Document:

EX-4.2

 Exhibit 4.2 

SIXTEENTH SUPPLEMENTAL INDENTURE 

THIS SIXTEENTH SUPPLEMENTAL INDENTURE, dated as of March 17, 2020 (this “Supplemental Indenture”), is between The
Sherwin-Williams Company, an Ohio corporation (the “Company”), and Wells Fargo Bank, National Association, a national banking association organized and existing under the laws of the United States of America, as trustee (the
“Trustee”). 
 WITNESSETH 

WHEREAS, pursuant to the Indenture, dated as of July 31, 2015, between the Company and the Trustee (the “Indenture”), the
Company may from time to time issue and sell debt securities in one or more series; 
 WHEREAS, the Company desires to create and authorize
a series of Notes entitled “3.300% Senior Notes due 2050”, limited initially to $500,000,000 in aggregate principal amount (the “2050 Notes”), and to provide the terms and conditions upon which the 2050 Notes are to be executed,
registered, authenticated, issued and delivered, and the Company has duly authorized the execution and delivery of this Supplemental Indenture; 

WHEREAS, the 2050 Notes are a series of Notes and are being issued under the Indenture, as supplemented by this Supplemental Indenture, and
are subject to the terms contained therein and herein; 
 WHEREAS, the 2050 Notes are to be substantially in the form attached hereto as
Exhibit A; and 
 WHEREAS, all acts and things necessary to make the 2050 Notes, when executed by the Company and authenticated and
delivered by or on behalf of the Trustee as provided in this Supplemental Indenture, the valid, binding and legal obligations of the Company, and to make this Supplemental Indenture a legal, binding and enforceable agreement, have been done and
performed. 
 NOW, THEREFORE, in order to declare the terms and conditions upon which the 2050 Notes are executed, registered,
authenticated, issued and delivered, and in consideration of the foregoing premises and the purchase of such 2050 Notes by the Holders thereof, the Company and the Trustee mutually covenant and agree, for the benefit of each other and for the equal
and proportionate benefit of the Holders from time to time of the 2050 Notes, as follows: 
 Section 1. Definitions. Terms used
in this Supplemental Indenture and not defined herein shall have the respective meanings given such terms in the Indenture. 

“Attributable Indebtedness” in respect of a Sale/Leaseback Transaction means, as of the time of determination, (a) if the
obligation in respect of such Sale/Leaseback Transaction is a Capital Lease Obligation, the amount of such obligation determined in accordance with GAAP and included in the financial statements of the lessee or (b) if the obligation in respect
of such Sale/Leaseback Transaction is not a Capital Lease Obligation, 

 
the total Net Amount of Rent required to be paid by the lessee under such lease during the remaining term thereof (including any period for which the lease has been extended), discounted from the
respective due dates thereof to such determination date at the rate per annum borne by the weighted average interest rate per annum borne by the Notes then outstanding under the Indenture compounded semiannually. 

“Change of Control” means the occurrence of any of the following: 

(1) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is
that any “person” (as that term is used in Section 13(d) of the Exchange Act) (other than the Company or one of its Subsidiaries) becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the Voting Stock of the Company or other Voting Stock into which the Voting Stock of the Company is reclassified, consolidated, exchanged or
changed, measured by voting power rather than number of shares; 
 (2) the direct or indirect sale, transfer, conveyance or
other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the assets of the Company and the assets of its Subsidiaries, taken as a whole, to one or more
“persons” (as that term is used in Section 13(d)(3) of the Exchange Act) (other than to the Company or one of its Subsidiaries); 

(3) the Company consolidates with, or merges with or into, any “person” (as that term is used in Section 13(d)
of the Exchange Act) or any such person consolidates with, or merges with or into, the Company, in either case, pursuant to a transaction in which any of the outstanding Voting Stock of the Company or the Voting Stock of such other person is
converted into or exchanged for cash, securities or other property, other than pursuant to a transaction in which shares of the Voting Stock of the Company outstanding immediately prior to the transaction constitute, or are converted into or
exchanged for, a majority of the Voting Stock of the surviving person immediately after giving effect to such transaction; 

(4) the adoption of a plan relating to the liquidation or dissolution of the Company; or 

(5) the first day on which a majority of the members of the Board of Directors of the Company are not Continuing Directors.

 Notwithstanding the foregoing, a transaction shall not be deemed to involve a Change of Control if (i) the Company becomes a direct
or indirect wholly owned subsidiary of a holding company and (ii) the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction are substantially the same as the holders of the Voting Stock of
the Company immediately prior to that transaction. 

  
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 “Change of Control Triggering Event” means the occurrence of both
(1) a Change of Control and (2) a Rating Event. 
 “Consolidated Net Tangible Assets” means, as of any date of
determination, the sum of the amounts that would appear on a consolidated balance sheet of the Company and its Subsidiaries for the total assets (less accumulated depletion, depreciation or amortization, allowances for doubtful receivables, other
applicable reserves and other properly deductible items) of the Company and its Subsidiaries, determined on a consolidated basis in accordance with GAAP, after giving effect to purchase accounting and after deducting therefrom, to the extent
included in total assets, in each case as determined on a consolidated basis in accordance with GAAP (without duplication): (i) the aggregate amount of liabilities of the Company and its Subsidiaries which may properly be classified as current
liabilities (including taxes accrued as estimated); (ii) current Indebtedness and current maturities of long-term Indebtedness; (iii) minority interests in the Company’s Subsidiaries held by Persons other than the Company or a Wholly Owned
Subsidiary of the Company; and (iv) unamortized debt discount and expenses and other unamortized deferred charges, goodwill, patents, trademarks, service marks, trade names, copyrights, licenses, organization or developmental expenses and other
intangible items. 
 “Continuing Director” means, as of any date of determination, any member of the Board of Directors of
the Company who (1) was a member of such Board of Directors on the date of this Supplemental Indenture, (2) was nominated for election to such Board of Directors with the approval of a committee of the Board of Directors consisting of a
majority of independent Continuing Directors or (3) was nominated for election, elected or appointed to such Board of Directors with the approval of a majority of the Continuing Directors who were members of such Board of Directors at the time
of such nomination, election or appointment (either by a specific vote or by approval of the Company’s proxy statement in which such member was named as a nominee for election as a director, without objection to such nomination). 

“Indebtedness” means, with respect to any Person, any indebtedness of such Person, whether or not contingent (without
duplication): 
 (1) in respect of borrowed money; 

(2) evidenced by bonds, notes, debentures or similar instruments; 

(3) in respect of letters of credit, banker’s acceptances or other similar instruments or credit transactions (including
reimbursement obligations with respect thereto), other than obligations with respect to letters of credit securing obligations (other than obligations described in clauses (1) – (2), (4) or (5) hereof) entered into in the ordinary course
of business of such Person to the extent such letters of credit are not drawn upon or, if and to the extent such letters of credit are drawn upon, such drawing is reimbursed no later than the third Business Day following receipt by such Person of a
demand for reimbursement following payment on the letter of credit; 

  
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 (4) representing Capital Lease Obligations; 

(5) representing the balance deferred and unpaid of the purchase price of any property, except any such balance that
constitutes an accrued expense or trade payable; or 
 (6) representing any Hedging Obligations, 

if and to the extent any of the preceding items, other than letters of credit and Hedging Obligations, would appear as a liability upon a balance sheet of the
specified Person prepared in accordance with GAAP. In addition, the term “Indebtedness” includes all Indebtedness of others secured by a Lien on any asset of the specified Person, whether or not such Indebtedness is assumed by the
specified Person, and, to the extent not otherwise included, the Guarantee by the specified Person of any Indebtedness of any other Person or any liability of any Person, whether or not contingent and whether or not it appears on the balance sheet
of such Person. Notwithstanding anything to the contrary in the foregoing, the term “Indebtedness” excludes (x) any indebtedness of the Company or any Subsidiary of the Company to the Company or another Subsidiary of the Company and
(y) any Guarantee by the Company or any Subsidiary of the Company of indebtedness of the Company or any Subsidiary of the Company. 
 The amount of any
Indebtedness outstanding as of any date shall be: 
 (1) the accreted value of the Indebtedness, in the case of any
Indebtedness that does not require the current payment of interest; and 
 (2) the principal amount of the Indebtedness,
together with any interest on the Indebtedness that is more than 30 days past due, in the case of any other Indebtedness. 

“Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, or, if applicable, the equivalent investment grade credit rating from any Substitute Rating Agency selected by the Company. 

“Moody’s” means Moody’s Investors Service, Inc., or any successor thereto. 

“Net Amount of Rent” as to any lease for any period means the aggregate amount of rent payable by the lessee with respect to
such period after excluding amounts required to be paid on account of maintenance and repairs, insurance, taxes, assessments, water rates and similar charges. In the case of any lease that is terminable by the lessee upon the payment of a penalty,
such net amount shall also include the amount of such penalty, but no rent shall be considered as payable under such lease subsequent to the first date upon which it may be so terminated. 

  
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 “Permitted Lien” means, with respect to any Person, 

(a) pledges or deposits by such Person under worker’s compensation laws, unemployment insurance laws or similar legislation, or good faith
deposits in connection with bids, tenders, contracts (including government contracts, but excluding contracts for the payment of Indebtedness) or leases to which such Person is a party, or deposits to secure public or statutory obligations of such
Person or deposits of cash or United States government bonds to secure performance, surety or appeal bonds to which such Person is a party or which are otherwise required of such Person, or deposits as security for contested taxes or import duties
or for the payment of rent or other obligations of like nature, in each case incurred in the ordinary course of business; 
 (b) Liens
imposed by law, such as carriers’, warehousemen’s, laborers’, materialmen’s, landlords’, vendors’, workmen’s, operators’, producers’ and mechanics’ Liens, in each case for sums not yet due or being
contested in good faith by appropriate proceedings; 
 (c) Liens for property taxes, assessments and other governmental charges or levies not
yet delinquent or that are being contested in good faith by appropriate proceedings; 
 (d) survey exceptions, encumbrances, easements,
defects, irregularities or deficiencies in title to easements, or reservations of or with respect to, or rights of others for or with respect to, licenses,
rights-of-way, sewers, electric and other utility lines and usages, telegraph and telephone lines, pipelines, surface use, operation of equipment, permits, servitudes
and other similar matters, or zoning or other restrictions as to the use of real property or Liens incidental to the conduct of the business of such Person or to the ownership of its properties that, in all such cases, were not incurred in
connection with Indebtedness and that do not in the aggregate materially adversely affect the value of said properties or materially impair their use in the operation of the business of such Person; 

(e) Liens existing on or provided for under the terms of agreements existing on February 1, 1996; 

(f) Liens on property at the time the Company or any of its Subsidiaries acquired the property or the entity owning such property, including
any acquisition by means of a merger or consolidation with or into the Company; provided, however, that any such Lien may not extend to any other property owned by the Company or any of its Subsidiaries; 

(g) Liens securing a Hedging Obligation so long as such Hedging Obligation is of the type customarily entered into in connection with, and is
entered into for the purpose of, limiting risk; 
 (h) Liens on accounts receivable or inventory to secure working capital or revolving
credit indebtedness incurred in the ordinary course of business; 
 (i) Purchase Money Liens; 

  
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 (j) Liens securing only Indebtedness of a Wholly Owned Subsidiary of the Company to the
Company or one or more Wholly Owned Subsidiaries of the Company; 
 (k) Liens on property or shares of stock of another Person at the time
such other Person becomes a Subsidiary of such Person; provided, however, that such Liens are not created, incurred or assumed in connection with, or in contemplation of, such other Person becoming such a Subsidiary of such Person;

 (l) Liens created, assumed or existing in connection with a tax-free financing; 

(m) Liens resulting from the deposit of funds or evidences of Indebtedness in trust for the purpose of defeasing Indebtedness of the Company or
any of its Subsidiaries; 
 (n) legal or equitable encumbrances deemed to exist by reason of negative pledges or the existence of any
litigation or other legal proceeding and any related lis pendens filing (excluding any attachment prior to judgment, judgment lien or attachment lien in aid of execution on a judgment); 

(o) rights of a common owner of any interest in property held by such Person; 

(p) Liens placed upon any real property owned on the date of this Supplemental Indenture or thereafter acquired by the Company or any of its
Subsidiaries securing Indebtedness in an amount up to 80% of the fair market value of such real property; 
 (q) Liens to secure any
refinancing, refunding, extension, renewal or replacement (or successive refinancings, refundings, extensions, renewals or replacements), as a whole, or in part, of any Indebtedness secured by any Lien referred to in the foregoing clauses
(e) through (l) and (p); provided, however, that (i) such new Lien shall be limited to all or part of the same property that secured the original Lien (plus improvements on such property) and (ii) the Indebtedness
secured by such Lien at such time is not increased to any amount greater than the sum of (A) the outstanding principal amount or, if greater, committed amount of the Indebtedness described under clauses (e) through (l) and (p) at the
time the original Lien became a Permitted Lien under this Supplemental Indenture and (B) an amount necessary to pay any fees and expenses, including premiums, related to such refinancing, refunding, extension, renewal or replacement. 

“Principal Property” means any manufacturing plant or manufacturing facility, located within the United States of America
(other than its territories and possessions), owned or leased by the Company or any Restricted Subsidiary, unless, in the opinion of the Board of Directors, such plant, facility or property is not of material importance to the total business
conducted by the Company and its Restricted Subsidiaries as an entirety. 
 “Purchase Money Lien” means a Lien on property
securing Indebtedness incurred by the Company or any of its Subsidiaries to provide funds for all or any portion of the cost of acquiring, constructing, altering, expanding, improving or repairing such property or assets used in connection with such
property. 

  
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 “Rating Agencies” means (1) each of Moody’s and S&P and
(2) if any of Moody’s and S&P ceases to rate the 2050 Notes or fails to make a rating of the 2050 Notes publicly available for reasons outside of the Company’s control, a Substitute Rating Agency in lieu thereof. 

“Rating Event” means the rating on the 2050 Notes is lowered by each of the Rating Agencies and the 2050 Notes are rated
below an Investment Grade Rating by each of the Rating Agencies on any day during the period commencing on the earlier of (i) the occurrence of the Change of Control and (ii) the first public announcement by the Company of any Change of
Control and ending 60 days following consummation of such Change of Control (which period will be extended so long as the rating of the 2050 Notes is under publicly announced consideration for a possible downgrade by any of the Rating Agencies);
provided that a Rating Event will not be deemed to have occurred in respect of a particular Change of Control (and thus will not be deemed a Rating Event for purposes of the definition of Change of Control Triggering Event) if each Rating
Agency making the reduction in rating does not publicly announce or confirm or inform the Trustee in writing at the request of the Company that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising
as a result of, or in respect of, the Change of Control (whether or not the applicable Change of Control has occurred at the time of the Rating Event). 

“Restricted Subsidiary” means at any time any Subsidiary of the Company (i) substantially all the property of which is
located, or substantially all of the business of which is carried on, within the United States of America (other than its territories or possessions) and (ii) that owns or leases a Principal Property or that, in the event of a Sale/Leaseback
Transaction, will own or lease a Principal Property. 
 “S&P” means S&P Global Ratings, a division of S&P
Global Inc., or any successor thereto. 
 “Sale/Leaseback Transaction” means an arrangement relating to Principal Property
owned on the date of this Supplemental Indenture or thereafter acquired whereby the Company or any of its Restricted Subsidiaries transfers such Principal Property to a Person and the Company or any of its Restricted Subsidiaries leases it from such
Person. 
 “Substitute Rating Agency” means a “nationally recognized statistical rating organization” within the
meaning of Section 3(a)(62) under the Exchange Act selected by the Company (as certified by a resolution of the Board of Directors of the Company). 

“Voting Stock” means, with respect to any specified “person” (as that term is used in Section 13(d) of the
Exchange Act) as of any date, the capital stock of such person that is at the time entitled to vote generally in the election of the Board of Directors of such person. 

“Wholly Owned Subsidiary” means a Restricted Subsidiary all the Capital Stock of which (other than directors’ qualifying
shares) is owned by the Company or one or more Wholly Owned Subsidiaries. 

  
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 Section 2. Creation and Authorization of Series. 

(a) There is hereby created and authorized the following new series of Notes to be issued under the Indenture, to be designated as the
“3.300% Senior Notes due 2050.” 
 (b) The 2050 Notes shall be limited initially to $500,000,000 in aggregate principal amount.
Notwithstanding the foregoing initial aggregate principal amount, the Company may, from time to time, without notice to or consent of the Holders of the 2050 Notes, increase the principal amount of the 2050 Notes that may be issued under this
Supplemental Indenture and issue such increased principal amount (or any portion thereof), in which case any additional notes so issued will have the same terms (other than the date of issuance and, under certain circumstances, the initial interest
payment date, the date from which interest thereon will begin to accrue and the issue price), and will carry the same right to receive accrued and unpaid interest, as the 2050 Notes previously issued, and such additional notes will form a single
series with the 2050 Notes, including for purposes of voting, redemptions and offers to purchase and will rank equally and ratably with the 2050 Notes previously issued; provided that if such additional notes are not fungible with the 2050
Notes for U.S. federal income tax purposes, the additional notes will have a separate CUSIP number. 
 (c) The date on which the principal is
payable on the 2050 Notes shall be as provided in the form of security attached hereto as Exhibit A. 
 (d) The 2050 Notes shall bear
interest as provided in the form of security attached hereto as Exhibit A. The interest payment dates and the record dates for the determination of Holders of the 2050 Notes to whom such interest is payable shall be as provided in the form of
security attached hereto as Exhibit A. 
 (e) The 2050 Notes shall be redeemable at the option of the Company as set forth in Section 4
of the form of security attached hereto as Exhibit A. 
 (f) The 2050 Notes are not entitled to any sinking fund. 

(g) Upon a Change of Control Triggering Event, the Company shall be required to make an offer to repurchase the 2050 Notes as provided in
Section 3 of this Supplemental Indenture. 
 (h) The 2050 Notes will be issued only in fully registered form, without coupons, in
denominations provided in Section 8 of the form of security attached hereto as Exhibit A. 
 (i) Article 8 of the Indenture shall be
applicable to the 2050 Notes. The covenants described in Section 3, 4, 5 and 6 of this Supplemental Indenture shall be subject to the covenant defeasance option set forth in Section 8.03 of the Indenture. 

  
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 (j) The 2050 Notes shall be issued in the form of one or more Global Notes substantially in
the form of Exhibit A attached hereto. The Company initially appoints The Depository Trust Company to act as Depositary with respect to the 2050 Notes. Additional provisions applicable to the 2050 Notes issued in the form of one or more Global Notes
are set forth in Section 10 of the form of 2050 Note attached hereto as Exhibit A. To the extent inconsistent therewith, such provisions supersede the provisions set forth in Section 2.14 of the Indenture. 

(k) The Trustee, initial Paying Agent and Registrar for the 2050 Notes will be Wells Fargo Bank, National Association, and the initial place of
payment (“Place of Payment”) will be the office or agency of the Trustee located at MAC N9300-070, 600 South Fourth Street, Seventh Floor, Minneapolis, MN 55415, Attn: Corporate Trust Operations.

 (l) The covenants and definitions set forth in the Indenture and the terms set forth in Article 5 of the Indenture shall be applicable to
the 2050 Notes. 
 (m) Except as otherwise set forth herein and in the 2050 Notes, the terms of the 2050 Notes shall be as set forth in the
Indenture, including those made part of the Indenture by reference to the TIA. 
 Section 3. Purchase of Notes upon a Change of
Control Triggering Event. 
 (a) If a Change of Control Triggering Event occurs, unless the Company has exercised its option to redeem
the 2050 Notes as set forth in Section 4 of the form of security attached hereto as Exhibit A, the Company shall be required to make an offer (the “Change of Control Offer”) to each Holder to repurchase all or any part (equal to
$2,000 or any integral multiple of $1,000 in excess thereof) of that Holder’s 2050 Notes on the terms set forth herein. In the Change of Control Offer, the Company will be required to offer payment in cash equal to 101% of the principal amount
of 2050 Notes repurchased, plus accrued and unpaid interest, if any, on the 2050 Notes repurchased up to, but not including, the date of repurchase (the “Change of Control Payment”). Within 30 days following any Change of Control
Triggering Event or, at the option of the Company, prior to any Change of Control, but after public announcement of the transaction that constitutes or may constitute the Change of Control, a notice shall be mailed to Holders of the 2050 Notes with
a copy to the Trustee describing the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to repurchase the 2050 Notes on the date specified in the notice, which date will be no earlier than 30 days and
no later than 60 days from the date such notice is mailed (or with respect to Global Notes, to the extent permitted or required by the Applicable Procedures, sent electronically) or, if the notice is mailed or sent prior to the Change of Control, no
earlier than 30 days and no later than 60 days from the date on which the Change of Control Triggering Event occurs (the “Change of Control Payment Date”). The notice shall, if mailed or sent prior to the date of consummation of the Change
of Control, state that the offer to purchase is conditioned on the Change of Control Triggering Event occurring on or prior to the Change of Control Payment Date. 

  
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 (b) By 10:00 a.m., Eastern Time on the Change of Control Payment Date, the Company shall, to
the extent lawful, (1) accept for payment all 2050 Notes or portions of 2050 Notes properly tendered pursuant to the Change of Control Offer, (2) deposit with the Paying Agent (or, if the Company is acting as the Company’s own Paying
Agent, segregate and hold in trust) an amount equal to the Change of Control Payment in respect of all 2050 Notes or portions of 2050 Notes properly tendered and (3) deliver or cause to be delivered to the Trustee the 2050 Notes properly
accepted together with an Officers’ Certificate stating the aggregate principal amount of 2050 Notes or portions of 2050 Notes being repurchased. 

(c) The Company shall publicly announce the results of the Change of Control Offer on or as soon as possible after the date of purchase.
Neither the Trustee nor any Paying Agent shall be responsible for monitoring the rating status of the Company, making any request upon any of the Rating Agencies or any Substitute Rating Agency, or determining whether any Rating Event has occurred.

 (d) The Company shall not be required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if a
third party makes such an offer in the manner, at the time and otherwise in compliance with the requirements for an offer made by the Company and the third party purchases all 2050 Notes properly tendered and not withdrawn under its offer. In
addition, the Company shall not repurchase any 2050 Notes if there has occurred and is continuing on the Change of Control Payment Date an Event of Default under the Indenture or this Supplemental Indenture, other than a default in the payment of
the Change of Control Payment upon a Change of Control Triggering Event. 
 (e) The Company shall comply in all material respects with the
requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the 2050
Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any such securities laws or regulations conflict with the provisions of this Section 3, the Company shall comply with those securities laws and
regulations and shall not be deemed to have breached the Company’s obligations under this Section 3 by virtue of any such conflict. 

Section 4. Limitation on Liens. The Company shall not, and shall not permit any of its Restricted Subsidiaries to, issue, incur,
create, assume, guarantee or permit to exist any Indebtedness secured by a Lien on any Principal Property, or shares of capital stock of any Restricted Subsidiary, whether owned on the date of this Supplemental Indenture or thereafter acquired,
unless the Company contemporaneously secures the 2050 Notes equally and ratably with (or prior to) such Indebtedness; provided that any Lien created for the benefit of the Holders of the 2050 Notes pursuant to this provision shall be
automatically and unconditionally released and discharged upon release and discharge of the Lien that resulted in such provision becoming applicable. The preceding sentence shall not require the Company to secure the 2050 Notes if the Lien consists
of the following: 
 (a) Permitted Liens; or 

(b) Liens other than Permitted Liens, provided that the aggregate amount of all Indebtedness secured by Liens other than Permitted Liens
shall not exceed 20% of Consolidated Net Tangible Assets calculated as of the date of the creation or incurrence of such Lien. 

  
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 Section 5. Limitation on Sale and Lease-Back Transactions. The Company shall
not, and shall not permit any of its Restricted Subsidiaries to, enter into any Sale/Leaseback Transaction with respect to any Principal Property unless (a) the Company or such Restricted Subsidiary would be entitled to create a Lien on such
Principal Property securing Indebtedness in an amount equal to the Attributable Indebtedness with respect to such Sale/Leaseback Transaction without securing the 2050 Notes pursuant to Section 4 of this Supplemental Indenture or (b) the
Company, within six months from the effective date of such Sale/Leaseback Transaction, applies to the voluntary defeasance or retirement of the 2050 Notes or other Indebtedness ranking pari passu with the 2050 Notes (excluding retirements as
a result of conversions or pursuant to mandatory sinking fund or mandatory prepayment provisions or by payment at maturity) an amount equal to the Attributable Indebtedness in respect of such Sale/Leaseback Transaction; provided that the
foregoing will not prevent the Company or any Restricted Subsidiary from (x) entering into any Sale/Leaseback Transaction involving a lease with a term of less than three years or (y) entering into any Sale/Leaseback Transaction between a
Restricted Subsidiary and the Company or between Restricted Subsidiaries. 
 Section 6. SEC Reports. 

(a) The Company shall file with the Trustee, within 15 days after the Company is required to file the same with the SEC, after giving effect to
any grace period provided by Rule 12b-25 under the Exchange Act, copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the SEC
may from time to time by rules and regulations prescribe) that the Company may be required to file with the SEC pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if the Company is not required to file information, documents
or reports pursuant to either of such sections, then the Company shall file with the Trustee and the SEC, in accordance with rules and regulations prescribed from time to time by the SEC and within 15 days after such information, documents or
reports are due with respect to a non-accelerated filer and after giving effect to any grace period provided by Rule 12b- 25 under the Exchange Act, such information,
documents or reports that may be required pursuant to Section 13 of the Exchange Act in respect of a security listed and registered on a national securities exchange as may be prescribed from time to time in such rules and regulations.
Notwithstanding the foregoing, (i) the Company will be deemed to have furnished such information, documents or reports referred to above to the Trustee if the Company has filed such information, documents or reports with the SEC via the EDGAR
filing system (or any successor system) or, if at any time the Company is no longer subject to reporting under Section 13 or 15(d) of the Exchange Act and is not permitted to file such information, documents or reports with the SEC, if the
Company posts such information, documents or reports on the Company’s publicly available website and (ii) if at any time the Company is no longer subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the
Company will not be deemed to have failed to comply with any of its obligations under this Section 7(a) until 30 days after the date any information, document or report hereunder is required to be filed with the Trustee. 

  
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 (b) Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants
under the Indenture or this Supplemental Indenture (as to which the Trustee is entitled to rely exclusively on Officer’s Certificates). The Trustee shall have no obligation whatsoever to determine whether or not such information, documents or
reports have been filed pursuant to the EDGAR filing system (or its successor) or postings to any website have occurred. 
 Section 7.
Events of Default. The Events of Default in Section 6.01 of the Indenture shall be applicable to the 2050 Notes. In addition, the following shall be Events of Default with respect to the 2050 Notes: 

(a) failure to make the required Change of Control Payment when due and payable in accordance with the terms of Section 3 of this
Supplemental Indenture; and 
 (b) default in the performance or breach of any covenant of the Company in any of Section 4, 5 or 6 of
this Supplemental Indenture, which default continues uncured for a period of 90 days after (i) the Company receives written notice from the Trustee or (ii) the Company and the Trustee receive written notice from Holders of not less than
25% in aggregate principal amount of the 2050 Notes outstanding. 
 Section 8. Amendments. The Company and the Trustee may amend
or supplement the Indenture or this Supplemental Indenture or the 2050 Notes as provided in Article 9 of the Indenture. 
 Section 9.
Effect of Supplemental Indenture. The provisions of this Supplemental Indenture are intended to supplement those of the Indenture as in effect immediately prior to the execution and delivery hereof. The Indenture shall remain in full force
and effect except to the extent that the provisions of the Indenture are expressly modified by the terms of this Supplemental Indenture. 

Section 10. Governing Law. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL
INDENTURE AND THE 2050 NOTES, WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

Section 11. Trustee Not Responsible for Recitals or Issuance of 2050 Notes. The recitals contained herein shall be taken as
statements of the Company, and the Trustee assumes no responsibility for their correctness. The Trustee makes no representations as to and shall not be responsible for the validity or sufficiency of this Supplemental Indenture or of the 2050 Notes
other than with respect to the Trustee’s authentication of the 2050 Notes and execution of this Supplemental Indenture. The Trustee shall not be accountable for the use or application by the Company of the 2050 Notes or the proceeds thereof.

  
 12 

 Section 12. Conflict with TIA. If any provision of this Supplemental Indenture
limits, qualifies or conflicts with a provision of the TIA that is required under the TIA to be a part of and govern this Supplemental Indenture, the latter provisions shall control. If any provision of this Supplemental Indenture modifies or
excludes any provision of the TIA that may be so modified or excluded, the latter provision shall be deemed to apply to this Supplemental Indenture as so modified or to be excluded, as the case may be. 

Section 13. Counterparts. This Supplemental Indenture may be executed in any number of counterparts, each of which shall be an
original; but such counterparts shall together constitute but one and the same instrument. Signatures of the parties hereto transmitted by facsimile or PDF may be used in lieu of the originals shall be deemed to be their original signatures for all
purposes. 
 [The remainder of this page is left blank intentionally] 

  
 13 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed as of the day and year first above written. 
  

					
	THE SHERWIN-WILLIAMS COMPANY
			
		 	By:	 	/s/ Allen J. Mistysyn
		 		 	Name:  Allen J. Mistysyn
		 		 	Title:    Senior Vice President—Finance and Chief Financial Officer

  
 [Signature Page to
Sixteenth Supplemental Indenture] 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed as of the day and year first above written. 
  

			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee
		
	By:	 	/s/ Maddy Hughes
		 	Name:  Maddy Hughes
		 	Title:    Vice President

  
 [Signature Page to
Sixteenth Supplemental Indenture] 

 Exhibit A 

FORM OF LEGEND FOR GLOBAL NOTE 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (THE “DEPOSITARY”)
AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

[Insert if Global Note: THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME
OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY. THIS NOTE IS EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF
SUCH A SUCCESSOR DEPOSITARY] 
  

							
	Registered 
No.	 	THE SHERWIN-WILLIAMS COMPANY
3.300% SENIOR NOTE DUE 2050
	  	Registered 
CUSIP 824348 BM7
	 Original Issue Date:

            March 17, 2020
	 		  	 Maturity Date:

        May 15, 2050

	 Principal Amount:

            $
	 		  		  	
	 Interest Rate:

            3.300%
	 		  	 Specified Currency:

        U.S. Dollars

	 Interest Payment Dates:

            May 15

            November 15
	 		  	 Regular Record Dates:

        May 1

        November 1

	Redemption at Option of the Company:	  		  	
			
	 Redemption Date(s)

            At Any Time
	 		  	 Redemption Price(s)

        As set forth in Section 4 on

        the reverse side hereof.

 This security (this “Security”) is a registered security of THE SHERWIN-WILLIAMS
COMPANY, an Ohio corporation (together with its successors, if any, the “Company”). This Security is one of a series of Notes (as defined on the reverse hereof) issued under the Indenture referred to on the reverse hereof designated as the
3.300% Senior Notes due 2050. Subject to the provisions hereof, the Company, for value received, hereby promises to pay to [●] [Insert if Global Note: CEDE & CO.], or registered assigns, the Principal Amount set forth on the face
hereof [Insert if Global Note: or such amount as may be set forth on the Schedule of Increases or Decreases of Interests in the Global Note attached hereto] on the Maturity Date shown above and to pay the premium, if any, and interest thereon, as
described on the reverse hereof. 
 The principal of (and premium, if any) and interest on this Security are payable by the Company in such
coin or currency of the United States as at the time of payment shall be legal tender for the payment of public and private debts. 

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS SECURITY SET FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL
PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. 
 Unless the certificate of authentication hereon has been manually executed
by or on behalf of the Trustee under the Indenture by an authorized signatory thereof, this Security shall not be entitled to any benefits under the Indenture, or be valid or obligatory for any purpose. 

[The remainder of this page is left blank intentionally] 

  
 A-2 

			
	 
	THE SHERWIN-WILLIAMS COMPANY
	
	 Dated:

		
	By:    	 	 
		 	Name:
		 	Title:

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Notes of the series designated therein and referred to in the within-mentioned Indenture. 

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee 
  

			
	 By:
	 	 
		 	 Authorized Signatory

 Dated: 

  
 A-3 

 REVERSE OF SECURITY 

THE SHERWIN-WILLIAMS COMPANY 

3.300% SENIOR NOTE DUE 2050 
 1. This
Security is one of the duly authorized issue of notes or other debt instruments (hereinafter called the “Notes”) of the Company, of the series hereinafter specified, all issued or to be issued under and pursuant to the Indenture, dated as
of July 31, 2015, between the Company and Wells Fargo Bank, National Association, a national banking association organized and existing under the laws of the United States of America (herein called the “Trustee”), and the Sixteenth
Supplemental Indenture, dated as of March 17, 2020, between the Company and the Trustee (collectively, the “Indenture”), to which Indenture and all other indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, obligations and duties thereunder of the Trustee and any agent of the Trustee or the Company, any Paying Agent for this Security, the Company and the Holders of the Notes and the terms upon which the Notes
are issued and are to be authenticated and delivered. 
 This Security is one of the series of Notes of the Company issued pursuant to the Indenture
designated as the 3.300% Senior Notes due 2050 (the “2050 Notes”). 
 2. A. The regular record date (the “Regular Record Date”) with
respect to any Interest Payment Date (as defined below) shall be the applicable date specified as such on the face hereof (whether or not such date shall be a Business Day (as defined below)) immediately preceding such Interest Payment Date.
Interest which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name this Security is registered at the close of business on the Regular Record Date next preceding such
Interest Payment Date. “Business Day” means, with respect to any Place of Payment, any day other than a Legal Holiday. 
 B. The
Company promises to pay interest on the Principal Amount at the rate per annum shown on the face hereof until the Principal Amount hereof is paid or made available for payment or upon earlier redemption or repayment. The Company will pay interest
semiannually in arrears on the Interest Payment Dates set forth on the face hereof (each such date, an “Interest Payment Date”), commencing November 15, 2020, and on the Maturity Date. Interest shall accrue from and including the most
recent Interest Payment Date to which interest has been paid or duly provided for or, if no interest has been paid or duly provided for, from and including the Original Issue Date shown on the face hereof, to but excluding the next succeeding
Interest Payment Date. The amount of such interest payable on any Interest Payment Date shall be computed on the basis of a 360-day year of twelve 30-day months. If any
payment is required to be made in respect of this Security on a date (including the Maturity Date, a redemption date, a Change of Control Payment Date or an Interest Payment Date) that is not a Business Day, the related payment shall be made on the
next succeeding Business Day as if made on the date the payment is due, and no interest shall accrue on such payment for the intervening period. 

  
 A-4 

 3. As long as the 2050 Notes are represented by one or more Global Notes, all payments of interest will be
made by the Company in immediately available funds to the accounts specified by the Depositary or a nominee of the Depositary. Otherwise, payments of interest on the 2050 Notes due on Interest Payment Dates will be made by immediately available
funds to accounts with financial institutions in the United States specified by the Persons entitled thereto by notice given to the Paying Agent at least ten calendar days prior to the applicable Interest Payment Date or, if no such account is so
specified, by check mailed to the Persons entitled thereto. Principal and any premium and (if such day is not an Interest Payment Date) interest payable at the Stated Maturity, on redemption or repayment of a 2050 Note will be paid in immediately
available funds upon surrender of such 2050 Note at the Place of Payment. Initially, Wells Fargo Bank, National Association will be the Paying Agent and the Registrar with respect to the 2050 Notes. The Company reserves the right at any time to vary
or terminate the appointment of any Paying Agent or Registrar and to appoint additional or other Paying Agents and a different Registrar and to approve any change in the office through which any Paying Agent or Registrar acts; provided that
the Company shall at all times maintain a Paying Agent and Place of Payment for the 2050 Notes. Each Holder that is a transferor of a 2050 Note, upon request of the Trustee, shall provide or cause to be provided to the Trustee all information
reasonably necessary to allow the Trustee to comply with any applicable tax reporting obligations, including without limitation any cost basis reporting obligations under Internal Revenue Code Section 6045. The Trustee may rely on the
information provided to it and shall have no responsibility to verify or ensure the accuracy of such information. 
 4. At any time and from time to time,
the 2050 Notes are redeemable, in whole or in part, at the option of the Company, on notice given as provided in the Indenture. If the 2050 Notes are redeemed prior to the Par Call Date (as defined below), the 2050 Notes will be redeemed at a
redemption price equal to the greater of (i) 100% of the principal amount of the 2050 Notes to be redeemed and (ii) as determined by the Quotation Agent, the sum of the present values of the remaining scheduled payments of interest and
principal thereon (exclusive of interest accrued and unpaid to, but not including, the date of redemption and assuming for these purposes that the 2050 Notes mature on the Par Call Date) discounted to the date of redemption on a semiannual basis,
assuming a 360-day year consisting of twelve 30-day months, at the Treasury Rate plus 30 basis points, plus, in either case, accrued and unpaid interest to, but not
including, the date of redemption. If the 2050 Notes are redeemed on or after the Par Call Date, the 2050 Notes will be redeemed at a redemption price equal to 100% of the principal amount of the 2050 Notes to be redeemed plus accrued and unpaid
interest to, but not including, the date of redemption. The Company will notify the Trustee of the redemption price of any 2050 Notes to be redeemed promptly after the calculation and the Trustee will not be responsible for such calculation. 

For purposes of determining the redemption price, the following definitions shall apply: 

“Par Call Date” means November 15, 2049. 

  
 A-5 

 “Comparable Treasury Issue” means the United States Treasury security or
securities selected by the Quotation Agent as having an actual or interpolated maturity comparable to the remaining term of the 2050 Notes to be redeemed (assuming for these purposes that the 2050 Notes mature on the Par Call Date) that would be
utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of a comparable maturity to the remaining term of such 2050 Notes. 

“Comparable Treasury Price” means, with respect to any redemption date, (A) the arithmetic average of the four Reference
Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotations or (B) if the Quotation Agent obtains fewer than four such Reference Treasury Dealer Quotations, the
arithmetic average of all such quotations for such redemption date. 
 “Primary Treasury Dealer” means a primary U.S.
Government securities dealer in The City of New York. 
 “Quotation Agent” means one of the Reference Treasury Dealers
appointed by the Company; provided, however, that if such Reference Treasury Dealer ceases to be a Primary Treasury Dealer, the Company will substitute another Primary Treasury Dealer. 

“Reference Treasury Dealer” means each of (i) BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan
Securities LLC and Wells Fargo Securities, LLC or their respective affiliates that are Primary Treasury Dealers, and, in each case, their respective successors; and (ii) two other Primary Treasury Dealers selected by the Company;
provided, however, that if any of the foregoing or their affiliates shall cease to be a Primary Treasury Dealer, the Company will substitute therefor another Primary Treasury Dealer. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the
arithmetic average, as determined by the Quotation Agent, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference
Treasury Dealer at 3:30 p.m., New York City time on the third Business Day preceding such redemption date. 
 “Treasury
Rate” means, with respect to any redemption date, the rate per annum equal to: (1) the yield, under the heading that represents the average for the immediately preceding week, appearing in the most recently published statistical
release designated “H.15” or any successor publication that is published by the Board of Governors of the Federal Reserve System and that establishes yields on actively traded United States Treasury securities adjusted to constant maturity
under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue; provided that, if no maturity is within three months before or after the remaining term of the 2050 Notes to be redeemed
(assuming for these purposes that the 2050 Notes mature on the Par Call Date), yields for the two published maturities most closely corresponding to the Comparable Treasury Issue shall be determined and the Treasury Rate shall be interpolated or
extrapolated from those yields on a straight-line basis, rounding to the nearest month; or (2) if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate
per annum equal to the 

  
 A-6 

 
semiannual equivalent yield to maturity or interpolated (on a day count basis) of the applicable Comparable Treasury Issue, assuming a price for such Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date. The Treasury Rate shall be calculated on the third Business Day preceding the redemption date. 

If less than all of the 2050 Notes are to be redeemed, the 2050 Notes to be redeemed shall be selected in accordance with Section 3.02 of
the Indenture. 
 Notice of redemption shall be given as provided in Section 3.03 of the Indenture. A notice of redemption may not be
conditional. The Trustee shall not be responsible for the calculation of the redemption price for any such redemption. The Company shall calculate such redemption price and promptly notify the Trustee thereof. 

5. If an Event of Default with respect to the 2050 Notes shall occur and be continuing, the principal and interest thereon of all of the 2050 Notes may be
declared due and payable in the manner and with the effect provided in the Indenture. 
 6. The Indenture permits, with certain exceptions as therein
provided, the Company and the Trustee to enter into supplemental indentures to the Indenture for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of modifying in any manner
the rights of the Holders of the Notes of each series under the Indenture with the consent of the Holders of not less than a majority in aggregate principal amount of the Notes at the time outstanding of each series to be affected thereby on behalf
of the Holders of all Notes of such series. In addition, the Indenture permits the Company and the Trustee to enter into supplemental indentures to the Indenture, without the consent of Holders, for certain purposes, including to cure any ambiguity
or to correct or supplement any provision contained in the Indenture and to make changes that do not adversely affect the rights of any Holder in any material respect. The Indenture also permits the Holders of a majority in aggregate principal
amount of the Notes at the time outstanding of each series on behalf of the Holders of all Notes of such series, to waive certain past defaults and their consequences with respect to such series under the Indenture. Any such consent or waiver by the
Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any 2050 Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security or such other 2050 Notes. 
 7. No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal and any premium of and any interest on this Security at the place, rate and respective times and in the coin
or currency herein and in the Indenture prescribed. 

  
 A-7 

 8. The authorized denominations of the 2050 Notes are $2,000 and any larger amount that is an integral
multiple of $1,000. As provided in the Indenture and except as provided therein and herein, the 2050 Notes are exchangeable for a like aggregate principal amount of 2050 Notes of a different authorized denomination, as requested by the Holder
surrendering the same. 
 9. As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is registrable
in the Note register, upon surrender of this Security for registration of transfer at the office of the Registrar or co-registrar designated by the Company for such purpose. Every 2050 Note presented or
surrendered for registration of transfer, exchange or payment shall (if so required by the Company, the Trustee or the Registrar) be duly endorsed, or be accompanied by a written instrument or instruments of transfer in form satisfactory to the
Company, the Trustee and the Registrar, duly executed by the Holder or its attorney duly authorized in writing. 
 Prior to due presentment
for registration of transfer, the Company, the Trustee, any Paying Agent and any Registrar may treat the Person in whose name this Security is registered as the absolute owner thereof for all purposes (subject to Section 2.A hereof), whether or
not such Security is overdue and notwithstanding any notation of ownership or other writing thereon, and neither the Company nor the Trustee nor any Paying Agent nor any Registrar shall be affected by notice to the contrary. 

No service charge shall be made for any exchange or registration of transfer of any 2050 Note, with certain exceptions, but the Company may
require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith. 
 10. This Security is a
Global Note. Accordingly, this Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such
nominee to a successor Depositary or a nominee of such a successor Depositary. Ownership of beneficial interests in this Security will be shown on, and the transfer of that ownership will be effected only through, records maintained by the
applicable Depositary or its nominee (with respect to interest of participants) and the records of participants (with respect to interests of Persons other than participants). 

So long as the Depositary or its nominee is the registered owner of this Security, the Depositary or that nominee, as the case may be, will be
considered the sole legal owner or Holder of the 2050 Notes represented by this Security for all purposes of the 2050 Notes and the Indenture. Except as provided below, owners of beneficial interests in this Security (1) will not be entitled to
have the 2050 Notes represented by this Security registered in their names, (2) will not receive or be entitled to receive physical delivery of certificated securities and (3) will not be considered the owners or Holders of the 2050 Notes
represented by that beneficial interest under the Indenture for any purpose, including with respect to the giving of any direction, instruction or approval to the Trustee. Accordingly, each Person owning a beneficial interest in this Security must
rely on the procedures of the Depositary and, if that Person is not a Depositary participant or indirect participant, on the procedures of the participant through which that Person owns its interest, to exercise any rights of a Holder of 2050 Notes
under the Indenture or this Security. 

  
 A-8 

 Except as provided in Section 2.14(b) of the Indenture, beneficial interests in this
Security may not be exchanged for certificated securities. In connection with any proposed exchange of Global Notes for certificated securities, upon request of the Trustee, there shall be provided to the Trustee all information reasonably necessary
to allow the Trustee to comply with any applicable tax reporting obligations, including without limitation any cost basis reporting obligations under Internal Revenue Code Section 6045. The Trustee may rely on the information provided to it and
shall have no responsibility to verify or ensure the accuracy of such information. 
 Payments with respect to the principal of and interest
on this Security will be payable by the Trustee to or at the direction of the Depositary or its nominee in its capacity as the registered Holder of this Security under the Indenture. Under the terms of the Indenture, the Company and the Trustee may
treat the Persons in whose names this Security are registered as the owners hereof for the purpose of receiving payment thereon (except as provided in Section 2.A hereof) and for any and all other purposes whatsoever. None of the Company, the
Trustee, any Registrar, the Paying Agent or any agent of the Company or the Trustee will have any responsibility or liability for (a) any aspect of the records relating to or payments made on account of beneficial ownership interests in this
Security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests, (b) the payments to the beneficial owners of this Security of amounts paid to the Depositary or its nominee or (c) any other
matter relating to the actions or practices of the Depositary, its nominee or any of its direct or indirect participants. 
 11. Unless otherwise defined
herein, all terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 
 12. THE INTERNAL LAW
OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THE 2050 NOTES, WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. 

  
 A-9 

 CERTIFICATE OF TRANSFER 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto 

Insert Taxpayer Identification No.: 
  

                          
                                         
                                         
                                         
                                

Please print or typewrite name and address including zip code of assignee 
  

                          
                                         
                                         
                                         
                                

the within 2050 Note and all rights thereunder, and hereby irrevocably constituting and appointing
                     attorney to transfer said 2050 Note on the books of the Registrar with full power of substitution in the
premises. 
 Dated:
                                         
            
  

	
	
NOTICE:                 
                                         
                                         
                                         
                            

	 The signature to this assignment must correspond with the name as it appears upon the face of the within 2050 Note in
every particular, without alteration or enlargement or any change whatever.

  
 A-10 

 OPTION OF HOLDER TO ELECT PURCHASE 

If you want to elect to have this 2050 Note purchased by the Company pursuant to Section 3 of the Sixteenth Supplemental Indenture, check the box below:

 ☐      Section 3 

If you want to elect to have only part of this 2050 Note purchased by the Company pursuant to Section 3 of the Sixteenth Supplemental
Indenture, state the amount you elect to have purchased: 

$                       
           
 Date:
           
  

			
	 Your
Signature:                                       
                       

 
			
		 	(Sign exactly as your name appears on the face of this Note)

 
			
	
	 Tax Identification No.:
                                         
       

 Signature Guarantee*:
                                     

 

	*	 Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to
the Trustee). 

  
 A-11 

 SCHEDULE OF INCREASES OR DECREASES OF INTERESTS IN THE GLOBAL NOTE 

The initial principal amount of this Global Note is $[●]. The following increases or decreases in the principal amount of this Global Note have been
made: 
  

									
	Date of Exchange	  	 Amount of

Decrease in
 Principal
Amount
at
Maturity
of this Global Note
	  	 Amount of

Increase in
 Principal
Amount
at
 Maturity
of this Global Note
	  	Principal
Amount at Maturity
of this Global
Note
Following such
decrease (or increase)	  	Signature of
Authorized
Signatory
of Trustee or
Custodian

  
 A-12exhibit101conformed2020c

                                                        Exhibit 10.1                                      THIRD AMENDMENT AND COMMITMENT INCREASE                  Dated as of March 13, 2020                             to       AMENDED AND RESTATED CREDIT AGREEMENT                   Dated as of January 16, 2015                            among   HELEN OF TROY TEXAS CORPORATION, a Texas corporation                       as the Borrower,         HELEN OF TROY LIMITED, a Bermuda company,                   BANK OF AMERICA, N.A.,     as Administrative Agent, Swing Line Lender and L/C Issuer,                             and                  The Other Lenders Party Hereto             PNC BANK, NATIONAL ASSOCIATION,                            and            U.S. BANK NATIONAL ASSOCIATION,                   as Co-Syndication Agents,                                          KEYBANK NATIONAL ASSOCIATION,                            and            THE HUNTINGTON NATIONAL BANK,                  as Co-Documentation Agents                                 BOFA SECURITIES, INC.,                PNC CAPITAL MARKETS LLC                             and             U.S. BANK, NATIONAL ASSOCIATION,          as Joint Lead Arrangers and Joint Book Runners                               

 

                                               THIRD AMENDMENT AND COMMITMENT INCREASE TO CREDIT AGREEMENT   THIS THIRD AMENDMENT AND COMMITMENT INCREASE TO CREDIT AGREEMENT  (this “Third Amendment”), dated effective as of March 13, 2020, is among HELEN OF TROY  LIMITED, a Bermuda company (“Limited”), the other Guarantors, HELEN OF TROY TEXAS  CORPORATION, a Texas corporation (the “Borrower”), the banks listed on the signature pages  hereof (“Lenders”) and BANK OF AMERICA, N.A., as Administrative Agent, L/C Issuer and  Swing Line Lender (in said capacity as Administrative Agent, the “Administrative Agent”).                                     BACKGROUND         A.    Borrower,  Limited,  the  Lenders,  and  Bank  of  America,  as  the  Administrative  Agent, Swing Line Lender and L/C Issuer, are parties to that certain Amended and Restated Credit  Agreement,  dated  as  of  January 16,  2015,  as  amended  by  that  certain  First  Amendment  to  Amended  and  Restated  Credit  Agreement,  dated  as  of  December  7,  2016  and  that Second  Amendment, Assumption, Consent and Ratification Agreement, dated as of March 1, 2018  (such  agreement,  as  amended  prior  to  the  effectiveness  of  this  Third  Amendment,  the  “Credit  Agreement”).  The terms defined in the Credit Agreement and not otherwise defined herein shall  be used herein as defined in the Credit Agreement.          B.    The  Borrower  and  Limited  have  requested  that  the  Lenders  amend  the  Credit  Agreement to (i) increase the Aggregate Commitments to $1,250,000,000, (ii) extend the Maturity  Date, (iii) add PNC  Bank,  National  Association, KeyBank  National  Association, and The  Huntington National  Bank as  Lenders  under  the  Credit  Agreement  (collectively,  the  “New  Lenders”), (iv) remove Truist Bank (formerly known as Branch Banking & Trust Company and  as successor by merger to SunTrust Bank), SunTrust Bank, Citibank, N.A., Fifth Third Bank, an  Ohio Banking Corporation and HSBC Bank USA, N.A. as Lenders under the Credit Agreement  (collectively, the “Exiting Lenders”) and (v) make certain other amendments thereto, as more fully  set forth herein.         C.    The Borrower, Limited, the Lenders and the Administrative Agent hereby agree to  amend the Credit Agreement, subject to the terms and conditions set forth herein.         NOW,  THEREFORE,  in  consideration  of  the  covenants,  conditions  and  agreements  hereafter set forth, and for other good and valuable consideration, the receipt and adequacy of  which are all hereby acknowledged, the Borrower, Limited, the Lenders, and the Administrative  Agent covenant and agree as follows:          §1.   Amendment  to  Credit  Agreement.  The  Credit  Agreement  (excluding  the  Schedules and Exhibits thereto) is hereby amended in its entirety and replaced with the document  attached hereto as Annex I.         §2.   Amendment  to  Restate  Schedules 2.01,  5.12(d),  5.13,  7.01,  7.02  and  7.03.   Schedules 2.01, 5.12(d), 5.13, 7.01, 7.02 and 7.03 to the Credit Agreement are hereby amended in  their entirety and replaced with the documents attached hereto as Schedules 2.01, 5.12(d), 5.13,  7.01, 7.02 and 7.03 to Annex II.       

 

      §3.   Amendment to Restate Exhibit E.  Exhibit E to the Credit Agreement is hereby  amended in its entirety and replaced with the document attached hereto as Exhibit E to Annex II.         §4.   Representations and Warranties.  By its execution and delivery hereof, each of  Borrower, Limited and the other Guarantors represents and warrants as follows:         (a)   the  representations  and  warranties  of  the  Borrower  and  each  other  Loan  Party  contained in Article V of the Credit Agreement and in each other Loan Document are true and  correct in all material respects (or in the case of such representations and warranties that are subject  to a materiality qualification, in all respects) as of the date hereof, except to the extent that such  representations and warranties specifically refer to an earlier date, in which case they shall be true  and correct in all material respects (or in the case of such representations and warranties that are  subject  to  a  materiality  qualification,  in  all  respects)  as  such  earlier  date,  and  except  that the  representations and warranties contained in subsections (a) and (b) of Section 5.05 of the Credit  Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a)  and (b) of Section 6.01 of the Credit Agreement;         (b)   no event has occurred and is continuing which constitutes a Default or an Event of  Default on the date hereof or after giving effect to this Third Amendment;         (c)   (i)  Borrower,  Limited  and  each  other  Guarantor  have all  requisite  power  and  authority  and  all  requisite  governmental  licenses,  authorizations,  consents  and  approvals  to  execute, deliver and perform their respective obligations under this Third Amendment and (ii)  Borrower  has all  requisite  power  and  authority  and  all  requisite  governmental  licenses,  authorizations, consents and approvals to execute, deliver and perform its obligations under each  amended and restated Revolving Loan Note in the amount of each Lender’s Commitment after  giving effect to this Third Amendment (the “Replacement Revolving Loan Notes”);         (d)   (i) The execution, delivery and performance by Borrower, Limited and each other  Guarantor of this Third Amendment and (ii) the execution, delivery and performance by Borrower  of the Replacement Revolving Loan Notes has been duly authorized by all necessary corporate or  other organizational action, and do not and will not (x) contravene the terms of either of such  Person’s Organization Documents; (y) conflict with or result in any breach or contravention of, or  the creation of any Lien under, or require any payment to be made under (A) any Contractual  Obligation to which either Person is a party or affecting such Person or the properties of such  Person or any of its Subsidiaries or (B) any order, injunction, writ or decree of any Governmental  Authority or any arbitral award to which either Person or its property is subject; or (z) violate any  Law.  Limited  and  each  of  its  Subsidiaries  is  in  compliance  with  all  Contractual  Obligations  referred to in clause (y)(A) above except to the extent that failure to do so could not reasonably be  expected to result in a Material Adverse Effect;         (e)   No approval, consent, exemption, authorization, or other action by, or notice to, or  filing with, any Governmental Authority or any other Person is necessary or required in connection  with the execution, delivery or performance by, or enforcement against (i) Limited, Borrower and  each other Guarantor of this Third Amendment and (ii) Borrower of the Replacement Revolving  Loan Notes;                                          2   

 

      (f)   (i) (x) This Third Amendment has been duly executed and delivered by Limited,  Borrower and each other Guarantor and (y) the Replacement Revolving Loan Notes have been  duly executed and delivered by Borrower.                 (ii) (x) This Third Amendment constitutes a legal, valid and binding obligation of        Limited,  Borrower and  each  other  Guarantor,  enforceable  against  each  such  Person  in        accordance with its terms, subject as to enforcement to any Debtor Relief Laws and general        equitable principles.  (y) The Replacement Revolving Loan Notes constitute a legal, valid        and binding obligation of Borrower, enforceable against Borrower in accordance with their        terms,  subject  as  to  enforcement  to  any  Debtor  Relief  Laws  and  general  equitable        principles.          §5.   Conditions to Effectiveness.  This Third Amendment shall become effective as of  the date set forth above upon the satisfaction of the following conditions:         (a)   the  Administrative  Agent  shall  have  received  counterparts  of  this  Third  Amendment  duly  executed  by  the  Lenders and  acknowledged  by  the  Exiting  Lenders  for  the  purpose of Section 6 hereof only;          (b)   the  Administrative  Agent  shall  have  received  counterparts  of  this  Third  Amendment duly executed by the Borrower and Limited and acknowledged by each Guarantor;         (c)   the  Administrative  Agent  shall  have  received  fully-executed  Replacement  Revolving Loan Notes for each New Lender and each other Lender whose Commitment is revised  pursuant to this Third Amendment;         (d)   each  of  the  conditions  set  forth  in Section  4.02(a) and 4.02(b) shall  have  been  satisfied (as if the Borrower were Borrowing as of the date of this Third Amendment);            (e)   the  Administrative  Agent  shall  have  received  a  (i) Secretary’s  Certificate  of  Borrower,  containing  Exhibit A,  Unanimous  Written  Consent  of  the  Board  of  Directors  of  Borrower approving the execution, delivery and performance of this Third Amendment and the  Replacement  Revolving  Loan  Notes,  and  Exhibit B,  Incumbency;  (ii)  a Certificate  of  Fact,  certified by the Texas Secretary of State for Borrower; (iii) a print out of the franchise tax details  page  from  the  Texas comptroller  for  Borrower  and  (iv) Certificate  of  Limited,  containing  Exhibit A, Unanimous Consent or Resolutions of the Board of Directors of Limited, and Exhibit  B, Incumbency, in each case, in form reasonably satisfactory to the Administrative Agent;          (f)   the  Administrative  Agent  shall  have  received  opinions  of  legal  counsel  to  the  Borrower and Limited in form reasonably satisfactory to the Administrative Agent;         (g)   the Administrative Agent shall have received for its benefit and the benefit of each  Lender (other than the Exiting Lenders) and BofA Securities, Inc. the fees in immediately available  funds as agreed upon by the Borrower, Limited, the Administrative Agent, BofA Securities, Inc.  and the Lenders;         (h)   the Administrative Agent shall have received all invoiced out of pocket fees and  expenses due and owing in connection with this Third Amendment;                                          3   

 

      (i)   the  legal  fees  and  expenses  of  Greenberg  Traurig,  LLP,  counsel  for  the  Administrative Agent, shall have been paid in immediately available funds;          (j)   the  Administrative  Agent  and  the  Lenders  shall  have  received  copies  of  (i) pro  forma financial statements of the Borrower giving effect to the closing of the Third Amendment  and (ii) projections for the Borrower and its Subsidiaries for the three years following the Third  Amendment Effective Date;         (k)   the Administrative Agent shall have received a certificate signed by a Responsible  Officer of Limited certifying (A) that there has been no event or circumstance since February 28,  2019 that has had or could be reasonably expected to have, either individually or in the aggregate,  a Material Adverse Effect; and (B) a pro forma calculation of the Net Leverage Ratio (after giving  effect to the Credit Extensions made as of the Third Amendment Effective Date) as of August 31,  2019 would not be greater than 1.19 to 1.00;          (l)   upon the reasonable request of any Lender, the Borrower shall have provided to  such Lender, and such Lender shall be reasonably satisfied with, the documentation and other  information so requested in connection with applicable “know your customer” and anti-money- laundering rules and regulations, including, without limitation, the PATRIOT Act, and any Loan  Party that qualifies as a “legal entity customer” under the Beneficial Ownership Regulation shall  deliver, to each Lender that so requests, a Beneficial Ownership Certification in relation to such  Loan Party;         (m)   the  Administrative  Agent  shall  have  received searches  of  UCC  filings  in  the  jurisdiction of incorporation or formation, as applicable, of each Loan Party and copies of the  financing statements on file in such jurisdictions;          (n)   the Exiting Lenders shall have received payment in full in immediately available  funds for all amounts due them under the Credit Agreement and the other Loan Documents; and         (o)   the Administrative Agent shall have received, in form and substance satisfactory to  the Administrative Agent and its counsel, such other documents, certificates and instruments as  the Administrative Agent shall reasonably require.         §6.   Exiting Lenders.  By acknowledging and agreeing as provided on the signature  pages hereof, each of the Exiting Lenders, upon satisfaction of the conditions to effectiveness set  forth in Section 5 of this Third Amendment, shall not (a) be a Lender under the Credit Agreement  nor (b) have any rights or obligations with respect to being a Lender, except for those that expressly  survive termination of the Credit Agreement or termination of any Commitment thereunder.            §7.   Reference to the Credit Agreement.         (a)   Upon  the  effectiveness  of  this Third  Amendment,  each  reference  in  the  Credit  Agreement  to  “this  Agreement”,  “hereunder”,  or  words  of  like  import  shall  mean  and  be  a  reference to the Credit Agreement, as affected and amended hereby.                                          4   

 

