Document:

EX-10.1

   

  Exhibit 10.1

  Execution Version

  FIRST AMENDMENT TO CREDIT AGREEMENT

  THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), effective as of May 27, 2022 (the “Amendment Effective Date”), is among DZS Inc., a Delaware corporation, as Borrower, the other Loan Parties party hereto, the Lenders party hereto, and JPMORGAN CHASE BANK, N.A., as Administrative Agent.

  RECITALS:

  WHEREAS, the Borrower, the other Loan Parties party thereto, the Administrative Agent, and the lenders listed on the signature pages thereto have entered into that certain Credit Agreement dated as of February 9, 2022 (as amended hereby and as the same may hereafter be amended or otherwise modified, the “Credit Agreement”).

  WHEREAS, the Borrower has entered into that certain Asset Purchase Agreement, dated as of April 29, 2022 (the “Adaptive Spectrum APA”), with Adaptive Spectrum and Signal Alignment, Incorporated, a California corporation, pursuant to which the Borrower will acquire the Purchased Assets, as defined in the Adaptive Spectrum APA (such acquisition, the “Adaptive Spectrum Acquisition”).  The Adaptive Spectrum Acquisition is not permitted under Section 6.04 of the Credit Agreement (prior to giving effect to this Amendment).

  WHEREAS, the Borrower has requested that (a) the Administrative Agent and the Required Lenders consent to the Adaptive Spectrum Acquisition and (b) the Term A Lenders make the Term A Loans, and the parties desire to amend the Credit Agreement to, among other things, reflect the foregoing.

  WHEREAS, each New Lender wishes to become a Lender party to the Credit Agreement.

  NOW, THEREFORE, in consideration of the premises herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows effective as of the Amendment Effective Date unless otherwise indicated:

  ARTICLE 1
Definitions

  Section 1.1	Definitions.  Capitalized terms used in this Amendment, to the extent not otherwise defined herein, shall have the same meanings as in the Credit Agreement, as amended hereby.  As used in this Amendment, the following terms shall have the following meanings:

  “Existing Lender” means Chase, in its capacity as a Lender under the Credit Agreement.

  “New Lenders” means Texas Capital Bank.

  FIRST AMENDMENT TO CREDIT AGREEMENT Page 1

  

   

  ARTICLE 2
Amendments

  Section 2.1	Credit Agreement.  The Credit Agreement is, effective as of the Amendment Effective Date, hereby amended in its entirety to read as set forth in the attached Annex I.  The Schedules and Exhibits to the Credit Agreement remain unmodified except to the extent amended, modified or added below.

  Section 2.2	Commitment Schedule.  The Commitment Schedule to the Credit Agreement is, effective as of the Amendment Effective Date, hereby amended in its entirety to read as set forth in the Commitment Schedule attached hereto.

  Section 2.3	Schedule 3.05.  Schedule 3.05 to the Credit Agreement is, effective as of the Amendment Effective Date, hereby amended in its entirety to read as set forth in the Schedule 3.05 attached hereto.

  Section 2.4	Exhibit D.  Exhibit D to the Credit Agreement is, effective as of the Amendment Effective Date, hereby amended in its entirety to read as set forth in the Exhibit D attached hereto.

  ARTICLE 3
Conditions Precedent

  Section 3.1	Conditions.  The effectiveness of Article 2 of this Amendment is subject to the satisfaction of the following conditions precedent:

  (a)	The Administrative Agent (or its counsel) shall have received (i) from each party hereto a counterpart of this Amendment signed on behalf of such party (which, subject to Section 9.06(b) of the Credit Agreement, may include any Electronic Signatures transmitted by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page) and (ii) duly executed copies of any other Loan Documents and any promissory notes requested by a Lender pursuant to Section 2.10 of the Credit Agreement payable to such requesting Lender and such other certificates, documents, instruments and agreements as the Administrative Agent shall reasonably request at least two Business Days prior to the Amendment Effective Date in connection with the transactions contemplated by this Amendment, the Credit Agreement and the other Loan Documents, all in form and substance satisfactory to the Administrative Agent.

  (b)	(i) The Administrative Agent shall have received, (x) all documentation and other information regarding the Borrower requested in connection with applicable “know your customer” and anti‐money laundering rules and regulations, including the USA PATRIOT Act, to the extent requested in writing of the Borrower at least five Business Days prior to the Amendment Effective Date, and (y) a properly completed and signed IRS Form W‐8 or W‐9, as applicable, for each Loan Party, and (ii) to the extent the Borrower qualifies as a “legal entity customer” under the Beneficial Ownership Regulation, any Lender that has requested, in a written notice to the Borrower at least five Business Days prior to the Amendment Effective Date, a Beneficial Ownership Certification in relation to the Borrower shall have received such Beneficial Ownership Certification (provided that, upon the execution and delivery by such Lender of its signature page to this Amendment, the condition set forth in this clause (b)(ii) shall be deemed to be satisfied).

  (c)	The Administrative Agent shall have received, in form and substance reasonably satisfactory to the Administrative Agent, (i) a certificate of each Loan Party signed by an authorized officer of such Loan Party, which shall (A) certify the resolutions of its Board of Directors, members or other body 

  FIRST AMENDMENT TO CREDIT AGREEMENT Page 2

  

   

  authorizing the execution, delivery and performance of the Loan Documents to which it is a party, and (B) contain appropriate attachments, including a true and correct copy of the organizational documents of such Loan Party, and (C) in the case of the Borrower, certify that, before and after giving effect to this Amendment, (1) the representations and warranties of the Loan Parties set forth in the Loan Documents are true and correct in all material respects (except with respect to any representation and warranty qualified as to materiality, in which case such representation and warranty is true and correct) with the same effect as though made on and as of the Amendment Effective Date (it being understood and agreed that any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects (except with respect to any representation and warranty qualified as to materiality, in which case such representation and warranty is true and correct) only as of such specified date), (2) no Default exists, and (3) the Borrower is in compliance (on a pro forma basis immediately after giving effect to this Amendment) with the covenants contained in Section 6.12 of the Credit Agreement and (ii) a good standing certificate for each Loan Party from its jurisdiction of organization.

  (d)	The Administrative Agent shall have received a written opinion of the Loan Parties’ counsel, addressed to the Administrative Agent, the Issuing Banks and the Lenders, in form and substance reasonably satisfactory to the Administrative Agent.

  (e)	The Administrative Agent shall have received a solvency certificate of the Borrower signed by a Financial Officer dated the Amendment Effective Date, in form and substance reasonably satisfactory to the Administrative Agent.

  (f)	The Administrative Agent shall have received (i) true, correct and complete copies of all Adaptive Spectrum Acquisition Documents, executed by the parties thereto, and (ii) evidence satisfactory to the Administrative Agent that all conditions precedent to the closing of the Adaptive Spectrum Acquisition have been satisfied or waived in accordance with the terms thereof (or will be satisfied or waived upon the funding of the Term A Loans and the payment of the Purchase Price), all in form and substance reasonably satisfactory to the Administrative Agent.

  (g)	The Administrative Agent shall have received evidence satisfactory to it that all Liens on the Purchased Assets (as defined in the Adaptive Spectrum APA), other than Liens permitted by Section 6.02 of the Credit Agreement, have been released or terminated, subject only to the funding of the Term A Loans on the Amendment Effective Date and the filing or recording of applicable terminations and releases. 

  (h)	The Administrative Agent shall have received all fees required to be paid, and all expenses for which invoices have been presented (including the reasonable fees and expenses of legal counsel), on or before the Amendment Effective Date.

  (i)	Both immediately before and immediately after giving effect to this Amendment, the representations and warranties of the Loan Parties set forth in the Loan Documents shall be true and correct in all material respects with the same effect as though made on and as of the Amendment Effective Date (it being understood and agreed that any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date, and that any representation or warranty which is subject to any materiality qualifier shall be required to be true and correct in all respects).

  (j)	Both immediately before and immediately after giving effect to this Amendment, no Default shall have occurred and be continuing.

  (k)	No event shall have occurred and no condition shall exist which has or could be reasonably expected to have a Material Adverse Effect.

  FIRST AMENDMENT TO CREDIT AGREEMENT Page 3

  

   

  (l)	The Administrative Agent and its counsel shall have completed all legal due diligence, the results of which shall be reasonably satisfactory to Administrative Agent in its sole discretion.

  ARTICLE 4
Concerning the New Lenders

  Section 4.1	Addition of New Lenders.  

  (a)	On the Amendment Effective Date, subject to the satisfaction or waiver of the conditions to effectiveness set forth in Section 3.1 of this Amendment, (i) each New Lender shall be deemed automatically to have become a party to the Credit Agreement as a Lender thereunder and shall have all rights and obligations of a Lender under the Credit Agreement and the other Loan Documents as if it were an original Lender signatory thereto, and (ii) the Commitments and Applicable Percentages of the Existing Lender and the New Lenders shall be as set forth on the Commitment Schedule attached to this Amendment.

  (b)	The New Lenders have become Lenders upon their execution of this Amendment, and on the Amendment Effective Date, each New Lender shall assume all rights and obligations of a Lender under the Credit Agreement.  The Administrative Agent, the Existing Lender and the Borrower hereby consent to each New Lender’s acquisition of an interest in the aggregate Commitments and its Applicable Percentage.  The Administrative Agent, the Existing Lender and the Borrower hereby consent to the reallocation set forth herein.  The Administrative Agent, the Existing Lender and the Borrower hereby waive any requirement that an Assignment and Assumption or any other documentation be executed in connection with such reallocation.  In connection herewith, the Existing Lender irrevocably sells and assigns to each New Lender, and each New Lender, severally and not jointly, hereby irrevocably purchases and assumes from the Existing Lender, as of the Amendment Effective Date, so much of the Existing Lender’s Commitment, outstanding Loans and participations in Letters of Credit, and rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto (including without limitation any guaranties and, to the extent permitted to be assigned under applicable law, all claims (including without limitation contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity), suits, causes of action and any other right of the Existing Lender against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby), such that the Existing Lender’s and each New Lender’s Commitments, Applicable Percentage of the outstanding Loans and participations in Letters of Credit, and rights and obligations as a Lender shall be equal to its Applicable Percentage and Commitments set forth on the Commitment Schedule to this Amendment.  The Existing Lender and each New Lender agree that the provisions of the form of Assignment and Assumption attached as Exhibit A to the Credit Agreement shall apply to it as applicable depending on whether it is the assignee or assignor of such “Commitments” as applicable.  Notwithstanding anything to the contrary herein, each party hereto agrees to execute an Assignment and Assumption to give effect to the foregoing if requested by the Administrative Agent or the Borrower.

