt-in Event” means the occurrence of : 

(1)a determination by the Administrative Agent and/or the Borrowers that U.S.  dollar-denominated credit facilities being executed at such time, or that include language similar  to that contained in Section 5.06, are being executed or amended, as applicable, to incorporate or  adopt a new benchmark interest rate to replace USD LIBOR; and

(2)the election by the Administrative Agent and/or the Borrowers to declare that an  Early Opt-in Event has occurred and the provision, as applicable, by the Administrative Agent of  written notice of such election to the Borrowers and the Lenders, or by the Borrowers of written  notice of such election to the Administrative Agent and the Lenders. 

 

 

 

“Eligible Assignee” means (i) any Lender or any of its Affiliates, (ii) any Person managed by a Lender or any of its Affiliates and (iii) any other financial or other institution; provided, that no Defaulting Lender shall be an “Eligible Assignee.”

“Eligible Foreign Obligor” means an Obligor which is neither a U.S. Obligor nor a Sanctioned Person.

“Eligible Receivable” means, at any time of determination, a Pool Receivable:

(a)each Obligor of which is: (i) either a U.S. Obligor or an Eligible Foreign Obligor; (ii) not a Sanctioned Person; (iii) not subject to any Insolvency Proceeding; (iv) not an Affiliate of any Lamar Party; (v) not the Obligor with respect to Delinquent Receivables with an aggregate Outstanding Balance exceeding 50% of the aggregate Outstanding Balance of all such Obligor’s Pool Receivables; (vi) not a natural person;

(g)the excess (if any) of (i) the aggregate Outstanding Balance of all EligibleReceivables that are Unperformed Receivables, over (ii) the product of (x) 45.0%, multiplied by (y) the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool; provided, however, that during the continuance of a Ratings Event Level II the Administrative Agent may, upon ten (10) Business Days’ prior notice to the Borrowers, reduce the percentage in clause (ii)(x) above to 22.5%.

“Exchange Act” means the Securities Exchange Act of 1934, as amended or otherwise modified from time to time.

“Excluded Taxes” means any of the following Taxes imposed on or with respect to an Affected Person or required to be withheld or deducted from a payment to an Affected Person: (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes and branch profits Taxes, in each case, (i) imposed as a result of such Affected Person being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in the Loans or Commitment pursuant to a law in effect on the date on which (i) such Lender makes a Loan or its Commitment or (ii) such Lender changes its lending office, except in each case to the extent that amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Affected Person’s failure to comply with Section 5.03(f) and (d) any U.S. federal withholding Taxes imposed pursuant to FATCA.

“Exiting Lender” has the meaning set forth in Section 2.02(h). 

“Facility Limit” means, $175,000,000, as reduced or increased from time to time pursuant to the terms hereof. References to the unused portion of the Facility Limit shall mean, at any time of determination, an amount equal to (x) the Facility Limit at such time, minus (y) the Aggregate Capital at such time.

“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code, any applicable intergovernmental agreement entered into between the United States and any other Governmental Authority in connection with the implementation of the foregoing and any fiscal or regulatory legislation, rules or official practices adopted pursuant to any such intergovernmental agreement.

“Federal Funds Rate” means, for any day, the per annum rate set forth in the weekly statistical release designated as H.15(519), or any successor publication, published by the Federal  Reserve Board (including any such successor, “H.15(519)”) 

 

 

 

for such day opposite the caption “Federal Funds (Effective).” If on any relevant day such rate is not yet published in H. 15(519), the rate for such day will be the rate set forth in the daily statistical release designated as the

Composite 3:30 p.m. Quotations for U.S. Government Securities, or any successor publication, published by the Federal Reserve Bank of New York (including any such successor, the “Composite 3:30 p.m. Quotations”) for such day under the caption “Federal Funds Effective Rate.” If on any relevant day the appropriate rate is not yet published in either H.15(519) or the Composite 3:30 p.m. Quotations, the rate for such day will be the arithmetic mean as determined  by the Administrative Agent of the rates for the last transaction in overnight Federal funds arranged before 9:00 a.m. (New York City time) on that day by each of three leading brokers of  Federal funds transactions in New York City selected by the Administrative Agent. 

“Federal Reserve Board” means the Board of Governors of the Federal Reserve System, or any entity succeeding to any of its principal functions.