      (b)   The Credit Agreement, as amended by the amendments referred to above, shall  remain in full force and effect and is hereby ratified and confirmed.         §8.   Costs, Expenses and Taxes. The  Borrower  agrees  to  pay  on  demand  all  reasonable costs and expenses of the Administrative Agent in connection with the preparation,  reproduction,  execution  and  delivery  of  this  Third  Amendment  and  the  other  instruments  and  documents to be delivered hereunder (including the reasonable fees and out-of-pocket expenses of  counsel for the Administrative Agent with respect thereto).         §9.   Guarantor’s Acknowledgment.  By  signing  below,  Limited  and  each  other  Guarantor (a) acknowledges, consents and agrees to the execution, delivery and performance by  Borrower and Limited of this Third Amendment, (b) acknowledges and agrees that its obligations  in respect of its Guaranty (i) are not released, diminished, waived, modified, impaired or affected  in any manner by this Third Amendment or any of the provisions contemplated herein, and (ii)  also  covers  the  Aggregate  Commitments  and  the  Revolving  Loans  as  increased  by  this  Third  Amendment, (c) ratifies and confirms its obligations under its Guaranty, and (d) acknowledges  and agrees that it has no claims or offsets against, or defenses or counterclaims to, its Guaranty.         §10.  New Lender Representations and Agreements.  (a) Each New Lender represents  and warrants that (i) it has full power and authority, and has taken all action necessary, to execute  and deliver this Third Amendment and to consummate the transactions contemplated hereby and  to become a Lender under the Credit Agreement, (ii) it meets all the requirements to be an assignee  under the terms of the Credit Agreement, (iii) from and after the Third Amendment Effective Date,  it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and shall have  the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire  assets  of  the  type  represented  by  the  Revolving  Loans  and  either  it,  or  the  Person  exercising  discretion in making its decision to acquire such Revolving Loans, is experienced in acquiring  assets of such type, (v) it has received a copy of the Credit Agreement and other Loan Documents  requested by it, and has received or has been accorded the opportunity to receive copies of the  most recent financial statements delivered pursuant to Section 6.01 of the Credit Agreement, as  applicable, and such other documents and information as it deems appropriate to make its own  credit analysis and decision to enter into this Third Amendment and to purchase such Loans, and  (vi) it has, independently and without reliance upon the Administrative Agent or any other Lender  and based on such documents and information as it has deemed appropriate, made its own credit  analysis and decision to enter into this Third Amendment and join the Credit Agreement and the  other Loan Documents as a Lender and to purchase and make, as the case may be, its Applicable  Percentage (after giving effect to this Third Amendment) of the Revolving Loans; and (b) agrees  that (i) it will, independently and without reliance upon the Administrative Agent, or any other  Lender, and based on such documents and information as it shall deem appropriate at the time,  continue to make its own credit decisions in taking or not taking action under the Loan Documents,  and (ii) it will perform in accordance with their terms all of the obligations which by the terms of  the  Loan  Documents  are  required  to  be  performed  by  it  as  a  Lender.   Pursuant  to  Section 10.06(b)(iii) of the Credit Agreement, the Borrower, the Administrative Agent, the L/C  Issuer and the Swing Line Lender hereby consent to the assignment to each New Lender provided  for herein.         §11.  Purchase/Sale by Lenders.  Simultaneously with the satisfaction of the conditions  to  effectiveness  set  forth  in  Section 5 of  this  Third  Amendment,  each  Lender  (other  than  the                                        5   

 

Exiting Lenders) shall purchase or sell (as the case may be), without recourse, an amount of the  Revolving Loans outstanding such that, after giving effect to this Third Amendment, the amount  of each Lender’s Commitment utilized and the amount of Revolving Loans owed to each Lender  will be equal to its Applicable Percentage thereof after giving effect to the Third Amendment.  The  Borrower shall pay each Lender compensation for any losses pursuant to and in accordance with  the provisions of Section 3.05 of the Credit Agreement as a result of any purchases or sales. Each  Lender hereby waives the requirement in Section 2.13 of the Credit Agreement that all payments  on the Obligations be made pro rata solely for purposes of payment of all Obligations due and  owing to the Exiting Lenders.         §12.  Execution  in  Counterparts.  This  Third  Amendment  may  be  executed  in  any  number of counterparts and by different parties  hereto in separate counterparts, each of which  when so executed and delivered shall be deemed to be an original and all of which when taken  together shall constitute but one and the same instrument.  For purposes of this Third Amendment,  a counterpart hereof (or signature page thereto) signed and transmitted by any Person party hereto  to  the  Administrative  Agent  (or  its  counsel)  by  facsimile  machine,  email  or  other  electronic  imaging means (e.g. “pdf” or “tif”) is to be treated as an original.  The signature of such Person  thereon, for purposes hereof, is to be considered as an original signature, and the counterpart (or  signature page thereto) so transmitted is to be considered to have the same binding effect as an  original signature on an original document.         §13.  Governing Law; Binding Effect.  This Third Amendment shall be governed by  and construed in accordance with the laws of the State of Texas applicable to agreements made  and to be performed entirely within such state, provided that each party shall retain all rights arising  under federal law, and shall be binding upon the parties hereto and their respective successors and  assigns.  This Third Amendment is a Loan Document.         §14.  Headings.  Section  headings  in  this  Third  Amendment  are  included  herein  for  convenience of reference only and shall not constitute a part of this Third Amendment for any  other purpose.         §15.  ENTIRE AGREEMENT.  THE CREDIT AGREEMENT, AS AMENDED BY  THIS THIRD AMENDMENT,  AND THE OTHER LOAN DOCUMENTS REPRESENT  THE  FINAL  AGREEMENT  BETWEEN  THE  PARTIES  AND  MAY  NOT  BE  CONTRADICTED  BY  EVIDENCE  OF  PRIOR,  CONTEMPORANEOUS,  OR  SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.  THERE ARE NO  UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.                  REMAINDER OF PAGE LEFT INTENTIONALLY BLANK                                          6   

 

         IN WITNESS WHEREOF, this Third Amendment is executed as of the date first set  forth above.                                       BORROWER:                                       HELEN OF TROY TEXAS CORPORATION,                                       a Texas corporation                                        By:   /s/ Brian Grass                                                           Brian Grass                                            Chief Financial Officer                                                                                                                                                                     LIMITED:                                                                            HELEN OF TROY LIMITED, a Bermuda                                      corporation                                        By:   /s/ Brian Grass                                                           Brian Grass                                            Chief Financial Officer         Signature Page to Third Amendment and Commitment Increase to Credit Agreement    

 

                                                  BANK OF AMERICA, N.A.,                                    as Administrative Agent                                                                                                                                                By:   /s/ Adam Rose                                                     Name: Adam Rose                                                         Title: SVP                                                                  Signature Page to Third Amendment and Commitment Increase to Credit Agreement                 

 

                                                   BANK OF AMERICA, N.A.,                                    as a Lender, L/C Issuer and Swing Line                                    Lender                                                                                                                                                By:   /s/ Adam Rose                                                     Name: Adam Rose                                                         Title: SVP                                                                  Signature Page to Third Amendment and Commitment Increase to Credit Agreement                 

 

                                                   PNC BANK, NATIONAL ASSOCIATION,                                     as a Lender                                                                                                                                                By:   /s/ Andrea Kinnik                                                 Name: Andrea Kinnik                                                     Title: Senior Vice President                                 Signature Page to Third Amendment and Commitment Increase to Credit Agreement                 

 

                                                   U.S. BANK NATIONAL ASSOCIATION,                                     as a Lender                                                                                                                                                By:   /s/ Kara P. Van Duzee                                             Name: Kara P. Van Duzee                                                 Title: Vice President                                                                                                                                        Signature Page to Third Amendment and Commitment Increase to Credit Agreement                 

 

                                                   BMO HARRIS BANK N.A., as a Lender                                                                                                                                                By:   /s/ Chad Beltz                                                    Name: Chad Beltz                                                        Title: Vice President                                                                                                                                                       Signature Page to Third Amendment and Commitment Increase to Credit Agreement                 

 

                                                   KEYBANK NATIONAL ASSOCIATION,                                     as a Lender                                                                                                                                                By:   /s/ Marianne T. Meil                                              Name: Marianne T. Meil                                                  Title: Sr. Vice President                                                                                                               Signature Page to Third Amendment and Commitment Increase to Credit Agreement                 

 

                                                   WELLS FARGO BANK, N.A., as a Lender                                                                                                                                                By:   /s/ Joseph Gricco                                                 Name: Joseph Gricco                                                     Title: Director                                              Signature Page to Third Amendment and Commitment Increase to Credit Agreement                 

 

                                                   THE HUNTINGTON NATIONAL BANK,                                     as a Lender                                                                                                                                                By:   /s/ Martin H. McGinty                                             Name: Martin H. McGinty                                                 Title: Director                                                                                                                Signature Page to Third Amendment and Commitment Increase to Credit Agreement                 

 

                                                   JPMORGAN CHASE BANK, N.A.,                                     as a Lender                                                                                                                                                By:   /s/ Blakely Engel                                                 Name: Blakely Engel                                                     Title: Vice President                                                                                                                                                                               Signature Page to Third Amendment and Commitment Increase to Credit Agreement                 

 

                                                   COMERICA BANK, as a Lender                                                                                                                                                By:   /s/ Gerald R. Finney Jr.                                          Name: Gerald R. Finney Jr.                                              Title: Vice President                                                                                                                               Signature Page to Third Amendment and Commitment Increase to Credit Agreement                 

 

                                                   ACKNOWLEDGED AND AGREED BY                                    EXITING LENDERS FOR PURPOSES OF                                    SECTION 6 HEREOF ONLY:                                                                        TRUIST BANK (formerly known as Branch                                    Banking and Trust Company and as successor                                    by merger to SunTrust Bank), as a Lender                                                                                                                                                By:   /s/ Justin Lien                                                   Name: Justin Lien                                                       Title: Director                                                                                  Signature Page to Third Amendment and Commitment Increase to Credit Agreement                 

 

                                                   ACKNOWLEDGED AND AGREED BY                                    EXITING LENDERS FOR PURPOSES OF                                    SECTION 6 HEREOF ONLY:                                                                        CITIBANK, N.A., as a Lender                                                                                                                                                By:   /s/ Timicka Anderson                                              Name: Timicka Anderson                                                  Title: Authorized Signatory                                                                                     Signature Page to Third Amendment and Commitment Increase to Credit Agreement                 

 

                                                   ACKNOWLEDGED AND AGREED BY                                    EXITING LENDERS FOR PURPOSES OF                                    SECTION 6 HEREOF ONLY:                                                                        FIFTH THIRD BANK, an Ohio Banking                                    Corporation, as a Lender                                                                                                                                                By:   /s/ James Holacka                                                 Name: James Holacka                                                     Title: Director - UP                                                                                      Signature Page to Third Amendment and Commitment Increase to Credit Agreement                 

 

                                                   ACKNOWLEDGED AND AGREED BY                                    EXITING LENDERS FOR PURPOSES OF                                    SECTION 6 HEREOF ONLY:                                                                        HSBC BANK USA, N.A., as a Lender                                                                                                                                                By:   /s/ Chase Gavin                                                   Name: Chase Gavin                                                       Title: Vice President                                                                                     Signature Page to Third Amendment and Commitment Increase to Credit Agreement                 

 

    ACKNOWLEDGED AND AGREED PURSUANT TO SECTION 9 ABOVE:    GUARANTORS:    HELEN OF TROY L.P.,  a Texas limited partnership  By:   HELEN OF TROY NEVADA CORPORATION,        a Nevada corporation, General Partner  HELEN OF TROY LIMITED,  a Bermuda company  HELEN OF TROY LIMITED,  a Barbados corporation  HOT NEVADA, INC.,  a Nevada corporation  HELEN OF TROY TEXAS CORPORATION,  a Texas corporation  HELEN OF TROY NEVADA CORPORATION,  a Nevada corporation  IDELLE LABS LTD.,   a Texas limited partnership  By:   HELEN OF TROY NEVADA CORPORATION,         a Nevada corporation, General Partner  OXO INTERNATIONAL LTD.,   a Texas limited partnership  By:   HELEN OF TROY NEVADA CORPORATION,         a Nevada corporation, General Partner  PUR WATER PURIFICATION PRODUCTS, INC.,   a Nevada corporation  KAZ, INC.,  a New York corporation  KAZ USA, INC.,   a Massachusetts corporation  KAZ CANADA, INC.,  a Massachusetts corporation  STEEL TECHNOLOGY, LLC,  an Oregon limited liability company  DRYBAR PRODUCTS LLC,  a Delaware limited liability company      By:   /s/ Brian L. Grass                          Brian L. Grass        Title for all: Chief Financial Officer        Signature Page to Third Amendment and Commitment Increase to Credit Agreement    

 

                                                                                  NOTARIAL CERTIFICATE OF Rosemary Vasquez    NOTARY PUBLIC DO HEREBY CERTIFY AND ATTEST that on the day of the date hereof  personally came and appeared before me Brian L. Grass, the duly authorized Chief Financial  Officer of Helen of Troy Limited, a Barbados corporation, one of the executing parties to the  within written document and did in my presence sign and deliver the same as and for his free and  voluntary act and deed.    IN FAITH AND TESTIMONY WHEREOF I the said Rosemary Vasquez have hereunto set and  subscribed my name and caused my Seal of Office to be hereunto put and affixed this 12th day  of March, 2020.           Signature Page to Third Amendment and Commitment Increase to Credit Agreement    

 

    HELEN OF TROY MACAO COMMERCIAL OFFSHORE  LIMITED,   a Macau corporation      By:   /s/ Tessa Judge                             Name: Tessa Judge                           Title: Director                                Signature Page to Third Amendment and Commitment Increase to Credit Agreement    

 

                                    Annex I   Credit Agreement     [Attached hereto]                            

 

                                                                                                                              Published CUSIP Number: 42308KAE6                                                                      42308KAF3                   AMENDED AND RESTATED CREDIT AGREEMENT                              Dated as of January 16, 2015                                       among              HELEN OF TROY TEXAS CORPORATION, a Texas corporation                                  as the Borrower,                    HELEN OF TROY LIMITED, a Bermuda company,                              BANK OF AMERICA, N.A.,                as Administrative Agent, Swing Line Lender and L/C Issuer,                                        and                             The Other Lenders Party Hereto                        PNC BANK, NATIONAL ASSOCIATION,                                       and                       U.S. BANK, NATIONAL ASSOCIATION,                              as Co-Syndication Agents,                                                                KEYBANK NATIONAL ASSOCIATION,                                       and                       THE HUNTINGTON NATIONAL BANK,                             as Co-Documentation Agents                               BOFA SECURITIES, INC.,                           PNC CAPITAL MARKETS LLC                                        and                        U.S. BANK, NATIONAL ASSOCIATION,                     as Joint Lead Arrangers and Joint Book Runners                                  Conformed to include  First Amendment to Credit Agreement, dated as of December 7, 2016, that Second Amendment,    Assumption, Consent and Ratification Agreement, dated as of March 1, 2018 and that Third     Amendment and Commitment Increase to Credit Agreement, dated as of March 13, 2020                                               

 

                               TABLE OF CONTENTS                                                                             Page   ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS ....................................................... 6    1.01     Defined Terms ........................................................................................................ 6    1.02     Other Interpretive Provisions ............................................................................. 44    1.03     Accounting Terms ................................................................................................ 45    1.04     Rounding .............................................................................................................. 46    1.05     Times of Day ......................................................................................................... 46    1.06     Letter of Credit Amounts .................................................................................... 46    1.07     Exchange Rates; Currency Equivalents; Increases .......................................... 47    1.08     Additional Alternative Currencies ..................................................................... 48    1.09     Calculation of Consolidated Total Assets .......................................................... 48    1.10     Change of Currency ............................................................................................ 48  ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS ...................................... 49    2.01     Revolving Loans ................................................................................................... 49    2.02     Borrowings, Conversions and Continuations of Revolving Loans .................. 49    2.03     Letters of Credit ................................................................................................... 51    2.04     Swing Line Loans ................................................................................................. 61    2.05     Prepayments ......................................................................................................... 64    2.06     Termination or Reduction of Commitments ..................................................... 65    2.07     Repayment of Loans ............................................................................................ 65    2.08     Interest .................................................................................................................. 65    2.09     Fees ........................................................................................................................ 66    2.10     Computation of Interest and Fees ...................................................................... 67    2.11     Evidence of Debt .................................................................................................. 67    2.12     Payments Generally; Administrative Agent’s Clawback ................................ 68    2.13     Sharing of Payments by Lenders ....................................................................... 70    2.14     Increase in Commitments ................................................................................... 71    2.15     Cash Collateral .................................................................................................... 73    2.16     Defaulting Lenders .............................................................................................. 74  ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY ........................................ 76    3.01     Taxes ..................................................................................................................... 76    3.02     Illegality ................................................................................................................ 81    3.03     Inability to Determine Rates ............................................................................... 82    3.04     Increased Costs; Reserves on Eurodollar Rate Loans ..................................... 82    3.05     Compensation for Losses .................................................................................... 84    3.06     Mitigation Obligations; Replacement of Lenders ............................................. 85    3.07     Survival ................................................................................................................. 85    3.08     LIBOR Successor Rate ........................................................................................ 85  ARTICLE IV. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS .............................. 87    4.01     Conditions of Initial Credit Extension ............................................................... 87    4.02     Conditions to all Credit Extensions ................................................................... 89                                          i 

 

   ARTICLE V. REPRESENTATIONS AND WARRANTIES ...................................................... 89    5.01     Existence, Qualification and Power; Compliance with Laws .......................... 90    5.02     Authorization; No Contravention ...................................................................... 90    5.03     Governmental Authorization; Other Consents ................................................ 90    5.04     Binding Effect ...................................................................................................... 90    5.05     Financial Statements; No Material Adverse Effect .......................................... 90    5.06     Litigation .............................................................................................................. 91    5.07     No Default ............................................................................................................. 91    5.08     Ownership of Property; Liens ............................................................................ 91    5.09     Environmental Compliance ................................................................................ 91    5.10     Insurance .............................................................................................................. 92    5.11     Taxes ..................................................................................................................... 92    5.12     ERISA Compliance .............................................................................................. 92    5.13     Subsidiaries; Equity Interests ............................................................................. 93    5.14     Margin Regulations; Investment Company Act ............................................... 93    5.15     Disclosure ............................................................................................................. 94    5.16     Compliance with Laws ........................................................................................ 94    5.17     Intellectual Property; Licenses, Etc ................................................................... 94    5.18     Solvency ................................................................................................................ 94    5.19     Taxpayer Identification Number ....................................................................... 95    5.20     Sanctions Concerns and Anti-Corruption Laws ............................................... 95    5.21     Representations as to Foreign Obligors ............................................................. 95    5.22     EEA Financial Institution ................................................................................... 96    5.23     Beneficial Ownership Certification .................................................................... 96    5.24     Covered Entities ................................................................................................... 96  ARTICLE VI. AFFIRMATIVE COVENANTS .......................................................................... 96    6.01     Financial Statements ........................................................................................... 96    6.02     Certificates; Other Information ......................................................................... 97    6.03     Notices ................................................................................................................... 98    6.04     Payment of Obligations ....................................................................................... 99    6.05     Preservation of Existence, Etc ............................................................................ 99    6.06     Maintenance of Properties ................................................................................ 100    6.07     Maintenance of Insurance ................................................................................. 100    6.08     Compliance with Laws ...................................................................................... 100    6.09     Books and Records ............................................................................................ 100    6.10     Inspection Rights ............................................................................................... 100    6.11     Use of Proceeds .................................................................................................. 100    6.12     Anti-Corruption Laws; Sanctions .................................................................... 101    6.13     Post-Closing Matters ......................................................................................... 101    6.14     Approvals and Authorizations ......................................................................... 101    6.15     Covenant to Guarantee Obligations ................................................................ 101  ARTICLE VII. NEGATIVE COVENANTS .............................................................................. 102    7.01     Liens .................................................................................................................... 102    7.02     Investments ......................................................................................................... 104    7.03     Indebtedness ....................................................................................................... 106                                          ii 

 

     7.04     Fundamental Changes ....................................................................................... 109    7.05     Dispositions ......................................................................................................... 109    7.06     Restricted Payments .......................................................................................... 111    7.07     Change in Nature of Business ........................................................................... 112    7.08     Transactions with Affiliates .............................................................................. 112    7.09     Burdensome Agreements .................................................................................. 112    7.10     Use of Proceeds .................................................................................................. 113    7.11     Financial Covenants .......................................................................................... 113    7.12     Amendments of Subordinated Indebtedness .................................................. 114    7.13     Licenses ............................................................................................................... 114    7.14     Sanctions ............................................................................................................. 114    7.15     Anti-Corruption Laws ....................................................................................... 114  ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES .................................................. 114    8.01     Events of Default ................................................................................................ 114    8.02     Remedies Upon Event of Default ..................................................................... 116    8.03     Application of Funds ......................................................................................... 117  ARTICLE IX. ADMINISTRATIVE AGENT ............................................................................ 118    9.01     Appointment and Authority ............................................................................. 118    9.02     Rights as a Lender ............................................................................................. 118    9.03     Exculpatory Provisions ..................................................................................... 118    9.04     Reliance by Administrative Agent ................................................................... 120    9.05     Delegation of Duties ........................................................................................... 120    9.06     Resignation of Administrative Agent ............................................................... 120    9.07     Non-Reliance on Administrative Agent and Other Lenders ......................... 122    9.08     No Other Duties, Etc ......................................................................................... 122    9.09     Administrative Agent May File Proofs of Claim ............................................ 123    9.10     Collateral and Guaranty Matters .................................................................... 123    9.11     ERISA Plan Assets ............................................................................................. 124  ARTICLE X. MISCELLANEOUS ............................................................................................ 125    10.01    Amendments, Etc ............................................................................................... 125    10.02    Notices; Effectiveness; Electronic Communication ........................................ 127    10.03    No Waiver; Cumulative Remedies ................................................................... 129    10.04    Expenses; Indemnity; Damage Waiver ........................................................... 130    10.05    Payments Set Aside ............................................................................................ 132    10.06    Successors and Assigns ...................................................................................... 132    10.07    Treatment of Certain Information; Confidentiality ....................................... 137    10.08    Right of Setoff .................................................................................................... 138    10.09    Interest Rate Limitation .................................................................................... 139    10.10    Counterparts; Integration; Effectiveness ........................................................ 139    10.11    Survival of Representations and Warranties .................................................. 139    10.12    Severability ......................................................................................................... 139    10.13    Replacement of Lenders .................................................................................... 140    10.14    Governing Law; Jurisdiction; Etc .................................................................... 140    10.15    Waiver of Jury Trial .......................................................................................... 141    10.16    USA PATRIOT Act ........................................................................................... 142                                          iii 

 

                10.17    No Advisory or Fiduciary Responsibility ........................................................ 142  10.18    Electronic Execution of Assignments and Certain Other Documents .......... 142  10.19    Judgment Currency ........................................................................................... 143  10.20    ENTIRE AGREEMENT ................................................................................... 143  10.21    Keepwell ............................................................................................................. 143  10.22    Acknowledgment and Consent to Bail-In of Affected Financial           Institutions .......................................................................................................... 144  10.23    Acknowledgment Regarding Any Supported QFCs ...................................... 144  10.24    Addition of Guarantors ..................................................................................... 145                                        iv 

 

   SCHEDULES         1.01(a)            1.01(b)            2.01               5.12(d)            5.13               5.20               6.13               7.01               7.02               7.03               10.02        EXHIBITS                     Form of         A     Revolving Loan Notice         B     Swing Line Loan Notice         C     Revolving Loan Note         D     Swing Line Note         E     Compliance Certificate         F     Assignment and Assumption         G     Guaranty         H     Forms of U.S. Tax Compliance Certificates                                          v 

 

                 AMENDED AND RESTATED CREDIT AGREEMENT         This AMENDED AND RESTATED CREDIT AGREEMENT (“Agreement”) is entered  into as of January 16, 2015, among HELEN OF TROY TEXAS CORPORATION, a corporation  duly  organized  under  the  laws  of  the  State  of  Texas  (the  “Borrower”),  HELEN  OF  TROY  LIMITED,  a  Bermuda  company (“Limited”),  each  lender  from  time  to  time  party  hereto  (collectively, the “Lenders” and individually, a “Lender”), and BANK OF AMERICA, N.A., as  Administrative Agent, Swing Line Lender and L/C Issuer.         Helen of Troy L.P., Limited, certain Lenders and Bank of America, N.A., as administrative  agent, are parties to that certain Credit Agreement dated as of December 30, 2010 (said Credit  Agreement,  as  amended,  modified  and  supplemented  from  time  to  time,  the “Existing  Credit  Agreement”).         The Borrower has requested that the Existing Credit Agreement be amended and restated  in its entirety, and the Lenders are willing to do so on the terms and conditions set forth herein.         In  consideration  of  the  mutual  covenants  and  agreements  herein  contained,  the  parties  hereto  covenant  and  agree to  amend  and  restate  the  Existing  Credit  Agreement  in  its  entirety  effective as of the date hereof to read as follows:                                    ARTICLE I.                    DEFINITIONS AND ACCOUNTING TERMS         1.01  Defined Terms.  As used in this Agreement, the following terms shall have the  meanings set forth below:         “Acquisition” means the acquisition by any Person of (a) a majority of the Equity Interests  of  another  Person,  (b) all  or  substantially  all  of  the  assets  of  another  Person  or  (c) all  or  substantially all of a line of business of another Person, in each case (i) whether or not involving a  merger or consolidation with such other Person and (ii) whether in one transaction or a series of  related transactions.         “Acquisition  Consideration”  means  the  consideration  given  by  Limited  or  any  of  its  Subsidiaries  for  an  Acquisition,  including  but  not  limited  to  the  sum  of  (without  duplication)  (a) the fair market value of any cash or property (excluding Equity Interests) or services given,  plus  (b) the  amount  of  any  Indebtedness  assumed,  incurred  or  guaranteed  (to  the  extent  not  otherwise included) in connection with such Acquisition by Limited or any of its Subsidiaries.         “Act” means the  USA  PATRIOT  Act  (Title III  of  Pub. L. 107-56  (signed  into  law  October 26, 2001)).         “Adjustment” has the meaning specified in Section 3.08.         “Administrative Agent” means Bank of America in its capacity as administrative agent  under any of the Loan Documents, or any successor administrative agent.     

 

         “Administrative  Agent’s  Office”  means  the  Administrative  Agent’s  address  and,  as  appropriate,  account  as  set  forth  on Schedule 10.02,  or  such  other  address  or  account  as  the  Administrative Agent may from time to time notify to the Borrower and the Lenders.         “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied  by the Administrative Agent.         “Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK  Financial Institution.         “Affiliate” means, at any time, and with respect to any Person, any other Person that at  such time directly or indirectly through one or more intermediaries Controls, or is Controlled by,  or is under common Control with, such first Person.  As used in this definition, “Control” means  the  possession,  directly  or  indirectly,  of  the  power  to  direct  or  cause  the  direction  of  the  management and policies  of a Person,  whether through the ownership of voting securities, by  contract or otherwise, and “Controlled” has the meaning correlative thereto.  Unless the context  otherwise clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of Limited.         “Agent Parties” has the meaning specified in Section 10.02(c).         “Aggregate Commitments” means the Commitments of all the Lenders.  As of the Third  Amendment Effective Date, the amount of the Aggregate Commitments is $1,250,000,000.          “Agreement” means this Credit Agreement.         “Agreement Currency” has the meaning specified in Section 10.19.         “Alternative Currency” means each of Euro, Sterling, Canadian dollars, Swiss Francs and  Hong Kong dollars and each other currency (other than Dollars) that is approved in accordance  with Section 1.08.         “Alternative  Currency  Equivalent”  means,  at  any time,  with  respect  to  any  amount  denominated in Dollars, the equivalent amount thereof in the applicable Alternative Currency as  determined by the Administrative Agent or the L/C Issuer, as the case may be, at such time on the  basis of the Spot Rate (determined in respect of the most recent Revaluation Date) for the purchase  of such Alternative Currency with Dollars.         “Annex” has the meaning specified in Section 5.20(a).         “Applicable Foreign Obligor Documents” has the meaning specified in Section 5.22.         “Applicable Law” means (a) in respect of any Person, all provisions of Laws applicable to  such Person, and all orders and decrees of all courts and determinations of arbitrators applicable  to such Person and (b) in respect of contracts made or performed in the State of Texas, “Applicable  Law” shall also mean the laws of the United States of America, including, without limitation in  addition to the foregoing, 12 USC Sections 85 and 86, and any other statute of the United States  of America now or at any time hereafter prescribing the maximum rates of interest on loans and  extensions of credit, and the laws of the State of Texas.    

 

         “Applicable Percentage” means with respect to any Lender at any time, the percentage  (carried  out  to  the  ninth  decimal  place)  of  the  Aggregate  Commitments  represented  by  such  Lender’s  Commitment at  such time, subject  to  adjustment as  provided in Section 2.16.  If the  commitment of each Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit  Extensions have been terminated pursuant to Section 8.02 or if the Aggregate Commitments have  expired,  then  the  Applicable  Percentage  of  each  Lender  shall  be  determined  based  on  the  Applicable Percentage of such Lender most recently in effect, giving effect to any subsequent  assignments and to any Lender’s status as a Defaulting Lender at the time of determination.  The  initial Applicable Percentage of each Lender is set forth opposite the name of such Lender on  Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a  party hereto, as applicable.         “Applicable Rate” means, from to time, the following percentages per annum, based upon  the Net Leverage Ratio as set forth in the most recent Compliance Certificate received by the  Administrative Agent pursuant to Section 6.02(a):     Pricing         Net Leverage Ratio        Commitment  Eurodollar Rate Base Rate    Level                                        Fee       for Loans and for Loans                                                          Letters of Credit      I    Less than 1.50 to 1.00               0.150%       1.000%      0.000%      II   Greater than or equal to 1.50 to 1.00 but less 0.200% 1.125%  0.125%           than 2.00 to 1.00     III   Greater than or equal to 2.00 to 1.00 but less 0.250% 1.375%  0.375%           than 2.50 to 1.00     IV    Greater than or equal to 2.50 to 1.00 but less 0.300% 1.625%  0.625%           than 3.00 to 1.00      V    Greater than or equal to 3.00 to 1.00 but less 0.350% 1.875%  0.875%           than 3.50 to 1.00     VI    Greater than or equal to 3.50 to 1.00 0.400%      2.000%      1.000%          Any  increase  or  decrease  in  the  Applicable  Rate  resulting  from  a  change  in  the Net  Leverage Ratio shall become effective as of the first Business Day immediately following the date  a Compliance Certificate is delivered pursuant to Section 6.02(a); provided, however, that if a  Compliance Certificate is not delivered when due in accordance with such Section 6.02(a), then,  upon the request of the Required Lenders, Pricing Level VI shall apply as of the third Business  Day after the date on which such Compliance Certificate was required to have been delivered and  shall remain in effect until the first Business Day immediately following the date such Compliance  Certificate is actually delivered to the Administrative Agent.  Notwithstanding the foregoing, the  Applicable  Rate  in  effect  from  and  after  the Third  Amendment  Effective Date  through  and  including the date the Compliance Certificate is delivered pursuant to Section 6.02(a) for the first  fiscal quarter ending after the Third Amendment Effective Date shall be Pricing Level I.         Notwithstanding anything to the contrary contained in this definition, the determination of  the Applicable Rate for any period shall be subject to the provisions of Section 2.10(b).         “Applicable Time” means, with respect to any payments in any Alternative Currency, the  local time in the place of settlement for such Alternative Currency as may be determined by the    

 

   Administrative Agent or the L/C Issuer, as the case may be, to be necessary for timely settlement  on the relevant date in accordance with normal and customary banking procedures in the place of  payment.         “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an  Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a  Lender.         “Arranger” means, collectively, BofA Securities, Inc., PNC Capital Markets LLC and  U.S.  Bank, National Association each in their capacity as a joint lead arranger and a joint bookrunner.         “Assignment and Assumption” means  an assignment and assumption entered into by a  Lender and an Eligible Assignee (with the consent of any party whose consent is required by  Section 10.06(b)), and accepted by the Administrative Agent, in substantially the form of Exhibit F  or any other form (including electronic documentation generated by use of an electronic platform)  approved by the Administrative Agent.         “Attributable Indebtedness” means, on any date, (a) in respect of any Capital Lease of any  Person,  the  capitalized  amount  thereof that  would  appear  on  a  balance  sheet  of  such  Person  prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease  Obligation, the capitalized amount of the remaining lease payments under the relevant lease that  would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP  if such lease were accounted for as a capital lease.         “Audited Financial Statements” means the audited consolidated balance sheet of Limited  and  its  Subsidiaries  for  the  fiscal  year  ended  February 28,  2014,  and  the  related  consolidated  statements of income or operations, shareholders’ equity, and cash flows for such fiscal year of  Limited and its Subsidiaries, including the notes thereto.         “Autoborrow Agreement” has the meaning specified in Section 2.04(b)(ii).         “Auto-Extension Letter of Credit” has the meaning specified in Section 2.03(b)(iii).         “Auto-Reinstatement Letter of Credit” has the meaning specified in Section 2.03(b)(iv).         “Availability Period” means the period from and including the Closing Date to the earliest  of (a) the Maturity Date, (b) the date of termination of the Aggregate Commitments pursuant to  Section 2.06, and (c) the date of termination of the commitment of each Lender to make Loans and  of the obligation of the L/C Issuer to make L/C Credit Extensions pursuant to Section 8.02.         “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the  applicable Resolution Authority in respect of any liability of an Affected Financial Institution.         “Bail-In Legislation” means, (a) with respect to any EEA Member Country implementing  Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European  Union, the implementing law, rule, regulation or requirement for such EEA Member Country from  time to time which is described in the EU Bail-In Legislation Schedule, and (b) with respect to the  United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time)    

 

   and any other law, regulation or rule applicable to the United Kingdom relating to the resolution  of unsound or failing banks, investment firms or other financial institutions or their affiliates (other  than through liquidation, administration or other insolvency proceedings).         “Bank of America” means Bank of America, N.A. and its successors.         “Base Rate” means for any day a fluctuating rate of interest per annum equal to the highest  of (a) the Federal Funds Rate plus 0.50%, (b) the rate of interest in effect for such day as publicly  announced from time to time by Bank of America as its “prime rate,” and (c) the Eurodollar Rate  plus 1%, subject to the interest rate floors set forth therein; provided that if the Base Rate shall be  less than zero, such rate shall be deemed zero for purposes of this Agreement. The “prime rate” is  a rate set by Bank of America based upon various factors including Bank of America’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. Any change in  such prime rate announced by Bank of America shall take effect at the opening of business on the  day specified in the public announcement of such change. If the Base Rate is being used as an  alternate rate of interest pursuant to Section 3.08 hereof, then the Base Rate shall be the greater of  clauses (a) and (b) above and shall be determined without reference to clause (c) above.         “Base Rate Loan” means a Revolving Loan that bears interest based on the Base Rate.         “Beneficial Ownership Certification” means a certification regarding beneficial ownership  required by the Beneficial Ownership Regulation.         “Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.         “Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is  subject to Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Code or (c) any Person  whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of  ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.         “BHC Act Affiliate” has the meaning specified in Section 10.23.         “Borrower” has the meaning specified in the first introductory paragraph hereto.         “Borrower Materials” has the meaning specified in Section 6.02.         “Borrowing” means a Revolving Borrowing or a Swing Line Borrowing, as the context  may require.         “Business  Day”  means  any  day  other  than  a  Saturday,  Sunday  or  other  day  on  which  commercial banks are authorized to close under the Laws of, or are in fact closed in, the state  where the Administrative Agent’s Office is located and, if such day relates to any Eurodollar Rate  Loan, means any such day that is also a London Banking Day.         “Capital Lease” means, at any time, a lease with respect to which the lessee is required  concurrently to recognize the acquisition of an asset and the incurring of a liability in accordance  with GAAP.    

 

         “Cash  and  Cash  Equivalents” means,  collectively  (a) cash;  (b)  readily  marketable  obligations issued or directly and fully guaranteed or insured by the United States or any agency  or  instrumentality  thereof  having  maturities  of  not  more  than two (2)  years  from  the  date  of  acquisition thereof; provided that such obligations described in this clause (b) are backed by the  full faith and credit of the United States or are pledged in support thereof; (c) time deposits with,  or certificates of deposit or bankers’ acceptances of, any commercial bank that (i) (A) is a Lender  or (B) is organized under the laws of the United States, any state thereof or the District of Columbia  or is the principal banking subsidiary of a bank holding company organized under the laws of the  United States, any state thereof or the District of Columbia, and is a member of the Federal Reserve  System, (ii) has (or the parent of which has) outstanding short term debt rated P-1 (or the then  equivalent grade) by Moody's or A-1 (or the then equivalent grade) by S&P and (iii) has combined  capital and surplus of at least $1,000,000,000, in each case with maturities of not more than one  (1) year from the date of acquisition thereof; (d) commercial paper issued by any Person organized  under the laws of any state of the United States and rated in one of the two highest rating categories  by Moody's or by S&P, in each case with maturities of not more than two hundred seventy (270)  days from the date of acquisition thereof; (e) repurchase obligations with a term of not more than  seven (7) days for underlying securities of the types described in clauses (b) and (c) above entered  into  with  any  financial  institution  meeting  the  qualifications  specified  in  clause (c)  above;  (f)  Investments in money market mutual funds that are classified as current assets in accordance with  GAAP, and the portfolios of which invest at least 95% of its assets in Investments of the character,  quality and maturity described in clauses (b), (c), (d) and (e) of this definition maturing not more  than one year after the acquisition thereof, which funds are managed by Persons having, or who  are  members  of  holding  companies  having, in  the  aggregate, capital  and  surplus  in  excess  of  $100,000,000; and (g) in the case of Investments by a non-CFC controlled Foreign Subsidiary,  Investments of comparable tenor and credit quality to those described in the foregoing clauses (a)  through (f) customarily utilized in countries in which such Subsidiary operates for short-term cash  management purposes.         “Cash Collateralize” means to pledge and deposit with or deliver to the Administrative  Agent,  for  the  benefit  of  one  or  more  of  the  L/C  Issuer  or  the  Lenders,  as  collateral  for  L/C  Obligations, or obligations of the Lenders to fund participations in respect of L/C Obligations,  cash or deposit account balances or, if the Administrative Agent and the L/C Issuer shall agree in  their sole discretion, other credit support, in each case pursuant to documentation in form and  substance satisfactory to the Administrative Agent and the L/C Issuer.  “Cash Collateral” shall  have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral  and other credit support.         “CFC”  means  a Foreign  Subsidiary  of  Limited  that  is  a controlled  foreign  corporation  within the meaning of Section 957 of the Code.         “CFC  Holding  Company”  means  (a)  any  Subsidiary  of  Limited  that  is  not  a  Foreign  Subsidiary, and (b) any Subsidiary of Limited that is classified as a disregarded entity for U.S.  federal income tax purposes, in each case substantially all the assets of which consist of equity  interests  or  debt  interests  in  one  or  more  (i)  Foreign  Subsidiaries  that  are  CFCs  or  (ii)  other  Subsidiaries substantially all the assets of which consist (directly or indirectly) of equity interests  or debt interests in one or more Foreign Subsidiaries that are CFCs.     

 

         “Change in Law” means the occurrence, after the date of this Agreement, 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,  guideline  or  directive  (whether  or  not  having  the  force  of  law)  by  any  Governmental  Authority; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall  Street  Reform  and  Consumer  Protection  Act  and  all  requests,  rules,  guidelines  or  directives  thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives  promulgated  by  the  Bank  for  International  Settlements,  the  Basel  Committee  on  Banking  Supervision  (or  any  successor  or  similar  authority)  or  the  United  States  or  foreign  regulatory  authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in  Law”, regardless of the date enacted, implemented, adopted or issued.         “Change of Control” means an event or series of events by which:         (a)   any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the  Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its  subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or  administrator of any such plan) becomes the ultimate “beneficial owner” (as defined in Rules 13d- 3 and 13d-5 under the Securities Exchange Act of 1934)), directly or indirectly, of 50% or more  of the total voting power of Voting Equity Interests of Limited or the Borrower, as the case may  be, or         (b)   during any period of twelve (12) consecutive months, a majority of the members of  the board of directors or other equivalent governing body of Limited (excluding vacant seats) cease  to be composed of individuals (i) who were members of that board or equivalent governing body  on  the  first  day  of  such  period,  (ii)  whose  election  or  nomination  to  that  board  or  equivalent  governing body was nominated, appointed or approved by individuals referred to in clause (i)  above constituting at the time of such election or nomination at least a majority of that board or  equivalent governing body (excluding vacant seats) or (iii) whose election or nomination to that  board or other equivalent governing body was nominated, appointed or approved by individuals  referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at  least a majority of that board or equivalent governing body (excluding vacant seats).         “Closing Date” means the first date all the conditions precedent in Section 4.01 are satisfied  or waived in accordance with Section 10.01.         “Code” means the Internal Revenue Code of 1986.         “Commitment” means, as to each Lender, its obligation to (a) make Revolving Loans to  the  Borrower  pursuant  to Section 2.01,  (b) purchase  participations  in  L/C  Obligations,  and  (c) purchase participations in Swing Line Loans, in an aggregate principal amount at any one time  outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 2.01 or  in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as  applicable, as such amount may be adjusted from time to time in accordance with this Agreement.     

 

         “Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.),  as  amended  from  time  to  time,  and  any  successor  statute,  as  well  as  any  rule  promulgated  thereunder by the Commodity Futures Trading Commission.         “Compliance Certificate” means a certificate substantially in the form of Exhibit E.         “Connection  Income  Taxes”  means  Other  Connection  Taxes  that  are  imposed  on  or  measured by net  income (however denominated) or that are franchise Taxes  or branch profits  Taxes.         “Consolidated EBIT” means for any period the sum of Consolidated Net Earnings for such  period, plus          (a) without duplication and to the extent deducted in calculating Consolidated Net Earnings  (other  than  with  respect  to  clause  (a)(vi)), in  each  case  for  Limited  and  its  Subsidiaries,  all  determined in accordance with GAAP for such period, the total of:                (i) interest expense,                (ii) federal and state income and franchise tax expense,                (iii) to  the  extent  non-cash,  any  impairment  charges,  asset  write-offs  and  write-       downs incurred during such period,                (iv) to  the  extent  non-cash,  any write-offs  or  write-downs  of  goodwill  or  other        intangibles during such period,                (v) non-cash charges for such period but excluding any non-cash charge that is an        accrual of a reserve for a cash expense or cash payment to be made, or anticipated to be        made, in a future period,                (vi) the amount of pro forma “run-rate” cost savings, operating expense reductions,        operating improvements and synergies actually implemented by Limited or its Subsidiaries        or related to an Acquisition or Disposition projected to be realized as a result of actions        taken or are expected to be taken, in each case, that are reasonably identifiable, factually        supportable  and  projected  by  Limited  in  good-faith  to  be  realized  as  a  result  of        Acquisitions, Dispositions, cost savings or business optimization initiatives or other similar        transactions or initiatives consummated after the Third Amendment Effective Date to the        extent not prohibited by this Agreement, net of the amount of actual benefits realized in        respect  thereof; provided that  (A)  actions  in  respect  of  such  non-cash  cost-savings,        operating expense reductions, operating improvements and synergies have been, or will be,        taken within 12 months of the applicable Acquisition, Disposition or initiative, (B) no cost        savings, operating expense reductions, operating improvements or synergies shall be added        pursuant to this clause (vi) to the extent duplicative of any expenses or charges otherwise        added to (or excluded from) Consolidated EBIT, whether through a pro forma adjustment        or otherwise, for such period, (C) projected amounts (and not yet realized) may no longer        be  added  in  calculating  Consolidated EBIT  pursuant  to  this  clause  (vi)  to  the  extent        occurring more than four fiscal quarters after the applicable Acquisition, Disposition or    

 

                initiative, (D) Limited  must  deliver  to  the  Administrative  Agent  (1)  a  certificate  of  a  Responsible  Officer  of  Limited  setting  forth  such  estimated  cost-savings,  operating  expense  reductions,  operating  improvements  and  synergies  and  (2)  information  and  calculations supporting in reasonable detail such estimated cost savings, operating expense  reductions, operating improvements and synergies,         (vii) any unusual or non-recurring charges or losses for such period,          (viii)  any  fees,  expenses or  charges  (other  than  depreciation or  amortization  expense) incurred during such period in connection with any Investment (including any  Acquisition),  Disposition outside  of  the  ordinary  course  of  business,  issuance  of  Indebtedness or capital stock, or amendment, modification, repayment or refinancing of  any debt instrument, in each case permitted under this Agreement, including (A) any such  transactions undertaken but not completed and any transactions consummated prior to the  Third Amendment Effective Date and (B) any financial advisory fees, accounting fees,  legal fees and other similar advisory and consulting fees,          (ix)  restructuring  and  similar  charges,  accruals,  reserves,  severance,  relocation  costs, lease termination or modification costs, integration and facilities opening or closing  costs  and  other  business  optimization  expenses  (including  in  connection  with  revenue  synergies), signing costs, retention or completion bonuses, transition costs, costs related to  closure/consolidation of facilities and curtailments or modifications to pension and post- retirement employee benefit plans,          (x) non-recurring cash expenses recognized for information technology and other  integration costs and business optimization expenses in connection with any cost savings  or business optimization initiatives, and         (xi) fees, charges, costs and expenses incurred in such period in connection with  Litigation,          minus    (b) without duplication and to the extent added in calculating Consolidated Net Earnings,  in each case for Limited and its Subsidiaries, all determined in accordance with GAAP for  such period, the total of:         (i) federal and state, local and foreign income tax credits (other than to the extent  netted in clause (a)(ii) above),         (ii)  other non-cash  gains,  excluding  any  such  non-cash  gains  to  the  extent  they  represent a reversal of an accrual of a reserve for a cash expense or cash payment that  reduced Consolidated EBIT in a prior period that are described in the exclusion noted in  clause (a)(v) above, and         (iii) any unusual or non-recurring income or gains for such period, all determined  in accordance with GAAP;                  

 

         provided, that the aggregate amount added back in the calculation of Consolidated EBIT  for any such period pursuant to clauses (a)(vi), (a)(viii), (a)(ix), (a)(x) and (a)(xi) shall not exceed  20% of Consolidated EBIT for the applicable four-quarter period (calculated prior to giving effect  to any add-backs pursuant to such clauses).          “Consolidated EBITDA” means for any period the sum of Consolidated Net Earnings for  such period, plus          (a) without duplication and to the extent deducted in calculating Consolidated Net Earnings  (other  than  with  respect  to  clause  (a)(vii)), in  each  case  for  Limited  and  its  Subsidiaries,  all  determined in accordance with GAAP for such period, the total of:               (i) depreciation and amortization expenses,               (ii) interest expense,                (iii) federal and state income and franchise tax expense,                (iv) to  the  extent  non-cash,  any  impairment  charges,  asset  write-offs  and  write-       downs incurred during such period,                (v) to the  extent  non-cash,  any write-offs  or  write-downs  of  goodwill  or  other        intangibles during such period,                (vi) non-cash charges for such period but excluding any non-cash charge that is an        accrual of a reserve for a cash expense or cash payment to be made, or anticipated to be        made, in a future period,                (vii) the amount of pro forma “run-rate” cost savings, operating expense reductions,        operating improvements and synergies actually implemented by Limited or its Subsidiaries        or related to an Acquisition or Disposition projected to be realized as a result of actions        taken or are expected to be taken, in each case, that are reasonably identifiable, factually        supportable  and  projected  by  Limited  in  good-faith  to  be  realized  as  a  result  of        Acquisitions, Dispositions, cost savings or business optimization initiatives or other similar        transactions or initiatives consummated after the Third Amendment Effective Date to the        extent not prohibited by this Agreement, net of the amount of actual benefits realized in        respect  thereof; provided that  (A)  actions  in  respect  of  such  non-cash  cost-savings,        operating expense reductions, operating improvements and synergies have been, or will be,        taken within 12 months of the applicable Acquisition, Disposition or initiative, (B) no cost        savings, operating expense reductions, operating improvements or synergies shall be added        pursuant to this clause (vii) to the extent duplicative of any expenses or charges otherwise        added  to  (or  excluded  from)  Consolidated  EBITDA,  whether  through  a pro  forma        adjustment or otherwise, for such period, (C) projected amounts (and not yet realized) may        no longer be added in calculating Consolidated EBITDA pursuant to this clause (vii) to the        extent occurring more than four fiscal quarters after the applicable Acquisition, Disposition        or initiative, (D) Limited must deliver to the Administrative Agent (1) a certificate of a        Responsible  Officer  of  Limited  setting  forth  such  estimated  cost-savings,  operating        expense  reductions,  operating  improvements  and  synergies  and  (2)  information  and    

 

         calculations supporting in reasonable detail such estimated cost savings, operating expense        reductions, operating improvements and synergies,               (viii) any unusual or non-recurring charges or losses for such period,                (ix) any fees, expenses or charges (other than depreciation or amortization expense)        incurred  during  such  period  in  connection  with  any  Investment  (including  any        Acquisition),  Disposition outside of  the  ordinary  course  of  business,  issuance  of        Indebtedness or capital stock, or amendment, modification, repayment or refinancing of        any debt instrument, in each case permitted under this Agreement, including (A) any such        transactions undertaken but not completed and any transactions consummated prior to the        Third Amendment Effective Date and (B) any financial advisory fees, accounting fees,        legal fees and other similar advisory and consulting fees,                (x) restructuring and similar charges, accruals, reserves, severance, relocation costs,        lease termination or modification costs, integration and facilities opening or closing costs        and  other  business  optimization  expenses  (including  in  connection  with  revenue        synergies), signing costs, retention or completion bonuses, transition costs, costs related to        closure/consolidation of facilities and curtailments or modifications to pension and post-       retirement employee benefit plans,                (xi) non-recurring cash expenses recognized for information technology and other        integration costs and business optimization expenses in connection with any cost savings        or business optimization initiatives, and                (xii) fees, charges, costs and expenses incurred in such period in connection with        Litigation,                 minus          (b) without duplication and to the extent added in calculating Consolidated Net Earnings,        in each case for Limited and its Subsidiaries, all determined in accordance with GAAP for        such period, the total of:               (i) federal and state, local and foreign income tax credits (other than to the extent        netted in clause (a)(iii) above),               (ii)  other non-cash  gains,  excluding  any  such  non-cash  gains  to  the  extent  they        represent a reversal of an accrual of a reserve for a cash expense or cash payment that        reduced Consolidated EBIT in a prior period that are described in the exclusion noted in        clause (a)(vi) above, and               (iii) any unusual or non-recurring income or gains for such period, all determined        in accordance with GAAP;         provided,  that  the  aggregate  amount  added  back  in  the  calculation  of  Consolidated  EBITDA for any such period pursuant to clauses (a)(vii), (a)(ix), (a)(x), (a)(xi) and (a)(xii) shall     

 

   not exceed 20% of Consolidated EBITDA for the applicable four-quarter period (calculated prior  to giving effect to any add-backs pursuant to such clauses).         “Consolidated Funded Indebtedness” means, as of any date of determination, for Limited  and its Subsidiaries on a consolidated basis (eliminating intercompany Indebtedness), the sum of:         (a)   all obligations  for  borrowed  money  and  all  obligations  evidenced  by  bonds,  debentures, notes, loan agreements or similar instruments;         (b)   all Indebtedness of such Person in respect of Disqualified Equity Interests;         (c)   all  liabilities  for  the  deferred purchase  price  of  property  acquired  (excluding  accounts payable arising in the ordinary course of business but including all liabilities created or  arising  under  any  conditional  sale  or  other  title  retention  agreement  with  respect  to  any  such  property);         (d)   all liabilities appearing on its balance sheet in accordance with GAAP in respect of  Capital Leases;         (e)   all liabilities for borrowed money secured by any Lien with respect to any property  owned (whether or not it has assumed or otherwise become liable for such liabilities);         (f)   all  outstanding  reimbursement  obligations  in  respect  of  letters  of  credit  or  instruments  serving  a  similar  function  issued  or  accepted  for  its  account  by  banks  and  other  financial institutions (whether or not representing obligations for borrowed money); and         (g)   without duplication, all Guarantees with respect to liabilities of a type described in  any of clauses (a) through (f) hereof.         For all purposes hereunder, the Consolidated Funded Indebtedness of any Person shall not  include any other indebtedness or portion thereof with respect to which and to the extent the trustee  or other applicable depository in respect of such indebtedness holds cash or cash equivalents in an  amount  sufficient  to  repay  the  principal,  and  accrued  interest  on,  such  indebtedness,  and  the  foregoing shall constitute a redemption or a complete defeasance of such indebtedness pursuant to  the applicable agreement governing such indebtedness.         “Consolidated  Funded  Net  Indebtedness”  means, as  of  any  date  of  determination,  for  Limited and its Subsidiaries on a consolidated basis, Consolidated Funded Indebtedness net of  Unrestricted Cash and Cash Equivalents.         “Consolidated Net Earnings” means for any period, net earnings (or loss) after income  taxes  of  Limited  and  its  Subsidiaries  for such  period,  determined  on  a  consolidated  basis  in  accordance with GAAP, but not including in such net earnings (or loss) the following:               (a)   any extraordinary gain or loss arising from the sale of capital assets;               (b)   any extraordinary gain or loss arising from any write-up or write-down of        assets;    

 

                      (c)   net earnings of any Person in which Limited or any Subsidiary shall have  an  ownership  interest  other  than  a  Subsidiary  unless  such  net  earnings (or  any  portion  thereof) shall have actually been received by Limited or such Subsidiary in the form of  cash distributions;         (d)   earnings or losses of any Subsidiary accrued prior to the date it became a  Subsidiary;         (e)   any portion of the net earnings of any Subsidiary that is not a Loan Party  that by reason of any contract or charter restriction or Applicable Law or regulation (or in  the good faith judgment of the Board of Directors of Limited for any reason) is unavailable  for payment of dividends to Limited or any of its Subsidiaries, provided that the aggregate  amount of such net earnings that could be paid to Limited or a Subsidiary by loans or  advances  or  repayment  of  loans  or  advances  that  are  due  beyond  the  Maturity  Date,  intercompany transfer or otherwise will be included in Consolidated Net Earnings;         (f)   the earnings or losses of any Person acquired by Limited or any Subsidiary  through  purchase,  merger,  consolidation  or  otherwise,  or  the  earnings  or  losses  of  any  Person  substantially  all  of  whose  assets  have  been  acquired  by  Limited  or  any  of  its  Subsidiaries, for any period prior to the date of such acquisition;         (g)   any gain arising from the acquisition of any securities of Limited or any of  its Subsidiaries;         (h)   the earnings or losses attributable to discontinued operations, as determined  in accordance with GAAP, and operations or businesses Disposed of prior to the date of  determination;         (i)   the cumulative effect of a change in accounting principles;         (j)   non-cash compensation charges and expenses, including any such charges  and expenses arising from grants of stock appreciation or similar rights, phantom equity,  stock options, restricted stock, restricted stock units, deferred stock or other rights or equity  incentive  programs  and  non-cash  deemed  finance  charges  in  respect  of  any  pension  liabilities or other provisions;          (k)   (i) charges and expenses pursuant to any management equity plan, long term  incentive plan or stock option plan or any other management or employee benefit plan or  agreement, any stock subscription or shareholder agreement and (ii) charges, expenses,  accruals  and reserves  in connection with the rollover, acceleration or payout  of Equity  Interests held by management of Limited or any Subsidiary, in the case of each of (i) and  (ii) above, to the extent that (in the case of any cash charges and expenses) such charges,  expenses, accruals and reserves are funded with cash proceeds contributed to the capital of  Limited or net cash proceeds of an issuance of Equity Interests (other than Disqualified  Equity Interests) of Limited;                   

 

               (l)   any  non-cash  loss,  charge  or  expense  relating  to  the  incurrence  of        obligations in respect of an “earn out” or other similar contingent obligations (but only for        so long as such loss, charge or expense remains a non-cash contingent obligation); and                (m)   any other extraordinary gains or losses or any other gain or loss arising from        any event or transaction that is unusual in nature and infrequent in occurrence (but which        otherwise  does  not  constitute  an  extraordinary  item  under  GAAP)  and  which  GAAP        requires to be reported as a separate component of revenues and expenses from continuing        operations.         “Consolidated Net  Worth” means,  as  of any date of determination, for Limited and its  Subsidiaries on a consolidated basis, Shareholders’ Equity for Limited and its Subsidiaries as of  such date.         “Consolidated Total Assets” means at any date of determination, the total assets, in each  case reflected on the consolidated balance sheet of Limited and its Subsidiaries as at the end of the  most recently ended fiscal quarter of Limited for which a balance sheet is available, determined in  accordance with GAAP.         “Contractual Obligation” means, as to any Person, any provision of any security issued by  such Person or of any agreement, instrument or other undertaking to which such Person is a party  or by which it or any of its property is bound.         “Covered Entity” has the meaning specified in Section 10.23.         “Covered Party” has the meaning specified in Section 10.23.         “Credit Extension” means each of the following: (a) a Borrowing and (b) an L/C Credit  Extension.         “Debtor  Relief  Laws”  means  the  Bankruptcy  Code  of  the  United  States,  and  all  other  liquidation,  conservatorship,  bankruptcy,  assignment  for  the  benefit  of  creditors,  moratorium,  rearrangement,  receivership,  insolvency,  reorganization,  or  similar  debtor  relief  Laws  of  the  United States or other applicable jurisdictions from time to time in effect and affecting the rights  of creditors generally.         “Default” means any event or condition that constitutes an Event of Default or that, with  the giving of any notice, the passage of time, or both, would be an Event of Default.         “Default Rate” means (a) when used with respect to Obligations other than Letter of Credit  Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate, if any, applicable to  Base Rate Loans plus (iii) 2% per annum; provided, however, that with respect to a Eurodollar  Rate  Loan,  the  Default  Rate  shall  be  an  interest  rate  equal  to  the  interest  rate  (including  any  Applicable Rate) otherwise applicable to such Loan plus 2% per annum, and (b) when used with  respect to Letter of Credit Fees, a rate equal to the Applicable Rate plus 2% per annum.         “Default Right” has the meaning specified in Section 10.23.     

 

         “Defaulting Lender” means, subject to Section 2.16(b), any Lender that (a) has failed to  (i) fund all or any portion of its Loans within two Business Days of the date such Loans were  required to be funded hereunder unless such Lender notifies the Administrative Agent and the  Borrower in writing that such failure is the result of such Lender’s determination that one or more  conditions precedent to funding (each of which conditions precedent, together with any applicable  default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the  Administrative  Agent,  the  L/C  Issuer,  the  Swing  Line  Lender  or  any  other  Lender  any  other  amount required to be paid by it hereunder (including in respect of its participation in Letters of  Credit or Swing Line Loans) within two Business Days of the date when due, (b) has notified the  Borrower, the Administrative Agent, the L/C Issuer or the Swing Line Lender in writing that it  does not intend to comply with its funding obligations hereunder, or has made a public statement  to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a  Loan  hereunder  and  states  that  such  position  is  based  on  such  Lender’s  determination  that  a  condition precedent to funding (which condition precedent, together with any applicable default,  shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has  failed,  within  three  Business  Days  after  written  request  by  the  Administrative  Agent  or  the  Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply  with its prospective funding obligations hereunder (provided that such Lender shall cease to be a  Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the  Administrative Agent and the Borrower), or (d) has, or has a direct or indirect parent company that  has, (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had appointed for it  a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or  similar Person charged with reorganization or liquidation of its business or assets, including the  Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in  such a capacity, or (iii) become the subject of a Bail-In Action; provided that a Lender shall not be  a Defaulting Lender solely by virtue of the ownership or acquisition of any Equity Interest in that  Lender or any direct or indirect parent company thereof by a Governmental Authority so long as  such  ownership  interest  does  not  result  in  or  provide  such  Lender  with  immunity  from  the  jurisdiction of courts within the United States or from the enforcement of judgments or writs of  attachment  on  its  assets  or  permit  such  Lender  (or  such  Governmental  Authority)  to  reject,  repudiate,  disavow  or  disaffirm  any  contracts  or  agreements  made  with  such  Lender.   Any  determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or  more of clauses (a) through (d) above, and of the effective date of such status, shall be conclusive  and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender  (subject to Section 2.16(b)) as of the date established therefor by the Administrative Agent in a  written notice of such determination, which shall be delivered by the Administrative Agent to the  Borrower, the L/C Issuer, the Swing Line Lender and each other Lender promptly following such  determination.         “Designated Jurisdiction” means any country, region or territory to the extent that such  country, region or territory itself is the subject of any comprehensive Sanction.         “Disposition”  or  “Dispose”  means  the  sale,  transfer,  license,  lease  or  other  disposition  (including any sale and leaseback transaction) of any property by any Person, including any sale,  assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable  or any rights and claims associated therewith.     

 

         “Disqualified Equity Interests” means any Equity Interest which, by its terms (or by the  terms  of  any  security  or  other  Equity  Interests  into  which  it  is  convertible  or  for  which  it  is  exchangeable), or upon the happening of any event or condition (a) matures or is mandatorily  redeemable (other than solely for Qualified Equity Interests and cash in lieu of fractional shares of  such Equity Interests), pursuant to a sinking fund obligation or otherwise, (b) is redeemable at the  option of the holder thereof (other than solely for Qualified Equity Interests and cash in lieu of  fractional  shares  of  such  Equity  Interests),  in  whole  or  in  part,  (c)  provides  for  the  scheduled  payments  of  dividends  in  cash,  or  (d)  is  or  becomes  convertible  into  or  exchangeable  for  Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests, in  each case, prior to the date that is 91 days after the latest Maturity Date; provided, that, for purposes  of clauses (a) and (b), Equity Interests of any Person that would not constitute Disqualified Equity  Interests but for terms thereof giving holders thereof the right to require such Person to redeem or  purchase such Equity Interests upon the occurrence of an asset sale or a change of control (or  similar event, however denominated) shall not constitute Disqualified Equity Interests so long as  any rights of the holders thereof upon the occurrence of a change of control or asset sale event  shall  be  subject  to  the  prior  repayment  in  full  of  the  Obligations  and  the  termination  of  the  Commitments and the termination or Cash Collateralization of all outstanding Letters of Credit;  provided, further, that Equity Interests of any Person that is issued to any employee or to any plan  for the benefit of employees or by any such plan to such employees shall not constitute Disqualified  Equity Interests solely because it may be required to be repurchased by such Person or any of its  Subsidiaries in order to satisfy applicable statutory or regulatory obligations or as a result of such  employee’s termination, death or disability.         “Dividend” means, with respect to any Person, any dividend or other distribution (whether  in cash, securities or other property) with respect to any capital stock or other Equity Interests of  such Person.         “Dollar” and “$” mean lawful money of the United States.         “Dollar Equivalent” means, at any time, (a) with respect to any amount denominated in  Dollars,  such  amount,  and  (b) with  respect  to  any  amount  denominated  in  any  Alternative  Currency, the equivalent amount thereof in Dollars as determined by the Administrative Agent or  the L/C Issuer, as the case may be, at such time on the basis of the Spot Rate (determined in respect  of the most recent Revaluation Date) for the purchase of Dollars with such Alternative Currency.         “Domestic  Subsidiary”  means  any  Subsidiary  that  is  organized  under  the  Laws  of  any  political subdivision of the United States.         “EEA Financial Institution” means (a) any credit institution or investment firm established  in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority,  (b) any entity established in an EEA Member Country which is a parent of an institution described  in  clause (a)  of  this  definition,  or  (c) any  financial  institution  established  in  an  EEA  Member  Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and  is subject to consolidated supervision with its parent.         “EEA Member Country” means any of the member states of the European Union, Iceland,  Liechtenstein, and Norway.    