  Section 4.2	Reallocation.  Upon the Amendment Effective Date, all Revolving Loans and participations in Letters of Credit of the Existing Lender outstanding immediately prior to the Amendment Effective Date shall be, and hereby are, restructured, rearranged and continued as provided in this Amendment and shall continue as Revolving Loans and participations in Letters of Credit of the Existing Lender and each New Lender under the Credit Agreement pursuant to this Amendment.

  Section 4.3	Representations, Warranties and Agreements of New Lenders.  Each New Lender represents and warrants to, and agrees with, the Administrative Agent, for the benefit of the Existing Lender, as follows:

  FIRST AMENDMENT TO CREDIT AGREEMENT Page 4

  

   

  (a)	it has received a copy of the Credit Agreement, together with copies of the most recent financial statements of the Borrower delivered pursuant thereto;

  (b)	it has, independently and without reliance upon any Lender or any Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of the Loan Parties and their respective Subsidiaries, and all applicable bank or other regulatory laws relating to the transactions contemplated by the Credit Agreement, and made its own decision to enter into the Credit Agreement and to extend credit to the Borrower and the other Loan Parties under the Credit Agreement; and

  (c)	it will, independently and without reliance upon any Lender or any Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under the Credit Agreement and the other Loan Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, and other condition and creditworthiness of the Borrower and the other Loan Parties; and

  (d)	such New Lender agrees to be bound by the terms and conditions set forth in the Credit Agreement and the other Loan Documents, each as amended, applicable to the Lenders as if it were an original Lender signatory thereto (and expressly makes the appointment set forth in, and agrees to the obligations imposed under, Article VIII of the Credit Agreement).

  ARTICLE 5
Ratifications, Representations and Warranties

  Section 5.1	Ratifications.  The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions set forth in the Credit Agreement, and except as expressly modified and superseded by this Amendment, the terms and provisions of the Credit Agreement and the other Loan Documents are ratified and confirmed and shall continue in full force and effect.  The Borrower, the other Loan Parties, the Administrative Agent, and the Lenders party hereto agree that the Credit Agreement and the other Loan Documents shall continue to be legal, valid, binding and enforceable in accordance with their respective 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.  For all matters arising prior to the Amendment Effective Date (including, without limitation, the accrual and payment of interest and fees and compliance with financial covenants), the terms of the Credit Agreement (as unmodified by this Amendment) shall control and are hereby ratified and confirmed.

  Section 5.2	Representations and Warranties.  Each of the Loan Parties hereby represents and warrants to the Administrative Agent and the Lenders as follows:  (a) both immediately before and immediately after giving effect to this Amendment, no Default has occurred and is continuing; (b) both immediately before and immediately after giving effect to this Amendment, the representations and warranties of the Loan Parties set forth in the Loan Documents are true and correct in all material respects with the same effect as though made on and as of the Amendment Effective Date (it being understood and agreed that any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date, and that any representation or warranty which is subject to any materiality qualifier shall be required to be true and correct in all respects); (c) the execution, delivery and performance of this Amendment has been duly authorized by all necessary organizational action and, if required, actions by the equity holders of such Loan Party and:  (i) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental 

  FIRST AMENDMENT TO CREDIT AGREEMENT Page 5

  

   

  Authority, except such as have been obtained or made and are in full force and effect and except for filings necessary to perfect Liens created pursuant to the Loan Documents and routine Tax filings; (ii) will not violate any Requirement of Law applicable to any Loan Party or any Subsidiary; (iii) will not violate any of the organizational documents of any Loan Party or any Subsidiary; (iv) will not violate or result in a default under any material indenture, agreement or other instrument binding upon any Loan Party or any Subsidiary or the assets of any Loan Party or any Subsidiary, or give rise to a right thereunder to require any payment to be made by any Loan Party or any Subsidiary; or (v) result in the creation or imposition of any Lien on any asset of any Loan Party or any Subsidiary, except Liens created pursuant to the Loan Documents; and (d) this Amendment constitutes a legal, valid and binding obligation of such Loan Party, enforceable 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.

  ARTICLE 6
Miscellaneous

  Section 6.1	Survival of Representations and Warranties.  All representations and warranties made in this Amendment or any other Loan Document including any Loan Document furnished in connection with this Amendment shall survive the execution and delivery of this Amendment and the other Loan Documents, and no investigation by the Administrative Agent or any Lender or any closing shall affect the representations and warranties or the right of the Administrative Agent or any Lender to rely upon them.

  Section 6.2	Reference to Credit Agreement.  Each of the Loan Documents, including the Credit Agreement and any and all other agreements, documents, or instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the Credit Agreement as amended hereby, are hereby amended so that any reference in such Loan Documents to the Credit Agreement shall mean a reference to the Credit Agreement as amended hereby.

  Section 6.3	Loan Document.  This Amendment is a Loan Document and is subject to the terms of the Credit Agreement.

  Section 6.4	Expenses.  As provided in the Credit Agreement, the Loan Parties, jointly and severally, agree to pay all reasonable out‐of‐pocket expenses incurred by the Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent, in connection with the preparation and administration of this Amendment or any other documentation prepared in connection therewith (whether or not the transactions contemplated hereby or thereby shall be consummated).

  Section 6.5	Severability.  Any provision of this Amendment held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

  Section 6.6	Applicable Law.  This Amendment and all other Loan Documents executed pursuant hereto shall be governed by and construed in accordance with the internal laws of the State of Texas, but giving effect to federal laws applicable to national banks.

  Section 6.7	Successors and Assigns.  This Amendment is binding upon and inures to the benefit of the parties hereto and their respective successors and assigns permitted hereby (including any Affiliate 

  FIRST AMENDMENT TO CREDIT AGREEMENT Page 6

  

   

  of the Issuing Bank that issues any Letter of Credit), except that (a) the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void) and (b) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with Section 9.04 of the Credit Agreement.

  Section 6.8	Counterparts.  This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of (x) this Amendment, (y) any other Loan Document and/or (z) any Ancillary Document that is an Electronic Signature transmitted by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page shall be effective as delivery of a manually executed counterpart of this Amendment, the Credit Agreement, such other Loan Document or such Ancillary Document, as applicable.

  Section 6.9	Effect of Waiver.  No consent or waiver, express or implied, by the Administrative Agent or any Lender to or for any breach of or deviation from any covenant, condition or duty by the Borrower or any other Loan Party shall be deemed a consent or waiver to or of any other breach of the same or any other covenant, condition or duty.

  Section 6.10	Headings.  The headings, captions, and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.

  Section 6.11	ENTIRE AGREEMENT.  This Amendment, the Credit Agreement and the other Loan Documents, embody the final, entire agreement among the parties relating to the subject matter hereof and supersede any and all previous commitments, agreements, representations and understandings, whether oral or written, relating to the subject matter hereof and may not be contradicted or varied by evidence of prior, contemporaneous or subsequent oral agreements or discussions of the parties hereto.

  [Signatures on following pages]

   

   

  FIRST AMENDMENT TO CREDIT AGREEMENT Page 7

  

  Execution Version

  Executed as of the date first written above.

  DZS INC.

By:	/s/ Justin Ferguson

  	Justin Ferguson

  	Chief Legal Officer and Secretary

  DZS CALIFORNIA INC.

By:  /s/ Justin Ferguson

  	Justin Ferguson

  	Chief Legal Officer and Secretary

  DZS INTERNATIONAL INC.

   

  
By:	/s/ Justin Ferguson

  	Justin Ferguson

  	Chief Legal Officer and Secretary

  DZS SERVICES INC.

By:	/s/ Justin Ferguson

  	Justin Ferguson

  	Chief Legal Officer and Secretary

   

   

   

  

  Execution Version

  JPMORGAN CHASE BANK, N.A., individually, and as Administrative Agent and Issuing Bank

By:	/s/ Shiv Kariwala

  	Shiv Kariwala

  	Authorized Signatory

   

   

  

  Execution Version

  TEXAS CAPITAL BANK, 

  as a New Lender

  
 

  By:	/s/ William J. Rolley

  	William J. Rolley 

  	Executive Vice President

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

  

  Execution Version

  		
	 
	 

   

  	
	ANNEX I TO FIRST AMENDMENT
CREDIT AGREEMENT
 
dated as of
February 9, 2022
among
DZS INC.,
as Borrower,
the other Loan Parties party hereto,
the Lenders party hereto,
and
JPMORGAN CHASE BANK, N.A.,
as Administrative Agent
___________________________
JPMORGAN CHASE BANK, N.A.,
as Sole Bookrunner and Sole Lead Arranger
 

   

   

  

   

  TABLE OF CONTENTS

  Page

  		
	ARTICLE I. Definitions
	1

	SECTION 1.01 Defined Terms
	1

	SECTION 1.02 Classification of Loans and Borrowings
	38

	SECTION 1.03 Terms Generally
	38

	SECTION 1.04 Accounting Terms; GAAP
	39

	SECTION 1.05 Interest Rates; Benchmark Notifications
	39

	SECTION 1.06 Pro Forma Adjustments for Acquisitions and Dispositions
	40

	SECTION 1.07 Status of Obligations
	40

	SECTION 1.08 Letters of Credit
	40

	SECTION 1.09 Divisions
	41

	SECTION 1.10 Rounding
	41

	SECTION 1.11 Exchange Rates; Currency Equivalents
	41

	ARTICLE II. The Credits
	41

	SECTION 2.01 Commitments
	41

	SECTION 2.02 Loans and Borrowings
	42

	SECTION 2.03 Requests for Borrowings
	42

	SECTION 2.04 [Section Intentionally Omitted]
	43

	SECTION 2.05 [Section Intentionally Omitted]
	43

	SECTION 2.06 Letters of Credit
	43

	SECTION 2.07 Funding of Borrowings
	48

	SECTION 2.08 Interest Elections
	48

	SECTION 2.09 Termination and Reduction of Commitments; Incremental Commitments
	49

