Document:

exhibit102lovesacwfamend

Exhibit 10.2    AMENDMENT NO. 6 TO CREDIT AGREEMENT  AMENDMENT NO. 6 TO CREDIT AGREEMENT, dated as of March 25, 2022 (this  “Amendment No. 6”), is by and among Wells Fargo Bank, National Association, a national banking  association, in its capacity as administrative agent and collateral agent (in such capacity, together with its  successors and assigns, “Agent”) pursuant to the Credit Agreement (as defined below), the parties to the  Credit Agreement from time to time as lenders (individually, each a “Lender” and collectively, “Lenders”),  and The Lovesac Company, a Delaware corporation (the “Lead Borrower,” and together with any other  Person that becomes party hereto as a borrower, individually a “Borrower” and collectively, the  “Borrowers”).  W I T N E S S E T H :  WHEREAS, Agent, Lenders and certain other parties have entered into a senior secured revolving  credit facility pursuant to which Agent and Lenders have made, and may make, loans and advances and  provide other financial accommodations to Borrowers as set forth in the Credit Agreement, dated as of  February 2, 2018, by and among Agent, Lenders, Borrowers and Guarantors, as amended by Amendment  No. 1 to Credit Agreement, dated as of June 28, 2018, Amendment No. 2 to Credit Agreement, dated as of  October 25, 2018, Amendment No. 3 to Credit Agreement dated as of March 26, 2019, Amendment No. 4  to Credit Agreement dated as of April 8, 2020, and Amendment No. 5 to Credit Agreement dated as of May  13, 2021 (the “Credit Agreement”), and the other Loan Documents (as defined therein);   WHEREAS, Lead Borrower has requested that Agent and Lenders agree to certain amendments to  the Credit Agreement including the extension of the Maturity Date, and Agent and Lenders are willing to  agree to such amendments, subject to the terms and conditions contained herein; and  WHEREAS, by the execution and delivery of this Amendment No. 6, Agent, Lenders and Lead  Borrower intend to evidence such amendments;  NOW, THEREFORE, in consideration of the foregoing and the mutual agreements and covenants  contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby  acknowledged, the parties hereto agree as follows:  1. Definitions.  For purposes of this Amendment No. 6, all terms used herein which are not  otherwise defined herein, including but not limited to, those terms used in the recitals hereto, shall have the  respective meanings assigned thereto in the Credit Agreement as amended by this Amendment No. 6.  2. Amendments to Credit Agreement.    2.1 Subject to the satisfaction (or waiver in accordance with Section 10.1 of the Credit  Agreement) of the conditions precedent set forth in Section 3 of this Amendment No. 6, the Credit  Agreement is hereby amended to delete the stricken text (indicated textually in the same manner as the  following example:  stricken text) and to add the double-underlined text (indicated textually in the same  manner as the following example:  double-underlined text) as set forth in Exhibit A hereto, and Schedules  2.01, 5.06, 5.09, 5.10, 5.13, 5.17, 5.18, 5.21(a), 5.21(b), 7.01, 7.02, 7.03, 7.09 and 10.2, Exhibit A and  Exhibit A-1 are replaced with the applicable Schedules and Exhibits as set forth in Exhibit B hereto.  2.2 Subject to the satisfaction (or waiver in accordance with Section 10.1 of the Credit  Agreement) of the conditions precedent set forth in Section 3 of this Amendment No. 6, each of the Lenders  party hereto hereby waives any Default or Event of Default that may have occurred on or prior to the date  of Amendment No.6, directly relating to the filing of the UCC-1 financing statement with the Secretary of  

 

Exhibit 10.2  2  State of the State of Delaware on February 19, 2020, naming the Lead Borrower as the debtor and  Crossgates Mall General Company Newco, LLC as secured party (the “CrossGates Landlord Lien”),  including, without limitation, any Default or Event of Default that arose under Section 8.01(b) of the Credit  Agreement as a result of such Cross Gates Landlord Lien violating Section 7.01 of the Credit Agreement,  (ii) the failure to deliver a notice of Default or Event of Default pursuant to Section 6.03(a) of the Credit  Agreement with respect to filing of the Crossgates Landlord Lien, and (iii) any and all misrepresentations  made by Lead Borrower prior to the Amendment No. 6 Effective Date that may have resulted due to the  existence of such Crossgates Landlord Lien.  For the avoidance of doubt, Agent and Lenders are not waiving  any Default or Event of Default, arising directly or indirectly, as a result of the existence of the Crossgates  Landlord Lien that may arise after the Amendment No. 6 Effective Date.   3.  Amendment No. 6 Effective Date; Conditions Precedent to Amendments. The amendments  and waiver set forth in Section 1 shall become effective on and as of the date (the “Amendment No.  6  Effective Date”) on which all of the conditions precedent set forth on Schedule 1 hereto have been satisfied  (or waived in accordance with Section 10.01 of the Credit Agreement).  4. Representations and Warranties.  Lead Borrower represents and warrants to Agent and  Lenders as follows, which representations and warranties shall survive the execution and delivery hereof:  4.1 On the date of this Amendment No. 6, immediately after giving effect to this  Amendment No. 6, no Default or Event of Default has occurred and is continuing.  4.2 This Amendment No. 6 has been duly authorized, executed and delivered by all  necessary corporate action on the part of Lead Borrower and, if necessary, its equity holders and is in full  force and effect on the date hereof, as the case may be, and the agreements and obligations of Lead Borrower  contained herein constitute legal, valid and binding obligations of Lead Borrower, enforceable against it in  accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or  other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of  whether considered in a proceeding in equity or at law.   4.3 All of the representations and warranties of Lead Borrower set forth herein and in  each of the other Loan Documents shall be true and correct in all material respects (or, in the case of any  representations and warranties qualified by materiality or Material Adverse Effect, in all respects) on and  as of the date hereof on and immediately after the effectiveness of this Amendment No. 6 and the  transactions contemplated hereby with the same effect as though made on and as of such date, except to the  extent such representations and warranties expressly relate to an earlier date (in which case such  representations and warranties shall be true and correct in all material respects (or, in the case of any  representations and warranties qualified by materiality or Material Adverse Effect, in all respects) as of  such earlier date).  5. Effect of Amendment No. 6.  Except as expressly set forth herein, no other amendments,  changes or modifications to the Loan Documents are intended or implied, and in all other respects the Loan  Documents are hereby specifically ratified and confirmed by all parties hereto as of the effective date hereof  and the Loan Parties shall not be entitled to any other or further amendment by virtue of the provisions of  this Amendment No. 6 or with respect to the subject matter of this Amendment No. 6.  To the extent of  conflict between the terms of this Amendment No. 6 and the other Loan Documents, the terms of this  Amendment No. 6 shall control.  The Credit Agreement and this Amendment No. 6 shall be read and  construed as one agreement.  This Amendment No. 6 is a Loan Document.  6. Ratification.  Lead Borrower hereby (i) ratifies and reaffirms all of its payment and  performance obligations, contingent or otherwise, under the Credit Agreement and each other Loan  

 

Exhibit 10.2  3  Document to which it is a party, (ii) ratifies and reaffirms the grant of liens or security interests over its  property pursuant to the Loan Documents and confirms that such liens and security interests continue to  secure the Obligations, (iii) agrees that such ratification and reaffirmation is not a condition to the continued  effectiveness of the Loan Documents and (iv) agrees that neither such ratification and reaffirmation, nor  the Agent’s nor any Lender’s solicitation of such ratification and reaffirmation, constitutes a course of  dealing giving rise to any obligation or condition requiring a similar or any other ratification or reaffirmation  from any party to the Credit Agreement with respect to any amendment, consent or waiver with respect to  the Credit Agreement or any of the other Loan Documents.  7. Governing Law.  THIS AMENDMENT NO. 6 SHALL BE GOVERNED BY, AND  CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT  GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF, BUT INCLUDING  SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.  8. Jury Trial Waiver.  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 AMENDMENT NO. 6 OR THE TRANSACTIONS CONTEMPLATED  HEREBY (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 AMENDMENT NO. 6 BY, AMONG OTHER THINGS, THE  MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.  9. Binding Effect.  This Amendment No. 6 shall be binding upon and inure to the benefit of  each of the parties hereto and their respective successors and assigns.  10. Waiver, Modification, Etc.  No provision or term of this Amendment No. 6 may be  modified, altered, waived, discharged or terminated orally or by course of conduct, except in accordance  with the terms of the Credit Agreement.  11. Entire Agreement.  This Amendment No. 6 represents the entire agreement and  understanding concerning the subject matter hereof among the parties hereto, and supersedes all other prior  agreements, understandings, negotiations and discussions, representations, warranties, commitments,  proposals, offers and contracts concerning the subject matter hereof, whether oral or written.  12. Headings.  The headings listed herein are for convenience only and do not constitute  matters to be construed in interpreting this Amendment No. 6.  13. Counterparts.  This Amendment No. 6 may be executed in any number of counterparts,  each of which shall be an original, but all of which taken together shall constitute one and the same  agreement.  This Amendment No. 6 may be executed in any number of counterparts, and by different parties  on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original,  and all of which, when taken together, shall constitute but one and the same Agreement.  Execution of any  such counterpart may be by means of (a) an electronic signature that complies with the federal Electronic  Signatures in Global and National Commerce Act, state enactments of the Uniform Electronic Transactions  Act, or any other relevant and applicable electronic signatures law; (b) an original manual signature; or (c)  a faxed, scanned, or photocopied manual signature.  Each electronic signature or faxed, scanned, or  photocopied manual signature shall for all purposes have the same validity, legal effect, and admissibility  

 

Exhibit 10.2  4  in evidence as an original manual signature.   [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]                                                  

 

Exhibit 10.2          IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 6 to be duly executed  and delivered by their authorized officers as of the day and year first above written.   LEAD BORROWER:    THE LOVESAC COMPANY    By: __/s/ Donna Dellomo_______  Name: ___Donna Dellomo_________  Title: ___EVP+CFO_____________         AGENT AND LENDERS:  WELLS FARGO BANK, NATIONAL ASSOCIATION, as  Agent, L/C Issuer and a Lender    By: __/s/ Emily Abrahamson_____  Name: ___Emily Abrahamson______  Title: ___Director_______________      

 

Exhibit 10.2          SCHEDULE 1  Conditions Precedent  (a) Agent shall have received each of the following documents, in form and substance  reasonably satisfactory to Agent, duly executed and delivered, and each such document shall be in full force  and effect:  (i) this Amendment No. 6 executed and delivered by duly authorized officers of  the Lead Borrower, the Lenders and the Agent;   (ii) the Amendment No. 6 Fee Letter executed and delivered by the Lead Borrower;  (iii) an updated Perfection Certificate executed and delivered by the Lead  Borrower;  (b) a certificate from a secretary or assistant secretary of the Lead Borrower, certifying as  to and attaching (a) its certificate or articles of incorporation, and all amendments thereto, certified as of a recent  date by the Secretary of State (or other similar official) of the jurisdiction of its organization, (b) the Lead  Borrower’s bylaws and all amendments thereto, (c) resolutions duly adopted by the Board of Directors or  equivalent governing body of the Lead Borrower, (d) the incumbency and signatures of the officers or  representatives executing this Amendment No.  6 and the other Loan Documents and (e) the absence of any  pending proceeding for the dissolution or liquidation of such entity or, to the knowledge of such person,  threatening the existence of such entity;  (c) a certificate of good standing of the Lead Borrower from the Secretary of State of the  State of Delaware, dated as of a recent date not more than thirty (30) days prior to the Amendment No. 6  Effective Date;  (d) a certificate of a Responsible Officer of the Lead Borrower, certifying that, as of the  Amendment No. 6 Effective Date, the representations and warranties set forth in Section 4 of this Amendment  No. 6 are true and correct in all material respects (without duplication of any materiality qualifier contained  therein), except to the extent that such representation or warranty expressly relates to an earlier date (in which  event such representation or warranty is true and correct in all material respects (without duplication of any  materiality qualifier contained therein) as of such earlier date);  (e) a favorable written opinion of Shearman & Sterling LLP, as counsel for the Lead  Borrower, addressed to the Agent, the Lenders and the L/C Issuer, which shall be in form and substance  reasonably satisfactory to the Agent and covering such customary matters as the Agent shall reasonably request;   (f) the results of a search of the UCC filings (or equivalent filings) made with respect to  the Lead Borrower, in the state of Delaware, together with copies of the financing statements (or similar  documents) disclosed by such search;  (g) Agent shall have received at least three (3) Business Days prior to the Amendment No.  6 Effective Date all documentation and information as is reasonably requested by Agent, that is required by  regulatory authorities under applicable “know your customer” and anti-money-laundering rules and regulations,  including, without limitation, the PATRIOT Act (including legal organization chart signed by the Lead  Borrower, formation documents and W-9s in each case to the extent not previously received and in any event  as otherwise required), and for the Lead Borrower (only if it qualifies as “legal entity customer” under the  Beneficial Ownership Regulation), a Beneficial Ownership Certificate in relation to the Lead Borrower, in each  case to the extent requested in writing at least ten (10) Business Days prior to the Amendment No. 6 Effective  

 

Exhibit 10.2          Date; provided, that, in any event, each Lender shall have received required internal FDPA compliance approval;  (h) No material adverse change in the business, property, operations or condition of the  Lead Borrower and its Subsidiaries, taken as a whole, or the validity or enforceability of any of the material  Loan Documents or the rights and remedies of the Agent and Lenders thereunder shall have occurred since  January 31, 2021;   (i) No Default or Event of Default shall exist or have occurred on the Amendment No. 6  Effective Date; and  (j) Lead Borrower shall have paid, or shall concurrently pay, costs, fees (including all of  the fees referred to in the Amendment No. 6 Fee Letter which are due and payable on the Amendment No. 6  Effective Date).  

 

Exhibit 10.2          Exhibit A  Conformed Credit Agreement  [See attached]  

 

Exhibit 10.2              CREDIT AGREEMENT    Dated as of February 2, 2018  among  THE LOVESAC COMPANY  as the Lead Borrower    SAC ACQUISITION LLC  as Guarantor    WELLS FARGO BANK, NATIONAL ASSOCIATION  as Agent, L/C Issuer and Swing Line Lender,  and  The Other Lenders Party Hereto    WELLS FARGO BANK, NATIONAL ASSOCIATION,  as  Sole Lead Arranger and Sole Bookrunner    as amended by    Amendment No. 1 to Credit Agreement, dated as of June 28, 2018  Amendment No. 2 to Credit Agreement, dated as of October 25, 2018  Amendment No. 3 to Credit Agreement, dated as of March 26, 2019  Amendment No. 4 to Credit Agreement, dated as of April 8, 2020  Amendment No. 5 to Credit Agreement, dated as of May 13, 2021  Amendment No. 6 to Credit Agreement, dated as of March 25, 2022                                    

 

      Exhibit 10.2      TABLE OF CONTENTS  Page    ARTICLE I DEFINITIONS AND ACCOUNTING TERMS 1    1.01 Defined Terms 1  1.02 Other Interpretive Provisions 4348  1.03 Accounting Terms 4449  1.04 Rounding 4550  1.05 Times of Day 4550  1.06 Letter of Credit Amounts 4550  1.07 Divisions 50  1.08 Rates 50  ARTICLE II THE COMMITMENTS AND CREDIT EXTENSIONS 4551    2.01 Committed Loans; Reserves 4551  2.02 Borrowings, Conversions and Continuations of Committed Loans 4652  2.03 Letters of Credit 4853  2.04 Swing Line Loans 5560  2.05 Prepayments 5763  2.06 Termination or Reduction of Commitments 58. 64  2.07 Repayment of Loans 5964  2.08 Interest 5965  2.09 Fees 5965  2.10 Computation of Interest and Fees 60; Term SOFR Conforming Changes 65  2.11 Evidence of Debt 6066  2.12 Payments Generally; Agent’s Clawback 6066  2.13 Sharing of Payments by Lenders 6268  2.14 Settlement Amongst Lenders 6268  2.15 Increase in Commitments63    ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY; APPOINTMENT OF  LEAD BORROWER 6469    3.01 Taxes 6469  3.02 Illegality 6571  3.03 Inability to Determine Rates 6671  3.04 Increased Costs; Reserves on LIBO Rate Loans 66 73  3.05 Compensation for Losses 6774  3.06 Mitigation Obligations; Replacement of Lenders 6875  3.07 Survival 6875  3.08 Designation of Lead Borrower as Borrowers’ Agent 6876    ARTICLE IV CONDITIONS PRECEDENT TO CREDIT EXTENSIONS 6976    4.01 Conditions of Initial Credit Extension 6976  4.02 Conditions to all Credit Extensions 7179        (i)  

 

      Exhibit 10.2      ARTICLE V REPRESENTATIONS AND WARRANTIES 7280  5.01 Existence, Qualification and Power 7280  5.02 Authorization; No Contravention 7380  5.03 Governmental Authorization; Other Consents 7380  5.04 Binding Effect 7380  5.05 Financial Statements; No Material Adverse Effect 7381  5.06 Litigation 7481  5.07 No Default 7481  5.08 Ownership of Property; Liens 7481  5.09 Environmental Compliance 7582  5.10 Insurance 7583  5.11 Taxes 7683  5.12 ERISA Compliance 7683  5.13 Subsidiaries; Equity Interests 7684  5.14 Margin Regulations; Investment Company Act; 7784  5.15 Disclosure 7784  5.16 Compliance with Laws 7785  5.17 Intellectual Property; Licenses, Etc 7785  5.18 Labor Matters 7885  5.19 Security Documents 7885  5.20 Solvency 7986  5.21 Deposit Accounts; Credit Card Arrangements 7986  5.22 Brokers 7987  5.23 Customer and Trade Relations 7987  5.24 Material Contracts 8087  5.25 Casualty 8087  5.26 OFAC/Sanctions 8087    ARTICLE VI AFFIRMATIVE COVENANTS 8087    6.01 Financial Statements 8088  6.02 Certificates; Other Information 8189  6.03 Notices 8390  6.04 Payment of Obligations 8491  6.05 Preservation of Existence, Etc 8492  6.06 Maintenance of Properties 8492  6.07 Maintenance of Insurance 8492  6.08 Compliance with Laws 8693  6.09 Books and Records; Accountants. 8693  6.10 Inspection Rights. 8693  6.11 Use of Proceeds 8794  6.12 Additional Loan Parties 8795  6.13 Cash Management 8795  6.14 Information Regarding the Collateral 8997  6.15 Physical Inventories 9097  6.16 Environmental Laws 9098  6.17 Further Assurances 9098  6.18 Compliance with Terms of Leaseholds 9199  6.19 Material Contracts 9199    (ii)  

 

      Exhibit 10.2      ARTICLE VII NEGATIVE COVENANTS 9299  7.01 Liens 9299  7.02 Investments 9299  7.03 Indebtedness; Disqualified Stock 9299  7.04 Fundamental Changes 92100  7.05 Dispositions 92100  7.06 Restricted Payments 92100  7.07 Prepayments of Indebtedness 93100  7.08 Change in Nature of Business 93101  7.09 Transactions with Affiliates 94101  7.10 Burdensome Agreements 94101  7.11 Use of Proceeds 94101  7.12 Amendment of Material Documents 94101  7.13 Fiscal Year 94102  7.14 Deposit Accounts; Credit Card Processors 95102  7.15 Excess Availability Covenant 95102    ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES 95102    8.01 Events of Default 95102  8.02 Remedies Upon Event of Default 97105  8.03 Application of Funds 98105    ARTICLE IX THE AGENT 99107    9.01 Appointment and Authority 99107  9.02 Rights as a Lender 100107  9.03 Exculpatory Provisions 100107  9.04 Reliance by Agent 101108  9.05 Delegation of Duties 101108  9.06 Resignation of Agent 101108  9.07 Non-Reliance on Agent and Other Lenders 102109  9.08 No Other Duties, Etc 102109  9.09 Agent May File Proofs of Claim 102109  9.10 Collateral and Guaranty Matters 103110  9.11 Notice of Transfer 103111  9.12 Reports and Financial Statements 103111  9.13 Agency for Perfection 104111  9.14 Indemnification of Agent 104111  9.15 Relation among Lenders 105112  9.16 Defaulting Lenders 105112    ARTICLE X MISCELLANEOUS 107114    10.01 Amendments, Etc 107114  10.02 Notices; Effectiveness; Electronic Communications 108115  10.03 No Waiver; Cumulative Remedies 110117  10.04 Expenses; Indemnity; Damage Waiver 110117  10.05 Payments Set Aside 112119  10.06 Successors and Assigns 112119  10.07 Treatment of Certain Information; Confidentiality 115123  

 

      Exhibit 10.2      10.08 Right of Setoff 116123  10.09 Interest Rate Limitation 116124  10.10 Counterparts; Integration; Effectiveness 116124  10.11 Survival 117124  10.12 Severability 117125  10.13 Replacement of Lenders 117125  10.14 Governing Law; Jurisdiction; Etc. 118125  10.15 Waiver of Jury Trial 119126  10.16 No Advisory or Fiduciary Responsibility 119127  10.17 USA PATRIOTPatriot Act Notice 120127  10.18 Foreign AssetAssets Control Regulations 120127  10.19 Time of the Essence 120128  10.20 [Reserved] 120128  10.21 Press Releases 120128  10.22 Additional Waivers 120128  10.23 No Strict Construction 122129  10.24 Attachments 122130  10.25 Keepwell 122130  10.26 Acknowledgment and Consent to Bail-In of Affected Financial Institutions  130  10.27 Acknowledgment Regarding Any Supported QFCs 130  10.28 Erroneous Payments. 131  

 

      Exhibit 10.2      SCHEDULES    2.01 Commitments and Applicable Percentages  5.01 Loan Parties Organizational Information  5.06 Litigation  5.08(b)(1) Owned Real Estate  5.08(b)(2) Leased Real Estate  5.09 Environmental Matters  5.10 Insurance  5.13 Subsidiaries; Other Equity Investments; Equity Interests in the Borrower  5.17 Intellectual Property Matters  5.18 Collective Bargaining Agreements  5.21(a) Deposit Accounts  5.21(b) Credit Card Arrangements  5.24 Material Contracts  6.02 Financial and Collateral Reporting  7.01 Existing Liens  7.02 Existing Investments  7.03 Existing Indebtedness  7.09 Affiliate Transactions  10.02 Agent’s Office; Certain Addresses for Notices    EXHIBITS    Form of      A LIBO RateReserved  A-1  SOFR Loan Notice  B Swing Line Loan Notice  C-1 Note  C-2 Swing Line Note  D Compliance Certificate  E Assignment and Assumption  F Borrowing Base Certificate  G Credit Card Notification  

 

      Exhibit 10.2      CREDIT AGREEMENT    This CREDIT AGREEMENT (“Agreement”) is entered into as of February 2, 2018, among The  Lovesac Company, a Delaware corporation (the “Lead Borrower,” and together with any other Person  that becomes party hereto as a borrower after the date hereof, individually a “Borrower” and collectively,  the “Borrowers”), SAC Acquisition LLC, a Delaware limited liability company (“Parent,” and together  with any other Person that becomes a party hereto as a guarantor after the date hereof (individually, a  “Guarantor” and collectively, “Guarantors”), each lender from time to time party hereto (individually, a  “Lender” and collectively, the “Lenders”), Wells Fargo Bank, National Association, as Agent, L/C Issuer  and Swing Line Lender.    The Borrowers have requested that the Lenders provide a revolving credit facility, and the  Lenders have indicated their willingness to lend and the L/C Issuer has indicated its willingness to issue  Letters of Credit, in each case on the terms and conditions set forth herein.    In consideration of the mutual covenants and agreements herein contained, the parties hereto  covenant and agree 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:    “Accelerated Borrowing Base Delivery Event” means either (i) the occurrence and continuance of  any Event of Default, or (ii) the failure of the Borrowers to maintain Excess Availability greater than the  amount equal to fifty percent (50%) of the Loan Cap. For purposes of this Agreement, the occurrence of  an Accelerated Borrowing Base Delivery Event shall be deemed continuing (i) so long as such Event of  Default has not been cured or, waived, and/or (ii) if the Accelerated Borrowing Base Delivery Event arises  as a result of the Borrowers’ failure to achieve Excess Availability as required hereunder, until Availability  has exceeded the amount equal to fifty percent (50%) of the Loan Cap for thirty (30) consecutive calendar  days, in which case an Accelerated Borrowing Base Delivery Event shall no longer be deemed to be  continuing for purposes of this Agreement. The termination of an Accelerated Borrowing Base Delivery  Event as provided herein shall in no way limit, waive or delay the occurrence of a subsequent Accelerated  Borrowing Base Delivery Event in the event that the conditions set forth in this definition again arise.    “Acceptable Document of Title” means, with respect to any Inventory, a tangible, negotiable bill  of lading or other Document (as defined in the UCC) that (a) is issued by a common carrier which is not  an Affiliate of the Approved Foreign Vendor or any Loan Party which is in actual possession of such  Inventory, (b) is issued to the order of a Loan Party or, if so requested by the Agent, to the order of the  Agent, (c) names the Agent as a notify party and bears a conspicuous notation on its face of the Agent’s  security interest therein, (d) is not subject to any Lien (other than in favor of the Agent), and (e) is on  terms otherwise reasonably acceptable to the Agent.    “ACH” means automated clearing house transfers.  “Accommodation Payment” as definedhas the meaning specified in Section 10.22(d).  “Account” means “accounts” as defined in the UCC, and also means a right to payment of a  monetary obligation, whether or not earned by performance, (a) for property that has been or is to be            

 

2        Exhibit 10.2      sold, leased, licensed, assigned, or otherwise disposed of, (b) for services rendered or to be rendered, (c)  for a policy of insurance issued or to be issued, (d) for a secondary obligation incurred or to be incurred,  (e) for energy provided or to be provided, (f) for the use or hire of a vessel under a charter or other  contract, (g) arising out of the use of a credit or charge card or information contained on or for use with  the card, or (h) as winnings in a lottery or other game of chance operated or sponsored by a state,  governmental unit of a state, or person licensed or authorized to operate the game by a state or  governmental unit of a state. The term “Account” includes health-care-insurance receivables.    “Acquisition” means, with respect to any Person (a) an investment in, or a purchase of, a  Controlling interest in the Equity Interests of any other Person, (b) a purchase or other acquisition of all  or substantially all of the assets or properties of, another Person or of any business unit, division or line  of business of another Person, (c) any merger or consolidation of such Person with any other Person or  other transaction or series of transactions resulting in the acquisition of all or substantially all of the  assets, or of any business unit, division or line of business of another Person, or a Controlling interest in  the Equity Interests, of any Person, or (d) any acquisition of any Store locations of any Person, in each  case in any transaction or group of transactions which are part of a common plan.    “Act” shall have the meaning provided in Section 10.7.    “Adjusted LIBO Rate” means:    (a) for any Interest Period with respect to any LIBO Borrowing, an interest rate per annum  (rounded upwards, if necessary, to the next one one-hundredth (1/100) of one percent (1%)) equal to (i)  the LIBO Rate for such Interest Period multiplied by (ii) the Statutory Reserve Rate; and    (b) for any interest rate calculation with respect to any Base Rate Loan, an interest rate per  annum (rounded upwards, if necessary, to the next one one-hundredth (1/100) of one percent (1%)) equal  to (i) the LIBO Rate for an Interest Period commencing on the date of such calculation and ending on the  date that is thirty (30) days thereafter multiplied by (ii) the Statutory Reserve Rate.    The Adjusted LIBO Rate will be adjusted automatically as of the effective date of any change in  the Statutory Reserve Rate.    “Adjustment Date” means the first day of each Fiscal MonthQuarter, commencing March 1May  2, 20182022.    “Administrative Questionnaire” means an Administrative Questionnaireadministrative  questionnaire in a form supplied by the Agent.    “Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK Financial  Institution.    “Affiliate” means, with respect to any Person, (a) another Person that directly, or indirectly  through one or more intermediaries, Controls or is Controlled by or is under common Control with the  Person specified, (b) any director, officer, managing member, partner, trustee, or beneficiary of that  Person, (c) any other Person directly or indirectly holding ten percenttwenty-five (1025%) or more of any  class of the Equity Interests of that Person, and (d) any other Person ten percenttwenty-five (1025%) or  more of any class of whose Equity Interests is held directly or indirectly by that Person.    “Agent” means Wells Fargo in its capacity as Agent and collateral agent under any of the Loan  Documents, or any successor thereto.  

 

3        Exhibit 10.2      “Agent Assignee” has the meaning specified in Section 10.28(d).    “Agent Parties” shall havehas the meaning specified in Section 10.02(c).    “Agent Payment Account” means account no. 37235547964503951 of the Agent at Wells Fargo,  or such other account of the Agent as Agent may from time to time designate in writing to the Lead  Borrower as the Agent Payment Account for purposes of this Agreement and the other Loan Documents.    “Agent’s Office” means the Agent’s address and account as set forth on Schedule 10.02, or such  other address or account as the Agent may from time to time notify the Lead Borrower and the Lenders in  writing.    “Aggregate Commitments” means the Commitments of all the Lenders. As of the  ClosingAmendment No. 6 Effective Date, the Aggregate Commitments are $15,000,00040,000,000.    “Agreement” meanshas the meaning specified in the preamble of this Credit Agreement.    “Allocable Amount” has the meaning specified in Section 10.22(d).    “Amendment No. 1” means Amendment No. 1 to Credit Agreement by and among Agent, the  Lenders party thereto, Borrowers and Guarantorsthe Lead Borrower and SAC Acquisition LLC, as in  effect on the date of execution and delivery thereof and as it may thereafter be amended, modified,  supplemented, extended, renewed, restated or replaced.    “Amendment No. 1 Effective Date” shall meanmeans the date on which all conditions precedent  to the effectiveness of Amendment No. 1 have been satisfied or waived.    “Amendment No. 2” means Amendment No. 2 to Credit Agreement by and among Agent, the  Lenders party thereto, Borrowers and Guarantors, as in effect on the date of execution thereof and as it  may thereafter be amended, modified, supplemented, extended, renewed, restated or replaced.    “Amendment No. 2 Effective Date” shall meanmeans the date on which all conditions precedent  to the effectiveness of Amendment No. 2 have been satisfied or waived.    “Amendment No. 3” means Amendment No. 3 to Credit Agreement by and among Agent, the  Lenders party thereto, Borrowers and Guarantors, as in effect on the date of execution thereof and as it  may thereafter be amended, modified, supplemented, extended, renewed, restated or replaced.    “Amendment No. 3 Effective Date” shall mean the date on which all conditions precedent to the  effectiveness of Amendment No. 3 have been satisfied or waived.    “Amendment No. 4” means Amendment No. 4 to Credit Agreement by and among Agent, the  Lenders party thereto, Borrowers and Guarantors, as in effect on the date of execution thereof and as it  may thereafter be amended, modified, supplemented, extended, renewed, restated or replaced.    “Amendment No. 4 Effective Date” means the date on which all conditions precedent to the  effectiveness of Amendment No. 4 have been satisfied or waived.    “Amendment No. 5” means Amendment No. 5 to Credit Agreement by and among Agent, the  Lenders party thereto, and Borrowersthe Lead Borrower, as in effect on the date of execution and  delivery thereof and as it may thereafter be amended, modified, supplemented, extended, renewed,  restated or replaced.  

 

4        Exhibit 10.2      “Amendment No. 5 Effective Date” means the date on which all conditions precedent to the  effectiveness of Amendment No. 5 have been satisfied or waived.    “Amendment No. 6” means Amendment No. 6 to Credit Agreement by and among the Agent, the  Lenders party thereto, and the Lead Borrower, as in effect on the date of execution and delivery thereof  and as it may thereafter be amended, modified, supplemented, extended, renewed, restated or replaced.    “Amendment No. 6 Effective Date” means the date on which all conditions precedent to the  effectiveness of Amendment No. 6 have been satisfied or waived.    “Amendment No. 6 Fee Letter” means the Amendment No. 6 Fee Letter, dated as of the date of  Amendment No. 6, among the Lead Borrower and the Arranger, which fee letter amends and restates  (and supersedes in all respects) the Fee Letter dated the Closing Date in its entirety.    “Anti-corruption Laws” means the FCPA, the U.K. Bribery Act of 2010, as amended, and all  other applicable laws and regulations or ordinances concerning or relating to bribery or corruption in any  jurisdiction in which any Loan Party or any of its Subsidiaries or Affiliates is located or is doing  business.    “Applicable Commitment Fee Percentage” means thirty-seven and one-half basis points  (0.375%) prior to the Amendment No. 6 Effective Date and thirty basis points (0.30%) at all times  thereafter.    “Applicable Lenders” means the Required Lenders, all affected Lenders, or all Lenders, as the  context may require.    “Applicable Margin” means:    (a) From and after the ClosingAmendment No. 6 Effective Date until the first Adjustment  Date thereafter, the percentages set forth in Level I of the pricing grid below; and    (b) From and after the first Adjustment Date and on each Adjustment Date thereafter, the  Applicable Margin shall be determined from the following pricing grid based upon the MonthlyQuarterly  Average Excess Availability as of the Fiscal Month ended immediately preceding such Adjustment Date;  provided, that, (i) notwithstanding anything to the contrary set forth herein, upon the occurrence of an  Event of Default, the Agent may, and at the direction of the Required Lenders shall, immediately  increase the Applicable Margin to that set forth in Level II (even if the MonthlyQuarterly Average  Excess Availability requirements for a different Level have been met) and interest shall accrue at the  Default Rate and (ii) if any Borrowing Base Certificate is at any time restated or otherwise revised  (including as a result of an audit) or if the information set forth in any Borrowing Base Certificate  otherwise proves to be false or incorrect such that the Applicable Margin would have been higher than  was otherwise in effect during any period, without constituting a waiver of any Default or Event of  Default arising as a result thereof, interest due under this Agreement shall be immediately recalculated at  such higher rate for any applicable periods and shall be due and payable on demand.    Level MonthlyQuarter  ly Average  Excess  Availability  LIBORSOFR  Margin  Base Rate  Margin  I Greater than   2.00%     0.50%  

 

5        Exhibit 10.2       50% of  Aggregate  Commitments  the Loan  Cap   1.00%  1.625%    II Less than or      equal to 50% 2.25% 1.25% 0.75%   of Aggregate  1.85%    Commitments      the Loan      Cap       “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. 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. 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.    “Approved Foreign Vendor” means a Foreign Vendor which (a) is located in any country  acceptable to the Agent in its Permitted Discretion, (b) has received timely payment or performance of all  obligations owed to it by the Loan Parties, (c) has not asserted and has no right to assert any reclamation,  repossession, diversion, stoppage in transit, Lien or title retention rights in respect of such Inventory, and  (d), if so requested by the Agent, has entered into and is in full compliance with the terms of a Foreign  Vendor Agreement (provided, that, as of the date hereof, without limitation of the right of the Agent after  the date hereof to make such request, the Agent has not requested a Foreign Vendor Agreement from any  Foreign Vendor).    “Approved Fund” means any Person (other than a natural person) that is (or will be) engaged in  making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit  in the ordinary course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate  of a Lender, (c) an entity or an Affiliate of an entity that administers or manages a Lender or (d) the same  investment advisor or an advisor under common control with such Lender, Affiliate or advisor, as  applicable.  “Arranger” means Wells Fargo in its capacity as sole lead arranger and sole book manager.  “Assignee Group” means two or more Eligible Assignees that are Affiliates of one another or  two or more Approved Funds managed by the same investment advisor.    “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 Agent, in substantially the form of Exhibit E or any other form approved by the  Agent.  

 

6        Exhibit 10.2      “Audited Financial Statements” means (i) for purposes of Section 1.03(a), the audited  consolidated balance sheet of the ParentLead Borrower and its Subsidiaries for the Fiscal Year ended  January 31, 2021 and the related consolidated statements of income or operations, Shareholders’ Equity  and cash flows for such Fiscal Year of the Lead Borrower and its Subsidiaries, including the notes  thereto, and (ii) for all other purposes, the audited consolidated balance sheet of SAC Acquisition LLC  and its Subsidiaries for the Fiscal Year ended January 29, 2017 and the related consolidated statements of  income or operations, Shareholders’ Equity and cash flows for such Fiscal Year of the Parent SAC  Acquisition LLC and its Subsidiaries, including the notes thereto.    “ 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.    “ Availability Reserves” means, without duplication of any other Reserves or items to the extent  such items are otherwise addressed or excluded through eligibility criteria, such reserves as the Agent  from time to time determines in its Permitted Discretion as being appropriate (a) to reflect the  impediments to the Agent’s ability to realize upon the Collateral, (b) to reflect claims and liabilities that  the Agent determines will need to be satisfied in connection with the realization upon the Collateral, (c)  to reflect criteria, events, conditions, contingencies or risks which adversely affect any component of the  Borrowing Base, or the assets, business, financial performance or financial condition of any Loan Party,  or (d) to reflect that a Default or an Event of Default then exists. Without limiting the generality of the  foregoing, Availability Reserves may include, in the Agent’s Permitted Discretion, but are not limited to,  reserves based on: (i) rent; (ii) customs duties, and other costs to release Inventory which is being  imported into the United States; (iii) outstanding Taxes and other governmental charges, including,  without limitation, ad valorem, real estate, personal property, sales, claims of the PBGC and other Taxes  which may have priority over the interests of the Agent in the Collateral; (iv) salaries, wages and benefits  due to employees of any Borrower, (v) customer credit liabilities consisting of the aggregate remaining  value at such time of (A) outstanding gift certificates and gift cards of the Borrowers entitling the holder  thereof to use all or a portion of the certificate or gift card to pay all or a portion of the purchase price for  any Inventory, (B) outstanding merchandise credits of the Borrowers, and (C) liabilities in connection  with frequent shopping programs of the Borrowers, (vi) deposits made by customers with respect to the  purchase of goods or the performance of services and layaway obligations of the Borrowers, (vii)  reserves for reasonably anticipated changes in the appraised Valuevalue of Eligible Inventory between  appraisals, (viii) warehousemen’s or bailee’s charges and other Permitted Encumbrances which may have  priority over the interests of the Agent in the Collateral, (ix) Cash Management Reserves, and (xi) Bank  Products Reserves.    “Available Tenor” means, as of any date of determination and with respect to the then-current  Benchmark, as applicable, (a) if such Benchmark is a term rate, any tenor for such Benchmark (or  component thereof) that is or may be used for determining the length of an interest period pursuant to this  Agreement or (b) otherwise, any payment period for interest calculated with reference to such  Benchmark (or component thereof) that is or may be used for determining any frequency of making  payments of interest calculated with reference to such Benchmark, in each case, as of such date and not  including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the  definition of “Interest Period” pursuant to Section 3.03(b)(iv) which has not been reinstated pursuant to  Section 3.03(b)(iv).    “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.  

 

7        Exhibit 10.2      “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, regulation, rule 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 in 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 Products” means any services ofor facilities provided to any Loan Party by the Agent or  any of its Affiliates (but excluding Cash Management Services) including, without limitation, on account  of (a) Swap Contracts, (b) merchant services constituting a line of credit, (c) leasing, (d) Factored  Receivables, and (e) supply chain finance services including, without limitation, trade payable services  and supplier accounts receivable purchases.    “Bank Product Reserves” means such reserves as the Agent from time to time determines in its  Permitted Discretion as being appropriate to reflect the liabilities and obligations of the Loan Parties with  respect to Bank Products then provided or outstanding.    “Base Rate” means, for any day, a fluctuating rate per annum equal to the highest of (a) the  Floor, (b) the Federal Funds Rate, as in effect from time to time,on such day plus one-half of one percent  (0.501⁄2%), (b) the Adjusted LIBO Rate plus one percent (1.00%), orc) Term SOFR for a one month tenor  in effect on such day, plus 1%, provided that this clause (c) shall not be applicable during any period in  which Term SOFR is unavailable or unascertainable, and (cd) the rate of interest in effect for such day as  publicly announced, from time to time by, within Wells Fargo at its principal office in San Francisco as  its “prime rate.” Thein effect on such day, with the understanding that the “prime rate” is a rate set by  Wells Fargo based upon various factors includingone of Wells Fargo’s costs and desired return, general  economic conditions and other factors, and is used as a reference pointbase rates (not necessarily the  lowest of such rates) and serves as the basis upon which effective rates of interest are calculated for  pricing somethose loans, which may be priced at, above, or below such announced rate. Any change in  such rate announced by Wells Fargo shall take effect at the opening of business on the day specified in  the public making reference thereto and is evidenced by the recording thereof after its announcement ofin  such changeinternal publications as Wells Fargo may designate in writing.    “Base Rate Loan” means a Loan that bears interest based on the Base Rate.    “Benchmark” means, initially, the Term SOFR Reference Rate; provided that if a Benchmark  Transition Event has occurred with respect to the Term SOFR Reference Rate or the then-current  Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the extent that such  Benchmark Replacement has replaced such prior Benchmark in accordance with Section 3.03(b)(i).    “Benchmark Replacement” means, with respect to any Benchmark Transition Event for any  then-current Benchmark, the sum of: (a) the alternate benchmark rate that has been selected by the Agent  and the Lead Borrower as replacement for such Benchmark giving due consideration to (i) any selection  or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the  Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a  benchmark rate as a replacement for such Benchmark for Dollar-denominated syndicated credit facilities  and (b) the related Benchmark Replacement Adjustment; provided that if such Benchmark Replacement  as so determined would be less than the Floor, such Benchmark Replacement shall be deemed to be the  Floor for the purposes of this Agreement and the other Loan Documents.  

 

8        Exhibit 10.2      “Benchmark Replacement Adjustment” means, with respect to any replacement of the  then-current Benchmark with an Unadjusted Benchmark Replacement for any applicable Available  Tenor, the spread adjustment, or method for calculating or determining such spread adjustment, (which  may be a positive or negative value or zero) that has been selected by the Agent and the Lead Borrower  giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for  calculating or determining such spread adjustment, for the replacement of such Benchmark with the  applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving  or then-prevailing market convention for determining a spread adjustment, or method for calculating or  determining such spread adjustment, for the replacement of such Benchmark with the applicable  Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities.    “Benchmark Replacement Date” means the earliest to occur of the following events with respect  to the then-current Benchmark:    (a) in the case of clause (a) or (b) of the definition of “Benchmark Transition Event,” the later  of (i) the date of the public statement or publication of information referenced therein and (ii) the  date on which the administrator of such Benchmark (or the published component used in the  calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such  Benchmark (or such component thereof); or    (b) in the case of clause (c) of the definition of “Benchmark Transition Event,” the first date  on which such Benchmark (or the published component used in the calculation thereof) has been  determined and announced by the regulatory supervisor for the administrator of such Benchmark  (or such component thereof) to be non-representative; provided, that such non-representativeness  will be determined by reference to the most recent statement or publication referenced in such  clause (c) and even if any Available Tenor of such Benchmark (or such component thereof)  continues to be provided on such date;    For the avoidance of doubt, the “Benchmark Replacement Date” will be deemed to have occurred in the  case of clause (a) or (b) with respect to any Benchmark upon the occurrence of the applicable event or  events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the  published component used in the calculation thereof).    “Benchmark Transition Event” means the occurrence of one or more of the following events with  respect to the then-current Benchmark:    (a) a public statement or publication of information by or on behalf of the administrator of  such Benchmark (or the published component used in the calculation thereof) announcing that  such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or  such component thereof), permanently or indefinitely, provided that, at the time of such statement  or publication, there is no successor administrator that will continue to provide any Available  Tenor of such Benchmark (or such component thereof);    (b) a public statement or publication of information by the regulatory supervisor for the  administrator of such Benchmark (or the published component used in the calculation thereof), the  FRB, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the  administrator for such Benchmark (or such component), a resolution authority with jurisdiction  over the administrator for such Benchmark (or such component) or a court or an entity with similar  insolvency or resolution authority over the administrator for such Benchmark (or such component),  which states that the administrator of such Benchmark (or such component) has ceased or will cease  to provide all Available Tenors of such Benchmark (or such component  

 

9        Exhibit 10.2      thereof) permanently or indefinitely, provided that, at the time of such statement or publication,  there is no successor administrator that will continue to provide any Available Tenor of such  Benchmark (or such component thereof); or    (c) a public statement or publication of information by the regulatory supervisor for the  administrator of such Benchmark (or the published component used in the calculation thereof)  announcing that all Available Tenors of such Benchmark (or such component thereof) are not, or  as of a specified future date will not be, representative.    For the avoidance of doubt, a “Benchmark Transition Event” will be deemed to have occurred with respect  to any Benchmark if a public statement or publication of information set forth above has occurred with  respect to each then-current Available Tenor of such Benchmark (or the published component used in the  calculation thereof).    “Benchmark Transition Start Date” means, in the case of a Benchmark Transition Event, the earlier  of (a) the applicable Benchmark Replacement Date and (b) if such Benchmark Transition Event is a public  statement or publication of information of a prospective event, the 90th day prior to the expected date of  such event as of such public statement or publication of information (or if the expected date of such  prospective event is fewer than 90 days after such statement or publication, the date of such statement or  publication).    “Benchmark Unavailability Period” means, with respect to any then-current Benchmark, the  period (if any) (x) beginning at the time that a Benchmark Replacement Date with respect to such  Benchmark pursuant to clauses (a) or (b) of that definition has occurred if, at such time, no Benchmark  Replacement has replaced such Benchmark for all purposes hereunder and under any Loan Document in  accordance with Section 3.03(b) and (y) ending at the time that a Benchmark Replacement has replaced  such Benchmark for all purposes hereunder and under any Loan Document in accordance with Section  3.03(b).    “Beneficial Ownership Certification” means a certification regarding beneficial ownership as  required by the Beneficial Ownership Regulation.    “Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.    “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.    “Borrower Materials” has the meaning specified in Section 6.02.    “Borrower” and “Borrowers” hashave the meaningmeanings specified in the introductory  paragraph heretopreamble of this Agreement.    “Borrowing” means a Committed Borrowing or a Swing Line Borrowing, as the context may  require.    “Borrowing Base” means, at any time of calculation, an amount equal to:    (a) ninety percent (90%) multiplied by the Eligible Credit Card Receivables; plus    (b) eighty-five percent (85%) of the Eligible Wholesale Receivables (provided, that, in no  event will the aggregate amount of Eligible Wholesale Receivables included in the Borrowing Base at  any time exceed twenty percent (20%) of the Loan Cap); plus  

 

10        Exhibit 10.2      (c) eighty-five percent (85%) of the Net Recovery Percentage of Eligible Inventory  multiplied by the Cost of such Eligible Inventory for the period from December 16 of each year until  October 14 of the immediately following year, which percentage shall increase to ninety percent (90%)  of the Net Recovery Percentage for the period from October 15 of each year until December 15 of such  year (provided, that, in no event will the aggregate amount of Eligible Inventory consisting of  work-in-process that are sac liners and duffels included in the Borrowing Base at any time exceed ten  percent (10%) of the amount of Eligible Inventory, excluding such Eligible Inventory consisting of (i)  work-in-process and (ii) Eligible In-Transit Inventory); minus    (d) Reserves.    “Borrowing Base Certificate” means a certificate substantially in the form of Exhibit F hereto  (with such changes therein as may be required by the Agent to reflect the components of and reserves  against the Borrowing Base as provided for hereunder from time to time), executed and certified as  accurate and complete by a Responsible Officer of the Lead Borrower, which shall include appropriate  exhibits, schedules, supporting documentation, and additional reports as reasonably requested by the  Agent.    “Business” means the business engaged in by Borrowers on the ClosingAmendment No. 6  Effective Date and similar, ancillary or related businesses.    “Business Day” means any day other thanthat is not 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  Agent’s Office is located and, if such day relates to any LIBO Rate Loan, means any such day on which  dealings in Dollar deposits are conducted by and between banks in the London interbank marketthe Federal  Reserve Bank of New York is closed.    “Capital Expenditures” means, with respect to any Person for any period, (a) all expenditures  made (whether made in the form of cash or other property) or costs incurred for the acquisition or  improvement of fixed or capital assets of such Person (excluding normal replacements and maintenance  which are properly charged to current operations), in each case that are (or should be) set forth as capital  expenditures in a Consolidated statement of cash flows of such Person for such period, in each case  prepared in accordance with GAAP, and (b) Capital Lease Obligations incurred by a Person during such  period.    “Capital Lease Obligations” means, with respect to any Person for any period, the obligations of  such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to  use) real or personal property, or a combination thereof, which obligations are required to be classified  and accounted for as liabilities on a balance sheet of such Person under GAAP and the amount of which  obligations shall be the capitalized amount thereof determined in accordance with GAAP.    “Cash Collateral Account” means a non-interest bearing account established by one or more of  the Loan Parties with Wells Fargo, and in the name of, the Agent (or as the Agent shall otherwise direct)  and under the sole and exclusive dominion and control of the Agent, in which deposits areCash Collateral  is required to be madedeposited in accordance with Section 2.03(k) or 8.02(c).    “Cash Collateralize” has the meaning specified in Section 2.03(k). Derivatives of such term have  corresponding meanings.    “Cash Dominion Event” means either (i) the occurrence and continuance of any Event of  Default, or (ii) the failure of the Borrowers to maintain Excess Availability of at least the amount equal  

 

11        Exhibit 10.2      to thirty-five percent (35%) of the Loan Cap, for three (3) consecutive Business Days. For purposes of  this Agreement, the occurrence of a Cash Dominion Event shall be deemed continuing (i) so long as such  Event of Default has not been cured or waived, and/or (ii) if the Cash Dominion Event arises as a result  of the Borrowers’ failure to achieve Excess Availability as required hereunder, until Excess Availability  has exceeded the amount equal to thirty-five percent (35%) of the Loan Cap for thirty (30) consecutive  Business Days, in which case a Cash Dominion Event shall no longer be deemed to be continuing for  purposes of this Agreement. The termination of a Cash Dominion Event as provided herein shall in no  way limit, waive or delay the occurrence of a subsequent Cash Dominion Event in the event that the  conditions set forth in this definition again arise.    “Cash Equivalents” means (a) readily marketable obligations issued or directly and fully  guaranteed or insured by the United States of America or any agency or instrumentality thereof having  maturities of not more than three hundred sixty (360) days from the date of acquisition thereof; provided,  that, the full faith and credit of the United States of America is pledged in support thereof; (b)  commercial paper issued by any Person organized under the laws of any state of the United States of  America and rated at least “Prime-1” (or the then equivalent grade) by Moody’s or at least “A-1” (or the  then equivalent grade) by S&P, in each case with maturities of not more than one hundred eighty (180)  days from the date of acquisition thereof; (c) time deposits with, or insured 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 of America, 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 of America, any  state thereof or the District of Columbia, and is a member of the Federal Reserve System, (ii) issues (or  the parent of which issues) commercial paper rated as described in clause (c) of this definition and (iii)  has combined capital and surplus of at least $1,000,000,000, in each case with maturities of not more  than one hundred eighty (180) days from the date of acquisition thereof; (d) fully collateralized  repurchase agreements with a term of not more than thirty (30) days for securities described in clause (a)  above (without regard to the limitation on maturity contained in such clause) and entered into with a  financial institution satisfying the criteria described in clause (c) above or with any primary dealer and  having a market value at the time that such repurchase agreement is entered into of not less than one  hundred percent (100%) of the repurchase obligation of such counterparty entity with whom such  repurchase agreement has been entered into; (e) Investments, classified in accordance with GAAP as  current assets of the Loan Parties, in any money market fund, mutual fund, or other investment  companies that are registered under the Investment Company Act of 1940, as amended, which are  administered by financial institutions that have the highest rating obtainable from either Moody’s or  S&P, and which invest solely in one or more of the types of securities described in clauses (a) through  (d) above.      “Cash Management Bank” means each bank with whom Deposit Accounts are maintained in  which any funds of any of the Loan Parties from one or more Deposit Accounts are concentrated and  with whom a Control Agreement has been, or is required to be, executed in accordance with the terms  hereof.and “Cash Management Banks” have meanings specified in Section 6.13(a).    “Cash Management Reserves “ means such reserves as the Agent, from time to time, determines  in its Permitted Discretion as being appropriate to reflect the reasonably anticipated liabilities and  obligations of the Loan Parties with respect to Cash Management Services then provided or outstanding.    “Cash Management Services” means any cash management services or facilities provided to any  Loan Party by the Agent or any of its Affiliates, including, without limitation: (a) ACH transactions, (b)  controlled disbursement services, treasury, depository, overdraft, and electronic funds transfer services,  (c) credit or debit cards, (d) credit card processing services, and (e) purchase cards.  