“Fee Letter” has the meaning specified in Section 2.03(a). 

“Fees” has the meaning specified in Section 2.03(a). 

“Final Maturity Date” means the date that (i) is one hundred eighty (180) days following the Termination Date or (ii) such earlier date on which the Aggregate Capital and all other Borrower Obligations become due and payable pursuant to Section 10.01. 

“Final Payout Date” means the date on or after the Termination Date when (i) the Aggregate Capital and Aggregate Interest have been paid in full, (ii) all Borrower Obligations shall have been paid in full, (iii) all other amounts owing to the Credit Parties and any other Borrower Indemnified Party or Affected Person hereunder and under the other Transaction Documents have been paid in full and (iv) all accrued Servicing Fees have been paid in full.

“Financial Covenant Event” shall be deemed to have occurred if, at any time, the Secured Debt Ratio exceeds 4.50 to 1.00.

“Financial Officer” of any Person means, the chief executive officer, the chief financial officer, the chief accounting officer, the principal accounting officer, the controller, the treasurer or the assistant treasurer of such Person.

“First Amendment Effective Date” means February 6, 2020. 

“Fiscal Month” means each calendar month.

“GAAP” means generally accepted accounting principles in the United States of America, consistently applied.

“Governmental Authority” means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

“Originator” means each of the QRS Originators and the TRS Originators.

“Other Connection Taxes” means, with respect to any Affected Person, Taxes imposed as a result of a present or former connection between such Affected Person and the jurisdiction imposing such Tax (other than connections arising from 

 

 

 

such Affected Person having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Transaction Document, or sold or assigned an interest in any Loan or Transaction Document).

“Other Taxes” means any and all present or future stamp, court or documentary, intangible, recording, filing Taxes or any other excise or property Taxes, charges or similar levies or fees arising from any payment made hereunder or from the execution, delivery, performance, registration, enforcement of, from the receipt or perfection of a security interest under, or otherwise in respect of, this Agreement, the other Transaction Documents and the other documents or agreements to be delivered hereunder or thereunder except any Taxes that are Other Connection Taxes imposed with respect to an assignment.

“Outstanding Balance” means, at any time of determination, with respect to any Receivable, the then outstanding principal balance thereof.

“Overnight Bank Funding Rate” means for any day, the rate comprised of both overnight  federal funds and overnight eurocurrency borrowings by U.S.-managed banking offices of  depository institutions, as such composite rate shall be determined by the Federal Reserve Bank  of New York (“NYFRB”), as set forth on its public website from time to time, and as published  on the next succeeding Business Day as the overnight bank funding rate by the NYFRB (or by  such other recognized electronic source (such as Bloomberg) selected by the Administrative  Agent for the purpose of displaying such rate); provided, that if such day is not a Business Day,  the Overnight Bank Funding Rate for such day shall be such rate on the immediately preceding  Business Day; provided, further, that if such rate shall at any time, for any reason, no longer  exist, a comparable replacement rate determined by the Administrative Agent at such time  (which determination shall be conclusive absent manifest error). If the Overnight Bank Funding  Rate determined as above would be less than zero, then such rate shall be deemed to be zero. The  rate of interest charged shall be adjusted as of each Business Day based on changes in the  Overnight Bank Funding Rate without notice to the Borrower. 

“Parent” means Lamar.

“Parent Entity” shall mean any direct or indirect parent of Holdings. 

“Parent Group” has the meaning set forth in Section 8.03(c). 

“Participant” has the meaning set forth in Section 14.03(d). 

“Participant Register” has the meaning set forth in Section 14.03(e). 

“PATRIOT Act” has the meaning set forth in Section 14.15. such Receivable, whether pursuant to the Contract related to such Receivable or otherwise;

(e)all books and records of each Borrower and each Originator to the extent related to any of the foregoing, and all rights, remedies, powers, privileges, title and interest (but not obligations) in and to each Lock-Box and all Collection Accounts, into which any Collections or other proceeds with respect to such Receivables may be deposited, and any related investment property acquired with any such Collections or other proceeds (as such term is defined in the applicable UCC);

(f)all of the applicable Borrower’s rights, interests and claims under the applicable Purchase and Sale Agreement and the other Transaction Documents; and

(g)all Collections and other proceeds (as defined in the UCC) of any of the foregoing.