 

         “EEA  Resolution  Authority”  means  any  public  administrative  authority  or  any  person  entrusted  with  public administrative  authority  of  any  EEA  Member  Country  (including  any  delegee) having responsibility for the resolution of any EEA Financial Institution.         “Eligible Assignee” means any Person that meets the requirements to be an assignee under  Section 10.06(b)(iii) and (v) (subject  to  such  consents,  if  any,  as  may  be  required  under  Section 10.06(b)(iii)).         “Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws,  regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises,  licenses, agreements or governmental restrictions relating to pollution and the protection of the  environment  or  the  release  of  any  materials  into  the  environment,  including  those  related  to  hazardous substances or wastes, air emissions and discharges to waste or public systems.         “Environmental  Liability”  means  any  liability,  contingent  or  otherwise  (including  any  liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the  Borrower,  any other  Loan  Party  or  any  of  their  respective  Subsidiaries  directly  or  indirectly  resulting  from  or based  upon (a) violation of any Environmental Law, (b) the generation, use,  handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure  to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into  the environment or (e) any contract, agreement or other consensual arrangement pursuant to which  liability is assumed or imposed with respect to any of the foregoing.         “Equity Interests” means, with respect to any Person, all of the shares of capital stock of  (or other ownership or profit interests in) such Person, all of the warrants, options or other rights  for the purchase or acquisition from such Person of shares of capital stock of (or other ownership  or profit interests in) such Person, all of the securities convertible into or exchangeable for shares  of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or  options for the purchase or acquisition from such Person of such shares (or such other interests),  and all of the other ownership or profit interests in such Person (including partnership, member or  trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants,  options, rights or other interests are outstanding on any date of determination.         “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and  the rules and regulations promulgated thereunder.          “ERISA  Affiliate”  means  any  trade  or  business  (whether  or  not  incorporated)  under  common  control  with  Limited  within  the  meaning  of  Section 414(b)  or  (c)  of  the  Code  (and  Sections 414(m) and (o) of the Code for purposes  of provisions relating  to  Section 412 of the  Code).         “ERISA  Event”  means  (a) a  Reportable  Event  with  respect  to  a  Pension  Plan;  (b) a  withdrawal by Limited or any ERISA Affiliate from a Pension Plan subject to Section 4063 of  ERISA  during  a  plan  year  in  which  it  was  a  “substantial  employer”  (as  defined  in  Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal  under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by the Borrower or any  ERISA Affiliate from a Multiemployer Plan; (d) the filing of a notice of intent to terminate, the    

 

   treatment of a Pension Plan amendment as a termination under Sections 4041 or 4041A of ERISA  or  the  institution  by  the  PBGC  of  proceedings  to  terminate  a  Pension  Plan;  (e) any  event  or  condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the  appointment of a trustee to administer, any Pension Plan; (f) the determination that any Pension  Plan is considered an at-risk plan or a plan in endangered or critical status within the meaning of  Sections 430,  431  and  432  of  the  Code  or  Sections 303,  304  and  305  of  ERISA;  or  (g) the  imposition of any “withdrawal liability” as such term is defined under Part 1 of Subtitle E of Title  IV of ERISA  or any other liability under Title IV of ERISA, other than for PBGC premiums due  but not delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA Affiliate.         “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published  by the Loan Market Association (or any successor person), as in effect from time to time.          “Eurodollar Rate” means:               (a)   for any Interest Period with respect to a Eurodollar Rate Loan, the rate per        annum equal to the London Interbank Offered Rate as administered by ICE Benchmark        Administration (or any other Person that takes over the administration of such rate for U.S.        Dollars for a period equal in length to such Interest Period) (“LIBOR”), as published on        the applicable Bloomberg screen  page (or such  other  commercially  available  source        providing such quotations as may be designated by the Administrative Agent from time to        time) (in such case, the “LIBOR Rate”) at or about 11:00 a.m., London time, two Business        Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery        on the first day of such Interest Period) with a term equivalent to such Interest Period; and               (b)   for any interest calculation with respect to a Base Rate Loan on any date,        the  rate  per  annum  equal  to the LIBOR Rate,  at  or  about  11:00 a.m.,  London  time,        determined two London Banking Days prior to such date for U.S. Dollar deposits with a        term of one month commencing that day;   provided that (A) notwithstanding anything to the contrary above, if LIBOR shall be less than zero,  then the Eurodollar Rate shall be deemed to be zero for purposes of this Agreement and (b) to the  extent a comparable or successor rate is approved by the Administrative Agent in connection with  any rate set forth in this definition, the approved rate shall be applied in a manner consistent with  market practice; provided, further that to the extent such market practice is not administratively  feasible for the Administrative Agent, such approved rate shall be applied in a manner as otherwise  reasonably determined by the Administrative Agent.         “Eurodollar Rate Loan” means a Revolving Loan that bears interest at a rate based on the  Eurodollar Rate.         “Event of Default” has the meaning specified in Section 8.01.          “Excluded Subsidiary” means (a) any Subsidiary if, and for so long as, the guarantee of  the Obligations by such Subsidiary would require the consent, approval, license or authorization  of  a  Governmental  Authority  or  under  any  binding  Contractual  Obligation (or  joint  venture  organizational  document) with  any unaffiliated  third  party existing  on  the Third  Amendment  Effective Date  (or,  if  later,  the  date  such  Subsidiary  is  acquired  or  the  date  such  Contractual    

 

   Obligation (or joint venture organizational document) is entered into (so long as such Contractual  Obligation  (or joint venture organizational document) is not created, entered into or incurred for  the sole purpose of making such Subsidiary an Excluded Subsidiary), except to the extent such  consent, approval, license or authorization has actually been obtained), (b) any Subsidiary that is  prohibited  by Applicable Law,  rule  or  regulation  from  guaranteeing  the  Obligations,  (c)  any  Subsidiary that is a captive insurance company subject to regulation as an insurance company (or  any Subsidiary thereof), (d) a not-for-profit Subsidiary, (e) a special purpose entity used for a  securitization facility, (f) a Subsidiary (including any CFC Holding Company) where the guarantee  of the Obligations by such Subsidiary would constitute an investment in “United States property”  by a CFC that would reasonably be expected to result in material adverse tax consequences as  reasonably determined by Borrower in good faith in consultation with the Administrative Agent  and (g) any Subsidiary to the extent that the costs of a guarantee from such Subsidiary would be  excessive relative to the expected benefits to be obtained by the Lenders from such guarantee (as  reasonably determined by the Borrower and the Administrative Agent in good faith).         “Excluded Swap Obligation” means, with respect to any Guarantor, any Swap Obligation  if, and to the extent that, all or a portion of the Guaranty of such Guarantor of, or the grant by such  Guarantor of a security interest to secure, such Swap Obligation (or any Guaranty thereof) is or  becomes  illegal  under  the  Commodity  Exchange  Act  or  any  rule,  regulation  or  order  of  the  Commodity  Futures  Trading  Commission  (or  the  application  or  official  interpretation  of  any  thereof) by virtue of such Guarantor’s failure for any reason to constitute an “eligible contract  participant”  as  defined  in  the  Commodity  Exchange  Act  (determined  after  giving  effect  to  Section 10.20 and  any  other  “keepwell,  support  or  other  agreement”  for  the  benefit  of  such  Guarantor and any and all guarantees of such Guarantor’s Swap Obligations by other Loan Parties)  at the time the Guaranty of such Guarantor, or a grant by such Guarantor of a security interest,  becomes effective with respect to such Swap Obligation.  If a Swap Obligation arises under a  master agreement governing more than one swap, such exclusion shall apply only to the portion  of such Swap Obligation that is attributable to swaps for which such Guaranty or security interest  is or becomes excluded in accordance with the first sentence of this definition.         “Excluded Taxes” means any of the following Taxes imposed on or with respect to any  Recipient or required to be withheld or deducted from a payment to a Recipient, (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 Recipient being organized under the laws of, or having  its principal office or, in the case of any Lender, its 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  a  Loan  or  Commitment  pursuant to a Law in effect on the date on which (i) such Lender acquires such interest in the Loan  or  Commitment  (other  than  pursuant  to  an  assignment  request  by  the Borrower under  Section 10.13) or (ii) such Lender changes its Lending Office, except in each case to the extent  that,  pursuant  to Section 3.01(a)(ii), (a)(iii) or  (c),  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  Recipient’s  failure  to  comply  with Section 3.01(e) and  (d) any  withholding  Taxes  imposed  pursuant to FATCA.     

 

         “Existing  Credit  Agreement” has  the  meaning  specified  in  the  second  introductory  paragraph hereto.         “Existing Letters of Credit” means those letters of credit set forth on Schedule 1.01(a).         “Existing Subsidiary Guarantors”  means,  collectively, HOT-Barbados,  HOT-Nevada,  HOT Nevada, Inc., a Nevada corporation, Helen of Troy L.P., a Texas limited partnership, Idelle  Labs, Ltd.,  a  Texas  limited  partnership,  OXO  International, Ltd.,  a  Texas  limited  partnership,  Helen of Troy Macao Commercial Offshore Limited, a Macau company, Kaz, Inc., a New York  corporation,  Kaz  USA,  Inc.,  a  Massachusetts  corporation,  Kaz Canada,  Inc.,  a  Massachusetts  corporation, Pur Water Purification Products, Inc., a Nevada corporation, Steel Technology, LLC,  an  Oregon  limited  liability  company,  and  Drybar  Products  LLC,  a  Delaware  limited  liability  company.          “FASB ASC” means the Accounting Standards Codification of the Financial Accounting  Standards Board.         “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 and  any  agreements  entered  into  pursuant  to  Section 1471(b)(1)  of  the  Code  and  any  fiscal  or  regulatory  legislation,  rules  or  policies  adopted  pursuant  to  any  intergovernmental  agreement,  treaty  or convention among Governmental Authorities and implementing such Sections  of the  Code.         “Federal Funds Rate” means, for any day, the rate per annum calculated by the Federal  Reserve  Bank  of  New  York  based  on  such  day’s  federal  funds  transactions  by  depository  institutions (as determined in such manner as the Federal Reserve Bank of New York shall set  forth on its public website from time to time) and published on the next succeeding Business Day  by the Federal Reserve Bank of New York as the federal funds effective rate; provided that if the  Federal Funds Rate as so determined would be less than zero, such rate shall be deemed to be zero  for the purposes of this Agreement.         “Fee  Letter”  means (a) the  letter  agreement  dated November 14, 2014,  among  the  Borrower, the Administrative Agent and Merrill, Lynch, Pierce, Fenner & Smith Incorporated and  (b) the letter agreement dated January 29, 2020, among the Borrower, the Administrative Agent  and BofA Securities, Inc.         “Financial Projections” has the meaning specified in Section 5.05(c).         “First Amendment” means that certain First Amendment to Amended and Restated Credit  Agreement, dated as of December 7, 2016, among the Borrower, Limited, the Lenders and the  Administrative Agent.         “Foreign Lender” means any Lender that is not a U.S. Person.         “Foreign Obligor” means a Loan Party that is a Foreign Person for which, as of the end of  any fiscal year for which financial statements have been delivered pursuant to Section 6.01(a), has    

 

   total assets (including Equity Interests in other Subsidiaries and excluding investments that are  eliminated in consolidation) of equal to or greater than 3.75% of Consolidated Total Assets.         “Foreign Person” means any Person that is organized under the Laws of a jurisdiction other  than the United States, a state thereof or the District of Columbia.         “Foreign Subsidiary” means any direct or indirect Subsidiary of Limited that is a Foreign  Person.         “FRB” means the Board of Governors of the Federal Reserve System of the United States.         “Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect to  the L/C Issuer, such Defaulting Lender’s Applicable Percentage of the Outstanding Amount of all  outstanding L/C Obligations other than L/C Obligations as to which such Defaulting Lender’s  participation obligation has been reallocated to other Lenders or Cash Collateralized in accordance  with the terms hereof, and (b) with respect to the Swing Line Lender, such Defaulting Lender’s  Applicable  Percentage  of  Swing  Line  Loans  other  than  Swing  Line  Loans  as  to  which  such  Defaulting Lender’s participation obligation has been reallocated to other Lenders in accordance  with the terms hereof.         “Fund” means  any Person (other than a natural  Person) that is  (or will be) engaged in  making, purchasing, holding or otherwise investing in commercial loans and similar extensions of  credit in the ordinary course of its activities.         “GAAP” means generally accepted accounting principles in the United States set forth in  the opinions and pronouncements of the Accounting Principles Board and the American Institute  of Certified Public Accountants and statements and pronouncements of the Financial Accounting  Standards Board or such other principles  as  may be approved by a significant  segment of the  accounting profession in the United States, that are applicable to the circumstances as of the date  of determination, consistently applied and subject to Section 1.03.         “Governmental Authority” means the government of the United States 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).         “Guarantee” means, as to any Person, (a) any obligation, contingent or otherwise, of such  Person  guaranteeing  or  having  the  economic  effect  of  guaranteeing  any  Indebtedness  or  other  obligation  payable  or  performable  by  another  Person  (the  “primary  obligor”)  in  any  manner,  whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to  purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or  other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring  the obligee in respect of such Indebtedness or other obligation of the payment or performance of  such Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any other  financial statement condition or liquidity or level of income or cash flow of the primary obligor so  as to enable the primary obligor to pay such Indebtedness or other obligation, or (iv) entered into    

 

   for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other  obligation of the payment or performance thereof or to protect such obligee against loss in respect  thereof  (in  whole  or  in  part),  or  (b) any  Lien  on  any  assets  of  such  Person  securing  any  Indebtedness or other obligation of any other Person, whether or not such Indebtedness or other  obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such  Indebtedness  to  obtain  any  such  Lien);  provided  that  a  Guarantee  shall  exclude  (A) the  endorsement  of  negotiable  instruments  for  deposit  or  collection  or  similar transactions  in  the  ordinary course of such Person’s business, and (B) obligations under indemnities incurred in the  ordinary course of business or under stock purchase or asset purchase or sale agreements, or which  do  not  cover  Indebtedness  of  the  type  described  in  clauses (a)  through  (i)  of  the  definition  of  Indebtedness.  The amount of any Guarantee shall be deemed to be an amount equal to the stated  or determinable amount of the related primary obligation, or portion thereof, in respect of which  such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated  liability in  respect  thereof as  determined by the guaranteeing  Person in  good faith.  The term  “Guarantee” as a verb has a corresponding meaning.         “Guarantied Obligations” has the meaning given to such term in each Guaranty.         “Guarantied Parties” has the meaning given to such term in each Guaranty.         “Guarantors” means, collectively, (a) Limited, (b) the Existing Subsidiary Guarantors and  (c) each other Subsidiary that executes and delivers a Guaranty pursuant to Section 6.15 or Section  10.24.         “Guaranty”  means  any  Guaranty  made  by  one  or  more  Guarantors  in  favor  of  the  Guarantied Parties, substantially in the form of Exhibit G.         “Hazardous Materials”  means  all explosive or radioactive substances  or wastes and all  hazardous  or  toxic  substances,  wastes  or  other  pollutants,  including  petroleum  or  petroleum  distillates,  asbestos  or  asbestos-containing  materials,  polychlorinated  biphenyls,  radon  gas,  infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to  any Environmental Law.         “Highest  Lawful  Rate”  means  at  the  particular  time  in  question  the  maximum  rate  of  interest which, under Applicable Law, any Lender is then permitted to charge on the Obligations.   If the maximum rate of interest which, under Applicable Law, any Lender is permitted to charge  on  the  Obligations  shall  change  after  the  date  hereof,  the  Highest  Lawful  Rate  shall  be  automatically increased or decreased, as the case may be, from time to time as of the effective time  of  each  change  in  the  Highest  Lawful  Rate  without  notice  to  the  Borrower.   For  purposes  of  determining the Highest Lawful Rate under Applicable Law, the indicated rate ceiling shall be the  lesser of (a)(i) the “weekly ceiling”, as that expression is defined in Section 303.003 of the Texas  Finance Code, as amended, or (ii) if available in accordance with the terms thereof and at the  Administrative Agent’s option after notice to the Borrower and otherwise in accordance with the  terms of Section 303.103 of the Texas Finance Code, as amended, the “annualized ceiling” and  (b)(i) if the amount outstanding under this Agreement is less than $250,000, twenty-four percent  (24%), or (ii) if the amount under this Agreement is equal to or greater than $250,000, twenty- eight percent (28%) per annum.    

 

         “Honor Date” has the meaning specified in Section 2.03(c)(i).         “HOT-Barbados” means Helen of Troy Limited, a Barbados company.         “HOT-Nevada”  means  Helen  of  Troy  Nevada Corporation,  a  Nevada  corporation  and  general partner of the Borrower.         “Increase Effective Date” has the meaning specified in Section 2.14(d).         “Increase Joinder” has the meaning specified in Section 2.14(e).         “Incremental  Commitments”  means  Incremental  Revolving  Commitments  and/or  Incremental Term Commitments.         “Incremental  Revolving  Commitment”  has  the  meaning  assigned  to  such  term  in  Section 2.14(a).         “Incremental  Term  Commitments”  has  the  meaning  assigned  to  such  term  in  Section 2.14(a).         “Incremental  Term  Loan  Maturity  Date”  has  the  meaning  assigned  to  such  term  in  Section 2.14(b).         “Incremental  Term  Loans”  means  any  loans  made  pursuant  to  any  Incremental  Term  Commitments.         “Indebtedness” means, as to any Person at a particular time, without duplication, all of the  following, whether or not included as indebtedness or liabilities in accordance with GAAP:               (a)   all obligations of such Person for borrowed money and all obligations of        such  Person  evidenced  by  bonds,  debentures,  notes,  loan  agreements  or  other  similar        instruments;               (b)   all direct or contingent obligations of such Person arising under letters of        credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety        bonds and similar instruments (but for purposes of Section 7.03 only, such obligations shall        only be Indebtedness to the extent drawn upon or a claim is made in respect thereof);               (c)   net obligations of such Person under any Swap Contract;               (d)   all obligations of such Person to pay the deferred purchase price of property        or services (other than trade accounts payable in the ordinary course of business and, in        each case, not past due for more than 60 days after the date on which such trade account        payable was created);               (e)   indebtedness  (excluding  prepaid  interest  thereon)  secured  by  a  Lien  on        property owned or being purchased by such Person (including indebtedness arising under     

 

         conditional sales or other title retention agreements), whether or not such indebtedness        shall have been assumed by such Person or is limited in recourse;               (f)   Capital Leases and Synthetic Lease Obligations;               (g)   all  obligations  of  such  Person  to  purchase,  redeem,  retire,  defease  or        otherwise make any dividend or similar payment in respect of any Disqualified Equity        Interest in such Person or any other Person, valued, in the case of a redeemable preferred        interest, at the greater of its voluntary or involuntary liquidation preference plus accrued        and unpaid dividends; and               (h)   all Guarantees of such Person in respect of any of the foregoing.         For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of  any partnership or joint venture (other than a joint venture that is itself a corporation, a limited  liability company or similar entity) in which such Person is a general partner or a joint venturer,  unless such Indebtedness is expressly made non-recourse to such Person.  The amount of any net  obligation under any Swap Contract on any date shall be deemed to be the Swap Termination  Value thereof as of such date.  The amount of any Capital Lease or Synthetic Lease Obligation as  of any date shall be deemed to be the amount of Attributable Indebtedness in respect thereof as of  such date.  For all purposes hereunder, the Indebtedness of any Person shall not include any other  indebtedness  or  portion  thereof  with  respect  to  which  and  to  the  extent  the  trustee  or  other  applicable depository in respect of such indebtedness holds cash or cash equivalents in an amount  sufficient to repay the principal, and accrued interest on, such indebtedness, and the foregoing shall  constitute a redemption or a complete defeasance of such indebtedness pursuant to the applicable  agreement governing such indebtedness.         “Indemnified  Taxes”  means  (a) Taxes  other  than  Excluded  Taxes,  imposed  on  or  with  respect to any payment made by or on account of any obligation of any Loan Party under any Loan  Document and (b) to the extent not otherwise described in clause (a), Other Taxes.         “Indemnitees” has the meaning specified in Section 10.04(b).         “Information” has the meaning specified in Section 10.07.         “Interest  Coverage  Ratio”  means,  as  of  any  date  of  determination,  the  ratio  of  (a) Consolidated EBIT to (b) interest expense of Limited and its Subsidiaries, in each case for the  items set forth in clauses (a) and (b) for the period of four consecutive fiscal quarters ending on  such date.         “Interest Payment Date” means, (a) as to any Loan other than a Base Rate Loan, the last  day of each Interest Period applicable to such Loan and the Maturity Date; provided, however, that  if any Interest Period for a Eurodollar Rate Loan exceeds three months, the respective dates that  fall every three months after the beginning of such Interest Period shall also be Interest Payment  Dates; and (b) as to any Base Rate Loan (including a Swing Line Loan), the last Business Day of  each May, August, November and February and the Maturity Date.     

 

         “Interest Period” means, as to each Eurodollar Rate Loan, the period commencing on the  date such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate  Loan and ending on the date one, two, three or six months thereafter, as selected by the Borrower  in its Revolving Loan Notice or such other period that is twelve months or less requested by the  Borrower and consented to by all the Lenders; provided that:               (i)   any Interest Period that would otherwise end on a day that is not a Business        Day shall be extended to the next succeeding Business Day unless such Business Day falls        in  another  calendar  month,  in  which  case  such  Interest  Period  shall  end  on  the  next        preceding Business Day;               (ii)  any Interest Period that begins on the last Business Day of a calendar month        (or on a day for which there is no numerically corresponding day in the calendar month at        the end of such Interest Period) shall end on the last Business Day of the calendar month        at the end of such Interest Period; and               (iii) no Interest Period shall extend beyond the Maturity Date.         “Investment” means, as to any Person, any direct or indirect acquisition or investment by  such Person, whether by means of (a) the purchase or other acquisition of capital stock or other  securities  of  another  Person,  (b) a  loan,  advance  or  capital  contribution  to,  Guarantee  or  assumption of debt of, or purchase or other acquisition of any other debt or equity participation or  interest in, another Person, including any partnership or joint venture interest in such other Person  and any arrangement pursuant to which the investor Guarantees Indebtedness of such other Person,  or (c) the purchase or other acquisition (in one transaction or a series of transactions) of assets of  another Person that constitute a business unit.  For purposes of covenant compliance, the amount  of  any  Investment  shall  be  the  amount  actually  invested,  without  adjustment  for  subsequent  increases or decreases in the value of such Investment.         “IP Rights” has the meaning specified in Section 5.17.         “IRS” means the United States Internal Revenue Service.         “ISP” means,  with  respect  to  any Letter of Credit, the International Standby Practices,  International Chamber of Commerce Publications No. 590 (or such later version thereof as may  be in effect at the time of issuance).         “Issuer  Documents”  means  with  respect  to  any  Letter  of  Credit,  the  Letter  of  Credit  Application, and any other document, agreement and instrument entered into by the L/C Issuer  and the Borrower (or any Subsidiary) or in favor of the L/C Issuer and relating to such Letter of  Credit.         “Joinder Date” has the meaning specified in Section 10.24.         “Judgment Currency” has the meaning specified in Section 10.19.         “Laws”  means,  collectively,  all  international,  foreign,  Federal,  state  and  local  statutes,  treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents    

 

   or  authorities,  including  the  interpretation  or  administration  thereof  by  any  Governmental  Authority charged with the enforcement, interpretation or administration thereof, and all applicable  administrative  orders,  directed  duties,  requests,  licenses,  authorizations  and  permits  of,  and  agreements with, any Governmental Authority, in each case whether or not having the force of  law.         “L/C  Advance”  means,  with  respect  to  each  Lender,  such  Lender’s  funding  of  its  participation  in  any  L/C  Borrowing  in  accordance  with  its  Applicable  Percentage.   All  L/C  Advances shall be denominated in Dollars.         “L/C Borrowing” means an extension of credit resulting from a drawing under any Letter  of Credit which has not been reimbursed on the date when made or refinanced as a Revolving  Borrowing.  All L/C Borrowings shall be denominated in Dollars.         “L/C Credit Extension” means, with respect to any Letter of Credit, the issuance thereof or  extension of the expiry date thereof, or the increase of the amount thereof.         “L/C  Issuer”  means  Bank  of  America,  through  itself  or  through  one  of  its  designated  Affiliates or branch offices, in its capacity as issuer of Letters of Credit hereunder, or any successor  issuer of Letters of Credit hereunder.         “L/C Obligations” means, as at any date of determination, the aggregate amount available  to  be  drawn  under  all  outstanding  Letters  of  Credit plus the  aggregate  of  all  Unreimbursed  Amounts, including all L/C Borrowings.  For purposes of computing the amount available to be  drawn under any Letter  of Credit, the amount of such Letter of Credit shall be determined in  accordance with Section 1.06.  For all purposes of this Agreement, if on any date of determination  a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason  of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding”  in the amount so remaining available to be drawn.         “Lender” has the meaning specified in the first introductory paragraph hereto and, unless  the context requires otherwise, includes the Swing Line Lender.         “Lending Office” means, as to any Lender, the office or offices of such Lender described  as such in such Lender’s Administrative Questionnaire, or such other office or offices as a Lender  may from time to time notify the Borrower and the Administrative Agent.         “Letter of Credit” means any letter of credit issued hereunder and shall include the Existing  Letters of Credit.  A Letter of Credit may be a commercial letter of credit or a standby letter of  credit.  A Letter of Credit may be issued in Dollars or in an Alternative Currency.         “Letter of Credit Application” means  an application and agreement for the issuance or  amendment of a Letter of Credit in the form from time to time in use by the L/C Issuer.         “Letter of Credit Expiration Date” means the day that is seven days prior to the Maturity  Date then in effect (or, if such day is not a Business Day, the next preceding Business Day).         “Letter of Credit Fee” has the meaning specified in Section 2.03(h).    

 

         “Letter of Credit Sublimit” means an amount equal to $75,000,000.  The Letter of Credit  Sublimit is part of, and not in addition to, the Aggregate Commitments.         “Leverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated  Funded  Indebtedness  on  such  date  to  (b) Consolidated  EBITDA  for  the  period  of  the  four  consecutive  fiscal  quarters  most  recently  ended  for  which  Limited  has  delivered  financial  statements pursuant to Section 6.01.  For purposes of calculating the Leverage Ratio as of any date,  Consolidated EBITDA shall be calculated on a pro forma basis (as certified by a Responsible  Officer of Limited to the Administrative Agent and as approved by the Administrative Agent)  assuming that all Acquisitions made, and all Dispositions completed, during the four consecutive  fiscal quarters most recently ended had been made on the first day of such period.         “LIBOR” has the meaning specified in the definition of Eurodollar Rate.         “LIBOR Rate” has the meaning specified in the definition of Eurodollar Rate.         “LIBOR  Screen  Rate”  means  the  LIBOR  quote  on  the  applicable  screen  page  the  Administrative  Agent  designates  to  determine  LIBOR  (or such  other  commercially  available  source providing such quotations as may be designated by the Administrative Agent from time to  time).         “LIBOR Successor Rate” has the meaning specified in Section 3.08.         “LIBOR  Successor  Rate  Conforming  Changes” means,  with respect  to  any  proposed  LIBOR Successor Rate, any conforming changes to the definition of Base Rate, Interest Period,  timing and frequency of determining rates and making payments of interest and other technical,  administrative or operational matters as may be appropriate, in the discretion of the Administrative  Agent, to reflect the adoption and implementation of such LIBOR Successor Rate and to permit  the administration thereof by the Administrative Agent in a manner substantially consistent with  market practice (or, if the Administrative Agent determines that adoption of any portion of such  market practice is not administratively feasible or that no market practice for the administration of  such LIBOR Successor Rate exists, in such other manner of administration as the Administrative  Agent  determines  is  reasonably  necessary  in  connection  with  the  administration  of  this  Agreement).           “Licenses” means, collectively, (a) the Scheduled Licenses and (b) any other license or  similar agreement the loss of which could be reasonably expected to have a Material Adverse  Effect,  and  all  rights  under  any  of  those  items  described  in  clauses (a)  and  (b)  immediately  preceding.         “Lien”  means  any  mortgage,  pledge,  hypothecation,  assignment,  deposit  arrangement,  encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or  preferential  arrangement  in  the  nature  of  a  security  interest  of  any  kind  or  nature  whatsoever  (including any conditional sale or other title retention agreement, any easement, right of way or  other encumbrance on title to real property, and any financing lease having substantially the same  economic effect as any of the foregoing).         “Limited” has the meaning specified in the first introductory paragraph hereto.    

 

         “Liquidity” means, at any time of determination, the sum of (a) Unrestricted Cash and Cash  Equivalents  of  Limited  and  its  Subsidiaries  at  such  time  and  (b) the  amount  by  which  the  Aggregate Commitments exceed the Total Outstandings at such time.         “Litigation” means any proceeding, claim, lawsuit, arbitration and/or investigation by or  before  any  Governmental  Authority  or  arbitrator,  including,  without  limitation,  proceedings,  claims, lawsuits, and/or such investigations conducted by or before any Governmental Authority  or arbitrator or pursuant to any environmental, occupational, safety and health, antitrust, unfair  competition, securities, tax or other Law, or under or pursuant to any contract, agreement or other  instrument.         “Loan” means an extension of credit by a Lender to the Borrower under Article II in the  form of a Revolving Loan or a Swing Line Loan.         “Loan  Documents”  means  this  Agreement,  each  Note,  each  Issuer  Document,  any  agreement  creating  or  perfecting  rights  in  Cash  Collateral  pursuant  to  the  provisions  of  Section 2.15, the Fee Letter, the Autoborrow Agreement, and each Guaranty.         “Loan Parties” means, collectively, the Borrower and each Guarantor.         “London Banking Day” means any day on which dealings in Dollar deposits are conducted  by and between banks in the London interbank eurodollar market.         “Material  Adverse  Effect”  means  (a)  a  material  adverse  effect  upon,  the  operations,  business, properties, liabilities (actual or contingent), condition (financial or otherwise) of Limited  and its Subsidiaries, taken as a whole; or (b) a material adverse effect upon (i) the ability of the  Loan Parties, taken as a whole, to perform their payment obligations under any Loan Document  or (ii) the legality, validity, binding effect or enforceability against any Loan Party of any Loan  Document to which it is a party.         “Material Domestic Subsidiary” means any Domestic Subsidiary of Limited (other than an  Excluded Subsidiary) that,  together  with  its  Subsidiaries,  has  total  assets  (including  Equity  Interests in other Subsidiaries and excluding investments that are eliminated in consolidation) of  equal to or greater than 3.75% of Consolidated Total Assets as of the end of the most recent four  (4) fiscal quarters; provided, however, that if at any time there are Domestic Subsidiaries which  are not  classified as  “Material Domestic Subsidiaries” but  which collectively  have total  assets  (including Equity Interests in other Subsidiaries and excluding investments that are eliminated in  consolidation) of equal to or greater than 7.5% of Consolidated Total Assets, then the Borrower  shall promptly designate one or more such Subsidiaries as Material Domestic Subsidiaries and  cause any such Subsidiary to comply with the provisions of Section 6.15 such that, after such  Subsidiaries  become Guarantors  hereunder,  the  Domestic  Subsidiaries  that  are  not  Guarantors  shall have less than 7.5% of Consolidated Total Assets.           “Maturity  Date”  means March  13,  2025; provided, however,  that  if  such  date  is  not  a  Business Day, the Maturity Date shall be the next preceding Business Day.         “Minimum Collateral  Amount” means,  at  any time, (a) with  respect  to  Cash  Collateral  consisting of cash or deposit account balances provided to reduce or eliminate Fronting Exposure    

 

   during the existence of a Defaulting Lender, an amount equal to 102% of the Fronting Exposure  of the L/C Issuer with respect to Letters of Credit issued and outstanding at such time, (b) with  respect to Cash Collateral consisting of cash or deposit account balances provided in accordance  with  the provisions  of Section 2.15(a)(i), (a)(ii) or (a)(iii),  an  amount  equal  to 102% of  the  Outstanding  Amount  of  all  L/C  Obligations,  and  (c) otherwise,  an  amount  determined  by  the  Administrative Agent and the L/C Issuer in their sole discretion.         “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.         “Multiemployer  Plan”  means  any  employee  benefit  plan  of  the  type  described  in  Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated  to make contributions, or during the preceding five plan years, has made or been obligated to make  contributions.         “Multiple Employer Plan” means a Plan which  has  two or more contributing sponsors  (including the Borrower or any ERISA Affiliate) at least two of whom are not under common  control, as such a plan is described in Section 4064 of ERISA.         “Net Leverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated  Funded Net Indebtedness on such date to (b) Consolidated EBITDA for the period of the four  consecutive  fiscal  quarters  most  recently  ended  for  which  Limited  has  delivered  financial  statements pursuant to Section 6.01.  For purposes of calculating the Net Leverage Ratio as of any  date, Consolidated EBITDA shall be calculated on a pro forma basis (as certified by a Responsible  Officer of Limited to the Administrative Agent and as approved by the Administrative Agent)  assuming that all Acquisitions made, and all Dispositions completed, during the four consecutive  fiscal quarters most recently ended had been made on the first day of such period.         “Non-Consenting Lender” means any Lender that does not approve any consent, waiver or  amendment that (a) requires the approval of all Lenders or all affected Lenders in accordance with  the terms of Section 10.01 and (b) has been approved by the Required Lenders.         “Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender  at such time.         “Non-Extension Notice Date” has the meaning specified in Section 2.03(b)(iii).         “Notes” means collectively, the Revolving Loan Notes and the Swing Line Note.         “Obligations”  means  all  advances  to,  and  debts,  liabilities,  obligations,  covenants  and  duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan  or Letter of Credit, whether direct or indirect (including those acquired by assumption), absolute  or contingent, due or to become due, now existing or hereafter arising and including interest and  fees that accrue after the commencement by or against any Loan Party or any Affiliate thereof of  any  proceeding  under  any  Debtor  Relief  Laws  naming  such  Person  as  the  debtor  in  such  proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.   For avoidance of doubt, Obligations shall not include any Excluded Swap Obligations.     

 

         “OFAC” means the Office of Foreign Assets Control of the United States Department of  the Treasury.         “Off-Balance  Sheet  Liabilities”  means,  with  respect  to  any  Person  as  of  any  date  of  determination  thereof,  without  duplication  and  to  the  extent  not  included  as  a  liability  on  the  consolidated balance sheet of such Person and its Subsidiaries in accordance with GAAP:  (a) with  respect to any asset securitization transaction (including any accounts receivable purchase facility)  (i) the unrecovered investment of purchasers or transferees of assets so transferred, and (ii) any  other payment, recourse, repurchase, hold harmless, indemnity or similar obligation of such Person  or any of its Subsidiaries in respect of assets transferred or payments made in respect thereof, other  than limited recourse provisions that are customary for transactions of such type and that neither  (x) have the effect of limiting the loss or credit risk of such purchasers or transferees with respect  to  payment  or  performance  by  the  obligors  of  the  assets  so  transferred  nor  (y) impair  the  characterization of the transaction as a true sale under Applicable Laws (including Debtor Relief  Laws);  (b) the  monetary  obligations  under  any  financing  lease  or  so-called  “synthetic,”  tax  retention or off-balance sheet lease transaction which, upon the application of any Debtor Relief  Law to such Person or any of its Subsidiaries, would be characterized as indebtedness; (c) the  monetary obligations under any sale and leaseback transaction which does not create a liability on  the  consolidated  balance  sheet  of  such  Person  and  its  Subsidiaries;  or  (d) any  other  monetary  obligation arising with respect to any other transaction which (i) is characterized as indebtedness  for tax purposes but not for accounting purposes in accordance with GAAP or (ii) is the functional  equivalent  of  or  takes  the  place  of  borrowing  but  which  does  not  constitute  a  liability  on  the  consolidated balance sheet of such Person and its Subsidiaries (for purposes of this clause (d), any  transaction structured to provide tax deductibility as interest expense of any dividend, coupon or  other periodic payment will be deemed to be the functional equivalent of a borrowing).         “Organization Documents” means, (a) with respect to any corporation, the certificate or  articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with  respect  to  any non-U.S.  jurisdiction);  (b) with  respect  to  any  limited  liability  company,  the  certificate or articles of formation or organization and operating agreement; and (c) with respect  to  any  partnership,  joint  venture,  trust  or  other  form  of  business  entity,  the partnership,  joint  venture or other applicable agreement of formation or organization and any agreement, instrument,  filing or notice with respect thereto filed in connection with its formation or organization with the  applicable  Governmental  Authority  in the  jurisdiction  of  its  formation  or  organization  and,  if  applicable, any certificate or articles of formation or organization of such entity.         “Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result  of a present or former connection between such Recipient and the jurisdiction imposing such Tax  (other than connections arising from such Recipient 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 Loan Document, or  sold or assigned an interest in any Loan or Loan Document).         “Other Foreign Investments” means obligations issued or directly insured or guaranteed by  a Governmental Authority, time deposits, certificates of deposit, banker acceptances, commercial  paper, repurchase obligations of a financial institution, money market funds or similar Investments  that, in the good faith judgment of the Borrower, are marketable or otherwise liquid and readily    

 

   convertible  to  known  amounts  of  cash; provided that  the  aggregate  amount  of  Other  Foreign  Investments  by  a  non-CFC  Foreign  Subsidiary  at  any  time  outstanding  shall  not  exceed  $20,000,000.         “Other  Taxes”  means  all  present  or future  stamp,  court  or  documentary,  intangible,  recording, filing or similar Taxes that arise from any payment made under, from the execution,  delivery, performance, enforcement or registration of, from the receipt or perfection of a security  interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are  Other Connection Taxes imposed with respect to an assignment (other than an assignment made  pursuant to Section 3.06).         “Outstanding Amount” means (i) with respect to Revolving Loans and Swing Line Loans  on  any  date,  the  aggregate  outstanding  principal  amount  thereof  after  giving  effect  to  any  borrowings and prepayments or repayments of Revolving Loans and Swing Line Loans, as the  case may be, occurring on such date; and (ii) with respect to any L/C Obligations on any date, the  Dollar Equivalent of the aggregate outstanding amount of such L/C Obligations on such date after  giving effect to any L/C Credit Extension occurring on such date and any other changes in the  aggregate  amount  of  the  L/C  Obligations  as  of  such  date,  including  as  a  result  of  any  reimbursements by the Borrower of Unreimbursed Amounts.         “Overnight  Rate”  means,  for  any  day,  (a) with  respect  to  any  amount  denominated  in  Dollars,  the greater of (i) the Federal  Funds  Rate and (ii) an overnight  rate determined by the  Administrative Agent, the L/C Issuer, or the Swing Line Lender, as the case may be, in accordance  with usual and customary banking industry rules on interbank compensation, and (b) with respect  to any amount denominated in an Alternative Currency, the rate of interest per annum at which  overnight deposits in the applicable Alternative Currency, in an amount approximately equal to  the amount with respect to which such rate is being determined, would be offered for such day by  a branch or Affiliate of Bank of America in the applicable offshore interbank market for such  currency to major banks in such interbank market.         “Participant” has the meaning specified in Section 10.06(d).         “Participant Register” has the meaning specified in Section 10.06(d).         “PBGC” means the Pension Benefit Guaranty Corporation.         “Pension Act” means the Pension Protection Act of 2006.         “Pension Funding Rules” means the rules of the Code and ERISA regarding minimum  required  contributions  (including  any  installment  payment  thereof)  to  Pension  Plans and  Multiemployer Plans and set forth in, with respect to plan years ending prior to the effective date  of the Pension Act, Section 412 of the Code and Section 302 of ERISA, each as in effect prior to  the Pension Act and, thereafter, Section 412, 430, 431, 432 and 436 of the Code and Sections 302,  303, 304 and 305 of ERISA.         “Pension  Plan”  means  any  employee  pension  benefit  plan  (excluding a  Multiemployer  Plan) that is maintained or is contributed to by the Borrower and any ERISA Affiliate and is either     

 

   covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412  of the Code.         “Person”  means  any  natural  person,  corporation,  limited  liability  company,  trust,  joint  venture, association, company, partnership, Governmental Authority or other entity.         “Plan” means any employee benefit plan within the meaning of Section 3(3) of ERISA  (including a Pension Plan), maintained for employees of the Borrower or any ERISA Affiliate or  any such Plan to which the Borrower or any ERISA Affiliate is required to contribute on behalf of  any of its employees.         “Platform” has the meaning specified in Section 6.02.         “PTE” means a prohibited transaction class exemption issued by the U.S. Department of  Labor, as any such exemption may be amended from time to time.         “QFC” has the meaning specified in Section 10.23.         “QFC Credit Support” has the meaning specified in Section 10.23.         “Qualified  Acquisition”  means  an  Acquisition  by  Limited  or  any  Subsidiary,  which  Acquisition has been designated to the Lenders in a Qualified Acquisition Notice as a “Qualified  Acquisition”, provided that the aggregate Acquisition Consideration is greater than $150,000,000.         “Qualified Acquisition Notice” means a written notice from Limited to the Administrative  Agent (a) delivered not later than 5 days prior to the date of closing of the proposed Qualified  Acquisition (or such shorter period agreed to by the Administrative Agent) and (b) which describes  the Qualified Acquisition which is the basis for such request (including, without limitation, a pro  forma  calculation  of  the  Leverage  Ratio  immediately  prior  to  and  after  giving  effect  to  such  Qualified Acquisition, which calculation shall indicate that the Leverage Ratio immediately prior  to such Qualified Acquisition is not greater than 3.50 to 1.00), and otherwise in form reasonably  satisfactory to the Administrative Agent.         “Qualified ECP Guarantor” means, at any time, each Loan Party with total assets exceeding  $10,000,000 or that otherwise qualifies at such time as an “eligible contract participant” under  §1a(18)(A)(v)  or  (C)  of  the  Commodity  Exchange  Act  and  Regulation 1.3(m)  promulgated  thereunder by the Commodity Futures Trading Commission.         “Qualified Equity Interests” means any Equity Interests that are not Disqualified Equity  Interests.         “Recipient”  means  the  Administrative  Agent,  any  Lender,  the  L/C  Issuer  or  any  other  recipient of any payment to be made or on account of any Obligation of any Loan Party hereunder.         “Register” has the meaning specified in Section 10.06(c).     

 

         “Related  Parties”  means,  with  respect  to  any  Person,  such  Person’s  Affiliates  and  the  partners,  directors,  officers,  employees,  agents,  trustees,  administrators,  managers, advisors,  consultants, service providers and representatives of such Person and of such Person’s Affiliates.         “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 for the purpose of recommending a  benchmark rate to replace LIBOR in loan agreements similar to this Agreement.         “Removal Effective Date” has the meaning specified in Section 9.06(b).         “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other  than events for which the 30 day notice period has been waived.         “Request  for  Credit  Extension”  means  (a) with  respect  to  a  Borrowing,  conversion  or  continuation of Revolving  Loans,  a Revolving Loan Notice, (b) with  respect  to  an L/C Credit  Extension, a Letter of Credit Application, and (c) with respect to a Swing Line Loan at any time  an Autoborrow Agreement is not in effect, a Swing Line Loan Notice.         “Required  Lenders”  means,  at  any  time,  Lenders  having  Total  Credit  Exposures  representing  more  than  50%  of  the  Total  Credit  Exposures  of  all  Lenders.   The  Total  Credit  Exposure of any Defaulting Lender shall be disregarded in determining Required Lenders at any  time; provided that, the amount of any participation in any Swing Line Loan and Unreimbursed  Amounts that such Defaulting Lender has failed to fund that have not been reallocated to and  funded by another Lender shall be deemed to be held by the Lender that is the Swing Line Lender  or L/C Issuer, as the case may be, in making such determination.         “Resignation Effective Date” has the meaning specified in Section 9.06(a).         “Resolution Authority” means an EEA Resolution Authority or, with respect to any UK  Financial institution, a UK Resolution Authority.         “Responsible Officer” means the chief executive officer, president, chief financial officer,  executive vice president, controller, treasurer or assistant treasurer of a Loan Party, or if such Loan  Party does not have such officers, a director of such Loan Party, and, solely for purposes of notices  given pursuant to Article II, any other officer or employee of the Borrower so designated by any  of the foregoing officers of the Borrower in a notice to the Administrative Agent or any other  officer  or  employee  of  the  Borrower  designated  in  or  pursuant  to  an  agreement  between  the  Borrower and the Administrative Agent.  Any document delivered hereunder that is signed by a  Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by  all necessary corporate, partnership and/or other action on the part of such Loan Party and such  Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party.   To the extent requested by the Administrative Agent, each Responsible Officer will provide an  incumbency  certificate  and  to  the  extent  requested  by  the  Administrative  Agent,  appropriate  authorization document, in form and substance satisfactory to the Administrative Agent.         “Restricted  Payment”  means,  collectively,  (a) any  Dividend,  (b) any  Treasury  Stock  Purchase and (c) any payment or prepayment of principal, interest, premium or penalty of or in    

 

   respect of any Subordinated Indebtedness or any defeasance, redemption, purchase, repurchase or  other acquisition or retirement for value, in whole or in part, of any Subordinated Indebtedness.         “Revaluation  Date” means  with  respect  to  any  Letter of Credit, each of the following:   (a) each date of issuance or extension of a Letter of Credit denominated in an Alternative Currency,  (b) each date of an amendment of any such Letter of Credit having the effect of increasing the  amount thereof (solely with respect to the increased amount), (c) each date of any payment by the  L/C Issuer under any Letter of Credit denominated in an Alternative Currency, (d) in the case of  Existing Letters of Credit denominated in Alternative Currencies, the Closing Date, and (e) such  additional dates as the Administrative Agent or the L/C Issuer shall determine or the Required  Lenders shall require.         “Revolving Borrowing” means a borrowing consisting of simultaneous Revolving Loans  of the same Type and, in the case of Eurodollar Rate Loans, having the same Interest Period made  by each of the Lenders pursuant to Section 2.01.         “Revolving  Credit  Exposure”  means,  as  to  any  Lender  at  any  time,  the  aggregate  Outstanding Amount at such time of its Revolving Loans and the aggregate Outstanding Amount  of such Lender’s participation in L/C Obligations and Swing Line Loans at such time.         “Revolving Loan” has the meaning specified in Section 2.01.         “Revolving Loan Note”  means  a promissory note made by the Borrower in  favor of a  Lender evidencing Revolving Loans made by such Lender, substantially in the form of Exhibit C.         “Revolving Loan Notice” means a notice of (a) a Revolving Borrowing, (b) a conversion  of Revolving Loans from one Type to the other, or (c) a continuation of Eurodollar Rate Loans,  pursuant to Section 2.02(a), which shall be substantially in the form of Exhibit A or such other  form as may be approved by the Administrative Agent and the Borrower (including any form on  an electronic platform or electronic transmission system as shall be approved by the Administrative  Agent), appropriately completed and signed by a Responsible Officer of the Borrower.         “S&P” means Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc.,  and any successor thereto.         “Same  Day  Funds”  means  (a) with  respect  to  disbursements  and  payments  in  Dollars,  immediately available funds, and (b) with respect to disbursements and payments in an Alternative  Currency, same day or other funds as may be determined by the Administrative Agent or the L/C  Issuer, as the case may be, to be usual and customary in the place of disbursement or payment for  the settlement of international banking transactions in the relevant Alternative Currency.         “Sanctions” means any sanction administered or enforced by the United States Government  (including, without limitation, OFAC), the United Nations Security Council, the European Union,  Her Majesty’s Treasury (“HMT”), any member states of the European Union or other relevant  sanctions authority.         “Sanctions  Laws”  means  all  laws,  rules,  regulations  and  requirements administered  or  enforced by the United States Government (including, with limitation, OFAC, the U.S. Department    

 

   of State or the U.S. Department of Commerce), the United Nations Security Council, the European  Union,  the  United  Kingdom  and  any  other  relevant  sanctions  authority in  connection  with  Sanctions or the Act.         “Scheduled Licenses” means those Licenses set forth on Schedule 1.01(b).         “Scheduled Unavailability Date” has the meaning specified in Section 3.08(b).         “SEC” means the Securities and Exchange Commission, or any Governmental Authority  succeeding to any of its principal functions.         “Second Amendment” means that certain Second Amendment, Assumption, Consent and  Ratification Agreement, dated as of March 1, 2018, among Helen of Troy L.P., a Texas limited  partnership, Helen of Troy Texas  Corporation, a Texas  corporation, Limited, the Lenders, the  Administrative Agent, the Swing Line Lender and the L/C Issuer.         “Second Amendment Effective Date” means the date that all conditions of effectiveness  set forth in Section 7 of the Second Amendment have been satisfied.         “Shareholders’ Equity” means, as of any date of determination, consolidated shareholders’  equity of Limited and its Subsidiaries as of that date determined in accordance with GAAP.         “SOFR” with respect to any day means the secured overnight financing rate published for  such day by the Federal Reserve Bank of New York, as the administrator of the benchmark (or a  successor administrator) on the Federal Reserve Bank of New York’s website (or any successor  source) and, in each case, that has been selected or recommended by the Relevant Governmental  Body.         “SOFR-Based Rate” means SOFR or Term SOFR.         “Solvent” means, with respect to any Person, that the fair value of the assets of such Person  is, on the date of determination, greater than the total amount of liabilities (including contingent  and unliquidated liabilities) of such Person as of such date, that the present fair saleable value of  the assets of such Person is, on the date of determination, not less than the amount that will be  required to pay the probable liability on its debts as they become absolute and matured, and that,  as of such date, such Person is able to pay all liabilities of such Person as such liabilities mature  and such Person does not have unreasonably small capital with which to carry on its business.  In  computing the amount of contingent obligation or other contingent or unliquidated liabilities at  any  time,  such  liabilities  will  be  computed  at  the  amount  which,  in  light  of  all  the  facts  and  circumstances existing at such time, represents the amount that can reasonably be expected to  become an actual or matured liability discounted to present value at rates believed to be reasonable  by such Person.         “Specified Loan Party” means any Loan Party that is not an “eligible contract participant”  under the Commodity Exchange Act (determined prior to giving effect to Section 10.21).         “Spot Rate” for an Alternative Currency means the rate determined by the Administrative  Agent or the L/C Issuer, as applicable, to be the rate quoted by the Person acting in such capacity    

 

   as the spot rate for the purchase by such Person of such Alternative Currency with another currency  through its principal foreign exchange trading office at approximately 11:00 a.m. on the date two  Business Days prior to the date as of which the foreign exchange computation is made; provided  that the Administrative Agent or the L/C Issuer may obtain such spot rate from another financial  institution designated by the Administrative Agent or the L/C Issuer if the Person acting in such  capacity does not have as of the date of determination a spot buying rate for any such Alternative  Currency; and provided further that the L/C Issuer may use such spot rate quoted on the date as of  which the foreign exchange computation is made in the case of any Letter of Credit denominated  in an Alternative Currency.         “Sterling” means the lawful currency of the United Kingdom.         “Subordinated Indebtedness” means any Indebtedness of Limited or any Subsidiary which  is  expressly  subordinated  to  the  Obligations  at  all  times  pursuant  to  terms  satisfactory  to  the  Required Lenders.         “Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability  company or other business entity of which a majority of the shares of securities or other interests  having ordinary voting power for the election of directors or other governing body (other than  securities or interests having such power only by reason of the happening of a contingency) are at  the time beneficially owned, Controlled or held by such Person.  Unless otherwise specified, all  references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries  of Limited.         “Supported QFC” has the meaning specified in Section 10.23.         “Swap  Contract”  means  (a) any  and  all  rate  swap  transactions,  basis  swaps,  credit  derivative transactions, forward rate transactions, commodity swaps, commodity options, forward  commodity contracts, equity or equity index swaps or options, bond or bond price or bond index  swaps  or  options  or  forward  bond  or  forward  bond  price  or  forward  bond  index  transactions,  interest rate options, forward foreign exchange transactions, cap transactions, floor transactions,  collar transactions, currency swap transactions, cross-currency rate swap transactions, currency  options, spot contracts, or any other similar transactions or any combination of any of the foregoing  (including any options to enter into any of the foregoing), whether or not any such transaction is  governed by or subject to any master agreement, and (b) any and all transactions of any kind, and  the related confirmations, which are subject to the terms and conditions of, or governed by, any  form of master agreement published by the International Swaps and Derivatives Association, Inc.,  any International Foreign Exchange Master Agreement, or any other master agreement (any such  master agreement, together with any related schedules, a “Master Agreement”), including any such  obligations or liabilities under any Master Agreement.         “Swap Obligations” means, with respect to any Guarantor, any obligation to pay or perform  under  any  agreement,  contract  or  transaction  that  constitutes  a  “swap”  within  the  meaning  of  Section 1a(47) of the Commodity Exchange Act.         “Swap Termination Value” means, in respect of any one or more Swap Contracts, after  taking into account the effect of any legally enforceable netting agreement relating to such Swap    

 

   Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and  termination value(s) determined in accordance therewith, such termination value(s), and (b) for  any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market  value(s) for such Swap Contracts, as determined based upon one or more mid-market or other  readily available quotations provided by any recognized dealer in such Swap Contracts (which  may include a Lender or any Affiliate of a Lender).         “Swing Line” means the revolving credit facility made available by the Swing Line Lender  pursuant to Section 2.04.         “Swing  Line  Borrowing”  means  a  borrowing  of  a  Swing  Line  Loan  pursuant  to  Section 2.04.         “Swing Line Lender” means Bank of America in its capacity as provider of Swing Line  Loans, or any successor swing line lender hereunder.         “Swing Line Loan” has the meaning specified in Section 2.04(a).         “Swing  Line  Loan  Notice”  means  a  notice  of  a  Swing  Line  Borrowing  pursuant  to  Section 2.04(b), which, if in writing, shall be substantially in the form of Exhibit B or such other  form  as  approved  by  the  Administrative  Agent and  the  Borrower (including  any  form  on  an  electronic  platform  or  electronic  system  as  shall  be  approved  by  the  Administrative  Agent),  appropriately completed and signed by a Responsible Officer of the Borrower.         “Swing Line Note” means that certain promissory note made by the Borrower in favor of  the Swing Line Lender, substantially in the form of Exhibit D.         “Swing Line Sublimit” means an amount equal to the lesser of (a) $50,000,000 and (b) the  Aggregate Commitments.  The Swing Line Sublimit is part of, and not in addition to, the Aggregate  Commitments.         “Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a so- called  synthetic,  off-balance  sheet  or  tax  retention  lease,  or  (b) an  agreement  for  the  use  or  possession of property creating obligations that do not appear on the balance sheet of such Person  but  which,  upon  the  insolvency  or  bankruptcy  of  such  Person,  would  be  characterized  as  the  indebtedness of such Person (without regard to accounting treatment).         “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings  (including backup withholding), assessments, fees or other charges imposed by any Governmental  Authority, including any interest, additions to tax or penalties applicable thereto.         “Term SOFR” means the forward-looking term rate for any period that is approximately  (as determined by the Administrative Agent) as long as any of the Interest Period options set forth  in the definition of “Interest Period” and that is based on SOFR and that has been selected or  recommended by the Relevant Governmental Body, in each case as published on an  information  service as selected by the Administrative Agent from time to time in its reasonable discretion.     

 

         “Third Amendment” means that certain Third Amendment and Commitment Increase to  Credit Agreement, dated as of March 13, 2020, among the Borrower, Limited, the Lenders and the  Administrative Agent.         “Third Amendment Effective Date” means the date that all conditions of effectiveness set  forth in Section 5 of the Third Amendment have been satisfied.         “Total Credit Exposure” means, as to any Lender at any time, the unused Commitments  and Revolving Credit Exposure of such Lender at such time.         “Total Outstandings” means the aggregate Outstanding Amount of all Loans and all L/C  Obligations.         “Treasury Stock Purchase” means, with respect to any Person, any payment (whether in  cash, securities or other property), including any sinking fund or similar deposit, on account of the  purchase, redemption, retirement, acquisition, cancellation or termination of any capital stock or  other Equity Interests of such Person or on account of any returns of capital to such Person’s  stockholders, partners or members (or the equivalent Person thereof).         “Type” means, with respect to a Revolving Loan, its character as a Base Rate Loan or a  Eurodollar Rate Loan.         “UCC” means the Uniform Commercial Code as in effect in the State of Texas.         “UCP” means, with respect to any Letter of Credit, the Uniform Customs and Practice for  Documentary Credits, International Chamber of Commerce (“ICC”) Publication No. 600 (or such  later version thereof as may be in effect at the time of issuance).         “United States” and “U.S.” mean the United States of America.         “Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i).         “Unrestricted Cash and Cash Equivalents” means (a) Cash and Cash Equivalents (other  than those Investments described in clause (g) of the definition of Cash and Cash Equivalents) and  (b) Other Foreign Investments, in each case, owned by Limited and its Subsidiaries that are not  subject to any Lien or control agreement or limitations or restrictions on the use thereof.         “UK Financial Institution” means any BRRD Undertaking (as such term is defined under  the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential  Regulation Authority) or any person subject to IFPRU 11.6 of the FCA Handbook (as amended  from  time  to  time)  promulgated  by  the  United  Kingdom  Financial  Conduct  Authority,  which  includes  certain  credit  institutions  and  investment  firms,  and  certain  affiliates  of  such  credit  institutions or investment firms.         “UK Resolution Authority” means the Bank of England or any other public administrative  authority having responsibility for the resolution of any UK Financial Institution.      