 

12        Exhibit 10.2      “CERCLA” means the Comprehensive Environmental Response, Compensation, and Liability  Act, 42 U.S.C. § 9601 et seq.    “CERCLIS” means the Comprehensive Environmental Response, Compensation, and Liability  Information System maintained by the United States Environmental Protection Agency.  “CFC” means a Person that is a controlled foreign corporation under Section 957 of the Code.  “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 or application thereof by any  Governmental Authority, or (c) the making or issuance of any request, guideline or directive (whether or  not having the force of law) by any Governmental Authority; provided that notwithstanding anything  herein to the contrary, (ix) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all  requests, rules, guidelines or directives thereunder or issued in connection therewith and (iiy) all  requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel  Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign  regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in  Law”, regardless of the date enacted, adopted or issued.    “Change of Control” means an event or series of events by which:    (a) at any time prior to a Qualifying IPO, the Sponsor shall cease to own and control legally  and beneficially (free and clear of all Liens), either directly or indirectly, equity securities in Parent  representing more than sixty-six and two-thirds (66 2/3%)% of the combined voting power of all of  Equity Interests entitled to vote for members of the board of directors or equivalent governing body of  the Parent on a fully-diluted basis (and taking into account all such securities that Sponsor has the right  to acquire pursuant to any option right (as defined in clause (b) below));    (a) (b) at any time after a Qualifying IPO, 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), other than the Sponsor, becomes the “beneficial  owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a  person or group shall be deemed to have “beneficial ownership” of all securities that such person or  group has the right to acquire, whether such right is exercisable immediately or only after the passage of  time (such right, an “option right”)), directly or indirectly, of thirty-five percent (35%) or more of the  Equity Interests of the ParentLead Borrower entitled to vote for members of the board of directors or  equivalent governing body of the ParentLead Borrower on a fully-diluted basis (and taking into account  all such Equity Interests that such “person” or “group” has the right to acquire pursuant to any option  right); or    (b) (c) during any period of twelve (12) consecutive months, a majority of the members of  the board of directors or other equivalent governing body of the ParentLead Borrower 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  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 or (iii) whose election or  nomination to that board or other equivalent governing body was 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; or  

 

13        Exhibit 10.2      (c) (d) any “change in control” or “sale” or “disposition” or similar event as defined in any  document governing Material Indebtedness of any Loan Party; or    (d) (e) the ParentLead Borrower fails at any time to own, directly or indirectly, one hundred  percent (100%) of the Equity Interests of each other Loan Party free and clear of all Liens (other than the  Liens in favor of the Agent), except where such failure is as a result of a transaction permitted by the  Loan Documents.    “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, and the regulations promulgated thereunder,  as amended and in effect.    “Collateral” means any and all “Collateral” as defined in any applicable Security Document and  all other property that is or is intended under the terms of the Security Documents to be subject to Liens  in favor of the Agent.    “Collateral Access Agreement” means an agreement reasonably satisfactory in form and  substance to the Agent executed and delivered by (a) a bailee or other Person in possession of Collateral,  and (b) any landlord of Real Estate leased by any Loan Party where books and records or Collateral  included in the Borrowing Base is located.    “Collection Account” means any Deposit Account of a Loan Party that at any time receives, or is  otherwise established for the purpose of receiving, payments in respect of Credit Card Receivables,  Accounts or other proceeds of any Collateral, including, without limitation, the Deposit Accounts  designated as Collection Accounts in Schedule 5.21(a).    “Commercial Letter of Credit” means any Letter of Credit issued for the purpose of providing the  primary payment mechanism in connection with the purchase of any materials, goods or services by a  Loan Party in the ordinary course of business of such Loan Party.    “Commercial Letter of Credit Agreement” means the Commercial Letter of Credit  Agreementcommercial letter of credit agreement relating to the issuance of a Commercial Letter of  Credit in substantially the form from time to time in use by the L/C Issuer.    “Commitment” means, as to each Lender, its obligation to (a) make Committed Loans to the  Borrowers 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.    “Committed Borrowing” means a borrowing consisting of simultaneous Committed Loans of the  same Type and, in the case of LIBO RateSOFR Loans, having the same Interest Period made by each of  the Lenders pursuant to Section 2.01.    “Committed Increase” has the meaning specified in Section 2.15(a).    “Committed Loan” has the meaning specified in Section 2.01(a).    “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.  

 

14        Exhibit 10.2      “Compliance Certificate” means a certificate substantially in the form of Exhibit D.    “Concentration Account” means any Deposit Account of a Loan Party that at any time receives,  or is otherwise established for the purpose of receiving, payments from other Collection Accounts,  including, without limitation, the Deposit Accounts designated as Concentration Accounts in Schedule  5.21(a).    “Conforming Changes” means, with respect to either the use or administration of Term SOFR or  the use, administration, adoption or implementation of any Benchmark Replacement, any technical,  administrative or operational changes (including changes to the definition of “Base Rate,” the definition  of “Business Day,” the definition of “U.S. Government Securities Business Day,” the definition of  “Interest Period” or any similar or analogous definition (or the addition of a concept of “interest period”),  timing and frequency of determining rates and making payments of interest, timing of borrowing requests  or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the  applicability of Section 3.05 and other technical, administrative or operational matters) that the Agent  decides may be appropriate to reflect the adoption and implementation of any such rate or to permit the  use and administration thereof by the Agent in a manner substantially consistent with market practice (or,  if the Agent decides that adoption of any portion of such market practice is not administratively feasible  or if the Agent determines that no market practice for the administration of any such rate exists, in such  other manner of administration as the Agent decides is reasonably necessary in connection with the  administration of this Agreement and the other Loan Documents).    “Consent” means actual consent given by a Lender from whom such consent is sought; or the  passage of seven (7) Business Days from receipt of written notice to a Lender from the Agent of a  proposed course of action to be followed by the Agent without such Lender’s giving the Agent written  notice of that Lender’s objection to such course of action.    “Consolidated” means, when used to modify a financial term, test, statement, or report of a  Person, the application or preparation of such term, test, statement or report (as applicable) based upon  the consolidation, in accordance with GAAP, of the financial condition or operating results of such  Person and its Subsidiaries.    “Contractual Obligation” means, as to any Person, any provision 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.    “Control” means the possession, directly or indirectly, of the power to direct or cause the  direction of the management or policies of a Person, whether through the ability to exercise voting  power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto.    “Control Agreement” means with respect to a Deposit Account or a Securities Account  established by a Loan Party, an agreement, in form and substance reasonably satisfactory to the Agent,  establishing control, pursuant to Section 9-104 of the UCC or other applicable section of the UCC, of  such account by the Agent and which provides for such other rights with respect thereto as the Agent  may reasonably require.    “Controlled Investment Affiliate” means, as to any Person, any other Person which directly or  indirectly is in control of, is controlled by, or is under common control with, such Person and is  organized by such Person (or any Person controlling or controlled by such Person) primarily for making  equity or debt Investments, directly or indirectly, in Holdings or other portfolio companies of such  Person. For purposes of this definition, “control” of a Person means the power, directly or indirectly, to  direct or cause the direction of the management or policies of such Person, whether by contract or  otherwise.  

 

15        Exhibit 10.2      “Cost” means the lower of cost or market value of Inventory, based upon the Borrowers’  accounting practices, known to the Agent, which practices are in effect on the Closing Date as such  calculated cost is determined from invoices received by the Borrowers, the Borrowers’ purchase journals  or the Borrowers’ stock ledger. “Cost” does not include inventory capitalization costs or other  non-purchase price charges (such as freight) used in the Borrowers’ calculation of cost of goods sold.  “Covered Entity” means any of the following:  (a) a “covered entity” as that term is defined in, and interpreted in accordance with,  12 C.F.R. § 252.82(b);    (b) a “covered bank” as that term is defined in, and interpreted in accordance with,  12 C.F.R. § 47.3(b); or    (c) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12  C.F.R. § 382.2(b).    “Covered Party” has the meaning specified in Section 10.27.    “Credit Card Agreements” means all agreements now or hereafter entered into by any Borrower  or any Guarantor for the benefit of any Borrower, in each case with any Credit Card Issuer or any Credit  Card Processor, including, but not limited to, the agreements set forth on Schedule 5.21(b) hereto.    “Credit Card Issuer” shall meanmeans any personPerson (other than a Borrower or other Loan  Party) who issues or whose members issue credit cards, including, without limitation, MasterCard or  VISA bank credit or debit cards or other bank credit or debit cards issued through MasterCard  International, Inc., Visa, U.S.A., Inc. or Visa International and American Express, Discover, Diners Club,  Carte Blanche and other non-bank credit or debit cards, including, without limitation, credit or debit  cards issued by or through American Express Travel Related Services Company, Inc., and Novus  Services, Inc. and other issuers approved by the Agent.    “Credit Card Processor” shall meanmeans any servicing or processing agent or any factor or  financial intermediary who facilitates, services, processes or manages the credit authorization, billing  transfer and/or payment procedures with respect to any Borrower’s sales transactions involving credit  card or debit card purchases by customers using credit cards or debit cards issued by any Credit Card  Issuer.    “Credit Card Notification” means a notification and acknowledgement substantially in the form  of Exhibit G, which has been executed on behalf of the applicable Loan Party and delivered to the  applicable Credit Card Issuer or Credit Card Processor (with evidence of such delivery received by  Agent).    “Credit Card Receivables” means each “payment intangible” (as defined in the UCC) together  with all income, payments and proceeds thereof, owed by a Credit Card Issuer or Credit Card Processor  to a Loan Party resulting from charges by a customer of a Loan Party on credit or debit cards issued by  such Credit Card Issuer in connection with the sale of goods by a Loan Party, or services performed by a  Loan Party, in each case in the ordinary course of its business.    “Credit Extensions” meanmeans each of the following: (a) a Borrowing and (b) an L/C Credit  Extension.  

 

16        Exhibit 10.2      “Credit Party” or “Credit Parties” means (a) individually, (i) each Lender and its Affiliates, (ii)  the Agent, (iii) each L/C Issuer, (iv) the Arranger, (v) each beneficiary of each indemnification obligation  undertaken by any Loan Party under any Loan DocumentIndemnitee, (vi) any other Person to whom  Obligations under this Agreement and the other Loan Documents are owing, and (vii) the successors and  assigns of each of the foregoing, and (b) collectively, all of the foregoing.    “Credit Party Expenses” means, without limitation, (a) all reasonable and documented  out-of-pocket expenses actually incurred by the Agent and its Affiliates in connection with this  Agreement and the other Loan Documents, including without limitation (i) the reasonable and  documented out-of-pocket fees, charges and disbursements of (A) counsel for the Agent (other than, prior  to a Default or an Event of Default, allocated costs of in-house counsel), (B) outside consultants for the  Agent, (C) appraisers, (D) commercial finance examinations, and (E) all such out-of-pocket expenses  incurred during any workout, restructuring or negotiations in respect of the Obligations, (ii) in connection  with (A) the syndication of the credit facilitiesfacility provided for herein, (B) the preparation,  negotiation, administration, management, execution and delivery of this Agreement and the other Loan  Documents or any amendments, modifications or waivers of the provisions thereof (whether or not the  transactions contemplated hereby or thereby shall be consummated), (C) the enforcement or protection of  their rights in connection with this Agreement or the Loan Documents or efforts to preserve, protect,  collect, or enforce the Collateral, or (D) any workout, restructuring or negotiations in respect of any  Obligations, and (iii) all customary fees and charges (as adjusted from time to time) of the Agent with  respect to the disbursement of funds (or the receipt of funds) to or for the account of Borrowers (whether  by wire transfer or otherwise), together with any reasonable and documented out-of-pocket costs and  expenses incurred in connection therewith, and (b) with respect to the L/C Issuer, and its Affiliates, all  reasonable and documented out-of-pocket expenses actually incurred in connection with the issuance,  amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder; and (c)  all reasonable and documented out-of-pocket expenses incurred by the Credit Parties who are not the  Agent, the L/C Issuer or any Affiliate of any of them, after the occurrence and during the continuance of  an Event of Default,; provided that such Credit Parties shall be entitled to reimbursement for no more  than one counsel representing all such Credit Parties (absent a conflict of interest in which case the  Credit Parties may engage and be reimbursed for additional counsel).    “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 Margin, if any, applicable to Base Rate  Loans, plus (iii) two percent (2%) per annum; provided, however, that with respect to a LIBO RateSOFR  Loan, the Default Rate shall be an interest rate equal to the interest rate (including any Applicable  Margin) otherwise applicable to such Loan plus two percent (2%) per annum, and (b) when used with  respect to Letter of Credit Fees, a rate equal to the Applicable Margin for LIBO RateSOFR Loans for  Standby Letters of Credit or Commercial Letters of Credit, as applicable, plus two percent (2% ) per  annum.    “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.  

 

17        Exhibit 10.2      “Defaulting Lender” means any Lender that (a) has failed to fund any amounts required to be  funded by it under this Agreement within one (1) Business Day of the date that it is required to do so  under this Agreement (including the failure to make available to the Agent amounts required pursuant to  a Settlement or to make a required payment in connection with a Letter of Credit Disbursement), (b)  notified the Borrowers, the Agent, or any Lender in writing that it does not intend to comply with all or  any portion of its funding obligations under this Agreement, (c) has made a public statement to the effect  that it does not intend to comply with its funding obligations under the Agreement or under other  agreements generally (as reasonably determined by the Agent) under which it has committed to extend  credit, (d) failed, within one (1) Business Day after written request by the Agent, to confirm that it will  comply with the terms of the Agreement relating to its obligations to fund any amounts required to be  funded by it under the Agreement, (e) otherwise failed to pay over to the Agent or any other Lender any  other amount required to be paid by it under the Agreement within one (1) Business Day of the date that  it is required to do so under the Agreement, or (f) (i) becomes or is insolvent or has a parent company  that has become or is insolvent or (ii) becomes the subject of a bankruptcy or insolvency proceeding, or  has had a receiver, conservator, trustee, or custodian or appointed for it, or has taken any action in  furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or  appointment or has a parent company that has become the subject of a bankruptcy or insolvency  proceeding, or has had a receiver, conservator, trustee, or custodian appointed for it, or has taken any  action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding  or appointment, or (iii) becomes the subject of a Bail-in Action or has a parent company that has become  the subject of a Bail-in Action.    “Defaulting Lender Rate” means (a) for the first three (3) days from and after the date the  relevant payment is due, the Base Rate, and (b) thereafter, the interest rate then applicable to Committed  Loans that are Base Rate Loans (inclusive of the Applicable Margin applicable thereto).    “Deposit Account” means each checking, savings or other demand deposit account maintained by  any of the Loan Parties. All funds in each Deposit Account shall be conclusively presumed to be  Collateral and proceeds of Collateral and the Agent and the Lenders shall have no duty to inquire as to  the source of the amounts on deposit in any Deposit Account.    “Disposition” or “Dispose” means the sale, transfer, license, lease or other disposition (including  any sale and leaseback transaction and any sale, transfer, license or other disposition of (whether in one  transaction or in a series of transactions) of any property (including, without limitation, any Equity  Interests other than the Equity Interests of the Lead Borrower) by any Person (or the granting of any  option or other right to do any of the foregoing), 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 and including any transaction described in this definition that is consummated  pursuant to an allocation of assets among newly divided limited liability companies pursuant to a “plan  of division.”    “Disqualified Stock” means any Equity Interest that, by its terms (or by the terms of any security  into which it is convertible, or for which it is exchangeable, in each case at the option of the holder  thereof), or upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking  fund obligation or otherwise, or redeemable at the option of the holder thereof, in whole or in part, on or  prior to the date that is ninety-one (91) days after the date on which the Loans mature; provided,  however, that (i) only the portion of such Equity Interests which so matures or is mandatorily  redeemable, is so convertible or exchangeable or is so redeemable at the option of the holder thereof  prior to such date shall be deemed to be Disqualified Stock and (ii) with respect to any Equity Interests  issued to any employee or to any plan for the benefit of employees of the Lead Borrower or its  Subsidiaries or by any such plan to such employees, such Equity Interest shall not constitute Disqualified  

 

18        Exhibit 10.2      Stock solely because it may be required to be repurchased by the Lead Borrower or one of its  Subsidiaries in order to satisfy applicable statutory or regulatory obligations or as a result of such  employee’s termination, resignation, death or disability and if any class of Equity Interest of such Person  that by its terms authorizes such Person to satisfy its obligations thereunder by delivery of an Equity  Interest that is not Disqualified Stock, such Equity Interests shall not be deemed to be Disqualified Stock.  Notwithstanding the preceding sentence, any Equity Interest that would constitute Disqualified Stock  solely because the holders thereof have the right to require a Loan Party to repurchase such Equity  Interest upon the occurrence of a change of control or an asset sale shall not constitute Disqualified  Stock. The amount of Disqualified Stock deemed to be outstanding at any time for purposes of this  Agreement will be the maximum amount that the Lead Borrower and its Subsidiaries may become  obligated to pay upon maturity of, or pursuant to any mandatory redemption provisions of, such  Disqualified Stock or portion thereof, plus accrued dividends.    “Dollars” and “$” mean lawful money of the United States.    “Drawing Document” means any Letter of Credit or other document presented for purposes of  drawing under any Letter of Credit.    “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 clause (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 (a) a Credit Party or any of its Affiliates; (b) a bank, insurance  company, or company engaged in the business of making commercial loans, which Person, together with  its Affiliates, has a combined capital and surplus in excess of $250,000,000; (c) an Approved Fund; (d)  any Person to whom a Credit Party assigns its rights and obligations under this Agreement as part of an  assignment and transfer of such Credit Party’s rights in and to a material portion of such Credit Party’s  portfolio of asset based credit facilities, and (e) any other Person (other than a natural person) approved  by (i) the Agent, the L/C Issuer and the Swing Line Lender, and (ii) unless a Default or an Event of  Default has occurred and is continuing, the Lead Borrower (each such approval not to be unreasonably  withheld or delayed); provided that notwithstanding the foregoing, “Eligible Assignee” shall not include  a Loan Party or any of the Loan Parties’ Affiliates or Subsidiaries.    “Eligible Credit Card Receivables” means at the time of any determination thereof, each Credit  Card Receivable that satisfies the criteria set forth below at the time of creation and continues to meet the  same at the time of such determination, as determined by the Agent in its Permitted Discretion. Without  limiting the foregoing, to qualify as an Eligible Credit Card Receivable, such Credit Card Receivable  shall indicate no Person other than a Borrower as payee or remittance party. In determining the amount  to be so included, the face amount of a Credit Card Receivable shall be reduced by, without duplication,  to the extent not reflected in such face amount, (i) the amount of all accrued and actual discounts, claims,  credits or credits pending, promotional program allowances, price adjustments, finance charges or other  

 

19        Exhibit 10.2      allowances (including any amount that a Borrower may be obligated to rebate to a customer, a Credit  Card Issuer or Credit Card Processor pursuant to the terms of any agreement or understanding (written or  oral)) and (ii) the aggregate amount of all cash received in respect of such Credit Card Receivable but not  yet applied by the Loan Parties to reduce the amount of such Credit Card Receivable. Except as  otherwise agreed by the Agent, any Credit Card Receivable included within any of the following  categories shall not constitute an Eligible Credit Card Receivable:    (a) Credit Card Receivables which do not constitute a “payment intangible” (as defined in  the UCC);    (b) Credit Card Receivables that have been outstanding for more than five (5) Business  Days from the date of sale;    (c) Credit Card Receivables (i) that are not subject to a perfected first-priority security  interest in favor of the Agent, or (ii) with respect to which a Borrower does not have good, valid and  marketable title thereto, free and clear of any Lien (other than Liens granted to the Agent pursuant to the  Security Documents);    (d) Credit Card Receivables which are disputed, are with recourse, or with respect to which  a claim, counterclaim, offset or chargeback has been asserted (to the extent of such claim, counterclaim,  offset or chargeback);    (e) Credit Card Receivables as to which the Credit Card Issuer or Credit Card Processor has  the right under certain circumstances to require a Loan Party to repurchase the Credit Card Receivables  from such Credit Card Issuer or Credit Card Processor;    (f) Credit Card Receivables due from a Credit Card Issuer or Credit Card Processor which  is the subject of any bankruptcy or insolvency proceedings;    (g) Credit Card Receivables which are not a valid, legally enforceable obligation of the  applicable Credit Card Issuer or Credit Card Processor with respect thereto;    (h) Credit Card Receivables which do not conform to all representations, warranties or  other provisions in the Loan Documents relating to Credit Card Receivables; or    (i) Credit Card Receivables which the Agent determines in its Permitted Discretion to be  uncertain of collection or which do not meet such other reasonable eligibility criteria for Credit Card  Receivables as the Agent may determine.    “Eligible In-Transit Inventory” means, as of any date of determination thereof, without  duplication of other Eligible Inventory, In-Transit Inventory:    (a) which has been shipped from a foreign location for receipt by a Borrower, but which  has not yet been delivered to such Borrower, which In-Transit Inventory has been in transit for forty-five  (45) days or less from the date of shipment of such Inventory;    (b) for which the purchase order is in the name of a Borrower and title and risk of loss has  passed to such Borrower;    (c) for which an Acceptable Document of Title has been issued, and in each case as to  which the Agent has control (as defined in the UCC) over the documents of title which evidence  ownership of the subject Inventory (and including, if requested by the Agent, the receipt by Agent of an  executed Freight Forwarder Agreement);  

 

20        Exhibit 10.2      (d) which is insured to the reasonable satisfaction of the Agent (including, without  limitation, pursuant to marine cargo insurance);    (e) the Foreign Vendor with respect to such In-Transit Inventory is an Approved Foreign  Vendor; and    (f) which otherwise would constitute Eligible Inventory;    Provided, that, the Agent may, in its Permitted Discretion, exclude any particular Inventory from  the definition of “Eligible In-Transit Inventory” in the event the Agent determines that such Inventory is  subject to any Person’s right of reclamation, repudiation, stoppage in transit or any event has occurred or  is reasonably anticipated by the Agent to arise which may otherwise adversely impact the ability of the  Agent to realize upon such Inventory.    “Eligible Inventory” means, as of the date of determination thereof, without duplication, items of  Inventory of a Borrower that are finished goods, merchantable and readily saleable to the public in the  ordinary course of such Borrower’s business or work-in-process consisting of sac liners and duffels and  in each case deemed by the Agent in its Permitted Discretion to be eligible for inclusion in the  calculation of the Borrowing Base, and except as otherwise agreed by the Agent, (A) complies with each  of the representations and warranties respecting Inventory made by the Borrowers in the Loan  Documents, and (B) is not excluded as ineligible by virtue of one or more of the criteria set forth below  as determined by the Agent in its Permitted Discretion. Except as otherwise agreed by the Agent, in its  Permitted Discretion, the following items of Inventory shall not be included in Eligible Inventory:    (a) Inventory that is not solely owned by a Borrower or a Borrower does not have good and  valid title thereto;    (b) Inventory that is leased by or is on consignment to a Borrower or which is consigned by  a Borrower to a Person which is not a Loan Party;    (c) Inventory (other than Eligible In-Transit Inventory) that is not located in the United  States of America (excluding territories or possessions of the United States);    (d) Inventory that is not located at a location that is owned or leased by a Borrower, except  (i) Inventory located in the United States of America that is in transit between such owned or leased  locations, including such Inventory in transit from a distribution center to a retail store, (ii) Eligible  In-Transit Inventory or (iii) Inventory on consignment at a location owned and operated by another  Person to the extent that the Borrowers have furnished the Agent with (A) any UCC financing statements  and other documents that the Agent may determine to be necessary to perfect its security interest in such  Inventory at such location or to establish the priority of its security interest with respect thereto, and (B) a  Collateral Access Agreement executed and delivered by the Person owning and operating any such  location on terms reasonably acceptable to the Agent (and in any event including a Collateral Access  Agreement by Amalgamate Processing, Inc.);    (e) Inventory that is located in a distribution center or warehouse leased by a Borrower  unless (i) the applicable lessor has delivered to the Agent a Collateral Access Agreement or (ii) a Reserve  based on amounts payable with respect to such location has been established by the Agent;    (f) Inventory that is comprised of goods which (i) are damaged, defective, “seconds,” or  otherwise unmerchantable, (ii) are to be returned to the vendor, (iii) are obsolete or slow moving, or  custom items, work-in-process, raw materials, or that constitute samples, spare parts, promotional,  

 

21        Exhibit 10.2      marketing, labels, bags and other packaging and shipping materials or supplies used or consumed in a  Borrower’s business, (iv) are seasonal in nature and which have been packed away for sale in the  subsequent season, (v) not in compliance with all standards imposed by any Governmental Authority  having regulatory authority over such Inventory, its use or sale, or (vi) are bill and hold goods;    (g) Inventory that is not subject to a perfected first-priority security interest in favor of the  Agent;    (h) Inventory that is not insured in compliance with the provisions of Section 5.10 hereof;    (i) Inventory that has been sold but not yet delivered or as to which a Borrower has  accepted a deposit (except in the case of Inventory as to which a Borrower has accepted a deposit, to the  extent that Reserves have been established in respect of such deposit);    (j) Inventory that is subject to any licensing, patent, royalty, trademark, trade name or  copyright agreement with any third party from which any Borrower or any of its Subsidiaries has  received notice of a dispute in respect of any such agreement; or    (k) Inventory acquired in a Permitted Acquisition or which is not of the type usually sold in  the ordinary course of the Borrowers’ business, unless and until the Agent has completed or received (i)  an appraisal of such Inventory from appraisers reasonably satisfactory to the Agent and establishes any  Reserves (if applicable) therefor, and otherwise agrees that such Inventory shall be deemed Eligible  Inventory, and (ii) such other due diligence as the Agent may require, all of the results of the foregoing to  be reasonably satisfactory to the Agent.    “Eligible Wholesale Receivables” means Accounts deemed by the Agent in its Permitted  Discretion to be eligible for inclusion in the calculation of the Borrowing Base arising from the sale of  the Inventory of a Borrower (other than Credit Card Receivables) that satisfies the criteria set forth  herein at the time of creation and continues to meet the same at the time of such determination, and in  each case is acceptable to the Agent in its Permitted Discretion, and is not ineligible for inclusion in the  calculation of the Borrowing Base pursuant to any of clauses (a) through (s) below as determined by the  Agent in its Permitted Discretion. Without limiting the foregoing, to qualify as an Eligible Wholesale  Receivable, an Account shall indicate no Person other than a Borrower as payee or remittance party. In  determining the amount to be so included, the face amount of an Account shall be reduced by, without  duplication, to the extent not reflected in such face amount, (i) the amount of all accrued and actual  discounts, claims, credits or credits pending, promotional program allowances, price adjustments, finance  charges or other allowances (including any amount that a Borrower may be obligated to rebate to a  customer pursuant to the terms of any agreement or understanding (written or oral)) and (ii) the aggregate  amount of all cash received in respect of such Account but not yet applied by the Borrowers to reduce the  amount of such Eligible Wholesale Receivable. Except as otherwise agreed by the Agent, any Account  included within any of the following categories shall not constitute an Eligible Wholesale Receivable:    (a) Accounts that are not evidenced by an invoice;    (b) Accounts that have been outstanding for more than thirty (30) days from the date of sale  or for such other period as the Agent may determine after the Closing Date, based on the receipt by the  Agent of satisfactory reporting of Accounts of Borrowers pursuant to a field examination with respect to  the Accounts of Borrowers after the Closing Date;    (c) Accounts due from any account debtor which is obligated on any accounts described in  clause (b) above;  

 

22        Exhibit 10.2      (d) Accounts owed by an account debtor and/or its Affiliates that together exceed ten  percent (10%) of the amount of all Accounts at any one time (except in the case of Accounts owed by  Summit Retail Solutions Inc. for which such percentage shall be higher as of the Closing Date and  thereafter, subject to reduction by the Agent from time to time upon notice to the Lead Borrower), but the  portion of the Accounts of an account debtor and/or its Affiliates not in excess of the applicable  percentage of the amount of all Accounts that otherwise constitute Eligible Wholesale Receivables shall  be deemed Eligible Wholesale Receivables;    (e) Accounts (i) that are not subject to a perfected first-priority security interest in favor of  the Agent, or (ii) with respect to which a Borrower does not have good, valid and marketable title thereto,  free and clear of any Lien (other than Liens granted to the Agent pursuant to the Security Documents);    (f) Accounts which are disputed or with respect to which a claim, counterclaim, offset or  chargeback has been asserted, but only to the extent of such dispute, counterclaim, offset or chargeback;    (g) Accounts which arise out of any sale made not in the ordinary course of business, made  on a basis other than upon credit terms usual to the business of the Borrowers or are not payable in  Dollars;    (h) Accounts which are owed by any account debtor whose principal place of business is  not within the continental United States;    (i) Accounts which are owed by any Affiliate or any employee of a Loan Party;    (j) Accounts for which all consents, approvals or authorizations of, or registrations or  declarations with any Governmental Authority required to be obtained, effected or given in connection  with the performance of such Account by the account debtor or in connection with the enforcement of  such Account by the Agent have been duly obtained, effected or given and are in full force and effect;    (k) Accounts due from an account debtor which is the subject of any bankruptcy or  insolvency proceeding, has had a trustee or receiver appointed for all or a substantial part of its property,  has made an assignment for the benefit of creditors or has suspended its business;    (l) Accounts due from any Governmental Authority except to the extent that the subject  account debtor is the federal government of the United States of America and has complied with the  Federal Assignment of Claims Act of 1940 and any similar state legislation;    (m) Accounts (i) owing from any Person that is also a supplier to or creditor of a Loan Party  or any of its Subsidiaries unless such Person has waived any right of setoff in a manner reasonably  acceptable to the Agent or (ii) representing any manufacturer’s or supplier’s credits, discounts, incentive  plans or similar arrangements entitling a Loan Party or any of its Subsidiaries to discounts on future  purchase therefrom;    (n) Accounts arising out of sales on a bill-and-hold, guaranteed sale, sale-or-return, sale on  approval or consignment basis or subject to any right of return, set off or charge back;    (o) Accounts arising out of sales to account debtors outside the United States unless such  Accounts are fully backed by an irrevocable letter of credit on terms, and issued by a financial institution,  acceptable to the Agent and such irrevocable letter of credit is in the possession of, and drawable by, the  Agent;  

 

23        Exhibit 10.2      (p) Accounts payable other than in Dollars or that are otherwise on terms other than those  normal and customary in the Loan Parties’ business;    (q) Accounts evidenced by a promissory note or other instrument;    (r) Accounts consisting of amounts due from vendors as rebates or allowances;    (s) Accounts which are in excess of the credit limit for such account debtor established by  the Loan Parties in the ordinary course of business and consistent with past practices;    (t) Accounts which include extended payment terms (datings) beyond those generally  furnished to other account debtors in the ordinary course of business;    (u) Accounts with respect to which the Account Debtor is a Sanctioned Person or  Sanctioned Entity; or    (v) Accounts which the Agent determines in its Permitted Discretion to be unacceptable for  borrowing.    “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, obligation, damage, loss, claim, action, suit,  judgment, order, fine, penalty, fee, expense, or cost, contingent or otherwise (including any liability for  damages, costs of environmental remediation, fines, penalties or indemnities), of any 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 or presence 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.    “Equipment” has the meaning set forth in the UCC.    “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.    “ERISA Affiliate” means any trade or business (whether or not incorporated) under common  control with any Loan Party 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 and 4971 of the Code).  

 

24        Exhibit 10.2      “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by  any Loan Party 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 any Loan Party or any ERISA Affiliate from a Multiemployer Plan or  notification to the Lead Borrower or any ERISA Affiliate that a Multiemployer Plan is in reorganization;  (d) the filing of a notice of intent to terminate, the treatment of a plan amendment as a termination of a  Pension Plan or a Multiemployer Plan under Sections 4041 or 4041A of ERISA, or the commencement  of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an 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 or Multiemployer Plan; (f) the imposition of any  liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section  4007 of ERISA, upon the Lead Borrower or any ERISA Affiliate; or (g) the determination that any  Pension Plan is considered to be an “at-risk” plan, or that any Multiemployer Plan is considered to be in  “endangered” or “critical” status within the meaning of Sections 430, 431 and 432 of the Code or  Sections 303, 304 or 305 of ERISA.    “Erroneous Payment” has the meaning specified therefor in Section 10.28(a).    “Erroneous Payment Deficiency Assignment” has the meaning specified therefor in Section  10.28.    “Erroneous Payment Impacted Loans” has the meaning specified therefor in Section 10.28(d).    “Erroneous Payment Return Deficiency” has the meaning specified therefor in Section 10.28(d).    “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.    “Event of Default” has the meaning specified in Section 8.01. An Event of Default shall be  deemed to be continuing unless and until that Event of Default has been cured or duly waived as  provided in Section 10.03 hereof.    “Excess Availability” means, as of any date of determination thereof by the Agent, the result of:  (a) the Loan Cap, minus (b) the aggregate unpaid balance of Credit Extensions.    “Excluded Accounts” means (a) Deposit Accounts that are specifically and exclusively used for  payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of any Loan  Party’s salaried employees, (b) Deposit Accounts that are specifically and exclusively used for paying  taxes, including sales taxes, (c) Deposit Accounts used for cash collateral pursuant to clauses (c) and (d)  of the definition “Permitted Encumbrances”, (d) Deposit Accounts for which the aggregate balance does  not exceed $150,000 at any time outstanding, and (e) Deposit Accounts that are zero balance accounts so  that no funds are maintained in such accounts for more than one (1) Business Day.    “Excluded Swap Obligation” means, with respect to any GuarantorLoan Party, any Swap  Obligation if, and to the extent that, all or a portion of the Guarantee of such GuarantorLoan Party of, or  the grant by such GuarantorLoan Party of a security interest to secure, such Swap Obligation (or any  Guarantee 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 and the regulations thereunder at the time the  

 

25        Exhibit 10.2      Guarantee of such GuarantorLoan Party or the grant of such security interest becomes effective with  respect to such Swap Obligation. If a Swap Obligation arises under a master agreement governing more  than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable  to swaps for which such Guarantee or security interest is or becomes illegal.    “Excluded Taxes” means, with respect to the Agent, any Lender, the L/C Issuer or any other  recipient of any payment to be made by or on account of any obligation of the Loan Parties hereunder, (a)  taxes imposed on or measured by its overall net income (however denominated), and franchise taxes, in  each case, (i) imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision  thereof) under the laws of which such recipient is organized or in which its principal office is located or,  in the case of any Lender, in which its applicable Lending Office is located or (ii) that are Other  Connection Taxes, (b) any branch profits taxes imposed by the United States or any similar tax imposed  by any other jurisdiction in which any Loan Party is located, (c) in the case of a Foreign Lender (other  than an assignee pursuant to a request by the Lead Borrower under Section 10.13), any withholding tax  that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a  party hereto (or designates a new Lending Office) or is attributable to such Foreign Lender’s failure or  inability (other than as a result of a Change in Law) to comply with Section 3.01(e), except to the extent  that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new  Lending Office (or assignment), to receive additional amounts from the Loan Parties with respect to such  withholding tax pursuant to Section 3.01(a), (d) any U.S. federal, state or local backup withholding tax,  and (e) any U.S. federal withholding tax imposed under FATCA.    “Executive Order” has the meaning set forthspecified in Section 10.18.    “Existing Credit Agreement” means the Loan and Security Agreement, dated as of May 14, 2014,  between Siena Lending Group LLC, as Lender, and SAC Acquisition LLC, as assumed by the Lead  Borrower and as amended from time to time prior to the date hereof.    “Extraordinary Receipt” means any cash received by or paid to or for the account of any Person  not in the ordinary course of business, including tax refunds, pension plan reversions, proceeds of  insurance (other than proceeds of business interruption insurance to the extent such proceeds constitute  compensation for lost earnings), condemnation awards (and payments in lieu thereof), indemnity  payments and any purchase price adjustments.    “Facility Guaranty” means the Guaranty made by the Guarantors in favor of the Agent and the  other Credit Parties, in form reasonably satisfactory to the Agent, as the same now exists or may  hereafter be executed, delivered, amended, modified, supplemented, renewed, restated or replaced.    “FATCA” means Sections 1471 through 1474 of the IRCCode, 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) and, any current or future regulations or official interpretations thereof, any agreements  entered into pursuant to Section 1471(b)(1) of the Code, and any fiscal or regulatory legislation, rules, or  practices adopted pursuant to any intergovernmental agreement, treaty or convention among  Governmental Authorities and implementing such Sections of the Code.    “Factored Receivables” means any Accounts originally owed or owing by a Loan Party to  another Person which have been purchased by or factored with Wells Fargo or any of its Affiliates  pursuant to a factoring arrangement or otherwise with the Person that sold the goods or rendered the  services to the Loan Party which gave rise to such Account.  

 

26        Exhibit 10.2      “Federal Funds Rate” means, for any dayperiod, thea fluctuating interest rate per annum equal to,  for each day during such period, the weighted average of the rates on overnight Federal funds  transactions with members of the Federal Reserve System arranged by Federal funds brokers on such  day, as published on the next succeeding Business Day by the Federal Reserve Bank of New York on the  Business Day next succeeding such day; provided that (a), or, if such dayrate is not a Business Day, the  Federal Funds Rateso published for suchany day shall be such rate on such transactions on the next  preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is  so published on such next succeedingwhich is a Business Day, the Federal Funds Rate for such day shall  be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Wells  Fargo onof the quotations for such day on such transactions as determinedreceived by the Agent from  three Federal funds brokers of recognized standing selected by the Agent (and, if any such rate is below  zero, then the rate determined pursuant to this definition shall be deemed to be zero for purposes of this  Agreement).        “Fee Letter” means the letter agreement, dated of even date herewith, among the Lead Borrower,  the Agent and the Arranger.Amendment No. 6 Fee Letter, as the same now exists or may hereafter be  amended, modified, supplemented, renewed, restated or replaced.    “Fiscal Month” means any fiscal month of any Fiscal Year, which month shall generally end on  the Sunday closest to the last day of each calendar month in accordance with the fiscal accounting  calendar of the Loan Parties.    “Fiscal Quarter” means any fiscal quarter of any Fiscal Year, which quarters shall generally end  on the Sunday closest to the last day of each of April, July, October and January of such Fiscal Year in  accordance with the fiscal accounting calendar of the Loan Parties.    “Fiscal Year” means any period of twelve (12) consecutive months ending on the Sunday closest  to January 31 of any calendar year.    “Floor” means a rate of interest equal to 0% .    “Foreign AssetAssets Control Regulations” has the meaning set forthspecified in Section 10.18.    “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction other than  that in which the Lead Borrower is resident for tax purposes. For purposes of this definition, the United  States, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction.    “Foreign Vendor” means a Person that sells In-Transit Inventory to a Borrower.    “Foreign Vendor Agreement” means an agreement between a Foreign Vendor and the Agent in  form and substance reasonably satisfactory to the Agent and pursuant to which, among other things, the  parties shall agree upon their relative rights with respect to In-Transit Inventory of a Borrower purchased  from such Foreign Vendor.  “FRB” means the Board of Governors of the Federal Reserve System of the United States.  “Freight Forwarder Agreement” means an agreement, in form and substance reasonably  satisfactory to Agent, among a Borrower, a Freight Forwarder or other carrier, and the Agent, in which  the Freight Forwarder acknowledges that it has control over and holds the documents evidencing  ownership of the subject Inventory for the benefit of the Agent and agrees, upon notice from the Agent,  

 

27        Exhibit 10.2      to hold and dispose of the subject Inventory solely as directed by the Agent and providing for such other  rights with respect thereto as Agent may reasonably require.    “Freight Forwarders” means the persons as may be selected by any Borrower who are reasonably  acceptable to the Agent to handle the receipt of Inventory within the United States of America and/or to  clear Inventory through the Bureau of Customs and Border Protection (formerly the Customs Service) or  other domestic or foreign export control authorities or otherwise perform port of entry services to process  Inventory imported by the Borrowers and the Guarantors from outside the United States of America; each  sometimes being referred to herein individually as a “Freight Forwarder”.    “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.    “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). 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.    “Guarantor” means the Parent and each Subsidiary of the ParentLead Borrower that shall be  required to execute and deliver a Facility Guaranty pursuant to Section 6.12.    “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.    “Increase Effective Date” shall have the meaning provided therefor in Section 2.15.  

 

28        Exhibit 10.2      “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) the maximum amount of 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;    (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 sixty (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) indebtedness of such Person (i) in respect of any Capital Lease Obligations 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 Obligations, the  capitalized amount of the remaining lease or similar payments under the relevant lease or other  applicable agreement or instrument that would appear on a balance sheet of such Person prepared as of  such date in accordance with GAAP if such lease, agreement or instrument were accounted for as a  capital lease;    (g) all obligations of such Person to purchase, redeem, retire, defease or otherwise make  any payment in respect of any Equity Interest in such Person or any other Person (including, without  limitation, Disqualified Stock, or any warrant, right or option to acquire such Equity Interest, 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 or limited liability  company) 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.    “Indemnified Taxes” means Taxes other than Excluded Taxes.  “IndemniteesIndemnitee” has the meaning specified in Section 10.04(b).  “Information” has the meaning specified in Section 10.07.    “Intellectual Property” means all present and future: trade secrets, know-how and other  proprietary information; trademarks, trademark applications, internet domain names, service marks, trade  dress, trade names, business names, designs, logos, slogans (and all translations, adaptations, derivations  

 

29        Exhibit 10.2      and combinations of the foregoing) indicia and other source and/or business identifiers, and all  registrations or applications for registrations which have heretofore been or may hereafter be issued  thereon throughout the world; copyrights and copyright applications; (including copyrights for computer  programs) and all tangible and intangible property embodying the copyrights, unpatented inventions  (whether or not patentable); patents and patent applications; industrial design applications and registered  industrial designs; license agreements related to any of the foregoing and income therefrom; books,  customer lists, records, writings, computer tapes or disks, flow diagrams, specification sheets, computer  software, source codes, object codes, executable code, data, databases and other physical manifestations,  embodiments or incorporations of any of the foregoing; all other intellectual property; and all common  law and other rights throughout the world in and to all of the foregoing.    “Intercreditor Provisions” has the meaning specified in Section 8.01(q).    “Intellectual Property Security Agreements” means the Trademark Security Agreement and  Patent Security Agreement, each dated as of the Closing Date, among the Loan Parties and the Agent,  granting a Lien in the Intellectual Property and certain other assets of the Loan Parties, as the same now  exists or may hereafter be amended, modified, supplemented, renewed, restated or replaced.    “Interest Payment Date” means, (a) as to any LIBO RateSOFR 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  LIBO RateSOFR 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 first day after the end of each month and the Maturity Date.    “Interest Period” means, as to each LIBO Rateany SOFR Loan, the period commencing on the  date such LIBO RateSOFR Loan is disbursed or converted to or continued as a LIBO RateSOFR Loan  and ending on the date one, two, or three months thereafter, as selected by the Lead Borrower in its LIBO  RateSOFR Loan Notice; provided that:    (a) interest shall accrue at the applicable rate based upon Term SOFR, from and including  the first day of each Interest Period to, but excluding, the day on which any Interest Period expires;    (b) (a) 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;    (c) (b) 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 suchthat is one or three  months after the date on which the Interest Period; began, as applicable,    (d) (c) no Interest Period shall extend beyond the Maturity Date; and    (d) notwithstanding the provisions of clause (c), no Interest Period shall have a duration of  less than one (1) month, and if any Interest Period applicable to a LIBO Borrowing would be for a shorter  period, such Interest Period shall not be available hereunder.    (e) no tenor that has been removed from this definition (and not reinstated) pursuant to  Section 3.03(b)(iv) shall be available for specification in any SOFR Loan Notice or conversion or  continuation notice.  

 

30        Exhibit 10.2      For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made  and thereafter shall be the effective date of the most recent conversion or continuation of such  Borrowing.    “Internal Control Event” means a material weakness in, or fraud that involves management or  other employees who have a significant role in, the ParentLead Borrower’s and/or its Subsidiaries’  internal controls over financial reporting, in each case as described in the Securities Laws (provided, that,  in the case of such a material weakness, if such weakness has been corrected, it shall cease to constitute  an Internal Control Event).    “In-Transit Inventory” means Inventory of a Borrower which is in the possession of a common  carrier and is in transit from a Foreign Vendor of a Borrower from a location outside of the continental  United States to a location of a Borrower that is within the continental United States.    “Inventory” has the meaning given that term in the UCC, and shall also include, without  limitation, all: (a) goods which (i) are leased by a Person as lessor, (ii) are held by a Person for sale or  lease or to be furnished under a contract of service, (iii) are furnished by a Person under a contract of  service, or (iv) consist of raw materials, work in process, or materials used or consumed in a business; (b)  goods of said description in transit; (c) goods of said description which are returned, repossessed or  rejected; and (d) packaging, advertising, and shipping materials related to any of the foregoing.    “Inventory Reserves” means such reserves as may be established from time to time by the Agent  in its Permitted Discretion with respect to the determination of the salability, at retail, of the Eligible  Inventory, which reflect such other factors as affect the market value of the Eligible Inventory or which  reflect claims and liabilities that the Agent determines will need to be satisfied in connection with the  realization upon such Inventory. Without limiting the generality of the foregoing, Inventory Reserves  may, in the Agent’s Permitted Discretion, include (but are not limited to) reserves based on: (a)  obsolescence; (b) seasonality; (c) Shrink; (d) imbalance; (e) change in Inventory character; (f) change in  Inventory composition; (g) change in Inventory mix; (h) markdowns (both permanent and point of sale);  (i) retail markdowns and markups inconsistent with prior period practice and performance, industry  standards, current business plans or advertising calendar and planned advertising events; and (j)  out-of-date and/or expired Inventory.    “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 Equity Interests 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 interest in, another Person, or (c) any Acquisition, or (d) any other  investment of money or capital in order to obtain a profitable return. 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.    “IRS” means the United States Internal Revenue Service.    “ISP” means, with respect to any Letter of Credit, the International Standby Practices 1998  (International Chamber of Commerce Publication No. 590) and any subsequent revision thereof adopted  by the International Chamber of Commerce on the date such Letter of Credit is issued.    “Issuer Documents” means with respect to any Letter of Credit, the Letter Credit Application, the  Standby Letter of Credit Agreement or Commercial Letter of Credit Agreement, as applicable, 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 any such Letter of Credit.  