	SECTION 2.10 Repayment and Amortization of Loans; Evidence of Debt
	51

	SECTION 2.11 Prepayment of Loans
	53

	SECTION 2.12 Fees
	54

	SECTION 2.13 Interest
	55

	SECTION 2.14 Alternate Rate of Interest; Illegality
	55

	SECTION 2.15 Increased Costs
	58

	SECTION 2.16 Break Funding Payments
	59

	SECTION 2.17 Withholding of Taxes; Gross-Up
	59

	SECTION 2.18 Payments Generally; Allocation of Proceeds; Sharing of Setoffs
	63

	SECTION 2.19 Mitigation Obligations; Replacement of Lenders
	65

	SECTION 2.20 Defaulting Lenders
	66

	SECTION 2.21 Returned Payments
	68

	SECTION 2.22 Banking Services and Swap Agreements
	68

	ARTICLE III. Representations and Warranties
	69

	SECTION 3.01 Organization; Powers
	69

	SECTION 3.02 Authorization; Enforceability
	69

	SECTION 3.03 Governmental Approvals; No Conflicts
	69

	SECTION 3.04 Financial Condition; No Material Adverse Change
	69

	SECTION 3.05 Properties
	69

	SECTION 3.06 Litigation and Environmental Matters
	70

	SECTION 3.07 Compliance with Laws and Agreements; No Default
	70

	SECTION 3.08 Investment Company Status
	70

   

  ii

  

   

  		
	SECTION 3.09 Taxes
	70

	SECTION 3.10 ERISA
	71

	SECTION 3.11 Disclosure
	71

	SECTION 3.12 Material Agreements
	71

	SECTION 3.13 Solvency
	71

	SECTION 3.14 Insurance
	72

	SECTION 3.15 Capitalization and Subsidiaries
	72

	SECTION 3.16 Security Interest in Collateral
	72

	SECTION 3.17 Employment Matters
	72

	SECTION 3.18 Margin Regulations
	72

	SECTION 3.19 Use of Proceeds
	73

	SECTION 3.20 No Burdensome Restrictions
	73

	SECTION 3.21 Anti-Corruption Laws and Sanctions
	73

	SECTION 3.22 Affected Financial Institutions
	73

	SECTION 3.23 Plan Assets; Prohibited Transactions
	73

	ARTICLE IV. Conditions
	73

	SECTION 4.01 Effective Date
	73

	SECTION 4.02 Each Credit Event
	76

	ARTICLE V. Affirmative Covenants
	77

	SECTION 5.01 Financial Statements; Borrowing Base and Other Information
	77

	SECTION 5.02 Notices of Material Events
	79

	SECTION 5.03 Existence; Conduct of Business
	80

	SECTION 5.04 Payment of Obligations
	80

	SECTION 5.05 Maintenance of Properties
	80

	SECTION 5.06 Books and Records; Inspection Rights
	80

	SECTION 5.07 Compliance with Laws and Material Contractual Obligations
	81

	SECTION 5.08 Use of Proceeds
	81

	SECTION 5.09 Accuracy of Information
	81

	SECTION 5.10 Insurance
	82

	SECTION 5.11 [Section Intentionally Omitted]
	82

	SECTION 5.12 Casualty and Condemnation
	82

	SECTION 5.13 Depository Banks
	82

	SECTION 5.14 Additional Collateral; Further Assurances
	82

	SECTION 5.15 Post-Closing Covenants
	83

	ARTICLE VI. Negative Covenants
	84

	SECTION 6.01 Indebtedness
	84

	SECTION 6.02 Liens
	85

	SECTION 6.03 Fundamental Changes
	87

	SECTION 6.04 Investments, Loans, Advances, Guarantees and Acquisitions
	87

	SECTION 6.05 Asset Sales
	89

	SECTION 6.06 Sale and Leaseback Transactions
	90

	SECTION 6.07 Swap Agreements
	90

	SECTION 6.08 Restricted Payments; Certain Payments of Indebtedness
	90

	SECTION 6.09 Transactions with Affiliates
	91

	SECTION 6.10 Restrictive Agreements
	92

	SECTION 6.11 Amendment of Material Documents
	92

	SECTION 6.12 Financial Covenants
	92

   

  iii

  

   

  		
	ARTICLE VII. Events of Default
	93

	ARTICLE VIII. The Administrative Agent
	96

	SECTION 8.01 Authorization and Action
	96

	SECTION 8.02 Administrative Agent’s Reliance, Limitation of Liability, Etc
	98

	SECTION 8.03 Posting of Communications
	99

	SECTION 8.04 The Administrative Agent Individually
	100

	SECTION 8.05 Successor Administrative Agent
	101

	SECTION 8.06 Acknowledgements of Lenders and Issuing Banks
	102

	SECTION 8.07 Collateral Matters
	104

	SECTION 8.08 Credit Bidding
	104

	SECTION 8.09 Certain ERISA Matters
	105

	SECTION 8.10 Flood Laws
	106

	ARTICLE IX. Miscellaneous
	107

	SECTION 9.01 Notices
	107

	SECTION 9.02 Waivers; Amendments
	109

	SECTION 9.03 Expenses; Limitation of Liability; Indemnity; Etc
	111

	SECTION 9.04 Successors and Assigns
	113

	SECTION 9.05 Survival
	118

	SECTION 9.06 Counterparts; Integration; Effectiveness; Electronic Execution
	119

	SECTION 9.07 Severability
	120

	SECTION 9.08 Right of Setoff
	120

	SECTION 9.09 Governing Law; Jurisdiction; Consent to Service of Process
	120

	SECTION 9.10 WAIVER OF JURY TRIAL
	121

	SECTION 9.11 Headings
	121

	SECTION 9.12 Confidentiality
	121

	SECTION 9.13 Several Obligations; Nonreliance; Violation of Law
	123

	SECTION 9.14 USA PATRIOT Act
	123

	SECTION 9.15 Disclosure
	123

	SECTION 9.16 Appointment for Perfection
	123

	SECTION 9.17 Interest Rate Limitation
	123

	SECTION 9.18 No Fiduciary Duty, Etc
	123

	SECTION 9.19 Marketing Consent
	124

	SECTION 9.20 Acknowledgement and Consent to Bail-In of Affected Financial Institutions
	124

	SECTION 9.21 Acknowledgement Regarding Any Supported QFCs
	125

	ARTICLE X. Loan Guaranty
	125

	SECTION 10.01 Guaranty
	125

	SECTION 10.02 Guaranty of Payment
	126

	SECTION 10.03 No Discharge or Diminishment of Loan Guaranty
	126

	SECTION 10.04 Defenses Waived
	126

	SECTION 10.05 Rights of Subrogation
	127

	SECTION 10.06 Reinstatement; Stay of Acceleration
	127

	SECTION 10.07 Information
	127

	SECTION 10.08 Termination
	127

	SECTION 10.09 [Reserved]
	127

	SECTION 10.10 Maximum Liability
	128

	SECTION 10.11 Contribution
	128

	SECTION 10.12 Liability Cumulative
	128

   

  iv

  

   

  		
	SECTION 10.13 Keepwell
	129

   

  SCHEDULES:

  Commitment Schedule

  Schedule 3.05 	Properties, etc.

  Schedule 3.06 	Disclosed Matters

  Schedule 3.14	Insurance

  Schedule 3.15 	Capitalization and Subsidiaries 

  Schedule 6.01 	Existing Indebtedness

  Schedule 6.02 	Existing Liens

  Schedule 6.04 	Existing Investments

  Schedule 6.09	Existing Transactions with Affiliates

  Schedule 6.10 	Existing Restrictions

  EXHIBITS:

  Exhibit A 	Assignment and Assumption

  Exhibit B-1 	Borrowing Request 

  Exhibit B-2 	Interest Election Request 

  Exhibit C-1 	U.S. Tax Compliance Certificate (For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

  Exhibit C-2 	U.S. Tax Compliance Certificate (For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)

  Exhibit C-3 	U.S. Tax Compliance Certificate (For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

  Exhibit C-4 	U.S. Tax Compliance Certificate (For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)

  Exhibit D 	Compliance Certificate 

  Exhibit E 	Joinder Agreement

  Exhibit F	Borrowing Base Certificate 

   

   

  v

  

   

  CREDIT AGREEMENT dated as of February 9, 2022 (as it may be amended or modified from time to time, this “Agreement”), among DZS INC., as Borrower, the other Loan Parties party hereto, the Lenders party hereto, and JPMORGAN CHASE BANK, N.A., as Administrative Agent.

  The parties hereto agree as follows:

  ARTICLE I.
Definitions

  SECTION 1.01  Defined Terms.  As used in this Agreement, the following terms have the meanings specified below:

  “Account” has the meaning assigned to such term in the Security Agreement.

  “Account Debtor” means any Person obligated on an Account.

  “Acquisition” means any transaction, or any series of related transactions, consummated on or after the Effective Date, by which any Loan Party (a) acquires any going business or all or substantially all of the assets of any Person, whether through purchase of assets, merger or otherwise or (b) directly or indirectly acquires (in one transaction or as the most recent transaction in a series of transactions) at least a majority (in number of votes) of the Equity Interests of a Person which has ordinary voting power for the election of directors or other similar management personnel of a Person (other than Equity Interests having such power only by reason of the happening of a contingency) or a majority of the outstanding Equity Interests of a Person.

  “Adaptive Spectrum Acquisition” means the Acquisition by the Borrower of the assets of Adaptive Spectrum and Signal Alignment, Incorporated pursuant to the Adaptive Spectrum Acquisition Documents.