 

         “U.S.  Person”  means  any  Person  that  is  a  “United  States  Person”  as  defined  in  Section 7701(a)(30) of the Code.         “U.S. Special Resolution Regimes” has the meaning specified in Section 10.23.         “U.S. Tax Compliance Certificate” has the meaning specified in Section 3.01(e)(ii)(B)(III).         “Voting Equity Interests” of any Person means  Equity Interests of any class or classes  having ordinary voting power for the election of at least a majority of the members of the board of  directors, managing general partners or the equivalent governing body of such Person, irrespective  of whether, at the time, Equity Interests of any other class or classes or such entity shall have or  might have voting power by reason of the happening of any contingency.         “Write-Down and Conversion Powers” means, (a) with respect to any EEA Resolution  Authority, the write-down and conversion powers of such EEA Resolution Authority from time to  time under the Bail-In Legislation for the applicable EEA Member Country, which write-down  and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect  to  the  United  Kingdom,  any powers  of  the  applicable  Resolution  Authority  under  the  Bail-In  Legislation  to  cancel,  reduce,  modify  or  change  the  form  of  a  liability  of  any  UK  Financial  Institution or any contract or instrument under which that liability arises, to convert all or part of  that liability into shares, securities or obligations of that person or any other person, to provide that  any such contract or instrument is to have effect as if a right had been exercised under it or to  suspend  any  obligation  in  respect  of  that  liability  or  any  of  the  powers  under  that  Bail-In  Legislation that are related to or ancillary to any of those powers.         1.02  Other Interpretive Provisions.  With reference to this Agreement and each other  Loan Document, unless otherwise specified herein or in such other Loan Document:         (a)   The definitions of terms herein shall apply equally to the singular and plural forms  of  the  terms  defined.   Whenever  the  context  may  require,  any  pronoun  shall  include  the  corresponding  masculine,  feminine  and  neuter  forms.   The  words  “include,”  “includes”  and  “including” shall be deemed to be followed by the phrase “without limitation.”  The word “will”  shall be construed to have the same meaning and effect as the word “shall.”  Unless the context  requires  otherwise,  (i) any  definition  of  or  reference  to  any  agreement,  instrument  or  other  document  (including  any  Organization  Document)  shall  be  construed  as  referring  to  such  agreement,  instrument  or  other  document  as  from  time  to  time  amended,  supplemented  or  otherwise modified (subject to any restrictions on such amendments, supplements or modifications  set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be  construed to include such Person’s successors and assigns, (iii) the words “herein,” “hereof” and  “hereunder” and words of similar import when used in any Loan Document, shall be construed to  refer to such Loan Document in its entirety and not to any particular provision thereof, (iv) all  references in a Loan Document to Articles, Sections, Exhibits and Schedules shall be construed to  refer to Articles and Sections of, and Exhibits and Schedules to, the Loan Document in which such  references appear, (v) any reference to any law shall include all statutory and regulatory provisions  consolidating,  amending  replacing  or  interpreting  such  law  and  any  reference  to  any  law  or  regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified  or supplemented from time to time, and (vi) the words “asset” and “property” shall be construed    

 

   to have the same meaning and effect and to refer to any and all tangible and intangible assets and  properties, including cash, securities, accounts and contract rights.         (b)   In the computation of periods of time from a specified date to a later specified date,  the  word  “from”  means  “from  and  including;”  the  words  “to”  and  “until”  each  mean  “to  but  excluding;” and the word “through” means “to and including.”         (c)   Section  headings  herein  and  in  the  other  Loan  Documents  are  included  for  convenience of reference only and shall not affect the interpretation of this Agreement or any other  Loan Document.         (d)   The Schedules referred to herein correspond to the numbered and lettered sections  of this Agreement.  To the extent a Schedule corresponds to a representation and warranty made  hereunder, it shall, to the extent applicable, qualify such representation and warranty.         (e)   Any  reference  herein  to  a  merger,  transfer,  consolidation,  amalgamation,  assignment, sale, disposition or transfer, or similar term, shall be deemed to apply to a division of  or by a Person, or an allocation of assets to a series of a Person (or the unwinding of such a division  or  allocation),  as  if  it  were  a  merger,  transfer,  consolidation,  amalgamation,  assignment,  sale,  disposition or transfer, or similar term, as applicable, to, of or with a separate Person.  Any division  of a Person shall constitute a separate Person hereunder (and each division of any Person that is a  Subsidiary, joint venture or any other like term shall also constitute such a Person or entity).           1.03  Accounting Terms.         (a)   Generally.  All accounting terms not specifically or completely defined herein shall  be  construed  in  conformity  with,  and  all  financial  data  (including  financial  ratios  and  other  financial calculations) required to be submitted pursuant to this Agreement shall be prepared in  conformity with, GAAP applied on a consistent basis, as in effect from time to time, applied in a  manner  consistent  with  that  used  in  preparing  the  Audited  Financial  Statements,  except  as  otherwise  specifically  prescribed  herein.   Notwithstanding  the  foregoing,  for  purposes  of  determining compliance with any covenant (including the computation of any financial covenant)  contained herein, Indebtedness of the Borrower and its Subsidiaries shall be deemed to be carried  at 100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB  ASC 470-20 on financial liabilities shall be disregarded.         (b)   Changes  in  GAAP.   If  at  any  time  any  change  in  GAAP  would  affect  the  computation  of  any  financial  ratio  or  requirement  set  forth  in  any  Loan  Document,  and  the  Borrower or the Required Lenders shall so request, the Administrative Agent, the Lenders and the  Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original  intent thereof in light of such change in GAAP (subject to the approval of the Required Lenders  and the Borrower); provided that, until so amended, (i) such ratio or requirement shall continue to  be computed in accordance with GAAP prior to such change therein and (ii) the Borrower shall  provide to the Administrative Agent and the Lenders financial statements and other documents  required under this Agreement or as reasonably requested hereunder setting forth a reconciliation  between calculations  of  such ratio or requirement  made before  and after giving effect  to  such  change in GAAP.    

 

         (c)   Consolidation of Variable Interest Entities.  All references herein to consolidated  financial statements of the Borrower and its Subsidiaries or to the determination of any amount for  the Borrower and its Subsidiaries on a consolidated basis solely with respect to the Borrower’s  compliance with Section 7.11 shall, in each case, be deemed to include each variable interest entity  that the Borrower is required to consolidate pursuant to FASB ASC 810 as if such variable interest  entity were a Subsidiary as defined herein.         (d)   Operating  and  Capital  Lease  Treatment.  Notwithstanding  the  forgoing  or  any  provision herein to the contrary, any lease that was, or would have been, characterized as (i) an  operating  lease  in  accordance  with  GAAP  prior  to  Limited’s  adoption  of  FASB  ASC  842  (regardless of the date on which such lease has been entered into) shall not be a Capital Lease, and  any such lease shall be, for all purposes of this Agreement, treated as though it were reflected on  Limited’s consolidated financial statements in the same manner as an operating lease would have  been  reflected  prior  to  the  Limited’s  adoption  of  FASB  ASC  842  and  (ii)  a  Capital  Lease  in  accordance with GAAP prior to Limited’s adoption of FASB ASC 842 (regardless of the date on  which such lease has been entered into) shall not be an operating lease, and any such lease shall  be, for all purposes of this Agreement, treated as though it were reflected on Limited’s consolidated  financial statements in the same manner as a Capital Lease would have been reflected prior to the  Limited’s adoption of FASB ASC 842.         (e)   Financial Ratio or Test Compliance.  For purposes of determining the permissibility  of any action, change, transaction or event that by the terms of the Loan Documents requires a  calculation of any financial ratio or test (including Consolidated Total Assets), such financial ratio  or test shall be calculated at the time such action is taken, such change is made, such transaction  is consummated or such event occurs, as the case may be, and no Default or Event of Default shall  be deemed to have occurred solely as a result of a change in such financial ratio or test occurring  after the time such action is taken, such change is made, such transaction is consummated or such  event occurs, as the case may be.         1.04  Rounding.  Any  financial  ratios  required  to  be  maintained  pursuant  to  this  Agreement shall be calculated by dividing the appropriate component by the other component,  carrying the result to one place more than the number of places by which such ratio is expressed  herein and rounding the result up or down to the nearest number (with a rounding-up if there is no  nearest number).         1.05  Times of Day.  Unless otherwise specified, all references herein to times of day  shall be references to Central time (daylight or standard, as applicable).         1.06  Letter of Credit Amounts.  Unless otherwise specified herein, the amount of a  Letter of Credit at any time shall be deemed to be the Dollar Equivalent of the stated amount of  such Letter of Credit in effect at such time; provided, however, that with respect to any Letter of  Credit that, by its terms or the terms of any Issuer Document related thereto, provides for one or  more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall  be deemed to be the Dollar Equivalent of the maximum stated amount of such Letter of Credit  after giving effect to all such increases, whether or not such maximum stated amount is in effect  at such time.     

 

         1.07  Exchange Rates; Currency Equivalents; Increases.         (a)   The Administrative Agent or the L/C Issuer, as applicable, shall determine the Spot  Rates as of each Revaluation Date to be used for calculating Dollar Equivalent amounts of Credit  Extensions in respect of Letters of Credit and Outstanding Amounts denominated in Alternative  Currencies.  Such Spot Rates shall become effective as of such Revaluation Date and shall be the  Spot Rates employed in converting any amounts between the applicable currencies until the next  Revaluation Date to occur.  Except for purposes of financial statements delivered by the Borrower  hereunder or calculating financial covenants hereunder or except as otherwise provided herein, the  applicable amount of any Alternative Currency for purposes of the Loan Documents shall be such  Dollar Equivalent amount as so determined by the Administrative Agent or the L/C Issuer, as  applicable.         (b)   Wherever  in  this  Agreement  in  connection  with  the  issuance,  amendment  or  extension of a Letter of Credit, an amount, such as a required minimum or multiple amount, is  expressed in Dollars, but such Letter of Credit is denominated in an Alternative Currency, such  amount shall be the relevant Alternative Currency Equivalent of such Dollar amount (rounded to  the  nearest  unit  of  such  Alternative  Currency,  with  0.5  of  a  unit  being  rounded  upward),  as  determined by the Administrative Agent or the L/C Issuer, as the case may be.         (c)   The Administrative Agent does not warrant, nor accept responsibility, nor shall the  Administrative Agent have any liability with respect to the administration, submission or any other  matter related to the rates in the definition of “Eurodollar Rate” or with respect to any rate that is  an alternative or replacement for or successor to any of such rates (including, without limitation,  any LIBOR Successor Rate) or the effect of any of the foregoing, or of any LIBOR Successor Rate  Conforming Changes.         (d)   Without limiting the foregoing provisions of this Section 1.07, any calculations and  determinations under this Agreement of any amount in any currency other than Dollars shall be  deemed to refer to the Dollar Equivalent thereof, as the case may be.  For purposes of Article VII  and the calculation of compliance with any financial ratio or test for purposes of taking any action  hereunder, on any relevant date of determination, amounts denominated in currencies other than  Dollars shall be translated into Dollars at the applicable currency exchange rate used in preparing  the financial statements delivered pursuant to Sections 6.01(a) or 6.01(b), as applicable, for the  relevant fiscal period.         (e)   For purposes of determining compliance with any Dollar-denominated restriction  on the making of any Investment or the incurrence of Indebtedness, the Dollar Equivalent amount  of the Investment or the principal amount of Indebtedness denominated in a foreign currency shall  be calculated based on the relevant currency exchange rate in effect on the date such Investment  was made or Indebtedness was incurred, in the case of term debt, or first committed or first incurred  (whichever yields the lower Dollar Equivalent), in the case of revolving credit debt; provided that  if  such  Indebtedness  is  incurred  to  extend,  replace,  refund,  refinance,  renew  or  defease  other  Indebtedness  denominated  in  a  foreign  currency,  and  such  extension,  replacement,  refunding,  refinancing, renewal or defeasance would cause the applicable Dollar-denominated restriction to  be exceeded if  calculated at  the  relevant  currency exchange  rate in effect  on the date of such  extension, replacement, refunding, refinancing, renewal or defeasance, such Dollar-denominated    

 

   restriction shall be deemed not to have been exceeded so long as the principal amount of such  Indebtedness does not exceed the principal amount of such other Indebtedness being extended,  replaced,  refunded,  refinanced,  renewed  or  defeased,  plus  the  aggregate  amount  of  fees,  underwriting discounts, premiums (including tender premiums) and other reasonable costs and  expenses (including original issue discount) incurred in connection with such refinancing.         1.08  Additional Alternative Currencies.         (a)   The Borrower may from time to time request that Letters of Credit be issued in a  currency other than those specifically listed in the definition of “Alternative Currency;” provided  that such requested currency is a lawful currency (other than Dollars) that is readily available and  freely transferable and convertible into Dollars and such request is approved by the Administrative  Agent and the L/C Issuer.         (b)   Any  such  request  shall  be  made  to  the  Administrative  Agent  not  later  than  11:00 a.m., 20 Business Days prior to the date of the desired Credit Extension (or such other time  or date as may be agreed by the Administrative Agent and the L/C Issuer in their sole discretion).   The Administrative Agent shall promptly notify the L/C Issuer thereof.  The L/C Issuer shall notify  the Administrative Agent, not later than 11:00 a.m., ten Business Days after receipt of such request  whether it consents, in its sole discretion, to the issuance of Letters of Credit in such requested  currency.         (c)   Any failure by the L/C Issuer to respond to such request within the time period  specified in the preceding sentence shall be deemed to be a refusal by the L/C Issuer to permit  Letters of Credit to be issued in such requested currency.  If the Administrative Agent and the L/C  Issuer consent to the issuance of Letters of Credit in such requested currency, the Administrative  Agent shall so notify the Borrower and such currency shall thereupon be deemed for all purposes  to be an Alternative Currency hereunder for purposes of any Letter of Credit issuances.  If the  Administrative Agent shall fail to obtain consent to any request for an additional currency under  this Section 1.08, the Administrative Agent shall promptly so notify the Borrower.         1.09  Calculation  of  Consolidated  Total  Assets.  Any  reference  to  a  percentage  of  Consolidated Total Assets, unless provided otherwise, shall be to the Consolidated Total Assets  from  and  after  the  most  recent  date  that  financial  statements  have  been  delivered  pursuant  to  Sections 6.01(a) and 6.01(b), as applicable.          1.10  Change of Currency.         (a)   Each obligation of the Borrower to make a payment denominated in the national  currency  unit  of  any  member  state  of  the  European  Union  that  adopts  the  Euro  as  its  lawful  currency after the date hereof shall be redenominated into Euro at the time of such adoption.  If,  in relation to the currency of any such member state, the basis of accrual of interest expressed in  this  Agreement  in  respect  of  that  currency  shall  be  inconsistent  with  usual  and  customary  convention or practice in the London interbank market for the basis of accrual of interest in respect  of the Euro, such expressed basis shall be replaced by such convention or practice with effect from  the date on which such member state adopts the Euro as its lawful currency.     

 

         (b)   Each provision of this Agreement shall be subject to such reasonable changes of  construction as the Administrative Agent may from time to time specify to be appropriate to reflect  the adoption of the Euro by any member state of the European Union and any relevant customary  market conventions or practices relating to the Euro.         (c)   Each provision of this Agreement also shall be subject to such reasonable changes  of construction as the Administrative Agent may from time to time specify to be appropriate to  reflect a change in currency of any other country and any relevant customary market conventions  or practices relating to the change in currency.                                    ARTICLE II.                 THE COMMITMENTS AND CREDIT EXTENSIONS         2.01  Revolving Loans.  Subject to the terms and conditions set forth herein, each Lender  severally agrees to make loans in Dollars (each such loan, a “Revolving Loan”) to the Borrower  from time to time, on any Business Day during the Availability Period, in an aggregate amount  not  to  exceed  at  any  time  outstanding  the  amount  of  such  Lender’s  Commitment; provided,  however, that after giving effect to any Revolving Borrowing, (i) the Total Outstandings shall not  exceed the Aggregate Commitments, and (ii) the Revolving Credit Exposure of any Lender shall  not exceed such Lender’s Commitment.  Within the limits of each Lender’s Commitment, and  subject to the other terms and conditions hereof, the Borrower may borrow under this Section 2.01,  prepay under Section 2.05, and reborrow under this Section 2.01.  Revolving Loans may be Base  Rate Loans or Eurodollar Rate Loans, as further provided herein.         2.02  Borrowings, Conversions and Continuations of Revolving Loans.         (a)   Each Revolving Borrowing, each conversion of Revolving Loans from one Type  to the other, and each continuation of Eurodollar Rate Loans shall be made upon the Borrower’s  irrevocable notice to the Administrative Agent, which may be given by:  (i) telephone or (ii) a  Revolving Loan Notice; provided that any telephonic notice must be confirmed immediately by  delivery to the Administrative Agent of a Revolving Loan Notice.  Each Revolving Loan Notice  must be received by the Administrative Agent not later than 11:00 a.m. (A) three Business Days  prior to the requested date of any Borrowing of, conversion to or continuation of Eurodollar Rate  Loans or of any conversion of Eurodollar Rate Loans to Base Rate Loans, and (B) on the requested  date of any Borrowing of Base Rate Loans.  Each Borrowing of, conversion to or continuation of  Eurodollar  Rate  Loans  shall  be  in  a  principal  amount  of  $5,000,000  or  a  whole  multiple  of  $1,000,000 in excess thereof.  Except as provided in Sections 2.03(c) and 2.04(c), each Borrowing  of or conversion to Base Rate Loans shall be in a principal amount of $500,000 or a whole multiple  of $100,000 in excess thereof.  Each Revolving Loan Notice shall specify (i) whether the Borrower  is requesting a Revolving Borrowing, a conversion of Revolving Loans from one Type to the other,  or a continuation of Eurodollar Rate Loans, (ii) the requested date of the Borrowing, conversion  or continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of  Revolving Loans to be borrowed, converted or continued, (iv) the Type of Revolving Loans to be  borrowed or to which existing Revolving Loans are to be converted, and (v) if applicable, the  duration of the Interest Period with respect thereto.  If the Borrower fails to specify a Type of  Revolving  Loan  in  a  Revolving  Loan  Notice  or  if  the  Borrower  fails  to  give  a  timely  notice  requesting a conversion or continuation, then the applicable Revolving Loans shall be made as, or    

 

   converted  to,  Base  Rate  Loans.   Any  such  automatic  conversion  to  Base  Rate  Loans  shall  be  effective  as of  the  last  day  of  the  Interest  Period  then  in  effect  with  respect  to  the  applicable  Eurodollar Rate Loans.  If the Borrower requests a Borrowing of, conversion to, or continuation  of  Eurodollar  Rate  Loans  in  any  such  Revolving  Loan  Notice,  but  fails  to  specify  an  Interest  Period, the Borrower will be deemed to have specified an Interest Period of one month.         (b)   Following  receipt  of  a  Revolving  Loan  Notice,  the  Administrative  Agent  shall  promptly  notify  each  Lender  of  the  amount  of  its  Applicable  Percentage  of the  applicable  Revolving  Loans,  and  if  no  timely  notice  of  a  conversion  or  continuation  is  provided  by  the  Borrower,  the  Administrative  Agent  shall  notify  each  Lender  of  the  details  of  any  automatic  conversion to Base Rate Loans described in the preceding subsection.  In the case of a Revolving  Borrowing,  each  Lender  shall  make  the  amount  of  its  Revolving  Loan  available  to  the  Administrative Agent in immediately available funds at the Administrative Agent’s Office not  later than 1:00 p.m. on the Business Day specified in the applicable Revolving Loan Notice.  Upon  satisfaction of the applicable conditions set forth in Section 4.02 (and, if such Borrowing is the  initial Credit Extension, Section 4.01), the Administrative Agent shall make all funds so received  available  to  the  Borrower  in  like  funds  as  received  by  the  Administrative  Agent  either  by  (i) crediting the account of the Borrower on the books of Bank of America with the amount of such  funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to  (and reasonably acceptable to) the Administrative Agent by the Borrower; provided, however, that  if, on the date the Revolving Loan Notice with respect to such Borrowing is given by the Borrower,  there are L/C Borrowings outstanding, then the proceeds of such Borrowing, first, shall be applied  to the payment in full of any such L/C Borrowings, and second, shall be made available to the  Borrower as provided above.         (c)   Except as otherwise provided herein, a Eurodollar Rate Loan may be continued or  converted only on the last day of an Interest Period for such Eurodollar Rate Loan.  During the  existence of a Default, no Loans may be requested as, converted to or continued as Eurodollar Rate  Loans without the consent of the Required Lenders.         (d)   The Administrative Agent shall promptly notify the Borrower and the Lenders of  the interest rate applicable to any Interest Period for Eurodollar Rate Loans upon determination of  such interest rate.  At any time that Base Rate Loans are outstanding, the Administrative Agent  shall notify the Borrower and the Lenders of any change in Bank of America’s prime rate used in  determining the Base Rate promptly following the public announcement of such change.         (e)   After  giving  effect  to  all  Revolving  Borrowings, all  conversions  of  Revolving  Loans from one Type to the other, and all continuations of Revolving Loans as the same Type,  there shall not be more than ten Interest Periods in effect with respect to Revolving Loans.         (f)   Each determination of an interest rate by the Administrative Agent pursuant to any  provision of this Agreement shall be conclusive and binding on the Borrower and the Lenders in  the absence of manifest error.         (g)   Notwithstanding  anything  to  the  contrary  in  this  Agreement,  any  Lender  may  exchange, continue or rollover all or a portion of its Loans in connection with any refinancing,  extension,  loan  modification  or  similar  transaction  permitted  by  the  terms  of  this  Agreement,    

 

   pursuant to a cashless settlement mechanism approved by the Borrower, the Administrative Agent  and such Lender.         2.03  Letters of Credit.         (a)   The Letter of Credit Commitment.               (i)   Subject  to  the  terms  and  conditions  set  forth  herein,  (A) the  L/C  Issuer        agrees,  in  reliance  upon  the  agreements  of  the  Lenders  set  forth  in  this Section 2.03,        (1) from time to time on any Business Day during the period from the Closing Date until        the Letter of Credit Expiration Date, to issue Letters of Credit denominated in Dollars or        in  one  or  more  Alternative  Currencies  for  the  account  of  the  Borrower  or  any  other        Subsidiary, and to amend or extend Letters of Credit previously issued by it, in accordance        with  subsection (b)  below,  and  (2) to  honor  drawings  under  the  Letters  of  Credit;  and        (B) the Lenders severally agree to participate in Letters of Credit issued for the account of        the Borrower or any other Subsidiary and any drawings thereunder; provided that after        giving effect to any L/C Credit Extension with respect to any Letter of Credit, (w) the Total        Outstandings  shall  not  exceed  the  Aggregate  Commitments,  (x) the  Revolving  Credit        Exposure  of  any  Lender  shall  not  exceed  such  Lender’s  Commitment, and (y) the        Outstanding Amount of the L/C Obligations shall not exceed the Letter of Credit Sublimit.         Each request by the Borrower for the issuance or amendment of a Letter of Credit shall be        deemed to be a representation by the Borrower that the L/C Credit Extension so requested        complies with the conditions set forth in the proviso to the preceding sentence.  Within the        foregoing limits, and subject to the terms and conditions hereof, the Borrower’s ability to        obtain Letters of Credit shall be fully revolving, and accordingly the Borrower may, during        the foregoing period, obtain Letters of Credit to replace Letters of Credit that have expired        or that have been drawn upon and reimbursed.  All  Existing Letters of Credit shall be        deemed to have been issued pursuant hereto, and from and after the Closing Date shall be        subject to and governed by the terms and conditions hereof.               (ii)  The L/C Issuer shall not issue any Letter of Credit, if:                     (A)   subject  to Section 2.03(b)(iii),  the  expiry  date  of  such  requested              Letter of Credit would occur more than twelve months after the date of issuance or              last extension, unless the Required Lenders have approved such expiry date; or                     (B)   the expiry date of such requested Letter of Credit would occur after              the Letter of Credit Expiration Date, unless all the Lenders have approved such              expiry date.               (iii) The L/C Issuer shall not be under any obligation to issue any Letter of Credit        if:                     (A)   any order, judgment or decree of any Governmental Authority or              arbitrator shall by its terms purport to enjoin or restrain the L/C Issuer from issuing              such Letter of Credit, or any Law applicable to the L/C Issuer or any request or              directive  (whether  or  not  having  the  force  of  law)  from  any  Governmental              Authority with jurisdiction over the L/C Issuer shall prohibit, or request that the    

 

                      L/C Issuer refrain from, the issuance of letters of credit generally or such Letter of        Credit in particular or shall impose upon the L/C Issuer with respect to such Letter        of Credit any restriction, reserve or capital requirement (for which the L/C Issuer is        not otherwise compensated hereunder) not in effect on the Closing Date, or shall        impose upon the L/C Issuer any unreimbursed loss, cost or expense which was not        applicable  on  the  Closing  Date  and  which  the  L/C  Issuer  in  good  faith  deems        material to it;               (B)   the  issuance  of  such  Letter  of  Credit  would  violate  one  or  more        policies of the L/C Issuer which generally apply to letters of credit issued by the        L/C Issuer;               (C)   except as otherwise agreed by the Administrative Agent and the L/C        Issuer, such Letter of Credit is in an initial face amount less than $50,000, in the        case of a commercial Letter of Credit, or $50,000, in the case of a standby Letter of        Credit;               (D)   such Letter of Credit is to be denominated in a currency other than        Dollars or an Alternative Currency;               (E)   the L/C Issuer does not as of the issuance date of such requested        Letter of Credit issue Letters of Credit in the requested currency; or               (F)   any Lender is at that time a Defaulting Lender, unless the L/C Issuer        has  entered  into  arrangements,  including  the  delivery  of  Cash  Collateral,        satisfactory  to  the  L/C  Issuer  (in  its  sole  discretion)  with  the Borrower or  such        Defaulting Lender to  eliminate  the  L/C  Issuer’s  actual  or  potential  Fronting        Exposure (after giving effect to Section 2.16(a)(iv)) with respect to the Defaulting        Lender arising from either the Letter of Credit then proposed to be issued or that        Letter of Credit and all other L/C Obligations as to which the L/C Issuer has actual        or potential Fronting Exposure, as it may elect in its sole discretion.         (iv)  The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would  not be permitted at such time to issue such Letter of Credit in its amended form under the  terms hereof.         (v)   The L/C Issuer shall be under no obligation to amend any Letter of Credit  if (A) the L/C Issuer would have no obligation at such time to issue such Letter of Credit  in its amended form under the terms hereof, or (B) the beneficiary of such Letter of Credit  does not accept the proposed amendment to such Letter of Credit.         (vi)  The L/C Issuer shall act on behalf of the Lenders with respect to any Letters  of Credit issued by it and the documents associated therewith, and the L/C Issuer shall have  all of the benefits and immunities (A) provided to the Administrative Agent in Article IX  with respect to any acts taken or omissions suffered by the L/C Issuer in connection with  Letters of Credit issued by it or proposed to be issued by it and Issuer Documents pertaining  to such Letters of Credit as fully as if the term “Administrative Agent” as used in Article IX                  

 

         included the L/C Issuer  with  respect  to  such acts  or omissions, and (B) as  additionally        provided herein with respect to the L/C Issuer.         (b)   Procedures  for  Issuance  and  Amendment  of  Letters  of  Credit;  Auto-Extension  Letters of Credit.               (i)   Each Letter of Credit shall be issued or amended, as the case may be, upon        the request of the Borrower delivered to the L/C Issuer (with a copy to the Administrative        Agent) in the form of a Letter of Credit Application, appropriately completed and signed        by a Responsible Officer of the Borrower.  Such Letter of Credit Application may be sent        by facsimile, by United States mail, by overnight courier, by electronic transmission using        the  system  provided  by  the  L/C  Issuer,  by  personal  delivery  or  by  any  other  means        acceptable to the L/C Issuer.  Such Letter of Credit Application must be received by the        L/C Issuer and the Administrative Agent not later than 11:00 a.m. at least two Business        Days (or such later date and time as the Administrative Agent and the L/C Issuer may agree        in a particular instance in their sole discretion) prior to the proposed issuance date or date        of amendment, as the case may be.  In the case of a request for an initial issuance of a Letter        of Credit, such Letter of Credit Application shall specify in form and detail satisfactory to        the L/C Issuer: (A) the proposed issuance date of the requested Letter of Credit (which        shall be a Business Day); (B) the amount and currency thereof; (C) the expiry date thereof;        (D) the name and address of the beneficiary thereof; (E) the documents to be presented by        such beneficiary in case of any drawing thereunder; (F) the full text of any certificate to be        presented  by  such  beneficiary  in  case  of  any  drawing  thereunder;  (G) the  purpose  and        nature of the requested Letter of Credit; and (H) such other matters as the L/C Issuer may        require.  In the case of a request for an amendment of any outstanding Letter of Credit,        such Letter of Credit Application shall specify in form and detail satisfactory to the L/C        Issuer (A) the Letter of Credit to be amended; (B) the proposed date of amendment thereof        (which shall be a Business Day); (C) the nature of the proposed amendment; and (D) such        other matters as the L/C Issuer may require.  Additionally, the Borrower shall furnish to        the  L/C  Issuer  and  the  Administrative  Agent  such  other  documents  and  information        pertaining to such requested Letter of Credit issuance or amendment, including any Issuer        Documents, as the L/C Issuer or the Administrative Agent may reasonably require.               (ii)  Promptly after receipt of any Letter of Credit Application, the L/C Issuer        will  confirm  with  the  Administrative  Agent  (by  telephone  or  in  writing)  that  the        Administrative Agent has received a copy of such Letter of Credit Application from one of        the Borrower and, if not, the L/C Issuer will provide the Administrative Agent with a copy        thereof.   Unless  the  L/C  Issuer  has  received written  notice  from  any  Lender,  the        Administrative Agent or any Loan Party, at least one Business Day prior to the requested        date  of  issuance  or  amendment  of  the  applicable  Letter  of  Credit,  that  one  or  more        applicable conditions contained in Article IV shall not then be satisfied, then, subject to the        terms and conditions hereof, the L/C Issuer shall, on the requested date, issue a Letter of        Credit for the account of the Borrower or any other applicable Subsidiary or enter into the        applicable amendment, as the case may be, in each case in accordance with the L/C Issuer’s        usual and customary business practices.  Immediately upon the issuance of each Letter of        Credit, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees        to, purchase from the L/C Issuer a risk participation in such Letter of Credit in an amount    

 

                equal to the product of such Lender’s Applicable Percentage times the amount of such  Letter of Credit.         (iii) If the Borrower so requests in any applicable Letter of Credit Application,  the L/C Issuer may, in its sole and absolute discretion, agree to issue a Letter of Credit that  has automatic extension provisions (each, an “Auto-Extension Letter of Credit”); provided  that any such Auto-Extension Letter of Credit must (A) be a standby letter of credit and  (B) permit the L/C Issuer to prevent any such extension at least once in each twelve-month  period (commencing with the date of issuance of such Letter of Credit) by giving prior  notice to the beneficiary thereof not later than a day (the “Non-Extension Notice Date”) in  each such twelve-month period to be agreed upon at the time such Letter of Credit is issued.   Unless otherwise directed by the L/C Issuer, the Borrower shall not be required to make a  specific request to the L/C Issuer for any such extension.  Once an Auto-Extension Letter  of Credit has been issued, the Lenders shall be deemed to have authorized (but may not  require) the L/C Issuer to permit the extension of such Letter of Credit at any time to an  expiry date not later than the Letter of Credit Expiration Date; provided, however, that the  L/C Issuer shall not permit any such extension if (A) the L/C Issuer has determined that it  would not be permitted, or would have no obligation, at such time to issue such Letter of  Credit in its revised form (as extended) under the terms hereof (by reason of the provisions  of clause (ii) or (iii) of Section 2.03(a) or otherwise), or (B) it has received notice (which  may be by telephone or in writing) on or before the day that is seven Business Days before  the  Non-Extension  Notice  Date  (1) from  the  Administrative  Agent  that  the  Required  Lenders have elected not to permit such extension or (2) from the Administrative Agent,  any Lender or the Borrower that one or more of the applicable conditions  specified in  Section 4.02 is not then satisfied, and in each such case directing the L/C Issuer not to  permit such extension.         (iv)  If the Borrower so requests in any applicable Letter of Credit Application,  the L/C Issuer may, in its sole and absolute discretion, agree to issue a Letter of Credit that  permits the automatic reinstatement of all or a portion of the stated amount thereof after  any  drawing  thereunder  (each,  an  “Auto-Reinstatement  Letter  of  Credit”).   Unless  otherwise directed by the L/C Issuer, the Borrower shall not be required to make a specific  request to the L/C Issuer to permit such reinstatement.  Once an Auto-Reinstatement Letter  of Credit has been issued, except as provided in the following sentence, the Lenders shall  be deemed to have authorized (but may not require) the L/C Issuer to reinstate all or a  portion of the stated amount thereof in accordance with the provisions of such Letter of  Credit.   Notwithstanding  the  foregoing,  if  such  Auto-Reinstatement  Letter  of  Credit  permits the L/C Issuer to decline to reinstate all or any portion of the stated amount thereof  after a drawing thereunder by giving notice of such non-reinstatement within a specified  number of days after such drawing (the “Non-Reinstatement Deadline”), the L/C Issuer  shall not permit such reinstatement if it has received a notice (which may be by telephone  or  in  writing)  on  or  before  the  day  that  is  seven  Business  Days  before  the  Non- Reinstatement Deadline (A) from the Administrative Agent that the Required Lenders have  elected not to permit such reinstatement or (B) from the Administrative Agent, any Lender  or the Borrower that one or more of the applicable conditions specified in Section 4.02 is  not then satisfied (treating such reinstatement as an L/C Credit Extension for purposes of  this clause) and, in each case, directing the L/C Issuer not to permit such reinstatement.                 

 

                      (v)   Promptly after its delivery of any Letter of Credit or any amendment to a  Letter of Credit to an advising bank with respect thereto or to the beneficiary thereof, the  L/C  Issuer  will  also  deliver  to  the  Borrower  and  the  Administrative  Agent  a  true  and  complete copy of such Letter of Credit or amendment.   (c)   Drawings and Reimbursements; Funding of Participations.         (i)   Upon receipt from the beneficiary of any Letter of Credit of any notice of a  drawing  under  such  Letter  of  Credit,  the  L/C  Issuer  shall  notify  the  Borrower  and  the  Administrative  Agent  thereof.   In  the  case  of  a  Letter  of  Credit  denominated  in  an  Alternative  Currency,  the  Borrower  shall  reimburse the  L/C  Issuer  in  such  Alternative  Currency, unless (A) the L/C Issuer (at its option) shall have specified in such notice that  it will require reimbursement in Dollars, or (B) in the absence of any such requirement for  reimbursement  in  Dollars,  the  Borrower  shall  have  notified  the  L/C  Issuer  promptly  following receipt of the notice of drawing that the Borrower will reimburse the L/C Issuer  in Dollars.  In the case of any such reimbursement in Dollars of a drawing under a Letter  of Credit denominated in an Alternative Currency, the L/C Issuer shall notify the Borrower  of  the  Dollar  Equivalent  of  the  amount  of  the  drawing  promptly  following  the  determination thereof.  Not later than 11:00 a.m. on the date of any payment by the L/C  Issuer under a Letter of Credit to be reimbursed in Dollars, or the Applicable Time on the  date of any payment by the L/C Issuer under a Letter of Credit to be reimbursed in an  Alternative Currency (each such date, an “Honor Date”), the Borrower shall reimburse the  L/C Issuer through the Administrative Agent in an amount equal to the amount of such  drawing and in the applicable currency.  In the event that (A) a drawing denominated in an  Alternative Currency is to be reimbursed in Dollars pursuant to the second sentence in this  Section 2.03(c)(i) and (B) the Dollar amount paid by the Borrower, whether on or after the  Honor Date, shall not be adequate on the date of that payment to purchase in accordance  with normal banking procedures a sum denominated in the Alternative Currency equal to  the drawing, the Borrower agrees, as a separate and independent obligation, to indemnify  the  L/C  Issuer  for  the  loss  resulting  from  its  inability  on  that  date  to  purchase  the  Alternative  Currency  in  the  full  amount  of  the  drawing.   If  the  Borrower  fails to  so  reimburse the L/C Issuer by such time, the Administrative Agent shall promptly notify each  Lender of the Honor Date, the amount of the unreimbursed drawing (expressed in Dollars  in the amount of the Dollar Equivalent thereof in the case of a Letter of Credit denominated  in  an  Alternative  Currency)  (the  “Unreimbursed  Amount”),  and  the  amount  of  such  Lender’s Applicable Percentage thereof.  In such event, the Borrower shall be deemed to  have requested a Revolving Borrowing of Base Rate Loans to be disbursed on the Honor  Date in an amount equal to the Unreimbursed Amount, without regard to the minimum and  multiples specified in Section 2.02 for the principal amount of Base Rate Loans, but subject  to the amount of the unutilized portion of the Aggregate Commitments and the conditions  set forth in Section 4.02 (other than the delivery of a Revolving Loan Notice).  Any notice  given by the L/C Issuer or the Administrative Agent pursuant to this Section 2.03(c)(i) may  be given by telephone if immediately confirmed in writing; provided that the lack of such  an immediate confirmation shall not affect the conclusiveness or binding effect of such  notice.                  

 

                      (ii)  Each  Lender  shall  upon  any  notice  pursuant  to Section 2.03(c)(i) make  funds available and the Administrative Agent may apply Cash Collateral provided for this  purpose for the account of the L/C Issuer, in Dollars, at the Administrative Agent’s Office  for Dollar-denominated payments in an amount equal to its Applicable Percentage of the  Unreimbursed  Amount  not  later than  1:00 p.m.  on  the  Business  Day  specified  in  such  notice  by  the  Administrative  Agent,  whereupon,  subject  to  the  provisions  of  Section 2.03(c)(iii), each Lender that so makes funds available shall be deemed to have  made a Base Rate Loan to the Borrower in such amount.  The Administrative Agent shall  remit the funds so received to the L/C Issuer in Dollars.         (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a  Revolving Borrowing of Base Rate Loans because the conditions set forth in Section 4.02  cannot be satisfied or for any other reason, the Borrower shall be deemed to have incurred  from the L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is  not so refinanced, which L/C Borrowing shall be due and payable on demand (together  with interest) and shall bear interest at the Default Rate.  In such event, each Lender’s  payment  to  the  Administrative  Agent  for  the  account  of  the  L/C  Issuer  pursuant  to  Section 2.03(c)(ii) shall  be  deemed  payment  in  respect  of  its  participation  in  such  L/C  Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its  participation obligation under this Section 2.03.         (iv)  Until each Lender funds its Revolving Loan or L/C Advance pursuant to  this Section 2.03(c) to reimburse the L/C Issuer for any amount drawn under any Letter of  Credit, interest in respect of such Lender’s Applicable Percentage of such amount shall be  solely for the account of the L/C Issuer.         (v)   Each Lender’s obligation to make Revolving Loans or L/C Advances to  reimburse the L/C Issuer for amounts drawn under Letters of Credit, as contemplated by  this Section 2.03(c), shall be absolute and unconditional and shall not be affected by any  circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right  which such Lender may have against the L/C Issuer, the Borrower or any other Person for  any reason whatsoever; (B) the occurrence or continuance of a Default, or (C) any other  occurrence, event or condition, whether or not similar to any of the foregoing; provided,  however,  that  each  Lender’s  obligation  to  make  Revolving  Loans  pursuant  to  this  Section 2.03(c) is subject to the conditions set forth in Section 4.02 (other than delivery by  the Borrower of a Revolving Loan Notice).  No such making of an L/C Advance shall  relieve or otherwise impair the obligation of the Borrower to reimburse the L/C Issuer for  the amount of any payment made by the L/C Issuer under any Letter of Credit, together  with interest as provided herein.         (vi)  If any Lender fails to make available to the Administrative Agent for the  account of the L/C Issuer any amount required to be paid by such Lender pursuant to the  foregoing provisions of this Section 2.03(c) by the time specified in Section 2.03(c)(ii),  then,  without  limiting  the  other  provisions  of  this  Agreement,  the  L/C  Issuer  shall  be  entitled  to  recover  from  such  Lender  (acting  through  the  Administrative  Agent),  on  demand, such amount with interest thereon for the period from the date such payment is  required to the date on which such payment is immediately available to the L/C Issuer at a                 

 

         rate per annum equal to the applicable Overnight Rate from time to time in effect, plus any        administrative,  processing  or  similar  fees  customarily  charged  by  the L/C  Issuer  in        connection with the foregoing.  If such Lender pays such amount (with interest and fees as        aforesaid), the amount so paid shall constitute such Lender’s Revolving Loan included in        the  relevant  Revolving  Borrowing  or  L/C  Advance  in  respect  of the  relevant  L/C        Borrowing, as the case may be.  A certificate of the L/C Issuer submitted to any Lender        (through  the  Administrative  Agent)  with  respect  to  any  amounts  owing  under  this        clause (vi) shall be conclusive absent manifest error.         (d)   Repayment of Participations.               (i)   At any time after the L/C Issuer has made a payment under any Letter of        Credit and has received from any Lender such Lender’s L/C Advance in respect of such        payment in accordance with Section 2.03(c), if the Administrative Agent receives for the        account of the L/C Issuer any payment in respect of the related Unreimbursed Amount or        interest thereon (whether directly from the Borrower or otherwise, including proceeds of        Cash Collateral applied thereto by the Administrative Agent), the Administrative Agent        will distribute to such Lender its Applicable Percentage thereof in Dollars (appropriately        adjusted, in the case of interest payments, to reflect the period of time during which such        Lender’s  L/C  Advance  was  outstanding)  in  the  same  funds  as  those  received  by  the        Administrative Agent.               (ii)  If any payment received by the Administrative Agent for the account of the        L/C  Issuer  pursuant  to Section 2.03(c)(i) is  required  to  be  returned  under  any  of  the        circumstances  described in Section 10.05 (including  pursuant  to  any settlement  entered        into by the L/C Issuer in its discretion), each Lender shall pay to the Administrative Agent        for  the  account  of  the  L/C  Issuer  its  Applicable  Percentage  thereof  on  demand  of  the        Administrative Agent, plus interest thereon from the date of such demand to the date such        amount is returned by such Lender, at a rate per annum equal to the applicable Overnight        Rate from time to time in effect.  The obligations of the Lenders under this clause shall        survive the payment in full of the Obligations and the termination of this Agreement.         (e)   Obligations Absolute.  The obligation of the Borrower to reimburse the L/C Issuer  for each drawing under each Letter of Credit and to repay each L/C Borrowing shall be absolute,  unconditional  and  irrevocable,  and  shall  be  paid  strictly  in  accordance  with  the  terms  of  this  Agreement under all circumstances, including the following:               (i)   any  lack  of  validity  or  enforceability  of  such  Letter  of  Credit,  this        Agreement, or any other Loan Document;               (ii)  the existence of any claim, counterclaim, setoff, defense or other right that        any Loan Party or any Subsidiary may have at any time against any beneficiary or any        transferee of such Letter of Credit (or any Person for whom any such beneficiary or any        such transferee may be acting), the L/C Issuer or any other Person, whether in connection        with this Agreement, the transactions contemplated hereby or by such Letter of Credit or        any agreement or instrument relating thereto, or any unrelated transaction;     

 

               (iii) any  draft,  demand,  certificate  or  other  document  presented  under  such        Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or        any statement therein being untrue or inaccurate in any respect; or any loss or delay in the        transmission or otherwise of any document required in order to make a drawing under such        Letter of Credit;               (iv)  waiver by the L/C Issuer of any requirement that exists for the L/C Issuer’s        protection and not the protection of the Borrower or any waiver by the L/C Issuer, to the        extent such waiver does not in fact materially prejudice the Borrower;               (v)   honor of a demand for payment presented electronically even if such Letter        of Credit requires that demand be in the form of a draft;               (vi)  any payment made by the L/C Issuer in respect of an otherwise complying        item  presented  after  the  date  specified  as  the  expiration  date  of,  or  the  date  by  which        documents must be received under, such Letter of Credit if presentation after such date is        authorized by the UCC, the ISP or the UCP, as applicable;               (vii) any  payment  by  the  L/C  Issuer  under  such  Letter  of  Credit  against        presentation of a draft or certificate that does not strictly comply with the terms of such        Letter of Credit; or any payment made by the L/C Issuer under such Letter of Credit to any        Person  purporting  to  be  a  trustee  in  bankruptcy,  debtor-in-possession,  assignee  for  the        benefit  of  creditors,  liquidator,  receiver  or  other  representative  of  or  successor  to  any        beneficiary or any transferee of such Letter of Credit, including any arising in connection        with any proceeding under any Debtor Relief Law;               (viii) any adverse change in the relevant exchange rates or in the availability of        the relevant  Alternative  Currency to  the Borrower or any Subsidiary or in  the relevant        currency markets generally; or               (ix)  any other circumstance or happening whatsoever, whether or not similar to        any of the foregoing, including any other circumstance that might otherwise constitute a        defense available to, or a discharge of, any Loan Party or any Subsidiary.         The Borrower shall promptly examine a copy of each Letter of Credit and each amendment  thereto that is delivered to it and, in the event of any claim of noncompliance with the Borrower’s  instructions or other irregularity, the Borrower will immediately notify the L/C Issuer.  Except as  provided in Section 2.03(f), the Borrower shall be conclusively deemed to have waived any such  claim against the L/C Issuer and its correspondents unless such notice is given as aforesaid.           (f)   Role  of  L/C  Issuer.   Each  Lender  and the  Borrower  agree  that,  in  paying  any  drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any  document (other than any sight draft, certificates and documents expressly required by the Letter  of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the  authority of the Person executing or delivering any such document.  None of the L/C Issuer, the  Administrative Agent, any of their respective Related Parties nor any correspondent, participant  or assignee of the L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in  connection herewith at the request or with the approval of the Lenders or the Required Lenders, as    

 

   applicable;  (ii) any  action  taken  or  omitted  in  the  absence  of  gross  negligence  or  willful  misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document or  instrument related to any Letter of Credit or Issuer Document.  The Borrower hereby assumes all  risks of the acts or omissions of any beneficiary or transferee with respect to its use of any Letter  of Credit; provided, however, that this assumption is not intended to, and shall not, preclude the  Borrower’s  pursuing  such  rights  and  remedies  as  they  may  have  against the  beneficiary  or  transferee at law or under any other agreement.  None of the L/C Issuer, the Administrative Agent,  any of their respective Related Parties nor any correspondent, participant or assignee of the L/C  Issuer, shall be liable or responsible for any of the matters described in clauses (i) through (ix) of  Section 2.03(e) or the failure of the L/C Issuer, any of its Related Parties, or any correspondent,  participant or assignee of the L/C Issuer, to exercise care when determining whether drafts and  other  documents  presented  under  a  Letter  of  Credit  comply  with  the  terms  thereof; provided,  however,  that  anything  in  such  clauses or  such  failure to  the  contrary  notwithstanding,  the  Borrower  may  have  a  claim  against  the  L/C  Issuer,  and  the  L/C  Issuer may  be  liable  to  the  Borrower,  to  the  extent,  but  only  to  the  extent,  of  any  direct,  as  opposed  to  consequential  or  exemplary, damages suffered by the Borrower which the Borrower proves were caused by the L/C  Issuer’s willful misconduct or gross negligence or the L/C Issuer’s willful failure to pay under any  Letter of Credit after the presentation to it by the beneficiary of a sight draft and certificate(s)  strictly complying with the terms and conditions of a Letter of Credit.  In furtherance and not in  limitation of the foregoing, the L/C Issuer may accept documents that appear on their face to be in  order, without responsibility for further investigation, regardless of any notice or information to  the contrary, and the L/C Issuer shall not be responsible for the validity or sufficiency of any  instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the  rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid  or  ineffective for  any  reason.   The  L/C  Issuer  may  send  a  Letter  of  Credit  or  conduct  any  communication  to  or  from  the  beneficiary  via  the  Society  for  Worldwide  Interbank  Financial  Telecommunication  (“SWIFT”)  message  or  overnight  courier,  or  any  other  commercially  reasonable means of communicating with a beneficiary.         (g)   Applicability of ISP and UCP; Limitation of Liability.  Unless otherwise expressly  agreed by the L/C Issuer and the Borrower when a Letter of Credit is issued (including any such  agreement applicable to an Existing Letter of Credit), (i) the rules of the ISP shall apply to each  standby Letter of Credit, and (ii) the rules of the UCP shall apply to each commercial Letter of  Credit.  Notwithstanding the foregoing, the L/C Issuer shall not be responsible to the Borrower  for, and the L/C Issuer’s rights and remedies against the Borrower shall not be impaired by, any  action or inaction of the L/C Issuer required or permitted under any Law or practice that is required  or permitted to be applied to any Letter of Credit or this Agreement, including the Law or any  order of a jurisdiction where the L/C Issuer or the beneficiary is located, the practice stated in the  ISP  or  UCP,  as  applicable,  or  in  the  decisions,  opinions,  practice  statements,  or  official  commentary of the ICC Banking Commission, the Bankers Association for Finance and Trade -  International  Financial  Services  Association  (BAFT-IFSA),  or  the  Institute  of  International  Banking Law & Practice, whether or not any Letter of Credit chooses such Law or practice.         (h)   Letter of Credit Fees.  The Borrower shall pay to the Administrative Agent for the  account of each Lender in accordance, subject to adjustment as specified in Section 2.16, with its  Applicable Percentage, in Dollars, a Letter of Credit fee (the “Letter of Credit Fee”) for each Letter  of Credit equal to the Applicable Rate times the Dollar Equivalent of the daily maximum amount    

 

   available to be drawn under such Letter of Credit.  For purposes of computing the daily amount  available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be  determined in  accordance with Section 1.06.  Letter of Credit Fees shall be (i) computed on a  quarterly basis in arrears and (ii) due and payable on the first Business Day after the end of each  May, August, November and February, commencing with the first such date to occur after the  issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand.   If there is  any  change in the Applicable Rate during any quarter, the daily maximum amount  available  to  be  drawn  under each  Letter  of  Credit  shall  be  computed  and  multiplied  by  the  Applicable Rate separately for each period during such quarter that such Applicable Rate was in  effect.   Notwithstanding  anything  to  the  contrary  contained  herein,  upon  the  request  of  the  Required Lenders, while any Event of Default exists, all Letter of Credit Fees shall accrue at the  Default Rate.         (i)   Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer.  The  Borrower shall pay directly to the L/C Issuer for its own account, in Dollars, a fronting fee (i) with  respect to each commercial Letter of Credit, at the rate per annum specified in the Fee Letter,  computed on the Dollar Equivalent of the amount of such Letter of Credit, and payable upon the  issuance thereof, (ii) with respect to any amendment of a commercial Letter of Credit increasing  the amount of such Letter of Credit, at a rate separately agreed between the Borrower and the L/C  Issuer, computed on the Dollar Equivalent of the amount of such increase, and payable upon the  effectiveness of such amendment, and (iii) with respect to each standby Letter of Credit, at the rate  per  annum  specified  in  the  Fee  Letter,  computed  on  the  Dollar  Equivalent  of  the  actual  daily  maximum  amount  available  to  be  drawn  under  such  Letter  of  Credit  (whether  or  not  such  maximum amount is then in effect under such Letter of Credit) and on a quarterly basis in arrears,  and due and payable on the last Business Day of each May, August, November and February,  commencing with the first such date to occur after the issuance of such Letter of Credit, on the  Letter of Credit Expiration Date and thereafter on demand.  For purposes of computing the daily  amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall  be determined in accordance with Section 1.06.  In addition, the Borrower shall pay directly to the  L/C Issuer for its own account, in Dollars, the customary issuance, presentation, amendment and  other processing fees, and other standard costs and charges, of the L/C Issuer relating to letters of  credit as from time to time in effect.  Such customary fees and standard costs and charges are due  and payable on demand and are nonrefundable.         (j)   Conflict with Issuer Documents.  In the event of any conflict between the terms  hereof and the terms of any Issuer Document, the terms hereof shall control.         (k)   Letters of Credit Issued for Subsidiaries.  Notwithstanding that a Letter of Credit  issued or outstanding hereunder is in support of any obligations of, or is for the account of, a  Subsidiary, the Borrower shall be obligated to reimburse the L/C Issuer hereunder for any and all  drawings under such Letter of Credit.  The Borrower and Limited hereby acknowledge that the  issuance of Letters of Credit for the account of Subsidiaries inures to the benefit of the Borrower  and Limited, and that the Borrower’s and Limited’s business derives substantial benefits from the  businesses of such Subsidiaries.     

 

         2.04  Swing Line Loans.         (a)   The Swing Line.  Subject to the terms and conditions set forth herein, the Swing  Line  Lender  agrees to,  in  reliance  upon  the  agreements  of  the  other  Lenders  set  forth  in  this  Section 2.04 but  in its  sole  discretion and  without  any  obligation, subject  to  the  terms  of  any  Autoborrow Agreement, make loans (each such loan, a “Swing Line Loan”) to the Borrower from  time to time on any Business Day during the Availability Period in an aggregate amount not to  exceed at any time outstanding the amount of the Swing Line Sublimit, notwithstanding the fact  that such Swing Line Loans, when aggregated with the Applicable Percentage of the Outstanding  Amount of Revolving Loans and L/C Obligations of the Lender acting as Swing Line Lender, may  exceed the amount of such Lender’s Commitment; provided, however, that (x) after giving effect  to any Swing Line Loan, (i) the Total Outstandings shall not exceed the Aggregate Commitments,  and (ii) the Revolving Credit Exposure of any Lender shall not exceed such Lender’s Commitment,  and provided, further, that (y) the Borrower shall not use the proceeds of any Swing Line Loan to  refinance any outstanding Swing Line Loan.  Within the foregoing limits, and subject to the other  terms and conditions hereof including the sole discretion of the Swing Line Lender to make Swing  Line Loans, the Borrower may borrow under this Section 2.04, prepay under Section 2.05, and  reborrow under this Section 2.04.  Each Swing Line Loan shall be a Base Rate Loan; provided,  however,  that  if  an  Autoborrow  Agreement  is  in  effect,  the  Swing  Line  Lender  may,  at  its  discretion, provide for an alternative rate of interest on Swing Line Loans under the Autoborrow  Agreement  with  respect  to  any  Swing  Line Loans  for  which  the  Swing  Line  Lender  has  not  requested  that  the  Lenders  fund  Revolving  Loans  to  refinance,  or  to  purchase  and  fund  risk  participations  in,  such  Swing  Line  Loans  pursuant  to Section 2.04(c).   Immediately  upon  the  making  of  a  Swing  Line  Loan,  each  Lender  shall  be  deemed  to,  and  hereby  irrevocably  and  unconditionally agrees to, purchase from the Swing Line Lender a risk participation in such Swing  Line Loan in an amount equal to the product of such Lender’s Applicable Percentage times the  amount of such Swing Line Loan.         (b)   Borrowing Procedures.               (i)   At any time an Autoborrow Agreement is not in effect, each Swing Line        Borrowing shall be made upon the Borrower’s irrevocable notice to the Swing Line Lender        and the Administrative Agent, which may be given by (A) telephone or (B) Swing Line        Loan Notice; provided that telephonic notice must be confirmed promptly by delivery to        the Swing Line Lender and the Administrative Agent of a Swing Line Loan Notice.  Each        Swing  Line  Loan  Notice  must  be  received  by  the Swing  Line  Lender  and  the        Administrative Agent not later than 1:00 p.m. on the requested borrowing date, and shall        specify (i) the amount to be borrowed, which shall be a minimum of $100,000, and (ii) the        requested borrowing date, which shall be a Business Day.  Promptly after receipt by the        Swing Line Lender of any Swing Line Loan Notice, the Swing Line Lender will confirm        with the Administrative Agent (by telephone or in writing) that the Administrative Agent        has also received such Swing Line Loan Notice and, if not, the Swing Line Lender will        notify the Administrative Agent (by telephone or in writing) of the contents thereof.  Unless        the  Swing  Line  Lender  has  received  notice  (by  telephone  or  in  writing)  from  the        Administrative Agent (including at the request of any Lender) prior to 2:00 p.m. on the        date of the proposed Swing Line Borrowing (A) directing the Swing Line Lender not to        make such Swing Line Loan as a result of the limitations set forth in clause (x) of the first    

 

                proviso to the first sentence of Section 2.04(a), or (B) that one or more of the applicable  conditions  specified  in Article IV is  not  then  satisfied,  then,  subject  to  the  terms  and  conditions hereof, the Swing Line Lender will, not later than 3:00 p.m. on the borrowing  date specified in such Swing Line Loan Notice, make the amount of its Swing Line Loan  available to the Borrower at its office by crediting the account of the Borrower on the books  of the Swing Line Lender in Same Day Funds.         (ii)  In order to facilitate the borrowing of Swing Line Loans, the Borrower and  the Swing Line Lender may mutually agree to, and are hereby authorized to, enter into an  Autoborrow Agreement in form and substance satisfactory to the Administrative Agent  and the Swing Line Lender (the “Autoborrow Agreement”) providing for the automatic  advance by the Swing Line Lender of Swing Line Loans under the conditions set forth in  such agreement, which shall be in addition to the conditions set forth herein.  At any time  an Autoborrow Agreement is in effect, the requirements for Swing Line Borrowings set  forth  in  the  immediately  preceding  paragraph  shall  not  apply,  and  all  Swing  Line  Borrowings shall be made in accordance with the Autoborrow Agreement; provided that  any automatic advance made by Bank of America in reliance of the Autoborrow Agreement  shall  be  deemed  a  Swing  Line  Loan  as  of  the  time  such  automatic  advance  is  made  notwithstanding any provision in the Autoborrow Agreement to the contrary.  For purposes  of determining the Outstanding Amount under the Aggregate Commitments at any time  during which an Autoborrow Agreement is in effect, the Outstanding Amount of all Swing  Line Loans shall be deemed to be the amount of the Swing Line Sublimit.  For purposes of  any Swing Line Borrowing pursuant to the Autoborrow Agreement, all references to Bank  of America in the Autoborrow Agreement shall be deemed to be a reference to Bank of  America, in its capacity as Swing Line Lender hereunder.   (c)   Refinancing of Swing Line Loans.         (i)   The Swing Line Lender at any time in its sole and absolute discretion may  request, on behalf of the Borrower (which hereby irrevocably authorizes the Swing Line  Lender to so request on its behalf), that each Lender make a Base Rate Loan in an amount  equal to such Lender’s Applicable Percentage of the amount of Swing Line Loans then  outstanding.  Such request shall be made in writing (which written request shall be deemed  to  be  a  Revolving  Loan  Notice  for  purposes  hereof)  and  in  accordance  with  the  requirements of Section 2.02,  without  regard  to  the  minimum  and  multiples  specified  therein for the principal amount of Base Rate Loans, but subject to the unutilized portion  of the Aggregate Commitments and the conditions set forth in Section 4.02.  The Swing  Line  Lender  shall  furnish  the  Borrower  with  a  copy  of  the  applicable  Revolving  Loan  Notice promptly after delivering such notice to the Administrative Agent.  Each Lender  shall make an amount equal to its Applicable Percentage of the amount specified in such  Revolving Loan Notice available to the Administrative Agent in Same Day Funds (and the  Administrative Agent may apply Cash Collateral available with respect to the applicable  Swing Line Loan) for the account of the Swing Line Lender at the Administrative Agent’s  Office  not  later  than  1:00 p.m.  on  the  day  specified  in  such  Revolving  Loan  Notice,  whereupon, subject to Section 2.04(c)(ii), each Lender that so makes funds available shall  be  deemed  to  have  made  a  Base  Rate  Loan  to  the  Borrower  in  such  amount.   The  Administrative Agent shall remit the funds so received to the Swing Line Lender.                 