 

31        Exhibit 10.2      “Joinder” means an agreement, in form reasonably satisfactory to the Agent pursuant to which,  among other things, a Person becomes a party to, and bound by the terms of, this Agreement and/or the  other Loan Documents in the same capacity and to the same extent as either a Borrower or a Guarantor,  as the Agent may determine.    “Landlord Lien State” means such state(s) in which a landlord’s claim for rent may have priority  over the Lien of the Agent in any of the Collateralapplicable.    “Laws” means each international, foreign, Federal, state and local statute, treaty, rule, guideline,  regulation, ordinance, code and administrative or judicial precedent or authority, including the  interpretation or administration thereof by any Governmental Authority charged with the enforcement,  interpretation or administration thereof, and each applicable administrative order, directed duty, request,  license, authorization and permit of, and agreement with, any Governmental Authority, in each case  whether or not having the force of law.    “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, or the renewal thereof.    “L/C Issuer” means Wells Fargo in its capacity as issuer of Letters of Credit hereunder, or any  successor issuer of Letters of Credit hereunder (which successor may only be a Lender selected by the  Agent and the Lead Borrower in itstheir discretion). The L/C Issuer may, in its discretion and with the  consent of the Lead Borrower, arrange for one or more Letters of Credit to be issued by Affiliates of the  L/C Issuer and/or for such Affiliate to act as an advising, transferring, confirming and/or nominated bank  in connection with the issuance or administration of any such Letter of Credit, in which case the term  “L/C Issuer” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate.    “L/C Obligations” means, as at any date of determination, the aggregate undrawn amount  available to be drawn under all outstanding Letters of Credit. For purposes of computing the amounts  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 any Rule under the ISP or any article of the UCP, such Letter of Credit shall be deemed to  be “outstanding” in the amount so remaining available to be drawn.    “Lead Borrower” has the meaning assigned to such termspecified in the preamble of this  Agreement.    “Lease” means any written agreement, whether written or oral, no matter how styled or  structured, pursuant to which a Loan Party is entitled to the use or occupancy of any space in a structure,  land, improvements or premises for any period of time.    “Lender” hasand “Lenders” have the meaningmeanings specified in the introductory paragraph  heretopreamble of this Agreement and, as the context requires, 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 Agent.    “Letter of Credit” means each Standby Letter of Credit and each Commercial Letter of Credit  issued hereunder.  

 

32        Exhibit 10.2      “Letter of Credit Application” means an application 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 Disbursement” means a payment made by the L/C Issuer pursuant to a Letter of  Credit.    “Letter of Credit Expiration Date” means the day that is seven (7) 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(l) .    “Letter of Credit Indemnified Costs” has the meaning specified in Section 2.03(f).  “Letter of Credit Related Person” has the meaning specified in Section 2.03(f).  “Letter of Credit Sublimit” means an amount equal to $500,0001,000,000. The Letter of Credit  Sublimit is part of, and not in addition to, the Aggregate Commitments. A permanent reduction of the  Aggregate Commitments shall not require a corresponding pro rata reduction in the Letter of Credit  Sublimit; provided, however, that if the Aggregate Commitments are reduced to an amount less than the  Letter of Credit Sublimit, then the Letter of Credit Sublimit shall be reduced to an amount equal to (or, at  the Lead Borrower’s option, less than) the Aggregate Commitments.    “LIBO Borrowing” means a Borrowing comprised of LIBO Rate Loans.    “LIBO Rate” means for any Interest Period with respect to a LIBO Rate Loan, the rate per annum  rate which appears on the Reuters Screen LIBOR01 page as of 11:00 a.m., London time, on the second  London Business Day preceding the first day of such Interest Period (or if such rate does not appear on  the Reuters Screen LIBOR01 Page, then the rate as determined by the Agent from another recognized  source or interbank quotation), for a term, and in an amount, comparable to the Interest Period and the  amount of the LIBO Rate Loan requested (whether as an initial LIBO Rate Loan or as a continuation of a  LIBO Rate Loan or as a conversion of a Base Rate Loan to a LIBO Rate Loan) by Borrowers in  accordance with this Agreement (and, if any such rate is below zero, the LIBO Rate shall be deemed to  be zero), which determination shall be made by Agent and shall be conclusive in the absence of manifest  error. If such rate is not available at such time for any reason, then the “LIBO Rate” for such Interest  Period shall be the rate per annum determined by the Agent to be the rate at which deposits in Dollars for  delivery on the first day of such Interest Period in same day funds in the approximate amount of the  LIBO Rate Loan being made, continued or converted by Wells Fargo and with a term equivalent to such  Interest Period would be offered to Wells Fargo by major banks in the London interbank eurodollar  market in which Wells Fargo participates at their request at approximately 11:00 a.m. (London time) two  (2) Business Days prior to the commencement of such Interest Period.    “LIBO Rate Loan” means a Committed Loan that bears interest at a rate based on the Adjusted  LIBO Rate.    “LIBO Rate Loan Notice” means a notice for a LIBO Borrowing or continuation pursuant to  Section 2.02(b), which shall be substantially in the form of Exhibit A.    “Lien” means (a) any mortgage, deed of trust, 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  

 

33        Exhibit 10.2      (including any conditional sale, Capital Lease Obligation, Synthetic Lease Obligation, 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) and (b) in the case  of securities, any purchase option, call or similar right of a third party with respect to such securities.    “Liquidation” means the exercise by the Agent of those rights and remedies accorded to the  Agent under the Loan Documents and applicable Law as a creditor of the Loan Parties with respect to the  realization on the Collateral, including (after the occurrence and during the continuation of an Event of  Default) the conduct by the Loan Parties acting with the consent of the Agent, of any public, private or  “going out of business”, “store closing”, or other similarly themed sale or other disposition of the  Collateral for the purpose of liquidating the Collateral. Derivations of the word “Liquidation” (such as  “Liquidate”) are used with like meaning in this Agreement.    “Loan” means an extension of credit by a Lender to the Borrowers under Article II in the form of  a Committed Loan or a Swing Line Loan.    “Loan Account” has the meaning assigned to such termspecified in Section 2.11(a).    “Loan Cap” means, at any time of determination, the lesser of (a) the Aggregate Commitments  or, and (b) the Borrowing Base.    “Loan Documents” means this Agreement, each Note, each Issuer Document, the Fee Letter, all  Borrowing Base Certificates, the Control Agreements, the Credit Card Notifications, the Security  Documents, the Facility Guaranty, each Request for Credit Extension, and any other instrument or  agreement now or hereafter executed and delivered in connection herewith, or in connection with any  transaction arising out of any Cash Management Services and Bank Products provided by the Agent or  any of its Affiliates, each as amended and in effect from time to time; provided that for purposes of the  definition of “Material Adverse Effect” and Article VII, the term “Loan Documents” shall not include  agreements relating to Cash Management Services andor Bank Products.    “Loan Parties” means, collectively, the Borrowers and the Guarantors.    “London Business Day” means a day on which commercial banks are open for general business  (including dealings in foreign exchange and foreign currency deposits) in London, England.    “Material Adverse Effect” means (a) a material adverse change in, or a material adverse effect  upon, the operations, business, properties, liabilities (actual or contingent), or financial condition of any  Loan Party and its Subsidiaries taken as a whole; (b) a material impairment of the ability of any Loan  Party to perform its obligations under any Loan Document to which it is a party; or (c) a material  impairment of the rights and remedies of the Agent or any Lender under any Loan Document or a  material adverse effect upon the legality, validity, binding effect or enforceability against any Loan Party  of any Loan Document to which it is a party. In determining whether any individual event would result  in a Material Adverse Effect, notwithstanding that such event in and of itself does not have such effect, a  Material Adverse Effect shall be deemed to have occurred if the cumulative effect of such event and all  other then existing events would result in a Material Adverse Effect.    “Material Contract” means, with respect to any Person, each contract to which such Person is a  party involving aggregate consideration payable to or by such Person of $500,0004,000,000 or more in  any Fiscal Year or otherwise material to the business, condition (financial or otherwise), operations,  performance, properties or prospects of such Person. Notwithstanding anything to the contrary in this  definition, purchase orders for equipment or inventory entered into in the ordinary course of business  shall not constitute a “Material Contract”.  

 

34        Exhibit 10.2      “Material Indebtedness” means Indebtedness (other than the Obligations) of the Loan Parties in  an aggregate principal amount exceeding $500,0004,000,000. For purposes of determining the amount of  Material Indebtedness at any time, (a) the amount of the obligations in respect of any Swap Contract at  such time shall be calculated at the Swap Termination Value thereof, (b) undrawn committed or available  amounts shall be included, and (c) all amounts owing to all creditors under any combined or syndicated  credit arrangement shall be included.    “Maturity Date” means February 6March 25, 20232024.    “Maximum Rate” has the meaning provided thereforspecified in Section 10.09.    “Monthly Average Excess Availability” means, at any time, the average of the aggregate amount  of Excess Availability for the immediately preceding Fiscal Month as calculated by the Agent.    “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 Lead 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.    “Net Proceeds” means, with respect to any Disposition by any Loan Party or any of its  Subsidiaries, or any Extraordinary Receipt received or paid to the account of any Loan Party or any of its  Subsidiaries, the excess, if any, of (i) the sum of cash and cash equivalents actually received by any Loan  Party in connection with such transaction (including any cash or cash equivalents received by way of  deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and  when so received) over (ii) the sum of (A) the principal amount of any Indebtedness that is secured by  the applicable asset by a Lien permitted hereunder which is senior to the Agent’s Lien on such asset and  that is required to be repaid (or to establish an escrow for the future repayment thereof) in connection  with such transaction (other than Indebtedness under the Loan Documents) and (B) the reasonable and  customary out-of-pocket expenses incurred by such Loan Party or such Subsidiary in connection with  such transaction (including, without limitation, appraisals, and brokerage, legal, title and recording or  transfer tax expenses and commissions) paid by any Loan Party to third parties (other than Affiliates)).    “Net Recovery Percentage” means the fraction, expressed as a percentage (a) the numerator of  which is the amount equal to the recovery on the aggregate amount of the applicable category of Eligible  Inventory at such time on a “net orderly liquidation value” basis as set forth in the most recent acceptable  inventory appraisal received by Agent in accordance with the requirements of this Agreement, net of  operating expenses, liquidation expenses and commissions reasonably anticipated in the disposition of  such assets and (b) the denominator of which is the original cost of the aggregate amount of the Eligible  Inventory subject to such appraisal.    “Non-Consenting Lender” has the meaning provided thereforspecified in Section 10.01.    “Non-Defaulting Lender” means each Lender other than a Defaulting Lender.    “Note” means (a) a promissory note made by the Borrowers in favor of a Lender evidencing  Committed Loans made by such Lender, substantially in the form of Exhibit C-1, and (b) the Swing Line  Note, as each may be amended, supplemented or modified from time to time. As of the Amendment No.  6 Effective Date, neither the Swing Line Lender nor any Lender has requested the issuance of any Note.    “NPL” means the National Priorities List under CERCLA.  

 

35        Exhibit 10.2      “Obligations” means (a) all advances to, and debts (including principal, interest, fees, costs, and  expenses), liabilities, obligations, covenants, indemnities, and duties of, any Loan Party arising under any  Loan Document or otherwise with respect to any Loan or Letter of Credit (including payments in respect  of reimbursement of disbursements, interest thereon and obligations to provide cash collateral therefor),  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, fees, costs, expenses and  indemnities 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 ,fees, costs, expenses and indemnities are allowed claims in such  proceeding, and (b) any Other Liabilities; provided, that, the Obligations shall not include any Excluded  Swap Obligations.  “OFAC” means the U.S. Department of Treasury Office of Foreign Assets Control.  “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 or limited liability company 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, and (d) in each case, all shareholder or  other equity holder agreements, voting trusts and similar arrangements to which such Person is.    “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 or which is  applicable to, performed its Equity Interests and all other arrangements relatingobligations under,  received payments under, received or perfected a security interest under, engaged in any other transaction  pursuant to the Control or management of such Personenforced any Loan Document, or sold or assigned  an interest in any Loan or Loan Document).    “Other Liabilities” means (a) any obligation on account of (i) any Cash Management Services  furnished to any of the Loan Parties or any of their Subsidiaries and/or (ii) any transaction with the Agent  or any of its Affiliates, which arises out of any Bank Product entered into with any Loan Party and any  such Person, as each may be amended from time to time.    “Other Taxes” means all present or future stamp, court or documentary taxes or any other excise  or property taxes, charges, intangible, recording, filing or similar levies arisingTaxes that arise from any  payment made hereunder or under any other Loan Document or, from the execution, delivery or,  performance, enforcement ofor registration of, from the receipt or perfection of a security interest under,  or otherwise with respect to, this Agreement or any other 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 10.13).    “Outstanding Amount” means (a) with respect to Committed 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 Committed Loans and Swing Line Loans, as the case may be, occurring on  such date; and (b) with respect to any L/C Obligations on any date, the amount of such L/C Obligations  on such date after giving effect to any L/C Credit Extension or any reimbursement of any drawing under  

 

36        Exhibit 10.2      any Letter of Credit, in each case, occurring on such date and any other changes in the aggregate amount  of the L/C Obligations as of such date.    “Overadvance” means a Credit Extension to the extent that, immediately after its having been  made, Excess Availability is less than zero.    “Parent” means SAC Acquisition LLC, a Delaware limited liability company.    “Participant” has the meaning specified in Section 10.06(d).  “Participant Register” has the meaning specified in Section 10.06(d).  “Patriot Act” shall have the meaning specified in Section 10.17.    “Payment Conditions” means with respect to any transaction or payment the following:    (a) as of the date of any such transaction or payment, and after giving effect thereto, no  Default or Event of Default shall exist or have occurred and be continuing,    (b) as of the date of any such transaction or payment, and after giving effect thereto, (i) in  the case of an Acquisition, Investment or other transaction or payment (other than a Restricted Payment),  on a pro forma basis, Excess Availability (using the most recent calculation of the Borrowing Base  immediately prior to any such transaction or payment) shall be not less than the greater of fiftyforty  percent (50.040.0%) of the Loan Cap or $7,500,000, or (ii) in the case of a Restricted Payment, on a pro  forma basis, Excess Availability (using the most recent calculation of the Borrowing Base immediately  prior to any such transaction or payment) shall be not less than the greater of fortythirty percent  (40.030.0%) of the Loan Cap or $6,000,000,    (c) receipt by Agent of projections for the nine (9) month period after the date of such  transaction or payment showing, on a pro forma basis after giving effect to such transaction or payment,  minimum Excess Availability at all times during such period of not less than the applicable amount under  clause (b) above, and    (d) the Agent shall have received a certificate of a Responsible Officer of Lead Borrower  certifying as to compliance with the preceding clauses and demonstrating (in reasonable detail) the  calculations required thereby.    “Payment Recipient” has the meaning specified therefor in Section 10.28(a).    “PBGC” means the Pension Benefit Guaranty Corporation.  “PCAOB” means the Public Company Accounting Oversight Board.  “Pension Plan” means any “employee pension benefit plan” (as such term is defined in Section  3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored  or maintained by the Lead Borrower or any ERISA Affiliate or to which the Lead Borrower or any  ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple employer or  other plan described in Section 4064(a) of ERISA, has made contributions at any time during the  immediately preceding five plan years.    “Permitted Acquisition” means an Acquisition in which all of the following conditions are  satisfied (or waived in accordance with Section 10.1):  

 

37        Exhibit 10.2      (a) such Acquisition shall have been approved by the Board of Directors of the Person (or  similar governing body if such Person is not a corporation) which is the subject of such Acquisition and  such Person shall not have announced that it will oppose such Acquisition or shall not have commenced  any action which alleges that such Acquisition shall violate applicable Law;    (b) the Lead Borrower shall have furnished the Agent with thirty (30) days’ (or such shorter  period as may be agreed by Agent) prior written notice of such intended Acquisition and shall have  furnished the Agent with a current draft of the acquisition documents (and final copies thereof as and  when executed and delivered), a summary of any due diligence undertaken by the Loan Parties in  connection with such Acquisition, appropriate financial statements of the Person which is the subject of  such Acquisition, pro forma projected financial statements for the twelve (12) month period following  such Acquisition after giving effect to such Acquisition (including balance sheets, cash flows and income  statements by month for the acquired Person, individually, and on a Consolidated basis with all Loan  Parties), and such other information as the Agent may reasonably require, all of which shall be  reasonably satisfactory to the Agent;    (c) either (i) the legal structure of the Acquisition shall be acceptable to the Agent in its  discretion, or (ii) the Loan Parties shall have provided the Agent with a favorable solvency opinion from  an unaffiliated third party valuation firm reasonably satisfactory to the Agent;    (d) after giving effect to the Acquisition, if the Acquisition is an Acquisition of the Equity  Interests, a Loan Party shall acquire and own, directly or indirectly, a majority of the Equity Interests in  the Person being acquired and shall Control a majority of any voting interests or shall otherwise Control  the governance of the Person being acquired;    (e) any assets acquired shall be utilized in, and if the Acquisition involves a merger,  consolidation or Acquisition of Equity Interests, the Person which is the subject of such Acquisition shall  be engaged in, a business otherwise permitted to be engaged in by a Borrower under this Agreement;    (f) if the Person which is the subject of such Acquisition will be maintained as a Subsidiary  of a Loan Party, or if the assets acquired in an acquisition will be transferred to a Subsidiary which is not  then a Loan Party, such Subsidiary shall have been joined as a “Borrower” hereunder or as a  “Guarantor,” as the Agent shall determine, and the Agent shall have received a first priority security  interest (subject to Permitted Encumbrances) in such Subsidiary’s Equity Interests, Inventory, Accounts  and other property of the same nature as constitutes collateral under the Security Documents;    (g) the total consideration paid for all such Acquisitions (whether in cash, tangible property,  notes or other property) after the Closing Date shall not exceed in the aggregate the sum of  $1,000,000[intentionally omitted]; and    (h) as of the date of any such Acquisition, and after giving effect thereto, each of the  Payment Conditions is satisfied.    “Permitted Discretion” means, as used in this Agreement and the other Loan Documents with  reference to the Agent, a determination made in good faith in the exercise of its reasonable business  judgment based on how an asset-based lender with similar rights providing a credit facility of the type set  forth herein would act in similar circumstances at the time with the information then available to it.    “Permitted Disposition” means any of the following:    (a) Dispositions of inventory in the ordinary course of business;  

 

38        Exhibit 10.2      (b) bulk sales of other Dispositions of the Inventory of a Loan Party not in the ordinary  course of business in connection with Store closings, at arm’s length, provided, that, (i) such Store  closures and related Dispositions of Inventory shall not exceed (A) in any Fiscal Year of the ParentLead  Borrower and its Subsidiaries, ten percent (10%) of the number of the Loan Parties’ Stores as of the  beginning of such Fiscal Year (net of new Store openings) and (B) in the aggregate from and after the  Closing Date, fifteen percent (15%) of the number of the Loan Parties’ Stores in existence as of the  Closing Date (net of new Store openings), (ii) all sales of Inventory in connection with Store closings  shall be in accordance with liquidation agreements and with professional liquidators reasonably  acceptable to the Agent, and (iii) all Net Proceeds received in connection therewith are applied to the  Obligations if then required in accordance with Section 2.05 hereof;    (c) non-exclusive licenses of Intellectual Property of a Loan Party or any of its Subsidiaries  in the ordinary course of business;    (d) licenses for the conduct of licensed departments within the Loan Parties’ Stores in the  ordinary course of business; provided, that, if requested by the Agent, the Agent shall have entered into  an intercreditor agreement with the Person operating such licensed department on terms and conditions  reasonably satisfactory to the Agent;    (e) Dispositions of Equipment in the ordinary course of business that is substantially worn,  damaged, obsolete or, in the judgment of a Loan Party, no longer useful or necessary in its business or  that of any Subsidiary and is not replaced with similar property having at least equivalent value;    (f) sales, transfers and Dispositions among the Loan Parties (other than to ParentLead  Borrower except as permitted as a Permitted Investment) or by any Subsidiary to a Loan Party; and    (g) sales, transfers and Dispositions by any Subsidiary which is not a Loan Party to another  Subsidiary that is not a Loan Party.; and    (h) other Dispositions for cash payable upon the consummation of such Disposition in an  aggregate amount not to exceed $2,000,000 during any Fiscal Year.    “Permitted Encumbrances” means:    (a) Liens imposed by law for Taxes that are not yet due or are being contested in  compliance with Section 6.04;    (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens  imposed by applicable Law, arising in the ordinary course of business and securing obligations that are  not overdue or are being contested in compliance with Section 6.04;    (c) pledges and deposits of cash or Cash Equivalents made in the ordinary course of  business in compliance with workers’ compensation, unemployment insurance and other social security  laws or regulations, other than any Lien imposed by ERISA;    (d) deposits of cash or Cash Equivalents to secure the performance of bids, trade contracts  and leases (other than Indebtedness), statutory obligations, surety and appeal bonds, performance bonds  and other obligations of a like nature incurred in the ordinary course of business;    (e) Liens in respect of judgments that would not constitute an Event of Default hereunder;  

 

39        Exhibit 10.2      (f) easements, covenants, conditions, restrictions, building code laws, zoning restrictions,  rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary  course of business that do not secure any monetary obligations and do not materially detract from the  value of the affected property or materially interfere with the ordinary conduct of business of a Loan  Party and such other minor title defects or survey matters that are disclosed by current surveys that, in  each case, do not materially interfere with the current use of the real property;    (g) Liens existing on the ClosingAmendment No. 6 Effective Date and listed on Schedule  7.01 and any Liens securing Indebtedness that is a Permitted Refinancing of the Indebtedness securing  such Liens existing on the ClosingAmendment No. 6 Effective Date and listed on such schedule;    (h) Liens on fixed or capital assets acquired by any Loan Party which are permitted under  clause (c) of the definition of Permitted Indebtedness so long as (i) such Liens and the Indebtedness  secured thereby are incurred prior to or within ninety (90) days after such acquisition, (ii) the  Indebtedness secured thereby does not exceed the cost of acquisition of such fixed or capital assets and  (iii) such Liens shall not extend to any other property or assets of the Loan Parties;    (i) Liens in favor of the Agent;    (j) (i) statutory Liens of landlords and lessors in respect of rent not in default, and (ii)  consensual liens of record filed by landlords, as secured parties, against Loan Parties, provided, that such  Lien (A) only secures rent and other charges in respect of that specific location, (B) [intentionally  omitted], and (C) the total amount of rent and other charges secured by all such Liens at any time does  not exceed $250,000 in the aggregate (for the avoidance of doubt, the Lien evidenced by UCC filing no.  2020 1233024 with the Delaware Secretary of State, in favor of Crossgates Mall General Company  Newco, LLC, as a landlord against Borrower, as a tenant, shall be included in the calculation made in  respect of clause (C) hereof);    (k) possessory Liens in favor of brokers and dealers arising in connection with the  acquisition or disposition of Investments owned as of the ClosingAmendment No. 6 Effective Date and  Permitted Investments, provided that such liens (a) attach only to such Investments and (b) secure only  obligations incurred in the ordinary course and arising in connection with the acquisition or disposition  of such Investments and not any obligation in connection with margin financing;    (l) Liens arising solely by virtue of any statutory or common law provisions relating to  banker’s liens, liens in favor of securities intermediaries, rights of setoff or similar rights and remedies as  to deposit accounts or securities accounts or other funds maintained with depository institutions or  securities intermediaries;    (m) Liens arising from precautionary UCC filings regarding “true” operating leases or, to  the extent permitted under the Loan Documents, the consignment of goods to a Loan Party;    (n) voluntary Liens on property (other than property of the type included in the Borrowing  Base) in existence at the time such property is acquired pursuant to a Permitted Acquisition or on such  property of a Subsidiary of a Loan Party in existence at the time such Subsidiary is acquired pursuant to a  Permitted Acquisition; provided, that, such Liens are not incurred in connection with or in anticipation of  such Permitted Acquisition and do not attach to any other assets of any Loan Party or any Subsidiary;    (o) Liens in favor of customs and revenues authorities imposed by applicable Law arising in  the ordinary course of business in connection with the importation of goods solely to the extent the  following conditions are satisfied: (i) such Liens secure obligations that are being contested in good faith  

 

40        Exhibit 10.2      by appropriate proceedings, (ii) the applicable Loan Party or Subsidiary has set aside on its books  adequate reserves with respect thereto in accordance with GAAP and (iii) such contest effectively  suspends collection of the contested obligation and enforcement of any Lien securing such obligation; or    (p) Liens securing Indebtedness (other than for borrowed money) permitted to be incurred  pursuant to clause (j) of the “Permitted Indebtedness” definition.    “Permitted Indebtedness” means each of the following as long as no Default or Event of Default  exists or would arise from the incurrence thereof:    (a) Indebtedness outstanding on the ClosingAmendment No. 6 Effective Date and listed on  Schedule 7.03 and any Permitted Refinancing thereof;    (b) Indebtedness of any Loan Party to any other Loan Party;    (c) purchase money Indebtedness of any Loan Party to finance the acquisition of any  personal property consisting solely of fixed or capital assets, including Capital Lease Obligations, and  any Indebtedness assumed in connection with the acquisition of any such assets or secured by a Lien on  any such assets prior to the acquisition thereof, and Permitted Refinancings thereof, provided, that, (i) the  aggregate principal amount of Indebtedness permitted by this clause (c) shall not exceed  $250,0002,000,000 at any time outstanding and (ii) if requested by the Agent, the Loan Parties shall,  subject to the terms of the applicable Lease, use commercially reasonable efforts to cause the holders of  such Indebtedness to enter into a Collateral Access Agreement on terms reasonably satisfactory to the  Agent;    (d) obligations (contingent or otherwise) of any Loan Party or any Subsidiary thereof  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 fluctuations in interest rates or foreign exchange rates, and not for purposes of  speculation or taking a “market view;” and (ii) the aggregate Swap Termination Value thereof shall not  exceed $100,0002,000,000 at any time outstanding;    (e) contingent liabilities under surety bonds or similar instruments incurred in the ordinary  course of business in connection with the construction or improvement of Stores;    (f) Indebtedness incurred for the construction or acquisition or improvement of, or to  finance or to refinance, any Real Estate owned by any Loan Party (including therein any Indebtedness  incurred in connection with sale-leaseback transactions permitted hereunder and any Synthetic Lease  Obligations), provided, that, (i) all Net Proceeds received in connection with any such Indebtedness are  applied to the Obligations, and (ii) the Loan Parties shall use commercially reasonable efforts to cause  the holders of such Indebtedness and the lessors under any sale-leaseback transaction, subject to the  terms of the applicable Lease, to enter into a Collateral Access Agreement on terms reasonably  satisfactory to the Agent;    (g) Indebtedness with respect to the deferred purchase price for any Permitted Acquisition,  provided, that, such Indebtedness does not require the payment in cash of principal (other than in respect  of working capital adjustments) prior to the Maturity Date, has a maturity which extends beyond the  Maturity Date, and is subordinated to the Obligations on terms reasonably acceptable to the Agent;    (h) Indebtedness of any Person that becomes a Subsidiary of a Loan Party in a Permitted  Acquisition, which Indebtedness is existing at the time such Person becomes a Subsidiary of a Loan  

 

41        Exhibit 10.2      Party (other than Indebtedness incurred solely in contemplation of such Person’s becoming a Subsidiary  of a Loan Party);    (i) the Obligations; and    (j) Indebtedness not otherwise specifically described herein in an aggregate principal  amount not to exceed $250,000 at any time outstanding.    “Permitted Investments” means each of the following as long as no Default or Event of Default  exists or would arise from the making of such Investment:    (a) Investments in cash and Cash Equivalents, provided, that, notwithstanding the  foregoing, no Investments in cash or Cash Equivalents or additional Investments in the form of cash or  Cash Equivalents in each case shall be permitted, except if no Loans are then outstanding and no Letters  of Credit are outstanding which have not been Cash Collateralized if then required to be Cash  Collateralized, except, that, notwithstanding that any Loans are outstanding (or such Letters of Credit), a  Loan Party may from time to time in the ordinary course of business consistent with its current practices  as of the date hereof make deposits of cash or other immediately available funds with proceeds of  Revolving Loans in operating demand Deposit Accounts used for disbursements to the extent required to  provide funds for amounts drawn or anticipated to be drawn shortly on such accounts and such funds  may be held in Cash Equivalents consisting of overnight investments until so drawn (so long as (i) such  funds and Cash Equivalents are not held more than two (2) Business Days from the date of the initial  deposit thereof) and there may be deposits of cash in Collection Accounts prior to the transfer thereof to  the Concentration Account and from the Concentration Account to the Agent Payment Account as  provided for herein and (ii) so long as such Investments are pledged to the Agent as additional collateral  for the Obligations pursuant to such agreements as may be reasonably required by the Agent);    (b) Investments existing on the ClosingAmendment No. 6 Effective Date, and set forth on  Schedule 7.02, but not any increase in the amount thereof or any other modification of the terms thereof;    (c) (i) Investments by any Loan Party and its Subsidiaries in their respective Subsidiaries  outstanding on the ClosingAmendment No. 6 Effective Date, (ii) additional Investments by any Loan  Party and its Subsidiaries in Loan Parties (other than the ParentLead Borrower), (iii) additional  Investments by Subsidiaries of the Loan Parties that are not Loan Parties in other Subsidiaries that are  not Loan Parties and (iv) additional Investments by the Loan Parties in Subsidiaries that are not Loan  Parties, provided, that, as of the date of any such Investment and after giving effect thereto, (A) the  aggregate amount of all such additional Investments subject to this clause (iv) shall not exceed  $250,0002,000,000 at any time outstanding and (B) each of the Payment Conditions is satisfied and in no  event shall any such Investment be made with any asset or property other than cash or Cash Equivalents;    (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 to the  extent reasonably necessary in order to prevent or limit loss;    (e) Guarantees constituting Permitted Indebtedness;    (f) Investments by any Loan Party in Swap Contracts entered into in the ordinary course of  business and for bona fide business (and not speculative purposes) to protect against fluctuations in  interest rates in respect of the Obligations;  

 

42        Exhibit 10.2      (g) Investments received in connection with the bankruptcy or reorganization of, or  settlement of delinquent accounts and disputes with, customers and suppliers, in each case in the ordinary  course of business;    (h) advances to officers, directors and employees of the Loan Parties and Subsidiaries in the  ordinary course of business in an amount not to exceed $75,000 to any individual at any time or in an  aggregate amount not to exceed $150,000 at any time outstanding, for travel, entertainment, relocation  and similar ordinary business purposes;    (i) Investments constituting Permitted Acquisitions;    (j) capital contributions made by any Loan Party to a Borrower; or    (k) other Investments (other than Acquisitions) not otherwise specifically described herein;  provided, that, as of the date of any such Investment and after giving effect thereto, (A) the aggregate  amount of all such additional Investments subject to this clause (k) shall not exceed $250,000 at any time  outstanding and (B) each of the Payment Conditions is satisfied and in no event shall any such  Investment be made with any asset or property other than cash or Cash Equivalents.    “Permitted Overadvance” means an Overadvance made by the Agent, in its Permitted Discretion,  which:    (a) is made to maintain, protect or preserve the Collateral and/or the Credit Parties’ rights  under the Loan Documents or which is otherwise for the benefit of the Credit Parties; or    (b) is made to enhance the likelihood of, or to maximize the amount of, repayment of any  Obligation; or    (c) is made to pay any other amount chargeable to any Loan Party hereunder; and    (d) together with all other Permitted Overadvances then outstanding, shall not (i) exceed ten  percent (10%) of the Borrowing Base at any time or (ii) unless a Liquidation is occurring, remain  outstanding for more than forty-five (45) consecutive Business Days, unless in each case, the Required  Lenders otherwise agree.    provided, that, the foregoing shall not (i) modify or abrogate any of the provisions of Section 2.03  regarding the Lenders’ obligations with respect to Letters of Credit or Section 2.04 regarding the  Lenders’ obligations with respect to Swing Line Loans, or (ii) result in any claim or liability against the  Agent (regardless of the amount of any Overadvance) for Unintentional Overadvances and such  Unintentional Overadvances shall not reduce the amount of Permitted Overadvances allowed hereunder,  and further provided further that in no event shall the Agent make an Overadvance, if after giving effect  thereto, the principal amount of the Credit Extensions would exceed the Aggregate Commitments (as in  effect prior to any termination of the Commitments pursuant to Section 2.06 or Section 8.02 hereof).    “Permitted Refinancing” means, with respect to any Person, any Indebtedness issued in exchange  for, or the net proceeds of which are used to extend, refinance, renew, replace, defease or refund  (collectively, to “Refinance”), the Indebtedness being Refinanced (or previous refinancings thereof  constituting a Permitted Refinancing); provided, that, (a) the principal amount (or accreted value, if  applicable) of such Permitted Refinancing does not exceed the principal amount (or accreted value, if  applicable) of the Indebtedness so Refinanced (plus unpaid accrued interest and premiums thereon and  underwriting discounts, defeasance costs, fees, commissions and expenses), (b) the weighted average life  

 

43        Exhibit 10.2      to maturity of such Permitted Refinancing is greater than or equal to the weighted average life to maturity  of the Indebtedness being Refinanced (c) such Permitted Refinancing shall not require any scheduled  principal payments due prior to the Maturity Date in excess of, or prior to, the scheduled principal  payments due prior to such Maturity Date for the Indebtedness being Refinanced, (d) if the Indebtedness  being Refinanced is subordinated in right of payment to the Obligations under this Agreement, such  Permitted Refinancing shall be subordinated in right of payment to such Obligations on terms at least as  favorable to the Credit Parties as those contained in the documentation governing the Indebtedness being  Refinanced (e) no Permitted Refinancing shall have direct or indirect obligors who were not also obligors  of the Indebtedness being Refinanced, or greater guarantees or security, than the Indebtedness being  Refinanced, (f) such Permitted Refinancing shall be otherwise on terms not materially less favorable to  the Credit Parties than those contained in the documentation governing the Indebtedness being  Refinanced, including, without limitation, with respect to financial and other covenants and events of  default, (g) the interest rate applicable to any such Permitted Refinancing shall not exceed the then  applicable market interest rate, and (h) at the time thereof, no Default or Event of Default shall have  occurred and be continuing.  “Person” means any natural person, corporation, limited liability company, trust, joint venture,  association, company, partnership, limited partnership, Governmental Authority or other entity.    “Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA)  established by any Loan Party or, with respect to any such plan that is subject to Section 412 of the Code  or Title IV of ERISA, any ERISA Affiliate, other than a Multiemployer Plan.    “Platform” has the meaning specified in Section 6.02.  “Portal” has the meaning specified in Section 2.02.  “Public Lender” has the meaning specified in Section 6.02.      “Qualifying IPO” means the issuance by Parent of its Securities in an underwritten primary  public offering (other than a public offering pursuant to a registration statement on Form S-8) pursuant to  an effective registration statement filed with the U.S. Securities and Exchange Commission (or any  successor thereto) in accordance with the Securities Act (whether alone or in connection with a  secondary public offering).    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).    “QFC Credit Support” has the meaning specified in Section 10.27.    “Qualified ECP Guarantor” means, in respect of any Swap Obligation, each Loan Party that has  total assets exceeding $10,000,000 at the time the relevant Guarantee or grant of the relevant security  interest becomes effective with respect to such Swap Obligation or such other person as constitutes an  “eligible contract participant” under the Commodity Exchange Act or any regulations promulgated  thereunder and can cause another person to qualify as an “eligible contract participant” at such time by  entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.    “Quarterly Average Excess Availability” means, with respect to any Fiscal Quarter, the sum of  the aggregate amount of Excess Availability for each day in such period (as calculated by the Agent as of  the end of each respective day) divided by the number of days in such period.  

 

44        Exhibit 10.2      “Real Estate” means all Leases and all land, together with the buildings, structures, parking  areas, and other improvements thereon, now or hereafter owned by any Loan Party, including all  easements, rights-of-way, and similar rights relating thereto and all leases, tenancies, and occupancies  thereof.    “Receivables Reserves” means such Reserves as may be established from time to time by the  Agent in the Agent’s Permitted Discretion with respect to the determination of the collectability in the  ordinary course of Eligible Wholesale Receivables, including, without limitation, on account of dilution.    “Register” has the meaning specified in Section 10.06(c).    “Registered Public Accounting Firm” has the meaning specified by the Securities Laws and shall  be independent of the ParentLead Borrower and its Subsidiaries as prescribed by the Securities Laws.    “Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners,  directors, officers, employees, agents and advisors of such Person and of such Person’s Affiliates.    “Relevant Governmental Body” means the FRB or the Federal Reserve Bank of New York, or a  committee officially endorsed or convened by the FRB or the Federal Reserve Bank of New York, or any  successor thereto.    “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.    “Reports” has the meaning providedspecified in Section 9.12(b).    “Request for Credit Extension” means (a) with respect to a Committed Borrowing, conversion or  continuation of Committed Loans, an electronic notice via the Portal or LIBO Ratea SOFR Loan Notice,  (b) with respect to an L/C Credit Extension, a Letter of Credit Application and, if required by the L/C  Issuer, a Standby Letter of Credit Agreement or Commercial Letter of Credit Agreement, as applicable,  and (c) with respect to a Swing Line Loan, a Swing Line Loan Notice.    “Required Lenders” means, as of any date of determination, at least two Lenders holding more  than fifty percent (50%) of the Aggregate Commitments or, 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, at least two Lenders holding in the aggregate more than fifty percent (50%) of the Total  Outstandings (with the aggregate amount of each Lender’s risk participation and funded participation in  L/C Obligations and Swing Line Loans being deemed “held” by such Lender for purposes of this  definition); provided, that, (i) the Commitment of, and the portion of the Total Outstandings held or  deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of  Required Lenders, and (ii) if there are two or more Lenders, Required Lenders shall require at least two  (2) non-affiliated Lenders.    “Reserves” means all Receivables Reserves, Inventory Reserves and Availability Reserves. To  the extent that such Reserve is in respect of amounts that may be payable to third parties, the Agent may,  at its option, deduct such Reserve from the amount equal to the Aggregate Commitments, at any time that  the Aggregate Commitments are less than the amount of the Borrowing Base.    “Resolution Authority” means an EEA Resolution Authority or, with respect to any UK  Financial Institution, a UK Resolution Authority.  

 

45        Exhibit 10.2      “Responsible Officer” means the chief executive officer, president, chief financial officer,  treasurer or assistant treasurer of a Loan Party or any of the other individuals designated in writing to the  Agent by an existing Responsible Officer of a Loan Party as an authorized signatory of any certificate or  other document to be delivered hereunder. 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.    “Restricted Payment” means any dividend or other distribution (whether in cash, securities or  other property) with respect to any capital stock or other Equity Interest of any Person or any of its  Subsidiaries, or any payment (whether in cash, securities or other property), including any sinking fund  or similar deposit, on account of the purchase, redemption, retirement, defeasance, acquisition,  cancellation or termination of any such capital stock or other Equity Interest, or on account of any return  of capital to such Person’s stockholders, partners or members (or the equivalent of any thereof), or any  option, warrant or other right to acquire any such dividend or other distribution or payment. Without  limiting the foregoing, “Restricted Payments” with respect to any Person shall also include all payments  made by such Person with any proceeds of a dissolution or liquidation of such Person.    “Reuters Screen LIBOR01 Page” means the display page LIBOR01 on the Reuters service or any  successor display page, other published source, information vendor or provider that has been designated  by the sponsor of Reuters Screen LIBOR01 page.    “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,  Inc. and any successor thereto.    “Sanctioned Entity” means (a) a country or a government of a country, (b) an agency of the  government of a country, (c) an organization directly or indirectly controlled by a country or its  government, or (d) a Person resident in or determined to be resident in a country, in each case of clauses  (a) through (d) that is a target of Sanctions, including a target of any country sanctions program  administered and enforced by OFAC.    “Sanctioned Person” means, at any time, (a) any a Person named on the list of Specially  Designated Nationals and Blocked Persons maintained by OFAC, or any other Sanctions-related list  maintained by any relevant Sanctions authority, (b) a Person or legal entity that is a target of Sanctions,  (c) any Person operating, organized or resident in a Sanctioned Entity, or (d) any Person directly or  indirectly owned or controlled (individually or in the aggregate) by or acting on behalf of any such  Person or Persons described in clauses (a) through (c) above.    “Sanctions” means individually and collectively, respectively, any and all economic, trade,  financial or other sanctions laws, regulations or embargoes imposed, administered or enforced from time  to time by: (a) the United States of America, including, without limitation, those administered by OFAC  or the U.S. Department of State, (b) the United Nations Security Council, (c) the European Union or any  European Union member state, or (d) Her Majesty’s Treasury of the United Kingdom, or (e) any other  governmental authority in any jurisdiction in which any Loan Party or any of its Subsidiaries is located or  doing business.    “Sarbanes-Oxley” means the Sarbanes-Oxley Act of 2002.    “SEC” means the Securities and Exchange Commission, or any Governmental Authority  succeeding to any of its principal functions.    “Securities Account” has the meaning given to such term in the UCC.  

 

46        Exhibit 10.2      “Securities Laws” means the Securities Act of 1933, the Securities Exchange Act of 1934,  Sarbanes-Oxley, and the applicable accounting and auditing principles, rules, standards and practices  promulgated, approved or incorporated by the SEC or the PCAOB.    “Security Agreement” means the Security Agreement dated as of the Closing Date among the  Loan Parties and the Agent, as the same now exists or may hereafter be amended, modified,  supplemented, renewed, restated or replaced.    “Security Documents” means the Security Agreement, the Intellectual Property Security  AgreementAgreements, the Control Agreements, the Credit Card Notifications, and each other security  agreement or other instrument or document executed and delivered to the Agent pursuant to this  Agreement or any other Loan Document granting a Lien to secure any of the Obligations.    “Settlement Date” has the meaning provided in Section 2.14(a).    “Shareholders’ Equity” means, as of any date of determination, consolidated shareholders’ equity  of the Lead Borrower and its Subsidiaries as of that date determined in accordance with GAAP.    “Shrink” means Inventory which has been lost, misplaced, stolen, or is otherwise unaccounted  for.    “SOFR” means a rate equal to the secured overnight financing rate as administered by the SOFR  Administrator.    “SOFR Administrator” means the Federal Reserve Bank of New York (or a successor  administrator of the secured overnight financing rate).    “SOFR Borrowing” means a Borrowing comprised of SOFR Loans.    “SOFR Loan” means a Committed Loan that bears interest at a rate determined by reference to  Term SOFR (other than pursuant to clause (c) of the definition of “Base Rate”).    “SOFR Loan Notice” means a notice for a SOFR Borrowing or continuation or conversion  pursuant to Section 2.02(b), which shall be substantially in the form of Exhibit A-1.    “Solvent” and “Solvency” means, with respect to any Person as of any date of determination, that  (a) at fair valuations, the sum of such Person’s debts (including contingent liabilities) is less than all of  such Person’s assets, (b) such Person is not engaged or about to engage in a business or transaction for  which the remaining assets of such Person are unreasonably small in relation to the business or  transaction or for which the property remaining with such Person is an unreasonably small capital, and  (c) such Person has not incurred and does not intend to incur, or reasonably believe that it will incur,  debts beyond its ability to pay such debts as they become due (whether at maturity or otherwise), and (d)  such Person is “solvent” or not “insolvent”, as applicable within the meaning given those terms and  similar terms under applicable laws relating to fraudulent transfers and conveyances. For purposes of  this definition, the amount of any contingent liability at any time shall be computed as the amount that, in  light of all of the facts and circumstances existing at such time, represents the amount that can reasonably  be expected to become an actual or matured liability (irrespective of whether such contingent liabilities  meet the criteria for accrual under Statement of Financial Accounting Standard No. 5).    “Sponsor” means, collectively, (a) Mistral SAC Holdings, LLC, (b) Satori Capital, LLC, Satori  Capital Strategic Opportunities, LP and Satori Capital III, LP and (c) any Controlled Investment Affiliate  of either of the Persons set forth in clauses (a) or (b) of this definition.  

 

47        Exhibit 10.2      “Sponsor Management Agreement” means (a) the Amended and Restated Monitoring and  Management Agreement, effective as of the Amendment No. 1 Effective Date, between Lead Borrower  (as successor to Parent) and Mistral Capital Management, LLC, and (b) the letter agreement, dated  March 30, 2017, by and among Lead Borrower, Satori Capital, LLC, Satori Capital Strategic  Opportunities, LP and Satori Capital III, LP, as amended pursuant to the letter agreement, dated June 22,  2018.    “Standard Letter of Credit Practice” means, for the L/C Issuer, any domestic or foreign Law or  letter of credit practices applicable in the city in which the L/C Issuer issued the applicable Letter of  Credit or, for its branch or correspondent, such Laws and practices applicable in the city in which it has  advised, confirmed or negotiated such Letter of Credit, as the case may be, in each case, (a) which letter  of credit practices are of banks that regularly issue letters of credit in the particular city, and (b) which  laws or letter of credit practices are required or permitted under ISP or UCP, as chosen in the applicable  Letter of Credit.    “Standby Letter of Credit” means any Letter of Credit that is not a Commercial Letter of Credit  and that (a) is used in lieu or in support of performance guaranties or performance, surety or similar  bonds (excluding appeal bonds) arising in the ordinary course of business, (b) is used in lieu or in support  of stay or appeal bonds, (c) supports the payment of insurance premiums for reasonably necessary  casualty insurance carried by any of the Loan Parties, or (d) supports payment or performance for  identified purchases or exchanges of products or services in the ordinary course of business.    “Standby Letter of Credit Agreement” means the Standby Letter of Credit Agreementstandby  letter of credit agreement relating to the issuance of a Standby Letter of Credit in substantially the form  from time to time in use by the L/C Issuer.    “Stated Amount” means at any time the maximum amount for which a Letter of Credit may be  honored.    “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is  the number one and the denominator of which is the number one minus the aggregate of the maximum  reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as  a decimal established by the FRB to which the Agent is subject with respect to the Adjusted LIBO Rate,  for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the  Board). Such reserve percentages shall include those imposed pursuant to such Regulation D. LIBO Rate  Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements  without benefit of or credit for proration, exemptions or offsets that may be available from time to time to  any Lender under such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be  adjusted automatically on and as of the effective date of any change in any reserve percentage.    “Store” means any retail store or showroom (which may include any real property, fixtures,  equipment, inventory and other property related thereto) operated, or to be operated, by any Loan Party.    “Subordinated Indebtedness” means Indebtedness which is expressly subordinated in right of  payment to the prior payment in full of the Obligations (other than contingent indemnification  obligations for which a claim has not been asserted) and which is in form and on terms approved in  writing by the Agent.    “Subordination Provisions” has the meaning specified in Section 8.01(q).  

 

48        Exhibit 10.2      “Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability  company or other business entity of which a majority of the Equity Interests having ordinary voting  power for the election of directors or other governing body are at the time beneficially owned, or the  management of which is otherwise controlled, directly, or indirectly through one or more intermediaries,  or both, by such Person. Unless otherwise specified, all references herein to a “Subsidiary” or to  “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of a Loan Party.    “Supported QFC” has the meaning specified in Section 10.27.    “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 Obligation” means, with respect to any GuarantorLoan Party, 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 Borrowing” means a borrowing of a Swing Line Loan pursuant to Section 2.04.  “Swing Line Lender” means Wells Fargo, 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.    “Swing Line Note” means the promissory note of the Borrowers substantially in the form of  Exhibit C-2, payable to the order of the Swing Line Lender, evidencing the Swing Line Loans made by  the Swing Line Lender.  