  “Adaptive Spectrum Acquisition Documents” means, collectively, that certain Asset Purchase Agreement, dated as of April 29, 2022, by and between the Borrower and Adaptive Spectrum and Signal Alignment, Incorporated, and all other documents, instruments and agreements executed and/or to be delivered in connection with the Adaptive Spectrum Acquisition.

  “Adjusted Daily Simple SOFR” means an interest rate per annum equal to (a) the Daily Simple SOFR, plus (b) 0.10%; provided that if the Adjusted Daily Simple SOFR as so determined would be less than the Floor, such rate shall be deemed to be equal to the Floor for the purposes of this Agreement.

  “Adjusted Term SOFR Rate” means for any Interest Period, an interest rate per annum equal to (a) the Term SOFR Rate for such Interest Period, plus (b) 0.10%; provided that if the Adjusted Term SOFR Rate as so determined would be less than the Floor, such rate shall be deemed to be equal to the Floor for the purposes of this Agreement. 

  “Administrative Agent” means JPMorgan Chase Bank, N.A. (or any of its designated branch offices or affiliates), in its capacity as administrative agent for the Lenders hereunder.

  “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent.

  “Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK Financial Institution. 

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  “Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the specified Person.

  “Agent-Related Person” has the meaning assigned to it in Section 9.03(d).

  “Aggregate Credit Exposure” means, at any time, the aggregate Credit Exposure of all the Lenders at such time.

  “Aggregate Revolving Exposure” means, at any time, the aggregate Revolving Exposure of all the Lenders at such time.

  “Agreed Currencies” means Dollars and each Alternative Currency.

  “Agreement” has the meaning specified in introductory paragraph hereof. 

  “Alternative Currency” means Sterling, Euros, United Arab Emirates dirham, Canadian dollars, Korean Republic won, and any additional currencies determined after the Effective Date by mutual agreement of the Borrower, the Lenders, the Issuing Bank and the Administrative Agent; provided that each such currency is a lawful currency that is readily available, freely transferable and not restricted and able to be converted into Dollars.

  “Ancillary Document” has the meaning assigned to it in Section 9.06(b).

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

  “Applicable Parties” has the meaning assigned to it in Section 8.03(c).

  “Applicable Percentage”  means, at any time with respect to any Lender, a percentage equal to a fraction the numerator of which is such Lender’s Revolving Commitment at such time and the denominator of which is the aggregate Revolving Commitments at such time (provided that, if the Revolving Commitments have terminated or expired, the Applicable Percentages shall be determined based upon such Lender’s share of the Aggregate Revolving Exposure at such time); provided that, in accordance with Section 2.20, so long as any Lender shall be a Defaulting Lender, such Defaulting Lender’s Commitment shall be disregarded in the calculations above.

  “Applicable Rate” means, for any day, with respect to any Loan, or with respect to the commitment fees payable hereunder, as the case may be, the applicable rate per annum set forth below under the caption “CBFR Spread”, “Term Benchmark/RFR Spread” or “Commitment Fee Rate”, as the case may be, based upon the Leverage Ratio as of the most recent determination date; provided that until the delivery to the Administrative Agent, pursuant to Section 5.01, of the Borrower’s consolidated financial information for the Borrower’s first fiscal quarter ending after the First Amendment Effective Date, the “Applicable Rate” shall be the applicable rates per annum set forth below in Category 3:

  2

  

   

  					
	Category
	Leverage Ratio
	Term Benchmark/RFR Spread
	CBFR Spread
	Commitment Fee Rate

	1
	Greater than or equal to 2.00 to 1.00
	3.50%
	2.50%
	0.35%

	2
	Greater than or equal to 1.50 to 1.00, but less than 2.00 to 1.00
	3.25%
	2.25%
	0.30%

	3
	Less than 1.50 to 1.00
	3.00%
	2.00%
	0.25%

  For purposes of the foregoing, (a) the Applicable Rate shall be determined as of the end of each fiscal quarter of the Borrower, based upon the Borrower’s annual or quarterly consolidated financial statements delivered pursuant to Section 5.01 and (b) each change in the Applicable Rate resulting from a change in the Leverage Ratio shall be effective during the period commencing on and including the date of delivery to the Administrative Agent of such consolidated financial statements indicating such change and ending on the date immediately preceding the effective date of the next such change; provided, at the option of the Administrative Agent or at the request of the Required Lenders, if the Borrower fails to deliver the annual or quarterly consolidated financial statements required to be delivered by it pursuant to Section 5.01, the Leverage Ratio shall be deemed to be in Category 1 during the period from the expiration of the time for delivery thereof until such consolidated financial statements are delivered.

  If at any time the Administrative Agent determines that the financial statements upon which the Applicable Rate was determined were incorrect (whether based on a restatement, fraud or otherwise), or any ratio or compliance information in a Compliance Certificate or other certification was incorrectly calculated, relied on incorrect information or was otherwise not accurate, true or correct, the Borrower shall be required to retroactively pay any additional amount that the Borrower would have been required to pay if such financial statements, Compliance Certificate or other information had been accurate and/or computed correctly at the time they were delivered.  

  “Approved Electronic Platform” has the meaning assigned to it in Section 8.03(a).

  “Approved Fund” has the meaning assigned to the term in Section 9.04(b).

  “Assignment and Assumption” means an assignment and assumption agreement entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 9.04), and accepted by the Administrative Agent, in the form of Exhibit A or any other form (including electronic records generated by the use of an electronic platform) approved by the Administrative Agent.

  “Availability” means, at any time, an amount equal to (a) the lesser of (i) the aggregate Revolving Commitments and (ii) the Borrowing Base minus (b) the Aggregate Revolving Exposure (calculated, with respect to any Defaulting Lender, as if such Defaulting Lender had funded its Applicable Percentage of all outstanding Borrowings).

  “Availability Period” means the period from and including the Effective Date to but excluding the earlier of the Revolving Credit Maturity Date and the date of termination of the Revolving Commitments.

  “Available Tenor” means, as of any date of determination and with respect to the then-current Benchmark, as applicable, any tenor for such Benchmark (or component thereof) or payment period for interest calculated with reference to such Benchmark (or component thereof), as applicable, that is or may be used for determining the length of an Interest Period for any term rate or otherwise, for determining any frequency of making payments of interest calculated pursuant to this Agreement as of such date and not 

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  including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of “Interest Period” pursuant to Section 2.14(e). 

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

  “Bail-In Legislation” means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, 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).

  “Banking Services” means each and any of the following bank services provided to any Loan Party or any Subsidiary by any Lender or any of its Affiliates: (a) credit cards for commercial customers (including, without limitation, “commercial credit cards” and purchasing cards), (b) stored value cards, (c) merchant processing services, and (d) treasury management services (including, without limitation, controlled disbursement, automated clearinghouse transactions, return items, any direct debit scheme or arrangement, overdrafts and interstate depository network services and cash pooling services).

  “Banking Services Obligations” means any and all obligations of the Loan Parties or its Subsidiaries, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor) in connection with Banking Services.

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

  “Benchmark” means, initially, with respect to any (i) RFR Loan, the Daily Simple SOFR or (ii) Term Benchmark Loan, the Term SOFR Rate; provided that if a Benchmark Transition Event and the related Benchmark Replacement Date have occurred with respect to the Daily Simple SOFR or Term SOFR Rate, as applicable, or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 2.14(b). 

  “Benchmark Replacement” means, for any Available Tenor: the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower as the replacement for the then-current Benchmark for the applicable Corresponding Tenor 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 

  4

  

   

  determining a benchmark rate as a replacement for the then-current Benchmark for Dollar-denominated syndicated credit facilities at such time in the United States and (b) the related Benchmark Replacement Adjustment.  If the Benchmark Replacement as determined pursuant to the above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.

  “Benchmark Replacement Adjustment” means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement for any applicable Interest Period and Available Tenor for any setting of such Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date and/or (ii) 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 at such time. 

  “Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement and/or any Term Benchmark Loan, any technical, administrative or operational changes (including changes to the definition of “Business Day,” the definition of “U.S. Government Securities Business Day,” the definition of “Interest Period,” timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).

  “Benchmark Replacement Date” means, with respect to any Benchmark, the earliest to occur of the following events with respect to such then-current Benchmark: 

  (1)	in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of 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

  (2)	in the case of clause (3) 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 no longer representative; provided, that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (3) and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

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  For the avoidance of doubt, (i) if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination and (ii) the “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (1) or (2) 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, with respect to any Benchmark, the occurrence of one or more of the following events with respect to such then-current Benchmark: 

  (1)	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); 

  (2)	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 Federal Reserve Board, the NYFRB, the CME Term SOFR Administrator, 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), in each case, 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 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 

  (3)	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 no longer, or as of a specified future date will no longer 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 Unavailability Period” means, with respect to any Benchmark, the period (if any) (x) beginning at the time that a Benchmark Replacement Date pursuant to clauses (1) or (2) of that definition has occurred if, at such time, no Benchmark Replacement has replaced such then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 2.14 and (y) ending at the time that a Benchmark Replacement has replaced such then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 2.14. 

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

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

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

  “BHC Act Affiliate” 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” means DZS Inc., a Delaware corporation.

  “Borrowing” means (a) a Revolving Borrowing and (b) Term Loans of the same Type made, converted or continued on the same date and, in the case of Term Benchmark Loans, as to which a single Interest Period is in effect.

  “Borrowing Base” means, at any time, the sum of (a) $10,000,000, plus (b) 80% of the Eligible Accounts at such time, plus (c) 50% of the Eligible Inventory, valued at the lower of cost or market value, determined on a first-in-first-out basis, minus (d) Reserves.  The Administrative Agent may, in its Permitted Discretion, upon not less than five Business Days’ prior written notice to the Borrower, adjust Reserves or, if an Event of Default has occurred and is continuing, reduce one or more of the other elements used in computing the Borrowing Base.

  “Borrowing Base Certificate” means a certificate, signed and certified as accurate and complete by a Financial Officer, in substantially the form of Exhibit F or another form which is acceptable to the Administrative Agent in its sole discretion.