 

                      (ii)  If  for  any  reason  any  Swing  Line  Loan  cannot  be  refinanced  by  such  a  Revolving  Borrowing  in  accordance  with Section 2.04(c)(i),  the  request  for  Base  Rate  Loans submitted by the Swing Line Lender as set forth herein shall be deemed to be a  request by the Swing Line Lender that each of the Lenders fund its risk participation in the  relevant Swing Line Loan and each Lender’s payment to the Administrative Agent for the  account of the Swing Line Lender pursuant to Section 2.04(c)(i) shall be deemed payment  in respect of such participation.         (iii) If any Lender fails to make available to the Administrative Agent for the  account of the Swing Line Lender any amount required to be paid by such Lender pursuant  to  the  foregoing  provisions  of  this Section 2.04(c) by  the  time  specified  in  Section 2.04(c)(i), the Swing Line Lender shall be entitled to recover from such Lender  (acting through the Administrative Agent), on demand, such amount with interest thereon  for the period from the date such payment is required to the date on which such payment  is  immediately  available  to  the  Swing  Line  Lender  at  a  rate  per  annum  equal  to  the  applicable Overnight Rate from time to time in effect, plus any administrative, processing  or  similar  fees  customarily  charged  by  the  Swing  Line  Lender  in  connection  with  the  foregoing.   If  such  Lender  pays  such  amount  (with  interest  and  fees  as  aforesaid),  the  principal amount so paid shall constitute such Lender’s Revolving Loan included in the  relevant Revolving Borrowing or funded participation in the relevant Swing Line Loan, as  the case may be.  A certificate of the Swing Line Lender submitted to any Lender (through  the Administrative Agent) with respect to any amounts owing under this clause (iii) shall  be conclusive absent manifest error.         (iv)  Each Lender’s obligation to make Revolving Loans or to purchase and fund  risk participations in Swing Line Loans pursuant to this Section 2.04(c) shall be absolute  and unconditional and shall not be affected by any circumstance, including (A) any setoff,  counterclaim, recoupment, defense or other right which such Lender may have against the  Swing Line Lender, the Borrower or any other Person for any reason whatsoever, (B) the  occurrence or continuance of a Default, or (C) any other occurrence, event or condition,  whether  or  not  similar  to  any  of  the  foregoing; provided, however,  that  each  Lender’s  obligation  to  make  Revolving  Loans  pursuant  to  this Section 2.04(c) is  subject  to  the  conditions set forth in Section 4.02.  No such funding of risk participations shall relieve or  otherwise impair the obligation of the Borrower to repay Swing Line Loans, together with  interest as provided herein.   (d)   Repayment of Participations.         (i)   At any time after any Lender has purchased and funded a risk participation  in a Swing Line Loan, if the Swing Line Lender receives any payment on account of such  Swing Line Loan, the Swing Line Lender will distribute to such Lender its Applicable  Percentage of such payment (appropriately adjusted, in the case of interest payments, to  reflect the period of time during which such Lender’s risk participation was funded) in the  same funds as those received by the Swing Line Lender.         (ii)  If any payment received by the Swing Line Lender in respect of principal  or interest on any Swing Line Loan is required to be returned by the Swing Line Lender                 

 

         under  any  of  the  circumstances  described  in Section 10.05 (including  pursuant  to  any        settlement entered into by the Swing Line Lender in its discretion), each Lender shall pay        to  the  Swing  Line  Lender  its  Applicable Percentage  thereof  on  demand  of  the        Administrative Agent, plus interest thereon from the date of such demand to the date such        amount  is  returned,  at  a  rate  per  annum  equal  to  the  applicable  Overnight  Rate.   The        Administrative Agent will make such demand upon the request of the Swing Line Lender.         The obligations of the Lenders under this clause shall survive the payment in full of the        Obligations and the termination of this Agreement.         (e)   Interest  for  Account  of  Swing  Line  Lender.   The  Swing  Line  Lender  shall  be  responsible for invoicing the Borrower for interest on the Swing Line Loans.  Until each Lender  funds  its  Base  Rate  Loan  or  risk  participation  pursuant  to  this Section 2.04 to  refinance  such  Lender’s Applicable Percentage of any Swing Line Loan, interest in respect of such Applicable  Percentage shall be solely for the account of the Swing Line Lender.         (f)   Payments Directly to Swing Line Lender.  The Borrower shall make all payments  of principal and interest in respect of the Swing Line Loans directly to the Swing Line Lender.  At  any  time  the  Autoborrow  Agreement  is  in  effect,  the  Swing  Line  Loans  shall  be  repaid  in  accordance with the terms of the Autoborrow Agreement.         2.05  Prepayments.         (a)   The Borrower may, upon notice to the Administrative Agent, at any time or from  time to time voluntarily prepay Revolving Loans in whole or in part without premium or penalty;  provided that  (i) such  notice  must  be  received  by  the  Administrative  Agent  not  later  than  11:00 a.m. (A) three Business Days prior to any date of prepayment of Eurodollar Rate Loans and  (B) on the date of prepayment of Base Rate Loans; (ii) any prepayment of Eurodollar Rate Loans  shall be in a principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof;  and (iii) any prepayment of Base Rate Loans shall be in a principal amount of $500,000 or a whole  multiple of $100,000 in excess thereof or, in each case, if less, the entire principal amount thereof  then outstanding.  Each such notice shall specify the date and amount of such prepayment and the  Type(s) of Revolving Loans to be prepaid and, if Eurodollar Rate Loans are to be prepaid, the  Interest Period(s) of such Loans.  The Administrative Agent will promptly notify each Lender of  its  receipt  of  each  such  notice,  and  of  the  amount  of  such  Lender’s ratable  portion  of  such  prepayment  (based  on  such  Lender’s Applicable  Percentage).   If  such  notice  is  given  by  the  Borrower, the Borrower shall make such prepayment and the payment amount specified in such  notice shall be due and payable on the date specified therein.  Any prepayment of a Eurodollar  Rate Loan shall be accompanied by all accrued interest on the amount prepaid, together with any  additional  amounts  required  pursuant  to Section 3.05.   Subject  to Section 2.16,  each  such  prepayment  shall  be  applied  to  the  Revolving  Loans  of  the  Lenders  in  accordance  with  their  respective Applicable Percentages.         (b)   At any time the Autoborrow Agreement is not in effect, the Borrower may, upon  notice to the Swing Line Lender (with a copy to the Administrative Agent), at any time or from  time to time, voluntarily prepay Swing Line Loans in whole or in part without premium or penalty;  provided that (i) such notice must be received by the Swing Line Lender and the Administrative  Agent not later than 1:00 p.m. on the date of the prepayment, and (ii) any such prepayment shall    

 

   be in a minimum principal amount of $100,000, or, if less, the entire principal amount thereof then  outstanding.  Each such notice shall specify the date and amount of such prepayment.  If such  notice  is  given  by  the  Borrower,  the  Borrower  shall  make  such  prepayment  and  the  payment  amount specified in such notice shall be due and payable on the date specified therein.         (c)   If  for  any  reason  the  Total  Outstandings  at  any  time  exceed  the  Aggregate  Commitments  then  in  effect,  the  Borrower  shall  immediately  prepay  Loans  and/or  Cash  Collateralize the L/C Obligations in an aggregate amount equal to such excess; provided, however,  that,  subject  to  the  provisions  of Section 2.15(a), the  Borrower  shall  not  be  required  to  Cash  Collateralize the L/C Obligations pursuant to this Section 2.05(c) unless after the prepayment in  full of the Loans the Total Outstandings exceed the Aggregate Commitments then in effect.         2.06  Termination or Reduction of Commitments.  The Borrower may, upon notice to  the  Administrative  Agent,  terminate  the  Aggregate  Commitments,  or  from  time  to  time  permanently  reduce  the  Aggregate  Commitments; provided that  (i) any  such  notice  shall  be  received by the Administrative Agent not later than 11:00 a.m. five Business Days prior to the date  of termination or  reduction, (ii) any such partial  reduction shall be in  an aggregate amount of  $10,000,000 or any whole multiple of $1,000,000 in excess thereof, (iii) the Borrower shall not  terminate  or  reduce  the  Aggregate  Commitments  if,  after  giving  effect  thereto  and  to  any  concurrent  prepayments  hereunder,  the  Total  Outstandings  would  exceed  the  Aggregate  Commitments, and (iv) if, after giving effect to any reduction of the Aggregate Commitments, the  Letter  of  Credit  Sublimit  or  the  Swing  Line  Sublimit  exceeds  the  amount  of  the  Aggregate  Commitments, such Sublimit shall be automatically reduced by the amount of such excess.  The  Administrative  Agent  will  promptly  notify  the  Lenders  of  any  such  notice  of  termination  or  reduction of the Aggregate Commitments.  Any reduction of the Aggregate Commitments shall be  applied  to  the  Commitment  of  each  Lender  according  to  its  Applicable  Percentage.   All  fees  accrued until the effective date of any termination of the Aggregate Commitments shall be paid on  the effective date of such termination.         2.07  Repayment of Loans.         (a)   The  Borrower  shall  repay  to  the  Lenders  on  the  Maturity  Date  the  aggregate  principal amount of Revolving Loans outstanding on such date.         (b)   At any time the Autoborrow Agreement is in effect, the Swing Line Loans shall be  repaid in accordance with the terms of the Autoborrow Agreement.  At any time the Autoborrow  Agreement is not in effect, the Borrower shall repay each Swing Line Loan on the Maturity Date.         2.08  Interest.         (a)   Subject to the provisions of subsection (b) below, (i) each Eurodollar Rate Loan  shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per  annum equal to the lesser of (y) the Highest Lawful Rate and (z) the Eurodollar Rate for such  Interest  Period plus the  Applicable  Rate;  (ii) each  Base  Rate  Loan  shall  bear  interest  on  the  outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal  to the lesser of (y) the Highest Lawful Rate and (z) the Base Rate plus the Applicable Rate; and  (iii) each Swing Line Loan shall bear interest on the outstanding principal amount thereof from    

 

   the applicable borrowing date at a rate per annum equal to the lesser of (y) the Highest Lawful  Rate and (z) the Base Rate plus the Applicable Rate, or, if an Autoborrow Agreement is in effect,  at a rate per annum provided by the Swing Line Lender and agreed to by the Borrower.         (b)   (i)   If any amount of principal of any Loan is not paid when due (without regard  to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, such  amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to  the lesser of (y) the Highest Lawful Rate and (z) the Default Rate, to the fullest extent permitted  by Applicable Laws.               (ii)  If any amount (other than principal of any Loan) payable by the Borrower        under any Loan Document is not paid when due (without regard to any applicable grace        periods), whether at stated maturity, by acceleration or otherwise, then upon the request of        the Required Lenders, such amount shall thereafter bear interest at a fluctuating interest        rate per annum at all times equal to the lesser of (y) the Highest Lawful Rate and (z) the        Default Rate, to the fullest extent permitted by Applicable Laws.               (iii) Upon the request of the Required Lenders, while any Event of Default exists        (other than as set forth in clauses (b)(i) and (b)(ii) above), the Borrower shall pay interest        on the principal amount of all outstanding Obligations hereunder at a fluctuating interest        rate per annum at all times equal to the lesser of (y) the Highest Lawful Rate and (z) the        Default Rate, to the fullest extent permitted by Applicable Laws.               (iv)  Accrued and unpaid interest on past due amounts (including interest on past        due interest) shall be due and payable upon demand.         (c)   Interest on each Loan shall be due and payable in arrears on each Interest Payment  Date applicable thereto and at such other times as may be specified herein.  Interest hereunder shall  be due and payable in accordance with the terms hereof before and after judgment, and before and  after the commencement of any proceeding under any Debtor Relief Law.         2.09  Fees.  In addition to certain fees described in subsections (h) and (i) of Section 2.03:         (a)   Commitment Fee.  The Borrower shall pay to the Administrative Agent  for the  account of each Lender in accordance with its Applicable Percentage, a commitment fee equal to  the Applicable Rate times the actual daily amount by which the Aggregate Commitments exceed  the sum of (i) the Outstanding Amount of Revolving Loans and (ii) the Outstanding Amount of  L/C Obligations, subject to adjustment as provided in Section 2.16.  The commitment fee shall  accrue at all times during the Availability Period, including at any time during which one or more  of the conditions in Article IV is not met, and shall be due and payable quarterly in arrears on the  last Business Day of each May, August, November and February, commencing with the first such  date to occur after the Closing Date, and on the Maturity Date.  The commitment fee shall be  calculated quarterly in arrears, and if there is any change in the Applicable Rate during any quarter,  the actual daily amount shall be computed and multiplied by the Applicable Rate separately for  each  period  during  such  quarter  that  such  Applicable  Rate was  in  effect.   For  purposes  of  computation of the commitment fee, Swing Line Loans shall not be counted toward or considered  usage of the Aggregate Commitments.    

 

         (b)   Other Fees.               (i)   The Borrower shall pay to the Arranger and the Administrative Agent for        their own respective accounts fees in the amounts and at the times specified in the Fee        Letter.  Such fees shall be fully earned when paid and shall not be refundable for any reason        whatsoever.               (ii)  The  Borrower  shall  pay  to  the  Lenders  such  fees  as  shall  have  been        separately agreed upon in writing in the amounts and at the times so specified.  Such fees        shall be fully earned when paid and shall not be refundable for any reason whatsoever.         2.10  Computation of Interest and Fees.         (a)   All  computations  of  interest  for  Base  Rate  Loans  (including  Base  Rate  Loans  determined by reference to the Eurodollar Rate) shall be made on the basis of a year of 365 or 366  days, as the case may be, and actual days elapsed.  Subject to Section 10.09, all other computations  of fees and interest shall be made on the basis of a 360-day year and actual days elapsed (which  results in more fees or interest, as applicable, being paid than if computed on the basis of a 365- day year).  Interest shall accrue on each Loan for the day on which the Loan is made, and shall not  accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid,  provided that  any  Loan  that  is  repaid  on  the  same  day on  which  it  is  made  shall,  subject  to  Section 2.12(a), bear interest for one day.  Each determination by the Administrative Agent of an  interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest  error.         (b)   If, as a result of any restatement of or other adjustment to the financial statements  of Limited or for any other reason, the Borrower, Limited or the Lenders determine that (i) the Net  Leverage Ratio as of any applicable date was inaccurate and (ii) a proper calculation of the Net  Leverage  Ratio  would  have  resulted  in  higher  pricing  for  such  period,  the  Borrower  shall  immediately and retroactively be obligated to pay to the Administrative Agent for the account of  the Lenders or the L/C Issuer, as the case may be, promptly on demand by the Administrative  Agent (or, after the occurrence of an actual or deemed entry of an order for relief with respect to  the Borrower under the Bankruptcy Code of the United States, automatically and without further  action by the Administrative Agent, any Lender or the L/C Issuer), an amount equal to the excess  of the amount of interest and fees that should have been paid for such period over the amount of  interest and fees actually paid for such period.  This paragraph shall not limit the rights of the  Administrative  Agent,  any  Lender,  or  the  L/C  Issuer,  as  the  case  may  be,  under  Sections 2.03(c)(iii), 2.03(h) or 2.08(b) or under Article VIII.  The Borrower’s obligations under  this paragraph shall survive termination of the Aggregate Commitments and the repayment of all  other Obligations hereunder.         2.11  Evidence of Debt.         (a)   The Credit Extensions made by each Lender shall be evidenced by one or more  accounts or records maintained by such Lender and by the Administrative Agent in the ordinary  course of business.  The accounts or records maintained by the Administrative Agent and each  Lender shall be conclusive absent manifest error of the amount of the Credit Extensions made by    

 

   the Lenders to the Borrower and the interest and payments thereon.  Any failure to so record or  any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower  hereunder to pay any amount owing with respect to the Obligations.  In the event of any conflict  between the accounts and records maintained by any Lender and the accounts and records of the  Administrative Agent in respect of such matters, the accounts and records of the Administrative  Agent shall control in the absence of manifest error.  Upon the request of any Lender made through  the Administrative Agent, the Borrower shall execute and deliver to such Lender (through the  Administrative  Agent)  a  Note,  which  shall  evidence  such  Lender’s  Loans  in  addition  to  such  accounts or records.  Each Lender may attach schedules to its Note and endorse thereon the date,  Type (if applicable), amount and maturity of its Loans and payments with respect thereto.         (b)   In addition to the accounts and records referred to in subsection (a), each Lender  and the Administrative Agent  shall maintain in accordance with  its  usual  practice accounts or  records evidencing the purchases and sales by such Lender of participations in Letters of Credit  and Swing Line Loans.  In the event of any conflict between the accounts and records maintained  by the Administrative Agent and the accounts and records of any Lender in respect of such matters,  the accounts and records of the Administrative Agent shall control in the absence of manifest error.         2.12  Payments Generally; Administrative Agent’s Clawback.         (a)   General.  All payments to be made by the Borrower shall be made free and clear of  and without condition or deduction for any counterclaim, defense, recoupment or setoff.  Except  as otherwise expressly provided herein and except with respect to the payment of a drawing under  a  Letter  of  Credit  denominated  in  an  Alternative  Currency,  all  payments  by  the  Borrower  hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to  which such payment is owed, at the Administrative Agent’s Office in Dollars and in Same Day  Funds  not  later  than  2:00 p.m.,  on  the  date  specified  herein.   Except  as  otherwise  expressly  provided herein, all payments by the Borrower hereunder with respect to a drawing under a Letter  of Credit denominated in an Alternative Currency shall be made to the Administrative Agent, for  the account of the L/C Issuer, at the applicable Administrative Agent’s Office in such Alternative  Currency  and  in  Same  Day  Funds  no  later  than  the  Applicable  Time  specified  by  the  Administrative Agent on the dates specified herein.  If, for any reason, the Borrower is prohibited  by  any  Law  from  making  any  required  payment  hereunder  in  an  Alternative  Currency,  the  Borrower shall make such payment in Dollars in the Dollar Equivalent of the Alternative Currency  payment amount.  The Administrative Agent will promptly distribute to each Lender its Applicable  Percentage (or other applicable share as provided herein) of such payment in like funds as received  by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative  Agent  (i) after  2:00 p.m.,  in  the  case  of  payments  in  Dollars or  (ii) after  the  Applicable  Time  specified by the Administrative Agent in the case of payments in an Alternative Currency shall in  each case be deemed received on the next succeeding Business Day and any applicable interest or  fee shall continue to accrue.  If any payment to be made by the Borrower shall come due on a day  other than a Business Day, payment shall be made on the next following Business Day, and such  extension of time shall be reflected in computing interest or fees, as the case may be.         (b)   (i)   Funding  by  Lenders;  Presumption  by  Administrative  Agent.   Unless  the        Administrative Agent shall have received notice from a Lender prior to the proposed date        of any Revolving Borrowing of Eurodollar Rate Loans (or, in the case of any Revolving    

 

         Borrowing  of  Base  Rate  Loans,  prior  to  12:00 noon  on  the  date  of  such  Revolving        Borrowing) that such Lender will not make available to the Administrative Agent such        Lender’s share of such Revolving Borrowing, the Administrative Agent may assume that        such Lender has made such share available on such date in accordance with Section 2.02        (or, in the case of a Revolving Borrowing of Base Rate Loans, that such Lender has made        such share available in accordance with and at the time required by Section 2.02) and may,        in reliance upon such assumption, make available to the Borrower a corresponding amount.         In  such  event,  if  a  Lender  has  not  in  fact  made  its  share  of  the  applicable  Revolving        Borrowing  available  to  the  Administrative  Agent,  then  the  applicable  Lender  and  the        Borrower severally agree to pay to the Administrative Agent forthwith on demand such        corresponding amount in Same Day Funds with interest thereon, for each day from and        including the date such amount is made available to the Borrower to but excluding the date        of payment to the Administrative Agent, at (A) in the case of a payment to be made by        such  Lender,  the  Overnight  Rate,  plus  any  administrative,  processing  or  similar  fees        customarily charged by the Administrative Agent in connection with the foregoing, and        (B) in the case of a payment to be made by the Borrower, the interest rate applicable to        Base  Rate  Loans.   If  the  Borrower  and  such  Lender  shall  pay  such  interest  to  the        Administrative Agent for the same or an overlapping period, the Administrative Agent        shall promptly remit to the Borrower the amount of such interest paid by the Borrower for        such period.  If such Lender pays its share of the applicable Revolving Borrowing to the        Administrative Agent, then the amount so paid shall constitute such Lender’s Revolving        Loan  included  in  such  Revolving  Borrowing.   Any  payment  by  the  Borrower  shall  be        without prejudice to any claim the Borrower may have against a Lender that shall have        failed to make such payment to the Administrative Agent.               (ii)  Payments by the Borrower; Presumptions by Administrative Agent.  Unless        the Administrative Agent shall have received notice from the Borrower prior to the date on        which any payment is due to the Administrative Agent for the account of the Lenders or        the L/C Issuer hereunder that the Borrower will not make such payment, the Administrative        Agent may assume that the Borrower has made such payment on such date in accordance        herewith and may, in reliance upon such assumption, distribute to the Lenders or the L/C        Issuer, as the case may be, the amount due.  In such event, if the Borrower has not in fact        made  such  payment,  then  each  of  the  Lenders  or  the  L/C  Issuer,  as  the  case  may  be,        severally agrees to repay to the Administrative Agent forthwith on demand the amount so        distributed to such Lender or the L/C Issuer, in Same Day Funds with interest thereon, for        each day from and including the date such amount is distributed to it to but excluding the        date of payment to the Administrative Agent, at the Overnight Rate.         A notice of the Administrative Agent to any Lender or the Borrower with respect to any  amount owing under this subsection (b) shall be conclusive, absent manifest error.         (c)   Failure  to  Satisfy  Conditions  Precedent.   If  any  Lender  makes  available  to  the  Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing  provisions  of  this Article II,  and  such  funds  are  not  made  available  to  the  Borrower  by  the  Administrative  Agent  because  the  conditions  to  the  applicable  Credit  Extension  set  forth in  Article IV are not satisfied or waived in  accordance with the terms hereof, the Administrative     

 

   Agent shall return such funds (in like funds as received from such Lender) to such Lender, without  interest.         (d)   Obligations of Lenders Several.  The obligations of the Lenders hereunder to make  Revolving Loans, to fund participations in Letters of Credit and Swing Line Loans and to make  payments pursuant to Section 10.04(c) are several and not joint.  The failure of any Lender to make  any  Revolving  Loan,  to  fund  any  such  participation  or  to  make  any  payment  under  Section 10.04(c) on  any  date  required  hereunder  shall  not  relieve  any  other  Lender  of  its  corresponding obligation to do so on such date, and no Lender shall be responsible for the failure  of  any  other  Lender  to  so  make  its  Revolving  Loan,  purchase  its  participation  or  to  make  its  payment under Section 10.04(c).         (e)   Funding Source.  Nothing herein shall be deemed to obligate any Lender to obtain  the funds for any Loan in any particular place or manner or to constitute a representation by any  Lender that it has obtained or will obtain the funds for any Loan in any particular place or manner.         2.13  Sharing of Payments by Lenders.  If any Lender shall, by exercising any right of  setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on  any of the Revolving Loans made by it, or the participations in L/C Obligations or in Swing Line  Loans held by it resulting in such Lender’s receiving payment of a proportion of the aggregate  amount of Revolving Loans or participations and accrued interest thereon greater than its pro rata  share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify  the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in  the Revolving Loans and subparticipations in L/C Obligations and Swing Line Loans of the other  Lenders,  or  make  such  other  adjustments as  shall  be  equitable,  so  that  the  benefit  of  all  such  payments  shall  be  shared  by  the  Lenders  ratably  in  accordance  with  the  aggregate  amount  of  principal of and accrued interest on their respective Revolving Loans and other amounts owing  them, provided that:               (i)   if any such participations or subparticipations are purchased and all or any        portion  of  the  payment  giving  rise  thereto  is  recovered,  such  participations  or        subparticipations shall be rescinded and the purchase price restored to the extent of such        recovery, without interest; and               (ii)  the  provisions  of  this  Section  shall  not  be  construed  to  apply  to  (x) any        payment made by or on behalf of the Borrower pursuant to and in accordance with the        express  terms  of  this  Agreement  (including  the  application  of  funds arising  from  the        existence of a Defaulting Lender), (y) the application of Cash Collateral provided for in        Section 2.15, or (z) any payment obtained by a Lender as consideration for the assignment        of  or  sale  of  a  participation  in  any  of  its  Revolving  Loans or  subparticipations  in  L/C        Obligations or Swing Line Loans to any assignee or participant, other than an assignment        to the Borrower or any Subsidiary thereof (as to which the provisions of this Section shall        apply).         Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do  so  under  Applicable  Law,  that  any  Lender  acquiring  a  participation  pursuant  to  the  foregoing  arrangements may exercise against such Loan Party rights of setoff and counterclaim with respect    

 

   to such participation as fully as if such Lender were a direct creditor of such Loan Party in the  amount of such participation.         2.14  Increase in Commitments.         (a)   Request  for  Increase.   Provided  there  exists  no  Default,  upon  notice  to  the  Administrative Agent (which shall promptly notify the Lenders), the Borrower may from time to  time, request (x) an increase in the Aggregate Commitments (each, an “Incremental Revolving  Commitment”)  and/or  (y)  the  establishment  of  one  or  more  new  term  loan  commitments  (an  “Incremental Term Commitment”), by an aggregate amount (for all such requests) not exceeding  $300,000,000; provided that (i) any such request for an increase shall be in a minimum amount of  $10,000,000, and (ii) the Borrower may make a maximum of five (5) such requests.  At the time  of sending such notice, the Borrower (in consultation with the Administrative Agent) shall specify  the time period within which each Lender is requested to respond (which shall in no event be less  than ten (10) Business Days from the date of delivery of such notice to the Lenders).         (b)   Terms of New Loans and Commitments.  The terms and provisions of Loans made  pursuant to Incremental Commitments shall be as follows:               (i)   the terms and provisions of Incremental Term Loans shall be reasonably        satisfactory to the Administrative Agent; provided that in any event the Incremental Term        Loans must comply with clause (iii) below;               (ii)  the terms and provisions of revolving loans made pursuant to Incremental        Revolving Commitments shall be identical to the Revolving Loans; and               (iii) the maturity date of Incremental Term Loans (the “Incremental Term Loan        Maturity Date”) shall not be earlier than the Maturity Date.         (c)   Lender Elections to Increase.  Each Lender shall notify the Administrative Agent  within such time period (i) whether or not it agrees to provide an Incremental Term Commitment,  and (ii) whether or not it agrees to provide an Incremental Revolving Commitment and, if so,  whether  by  an  amount  equal  to,  greater  than,  or  less  than  its  Applicable  Percentage  of  such  requested increase, as applicable.  Any Lender not responding within such time period shall be  deemed  to  have  declined  to  provide  an  Incremental  Term  Commitment  or an  Incremental  Revolving Commitment, as applicable.         (d)   Notification  by  Administrative  Agent;  Additional  Lenders.   The  Administrative  Agent shall notify the Borrower and each Lender of the Lenders’ responses to each request made  hereunder.  To achieve the full amount of a requested increase and subject to the approval of the  Administrative Agent, the L/C Issuer and the Swing Line Lender (which approvals shall not be  unreasonably withheld), the Borrower may also invite additional Eligible Assignees to become  Lenders.         (e)   Increase Joinder; Effective Date; Allocations.  The Incremental Commitments shall  be  effected  by  a  joinder  agreement  (the  “Increase  Joinder”)  executed  by  the  Borrower,  the  Administrative  Agent  and  each Lender  making  such  Incremental  Commitment,  in  form  and  substance reasonably satisfactory to each of them.  The Administrative Agent and the Borrower    

 

   shall determine the effective date (the “Increase Effective Date”) and the final allocation of such  increase.  The Administrative Agent shall promptly notify the Borrower and the Lenders of the  final allocation of such increase and the Increase Effective Date.  Notwithstanding the provisions  of Section 10.01, the Increase Joinder may, without the consent of any other Lenders, effect such  amendments to this Agreement and the other Loan Documents as may be necessary or appropriate,  in the reasonable opinion of the Administrative Agent, to effect the provisions of this Section 2.14.   In addition, unless otherwise specifically provided herein, all references in Loan Documents to  Revolving Loans shall be deemed, unless the context otherwise requires, to include references to  Revolving Loans made pursuant to Incremental Revolving Commitments made pursuant to this  Agreement.         (f)   Conditions to Effectiveness of Increase.  As a condition precedent to such increase,  the Borrower shall deliver to the Administrative Agent a certificate of each Loan Party dated as of  the Increase Effective Date (in sufficient copies for each Lender) signed by a Responsible Officer  of  such  Loan  Party  (i) certifying  and  attaching  the  resolutions  adopted  by  such  Loan  Party  approving or consenting to such increase, and (ii) in the case of the Borrower, certifying that,  before and after giving effect to such increase, (A) the representations and warranties contained in  Article V and the other Loan Documents (i) that contain a materiality qualification, are true and  correct,  on  and  as  of  the  Increase  Effective  Date  and  (ii)  that  do  not  contain  a  materiality  qualification, are true and correct in all material respects, on and as of the Increase Effective Date,  except to the extent that such representations and warranties specifically refer to an earlier date, in  which case they are true and correct in all material respects (or in the case of such representations  and warranties that are subject to a materiality qualification, in all respects) as of such earlier date,  and except that for purposes of this Section 2.14, the representations and warranties contained in  subsection (a) of Section 5.05 shall be deemed to refer to the most recent statements furnished  pursuant to clause (a) of Section 6.01, and (B) no Default exists.  The Borrower shall prepay any  Revolving Loans  outstanding  on the Increase Effective  Date  (and pay  any additional amounts  required pursuant to Section 3.05) to the extent necessary to keep the outstanding Revolving Loans  ratable  with  any  revised  Applicable  Percentages  arising  from  any  non-ratable  increase  in  the  Commitments under this Section.  Upon the reasonable request of any Lender made prior to the  Increase Effective Date, the Borrower shall have provided to such Lender, and such Lender shall  be reasonably satisfied with, the documentation and other information so requested in connection  with  applicable  “know  your  customer”  and  anti-money-laundering  rules  and  regulations,  including, without limitation, the PATRIOT Act.  Prior to the Increase Effective Date, to the extent  the Borrower qualifies as a “legal entity customer” under the Beneficial Ownership Regulation,  the  Borrower shall  have  provided,  to  each  Lender  that  so  requests,  a  Beneficial  Ownership  Certification in relation to the Borrower.         (g)   Making of Incremental Term Loans.  On any Increase Effective Date on which new  commitments for Incremental Term Loans are effective, subject to the satisfaction of the foregoing  terms and conditions, each Lender of such new commitment shall make an Incremental Term Loan  to the Borrower in an amount equal to its new Incremental Term Commitment.         (h)   Equal and Ratable Benefit.  The Loans and Incremental Commitments established  pursuant to this paragraph shall constitute Loans and commitments under, and shall be entitled to  all the benefits afforded by, this Agreement and the other Loan Documents, and shall, without  limiting the foregoing, benefit equally and ratably from the Guaranty.    

 

         (i)   Conflicting  Provisions.   This  Section  shall  supersede  any  provisions  in  Sections 2.13 or 10.01 to the contrary.         2.15  Cash Collateral.         (a)   Certain Credit Support Events.  If (i) the L/C Issuer has honored any full or partial  drawing request under any Letter of Credit and such drawing has resulted in an L/C Borrowing,  (ii) as  of  the  Letter  of  Credit  Expiration  Date,  any  L/C  Obligation  for  any  reason  remains  outstanding,  (iii) the  Borrower  shall  be  required  to  provide  Cash  Collateral  pursuant  to  Section 8.02(c), or (iv) there shall exist a Defaulting Lender, the Borrower shall immediately (in  the case of clause (iii) above) or within one Business Day (in all other cases) following any request  by the Administrative Agent or the L/C Issuer, provide Cash Collateral in an amount not less than  the applicable Minimum Collateral Amount (determined in the case of Cash Collateral provided  pursuant to clause (iv) above, after giving effect to Section 2.16(a)(iv) and any Cash Collateral  provided  by  the  Defaulting  Lender).  Additionally,  if  the  Administrative  Agent  notifies  the  Borrower at any time that the Outstanding Amount of all L/C Obligations at such time exceeds  105% of the Letter of Credit Sublimit then in effect, then, within two Business Days after receipt  of such notice, the Borrower shall provide Cash Collateral for the Outstanding Amount of the L/C  Obligations in an amount not less than the amount by which the Outstanding Amount of all L/C  Obligations exceeds the Letter of Credit Sublimit.         (b)   Grant  of  Security  Interest.   The  Borrower,  and  to  the  extent  provided  by  any  Defaulting Lender, such Defaulting Lender, hereby grants to (and subjects to the control of) the  Administrative Agent, for the benefit of the Administrative Agent, the L/C Issuer and the Lenders,  and agrees to maintain, a first priority security interest in all such cash, deposit accounts and all  balances  therein,  and  all  other  property  so  provided  as  collateral  pursuant  hereto,  and  in  all  proceeds of the foregoing, all as security for the obligations to which such Cash Collateral may be  applied pursuant to Section 2.15(c).  If at any time the Administrative Agent determines that Cash  Collateral is subject to any right or claim of any Person other than the Administrative Agent or the  L/C Issuer as herein provided, or that the total amount of such Cash Collateral is less than the  Minimum Collateral Amount, the Borrower will, promptly upon demand by the Administrative  Agent,  pay  or  provide  to  the  Administrative  Agent  additional  Cash  Collateral  in  an  amount  sufficient  to  eliminate  such  deficiency.  All  Cash  Collateral  (other  than  credit  support  not  constituting funds subject to deposit) shall be maintained in blocked, non-interest bearing deposit  accounts at Bank of America.  The Borrower shall pay on demand therefor from time to time all  customary account opening, activity and other administrative fees and charges in connection with  the maintenance and disbursement of Cash Collateral.         (c)   Application.   Notwithstanding  anything  to  the  contrary  contained  in  this  Agreement, Cash Collateral provided under any of this Section 2.15 or Sections 2.03, 2.05, 2.16  or 8.02 in respect of Letters of Credit shall be held and applied to the satisfaction of the specific  L/C  Obligations,  obligations  to  fund  participations  therein  (including,  as  to  Cash  Collateral  provided by a Defaulting Lender, any interest accrued on such obligation) and other obligations  for which the Cash Collateral was so provided, prior to any other application of such property as  may otherwise be provided for herein.     

 

         (d)   Release.  Cash Collateral (or the appropriate portion thereof) provided to reduce  Fronting Exposure  or  to  secure  other  obligations  shall  be  released  promptly  following  (i) the  elimination of the applicable Fronting Exposure or other obligations giving rise thereto (including  by the termination of Defaulting Lender status of the applicable Lender (or, as appropriate, its  assignee following compliance with Section 10.06(b)(vi))) or (ii) the good faith determination by  the Administrative Agent and the L/C Issuer that there exists excess Cash Collateral; provided,  however, (x) that Cash Collateral furnished by or on behalf of a Loan Party shall not be released  during the continuance of a Default or Event of Default (and following application as provided in  this Section 2.15 may be otherwise applied in accordance with Section 8.03), and (y) the Person  providing Cash Collateral and the L/C Issuer may agree that Cash Collateral shall not be released  but instead held to support future anticipated Fronting Exposure or other obligations.         2.16  Defaulting Lenders.         (a)   Adjustments.   Notwithstanding  anything  to  the  contrary  contained  in  this  Agreement, if any Lender becomes a Defaulting Lender, then, until such time as that Lender is no  longer a Defaulting Lender, to the extent permitted by applicable Law:               (i)   Waivers and Amendments.  Such Defaulting Lender’s right to approve or        disapprove any amendment,  waiver or consent  with  respect  to  this  Agreement shall be        restricted as set forth in the definition of “Required Lenders” and Section 10.01.               (ii)  Defaulting Lender Waterfall.  Any payment of principal, interest, fees or        other amounts received by the Administrative Agent for the account of such Defaulting        Lender  (whether  voluntary  or  mandatory,  at  maturity,  pursuant  to Article VIII or        otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to        Section 10.08 shall  be  applied  at  such  time  or  times  as  may  be  determined  by  the        Administrative  Agent  as  follows: first,  to  the  payment  of  any  amounts  owing  by  such        Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a pro        rata basis of any amounts owing by such Defaulting Lender to the L/C Issuer or Swing        Line Lender hereunder; third, to Cash Collateralize the L/C Issuer’s Fronting Exposure        with  respect to  such Defaulting  Lender in  accordance  with Section 2.15; fourth, as the        Borrower may request (so long as no Default exists), to the funding of any Loan in respect        of which such Defaulting Lender has failed to fund its portion thereof as required by this        Agreement,  as determined  by  the  Administrative  Agent; fifth,  if  so  determined  by  the        Administrative Agent and the Borrower, to be held in a deposit account and released pro        rata in order to (x) satisfy such Defaulting Lender’s potential future funding obligations        with respect to Loans under this Agreement and (y) Cash Collateralize the L/C Issuer’s        future Fronting Exposure with respect to such Defaulting Lender with respect to future        Letters of Credit issued under this Agreement, in accordance with Section 2.15; sixth, to        the payment of any amounts owing to the Lenders, the L/C Issuer or Swing Line Lender as        a result of any judgment of a court of competent jurisdiction obtained by any Lender, the        L/C Issuer or the Swing Line Lender against such Defaulting Lender as a result of such        Defaulting Lender’s breach of its obligations under this Agreement; seventh, so long as no        Default exists, to the payment of any amounts owing to the Borrower as a result of any        judgment  of  a  court  of  competent  jurisdiction  obtained  by  the Borrower against  such        Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under    

 

                this Agreement; and eighth, to such Defaulting Lender or as otherwise directed by a court  of competent jurisdiction; provided that if (x) such payment is a payment of the principal  amount of any Loans or L/C Borrowings in respect of which such Defaulting Lender has  not fully funded its appropriate share, and (y) such Loans were made or the related Letters  of Credit were issued at a time when the conditions set forth in Section 4.02 were satisfied  or waived, such payment shall be applied solely to pay the Loans of, and L/C Obligations  owed  to,  all  Non-Defaulting  Lenders  on  a  pro  rata  basis  prior  to  being  applied  to  the  payment of any Loans of, or L/C Obligations owed to, such Defaulting Lender until such  time as all Loans and funded and unfunded participations in L/C Obligations and Swing  Line  Loans  are  held  by  the  Lenders  pro  rata  in  accordance  with  the  Commitments  hereunder without giving effect  to Section 2.16(a)(iv).  Any payments,  prepayments  or  other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay  amounts  owed  by  a  Defaulting  Lender  or  to  post  Cash  Collateral  pursuant  to  this  Section 2.16(a)(ii) shall be deemed paid to and redirected by such Defaulting Lender, and  each Lender irrevocably consents hereto.         (iii) Certain Fees.               (A)   No Defaulting Lender shall be entitled to receive any fee payable        under Section 2.09(a) for  any  period  during  which  that  Lender  is  a  Defaulting        Lender (and the Borrower shall not be required to pay any such fee that otherwise        would have been required to have been paid to that Defaulting Lender).               (B)   Each Defaulting Lender shall be entitled to receive Letter of Credit        Fees for any period during which that Lender is a Defaulting Lender only to the        extent  allocable  to  its  Applicable  Percentage  of  the  stated  amount  of  Letters  of        Credit for which it has provided Cash Collateral as contemplated by Section 2.15.               (C)   With respect to any Letter of Credit Fee not required to be paid to        any  Defaulting  Lender  pursuant  to  clause  (A) or  (B) above or  to  the  extent  the        Fronting Exposure is not cash collateralized, the Borrower shall (x) pay to each        Non-Defaulting  Lender  that  portion  of  any  such  fee  otherwise  payable  to  such        Defaulting Lender with respect to such Defaulting Lender’s participation in L/C        Obligations that has been reallocated to such Non-Defaulting Lender pursuant to        clause (iv) below, (y) pay to the L/C Issuer the amount of any such fee otherwise        payable  to  such  Defaulting  Lender  to  the  extent  allocable  to  such  L/C  Issuer’s        Fronting Exposure to such Defaulting Lender, and (z) not be required to pay the        remaining amount of any such fee.         (iv)  Reallocation of Applicable Percentages to Reduce Fronting Exposure.  All  or any part of such Defaulting Lender’s participation in L/C Obligations and Swing Line  Loans shall be reallocated among the Non-Defaulting Lenders in accordance with their  respective Applicable Percentages (calculated without regard to such Defaulting Lender’s  Commitment) but only to the extent that (x) the conditions set forth in Section 4.02 are  satisfied at the time of such reallocation (and, unless the Borrower shall have otherwise  notified the Administrative Agent  at  such time, the Borrower shall be deemed to  have  represented and warranted that such conditions are satisfied at such time), and (y) such                 

 

         reallocation  does  not  cause  the  aggregate Revolving  Credit  Exposure  of  any  Non-       Defaulting  Lender  to  exceed  such  Non-Defaulting  Lender’s  Commitment.  Subject  to        Section 10.22, no reallocation hereunder shall constitute a waiver or release of any claim        of any party hereunder against a Defaulting Lender arising from that Lender having become        a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such        Non-Defaulting Lender’s increased exposure following such reallocation.               (v)   Cash  Collateral,  Repayment  of  Swing  Line  Loans.   If the  reallocation        described in clause (a)(iv) above cannot, or can only partially, be effected, the Borrower        shall, without prejudice to any right or remedy available to it hereunder or under applicable        Law, (x) first, prepay Swing Line Loans in an amount equal to the Swing Line Lenders’        Fronting Exposure and (y) second, Cash Collateralize the L/C Issuers’ Fronting Exposure        in accordance with the procedures set forth in Section 2.15.         (b)   Defaulting Lender Cure.  If the Borrower, the Administrative Agent, Swing Line  Lender and the L/C Issuer agree in writing in their sole discretion that a Lender is no longer a  Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the  effective date specified in such notice and subject to any conditions set forth therein (which may  include  arrangements  with  respect  to  any  Cash  Collateral),  that  Lender  will,  to  the  extent  applicable, purchase at par that portion of outstanding Loans of the other Lenders or take such  other actions as the Administrative Agent may determine to be necessary to cause the Revolving  Loans and funded and unfunded participations in Letters of Credit and Swing Line Loans to be  held on a pro rata basis by the Lenders in accordance with their Applicable Percentages (without  giving effect to Section 2.16(a)(iv)), whereupon such Lender will cease to be a Defaulting Lender;  provided that no adjustments will be made retroactively with respect to fees accrued or payments  made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and provided,  further, that except to the extent otherwise expressly agreed by the affected parties, no change  hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of  any party hereunder arising from that Lender’s having been a Defaulting Lender.                                   ARTICLE III.                  TAXES, YIELD PROTECTION AND ILLEGALITY         3.01  Taxes.         (a)   Payments Free of Taxes; Obligation to Withhold; Payments on Account of Taxes.               (i)   Any and all payments by or on account of any obligation of any Loan Party        under  any  Loan  Document  shall  be  made free  and  clear  of  and without  deduction  or        withholding for any Taxes, except as required by Applicable Laws.  If any Applicable Laws        (as determined in the good faith discretion of the Borrower or the Administrative Agent)        require  the  deduction  or  withholding  of  any  Tax  from  any  such  payment  by  the        Administrative Agent or a Loan Party, then the Administrative Agent or such Loan Party        shall be entitled to make such deduction or withholding, upon the basis of the information        and documentation to be delivered pursuant to subsection (e) below.     

 

               (ii)  If any Loan Party or the Administrative Agent shall be required by the Code        to withhold or deduct any Taxes, including both United States Federal backup withholding        and  withholding  taxes,  from  any  payment,  then  (A) the  Administrative  Agent  shall        withhold or make such deductions as are determined by the Administrative Agent to be        required  based  upon  the  information  and  documentation  it  has  received  pursuant  to        subsection (e) below,  (B) the  Administrative  Agent  shall  timely  pay  the  full  amount        withheld or deducted to the relevant Governmental Authority in accordance with the Code,        and (C) to the extent that the withholding or deduction is made on account of Indemnified        Taxes, the sum payable by the applicable Loan Party shall be increased as necessary so that        after  any  required  withholding  or  the  making  of  all  required  deductions  (including        deductions applicable to additional sums payable under this Section 3.01) the applicable        Recipient  receives  an  amount  equal  to  the  sum  it  would  have  received  had no  such        withholding or deduction been made.               (iii) If any Loan Party or the Administrative  Agent  shall be  required by  any        Applicable Laws other than the Code to withhold or deduct any Taxes from any payment,        then (A) such Loan Party or the Administrative Agent, as required by such Laws, shall        withhold or make such deductions as are determined by it to be required based upon the        information and documentation it has received pursuant to subsection (e) below, (B) such        Loan Party or the Administrative Agent, to the extent required by such Laws, shall timely        pay  the  full  amount  withheld  or  deducted  to  the  relevant  Governmental  Authority  in        accordance with such Laws, and (C) to the extent that the withholding or deduction is made        on account of Indemnified Taxes, the sum payable by the applicable Loan Party shall be        increased as necessary so that after any required withholding or the making of all required        deductions  (including  deductions  applicable  to  additional  sums  payable  under  this        Section 3.01) the applicable Recipient receives an amount equal to the sum it would have        received had no such withholding or deduction been made.         (b)   Payment  of  Other  Taxes  by  the Borrower.   Without  limiting  the  provisions  of  subsection (a) above, the Borrower shall timely pay to the relevant Governmental Authority in  accordance with Applicable Law, or at the option of the Administrative Agent timely reimburse it  for the payment of, any Other Taxes.         (c)   Tax Indemnifications.               (i)   Without limiting the provisions of subsection (a) or (b) above, the Borrower        shall,  and  does  hereby,  indemnify  each  Recipient,  and  shall  make  payment  in  respect        thereof within 10 days after demand therefor, for the full amount of any Indemnified Taxes        (including Indemnified Taxes imposed or asserted on or attributable to amounts payable        under this Section 3.01) payable or paid by such Recipient or required to be withheld or        deducted from  a payment  to  such Recipient,  and any penalties, interest  and reasonable        expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes        were correctly or legally imposed or asserted by the relevant Governmental Authority.  A        certificate as to the amount of such payment or liability delivered to the Borrower by a        Lender  or  the  L/C  Issuer  (with  a  copy  to  the  Administrative  Agent),  or  by  the        Administrative Agent on its own behalf or on behalf of a Lender or the L/C Issuer, shall be        conclusive absent manifest error.  The Borrower shall, and does hereby, indemnify the    

 

         Administrative  Agent,  and  shall  make  payment  in  respect  thereof  within  10  days  after        demand therefor, for any amount which a Lender or the L/C Issuer for any reason fails to        pay indefeasibly to the Administrative Agent as required pursuant to Section 3.01(c)(ii)        below.               (ii)  Without limiting the provisions of subsection (a) or (b) above, each Lender        and the L/C Issuer shall, and does hereby, severally indemnify, and shall make payment in        respect thereof within 10 days after demand therefor, (x) the Administrative Agent against        any Indemnified Taxes attributable to such Lender or the L/C Issuer (but only to the extent        that  any  Loan  Party  has  not  already  indemnified  the  Administrative  Agent  for  such        Indemnified Taxes and without limiting the obligation of the Loan Party to do so), (y) the        Administrative Agent and the Loan Party, as applicable, against any Taxes attributable to        such Lender’s  failure to  comply with the provisions  of Section 10.06(d) relating  to  the        maintenance of a Participant Register and (z) the Administrative Agent and the Loan Party,        as applicable, against any Excluded Taxes attributable to such Lender or the L/C Issuer, in        each  case,  that  are  payable  or  paid  by  the  Administrative  Agent  or  a  Loan  Party  in        connection with any Loan Document, and any reasonable expenses arising therefrom or        with  respect  thereto, whether  or  not  such  Taxes  were  correctly  or  legally  imposed  or        asserted by the relevant Governmental Authority.  A certificate as to the amount of such        payment or liability delivered to any Lender or the L/C Issuer by the Administrative Agent        shall  be  conclusive  absent  manifest  error.   Each  Lender  and  the  L/C  Issuer  hereby        authorizes the Administrative Agent to set off and apply any and all amounts at any time        owing to such Lender or the L/C Issuer, as the case may be, under this Agreement or any        other  Loan  Document  against  any  amount  due  to  the  Administrative  Agent  under  this        clause (ii).         (d)   Evidence of Payments.  Upon request by the Borrower or the Administrative Agent,  as the case may be, after any payment of Taxes by the Borrower or by the Administrative Agent  to a Governmental Authority as provided in this Section 3.01, the Borrower shall deliver to the  Administrative Agent or the Administrative Agent shall deliver to the Borrower, as the case may  be, the original or a certified copy of a receipt issued by such Governmental Authority evidencing  such payment, if applicable, a copy of any return required by Laws to report such payment or other  evidence of such payment reasonably satisfactory to the Borrower or the Administrative Agent, as  the case may be.         (e)   Status  of  Lenders;  Tax  Documentation.   (i) Any  Lender  that  is  entitled  to  an  exemption from or reduction of withholding Tax with respect to payments made under any Loan  Document  shall  deliver  to  the  Borrower  and  the  Administrative  Agent,  at  the  time  or  times  reasonably requested by the Borrower or the Administrative Agent, such properly completed and  executed documentation prescribed by Applicable Law or the taxing authorities of a jurisdiction  pursuant to such Applicable Law or reasonably requested by the Borrower or the Administrative  Agent  as  will  permit  such  payments  to  be  made  without  withholding  or  at  a  reduced  rate  of  withholding.   In  addition,  any  Lender,  if  reasonably  requested  by  the  Borrower  or  the  Administrative Agent, shall deliver such other documentation prescribed by Applicable Law or  reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or  the  Administrative  Agent  to  determine  whether  or  not  such  Lender  is  subject  to  backup  withholding or information reporting requirements.  Notwithstanding anything to the contrary in    

 

   the preceding two sentences, the completion, execution and submission of such documentation  (other than such documentation either (A) set forth in Section 3.01(e)(ii)(A), (ii)(B) and (ii)(D)  below or (B) required by Applicable Law other than the Code or the taxing  authorities of the  jurisdiction pursuant to such Applicable Law to comply with the requirements for exemption or  reduction of withholding tax in that jurisdiction) shall not be required if in the Lender’s reasonable  judgment such completion, execution or submission would subject such Lender to any material  unreimbursed cost or expense or would materially prejudice the legal or commercial position of  such Lender.               (i)   Without limiting the generality of the foregoing,                     (A)   any Lender that is a U.S. Person shall deliver to the Borrower and              the Administrative Agent on or prior to the date on which such Lender becomes a              Lender under this Agreement (and from time to time thereafter upon the reasonable              request of the Borrower or the Administrative Agent), executed originals of IRS              Form W-9  certifying  that  such  Lender  is  exempt  from  U.S.  federal  backup              withholding tax;                     (B)   any Foreign Lender shall, to the extent it is legally entitled to do so,              deliver to the Borrower and the Administrative Agent (in such number of copies as              shall be requested by the recipient) on or prior to the date on which such Foreign              Lender becomes a Lender under this Agreement (and from time to time thereafter              upon  the  reasonable  request of  the  Borrower  or  the  Administrative  Agent),              whichever of the following is applicable:                           (I)   in the case of a Foreign Lender claiming the benefits of an                    income tax treaty to which the United States is a party (x) with respect to                    payments of interest under any Loan Document, executed originals of IRS                    Form  W-8BEN  or  IRS  Form  W-8BEN-E (or  any  successor  form)                    establishing an exemption from, or reduction of, U.S. federal withholding                    Tax pursuant to the “interest” article of such tax treaty and (y) with respect                    to any other applicable payments under any Loan Document, IRS Form W-                   8BEN or IRS Form W-8BEN-E  (or any successor form) establishing  an                    exemption from, or reduction of, U.S. federal withholding Tax pursuant to                    the “business profits” or “other income” article of such tax treaty;                           (II)  executed originals of IRS Form W-8ECI;                           (III) in the case of a Foreign Lender claiming the benefits of the                    exemption  for  portfolio  interest  under  Section 881(c)  of  the  Code,  (x) a                    certificate substantially in the form of Exhibit H-1 to the effect that such                    Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A)                    of the Code, a “10 percent shareholder” of the Borrower within the meaning                    of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation”                    described  in Section 881(c)(3)(C)  of  the  Code  (a  “U.S.  Tax  Compliance                    Certificate”) and (y) executed originals of IRS Form W-8BEN or IRS Form                    W-8BEN-E (or any successor form); or    

 

                           (IV)  to the extent a Foreign Lender is not the beneficial owner,                    executed  originals  of  IRS  Form W-8IMY,  accompanied  by  IRS  Form                    W-8ECI, IRS Form W-8BEN or IRS Form W-8BEN-E (or any successor                    form),  a  U.S.  Tax  Compliance  Certificate  substantially  in  the  form  of                    Exhibit H-2 or Exhibit H-3,  IRS  Form  W-9,  and/or  other  certification                    documents from each beneficial owner, as applicable; provided that if the                    Foreign Lender is a partnership and one or more direct or indirect partners                    of such Foreign Lender are claiming the portfolio interest exemption, such                    Foreign  Lender  may  provide  a  U.S.  Tax  Compliance  Certificate                    substantially in the form of Exhibit H-4 on behalf of each such direct and                    indirect partner;                     (C)   any Foreign Lender shall, to the extent it is legally entitled to do so,              deliver to the Borrower and the Administrative Agent (in such number of copies as              shall be requested by the recipient) on or prior to the date on which such Foreign              Lender becomes a Lender under this Agreement (and from time to time thereafter              upon the reasonable request of the Borrower or the Administrative Agent), executed              originals of any other form prescribed by Applicable Law as a basis for claiming              exemption from or a reduction in U.S. federal withholding Tax, duly completed,              together  with  such  supplementary  documentation  as  may  be  prescribed  by              applicable law to permit the Borrower or the Administrative Agent to determine the              withholding or deduction required to be made; and                     (D)   if a payment made to a Lender under any Loan Document would be              subject to U.S. federal withholding Tax imposed by FATCA if such Lender were              to fail to comply with the applicable reporting requirements of FATCA (including              those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such              Lender shall deliver to the Borrower and the Administrative Agent at the time or              times  prescribed  by  law  and  at  such  time  or  times  reasonably  requested  by  the              Borrower  or  the  Administrative  Agent  such  documentation  prescribed  by              applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code)              and such additional documentation reasonably requested by the Borrower or the              Administrative Agent as may be necessary for the Borrower and the Administrative              Agent to comply with their obligations under FATCA and to determine that such              Lender has complied with such Lender’s obligations under FATCA or to determine              the amount to deduct and withhold from such payment.  Solely for purposes of this              clause (D), “FATCA” shall include any amendments made to FATCA after the date              of this Agreement.               (ii)  Each Lender agrees that if any form or certification it previously delivered        pursuant to this Section 3.01 expires or becomes obsolete or inaccurate in any respect, it        shall  update  such  form  or  certification  or  promptly  notify  the  Borrower  and  the        Administrative Agent in writing of its legal inability to do so.         (f)   Treatment of Certain Refunds.  Unless required by Applicable Laws, at no time  shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of a  Lender or the L/C Issuer, or have any obligation to pay to any Lender or the L/C Issuer, any refund    

 

   of Taxes withheld or deducted from funds paid for the account of such Lender or the L/C Issuer,  as the case may be.  If any Recipient determines, in its sole discretion exercised in good faith, that  it has received a refund of any Taxes as to which it has been indemnified by any Loan Party or  with respect to which any Loan Party has paid additional amounts pursuant to this Section 3.01, it  shall pay to such Loan Party an amount equal to such refund (but only to the extent of indemnity  payments made, or additional amounts paid, by a Loan Party under this Section 3.01 with respect  to  the  Taxes  giving  rise  to  such  refund),  net  of  all  out-of-pocket  expenses  (including  Taxes)  incurred  by  such  Recipient,  and  without  interest  (other  than  any  interest  paid  by  the  relevant  Governmental Authority with respect to such refund), provided that each Loan Party, upon the  request  of  the  Recipient,  agrees  to  repay  the  amount  paid  over  to  such  Loan  Party  (plus  any  penalties,  interest  or  other  charges  imposed  by  the  relevant  Governmental  Authority)  to  the  Recipient  in  the  event  the  Recipient  is  required  to  repay  such  refund  to  such  Governmental  Authority.   Notwithstanding  anything  to  the  contrary  in  this  subsection,  in  no  event  will  the  applicable Recipient be required to pay any amount to such Loan Party pursuant to this subsection  the payment of which would place the Recipient in a less favorable net after-Tax position than  such Recipient would have been in if the Tax subject to indemnification and giving rise to such  refund had not been deducted, withheld or otherwise imposed and the indemnification payments  or additional amounts with respect to such Tax had never been paid.  This subsection shall not be  construed to  require  any Recipient  to  make  available its  tax returns  (or  any other information  relating to its taxes that it deems confidential) to any Loan Party or any other Person.         (g)   Survival.   Each  party’s  obligations  under  this Section 3.01 shall  survive  the  resignation or replacement of the Administrative Agent or any assignment of rights by, or the  replacement of, a Lender or the L/C Issuer, the termination of the Commitments and the repayment,  satisfaction or discharge of all other Obligations.         (h)   FATCA  Authorization.   For  purposes  of  determining  withholding  Taxes  under  FATCA, from and after the Closing Date, the Borrower and the Administrative Agent shall treat  (and  the  Lenders  hereby  authorize  the  Administrative  Agent  to  treat)  this  Agreement  as  not  qualifying  as  a  “grandfathered  obligation”  within  the  meaning  of  Treasury  Regulation  Section 1.1471-2(b)(2)(i).         3.02  Illegality.  If any Lender determines that any Law has made it unlawful, or that any  Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending  Office to make, maintain or fund or charge interest with respect to any Credit Extension, or to  determine or charge interest rates based upon the Eurodollar Rate, or any Governmental Authority  has imposed material restrictions on the authority of such Lender to purchase or sell, or to take  deposits of, Dollars in the London interbank market, then, on notice thereof by such Lender to the  Borrower through the Administrative Agent, (i) any obligation of such Lender to make or continue  Eurodollar Rate Loans or to convert Base Rate Loans to Eurodollar Rate Loans shall be suspended,  and (ii) if such notice asserts the illegality of such Lender making or maintaining Base Rate Loans  the interest rate on which is determined by reference to the Eurodollar Rate component of the Base  Rate, the interest rate on which Base Rate Loans of such Lender shall, if necessary to avoid such  illegality, be determined by the Administrative Agent without reference to the Eurodollar Rate  component of the Base Rate, in each case until such Lender notifies the Administrative Agent and  the  Borrower  that  the  circumstances  giving  rise  to  such  determination  no  longer  exist.   Upon  receipt of such notice, (x) the Borrower shall, upon demand from such Lender (with a copy to the    

 

   Administrative Agent), prepay or, if applicable, convert all Eurodollar Rate Loans of such Lender  to Base Rate Loans (the interest rate on which Base Rate Loans of such Lender shall, if necessary  to  avoid  such  illegality,  be  determined  by  the  Administrative  Agent  without  reference  to  the  Eurodollar Rate component of the Base Rate), either on the last day of the Interest Period therefor,  if such Lender may lawfully continue to maintain such Eurodollar Rate Loans to such day, or  immediately, if such Lender may not lawfully continue to maintain such Eurodollar Rate Loans  and (y) if such notice asserts the illegality of such Lender determining or charging interest rates  based  upon  the  Eurodollar  Rate,  the  Administrative  Agent  shall  during  the  period  of  such  suspension compute the Base Rate applicable to such Lender without reference to the Eurodollar  Rate component thereof until the Administrative Agent is advised in writing by such Lender that  it  is  no  longer  illegal for  such  Lender  to  determine or  charge  interest  rates  based  upon  the  Eurodollar Rate.  Upon any such prepayment or conversion, the Borrower shall also pay accrued  interest on the amount so prepaid or converted, together with any additional amounts required  pursuant to Section 3.05.         3.03  Inability to Determine Rates.  If the Required Lenders determine that for any  reason in connection with any request for a Eurodollar Rate Loan or a conversion to or continuation  thereof that (a) Dollar deposits are not being offered to banks in the London interbank eurodollar  market for the applicable amount and Interest Period of such Eurodollar Rate Loan, (b) adequate  and reasonable means do not exist for determining the Eurodollar Rate for any requested Interest  Period  with  respect  to  a  proposed  Eurodollar  Rate  Loan  or  in  connection  with  an  existing  or  proposed Base Rate Loan, or (c) the Eurodollar Rate for any requested Interest Period with respect  to a proposed Eurodollar Rate Loan does not adequately and fairly reflect the cost to such Lenders  of funding such Loan, the Administrative Agent will promptly so notify the Borrower and each  Lender.  Thereafter, (x) the obligation of the Lenders to make or maintain Eurodollar Rate Loans  shall be suspended, and (y) in the event of a determination described in the preceding sentence  with respect to the Eurodollar Rate component of the Base Rate, the utilization of the Eurodollar  Rate  component  in  determining  the  Base  Rate  shall  be  suspended,  in  each  case  until  the  Administrative Agent (upon the instruction of the Required Lenders) revokes such notice.  Upon  receipt  of  such  notice,  the  Borrower  may  revoke  any  pending  request  for  a  Borrowing  of,  conversion to or continuation of Eurodollar Rate Loans or, failing that, will be deemed to have  converted such request into a request for a Borrowing of Base Rate Loans in the amount specified  therein.         3.04  Increased Costs; Reserves on Eurodollar Rate Loans.         (a)   Increased Costs Generally.  If any Change in Law shall:               (i)   impose,  modify  or  deem  applicable  any  reserve,  special  deposit,        compulsory loan, insurance charge or similar requirement against assets of, deposits with        or for the account  of, or credit extended or participated in  by, any Lender (except  any        reserve requirement contemplated by Section 3.04(e)) or the L/C Issuer;               (ii)  subject  any  Recipient  to  any  Taxes  (other  than  (A) Indemnified  Taxes,        (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes  and        (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments,     

 

         or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto;        or               (iii) impose on any Lender or the L/C Issuer or the London interbank market any        other condition, cost or expense affecting this Agreement or Eurodollar Rate Loans made        by such Lender or any Letter of Credit or participation therein;   and the result of any of the foregoing shall be to increase the cost to such Lender of making,  converting to, continuing or maintaining any Loan the interest on which is determined by reference  to the Eurodollar Rate (or of maintaining its obligation to make any such Loan), or to increase the  cost to such Lender or the L/C Issuer of participating in, issuing or maintaining any Letter of Credit  (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the  amount of any sum received or receivable by such Lender or the L/C Issuer hereunder (whether of  principal, interest or any other amount) then, upon request of such Lender or the L/C Issuer, the  Borrower will pay to such Lender or the L/C Issuer, as the case may be, such additional amount  or  amounts  as  will  compensate  such  Lender  or  the  L/C  Issuer,  as  the  case  may  be,  for  such  additional costs incurred or reduction suffered.         (b)   Capital Requirements.  If any Lender or the L/C Issuer determines that any Change  in Law affecting such Lender or the L/C Issuer or any Lending Office of such Lender or such  Lender’s or the L/C Issuer’s holding company, if any, regarding capital or liquidity requirements  has or would have the effect of reducing the rate of return on such Lender’s or the L/C Issuer’s  capital  or  on  the  capital  of  such  Lender’s  or  the  L/C  Issuer’s  holding  company,  if  any,  as  a  consequence  of  this  Agreement,  the  Commitments  of  such  Lender  or  the  Loans  made  by,  or  participations in Letters of Credit or Swing Line Loans held by, such Lender, or the Letters of  Credit issued by the L/C Issuer, to a level below that which such Lender or the L/C Issuer or such  Lender’s or the L/C Issuer’s holding company could have achieved but for such Change in Law  (taking  into  consideration  such  Lender’s or  the  L/C  Issuer’s  policies  and  the  policies  of  such  Lender’s or the L/C Issuer’s holding company with respect to capital adequacy and liquidity), then  from time to time the Borrower will pay to such Lender or the L/C Issuer, as the case may be, such  additional amount or amounts as will compensate such Lender or the L/C Issuer or such Lender’s  or the L/C Issuer’s holding company for any such reduction suffered.         (c)   Certificates for Reimbursement.  A certificate of a Lender or the L/C Issuer setting  forth the amount or amounts necessary to compensate such Lender or the L/C Issuer or its holding  company, as the case may be, as specified in subsection (a) or (b) of this Section and delivered to  the Borrower shall be conclusive absent manifest error.  The Borrower shall pay such Lender or  the L/C Issuer, as the case may be, the amount shown as due on any such certificate within 10 days  after receipt thereof.         (d)   Delay in Requests.  Failure or delay on the part of any Lender or the L/C Issuer to  demand compensation pursuant to the foregoing provisions of this Section shall not constitute a  waiver of such Lender’s or the L/C Issuer’s right to demand such compensation, provided that the  Borrower shall not be required to compensate a Lender or the L/C Issuer pursuant to the foregoing  provisions of this Section for any increased costs incurred or reductions suffered more than nine  months  prior  to  the  date  that  such  Lender  or  the  L/C  Issuer,  as  the  case  may  be,  notifies  the  Borrower of the Change in  Law giving rise to  such increased costs or reductions  and of such    

 