 

 

 

“Release” has the meaning set forth in Section 4.01(a). 

“Relevant Governmental Body” means the Federal Reserve Board and/or the Federal  Reserve Bank of New York, or a committee officially endorsed or convened by the Federal  Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto. 

“Reportable Compliance Event” means that any Covered Entity becomes a Sanctioned Person, or is charged by indictment, criminal complaint or similar charging instrument, arraigned, or custodially detained in connection with any Anti-Terrorism Law or any predicate crime to any Anti-Terrorism Law, or has knowledge of facts or circumstances to the effect that it is reasonably likely that any aspect of its operations is in actual or probable violation of any Anti-Terrorism Law.

“Reportable Event” means any reportable event as defined in Section 4043(c) of ERISA or the regulations issued thereunder with respect to a Pension Plan.

“Representatives” has the meaning set forth in Section 14.06(c). 

“Required Capital Amount” means, as of any date of determination, an amount equal to the product of (i) the Loss Reserve Percentage at such time times (ii) the Net Receivables Pool Balance at such time.

“Restricted Payments” has the meaning set forth in Section 8.01(r). 

“Returned Goods” means all right, title and interest in and to returned, repossessed or foreclosed goods and/or merchandise the sale of which gave rise to a Receivable; provided that such goods shall no longer constitute Returned Goods after a Deemed Collection has been deposited in a Collection Account with respect to the full Outstanding Balance of the related Receivables. Receivables, (iii) all Collections with respect to such Pool Receivables, (iv) the Lock-Boxes and Collection Accounts and all amounts on deposit therein, and all certificates and instruments, if any, from time to time evidencing such Lock-Boxes and Collection Accounts and amounts on deposit therein, (v) all rights (but none of the obligations) of such Borrower under the related Purchase and Sale Agreement, (vi) all other personal and fixture property or assets of such Borrower of every kind and nature including, without limitation, all goods (including inventory, equipment and any accessions thereto), instruments (including promissory notes), documents, accounts, chattel paper (whether tangible or electronic), deposit accounts, securities accounts, securities entitlements, letter-of-credit rights, commercial tort claims, securities and all other investment property, supporting obligations, money, any other contract rights or rights to the payment of money, insurance claims and proceeds, and all general intangibles (including all payment intangibles) (each as defined in the UCC) and (vii) all proceeds of, and all amounts received or receivable under any or all of, the foregoing. Notwithstanding any provision set forth in this Agreement to the contrary, in no event shall the term “Collateral” include any Affiliate Receivables.

(b)The Administrative Agent (for the benefit of the Secured Parties) shall have, with respect to all the Collateral, and in addition to all the other rights and remedies available to the Administrative Agent (for the benefit of the Secured Parties), all the rights and remedies of a secured party under any applicable UCC. Each Borrower hereby authorizes the Administrative Agent to file financing statements describing as the collateral covered thereby as “all of the debtor’s personal property or assets” or words to that effect, notwithstanding that such wording may be broader in scope than the collateral described in this Agreement.

(c)Immediately upon the occurrence of the Final Payout Date, the Collateral shall be automatically released from the lien created hereby, and this Agreement and all obligations (other than those expressly stated to survive such termination) of the Administrative Agent, the Lenders and the other Credit Parties hereunder shall terminate, all without delivery of any instrument or performance of any act by any party, and all rights to the Collateral shall revert to the Borrowers; provided, however, that promptly following written request therefor by any Borrower delivered to the Administrative Agent 

 

 

 

following any such termination, and at the expense of the Borrowers, the Administrative Agent shall execute and deliver to such Borrower UCC-3 termination statements and such other documents as such Borrower shall reasonably request to evidence such termination.

SECTION 5.06.Successor Adjusted LIBOR or LMIR

(a)If the Administrative Agent determines (which determination shall be final  and conclusive, absent manifest error) that either (i) (A) the circumstances set forth in Section  5.04 have arisen and are unlikely to be temporary, or (B) the circumstances set forth in Section  5.04 have not arisen but the applicable supervisor or administrator (if any) of Adjusted LIBOR or LMIR or a Governmental Authority having jurisdiction over the Administrative Agent has made a public statement identifying the specific date after which Adjusted LIBOR or LMIR shall no longer be used for determining interest rates for loans (either such date, a “LIBOR Termination  Date”), or (ii) a rate other than Adjusted LIBOR or LMIR, as applicable, has become a widely  recognized benchmark rate for newly originated loans in Dollars in the U.S. market, then the Administrative Agent may (in consultation with the Borrowers) choose a replacement index for 

Adjusted LIBOR or LMIR, as applicable, and make adjustments to applicable margins and  related amendments to this Agreement as referred to below such that, to the extent practicable, the all in Interest based on the replacement index will be substantially equivalent to the all in Interest based on Adjusted LIBOR or LMIR, as applicable, in effect prior to its replacement.