  “Borrowing Request” means a request by the Borrower for a Borrowing in accordance with Section 2.03, which shall be substantially in the form of Exhibit B‐1 hereto or any other form approved by the Administrative Agent.

  “Burdensome Restrictions” means any consensual encumbrance or restriction of the type described in clause (a) or (b) of Section 6.10.

  “Business Day” means any day (other than a Saturday or a Sunday) on which banks are open for business in New York City or Chicago; provided that, in relation to RFR Loans and any interest rate settings, fundings, disbursements, settlements or payments of any such RFR Loan, or any other dealings of such RFR Loan, any such day that is only an U.S. Government Securities Business Day.

  “Capital Expenditures” means, without duplication, any expenditure or commitment to expend money for any purchase or other acquisition of any asset which would be classified as a fixed or capital asset on a consolidated balance sheet of the Borrower and its Subsidiaries prepared in accordance with GAAP.

  “Capital Lease Obligations” of any Person means 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 capital leases or financing leases on a balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

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  “CB Floating Rate” means the greater of the Prime Rate or 2.5%.  Any change in the CB Floating Rate due to a change in the Prime Rate shall be effective from and including the effective date of such change in the Prime Rate.

  “CBFR”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, bear interest at a rate determined by reference to the CB Floating Rate.

  “Change in Control” means (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules of the SEC thereunder as in effect on the date hereof), other than DASAN Networks, Inc., of Equity Interests representing more than 50% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Borrower; or (b) the occupation at any time of a majority of the seats (other than vacant seats) on the board of directors of the Borrower by Persons who were not (i) directors of the Borrower on the date of this Agreement or nominated, appointed or approved for consideration by shareholders for election by the board of directors of the Borrower or (ii) appointed by directors so nominated, appointed or approved.

  “Change in Law” means the occurrence after the date of this Agreement of any of the following: (a) the adoption of or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) compliance by any Lender or the Issuing Bank (or, for purposes of Section 2.15(b), by any lending office of such Lender or by such Lender’s or the Issuing Bank’s holding company, if any) with any request, guideline, requirement or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement; provided that, notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements or directives thereunder or issued in connection therewith or in the implementation thereof, and (y) all requests, rules, guidelines, requirements or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the U.S. or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted, issued or implemented.

  “Charges” has the meaning assigned to such term in Section 9.17.

  “Chase” means JPMorgan Chase Bank, N.A., a national banking association, in its individual capacity, and its successors.

  “Class”, when used in reference to (a) any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans or a Term A Loan, (b) any Commitment, refers to whether such Commitment is a Revolving Commitment or a Term A Commitment, and (c) any Lender, refers to whether such Lender has a Loan or Commitment of a particular Class.

  “CME Term SOFR Administrator” means CME Group Benchmark Administration Limited as administrator of the forward-looking term SOFR (or a successor administrator). 

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

  “Collateral” means any and all property of any Loan Party, now existing or hereafter acquired, that may at any time be, become or be intended by the relevant Loan Party and Administrative Agent to be, subject to a security interest or Lien in favor of the Administrative Agent, on behalf of itself and the Lenders 

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  and other Secured Parties, to secure the Secured Obligations; provided, however, notwithstanding the foregoing, the Collateral shall not include the Excluded Assets.

  “Collateral Access Agreement” has the meaning assigned to such term in the Security Agreement.

  “Collateral Documents” means, collectively, the Security Agreement and any other agreements, instruments and documents executed in connection with this Agreement that are intended to create, perfect or evidence Liens to secure the Secured Obligations.

  “Commitment” means, with respect to each Lender, the sum of such Lender’s Revolving Commitment and Term A Commitment.  The initial amount of each Lender’s Commitment is set forth on the Commitment Schedule, or in the Assignment and Assumption or other documentation or record (as such term is defined in Section 9-102(a)(70) of the New York Uniform Commercial Code) as provided in Section 9.04(b)(ii)(C), pursuant to which such Lender shall have assumed its Commitment, as applicable.

  “Commitment Schedule” means the Schedule attached hereto identified as such.

  “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.

  “Communications” has the meaning assigned to such term in Section 8.03(c).

  “Competitor” means any Person that is a bona fide competitor of the Borrower or any Subsidiary in the same industry or a substantially similar industry which offers a substantially similar product or service as the Borrower or any Subsidiary.

  “Compliance Certificate” means a certificate of a Financial Officer in substantially the form of Exhibit D.

  “Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

  “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.

  “Corresponding Tenor” with respect to any Available Tenor means, as applicable, either a tenor (including overnight) or an interest payment period having approximately the same length (disregarding business day adjustment) as such Available Tenor.

  “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 assigned to it in Section 9.21.

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  “Credit Exposure” means, as to any Lender at any time, the sum of (a) such Lender’s Revolving Exposure at such time plus (b) an amount equal to the aggregate principal amount of its Term Loans outstanding at such time.

   “Credit Party” means the Administrative Agent, the Issuing Bank or any other Lender.

  “Daily Simple SOFR” means, for any day (a “SOFR Rate Day”), a rate per annum equal to SOFR for the day (such day “SOFR Determination Date”) that is five U.S. Government Securities Business Days prior to (i) if such SOFR Rate Day is a U.S. Government Securities Business Day, such SOFR Rate Day or (ii) if such SOFR Rate Day is not a U.S. Government Securities Business Day, the U.S. Government Securities Business Day immediately preceding such SOFR Rate Day, in each case, as such SOFR is published by the SOFR Administrator on the SOFR Administrator’s Website.  Any change in Daily Simple SOFR due to a change in SOFR shall be effective from and including the effective date of such change in SOFR without notice to the Borrower.

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

  “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. 

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

  “Disclosed Matters” means the actions, suits, proceedings and environmental matters disclosed in Schedule 3.06.

  “Disposition” or “Dispose” means the sale, transfer, license, lease or other disposition (in one transaction or in a series of transactions and whether effected pursuant to a Division or otherwise) of any property by any Person (including any sale and leaseback transaction and any issuance of Equity Interests by a Subsidiary of such Person), including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith.

  “Disqualified Institution” means, as of any date, (a) those institutions designated as “Disqualified Institutions” in writing from the Borrower to the Administrative Agent on or prior to the Effective Date, 

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  (b) any other Person that is a Competitor and has been designated by the Borrower (i) prior to the Effective Date or (ii) to the extent agreed to by the Administrative Agent as a “Disqualified Institution” (such agreement not to be unreasonably withheld, conditioned, delayed or qualified), after the Effective Date, and (c) any Affiliate (other than any Person described in the proviso below) of any Person described in clauses (a) or (b) that is (x) designated by the Borrower as specified in clauses (a) or (b) or (y) clearly identifiable as an Affiliate of such Person solely on the basis of the similarity of its name; provided that any bona fide debt fund or investment vehicle that is solely engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of business which is managed, sponsored or advised by any Person Controlling, Controlled by or under common Control with such Person or its Controlling owner shall be deemed not to be a Disqualified Institution solely by reason of this clause (c).

  “Dividing Person” has the meaning assigned to it in the definition of “Division.”

  “Division” means the division of the assets, liabilities and/or obligations of a Person (the “Dividing Person”) among two or more Persons (whether pursuant to a “plan of division” or similar arrangement), which may or may not include the Dividing Person and pursuant to which the Dividing Person may or may not survive.

  “Division Successor” means any Person that, upon the consummation of a Division of a Dividing Person, holds all or any portion of the assets, liabilities and/or obligations previously held by such Dividing Person immediately prior to the consummation of such Division.  A Dividing Person which retains any of its assets, liabilities and/or obligations after a Division shall be deemed a Division Successor upon the occurrence of such Division.

  “Document” has the meaning assigned to such term in the Security Agreement.

  “Dollar Equivalent” means, for any amount, at the time of determination thereof, (a) if such amount is expressed in Dollars, such amount, (b) if such amount is expressed in an Alternative Currency, the equivalent of such amount in Dollars determined by using the rate of exchange for the purchase of Dollars with the Alternative Currency last provided (either by publication or otherwise provided to the Administrative Agent) by Reuters on the Business Day (New York City time) immediately preceding the date of determination or if such service ceases to be available or ceases to provide a rate of exchange for the purchase of Dollars with the Alternative Currency, as provided by such other publicly available information service which provides that rate of exchange at such time in place of Reuters chosen by the Administrative Agent in its sole discretion (or if such service ceases to be available or ceases to provide such rate of exchange, the equivalent of such amount in Dollars as determined by the Administrative Agent using any method of determination it deems appropriate in its sole discretion) and (c) if such amount is denominated in any other currency, the equivalent of such amount in Dollars as determined by the Administrative Agent using any method of determination it deems appropriate in its sole discretion.

  “Dollars” or “$” refers to lawful money of the U.S.

  “Domestic Subsidiary” means any Subsidiary that is organized under the laws of any political subdivision of the U.S.