 

49        Exhibit 10.2      “Swing Line Sublimit” means an amount equal to the lesser of (a) $2,500,0004,000,000 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 (including sale and leaseback transactions), in each case, creating obligations that do not appear  on the balance sheet of such Person but which, upon the application of any Debtor Relief Laws to 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,  assessments, fees or other charges imposed by any Governmental Authority, including any interest,  additions to tax or penalties applicable thereto.    “Term SOFR” means,    (a) for any calculation with respect to a SOFR Loan, the Term SOFR Reference  Rate for a tenor comparable to the applicable Interest Period on the day (such day, the “Periodic Term  SOFR Determination Day”) that is two (2) U.S. Government Securities Business Days prior to the first  day of such Interest Period, as such rate is published by the Term SOFR Administrator; provided,  however, that if as of 5:00 p.m. (New York City time) on any Periodic Term SOFR Determination Day  the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR  Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has  not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the  Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which  such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long  as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S.  Government Securities Business Days prior to such Periodic Term SOFR Determination Day, and    (b) for any calculation with respect to a Base Rate Loan on any day, the Term SOFR  Reference Rate for a tenor of one month on the day (such day, the “Base Rate Term SOFR Determination  Day”) that is two (2) U.S. Government Securities Business Days prior to such day, as such rate is  published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. (New York City  time) on any Base Rate Term SOFR Determination Day the Term SOFR Reference Rate for the  applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement  Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term  SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first  preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for  such tenor was published by the Term SOFR Administrator so long as such first preceding U.S.  Government Securities Business Day is not more than three (3) U.S. Government Securities Business  Days prior to such Base Rate Term SOFR Determination Day;    provided, further, that if Term SOFR determined as provided above (including pursuant to the proviso  under clause (a) or clause (b) above) shall ever be less than the Floor, then Term SOFR shall be deemed to  be the Floor.    “Term SOFR Administrator” means CME Group Benchmark Administration Limited (CBA) (or  a successor administrator of the Term SOFR Reference Rate selected by the Agent in its reasonable  discretion).    “Term SOFR Reference Rate” means the forward-looking term rate based on SOFR.  

 

50        Exhibit 10.2      “Termination Date” means the earliest to occur of (a) the Maturity Date, (b) the date on which  the maturity of the Obligations is accelerated (or deemed accelerated) and the Commitments are  irrevocably terminated (or deemed terminated) in accordance with Article VIII, or (c) the termination of  the Commitments in accordance with the provisions of Section 2.06(a) hereof.    “Total Outstandings” means the aggregate Outstanding Amount of all Loans and all L/C  Obligations.    “Trading with the Enemy Act” has the meaning set forthspecified in Section 10.18.    “Type” means, with respect to a Committed Loan, its character as a Base Rate Loan or a LIBO  RateSOFR Loan.    “UCC” or “Uniform Commercial Code” means the Uniform Commercial Code as in effect from  time to time in the State of New York; provided, that, (a) if a term is defined in Article 9 of the Uniform  Commercial Code differently than in another Article thereof, the term shall have the meaning set forth in  Article 9; (b) if by reason of mandatory provisions of law, perfection, or the effect of perfection or  non-perfection, of a security interest in any Collateral or the availability of any remedy hereunder is  governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New  York “Uniform Commercial Code” means the Uniform Commercial Code as in effect in such other  jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or  non-perfection or availability of such remedy, as the case may be.    “UCP” means, with respect to any Letter of Credit, the Uniform Customs and Practice for  Documentary Credits 2007 Revision, International Chamber of Commerce Publication No. 600 and any  subsequent revision thereof adopted by the International Chamber of Commerce on the date such Letter  of Credit is issued.    “UFCA” has the meaning specified in Section 10.22(d).  “UFTA” has the meaning specified in Section 10.22(d).  “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 falling within 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.    “Unadjusted Benchmark Replacement” means the applicable Benchmark Replacement excluding  the related Benchmark Replacement Adjustment.    “Unfunded Pension Liability” means the excess of a Pension Plan’s benefit liabilities under  Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets, determined in  accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of the Code  for the applicable plan year.    “Unintentional Overadvance” means an Overadvance which, to the Agent’s knowledge, did not  constitute an Overadvance when made but which has become an Overadvance resulting from changed  

 

51        Exhibit 10.2      circumstances beyond the control of the Credit Parties, including, without limitation, a reduction in the  appraised value of property or assets included in the Borrowing Base, increase in Reserves or  misrepresentation by the Loan Parties.    “United States” and “U.S.” mean the United States of America.    “U.S. Government Securities Business Day” means any day except for (i) a Saturday, (ii) a  Sunday or (iii) a day on which the Securities Industry and Financial Markets Association, or any  successor thereto, recommends that the fixed income departments of its members be closed for the entire  day for purposes of trading in United States government securities; provided, that for purposes of notice  requirements in Section 2.02(b), such day is also a Business Day.    “U.S. Special Resolution Regimes” has the meaning specified in Section 10.27.    “UVTA” has the meaning specified in Section 10.22(d).    “Wells Fargo” means Wells Fargo Bank, National Association and its successors.    “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,  amended and restated, supplemented or otherwise modified (subject to any restrictions on such  amendments, amendments and restatements, 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.  

 

52        Exhibit 10.2      (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) Any reference herein or in any other Loan Document to the satisfaction, repayment, or  payment in full of the Obligations shall mean the repayment in Dollars in full in cash or immediately  available funds (or, in the case of contingent reimbursement obligations with respect to Letters of Credit  and Bank Products (other than Swap Contracts) and any other contingent Obligation, including  indemnification obligations, providing Cash Collateralization) or other collateral as may be requested by  the Agent of all of the Obligations (including the payment of any termination amount then applicable (or  which would or could become applicable as a result of the repayment of the other Obligations) under  Swap Contracts) other than (i) unasserted contingent indemnification Obligations, (ii) any Obligations  relating to Bank Products (other than Swap Contracts) that, at such time, are allowed by the applicable  Bank Product provider to remain outstanding without being required to be repaid or Cash Collateralized  or other collateral as may be requested by the Agent, and (iii) any Obligations relating to Swap Contracts  that, at such time, are allowed by the applicable provider of such Swap Contracts to remain outstanding  without being required to be repaid.    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.    (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 either the Lead Borrower or the  Required Lenders shall so request, the Agent, the Lenders and the Lead 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); 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 Lead Borrower shall provide to the 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; provided, further that all obligations of any Person that are or would have been  treated as operating leases for purposes of GAAP prior to the effectiveness of FASB ASC 842 shall  continue to be accounted for as operating leases for all purposes of this Agreement, including, without  limitation, for purposes of all financial definitions and calculations hereunder (whether or not such  operating lease obligations were in effect on such date) notwithstanding the fact that such obligations are  required in accordance with FASB ASC 842 (on a prospective or retroactive basis or otherwise) to be  treated as Capital Lease Obligations in the financial statements.    1.04 Rounding. Any financial ratios required to be maintained by the Borrowers 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).  

 

53        Exhibit 10.2      1.05 Times of Day. Unless otherwise specified, all references herein to times of day shall be  references to Eastern time (daylight or standard, as applicable).    1.06 Letter of Credit Amounts. Unless otherwise specified, all references herein to the  amount of a Letter of Credit at any time shall be deemed to be 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 of  any Issuer Documents 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 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 Divisions. For all purposes under the Loan Documents, in connection with any division or  plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if  any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a  different Person, then it shall be deemed to have been transferred from the original Person to the subsequent  Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been  organized on the first date of its existence by the holders of its Equity Interests at such time.    1.08 Rates. The Agent does not warrant or accept any responsibility for, and shall not have  any liability with respect to, (a) the continuation of, administration of, submission of, calculation of or  any other matter related to the Term SOFR Reference Rate, Term SOFR or any other Benchmark, any  component definition thereof or rates referred to in the definition thereof, or with respect to any  alternative, successor or replacement rate thereto (including any then-current Benchmark or any  Benchmark Replacement), including whether the composition or characteristics of any such alternative,  successor or replacement rate (including any Benchmark Replacement), as it may or may not be adjusted  pursuant to Section 3.03(b), will be similar to, or produce the same value or economic equivalence of, or  have the same volume or liquidity as, the Term SOFR Reference Rate, Term SOFR or any other  Benchmark, prior to its discontinuance or unavailability, or (b) the effect, implementation or composition  of any Conforming Changes. The Agent and its affiliates or other related entities may engage in  transactions that affect the calculation of the Term SOFR Reference Rate, Term SOFR, any alternative,  successor or replacement rate (including any Benchmark Replacement) or any relevant adjustments  thereto and such transactions may be adverse to a Borrower. The Agent may select information sources  or services in its reasonable discretion to ascertain the Term SOFR Reference Rate or Term SOFR, or  any other Benchmark, any component definition thereof or rates referred to in the definition thereof, in  each case pursuant to the terms of this Agreement, and shall have no liability to any Borrower, any  Lender or any other Person for damages of any kind, including direct or indirect, special, punitive,  incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and  whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided  by any such information source or service.    ARTICLE II  THE COMMITMENTS AND CREDIT EXTENSIONS    2.01 Committed Loans; Reserves.    (a) Subject to the terms and conditions set forth herein, each Lender severally agrees to  make loans (each such loan, a “Committed Loan”) to the Borrowers from time to time, on any Business  Day during the Availability Period, in an aggregate principal amount not to exceed at any time  outstanding the lesser of (x) the amount of such Lender’s Commitment, or (y) such Lender’s Applicable  Percentage of the Borrowing Base; subject in each case to the following limitations:  

 

54        Exhibit 10.2      (i) after giving effect to any Committed Borrowing, the Total Outstandings shall  not exceed the Loan Cap,    (ii) after giving effect to any Committed Borrowing, the aggregate Outstanding  Amount of the Committed Loans of any Lender, plus such Lender’s Applicable Percentage of the  Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable Percentage of the  Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s Commitment, and    (iii) the Outstanding Amount of all L/C Obligations shall not at any time exceed the  Letter of Credit Sublimit    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. Committed Loans may be Base Rate Loans or LIBO RateSOFR Loans, as further provided  herein.    (b) The Reserves as of the Closing Date are set forth in the Borrowing Base Certificate  delivered pursuant to Section 4.01(c) hereof.    (c) The Agent shall have the right, at any time and from time to time after the Closing Date  in its Permitted Discretion to establish, modify or eliminate Reserves. The Agent will provide notice to  Lead Borrower of any new categories of Reserves that may be established after the Closing Date or any  changes in the methodology of the calculation of an existing category of Reserves and will be available  to consult with the Lead Borrower in connection with the basis for such new categories of Reserves to  the extent the Lead Borrower requests in a reasonably timely manner, provided, that, no such notice shall  be required at any time a Default or an Event of Default exists or has occurred and is continuing, or a  change solely as a result of mathematical calculations. Without limitation of the rights of Agent under  Section 2.01(c) of the Credit Agreement to establish, modify or eliminate Reserves, on and after the  Amendment No. 5 Effective Date, the Availability Reserve based on the amount of the deposits made by  customers with respect to the purchase of goods or the performance of services and layaway obligations  of the Borrowers shall be 50% of such amount, provided, that, (a) if at any time the amount equal to (i)  the unrestricted cash of the Borrowers based on the most recent financial statements of the Borrowers, or  at the Agent’s option, such other more current reports of such amounts as the Agent may receive, minus  (ii) the amount of the then outstanding Obligations is less than $10,000,000, the Agent may increase the  amount of such Availability Reserve up to 100% of the amount of such deposits (or such lesser amount  as the Agent may determine, but without limitation of the right of the Agent from time to time thereafter  to increase it) and (b) if at any time a Default or Event of Default exists or has occurred and is  continuing, the Agent may increase the amount of such Availability Reserve up to 100% of the amount of  such deposits (or such lesser amount as Agent may determine, but without limitation of the right of Agent  from time to time thereafter to increase it). Without limitation of any other rights of the Agent, the  Borrowers shall provide to the Agent such information with respect to the unrestricted cash of the  Borrowers from time to time promptly upon the request of the Agent.    2.02 Borrowings, Conversions and Continuations of Committed Loans.    (a) Committed Loans (other than Swing Line Loans) shall be either Base Rate Loans or  LIBO RateSOFR Loans as the Lead Borrower may request subject to and in accordance with this Section  2.02. All Swing Line Loans shall be only Base Rate Loans. Subject to the other provisions of this  Section 2.02, Committed Borrowings of more than one Type may be incurred at the same time.  

 

55        Exhibit 10.2      (b) Each request for a Committed Borrowing consisting of a Base Rate Loan shall be made  by electronic request of the Lead Borrower through the Agent’s Commercial Electronic Office Portal or  through such other electronic portal provided by the Agent (the “Portal”), which must be received by the  Agent not later than 2:00 p.m. on the requested date of any Borrowing of Base Rate Loans. The  Borrowers hereby acknowledge and agree that any request made through the Portal shall be deemed  made by a Responsible Officer of the Borrowers. Each request for a Committed Borrowing consisting of  a LIBO RateSOFR Loan shall be made pursuant to the Lead Borrower’s submission of a LIBO  RateSOFR Loan Notice, which must be received by the Agent not later than 11:00 a.m. three (3) U.S.  Government Securities Business Days prior to the requested date of any Borrowing or continuation of  LIBO RateSOFR Loans, provided, that, notwithstanding anything to the contrary contained herein,  except as Agent may expressly otherwise agree in writing, the request for the initial Committed Loan or  Swing Line Loan shall be received not less than five (5) Business Days prior to the date that such Loan is  made. Each LIBO RateSOFR Loan Notice shall specify (i) the requested date of the Borrowing or  continuation, as the case may be (which shall be a Business Day), (ii) the principal amount of LIBO  RateSOFR Loans to be borrowed or continued (which shall be in a principal amount of $500,000 or a  whole multiple of $100,000 in excess thereof), and (iii) the duration of the Interest Period with respect  thereto. If the Lead Borrower fails to specify an Interest Period, it will be deemed to have specified an  Interest Period of one month. On the requested date of any LIBO Rate Loan, (i) in the event that Base  Rate Loans are outstanding in an amount equal to or greater than the requested LIBO Rate Loan, all or a  portion of such Base Rate Loans shall be automatically converted to a LIBO Rate Loan in the amount  requested by the Lead Borrower, and (ii) if Base Rate Loans are not outstanding in an amount at least  equal to the requested LIBO Rate Loan, the Lead Borrower shall make an electronic request via the  Portal for additional Base Rate Loans in an such amount, when taken with the outstanding Base Rate  Loans (which shall be converted automatically at such time), as is necessary to satisfy the requested  LIBO Rate Loan. If the Lead Borrower fails to make such additional request via the Portal as required  pursuant to clause (ii) of the foregoing sentence, then the Borrowers shall be responsible for all amounts  due pursuant to Section 3.05 hereof arising on account of such failure. If the Lead Borrower fails to give  a timely notice with respect to any continuation of a LIBO RateSOFR Loan, then the applicable  Committed Loans shall be converted to Base Rate Loans, effective as of the last day of the Interest  Period then in effect with respect to the applicable LIBO RateSOFR Loans. All requests for a Base Rate  Loan which are not made by electronic request of the Lead Borrower through the Portal shall be subject  to (and unless the Agent elects otherwise in the exercise of its sole discretion, such Base Rate Loan shall  not be made until the completion of) the Agent’s authentication process (with results satisfactory to the  Agent) prior to the funding of any such requested Committed Loan.    (c) The Agent shall promptly notify each Lender of the amount of its Applicable Percentage  of the applicable Committed Loans, and if no timely notice of a conversion or continuation is provided  by the Lead Borrower, the Agent shall notify each Lender of the details of any automatic conversion to  Base Rate Loans described in Section 2.02(b). In the case of a Committed Borrowing, each Lender shall  make the amount of its Committed Loan available to the Agent in immediately available funds at the  Agent’s Office not later than 1:00 p.m. on the Business Day specified in the applicable 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 Agent shall use reasonable efforts to make all funds so received  available to the Borrowers in like funds by no later than 4:00 p.m. on the day of receipt by the Agent  either by (i) crediting the account of the Lead Borrower on the books of Wells Fargo 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 Agent by the Lead Borrower.    (d) The Agent, without the request of the Lead Borrower, may advance any interest, fee,  service charge (including direct wire fees), Credit Party Expenses, or other payment to which any Credit  Party is entitled from the Loan Parties pursuant hereto or any other Loan Document and may charge the  

 

56        Exhibit 10.2      same to the Loan Account notwithstanding that an Overadvance may result thereby. The Agent shall  advise the Lead Borrower of any such advance or charge promptly after the making thereof. Such action  on the part of the Agent shall not constitute a waiver of the Agent’s rights and the Borrowers’ obligations  under Section 2.05(c). Any amount which is added to the principal balance of the Loan Account as  provided in this Section 2.02(d) shall bear interest at the interest rate then and thereafter applicable to  Base Rate Loans.    (e) Except as otherwise provided herein, a LIBO RateSOFR Loan may be continued or  converted only on the last day of an Interest Period for such LIBO RateSOFR Loan. During the  existence of a Default or an Event of Default, no Loans may be requested as, converted to or continued as  LIBO RateSOFR Loans without the Consent of the Required Lenders.    (f) The Agent shall promptly notify the Lead Borrower and the Lenders of the interest rate  applicable to any Interest Period for LIBO RateSOFR Loans upon determination of such interest rate. At  any time that Base Rate Loans are outstanding, the Agent shall notify the Lead Borrower and the Lenders  of any change in Wells Fargo’s prime rate used in determining the Base Rate promptly following the  public announcement of such change.    (g) After giving effect to all Committed Borrowings, all conversions of Committed Loans  from one Type to the other, and all continuations of Committed Loans as the same Type, there shall not  be more than five (5) Interest Periods in effect with respect to LIBO RateSOFR Loans.    (h) The Agent, the Lenders, the Swing Line Lender and the L/C Issuer shall have no  obligation to make any Loan or to provide any Letter of Credit if an Overadvance would result. The  Agent may, in its Permitted Discretion, make Permitted Overadvances without the consent of the  Borrowers, the Lenders, the Swing Line Lender andor the L/C Issuer and the Borrowers and each Lender  and L/C Issuer shall be bound thereby. Any Permitted Overadvance may constitute a Swing Line Loan.  A Permitted Overadvance is for the account of the Borrowers and shall constitute a Base Rate Loan and  an Obligation and shall be repaid by the Borrowers in accordance with the provisions of Section 2.05(c).  The making of any such Permitted Overadvance on any one occasion shall not obligate the Agent or any  Lender to make or permit any Permitted Overadvance on any other occasion or to permit such Permitted  Overadvances to remain outstanding. The making by the Agent of a Permitted Overadvance shall not  modify or abrogate any of the provisions of Section 2.03 regarding the Lenders’ obligations to purchase  participations with respect to LetterLetters of CreditsCredit or of Section 2.04 regarding the Lenders’  obligations to purchase participations with respect to Swing Line Loans. The Agent shall have no  liability for, and no Loan Party or Credit Party shall have the right to, or shall, bring any claim of any  kind whatsoever against the Agent with respect to Unintentional Overadvances regardless of the amount  of any such Overadvance(s).    2.03 Letters of Credit.    (a) Subject to the terms and conditions of this Agreement, upon the request of the Lead  Borrower made in accordance herewith, and prior to the Maturity Date, the L/C Issuer agrees to issue a  requested Letter of Credit for the account of the Loan Parties. By submitting a request to the L/C Issuer  for the issuance of a Letter of Credit, the Borrowers shall be deemed to have requested that the L/C  Issuer issue the requested Letter of Credit. Each request for the issuance of a Letter of Credit, or the  amendment, renewal, or extension of any outstanding Letter of Credit, shall be irrevocable and shall be  made in writing pursuant to a Letter of Credit Application by a Responsible Officer and delivered to the  L/C Issuer and the Agent via telefacsimile or other electronic method of transmission reasonably  acceptable to the L/C Issuer not later than 11:00 a.m. at least two (2) Business Days (or such other date  and time as the Agent and the L/C Issuer may agree in a particular instance in their sole discretion) prior  

 

57        Exhibit 10.2      to the requested date of issuance, amendment, renewal, or extension, except that the initial request for the  issuance of a Letter of Credit hereunder shall be not less than five (5) Business Days prior to the  requested date of issuance. Each such request shall be in form and substance reasonably satisfactory to  the L/C Issuer and (i) shall specify (A) the amount of such Letter of Credit, (B) the date of issuance,  amendment, renewal, or extension of such Letter of Credit, (C) the proposed expiration date of such  Letter of Credit, (D) the name and address of the beneficiary of the Letter of Credit, and (E) such other  information (including, the conditions to drawing, and, in the case of an amendment, renewal, or  extension, identification of the Letter of Credit to be so amended, renewed, or extended) as shall be  necessary to prepare, amend, renew, or extend such Letter of Credit, and (ii) shall be accompanied by  such Issuer Documents as the Agent or the L/C Issuer may request or require, to the extent that such  requests or requirements are consistent with the Issuer Documents that the L/C Issuer generally requests  for Letters of Credit in similar circumstances. The Agent’s records of the content of any such request  will be conclusive absent manifest error.    (b) The L/C Issuer shall have no obligation to issue a Letter of Credit if, after giving effect  to the requested issuance, (i) the Total Outstandings would exceed the Loan Cap, (ii) the aggregate  Outstanding Amount of the Committed Loans of any Lender, plus such Lender’s Applicable Percentage  of the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable Percentage of the  Outstanding Amount of all Swing Line Loans would exceed such Lender’s Commitment, or (iii) the  Outstanding Amount of the L/C Obligations would exceed the Letter of Credit Sublimit;    (c) In the event there is a Defaulting Lender as of the date of any request for the issuance of  a Letter of Credit, the L/C Issuer shall not be required to issue or arrange for such Letter of Credit to the  extent (i) the Defaulting Lender’s participation with respect to such Letter of Credit may not be  reallocated pursuant to Section 9.16(b), or (ii) the L/C Issuer has not otherwise entered into arrangements  reasonably satisfactory to it and the Borrowers to eliminate the L/C Issuer’s risk with respect to the  participation in such Letter of Credit of the Defaulting Lender, which arrangements may include the  Borrowers cash collateralizing such Defaulting Lender’s participation with respect to such Letter of  Credit in accordance with Section 9.16(b). Additionally, the L/C Issuer shall have no obligation to issue  and/or extend a 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 (B) the issuance of such Letter of Credit would violate one or more policies of the L/C  Issuer applicable to letters of credit generally, or (C) if the expiry date of such requested Letter of Credit  would occur after the Letter of Credit Expiration Date, unless either such Letter of Credit is Cash  Collateralized on or prior to the date of issuance of such Letter of Credit (or such later date as to which  the Agent may agree) or all the Lenders have approved such expiry date.    (d) Any L/C Issuer (other than Wells Fargo or any of its Affiliates) shall notify the Agent in  writing no later than the Business Day immediately following the Business Day on which such L/C Issuer  issued any Letter of Credit; provided, that, (i) until the Agent advises any such L/C Issuer that the  provisions of Section 4.02 are not satisfied (or waived in accordance with Section 10.1), or (ii) unless the  aggregate amount of the Letters of Credit issued in any such week exceeds such amount as shall be  agreed by the Agent and such L/C Issuer, such L/C Issuer shall be required to so notify the Agent in  writing only once each week of the Letters of Credit issued by such L/C Issuer during the immediately  preceding week as well as the daily amounts outstanding for the prior week, such notice to be furnished  on such day of the week as the Agent and such L/C Issuer may agree. Each Letter of Credit shall be in  form and substance reasonably acceptable to the L/C Issuer, including the requirement that the amounts  payable thereunder must be payable in Dollars. If the L/C Issuer makes a payment under a Letter of  

 

58        Exhibit 10.2      Credit, the Borrowers shall pay to Agent an amount equal to the applicable Letter of Credit Disbursement  on the Business Day such Letter of Credit Disbursement is made and, in the absence of such payment, the  amount of the Letter of Credit Disbursement immediately and automatically shall be deemed to be a  Committed Loan hereunder (notwithstanding any failure to satisfy or waive any condition precedent set  forth in Section 4.02 hereof) and, initially, shall bear interest at the rate then applicable to Committed  Loans that are Base Rate Loans. If a Letter of Credit Disbursement is deemed to be a Committed Loan  hereunder, the Borrowers’ obligation to pay the amount of such Letter of Credit Disbursement to the L/C  Issuer shall be automatically converted into an obligation to pay the resulting Committed Loan. Promptly  following receipt by the Agent of any payment from the Borrowers pursuant to this paragraph, the Agent  shall distribute such payment to the L/C Issuer or, to the extent that the Lenders have made payments  pursuant to Section 2.03(e) to reimburse the L/C Issuer, then to such Lenders and the L/C Issuer as their  interests may appear.    (e) Promptly following receipt of a notice of a Letter of Credit Disbursement pursuant to  Section 2.03(d), each Lender agrees to fund its Applicable Percentage of any Committed Loan deemed  made pursuant to Section 2.03(d) on the same terms and conditions as if the Borrowers had requested the  amount thereof as a Committed Loan and the Agent shall promptly pay to the L/C Issuer the amounts so  received by it from the Lenders. By the issuance of a Letter of Credit (or an amendment, renewal, or  extension of a Letter of Credit) and without any further action on the part of the L/C Issuer or the  Lenders, the L/C Issuer shall be deemed to have granted to each Lender, and each Lender shall be  deemed to have purchased, a participation in each Letter of Credit issued by the L/C Issuer, in an amount  equal to its Applicable Percentage of such Letter of Credit, and each such Lender agrees to pay to the  Agent, for the account of the L/C Issuer, such Lender’s Applicable Percentage of any Letter of Credit  Disbursement made by the L/C Issuer under the applicable Letter of Credit. In consideration and in  furtherance of the foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the  Agent, for the account of the L/C Issuer, such Lender’s Applicable Percentage of each Letter of Credit  Disbursement made by the L/C Issuer and not reimbursed by Borrowers on the date due as provided in  Section 2.03(d), or of any reimbursement payment that is required to be refunded (or that the Agent or  the L/C Issuer elects, based upon the advice of counsel, to refund) to the Borrowers for any reason. Each  Lender acknowledges and agrees that its obligation to deliver to the Agent, for the account of the L/C  Issuer, an amount equal to its respective Applicable Percentage of each Letter of Credit Disbursement  pursuant to this Section 2.03(e) shall be absolute and unconditional and such remittance shall be made  notwithstanding the occurrence or continuation of a Default or Event of Default or the failure to satisfy  or waive any condition set forth in Section 4.02 hereof. If any such Lender fails to make available to the  Agent the amount of such Lender’s Applicable Percentage of a Letter of Credit Disbursement as  provided in this Section, such Lender shall be deemed to be a Defaulting Lender and the Agent (for the  account of the L/C Issuer) shall be entitled to recover such amount on demand from such Lender together  with interest thereon at the Defaulting Lender Rate until paid in full.    (f) Each Borrower agrees to indemnify, defend and hold harmless each Credit Party  (including the L/C Issuer and its branches, Affiliates, and correspondents) and each such Person’s  respective directors, officers, employees, attorneys and agents (each, including the L/C Issuer, a “Letter  of Credit Related Person”) (to the fullest extent permitted by Law) from and against any and all claims,  demands, suits, actions, investigations, proceedings, liabilities, fines, reasonable and documented  out-of-pocket costs, penalties, and damages, and all reasonable and documented out-of-pocket fees and  disbursements of attorneys, experts, or consultants and all other reasonable and documented  out-of-pocket costs and expenses actually incurred in connection therewith or in connection with the  enforcement of this indemnification (as and when they are incurred and irrespective of whether suit is  brought), which may be incurred by or awarded against any such Letter of Credit Related Person (other  than Taxes, which shall be governed by Section 3.01) (the “Letter of Credit Indemnified Costs”), and  which arise out of or in connection with, or as a result of:  

 

59        Exhibit 10.2      (i) any Letter of Credit or any pre-advice of its issuance;    (ii) any transfer, sale, delivery, surrender or endorsement of any Drawing  Document at any time(s) held by any such Letter of Credit Related Person in connection with any Letter  of Credit;    (iii) any action or proceeding arising out of, or in connection with, any Letter of  Credit (whether administrative, judicial or in connection with arbitration), including any action or  proceeding to compel or restrain any presentation or payment under any Letter of Credit, or for the  wrongful dishonor of, or honoring a presentation under, any Letter of Credit;    (iv) any independent undertakings issued by the beneficiary of any Letter of Credit;    (v) any unauthorized instruction or request made to the L/C Issuer in connection  with any Letter of Credit or requested Letter of Credit or error in computer or electronic transmission;    (vi) an adviser, confirmer or other nominated person seeking to be reimbursed,  indemnified or compensated;    (vii) any third party seeking to enforce the rights of an applicant, beneficiary,  nominated person, transferee, assignee of Letter of Credit proceeds or holder of an instrument or  document;    (viii) the fraud, forgery or illegal action of parties other than the Letter of Credit  Related Person;    (ix) the L/C Issuer’s performance of the obligations of a confirming institution or  entity that wrongfully dishonors a confirmation; or    (x) the acts or omissions, whether rightful or wrongful, of any present or future de  jure or de facto governmental or regulatory authority or cause or event beyond the control of the Letter of  Credit Related Person;    in each case, including that resulting from the Letter of Credit Related Person’s own negligence;  provided, that, such indemnity shall not be available to any Letter of Credit Related Person claiming  indemnification under clauses (i) through (x) above to the extent that such Letter of Credit Indemnified  Costs may be finally determined in a final, non-appealable judgment of a court of competent jurisdiction  to have resulted directly from the gross negligence or willful misconduct of the Letter of Credit Related  Person claiming indemnity. The Borrowers hereby agree to pay the Letter of Credit Related Person  claiming indemnity on demand from time to time all amounts owing under this Section 2.03(f). If and to  the extent that the obligations of the Borrowers under this Section 2.03(f) are unenforceable for any  reason, the Borrowers agree to make the maximum contribution to the Letter of Credit Indemnified Costs  permissible under applicable Law. This indemnification provision shall survive termination of this  Agreement and all Letters of Credit.    (g) The liability of the L/C Issuer (or any other Letter of Credit Related Person) under, in  connection with or arising out of any Letter of Credit (or pre-advice), regardless of the form or legal  grounds of the action or proceeding, shall be limited to direct damages suffered by the Borrowers that are  caused directly by the L/C Issuer’s gross negligence or willful misconduct in (i) honoring a presentation  under a Letter of Credit that on its face does not at least substantially comply with the terms and  conditions of such Letter of Credit, (ii) failing to honor a presentation under a Letter of Credit that  

 

60        Exhibit 10.2      strictly complies with the terms and conditions of such Letter of Credit or (iii) retaining Drawing  Documents presented under a Letter of Credit. The L/C Issuer shall be deemed to have acted with due  diligence and reasonable care if the L/C Issuer’s conduct is in accordance with Standard Letter of Credit  Practice or in accordance with this Agreement. The Borrowers’ aggregate remedies against the L/C  Issuer and any Letter of Credit Related Person for wrongfully honoring a presentation under any Letter of  Credit or wrongfully retaining honored Drawing Documents shall in no event exceed the aggregate  amount paid by the Borrowers to the L/C Issuer in respect of the honored presentation in connection with  such Letter of Credit under Section 2.03(d), plus interest at the rate then applicable to Base Rate Loans  hereunder. The Borrowers shall take action to avoid and mitigate the amount of any damages claimed  against the L/C Issuer or any other Letter of Credit Related Person, including by enforcing its rights  against the beneficiaries of the Letters of Credit. Any claim by the Borrowers under or in connection  with any Letter of Credit shall be reduced by an amount equal to the sum of (x) the amount (if any) saved  by the Borrowers as a result of the breach or alleged wrongful conduct complained of; and (y) the amount  (if any) of the loss that would have been avoided had the Borrowers taken all reasonable steps to mitigate  any loss, and in case of a claim of wrongful dishonor, by specifically and timely authorizing the L/C  Issuer to effect a cure.    (h) The Borrowers shall be responsible for preparing or approving the final text of the  Letter of Credit as issued by the L/C Issuer, irrespective of any assistance the L/C Issuer may provide  such as drafting or recommending text or by the L/C Issuer’s use or refusal to use text submitted by the  Borrowers. The Borrowers are solely responsible for the suitability of the Letter of Credit for the  Borrowers’ purposes. With respect to any Letter of Credit containing an “automatic amendment” to  extend the expiration date of such Letter of Credit, the L/C Issuer, in its sole and absolute discretion, may  give notice of nonrenewal of such Letter of Credit and, if the Borrowers do not at any time want such  Letter of Credit to be renewed, the Borrowers will so notify the Agent and the L/C Issuer at least 15  calendar days before the L/C Issuer is required to notify the beneficiary of such Letter of Credit or any  advising bank of such nonrenewal pursuant to the terms of such Letter of Credit.    (i) The Borrowers’ reimbursement and payment obligations under this Section 2.03 are  absolute, unconditional and irrevocable and shall be performed strictly in accordance with the terms of  this Agreement under any and all circumstances whatsoever, including:    (i) any lack of validity, enforceability or legal effect of any Letter of Credit or this  Agreement or any term or provision therein or herein;    (ii) payment against presentation of any draft, demand or claim for payment under  any Drawing Document that does not comply in whole or in part with the terms of the applicable Letter  of Credit or which proves to be fraudulent, forged or invalid in any respect or any statement therein being  untrue or inaccurate in any respect, or which is signed, issued or presented by a Person or a transferee of  such Person purporting to be a successor or transferee of the beneficiary of such Letter of Credit;    (iii) the L/C Issuer or any of its branches or Affiliates being the beneficiary of any  Letter of Credit;    (iv) the L/C Issuer or any correspondent honoring a drawing against a Drawing  Document up to the amount available under any Letter of Credit even if such Drawing Document claims  an amount in excess of the amount available under the Letter of Credit;    (v) the existence of any claim, set-off, defense or other right that the ParentLead  Borrower or any of its Subsidiaries may have at any time against any beneficiary, any assignee of  proceeds, the L/C Issuer or any other Person;  

 

61        Exhibit 10.2      (vi) any other event, circumstance or conduct whatsoever, whether or not similar to  any of the foregoing that might, but for this Section 2.03(i), constitute a legal or equitable defense to or  discharge of, or provide a right of set-off against, any Borrower’s or any of its Subsidiaries’  reimbursement and other payment obligations and liabilities, arising under, or in connection with, any  Letter of Credit, whether against the L/C Issuer, the beneficiary or any other Person; or    (vii) the fact that any Default or Event of Default shall have occurred and be  continuing;    provided, however, that subject to Section 2.03(g) above, the foregoing shall not release the L/C Issuer  from such liability to the Borrowers as may be finally determined in a final, non-appealable judgment of  a court of competent jurisdiction against the L/C Issuer following reimbursement or payment of the  obligations and liabilities, including reimbursement and other payment obligations, of the Borrowers to  the L/C Issuer arising under, or in connection with, this Section 2.03 or any Letter of Credit.    (j) Without limiting any other provision of this Agreement, the L/C Issuer and each other  Letter of Credit Related Person (if applicable) shall not be responsible to the Borrowers for, and the L/C  Issuer’s rights and remedies against the Borrowers and the obligation of the Borrowers to reimburse the  L/C Issuer for each drawing under each Letter of Credit shall not be impaired by:    (i) honor of a presentation under any Letter of Credit that on its face substantially  complies with the terms and conditions of such Letter of Credit, even if the Letter of Credit requires strict  compliance by the beneficiary;    (ii) honor of a presentation of any Drawing Document that appears on its face to  have been signed, presented or issued (A) by any purported successor or transferee of any beneficiary or  other Person required to sign, present or issue such Drawing Document or (B) under a new name of the  beneficiary;    (iii) acceptance as a draft of any written or electronic demand or request for  payment under a Letter of Credit, even if nonnegotiable or not in the form of a draft or notwithstanding  any requirement that such draft, demand or request bear any or adequate reference to the Letter of Credit;    (iv) the identity or authority of any presenter or signer of any Drawing Document  or the form, accuracy, genuineness or legal effect of any Drawing Document (other than the L/C Issuer’s  determination that such Drawing Document appears on its face substantially to comply with the terms  and conditions of the Letter of Credit);    (v) acting upon any instruction or request relative to a Letter of Credit or requested  Letter of Credit that the L/C Issuer in good faith believes to have been given by a Person authorized to  give such instruction or request;    (vi) any errors, omissions, interruptions or delays in transmission or delivery of any  message, advice or document (regardless of how sent or transmitted) or for errors in interpretation of  technical terms or in translation or any delay in giving or failing to give notice to the Borrowers;    (vii) any acts, omissions or fraud by, or the insolvency of, any beneficiary, any  nominated person or entity or any other Person or any breach of contract between any beneficiary and  any Borrower or any of the parties to the underlying transaction to which the Letter of Credit relates;  

 

62        Exhibit 10.2      (viii) assertion or waiver of any provision of the ISP or UCP that primarily benefits  an issuer of a letter of credit, including any requirement that any Drawing Document be presented to it at  a particular hour or place;    (ix) payment to any paying or negotiating bank (designated or permitted by the  terms of the applicable Letter of Credit) claiming that it rightfully honored or is entitled to  reimbursement or indemnity under Standard Letter of Credit Practice applicable to it;    (x) acting or failing to act as required or permitted under Standard Letter of Credit  Practice applicable to where the L/C Issuer has issued, confirmed, advised or negotiated such Letter of  Credit, as the case may be;    (xi) honor of a presentation after the expiration date of any Letter of Credit  notwithstanding that a presentation was made prior to such expiration date and dishonored by the L/C  Issuer if subsequently the L/C Issuer or any court or other finder of fact determines such presentation  should have been honored;    (xii) dishonor of any presentation that does not strictly comply or that is fraudulent,  forged or otherwise not entitled to honor; or    (xiii) honor of a presentation that is subsequently determined by the L/C Issuer to  have been made in violation of international, federal, state or local restrictions on the transaction of  business with certain prohibited Persons.    (k) Upon the request of the Agent, (i) if 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 Obligation that  remains outstanding, or (ii) if, as of the Letter of Credit Expiration Date, any L/C Obligation for any  reason remains outstanding, the Borrowers shall, in each case, immediately Cash Collateralize the then  Outstanding Amount of all L/C Obligations. Sections 2.05 and 8.02(c) set forth certain additional  requirements to deliver Cash Collateral hereunder. For purposes of this Section 2.03, Section 2.05 and  Section 8.02(c), “Cash Collateralize” means to pledge and deposit with or deliver to the Agent, for the  benefit of the L/C Issuer and the Lenders, as collateral for the L/C Obligations, cash or deposit account  balances in an amount equal to one hundred five percent (105%) of the Outstanding Amount of all L/C  Obligations (other than L/C Obligations with respect to Letters of Credit denominated in a currency other  than Dollars, which L/C Obligations shall be Cash Collateralized in an amount equal to one hundred  fifteen percent (115%) of the Outstanding Amount of such L/C Obligations), pursuant to documentation  in form and substance reasonably satisfactory to the Agent and the L/C Issuer (which documents are  hereby Consented to by the Lenders). The Borrowers hereby grant to the Agent a security interest in all  such cash, deposit accounts and all balances therein and all proceeds of the foregoing. Cash Collateral  shall be maintained in blocked, non-interest bearing deposit accounts at Wells Fargo. If at any time the  Agent determines that any funds held as Cash Collateral are subject to any right or claim of any Person  other than the Agent or that the total amount of such funds is less than the aggregate Outstanding Amount  of all L/C Obligations, the Borrowers will, forthwith upon demand by the Agent, pay to the Agent, as  additional funds to be deposited as Cash Collateral, an amount equal to the excess of (x) such aggregate  Outstanding Amount over (y) the total amount of funds, if any, then held as Cash Collateral that the  Agent determines to be free and clear of any such right and claim. Upon the drawing of any Letter of  Credit for which funds are on deposit as Cash Collateral, such funds shall be applied, to the extent  permitted under applicable Laws, to reimburse the L/C Issuer and, to the extent not so applied, shall  thereafter be applied to satisfy other Obligations and any surplus shall be promptly returned to the  Borrowers in accordance with their written instructions.  

 

63        Exhibit 10.2      (l) The Borrowers shall pay to the Agent for the account of each Lender in accordance with  its Applicable Percentage a Letter of Credit fee (the “Letter of Credit Fee”) for each Letter of Credit  equal to the Applicable Margin for LIBO RateSOFR Loans multiplied by the daily Stated Amount under  each such Letter of Credit (whether or not such maximum amount is then in effect under such Letter of  Credit). For purposes of computing the daily amount available to be drawn under any Letter of Credit,  the amount of the Letter of Credit shall be determined in accordance with Section 1.06. Letter of Credit  Fees shall be (i) due and payable on the first day after the end of each month commencing with the first  such date to occur after the issuance of such Letter of Credit, and after the Letter of Credit Expiration  Date, on demand, and (ii) computed on a monthly basis in arrears. Notwithstanding anything to the  contrary contained herein, while any Event of Default exists, all Letter of Credit Fees shall accrue at the  Default Rate as provided in Section 2.08(b) hereof.    (m) In addition to the Letter of Credit Fees as set forth in Section 2.03(l) above, the  Borrowers shall pay immediately upon demand to the Agent for the account of the L/C Issuer as  non-refundable fees, commissions, and charges (it being acknowledged and agreed that any charging of  such fees, commissions, and charges to the Loan Account pursuant to the provisions of Section 2.02(d)  shall be deemed to constitute a demand for payment thereof for the purposes of this Section 2.03(m)): (i)  a fronting fee which shall be imposed by the L/C Issuer upon the issuance of each Letter of Credit of  .1250.125% per annum of the face amount thereof, plus (ii) any and all other customary commissions,  fees and charges then in effect imposed by, and any and all expenses incurred by, the L/C Issuer, or by  any adviser, confirming institution or entity or other nominated person, relating to Letters of Credit, at  the time of issuance of any Letter of Credit and upon the occurrence of any other activity with respect to  any Letter of Credit (including transfers, assignments of proceeds, amendments, drawings, renewals or  cancellations).    (n) Unless otherwise expressly agreed by the L/C Issuer and the Borrowers when a Letter of  Credit is issued, (i) the rules of the ISP and the UCP shall apply to each Standby Letter of Credit, and (ii)  the rules of the UCP shall apply to each Commercial Letter of Credit.    (o) 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 with respect to the  Lenders all of the benefits and immunities (A) provided to the 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 “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.    (p) In the event of a direct conflict between the provisions of this Section 2.03 and any  provision contained in any Issuer Document, it is the intention of the parties hereto that such provisions  be read together and construed, to the fullest extent possible, to be in concert with each other. In the  event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions  of this Section 2.03 shall control and govern.    2.04 Swing Line Loans.    (a) The Swing Line. Subject to the terms and conditions set forth herein, the Swing Line  Lender may, in reliance upon the agreements of the other Lenders set forth in this Section 2.04, make  loans (each such loan, a “Swing Line Loan”) to the Borrowers from time to time on any Business Day  during the Availability Period in an aggregate principal 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 Committed Loans and L/C  

 

64        Exhibit 10.2      Obligations of the Lender acting as Swing Line Lender, may exceed the amount of such Lender’s  Commitment; provided, that, after giving effect to any Swing Line Loan, (i) the Total Outstandings shall  not exceed Loan Cap, (ii) the aggregate Outstanding Amount of the Committed Loans of any Lender at  such time, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations  at such time, plus such Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line  Loans at such time shall not exceed such Lender’s Commitment, (iii) the initial request for a Swing Line  Loan shall be received by Swing Line Lender not less than five (5) Business Days prior to the date such  Swing Line Loan is to be made[intentionally omitted] and (iv) the Borrowers 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, the Borrowers may borrow under this Section 2.04,  prepay under Section 2.05, and reborrow under this Section 2.04. Each Swing Line Loan shall bear  interest only at the rate applicable to Base Rate Loans. 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. The Swing  Line Lender shall have with respect to the Lenders all of the benefits and immunities (A) provided to the  Agent in Article IX with respect to any acts taken or omissions suffered by the Swing Line Lender in  connection with Swing Line Loans made by it or proposed to be made by it as if the term “Agent” as  used in Article IX included the Swing Line Lender with respect to such acts or omissions, and (B) as  additionally provided herein with respect to the Swing Line Lender.    (b) Borrowing Procedures. Each Swing Line Borrowing shall be made upon the Lead  Borrower’s irrevocable notice to the Swing Line Lender and the Agent, which may be given by  telephone. Each such notice must be received by the Swing Line Lender and the 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. Each such  telephonic notice must be confirmed promptly by delivery to the Swing Line Lender and the Agent of a  written Swing Line Loan Notice, appropriately completed and signed by a Responsible Officer of the  Lead Borrower. Promptly after receipt by the Swing Line Lender of any telephonic Swing Line Loan  Notice, the Swing Line Lender will confirm with the Agent (by telephone or in writing) that the Agent  has also received such Swing Line Loan Notice and, if not, the Swing Line Lender will notify the 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 Agent at the request of the Required Lenders 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 the 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  (or waived in accordance with Section 10.1), then, subject to the terms and conditions hereof, the Swing  Line Lender may, 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 Borrowers at its office by crediting the  account of the Lead Borrower on the books of the Swing Line Lender in immediately available funds.    (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 Borrowers (which hereby irrevocably authorize the Swing Line Lender to so  request on their 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 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  Loan Cap and the satisfaction (or waiver in accordance with Section 10.1) of the conditions set forth in  Section 4.02. Each Lender shall make an amount equal to its Applicable Percentage of the amount of  

 

65        Exhibit 10.2      such outstanding Swing Line Loan available to the Agent in immediately available funds for the account  of the Swing Line Lender at the Agent’s Office not later than 1:00 p.m. on the day specified by the Swing  Line Lender, 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 Borrowers in such amount. The 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  Committed 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 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 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 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 greater of the Federal Funds Rate and  a rate determined by the Swing Line Lender in accordance with banking industry rules on interbank  compensation 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 amount so paid shall constitute such Lender’s Committed Loan included in the relevant  Committed 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 Agent) with respect to any  amounts owing under this clause (iii) shall be conclusive absent manifest error.    (iv) Each Lender’s obligation to make Committed 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  Borrowers or any other Person for any reason whatsoever, (B) the occurrence or continuance of a Default  or an Event of Default, or (C) any other occurrence, event or condition, whether or not similar to any of  the foregoing; provided, that, each Lender’s obligation to make Committed Loans pursuant to this  Section 2.04(c) is subject to the satisfaction (or waiver in accordance with Section 10.1) of the conditions  set forth in Section 4.02. No such funding of risk participations shall relieve or otherwise impair the  obligation of the Borrowers 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 Agent, plus interest thereon from the date of such demand to the date such  

 

66        Exhibit 10.2      amount is returned, at a rate per annum equal to the Federal Funds Rate. The 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 Borrowers 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 Borrowers shall make all payments of  principal and interest in respect of the Swing Line Loans directly to the Swing Line Lender.    2.05 Prepayments.    (a) The Borrowers may, upon irrevocable notice from the Lead Borrower to the Agent, at  any time or from time to time voluntarily prepay Committed Loans in whole or in part without premium  or penalty; provided, that, (i) such notice must be received by the Agent not later than 11:00 a.m. (A)  three U.S. Government Securities Business Days prior to any date of prepayment of LIBO RateSOFR  Loans and (B) on the date of prepayment of Base Rate Loans; (ii) any prepayment of LIBO RateSOFR  Loans, unless a Cash Dominion Event has occurred and is continuing, shall be in a principal amount of  $500,000 or a whole multiple of $100,000 in excess thereof; and (iii) any prepayment of Base Rate  Loans, unless a Cash Dominion Event has occurred and is continuing, 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. Notwithstanding anything to the contrary in the foregoing, if a notice  of prepayment is given in connection with a conditional notice of termination of the Commitments as  contemplated by Section 2.06, then such notice of prepayment may be revoked if such notice of  termination is revoked in accordance with Section 2.06. Each such notice shall specify the date and  amount of such prepayment and the Type(s) of Loans to be prepaid and, if LIBO RateSOFR Loans, the  Interest Period(s) of such Loans. The Agent will promptly notify each Lender of its receipt of each such  notice, and of the amount of such Lender’s Applicable Percentage of such prepayment. If such notice is  given by the Lead Borrower, the Borrowers 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  LIBO RateSOFR Loan shall be accompanied by all accrued interest on the amount prepaid, together with  any additional amounts required pursuant to Section 3.05. Each such prepayment shall be applied to the  Committed Loans of the Lenders in accordance with their respective Applicable Percentages.    (b) The Borrowers may, upon irrevocable notice from the Lead Borrower to the Swing Line  Lender (with a copy to the 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 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. Each such notice shall specify  the date and amount of such prepayment. If such notice is given by the Lead Borrower, the Borrowers  shall make or cause to be made 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 Loan Cap as then in  effect, the Borrowers shall immediately prepay Loans, Swing Line Loans and/or Cash Collateralize the  L/C Obligations in an aggregate amount equal to such excess; provided, however, that the Borrowers  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 Loan Cap as then in effect.  