(a)(b) The Administrative Agent  and the Borrowers shall enter into an amendment to 

this Agreement to reflect the replacement index, the adjusted margins and such other related  amendments as may be appropriate, in the discretion of the Administrative Agent, for the implementation and administration of the replacement index based rateBenchmark Replacement. Notwithstanding anything to the contrary in this Agreement or the other Transaction Documents (including, without limitation, Section 14.01), such amendment shall become effective without any further action or consent of any other party to this Agreementherein or in any other  Transaction Document, if the Administrative Agent determines  that a Benchmark Transition  Event or an Early Opt-in Event has occurred, the Administrative Agent and the Borrowers may  amend this Agreement to replace Adjusted LIBOR or LMIR with a Benchmark Replacement;  and any such amendment will become effective at 5:00 p.m. New York City time on the

tenthfifth (105th) Business Day after the date a draft of theAdministrative Agent has provided  such proposed amendment is provided to theall Lenders, unlessso long as the Administrative Agent receives, on or before such tenth (10th) Business Day, ahas not received, by such time,  written notice from the Majority Lenders stating that such Majority Lenders objectof objection to

such amendment from Lenders comprising the Majority Lenders. 

(c)       Selection of the replacement index, adjustments to the applicable margins,

and amendments to this Agreement (i) will be determined with due consideration to the then current market practices for determining and implementing a rate of interest for newly  originated loans in the United States and loans converted from a rate based on Adjusted LIBOR  or LMIR to a replacement index based rate, and (ii) may also reflect adjustments to account for (A) the effects of the transition from Adjusted LIBOR or LMIR, as applicable, to the replacement  index and (B) yield or risk based differences between Adjusted LIBOR or LMIR, as applicable, and the replacement index.(d) Until an amendment reflecting a new replacement index in accordance with this Section 5.06 is effective, each Portion of Capital accruing Interest withUntil 

 

 

 

the Benchmark Replacement is effective, each advance, conversion and renewal of a Loan  bearing interest by reference to Adjusted LIBOR or LMIR will continue to bear interest with reference to Adjusted LIBOR or LMIR, (as applicable; provided however, that if the Administrative Agent determines  (which determination shall be final and conclusive, absent  manifest error) that a LIBOR Termination Date has occurred, then following the LIBOR  Termination Date, each Portion of Capital that would otherwise accrue Interest withthe case may  be); provided, however, that during a Benchmark Unavailability Period (i) any pending selection  of, conversion to or renewal of a Loan bearing interest by reference to Adjusted LIBOR or LMIR  that has not yet gone into effect shall be deemed to be a selection of, conversion to or renewal of  the Base Rate with respect to such Loan, and such Loan shall bear interest by reference to the  Base Rate (rather than by reference to Adjusted LIBOR or LMIR), and (ii) all outstanding Loans  bearing interest by reference to Adjusted LIBOR or LMIR shall automatically begin accruing  Interest withbe converted to bear interest by reference to the Base Rate until such time as an amendment reflecting a replacement index and related matters as described above is implemented. .

(e)     Notwithstanding

(b)Benchmark Replacement Conforming Changes. In connection with the  implementation of a Benchmark Replacement, the Administrative Agent will have the right to  make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary contained herein, if at any time the replacement index is less than zero, at such times, such index shall be deemed to be zero for purposes of this Agreement.herein or in  any other Transaction Document, any amendments implementing such Benchmark Replacement  Conforming Changes will become effective without any further action or consent of any other  party to this Agreement. 