  “EBITDA” means, for any period, Net Income for such period plus (a) without duplication and to the extent deducted in determining Net Income for such period, the sum of (i) Interest Expense for such period, (ii) income tax expense for such period net of tax refunds, (iii) all amounts attributable to depreciation and amortization expense for such period, (iv) any extraordinary non-cash charges for such period, (v) any other non-cash charges for such period (but excluding any non-cash charge in respect of an 

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  item that was included in Net Income in a prior period and any non-cash charge that relates to the write-down or write-off of inventory), (vi) all non-cash stock based compensation expense for such period, (vii) the amount of business restructuring charges for such period (which, for the avoidance of doubt, shall include the effect of plant closure, retention, severance and excess pension charges), (viii) the amount of all non-recurring expenses, fees, costs and charges incurred for such period in connection with any proposed or actual Investment (whether or not consummated) not prohibited by this Agreement or any proposed or actual issuance or incurrence (in each case whether or not consummated) of any Indebtedness not prohibited by this Agreement, (ix) the amount of cost savings, operating expense reductions and cost synergies in connection with Permitted Acquisitions projected by the Loan Parties in good faith to result from actions taken or committed to be taken no later than 18 months after the end of such period (calculated on a pro forma basis as though such cost savings, operating expense reductions and cost synergies had been realized on the first day of such measurement period for which EBITDA is being determined and as if such cost savings, operating expense reductions and cost synergies were realized during the entirety of such measurement period), net of the amount of actual benefits realized during such measurement period from such actions, (x) one-time expenses for bad debt in the fiscal year ending December 31, 2021 not to exceed $14,206,000 in any period, (xi) the amount of all non-recurring expenses, fees, costs and charges incurred for such period in connection with any proposed issuance of Equity Interests (to the extent such issuance of Equity Interests is not consummated), not to exceed $1,000,000 in the aggregate in any period, and (xii) the amount of all non-recurring expenses, fees, costs and charges incurred for such period in connection with any actual issuance of Equity Interests not prohibited by this Agreement, minus (b) without duplication and to the extent included in Net Income, (i) any cash payments made during such period in respect of non-cash charges described in clause (a)(v) taken in a prior period and (ii) any extraordinary gains and any non-cash items of income for such period, all calculated for the Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP; provided, however, for purposes of calculating EBITDA, (x) the amounts added back to EBITDA pursuant to the foregoing clauses (a)(viii) and (a)(ix) in any measurement period shall not exceed $5,000,000 in the aggregate, and (y) the amount added back to EBITDA pursuant to the foregoing clause (a)(vii) in any measurement period shall not exceed $15,000,000 in the aggregate.

  “ECP” means an “eligible contract participant” as defined in Section 1(a)(18) of the Commodity Exchange Act or any regulations promulgated thereunder and the applicable rules issued by the Commodity Futures Trading Commission and/or the SEC.

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

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

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

  “Effective Date” means the date on which the conditions specified in Section 4.01 are satisfied (or waived in accordance with Section 9.02).

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  “Electronic Signature” means an electronic sound, symbol, or process attached to, or associated with, a contract or other record and adopted by a Person with the intent to sign, authenticate or accept such contract or record.

  “Electronic System” means any electronic system, including e-mail, e-fax, web portal access for the Borrower and any other Internet or extranet-based site, whether such electronic system is owned, operated or hosted by the Administrative Agent or the Issuing Bank and any of its respective Related Parties or any other Person, providing for access to data protected by passcodes or other security system.

  “Eligible Accounts” means, at any time, the Accounts of the Borrower and its Domestic Subsidiaries that are Loan Parties, other than any Account:

  (a)	which is not subject to a first priority perfected security interest in favor of the Administrative Agent;

  (b)	which is subject to any Lien other than (i) a Lien in favor of the Administrative Agent and (ii) a Permitted Encumbrance which does not have priority over the Lien in favor of the Administrative Agent;

  (c)	which is unpaid more than 120 days after the date of the original invoice therefor, or which has been written off the books of the Borrower or such Loan Party, or otherwise designated as uncollectible;

  (d)	which is owing by an Account Debtor for which more than 25% of the Accounts owing from such Account Debtor and its Affiliates are ineligible pursuant to clause (c) above;

  (e)	which is owing by an Account Debtor to the extent the aggregate amount of Accounts owing from such Account Debtor and its Affiliates to the Borrower and such Loan Parties exceeds 40% of the aggregate Eligible Accounts;

  (f)	with respect to which any covenant, representation or warranty contained in this Agreement or in the Security Agreement has been breached in any material respect or is not true in any material respect (in each case, without duplication of any materiality qualifier contained therein);

  (g)	which (i) does not arise from the sale of goods or performance of services in the ordinary course of business, (ii) is not evidenced by an invoice or other documentation satisfactory to the Administrative Agent which has been sent to the Account Debtor, (iii) represents a progress billing, (iv) is contingent upon the Borrower’s or such Loan Party’s completion of any further performance (other than product returns in the ordinary course of business), (v) represents a sale on a bill-and-hold, guaranteed sale, sale-and-return, sale on approval, consignment, cash-on-delivery or any other repurchase or return basis (other than Accounts that are subject to returns in the ordinary course of business) or (vi) relates to payments of interest;

  (h)	for which the goods giving rise to such Account have not been shipped to the Account Debtor or for which the services giving rise to such Account have not been performed by the Borrower or such Loan Party or if such Account was invoiced more than once (but only with respect to the Account or portion of the Account that is duplicative);

  (i)	with respect to which any check or other instrument of payment has been returned uncollected for any reason;

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  (j)	which is owed by an Account Debtor which has (i) applied for, suffered, or consented to the appointment of any receiver, custodian, trustee, or liquidator of its assets, (ii) had possession of all or a material part of its property taken by any receiver, custodian, trustee or liquidator, (iii) filed, or had filed against it, any request or petition for liquidation, reorganization, arrangement, adjustment of debts, adjudication as bankrupt, winding-up, or voluntary or involuntary case under any state or federal bankruptcy laws (other than post-petition accounts payable of an Account Debtor that is a debtor in possession under the Bankruptcy Code and reasonably acceptable to the Administrative Agent), (iv) admitted in writing its inability, or is generally unable to, pay its debts as they become due, (v) become insolvent, or (vi) ceased operation of all or substantially all of its business;

  (k)	which is owed by any Account Debtor which has sold all or substantially all of its assets;

  (l)	which is owed by an Account Debtor which (i) does not maintain its chief executive office in the U.S. or Canada or (ii) is not organized under applicable law of the U.S., any state of the U.S. or the District of Columbia, Canada, or any province of Canada unless, in any such case, such Account is backed by a letter of credit acceptable to the Administrative Agent which is in the possession of, and is directly drawable by, the Administrative Agent;

  (m)	which is owed in any currencies other than Dollars or Canadian dollars;

  (n)	which is owed by (i) any government (or any department, agency, public corporation, or instrumentality thereof) of any country other than the U.S., unless such Account is backed by a letter of credit acceptable to the Administrative Agent which is in the possession of, and is directly drawable by, the Administrative Agent, or (ii) any government of the U.S., or any department, agency, public corporation, or instrumentality thereof, unless the Federal Assignment of Claims Act of 1940, as amended (31 U.S.C. § 3727 et seq. and 41 U.S.C. § 15 et seq.), and any other steps necessary to perfect the Lien of the Administrative Agent in such Account, have been complied with to the Administrative Agent’s satisfaction;

  (o)	which is owed by any Affiliate of any Loan Party or any employee, officer, director, agent or stockholder of any Loan Party or any of its Affiliates;

  (p)	which is owed by an Account Debtor or any Affiliate of such Account Debtor to which any Loan Party is indebted, but only to the extent of such indebtedness, or is subject to any security, deposit, progress payment, retainage or other similar advance made by or for the benefit of an Account Debtor, in each case to the extent thereof;

  (q)	which is subject to any counterclaim, deduction, defense, setoff (unless such Account Debtor has waived such counterclaim, deduction, defense or right of setoff in writing in a manner satisfactory to the Administrative Agent in its Permitted Discretion) or dispute but only to the extent of any such counterclaim, deduction, defense, setoff or dispute;

  (r)	which is evidenced by any promissory note, chattel paper or instrument;

  (s)	which is owed by an Account Debtor (i) located in any jurisdiction which requires filing of a “Notice of Business Activities Report” or other similar report in order to permit the Borrower or such Loan Party to seek judicial enforcement in such jurisdiction of payment of such Account, unless the Borrower has filed such report or qualified to do business in such jurisdiction or (ii) which is a Sanctioned Person;

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  (t)	with respect to which the Borrower or such Loan Party has made any agreement with the Account Debtor for any reduction thereof, other than discounts and adjustments given in the ordinary course of business but only to the extent of any such reduction, or any Account which was partially paid and the Borrower or such Loan Party created a new receivable for the unpaid portion of such Account;

  (u)	which does not comply in all material respects with the requirements of all applicable laws and regulations, whether federal, state or local, including without limitation the Federal Consumer Credit Protection Act, the Federal Truth in Lending Act and Regulation Z of the Federal Reserve Board;

  (v)	which is for goods that have been sold under a purchase order or pursuant to the terms of a contract or other agreement or understanding (written or oral) that indicates or purports that any Person other than the Borrower or such Loan Party has or has had an ownership interest in such goods, or which indicates any party other than the Borrower or such Loan Party as payee or remittance party;

  (w)	which was created on cash on delivery terms; or

  (x)	which the Administrative Agent determines may not be paid by reason of the Account Debtor’s inability to pay or which the Administrative Agent otherwise determines is unacceptable in its Permitted Discretion.

  In the event that an Account which was previously an Eligible Account ceases to be an Eligible Account hereunder, the Borrower shall not include such Account as an Eligible Account on and at the time of submission to the Administrative Agent of the next Borrowing Base Certificate.  In determining the amount of an Eligible Account, the face amount of an Account may, in the Administrative Agent’s Permitted Discretion, 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 the Borrower or the applicable Loan Party may be obligated to rebate to an Account Debtor 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 Borrower or the applicable Loan Party to reduce the amount of such Account.