   Lender’s or the L/C Issuer’s intention to claim compensation therefor (except that, if the Change  in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period  referred to above shall be extended to include the period of retroactive effect thereof).         (e)   Additional Reserve Requirements.  The Borrower shall pay to each Lender, (i) as  long  as  such Lender shall be required to  maintain reserves  with  respect  to liabilities or assets  consisting  of  or  including  Eurocurrency  funds  or  deposits  (currently  known  as  “Eurocurrency  liabilities”), additional interest on the unpaid principal amount of each Eurodollar Rate Loan equal  to the actual costs of such reserves allocated to such Loan by such Lender (as determined by such  Lender in good faith, which determination shall be conclusive), and (ii) as long as such Lender  shall be required to comply with any reserve ratio requirement or analogous requirement of any  other central banking or financial regulatory authority imposed in respect of the maintenance of  the Commitments or the funding of the Eurodollar Rate Loans, such additional costs (expressed as  a percentage per annum and rounded upwards, if necessary, to the nearest five decimal places)  equal to the actual costs allocated to such Commitment or Loan by such Lender (as determined by  such Lender in good faith, which determination shall be conclusive absent manifest error), which  in each case shall be due and payable on each date on which interest is payable on such Loan,  provided the  Borrower  shall  have  received  at  least  10  days’  prior  notice  (with  a  copy  to  the  Administrative Agent) of such additional interest or costs from such Lender.  If a Lender fails to  give notice 10 days prior to the relevant Interest Payment Date, such additional interest or costs  shall be due and payable 10 days from receipt of such notice.         3.05  Compensation  for  Losses.  Upon  demand  of  any  Lender  (with  a  copy  to  the  Administrative Agent) from time to time, the Borrower shall promptly compensate such Lender  for and hold such Lender harmless from any loss, cost or expense incurred by it as a result of:         (a)   any continuation, conversion, payment or prepayment of any Loan other than a  Base Rate Loan on a day other than the last day of the Interest Period for such Loan (whether  voluntary, mandatory, automatic, by reason of acceleration, or otherwise);         (b)   any failure by the Borrower (for a reason other than the failure of such Lender to  make a Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate Loan on the  date or in the amount notified by the Borrower;         (c)   any assignment of a Eurodollar Rate Loan on a day other than the last day of the  Interest Period therefor as a result of a request by the Borrower pursuant to Section 10.13; or         (d)   any failure by the Borrower to make payment of any drawing under any Letter of  Credit (or interest due thereon) denominated in an Alternative Currency as required hereunder or  under the relevant Letter of Credit on its scheduled due date;   including any loss of anticipated profits and any loss or expense arising from the liquidation or  reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the  deposits  from  which  such  funds  were  obtained.   The  Borrower  shall  also  pay  any  customary  administrative fees charged by such Lender in connection with the foregoing.   For  purposes  of  calculating  amounts  payable  by  the Borrower  to  the  Lenders  under  this  Section 3.05, each Lender shall be deemed to have funded each Eurodollar Rate Loan made by it    

 

   at the Eurodollar Rate for such Loan by a matching deposit or other borrowing in the London  interbank eurodollar market for a comparable amount and for a comparable period, whether or not  such Eurodollar Rate Loan was in fact so funded.         3.06  Mitigation Obligations; Replacement of Lenders.         (a)   Designation of a Different Lending Office.  If any Lender requests compensation  under Section 3.04,  or  the  Borrower  is  required  to  pay  any  Indemnified  Taxes  or additional  amounts to any Lender, the L/C Issuer or any Governmental Authority for the account of any  Lender or the L/C Issuer pursuant to Section 3.01, or if any Lender gives a notice pursuant to  Section 3.02, then at the request of the Borrower such Lender or the L/C Issuer, as applicable, shall  use reasonable efforts to designate a different Lending Office for funding or booking its Loans  hereunder or to assign its rights and obligations hereunder to another of its offices, branches or  affiliates, if, in the judgment of such Lender or the L/C Issuer, such designation or assignment  (i) would eliminate or reduce amounts payable pursuant to Section 3.01 or 3.04, as the case may  be, in the future, or eliminate the need for the notice pursuant to Section 3.02, as applicable, and  (ii) in each case, would not subject such Lender or the L/C Issuer, as the case may be, to any  unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender or the  L/C Issuer, as the  case  may be.  The Borrower  hereby  agrees  to  pay all reasonable  costs and  expenses incurred by any Lender or the L/C Issuer in connection with any such designation or  assignment.         (b)   Replacement of Lenders.  If any Lender requests compensation under Section 3.04,  or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender  or any Governmental Authority for the account of any Lender pursuant to Section 3.01 and, in  each  case,  such  Lender  has  declined  or  is  unable  to  designate  a  different  lending  office  in  accordance with Section 3.06(a) within 15 Business Days after the date of the Borrower’s request  to such Lender pursuant to this Section 3.06, the Borrower may replace such Lender in accordance  with Section 10.13.         3.07  Survival.  All of the Borrower’s obligations  under this Article III shall survive  termination of the Aggregate Commitments, repayment of all other Obligations hereunder and  resignation of the Administrative Agent.         3.08  LIBOR  Successor  Rate.  Notwithstanding  anything  to  the  contrary  in  this  Agreement  or  any  other  Loan  Documents,  if  the  Administrative  Agent  determines  (which  determination shall be conclusive and binding upon all parties hereto absent manifest error), or the  Borrower or Required Lenders notify the Administrative Agent (with, in the case of the Required  Lenders,  a  copy  to  Borrower)  that  the  Borrower  or  Required  Lenders  (as  applicable)  have  determined (which determination likewise shall be conclusive and binding upon all parties hereto  absent manifest error), that:         (a)   adequate  and  reasonable  means  do  not  exist  for  ascertaining  LIBOR  for  any  requested Interest Period, including, without limitation, because the LIBOR Screen Rate is not  available or published on a current basis and such circumstances are unlikely to be temporary; or     

 

         (b)   the administrator of the LIBOR Screen Rate or a Governmental Authority having  or  purporting  to  have  jurisdiction  over  the  Administrative  Agent  has  made  a  public  statement  identifying a specific date after which LIBOR or the LIBOR Screen Rate shall no longer be made  available, or used for determining the interest rate of loans, provided, that, at the time of such  statement, there is no successor administrator that is satisfactory to the Administrative Agent, that  will  continue  to  provide  LIBOR  after  such  specific  date  (such  specific  date,  the  “Scheduled  Unavailability Date”), or         (c)   syndicated loans currently being executed, or that include language similar to that  contained in this Section, are being executed or amended (as applicable) to incorporate or adopt a  new benchmark interest rate to replace LIBOR,    then, reasonably promptly after such determination by the Administrative Agent or receipt by the  Administrative Agent of such notice, as applicable, the Administrative Agent and the Borrower  may  amend  this  Agreement  solely  for  purposes  of  replacing  LIBOR  in  accordance  with  this  Section 3.08 with (x) one or more SOFR-Based Rates applicable to US dollar denominated loans  or (y) another alternate benchmark rate, giving due consideration to any evolving or then existing  convention for similar U.S. dollar denominated syndicated credit facilities for such alternative  benchmarks, and in each case, including any mathematical or other adjustments to such benchmark  giving  due  consideration  to  any  evolving  or  then  existing  convention  for  similar  U.S.  dollar  denominated syndicated credit facilities for such benchmarks, which adjustment or method for  calculating  such  adjustment  shall  be  published  on  an  information  service  as  selected  by  the  Administrative  Agent  from  time  to  time  in  its  reasonable  discretion  and  may  be  periodically  updated (the “Adjustment;” and any such proposed rate, a “LIBOR Successor Rate”), and any such  amendment shall become effective at 5:00 p.m. on the fifth Business Day after the Administrative  Agent shall have posted such proposed amendment to all Lenders and the Borrower unless, prior  to such time, Lenders comprising the Required Lenders have delivered to the Administrative Agent  written notice that such Required Lenders (A) in the case of an amendment to replace LIBOR with  a rate described in clause (x), object to the Adjustment; or (B) in the case of an amendment to  replace LIBOR with a rate described in clause (y), object to such amendment; provided that for  the avoidance of doubt, in the case of clause (A), the Required Lenders shall not be entitled to  object to any SOFR-Based Rate contained in any such amendment.  Such LIBOR Successor Rate  shall be applied in  a manner consistent  with  market  practice;  provided that  to  the extent such  market  practice  in  not  administratively  feasible  for  the  Administrative  Agent,  such  LIBOR  Successor  Rate  shall  be  applied  in  a  manner  as  otherwise  reasonably  determined  by  the  Administrative Agent.            (d)   If no LIBOR  Successor Rate has  been determined and the circumstances under  clause  (a) above  exist  or  the  Scheduled  Unavailability  Date  has  occurred  (as  applicable),  the  Administrative Agent will promptly so notify the Borrower and each Lender.  Thereafter, (x) the  obligation of the Lenders to make or maintain Eurodollar Rate Loans shall be suspended, (to the  extent of the affected Eurodollar Rate Loans  or  Interest  Periods),  and (y) the Eurodollar Rate  component shall no longer be utilized in determining the Base Rate.  Upon receipt of such notice,  the Borrower may revoke any pending request for a Borrowing of, conversion to or continuation  of Eurodollar Rate Loans (to the extent of the affected Eurodollar Rate Loans or Interest Periods)  without any obligation to pay any loss, cost or expense of any Lender pursuant to Section 3.05 or,     

 

   failing that, will be deemed to have converted such request into a request for a Borrowing of Base  Rate Loans (subject to the foregoing clause (y)) in the amount specified therein.         (e)   Notwithstanding  anything  else  herein,  any  definition  of  LIBOR  Successor  Rate  shall provide that in no event shall such LIBOR Successor Rate be less than zero for purposes of  this Agreement.         (f)   In  connection  with  the  implementation  of  a  LIBOR  Successor  Rate,  the  Administrative Agent will have the right to make LIBOR Successor Rate Conforming Changes  from  time  to  time  and,  notwithstanding  anything to  the  contrary  herein  or  in  any  other  Loan  Document, any amendments implementing such LIBOR Successor Rate Conforming Changes will  become  effective  without  any  further  action  or  consent  of  any  other  party  to  this  Agreement;  provided that, with respect to any such amendment effected, the Administrative Agent shall post  each such amendment implementing such LIBOR Successor Rate Conforming Changes to the  Lenders reasonably promptly after such amendment becomes effective.                                     ARTICLE IV.               CONDITIONS PRECEDENT TO CREDIT EXTENSIONS         4.01  Conditions of Initial Credit Extension.  The obligation of the L/C Issuer and each  Lender to make its initial Credit Extension hereunder is subject to satisfaction of the following  conditions precedent:         (a)   The  Administrative  Agent’s  receipt  of  the  following,  each  of  which  shall  be  originals or telecopies (followed promptly by originals) unless otherwise specified, each properly  executed by a Responsible Officer of the signing Loan Party, each dated the Closing Date (or, in  the case of certificates of governmental officials, a recent date before the Closing Date) and each  in form and substance satisfactory to the Administrative Agent and each of the Lenders:               (i)   executed  counterparts  of  this  Agreement  and  the  Guaranty,  sufficient  in        number for distribution to the Administrative Agent, each Lender and the Borrower;               (ii)  a Revolving Loan Note executed by the Borrower in favor of each Lender        requesting a Revolving Loan Note;               (iii) the Swing Line Note executed by the Borrower in favor of the Swing Line        Lender;               (iv)  such  certificates  of  resolutions  or  other  action,  incumbency  certificates        and/or other certificates of Responsible Officers of each Loan Party as the Administrative        Agent  may require evidencing  the identity, authority and capacity of each Responsible        Officer  thereof  authorized  to  act  as  a  Responsible  Officer  in  connection  with  this        Agreement and the other Loan Documents to which such Loan Party is a party;               (v)   such  documents  and  certifications  as  the  Administrative  Agent  may        reasonably require to evidence that each Loan Party is duly organized or formed, and that        each Loan Party is validly existing, in good standing and qualified to engage in business in    

 

         each jurisdiction where its ownership, lease or operation of properties or the conduct of its        business requires such qualification, except to the extent that failure to do so could not        reasonably be expected to have a Material Adverse Effect;               (vi)  a favorable opinion of Baker & McKenzie LLP, counsel to the Loan Parties,        Clarke  Gittens &  Farmer,  special  Barbados  counsel  for  HOT-Barbados,  and  Conyers,        Dill &  Pearman Limited,  special  Bermuda  counsel  for  Limited,  each  addressed  to  the        Administrative Agent and each Lender, as to such matters concerning the Loan Parties and        the Loan Documents as the Required Lenders may reasonably request;               (vii) a certificate of a Responsible Officer of each Loan Party either (A) attaching        copies of all consents, licenses and approvals required in connection with the execution,        delivery and performance by such Loan Party and the validity against such Loan Party of        the Loan Documents to which it is a party, and such consents, licenses and approvals shall        be in full force and effect, or (B) stating that no such consents, licenses or approvals are so        required;               (viii) a certificate signed by a Responsible Officer of Limited certifying (A) that        the conditions specified in Sections 4.02(a) and (b) have been satisfied, and (B) that there        has been no event or circumstance since the date of the Audited Financial Statements that        has had or could be reasonably expected to have, either individually or in the aggregate, a        Material  Adverse  Effect;  and  (C) a  pro  forma  calculation  of  the  Leverage  Ratio  (after        giving effect to the initial Credit Extension) as of the last day of the fiscal quarter of Limited        ended as of August 31, 2014;               (ix)  evidence  that all  Indebtedness  incurred  pursuant  to the  Existing  Credit        Agreement (other than the Existing Letters of Credit) shall have been repaid in full (or shall        be repaid substantially contemporaneously with the initial funding of Loans on the Closing        Date) and all commitments in connection therewith shall have terminated;               (x)   such other assurances, certificates, documents, consents or opinions as the        Administrative Agent,  the L/C Issuer, the Swing Line Lender or the Required Lenders        reasonably may require.         (b)   Any fees required to be paid on or before the Closing Date shall have been paid.         (c)   Unless waived by the Administrative Agent, the Borrower shall have paid all fees,  charges  and disbursements of counsel to the Administrative Agent (directly to such counsel if  requested by the Administrative Agent) to the extent invoiced prior to or on the Closing Date, plus  such additional amounts of such fees, charges and disbursements as shall constitute its reasonable  estimate  of  such  fees,  charges  and  disbursements  incurred  or  to  be  incurred  by  it  through  the  closing proceedings (provided that such estimate shall not thereafter preclude a final settling of  accounts between the Borrower and the Administrative Agent).         Without limiting the generality of the provisions of the last paragraph of Section 9.03, for  purposes of determining compliance with the conditions specified in this Section 4.01, each Lender  that has signed this Agreement shall be deemed to have consented to, approved or accepted or to  be satisfied with, each document or other matter required thereunder to be consented to or approved    

 

   by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received  notice from such Lender prior to the proposed Closing Date specifying its objection thereto.         4.02  Conditions to all Credit Extensions.  The obligation of each Lender to honor any  Request for Credit Extension (other than a Revolving Loan Notice requesting only a conversion  of Revolving Loans to the other Type, or a continuation of Eurodollar Rate Loans) is subject to  the following conditions precedent:         (a)   The  representations  and  warranties  of  the  Borrower  and  each  other  Loan  Party  contained in Article V or any other Loan Document, or which are contained in  any document  furnished  at  any  time  under  or  in  connection  herewith  or  therewith,  shall (i)  with  respect  to  representations and warranties that contain a materiality qualification, be true and correct on and  as of the date of such Credit Extension and (ii) with respect to representations and warranties that  do not contain a materiality qualification, be true and correct in all material respects on and as of  the date of such Credit Extension, except to the extent that such representations and warranties  specifically refer to an earlier date, in which case they shall be true and correct in all material  respects  (or in the case of such representations and warranties that are subject to a materiality  qualification,  in  all  respects) as  of  such  earlier  date,  and  except  that  for  purposes  of  this  Section 4.02,  the  representations  and  warranties  contained  in  subsections (a)  and  (b)  of  Section 5.05 shall  be  deemed  to  refer  to  the  most  recent  statements  furnished  pursuant  to  clauses (a) and (b) of Section 6.01.         (b)   No Default shall exist, or would result from such proposed Credit Extension or  from the application of the proceeds thereof.         (c)   The  Administrative  Agent  and,  if  applicable,  the  L/C  Issuer  or  the  Swing  Line  Lender, if no Autoborrow Agreement is then in effect, shall have received a Request for Credit  Extension in accordance with the requirements hereof.         (d)   In the case of a Letter of Credit to be denominated in an Alternative Currency, there  shall not have occurred any change in national or international financial, political or economic  conditions or currency exchange rates or exchange controls which in the reasonable opinion of the  Administrative Agent or the L/C Issuer would make it impracticable for such Letter of Credit to  be denominated in the relevant Alternative Currency.         Each Request for Credit Extension (other than a Revolving Loan Notice requesting only a  conversion of Revolving Loans to the other Type or a continuation of Eurodollar Rate Loans) and  each Swing Line Borrowing pursuant to an Autoborrow Agreement submitted by the Borrower  shall  be  deemed  to  be  a  representation  and  warranty  that  the  conditions  specified  in  Sections 4.02(a) and (b) have  been  satisfied  on  and  as  of  the  date  of  the  applicable  Credit  Extension.                                    ARTICLE V.                     REPRESENTATIONS AND WARRANTIES         Limited  and  the  Borrower  represent  and  warrant  to  the  Administrative  Agent  and  the  Lenders that:     

 

         5.01  Existence, Qualification and Power; Compliance with Laws.  Each Loan Party  and each Subsidiary thereof (a) is duly organized or formed, validly existing and in good standing  under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power  and authority and all requisite governmental licenses, authorizations, consents and approvals to  (i) own its assets and carry on its business and (ii) execute, deliver and perform its obligations  under the Loan Documents to which it is a party, (c) is duly qualified and is licensed and in good  standing under the Laws of each jurisdiction where its ownership, lease or operation of properties  or the conduct of its business requires such qualification or license, and (d) is in compliance with  all Laws; except in each case referred to in clause (b)(i), (c) or (d), to the extent that failure to do  so could not reasonably be expected to have a Material Adverse Effect.         5.02  Authorization; No Contravention.  The execution, delivery and performance by  each Loan Party of each Loan Document to which such Person is party, have been duly authorized  by all necessary corporate or other organizational action, and do not and will not (a) contravene  the terms of any of such Person’s Organization Documents; (b) conflict with or result in any breach  or contravention of, or the creation of any Lien under, or require any payment to be made under  (i) any Contractual Obligation to which such Person is a party or affecting such Person or the  properties of such Person or any of its Subsidiaries or (ii) any order, injunction, writ or decree of  any Governmental Authority or any arbitral award to which such Person or its property is subject;  or (c) violate any Law.  Each Loan Party and each of its Subsidiaries is in compliance with all  Contractual Obligations referred to in clause (b)(i), except to the extent that failure to do so could  not reasonably be expected to have a Material Adverse Effect.         5.03  Governmental  Authorization;  Other Consents.   No  approval,  consent,  exemption,  authorization,  or  other  action  by,  or  notice  to,  or  filing  with,  any  Governmental  Authority or any other Person is necessary or required in connection with the execution, delivery  or performance by, or enforcement against, any Loan Party of this Agreement or any other Loan  Document.         5.04  Binding Effect.  This Agreement has been, and each other Loan Document, when  delivered hereunder, will have been, duly executed and delivered by each Loan Party that is party  thereto.   This  Agreement  constitutes,  and  each  other  Loan  Document  when  so  delivered  will  constitute, a legal, valid and binding obligation of such Loan Party, enforceable against each Loan  Party that is party thereto in accordance with its terms, subject as to enforcement to any Debtor  Relief Laws and general equitable principles.         5.05  Financial Statements; No Material Adverse Effect.         (a)   The  Audited  Financial  Statements  (i) were  prepared  in  accordance  with  GAAP  consistently applied throughout the period covered thereby, except as otherwise expressly noted  therein;  (ii) fairly  present  in  all  material  respects  the  financial  condition  of  Limited  and  its  Subsidiaries as of the date thereof and their results of operations for the period covered thereby in  accordance  with  GAAP  consistently  applied  throughout  the  period  covered  thereby,  except  as  otherwise expressly noted therein; and (iii) show all material indebtedness and other liabilities,  direct or contingent, as required to be disclosed in an audited balance sheet (or the notes thereto)  prepared  in  accordance  with  GAAP,  of Limited  and  its  Subsidiaries  as  of  the  date  thereof,  including liabilities for taxes, material commitments and Indebtedness.    

 

         (b)   The  unaudited  consolidated  balance  sheet  of  Limited  and  its  Subsidiaries dated  August 31, 2014, and the related consolidated statements of income or operations, shareholders’  equity, and cash flows for the fiscal quarter ended on that date (i) were prepared in accordance  with  GAAP  consistently  applied  throughout  the  period  covered  thereby,  except  as  otherwise  expressly noted therein, and (ii) fairly present in all material respects the financial condition of  Limited and its Subsidiaries as of the date thereof and their results of operations for the period  covered thereby, subject, in  the case of clauses (i) and (ii), to  the absence of footnotes and to  normal year-end audit adjustments.         (c)   Since  the  date  of  the  Audited  Financial  Statements,  there  has  been  no  event  or  circumstance, either individually or in the aggregate, that has had, and continues to have, or could  reasonably be expected to have a Material Adverse Effect.         (d)   The consolidated forecasted balance sheet and statements of income and cash flows  of Limited and its Subsidiaries (collectively, the “Financial Projections”) delivered prior to the  Closing Date were prepared in good faith on the basis of the assumptions stated therein, which  assumptions were fair in light of the conditions existing at the time of delivery of such forecasts,  and represented, at the time of delivery, in all material respects Limited’s best estimate of its future  financial performance.  Nothing in this clause (d) shall be deemed to constitute an assurance by  Limited or its Subsidiaries that they will meet the results contained in the Financial Projections.         (e)   As  of  the Third  Amendment  Effective  Date,  neither  Limited  nor  any  of  its  Subsidiaries has any Off-Balance Sheet Liabilities.         5.06  Litigation.  There are no actions, suits, proceedings, claims or disputes pending or,  to  the  knowledge  of  Limited  after  due  and  diligent  investigation  prior  to  the  Closing  Date,  threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority,  by or against Limited or any of its Subsidiaries or against any of their properties or revenues that  (a) could reasonably affect or pertain to this Agreement or any other Loan Document, or any of  the  transactions  contemplated  hereby,  or  (b) either  individually  or  in  the  aggregate  could  reasonably be expected to have a Material Adverse Effect.         5.07  No Default.  Neither Limited nor any of its Subsidiaries is in default under or with  respect to any Contractual Obligation (including any License) that could, either individually or in  the aggregate, reasonably be expected to have a Material Adverse Effect.  No Default has occurred  and is continuing or would result from the consummation of the transactions contemplated by this  Agreement or any other Loan Document.         5.08  Ownership of Property; Liens.  Limited and each of its Subsidiaries has good  record  and  marketable  title  in  fee  simple  to,  or  valid  leasehold  interests  in, all  real  property  necessary or used in the ordinary conduct of its business, except for such defects in title as could  not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.   The property of Limited and its Subsidiaries is subject to no Liens, other than Liens permitted by  Section 7.01.         5.09  Environmental Compliance.  Limited and its Subsidiaries conduct in the ordinary  course of business  a review of the effect  of existing Environmental Laws and claims alleging    

 

   potential liability or responsibility for violation of any Environmental Law on their respective  businesses, operations and properties, and as a result thereof Limited has reasonably concluded  that such Environmental Laws and claims could not, individually or in the aggregate, reasonably  be expected to have a Material Adverse Effect.         5.10  Insurance.  The  properties  of  Limited  and  its  Subsidiaries  are  insured  with  financially sound and reputable insurance companies not Affiliates of Limited, in such amounts,  with such deductibles and covering such risks as are customarily carried by companies engaged in  similar  businesses  and  owning  similar  properties  in  localities  where  Limited  or  the  applicable  Subsidiary operates.         5.11  Taxes.  Limited and its Subsidiaries have filed all Federal and other material state  or other tax returns and reports required to be filed, and have paid all material amounts with respect  to Federal and material state and other taxes, assessments, fees and other governmental charges  levied or imposed upon them or their properties, income or assets otherwise due and payable,  except  those  which  are  being  contested  in  good  faith  by  appropriate  proceedings  diligently  conducted and for which adequate reserves have been provided in accordance with GAAP.  There  is no proposed tax assessment against Limited or any of its Subsidiaries that would, if made, have  a Material Adverse Effect.  As of the Third Amendment Effective Date, neither Limited nor any  of its Subsidiaries thereof is party to any tax sharing agreement.  As of the Closing Date, the  Federal Income tax liabilities of Limited and its Subsidiaries have been determined by the IRS and  paid for all tax years up to and including the tax year ending February 28, 2016.         5.12  ERISA Compliance.         (a)   Each Plan (other than any Multiemployer Plan) is in compliance in all material  respects with the applicable provisions of ERISA, the Code and other Federal or state Laws.  Each  Multiemployer Plan is in compliance with the applicable provisions of ERISA, the Code and other  Federal or state Laws, except for any non-compliance as could not, individually or in the aggregate,  reasonably be expected to have a Material Adverse Effect.  Each Pension Plan that is intended to  be a qualified plan under Section 401(a) of the Code has received a favorable determination letter  from  the  Internal  Revenue  Service  to  the  effect  that  the  form  of  such  Plan  is  qualified  under  Section 401(a)  of  the  Code  and  the  trust  related  thereto  has  been  determined  by  the  Internal  Revenue Service to be exempt from federal income tax under Section 501(a) of the Code, or an  application for such a letter is currently being processed by the Internal Revenue Service.  To the  knowledge of Limited and the Borrower, nothing has occurred that would prevent or reasonably  be expected to cause the loss of such tax-qualified status.         (b)   There are no pending or, to the knowledge of Limited and the Borrower, threatened  claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan  (other than any Multiemployer Plan) that could reasonably be expected to have a Material Adverse  Effect.  To the knowledge of Limited and the Borrower, there are no pending or threatened claims,  actions or lawsuits, or action by any Governmental Authority, with respect to any Multiemployer  Plan that could reasonably be expected to have a Material Adverse Effect. There has been no  prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan that  has resulted or could reasonably be expected to result in a Material Adverse Effect.     

 

         (c)   (i) No  ERISA  Event  has  occurred,  and  neither  the  Borrower  nor  any  ERISA  Affiliate is aware of any fact, event or circumstance that could reasonably be expected to constitute  or result in an ERISA Event with respect to any Pension Plan; (ii) the Borrower and each ERISA  Affiliate has met all applicable requirements under the Pension Funding Rules in respect of each  Pension Plan, and no waiver of the minimum funding standards under the Pension Funding Rules  has been applied for or obtained by the Borrower or any ERISA Affiliate; (iii) as of the most recent  valuation  date  for  any  Pension  Plan,  the  funding  target  attainment  percentage  (as  defined  in  Section 430(d)(2) of the Code) is 60% or higher and neither the Borrower nor any ERISA Affiliate  knows of any facts or circumstances that could reasonably be expected to cause the funding target  attainment percentage for any such plan to drop below 60% as of the most recent valuation date;  (iv) neither the Borrower nor any ERISA Affiliate has incurred any liability to the PBGC other  than for the payment of premiums, and there are no premium payments which have become due  that are unpaid; (v) neither the Borrower nor any ERISA Affiliate has engaged in a transaction that  could be subject to Section 4069 or Section 4212(c) of ERISA; and (vi) no Pension Plan has been  terminated by the plan administrator thereof nor by the PBGC, and no event or circumstance has  occurred or exists that could reasonably be expected to cause the PBGC to institute proceedings  under  Title IV  of  ERISA  to  terminate  any  Pension  Plan,  except  in  each  case  with  respect  to  clauses (i) through (vi) above where the occurrence or existence thereof could not, individually or  in the aggregate, reasonably be expected to have a Material Adverse Effect.         (d)   Neither the Borrower or any ERISA Affiliate maintains or contributes to, or has  any unsatisfied obligation to contribute to, or liability under, any active or terminated Pension Plan  other than (A) on the Closing Date, those listed on Schedule 5.12(d) hereto and (B) thereafter,  Pension Plans not otherwise prohibited by this Agreement.         (e)   The Borrower represents and warrants as of the Third Amendment Effective Date  that the Borrower is and will not be using “plan assets” (within the meaning of Section 3(42) of  ERISA or otherwise) of one or more Benefit Plans with the Borrower’s entrance into, participation  in, administration of and performance of the Loans, the Letters of Credit, the Commitments or this  Agreement.         5.13  Subsidiaries;  Equity  Interests.  As  of  the Third  Amendment  Effective Date,  Limited has no Subsidiaries other than those specifically disclosed in Part (a) of Schedule 5.13,  and all of the outstanding Equity Interests in such Subsidiaries have been validly issued, are fully  paid and non-assessable and are owned by a Loan Party in the amounts specified on Part (a) of  Schedule 5.13 free and clear of all Liens.  As of the Third Amendment Effective Date, Limited  and its Subsidiaries have no equity investments in any other corporation or entity (other than a  Subsidiary)  other  than  those  specifically  disclosed  in  Part (b)  of Schedule 5.13.   All  of  the  outstanding Equity Interests in the Borrower has been validly issued and are fully paid and non- assessable.  As of the Third Amendment Effective Date, Part (a) of Schedule 5.13 sets forth as to  each Subsidiary of Limited the percentage of shares or interests of each class of its Equity Interests  owned by Limited and each other Subsidiary.         5.14  Margin Regulations; Investment Company Act.         (a)   The  Borrower  is  not  engaged  and  will  not  engage,  principally  or  as  one  of  its  important activities, in the business of purchasing or carrying margin stock (within the meaning of    

 

   Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying  margin stock.  Following the application of the proceeds of each Borrowing or drawing under each  Letter of Credit, not more than 25% of the value of the assets (either of Limited only or of Limited  and  its  Subsidiaries  on  a  consolidated  basis)  subject  to  the  provisions  of Section 7.01 or  Section 7.05 or  subject  to  any  restriction  contained  in  any  agreement or  instrument  between  Limited and any Lender or any Affiliate of any Lender relating to Indebtedness and within the  scope of Section 8.01(e) will be margin stock.         (b)   Neither  Limited,  the  Borrower  or  any  of  their  respective  Subsidiaries  is  or  is  required to be registered as an “investment company” under the Investment Company Act of 1940.         5.15  Disclosure.  Limited and the Borrower has disclosed to the Administrative Agent  and the Lenders all agreements, instruments and corporate or other restrictions to which they or  any of their Subsidiaries is subject, and all other matters known to it, that, individually or in the  aggregate, could reasonably be expected to result in a Material Adverse Effect.  No report, financial  statement, certificate or other information furnished (whether in writing or orally) by or on behalf  of any Loan Party to the Administrative Agent or any Lender in connection with the transactions  contemplated hereby and the negotiation of this Agreement or delivered hereunder or under any  other  Loan  Document  (in  each  case,  as  modified  or  supplemented  by  other  information  so  furnished) contains any material misstatement of fact or omits to state any material fact necessary  to make the statements therein, in the light of the circumstances under which they were made, not  misleading; provided that,  with  respect  to  projected  financial  information,  Limited  and  the  Borrower represent only that such information was prepared in good faith based upon assumptions  believed to be reasonable at the time of delivery thereof.         5.16  Compliance with Laws.  Each of Limited and each Subsidiary is in compliance in  all material respects with the requirements of all Laws and all orders, writs, injunctions and decrees  applicable to it or to its properties, except in such instances in which (a) such requirement of Law  or order, writ, injunction or decree is being contested in good faith by appropriate proceedings  diligently conducted or (b) the failure to comply therewith, either individually or in the aggregate,  could not reasonably be expected to have a Material Adverse Effect.         5.17  Intellectual Property; Licenses, Etc.  Limited and its Subsidiaries own, or possess  the right to use, all of the trademarks, service marks, trade names, copyrights, patents, patent rights,  franchises,  licenses  and  other  intellectual  property  rights  (collectively,  “IP  Rights”)  that  are  reasonably necessary for the operation of their respective businesses, without conflict with the  rights of any other Person, except to the extent that the failure to do so could not reasonably be  expected  to  have  a  Material  Adverse  Effect.   No  slogan  or  other  advertising  device,  product,  process,  method,  substance,  part  or  other  material  now  employed,  or  now  contemplated  to  be  employed, by Limited or any Subsidiary infringes upon any rights held by any other Person, except  to the extent that such infringement could not reasonably be expected to have a Material Adverse  Effect.  No claim or litigation regarding any of the foregoing is pending or, to the best knowledge  of Limited, threatened, which, either individually or in the aggregate, could reasonably be expected  to have a Material Adverse Effect.         5.18  Solvency.  Limited and its Subsidiaries, on a consolidated basis, are Solvent.  The  Loan Parties, taken together as a whole, are Solvent.    

 

         5.19  Taxpayer Identification Number.  As of the Second Amendment Effective Date,  the Borrower’s true and correct U.S. taxpayer identification number is set forth on Schedule 10.02.         5.20  Sanctions Concerns and Anti-Corruption Laws.         (a)   Sanctions Concerns.  No Loan Party, nor any Subsidiary, nor, to the knowledge  of the Loan Parties and their Subsidiaries, any director, officer, employee or controlled Affiliate  thereof, is an individual or entity that is, or is owned or controlled by one or more individuals or  entities that are (i) currently the subject or target of any applicable Sanctions, (ii) included on  OFAC’s  List  of  Specially  Designated  Nationals  or  HMT’s  Consolidated  List  of  Financial  Sanctions Targets, or any similar list enforced by any other relevant sanctions authority or (iii)  located,  organized  or  resident  in  a  Designated  Jurisdiction.  Limited  and  its  Subsidiaries  have  conducted their businesses in compliance with all applicable Sanctions and have instituted and  maintained  policies  and  procedures  designed  to  promote  and  achieve  compliance  with  such  Sanctions.         (b)   Anti-Corruption  Laws.   Limited  and  its  Subsidiaries  have  conducted  their  business in compliance in all material respects with the United States Foreign Corrupt Practices  Act of 1977, the UK Bribery Act 2010 and other applicable anti-corruption legislation in other  jurisdictions, and have instituted and maintained policies and procedures designed to promote and  achieve compliance with such laws.         5.21  Representations as to Foreign Obligors.           (a)   Each Foreign Obligor is subject to civil and commercial Laws with respect to its  obligations under this Agreement and the other Loan Documents to which it is a party (collectively  as to such Foreign Obligor, the “Applicable Foreign Obligor Documents”), and the execution,  delivery and performance by such Foreign Obligor of the Applicable Foreign Obligor Documents  constitute and will constitute private and commercial acts and not public or governmental acts.   Neither such Foreign Obligor nor any of its property has any immunity from jurisdiction of any  court or from any legal process (whether through service or notice, attachment prior to judgment,  attachment in aid of execution, execution or otherwise) under the Laws of the jurisdiction in which  such Foreign Obligor is organized and existing in respect of its obligations under the Applicable  Foreign Obligor Documents.         (b)   The  Applicable  Foreign  Obligor  Documents  are  in  proper  legal  form  under  the  Laws  of  the  jurisdiction  in  which  such  Foreign  Obligor  is  organized  and  existing  for  the  enforcement thereof against such Foreign  Obligor under the Laws of such jurisdiction, and to  ensure the legality, validity, enforceability, or admissibility in evidence of the Applicable Foreign  Obligor Documents, subject as to enforcement to any Debtor Relief Laws and general equitable  principles.  It is not necessary to ensure the legality, validity, enforceability or admissibility in  evidence  of  the  Applicable  Foreign  Obligor  Documents  that  the  Applicable  Foreign  Obligor  Documents be filed, registered or recorded with, or executed or notarized before, any court or other  authority in the jurisdiction in which such Foreign Obligor is organized and existing or that any  registration charge or stamp  or similar tax be paid  on or in  respect  of the Applicable  Foreign  Obligor  Documents  or  any  other Loan Document,  except  (i) for any  such  filing,  registration,  recording, execution or notarization as has been made or can be made or is not required to be made    

 

   until  the  Applicable  Foreign  Obligor  Document  or  any  other Loan Document  is  sought  to  be  enforced, (ii) for any charge or tax as has been timely paid.         (c)   There is no material tax, levy, impost, duty, fee, assessment or other governmental  charge, or any deduction or withholding, imposed by any Governmental Authority in or of the  jurisdiction in which such Foreign Obligor is organized and existing either (i) on or by virtue of  the execution or delivery of the Applicable Foreign Obligor Documents or (ii) on any payment to  be made by such Foreign Obligor pursuant to the Applicable Foreign Obligor Documents, except  as has been disclosed to the Administrative Agent.         (d)   The  execution,  delivery  and  performance  of  the  Applicable  Foreign  Obligor  Documents  executed  by  such  Foreign  Obligor  are,  under  applicable  foreign  exchange  control  regulations of the jurisdiction in which such Foreign Obligor is organized and existing, not subject  to any notification or authorization except (i) such as have been made or obtained or (ii) such as  cannot  be  made  or  obtained  until  a  later  date  (provided that  any  notification  or  authorization  described in clause (ii) shall be made or obtained as soon as is reasonably practicable).         5.22  EEA Financial Institution.  No Loan Party is an EEA Financial Institution.         5.23  Beneficial Ownership Certification.  The information included in the Beneficial  Ownership Certification most recently provided to each Lender, if applicable, is true and correct  in all respects.         5.24  Covered Entities.   No Loan Party is a Covered Entity.                                   ARTICLE VI.                           AFFIRMATIVE COVENANTS         So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation  hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding,  Limited shall, and shall (except in the case of the covenants set forth in Sections 6.01, 6.02, and  6.03) cause each Subsidiary to:         6.01  Financial Statements.  Deliver to the Administrative Agent and each Lender:         (a)   as soon as available, but in any event within 90 days after the end of each fiscal  year  of  Limited  (commencing  with  the  fiscal  year  ended  February 28,  2015),  a  consolidated  balance sheet of Limited and its Subsidiaries as at the end of such fiscal year, and the related  consolidated statements  of income or operations,  and consolidated statements  of shareholders’  equity, and cash flows for such fiscal year, setting forth in each case in comparative consolidated  form the figures for the previous fiscal year, all in reasonable detail and prepared in accordance  with GAAP, such consolidated statements to be audited and accompanied by a report and opinion  of  Grant  Thornton  LLP  or  such  other  independent  certified  public  accountant  of  nationally  recognized standing reasonably acceptable to the Required Lenders, which report and opinion shall  be prepared in accordance with generally accepted auditing standards and shall not be subject to  any “going concern” or like qualification or exception or any qualification or exception as to the  scope of such audit and such consolidated statements to be certified by a Responsible Officer of     

 

   Limited to the effect that such statements are fairly stated in all material respects when considered  in relation to the consolidated financial statements of Limited and its Subsidiaries; and         (b)   as soon as available, but in any event within 45 days after the end of each of the  first three fiscal quarters of each fiscal year of Limited (commencing with the fiscal quarter ended  November 30, 2014), a consolidated balance sheet of Limited and its Subsidiaries as at the end of  such  fiscal  quarter,  and  the  related  consolidated  statements  of  income  or  operations,  and  consolidated statements of shareholders’ equity, and cash flows for such fiscal quarter and for the  portion of Limited’s fiscal year then ended, setting forth in each case in comparative consolidated  form  the  figures  for  the  corresponding  fiscal  quarter  of  the  previous  fiscal  year  and  the  corresponding  portion  of  the  previous  fiscal  year,  all  in  reasonable  detail,  such  consolidated  statements to be certified by a Responsible Officer of Limited as fairly presenting the financial  condition,  results  of  operations,  shareholders’  equity,  and  cash  flows  of  Limited  and  its  Subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments and the  absence of footnotes and such consolidating statements to be certified by a Responsible Officer of  Limited to the effect that such statements are fairly stated in all material respects when considered  in relation to the consolidated financial statements of Limited and its Subsidiaries.   As to any information contained in materials furnished pursuant to Section 6.02(c), Limited shall  not  be  separately  required  to  furnish  such  information  under clause (a)  or  (b)  above,  but  the  foregoing shall not be in derogation of the obligation of Limited to furnish the information and  materials described in clauses (a) and (b) above at the times specified therein.         6.02  Certificates; Other Information.  Deliver to the Administrative Agent and each  Lender, in form and detail satisfactory to the Administrative Agent and the Required Lenders:         (a)   concurrently  with  the  delivery  of  the  financial  statements  referred  to  in  Sections 6.01(a) and (b) (commencing with the delivery of the financial statements for the fiscal  quarter  ended November 30,  2014),  a  duly  completed  Compliance  Certificate  signed  by  a  Responsible Officer of Limited;         (b)   promptly after any request by the Administrative Agent or any Lender, copies of  any  detailed  audit  reports,  management  letters  or  recommendations  submitted  to  the  board  of  directors (or the audit committee of the board of directors) of Limited by independent accountants  in connection with the accounts or books of Limited or any Subsidiary, or any audit of any of them;         (c)   promptly  after  the  same  are  available,  copies  of  each  annual  report,  proxy  or  financial statement  or other report or communication sent  to  the stockholders  of Limited,  and  copies of all annual, regular, periodic and special reports and registration statements which Limited  may file or be required to file with the SEC under Section 13 or 15(d) of the Securities Exchange  Act of 1934, and not otherwise required to be delivered to the Administrative Agent pursuant  hereto; provided that any documents required to be delivered pursuant to this Section 6.02(c) shall  be deemed to have been delivered on the date on which the Borrower posts such documents, or  provides a link thereto on the Borrower’s website;         (d)   promptly, and in any event within five Business Days after receipt thereof by any  Loan Party or any Subsidiary thereof, copies of each notice or other correspondence received from    

 

   the  SEC  (or  comparable  agency  in  any  applicable  non-U.S.  jurisdiction)  concerning  any  investigation  or  possible  investigation  or  other  inquiry  by  such  agency,  in  each  case  that  are  material to the Borrower or any Loan Party, regarding financial or other operational results of any  Loan Party or any Subsidiary thereof;         (e)   promptly, such additional information regarding the business, financial or corporate  affairs of Limited or any Subsidiary, or compliance with the terms of the Loan Documents, as the  Administrative Agent or any Lender may from time to time reasonably request;          (f)   to  the  extent  any  Loan  Party  qualifies  as  a  "legal  entity  customer"  under  the  Beneficial  Ownership  Regulation,  an  updated  Beneficial  Ownership  Certification  promptly  following  any  change  in  the  information  provided  in  the  Beneficial  Ownership  Certification  delivered to any Lender in relation to such Loan Party that would result in a change to the list of  beneficial owners identified in such certification, and         (g)   promptly following any request therefor, provide information and documentation  reasonably requested by the Administrative Agent or any Lender for purposes of compliance with  applicable  “know  your  customer”  and  anti-money-laundering  rules  and  regulations,  including,  without limitation, the PATRIOT Act and the Beneficial Ownership Regulation.         Documents required to be delivered pursuant to Section 6.01(a) or (b) or Section 6.02(c)  (to the extent any such documents are included in materials otherwise filed with the SEC) may be  delivered electronically and if so delivered, shall be deemed to have been delivered on the date  (i) on which Limited posts such documents, or provides a link thereto on Limited’s website on the  Internet  at  the  website  address  listed  on Schedule 10.02;  or  (ii) on  which  such  documents  are  posted on Limited’s behalf on an Internet or intranet website, if any, to which each Lender and the  Administrative  Agent  have  access  (whether  a  commercial,  third-party  website  or  whether  sponsored by the Administrative Agent); provided that: (i) Limited shall deliver paper copies of  such documents to the Administrative Agent or any Lender that requests Limited to deliver such  paper copies until a written request to cease delivering paper copies is given by the Administrative  Agent or such Lender and (ii) Limited shall notify the Administrative Agent and each Lender (by  telecopier  or  electronic  mail)  of  the  posting  of  any  such  documents  and  provide  to  the  Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents.   Notwithstanding anything contained herein, in every instance Limited shall be required to provide  paper copies of the Compliance Certificates  required by Section 6.02(b) to  the Administrative  Agent.   Except  for  such  Compliance  Certificates,  the  Administrative  Agent  shall  have  no  obligation to request the delivery of or to maintain paper copies of the documents referred to above,  and in any event shall have no responsibility to monitor compliance by Limited with any such  request  by  a  Lender  for  delivery,  and  each  Lender  shall  be  solely  responsible  for  requesting  delivery to it or maintaining its copies of such documents.  The Borrower hereby acknowledges  that  the  Administrative  Agent  and/or  the  Arranger  may,  but  shall  not  be  obligated  to,  make  available to the Lenders and the L/C Issuer materials and/or information provided by or on behalf  of the Borrower hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials  on  DebtDomain,  IntraLinks,  Syndtrak,  ClearPar  or  another  similar  electronic  system  (the  “Platform”).         6.03  Notices.  Promptly notify the Administrative Agent and each Lender:    

 

         (a)   of the occurrence of any Default;         (b)   of  any  matter  that  has  resulted  or  could  reasonably  be  expected  to  result  in a  Material  Adverse  Effect,  including  (i) breach  or  non-performance  of,  or  any  default  under,  a  Contractual  Obligation  of  Limited  or  any  Subsidiary,  except  to  the  extent  that  breach,  non- performance or default could not reasonably be expected to have a Material Adverse Effect or  result in a Default; (ii) any material dispute, litigation, investigation, proceeding or suspension  between Limited or any Subsidiary and any Governmental Authority; or (iii) the commencement  of,  or  any  material  development  in,  any litigation  or  proceeding  affecting  Limited  or  any  Subsidiary,  including  pursuant  to  any  applicable  Environmental  Laws,  in which  the  amount  involved is $10,000,000 or more, which (A) involve the probability of any judgment or liability  not adequately covered by insurance or (B) in which injunctive or similar relief is sought, and  which could reasonably be expected to have a Material Adverse Effect;         (c)   of the occurrence of any ERISA Event, which has resulted or could reasonably be  expected to result in liability of any Loan Party or any Subsidiary in an aggregate amount in excess  of $5,000,000;         (d)   of any material change in accounting policies or financial reporting practices by  Limited or any Subsidiary;          (e)   of the execution of any tax sharing agreement by Limited or any of its Subsidiaries,  and         (f)   any  change  in  the  Borrower’s  U.S.  taxpayer  identification  number  set  forth  on  Schedule 10.02.   Each notice pursuant to this Section shall be accompanied by a statement of a Responsible Officer  of Limited setting forth details of the occurrence referred to therein and stating what action Limited  has taken and proposes to take with respect thereto.  Each notice pursuant to Section 6.03(a) shall  describe with particularity any and all provisions of this Agreement and any other Loan Document  that have been breached.         6.04  Payment of Obligations.  Pay and discharge as the same shall become due and  payable,  all  its  obligations  and  liabilities, including (a) all  tax  liabilities,  assessments  and  governmental  charges  or  levies  upon  it  or  its  properties  or  assets,  unless  the  same  are  being  contested in good faith by appropriate proceedings diligently conducted and adequate reserves in  accordance with GAAP are being maintained by Limited or such Subsidiary; (b) all lawful claims  which, if unpaid, would by law become a Lien upon its property; and (c) all Indebtedness, as and  when due and payable, but subject to any subordination provisions contained in any instrument or  agreement evidencing such Indebtedness, except, in each case, to the extent that failure to pay or  discharge any such obligation or liability could not reasonably be expected to have a Material  Adverse Effect.         6.05  Preservation of Existence, Etc.  (a) Preserve, renew and maintain in full force and  effect its legal existence and good standing under the Laws of the jurisdiction of its organization  except in a transaction permitted by Section 7.04 or 7.05; (b) take all reasonable action to maintain  all rights, privileges, permits, licenses and franchises necessary or desirable in the normal conduct    

 

   of its business, except to the extent that failure to do so could not reasonably be expected to have  a Material Adverse Effect; and (c) preserve or renew all of its registered patents, trademarks, trade  names and service marks, the non-preservation of which could reasonably be expected to have a  Material Adverse Effect.         6.06  Maintenance of Properties.  (a) Maintain, preserve and protect all of its material  properties and equipment necessary in the operation of its business in good working order and  condition, ordinary wear and tear excepted; (b) make all necessary repairs thereto and renewals  and replacements thereof, except where the failure to do so could not reasonably be expected to  have a Material Adverse Effect; and (c) use the standard of care typical  in the industry in the  operation and maintenance of its facilities.         6.07  Maintenance  of  Insurance.  Maintain  with  financially  sound  and  reputable  insurance companies not Affiliates of Limited, insurance with respect to its properties and business  against loss or damage of the kinds customarily insured against by Persons engaged in the same  or similar business, of such types and in such amounts as are customarily carried under similar  circumstances by such other Persons.         6.08  Compliance with Laws.  Comply in all material respects with the requirements of  all Laws and all orders, writs, injunctions and decrees applicable to it or to its business or property,  except in such instances in which (a) such requirement of Law or order, writ, injunction or decree  is being contested in good faith by appropriate proceedings diligently conducted or (b) the failure  to comply therewith could not reasonably be expected to have a Material Adverse Effect.         6.09  Books and Records.  Maintain proper books of record and account, in which full,  true and correct entries (in all material respects) in conformity with GAAP consistently applied  shall be made of all financial transactions and matters involving the assets and business of Limited  or such Subsidiary, as the case may be.         6.10  Inspection  Rights.  Permit  representatives  and  independent  contractors  of  the  Administrative Agent and each Lender to visit and inspect any of its properties, to examine its  corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to  discuss  its  affairs,  finances  and  accounts  with  its  directors,  officers,  and  independent  public  accountants.  Before an Event of Default exists, (a) such visits and inspections shall be at such  reasonable times during business hours and as often as may be reasonably desired, upon reasonable  advance notice to Limited and the Borrower and (b) the Borrower shall pay for the reasonable  costs and expenses of the Administrative Agent with respect to no more than one such visit and  inspection  by  the  Administrative  Agent  during  any  twelve-month  period.   After  an  Event  of  Default exists and is continuing, (a) such visits and inspections may be at any time during normal  business hours and without advance notice and (b) the Borrower shall pay the reasonable costs and  expenses of all such visits and inspections.         6.11  Use of Proceeds.  Use the proceeds of the Credit Extensions for any lawful general  corporate  purposes permitted  hereunder  and not  in  contravention  of  any Sanctions  Law,  any  applicable Laws of the Federal Reserve Board, including Regulations T, U and X, or of any Loan  Document.     

 

         6.12  Anti-Corruption  Laws;  Sanctions.  Conduct  its  business  in  compliance  in  all  material respects with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery  Act  2010  and  other  applicable  anti-corruption  legislation  in  other  jurisdictions  and  with  all  applicable  Sanctions,  and  maintain  policies  and  procedures  designed  to  promote  and  achieve  compliance with such laws and Sanctions.         6.13  Post-Closing Matters.  Execute and deliver the documents and complete the tasks  set forth on Schedule 6.13, in each case within the time limits specified therefor on such Schedule.         6.14  Approvals and Authorizations.  Maintain all authorizations, consents, approvals  and licenses from, exemptions of, and filings and registrations with, each Governmental Authority  of the jurisdiction in which each Foreign Obligor is organized and existing, and all approvals and  consents of each other Person in such jurisdiction, in each case that are required in connection with  the Loan Documents except to the extent the failure to do so could not reasonably be expected to  have a Material Adverse Effect on the legality, validity or enforceability of the Applicable Foreign  Obligor Documents.         6.15  Covenant to Guarantee Obligations.           (a)   Cause any Material Domestic Subsidiary (other than (i) an Excluded Subsidiary or  (ii)  a  merger  subsidiary  formed  in  connection  with  a  merger  or  acquisition,  including  an  Acquisition permitted hereunder, so long as such merger subsidiary is merged out of existence  pursuant to and immediately upon the consummation of such transaction) formed or otherwise  purchased or acquired after the Third Amendment Effective Date, or which becomes a Subsidiary  (other than (x) an Excluded Subsidiary or (y) a merger subsidiary formed in connection with a  merger  or  acquisition,  including  an  Acquisition  permitted  hereunder,  so  long  as  such  merger  subsidiary is merged out of existence pursuant to and immediately upon the consummation of such  transaction) after the Third Amendment Closing Date to promptly (and in any event within thirty  (30) days after such Subsidiary is formed or acquired (or such longer period of time as agreed to  by the Administrative Agent in its reasonable discretion)) become a Guarantor hereunder by way  of execution of a Guaranty.           (b)   If any other Subsidiary becomes a Material Domestic Subsidiary after the Third  Amendment Effective Date, cause such Subsidiary to promptly (and in any event within thirty (30)  days after the next following date on which a Compliance Certificate is required to be delivered  pursuant to Section 6.02(a) (or such longer period of time as agreed to by the Administrative Agent  in its reasonable discretion), become a Guarantor hereunder by way of execution of a Guaranty.         (c)   In connection with the addition of a Guarantor under clauses (a) and (b) above, the  Loan Parties shall deliver to the Administrative Agent, with respect to each new Guarantor to the  extent applicable, (i) such documents of the types referred to in clauses (iv) and (v) of Section  4.01(a),  (ii)  a  favorable  opinion  of  counsel  to  such  Subsidiary  located  in  the  jurisdiction  of  organization  of  such  Subsidiary,  in  form,  content  and  scope  reasonably  satisfactory  to the  Administrative Agent, (iii) other documentation and other evidence as reasonably requested by the  Administrative Agent or any Lender in connection with applicable “know your customer” and  anti-money-laundering rules and regulations and (iv) such other documents or agreements as the     

 

   Administrative Agent may reasonably request, including without limitation, an updated Schedule  5.13.                                   ARTICLE VII.                             NEGATIVE COVENANTS         So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation  hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding,  Limited shall not, nor shall it permit any Subsidiary to, directly or indirectly:         7.01  Liens.  Create, incur, assume or suffer to exist any Lien upon any of its property,  assets or revenues, whether now owned or hereafter acquired, other than the following:         (a)   Liens pursuant to any Loan Document;         (b)   Liens existing on the Third Amendment Effective Date and listed on Schedule 7.01  and  any  renewals  or  extensions  thereof, provided that  (i) the  property  covered  thereby  is  not  changed,  (ii) the  amount  secured  or  benefited  thereby  is  not  increased,  (iii) the  direct  or  any  contingent obligor with respect thereto is not changed from a Subsidiary that is not a Loan Party  to a Loan Party, and (iv) any renewal or extension of the obligations secured or benefited thereby  is permitted by Section 7.03(b);         (c)   Liens  for  taxes  not  yet  due  or  which  are  being  contested  in  good  faith  and  by  appropriate  proceedings  diligently  conducted,  if  adequate  reserves  with  respect  thereto  are  maintained on the books of the applicable Person in accordance with GAAP;         (d)   carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like  Liens arising in the ordinary course of business which are not overdue for a period of more than  30  days  or  which  are  being  contested  in  good  faith  and  by  appropriate  proceedings  diligently  conducted, if adequate reserves with respect thereto are maintained on the books of the applicable  Person;         (e)   pledges or deposits in the ordinary course of business in connection with workers’  compensation, unemployment insurance, other social security legislation and similar obligations,  other than any Lien imposed by ERISA;         (f)   deposits to secure the performance of bids, trade contracts and leases (other than  Indebtedness), statutory obligations, surety bonds, performance bonds, customs bonds and other  obligations of a like nature incurred in the ordinary course of business;         (g)   easements,  rights-of-way, restrictions  and  other  similar  encumbrances  affecting  real property which, in the aggregate, are not substantial in amount, and which do not in any case  materially detract from the value of the property subject thereto or materially interfere with the  ordinary conduct of the business of the applicable Person;         (h)   Liens, or an existing pledge of a deposit, securing payment of senior debt by an  Affiliate or Subsidiary to a foreign financial institution as described in the financial statements  delivered pursuant to Section 5.05 or which may be disclosed from time to time by any such party;    

 

   provided  the  Indebtedness  secured  by  such  Liens  does  not  exceed  $20,000,000  in  aggregate  principal amount;         (i)   Liens securing Indebtedness permitted under Section 7.03(e); provided that (i) such  Liens  do  not  at  any  time  encumber  any  property  other  than  the  property  financed  by  such  Indebtedness and (ii) the Indebtedness secured thereby does not exceed the cost or fair market  value, whichever is lower, of the property being acquired on the date of acquisition;         (j)   Liens in favor of a Loan Party;         (k)   Liens  on  property  of  a  Person  existing  at  the  time  such  Person  is  acquired  by,  merged with or into or consolidated or amalgamated with Limited or a Subsidiary; provided, that  such Liens were in existence prior to the contemplation of such acquisition, merger, consolidation  or amalgamation and do not extend to any assets other than those of the Person acquired by, merged  into or consolidated or amalgamated with Limited or a Subsidiary and, to the extent such Lien  secures Indebtedness, the applicable Indebtedness secured by such Lien is permitted under Section  7.03(o);          (l)   Liens  on  property  existing  at  the  time  of  acquisition  thereof  by  Limited  or  a  Subsidiary; provided,  that  such  Liens  were  in  existence  prior  to  the  contemplation  of  such  acquisition and the  applicable  Indebtedness  secured  by  such  Lien  is permitted  under Section  7.03(o);         (m)   Liens securing Indebtedness permitted by Section 7.03(i);         (n)   Liens  existing  on  the  Closing  Date  against  the  Investments  described  in  Section 7.02(j);          (o)   Liens solely on any cash earnest money or escrow deposits made by Limited or a  Subsidiary in  connection  with  any  letter  of  intent, purchase  agreement or  similar  agreement  relating to an Acquisition permitted hereunder;         (p)   (i) Liens on cash advances in favor of the seller of any property to be acquired in  an Investment permitted pursuant to Section 7.02 to be applied against the purchase price for such  Investment, (ii) any encumbrance or restriction (including put and call arrangements) with respect  to Equity Interests of any joint venture pursuant to any joint venture agreement only to the extent  such encumbrances  or  restrictions  do  not  secure  Indebtedness and  (iii)  Liens  consisting  of  Contractual Obligations to consummate a Disposition or to not otherwise Dispose of the assets,  business or properties subject to such Disposition, in each case, to the extent such Disposition is  permitted by Section 7.05 (other than Sections 7.05(e), (f) and (j)) and to the extent that such Liens  do not secure monetary obligations to the applicable purchaser, in each case, solely to the extent  such Investment (including such joint venture) or Disposition, as the case may be, would have  been permitted on the date of the creation of such Lien;         (q)   Liens arising from precautionary UCC financing statement filings or precautionary  personal property security financing statements (or substantially equivalent filings outside of the  United States) filed in respect of any lease and that do not secure Indebtedness;     

 

         (r)   any option or other agreement to purchase any asset of Limited or any Subsidiary,  the purchase, sale or other disposition of which is not prohibited by Section 7.05;         (s)   Liens arising from the rendering of an interim or final judgment or order against  Limited or any Subsidiary that does not give rise to an Event of Default;         (t)   Liens  arising  out  of  conditional  sale,  title  retention,  consignment  or  similar  arrangements for sale of goods permitted hereunder entered into by Limited or any Subsidiary in  the ordinary course of its business and permitted by this Agreement;         (u)   (i) non-exclusive and exclusive licenses and sublicenses granted by Limited or a  Subsidiary, provided such exclusivity applies only to territory and field of use and (ii) leases and  subleases (by a Limited or a Subsidiary as lessor or sublessor), in each case of clauses (i) and (ii)  not interfering in any material respect with the business of Limited and its Subsidiaries;         (v)   Liens encumbering reasonable and customary initial deposits and margin deposits  and similar Liens attaching to brokerage accounts incurred in the ordinary course of business and  not for speculative purposes;         (w)   Liens in favor of customs and revenue authorities arising as a matter of law which  secure payment of customs duties in connection with the importation of goods in the ordinary  course of business;         (x)   Liens arising by operation of law or contract on insurance policies and the proceeds  thereof securing any financing of the premiums with respect thereto permitted under the terms of  this Agreement;         (y)   bankers’ Liens, rights of setoff and other similar Liens existing solely with respect  to Cash and Cash Equivalents on deposit in one or more accounts maintained by Limited or any  of its Subsidiaries with any depository institution, in each case in the ordinary course of business  in  favor  of  the  bank  or  banks  with  which  such  accounts  are  maintained,  securing  solely  the  customary amounts owing to such bank with respect to cash management and operating account  arrangements; provided, that in no case shall any such Liens secure (either directly or indirectly)  the repayment of any Indebtedness; and         (z)   Liens  not  otherwise  permitted  by  this  Section  securing  Indebtedness  and  other  obligations permitted under this Agreement, which Indebtedness and other obligations shall not  exceed $15,000,000 in the aggregate at any time outstanding; provided such Liens (i) shall not  secure Subordinated Indebtedness and (ii) shall not be granted on, or attach to, (1) Licenses, (2)  Equity Interests in Material Subsidiaries or (3) material IP Rights.           7.02  Investments.  Make any Investments, except:         (a)   Investments in Cash and Cash Equivalents;         (b)   advances to officers, directors and employees of the Borrower and Guarantors in  an aggregate amount not to exceed $1,000,000 at any time outstanding, for travel, entertainment,  relocation and analogous ordinary business purposes;    

 