(c)Notices; Standards for Decisions and Determinations.  The Administrative Agent  will promptly notify the Borrowers and the Lenders of (i) the implementation of any Benchmark  Replacement, (ii) the effectiveness of any Benchmark Replacement Conforming Changes, (iii)  the commencement or conclusion of any Benchmark Unavailability Period, and (iv) any  occurrence of an Early Opt-in Election. Any determination, decision or election that may be  made by the Administrative Agent or the Lenders pursuant to this Section 5.06 including any  determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence  of an event, circumstance or date and any decision to take or refrain from taking any action, will  be conclusive and binding absent manifest error and may be made in its or their sole discretion  and without consent from any other party hereto, except, in each case, as expressly required  pursuant to this Section 5.06. 

ARTICLE VI

CONDITIONS TO EFFECTIVENESS AND CREDIT EXTENSIONS

SECTION 6.01.Conditions Precedent to Effectiveness and the Initial Credit Extension. This Agreement shall become effective as of the Closing Date when (a) the Administrative Agent shall have received each of the documents, agreements (in fully executed form), opinions of counsel, lien search results, UCC filings, certificates and other deliverables listed on the closing memorandum attached as Exhibit I hereto, in each case, in form and substance reasonably acceptable to the Administrative Agent and (b) all fees and expenses payable by the Borrowers on the Closing Date to the Credit Parties have been paid in full in accordance with the terms of the Transaction Documents.

SECTION 6.02.Conditions Precedent to All Credit Extensions. Each Credit Extension hereunder on or after the Closing Date shall be subject to the conditions precedent that:

(a)a Borrower shall have delivered to the Administrative Agent and each Lender a Loan Request for such Loan, in accordance with Section 2.02(a); 

 

 

 

(b)the Servicer shall have delivered to the Administrative Agent and each Lender all Information Packages and Interim Reports, if any, required to be delivered hereunder;

(c)the conditions precedent to such Credit Extension specified in Section  2.01(i) through (iii), shall be satisfied; and appointed by the Majority Lenders as a successor Administrative Agent and has accepted such appointment. If no successor Administrative Agent shall have been so appointed by the Majority Lenders, within thirty (30) days after the departing Administrative Agent’s giving of notice of resignation, the departing Administrative Agent may, on behalf of the Secured Parties, appoint a successor Administrative Agent as successor Administrative Agent. If no successor Administrative Agent shall have been so appointed by the Majority Lenders within sixty (60) days after the departing Administrative Agent’s giving of notice of resignation, the departing Administrative Agent may, on behalf of the Secured Parties, petition a court of competent jurisdiction to appoint a successor Administrative Agent.

(b)Upon such acceptance of its appointment as Administrative Agent hereunder by a successor Administrative Agent, such successor Administrative Agent shall succeed to and become vested with all the rights and duties of the resigning Administrative Agent, and the resigning Administrative Agent shall be discharged from its duties and obligations under the Transaction Documents. After any resigning Administrative Agent’s resignation hereunder, the provisions of this Article XI and Article XIII shall inure to its benefit as to any actions taken or omitted to be taken by it while it was the Administrative Agent.

SECTION 11.10.Structuring Agent. Each of the parties hereto hereby acknowledges and agrees that the Structuring Agent shall not have any right, power, obligation, liability, responsibility or duty under this Agreement, other than the Structuring Agent’s right to receive fees pursuant to Section 2.03. Each Credit Party acknowledges that it has not relied, and will not rely, on the Structuring Agent in deciding to enter into this Agreement and to take, or omit to take, any action under any Transaction Document.

SECTION 11.11.LIBOR Notification. Section 5.06 (“Successor Adjusted LIBOR or  LMIR”) provides a mechanism for determining an alternative rate of interest in the event that  Adjusted LIBOR or LMIR is no longer available or in certain other circumstances. The  Administrative Agent does not warrant or accept any responsibility for and shall not have any  liability with respect to, the administration, submission or any other matter related to the London  interbank offered rate or other rates in the definition of Adjusted LIBOR or LMIR or with respect  to any alternative or successor rate thereto, or replacement rate therefor. 

ARTICLE XII

[RESERVED]

ARTICLE XIII

INDEMNIFICATION

SECTION 13.01.Indemnities by the Borrowers. 

(a)Without limiting any other rights that the Administrative Agent, the CreditParties, the Affected Persons and their respective assigns, officers, directors, agents and employees (each, a “Borrower Indemnified Party”) may have hereunder or under Applicable Law, each Borrower, jointly and severally, hereby agrees to indemnify each Borrower

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