  “Eligible Inventory” means, at any time, the Inventory of the Borrower and its Domestic Subsidiaries that are Loan Parties, other than any Inventory:

  (a)	which is not subject to a first priority perfected Lien in favor of the Administrative Agent;

  (b)	which is subject to any Lien other than (i) a Lien in favor of the Administrative Agent and (ii) a Permitted Encumbrance which does not have priority over the Lien in favor of the Administrative Agent;

  (c)	which is, in the Administrative Agent’s Permitted Discretion, slow moving, obsolete, unmerchantable, defective, used, unfit for sale, not salable at prices approximating at least the cost of such Inventory in the ordinary course of business or unacceptable due to age, type, category and/or quantity;

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  (d)	with respect to which any covenant, representation or warranty contained in this Agreement or in the Security Agreement has been breached in any material respect or is not true in any material respect, in each case, without duplication of any materiality qualifier contained therein, and which does not conform to all material standards imposed by any Governmental Authority having authority over such Inventory or the use or sale thereof;

  (e)	in which any Person other than the Borrower or such Loan Party shall (i) have any direct or indirect ownership, interest or title or (ii) be indicated on any purchase order or invoice with respect to such Inventory as having or purporting to have an interest therein;

  (f)	which is not finished goods or which constitutes work-in-process, spare or replacement parts, subassemblies, packaging and shipping material, manufacturing supplies, samples, prototypes, displays or display items, bill-and-hold or ship-in-place goods, goods that are returned or marked for return, repossessed goods, defective or damaged goods, goods held on consignment, or goods which are not of a type held for sale in the ordinary course of business;

  (g)	which is not located in the U.S. or is in transit with a common carrier from vendors and suppliers;

  (h)	which is located in any location leased by the Borrower or such Loan Party unless (i) the lessor has delivered to the Administrative Agent a Collateral Access Agreement or (ii) a Reserve for rent, charges and other amounts due or to become due with respect to such facility has been established by the Administrative Agent in its Permitted Discretion;

  (i)	which is located in any third-party warehouse or is in the possession of a bailee (other than a third-party processor) and is not evidenced by a Document, unless (i) such warehouseman or bailee has delivered to the Administrative Agent a Collateral Access Agreement and such other documentation as the Administrative Agent may require or (ii) an appropriate Reserve has been established by the Administrative Agent in its Permitted Discretion;

  (j)	which is being processed offsite at a third-party location or outside processor, or is in transit to or from such third-party location or outside processor;

  (k)	which is a discontinued product or component thereof;

  (l)	which is the subject of a consignment by the Borrower or such Loan Party as consignor;

  (m)	which is perishable;

  (n)	which contains or bears any intellectual property rights licensed to the Borrower or such Loan Party unless the Administrative Agent is satisfied in its Permitted Discretion that it may sell or otherwise dispose of such Inventory without (i) infringing the rights of such licensor, (ii) violating any contract with such licensor, or (iii) incurring any liability with respect to payment of royalties, other than royalties incurred pursuant to sale of such Inventory under the current licensing agreement;

  (o)	which is not reflected in a current perpetual inventory report of the Borrower or such Loan Party;

  (p)	for which reclamation rights have been asserted by the seller;

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  (q)	which has been acquired from a Sanctioned Person; or

  (r)	which the Administrative Agent otherwise determines is unacceptable in its Permitted Discretion.

  In the event that Inventory which was previously Eligible Inventory ceases to be Eligible Inventory hereunder, the Borrower shall not include such Inventory as Eligible Inventory on and at the time of submission to the Administrative Agent of the next Borrowing Base Certificate.

  “Environmental Laws” means all laws, rules, regulations, codes, ordinances, orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to (i) the environment, (ii) preservation or reclamation of natural resources, (iii) the management, Release or threatened Release of any Hazardous Material or (iv) health and safety matters.

  “Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower or any Subsidiary directly or indirectly resulting from or based upon (a) any violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) any 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 assigned to such term in the Security Agreement.

  “Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any of the foregoing, but excluding any debt securities convertible into any of the foregoing.

  “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder.

  “ERISA Affiliate” means any trade or business (whether or not incorporated) that, together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or Section 4001(14) of ERISA or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 414 of the Code.

  “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or the regulations issued thereunder, with respect to a Plan (other than an event for which the 30 day notice period is waived); (b) the failure to satisfy the “minimum funding standard” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(c) of the Code or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the Borrower or any ERISA Affiliate of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the Borrower or any ERISA Affiliate of any liability with respect to the withdrawal or partial withdrawal of the Borrower or any ERISA Affiliate from any Plan or Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice, concerning the imposition upon the Borrower or any ERISA Affiliate of Withdrawal Liability or a 

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  determination that a Multiemployer Plan is, or is expected to be, insolvent, in critical status or in reorganization, within the meaning of Title IV of ERISA.

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

  “Euro” and “€” mean the single currency of the Participating Member States.

  “Event of Default” has the meaning assigned to such term in Article VII.

  “Excluded Accounts” means any deposit accounts or securities account (a) used solely for trust, payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of any Loan Party or any of its Subsidiaries, (b) used solely for Taxes or fiduciary purposes, (c) used solely to maintain cash collateral where the deposits or proceeds thereof are used primarily to support letters of credit and exposure from Swap Obligations permitted under this Agreement, or (d) with a maximum daily average balance of less than $500,000, individually, and, together with the maximum daily average balance of all other deposit accounts and securities accounts excluded pursuant to this clause (d), $2,500,000.

  “Excluded Assets” has the meaning given such term in the Security Agreement and includes any real property and intellectual property registered in a jurisdiction outside the U.S.

  “Excluded Swap Obligation” means, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the Guarantee of such Guarantor of, or the grant by such Guarantor 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 ECP at the time the Guarantee of such Guarantor or the grant of such security interest becomes or would become 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 any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient: (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan, Letter of Credit or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan, Letter of Credit or Commitment (other than pursuant to an assignment request by the Borrower under Section 2.19(b)) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.17, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender acquired the applicable interest in a Loan, Letter of Credit or Commitment or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 2.17(f), and (d) any withholding Taxes imposed under FATCA.

  “FATCA” means Sections 1471 through 1474 of the Code as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreement entered into 

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  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.

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

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

  “Financial Officer” means the chief financial officer, principal accounting officer, treasurer, assistant treasurer or controller of the Borrower.

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

  “First Amendment Effective Date” means May 27, 2022.

  “Fixed Charge Coverage Ratio” means, for any period, the ratio of (a) an amount equal to EBITDA for such period minus Unfinanced Capital Expenditures for such period, to (b) Fixed Charges for such period, all calculated for the Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP.

  “Fixed Charges” means, for any period, without duplication, the sum of cash Interest Expense, plus scheduled principal payments on Indebtedness actually made, plus expense for taxes paid in cash, plus Restricted Payments paid in cash, plus Capital Lease Obligation payments, all calculated for the Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP.

  “Flood Laws” has the meaning assigned to such term in Section 8.10.

  “Floor” means the benchmark rate floor, if any, provided in this Agreement initially (as of the execution of this Agreement, the modification, amendment or renewal of this Agreement or otherwise) with respect to the Adjusted Term SOFR Rate or the Adjusted Daily Simple SOFR, as applicable.  For the avoidance of doubt, the initial Floor for each of Adjusted Term SOFR Rate or Adjusted Daily Simple SOFR shall be 0%. 

  “Foreign Lender” means (a) if the Borrower is a U.S. Person, a Lender that is not a U.S. Person, and (b) if the Borrower is not a U.S. Person, a Lender that is resident or organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes.

  “Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.

  “Funded Indebtedness” of any Person means, without duplication, Indebtedness of the type specified in clauses (a) through (h) (but in the case of clause (f) or clause (g), only with respect to Indebtedness of the types described in clauses (a) through (e) or clause (h) of the definition of “Indebtedness”).

  “Funding Account” has the meaning assigned to such term in Section 4.01(h).

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  “GAAP” means generally accepted accounting principles in the U.S.

  “Governmental Authority” means the government of the U.S., any other nation or 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.

  “Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation; provided that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business.

  “Guaranteed Obligations” has the meaning assigned to such term in Section 10.01.

  “Guarantors” means all Loan Guarantors, and the term “Guarantor” means each or any one of them individually.

  “Hazardous Materials” means:  (a) any substance, material, or waste that is included within the definitions of “hazardous substances,” “hazardous materials,” “hazardous waste,” “toxic substances,” “toxic materials,” “toxic waste,” or words of similar import in any Environmental Law; (b) those substances listed as hazardous substances by the United States Department of Transportation (or any successor agency) (49 C.F.R. 172.101 and amendments thereto) or by the Environmental Protection Agency (or any successor agency) (40 C.F.R. Part 302 and amendments thereto); and (c) any substance, material, or waste that is petroleum, petroleum-related, or a petroleum by-product, asbestos or asbestos-containing material, polychlorinated biphenyls, flammable, explosive, radioactive, freon gas, radon, or a pesticide, herbicide, or any other agricultural chemical.

  “Immaterial Subsidiary” means, at any time of determination, any Domestic Subsidiary of the Borrower: (a) that, together with its Subsidiaries that constitute Domestic Subsidiaries, does not have total assets in excess of 2.5% of the consolidated total assets of the Borrower and its Domestic Subsidiaries or total revenues in excess of 2.5% of the consolidated total revenues of the Borrower and its Domestic Subsidiaries (based upon and as of the date of delivery of the most recent consolidated financial statements of the Borrower furnished pursuant to this Agreement), and (b) does not own, directly or indirectly, Equity Interests in any other Subsidiary that is not an Immaterial Subsidiary; provided that the total assets or total revenues of all Immaterial Subsidiaries shall not exceed 5% of the consolidated total assets or total revenues, as the case may be, of the Borrower and its Domestic Subsidiaries (based upon and as of the date of delivery of the most recent consolidated financial statements of the Borrower furnished pursuant to this Agreement).

  “Indebtedness” of any Person means, without duplication, (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person upon which interest charges are customarily paid, (d) all obligations of such Person under conditional sale or other title retention agreements relating to property 

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  acquired by such Person, (e) all obligations of such Person in respect of the deferred purchase price of property or services (excluding current accounts payable incurred in the ordinary course of business), (f) all Indebtedness (the “Primary Obligations”) of any other (the “Primary Obligor”) secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not the Primary Obligations secured thereby have been assumed; provided, that if such Person has not assumed the Primary Obligations of the Primary Obligor, then the amount of Indebtedness of such Person for purposes of this clause (f) shall be equal to the lesser of the Primary Obligations of the Primary Obligor and the fair market value of the assets of such Person which secure the Primary Obligations of the Primary Obligor, (g) all Guarantees by such Person of Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty, (j) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances, (k) obligations under any earn-out (which for all purposes of this Agreement shall be valued in accordance with GAAP), (l) any other Off-Balance Sheet Liability, and (m) obligations, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor), in respect of the aggregate net termination value of any and all Swap Agreements on the date of determination, in each case calculated in accordance with the applicable Swap Agreements.  The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor.

  “Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Loan Party under any Loan Document and (b) to the extent not otherwise described in the foregoing clause (a), Other Taxes.

  “Indemnitee” has the meaning assigned to such term in Section 9.03(c).