         (c)   Investments of the Borrower in any Guarantor and Investments of any Guarantor  in the Borrower or in another Guarantor;         (d)   Investments consisting of extensions of credit in the nature of accounts receivable  or notes receivable arising from the grant of trade credit in the ordinary course of business, and  Investments  received  in  satisfaction  or  partial  satisfaction  thereof  from  financially  troubled  account  debtors or  other  suppliers,  vendors  and  customers (including  in  connection  with  the  bankruptcy,  reorganization  or  similar  proceedings  of  such  Persons  or  settlement  of  delinquent  accounts and disputes with, account debtors, or other suppliers, vendors and customers), in each  case, to the extent reasonably necessary in order to prevent or limit loss;         (e)   Investments as a result of Acquisitions, if each of the following conditions has been  satisfied:  (i) immediately before and after giving effect to such Acquisition, no Default shall have  occurred and be continuing, (ii)(A) if such Acquisition is a Qualified Acquisition, immediately  before  and  after  giving  effect  to  such  Acquisition, the  Borrower  is  in  compliance  with  Section 7.11(b) or (B) if such Acquisition is not a Qualified Acquisition, immediately before and  after giving effect to such Acquisition, the Leverage Ratio on a pro forma basis is not greater than  3.25 to 1.00, (iii) immediately before and after giving effect to such Acquisition, Liquidity will be  at least $25,000,000, (iv) such Acquisition shall not be opposed by the board of directors or similar  governing  body  of  the  Person  or  assets  being  acquired  and  (v) if  the  Acquisition  results  in  a  Material Domestic Subsidiary, such Subsidiary shall execute and deliver to the Administrative  Agent, (x) a Guaranty, (y) such documents of the types referred to in clauses (iv) and (v) of Section  4.01(a) and  (z)  a  favorable  opinion  of  counsel  to  such  Person  located  in  the  jurisdiction  of  organization  of  such  Person,  in  form,  content  and  scope  reasonably  satisfactory  to  the  Administrative Agent, in each case to the extent required by the terms of Section 6.15;         (f)   Investments  that  are  otherwise  permitted  by  this  Agreement,  including  Section 7.03(j) and Guaranties permitted pursuant to Section 7.03(c) (but subject to the limitation  set forth therein);         (g)   Investments (i) by a Subsidiary (other than a Loan Party) in any other Subsidiary  and (ii) by a Loan Party in any Subsidiary that is not a Loan Party in an aggregate amount not to  exceed the greater of  (1) $50,000,000 and (2) 2.0% of Consolidated Total  Assets at  any time  outstanding;         (h)   Investments  existing  on the Third Amendment Effective Date and described on  Schedule 5.13 or Schedule 7.02 and  Investments  consisting  of  any  modification,  replacement,  renewal, reinvestment or extension of any Investment existing on the Third Amendment Effective  Date; provided that the amount of any Investment permitted pursuant to this Section 7.03(h) is not  increased from the amount of such Investment on the Third Amendment Effective Date;         (i)   Investments acquired as a result of the purchase or other acquisition by Limited or  any Subsidiary in connection with an Acquisition permitted by this Agreement; provided, that such  Investments were not made in contemplation of such Acquisition and were in existence at the time  of such Acquisition;     

 

         (j)   promissory  notes  and  other  non-cash  consideration  received  by Limited  or any  Subsidiary in connection with Dispositions permitted by Section 7.05 (other than Sections 7.05(b),  (c), (j) and (l));         (k)   so  long  as  immediately  before  and  immediately  after  any  such  transaction,  no  Default shall have occurred and be continuing, Investments held by a Subsidiary acquired after the  Closing Date or of a Person merged, consolidated or amalgamated with or into Limited or any  Subsidiary, in each case in accordance with Section 7.04 after the Closing Date, to the extent that  such  Investments  were  not  made  in  contemplation  of  or  in  connection  with  such  acquisition,  merger, consolidation or amalgamation and  were in  existence on the date of such  acquisition,  merger, consolidation or amalgamation;         (l)   Guarantees of Limited or any Subsidiary in respect of leases (other than Capital  Leases) or of other obligations of a Subsidiary that do not constitute Indebtedness, in each case  entered into in the ordinary course of business;          (m)   Investments received in connection with any Disposition permitted by Section 7.05  (other than Sections 7.05(b), (c), (f), (j) and (l));          (n)   other Investments by Foreign Subsidiaries in an aggregate amount not to exceed  $20,000,000 at any time outstanding; and         (o)   so long as no Default exists or would result therefrom, Investments not otherwise  permitted to be made pursuant to clauses (a) through (n) above, which, as of the date of any such  Investment, do not exceed 15% of Consolidated Net Worth.         7.03  Indebtedness.  Create, incur, assume or suffer to exist any Indebtedness, except:         (a)   Indebtedness under the Loan Documents;         (b)   Indebtedness outstanding on the Third Amendment Effective Date and listed on  Schedule 7.03 or permitted hereunder, and any refinancings, refundings, renewals or extensions  thereof; provided that (i) the amount of such Indebtedness is not increased at the time of such  refinancing, refunding, renewal or extension except by an amount equal to a reasonable premium  or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with  such refinancing and by an amount equal to any existing commitments unutilized thereunder and  (ii) the terms relating to amortization, maturity, collateral (if any) and subordination (if any), and  other material terms taken as a whole, of any such refinancing, refunding, renewing or extending  Indebtedness, are no less favorable in any material respect to the Loan Parties or the Lenders than  the terms of any agreement or instrument governing the Indebtedness being refinanced, refunded,  renewed or extended and the interest rate applicable to any such refinancing, refunding, renewing  or extending Indebtedness does not exceed the then applicable market interest rate;         (c)   Guarantees  by  Limited  or  any  Subsidiary  in  respect  of  Indebtedness  otherwise  permitted hereunder of a Loan Party or any Subsidiary that is not a Loan Party; provided that any  Guarantee incurred by a Loan Party of the obligations of a Subsidiary that is not a Loan Party shall  be permitted pursuant to Section 7.02(g)(ii);     

 

         (d)   obligations  (contingent  or  otherwise)  of  Limited  or  any  Subsidiary  existing  or  arising under any Swap Contract, provided that (i) such obligations are (or were) entered into by  such  Person  in  the  ordinary  course  of  business  for  the  purpose  of  directly  mitigating  risks  associated  with  liabilities,  commitments,  investments,  assets,  or  property  held  or  reasonably  anticipated by such Person, or changes in the value of securities issued by such Person, and not for  purposes of speculation or taking a “market view;” and (ii) such Swap Contract does not contain  any  provision  exonerating  the  non-defaulting  party  from  its  obligation  to  make  payments  on  outstanding transactions to the defaulting party;         (e)   Indebtedness in respect of Capital Leases, Synthetic Lease Obligations, purchase  money obligations for fixed or capital assets and obligations for the construction and improvement  of fixed or capital assets within the limitations set forth in Section 7.01(i); provided, however, that  the  aggregate  amount  of  all  such  Indebtedness  at  any  one  time  outstanding  shall  not  exceed  $75,000,000;         (f)   Intentionally Omitted;         (g)   Indebtedness  incurred  pursuant  to  that  certain  Loan  Agreement,  dated  as  of  March 1, 2013, by and between Kaz USA, Inc. and Mississippi Business Finance Corporation and  any refinancings, refundings, renewals or extensions thereof, as amended from time to time;         (h)   Indebtedness of any Loan Party representing deferred compensation to employees  or directors of Limited or any Subsidiary incurred in the ordinary course of business;         (i)   contingent  obligations  to  financial institutions,  in  each case to  the extent in  the  ordinary course of business and on terms and conditions which are within the general parameters  customary in the banking industry, entered into to obtain cash management services or deposit  account  overdraft  protection  services  or  other  services  in  connection  with  the  management  or  opening of deposit accounts or incurred as a result of endorsement of negotiable instruments for  deposit or collection purposes;         (j)   Indebtedness  (other  than  for  borrowed  money)  that  may  be  deemed  to  exist  pursuant  to  any  guarantees,  warranty  or  contractual  service  obligations,  performance,  surety,  statutory, appeal, bid, prepayment guarantee, payment (other than payment of Indebtedness) or  completion of performance guarantees or similar obligations incurred in the ordinary course of  business;         (k)   Indebtedness  in  respect  of  any  bankers’  acceptance,  bank  guarantees,  letters  of  credit, warehouse receipt or similar facilities entered into in the ordinary course of business in  respect of workers’ compensation claims, health, disability or other employee benefits or property,  casualty or liability insurance or self-insurance, unemployment insurance or other social security  benefit or other similar statutory obligations (other than obligations imposed by ERISA) or other  Indebtedness with respect to reimbursement-type obligations regarding workers’ compensation  claims, in each case in the ordinary course of business;         (l)   Indebtedness arising from the honoring by a bank or other financial institution of a  check,  draft  or  similar  instrument  drawn  against  insufficient  funds  in  the  ordinary  course  of     

 

   business, provided that  such  Indebtedness  is  extinguished  within five Business  Days  of  its  incurrence;         (m)   Indebtedness  consisting  of  (i)  the  financing  of  insurance  premiums  or  self- insurance obligations or (ii) take-or-pay obligations contained in supply agreements, in each case  in the ordinary course of business;         (n)   Indebtedness in the form of purchase price adjustments (including in respect of  working  capital),  earnouts,  deferred  compensation,  indemnification  or  other  arrangements  representing  acquisition  consideration  or  deferred  payments  of  a  similar  nature  incurred  in  connection  with  any  Acquisitions  or  other  Investments  permitted  under Section  7.02 or  Dispositions permitted under Section 7.05 (other than Sections 7.05(b), (c), (e), (f), (j) and (l));         (o)   (i) Indebtedness of any Person that becomes a Subsidiary of Limited (or is merged,  consolidated or amalgamated with Limited or a Subsidiary of Limited), or Indebtedness of any  Person that is assumed by Limited or any Subsidiary in connection with an acquisition of assets  by Limited or such Subsidiary in an Acquisition permitted under Section 7.02; provided that (1)  the aggregate principal amount of Indebtedness outstanding under this clause (o) at any time shall  not exceed the greater of (x) $50,000,000 and (y) 2.5% of Consolidated Total Assets; (2) such  Indebtedness exists at the time such Person becomes a Subsidiary (or is so merged, consolidated  or amalgamated) or such assets are acquired and is not created in contemplation of or in connection  with such Person becoming a Subsidiary (or such merger, consolidation or amalgamation) or such  assets being acquired, (3) with respect to any Indebtedness of any Person that becomes a Subsidiary  or  that  is  merged,  consolidated  or  amalgamated  with  or  into  Limited  or  a  Subsidiary,  such  Indebtedness is not guaranteed in any respect by Limited or any Subsidiary (other than by any such  Person that so becomes a Subsidiary or is the survivor of a merger, consolidation or amalgamation  with or into such Person and any of its Subsidiaries), (4) no Default or Event of Default exists or  would result therefrom after giving pro forma effect to such Person becoming a Subsidiary (or  such  merger,  consolidation  or  amalgamation)  or  such  assets  being  acquired  and  (5)  any  refinancings,  refundings,  renewals  or  extensions  of  such  Indebtedness  described  in  clause  (2)  above; provided that (A) the amount of such Indebtedness is not increased at the time of such  refinancing, refunding, renewal or extension except by an amount equal to a reasonable premium  or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with  such refinancing and by an amount equal to any existing commitments unutilized thereunder and  (B) the terms relating to amortization, maturity, collateral (if any) and subordination (if any), and  other material terms taken as a whole, of any such refinancing, refunding, renewing or extending  Indebtedness, are no less favorable in any material respect to the Loan Parties or the Lenders than  the terms of any agreement or instrument governing the Indebtedness being refinanced, refunded,  renewed or extended and the interest rate applicable to any such refinancing, refunding, renewing  or extending Indebtedness does not exceed the then applicable market interest rate;          (p)   unsecured Indebtedness not otherwise permitted to be incurred pursuant to any of  clauses (a) through (o) above provided that (i) the final maturity of such Indebtedness is beyond  the Maturity Date and (ii) no Default exists at the time of incurrence of any such Indebtedness or  would result therefrom;     

 

         (q)   Indebtedness not to exceed $20,000,000 at any one time outstanding; provided that  at the time of, and after giving effect to, the incurrence of such Indebtedness no Default shall exist;  and         (r)   intercompany Indebtedness (i) between Loan Parties, (ii) between Subsidiaries that  are not Loan Parties, or (iii) between a Loan Party and a Subsidiary that is not a Loan Party in  which the net principal amount thereof, together with all other such Indebtedness between Loan  Parties and Subsidiaries that are not Loan Parties incurred in reliance on this Section 7.03(r)(iii)  (excluding for purposes of this calculation any Indebtedness owed by a Loan Party to a Subsidiary  that is not a Loan Party if such Indebtedness is subject to a subordination agreement in form and  substance acceptable to the Administrative Agent), shall not exceed the greater of (1) $50,000,000  and (2) 2.0% of Consolidated Total Assets in aggregate amount at any time outstanding.         7.04  Fundamental Changes.  Merge, dissolve, liquidate, consolidate or amalgamate  with or into another Person, or Dispose of (whether in one transaction or in a series of transactions)  all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any  Person, except that, so long as no Default exists or would result therefrom:         (a)   any Subsidiary (other than the Borrower) may merge, consolidate or amalgamate  with (i) one of the Loan Parties, provided such Loan Party shall be the continuing or surviving  Person, or (ii) any one or more other Subsidiaries, provided that when any Guarantor is merging,  consolidating or amalgamating with another Subsidiary, the Guarantor shall be the continuing or  surviving Person;         (b)   the Borrower may merge, consolidate or amalgamate with one of the Loan Parties  or a Subsidiary, provided (i) the Borrower shall be the continuing or surviving Person or (ii) a  Domestic Subsidiary shall be the continuing or surviving Person and shall become the Borrower,  subject to the consent of the Administrative Agent and each Lender required by Section 10.06(a);         (c)   any Subsidiary may Dispose of all or substantially all of its assets (upon voluntary  liquidation or otherwise) to Limited or any Subsidiary; provided that (i) if the transferor in such a  transaction is a Guarantor, then the transferee must either be the Borrower or a Guarantor and (ii) if  the  transferor  in  such  a  transaction  is  the  Borrower,  then  the  transferee  must  be  a  Domestic  Subsidiary that becomes the Borrower, subject to the consent of the Administrative Agent and  each Lender required by Section 10.06(a); and         (d)   Limited or any Subsidiary may make any Acquisition or Disposition permitted by  Section 7.02 or 7.05 (other than Section 7.05(f)).         7.05  Dispositions.  Make  any  Disposition  or  enter  into  any  agreement  to make  any  Disposition, except:         (a)   Dispositions  of surplus,  outdated, obsolete  or  worn  out  property,  whether  now  owned or hereafter acquired, in the ordinary course of business;         (b)   Dispositions of inventory in the ordinary course of business;     

 

         (c)   Dispositions of (i) Investments descried in clauses (b) – (g) of the definition of Cash  and Cash Equivalents and (ii) Other Foreign Investments, in each case, in the ordinary course of  business;         (d)   Dispositions of equipment or real property to the extent that (i) such property is  exchanged for credit against the purchase price of similar replacement property or (ii) the proceeds  of such Disposition are reasonably promptly applied to the purchase price of such replacement  property;         (e)   Dispositions of property by Limited or any Subsidiary to one of the Borrower or to  a wholly-owned Subsidiary; provided that if the transferor of such property is a Guarantor, the  transferee thereof must either be the Borrower or a Guarantor;         (f)   Dispositions permitted by Section 7.04 (other than Section 7.04(d));          (g)   Dispositions of accounts receivable on a non-recourse basis in connection with the  compromise, settlement or collection thereof in the ordinary course of business consistent with  past practice and not as part of any accounts receivables financing transaction;         (h)   Dispositions resulting from any casualty or other insured damage to, or any taking  under power of eminent domain or by condemnation or similar proceeding of, any asset of Limited  or any Subsidiary;         (i)   licenses or sublicenses of intellectual property in the ordinary course of business,  to the extent that they do not materially interfere with the business of Limited or any Subsidiary;         (j)   the  abandonment,  cancellation,  non-renewal  or  discontinuance  of  use  or  maintenance of non-material intellectual property or rights relating thereto that is, in the reasonable  good faith judgment of Limited, no longer economically practicable or commercially desirable to  maintain or useful in the conduct of its business and not materially disadvantageous to the interests  of the Lenders;         (k)   leases or subleases entered into in the ordinary course of business, to the extent that  they do not materially interfere with the business of Limited or any Subsidiary;         (l)   (i)  Dispositions  of  assets  to  the  extent  that  such  Disposition  constitutes  an  Investment referred to in and permitted by Section 7.02 (other than Sections 7.02(f) and (m)) and  (ii)  Dispositions  of  assets  to  the  extent  that  such  Disposition  constitute  a  Restricted  Payment  referred to in and permitted by Section 7.06;         (m)   Dispositions of assets (including Equity Interests of a Subsidiary) not otherwise  permitted in clauses (a) through (k) above provided (i) there exists no Default both before and after  giving effect to any such Disposition and (ii) the assets being Disposed of, together with all other  assets  Disposed  of  during  the  period  of  12  consecutive  months  ending  on  the  date  of  such  Disposition generated less than 25% of Consolidated EBITDA determined as of the end of the  fiscal year immediately preceding such Disposition;     

 

   provided, however, that any Disposition pursuant to clauses (b), (c), (d), (e), (i), (k) and (m) shall  be for fair market value.         7.06  Restricted  Payments.  Declare  or  make,  directly  or  indirectly,  any  Restricted  Payment, or incur any obligation (contingent or otherwise) to do so, except that, so long as no  Default shall have occurred and be continuing at the time of any action described below or would  result therefrom:         (a)   each Subsidiary may make Dividends to Limited, the Guarantors and any other  Person  that  owns  an  Equity  Interest  in  such  Subsidiary,  ratably  according  to  their  respective  holdings of the type of Equity Interest in respect of which such Dividend is being made (or, if not  ratably, on a basis more favorable to Limited and the other Loan Parties);         (b)   Limited and each Subsidiary may declare and make Dividends payable solely in  the  common  stock  or  other  Equity Interests  of  such  Person  (other  than Disqualified  Equity  Interests);         (c)   Limited  and  each  Subsidiary  may  pay,  purchase,  redeem  or  otherwise  acquire  Equity  Interests  or  Indebtedness  issued  or  incurred  by  it  with  the  proceeds  received  from  the  substantially concurrent issue of new shares of its common stock or other Equity Interests (other  than Disqualified Equity Interests) or Subordinated Indebtedness;         (d)   if immediately  before  and  after  giving  effect  to  any  the  payment  of  any  cash  Dividends or Treasury Stock Purchases (i) the Leverage Ratio on a pro forma basis is not greater  than 3.25 to 1.00, and (ii) Liquidity will be at least $25,000,000, Limited may declare or pay cash  Dividends to its stockholders and make Treasury Stock Purchases; provided, however, nothing in  this  clause (d)  shall  prohibit  or  restrict  Treasury  Stock  Purchases  made  pursuant  to  Limited’s  employee or director equity award plans;         (e)   Limited and each Subsidiary may purchase their common stock or other Equity  Interests from present or former officers or employees of Limited or any Subsidiary upon the death,  disability or termination of employment of such officer or employee, provided, that the aggregate  amount of payments under this Section 7.06(e) after the Closing Date (net of any proceeds received  by  Limited  or  any  such  Subsidiary  after  the  Closing  Date  in  connection  with  resales  of  any  common stock or other Equity Interest so purchased) shall not exceed $20,000,000 per fiscal year  (with unused amounts in any fiscal year being carried over for one fiscal year); provided that such  carried over amount shall not be aggregated with any other unused amount with respect to any  other fiscal year;         (f)   Limited and each Subsidiary may make cash payments in lieu of the issuance of  fractional  shares  representing  insignificant  interests  in  Limited  or  any  such  Subsidiary  in  connection  with  the  exercise  of  warrants,  options  or  other  securities  convertible  into  or  exchangeable for capital stock in Limited or such Subsidiary;         (g)   Limited may acquire its capital stock upon the exercise, vesting or settlement of  stock options, restricted stock units, restricted stock or other similar awards and agreements for  such capital stock of Limited if such capital stock represents a portion of the exercise price of such  stock options or in connection with tax withholding obligations arising in connection with the    

 

   exercise or settlement of such options, restricted stock units or other similar awards and agreements  by,  or  the  vesting  of  restricted  capital  stock  or  similar  awards  held  by,  any  current  or  former  director, officer, employee or consultant of Limited or any Subsidiary, in each case consistent with  past practice of Limited;          (h)   Limited and each Subsidiary may pay any Dividend or consummate any redemption  within 60 days after the date of declaration of the Dividend or giving of the redemption notice, as  the case may be, if at the date of declaration or notice, the Dividend or redemption payment would  have complied with, and was permitted to be made by, another provision of this Section 7.06; and          (i)   Limited and each Subsidiary may make regularly scheduled payments of principal  and interest on any Subordinated Indebtedness, provided that any Loan Party or any Subsidiary of  a Loan Party may make any payments to another Loan Party  or Subsidiary of a Loan Party in  respect  of  intercompany  Indebtedness  permitted  under Section  7.03(r)); provided, further,  that  Limited and its Subsidiaries may make payments to Limited or another Subsidiary to allow it to  make the payments referred to in this Section 7.06(i), so long as Limited or such Subsidiary applies  the amount of any such payment for such purposes promptly upon receipt thereof.         7.07  Change  in  Nature  of  Business.  Engage in  any  material  line  of  business  substantially different from those lines of business conducted by Limited and its Subsidiaries on  the date hereof or any business reasonably related, complementary or incidental thereto.         7.08  Transactions  with  Affiliates.  Enter into any transaction of  any kind  with any  Affiliate of Limited, whether or not in the ordinary course of business,  other than on fair and  reasonable terms substantially as favorable to Limited or such Subsidiary as would be obtainable  by Limited or such Subsidiary at the time in a comparable arm’s length transaction with a Person  other than an Affiliate, provided that the foregoing restriction shall not apply to (a) transactions (i)  between or among the Borrower and any Guarantor, (ii) between or among any Guarantors or (iii)  between or among Subsidiaries that are not Loan Parties, (b) Restricted Payments permitted by  Section 7.06, (c) the payment of customary directors’ fees and reimbursement of reasonable out- of-pocket expenses to, and indemnities provided on behalf of, directors, officers, employees in the  ordinary course of business to the extent attributable to the ownership or operation of Limited and  its  Subsidiaries; (d) any  issuance  of  securities  or  other  payments,  awards  or  grants  in  cash,  securities or otherwise pursuant to, or the funding of, employment agreements, stock options and  stock ownership plans  approved by the Limited’s  board of directors in  the ordinary course of  business, (e) employment and severance arrangements between Limited or any Subsidiary and  their  respective  officers  and  employees,  in  each  case  in  the  ordinary  course  of  business  as  determined in good faith by Limited’s board of directors, (f) intercompany transactions undertaken  in good faith (as certified by a Responsible Officer) for the purposes of improving the consolidated  tax efficiency of Limited and its Subsidiaries on a consolidated basis and not for the purpose of  circumventing any covenant set forth in this Agreement so long as any such transactions, taken as  a whole, are not materially disadvantageous to the Lenders in the good faith judgment of Limited  and (g) Investments permitted by Section 7.02(b).         7.09  Burdensome Agreements.  Enter into or be a party to any Contractual Obligation  (other  than  this  Agreement  and  any  other  Loan  Document)  that  limits  the  ability  (a) of  any  Subsidiary to make Restricted Payments to the Borrower or any Guarantor or to otherwise transfer    

 

   property to the Borrower or any Guarantor, (b) of any Subsidiary to Guarantee the Indebtedness  of the Borrower or (c) of Limited or any Subsidiary to create, incur, assume or suffer to exist Liens  on property of such Person.  The provisions of this Section 7.09 will not apply to encumbrances  or restrictions existing under or by reason of (i) agreements, instruments and documents entered  into in connection with Indebtedness permitted under Section 7.03(b), (c), (e), (g), (o), (p) or (q)  and any restatements, renewals, increases, supplements, refundings, replacements or refinancings  thereof,  provided  that  such  restatements,  renewals,  increases,  supplements,  refundings,  replacements or refinancings are not materially more restrictive, taken as a whole, with respect to  such dividend and other payment restrictions than those contained in such Contractual Obligations,  (ii) Applicable  Law,  and  (iii) customary  provisions  restricting  assignments,  subletting,  sublicensing, pledging or other transfers contained in leases, subleases, licenses or sublicenses, so  long as such restrictions are limited to the property or assets subject to such leases, subleases,  licenses or sublicenses, as the case may be, (iv) purchase money obligations permitted under this  Agreement  that  impose  restrictions  on  the  property  so  acquired,  (v) any  agreement  for  the  Disposition of a Subsidiary or assets of a Subsidiary that restricts distributions, the transfer of, or  encumbrances on such assets by that Subsidiary pending its Disposition or any agreement entered  into  with  respect  to  assets  acquired  or  disposed  of  in  connection  with  an  Acquisition  or  a  Disposition, (vi) Liens securing Indebtedness that limit the right of the debtor to dispose of the  assets  subject  to  such  Lien and  (vii)  any  agreement (other  than  an  agreement  entered  into  in  connection with Indebtedness) in effect at the time any Person becomes a Subsidiary of Limited,  so long as such prohibition or limitation applies only to such Subsidiary (and, if applicable, its  Subsidiaries) and such agreement was not entered into in contemplation of such Person becoming  a Subsidiary of Limited, as such agreement may be amended, restated, supplemented, modified,  extended renewed or replaced, so long as such amendment, restatement, supplement, modification,  extension,  renewal  or  replacement  does  not  expand  in  any  material  respect  the  scope  of  any  restriction contemplated by this Section 7.09 contained therein.         7.10  Use of Proceeds.  Use the proceeds of any Credit Extension, whether directly or  indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock  (within the meaning of Regulation U of the FRB) or to extend credit to others for the purpose of  purchasing or carrying margin stock or to refund indebtedness originally incurred for such purpose.         7.11  Financial Covenants.         (a)   Interest Coverage Ratio.  Permit the Interest Coverage Ratio as of the end of any  fiscal quarter of Limited to be less than 3.00 to 1.00.         (b)   Leverage Ratio.  Permit the Leverage Ratio to be greater than 3.50 to 1.00 at any  time; provided, however, notwithstanding the foregoing, and following the delivery of a Qualified  Acquisition Notice, (A) for the fiscal quarter in which such Qualified Acquisition is consummated,  the Leverage Ratio shall not at any time during thereof exceed 4.25 to 1.00, (B) for the first, second  and  third  fiscal quarters  immediately  following  the  fiscal  quarter  in  which  such  Qualified  Acquisition was consummated, the Leverage Ratio shall not at any time during thereof exceed  4.00 to 1.00, and (C) for the fourth fiscal quarter immediately following the fiscal quarter in which  such Qualified Acquisition was consummated, the Leverage Ratio shall not at any time during  thereof exceed 3.75 to 1.00.     

 

         7.12  Amendments of Subordinated Indebtedness.  Change or permit any Subsidiary  to change or amend (or take any action or fail to take any action the result of which is an effective  amendment or change) or accept any waiver or consent with respect to, any document, instrument  or agreement relating to any Subordinated Indebtedness that would result in (a) except as otherwise  permitted by Section 7.03(b), an increase in the principal, interest, overdue interest, fees or other  amounts payable under any Subordinated Indebtedness, (b) an acceleration of any date fixed for  payment  or  prepayment  of  principal,  interest,  fees  or  other  amounts  payable  under  any  Subordinated Indebtedness (including, without limitation, as a result of any redemption), in each  case where such date fixed would result in a payment prior to the Maturity Date, (c) a change in  any  of  the  subordination  provisions  of  any  Subordinated  Indebtedness unless  such  change  is  acceptable  to  Administrative  Agent  in  its  sole  discretion or  (d) any  other  change  in  any  term,  provision or covenant of any Subordinated Indebtedness that could reasonably be expected to have  an adverse effect on the interest of the Lenders.         7.13  Licenses.  Assign or otherwise transfer any of the Licenses, in whole or in part,  except that Licenses may be transferred to HOT-Barbados or another Loan Party if, and only if, at  the time of such transfer no Default exists or would result therefrom.         7.14  Sanctions.  Directly or indirectly, use any Credit Extension or the proceeds of any  Credit Extension, or lend, contribute or otherwise make available such Credit Extension or the  proceeds of any Credit Extension to any Person, to fund any activities of or business with any  Person,  that,  at  the  time  of  such  funding,  is  the  subject  of  Sanctions or is in  any  Designated  Jurisdiction, or in any other manner that will result in a violation by any Person (including any  Person participating in the transaction, whether as Lender, Arranger, Administrative Agent, L/C  Issuer, Swing Line Lender, or otherwise) of applicable Sanctions.          7.15  Anti-Corruption Laws.  Directly or indirectly, use any Credit Extension or the  proceeds of any Credit Extension for any purpose which would breach the United States Foreign  Corrupt Practices Act of 1977, the UK Bribery Act 2010 or other anti-corruption legislation in  other jurisdictions.                                   ARTICLE VIII.                      EVENTS OF DEFAULT AND REMEDIES         8.01  Events of Default.  Any of the following shall constitute an Event of Default:         (a)   Non-Payment.  The Borrower fails to pay (i) when and as required to be paid herein,  any amount of principal of any Loan or any L/C Obligation, or (ii) within the earlier of (A) one  Business Days’ notice thereof by the Administrative Agent or (B) three Business Days after the  same becomes due, any interest on any Loan or on any L/C Obligation, or any fee due hereunder,  or (iii) within the earlier of (A) one Business Days’ notice thereof by the Administrative Agent or  (B) five Business Days after the same becomes due, any other amount payable hereunder or under  any other Loan Document; or         (b)   Specific Covenants.  Any Loan Party fails to perform or observe any term, covenant  or agreement contained in any of Section 6.03(a) – (d), 6.05, 6.10, 6.11, 7.04, 7.05, 7.06, 7.07,  7.10, 7.11, 7.12, 7.13, 7.14 or 7.15; or    

 

         (c)   Other Defaults.  Any Loan Party fails to perform or observe (i) any of Section 7.01,  7.02, 7.03, 7.08 or 7.09 and  such  failure  continues  for  15  days  or  (ii) any  other  covenant  or  agreement (not specified in subsection (a) or (b) above and other than Section 6.03(e)) contained  in any Loan Document on its part to be performed or observed and such failure continues for 30  days; or         (d)   Representations  and  Warranties.   Any  representation,  warranty,  certification  or  statement of fact made or deemed made by or on behalf of the Borrower or any other Loan Party  herein,  in  any other Loan Document, or in  any document delivered in  connection herewith  or  therewith shall be incorrect or misleading in any material respect when made or deemed made; or         (e)   Cross-Default.  (i) Any Loan Party or any Subsidiary (A) fails to make any payment  when  due  (whether  by  scheduled  maturity,  required  prepayment,  acceleration,  demand,  or  otherwise) in respect of any Indebtedness or Guarantee (other than Indebtedness hereunder and  Indebtedness under Swap Contracts) having an aggregate principal amount (including amounts  owing  to  all  creditors  under  any  combined  or  syndicated  credit  arrangement)  of  more  than  $20,000,000 or (B) fails to observe or perform any other agreement or condition relating to any  such Indebtedness or Guarantee or contained in any instrument or agreement evidencing, securing  or relating thereto, or any other event occurs, the effect of which default or other event is to cause,  or to permit the holder or holders of such Indebtedness or the beneficiary or beneficiaries of such  Guarantee (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries)  to cause, with the giving of notice if required, such Indebtedness to be demanded or to become due  or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to  repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity,  or such Guarantee to become payable or cash collateral in respect thereof to be demanded; or  (ii) there occurs under any Swap Contract an Early Termination Date (as defined in such Swap  Contract) resulting from (A) any event of default under such Swap Contract as to which any Loan  Party or any Subsidiary is the Defaulting Party (as defined in such Swap Contract) or (B) any  Termination Event (as so defined) under such Swap Contract as to which any Loan Party is an  Affected Party (as so defined) and, in either event, the Swap Termination Value owed by such  Loan Party as a result thereof is greater than $20,000,000; or         (f)   Insolvency  Proceedings,  Etc.  Any  Loan  Party  or  any  Subsidiary  institutes  or  consents to the institution of any proceeding under any Debtor Relief Law seeking liquidation,  reorganization or other relief entered into with respect to it, or makes an assignment for the benefit  of  creditors;  or  applies  for  or  consents  to  the  appointment  of  any  receiver,  trustee,  custodian,  conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of its  property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer  is  appointed without the application or consent  of such Person and the appointment continues  undischarged or unstayed for 60 calendar days; or any proceeding under any Debtor Relief Law  relating to any such Person or to all or any material part of its property is instituted without the  consent of such Person and continues undismissed or unstayed for 60 calendar days, or an order  for relief is entered in any such proceeding; or         (g)   Inability to Pay Debts; Attachment.  (i) Any Loan Party or any Subsidiary becomes  unable or admits in writing its inability or fails generally to pay its debts as they become due, or  (ii) any writ or warrant of attachment or execution or similar process is issued or levied against all    

 

   or any material part of the property of any such Person and is not released, vacated or fully bonded  within 30 days after its issue or levy; or         (h)   Judgments.  There is entered against any Loan Party or any Subsidiary (i) one or  more final judgments or orders for the payment of money by such Loan Party or Subsidiary in an  aggregate  amount  (as  to  all  such  judgments  or  orders)  exceeding  $20,000,000  not  stayed,  discharged, vacated, bonded or paid 30 days after entry thereof (to the extent not paid or covered  by independent third-party insurance as to which the insurer does not dispute coverage), or (ii) any  one or more non-monetary final judgments that have, or could reasonably be expected to have,  individually or in the aggregate, a Material Adverse Effect and, in either case, (A) enforcement  proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period  of 30 consecutive days  during which a stay of  enforcement of such judgment,  by reason  of a  pending appeal or otherwise, is not in effect; or         (i)   ERISA.   (i) An  ERISA  Event  occurs  with  respect  to  a  Pension  Plan  or  Multiemployer Plan which has resulted or could reasonably be expected to result in liability of any  Loan Party or any Subsidiary under Title IV of ERISA to the Pension Plan, Multiemployer Plan  or the PBGC in  an aggregate amount in excess of $20,000,000, or (ii) Limited or any ERISA  Affiliate fails to pay when due, after the expiration of any applicable grace period, any installment  payment  with  respect  to  its  withdrawal  liability  under  Section 4201  of  ERISA  under  a  Multiemployer Plan in an aggregate amount in excess of $20,000,000; or         (j)   Invalidity of Loan Documents.  Any provision of any Loan Document, at any time  after its execution and delivery and for any reason other than as expressly permitted hereunder or  thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect; or any  Loan  Party  or  any  other  Person  contests  in  any  manner  the  validity  or  enforceability  of  any  provision of any Loan Document; or any Loan Party denies that it has any or further liability or  obligation under any Loan Document, or purports to revoke, terminate or rescind any provision of  any Loan Document; or         (k)   Change of Control.  There occurs any Change of Control; or         (l)   Licenses.   Any  License  shall  expire  and  not  be  renewed  or  shall  be  otherwise  terminated and such expiration, non-renewal or termination could reasonably be expected to have  a Material Adverse Effect.         8.02  Remedies  Upon  Event  of  Default.  If  any  Event  of  Default  occurs  and  is  continuing, the Administrative Agent shall, at the request of, or may, with the consent of, the  Required Lenders, take any or all of the following actions:         (a)   declare the commitment of each Lender to make Loans and any obligation of the  L/C Issuer to make L/C Credit Extensions to be terminated, whereupon such commitments and  obligation shall be terminated;         (b)   declare the unpaid principal amount of all outstanding Loans, all interest accrued  and unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan  Document  to  be  immediately  due  and  payable,  without  presentment,  demand,  protest  or  other     

 

   notice of any kind, including notice of intent to accelerate and notice of acceleration, all of which  are hereby expressly waived by the Borrower;         (c)   require that the Borrower Cash Collateralize the L/C Obligations (in an amount  equal to the Minimum Collateral Amount with respect thereto); and         (d)   exercise  on  behalf  of  itself  and  the  Lenders  and  the  L/C  Issuer  all  rights  and  remedies available to it, the Lenders and the L/C Issuer under the Loan Documents;   provided, however, that upon the occurrence of an actual or deemed entry of an order for relief  with respect to the Borrower under the Bankruptcy Code of the United States, the obligation of  each Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit Extensions  shall automatically terminate, the unpaid principal amount of all outstanding Loans and all interest  and other amounts as aforesaid shall automatically become due and payable, and the obligation of  the Borrower to Cash Collateralize the L/C Obligations as aforesaid shall automatically become  effective, in each case without further act of the Administrative Agent or any Lender.         8.03  Application of Funds.  After the exercise of remedies provided for in Section 8.02  (or  after  the  Loans  have  automatically  become  immediately  due  and  payable  and  the  L/C  Obligations have automatically been required to be Cash Collateralized as set forth in the proviso  to Section 8.02),  any  amounts  received  on  account  of  the  Obligations  shall,  subject  to  the  provisions of Sections 2.15 and 2.16, be applied by the Administrative Agent in the following  order:         First, to payment of that portion of the Obligations constituting fees, indemnities, expenses  and other amounts (including fees, charges and disbursements of counsel to the Administrative  Agent and amounts payable under Article III) payable to the Administrative Agent in its capacity  as such;         Second, to payment of that portion of the Obligations constituting fees, indemnities and  other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders and  the L/C Issuer (including fees, charges and disbursements of counsel to the respective Lenders and  the L/C Issuer and amounts payable under Article III), ratably among them in proportion to the  amounts described in this clause Second payable to them;         Third, to payment of that portion of the Obligations constituting accrued and unpaid Letter  of Credit Fees and interest on the Loans, L/C Borrowings and other Obligations, ratably among  the Lenders and the L/C Issuer in proportion to the respective amounts described in this clause  Third payable to them;         Fourth, to payment of that portion of the Obligations constituting unpaid principal of the  Loans  and  L/C  Borrowings,  ratably  among  the  Lenders  and  the  L/C  Issuer,  and  to  the  extent  payments under any Guaranty in respect of any other Guarantied Obligations, to the Guarantied  Parties, in proportion to the respective amounts described in this clause Fourth held by them;         Fifth, to the Administrative Agent for the account of the L/C Issuer, to Cash Collateralize  that portion of L/C Obligations comprised of the aggregate undrawn amount of Letters of Credit     

 

   to the extent not otherwise Cash Collateralized by the Borrower pursuant to Sections 2.03 and  2.15; and         Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to  the Borrower or as otherwise required by Law.   Subject to Sections 2.03(c) and 2.15, amounts used to Cash Collateralize the aggregate undrawn  amount of Letters of Credit pursuant to clause Fifth above shall be applied to satisfy drawings  under such Letters of Credit as they occur.  If any amount remains on deposit as Cash Collateral  after all Letters of Credit have either been fully drawn or expired, such remaining amount shall be  applied to the other Obligations, if any, in the order set forth above.   Excluded Swap Obligations with respect to any Guarantor shall not be paid with amounts received  from  such  Guarantor  or  its  assets,  but  appropriate  adjustments  shall  be  made  with  respect  to  payments from other Loan Parties and Affiliates of Loan Parties to preserve the allocations to  Obligations and Guarantied Obligations otherwise set forth above in this Section 8.03.                                   ARTICLE IX.                            ADMINISTRATIVE AGENT         9.01  Appointment  and  Authority.  Each  of  the  Lenders  and  the  L/C  Issuer  hereby  irrevocably appoints Bank of America to act on its behalf as the Administrative Agent hereunder  and under the other Loan Documents and authorizes the Administrative Agent to take such actions  on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms  hereof or thereof, together with such actions and powers as are reasonably incidental thereto.  The  provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and  the L/C Issuer, and no Loan Party shall have rights as a third party beneficiary of any of such  provisions.  It is understood and agreed that the use of the term “agent” herein or in any other Loan  Documents (or any other similar term) with reference to the Administrative Agent is not intended  to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of  any Applicable Law. Instead such term is used as a matter of market custom, and is intended to  create or reflect only an administrative relationship between contracting parties.         9.02  Rights as a Lender.  The Person serving as the Administrative Agent hereunder  shall have the same rights and powers in its capacity as a Lender as any other Lender and may  exercise  the  same  as  though  it  were  not  the  Administrative  Agent  and  the  term  “Lender”  or  “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires,  include the Person serving as the Administrative Agent hereunder in its individual capacity.  Such  Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the  financial advisor or in any other advisory capacity for and generally engage in any kind of business  with, the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the  Administrative Agent hereunder and without any duty to account therefor to the Lenders.         9.03  Exculpatory Provisions.           (a)   The Administrative Agent or the Arranger, as applicable, shall not have any duties  or obligations except those expressly set forth herein and in the other Loan Documents, and its     

 

   duties hereunder shall be administrative in nature.  Without limiting the generality of the foregoing,  the Administrative Agent or the Arranger, as applicable, and its Related Parties:               (i)   shall not be subject to any fiduciary or other implied duties, regardless of        whether a Default has occurred and is continuing;               (ii)  shall  not  have  any  duty to  take  any  discretionary  action  or  exercise  any        discretionary  powers, except  discretionary  rights  and  powers  expressly  contemplated        hereby  or  by  the  other  Loan  Documents  that  the  Administrative  Agent  is  required  to        exercise as directed in writing by the Required Lenders (or such other number or percentage        of the Lenders as shall be expressly provided for herein or in the other Loan Documents),        provided that the Administrative Agent shall not be required to take any action that, in its        opinion or the opinion of its counsel, may expose the Administrative Agent to liability or        that is contrary to any Loan Document or Applicable Law, including for the avoidance of        doubt any action that may be in violation of the automatic stay under any Debtor Relief        Law or that may effect a forfeiture, modification or termination of property of a Defaulting        Lender in violation of any Debtor Relief Law; and               (iii) shall not have any duty or responsibility to disclose, and shall not be liable        for the failure to disclose, to any Lender or the L/C Issuer any credit or other information        concerning the business, prospects, operations, property, financial and other condition or        creditworthiness of any of the Loan Parties or any of their Affiliates that is communicated        to, or in the possession of, the Administrative Agent,  Arranger or any of their Related        Parties in any capacity, except for notices, reports and other documents expressly required        to be furnished to the Lenders by the Administrative Agent herein.         (b)   Neither the Administrative Agent nor any of its Related Parties shall be liable for  any  action  taken  or  not  taken  by the  Administrative  Agent  under  or  in  connection  with  this  Agreement  or  any  other  Loan  Document  or  the  transactions  contemplated  hereby  or  thereby  (i) with the consent or at the request of the Required Lenders (or such other number or percentage  of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith  shall be necessary, under the circumstances as provided in Sections 10.01 and 8.02) or (ii) in the  absence of its own gross negligence or willful misconduct as determined by a court of competent  jurisdiction by a final and non-appealable judgment.  The Administrative Agent shall be deemed  not to have knowledge of any Default unless and until notice describing such Default is given in  writing to the Administrative Agent by the Borrower, a Lender or the L/C Issuer.         (c)   Neither the Administrative Agent nor any of its Related Parties have any duty or  obligation to any Lender or participant or any other Person to ascertain  or inquire into (i) any  statement, warranty or representation made in or in connection with this Agreement or any other  Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder  or thereunder or in connection herewith or therewith, (iii) the performance or observance of any  of  the  covenants,  agreements  or  other  terms  or  conditions  set  forth  herein  or  therein  or  the  occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this  Agreement, any other Loan Document or any other agreement, instrument or document or (v) the  satisfaction of any condition set forth in Article IV or elsewhere herein,  other than to confirm  receipt of items expressly required to be delivered to the Administrative Agent.    

 

         9.04  Reliance by Administrative Agent.  The Administrative Agent shall be entitled to  rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent,  statement, instrument, document or other writing (including any electronic message, Internet or  intranet website posting or other distribution) believed by it to be genuine and to have been signed,  sent or otherwise authenticated by the proper Person.  The Administrative Agent also may rely  upon any statement made to it orally or by telephone and believed by it to have been made by the  proper Person, and shall not incur any liability for relying thereon.  In determining compliance  with  any condition  hereunder to  the making of a Loan, or the issuance, extension,  renewal  or  increase of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or  the L/C Issuer, the Administrative Agent may presume that such condition is satisfactory to such  Lender or the L/C Issuer unless the Administrative Agent shall have received notice to the contrary  from such Lender or the L/C Issuer prior to the making of such Loan or the issuance of such Letter  of Credit.  The Administrative Agent may consult with legal counsel (who may be counsel for the  Borrower), independent accountants and other experts selected by it, and shall not be liable for any  action taken or not taken by it in accordance with the advice of any such counsel, accountants or  experts.         9.05  Delegation of Duties.  The Administrative Agent may perform any and all of its  duties  and exercise its  rights  and powers hereunder or under  any other  Loan Document by or  through any one or more sub-agents appointed by the Administrative Agent.  The Administrative  Agent and any such sub-agent may perform any and all of its duties and exercise its rights and  powers by or through their respective Related Parties.  The exculpatory provisions of this Article  shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any  such sub-agent, and shall apply to their respective activities in connection with the syndication of  the  credit  facilities  provided  for  herein  as  well  as  activities  as  Administrative  Agent.   The  Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents  except to the extent that a court of competent jurisdiction determines in a final and non-appealable  judgment that the Administrative Agent acted with gross negligence or willful misconduct in the  selection of such sub-agents.         9.06  Resignation of Administrative Agent.         (a)   The Administrative Agent  may at  any time give notice of its  resignation to  the  Lenders, the L/C Issuer and the Borrower.  Upon receipt of any such notice of resignation, the  Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor,  which shall be a bank with an office in the United States, or an Affiliate of any such bank with an  office in the United States.  If no such successor shall have been so appointed by the Required  Lenders and shall have accepted such appointment within 30 days after the retiring Administrative  Agent  gives  notice  of  its  resignation  (or  such  earlier  day  as  shall  be  agreed  by  the  Required  Lenders) (the “Resignation Effective Date”), then the retiring Administrative Agent may (but shall  not be obligated to) on behalf of the Lenders and the L/C Issuer, appoint a successor Administrative  Agent meeting the qualifications set forth above.  Whether or not a successor has been appointed,  such  resignation  shall  become  effective  in  accordance  with  such  notice  on  the  Resignation  Effective Date.         (b)   If the Person serving as Administrative Agent is a Defaulting Lender pursuant to  clause (d) of  the  definition  thereof,  the  Required  Lenders  may,  to  the  extent  permitted  by    

 

   Applicable Law, by notice in writing to the Borrower and such Person remove such Person as  Administrative  Agent  and,  with  the consent  of  the Borrower  unless  an  Event  of  Default  has  occurred and is continuing, which consent shall not be unreasonably withheld, appoint a successor,  which successor shall be a bank with an office in the United States, or an Affiliate of any such  bank with an office in the United States.  If no such successor shall have been so appointed by the  Required Lenders and shall have accepted such appointment within 30 days (or such earlier day  as shall be agreed by the Required Lenders) (the “Removal Effective Date”), then such removal  shall nonetheless become effective in accordance with such notice on the Removal Effective Date.         (c)   With effect from the Resignation Effective Date or the Removal Effective Date (as  applicable) (i) the retiring or removed Administrative Agent shall be discharged from its duties  and obligations hereunder and under the other Loan Documents (except that in the case of any  collateral security held by the Administrative Agent on behalf of the Lenders or the L/C Issuer  under any of the Loan Documents, the retiring Administrative Agent shall continue to hold such  collateral security until such time as a successor Administrative Agent is appointed) and (ii) except  for any indemnity payments or other amounts then owed to the retiring or removed Administrative  Agent, all payments, communications and determinations provided to be made by, to or through  the Administrative Agent shall instead be made by or to each Lender and the L/C Issuer directly,  until  such  time,  if  any,  as  the  Required  Lenders  appoint  a  successor  Administrative  Agent  as  provided for above.  Upon the acceptance of a successor’s appointment as Administrative Agent  hereunder,  such  successor  shall  succeed  to  and  become  vested  with  all  of  the  rights,  powers,  privileges and duties of the retiring (or removed) Administrative Agent (other than as provided in  Section 3.01(g) and other than any rights to indemnity payments or other amounts owed to the  retiring or removed Administrative Agent as of the Resignation Effective Date or the Removal  Effective  Date,  as  applicable),  and  the  retiring  or  removed  Administrative  Agent  shall  be  discharged from all of its duties and obligations hereunder or under the other Loan Documents (if  not already discharged therefrom as provided above in this Section) .  The fees payable by the  Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor  unless otherwise agreed between the Borrower and such successor.  After the retiring or removed  Administrative Agent’s resignation or removal hereunder and under the other Loan Documents,  the provisions of this Article and Section 10.04 shall continue in effect for the benefit of such  retiring or removed Administrative Agent, its sub agents and their respective Related Parties in  respect of any actions taken or omitted to be taken by any of them while the retiring or removed  Administrative Agent was acting as Administrative Agent.         (d)   Any  resignation  by  Bank  of  America  as  Administrative  Agent  pursuant  to  this  Section shall also constitute its resignation as L/C Issuer and Swing Line Lender.  If Bank of  America resigns as an L/C Issuer, it shall retain all the rights, powers, privileges and duties of the  L/C Issuer hereunder with respect to all Letters of Credit outstanding as of the effective date of its  resignation as L/C Issuer and all L/C Obligations with respect thereto, including the right to require  the  Lenders  to  make  Base  Rate  Loans  or  fund  risk  participations  in  Unreimbursed  Amounts  pursuant to Section 2.03(c).  If Bank of America resigns as Swing Line Lender, it shall retain all  the rights of the Swing Line Lender provided for hereunder with respect to Swing Line Loans  made by it and outstanding as of the effective date of such resignation, including the right to require  the Lenders to make Base Rate Loans or fund risk participations in outstanding Swing Line Loans  pursuant to Section 2.04(c).  Upon the appointment by the Borrower of a successor L/C Issuer or  Swing  Line  Lender  hereunder and  the  successor’s  acceptance  of  such  appointment (which    

 

   successor shall in all cases be a Lender other than a Defaulting Lender), (a) such successor shall  succeed to and become vested with all of the rights, powers, privileges and duties of the retiring  L/C Issuer or Swing Line Lender, as applicable, (b) the retiring L/C Issuer and Swing Line Lender  shall be discharged from all of their respective duties and obligations hereunder or under the other  Loan Documents, and (c) the successor L/C Issuer shall issue letters of credit in substitution for  the Letters of Credit, if any, outstanding at the time of such succession or make other arrangements  satisfactory to Bank of America to effectively assume the obligations of Bank of America with  respect to such Letters of Credit.         9.07  Non-Reliance on Administrative Agent and Other Lenders.  Each Lender and  the L/C Issuer expressly acknowledges that none of the Administrative Agent nor the Arranger has  made any representation or warranty to it, and that no act by the Administrative Agent or the  Arranger hereafter taken, including any consent to, and acceptance of any assignment or review of  the  affairs  of  any  Loan  Party  or  any  Affiliate  thereof,  shall  be  deemed  to  constitute  any  representation or warranty by the Administrative Agent or the Arranger to any Lender or the L/C  Issuer as to any matter, including whether the Administrative Agent or the Arranger have disclosed  material information in their (or their Related Parties’) possession.  Each Lender and the L/C Issuer  represents to the Administrative Agent and the Arranger that it has, independently and without  reliance upon the Administrative Agent, the Arranger, any other Lender or any of their Related  Parties and based on such documents and information as it has deemed appropriate, made its own  credit analysis of, appraisal of, and investigation into, the business, prospects, operations, property,  financial and other condition and creditworthiness of the Loan Parties and their Subsidiaries, and  all applicable bank or other regulatory Laws relating to the transactions contemplated hereby, and  made its own decision to enter into this Agreement and to extend credit to the Borrower hereunder.   Each Lender and the L/C Issuer also acknowledges that it will, independently and without reliance  upon the Administrative Agent, the Arranger, any other Lender or any of their Related Parties and  based on such documents and information as it shall from time to time deem appropriate, continue  to make its own credit analysis, appraisals and decisions in taking or not taking action under or  based upon this Agreement, any other Loan Document or any related agreement or any document  furnished hereunder or thereunder, and to make such investigations as it deems necessary to inform  itself  as  to  the  business,  prospects,  operations,  property,  financial  and  other  condition  and  creditworthiness of the Loan Parties.  Each Lender and the L/C Issuer represents and warrants that  (i) the Loan Documents set forth the terms of a commercial lending facility and (ii) it is engaged  in making, acquiring or holding commercial loans in the ordinary course and is entering into this  Agreement as a Lender or L/C Issuer for the purpose of making, acquiring or holding commercial  loans and providing other facilities set forth herein as may be applicable to such Lender or L/C  Issuer, and not for the purpose of purchasing, acquiring or holding any other type of financial  instrument, and each Lender and the L/C Issuer agrees not to assert a claim in contravention of the  foregoing.  Each Lender and the L/C Issuer represents and warrants that it is sophisticated with  respect to decisions to make, acquire and/or hold commercial loans and to provide other facilities  set forth herein, as may be applicable to such Lender or such L/C Issuer, and either it, or the Person  exercising discretion in making its decision to make, acquire and/or hold such commercial loans  or to provide such other facilities, is experienced in making, acquiring or holding such commercial  loans or providing such other facilities.         9.08  No Other Duties, Etc.  Anything herein to the contrary notwithstanding, none of  the Bookrunners, Arrangers or other titles as necessary listed on the cover page hereof shall have    

 

   any powers, duties or responsibilities under this Agreement or any of the other Loan Documents,  except  in  its  capacity,  as  applicable,  as  the  Administrative  Agent,  a  Lender  or  the  L/C  Issuer  hereunder.         9.09  Administrative Agent May File Proofs of Claim.  In case of the pendency of any  proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Loan  Party,  the  Administrative  Agent  (irrespective  of  whether  the  principal  of  any  Loan  or  L/C  Obligation shall then be due and payable as herein expressed or by declaration or otherwise and  irrespective of whether the Administrative Agent shall have made any demand on any Loan Party)  shall be entitled and empowered, by intervention in such proceeding or otherwise,         (a)   to file and prove a claim for the whole amount of the principal and interest owing  and unpaid in respect of the Loans, L/C Obligations and all other Obligations that are owing and  unpaid and to file such other documents as may be necessary or advisable in order to have the  claims of the Lenders, the L/C Issuer and the Administrative Agent (including any claim for the  reasonable compensation, expenses, disbursements and advances of the Lenders, the L/C Issuer  and the Administrative Agent and their respective agents and counsel and all other amounts due  the Lenders, the L/C Issuer and the Administrative Agent under Sections 2.03(i) and (j), 2.09 and  10.04) allowed in such judicial proceeding; and         (b)   to collect and receive any monies or other property payable or deliverable on any  such claims and to distribute the same;   and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in  any such judicial proceeding is hereby authorized by each Lender and the L/C Issuer to make such  payments to the Administrative Agent and, in the event that the Administrative Agent shall consent  to  the  making  of  such  payments  directly  to  the  Lenders  and  the  L/C  Issuer,  to  pay  to  the  Administrative Agent any amount due for the reasonable compensation, expenses, disbursements  and advances of the Administrative Agent and its agents and counsel, and any other amounts due  the Administrative Agent under Sections 2.09 and 10.04.         Nothing  contained  herein  shall  be  deemed  to  authorize  the  Administrative  Agent  to  authorize or consent to or accept or adopt on behalf of any Lender or the L/C Issuer any plan of  reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of  any Lender or the L/C Issuer or to authorize the Administrative Agent to vote in respect of the  claim of any Lender or the L/C Issuer in any such proceeding.         9.10  Collateral and Guaranty Matters.  The Lenders and the L/C Issuer irrevocably  authorize the Administrative Agent, at its option and in its discretion,         (a)   to release any Lien on any property granted to or held by the Administrative Agent  under any Loan Document (i) upon termination of the Aggregate Commitments and payment in  full  of  all  Guarantied  Obligations  (other  than  contingent  indemnification  obligations)  and  the  expiration or termination of all Letters of Credit (other than Letters of Credit as to which other  arrangements satisfactory to the Administrative Agent and the L/C Issuer shall have been made),  (ii) that is Disposed or to be Disposed as part of or in connection with any Disposition permitted     

 

   hereunder  or  under  any  other  Loan  Document, or  (iii) subject  to Section 10.01,  if  approved,  authorized or ratified in writing by the Required Lenders; and         (b)   (i) to  release  any  Guarantor (and  any  other  Guarantor  that  is  a  parent  of  such  Guarantor,  if  such  parent’s  sole  assets  are  the  Equity  Interests  of  such  Guarantor) from  its  obligations under the Guaranty if such Person ceases to be a Subsidiary as a result of a transaction  permitted  hereunder,  and (ii) the  Administrative  Agent,  the  Lenders  and  the  L/C  Issuer  shall  release any Guarantor (and any other Guarantor that is a parent of such Guarantor, if such parent’s  sole  assets  are  the  Equity  Interests  of  such  Guarantor) subject  to  a  Disposition  permitted  by  Section 7.04 or 7.05.         Upon request by the Administrative Agent at any time, the Required Lenders will confirm  in writing the Administrative Agent’s authority to release any Guarantor from its obligations under  the Guaranty pursuant to this Section 9.10.         9.11  ERISA Plan Assets.            (a)   Each  Lender  (x)  represents  and  warrants,  as  of  the  date  such  Person  became  a  Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto  to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative  Agent and each Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or  for the benefit of the Borrower or any other Loan Party, that at least one of the following is and  will be true:                (i)   such Lender is not using “plan assets” (within the meaning of 29 CFR §        2510.3-101, as modified by Section 3(42) of ERISA) of one or more Benefit Plans with        respect to such Lender’s entrance into, participation in, administration of and performance        of the Loans, the Letters of Credit, the Commitments and this Agreement,               (ii)  the transaction exemption set forth in one or more PTEs, such as PTE 84-       14  (a  class  exemption  for  certain  transactions  determined  by  independent  qualified        professional  asset  managers),  PTE  95-60  (a  class  exemption  for  certain  transactions        involving insurance company general accounts), PTE 90-1 (a class exemption for certain        transactions involving insurance company pooled separate accounts), PTE 91-38 (a class        exemption for certain transactions involving bank collective investment funds) or PTE 96-       23 (a class exemption for certain transactions determined by in-house asset managers), is        applicable with respect to such Lender’s entrance into, participation in, administration of        and performance of the Loans, the Letters of Credit, the Commitments and this Agreement,               (iii) (A)  such  Lender  is  an  investment  fund  managed  by  a  “Qualified        Professional  Asset  Manager”  (within  the  meaning  of  Part  VI  of  PTE  84-14),  (B)  such        Qualified Professional  Asset Manager made the  investment  decision on  behalf of such        Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit,        the  Commitments and  this  Agreement,  (C)  the  entrance  into,  participation  in,        administration of and performance of the Loans, the Letters of Credit, the Commitments        and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of        PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection    

 

         (a)  of Part  I  of  PTE  84-14  are  satisfied  with  respect  to  such Lender’s  entrance  into,        participation in, administration of and performance of the Loans, the Letters of Credit, the        Commitments and this Agreement, or               (iv)  such  other  representation,  warranty  and  covenant  as  may  be  agreed  in        writing between the Administrative Agent, in its sole discretion, and such Lender.         (b)   In addition, unless either (1) clause (i) in the immediately preceding clause (a) is  true with respect to a Lender or (2) a Lender has provided another representation, warranty and  covenant  in accordance  with clause (iv) in  the immediately  preceding clause (a), such Lender  further (x) represents and warrants, as of the date such Person became a Lender party hereto, to,  and (y) covenants, from the date such Person became a Lender party hereto to the date such Person  ceases being a Lender party hereto, for the benefit of, the Administrative Agent and each Arranger  and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the  Borrower or any other Loan Party, that none of the Administrative Agent or any Arranger or any  of their respective Affiliates is a fiduciary with respect to the assets of such Lender involved in  such Lender’s entrance into, participation in, administration of and performance of the Loans, the  Letters  of  Credit,  the  Commitments and  this  Agreement  (including  in  connection  with  the  reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan  Document or any documents related to hereto or thereto).                                    ARTICLE X.                                MISCELLANEOUS         10.01 Amendments, Etc.  No amendment or waiver of any provision of this Agreement  or any other Loan Document, and no consent to any departure by any Loan Party therefrom, shall  be effective unless in writing signed by the Required Lenders and the applicable Loan Party, as  the case may be, and acknowledged by the Administrative Agent (or signed by the Administrative  Agent  with  the  consent  of  the  Required  Lenders),  and  each  such  waiver  or  consent  shall  be  effective only  in  the specific instance  and for the specific purpose for which given; provided,  however, that no such amendment, waiver or consent shall:         (a)   waive any condition set forth in Section 4.01(a) without the written consent of each  Lender;         (b)   extend or increase the Commitment of any Lender (or reinstate any Commitment  terminated  pursuant  to Section 8.02)  without  the  written  consent  of  such  Lender (it  being  understood that a waiver of any condition precedent set forth in Section 4.02 or the waiver of any  Default or mandatory prepayment shall not constitute an extension or increase of any Commitment  of any Lender);         (c)   postpone any date fixed by this Agreement or any other Loan Document for any  payment (excluding mandatory prepayments) of principal, interest, fees or other amounts due to  the Lenders (or any of them) hereunder or under any other Loan Document without the written  consent of each Lender directly affected thereby;         (d)   reduce the principal of, or the rate of interest specified herein on, any Loan or L/C  Borrowing, or (subject to clause (iv) of the second proviso to this Section 10.01) any fees or other    