 

67        Exhibit 10.2      (d) The Borrower shall prepay the Loans and Cash Collateralize the L/C Obligations with  the proceeds and collections received by the Loan Parties to the extent so required under the provisions  of Section 6.13 hereof.    (e) Prepayments made pursuant to Section 2.05(c) and (d) above, first, shall be applied to  the Swing Line Loans, second, shall be applied ratably to the outstanding Committed Loans, third, shall  be used to Cash Collateralize the remaining L/C Obligations; and, fourth, the amount remaining, if any,  after the prepayment in full of all Swing Line Loans and Committed Loans outstanding at such time and  the Cash Collateralization of the remaining L/C Obligations in full may be retained by the Borrowers for  use in the ordinary course of its business. Upon the drawing of any Letter of Credit that has been Cash  Collateralized, the funds held as Cash Collateral shall be applied (without any further action by or notice  to or from the Borrowers or any other Loan Party) to reimburse the L/C Issuer or the Lenders, as  applicable.    2.06 Termination or Reduction of Commitments.    (a) The Borrowers may, upon irrevocable notice from the Lead Borrower to the Agent,  terminate the Aggregate Commitments, the Letter of Credit Sublimit or the Swing Line Sublimit or from  time to time permanently reduce the Aggregate Commitments, the Letter of Credit Sublimit or the Swing  Line Sublimit; provided that (i) any such notice shall be received by the 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 $1,000,000 or any whole multiple of $500,000 in excess thereof, (iii) the  Borrowers shall not terminate or reduce (A) the Aggregate Commitments if, after giving effect thereto  and to any concurrent prepayments hereunder, the Total Outstandings would exceed the Aggregate  Commitments, (B) the Letter of Credit Sublimit if, after giving effect thereto, the Outstanding Amount of  L/C Obligations not fully Cash Collateralized hereunder would exceed the Letter of Credit Sublimit, and  (C) the Swing Line Sublimit if, after giving effect thereto, and to any concurrent payments hereunder, the  Outstanding Amount of Swing Line Loans hereunder would exceed the Swing Line Sublimit, and (iv)  notwithstanding anything to the contrary in the foregoing, a notice of termination of the Commitments  delivered by the Lead Representative may state that such notice is conditioned upon the effectiveness of  other credit facilities or other transaction, in which case such notice may be revoked by the Borrower  Representative (by notice to the Agent on or prior to the specified effective date) if such condition is not  satisfied.    (b) 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  Letter of Credit Sublimit or Swing Line Sublimit shall be automatically reduced by the amount of such  excess.    (c) The Agent will promptly notify the Lenders of any termination or reduction of the  Letter of Credit Sublimit, Swing Line Sublimit or the Aggregate Commitments under this Section 2.06.  Upon any reduction of the Aggregate Commitments, the Commitment of each Lender shall be reduced by  such Lender’s Applicable Percentage of such reduction amount. All fees (including, without limitation,  commitment fees and Letter of Credit Fees) and interest in respect of the Aggregate Commitments  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 Termination Date the aggregate  principal amount of Committed Loans outstanding on such date.  

 

68        Exhibit 10.2      (b) To the extent not previously paid, the Borrower shall repay the outstanding balance of  the Swing Line Loans on the Termination Date.    2.08 Interest.    (a) Subject to the provisions of Section 2.08(b) below and Section 3.03, (i) each LIBO  RateSOFR Loan shall bear interest on the outstanding principal amount thereof for each Interest Period  at a rate per annum equal to Term SOFR for the Adjusted LIBO Rate for such Interest Period thereof plus  the Applicable Margin; (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 Base Rate plus the  Applicable Margin; 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 Base Rate plus the  Applicable Margin.    (b) (i) If any amount payable under any Loan Document 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  Default Rate to the fullest extent permitted by applicable Laws.    (ii) If any other Event of Default exists, then the Agent may, and upon the request  of the Required Lenders shall, notify the Lead Borrower that all outstanding Obligations shall thereafter  bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate and thereafter  such Obligations shall bear interest at the Default Rate to the fullest extent permitted by applicable Laws.    (iii) 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 (l) and (m) of Section 2.03:    (a) Commitment Fee. The Borrowers shall pay to the Agent for the account of each Lender  in accordance with its Applicable Percentage, a commitment fee calculated on a per annum basis equal to  the Applicable Commitment Fee Percentage multiplied by the actual daily amount by which the  Aggregate Commitments exceed the Total Outstandings. 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 monthly in arrears on the first day after the end of  each month, commencing with the first such date to occur after the Closing Date, and on the last day of  the Availability Period. The commitment fee shall be calculated monthly in arrears.    (b) Other Fees. The Borrower shall pay to the Arranger and the 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.    2.10 Computation of Interest and Fees; Term SOFR Conforming Changes.    (a) All computations of fees and interest shall be made on the basis of a three hundred sixty  (360) -day year (or three hundred sixty-five (365) or three hundred sixty-six (366) days, as the case may  

 

69        Exhibit 10.2      be, in the case of Base Rate Loans) and actual days elapsed. Interest shall accrue on each outstanding  Loan beginning, and including the day, such Loan is made and until (but not including) the day on which  such Loan (or such portion thereof) 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  Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent  manifest error.    (b) In connection with the use or administration of Term SOFR, the Agent will have the  right to make Conforming Changes from time to time and, notwithstanding anything to the contrary  herein or in any other Loan Document, any amendments implementing such Conforming Changes will  become effective without any further action or consent of any other party to this Agreement or any other  Loan Document. The Agent will promptly notify the Lead Borrower and the Lenders of the effectiveness  of any Conforming Changes in connection with the use or administration of Term SOFR.    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 the Agent (the “Loan Account”) in the ordinary course of business. In addition,  each Lender may record in such Lender’s internal records, an appropriate notation evidencing the date  and amount of each Loan from such Lender, each payment and prepayment of principal of any such  Loan, and each payment of interest, fees and other amounts due in connection with the Obligations due to  such Lender. The accounts or records maintained by the Agent and each Lender shall be conclusive  absent manifest error of the amount of the Credit Extensions made by the Lenders to the Borrowers 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 Borrowers 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 Agent in respect of such matters, the accounts and records of  the Agent shall control in the absence of manifest error. Upon the request of any Lender made through  the Agent, the Borrowers shall execute and deliver to such Lender (through the 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. Upon receipt of an affidavit of a Lender as to the loss, theft,  destruction or mutilation of such Lender’s Note, together with customary indemnification undertakings  for the benefit of the Borrowers, and upon cancellation of such Note, the Borrowers will issue, in lieu  thereof, a replacement Note in favor of such Lender, in the same principal amount thereof and otherwise  of like tenor.    (b) In addition to the accounts and records referred to in Section 2.11(a), each Lender and  the 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 Agent and the accounts and  records of any Lender in respect of such matters, the accounts and records of the Agent shall control in  the absence of manifest error.    2.12 Payments Generally; Agent’s Clawback.    (a) General. All payments to be made by the Borrowers shall be made without condition or  deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided  herein, all payments by the Borrowers hereunder shall be made to the Agent, for the account of the  respective Lenders to which such payment is owed, at the Agent’s Office in Dollars and in immediately  available funds not later than 2:00 p.m. on the date specified herein. Subject to Section 2.14 hereof, the  

 

70        Exhibit 10.2      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 Agent after 2:00 p.m., at the option of the Agent, shall 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 Borrowers 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 Agent. Unless the Agent shall have  received notice from a Lender prior to the proposed date of any Borrowing of LIBO RateSOFR Loans (or  in the case of any Borrowing of Base Rate Loans, prior to 12:00 noon on the date of such Borrowing)  that such Lender will not make available to the Agent such Lender’s share of such Borrowing, the 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 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 Borrowers a corresponding amount. In such event, if a Lender has not in fact made  its share of the applicable Committed Borrowing available to the Agent, then the applicable Lender and  the Borrowers severally agree to pay to the Agent forthwith on demand such corresponding amount in  immediately available funds with interest thereon, for each day from and including the date such amount  is made available to the Borrowers to but excluding the date of payment to the Agent, at (A) in the case  of a payment to be made by such Lender, the greater of the Federal Funds Rate and a rate determined by  the Agent in accordance with banking industry rules on interbank compensation plus any administrative  processing or similar fees customarily charged by the Agent in connection with the foregoing, and (B) in  the case of a payment to be made by the Borrowers, the interest rate applicable to Base Rate Loans. If  the Borrowers and such Lender shall pay such interest to the Agent for the same or an overlapping  period, the Agent shall promptly remit to the Borrowers the amount of such interest paid by the  Borrowers for such period. If such Lender pays its share of the applicable Committed Borrowing to the  Agent, then the amount so paid shall constitute such Lender’s Committed Loan included in such  Committed Borrowing. Any payment by the Borrowers shall be without prejudice to any claim the  Borrowers may have against a Lender that shall have failed to make such payment to the Agent.    (ii) Payments by Borrowers; Presumptions by Agent. Unless the Agent shall have  received notice from the Lead Borrower prior to the time at which any payment is due to the Agent for  the account of the Lenders or the L/C Issuer hereunder that the Borrowers will not make such payment,  the Agent may assume that the Borrowers have 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 Borrowers have 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 Agent forthwith on  demand the amount so distributed to such Lender or the L/C Issuer, in immediately available 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 Agent, at the greater of the Federal Funds Rate and a rate  determined by the Agent in accordance with banking industry rules on interbank compensation.    A notice of the Agent to any Lender or the Lead 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 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 Borrowers by the 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 (subject to the provisions of the last paragraph of Section 4.02 hereof), the Agent shall  return such funds (in like funds as received from such Lender) to such Lender, without interest.  

 

71        Exhibit 10.2      (d) Obligations of Lenders Several. The obligations of the Lenders hereunder to make  Committed Loans, to fund participations in Letters of Credit and Swing Line Loans and to make  payments hereunder are several and not joint. The failure of any Lender to make any Committed Loan,  to fund any such participation or to make any payment hereunder 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 Committed Loan, to purchase its  participation or to make its payment hereunder.    (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 Credit Party shall, by exercising any right of  setoff or counterclaim or otherwise, obtain payment in respect of any principal of, interest on, or other  amounts with respect to, any of the Obligations resulting in such Lender’s receiving payment of a  proportion of the aggregate amount of such Obligations greater than its pro rata share thereof as provided  herein (including as in contravention of the priorities of payment set forth in Section 8.03), then the  Credit Party receiving such greater proportion shall (a) notify the Agent of such fact, and (b) purchase  (for cash at face value) participations in the Obligations of the other Credit Parties, or make such other  adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Credit  Parties ratably and in the priorities set forth in Section 8.03, 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 (A) any  payment made by the Loan Parties pursuant to and in accordance with the express terms of this  Agreement or (B) any payment obtained by a Lender as consideration for the assignment of or sale of a  participation in any of its Committed Loans or subparticipations in L/C Obligations or Swing Line Loans  to any assignee or participant, other than to the Borrowers 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 Settlement Amongst Lenders    (a) The amount of each Lender’s Applicable Percentage of outstanding Loans (including  outstanding Swing Line Loans, shall be computed weekly (or more frequently in the Agent’s discretion)  and shall be adjusted upward or downward based on all Loans (including Swing Line Loans) and  repayments of Loans (including Swing Line Loans) received by the Agent as of 3:00 p.m. on the first  Business Day (such date, the “Settlement Date”) following the end of the period specified by the Agent.    (b) The Agent shall deliver to each of the Lenders promptly after a Settlement Date a  summary statement of the amount of outstanding Committed Loans and Swing Line Loans for the period  and the amount of repayments received for the period. As reflected on the summary statement, (i) the  Agent shall transfer to each Lender its Applicable Percentage of repayments, and (ii) each Lender shall  transfer to the Agent (as provided below) or the Agent shall transfer to each Lender, such amounts as are  

 

72        Exhibit 10.2      necessary to insure that, after giving effect to all such transfers, the amount of Committed Loans made by  each Lender shall be equal to such Lender’s Applicable Percentage of all Committed Loans outstanding  as of such Settlement Date. If the summary statement requires transfers to be made to the Agent by the  Lenders and is received prior to 1:00 p.m. on a Business Day, such transfers shall be made in  immediately available funds no later than 3:00 p.m. that day; and, if received after 1:00 p.m., then no  later than 3:00 p.m. on the next Business Day. The obligation of each Lender to transfer such funds is  irrevocable, unconditional and without recourse to or warranty by the Agent. If and to the extent any  Lender shall not have so made its transfer to the Agent, such Lender agrees to pay to the Agent, forthwith  on demand such amount, together with interest thereon, for each day from such date until the date such  amount is paid to the Agent, equal to the greater of the Federal Funds Rate and a rate determined by the  Agent in accordance with banking industry rules on interbank compensation plus any administrative,  processing, or similar fees customarily charged by the Agent in connection with the foregoing.    2.15 Increase in Commitments.    (a) Committed Increase. The Lead Borrower may from time to time make a written request  to Agent for an increase in the Aggregate Commitments by an amount (for all such requests) not  exceeding $10,000,000 (the “Committed Increase”); provided, that, (i) any such Committed Increase  shall be in a minimum amount of $5,000,000, (ii) the amount of the Aggregate Commitments, as the  same may be increased pursuant to any Committed Increase, shall not exceed $25,000,000 at any time,  (iii) the Lead Borrower may make a maximum of two (2) such requests, (iv) as of the date of any such  Committed Increase, and after giving effect thereto, no Default or Event of Default shall exist or have  occurred and be continuing, and (v) as to any such Committed Increase, Borrowers shall have paid a fee  to Wells Fargo for its own account in the amount equal to one-half percent (0.50%) of the amount of  such Committed Increase. Any such Committed Increase shall be effectuated as soon as reasonably  practicable after the request of the Lead Borrower therefor. Any such Committed Increase shall be  provided solely by Wells Fargo (or any permitted assignee or Participant of Wells Fargo) and shall  otherwise be on the same terms as the existing facility under this Agreement. Upon the effective date of  any such Committed Increase (the “Increase Effective Date”) (i) the Aggregate Commitments under, and  for all purposes of, this Agreement shall be increased by the aggregate amount of such Committed  Increase, and (ii) Schedule 2.01 shall be deemed modified, without further action, to reflect the revised  Commitments and Applicable Percentages of the Lenders.    (b) Conditions to Effectiveness of Committed Increase. As a condition precedent to each  Committed Increase, (i) the Lead Borrower shall deliver to the 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 (A) certifying and attaching the resolutions adopted by such Loan Party  approving or consenting to such Committed Increase, and (B) in the case of the Borrowers, certifying  that, before and after giving effect to such Committed Increase, (1) the representations and warranties  contained in Article V and the other Loan Documents are true and correct 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 as of such earlier date, and except that for purposes of  this Section 2.15, 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),  respectively, of Section 6.01, and (2) as of the Increase Effective Date for any such Committed Increase  and after giving effect thereto, no Default or Event of Default shall exist or have occurred and be  continuing; (iii) the Borrowers shall have paid the fee provided for above to Wells Fargo; (iv) if  requested by the Agent, the Borrowers shall deliver to the Agent and the Lenders an opinion or opinions,  in form and substance reasonably satisfactory to the Agent, from counsel to the Borrowers reasonably  satisfactory to the Agent and dated such date; (v) the Borrowers shall have delivered such other  instruments, documents and agreements as the Agent may reasonably have requested; and (vii) as of the  

 

73        Exhibit 10.2      date of any such Committed Increase and after giving effect thereto, no Default or Event of Default shall  exist or have occurred and be continuing.    (c) Conflicting Provisions. This Section shall supersede any provisions in Sections 2.13 or  10.01 to the contrary.    ARTICLE III  TAXES, YIELD PROTECTION AND ILLEGALITY;  APPOINTMENT OF LEAD BORROWER    3.01 Taxes.    (a) Payments Free of Taxes. Any and all payments by or on account of any obligation of  the Borrowers hereunder or under any other Loan Document shall be made free and clear of and without  reduction or withholding for any Indemnified Taxes or Other Taxes, provided, that, if the Borrowers  shall be required by applicable law to deduct any Indemnified Taxes (including any Other Taxes) from  such payments, then (i) the sum payable shall be increased as necessary so that after making all required  deductions (including deductions applicable to additional sums payable under this Section) the Agent,  Lender or L/C Issuer, as the case may be, receives an amount equal to the sum it would have received had  no such deductions been made, (ii) the Borrowers shall make such deductions and (iii) the Borrowers  shall timely pay the full amount deducted to the relevant Governmental Authority in accordance with  applicable law.    (b) Payment of Other Taxes by the Borrowers. Without limiting the provisions of  subsection (a) above, the Borrowers shall timely pay any Other Taxes to the relevant Governmental  Authority in accordance with applicable law.    (c) Indemnification by the Loan Parties. The Loan Parties shall indemnify the Agent, each  Lender and the L/C Issuer, within ten (10) days after demand therefor, for the full amount of any  Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on  or attributable to amounts payable under this Section) paid by the Agent, such Lender or the L/C Issuer,  as the case may be, and any penalties, interest and reasonable expenses arising therefrom or with respect  thereto, whether or not such Indemnified Taxes or Other 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 Lead Borrower by a Lender or the L/C Issuer (with a copy to the Agent), or by  the Agent on its own behalf or on behalf of the Agent, a Lender or the L/C Issuer, shall be conclusive  absent manifest error.    (d) Evidence of Payments. As soon as practicable after any payment of Indemnified Taxes  or Other Taxes by the Borrowers to a Governmental Authority, the Lead Borrower shall deliver to the  Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing  such payment, a copy of the return reporting such payment or other evidence of such payment reasonably  satisfactory to the Agent.    (e) Status of Lenders. Any Foreign Lender that is entitled to an exemption from or  reduction of withholding tax under the law of the jurisdiction in which any Borrower is resident for tax  purposes, or any treaty to which such jurisdiction is a party, with respect to payments hereunder or under  any other Loan Document shall deliver to the Lead Borrower (with a copy to the Agent), at the time or  times prescribed by applicable law or reasonably requested by the Lead Borrower or the Agent, such  properly completed and executed documentation prescribed by applicable law as will permit such  payments to be made without withholding or at a reduced rate of withholding. Such delivery shall be  

 

74        Exhibit 10.2      provided on the Closing Date and on or before such documentation expires or becomes obsolete or after  the occurrence of an event requiring a change in the documentation most recently delivered. In addition,  any Lender, if requested by the Lead Borrower or the Agent, shall deliver such other documentation  prescribed by applicable law or reasonably requested by the Lead Borrower or the Agent as will enable  the Lead Borrower or the Agent to determine whether or not such Lender is subject to backup  withholding or information reporting requirements.    Without limiting the generality of the foregoing, in the event that any Borrower is resident for tax  purposes in the United States, any Foreign Lender shall deliver to the Lead Borrower and the 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  request of the Lead Borrower or the Agent, but only if such Foreign Lender is legally entitled to do so),  whichever of the following is applicable:    (i) With respect to any Lender that is not a Foreign Lender, duly completed copies  of Internal Revenue Service Form W-9 certifying that such Lender is exempt from U.S. federal backup  withholding tax,    (ii) With respect to any Lender that is a Foreign Lender:      (A) (i) duly completed copies of Internal Revenue Service Form W-8BEN  claiming eligibility for benefits of an income tax treaty to which the United States is a party,    (B) (ii) duly completed copies of Internal Revenue Service Form W-8ECI,  (C) (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 to the effect that such Foreign  Lender is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the Code, (B) a “10 percent  shareholder” of the Borrowers within the meaning of section 881(c)(3)(B) of the Code, or (C) a  “controlled foreign corporation” described in section 881(c)(3)(C) of the Code and (y) duly completed  copies of Internal Revenue Service Form W-8BEN,    (iii) 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 Lead Borrower and the Agent at the time or  times prescribed by law and at such time or times reasonably requested by the Lead Borrower or the  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 Lead  Borrower or the Agent as may be necessary for the Lead Borrower and the 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, if any, to deduct and withhold from such payment.  Solely for purposes of this clause (iv), “FATCA” shall include any amendments made to FATCA after  the date of this Agreement, or    (iv) any other form prescribed by applicable law as a basis for claiming exemption  from or a reduction in United States Federal withholding tax duly completed together with such  supplementary documentation as may be prescribed by applicable law to permit the Lead Borrower to  determine the withholding or deduction required to be made.  

 

75        Exhibit 10.2      (f) Status of Agent. On or before the Closing Date (and on or before the date any successor  or replacement Agent becomes the Agent hereunder), to the extent copies thereof have not previously  been so delivered, the Agent shall deliver to the Lead Borrower, to the extent it is legally able to do so,  duly completed copies of either (i) Internal Revenue Service Form W-9 (or any subsequent versions  thereof or successors thereto) or (ii) (A) Internal Revenue Service Form W-8IMY (or any subsequent  versions thereof or successors thereto) certifying that it is a “U.S. branch” of a foreign bank and  evidencing its agreement with the Borrowers to be treated as a U.S. person with respect to payments  made to it by the Borrowers and (B) Internal Revenue Service Form W-8ECI with respect to any amounts  payable to the Agent for its own account.    (g) (f) Treatment of Certain Refunds. If the Agent, any Lender or the L/C Issuer  determines, in its sole discretion, that it has received a refund of any Taxes or Other Taxes as to which it  has been indemnified by the Borrowers or with respect to which the Borrowers have paid additional  amounts pursuant to this Section, it shall pay to the Borrowers an amount equal to such refund (but only  to the extent of indemnity payments made, or additional amounts paid, by the Borrowers under this  Section with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket  expenses of the Agent, such Lender or the L/C Issuer, as the case may be, and without interest (other than  any interest paid by the relevant Governmental Authority with respect to such refund), provided, that, the  Borrowers, upon the request of the Agent, such Lender or the L/C Issuer, agree to repay the amount paid  over to the Borrowers (plus any penalties, interest or other charges imposed by the relevant  Governmental Authority) to the Agent, such Lender or the L/C Issuer in the event the Agent, such Lender  or the L/C Issuer is required to repay such refund to such Governmental Authority. This subsection shall  not be construed to require the Agent, any Lender or the L/C Issuer to make available its tax returns (or  any other information relating to its taxes that it deems confidential) to the Borrowers or any other  Person.    (h) Defined Terms. For purposes of this section, the term “applicable law” includes  FATCA.    3.02 Illegality. If any Lender determines that any change in market conditions or any Change  in Law has made it unlawful or impractical, or that any Governmental Authority has asserted that it is  unlawful, for any Lender or its applicable Lending Office to make, maintain or fund LIBOSOFR Loans  (or Base Rate Loans determined with reference to Term SOFR), or to determine or charge interest rates  based upon the LIBOTerm SOFR Reference 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 marketTerm SOFR or SOFR, then, on notice thereof by such Lender to the Lead  Borrower through the Agent, any obligation of such Lender to make or continue LIBOSOFR Loans (or  Base Rate Loans determined with reference to Term SOFR) or to convert Base Rate Loans to LIBO  RateSOFR Loans shall be suspended until such Lender notifies the Agent and the Lead Borrower that the  circumstances giving rise to such determination no longer exist. Upon receipt of such notice, if  necessary to avoid such illegality or impracticability, (i) in the case of any SOFR Loans of such Lender  that are outstanding, the Borrowers shall, upon demand from such Lender (with a copy to the Agent),  prepay or, if applicable, convert all LIBO RateSOFR Loans of such Lender to Base Rate Loans (and if  applicable, without reference to Term SOFR), either on the last day of the Interest Period therefor, if such  Lender may lawfully continue to maintain such LIBO RateSOFR Loans to such day, or immediately, if  such Lender may not lawfully continue to maintain such LIBO Rate LoansSOFR Loans, and (ii) in the  case of any such Base Rate Loans of such Lender that are outstanding and that are determined with  reference to Term SOFR, interest upon the Base Rate Loans of such Lender after the date specified in  such Lender’s notice shall accrue interest at the rate then applicable to Base Rate Loans without  reference to the Term SOFR component thereof. Upon any such prepayment or conversion, the  Borrowers shall also pay accrued interest on the amount so prepaid or converted.  

 

76        Exhibit 10.2      3.03 Inability to Determine Rates.        (a) General. Subject to the provisions set forth in Section 3.03(b), if the Required Lenders  determine that for any reason in connection with any request for a SOFR Loan or a conversion to or  continuation thereof that Term SOFR cannot be determined on or prior to the first day of any Interest  Period, then the Agent will promptly so notify the Lead Borrower and each Lender. Thereafter, the  obligation of the Lenders to make any SOFR Loan, and any right of any Borrower to convert any Loan or  continue any Loan as a SOFR Loan, shall be suspended (to the extent of the affected SOFR Loans or the  affected Interest Periods) until the Agent revokes such notice. Upon receipt of such notice, (A) the Lead  Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of SOFR  Loans or, failing that, will be deemed to have converted such request into a request for a Committed  Borrowing of Base Rate Loans in the amount specified therein, and (B) any outstanding affected SOFR  Loans will be deemed to have been converted into Base Rate Loans at the end of the applicable Interest  Period. Upon any such prepayment or conversion, the Borrowers shall also pay accrued interest on the  amount so prepaid or converted.    3.03 Inability to Determine Rates. If the Required Lenders determine that for any reason in  connection with any request for a LIBO Rate Loan or a conversion to or continuation thereof that (a)  Dollar deposits are not being offered to banks in the London interbank market for the applicable amount  and Interest Period of such LIBO Rate Loan, (b) adequate and reasonable means do not exist for  determining the LIBO Rate for any requested Interest Period with respect to a proposed LIBO Rate Loan  , or (c) the LIBO Rate for any requested Interest Period with respect to a proposed LIBO Rate Loan does  not adequately and fairly reflect the cost to such Lenders of funding such Loan, the Agent will promptly  so notify the Lead Borrower and each Lender. Thereafter, the obligation of the Lenders to make or  maintain LIBO Rate Loans shall be suspended until the Agent (upon the instruction of the Required  Lenders) revokes such notice    (b) Benchmark Replacement Setting.        (i) Benchmark Replacement. Notwithstanding anything to the contrary  herein or in any other Loan Document, upon the occurrence of a Benchmark Transition  Event, the Agent and the Lead Borrower may amend this Agreement to replace the  then-current Benchmark with a Benchmark Replacement. Any such amendment with  respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the fifth  (5th) Business Day after the Agent has posted such proposed amendment to all affected  Lenders and the Lead Borrower so long as the Agent has not received, by such time,  written notice of objection to such amendment from the Lenders comprising the  Required Lenders. No replacement of a Benchmark with a Benchmark Replacement  pursuant to this Section 3.03(b) will occur prior to the applicable Benchmark Transition  Start Date.    (ii) Benchmark Replacement Conforming Changes. In connection with the  use, administration, adoption or implementation of a Benchmark Replacement, the Agent  will have the right to make Conforming Changes from time to time and, notwithstanding  anything to the contrary herein or in any other Loan Document, any amendments  implementing such Conforming Changes will become effective without any further  action or consent of any other party to this Agreement or any other Loan Document.    (iii) Notices; Standards for Decisions and Determinations. The Agent will  promptly notify the Lead Borrower and the Lenders of (A) the implementation of any  Benchmark Replacement and (B) the effectiveness of any Conforming Changes in  

 

77        Exhibit 10.2      connection with the use, administration, adoption or implementation of a Benchmark  Replacement. The Agent will notify the Lead Borrower of (x) the removal or  reinstatement of any tenor of a Benchmark pursuant to Section 3.03(b)(iv) and (y) the  commencement of any Benchmark Unavailability Period. Any determination, decision  or election that may be made by the Agent or, if applicable, any Lender (or group of  Lenders) pursuant to this Section 3.03(b), including any determination with respect to a  tenor, rate or adjustment or of the occurrence or non-occurrence of an event,  circumstance or date and any decision to take or refrain from taking any action or any  selection, will be conclusive and binding absent manifest error and may be made in its or  their sole discretion and without consent from any other party to this Agreement or any  other Loan Document, except, in each case, as expressly required pursuant to this  Section 3.03(b).    (iv) Unavailability of Tenor of Benchmark. Notwithstanding anything to the  contrary herein or in any other Loan Document, at any time (including in connection  with the implementation of a Benchmark Replacement), (A) if the then-current  Benchmark is a term rate (including the Term SOFR Reference Rate) and either (1) any  tenor for such Benchmark is not displayed on a screen or other information service that  publishes such rate from time to time as selected by the Agent in its reasonable  discretion or (2) the regulatory supervisor for the administrator of such Benchmark has  provided a public statement or publication of information announcing that any tenor for  such Benchmark is not or will not be representative, then the Agent may modify the  definition of “Interest Period” (or any similar or analogous definition) for any  Benchmark settings at or after such time to remove such unavailable or  non-representative tenor and (B) if a tenor that was removed pursuant to clause (A)  above either (1) is subsequently displayed on a screen or information service for a  Benchmark (including a Benchmark Replacement) or (2) is not, or is no longer, subject  to an announcement that it is not or will not be representative for a Benchmark  (including a Benchmark Replacement), then the Agent may modify the definition of  “Interest Period” (or any similar or analogous definition) for all Benchmark settings at or  after such time to reinstate such previously removed tenor.    (v) Benchmark Unavailability Period. Upon Lead Borrower’s receipt of  such notice of the commencement of a Benchmark Unavailability Period, (1) the Lead  Borrower may revoke any pending request for a Borrowingborrowing of, conversion to  or continuation of LIBO RateSOFR Loans orto be made, converted or continued during  any Benchmark Unavailability Period and, failing that, the Lead Borrower will be  deemed to have converted any such request into a request for a Committed  Borrowingborrowing of or conversion to Base Rate Loans in the amount specified  therein, and (2) any outstanding affected SOFR Loans will be deemed to have been  converted to Base Rate Loans at the end of the applicable Interest Period. During any  Benchmark Unavailability Period or at any time that a tenor for the then-current  Benchmark is not an Available Tenor, the component of the Base Rate based upon the  then-current Benchmark or such tenor for such Benchmark, as applicable, will not be  used in any determination of the Base Rate.    3.04 Increased Costs; Reserves on LIBO Rate Loans.    (A) (a) Increased Costs Generally. If any (i) Change in Law, or (ii) compliance by any  Lender or the L/C Issuer with any direction, request, or requirement (irrespective of whether having the  force of law) of any Governmental Authority or monetary authority (including Regulation D of the FRB),  shall:  

 

78        Exhibit 10.2      (b) :    (i) (A) 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 (including, without limitation, in respect of  any Letter of Credit) by, any Lender (except any reserve requirement reflected in the LIBO Rate)  or the L/C Issuer;    (ii) (B) subject any Lender or the L/C Issuer to any tax of any kind whatsoever  with respect to this Agreement, any Letter of Credit, any participation in a Letter of Credit or any  LIBO RateSOFR Loan made by it, or change the basis of taxation of payments to such Lender or  the L/C Issuer in respect thereof (except for Indemnified Taxes or Other Taxes covered by  Section 3.01 and the imposition of, or any change in the rate of, any Excluded Tax payable by  such Lender or the L/C Issuer); or    (iii) (C) impose on any Lender or the L/C Issuer or the London interbank market  any other condition, cost or expense affecting this Agreement or LIBO RateSOFR 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 or  maintaining any LIBOSOFR Loan (or any Base Rate Loan determined with reference to Term SOFR) (or  of maintaining its obligation to make any such SOFR Loan or Base Rate 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 Borrowers 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,  together with interest on such amount from the date of such demand until payment in full thereof at the  rate then applicable to Base Rate Loans hereunder.    (c) (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 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 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), then from time to time the  Borrowers 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.    (d) (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 with a reasonably  detailed description of the calculation thereof and delivered to the Lead Borrower shall be conclusive  absent manifest error. The Borrowers 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.  

 

79        Exhibit 10.2      (e) (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 Borrowers 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 (9) months prior to the  date that such Lender or the L/C Issuer, as the case may be, notifies the Lead 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) Reserves on LIBO Rate Loans. The Borrowers shall pay to each Lender, 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 LIBO 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), which shall be due and payable on each date on which interest is  payable on such Loan, provided the Lead Borrower shall have received at least ten (10) days’ prior notice  (with a copy to the Agent) of such additional interest from such Lender. If a Lender fails to give notice  ten (10) days prior to the relevant Interest Payment Date, such additional interest shall be due and  payable ten (10) days from receipt of such notice.    3.05 Compensation for Losses. Upon demand of any Lender (with a copy to the Agent)  from time to time, the Borrowers 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 Borrowers (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 Lead Borrower; or    (c) any assignment of a LIBO RateSOFR Loan on a day other than the last day of the  Interest Period therefor as a result of a request by the Lead Borrower pursuant to Section 10.13;    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 Borrowers shall also pay any customary  administrative fees charged by such Lender in connection with the foregoing.    For purposes of calculating amounts payable by the Borrowers to the Lenders under this Section  3.05, each Lender shall be deemed to have funded each LIBO Rate Loan made by it at the LIBO Rate for  such Loan by a matching deposit or other borrowing in the London interbank market for a comparable  amount and for a comparable period, whether or not such LIBO Rate Loan was in fact so funded.    Anything to the contrary contained herein notwithstanding, neither the Agent, nor any Lender, nor  any of their Participants, is required actually to match fund any Obligation as to which interest accrues at  Term SOFR or the Term SOFR Reference Rate.  

 

80        Exhibit 10.2      A certificate of the Agent or a Lender delivered to the Lead Borrower setting forth the amount  that the Agent or such Lender is entitled to receive pursuant to this Section 3.05 together with a  reasonably detailed calculation thereof shall be conclusive absent manifest error. The Borrowers shall  pay such amount to the Agent or such Lender, as the case may be, within 10 days after receipt thereof    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 Borrowers are required to pay any additional amount to any Lender or any  Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender gives a  notice pursuant to Section 3.02, then such Lender 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, 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 to any unreimbursed cost or expense and  would not otherwise be disadvantageous to such Lender. The Borrowers hereby agree to pay all  reasonable and documented out-of-pocket costs and expenses incurred by any Lender in connection with  any such designation or assignment.    (b) Replacement of Lenders. If any Lender requests compensation under Section 3.04, or if  the Borrowers are required to pay any additional amount to any Lender or any Governmental Authority  for the account of any Lender pursuant to Section 3.01, the Borrowers may replace such Lender in  accordance with Section 10.13.    3.07 Survival. All of the Borrowers’ obligations under this Article III shall survive  termination of the Aggregate Commitments and repayment of all other Obligations hereunder.    3.08 Designation of Lead Borrower as Borrowers’ Agent.    (a) Each Borrower hereby irrevocably designates and appoints the Lead Borrower as such  Borrower’s agent to obtain Credit Extensions, the proceeds of which shall be available to each Borrower  for such uses as are permitted under this Agreement. As the disclosed principal for its agent, each  Borrower shall be obligated to each Credit Party on account of Credit Extensions so made as if made  directly by the applicable Credit Party to such Borrower, notwithstanding the manner by which such  Credit Extensions are recorded on the books and records of the Lead Borrower and of any other  Borrower. In addition, each Loan Party other than the Borrowers hereby irrevocably designates and  appoints the Lead Borrower as such Loan Party’s agent to represent such Loan Party in all respects  under this Agreement and the other Loan Documents.    (b) Each Borrower recognizes that credit available to it hereunder is in excess of and on  better terms than it otherwise could obtain on and for its own account and that one of the reasons therefor  is its joining in the credit facility contemplated herein with all other Borrowers. Consequently, each  Borrower hereby assumes and agrees to discharge all Obligations of each of the other Borrowers.    (c) The Lead Borrower shall act as a conduit for each Borrower (including itself, as a  “Borrower”) on whose behalf the Lead Borrower has requested a Credit Extension. Neither the Agent  nor any other Credit Party shall have any obligation to see to the application of such proceeds therefrom.    ARTICLE IV  CONDITIONS PRECEDENT TO CREDIT EXTENSIONS  

 

81        Exhibit 10.2      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 Agent’s receipt of the following, each of which shall be originals, telecopies or  other electronic image scan transmission (e.g., “pdf” or “tif “ via e-mail) (followed promptly by  originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing  Loan Party or the Lenders, as applicable, 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 Agent:    (i) executed counterparts of this Agreement sufficient in number for distribution  to the Agent, each Lender and the Lead Borrower;    (ii) a Note executed by the Borrowers in favor of each Lender requesting a Note;    (iii) such certificates of resolutions or other action, incumbency certificates and/or  other certificates of Responsible Officers of each Loan Party as the Agent may require evidencing (A)  the authority of each Loan Party to enter into this Agreement and the other Loan Documents to which  such Loan Party is a party or is to become a party and (B) 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 or is to become a party;    (iv) copies of each Loan Party’s Organization Documents and such other  documents and certifications as the 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 so qualify in such  jurisdiction could not reasonably be expected to have a Material Adverse Effect;    (v) a favorable opinion of DLA Piper LLP (US), counsel to the Loan Parties,  addressed to the Agent and each Lender, as to such matters concerning the Loan Parties and the Loan  Documents as the Agent may reasonably request;    (vi) a certificate signed by a Responsible Officer of the Lead Borrower certifying  (A) that the conditions specified in Sections 4.02(a) and (b) have been satisfied, (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, (C) to the  Solvency of the Loan Parties as of the Closing Date after giving effect to the transactions contemplated  hereby, and (D) either that (1) no consents, licenses or approvals are 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, or (2) that all such consents, licenses and approvals have been  obtained and are in full force and effect;    (vii) evidence that all insurance required to be maintained pursuant to the Loan  Documents and all endorsements in favor of the Agent required under the Loan Documents have been  obtained and are in effect;    (viii) a payoff letter from Siena Lending Group LLC satisfactory in form and substance  to the Agent evidencing that the Existing Credit Agreement has been or concurrently with the Closing  Date is being terminated, all obligations thereunder are being paid in full, and all Liens securing  

 

82        Exhibit 10.2      obligations under the Existing Credit Agreement have been or concurrently with the Closing Date are  being released;    (ix) the Security Documents and certificates evidencing any stock being pledged  thereunder, together with undated stock powers executed in blank, each duly executed by the applicable  Loan Parties;    (x) all other Loan Documents, each duly executed by the applicable Loan Parties;    (xi) results of searches or other evidence reasonably satisfactory to the Agent (in  each case dated as of a date reasonably satisfactory to the Agent) indicating the absence of Liens on the  assets of the Loan Parties, except for Permitted Encumbrances and Liens for which termination  statements and releases, satisfactions and discharges of any mortgages, and releases or subordination  agreements satisfactory to the Agent are being tendered concurrently with such extension of credit or  other arrangements satisfactory to the Agent for the delivery of such termination statements and releases,  satisfactions and discharges have been made;    (xii) (A) all documents and instruments, including Uniform Commercial Code  financing statements, required by law or reasonably requested by the Agent to be filed, registered or  recorded to create or perfect the first priority Liens intended to be created under the Loan Documents and  all such documents and instruments shall have been so filed, registered or recorded to the satisfaction of  the Agent, and (B) the Credit Card Notifications and Control Agreements required pursuant to Section  6.13 hereof, and (C) Collateral Access Agreements as required by the Agent (and including a Collateral  Access Agreement with Amalgamate Processing, Inc, that also includes its agreement to provide certain  services to Agent subject to certain conditions);    (xiii) such other assurances, certificates, documents, consents or opinions as the  Agent reasonably may require.    (b) After giving effect to (i) the first funding under the Loans, (ii) any charges to the Loan  Account made in connection with the establishment of the credit facility contemplated hereby and (iii) all  Letters of Credit to be issued at, or immediately subsequent to, such establishment, Excess Availability  shall be not less than $3,000,000.    (c) The Agent shall have received a Borrowing Base Certificate dated the Closing Date,  relating to the month ended on December 31, 2017 and executed by a Responsible Officer of the Lead  Borrower.    (d) The Agent shall be reasonably satisfied that any financial statements delivered to it  fairly present the business and financial condition of the Loan Parties and that there has been no Material  Adverse Effect since the date of the Audited Financial Statements.    (e) There shall not be pending any litigation or other proceeding, the result of which, either  individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.    (f) There shall not have occurred any default of any Material Contract of any Loan Party.    (g) The consummation of the transactions contemplated hereby shall not violate any  applicable Law or any Organization Document.  

 

83        Exhibit 10.2      (h) All fees and expenses required to be paid to the Agent or the Arranger on or before the  Closing Date shall have been paid in full, and all fees and expenses required to be paid to the Lenders on  or before the Closing Date shall have been paid in full.    (i) The Borrowers shall have paid all fees, charges and disbursements of counsel to the  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 Date (provided that such estimate shall  not thereafter preclude a final settling of accounts between the Borrowers and the Agent).    (j) The Agent and the Lenders shall have received all documentation and other information  required by regulatory authorities under applicable “know your customer” and anti-money laundering  rules and regulations, including without limitation the USA PATRIOTPatriot Act in each case, the results  of which are satisfactory to the Agent.    (k) No material changes in governmental regulations or policies affecting any Loan Party or  any Credit Party shall have occurred prior to the Closing Date.    (l) There shall not have occurred any disruption or material adverse change in the United  States financial or capital markets in general that has had, in the reasonable opinion of the Agent, a  material adverse effect on the market for loan syndications or adversely affecting the syndication of the  Loans.    The Agent shall notify the Lead Borrower and the Lenders of the Closing Date, and such notice  shall be conclusive and binding on the Loan Parties.    Without limiting the generality of the provisions of Section 9.04, 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 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 LIBO Rate Loan Notice requesting onlyany request for a  continuation or conversion of LIBO Rate Loans in accordance with Section 2.02) and each L/C Issuer to  issue each Letter of Credit is subject to the following conditions precedent:    (a) The representations and warranties of each Loan Party contained in Article V or in any  other Loan Document, or which are contained in any document furnished at any time under or in  connection herewith or therewith, shall be true and correct in all material respects on and as of the date of  such Credit Extension, except (i) to the extent that such representations and warranties specifically refer  to an earlier date, in which case they shall be true and correct as of such earlier date, (ii) in the case of  any representation and warranty qualified by materiality, they shall be true and correct in all respects, and  (iii) 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), respectively, of Section 6.01;    (b) No Default or Event of Default shall exist, or would result from such proposed Credit  Extension or from the application of the proceeds thereof;  

 

84        Exhibit 10.2      (c) The Agent and, if applicable, the L/C Issuer or the Swing Line Lender shall have  received a Request for Credit Extension or an updated Borrowing Base Certificate, as applicable, in  accordance with the requirements hereof;    (d) No event or circumstance which could reasonably be expected to result in a Material  Adverse Effect shall have occurred; and    (e) No Overadvance shall result from such Credit Extension.    Each Request for Credit Extension (other than a LIBO Rate Loan Notice requesting only, for the  avoidance of doubt, any request for a continuation or conversion of LIBO Rate Loans in accordance with  Section 2.02) submitted by any Borrower shall be deemed to be a representation and warranty by the  Borrowers 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. The conditions set forth in this Section 4.02 are for the sole  benefit of the Credit Parties but until the Required Lenders otherwise direct the Agent to cease making  Loans and issuing Letters of Credit, the Lenders will fund their Applicable Percentage of all Loans and  participate in all Swing Line Loans and Letters of Credit whenever made or issued, which are requested  by the Lead Borrower and which, notwithstanding the failure of the Loan Parties to comply with the  provisions of this Article IV, agreed to by the Agent, provided, however, the making of any such Loans  or the issuance of any Letters of Credit shall not be deemed a modification or waiver by any Credit Party  of the provisions of this Article IV on any future occasion or a waiver of any rights or the Credit Parties  as a result of any such failure to comply.    ARTICLE V  REPRESENTATIONS AND WARRANTIES    To induce the Credit Parties to enter into this Agreement and to make Loans and to issue Letters  of Credit hereunder, each Loan Party represents and warrants to the Agent and the other Credit Parties  that:    5.01 Existence, Qualification and Power. Each Loan Party and each Subsidiary thereof (a)  is a corporation, limited liability company, partnership or limited partnership, duly incorporated,  organized or formed, validly existing and, where applicable, in good standing under the Laws of the  jurisdiction of its incorporation, organization, or formation (b) has all requisite power and authority and  all requisite governmental licenses, permits, authorizations, consents and approvals to (i) own or lease 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, and (c) is duly qualified and is licensed and, where applicable, 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; except in each case referred to in clause  (b)(i) or (c), to the extent that failure to do so could not reasonably be expected to have a Material  Adverse Effect. Schedule 5.01 annexed hereto sets forth, as of the Closing Date, each Loan Party’s name  as it appears in official filings in its state of incorporation or organization, its state of incorporation or  organization, organization type, organization number, if any, issued by its state of incorporation or  organization, and its federal employer identification number.    5.02 Authorization; No Contravention. The execution, delivery and performance by each  Loan Party of each Loan Document to which such Person is or is to be a party, has been duly authorized  by all necessary corporate or other organizational action, and does not and will not (a) contravene the  terms of any of such Person’s Organization Documents; (b) conflict with or result in any breach,  termination, or contravention of, or constitute a default under, or require any payment to be made under  (i) any Material Contract or any Material Indebtedness to which such Person is a party or affecting such  

 

85        Exhibit 10.2      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; (c) result in or require the creation of any Lien upon any asset of any Loan Party (other than  Liens in favor of the Agent under the Security Documents); or (d) violate any Law.    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, except for (a) the  perfection or maintenance of the Liens created under the Security Documents (including the first priority  nature thereof) or (b) such as have been obtained or made and are in full force and effect.    5.04 Binding Effect. This Agreement has been, and each other Loan Document, when  delivered, 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 to applicable bankruptcy, insolvency, reorganization, moratorium or  other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of  whether considered in a proceeding in equity or at law.    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 the Parent SAC Acquisition LLC 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, of the ParentSAC Acquisition LLC and its Subsidiaries as of the date thereof, including  liabilities for taxes, material commitments and Indebtedness.    (b) The unaudited Consolidated balance sheet of the ParentSAC Acquisition LLC and its  Subsidiaries dated October 29, 2017 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 the financial condition of the Parent SAC Acquisition LLC  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. Since the date of the Audited Financial StatementsDecember 31, 2021, there has been no  event or circumstance, either individually or in the aggregate, that has had or could reasonably be  expected to have a Material Adverse Effect.    (c) To the knowledge of the Lead Borrower, no Internal Control Event exists or has  occurred since the date of the Audited Financial StatementsDecember 31, 2021 that has resulted in or  could reasonably be expected to result in a misstatement in any material respect, (i) in any financial  information delivered or to be delivered to the Agent or the Lenders, (ii) of the Borrowing Base, (iii) of  covenant compliance calculations provided hereunder or (iv) of the assets, liabilities, financial condition  or results of operations of the ParentLead Borrower and its Subsidiaries on a Consolidated basis.    (d) The Consolidated forecasted balance sheet and statements of income and cash flows of  the ParentLead Borrower and its Subsidiaries delivered pursuant to Section 6.01(d) were prepared in  

 

86        Exhibit 10.2      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, the  Loan Parties’ best estimate of its future financial performance.    5.06 Litigation. There are no actions, suits, proceedings, claims or disputes pending or, to  the knowledge of the Loan Parties, threatened, at law, in equity, in arbitration or before any  Governmental Authority, by or against any Loan Party or any of its Subsidiaries or against any of its  properties or revenues that (a) purport to affect or pertain to this Agreement or any other Loan  Document, or any of the transactions contemplated hereby, or (b) except as specifically disclosed in  Schedule 5.06, either individually or in the aggregate, if determined adversely, could reasonably be  expected to have a Material Adverse Effect.    5.07 No Default. No Loan Party or any Subsidiary is in default under or with respect to, or  party to, any Material Contract or any Material Indebtedness. No Default or Event of 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    (a) Each of the Loan Parties and each Subsidiary thereof has good record and marketable  title in fee simple to or valid leasehold interests in, all Real Estate 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. Each of the Loan Parties and each Subsidiary  has good and marketable title to, valid leasehold interests in, or valid licenses to use all personal property  and assets material to the ordinary conduct of its business.    (b) Schedule 5.08(b)(1) sets forth the address (including street address, county and state) of  all Real Estate that is owned by the Loan Parties and each of their Subsidiaries, together with a list of the  holders of any mortgage or other Lien thereon as of the Closing Date. Each Loan Party and each of its  Subsidiaries has good, marketable and insurable fee simple title to the Real Estate owned by such Loan  Party or such Subsidiary, free and clear of all Liens, other than Permitted Encumbrances. Schedule  5.08(b)(2) sets forth the address (including street address, county and state) of all Leases of the Loan  Parties, together with a list of the lessor and its contact information with respect to each such Lease as of  the Closing Date. Each of such Leases is in full force and effect and the Loan Parties are not in default  of the terms thereof.    (c) Schedule 7.01 sets forth a complete and accurate list of all Liens (other than Liens in  favor of Agent) on the property or assets of each Loan Party and each of its Subsidiaries, showing as of  the ClosingAmendment No. 6 Effective Date the lienholder thereof, the principal amount of the  obligations secured thereby and the property or assets of such Loan Party or such Subsidiary subject  thereto. The property of each Loan Party and each of its Subsidiaries is subject to no Liens, other than  Permitted Encumbrances.    (d) Schedule 7.02 sets forth a complete and accurate list of all Investments held by any  Loan Party or any Subsidiary of a Loan Party on the ClosingAmendment No. 6 Effective Date, showing  as of the ClosingAmendment No. 6 Effective Date the amount, obligor or issuer and maturity, if any,  thereof.    (e) Schedule 7.03 sets forth a complete and accurate list of all Indebtedness of each Loan  Party or any Subsidiary of a Loan Party on the ClosingAmendment No. 6 Effective Date, showing as of  the ClosingAmendment No. 6 Effective Date the amount, obligor or issuer and maturity thereof.  