 

   amounts payable hereunder or under any other Loan Document without the written consent of each  Lender directly affected thereby; provided, however, that only the consent of the Required Lenders  shall be necessary (i) to amend the definition of “Default Rate” or to waive any obligation of the  Borrower to pay interest or Letter of Credit Fees at the Default Rate or (ii) to amend any financial  covenant hereunder (or any defined term used therein) even if the effect of such amendment would  be to  reduce the rate of  interest  on any Loan or  L/C Borrowing or to  reduce any  fee payable  hereunder, provided that the numerical values specified in the definition of “Applicable Rate” shall  not be changed in a manner which would result in a lower Applicable Rate without the consent of  each Lender affected thereby;         (e)   change Section 2.13 or Section 8.03 in  a  manner  that  would  alter  the  pro  rata  sharing of payments required thereby or the order in which Obligations are paid without the written  consent of each Lender;         (f)   change any provision of this Section or the definition of “Required Lenders” or any  other provision hereof specifying the number or percentage of Lenders required to amend, waive  or  otherwise  modify  any  rights  hereunder  or  make  any  determination  or  grant  any  consent  hereunder, without the written consent of each Lender;         (g)   except as permitted herein, release all or substantially all of the Guarantors from  the Guaranty without the written consent of each Lender; or         (h)   amend Section 1.07 or the definition of “Alternative Currency” without the written  consent of each Lender;   and, provided further, that (i) no amendment, waiver or consent shall, unless in writing and signed  by the L/C Issuer in addition to the Lenders required above, affect the rights or duties of the L/C  Issuer under this Agreement or any Issuer Document relating to any Letter of Credit issued or to  be issued by it; (ii) no amendment, waiver or consent shall, unless in writing and signed by the  Swing Line Lender in addition to the Lenders required above, affect the rights or duties of the  Swing Line Lender under this Agreement; (iii) no amendment, waiver or consent shall, unless in  writing and signed by the Administrative Agent in addition to the Lenders required above, affect  the  rights  or  duties  of  the  Administrative  Agent  under  this  Agreement  or  any  other  Loan  Document; (iv) the Autoborrow Agreement and any fee letters executed in connection therewith  may be amended, or rights or privileges thereunder waived, in a writing executed only by the  parties thereto; (v) the Fee Letter may be amended, or rights or privileges thereunder waived, in a  writing executed only by the parties thereto; (vi) the Administrative Agent, with the consent of the  Borrower, may amend, modify or supplement any Loan Document pursuant Section 2.14(e) or  Section  10.24 without  the  consent  of  any  Lender  or  the  Required  Lenders  and  (vii)  the  Administrative Agent and the Borrower may amend this Agreement for the purpose of replacing  LIBOR in accordance with, and subject to the terms of, Section 3.08.  Notwithstanding anything  to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any  amendment, waiver or consent hereunder (and any amendment, waiver or consent which by its  terms requires the consent of all Lenders or each affected Lender may be effected with the consent  of the applicable Lenders other than Defaulting Lenders), except that (x) the Commitment of any  Defaulting  Lender  may  not  be  increased  or  extended without  the  consent  of  such  Lender  and  (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected    

 

   Lender that by its terms affects any Defaulting Lender disproportionately adversely relative to  other affected Lenders shall require the consent of such Defaulting Lender.   Notwithstanding  any  provision  herein  to  the  contrary,  if  the  Administrative  Agent  and  the  Borrower acting together identify any ambiguity, omission, mistake, typographical error or other  defect in any provision of this Agreement or any other Loan Document (including the schedules  and exhibits thereto), then the Administrative Agent and the Borrower shall be permitted to amend,  modify or supplement such provision to cure such ambiguity, omission, mistake, typographical  error or other defect, and such amendment shall become effective without any further action or  consent of any other party to this Agreement.         10.02 Notices; Effectiveness; Electronic Communication.         (a)   Notices  Generally.   Except  in  the  case  of  notices  and  other communications  expressly permitted to be given by telephone (and except as provided in subsection (b) below), all  notices and other communications provided for herein shall be in writing and shall be delivered by  hand or overnight courier service, mailed by certified or registered mail or sent by telecopier (with  confirmation) as follows, and all notices and other communications expressly permitted hereunder  to be given by telephone shall be made to the applicable telephone number, as follows:               (i)   if to the Borrower, the Administrative Agent, the L/C Issuer or the Swing        Line  Lender,  to  the  address,  telecopier  number,  electronic  mail  address  or  telephone        number specified for such Person on Schedule 10.02; and               (ii)  if to any other Lender, to the address, telecopier number, electronic mail        address or telephone number specified in its Administrative Questionnaire (including, as        appropriate,  notices  delivered  solely  to  the  Person  designated  by  a  Lender  on  its        Administrative Questionnaire then in effect for the delivery of notices that may contain        material non-public information relating to the Borrower).   Notices and other communications sent by hand or overnight courier service, or mailed by certified  or  registered  mail,  shall  be  deemed  to  have  been  given  when  received;  notices  and  other  communications sent by telecopier shall be deemed to have been given when sent (except that, if  not given during normal business hours for the recipient, shall be deemed to have been given at  the  opening  of  business  on  the  next business day for  the  recipient).   Notices  and  other  communications delivered through electronic communications to the extent provided in subsection  (b) below, shall be effective as provided in such subsection (b).         This Agreement was prepared by:     Greenberg Traurig, LLP                                            2200 Ross Avenue, Suite 5200                                            Dallas, Texas 75201                                            Attention: Lou Ann Brunenn                                            Phone: 214-665-3661                                            E-mail: brunennl@gtlaw.com                                                    (b)   Electronic Communications.  Notices and other communications to the Lenders and  the L/C Issuer hereunder may be delivered or furnished by electronic communication (including    

 

   e-mail, FpML messaging, and Internet or intranet websites) pursuant to procedures approved by  the Administrative Agent, provided that the foregoing shall not apply to notices to any Lender or  the L/C Issuer pursuant to Article II if such Lender or the L/C Issuer, as applicable, has notified  the Administrative Agent that it is incapable of receiving notices under such Article by electronic  communication.   The  Administrative  Agent,  the  Swing  Line  Lender,  the  L/C  Issuer or  the  Borrower  may each,  in its discretion,  agree  to  accept  notices  and  other  communications  to  it  hereunder  by  electronic  communications  pursuant  to  procedures  approved  by  it, provided that  approval of such procedures may be limited to particular notices or communications.         Unless  the  Administrative  Agent  otherwise  prescribes,  (i) notices  and  other  communications sent to an e-mail address shall be deemed received upon the sender’s receipt of  an  acknowledgement  from  the  intended  recipient  (such  as  by  the  “return  receipt  requested”  function,  as  available,  return  e-mail  or  other  written  acknowledgement),  and  (ii) notices  or  communications  posted  to  an  Internet  or  intranet  website  shall  be  deemed  received upon  the  deemed  receipt  by  the  intended  recipient  at  its  e-mail  address  as  described  in  the  foregoing  clause (i) of notification that such notice or communication is available and identifying the website  address  therefor; provided that,  for  both  clauses (i)  and  (ii),  if  such  notice,  email  or  other  communication is not sent during the normal business hours of the recipient, such notice, email or  communication shall be deemed to have been sent at the opening of business on the next business  day for the recipient.         (c)   The  Platform.   THE  PLATFORM  IS  PROVIDED  “AS  IS”  AND  “AS  AVAILABLE.”  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE  ACCURACY  OR  COMPLETENESS  OF  THE  BORROWER  MATERIALS  OR  THE  ADEQUACY  OF  THE  PLATFORM,  AND  EXPRESSLY  DISCLAIM  LIABILITY  FOR  ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY OF  ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF  MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT  OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS,  IS  MADE  BY  ANY  AGENT  PARTY  IN  CONNECTION  WITH  THE  BORROWER  MATERIALS OR THE PLATFORM.  In no event shall the Administrative Agent or any of its  Related Parties (collectively, the “Agent Parties”) have any liability to the Borrower, any Lender,  the L/C Issuer or any other Person for losses, claims, damages, liabilities or expenses of any kind  (whether in tort, contract or otherwise) arising out of the Borrower’s or the Administrative Agent’s  transmission  of  Borrower  Materials  or  notices  through  the  Platform  or  any  other  electronic  platform or electronic messaging service or through the Internet, except to the extent that such  losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction  by  a  final  and  non-appealable  judgment  to  have  resulted  from  the  gross  negligence  or  willful  misconduct of such Agent Party; provided, however, that in no event shall any Agent Party have  any liability to the Borrower, any Lender, the L/C Issuer or any other Person for indirect, special,  incidental, consequential or punitive damages (as opposed to direct or actual damages).         (d)   Change of Address, Etc.  Each of the Borrower, the Administrative Agent, the L/C  Issuer and the Swing Line Lender may change its address, telecopier or telephone number for  notices and other communications hereunder by notice to the other parties hereto.  Each other  Lender  may  change  its  address,  telecopier  or  telephone  number  for  notices  and  other  communications hereunder by notice to the Borrower, the Administrative Agent, the L/C Issuer    

 

   and the Swing Line Lender.  In addition, each Lender agrees to notify the Administrative Agent  from time to time to ensure that the Administrative Agent has on record (i) an effective address,  contact name, telephone number, telecopier number and electronic mail address to which notices  and other communications may be sent and (ii) accurate wire instructions for such Lender.         (e)   Reliance by Administrative Agent, L/C Issuer and Lenders.  The Administrative  Agent, the L/C Issuer and the Lenders shall be entitled to rely and act upon any notices (including  telephonic notices, Revolving Loan Notices, Letter of Credit Applications and Swing Line Loan  Notices) purportedly given by or on behalf of the Borrower even if (i) such notices were not made  in a manner specified herein, were incomplete or were not preceded or followed by any other form  of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any  confirmation thereof.  The Borrower shall indemnify the Administrative Agent, the L/C Issuer,  each Lender and the Related Parties of each of them from all losses, costs, expenses and liabilities  resulting from the reliance by such Person on each notice purportedly given by or on behalf of the  Borrower.  All telephonic notices to and other telephonic communications with the Administrative  Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents  to such recording.         10.03 No Waiver; Cumulative Remedies.  No failure by any Lender, the L/C Issuer or  the Administrative Agent to exercise, and no delay by any such Person in exercising, any right,  remedy, power or privilege hereunder or under any other Loan Document shall operate as a waiver  thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder  preclude any other or further exercise thereof or the exercise of any other right, remedy, power or  privilege.  The rights, remedies, powers and privileges herein provided, and provided under each  other  Loan  Document,  are  cumulative  and  not  exclusive  of  any  rights,  remedies,  powers  and  privileges provided by law.         Notwithstanding anything to the contrary contained herein or in any other Loan Document,  the authority to enforce rights and remedies hereunder and under the other Loan Documents against  the Loan Parties or any of them shall be vested exclusively in, and all actions and proceedings at  Law in connection with such enforcement shall be instituted and maintained exclusively by, the  Administrative Agent in accordance with Section 8.02 for the benefit of all the Lenders and the  L/C Issuer; provided, however, that the foregoing shall not prohibit (a) the Administrative Agent  from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its  capacity as Administrative Agent) hereunder and under the other Loan Documents, (b) the L/C  Issuer or the Swing Line Lender from exercising the rights and remedies that inure to its benefit  (solely in its capacity as L/C Issuer or Swing Line Lender, as the case may be) hereunder and under  the  other  Loan  Documents,  (c) any  Lender  from  exercising  setoff  rights  in  accordance  with  Section 10.08 (subject to the terms of Section 2.13), or (d) any Lender from filing proofs of claim  or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative  to any Loan Party under any Debtor Relief Law; and provided, further, that if at any time there is  no Person acting as Administrative Agent hereunder and under the other Loan Documents, then  (i) the  Required  Lenders  shall  have  the  rights  otherwise  ascribed  to  the  Administrative  Agent  pursuant to Section 8.02 and (ii) in addition to the matters set forth in clauses (b), (c) and (d) of  the  preceding  proviso  and  subject  to Section 2.13,  any  Lender  may,  with  the  consent  of  the  Required  Lenders,  enforce  any  rights  and  remedies  available  to  it and  as  authorized  by  the  Required Lenders.    

 

         10.04 Expenses; Indemnity; Damage Waiver.         (a)   Costs  and  Expenses.   The  Borrower  shall  pay  (i) all  reasonable  out-of-pocket  expenses incurred by the Administrative Agent and its Affiliates (including the reasonable fees,  charges  and  disbursements  of  counsel  for  the  Administrative  Agent),  in  connection  with  the  syndication  of  the  credit  facilities  provided  for  herein,  the  preparation,  negotiation,  execution,  delivery and administration of this Agreement and the other Loan Documents or any amendments,  modifications  or  waivers  of  the  provisions  hereof  or  thereof  (whether  or  not  the  transactions  contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses  incurred by the L/C Issuer in connection with the issuance, amendment, renewal or extension of  any Letter of Credit or any demand for payment thereunder and (iii) all out-of-pocket expenses  incurred by the Administrative Agent, any Lender or the L/C Issuer (including the fees, charges  and disbursements of any counsel for the Administrative Agent, any Lender or the L/C Issuer), in  connection with the enforcement or protection of its rights (A) in connection with this Agreement  and the other Loan Documents, including its rights under this Section, or (B) in connection with  the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses  incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of  Credit, except to the extent that the Administrative Agent, any Lender or the L/C Issuer is not  entitled to indemnification under this Agreement.         (b)   Indemnification by the Borrower.  THE BORROWER SHALL INDEMNIFY THE  ADMINISTRATIVE AGENT (AND ANY SUB-AGENT THEREOF), EACH LENDER            AND  THE  L/C  ISSUER,  AND  EACH  RELATED  PARTY  OF  ANY  OF  THE  FOREGOING  PERSONS (EACH SUCH PERSON BEING CALLED AN “INDEMNITEE”) AGAINST, AND  HOLD  EACH  INDEMNITEE  HARMLESS  FROM,  ANY  AND  ALL  LOSSES,  CLAIMS,  DAMAGES,  LIABILITIES  AND  RELATED  EXPENSES  (INCLUDING  THE  FEES,  CHARGES  AND  DISBURSEMENTS  OF  ANY  COUNSEL  FOR  ANY  INDEMNITEE),  INCURRED  BY  ANY  INDEMNITEE  OR  ASSERTED  AGAINST  ANY  INDEMNITEE  BY  ANY THIRD PARTY OR BY THE BORROWER OR ANY OTHER LOAN PARTY ARISING  OUT  OF,  IN  CONNECTION  WITH,  OR  AS  A  RESULT  OF  (i) THE EXECUTION  OR  DELIVERY  OF  THIS  AGREEMENT,  ANY  OTHER  LOAN  DOCUMENT  OR  ANY  AGREEMENT  OR  INSTRUMENT  CONTEMPLATED  HEREBY  OR  THEREBY,  THE  PERFORMANCE  BY  THE  PARTIES  HERETO  OF  THEIR  RESPECTIVE  OBLIGATIONS  HEREUNDER OR THEREUNDER OR THE CONSUMMATION OF THE TRANSACTIONS  CONTEMPLATED HEREBY OR THEREBY, (ii) ANY LOAN OR LETTER OF CREDIT OR  THE  USE  OR  PROPOSED  USE  OF  THE  PROCEEDS  THEREFROM  (INCLUDING  ANY  REFUSAL  BY  THE  L/C  ISSUER  TO  HONOR  A  DEMAND  FOR  PAYMENT  UNDER  A  LETTER OF CREDIT IF THE DOCUMENTS PRESENTED IN CONNECTION WITH SUCH  DEMAND  DO  NOT  STRICTLY  COMPLY  WITH  THE  TERMS  OF  SUCH  LETTER  OF  CREDIT), (iii) ANY ACTUAL OR ALLEGED PRESENCE OR RELEASE OF HAZARDOUS  MATERIALS ON OR FROM ANY PROPERTY OWNED OR OPERATED BY LIMITED OR  ANY OF ITS SUBSIDIARIES, OR ANY ENVIRONMENTAL LIABILITY RELATED IN ANY  WAY  TO  LIMITED  OR  ANY  OF  ITS  SUBSIDIARIES,  OR  (iv) ANY  ACTUAL  OR  PROSPECTIVE  CLAIM,  LITIGATION,  INVESTIGATION  OR  PROCEEDING  RELATING  TO  ANY  OF  THE  FOREGOING,  WHETHER  BASED  ON  CONTRACT,  TORT  OR  ANY  OTHER  THEORY,  WHETHER  BROUGHT      BY  A  THIRD  PARTY  OR  BY  ANY  LOAN  PARTY, AND REGARDLESS OF WHETHER ANY INDEMNITEE IS A PARTY THERETO,    

 

   IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN  PART, OUT OF THE NEGLIGENCE OF THE INDEMNITEE; PROVIDED THAT SUCH  INDEMNITY SHALL NOT, AS TO ANY INDEMNITEE, BE AVAILABLE TO THE EXTENT  THAT  SUCH  LOSSES,  CLAIMS,  DAMAGES,  LIABILITIES  OR  RELATED  EXPENSES  (x) ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY FINAL AND  NONAPPEALABLE JUDGMENT TO HAVE RESULTED FROM THE GROSS NEGLIGENCE  OR WILLFUL MISCONDUCT OF SUCH INDEMNITEE OR (y) RESULT FROM A CLAIM  BROUGHT BY ANY LOAN PARTY AGAINST AN INDEMNITEE FOR BREACH IN BAD  FAITH OF SUCH INDEMNITEE’S OBLIGATIONS HEREUNDER OR UNDER ANY OTHER  LOAN  DOCUMENT,  IF  SUCH  LOAN  PARTY  HAS  OBTAINED  A  FINAL  AND  NONAPPEALABLE JUDGMENT IN ITS FAVOR ON SUCH CLAIM AS DETERMINED BY  A COURT OF COMPETENT JURISDICTION.         (c)   Reimbursement by Lenders.  To the extent that the Borrower for any reason fails to  indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by it to  the Administrative Agent (or any sub-agent thereof), the L/C Issuer, the Swing Line Lender or any  Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative  Agent (or any such sub-agent), the L/C Issuer, the Swing Line Lender or such Related Party, as  the  case  may  be,  such  Lender’s  pro  rata  share  (determined  as  of  the  time  that  the  applicable  unreimbursed expense or indemnity payment is sought based on each Lender’s share of the Total  Credit Exposure at such time) of such unpaid amount (including any such unpaid amount in respect  of a claim asserted by such Lender), such payment to be made severally among them based on  such Lender’s Applicable Percentage (determined as of the time that the applicable unreimbursed  expense  or  indemnity  payment  is  sought), provided  further that  the  unreimbursed  expense  or  indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by  or asserted against the Administrative Agent (or any such sub-agent), the L/C Issuer or the Swing  Line Lender in its capacity as such, or against any Related Party of any of the foregoing acting for  the  Administrative  Agent  (or  any  such  sub-agent), L/C  Issuer or  the  Swing  Line  Lender in  connection with such capacity.  The obligations of the Lenders under this subsection (c) are subject  to the provisions of Section 2.12(d).         (d)   Waiver  of  Consequential  Damages,  Etc.  To  the  fullest  extent  permitted  by  Applicable  Law,  the  Borrower  shall  not  assert,  and  hereby  waives  any  claim  against  any  Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as  opposed to  direct  or actual  damages) arising  out  of, in  connection with,  or as  a result of, this  Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the  transactions  contemplated  hereby  or  thereby,  any  Loan  or  Letter  of  Credit  or  the  use  of  the  proceeds  thereof.   No  Indemnitee  referred  to  in  subsection (b)  above  shall  be  liable  for  any  damages arising  from  the  use  by  unintended  recipients  of  any  information  or  other  materials  distributed  to  such  unintended  recipients  by  such  Indemnitee  through  telecommunications,  electronic or other information transmission systems in connection with this Agreement or the  other Loan Documents or the transactions contemplated hereby or thereby.         (e)   Payments.  All amounts due under this Section shall be payable not later than ten  Business Days after demand therefor.     

 

         (f)   Survival.   The  agreements  in  this  Section  and  the  indemnity  provisions of  Section 10.02(e) shall survive the resignation of the Administrative Agent and the L/C Issuer, the  replacement of any Lender, the termination of the Aggregate Commitments and the repayment,  satisfaction or discharge of all the other Obligations.         10.05 Payments  Set  Aside.  To  the  extent  that  any  payment  by  or  on  behalf  of  the  Borrower is made to the Administrative Agent, the L/C Issuer or any Lender, or the Administrative  Agent, the L/C Issuer or any Lender exercises its right of setoff, and such payment or the proceeds  of  such  setoff  or  any  part  thereof  is  subsequently  invalidated,  declared  to  be  fraudulent  or  preferential,  set  aside  or  required  (including  pursuant  to  any  settlement  entered  into  by  the  Administrative Agent, the L/C Issuer or such Lender in its discretion) to be repaid to a trustee,  receiver or any other party, in connection with any proceeding under any Debtor Relief Law or  otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended  to be satisfied shall be revived and continued in full force and effect as if such payment had not  been made or such setoff had not occurred, and (b) each Lender and the L/C Issuer severally agrees  to pay to the Administrative Agent upon demand its applicable share (without duplication) of any  amount so recovered from or repaid by the Administrative Agent, plus interest thereon from the  date of such demand to the date such payment is made at a rate per annum equal to the applicable  Overnight Rate from time to time in effect.  The obligations of the Lenders and the L/C Issuer  under clause (b) of the preceding sentence shall survive the payment in full of the Obligations and  the termination of this Agreement.         10.06 Successors and Assigns.         (a)   Successors  and  Assigns  Generally.   The  provisions  of  this  Agreement  shall  be  binding upon and inure to the benefit of the parties hereto and their respective successors and  assigns permitted hereby, except that neither the Borrower nor any other Loan Party may assign  or otherwise transfer any of its rights or obligations hereunder without the prior written consent of  the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of  its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of  subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of  subsection (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject  to the restrictions of subsection (f) of this Section (and any other attempted assignment or transfer  by any party hereto shall be null and void).  Nothing in this Agreement, expressed or implied, shall  be construed to confer upon any Person (other than the parties hereto, their respective successors  and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section  and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative  Agent, the L/C Issuer and the Lenders) any legal or equitable right, remedy or claim under or by  reason of this Agreement.         (b)   Assignments  by  Lenders.   Any  Lender  may  at  any  time  assign  to  one  or  more  assignees all or a portion of its rights and obligations under this Agreement (including all or a  portion  of  its  Commitment  and  the  Loans  (including  for  purposes  of  this  subsection (b),  participations in L/C Obligations and in Swing Line Loans) at the time owing to it); provided that  any such assignment shall be subject to the following conditions:     

 

                      (i)   Minimum Amounts.               (A)   in the case of an assignment of the entire remaining amount of the        assigning Lender’s Commitment and the Loans at the time owing to it or in the case        of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no        minimum amount need be assigned; and               (B)   in any case not described in subsection (b)(i)(A) of this Section, the        aggregate  amount  of  the  Commitment  (which  for  this  purpose  includes  Loans        outstanding thereunder) or, if the Commitment is not then in effect, the principal        outstanding  balance  of  the  Loans  of  the  assigning  Lender  subject  to  each  such        assignment, determined as of the date the Assignment and Assumption with respect        to such assignment is delivered to the Administrative Agent or, if “Trade Date” is        specified in the Assignment and Assumption, as of the Trade Date, shall not be less        than $5,000,000 unless each of the Administrative Agent and, so long as no Event        of Default has occurred and is continuing, the Borrower otherwise consents (each        such consent not to be unreasonably withheld or delayed).         (ii)  Proportionate  Amounts.   Each  partial  assignment  shall  be  made  as  an  assignment of a proportionate part of all the assigning Lender’s rights and obligations under  this Agreement with respect to the Loans or the Commitment assigned, except that this  clause (ii)  shall  not  apply  to  rights  in  respect  of  the  Swing  Line  Lender’s  rights  and  obligations in respect of Swing Line Loans;         (iii) Required Consents.  No consent shall be required for any assignment except  to the extent required by subsection (b)(i)(B) of this Section and, in addition:               (A)   the consent of the Borrower (such consent not to be unreasonably        withheld)  shall  be  required  unless  (1) an  Event  of  Default  has  occurred  and  is        continuing at the time of such assignment or (2) such assignment is to a Lender, an        Affiliate  of  a  Lender  (other  than  an  Affiliate  that  is  a  Foreign  Lender)  or  an        Approved Fund; provided that the Borrower shall be deemed to have consented to        any  such  assignment  unless  it  shall  object  thereto  by  written  notice  to  the        Administrative Agent within five (5) Business Days after having received notice        thereof;               (B)   the  consent  of  the  Administrative  Agent  (such  consent  not  to  be        unreasonably  withheld  or  delayed)  shall  be  required  if  such  assignment  is  to  a        Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with        respect to such Lender;               (C)   the consent of the L/C Issuer (such consent not to be unreasonably        withheld  or  delayed)  shall  be  required  for  any  assignment  that  increases  the        obligation of the assignee to participate in exposure under one or more Letters of        Credit (whether or not then outstanding); and               (D)   the  consent  of  the  Swing  Line  Lender  (such  consent  not  to  be        unreasonably withheld or delayed) shall be required for any assignment.                 

 

               (iv)  Assignment and Assumption.  The parties to each assignment shall execute        and deliver to the Administrative Agent an Assignment and Assumption, together with a        processing and recordation fee in the amount of $3,500 (which shall not be charged to any        Loan Party); provided, however, that the Administrative Agent may, in its sole discretion,        elect to waive such processing and recordation fee in the case of any assignment.  The        assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative        Questionnaire.               (v)   No  Assignment  to  Certain  Persons.   No  such  assignment  shall  be  made        (A) to  the  Borrower  or  any  of  the  Borrower’s  Affiliates  or  Subsidiaries,  or  (B) to  any        Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender        hereunder, would constitute any of the foregoing Persons described in this clause (B), or        (C) to a natural person.               (vi)  Certain Additional Payments.  In connection with any assignment of rights        and obligations of any Defaulting Lender hereunder, no such assignment shall be effective        unless and until, in addition to the other conditions thereto set forth herein, the parties to        the assignment shall make such additional payments to the Administrative Agent in an        aggregate  amount  sufficient,  upon  distribution  thereof  as  appropriate (which  may  be        outright payment, purchases by the assignee of participations or subparticipations, or other        compensating  actions,  including  funding,  with  the  consent  of  the  Borrower  and  the        Administrative Agent, the applicable pro rata share of Loans previously requested but not        funded by the Defaulting Lender, to each of which the applicable assignee and assignor        hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed        by  such  Defaulting  Lender  to  the  Administrative  Agent,  the  L/C  Issuer  or  any  Lender        hereunder (and interest accrued thereon) and (y) acquire (and fund as appropriate) its full        pro rata share of all Loans and participations in Letters of Credit and Swing Line Loans in        accordance with its Applicable Percentage.  Notwithstanding the foregoing, in the event        that any assignment of rights and obligations of any Defaulting Lender hereunder shall        become effective under applicable Law without compliance with the provisions of this        paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for        all purposes of this Agreement until such compliance occurs.   Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c)  of this Section, from and after the effective date specified in each Assignment and Assumption,  the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned  by  such  Assignment  and  Assumption,  have  the  rights  and  obligations  of  a  Lender  under  this  Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by  such Assignment and Assumption, be released from its obligations under this Agreement (and, in  the  case  of  an  Assignment  and  Assumption  covering  all  of  the  assigning  Lender’s  rights  and  obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue  to  be  entitled  to  the  benefits  of Sections 3.01, 3.04, 3.05,  and 10.04 with  respect  to  facts  and  circumstances occurring prior to the effective date of such assignment; provided, that except to the  extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender  will constitute a waiver or release of any claims of any party hereunder arising from that Lender’s  having been a Defaulting Lender.  Upon request, the Borrower (at its expense) shall execute and  deliver  a  Note  to  the  assignee  Lender.   Any  assignment  or  transfer  by  a  Lender  of  rights  or    

 

   obligations under this Agreement that does not comply with this subsection shall be treated for  purposes  of  this  Agreement  as  a  sale  by  such  Lender  of  a  participation  in  such  rights  and  obligations in accordance with subsection (d) of this Section.         (c)   Register.   The  Administrative  Agent,  acting  solely  for  this  purpose  as  a  non- fiduciary agent of the Borrower (and such agency being solely for tax purposes), shall maintain at  the Administrative Agent’s Office a copy of each Assignment and Assumption delivered to it (or  the  equivalent  thereof  in  electronic  form)  and  a  register  for  the  recordation  of  the  names  and  addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of  the Loans and L/C Obligations owing to, each Lender pursuant to the terms hereof from time to  time (the “Register”).  The entries in the Register shall be conclusive absent manifest error, and  the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is  recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this  Agreement, notwithstanding notice to the contrary.  In addition, the Administrative Agent shall  maintain on the Register information regarding the designation, and revocation of designation, of  any Lender as a Defaulting Lender.  The Register shall be available for inspection by the Borrower  and any Lender, at any reasonable time and from time to time upon reasonable prior notice.         (d)   Participations.  Any Lender may at any time, without the consent of, or notice to,  the Borrower or the Administrative Agent, sell participations to any Person (other than a natural  Person, a Defaulting Lender or the Borrower or any of the Borrower’s Affiliates or Subsidiaries)  (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this  Agreement  (including  all  or  a  portion  of  its  Commitment  and/or  the  Loans  (including  such  Lender’s participations in L/C Obligations and/or Swing Line Loans) owing to it); provided that  (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall  remain solely responsible to the other parties hereto for the performance of such obligations and  (iii) the Borrower, the Administrative Agent, the Lenders and the L/C Issuer shall continue to deal  solely and directly with such Lender in connection with such Lender’s rights and obligations under  this Agreement.  For avoidance of default, each Lender shall be responsible for the indemnity  under Section 10.04(c) without regard to the existence of any participation.         Any agreement or instrument pursuant to which a Lender sells such a participation shall  provide that such Lender shall retain the sole right to enforce this Agreement and to approve any  amendment, modification  or  waiver  of  any provision  of  this  Agreement; provided that  such  agreement  or  instrument  may  provide  that  such  Lender  will  not,  without  the  consent  of  the  Participant, agree to any amendment, waiver or other modification described in the first proviso to  Section 10.01 that affects such Participant.  Subject to subsection (e) of this Section, the Borrower  agrees that each Participant shall be entitled to the benefits of Sections 3.01, 3.04 and 3.05 to the  same  extent  as  if  it  were  a  Lender  and  had  acquired  its  interest  by  assignment  pursuant  to  subsection (b) of  this  Section  (it  being  understood  that  the  documentation  required  under  Section 3.01(e) shall be delivered to the Lender who sells the participation) to the same extent as  if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this  Section; provided that such Participant (A) agrees to be subject to the provisions of Sections 3.06  and 10.13 as if it were an assignee under paragraph (b) of this Section and (B) shall not be entitled  to receive any greater payment under Sections 3.01 or 3.04, with respect to any participation, than  the Lender from whom it acquired the applicable participation would have been entitled to receive,  except to the extent such entitlement to receive a greater payment results from a Change in Law    

 

   that occurs after the Participant acquired the applicable participation.  Each Lender that sells a  participation agrees, at the Borrower’s request and expense, to use reasonable efforts to cooperate  with the Borrower to effectuate the provisions of Section 3.06 with respect to any Participant.  To  the extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.08  as though it were a Lender; provided that such Participant agrees to be subject to Section 2.13 as  though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose  as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and  address of each Participant and the principal amounts (and stated interest) of each Participant’s  interest in the Loans or other obligations under the Loan Documents (the “Participant Register”);  provided that no Lender shall have any obligation to disclose all or any portion of the Participant  Register (including the identity of any Participant or any information relating to a Participant’s  interest  in  any  commitments,  loans,  letters  of  credit  or  its  other  obligations  under  any  Loan  Document) to any Person except to the extent that such disclosure is necessary to establish that  such  commitment,  loan,  letter  of  credit  or  other  obligation  is  in  registered  form  under  Section 5f.103-1(c)  of  the  United  States  Treasury  Regulations.   The  entries  in  the  Participant  Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose  name is recorded in the Participant Register as the owner of such participation for all purposes of  this  Agreement  notwithstanding  any  notice  to  the  contrary.   For  the  avoidance  of  doubt,  the  Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for  maintaining a Participant Register.         (e)   Certain Pledges.  Any Lender may at any time pledge or assign a security interest  in all or any portion of its rights under this Agreement (including under its Note, if any) to secure  obligations of such Lender, including any pledge or assignment to secure obligations to a Federal  Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of  its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party  hereto.         (f)   Resignation  as  L/C  Issuer  or  Swing  Line  Lender  after  Assignment.   Notwithstanding anything to the contrary contained herein, if at any time Bank of America assigns  all of its Commitment and Loans pursuant to subsection (b) above, Bank of America may, (i) upon  30 days’ notice to the Borrower and the Lenders, resign as L/C Issuer and/or (ii) upon 30 days’  notice to the Borrower, resign as Swing Line Lender.  In the event of any such resignation as L/C  Issuer or Swing Line Lender, the Borrower shall be entitled to appoint from among the Lenders a  successor L/C Issuer or Swing Line Lender hereunder; provided, however, that no failure by the  Borrower to appoint any such successor shall affect the resignation of Bank of America as L/C  Issuer or Swing Line Lender, as the case may be.  If Bank of America resigns as L/C Issuer, it  shall retain all the rights, powers, privileges and duties of the L/C Issuer hereunder with respect to  all Letters of Credit outstanding as of the effective date of its resignation as L/C Issuer and all L/C  Obligations with respect thereto (including the right to require the Lenders to make Base Rate  Loans or fund risk participations in Unreimbursed Amounts pursuant to Section 2.03(c)).  If Bank  of America resigns as Swing Line Lender, it shall retain all the rights of the Swing Line Lender  provided for hereunder with respect to Swing Line Loans made by it and outstanding as of the  effective date of such resignation, including the right to require the Lenders to make Base Rate  Loans or fund risk participations in outstanding Swing Line Loans pursuant to Section 2.04(c).   Upon the appointment of a successor L/C Issuer and/or Swing Line Lender, (a) such successor  shall succeed to and become vested with all of the rights, powers, privileges and duties of the    

 

   retiring L/C Issuer or Swing Line Lender, as the case may be, and (b) the successor L/C Issuer  shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time  of such succession or make other arrangements  satisfactory to Bank of America to effectively  assume the obligations of Bank of America with respect to such Letters of Credit.         10.07 Treatment of Certain Information; Confidentiality.           (a)   Treatment of Certain Information.  Each of the Administrative Agent, the Lenders  and the L/C Issuer agrees to maintain the confidentiality of the Information (as defined below),  except that Information may be disclosed (i) to its Affiliates, auditors and its Related Parties (it  being  understood  that  the  Persons  to  whom  such  disclosure  is  made  will  be  informed  of  the  confidential  nature  of  such  Information  and  instructed  to  keep  such  Information  confidential),  (ii) to the extent required or requested by any regulatory authority purporting to have jurisdiction  over  such  Person  or  its  Related  Parties  (including  any  self-regulatory  authority,  such  as  the  National Association of Insurance Commissioners), (iii) to the extent required by applicable laws  or regulations or by any subpoena or similar legal process, (iv) to any other party hereto, (v) in  connection with the exercise of any remedies hereunder or under any other Loan Document or any  action or proceeding relating to this Agreement or any other Loan Document or the enforcement  of rights hereunder or thereunder, (vi) subject to an agreement containing provisions substantially  the same as  those of this  Section, to  (A) any  assignee of or Participant  in,  or any prospective  assignee of or Participant in, any of its rights or obligations under this Agreement or any Eligible  Assignee  invited  to  be  a  Lender  pursuant  to Section 2.14(c) or  (B) any  actual  or  prospective  counterparty (or its Related Parties) to any swap or derivative or other transaction under which  payments  are to  be made by reference to  the Borrower and its  obligations,  this  Agreement or  payments hereunder, (vi) on a confidential basis to (A) any rating agency in connection with rating  Limited  or  its  Subsidiaries  or  the  credit  facility  provided  hereunder,  (B)  the  provider  of  any  Platform or other electronic delivery service used by the Administrative Agent, the L/C Issuer or  the Swing Line Lender to deliver Borrower Materials or notices to the Lenders or (C) the CUSIP  Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP  numbers  or other market  identifiers with  respect  to  the credit facility hereunder, (vii) with the  consent of the Borrower, (viii) to the extent such Information (A) becomes publicly available other  than as a result of a breach of this Section, (B) becomes available to the Administrative Agent, any  Lender, the L/C Issuer or any of their respective Affiliates on a nonconfidential basis from a source  other than the Borrower or (C) is independently discovered or developed by a party hereto without  utilizing any Information received from the Borrower or violating the terms of this Section, or (ix)  to credit insurance providers.         For purposes of this Section, “Information” means all information received from Limited  or any Subsidiary relating to Limited or any Subsidiary or any of their respective businesses, other  than any such information that is available to the Administrative Agent, any Lender or the L/C  Issuer on a nonconfidential basis prior to disclosure by Limited or any Subsidiary.  Any Person  required  to  maintain  the  confidentiality  of  Information  as  provided  in  this  Section  shall  be  considered to have complied with its obligation to do so if such Person has exercised the same  degree of care to maintain the confidentiality of such Information as such Person would accord to  its  own confidential  information.  In addition,  the Administrative Agent  and the Lenders may  disclose the existence of this Agreement and information about this Agreement to market data  collectors,  similar  service  providers  to  the  lending  industry  and  service  providers  to  the    

 

   Administrative Agent and the Lenders in connection with the administration of this Agreement,  the other Loan Documents and the Commitments.         (b)   Non-Public Information.  Each of the Administrative Agent, the Lenders and the  L/C Issuer acknowledges that (i) the Information may include material non-public information  concerning a Loan Party or a Subsidiary, as the case may be, (ii) it has developed compliance  procedures  regarding  the  use  of  material  non-public  information  and  (iii)  it  will  handle  such  material  non-public  information  in  accordance  with  Applicable  Law,  including  United  States  federal and state securities Laws.         (c)   Press Releases.  The Loan Parties and their Affiliates agree that they will not in the  future issue any press releases or other public disclosure using the name of the Administrative  Agent or any Lender or their respective Affiliates or referring to this Agreement or any of the Loan  Documents without the prior written consent of the Administrative Agent, unless (and only to the  extent that) the Loan Parties or such Affiliate is required to do so under law and then, in any event  the Loan Parties or such Affiliate will consult with such Person before issuing such press release  or other public disclosure.         (d)   Customary Advertising Material.  The Loan Parties consent to the publication by  the  Administrative  Agent  or  any  Lender  of  customary  advertising  material  relating  to  the  transaction contemplated hereby using the name, product photographs, logo or trademark of the  Loan Parties.         10.08 Right of Setoff.  If an Event of Default shall have occurred and be continuing, each  Lender, the L/C Issuer and each of their respective Affiliates is hereby authorized at any time and  from time to time, to the fullest extent permitted by Applicable Law, to set off and apply any and  all deposits (general or special, time or demand, provisional or final, in whatever currency) at any  time held and other obligations (in whatever currency) at any time owing by such Lender, the L/C  Issuer or any such Affiliate to or for the credit or the account of any Loan Party against any and  all of the obligations of such Loan Party now or hereafter existing under this Agreement or any  other Loan Document to such Lender or the L/C Issuer or their respective Affiliates, irrespective  of whether or not such Lender, the L/C Issuer or Affiliate shall have made any demand under this  Agreement or any other Loan Document and although such obligations of such Loan Party are  owed to a branch, office or Affiliate of such Lender or the L/C Issuer different from the branch,  office or Affiliate holding such deposit or obligated on such indebtedness; provided, that in the  event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off  shall be paid over immediately to the Administrative Agent for further application in accordance  with  the  provisions  of Section 2.16 and,  pending  such  payment,  shall  be  segregated  by  such  Defaulting  Lender  from  its  other  funds  and  deemed  held  in  trust  for  the  benefit  of  the  Administrative Agent, the L/C Issuer and the Lenders, and (y) the Defaulting Lender shall provide  promptly to the Administrative Agent a statement describing in reasonable detail the Obligations  owing to such Defaulting Lender as to which it exercised such right of setoff.  The rights of each  Lender, the L/C Issuer and their respective Affiliates under this Section are in addition to other  rights and remedies (including other rights of setoff) that such Lender, the L/C Issuer or their  respective Affiliates may have.  Each Lender and the L/C Issuer agrees to notify the Borrower and  the Administrative Agent promptly after any such setoff and application, provided that the failure  to give such notice shall not affect the validity of such setoff and application.    

 

         10.09 Interest Rate Limitation.  Notwithstanding anything to the contrary contained in  any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not  exceed the Highest Lawful Rate.  If the Administrative Agent or any Lender shall receive interest  in an amount that exceeds the Highest Lawful Rate, the excess interest shall be applied to the  principal  of  the  Loans  or,  if  it  exceeds  such  unpaid  principal,  refunded  to  the  Borrower.   In  determining whether the interest contracted for, charged, or received by the Administrative Agent  or  a  Lender  exceeds  the  Highest  Lawful  Rate,  such  Person  may,  to  the  extent  permitted  by  Applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium  rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize,  prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the  contemplated term of the Obligations hereunder.         10.10 Counterparts; Integration; Effectiveness.  This Agreement may be executed in  counterparts  (and  by  different  parties  hereto  in  different  counterparts),  each  of  which  shall  constitute an original, but all of which when taken together shall constitute a single contract.  This  Agreement and the other Loan Documents constitute the entire contract among the parties relating  to the subject matter hereof and supersede any and all previous agreements and understandings,  oral  or written, relating  to  the subject  matter hereof.  Except  as  provided in Section 4.01, this  Agreement shall become effective when it shall have been executed by the Administrative Agent  and  when  the  Administrative  Agent  shall  have  received  counterparts  hereof  that,  when  taken  together,  bear  the  signatures  of  each  of  the  other  parties  hereto.   Delivery  of  an  executed  counterpart of a signature page of this Agreement by telecopy or other electronic imaging means  (e.g.  “pdf”  or  “tif”) shall  be  effective  as  delivery  of  a  manually  executed  counterpart  of  this  Agreement.         10.11 Survival of Representations and Warranties.  All representations and warranties  made hereunder and in any other Loan Document or other document delivered pursuant hereto or  thereto or in connection herewith or therewith shall survive the execution and delivery hereof and  thereof.   Such  representations  and  warranties  have  been  or  will  be  relied  upon  by  the  Administrative Agent and each Lender, regardless of any investigation made by the Administrative  Agent or any Lender or on their behalf and notwithstanding that the Administrative Agent or any  Lender may have had notice or knowledge of any Default at the time of any Credit Extension, and  shall continue in full force and effect as long as any Loan or any other Obligations hereunder shall  remain unpaid or unsatisfied or any Letter of Credit shall remain outstanding.         10.12 Severability.  If any provision of this Agreement or the other Loan Documents is  held  to  be  illegal,  invalid  or  unenforceable,  (a) the  legality,  validity  and  enforceability  of  the  remaining provisions of this Agreement and the other Loan Documents shall not be affected or  impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal,  invalid or unenforceable provisions with valid provisions the economic effect of which comes as  close as possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a  provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in  any other jurisdiction.  Without limiting the foregoing provisions of this Section 10.12, if and to  the  extent  that  the  enforceability  of  any  provisions  in  this  Agreement  relating  to  Defaulting  Lenders shall be limited by Debtor Relief Laws, as determined in good faith by the Administrative  Agent,  the  L/C  Issuer  or  the  Swing  Line  Lender,  as  applicable,  then  such  provisions  shall  be  deemed to be in effect only to the extent not so limited.    

 

         10.13 Replacement  of  Lenders.  If  the  Borrower  is  entitled  to  replace  any  Lender  pursuant  to  the provisions  of Section 3.06, or if any Lender is  a Defaulting  Lender or a Non- Consenting Lender, then the Borrower may, at its sole expense and effort, upon notice to such  Lender and the Administrative Agent, require such Lender to assign and delegate, and such Lender  agrees to assign and delegate, without recourse (in accordance with and subject to the restrictions  contained in, and consents required by, Section 10.06), all of its interests, rights (other than its  existing  rights  to  payments  pursuant  to Section 3.01 and 3.04)  and  obligations  under  this  Agreement  and  the  related  Loan  Documents  to  an  Eligible  Assignee  that  shall  assume  such  obligations  (which  assignee  may  be  another  Lender,  if  a  Lender  accepts  such  assignment),  provided that:         (a)   the Borrower shall have paid to the Administrative Agent the assignment fee (if  any) specified in Section 10.06(b);         (b)   such Lender shall have received payment of an amount equal to the outstanding  principal  of  its  Loans  and  L/C  Advances,  accrued interest  thereon,  accrued  fees  and  all  other  amounts payable to it hereunder and under the other Loan Documents (including any amounts  under Section 3.05) from the assignee (to the extent of such outstanding principal and accrued  interest and fees) or the Borrower (in the case of all other amounts);         (c)   in the case of any such assignment resulting from a claim for compensation under  Section 3.04 or payments required to be made pursuant to Section 3.01, such assignment will result  in a reduction in such compensation or payments thereafter;         (d)   such assignment does not conflict with Applicable Laws; and         (e)   in the case of an assignment resulting from a Lender becoming a Non-Consenting  Lender,  the  applicable  assignee  shall  have  consented  to  the  applicable  amendment,  waiver  or  consent.         A Lender shall not be required to make any such assignment or delegation if, prior thereto,  as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to  require such assignment and delegation cease to apply.         10.14 Governing Law; Jurisdiction; Etc.         (a)   GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND  CONSTRUED  IN  ACCORDANCE  WITH,  THE  LAW  OF  THE  STATE  OF  TEXAS  APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN  SUCH STATE; PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH LENDER  SHALL RETAIN ALL RIGHTS UNDER FEDERAL LAW.         (b)   The parties hereto agree that Chapter 345 (other than Section 346.004) of the Texas  Finance Code (which regulates certain revolving credit accounts and revolving tri-party accounts)  shall not apply to the Loans, L/C Borrowings or the Obligations.         (c)   SUBMISSION  TO  JURISDICTION.   EACH  OF  THE  BORROWER  AND  LIMITED IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS    

 

   PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE  OF TEXAS  SITTING  IN DALLAS COUNTY  AND OF THE UNITED STATES  DISTRICT  COURT  OF  THE  NORTHERN  DISTRICT  OF  TEXAS  (DALLAS  DIVISION),  AND  ANY  APPELLATE  COURT  FROM  ANY  THEREOF,  IN  ANY  ACTION  OR  PROCEEDING  ARISING  OUT  OF  OR  RELATING  TO  THIS  AGREEMENT  OR  ANY  OTHER  LOAN  DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND  EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES  THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE  HEARD  AND  DETERMINED  IN  SUCH  TEXAS  STATE  COURT  OR,  TO  THE  FULLEST  EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.  EACH OF  THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION  OR  PROCEEDING  SHALL  BE  CONCLUSIVE  AND  MAY  BE  ENFORCED  IN  OTHER  JURISDICTIONS  BY  SUIT  ON  THE  JUDGMENT  OR  IN  ANY  OTHER  MANNER  PROVIDED  BY  LAW.   NOTHING  IN  THIS AGREEMENT  OR  IN  ANY  OTHER  LOAN  DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY  LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR  PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT  AGAINST THE BORROWER OR LIMITED OR ANY OF THEIR RESPECTIVE PROPERTIES  IN THE COURTS OF ANY JURISDICTION.         (d)   WAIVER  OF  VENUE.   EACH  OF  THE  BORROWER  AND  LIMITED  IRREVOCABLY  AND  UNCONDITIONALLY  WAIVES,  TO  THE  FULLEST  EXTENT  PERMITTED  BY  APPLICABLE  LAW,  ANY  OBJECTION  THAT  IT  MAY  NOW  OR  HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING  ARISING  OUT  OF  OR  RELATING  TO  THIS  AGREEMENT  OR  ANY  OTHER  LOAN  DOCUMENT  IN ANY  COURT REFERRED TO IN PARAGRAPH (b) OF THIS SECTION.   EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST  EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT  FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH  COURT.         (e)   SERVICE  OF  PROCESS.   EACH  PARTY  HERETO  IRREVOCABLY  CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN  SECTION 10.02.  NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY  PARTY  HERETO  TO  SERVE  PROCESS  IN  ANY  OTHER  MANNER  PERMITTED  BY  APPLICABLE LAW.         10.15 Waiver  of  Jury  Trial.  EACH  PARTY  HERETO  HEREBY  IRREVOCABLY  WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT  IT MAY HAVE TO A TRIAL BY JURY  IN ANY LEGAL PROCEEDING DIRECTLY OR  INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER  LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY  (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY  HERETO (a) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY  OTHER  PERSON  HAS  REPRESENTED,  EXPRESSLY  OR  OTHERWISE,  THAT  SUCH  OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE  THE  FOREGOING  WAIVER  AND  (b) ACKNOWLEDGES  THAT  IT  AND  THE  OTHER    

 

   PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND  THE  OTHER  LOAN  DOCUMENTS  BY,  AMONG  OTHER  THINGS,  THE  MUTUAL  WAIVERS AND CERTIFICATIONS IN THIS SECTION.         10.16 USA PATRIOT Act.  Each Lender that is subject to the Act hereby notifies the  Borrower that pursuant to the requirements of the Act, it is required to obtain, verify and record  information that identifies the Borrower, which information includes the name and address of the  Borrower  and  other  information  that  will  allow  such  Lender  or  the  Administrative  Agent,  as  applicable, to identify the Borrower in accordance with the Act.  The Borrower shall, promptly  following a request by the Administrative Agent or any Lender, provide all documentation and  other information that the Administrative Agent or such Lender requests in order to comply with  its ongoing obligations under applicable “know your customer” and anti-money laundering rules  and regulations, including the Act.         10.17 No Advisory or Fiduciary Responsibility.  In connection with all aspects of each  transaction contemplated hereby (including in connection with any amendment, waiver or other  modification hereof or of any other Loan Document), the Borrower and each other Loan Party  acknowledges  and  agrees,  and  acknowledges  its  Affiliates’  understanding,  that:  (i) (A) the  arranging and other services regarding this Agreement provided by the Administrative Agent, each  Arranger, and the Lenders are arm’s-length commercial transactions between the Borrower, each  other Loan Party and their respective Affiliates, on the one hand, and the Administrative Agent,  each Arranger, and the Lenders, on the other hand, (B) each of the Borrower and the other Loan  Parties has consulted its own legal, accounting, regulatory and tax advisors to the extent it has  deemed appropriate, and (C) the Borrower and each other Loan Party is capable of evaluating, and  understands and accepts, the terms, risks and conditions of the transactions contemplated hereby  and by the other Loan Documents; (ii) (A) the Administrative Agent, each Arranger, and each  Lender is and has been acting solely as a principal and, except as expressly agreed in writing by  the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for  the Borrower, any other Loan Party or any of their respective Affiliates, or any other Person and  (B) neither the Administrative Agent, each Arranger, nor any Lender has any obligation to the  Borrower, any other Loan Party or any of their respective Affiliates with respect to the transactions  contemplated hereby except those obligations expressly set forth herein and in the other Loan  Documents;  and  (iii) the Administrative  Agent,  each  Arranger, and  the  Lenders  and  their  respective Affiliates may be engaged in a broad range of transactions that involve interests that  differ from those of the Borrower, the other Loan Parties and their respective Affiliates, and neither  the Administrative Agent, each Arranger, nor any Lender has any obligation to disclose any of  such interests to the Borrower, any other Loan Party or any of their respective Affiliates.  To the  fullest extent permitted by law, each of the Borrower and each other Loan Party hereby waives  and releases any claims that it may have against the Administrative Agent, each Arranger, or any  Lender with respect to any breach or alleged breach of agency or fiduciary duty in connection with  any aspect of any transaction contemplated hereby.         10.18 Electronic  Execution  of  Assignments  and  Certain  Other  Documents.   The  words “execute,” “execution,” “signed,” “signature,” and words of like import in or related to any  document  to  be  signed  in  connection  with  this  Agreement  and  the  transactions  contemplated  hereby  (including  without  limitation  Assignment  and  Assumptions,  amendments  or  other  modifications, Revolving Loan Notices, Swing Line Loan Notices, waivers and consents) shall be    

 

   deemed to include electronic signatures, the electronic matching of assignment terms and contract  formations  on  electronic  platforms  approved  by  the  Administrative  Agent,  or  the  keeping  of  records in electronic form, each of which shall be of the same legal effect, validity or enforceability  as a manually executed signature or the use of a paper-based recordkeeping system, as the case  may be, to the extent and as provided for in any applicable law, including the Federal Electronic  Signatures in Global and National Commerce Act, the New York State Electronic Signatures and  Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act;  provided that notwithstanding anything contained herein to the contrary the Administrative Agent  is under no obligation to agree to accept electronic signatures in any form or in any format unless  expressly agreed to by the Administrative Agent pursuant to procedures approved by it.         10.19 Judgment Currency.  If, for the purposes of obtaining judgment in any court, it is  necessary  to  convert  a  sum  due  hereunder  or  any  other  Loan  Document  in  one  currency  into  another currency, the rate of exchange used shall  be that at  which in  accordance with  normal  banking procedures the Administrative Agent could purchase the first currency with such other  currency on the Business Day preceding that on which final judgment is given.  The obligation of  the Borrower in respect of any such sum due from it to the Administrative Agent, any Lender or  the L/C Issuer hereunder or under the other Loan Documents shall, notwithstanding any judgment  in a currency (the “Judgment Currency”) other than that in which such sum is denominated in  accordance  with  the  applicable  provisions  of  this  Agreement  (the  “Agreement  Currency”),  be  discharged only to the extent that on the Business Day following receipt by the Administrative  Agent, such Lender or the L/C Issuer, as the case may be, of any sum adjudged to be so due in the  Judgment Currency, the Administrative Agent, such Lender or the L/C Issuer, as the case may be,  may in accordance with normal banking procedures purchase the Agreement Currency with the  Judgment Currency.  To the extent permitted by Applicable Law, if the amount of the Agreement  Currency so purchased is less than the sum originally due to the Administrative Agent from the  Borrower in the Agreement Currency after taking into account any set-offs or counterclaims of  any Loan Party against the Person to whom such obligation was owing on which a final judgment  has been rendered, the Borrower agrees, as a separate obligation and notwithstanding any such  judgment, to indemnify the Administrative Agent, such Lender or the L/C Issuer, as the case may  be,  to  whom  such  obligation  was  owing  against  such  loss.   If  the amount  of  the  Agreement  Currency so purchased is greater than the sum originally due to the Administrative Agent, such  Lender or the L/C Issuer, as the case may be, in such currency, the Administrative Agent agrees  to return the amount of any excess to the Borrower (or to any other Person who may be entitled  thereto under Applicable Law).         10.20 ENTIRE  AGREEMENT.  THIS  AGREEMENT  AND  THE  OTHER  LOAN  DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY  NOT  BE  CONTRADICTED  BY  EVIDENCE  OF  PRIOR,  CONTEMPORANEOUS,  OR  SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN  ORAL AGREEMENTS AMONG THE PARTIES.         10.21 Keepwell.  Each  Loan  Party  that  is  a  Qualified  ECP  Guarantor  at  the  time  the  Guaranty by any Specified Loan Party, becomes effective with respect to any Swap Obligation,  hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide  such funds or other support to each Specified Loan Party with respect to such Swap Obligation as  may be needed by such Specified Loan Party from time to time to honor all of its obligations under    

 

   its Guaranty and the other Loan Documents in respect of such Swap Obligation (but, in each case,  only up to the maximum amount of such liability that can be hereby incurred without rendering  such Qualified ECP Guarantor’s obligations and undertakings under this Section 10.21 voidable  under Applicable Law relating to fraudulent conveyance or fraudulent transfer, and not for any  greater amount).  The obligations and undertakings of each Qualified ECP Guarantor under this  Section 10.21 shall  remain  in  full  force  and  effect  until  the  Obligations  and  the  Guarantied  Obligations  have  been  indefeasibly  paid  and  performed  in  full.   Solely  for  purposes  of  the  Commodity Exchange Act, each Qualified ECP Guarantor intends this Section 10.21 to constitute,  and  for  such  purposes  this Section 10.21 shall  be  deemed  to  constitute,  a guarantee  of  the  obligations of, and a “keepwell, support, or other agreement” for the benefit of, each Specified  Loan Party.         10.22 Acknowledgment and Consent to Bail-In of Affected Financial Institutions.   Notwithstanding  anything  to  the  contrary  in  any  Loan  Document  or  in  any  other  agreement,  arrangement or understanding among any such parties, each party hereto acknowledges that any  liability of any Lender that is an Affected Financial Institution arising under any Loan Document,  to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers  of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees  to be bound by:         (a)   the  application  of  any  Write-Down  and  Conversion  Powers  by the  applicable  Resolution Authority to any such liabilities arising hereunder which may be payable to it by any  Lender that is an Affected Financial Institution; and         (b)   the effects of any Bail-in Action on any such liability, including, if applicable:               (i)   a reduction in full or in part or cancellation of any such liability;               (ii)  a  conversion  of  all,  or  a  portion  of,  such  liability  into  shares  or  other        instruments of ownership in such Affected Financial Institution, its parent undertaking, or        a bridge institution that may be issued to it or otherwise conferred on it, and that such shares        or other instruments of ownership will be accepted by it in lieu of any rights with respect        to any such liability under this Agreement or any other Loan Document; or               (iii) the variation of the terms of such liability in connection with the exercise of        the Write-Down and Conversion Powers of the applicable Resolution Authority.         10.23 Acknowledgement  Regarding  Any  Supported  QFCs.  To  the  extent  that  the  Loan Documents provide support, through a guarantee or otherwise, for any Swap Contract or any  other agreement or instrument that is a QFC (such support, “QFC Credit Support”, and each such  QFC,  a  “Supported  QFC”),  the  parties  acknowledge  and  agree  as  follows  with  respect  to  the  resolution  power  of  the  Federal  Deposit  Insurance  Corporation  under  the  Federal  Deposit  Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act  (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in  respect of such Supported QFC and QFC Credit Support (with the provisions below applicable  notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be     

 

   governed by the laws of the State of New York and/or of the United States or any other state of  the United States):          (a)   In the event a Covered Entity that is party to a Supported QFC (each, a “Covered  Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of  such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation  in or under such Supported QFC and such QFC Credit Support, and any rights in property securing  such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to  the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the  Supported QFC and such QFC Credit Support (and any such interest,  obligation and rights in  property) were governed by the laws of the United States or a state of the United States.  In the  event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding  under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might  otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against  such Covered Party are permitted to be exercised to no greater extent than such Default Rights  could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan  Documents were governed by the laws of the United States or a state of the United States.  Without  limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with  respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect  to a Supported QFC or any QFC Credit Support.            (b)   As used in this Section 10.23, the following terms have the following meanings:                “BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under,  and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.                “Covered Entity” means any of the following:  (i) a “covered entity” as that term is  defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a “covered bank” as that  term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a “covered FSI”  as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).                “Default Right” has the meaning assigned to that term in, and shall be interpreted  in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.                “QFC” has the meaning assigned to the term “qualified financial contract” in, and  shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).          10.24 Addition of Guarantors.           From time to time and notwithstanding the provisions of Section 10.01, the Borrower may  cause  one  or  more additional  Subsidiaries  of  Limited  to  become  Guarantors  hereunder  by  delivering, or causing to be delivered, to the Administrative Agent in respect of each applicable  Subsidiary (a) a Guaranty (the date of each such Guaranty being referred to herein as a “Joinder  Date”, which date shall be at least ten days after the Borrower provides notice to the Administrative  Agent  of  its  intention  to  cause  such  Subsidiary  to  become  a  Guarantor  hereunder),  (b)  such  documents of the types referred to in clauses (iv) and (v) of Section 4.01(a) and (c) a favorable  opinion of counsel to such Subsidiary located in the jurisdiction of organization of such Subsidiary,    

 

   in form, content and scope reasonably satisfactory to the Administrative Agent; provided that no  Subsidiary may become a Guarantor hereunder pursuant to this Section 10.24 if a Default or Event  of Default shall have occurred and be continuing on the applicable Joinder Date, or shall result  from the joinder of such Subsidiary as a Guarantor on such Joinder Date. Without limiting the  foregoing, if the designation of any additional direct or indirect, wholly-owned Subsidiary as a  Guarantor hereunder obligates the Administrative Agent or any Lender to comply with “know  your  customer”  or  similar  regulatory  requirements  and  the  information  necessary  for  such  compliance is not already available to the Administrative Agent or such Lender, as applicable, the  Borrower  shall,  promptly  upon  the  request  of  the  Administrative  Agent  or  such  Lender,  as  applicable,  supply  such  documentation  and  other  evidence  as  is  reasonably  requested  by  the  Administrative Agent or such Lender, as applicable, in order for it to comply with all “know your  customer” and/or similar identification procedures required under all applicable Laws.                        REMAINDER OF PAGE LEFT INTENTIONALLY BLANK

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