 

87        Exhibit 10.2      5.09 Environmental Compliance    (a) Except as specifically disclosed in Schedule 5.09, no Loan Party or any Subsidiary  thereof (i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any  permit, license or other approval required under any Environmental Law, (ii) has become subject to any  Environmental Liability, (iii) has received notice of any claim with respect to any Environmental  Liability or (iv) knows of any basis for any Environmental Liability, except, in each case, as could not,  individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.    (b) To the knowledge of the Loan Parties, except as otherwise set forth in Schedule 5.09,  none of the properties currently or formerly owned or operated by any Loan Party or any Subsidiary  thereof is listed or proposed for listing on the NPL or on the CERCLIS or any analogous foreign, state or  local list or is adjacent to any such property; there are no and never have been any underground or  above-ground storage tanks or any surface impoundments, septic tanks, pits, sumps or lagoons in which  Hazardous Materials are being or have been treated, stored or disposed on any property currently owned  or operated by any Loan Party or any Subsidiary thereof or, to the knowledge of the Loan Parties, on any  property formerly owned or operated by any Loan Party or Subsidiary thereof; there is no asbestos or  asbestos-containing material on any property currently owned or operated by any Loan Party or  Subsidiary thereof; and Hazardous Materials have not been released, discharged or disposed of on any  property currently or formerly owned or operated by any Loan Party or any Subsidiary thereof.    (c) Except as otherwise set forth on Schedule 5,09, no Loan Party or any Subsidiary thereof  is undertaking, and no Loan Party or any Subsidiary thereof has completed, either individually or  together with other potentially responsible parties, any investigation or assessment or remedial or  response action relating to any actual or threatened release, discharge or disposal of Hazardous Materials  at any site, location or operation, either voluntarily or pursuant to the order of any Governmental  Authority or the requirements of any Environmental Law; and all Hazardous Materials generated, used,  treated, handled or stored at, or transported to or from, any property currently or formerly owned or  operated by any Loan Party or any Subsidiary thereof have been disposed of in a manner not reasonably  expected to result in material liability to any Loan Party or any Subsidiary thereof.    5.10 Insurance. The properties of the Loan Parties and their Subsidiaries are insured with  financially sound and reputable insurance companies which are not Affiliates of the Loan Parties, in such  amounts, with such deductibles and covering such risks (including, without limitation, workmen’s  compensation, public liability, business interruption and property damage insurance) as are customarily  carried by companies engaged in similar businesses and owning similar properties in localities where the  Loan Parties or the applicable Subsidiary operates. Schedule 5.10 sets forth a description of all insurance  maintained by or on behalf of the Loan Parties and their Subsidiaries as of the ClosingAmendment No. 6  Effective Date. Each insurance policy listed on Schedule 5.10 is in full force and effect and all premiums  in respect thereof that are due and payable have been paid.    5.11 Taxes. The Loan Parties and their Subsidiaries have filed all Federal, state and other  material tax returns and reports required to be filed, and have paid all Federal, state and other material  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 being diligently conducted, for which adequate reserves have been provided in  accordance with GAAP, as to which Taxes no Lien has been filed and which contest effectively suspends  the collection of the contested obligation and the enforcement of any Lien securing such obligation.  There is no proposed tax assessment against any Loan Party or any Subsidiary that would, if made, have  a Material Adverse Effect. No Loan Party or any Subsidiary thereof is a party to any tax sharing  agreement.  

 

88        Exhibit 10.2      5.12 ERISA Compliance.    (a) The Lead Borrower, each of its ERISA Affiliates, and each Plan is in compliance in all  material respects with the applicable provisions of ERISA, the Code and other Federal or state Laws.  Each Plan that is intended to qualify under Section 401(a) of the Code has received a favorable  determination letter from the IRS or an application for such a letter is currently being processed by the  IRS with respect thereto and, to the knowledge of the Lead Borrower, nothing has occurred which would  prevent, or cause the loss of, such qualification. The Loan Parties and each ERISA Affiliate have made  all required contributions to each Plan subject to Sections 412 or 430 of the Code and to each  Multiemployer Plan, and no application for a funding waiver or an extension of any amortization period  pursuant to Sections 412 or 430 of the Code has been made with respect to any Plan. No Lien imposed  under the Code or ERISA exists or is likely to arise on account of any Plan or Multiemployer Plan.    (b) There are no pending or, to the knowledge of the Lead Borrower, threatened claims,  actions or lawsuits, or action by any Governmental Authority, with respect to any 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 or is reasonably expected to occur; (ii) no Pension  Plan has any Unfunded Pension Liability; (iii) neither any Loan Party nor any ERISA Affiliate has  incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to any  Pension Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iv) neither  any Loan Party nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and  no event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in  such liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v)  neither any Loan Party nor any ERISA Affiliate has engaged in a transaction that could be subject to  Sections 4069 or 4212(c) of ERISA.    5.13 Subsidiaries; Equity Interests. The Loan Parties have no Subsidiaries other than those  specifically disclosed in Part (a) of Schedule 5.13, which Schedule sets forth the legal name, jurisdiction  of incorporation or formation and authorized Equity Interests of each such Subsidiary. 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 (or a Subsidiary of a Loan Party) in the amounts specified  on Part (a) of Schedule 5.13 free and clear of all Liens except for those created under the Security  Documents. Except as set forth in Schedule 5.13, there are no outstanding rights to purchase any Equity  Interests in any Subsidiary. The Loan Parties have no equity investments in any other corporation or  entity other than those specifically disclosed in Part(b) of Schedule 5.13. All of the outstanding Equity  Interests in the Loan Parties have been validly issued, and are fully paid and non-assessable and are  owned in the amounts specified on Part (c) of Schedule 5.13 free and clear of all Liens except for those  created under the Security Documents. The copies of the Organization Documents of each Loan Party  and each amendment thereto provided pursuant to Section 4.01 are true and correct copies of each such  document, each of which is valid and in full force and effect.    5.14 Margin Regulations; Investment Company Act;    (a) No Loan Party is engaged or will be engaged, 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. None of  the proceeds of the Credit Extensions shall be used directly or indirectly for the purpose of purchasing or  carrying any margin stock, for the purpose of reducing or retiring any Indebtedness that was originally  

 

89        Exhibit 10.2      incurred to purchase or carry any margin stock or for any other purpose that might cause any of the  Credit Extensions to be considered a “purpose credit” within the meaning of Regulations T, U, or X  issued by the FRB.    (b) None of the Loan Parties, any Person Controlling any Loan Party, or any Subsidiary is  or is required to be registered as an “investment company” under the Investment Company Act of 1940.    5.15 Disclosure. Each Loan Party has disclosed to the Agent and the Lenders all agreements,  instruments and corporate or other restrictions to which it or any of its 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 written information  furnished (whether in writing or orally) by or on behalf of any Loan Party to the 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, the Loan Parties represent  only that such information was prepared in good faith based upon assumptions believed to be reasonable  at the time.    5.16 Compliance with Laws. Each of the Loan Parties and each Subsidiary is in compliance  (A) 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 (i) such requirement of Law  or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently  conducted or (ii) the failure to comply therewith, either individually or in the aggregate, could not  reasonably be expected to have a Material Adverse Effect and (B) with Section 10.17 and 10.18.    5.17 Intellectual Property; Licenses, Etc. The Loan Parties and their Subsidiaries own, or  possess the right to use, all of the Intellectual Property, licenses, permits and other authorizations that are  reasonably necessary for the operation of their respective businesses, without conflict with the rights of  any other Person. To the knowledge of the Lead Borrower, no slogan or other advertising device,  product, process, method, substance, part or other material now employed, or now contemplated to be  employed, by any Loan Party or any Subsidiary infringes upon any rights held by any other Person  except as could not reasonably be expected to have a Material Adverse Effect. Except as specifically  disclosed in Schedule 5.17, no claim or litigation regarding any of the foregoing is pending or, to the  knowledge of the Lead Borrower, threatened, which, either individually or in the aggregate, could  reasonably be expected to have a Material Adverse Effect.    5.18 Labor Matters. There are no strikes, lockouts, slowdowns or other material labor  disputes against any Loan Party or any Subsidiary thereof pending or, to the knowledge of any Loan  Party, threatened. The hours worked by and payments made to employees of the Loan Parties comply  with the Fair Labor Standards Act and any other applicable federal, state, local or foreign Law dealing  with such matters except to the extent that any such violation could not reasonably be expected to have a  Material Adverse Effect. No Loan Party or any of its Subsidiaries has incurred any material liability or  obligation under the Worker Adjustment and Retraining Act or similar state Law. All payments due  from any Loan Party and its Subsidiaries, or for which any claim may be made against any Loan Party or  any of its Subsidiaries, on account of wages and employee health and welfare insurance and other  benefits, have been paid or properly accrued in accordance with GAAP as a liability on the books of such  Loan Party. Except as set forth on Schedule 5.18, no Loan Party or any Subsidiary is a party to or bound  by any collective bargaining agreement, management agreement, employment agreement, bonus,  restricted stock, stock option, or stock appreciation plan or agreement or any similar plan, agreement or  

 

90        Exhibit 10.2      arrangement. There are no representation proceedings pending or, to any Loan Party’s knowledge,  threatened to be filed with the National Labor Relations Board, and no labor organization or group of  employees of any Loan Party or any Subsidiary has made a pending demand for recognition. There are no  complaints, unfair labor practice charges, grievances, arbitrations, unfair employment practices charges  or any other claims or complaints against any Loan Party or any Subsidiary pending or, to the knowledge  of any Loan Party, threatened to be filed with any Governmental Authority or arbitrator based on, arising  out of, in connection with, or otherwise relating to the employment or termination of employment of any  employee of any Loan Party or any of its Subsidiaries which could reasonably be expected to have a  Material Adverse Effect. The consummation of the transactions contemplated by the Loan Documents  will not give rise to any right of termination or right of renegotiation on the part of any union under any  collective bargaining agreement to which any Loan Party or any of its Subsidiaries is bound.    5.19 Security Documents.    (a) The Security Agreement creates in favor of the Agent, for the benefit of the Secured  Parties referred to therein, a legal, valid, continuing and enforceable security interest in the Collateral (as  defined in the Security Agreement), the enforceability of which is subject to applicable bankruptcy,  insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to  general principles of equity, regardless of whether considered in a proceeding in equity or at law. The  financing statements, releases and other filings are in appropriate form and have been or will be filed in  the offices specified in Schedule II of the Security Agreement. Upon such filings and/or the obtaining of  “control,” (as defined in the UCC) the Agent will have a perfected Lien on, and security interest in, to  and under all right, title and interest of the grantors thereunder in all Collateral that may be perfected by  filing, recording or registering a financing statement or similar document (including without limitation  the proceeds of such Collateral subject to the limitations relating to such proceeds in the UCC) or by  obtaining control, under the UCC (in effect on the date this representation is made) in each case prior and  superior in right to any other Person subject only to Liens permitted hereunder or under any other Loan  Document.    (b) When the Security Agreement (or a short form thereof) is filed in the United States  Patent and Trademark Office and the United States Copyright Office and when financing statements,  releases and other filings in appropriate form are filed in the offices specified in Schedule II of the  Security Agreement, the Agent shall have a fully perfected Lien on, and security interest in, all right, title  and interest of the applicable Loan Parties in the Intellectual Property (as defined in the Security  Agreement) in which a security interest may be perfected by filing, recording or registering a security  agreement, financing statement or analogous document in the United States Patent and Trademark Office  or the United States Copyright Office, as applicable, in each case prior and superior in right to any other  Person (it being understood that subsequent recordings in the United States Patent and Trademark Office  and the United States Copyright Office may be necessary to perfect a Lien on registered trademarks,  trademark applications and copyrights acquired by the Loan Parties after the Closing Date).    5.20 Solvency. After giving effect to the transactions contemplated by this Agreement, and  before and after giving effect to each Credit Extension, the Loan Parties, on a Consolidated basis, are  Solvent. No transfer of property has been or will be made by any Loan Party and no obligation has been  or will be incurred by any Loan Party in connection with the transactions contemplated by this  Agreement or the other Loan Documents with the intent to hinder, delay, or defraud either present or  future creditors of any Loan Party.    5.21 Deposit Accounts; Credit Card Arrangements.  

 

91        Exhibit 10.2      (a) Annexed hereto as Schedule 5.21(a) is a list of all Deposit Accounts maintained by the  Loan Parties as of the ClosingAmendment No. 6 Effective Date, which Schedule includes, with respect to  each Deposit Account (i) the name and address of the depository; (ii) the account number(s) maintained  with such depository; (iii) a contact person at such depository; and (iv) the identification of each Cash  Management Bank.    (b) Annexed hereto as Schedule 5.21(b) is a correct and complete list of all of the Credit  Card Agreements and all other agreements, documents and instruments existing on the  ClosingAmendment No. 6 Effective Date between or among any Loan Party, the Credit Card Issuers, the  Credit Card Processors and any of their Affiliates. The Credit Card Agreements constitute all of such  agreements necessary for each Borrower to operate its business as presently conducted with respect to  credit cards and debit cards and no Credit Card Receivables of any Borrower arise from purchases by  customers of Inventory with credit cards or debit cards, other than those which are issued by Credit Card  Issuers with whom such Borrower has entered into one of the Credit Card Agreements set forth on  Schedule 5.21(b) hereto or with whom Borrower has entered into a Credit Card Agreement in accordance  with Section 5.21(b) hereof. Each of the Credit Card Agreements constitutes the legal, valid and binding  obligations of the applicable Borrower that is party thereto and to the best of eachsuch Loan Party’s  knowledge, the other parties thereto, is enforceable against such Borrower in accordance with theirits  respective terms and is in full force and effect. No material default or material event of default, or act,  condition or event which after notice or passage of time or both, would constitute a material default or a  material event of default under any of the Credit Card Agreements (other than any Credit Card  Agreement with a Credit Card Issuer or Credit Card Processor where the sales using the applicable card  are less than ten (10%) percent of all such sales in the immediately preceding Fiscal Year) exists or has  occurred that would entitle the other party thereto to suspend, withhold or reduce amounts that would  otherwise be payable to a Borrower. Each Borrower and the other parties thereto have complied in all  material respects with all of the terms and conditions of the Credit Card Agreements (other than any  Credit Card Agreement with a Credit Card Issuer or Credit Card Processor where the sales using the  applicable card are less than ten (10%) percent of all such sales in the immediately preceding Fiscal  Year) to the extent necessary for such Borrower to be entitled to receive all payments thereunder.  Borrowers have delivered, or caused to be delivered to the Agent, true, correct and complete copies of all  of the Credit Card Agreements.  5.22 Brokers. No broker or finder brought about the obtaining, making or closing of the  Loans or transactions contemplated by the Loan Documents, and no Loan Party or Affiliate thereof has  any obligation to any Person in respect of any finder’s or brokerage fees in connection therewith.    5.23 Customer and Trade Relations. There exists no actual or, to the knowledge of any  Loan Party, threatened, termination or cancellation of, or any material adverse modification or change in  the business relationship of any Loan Party with any supplier material to its operations which could  reasonably be expected to have a Material Adverse Effect.    5.24 Material Contracts. Schedule 5.24 sets forth all Material Contracts to which any Loan  Party is a party or is bound as of the Closing Date. The Loan Parties have delivered true, correct and  complete copies of such Material Contracts to the Agent on or before the Closing Date. The Loan Parties  are not in breach or in default in any material respect of or under any Material Contract and have not  received any notice of the intention of any other party thereto to terminate any Material Contract.    5.25 Casualty. Neither the businesses nor the properties of any Loan Party or any of its  Subsidiaries are affected by any fire, explosion, accident, strike, lockout or other labor dispute, drought,  storm, hail, earthquake, embargo, act of God or of the public enemy or other casualty (whether or not  covered by insurance) that, either individually or in the aggregate, could reasonably be expected to have a  Material Adverse Effect.  

 

92        Exhibit 10.2      5.26 OFAC/Sanctions. No Loan Party nor any of its Subsidiaries is in violation of any  Sanctions. No Loan Party nor any of its Subsidiaries nor, to the knowledge of such Loan Party, any  director, officer, employee, agent or Affiliate of such Loan Party or such Subsidiary (a) is a Sanctioned  Person or a Sanctioned Entity, (b) has any assets located in Sanctioned Entities, or (c) derives revenues  from investments in, or transactions with Sanctioned Persons or Sanctioned Entities. Each of the Loan  Parties and its Subsidiaries has implemented and maintains in effect policies and procedures designed to  ensure compliance by the Loan Parties and their Subsidiaries and their respective directors, officers,  employees, agents and Affiliates with the Anti-corruption Laws. Each of the Loan Parties and its  Subsidiaries, and to the knowledge of each such Loan Party, each director, officer, employee, agent and  Affiliate of each such Loan Party and each such Subsidiary, is in compliance with the Anti-corruption  Laws in all material respects. No proceeds of any Loan made or Letter of Credit issued hereunder will be  used to fund any operations in, finance any investments or activities in, or make any payments to, a  Sanctioned Person or a Sanctioned Entity, or otherwise used in any manner that would result in a  violation of any applicable sanctionSanction by any Person (including any Credit Party or other  individual or entity participating in any transaction).    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 (other than contingent indemnification obligations for which  a claim has not been asserted) , or any Letter of Credit which has not been Cash Collateralized shall  remain outstanding, the Loan Parties 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 Agent, in form and detail reasonably satisfactory  to the Agent:    (a) as soon as available, but in any event within ninety (90) days after the end of each Fiscal  Year of the ParentLead Borrower (commencing with the Fiscal Year ended 2017), a Consolidated  balance sheet of the ParentLead Borrower and its Subsidiaries as at the end of such Fiscal Year, and the  related consolidated statements of income or operations, Shareholders’ Equity and cash flows for such  Fiscal Year, setting forth in each case in comparative 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 unqualified opinion of a Registered Public Accounting Firm of nationally  recognized standing, 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;    (b) as soon as available, but in any event within forty-five (45) days after the end of each of  the first three (3) Fiscal Quarters of each Fiscal Year of the ParentLead Borrower (commencing with the  Fiscal Quarter ended April 29, 2018), a Consolidated balance sheet of the ParentLead Borrower and its  Subsidiaries as at the end of such Fiscal Quarter, and the related consolidated statements of income or  operations, Shareholders’ Equity and cash flows for such Fiscal Quarter and for the portion of the  ParentLead Borrower’s Fiscal Year then ended, setting forth in each case in comparative form the figures  for (A) such period set forth in the projections delivered pursuant to Section 6.01(d) hereof, (B) the  corresponding Fiscal Quarter of the previous Fiscal Year and (C) the corresponding portion of the  previous Fiscal Year, all in reasonable detail, such Consolidated statements to be certified by a  Responsible Officer of the Lead Borrower as fairly presenting the financial condition, results of  operations, Shareholders’ Equity and cash flows of the ParentLead Borrower and its Subsidiaries as of  the end of such Fiscal Quarter in accordance with GAAP, subject only to normal year-end audit  adjustments and the absence of footnotes; and  

 

93        Exhibit 10.2      (c) as soon as available, but in any event within thirty (30) days after the end of each of the  Fiscal Months of each Fiscal Year of the ParentLead Borrower (commencing with the Fiscal Month  ended November 30, 2017), or forty-five (45) days after the end of each Fiscal Month that is also the end  of a Fiscal Quarter, a consolidated balance sheet of the ParentLead Borrower and its Subsidiaries as at  the end of such Fiscal Month, and the related consolidated statements of income or operations,  Shareholders’ Equity and cash flows for such Fiscal Month, and for the portion of the ParentLead  Borrower’s Fiscal Year then ended, setting forth in each case in comparative form the figures for (A)  such period set forth in the projections delivered pursuant to Section 6.01(d) hereof, (B) the  corresponding Fiscal Month of the previous Fiscal Year and (C) the corresponding portion of the  previous Fiscal Year, all in reasonable detail, such consolidated statements to be certified by a  Responsible Officer of the Lead Borrower as fairly presenting the financial condition, results of  operations, Shareholders’ Equity and cash flows of the ParentLead Borrower and its Subsidiaries as of  the end of such Fiscal Month in accordance with GAAP, subject only to normal year-end audit  adjustments and the absence of footnotes; and    (d) as soon as available, but in any event not later than the end of each Fiscal Year of the  ParentLead Borrower, forecasts prepared by management of the Lead Borrower, in form reasonably  satisfactory to the Agent, of consolidated balance sheets and statements of income or operations and cash  flows of the ParentLead Borrower and its Subsidiaries and Excess Availability and the Borrowing Base,  in each case on a monthly basis for the immediately following Fiscal Year (including the Fiscal Year in  which the Maturity Date occurs), and as soon as available, any significant revisions to such forecast with  respect to such Fiscal Year.    6.02 Certificates; Other Information. Deliver to the Agent, in form and detail satisfactory  to the Agent:    (a) concurrently with the delivery of the financial statements referred to in Sections 6.01(a),  6.01(b) and 6.01(c) (commencing with the delivery of the financial statements for the Fiscal Month  ended on February 3, 2018), a duly completed Compliance Certificate signed by a Responsible Officer of  the Lead Borrower, and in the event of any change in generally accepted accounting principles used in  the preparation of such financial statements, the Lead Borrower shall also provide: (i) a statement of  reconciliation conforming such financial statements to GAAP and (ii) a copy of management’s  discussion and analysis with respect to such financial statements;    (b) onby no later than the Thursdaytenth (10th) day of each weekFiscal Month (or, if such  day is not a Business Day, on the next succeeding Business Day), a Borrowing Base Certificate showing  the Borrowing Base as of the close of business as of the last day of the immediately preceding Fiscal  Month (provided that the value applied to the Eligible Inventory set forth in each Borrowing Base  Certificate shall be the appraised value set forth in the most recent appraisal obtained by the Agent  pursuant to Section 6.10 hereof for the applicable Fiscal Month to which such Borrowing Base  Certificate relates), each Borrowing Base Certificate to be certified as complete and correct by a  Responsible Officer of the Lead Borrower; provided that at any time an Accelerated Borrowing Base  Delivery Event has occurred and is continuing, at the election of the Agent, such Borrowing Base  Certificate shall be delivered on Thursday of each week (or, if Thursday is not a Business Day, on the  next succeeding Business Day), a Borrowing Base Certificate showing the Borrowing Base as of the  close of business as of the immediately preceding Sunday, each Borrowing Base Certificate to be  certified as complete and correct by a Responsible Officer of the Lead Borrower;    (c) promptly upon receipt, 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  any Loan Party by its Registered Public Accounting Firm in connection with the accounts or books of the  

 

94        Exhibit 10.2      Loan Parties or any Subsidiary, or any audit of any of them, including, without limitation, specifying any  Internal Control Event;    (d) 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 the Loan Parties, and copies of all  annual, regular, periodic and special reports and registration statements which any Loan Party may file or  be required to file with the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934 or  with any national securities exchange, and in any case not otherwise required to be delivered to the Agent  pursuant hereto;    (e) the financial and collateral reports described on Schedule 6.02 hereto, at the times set  forth in such Schedule;    (f) as soon as available, but in any event within thirty (30) days after the end of each Fiscal  Year of the Loan Parties, a report summarizing the insurance coverage (specifying type, amount and  carrier) in effect for each Loan Party and its Subsidiaries and containing such additional information as  the Agent, or any Lender through the Agent, may reasonably specifyrequest in writing;    (g) promptly after the Agent’s request therefor, copies of all Material Contracts and  documents evidencing Material Indebtedness; and    (h) promptly, such additional information regarding the business affairs, financial condition  or operations of any Loan Party or any Subsidiary, or compliance with the terms of the Loan Documents,  as the Agent or any Lender may from time to time reasonably request.    Documents required to be delivered pursuant to Section 6.01(a), (b), or (c) 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 the  Lead Borrower posts such documents, or provides a link thereto on the Lead Borrower’s website on the  Internet at the website address listed on Schedule 10.02; or (ii) on which such documents are posted on  the Lead Borrower’s behalf on an Internet or intranet website, if any, to which each Lender and the  Agent have access (whether a commercial, third-party website or whether sponsored by the Agent);  provided that: (i) the Lead Borrower shall deliver paper copies ofor on which such documents to the  Agent or any Lender that requests the Lead Borrower to deliver such paper copies until a written request  to cease delivering paper copies is given by the Agent or such Lender and (ii)are filed for public  availability on the SEC’s Electronic Data Gathering and Retrieval System; provided, that, the Lead  Borrower shall notify the Agent and each Lender (by telecopier or electronic mail) of the posting of any  such documents and provide to the Agent by electronic mail electronic versions (i.e., soft copies) of such  documents. Notwithstanding anything contained herein, in every instance the Lead Borrower shall be  required to provide paper copies of the Compliance Certificates required by Section 6.02(b) to the Agent.  The Agent shall have no obligation to request the delivery or to maintain copies of the documents  referred to above, and in any event shall have no responsibility to monitor compliance by the Loan  Parties with any such request for delivery, and each Lender shall be solely responsible for requesting  delivery to it or maintaining its copies of such documents.    The Loan Parties hereby acknowledge that (a) the Agent and/or the Arranger will make available  to the Lenders and the L/C Issuer materials and/or information provided by or on behalf of the Loan  Parties hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on IntraLinks  or another similar electronic system (the “Platform”) and (b) certain of the Lenders may be “public-side”  Lenders (i.e., Lenders that do not wish to receive material non-public information with respect to the  Loan Parties or their securities) (each, a “Public Lender”). The Loan Parties hereby agree that they will  

 

95        Exhibit 10.2      use commercially reasonable efforts to identify that portion of the Borrower Materials that may be  distributed to the Public Lenders and that (i) all such Borrower Materials shall be clearly and  conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall  appear prominently on the first page thereof; (ii) by marking Borrower Materials “PUBLIC,” the Loan  Parties shall be deemed to have authorized the Agent, the Arranger, the L/C Issuer and the Lenders to  treat such Borrower Materials as not containing any material non-public information (although it may be  sensitive and proprietary) with respect to the Loan Parties or their securities for purposes of United States  Federal and state securities laws (provided, that, to the extent such Borrower Materials constitute  Information, they shall be treated as set forth in Section 10.07); (iii) all Borrower Materials marked  “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public  Investor”; and (iv) the Agent and the Arranger shall be entitled to treat any Borrower Materials that are  not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated  “Public Investor.”    6.03 Notices. Promptly notify the Agent of:    (a) the occurrence of any Default or Event of Default;    (b) any matter that has resulted or could reasonably be expected to result in a Material  Adverse Effect;    (c) any breach or non-performance of, or any default under,with respect to, a material term  of a Material Contract or with respect to Material Indebtedness of any Loan Party or any Subsidiary  thereof;    (d) any dispute, litigation, investigation, proceeding or suspension between any Loan Party  or any Subsidiary thereof and any Governmental Authority or the commencement of, or any material  development in, any litigation or proceeding affecting any Loan Party or any Subsidiary thereof,  including pursuant to any applicable Environmental Laws which involves an amount in excess of  $2,000,000 or otherwise could reasonably be expected to result in a Material Adverse Effect;    (e) the occurrence of any ERISA Event;    (f) any material change in accounting policies or financial reporting practices by any Loan  Party or any Subsidiary thereof;    (g) unless previously disclosed pursuant to Section 6.02(d), any change in any Loan Party’s  senior executive officers;    (h) unless previously disclosed pursuant to Section 6.02(d), the discharge by any Loan Party  of its present Registered Public Accounting Firm or any withdrawal or resignation by such Registered  Public Accounting Firm;    (i) unless previously disclosed pursuant to Section 6.02(d), any collective bargaining  agreement or other labor contract to which a Loan Party becomes a party, or the application for the  certification of a collective bargaining agent;    (j) the filing of any Lien for unpaid Taxes (in an amount equal to or in excess of  $1,000,000, either singly or in the aggregate), against any Loan Party;    (k) any casualty or other insured damage to any material portion of the Collateral or the  commencement of any action or proceeding for the taking of any interest in a material portion of the  

 

96        Exhibit 10.2      Collateral under power of eminent domain or by condemnation or similar proceeding or if any material  portion of the Collateral is damaged or destroyed;    (l) any failure by any Loan Party to pay rent or such other amounts due at any distribution  centers or warehouses.    Each notice pursuant to this Section shall be accompanied by a statement of a Responsible Officer of the  Lead Borrower setting forth details of the occurrence referred to therein and stating what action the Lead  Borrower 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, (b) all lawful claims (including, without limitation, claims of  landlords, warehousemen, customs brokers, freight forwarders, consolidators and carriers) 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, where (a) the validity or amount thereof is being  contested in good faith by appropriate proceedings, (b) such Loan Party has set aside on its books  adequate reserves with respect thereto in accordance with GAAP, (c) such contest effectively suspends  collection of the contested obligation and enforcement of any Lien securing such obligation, (d) no Lien  has been filed with respect thereto and (ed) the failure to make payment pending such contest could not  reasonably be expected to result in a Material Adverse Effect. Nothing contained herein shall be deemed  to limit the rights of the Agent with respect to determining Reserves pursuant to this Agreement.    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 or  formation 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 Intellectual Property, except to the extent  such Intellectual Property is no longer used or useful in the conduct of the business of the Loan Parties.    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; and (b) make all necessary repairs thereto and renewals and  replacements thereof except, in each case, where the failure to do so could not reasonably be expected to  have a Material Adverse Effect.    6.07 Maintenance of Insurance.    (a) Maintain with financially sound and reputable insurance companies not Affiliates of the  Loan Parties, 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 and operating in the same  or similar locations or as is required by applicable Law, of such types and in such amounts as are  customarily carried under similar circumstances by such other Persons and as are reasonably acceptable  to the Agent.    (b) Cause fire and extended coverage policies maintained with respect to any Collateral to  be endorsed or otherwise amended to include (i) a non-contributing mortgage clause (regarding  

 

97        Exhibit 10.2      improvements to Real Estate) and lenders’ loss payable clause (regarding personal property), in form and  substance reasonably satisfactory to the Agent, which endorsements or amendments shall provide that the  insurer shall pay all proceeds otherwise payable to the Loan Parties under the policies directly to the  Agent, (ii) a provision to the effect that none of the Loan Parties, Credit Parties or any other Person shall  be a co-insurer and (iii) such other provisions as the Agent may reasonably require from time to time to  protect the interests of the Credit Parties.    (c) Cause commercial general liability policies to be endorsed to name the Agent as an  additional insured.    (d) Cause business interruption policies to name the Agent as a loss payee and to be  endorsed or amended to include (i) a provision to the effect that none of the Loan Parties, the Agent or  any other party shall be a co-insurer and (ii) such other provisions as the Agent may reasonably require  from time to time to protect the interests of the Credit Parties.    (e) Cause each such policy referred to in this Section 6.07 to also provide that it shall not be  canceled, modified or not renewed (i) by reason of nonpayment of premium except upon not less than ten  (10) days’ prior written notice thereof by the insurer to the Agent (giving the Agent the right to cure  defaults in the payment of premiums) or (ii) for any other reason except upon not less than thirty (30)  days’ prior written notice thereof by the insurer to the Agent.    (f) Deliver to the Agent, prior to the cancellation, modification or non-renewal of any such  policy of insurance, a copy of a renewal or replacement policy (or other evidence of renewal of a policy  previously delivered to the Agent, including an insurance binder) together with evidence satisfactory to  the Agent of payment of the premium therefor.    (g) Maintain for themselves and their Subsidiaries, a Directors and Officers insurance  policy, and a “Blanket Crime” policy including employee dishonesty, forgery or alteration, theft,  disappearance and destruction, robbery and safe burglary, property, and computer fraud coverage with  responsible companies in such amounts as are customarily carried by business entities engaged in similar  businesses similarly situated, and will upon request by the Agent furnish the Agent certificates  evidencing renewal of each such policy.    (h) Permit any representatives that are designated by the Agent to inspect the insurance  policies maintained by or on behalf of the Loan Parties and to inspect books and records related thereto  and any properties covered thereby.    None of the Credit Parties, or their agents or employees shall be liable for any loss or damage insured by  the insurance policies required to be maintained under this Section 6.07. Each Loan Party shall look  solely to its insurance companies or any other parties other than the Credit Parties for the recovery of  such loss or damage and such insurance companies shall have no rights of subrogation against any Credit  Party or its agents or employees. If, however, the insurance policies do not provide waiver of  subrogation rights against such parties, as required above, then the Loan Parties hereby agree, to the  extent permitted by law, to waive their right of recovery, if any, against the Credit Parties and their  agents and employees. The designation of any form, type or amount of insurance coverage by any Credit  Party under this Section 6.07 shall in no event be deemed a representation, warranty or advice by such  Credit Party that such insurance is adequate for the purposes of the business of the Loan Parties or the  protection of their properties.    6.08 Compliance with Laws. Comply (a) 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  

 

98        Exhibit 10.2      in such instances in which (i) such requirement of Law or order, writ, injunction or decree is being  contested in good faith by appropriate proceedings diligently conducted and with respect to which  adequate reserves have been set aside and maintained by the Loan Parties in accordance with GAAP; (ii)  such contest effectively suspends enforcement of the contested Laws, and (iii) the failure to comply  therewith could not reasonably be expected to have a Material Adverse Effect, and (b) with Sections  10.17 and 10.18.    6.09 Books and Records; Accountants.    (a) Maintain proper books of record and account, in which full, true and correct entries in  conformity with GAAP consistently applied shall be made of all financial transactions and matters  involving the assets and business of the Loan Parties or such Subsidiary, as the case may be; and (ii)  maintain such books of record and account in material conformity with all applicable requirements of any  Governmental Authority having regulatory jurisdiction over the Loan Parties or such Subsidiary, as the  case may be.    (b) At all times retain a Registered Public Accounting Firm which is reasonably satisfactory  to the Agent and shall instruct such Registered Public Accounting Firm to cooperate with, and be  available to, the Agent or its representatives to discuss the Loan Parties’ financial performance, financial  condition, operating results, controls, and such other matters, within the scope of the retention of such  Registered Public Accounting Firm, as may be raised by the Agent.    6.10 Inspection Rights.    (a) Permit representatives and independent contractors of the Agent 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  Registered Public Accounting Firm, and permit the Agent or professionals (including investment  bankers, consultants, accountants, and lawyers) retained by the Agent to conduct evaluations of the Loan  Parties’ business plan, forecasts and cash flows, all at the expense of the Loan Parties and at such  reasonable times during normal business hours and as often as may be reasonably desired, upon  reasonable advance notice to the Lead Borrower; provided, that, that when a Default or Event of Default  exists the Agent (or any of its representatives or independent contractors) may do any of the foregoing at  the expense of the Loan Parties at any time during normal business hours and without advance notice.    (b) Upon the request of the Agent after reasonable prior notice, permit the Agent or  professionals (including investment bankers, consultants, accountants, and lawyers) retained by the  Agent to conduct commercial finance examinations and other evaluations, including, without limitation,  of (i) the Lead Borrower’s practices in the computation of the Borrowing Base and (ii) the assets  included in the Borrowing Base and related financial information such as, but not limited to, sales, gross  margins, payables, accruals and reserves. The Loan Parties shall pay the fees and expenses of the Agent  and such professionals with respect to such examinations and evaluations,; provided, that, the Agent may  conduct, or cause to be conducted, (A) not more than two(A) one (21) commercial finance  examinationsexamination each Fiscal Year at the expense of Borrowers so long as Excess Availability is  not lessequal to or greater than the greater of thirty-fiveamount equal to fifty percent (35.050.0%) of the  Loan Cap or $5,000,000 at any timeall times during such Fiscal Year, or (B) iftwo (2) commercial  finance examinations during each Fiscal Year at the expense of Borrowers, in the event that Excess  Availability is less than the greater of such amounts during such Fiscal Year, not more thanamount equal  to fifty percent (50.0%) of the Loan Cap but greater than or equal to the amount equal to thirty-five  percent (35.0%) of the Loan Cap, and (C) three (3) commercial finance examinations in suchduring each  Fiscal Year at the expense of Borrowers in the event that Excess Availability is less than the amount  

 

99        Exhibit 10.2      equal to thirty-five percent (35.0%) of the Loan Cap at any time during such Fiscal Year.  Notwithstanding the foregoing, the Agent may cause additional commercial finance examinations to be  undertaken (i) as it in its Permitted Discretion deems necessary or appropriate, at its own expense or, (ii)  if required by Law or if a Default oran Event of Default shall have occurred and be continuing, at the  expense of the Loan Parties and without advance notice.    (c) Upon the request of the Agent after reasonable prior notice, permit the Agent or  professionals (including appraisers) retained by the Agent to conduct appraisals of the Collateral,  including, without limitation, the assets included in the Borrowing Base. The Loan Parties shall pay the  fees and expenses of the Agent and such professionals with respect to such appraisals, provided, that, the  Agent may conduct, or cause to be conducted, (A) not more than two(A) one (21) inventory  appraisalsappraisal each Fiscal Year at the expense of Borrowers so long as Excess Availability is  notequal to or greater than the amount equal to fifty percent (50.0%) of the Loan Cap at all times during  such Fiscal Year, (B) two (2) inventory appraisals during each Fiscal Year at the expense of Borrowers,  in the event that Excess Availability is less than the amount equal to fifty percent (50.0%) of the Loan  Cap but greater ofthan or equal to the amount equal to thirty-five percent (35.0%) of the Loan Cap or  $5,000,000 at any time during such Fiscal Year, orand (BC) if Excess Availability is less than the greater  of such amounts during such Fiscal Year, not more than three (3) inventory appraisals in suchthree (3)  commercial finance examinations during each Fiscal Year at the expense of Borrowers in the event that  Excess Availability is less than the amount equal to thirty-five percent of the Loan Cap at any time  during such Fiscal Year. Notwithstanding the foregoing, the Agent may cause additional appraisals to be  undertaken (i) as it in its Permitted Discretion deems necessary or appropriate, at its own expense or, (ii)  if required by Law or if a Default oran Event of Default shall have occurred and be continuing, at the  expense of the Loan Parties and without advance notice.    6.11 Use of Proceeds. Use the proceeds of the Credit Extensions (a) to finance the  acquisition of working capital assets of the Borrowers, including the purchase of inventory and  equipment, in each case in the ordinary course of business, (b) to finance Capital Expenditures of the  Borrowers, and (c) for general corporate purposes of the Loan Parties, in each case to the extent  expressly permittednot prohibited under applicable Law and the Loan Documents.    6.12 Additional Loan Parties. Notify the Agent at the time that any Person becomes a  Subsidiary, and in each case promptly thereafter (and in any event within fifteenforty five (1545) days)  (or such later date as may from time to time be approved by the Agent), cause any such Person (a) which  is not a CFC, to (i) become a Loan Party by executing and delivering to the Agent a Joinder to this  Agreement or a Joinder to the Facility Guaranty or such other documents as the Agent shall deem  appropriate for such purpose, (ii) grant a Lien to the Agent on such Person’s assets of the same type that  constitute Collateral to secure the Obligations, and (iii) deliver to the Agent documents of the types  referred to in clauses (iii) and (iv) of Section 4.01(a) and favorable opinions of counsel to such Person  (which shall cover, among other things, the legality, validity, binding effect and enforceability of the  documentation referred to in clause (a)), and (b) if any Equity Interests or Indebtedness of such Person  are owned by or on behalf of any Loan Party, to pledge such Equity Interests and promissory notes  evidencing such Indebtedness (except that, if such Subsidiary is a CFC that is not joined as a Loan Party,  the Equity Interests of such Subsidiary to be pledged may be limited to sixty-five percent (65%) of the  outstanding voting Equity Interests of such Subsidiary and one hundred percent (100%) of the non-voting  Equity Interests of such Subsidiary and such time period may be extended based on local law or  practice), in each case in form, content and scope reasonably satisfactory to the Agent. In no event shall  compliance with this Section 6.12 waive or be deemed a waiver or Consent to any transaction giving rise  to the need to comply with this Section 6.12 if such transaction was not otherwise expressly permitted by  this Agreement or constitute or be deemed to constitute, with respect to any Subsidiary, an approval of  such Person as a Borrower or permit the inclusion of any acquired assets in the computation of the  Borrowing Base.  

 

100        Exhibit 10.2      6.13 Cash Management.    (a) Each Loan Party shall establish and maintain, at its expense, Deposit Accounts and cash  management services of a type and on terms, and with the banks, set forth on Schedule 5.21(a) and,  subject to Section 6.13(d) below, such other banks as such Loan Party may hereafter select (such other  banks, together with the banks set forth on Schedule 5.21(a), collectively, the “Cash Management Banks”  and individually, a “Cash Management Bank”). Each Loan Party shall deliver, or cause to be delivered  to Agent, (i) a Control Agreement with respect to each of its Deposit Accounts duly authorized, executed  and delivered by each Cash Management Bank where a Deposit Account is maintained, the applicable  Loan Party and Agent; provided, that, (A) Loan Parties shall not be required to deliver a Control  Agreement with a Cash Management Bank as to any Deposit Account that is an Excluded Account, and  (B) Loan Parties shall not be required to deliver a Control Agreement with a Cash Management Bank as  to any Deposit Account that is exclusively used for receiving deposits from the Stores (other than any  such Deposit Account at Wells Fargo which shall each be subject to a Control Agreement), and (ii)  satisfactory evidence that the Credit Card Notifications as duly authorized, executed and delivered by the  applicable Loan Party has been delivered to each Credit Card Issuer or Credit Card Processor.    (b) Each such Control Agreement shall provide, among other things, that (i) the Cash  Management Bank will comply with any instructions originated by Agent directing the disposition of the  funds in such Deposit Account without further consent by the applicable Loan Party, (ii) the Cash  Management Bank waives, subordinates, and agrees not to exercise any rights of setoff or recoupment or  any other claim against the applicable Deposit Account other than for payment of its service fees and  other charges directly related to the administration of such Deposit Account and for returned checks or  other items of payment, (iii) with respect to each Collection Account (other than the Concentration  Accounts) the Cash Management Bank will transfer each day by wire transfer or other electronic funds  transfer all funds in such account to a Concentration Account and with respect to each Concentration  Account, the Cash Management Bank will transfer each day by wire transfer or other electronic funds  transfer all funds in such account to the Agent Payment Account, provided, that, such Cash Management  Bank shall not be requireddirected to transfer funds to the Agent Payment Account prior to the date after  the Amendment No. 2 Effective Date that Agent has received either (A) a request for a Loan (whether a  Committed Loan or Swing Line Loan) or (B) a request for a Letter of Credit or Letters of Credit in an  amount or amounts which individually or in the aggregate for all such Letters of Credit exceed ten  percent (10%) of the Loan Cap or any request or requests which would cause the aggregate amount of  Letters of Credit outstanding to exceed such amountuntil such time as a Cash Dominion Event has  occurred. All payments made to the Concentration Accounts, whether in respect of the Accounts, as  proceeds of Inventory or other Collateral or otherwise shall be treated as payments to Agent in respect of  the Obligations and therefore shall constitute the property of Agent and Lenders to the extent of the then  outstanding Obligations. All funds received in the Agent Payment Account shall be applied to the  Obligations as provided in accordance with Section 8.03 of this Agreement to the extent then due and  payable.    (c) Each Borrower shall direct all Credit Card Processors, Credit Card Issuers and other  obligors in respect of any amounts payable to Borrowers to make payment of all such amounts to the  Collection Accounts pursuant to a Credit Card Notification which shall have been executed on behalf of  such Loan Party and delivered to such Loan Party’s Credit Card Issuers and Credit Card Processors,  including, but not limited to, the Credit Card Issuers and Credit Card Processors listed on Schedule  5.21(b). In addition, each Borrower shall deposit, or cause to be deposited, any other all cash, checks,  notes, instruments, and other items of payment, in whatever form, that it receives to the Collection  Accounts. In the event that, notwithstanding the provisions of this Section 6.13, any Loan Party receives  or otherwise has dominion and control of any such proceeds or collections, such proceeds and collections  shall be held in trust by such Loan Party for the Agent, shall not be commingled with any of such Loan  

 

101        Exhibit 10.2      Party’s other funds or deposited in any account of such Loan Party and shall, not later than the Business  Day after receipt thereof, be deposited into a Collection Account or a Concentration Account. Upon not  less than five (5) Business Days’ prior written notice to the Agent, Lead Borrower may amend Schedule  5.21(b) to add or delete a Credit Card Agreement or any other agreement between or among any Loan  Party, on the one hand, and a Credit Card Issuer or a Credit Card Processor (or any of their Affiliates, as  the case may be), on the other.    (d) So long as no Event of Default has occurred and is continuing, upon not less than five  (5) Business Days’ prior written notice to the Agent, Loan Parties may amend Schedule 5.21(a) to add or  replace a Deposit Account or Cash Management Bank or Securities Account or securities intermediary  and shall upon such addition or replacement provide to the Agent an amended Schedule 5.21(a);  provided, that, (i) such prospective Cash Management Bank or securities intermediary, as the case may  be, shall be reasonably satisfactory to Agent, and (ii) prior to the time of the opening of such Deposit  Account or Securities Account (other than an Excluded Account), the applicable Loan Party and such  prospective Cash Management Bank or securities intermediary shall have executed and delivered to  Agent a Control Agreement (including any acknowledgement and agreement of the Cash Management  Bank or securities intermediary with respect thereto). Each Loan Party shall close any of its Deposit  Accounts (and establish replacement Deposit Accounts in accordance with the foregoing sentence) as  promptly as practicable and in any event within forty-five (45) days after notice from Agent that the  operating performance, funds transfer, or procedures or performance of the Cash Management Bank with  respect to Deposit Accounts or the Agent’s liability under any Control Agreement with such Cash  Management Bank is no longer satisfactory in the Agent’s reasonable judgment.    (e) Each Loan Party shall obtain an authenticated Control Agreement from each issuer of  uncertificated securities, securities intermediary, or commodities intermediary issuing or holding any  financial assets or commodities to or for any Loan Party, or maintaining a Securities Account for such  Loan Party and with respect to any other investment property and no Loan Party will make, acquire, or  permit to exist Permitted Investments consisting of cash, Cash Equivalents, or amounts credited to  Deposit Accounts or Securities Accounts unless Agent has received a Control Agreement duly  authorized, executed and delivered by the applicable bank or securities intermediary where such cash,  Cash Equivalents, Deposit Account or Securities Account are maintained with respect thereto, provided,  that, the Loan Parties shall not be required to deliver a Control Agreement with respect to any Excluded  Account.    (f) Upon the request of the Agent, the Loan Parties shall cause bank statements and/or other  reports to be delivered to the Agent not less often than monthly, accurately setting forth all amounts  deposited in each Deposit Account to ensure the proper transfer of funds as set forth above.    6.14 Information Regarding the Collateral.    (a) Furnish to the Agent at least thirty (30) days prior written notice of any change in: (i)  any Loan Party’s name or in any trade name used to identify it in the conduct of its business or in the  ownership of its properties; (ii) the location of any Loan Party’s chief executive office, its principal place  of business, any office in which it maintains books or records relating to Collateral owned by it or any  office or facility at which Collateral owned by it is located (including the establishment of any such new  office or facility); (iii) any Loan Party’s organizational structure or jurisdiction of incorporation or  formation (provided, that, in no event will any Loan Party change its jurisdiction of organization to a  jurisdiction outside of the United States); or (iv) any Loan Party’s Federal Taxpayer Identification  Number or organizational identification number assigned to it by its state of organization. The Loan  Parties agree not to effect or permit any change referred to in the preceding sentence unless all filings  have been made under the UCC or otherwise that are required in order for the Agent to continue at all  

 

102        Exhibit 10.2      times following such change to have a valid, legal and perfected first priority security interest (subject as  to priority, to Permitted LiensEncumbrances) in all the Collateral for its own benefit and the benefit of  the other Credit Parties.    (b) Should any of the information on any of the Schedules hereto become inaccurate or  misleading in any material respect as a result of changes after the Closing Date, the Lead Borrower shall  advise the Agent in writing of such revisions or updates as may be necessary or appropriate to update or  correct the same. From time to time as may be reasonably requested by the Agent, the Lead Borrower  shall supplement each Schedule hereto, or any representation herein or in any other Loan Document, with  respect to any matter arising after the Closing Date that, if existing or occurring on the Closing Date,  would have been required to be set forth or described in such Schedule or as an exception to such  representation or that is necessary to correct any information in such Schedule or representation which  has been rendered inaccurate thereby (and, in the case of any supplements to any Schedule, such  Schedule shall be appropriately marked to show the changes made therein). Notwithstanding the  foregoing, no supplement or revision to any Schedule or representation shall be deemed the Credit  Parties’ consent to the matters reflected in such updated Schedules or revised representations nor permit  the Loan Parties to undertake any actions otherwise prohibited hereunder or fail to undertake any action  required hereunder from the restrictions and requirements in existence prior to the delivery of such  updated Schedules or such revision of a representation; nor shall any such supplement or revision to any  Schedule or representation be deemed the Credit Parties’ waiver of any Default or Event of Default  resulting from the matters disclosed therein.    6.15 Physical Inventories. Except as otherwise consented to by the Agent    (a) Cause not less than one (1) full physical inventory in each twelve (12) month period and  at the Stores at the end of each Fiscal Quarter consistent with current practices as of the date hereof,  conducted by such inventory takers as are reasonably satisfactory to the Agent and following such  methodology as is consistent with the methodology used in the immediately preceding inventory or as  otherwise may be reasonably satisfactory to the Agent. The Agent, at the expense of the Loan Parties,  may participate in and/or observe each scheduled physical count of Inventory which is undertaken on  behalf of any Loan Party. The Lead Borrower, within five (5) Business Days following the completion  of such inventory, shall provide the Agent with a reconciliation of the results of such inventory (as well  as of any other physical inventory or cycle counts undertaken by a Loan Party) and shall post such results  to the Loan Parties’ stock ledgers and general ledgers, as applicable.    (b) Permit the Agent, in its Permitted Discretion, if any Default or Event of Default exists,  to cause additional such inventories to be taken as the Agent determines (each, at the expense of the Loan  Parties).    6.16 Environmental Laws. Except to the extent failure to comply could not reasonably be  expected to result, individually or in the aggregate, in a Material Adverse Effect (a) conduct its  operations and keep and maintain its Real Estate in material compliance with all Environmental Laws;  (b) obtain and renew all environmental permits necessary for its operations and properties; and (c)  implement any and all investigation, remediation, removal and response actions that are appropriate or  necessary to maintain the value and marketability of the Real Estate or to otherwise comply with  Environmental Laws pertaining to the presence, generation, treatment, storage, use, disposal,  transportation or release of any Hazardous Materials on, at, in, under, above, to, from or about any of its  Real Estate, provided, that, neither a Loan Party nor any of its Subsidiaries shall be required to undertake  any such cleanup, removal, remedial or other action to the extent that its obligation to do so is being  contested in good faith and by proper proceedings and adequate reserves have been set aside and are  being maintained by the Loan Parties with respect to such circumstances in accordance with GAAP.  

 

103        Exhibit 10.2      6.17 Further Assurances.    (a) Execute any and all further documents, financing statements, agreements and  instruments, and take all such further actions (including the filing and recording of financing statements  and other documents), that may be required under any applicable Law, or which the Agent may  reasonably request, to effectuate the transactions contemplated by the Loan Documents or to grant,  preserve, protect or perfect the Liens created or intended to be created by the Security Documents or the  validity or priority of any such Lien, all at the expense of the Loan Parties. The Loan Parties also agree to  provide to the Agent, from time to time upon request, evidence satisfactory to the Agent as to the  perfection and priority of the Liens created or intended to be created by the Security Documents.    (b) If any material assets are acquired by any Loan Party after the Closing Date (other than  assets constituting Collateral under the Security Documents that become subject to the perfected  first-priority Lien under the Security Documents upon acquisition thereof), notify the Agent thereof, and  the Loan Parties will cause such assets to be subjected to a Lien securing the Obligations and will take  such actions as shall be necessary or shall be requested by the Agent to grant and perfect such Liens,  including actions described in paragraph (a) of this Section 6.17, all at the expense of the Loan Parties. In  no event shall compliance with this Section 6.17(b) waive or be deemed a waiver or Consent to any  transaction giving rise to the need to comply with this Section 6.17(b) if such transaction was not  otherwise expressly permitted by this Agreement or constitute or be deemed to constitute Consent to the  inclusion of any acquired assets in the computation of the Borrowing Base.    (c) Upon the request of the Agent, use commercially reasonable efforts to cause each of its  Freight Forwarders to deliver an agreement (including, without limitation, a Freight Forwarder  Agreement) to the Agent covering such matters and in such form as the Agent may reasonably require  (provided, that, such agreement shall be required for any In-Transit Inventory the importation of which is  being handled by such Freight Forwarder to be Eligible In-Transit Inventory).    (d) Upon the request of the Agent, use commercially reasonable efforts to cause any of its  landlords at locations that contain books and records with respect to Collateral (not otherwise available at  any owned location of the Loan Parties) or with assets included in the Borrowing Base (other than at a  Store) to deliver a Collateral Access Agreement to the Agent in such form as the Agent may reasonably  require; provided, that, prior to the occurrence and continuance of an Event of Default, notwithstanding  anything to the contrary set forth herein shall be requested by the Agent or shall otherwise be required  pursuant to the provisions hereof with respect to any location with assets included in the Borrowing Base  having an aggregate value of less than or equal to $100,000.    (e) Notwithstanding anything to the contrary contained herein (including Section 6.12  hereof and this Section 6.17) or in any other Loan Document, the Agent shall not accept delivery of any  joinder to any Loan Document with respect to any Subsidiary of any Loan Party that is not a Loan Party,  if such Subsidiary that qualifies as a “legal entity customer” under the Beneficial Ownership Regulation  unless such Subsidiary has delivered a Beneficial Ownership Certification in relation to such Subsidiary  and the Agent has completed its Patriot Act searches, OFAC/PEP searches and customary individual  background checks for such Subsidiary, the results of which shall be reasonably satisfactory to the Agent.    6.18 Compliance with Terms of Leaseholds. Except as otherwise expressly permitted  hereunder, and except as could not reasonably be expected to have a Material Adverse Effect, (a) make  all payments and otherwise perform all obligations in respect of all Leases to which any Loan Party or  any of its Subsidiaries is a party, (b) keep such Leases in full force and effect, (c) not allow such Leases  to lapse or be terminated or any rights to renew such Leases to be forfeited or cancelled, (d) notify the  Agent of any default by any party with respect to such Leases and cooperate with the Agent in all  respects to cure any such default, and (e) cause each of its Subsidiaries to do the foregoing.  

 

104        Exhibit 10.2      6.19 Material Contracts. (a) Perform and observe all the material terms and provisions of  each Material Contract to be performed or observed by it, (b) maintain each such Material Contract in  full force and effect, (c) enforce each such Material Contract in accordance with its terms, (d) take all  such action to such end as may be from time to time requested by the Agent, (e) upon request of the  Agent, make to each other party to each such Material Contract such demands and requests for  information and reports or for action as any Loan Party or any of its Subsidiaries is entitled to make  under such Material Contract, and (f) cause each of its Subsidiaries to do the foregoing.    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 which has not been Cash  Collateralized shall remain outstanding (other than contingent indemnification obligations for which a  claim has not been asserted), no Loan Party shall, 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 or sign or file or suffer to exist under the UCC or  any similar Law or statute of any jurisdiction a financing statement that names any Loan Party or any  Subsidiary thereof as debtor; sign or suffer to exist any security agreement authorizing any Person  thereunder to file such financing statement; sell any of its property or assets subject to an understanding  or agreement (contingent or otherwise) to repurchase such property or assets with recourse to it or any of  its Subsidiaries; or assign or otherwise transfer any accounts or other rights to receive income, other than,  as to all of the above, Permitted Encumbrances.    7.02 Investments. Make any Investments, except Permitted Investments.    7.03 Indebtedness; Disqualified Stock. (a) Create, incur, assume, guarantee, suffer to exist  or otherwise become or remain liable with respect to, any Indebtedness, except Permitted Indebtedness;  or (b) issue Disqualified Stock, or (c) issue and sell any other Equity Interests unless (i) such Equity  Interests shall be issued solely by the Parent and not by a Subsidiary of a Loan Party (provided, that,  Lead Borrower may issue (A) Equity Interests pursuant to a Qualifying IPO, (B) at any time following  consummation of the Qualifying IPO, additional Equity Interests other than Disqualified Stock, provided,  that, after giving effect to such issuance no Change of Control would occur and (C) Equity Interests to  Satori Capital LLC and its Affiliates pursuant to the Sponsor Management Agreement as in effect on the  Amendment No. 1 Effective Date), (ii) such Equity Interests (other than those issued pursuant to the  Qualifying IPO and at any time following consummation of the Qualifying IPO, additional Equity  Interests of the same class as those issued pursuant to the Qualifying IPO) provide that all dividends and  other Restricted Payments in respect thereof shall be made solely in additional shares of such Equity  Interests, in lieu of cash to the extent the payment of such dividends or other Restricted Payments in cash  would not be permitted under this Agreement, and (iii) such Equity Interests shall not be subject to  redemption other than redemption at the option of the Loan Party issuing such Equity Interests and in  accordance with the limitations contained in this Agreement.    7.04 Fundamental Changes. Merge, dissolve, liquidate, consolidate with or into another  Person, (or agree to do any of the foregoing), except that, so long as no Default or Event of Default shall  have occurred and be continuing prior to or immediately after giving effect to any action described below  or would result therefrom:  

 

105        Exhibit 10.2      (a) any Subsidiary which is not a Loan Party may merge with (i) a Loan Party, provided,  that, the Loan Party shall be the continuing or surviving Person, or (ii) any one or more other  Subsidiaries which are not Loan Parties, provided, that, when any wholly-owned Subsidiary is merging  with another Subsidiary, the wholly-owned Subsidiary shall be the continuing or surviving Person;    (b) any Subsidiary which is a Loan Party may merge into any Subsidiary which is a Loan  Party or into a Borrower, provided, that, in any merger involving a Borrower, such Borrower shall be the  continuing or surviving Person;    (c) in connection with a Permitted Acquisition, any Subsidiary of a Loan Party may merge  with or into or consolidate with any other Person or permit any other Person to merge with or into or  consolidate with it; provided, that, (i) the Person surviving such merger shall be a wholly-owned  Subsidiary of a Loan Party and such Person shall become a Loan Party in accordance with, and to the  extent required by, the provisions of Section 6.12 hereof, and (ii) in the case of any such merger to which  any Loan Party is a party, such Loan Party is the surviving Person.    7.05 Dispositions. Make any Disposition or enter into any agreement to make any  Disposition, except Permitted Dispositions.    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:    (a) each Subsidiary of a Loan Party may make Restricted Payments to any Loan Party other  than to the Parent;    (b) the Loan Parties and each Subsidiary may declare and make dividend payments or other  distributions payable solely in the common stock or other common Equity Interests of such Person;    (c) the Borrowers may make payments to Sponsor in accordance with the Sponsor  Management Agreement as in effect on the Amendment No. 1 Effective Date (i) in respect of  management fees in an aggregate amount not to exceed $500,000 in any Fiscal Year payable to Mistral  Capital Management LLC and $100,000 in any Fiscal Year payable to Satori Capital LLC and its  Affiliates in each case in accordance with the terms of the Sponsor Management Agreement as in effect  on the Amendment No. 1 Effective Date, (ii) in respect of (A) the onetime fee payable to Mistral Capital  Management LLC under the Sponsor Management Agreement as a result of the credit facility under this  Agreement, in an aggregate amount not to exceed $500,000, and (B) the one-time fee payable to Satori  Capital LLC and its Affiliates under the Sponsor Management Agreement as a result of the credit facility  under this Agreement, in an aggregate amount not to exceed $125,000, which amounts as described in  clauses (A) and (B) shall each be paid on or about the Amendment No. 1 Effective Date and (iii) in  respect of reimbursements of fees and expenses (including any fees and expenses) in accordance with the  terms of the Sponsor Management Agreement and indemnification obligations to the extent actually  incurred and required or contemplated to be reimbursed pursuant to the Sponsor Management Agreement  as in effect on the Amendment No. 1 Effective Date; provided, that, (A) the management fees and  transaction fees described in clauses (i) and (ii) of this clause (c) shall not be paid at any time an Event of  Default exists or has occurred and is continuing and (B) all accrued management fees and transaction  fees which were not permitted to be paid in cash at such time shall be permitted to be paid in cash once  no Event of Default is continuing.[Intentionally Omitted.]    (d) The Loan Parties may make Restricted Payments consisting of cash dividends and  redemptions of Equity Interests by the Lead Borrower; provided, that, both immediately before and  immediately after giving effect to any such Restricted Payment, the Payment Conditions are satisfied.  

 

106        Exhibit 10.2      7.07 Prepayments of Indebtedness. Prepay, redeem, purchase, defease or otherwise satisfy  prior to the scheduled maturity thereof in any manner any Indebtedness, or make any payment in  violation of any subordination terms of any Subordinated Indebtedness, except (a) regularly scheduled or  mandatory repayments, repurchases, redemptions or defeasances of (i) Permitted Indebtedness (other  than Subordinated Indebtedness), and (ii) Subordinated Indebtedness in accordance with the  subordination terms thereof or the applicable subordination agreement relating thereto, (b) voluntary  prepayments, repurchases, redemptions or defeasances of (i) Permitted Indebtedness (but excluding on  account of any Subordinated Indebtedness), provided, that, as of the date of any such prepayment,  repurchase, redemption or defeasance, and after giving effect thereto, each of the Payment Conditions is  satisfied, and (ii) Subordinated Indebtedness in accordance with the subordination terms thereof or the  applicable subordination agreement relating thereto, provided, that, as of the date of any such  prepayment, repurchase, redemption or defeasance, and immediately after giving effect thereto, each of  the Payment Conditions is satisfied, and (c) prepayment of such Indebtedness with the proceeds of the  Permitted Refinancing thereof.    7.08 Change in Nature of Business.    (a) In the case of the Parent, engage in any business or activity other than (i) the direct or  indirect ownership of all outstanding Equity Interests in the other Loan Parties, (ii) maintaining its  corporate existence, (iii) participating in tax, accounting and other administrative activities as the parent  of the consolidated group of companies, including the Loan Parties, (iv) the execution and delivery of the  Loan Documents to which it is a party and the performance of its obligations thereunder, and (v)  activities incidental to the businesses or activities described in clauses (i)(a) through (iv) of this Section  7.08(a)Reserved.    (b) In the case of each of the Loan Parties, engage in any line of business substantially  different from the Business conducted by the Loan Parties and their Subsidiaries on the  ClosingAmendment No. 6 Effective Date or any business substantially related or incidental thereto.    7.09 Transactions with Affiliates. Enter into, renew, extend or be a party to any transaction  of any kind with any Affiliate of any Loan Party, whether or not in the ordinary course of business, other  than on fair and reasonable terms substantially as favorable to the Loan Parties or such Subsidiary as  would be obtainable by the Loan Parties 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) a transaction between or among the Loan Parties, (b) transactions described on Schedule 7.09  hereto, (c) advances for commissions, travel and other similar purposes in the ordinary course of business  to directors, officers and employees, (d) the issuance of Equity Interests in Parentthe Lead Borrower to  any officer, director, employee or consultant of Parentthe Lead Borrower or any of its Subsidiaries, (e)  the payment of reasonable fees and out-of-pocket costs to directors, and compensation and employee  benefit arrangements paid to, and indemnities provided for the benefit of, directors, officers or employees  of ParentLead Borrower or any of its Subsidiaries, and (f) any issuances of securities of ParentLead  Borrower (other than Disqualified Stock and other Equity Interests not permitted hereunder) 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 (in each case in respect of Equity Interests in  ParentLead Borrower) of ParentLead Borrower or any of its Subsidiaries.    7.10 Burdensome Agreements. Enter into or permit to exist any Contractual Obligation  (other than this Agreement or any other Loan Document) that (a) limits the ability of (i) any Subsidiary to  make Restricted Payments or other distributions to any Loan Party or to otherwise transfer property to or  invest in a Loan Party, (ii) any Subsidiary to Guarantee the Obligations, (iii) any Subsidiary to make or  repay loans to a Loan Party, or (iv) the Loan Parties or any Subsidiary to create, incur, assume or suffer  

 

107        Exhibit 10.2      to exist Liens on property of such Person in favor of the Agent; provided, that, this clause (iv) shall not  prohibit any negative pledge incurred or provided in favor of any holder of Indebtedness permitted under  clauses (c) or (f) of the definition of Permitted Indebtedness solely to the extent any such negative pledge  relates to the property financed by or the subject of such Indebtedness; or (b) requires the grant of a Lien  to secure an obligation of such Person if a Lien is granted to secure another obligation of such Person.    7.11 Use of Proceeds. Use the proceeds of any Credit Extension, whether directly or  indirectly, and whether immediately, incidentally or ultimately, (a) 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; (b) to  make any payments to a Sanctioned Entity or a Sanctioned Person, to finance any investments in a  Sanctioned Entity or a Sanctioned Person, to fund any operations of a Sanctioned Entity or a Sanctioned  Person), or in any other manner that would result in a violation of Sanctions by any Person; or (c) for  purposes other than those permitted under this Agreement.    7.12 Amendment of Material Documents. Amend, modify or waive any of a Loan Party’s  rights under (a) its Organization Documents in a manner materially adverse to the Credit Parties, or (b)  any Material Contract or Material Indebtedness (other than on account of any refinancing thereof  otherwise permitted hereunder), in each case to the extent that such amendment, modification or waiver  would result in a Default oran Event of Default under any of the Loan Documents, would be materially  adverse to the Credit Parties or otherwise would be reasonably likely to have a Material Adverse Effect.    7.13 Fiscal Year. Change the Fiscal Year of any Loan Party, or the accounting policies or  reporting practices of the Loan Parties, except as required by GAAP.    7.14 Deposit Accounts; Credit Card Processors. Open new Deposit Accounts or Securities  Accounts unless the Loan Parties shall have delivered to the Agent appropriate Control Agreements  consistent with the provisions of Section 6.13 and otherwise reasonably satisfactory to the Agent. No  Loan Party shall maintain any Deposit Accounts or Securities Accounts or enter into any agreements  with Credit Card Issuers or Credit Card Processors other than as expressly contemplated herein or in  Section 6.13 hereof. For the avoidance of doubt, it is hereby acknowledged and agreed that Loan Parties  shall not be required to deliver a Control Agreement with respect to any Excluded Account.    7.15 Excess Availability Covenant. Permit Excess Availability at any time to be less than the  greater of (a)amount equal to ten percent (10%) of the Loan Cap or (b) $1,000,000; provided, that, if at  any time Excess Availability is less than $2,500,000, then $1,000,000 shall be increased to $1,500,000  for purposes of this Section 7.15(b).    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 Borrowers or any other Loan Party fails to pay when and as  required to be paid herein, (i) any amount of principal of any Loan or any L/C Obligation, or deposit any  funds as Cash Collateral in respect of L/C Obligations, or (ii) any interest on any Loan or on any L/C  Obligation, or any fee due hereunder, or (iii) any other amount payable hereunder or under any other  Loan Document and such failure pursuant to this clause (ii) shall continue unremedied for a period of  three (3) Business Days; or  

 

108        Exhibit 10.2      (b) Specific Covenants. (i) Any Loan Party fails to perform or observe any term, covenant  or agreement contained in any of Section 6.01, 6.02, 6.03, 6.05, 6.07, 6.10, 6.11, 6.12, 6.13 or 6.14 or  Article VII; or (ii) any Guarantor fails to perform or observe any term, covenant or agreement contained  in the Facility Guaranty; or    (c) Other Defaults. Any Loan Party fails to perform or observe any other covenant or  agreement (not specified in subsection (a) or (b) above) contained in any Loan Document on its part to be  performed or observed and such failure continues for fifteen (15) daysBusiness Days; or    (d) Representations and Warranties. Any representation, warranty, certification or  statement of fact made or deemed made by or on behalf of any Borrower or any other Loan Party herein,  in any other Loan Document, or in any document delivered in connection herewith or therewith  (including, without limitation, any Borrowing Base Certificate), or in completing any request for a  Borrowing via the Portal, 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 thereof (A) fails to make any  payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or  otherwise) in respect of any Material Indebtedness (including undrawn committed or available amounts  and including amounts owing to all creditors under any combined or syndicated credit arrangement), or  (B) fails to observe or perform any other agreement or condition relating to any such Material  Indebtedness 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 Material Indebtedness or the beneficiary or beneficiaries of any Guarantee thereof (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 a Loan Party or any Subsidiary thereof 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 a Loan Party or any Subsidiary thereof is an Affected Party (as so defined) and, in either  event, the Swap Termination Value owed by the Loan Party or such Subsidiary as a result thereof is  greater than $100,0004,000,000; or    (f) Insolvency Proceedings, Etc. Any Loan Party or any of its Subsidiaries institutes,  consents to the institution of or declares its intention to institute any proceeding under any Debtor Relief  Law, 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 a proceeding shall be commenced or a petition filed, without the  application or consent of such Person, seeking or requesting the appointment of any receiver, trustee,  custodian, conservator, liquidator, rehabilitator or similar officer is appointed and the appointment  continues undischarged, undismissed or unstayed for thirtyforty-five (3045) calendar days or an order or  decree approving or ordering any of the foregoing shall be entered; 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 thirtyforty-five (3045) 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 thereof  becomes unable or admits in writing its inability or fails generally to pay its debts as they become due in  

 

109        Exhibit 10.2      the ordinary course of business, 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; or    (h) Judgments. There is entered against any Loan Party or any Subsidiary thereof (i) one or  more judgments or orders for the payment of money in an aggregate amount (as to all such judgments  and orders) exceeding $250,0002,000,000 (to the extent not covered by independent third-party insurance  as to which the insurer has been notified of the potential claim and does not dispute coverage), or (ii) any  one or more non-monetary 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 tenfifteen (1015)  consecutive days during which a stay of enforcement of such judgment or order, 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 under  Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in  excess of $250,0002,000,000 or which would reasonably likely result in a Material Adverse Effect, or (ii)  a Loan Party 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 $250,0002,000,000 or which would  reasonably likely result in a Material Adverse Effect; or    (j) Invalidity of Loan Documents. (i) 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 (other than contingent indemnification obligations  for which a claim has not been asserted), ceases to be in full force and effect; or any Loan Party, any  Subsidiary thereof or any Governmental Authority contests in any mannerwriting the validity or  enforceability of any provision of any Loan Document; or any Loan Party denies in writing that it has  any or further liability or obligation under any provision of any Loan Document, or purports to revoke,  terminate or rescind any provision of any Loan Document or seeks to avoid, limit or otherwise adversely  affect any Lien purported to be created under any Security Document; or (ii) any Lien purported to be  created under any Security Document shall cease to be, or shall be asserted in writing by any Loan Party,  any Subsidiary thereof or any Governmental Authority not to be, a valid and perfected Lien on any  Collateral, with the priority required by the applicable Security Document; or    (k) Change of Control. There occurs any Change of Control; or    (l) Cessation of Business. Except as otherwise expressly permitted hereunder, any Loan  Party shall take any action, or any Loan Party’s management or board of directors (or equivalent  governing body) shall make a determination, in each case whether or not yet formally approved, to (i)  suspend the operation of all or a material portion of its business in the ordinary course, (ii) suspend the  payment of any material obligations in the ordinary course or suspend the performance under Material  Contracts in the ordinary course, (iii) commence the liquidation of all or a material portion of its assets or  Store locations, or (iv) employ an agent or other third party to conduct a program of closings,  liquidations, or “going-out-of-business” sales of any material portion of its business; or    (m) Loss of Collateral. There occurs any uninsured loss to any material portion of the  Collateral; or    (n) Breach of Contractual Obligation. Any Loan Party or any Subsidiary thereof fails to  make any payment when due (whether by scheduled maturity, required prepayment, acceleration,  

 

110        Exhibit 10.2      demand, or otherwise) in respect of any Material Contract or fails to observe or perform any other  agreement or condition relating to any such Material Contract 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 counterparty to such Material Contract to terminate such  Material Contract; or    (o) Indictment. The indictment or institution of any legal process or proceeding against,  any Loan Party or any Subsidiary thereof, under any federal, state, municipal, and other criminal statute,  rule, regulation, order, or other requirement having the force of law for a felonythat may reasonably be  expected to lead to a forfeiture of any property of such Loan Party or Subsidiary having a fair market  value in excess of $1,500,000;    (p) Guaranty. The termination or attempted termination of any Facility Guaranty except as  expressly permitted hereunder or under any other Loan Document; or    (q) Subordination. (i) The subordination provisions of the documents evidencing or  governing any Subordinated Indebtedness, or provisions of any intercreditor agreement entered into by  Agent after the date hereof, any such provisions being referred to as the “Intercreditor Provisions”, shall,  in whole or in part, terminate, cease to be effective or cease to be legally valid, binding and enforceable  against any holder of the applicable Indebtedness; or (ii) any Borrower or any other Loan Party shall,  directly or indirectly, disavow or contest in any mannerwriting (A) the effectiveness, validity or  enforceability of any of the Intercreditor Provisions, (B) that the Intercreditor Provisions exist for the  benefit of the Credit Parties, or (C) in the case of Subordinated Indebtedness, that all payments of  principal of or premium and interest on the applicable Subordinated Indebtedness, or realized from the  liquidation of any property of any Loan Party, shall be subject to any of the Intercreditor Provisions.    8.02 Remedies Upon Event of Default. If any Event of Default occurs and is continuing, the  Agent may, or, at the request of the Required Lenders shall, take any or all of the following actions:    (a) declare the Commitments 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 Obligations (other than Obligations under any Swap Contract) to be  immediately due and payable, without presentment, demand, protest or other notice of any kind, all of  which are hereby expressly waived by the Loan Parties;    (c) require that the Loan Parties Cash Collateralize the L/C Obligations; and    (d) whether or not the maturity of the Obligations shall have been accelerated pursuant  hereto, proceed to protect, enforce and exercise all rights and remedies of the Credit Parties under this  Agreement, any of the other Loan Documents or applicable Law, including, but not limited to, by suit in  equity, action at law or other appropriate proceeding, whether for the specific performance of any  covenant or agreement contained in this Agreement and the other Loan Documents or any instrument  pursuant to which the Obligations are evidenced, and, if such amount shall have become due, by  declaration or otherwise, proceed to enforce the payment thereof or any other legal or equitable right of  the Credit Parties;    provided, however, that upon the occurrence of any Event of Default with respect to any Loan Party or  any Subsidiary thereof under Section 8.01(f), the obligation of each Lender to make Loans and any  

 

111        Exhibit 10.2      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 Loan Parties to Cash Collateralize the  L/C Obligations as aforesaid shall automatically become effective, in each case without further act of the  Agent or any Lender.    No remedy herein is intended to be exclusive of any other remedy and each and every remedy  shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter  existing at law or in equity or by statute or any other provision of Law.    Each of the Lenders agrees that it shall not, unless specifically requested to do so in writing by  Agent, take or cause to be taken any action, including, the commencement of any legal or equitable  proceedings to enforce any Loan Document against any Loan Party or to foreclose any Lien on, or  otherwise enforce any security interest in, or other rights to, any of the Collateral.    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 be applied by the Agent in the following order:    First, to payment of that portion of the Obligations (excluding the Other Liabilities) constituting  fees, indemnities, Credit Party Expenses and other amounts (including fees, charges and disbursements of  counsel to the Agent and amounts payable under Article III) payable to the Agent;    Second, to payment of that portion of the Obligations (excluding the Other Liabilities)  constituting indemnities, Credit Party Expenses, and other amounts (other than principal, interest and  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 the extent not previously reimbursed by the Lenders, to payment to the Agent of that  portion of the Obligations constituting principal and accrued and unpaid interest on any Permitted  Overadvances;    Fourth, to the extent that Swing Line Loans have not been refinanced by a Committed Loan,  payment to the Swing Line Lender of that portion of the Obligations constituting accrued and unpaid  interest on the Swing Line Loans;    Fifth, to payment of that portion of the Obligations constituting accrued and unpaid interest on  the Committed Loans and other Obligations, and fees (including Letter of Credit Fees but excluding any  Early Termination Fees), ratably among the Lenders and the L/C Issuer in proportion to the respective  amounts described in this clause Fifth payable to them;    Sixth, to the extent that Swing Line Loans have not been refinanced by a Committed Loan, to  payment to the Swing Line Lender of that portion of the Obligations constituting unpaid principal of the  Swing Line Loans;    Seventh, to payment of that portion of the Obligations constituting unpaid principal of the  Committed Loans, ratably among the Lenders in proportion to the respective amounts described in this  clause Seventh held by them;  

 

112        Exhibit 10.2      Eighth, to the 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;    Ninth, to payment of all other Obligations (including without limitation the cash collateralization  of unliquidated indemnification obligations, but excluding any Other Liabilities), ratably among the  Credit Parties in proportion to the respective amounts described in this clause Ninth held by them;    Tenth, to payment of that portion of the Obligations arising from Cash Management Services to  the extent secured under the Security Documents, ratably among the Credit Parties in proportion to the  respective amounts described in this clause Tenth held by them;    Eleventh, to payment of all other Obligations arising from Bank Products to the extent secured  under the Security Documents, ratably among the Credit Parties in proportion to the respective amounts  described in this clause Eleventh held by them; and    Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the  Loan Parties or as otherwise required by Law.    Subject to Section 2.03(g), amounts used to Cash Collateralize the aggregate undrawn amount of Letters  of Credit pursuant to clause Eighth 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.    ARTICLE IX  THE AGENT    9.01 Appointment and Authority. Each of the Lenders and the Swing Line Lender hereby  irrevocably appoints Wells Fargo to act on its behalf as the Agent hereunder and under the other Loan  Documents (other than the Swap Contracts) and authorizes the Agent to take such actions on its behalf  and to exercise such powers as are delegated to the Agent by the terms hereof or thereof (including,  without limitation, acquiring, holding and enforcing any and all Liens on Collateral granted by any of the  Loan Parties to secure any of the Obligations), together with such actions and powers as are reasonably  incidental thereto. The provisions of this Article are solely for the benefit of the Agent, the Lenders and  the L/C Issuer, and no Loan Party or any Subsidiary thereof shall have rights as a third party beneficiary  of any of such provisions (other than any rights Borrower may have pursuant to Section 9.06 hereof).    9.02 Rights as a Lender. The Person serving as the 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  they were not the Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated  or unless the context otherwise requires, include the Person serving as the Agent hereunder in its  individual capacity. Such Person and its Affiliates may accept deposits from, lend money to, act as the  financial advisor or in any other advisory capacity for and generally engage in any kind of business with  the Loan Parties or any Subsidiary or other Affiliate thereof as if such Person were not the Agent  hereunder and without any duty to account therefor to the Lenders.    9.03 Exculpatory Provisions. The Agent shall not have any duties or obligations except  those expressly set forth herein and in the other Loan Documents. Without limiting the generality of the  foregoing, the Agent:    (a) shall not be subject to any fiduciary or other implied duties, regardless of whether a  Default or Event of Default has occurred and is continuing;  

 

113        Exhibit 10.2      (b) 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 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 Agent shall not be required to take any action that, in its opinion or the  opinion of its counsel, may expose the Agent to liability or that is contrary to any Loan Document or  applicable law; and    (c) shall not, except as expressly set forth herein and in the other Loan Documents, have  any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the  Loan Parties or any of its Affiliates that is communicated to or obtained by the Person serving as the  Agent or any of its Affiliates in any capacity.    The Agent shall not be liable for any action taken or not taken by it (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 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 final and non-appealable judgment of a court of competent jurisdiction.    The Agent shall not be deemed to have knowledge of any Default or Event of Default unless and until  notice describing such Default or Event of Default is given to the Agent by the Loan Parties, a Lender or  the L/C Issuer. Upon the occurrence of a Default or Event of Default, the Agent shall take such action  with respect to such Default or Event of Default as shall be reasonably directed by the Applicable  Lenders. Unless and until the Agent shall have received such direction, the Agent may (but shall not be  obligated to) take such action, or refrain from taking such action, with respect to any such Default or  Event of Default as it shall deem advisable in the best interest of the Credit Parties. In no event shall the  Agent be required to comply with any such directions to the extent that the Agent believes that its  compliance with such directions would be unlawful.    The Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement,  warranty or representation made in or in connection with 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 or  Event of Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any  other Loan Document or any other agreement, instrument or document or the creation, perfection or  priority of any Lien purported to be created by the Security Documents, (v) the value or the sufficiency  of any Collateral, or (vi) 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 Agent.    9.04 Reliance by Agent. The 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, but not limited to, 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 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 of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the L/C  Issuer, the Agent may presume that such condition is satisfactory to such Lender or the L/C Issuer unless  the Agent shall have received written 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 Agent may consult with legal  

 

114        Exhibit 10.2      counsel (who may be counsel for any Loan Party), 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 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 Agent. The 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 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 the Agent.    9.06 Resignation of Agent.    (a) The Agent may at any time give written notice of its resignation to the Lenders and the  Lead Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the  right, in consultation with the Lead 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 thirty (30) days after the retiring Agent gives notice of its resignation, then the  retiring Agent may on behalf of the Lenders and the L/C Issuer, appoint a successor Agent meeting the  qualifications set forth above; provided that if the Agent shall notify the Lead Borrower and the Lenders  that no qualifying Person has accepted such appointment, then such resignation shall nonetheless become  effective in accordance with such notice and (1) the retiring Agent shall be discharged from its duties and  obligations hereunder and under the other Loan Documents (except that in the case of any Collateral held  by the Agent on behalf of the Lenders or the L/C Issuer under any of the Loan Documents, the retiring  Agent shall continue to hold such collateral security until such time as a successor Agent is appointed)  and (2) all payments, communications and determinations provided to be made by, to or through the  Agent shall instead be made by or to each Lender and the L/C Issuer directly, until such time as the  Required Lenders appoint a successor Agent as provided for above in this Section. Upon the acceptance  of a successor’s appointment as Agent hereunder, such successor shall succeed to and become vested  with all of the rights, powers, privileges and duties of the retiring (or retired) Agent, and the retiring  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 Borrowers to a successor Agent shall be the same as those payable to its predecessor unless otherwise  agreed between the Lead Borrower and such successor. After the retiring Agent’s resignation 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 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 Agent was acting as Agent  hereunder.  (b) Any resignation by Wells Fargo as Agent pursuant to this Section shall also constitute  its resignation as Swing Line Lender and the resignation of Wells Fargo as L/C Issuer. Upon the  acceptance of a successor’s appointment as Agent hereunder, (i) such successor shall succeed to and  become vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer and Swing  Line Lender, (ii) 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 (iii) 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 the retiring L/C Issuer to effectively  assume the obligations of the retiring L/C Issuer with respect to such Letters of Credit.  

 

115        Exhibit 10.2      9.07 Non-Reliance on Agent and Other Lenders. Each Lender and the L/C Issuer  acknowledges that it has, independently and without reliance upon the Agent or 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 and decision to enter into this Agreement. Each Lender and the L/C Issuer also  acknowledges that it will, independently and without reliance upon the Agent or 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 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. Except as provided in Section 9.12, the Agent shall not have any duty or responsibility to  provide any Credit Party with any other credit or other information concerning the affairs, financial  condition or business of any Loan Party that may come into the possession of the Agent.    9.08 No Other Duties, Etc. Anything herein to the contrary notwithstanding, none of the  Bookrunners, Arrangers, Syndication Agent or Documentation Agent 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 the Agent, a Lender or the L/C Issuer hereunder.    9.09 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 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 Agent shall have made any demand on the  Loan Parties) 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, the Agent and the other Credit Parties (including any claim for the reasonable  compensation, expenses, disbursements and advances of the Lenders, the L/C Issuer, the Agent, such  Credit Parties and their respective agents and counsel and all other amounts due the Lenders, the L/C  Issuer, the Agent and such Credit Parties under Sections 2.03(i) and 2.03(j) as applicable, 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  Agent and, if the Agent shall consent to the making of such payments directly to the Lenders and the L/C  Issuer, to pay to the Agent any amount due for the reasonable compensation, expenses, disbursements  and advances of the Agent and its agents and counsel, and any other amounts due the Agent under  Sections 2.09 and 10.04.    Nothing contained herein shall be deemed to authorize the 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  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 Credit Parties irrevocably authorize the Agent,  at its option and in its discretion,  

 

116        Exhibit 10.2      (a) to release any Lien on any property granted to or held by the Agent under any Loan  Document (i) upon termination of the Aggregate Commitments and payment in full of all Obligations  (other than contingent indemnification obligations for which no claim has been asserted) and the  expiration, termination or Cash Collateralization of all Letters of Credit, (ii) that is sold or to be sold as  part of or in connection with any sale permitted hereunder or under any other Loan Document, or (iii) if  approved, authorized or ratified in writing by the Applicable Lenders in accordance with Section 10.01;    (b) to subordinate any Lien on any property granted to or held by the Agent under any Loan  Document to the holder of any Lien on such property that is permitted by clause (h) of the definition of  Permitted Encumbrances;    (c) to release any Guarantor from its obligations under the Facility Guaranty if such Person  ceases to be a Subsidiary as a result of a transaction permitted hereunder.    Upon request by the Agent at any time, the Applicable Lenders will confirm in writing the Agent’s  authority to release or subordinate its interest in particular types or items of property, or to release any  Guarantor from its obligations under the Facility Guaranty pursuant to this Section 9.10. In each case as  specified in this Section 9.10, the Agent will, at the Loan Parties’ expense, execute and deliver to the  applicable Loan Party such documents as such Loan Party may reasonably request to evidence the release  of such item of Collateral from the assignment and security interest granted under the Security  Documents or to subordinate its interest in such item, or to release such Guarantor from its obligations  under the Facility Guaranty, in each case in accordance with the terms of the Loan Documents and this  Section 9.10.    9.11 Notice of Transfer. The Agent may deem and treat a Lender party to this Agreement as  the owner of such Lender’s portion of the Obligations for all purposes, unless and until, and except to the  extent, an Assignment and Acceptance shall have become effective as set forth in Section 10.06.    9.12 Reports and Financial Statements. By signing this Agreement, each Lender:    (a) agrees to furnish the Agent with a summary of all Other Liabilities due or to become  due to such Lender. In connection with any distributions to be made hereunder, the Agent shall be  entitled to assume that no amounts are due to any Lender on account of Other Liabilities unless the Agent  has received written notice thereof from such Lender;    (b) is deemed to have requested that the Agent furnish such Lender, promptly after they  become available, copies of all Borrowing Base Certificates and financial statements required to be  delivered by the Lead Borrower hereunder and all commercial finance examinations and appraisals of the  Collateral received by the Agent (collectively, the “Reports”);    (c) expressly agrees and acknowledges that the Agent makes no representation or warranty  as to the accuracy of the Reports, and shall not be liable for any information contained in any Report;    (d) expressly agrees and acknowledges that the Reports are not comprehensive audits or  examinations, that the Agent or any other party performing any audit or examination will inspect only  specific information regarding the Loan Parties and will rely significantly upon the Loan Parties’ books  and records, as well as on representations of the Loan Parties’ personnel;    (e) agrees to keep all Reports confidential in accordance with the provisions of Section  10.07 hereof; and  

 

117        Exhibit 10.2      (f) without limiting the generality of any other indemnification provision contained in this  Agreement, agrees: (i) to hold the Agent and any such other Lender preparing a Report harmless from  any action the indemnifying Lender may take or conclusion the indemnifying Lender may reach or draw  from any Report in connection with any Credit Extensions that the indemnifying Lender has made or may  make to the Borrowers, or the indemnifying Lender’s participation in, or the indemnifying Lender’s  purchase of, a Loan or Loans; and (ii) to pay and protect, and indemnify, defend, and hold the Agent and  any such other Lender preparing a Report harmless from and against, the claims, actions, proceedings,  damages, costs, expenses, and other amounts (including attorney costs) incurred by the Agent and any  such other Lender preparing a Report as the direct or indirect result of any third parties who might obtain  all or part of any Report through the indemnifying Lender.    9.13 Agency for Perfection. Each Lender hereby appoints each other Lender as agent for the  purpose of perfecting Liens for the benefit of the Agent and the Lenders, in assets which, in accordance  with Article 9 of the UCC or any other applicable Law of the United States can be perfected only by  possession. Should any Lender (other than the Agent) obtain possession of any such Collateral, such  Lender shall notify the Agent thereof, and, promptly upon the Agent’s request therefor shall deliver such  Collateral to the Agent or otherwise deal with such Collateral in accordance with the Agent’s  instructions.    9.14 Indemnification of Agent. Without limiting the obligations of the Loan Parties  hereunder, the Lenders hereby agree to indemnify the Agent, the L/C Issuer and any Related Party, as the  case may be, ratably according to their Applicable Percentages, from and against any and all liabilities,  obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any  kind or nature whatsoever that may be imposed on, incurred by, or asserted against the Agent, the L/C  Issuer and their Related Parties in any way relating to or arising out of this Agreement or any other Loan  Document or any action taken or omitted to be taken by the Agent, the L/C Issuer and their Related  Parties in connection therewith; provided, that, no Lender shall be liable for any portion of such  liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or  disbursements resulting from the Agent’s, the L/C Issuer’s and their Related Parties’ gross negligence or  willful misconduct as determined by a final and nonappealable judgment of a court of competent  jurisdiction.    9.15 Relation among Lenders. The Lenders are not partners or co-venturers, and no Lender  shall be liable for the acts or omissions of, or (except as otherwise set forth herein in case of the Agent)  authorized to act for, any other Lender.    9.16 Defaulting Lenders.    (a) Notwithstanding the provisions of Section 2.14 hereof, the Agent shall not be obligated  to transfer to a Defaulting Lender any payments made by the Borrowers to the Agent for the Defaulting  Lender’s benefit or any proceeds of Collateral that would otherwise be remitted hereunder to the  Defaulting Lender, and, in the absence of such transfer to the Defaulting Lender, the Agent shall transfer  any such payments (i) first, to the Swing Line Lender to the extent of any Swing Line Loans that were  made by the Swing Line Lender and that were required to be, but were not, paid by the Defaulting  Lender, (ii) second, to the L/C Issuer, to the extent of the portion of a Letter of Credit Disbursement that  was required to be, but was not, paid by the Defaulting Lender, (iii) third, to each Non-Defaulting Lender  ratably in accordance with their Commitments (but, in each case, only to the extent that such Defaulting  Lender’s portion of a Loan (or other funding obligation) was funded by such other Non-Defaulting  Lender), (iv) to the Cash Collateral Account, the proceeds of which shall be retained by the Agent and  may be made available to be re-advanced to or for the benefit of the Borrowers (upon the request of the  Lead Borrower and subject to the conditions set forth in Section 4.02) as if such Defaulting Lender had  

 

118        Exhibit 10.2      made its portion of the Loans (or other funding obligations) hereunder, and (v) from and after the date on  which all other Obligations have been paid in full, to such Defaulting Lender. Subject to the foregoing,  the Agent may hold and, in its discretion, re-lend to the Borrowers for the account of such Defaulting  Lender the amount of all such payments received and retained by the Agent for the account of such  Defaulting Lender. Solely for the purposes of voting or consenting to matters with respect to the Loan  Documents (including the calculation of Applicable Percentages in connection therewith) and for the  purpose of calculating the fee payable under Section 2.09(a), such Defaulting Lender shall be deemed not  to be a “Lender” and such Lender’s Commitment shall be deemed to be zero; provided, that the foregoing  shall not apply to any of the matters governed by Section 10.01(a) through (c). The provisions of this  Section 9.16 shall remain effective with respect to such Defaulting Lender until the earlier of (y) the date  on which all of the Non-Defaulting Lenders, the Agent, the L/C Issuer, and the Borrowers shall have  waived, in writing, the application of this Section 9.16 to such Defaulting Lender, or (z) the date on  which such Defaulting Lender pays to the Agent all amounts owing by such Defaulting Lender in respect  of the amounts that it was obligated to fund hereunder, and, if requested by the Agent, provides adequate  assurance of its ability to perform its future obligations hereunder (on which earlier date, so long as no  Event of Default has occurred and is continuing, any remaining cash collateral held by the Agent  pursuant to Section 9.16(b) shall be released to the Borrowers). The operation of this Section 9.16 shall  not be construed to increase or otherwise affect the Commitment of any Lender, to relieve or excuse the  performance by such Defaulting Lender or any other Lender of its duties and obligations hereunder, or to  relieve or excuse the performance by any Borrower of its duties and obligations hereunder to the Agent,  the L/C Issuer, the Swing Line Lender, or to the Lenders other than such Defaulting Lender. Any failure  by a Defaulting Lender to fund amounts that it was obligated to fund hereunder shall constitute a material  breach by such Defaulting Lender of this Agreement and shall entitle the Borrowers, at their option, upon  written notice to the Agent, to arrange for a substitute Lender to assume the Commitment of such  Defaulting Lender, such substitute Lender to be reasonably acceptable to the Agent. In connection with  the arrangement of such a substitute Lender, the Defaulting Lender shall have no right to refuse to be  replaced hereunder, and agrees to execute and deliver a completed form of Assignment and Assumption  in favor of the substitute Lender (and agrees that it shall be deemed to have executed and delivered such  document if it fails to do so) subject only to being paid its share of the outstanding Obligations (other  than any Other Liabilities, but including (1) all interest, fees (except any Commitment Fees or Letter of  Credit Fees not due to such Defaulting Lender in accordance with the terms of this Agreement), and  other amounts that may be due and payable in respect thereof, and (2) an assumption of its Applicable  Percentage of its participation in the Letters of Credit); provided, that, any such assumption of the  Commitment of such Defaulting Lender shall not be deemed to constitute a waiver of any of the Credit  Parties’ or the Loan Parties’ rights or remedies against any such Defaulting Lender arising out of or in  relation to such failure to fund. In the event of a direct conflict between the priority provisions of this  Section 9.16 and any other provision contained in this Agreement or any other Loan Document, it is the  intention of the parties hereto that such provisions be read together and construed, to the fullest extent  possible, to be in concert with each other. In the event of any actual, irreconcilable conflict that cannot  be resolved as aforesaid, the terms and provisions of this Section 9.16 shall control and govern.  (b) If any Swing Line Loan or Letter of Credit is outstanding at the time that a Lender  becomes a Defaulting Lender then:    (i) such Defaulting Lender’s participation interest in any Swing Line Loan or  Letter of Credit shall be reallocated among the Non-Defaulting Lenders in accordance with their  respective Applicable Percentages but only to the extent (x) the Outstanding Amount sum of all  Non-Defaulting Lenders’ Credit Extensions after giving effect to such reallocation does not exceed the  total of all Non-Defaulting Lenders’ Commitments and (y) the conditions set forth in Section 4.02 are  satisfied (or waived in accordance with Section 10.01) at such time;  

 

119        Exhibit 10.2      (ii) if the reallocation described in clause (b)(i) above cannot, or can only partially,  be effected, the Borrowers shall within one Business Day following notice by the Agent (x) first, prepay  such Defaulting Lender’s participation in any outstanding Swing Line Loans (after giving effect to any  partial reallocation pursuant to clause (b)(i) above) and (y) second, cash collateralize such Defaulting  Lender’s participation in Letters of Credit (after giving effect to any partial reallocation pursuant to  clause (b)(i) above), pursuant to a cash collateral agreement to be entered into in form and substance  reasonably satisfactory to the Agent, for so long as such L/C Obligations are outstanding; provided, that  the Borrowers shall not be obligated to cash collateralize any Defaulting Lender’s participations in  Letters of Credit if such Defaulting Lender is also the L/C Issuer;    (iii) if the Borrowers cash collateralize any portion of such Defaulting Lender’s  participation in the Outstanding Amount of any Letters of Credit Exposure pursuant to this Section  9.16(b), the Borrowers shall not be required to pay any Letter of Credit Fees to the Agent for the account  of such Defaulting Lender pursuant to Section 2.03 with respect to such cash collateralized portion of  such Defaulting Lender’s participation in Letters of Credit during the period such participation is cash  collateralized;    (iv) to the extent the participation by any Non-Defaulting Lender in the Letters of  Credit is reallocated pursuant to this Section 9.16(b), then the Letter of Credit Fees payable to the  Non-Defaulting Lenders pursuant to Section 2.03 shall be adjusted in accordance with such reallocation;    (v) to the extent any Defaulting Lender’s participation in Letters of Credit is  neither cash collateralized nor reallocated pursuant to this Section 9.16(b), then, without prejudice to any  rights or remedies of the L/C Issuer or any Lender hereunder, all Letter of Credit Fees that would have  otherwise been payable to such Defaulting Lender under Section 2.03 with respect to such portion of  such participation shall instead be payable to the L/C Issuer until such portion of such Defaulting  Lender’s participation is cash collateralized or reallocated;    (vi) so long as any Lender is a Defaulting Lender, the Swing Line Lender shall not  be required to make any Swing Line Loan and the L/C Issuer shall not be required to issue, amend, or  increase any Letter of Credit, in each case, to the extent (x) the Defaulting Lender’s Applicable  Percentage of such Swing Line Loans or Letter of Credit cannot be reallocated pursuant to this Section  9.16(b) or (y) the Swing Line Lender or the L/C Issuer, as applicable, has not otherwise entered into  arrangements reasonably satisfactory to the Swing Line Lender or the L/C Issuer, as applicable, and the  Borrowers to eliminate the Swing Line Lender’s or L/C Issuer’s risk with respect to the Defaulting  Lender’s participation in Swing Line Loans or Letters of Credit; and    (vii) The Agent may release any cash collateral provided by the Borrowers pursuant  to this Section 9.16(b) to the L/C Issuer and the L/C Issuer may apply any such cash collateral to the  payment of such Defaulting Lender’s Applicable Percentage of any Letter of Credit Disbursement that is  not reimbursed by the Borrowers pursuant to Section 2.03.    ARTICLE X  MISCELLANEOUS    10.01 Amendments, Etc. No amendment or waiver of any provision of this Agreement or any  other Loan Document (other than Swap Contracts), and no Consent to any departure by any Loan Party  therefrom, shall be effective unless in writing signed by the Agent, with the Consent of the Required  Lenders, and the Lead Borrower or the applicable Loan Party, as the case may be, and acknowledged by  the Agent, and each such waiver or Consent shall be effective only in the specific instance and for the  specific purpose for which given; provided, that, no such amendment, waiver or consent shall:  

 

120        Exhibit 10.2      (a) increase the Commitment of any Lender (or reinstate any Commitment terminated  pursuant to Section 8.02) without the written Consent of such Lender;    (b) as to any Lender, postpone any date fixed by this Agreement or any other Loan  Document for (i) any scheduled payment (including the Maturity Date) or mandatory prepayment of  principal, interest, fees or other amounts due hereunder or under any of the other Loan Documents  without the written Consent of such Lender entitled to such payment, or (ii) any scheduled or mandatory  reduction or termination of the Aggregate Commitments hereunder or under any other Loan Document  without the written Consent of such Lender;    (c) as to any Lender, reduce the principal of, or the rate of interest specified herein on, any  Loan held by such Lender, or (subject to clause (ivv) of the second proviso to this Section 10.01) any  fees or other amounts payable hereunder or under any other Loan Document to or for the account of such  Lender, without the written Consent of each Lender entitled to such amount; provided, that, only the  Consent of the Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive  any obligation of the Borrowers to pay interest or Letter of Credit Fees at the Default Rate;    (d) as to any Lender, change Section 2.13 or Section 8.03 in a manner that would alter the  pro rata sharing of payments required thereby without the written Consent of such Lender;    (e) 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;    (f) except as expressly permitted hereunder or under any other Loan Document, release, or  limit the liability of, any Loan Party without the written Consent of each Lender;    (g) except for Permitted Dispositions, release all or substantially all of the Collateral from  the Liens of the Security Documents without the written Consent of each Lender;    (h) except as provided in Section 2.15, increase the Aggregate Commitments without the  written Consent of each Lender;    (i) change the definition of the term “Borrowing Base” or any component definition thereof  if as a result thereof the amounts available to be borrowed by the Borrowers would be increased without  the written Consent of each Lender, provided, that, the foregoing shall not limit the Permitted Discretion  of the Agent to change, establish or eliminate any Reserves;    (j) modify the definition of Permitted Overadvance so as to increase the amount thereof or,  except as provided in such definition, the time period for which a Permitted Overadvance may remain  outstanding without the written Consent of each Lender; and    (k) except as expressly permitted herein or in any other Loan Document, subordinate the  Obligations hereunder or the Liens granted hereunder or under the other Loan Documents, to any other  Indebtedness or Lien, as the case may be without the written Consent of each Lender;    and, provided, 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  

 

121        Exhibit 10.2      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 Agent in addition to the  Lenders required above, affect the rights or duties of the Agent under this Agreement or any other Loan  Document; (iv) any amendment contemplated by Section 2.10(b) or Section 3.03 in connection with the  use or administration of Term SOFR or a Benchmark Transition Event, as applicable, shall be effective  as contemplated by such Section 2.10(b) or Section 3.03, as applicable, and (ivv) the Fee Letter may be  amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto.    Notwithstanding anything to the contrary in this Agreement or any other Loan Document, no provider or  holder of any Bank Products or Cash Management Services shall have any voting or approval rights  hereunder (or be deemed a Lender) solely by virtue of its status as the provider or holder of such  agreements or products or the Obligations owing thereunder, nor shall the consent of any such provider  or holder be required (other than in their capacities as Lenders, to the extent applicable) for any matter  hereunder or under any of the other Loan Documents, including as to any matter relating to the Collateral  or the release of Collateral or any Loan Party.    If any Lender does not Consent (a “Non-Consenting Lender”) to a proposed amendment, waiver, consent  or release with respect to any Loan Document that requires the Consent of each Lender and that has been  approved by the Required Lenders, the Lead Borrower may replace such Non-Consenting Lender in  accordance with Section 10.13; provided, that, such amendment, waiver, consent or release can be  effected as a result of the assignment contemplated by such Section (together with all other such  assignments required by the Lead Borrower to be made pursuant to this paragraph).    10.02 Notices; Effectiveness; Electronic Communications.    (a) Notices Generally. 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 as follows:    (i) if to the Loan Parties, the Agent, the L/C Issuer or the Swing Line Lender, to  the address, telecopier number, electronic mail address specified for such Person on Schedule 10.02; and    (ii) if to any other Lender, to the address, telecopier number, electronic mail  address specified in its Administrative Questionnaire.    Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be  deemed to have been given when received; notices 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 delivered  through electronic communications to the extent provided in subsection (b) below, shall be effective as  provided in such subsection (b).    (b) Electronic Communications. Notices and other communications to the Loan Parties, the  Lenders and the L/C Issuer hereunder may be delivered or furnished by electronic communication  (including e-mail and Internet or intranet websites) pursuant to procedures approved by the 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 Agent that it is incapable of receiving  notices under such Article by electronic communication. The Agent may, 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.  

 

122        Exhibit 10.2      Unless the 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), provided that if such notice or other communication is not sent during the normal  business hours of the recipient, such notice or communication shall be deemed to have been sent at the  opening of business on the next Business Day for the recipient, 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.    (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  Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to any Loan  Party, 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 Loan Parties’ or the Agent’s  transmission of Borrower Materials 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  nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Agent  Party; provided, that, in no event shall any Agent Party have any liability to any Loan Party, 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 Loan Parties, the Agent, the L/C Issuer and the  Swing Line Lender may change its address or telecopier for notices and other communications  hereunder, or, solely with respect to communications, may change its telephone number, by notice to the  other parties hereto. Each other Lender may change its address or telecopier number for notices and  other communications hereunder by notice to the Lead Borrower, the Agent, the L/C Issuer and the  Swing Line Lender. In addition, each Lender agrees to notify the Agent from time to time to ensure that  the 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 Agent, L/C Issuer and Lenders. The Agent, the L/C Issuer and the Lenders  shall be entitled to rely and act upon any notices (including, without limitation, all Requests for Credit  Extensions) purportedly given by or on behalf of the Loan Parties 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 Loan Parties shall indemnify the 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 Loan Parties (including, without  limitation, pursuant to any Requests for Credit Extensions). All telephonic communications with the  Agent may be recorded by the Agent, and each of the parties hereto hereby consents to such recording.  

 

123        Exhibit 10.2      10.03 No Waiver; Cumulative Remedies. No failure by any Credit Party to exercise, and no  delay by any such Person in exercising, any right, remedy, power or privilege hereunder shall operate as  a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege  hereunder or under any other Loan Document preclude any other or further exercise thereof or the  exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges  provided herein and in the other Loan Documents are cumulative and not exclusive of any rights,  remedies, powers and privileges provided by law. Without limiting the generality of the foregoing, the  making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default or  Event of Default, regardless of whether any Credit Party may have had notice or knowledge of such  Default or Event of Default at the time.    10.04 Expenses; Indemnity; Damage Waiver.    (a) Costs and Expenses. The Borrowers shall pay all Credit Party Expenses.    (b) Indemnification by the Loan Parties. The Loan Parties shall indemnify the Agent (and  any sub-agent thereof), each other Credit Party, and each Related Party of any of the foregoing Persons  (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless (on an after  tax basis) from, any and all losses, claims, causes of action, damages, liabilities, settlement payments,  and reasonable, documented out-of-pocket costs, and related expenses (including the reasonable  documented out-of-pocket 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 any 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, or, in the case of the Agent (and any  sub-agents thereof) and their Related Parties only, the administration of this Agreement and the other  Loan Documents, (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, any bank advising or confirming a Letter of Credit or any other nominated person with  respect to a Letter of Credit seeking to be reimbursed or indemnified or compensated, and any third party  seeking to enforce the rights of a Borrower, beneficiary, nominated person, transferee, assignee of Letter  of Credit proceeds, or holder of an instrument or document related to any Letter of Credit), (iii) any  actual or alleged presence or release of Hazardous Materials on or from any property owned or operated  by any Loan Party or any of its Subsidiaries, or any Environmental Liability related in any way to any  Loan Party or any of its Subsidiaries, (iv) any claims of, or amounts paid by any Credit Party to, a Cash  Management Bank or other Person which has entered into a control agreement with any Credit Party  hereunder, or (v) 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 Borrower or any other Loan Party or any of the Loan Parties’ directors, shareholders or creditors, 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 comparative, contributory or sole 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 (A) are determined by a court of competent jurisdiction by final  and nonappealable judgment to have resulted from the gross negligence, bad faith or willful misconduct  of such Indemnitee or (B) result from a claim brought by a Borrower or any other Loan Party against an  Indemnitee for material breach of such Indemnitee’s obligations hereunder or under any other Loan  Document, if the Borrowers or such Loan Party has obtained a final and nonappealable judgment in its  favor on such claim as determined by a court of competent jurisdiction or (C) result from a dispute that  does not involve an act or omission of any Loan Party or its Affiliates and that is solely by an Indemnitee  

 

124        Exhibit 10.2      against another Indemnitee and does not involve any Indemnitee in its capacity as, or in fulfilling its role  as, an agent or arranger under this Agreement.    (c) Reimbursement by Lenders. Without limiting their obligations under Section 9.14  hereof, to the extent that the Loan Parties for any reason fail to indefeasibly pay any amount required  under subsection (a) or (b) of this Section to be paid by it, each Lender severally agrees to pay to the  Agent (or any such sub-agent), the L/C Issuer or such Related Party, as the case may be, such Lender’s  Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity  payment is sought) of such unpaid amount, provided 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  Agent (or any such sub-agent) or the L/C Issuer in its capacity as such, or against any Related Party of  any of the foregoing acting for the Agent (or any such sub-agent) or L/C Issuer 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 Loan Parties shall not assert, and hereby waive, 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 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 other than for direct or actual damages resulting from the  gross negligence or willful misconduct of such Indemnitee as determined by a final and nonappealable  judgment of a court of competent jurisdiction.    (e) Payments. All amounts due under this Section shall be payable on demand therefor.    (f) Survival. The agreements in this Section shall survive the resignation of the Agent and  the L/C Issuer, the assignment of any Commitment or Loan by any Lender, 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 Loan Parties  is made to any Credit Party, or any Credit Party 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 such Credit Party  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 Agent upon demand its Applicable Percentage (without duplication) of any  amount so recovered from or repaid by the 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 Federal Funds 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.  

 

125        Exhibit 10.2      (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 no Loan Party may assign or otherwise transfer any of its rights or obligations  hereunder or under any other Loan Document without the prior written Consent of the Agent and each  Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except  (i) to an Eligible Assignee in accordance with the provisions of Section 10.06(b), (ii) by way of  participation in accordance with the provisions of subsection Section 10.06(d), or (iii) by way of pledge  or assignment of a security interest subject to the restrictions of Section 10.06(f) (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 Credit  Parties) 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 Eligible  Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of  its Commitment(s) and the Loans (including for purposes of this Section 10.06(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 or an Affiliate of a Lender or an Approved Fund with respect to a Lender, 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 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 Agent and, so  long as no Default or Event of Default has occurred and is continuing, the Lead Borrower otherwise  consents (each such consent not to be unreasonably withheld or delayed and shall be deemed given if the  Lead Borrower has not responded to a request for such consent within seventen (710) Business Days);  provided, however, that concurrent assignments to members of an Assignee Group and concurrent  assignments from members of an Assignee Group to a single Eligible Assignee (or to an Eligible  Assignee and members of its Assignee Group) will be treated as a single assignment for purposes of  determining whether such minimum amount has been met;    (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 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 Lead Borrower (such consent not to be unreasonably  withheld or delayed) shall be required unless (1) a Default oran Event of Default has occurred and is  

 

126        Exhibit 10.2      continuing at the time of such assignment or (2) such assignment is to a Lender, an Affiliate of a Lender  or an Approved Fund; and    (B) the consent of the Agent (such consent not to be unreasonably withheld or  delayed) shall be required for assignments in respect of any Commitment 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; and    (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 in respect of the assignment of any  Commitment.    (iv) Assignment and Assumption. The parties to each assignment shall execute and  deliver to the Agent an Assignment and Assumption, together with a processing and recordation fee of  $3,500, provided, however, that the Agent may, in its sole discretion, elect to waive such processing and  recordation fee in the case of any assignment. The assignee, if it shall not be a Lender, shall deliver to the  Agent an Administrative Questionnaire.    Subject to acceptance and recording thereof by the Agent pursuant to subsection (c) of this Section, from  and after the effective date specified in each Assignment and Assumption, the Eligible 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. Upon request, the Borrowers (at their 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 Section 10.06(d).    (c) Register. The Agent, acting solely for this purpose as an agent of the Borrowers, shall  maintain at the Agent’s Office a copy of each Assignment and Assumption delivered to it 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 Loan Parties, the Agent and the Lenders may treat each Person whose name is  recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this  Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the  Lead 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  Loan Parties or the Agent, sell participations to any Person (other than a natural person or the Loan  Parties or any of the Loan Parties’ 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  

 

127        Exhibit 10.2      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 Loan Parties, the 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. Any Participant shall agree in writing to comply with all  confidentiality obligations set forth in Section 10.07 as if such Participant was a Lender hereunder.    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 Loan Parties agree 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 Section 10.06(b). 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 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 Borrowers, 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 Agent (in its capacity as Agent) shall have no  responsibility for maintaining a Participant Register.    (e) Limitations upon Participant Rights. A Participant shall not be entitled to receive any  greater payment under Section 3.01 or 3.04 than the applicable Lender would have been entitled to  receive with respect to the participation sold to such Participant, unless the sale of the participation to  such Participant is made with the Lead Borrower’s prior written consent. A Participant that would be a  Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 3.01 unless the Lead  Borrower is notified of the participation sold to such Participant and such Participant agrees, for the  benefit of the Loan Parties, to comply with Section 3.01(e) as though it were a Lender.    (f) 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.    (g) Electronic Execution of Assignments. The words “execution,” “signed,” “signature,”  and words of like import in any Assignment and Assumption shall be deemed to include electronic  signatures 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  

 

128        Exhibit 10.2      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.    (h) Resignation as L/C Issuer or Swing Line Lender after Assignment. Notwithstanding  anything to the contrary contained herein, if at any time Wells Fargo assigns all of its Commitment and  Loans pursuant to subsection (b) above, Wells Fargo may, (i) upon thirty (30) days' notice to the Lead  Borrower and the Lenders, resign as L/C Issuer and/or (ii) upon thirty (30) days' notice to the Lead  Borrower, Wells Fargo may resign as Swing Line Lender. In the event of any such resignation as L/C  Issuer or Swing Line Lender, the Lead Borrower shall be entitled to appoint from among the Lenders a  successor L/C Issuer or Swing Line Lender hereunder; provided, that, no failure by the Lead Borrower to  appoint any such successor shall affect the resignation of Wells Fargo as L/C Issuer or Swing Line  Lender, as the case may be. If Wells Fargo 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 pursuant to Section 2.03(c)). If Wells Fargo  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  reasonably satisfactory to Wells Fargo to effectively assume the obligations of Wells Fargo with respect  to such Letters of Credit.    10.07 Treatment of Certain Information; Confidentiality. Each of the Credit Parties agrees  to maintain the confidentiality of the Information (as defined below), except that Information may be  disclosed (a) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers,  employees, agents, funding sources, attorneys, advisors and representatives (it being understood that the  Persons to whom such disclosure is made will be informed of the confidential nature of such Information  and instructed to keep such Information confidential), (b) to the extent requested by any regulatory  authority purporting to have jurisdiction over it (including any self-regulatory authority, such as the  National Association of Insurance Commissioners), (c) to the extent required by applicable Laws or  regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) 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, (f) subject to an agreement containing provisions substantially the same as those  of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in,  any of its rights or obligations under this Agreement or (ii) any actual or prospective counterparty (or its  advisors) to any swap or derivative transaction relating to any Loan Party and its obligations, (g) with the  consent of the Lead Borrower or (h) to the extent such Information (x) becomes publicly available other  than as a result of a breach of this Section or (y) becomes available to any Credit Party or any of their  respective Affiliates on a non-confidential basis from a source other than the Loan Parties.    For purposes of this Section, “Information” means all information received from the Loan Parties or any  Subsidiary thereof relating to the Loan Parties or any Subsidiary thereof or their respective businesses,  other than any such information that is available to any Credit Party on a non-confidential basis prior to  disclosure by the Loan Parties or any Subsidiary thereof, provided that, in the case of information  received from any Loan Party or any Subsidiary after the Closing Date, such information is clearly  identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of  

 

129        Exhibit 10.2      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.    Each of the Credit Parties acknowledges that (a) the Information may include material non-public  information concerning the Loan Parties or a Subsidiary, as the case may be, (b) it has developed  compliance procedures regarding the use of material non-public information and (c) it will handle such  material non-public information in accordance with applicable Law, including Federal and state  securities Laws.    10.08 Right of Setoff. If an Event of Default shall have occurred and be continuing or if any  Lender shall have been served with a trustee process or similar attachment relating to property of a Loan  Party, each Lender, the L/C Issuer and each of their respective Affiliates is hereby authorized at any time  and from time to time, after obtaining the prior written consent of the Agent or the Required Lenders, 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 the Borrowers or any other Loan Party against any and all of the  Obligations now or hereafter existing under this Agreement or any other Loan Document to such Lender  or the L/C Issuer, regardless of the adequacy of the Collateral, and irrespective of whether or not such  Lender or the L/C Issuer shall have made any demand under this Agreement or any other Loan Document  and although such obligations of the Borrowers or such Loan Party may be contingent or unmatured or  are owed to a branch or office of such Lender or the L/C Issuer different from the branch or office  holding such deposit or obligated on such indebtedness. 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 Lead Borrower and the 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  maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”). If the Agent  or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest  shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the  Borrowers. In determining whether the interest contracted for, charged, or received by the Agent or a  Lender exceeds the Maximum 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 Agent and when the Agent shall have received counterparts hereof that,  when taken together, bear the signatures of each of the other parties hereto. DeliveryExecution of an  executedany such counterpart may be executed by means of (a) an electronic signature page of this  

 

130        Exhibit 10.2      Agreement by telecopy, pdfthat complies with the federal Electronic Signatures in Global and National  Commerce Act, as in effect from time to time, state enactments of the Uniform Electronic Transactions  Act, as in effect from time to time, or any other relevant and applicable electronic transmission shall be  as effective as delivery of asignatures law; (b) an original manual signature; or (c) a faxed, scanned, or  photocopied manual signature. Each electronic signature or faxed, scanned, or photocopied manual  signature shall for all purposes have the same validity, legal effect, and admissibility in evidence as an  original manual signature. The Agent reserves the right, in its sole discretion, to accept, deny, or  condition acceptance of any electronic signature on this Agreement or on any notice delivered to the  Agent under this Agreement. Any party delivering an executed counterpart of this Agreement by faxed,  scanned or photocopied manual signature shall also deliver an original manually executed counterpart of  this Agreement, but the failure to deliver an original manually executed counterpart shall not affect the  validity, enforceability and binding effect of this Agreement. The foregoing shall apply to each other  Loan Document, and any notice delivered hereunder or thereunder, mutatis mutandis.    10.11 Survival. 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 Credit Parties, regardless of any investigation made by any Credit  Party or on their behalf and notwithstanding that any Credit Party may have had notice or knowledge of  any Default or Event of Default at the time of any Credit Extension, and shall continue in full force and  effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied or any  Letter of Credit shall remain outstanding. Further, the provisions of Sections 3.01, 3.04, 3.05 and 10.04  and Article IX shall survive and remain in full force and effect regardless of the repayment of the  Obligations, the expiration or termination of the Letters of Credit and the Commitments or the  termination of this Agreement or any provision hereof. In connection with the termination of this  Agreement and the release and termination of the security interests in the Collateral, the Agent may  require such indemnities and collateral security as it shall reasonably deem necessary or appropriate to  protect the Credit Parties against (a) loss on account of credits previously applied to the Obligations that  may subsequently be reversed or revoked, (b) any obligations that may thereafter arise with respect to the  Other Liabilities and (c) any Obligations that may thereafter arise under Section 10.04 other than  contingent indemnification obligations for which a claim or demand for payment has not been made and  other than contingent indemnification obligations in respect of matters or circumstances that are not  known to Agent, any Lender or any Loan Party that might result in any loss, cost, damage or expense  (including attorneys’ fees and legal expenses) for which Agent or any Lender is entitled to  indemnification hereunder or under any other Loan Document.    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.    10.13 Replacement of Lenders. If any Lender requests compensation under Section 3.04, or  if the Borrowers are required to pay any additional amount to any Lender or any Governmental Authority  for the account of any Lender pursuant to Section 3.01, or if any Lender is a Defaulting Lender or a  Non-Consenting Lender, then the Borrowers may, at their sole expense and effort, upon notice to such  Lender and the Agent, require such Lender 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 and obligations under this Agreement and the related Loan Documents to an assignee that shall  

 

131        Exhibit 10.2      assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment),  provided that:    (a) Unless waived by the Agent,the Borrowers shall have paid to the Agent the assignment  fee specified in Section 10.06(b);    (b) such Lender shall have received payment of an amount equal to the outstanding  principal of its Loans, 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 Borrowers (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; and    (d) such assignment does not conflict with applicable Laws.    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 Borrowers 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 LAWS OF THE STATE OF NEW YORK WITHOUT  GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF, BUT INCLUDING  SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.    (b) SUBMISSION TO JURISDICTION. EACH LOAN PARTY IRREVOCABLY AND  UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE  JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK  COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE UNITED STATES  DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, 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 LOAN PARTIES  HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN  RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN  SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY  APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE LOAN 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  ANY CREDIT PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING  RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY LOAN  PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.    (c) WAIVER OF VENUE. EACH LOAN PARTY IRREVOCABLY AND  UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE  

 

132        Exhibit 10.2      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 LOAN 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.    (d) 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.    (e) ACTIONS COMMENCED BY LOAN PARTIES. EACH LOAN PARTY AGREES  THAT ANY ACTION COMMENCED BY ANY LOAN PARTY ASSERTING ANY CLAIM OR  COUNTERCLAIM ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY  OTHER LOAN DOCUMENT SHALL BE BROUGHT SOLELY IN A COURT OF THE STATE OF  NEW YORK SITTING IN NEW YORK COUNTY OR THE UNITED STATES DISTRICT COURT  FOR THE SOUTHERN DISTRICT OF NEW YORK, AS THE AGENT MAY ELECT IN ITS SOLE  DISCRETION, AND CONSENTS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS WITH  RESPECT TO ANY SUCH ACTION.    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 No Advisory or Fiduciary Responsibility. In connection with all aspects of each  transaction contemplated hereby, the Loan Parties each acknowledge and agree that: (i) the credit facility  provided for hereunder and any related arranging or other services in connection therewith (including in  connection with any amendment, waiver or other modification hereof or of any other Loan Document)  are an arm’s-length commercial transaction between the Loan Parties, on the one hand, and the Credit  Parties, on the other hand, and each of the Loan Parties is capable of evaluating and understanding and  understands and accepts the terms, risks and conditions of the transactions contemplated hereby and by  the other Loan Documents (including any amendment, waiver or other modification hereof or thereof);  (ii) in connection with the process leading to such transaction, the each Credit Party is and has been  acting solely as a principal and is not the financial advisor, agent or fiduciary, for the Loan Parties or any  of their respective Affiliates, stockholders, creditors or employees or any other Person; (iii) none of the  Credit Parties has assumed or will assume an advisory, agency or fiduciary responsibility in favor of the  Loan Parties with respect to any of the transactions contemplated hereby or the process leading thereto,  including with respect to any amendment, waiver or other modification hereof or of any other Loan  Document (irrespective of whether any of the Credit Parties has advised or is currently advising any Loan  Party or any of its Affiliates on other matters) and none of the Credit Parties has any obligation to any  

 

133        Exhibit 10.2      Loan Party or any of its Affiliates with respect to the transactions contemplated hereby except those  obligations expressly set forth herein and in the other Loan Documents; (iv) the Credit Parties and their  respective Affiliates may be engaged in a broad range of transactions that involve interests that differ  from those of the Loan Parties and their respective Affiliates, and none of the Credit Parties has any  obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary relationship;  and (v) the Credit Parties have not provided and will not provide any legal, accounting, regulatory or tax  advice with respect to any of the transactions contemplated hereby (including any amendment, waiver or  other modification hereof or of any other Loan Document) and each of the Loan Parties has consulted its  own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate. Each of the  Loan Parties hereby waives and releases, to the fullest extent permitted by law, any claims that it may  have against each of the Credit Parties with respect to any breach or alleged breach of agency or  fiduciary duty.    10.17 USA PATRIOTPatriot Act Notice. Each Lender that is subject to the Patriot Act (as  hereinafter defined) and the Agent (for itself and not on behalf of any Lender) hereby notifies the Loan  Parties that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into  law October 26, 2001)) (the “Patriot Act”), it is required to obtain, verify and record information that  identifies each Loan Party, which information includes the name and address of each Loan Party and  other information that will allow such Lender or the Agent, as applicable, to identify each Loan Party in  accordance with the Patriot Act. Each Loan Party is in compliance, in all material respects, with the  Patriot Act. No part of the proceeds of the Loans or Letters of Credit will be used by the Loan Parties,  directly or indirectly, for any payments to any governmental official or employee, political party, official  of a political party, candidate for political office, or anyone else acting in an official capacity, in order to  obtain, retain or direct business or obtain any improper advantage, in violation of the United States  Foreign Corrupt Practices Act of 1977, as amended.    10.18 Foreign AssetAssets Control Regulations. Neither of the advance of the Loans nor the  use of the proceeds of any thereof will violate the Trading With the Enemy Act (50 U.S.C. § 1 et seq., as  amended) (the “Trading With the Enemy Act”) or any of the foreign assets control regulations of the  United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) (the “Foreign Assets  Control Regulations”) or any enabling legislation or executive order relating thereto (which for the  avoidance of doubt shall include, but shall not be limited to (a) Executive Order 13224 of September 21,  2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit,  or Support Terrorism (66 Fed. Reg. 49079 (2001)) (the “Executive Order”) and (b) the Uniting and  Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism  Act of 2001 (Public Law 107-56)). Furthermore, none of the Borrowers or their Affiliates (a) is or will  become a “blocked person” as described in the Executive Order, the Trading With the Enemy Act or the  Foreign Assets Control Regulations or (b) engages or will engage in any dealings or transactions, or be  otherwise associated, with any such “blocked person” or in any manner violative of any such order.    10.19 Time of the Essence. Time is of the essence of the Loan Documents.    10.20 [Reserved].    10.21 Press Releases. Each Loan Party consents to the publication by the Agent, any Lender  or their respective representatives of advertising material, including any “tombstone,” press release or  comparable advertising, on its website or in other marketing materials of Agent, relating to the financing  transactions contemplated by this Agreement using any Loan Party’s name, product photographs, logo,  trademark or other insignia. The Agent or such Lender shall provide a draft reasonably in advance of any  advertising material, “tomb stone” or press release to the Lead Borrower for review and comment prior to  the publication thereof. The Agent reserves the right to provide to industry trade organizations and loan  

 

134        Exhibit 10.2      syndication and pricing reporting services information necessary and customary for inclusion in league  table measurements.    10.22 Additional Waivers.    (a) The Obligations are the joint and several obligation of each Loan Party. To the fullest  extent permitted by Applicable Law, the obligations of each Loan Party shall not be affected by (i) the  failure of any Credit Party to assert any claim or demand or to enforce or exercise any right or remedy  against any other Loan Party under the provisions of this Agreement, any other Loan Document or  otherwise, (ii) any rescission, waiver, amendment or modification of, or any release from any of the  terms or provisions of, this Agreement or any other Loan Document, or (iii) the failure to perfect any  security interest in, or the release of, any of the Collateral or other security held by or on behalf of the  Agent or any other Credit Party.    (b) The obligations of each Loan Party shall not be subject to any reduction, limitation,  impairment or termination for any reason (other than the indefeasible payment in full in cash of the  Obligations after the termination of the Commitments), including any claim of waiver, release, surrender,  alteration or compromise of any of the Obligations, and shall not be subject to any defense or setoff,  counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or  unenforceability of any of the Obligations or otherwise. Without limiting the generality of the foregoing,  the obligations of each Loan Party hereunder shall not be discharged or impaired or otherwise affected by  the failure of the Agent or any other Credit Party to assert any claim or demand or to enforce any remedy  under this Agreement, any other Loan Document or any other agreement, by any waiver or modification  of any provision of any thereof, any default, failure or delay, willful or otherwise, in the performance of  any of the Obligations, or by any other act or omission that may or might in any manner or to any extent  vary the risk of any Loan Party or that would otherwise operate as a discharge of any Loan Party as a  matter of law or equity (other than the indefeasible payment in full in cash of all the Obligations after the  termination of the Commitments).    (c) To the fullest extent permitted by applicable Law, each Loan Party waives any defense  based on or arising out of any defense of any other Loan Party or the unenforceability of the Obligations  or any part thereof from any cause, or the cessation from any cause of the liability of any other Loan  Party, other than the indefeasible payment in full in cash of all the Obligations and the termination of the  Commitments. The Agent and the other Credit Parties may, at their election, foreclose on any security  held by one or more of them by one or more judicial or non-judicial sales, accept an assignment of any  such security in lieu of foreclosure, compromise or adjust any part of the Obligations, make any other  accommodation with any other Loan Party, or exercise any other right or remedy available to them  against any other Loan Party, without affecting or impairing in any way the liability of any Loan Party  hereunder except to the extent that all the Obligations have been indefeasibly paid in full in cash and the  Commitments have been terminated. Each Loan Party waives any defense arising out of any such  election even though such election operates, pursuant to applicable Law, to impair or to extinguish any  right of reimbursement or subrogation or other right or remedy of such Loan Party against any other Loan  Party, as the case may be, or any security.    (d) Each Borrower is obligated to repay the Obligations as joint and several obligors under  this Agreement. Upon payment by any Loan Party of any Obligations, all rights of such Loan Party  against any other Loan Party arising as a result thereof by way of right of subrogation, contribution,  reimbursement, indemnity or otherwise shall in all respects be subordinate and junior in right of payment  to the prior indefeasible payment in full in cash of all the Obligations and the termination of the  Commitments. In addition, any indebtedness of any Loan Party now or hereafter held by any other Loan  Party is hereby subordinated in right of payment to the prior indefeasible payment in full of the  

 

135        Exhibit 10.2      Obligations and no Loan Party will demand, sue for or otherwise attempt to collect any such  indebtedness. If any amount shall erroneously be paid to any Loan Party on account of (i) such  subrogation, contribution, reimbursement, indemnity or similar right or (ii) any such indebtedness of any  Loan Party, such amount shall be held in trust for the benefit of the Credit Parties and shall forthwith be  paid to the Agent to be credited against the payment of the Obligations, whether matured or unmatured,  in accordance with the terms of this Agreement and the other Loan Documents. Subject to the foregoing,  to the extent that any Borrower shall, under this Agreement as a joint and several obligor, repay any of  the Obligations constituting Loans made to another Borrower hereunder or other Obligations incurred  directly and primarily by any other Borrower (an “Accommodation Payment”), then the Borrower  making such Accommodation Payment shall be entitled to contribution and indemnification from, and be  reimbursed by, each of the other Borrowers in an amount, for each of such other Borrowers, equal to a  fraction of such Accommodation Payment, the numerator of which fraction is such other Borrower’s  Allocable Amount and the denominator of which is the sum of the Allocable Amounts of all of the  Borrowers. As of any date of determination, the “Allocable Amount” of each Borrower shall be equal to  the maximum amount of liability for Accommodation Payments which could be asserted against such  Borrower hereunder without (a) rendering such Borrower “insolvent” within the meaning of Section 101  (31) of the Bankruptcy Code of the United States, Section 2 of the Uniform Fraudulent Transfer Act  (“UFTA”), Section 2 of the Uniform Fraudulent Conveyance Act (“UFCA”) or the applicable section of  the Uniform Voidable Transactions Act (the “UVTA”), (b) leaving such Borrower with unreasonably  small capital or assets, within the meaning of Section 548 of the Bankruptcy Code of the United States,  Section 4 of the UFTA, Section 5 of the UFCA, or the applicable section of the UVTA, or (c) leaving  such Borrower unable to pay its debts as they become due within the meaning of Section 548 of the  Bankruptcy Code or Section 4 of the UFTA, Section 5 of the UFCA or the applicable section of the  UVTA.    10.23 No Strict Construction. The parties hereto have participated jointly in the negotiation  and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises,  this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or burden  of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this  Agreement.    10.24 Attachments. The exhibits, schedules and annexes attached to this Agreement are  incorporated herein and shall be considered a part of this Agreement for the purposes stated herein,  except that in the event of any conflict between any of the provisions of such exhibits and the provisions  of this Agreement, the provisions of this Agreement shall prevail.    10.25 Keepwell. Each Qualified ECP Guarantor hereby jointly and severally absolutely,  unconditionally and irrevocably undertakes to provide such funds or other support as may be needed  from time to time by each other Loan Party to honor all of its obligations under the Facility Guaranty in  respect of Swap Obligations (provided, however, that each Qualified ECP Guarantor shall only be liable  under this Section 10.25 for the maximum amount of such liability that can be hereby incurred without  rendering its obligations under this Section 10.25, or otherwise under the Facility Guaranty, voidable  under applicable Law relating to fraudulent conveyance or fraudulent transfer, and not for any greater  amount). The obligations of each Qualified ECP Guarantor under this Section shall remain in full force  and effect until payment in full of the Obligations (other than contingent indemnification obligations for  which a claim has not been asserted. Each Qualified ECP Guarantor intends that this Section 10.25  constitute, and this Section 10.25 shall be deemed to constitute, a “keepwell, support, or other  agreement” for the benefit of each other Loan Party for all purposes of Section 1a(18)(A)(v)(II) of the  Commodity Exchange Act.    10.26 Acknowledgment and Consent to Bail-In of Affected Financial Institutions.      

 

136        Exhibit 10.2      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 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  party hereto 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.    10.27 Acknowledgment Regarding Any Supported QFCs.        To the extent that the Loan Documents provide support, through a guarantee or otherwise, for  Swap Contracts 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): 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.  

 

137        Exhibit 10.2      10.28 Erroneous Payments.        (a) Each Lender, each L/C Issuer, each other Provider and any other party hereto hereby  severally agrees that if (i) the Agent notifies (which such notice shall be conclusive absent manifest  error) such Lender or L/C Issuer or any Provider (or the Lender which is an Affiliate of a Lender, L/C  Issuer or Provider) or any other Person that has received funds from the Agent or any of its Affiliates,  either for its own account or on behalf of a Lender, L/C Issuer or Provider (each such recipient, a  “Payment Recipient”) that the Agent has determined in its sole discretion that any funds received by such  Payment Recipient were erroneously transmitted to, or otherwise erroneously or mistakenly received by,  such Payment Recipient (whether or not known to such Payment Recipient) or (ii) any Payment  Recipient receives any payment from the Agent (or any of its Affiliates) (x) that is in a different amount  than, or on a different date from, that specified in a notice of payment, prepayment or repayment sent by  the Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, as applicable,  (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the  Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, as applicable, or  (z) that such Payment Recipient otherwise becomes aware was transmitted or received in error or by  mistake (in whole or in part) then, in each case, an error in payment shall be presumed to have been made  (any such amounts specified in clauses (i) or (ii) of this Section 10.28(a), whether received as a payment,  prepayment or repayment of principal, interest, fees, distribution or otherwise; individually and  collectively, an “Erroneous Payment”), then, in each case, such Payment Recipient is deemed to have  knowledge of such error at the time of its receipt of such Erroneous Payment; provided that nothing in  this Section shall require the Agent to provide any of the notices specified in clauses (i) or (ii) above.  Each Payment Recipient agrees that it shall not assert any right or claim to any Erroneous Payment, and  hereby waives any claim, counterclaim, defense or right of set-off or recoupment with respect to any  demand, claim or counterclaim by the Agent for the return of any Erroneous Payments, including without  limitation waiver of any defense based on “discharge for value” or any similar doctrine.    (b) Without limiting the immediately preceding clause (a), each Payment Recipient agrees  that, in the case of clause (a)(ii) above, it shall promptly notify the Agent in writing of such occurrence.    (c) In the case of either clause (a)(i) or (a)(ii) above, such Erroneous Payment shall at all  times remain the property of the Agent and shall be segregated by the Payment Recipient and held in  trust for the benefit of the Agent, and upon demand from the Agent such Payment Recipient shall (or,  shall cause any Person who received any portion of an Erroneous Payment on its behalf to), promptly, but  in all events no later than one Business Day thereafter, return to the Agent the amount of any such  Erroneous Payment (or portion thereof) as to which such a demand was made in same day funds and in  the currency so received, together with interest thereon in respect of each day from and including the date  such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such  amount is repaid to the Agent at the greater of the Federal Funds Rate and a rate determined by the Agent  in accordance with banking industry rules on interbank compensation from time to time in effect.    (d) In the event that an Erroneous Payment (or portion thereof) is not recovered by the  Agent for any reason, after demand therefor by the Agent in accordance with immediately preceding  clause (c), from any Lender that is a Payment Recipient or an Affiliate of a Payment Recipient (such  unrecovered amount as to such Lender, an “Erroneous Payment Return Deficiency”), then at the sole  discretion of the Agent and upon the Agent’s written notice to such Lender (i) such Lender shall be  deemed to have made a cashless assignment of the full face amount of the portion of its Loans (but not its  Commitments) with respect to which such Erroneous Payment was made (the “Erroneous Payment  Impacted Loans”) to the Agent or, at the option of the Agent, the Agent’s applicable lending affiliate  (such assignee, the “Agent Assignee”) in an amount that is equal to the Erroneous Payment Return  Deficiency (or such lesser amount as the Agent may specify) (such assignment of the Loans (but not  

 

138        Exhibit 10.2      Commitments) of the Erroneous Payment Impacted Loans, the “Erroneous Payment Deficiency  Assignment”) plus any accrued and unpaid interest on such assigned amount, without further consent or  approval of any party hereto and without any payment by the Agent Assignee as the assignee of such  Erroneous Payment Deficiency Assignment. Without limitation of its rights hereunder, following the  effectiveness of the Erroneous Payment Deficiency Assignment, the Agent may make a cashless  reassignment to the applicable assigning Lender of any Erroneous Payment Deficiency Assignment at  any time by written notice to the applicable assigning Lender and upon such reassignment all of the  Loans assigned pursuant to such Erroneous Payment Deficiency Assignment shall be reassigned to such  Lender without any requirement for payment or other consideration. The parties hereto acknowledge and  agree that (1) any assignment contemplated in this clause (d) shall be made without any requirement for  any payment or other consideration paid by the applicable assignee or received by the assignor, (2) the  provisions of this clause (d) shall govern in the event of any conflict with the terms and conditions of  Section 10.06 and (3) the Agent may reflect such assignments in the Register without further consent or  action by any other Person.    (e) Each party hereto hereby agrees that (x) in the event an Erroneous Payment (or portion  thereof) is not recovered from any Payment Recipient that has received such Erroneous Payment (or  portion thereof) for any reason, the Agent (1) shall be subrogated to all the rights of such Payment  Recipient and (2) is authorized to set off, net and apply any and all amounts at any time owing to such  Payment Recipient under any Loan Document, or otherwise payable or distributable by the Agent to such  Payment Recipient from any source, against any amount due to the Agent under this Section 10.28 or  under the indemnification provisions of this Agreement, (y) the receipt of an Erroneous Payment by a  Payment Recipient shall not for the purpose of this Agreement be treated as a payment, prepayment,  repayment, discharge or other satisfaction of any Obligations owed by the Borrowers or any other Loan  Party, except, in each case, to the extent such Erroneous Payment is, and solely with respect to the  amount of such Erroneous Payment that is, comprised of funds received by the Agent from the Borrowers  or any other Loan Party for the purpose of making for a payment on the Obligations and (z) to the extent  that an Erroneous Payment was in any way or at any time credited as payment or satisfaction of any of  the Obligations, the Obligations or any part thereof that were so credited, and all rights of the Payment  Recipient, as the case may be, shall be reinstated and continue in full force and effect as if such payment  or satisfaction had never been received.    (f) Each party’s obligations under this Section 10.28 shall survive the resignation or  replacement of the Agent or any transfer of right or obligations by, or the replacement of, a Lender, the  termination of the Commitments or the repayment, satisfaction or discharge of all Obligations (or any  portion thereof) under any Loan Document.    (g) The provisions of this Section 10.28 to the contrary notwithstanding, (i) nothing in this  Section 10.28 will constitute a waiver or release of any claim of any party hereunder arising from any  Payment Recipient’s receipt of an Erroneous Payment and (ii) there will only be deemed to be a recovery  of the Erroneous Payment to the extent that the Agent has received payment from the Payment Recipient  in immediately available funds the Erroneous Payment Return, whether directly from the Payment  Recipient, as a result of the exercise by the Agent of its rights of subrogation or set off as set forth above  in clause (e) or as a result of the receipt by Agent Assignee of a payment of the outstanding principal  balance of the Loans assigned to Agent Assignee pursuant to an Erroneous Payment Deficiency  Assignment, but excluding any other amounts in respect thereof (it being agreed that any payments of  interest, fees, expenses or other amounts (other than principal) received by Agent Assignee in respect of  the Loans assigned to Agent Assignee pursuant to an Erroneous Payment Deficiency Assignment shall be  the sole property of the Agent Assignee and shall not constitute a recovery of the Erroneous Payment).    [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]  

 

Signature Page to Credit Agreement        Exhibit 10.2      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by  their respective authorized officers as of the date first above written.    [BORROWERS]    By:      Name:      Title:   

 

Signature Page to Credit Agreement        Exhibit 10.2      WELLS FARGO BANK, NATIONAL  ASSOCIATION, as Agent and as Lender    By:    Name:  Its Authorized Signatory  

 

Signature Page to Credit Agreement        Exhibit 10.2      WELLS FARGO BANK, NATIONAL  ASSOCIATION as L/C Issuer, as a Lender and  Swing Line Lender    By:    Name:  Its Authorized Signatoryex1014secondamendmenttoe

Exhibit 10.14            SECOND AMENDMENT TO EMPLOYMENT AGREEMENT    This Second Amendment to Employment Agreement (this “Second Amendment”) is entered into  by and between The Lovesac Company, a Delaware corporation (the “Company”), and Shawn Nelson (the  “Executive”), effective as of March 24, 2022 (the “Effective Date”).     RECITALS     WHEREAS, Executive and the Company previously entered into that certain Employment  Agreement on October 26, 2017, as amended effective October 2, 2019 (the “Employment Agreement”);  and   WHEREAS, Executive and the Company wish to amend the Employment Agreement to  memorialize certain agreements between them regarding Executive’s employment relationship.    AGREEMENT  NOW, THEREFORE, in consideration of the foregoing, of the mutual promises contained herein  and of other good and valuable consideration, the receipt and sufficiency of which are hereby  acknowledged, the parties hereby agree as follows:  1. Salary.  Section 3.1 of the Employment Agreement is hereby amended and restated as follows:  3.1  Salary. As compensation for all services to be rendered pursuant to this Agreement, the  Company shall pay the Executive during the Term a salary of $445,100 per annum (the  “Base Salary”), payable not less frequently than monthly, less such deductions as shall be  required to be withheld by applicable rules and regulations. The Base Salary shall not  preclude raises, equity compensation, annual bonus and other compensation or  incentives, as set forth herein or, should the Board, in its sole and absolute discretion, so  determine to provide such additional compensation or incentives to the Executive.  The  Executive’s total compensation, including Base Salary, Annual Bonus and equity  compensation opportunities shall be subject to annual review by the Board (or a  compensation committee thereof) and adjustments considered based upon individual  performance, market alignment or other factors. The Executive acknowledges and  understands that the Board is under no obligation to increase any component of the  Executive’s total compensation pursuant to this review.  2. Annual Bonus.  Section 3.2 of the Employment Agreement is hereby amended and restated as  follows:  3.2  Annual Bonus.  (a)  The Company shall pay the Executive during the Term an annual bonus with a  target value of 60% of the Executive’s Base Salary up to 120% of the  Executive’s Base Salary (except as otherwise provided below in this paragraph)  (“Annual Bonus”), subject to the Company’s achievements relative to certain  performance targets established by the Board (or a compensation committee  thereof) for the performance period, and individual performance, as applicable.   The terms and conditions of Annual Bonuses shall be governed by the  Company’s Annual Incentive Compensation Plan.     3. Incentive Compensation.  The following Section 3.3 is hereby added to the Employment  Agreement as follows:  

 

Exhibit 10.14      2      3.3 Equity Compensation.     (a)  Annual Equity Award.  The Executive shall be eligible to receive an annual  award of restricted stock units (“RSUs”) valued at $765,000, the terms of which  shall be governed by the Company’s 2017 Equity Incentive Plan, as amended  (“2017 Plan”), including any equity grant documents thereunder.  Half of such  RSUs shall be subject to time-based vesting and half of such RSUs shall be  subject to performance vesting.     (b) Long Term Performance Award.  The Executive shall be eligible to receive an  annual award of RSUs valued up to $1,649,000 pursuant to the Company’s Long  Term Performance Award (“LTPA”) Program. RSU’s granted under the LTPA  Program are eligible to vest based on the Company’s achievements relative to  accelerated performance targets set by the Board (or a compensation committee  thereof) for a specific performance period.     4. Governing Law.   Section 6.4 of the Employment Agreement is hereby amended and restated as  follows:  6.4  Governing Law. This Agreement shall be governed by and construed and enforced in  accordance with and subject to, the laws of the State of Connecticut applicable to  agreements made and to be performed entirely within such state.    5. Entire Agreement.  The Employment Agreement, as amended by this Second Amendment, the  Company’s 2017 Plan, including any equity grant documents under such plan, the Company’s  Annual Incentive Compensation Plan, and the Company’s Long Term Performance Award  Program, constitute the entire agreement between the parties with respect to the subject matter  hereof and thereof, and supersede all prior and contemporaneous understandings, agreements,  representations and warranties, both written and oral, to the extent they relate in any way to the  subject matter hereof or thereof.  In the event of an inconsistency between the terms of this  Second Amendment and the Employment Agreement, the terms of this Second Amendment will  control.  Except as modified hereby, all terms and conditions of the Employment Agreement will  remain in full force and effect and likewise apply to this Second Amendment.  6. Governing Law. This Second Amendment shall be governed by and construed and enforced in  accordance with and subject to, the laws of the State of Connecticut applicable to agreements  made and to be performed entirely within such state.  7. Counterparts; Facsimile Signatures.  This Second Amendment may be executed in separate  counterparts, each of which shall be deemed an original, but all of which together shall constitute  one and the same instrument.  Signatures to this Second Amendment may be transmitted by e- mail in pdf or similar format or facsimile and such transmissions shall be deemed an original.              

 

Exhibit 10.14      3      IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment as of the date first  set forth above.  THE LOVESAC COMPANY     By: /s/ Mary Fox  Name: Mary Fox  Title: President and COO       SHAWN NELSON     By: /s/ Shawn Nelson

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