  “Ineligible Institution” has the meaning assigned to such term in Section 9.04(b).

  “Information” has the meaning assigned to such term in Section 9.12.

  “Interest Election Request” means a request by the Borrower to convert or continue a Borrowing in accordance with Section 2.08, which shall be substantially in the form of Exhibit B‐2 hereto or any other form approved by the Administrative Agent.

  “Interest Expense” means, with reference to any period, total interest expense (including that attributable to Capital Lease Obligations) of the Borrower and its Subsidiaries for such period with respect to all outstanding Indebtedness of the Borrower and its Subsidiaries (including all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptances and net costs under Swap Agreements in respect of interest rates, to the extent such net costs are allocable to such period in accordance with GAAP), calculated for the Borrower and its Subsidiaries on a consolidated basis for such period in accordance with GAAP.

  “Interest Payment Date” means (a) with respect to any CBFR Loan, the first Business Day of each calendar month and the Revolving Credit Maturity Date or the Term A Maturity Date, as applicable, (b) with respect to any RFR Loan, (1) each date that is on the numerically corresponding day in each calendar month that is one month after the Borrowing of such Loan (or, if there is no such numerically corresponding day in such month, then the last day of such month) and (2) the Revolving Credit Maturity Date or the Term A Maturity Date, as applicable, and (c) with respect to any Term Benchmark Loan, the last day of each Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Term Benchmark Borrowing with an Interest Period of more than three months’ duration, each day prior to the last day of 

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  such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest Period and the Revolving Credit Maturity Date or the Term A Maturity Date, as applicable.

  “Interest Period” means with respect to any Term Benchmark Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, three or six months thereafter (in each case, subject to the availability for the Benchmark applicable to the relevant Loan or (Commitment)), as the Borrower may elect; provided that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day, (ii) any Interest Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period, and (iii) no tenor that has been removed from this definition pursuant to Section 2.14(e) shall be available for specification in such Borrowing Request or Interest Election Request.  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.

  “Inventory” has the meaning assigned to such term in the Security Agreement.

  “Investment” has the meaning assigned to it in Section 6.04.

  “IRS” means the United States Internal Revenue Service.

  “Issuing Bank” means, individually and collectively, each of Chase, in its capacity as the issuer of Letters of Credit hereunder, and any other Revolving Lender from time to time designated by the Borrower as an Issuing Bank (in each case, through itself or through one of its designated affiliates or branch offices), with the consent of such Revolving Lender and the Administrative Agent, and their respective successors in such capacity as provided in Section 2.06(i).  Any Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by its Affiliates, in which case the term “Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate (it being agreed that such Issuing Bank shall, or shall cause such Affiliate to, comply with the requirements of Section 2.06 with respect to such Letters of Credit).  At any time there is more than one Issuing Bank, all singular references to the Issuing Bank shall mean any Issuing Bank, either Issuing Bank, each Issuing Bank, the Issuing Bank that has issued the applicable Letter of Credit, or both (or all) Issuing Banks, as the context may require.

  “Issuing Bank Sublimit” means, as of the First Amendment Effective Date, (i) $15,000,000.00, in the case of Chase, and (ii) such amount as shall be designated to the Administrative Agent and the Borrower in writing by an Issuing Bank; provided that any Issuing Bank shall be permitted at any time to increase or reduce its Issuing Bank Sublimit upon providing five days’ prior written notice thereof to the Administrative Agent and the Borrower.

  “Joinder Agreement” means a Joinder Agreement in substantially the form of Exhibit E.

  “LC Collateral Account” has the meaning assigned to such term in Section 2.06(j).

  “LC Disbursement” means any payment made by an Issuing Bank pursuant to a Letter of Credit.

  “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all Letters of Credit outstanding at such time plus (b) the aggregate amount of all LC Disbursements relating to Letters of Credit that have not yet been reimbursed by or on behalf of the Borrower at such time.  The LC Exposure 

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  of any Revolving Lender at any time shall be its Applicable Percentage of the aggregate LC Exposure at such time.

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

  “Lender-Related Person” has the meaning assigned to such term in Section 9.03(b).

  “Lenders” means the Persons listed on the Commitment Schedule and any other Person that shall have become a Lender hereunder pursuant to Section 2.09 or an Assignment and Assumption or otherwise, other than any such Person that ceases to be a Lender hereunder pursuant to an Assignment and Assumption or otherwise.  Unless the context otherwise requires, the term “Lenders” includes the Issuing Bank.

  “Letter of Credit Agreement” has the meaning assigned to it in Section 2.06(b).

  “Letters of Credit” means the letters of credit issued pursuant to this Agreement, and the term “Letter of Credit” means any one of them or each of them singularly, as the context may require.

  “Leverage Ratio” means, with respect to the Borrower and its Subsidiaries on a consolidated basis as of any date of determination thereof, the ratio of (a) all Funded Indebtedness on such date minus the lesser of (i) Unrestricted Cash on such date and (ii) one-half of EBITDA, calculated in accordance with the following clause (b), to (b) EBITDA for the period of four consecutive fiscal quarters ended on, or if four consecutive fiscal quarters does not end on such date, the four consecutive fiscal quarters ended most recently prior to such date.

  “Liabilities” means any losses, claims (including intraparty claims), demands, damages or liabilities of any kind.

  “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, and (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset.

  “Liquidity” means, with respect to the Borrower and its Subsidiaries at any time of determination, the sum of (a) all Unrestricted Cash and Permitted Investments of the Borrower and its Subsidiaries at such time plus (b) Availability at such time.

  “Loan Documents” means, collectively, this Agreement, each promissory note issued pursuant to this Agreement, each Letter of Credit Agreement, each Collateral Document, each Compliance Certificate, the Loan Guaranty, and each other agreement, instrument, document and certificate executed and delivered to, or in favor of, the Administrative Agent or any Lender in connection with this Agreement or the transactions contemplated hereby, including each other pledge, power of attorney, consent, assignment, contract, notice, letter of credit agreement, letter of credit applications and any agreements between the Borrower and the Issuing Bank regarding the Issuing Bank’s Issuing Bank Sublimit or the respective rights and obligations between the Borrower and the Issuing Bank in connection with the issuance of Letters of Credit, and each other written matter whether heretofore, now or hereafter executed by or on behalf of any Loan Party, or any employee of any Loan Party, and delivered to the Administrative Agent or any Lender in connection with this Agreement or the transactions contemplated hereby.  Any reference in this Agreement or any other Loan Document to a Loan Document shall include all appendices, exhibits or schedules thereto, and all amendments, restatements, supplements or other modifications thereto, and shall 

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  refer to this Agreement or such Loan Document as the same may be in effect at any and all times such reference becomes operative.

  “Loan Guarantor” means (a) each Loan Party with respect to Banking Services Obligations and Swap Agreement Obligations owing to one or more Lenders or their respective Affiliates and (b) each Loan Party, other than the Borrower, with respect to all other Secured Obligations.

  “Loan Guaranty” means (a) Article X of this Agreement and (b) each other separate Guarantee in respect of the Obligations, in form and substance reasonably satisfactory to the Administrative Agent delivered by any Loan Party.

  “Loan Parties” means, collectively, the Borrower and any other Subsidiary of the Borrower who is a party to this Agreement or becomes a party to this Agreement pursuant to a Joinder Agreement and their respective successors and assigns, and the term “Loan Party” shall mean any one of them or all of them individually, as the context may require.

  “Loans” means the Revolving Loans and the Term Loans (including any Incremental Term Loans and any Revolving Loans made pursuant to an Incremental Commitment).

  “Margin Stock” means margin stock within the meaning of Regulations T, U and X, as applicable.

  “Material Adverse Effect” means a material adverse effect on (a) the business, assets, results of operations, or condition, financial or otherwise, of the Borrower and its Subsidiaries, taken as a whole, (b) the ability of the Loan Parties, taken as a whole, to perform their Obligations, (c) the Collateral, or the Administrative Agent’s Liens (on behalf of itself and the other Secured Parties) on the Collateral or the priority of such Liens (other than with respect to any Lien permitted pursuant to Section 6.02), or (d) the rights of or benefits available to the Administrative Agent, the Issuing Bank or the Lenders under any of the Loan Documents.

  “Material Indebtedness” means Indebtedness (other than the Loans and Letters of Credit), or obligations in respect of one or more Swap Agreements, of any one or more of the Borrower and its Subsidiaries in an aggregate principal amount exceeding $10,000,000.  For purposes of determining Material Indebtedness, the “principal amount” of the obligations of the Borrower or any Subsidiary in respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Borrower or such Subsidiary would be required to pay if such Swap Agreement were terminated at such time.

  “Maximum Rate” has the meaning assigned to such term in Section 9.17.

  “Moody’s” means Moody’s Investors Service, Inc.

  “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

  “Net Income” means, for any period, the consolidated net income (or loss) determined for the Borrower and its Subsidiaries, on a consolidated basis in accordance with GAAP; provided, there shall be excluded (a) other than for purposes of any pro forma calculation requirements of this Agreement or any other Loan Document, the income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary or is merged into or consolidated with the Borrower or any Subsidiary, (b) the income (or deficit) of any Person (other than a Subsidiary) in which the Borrower or any Subsidiary has an ownership interest, except to the extent that any such income is actually received by the Borrower or such Subsidiary in the form of dividends or similar distributions, and (c) the undistributed earnings of any Subsidiary, to the extent 

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  that the Borrower has knowledge that the declaration or payment of dividends or similar distributions by such Subsidiary is not at the time permitted by the terms of any contractual obligation (other than under any Loan Document) or Requirement of Law applicable to such Subsidiary.

  “Net Proceeds” means, with respect to any event, (a) the cash proceeds received in respect of such event including (i) any cash received in respect of any non-cash proceeds (including any cash payments received by way of deferred payment of principal pursuant to a note or installment receivable or purchase price adjustment receivable or otherwise, but excluding any interest payments), but only as and when received, (ii) in the case of a casualty, insurance proceeds (excluding for the avoidance of doubt, proceeds from business interruption insurance, cybersecurity insurance and similar policies) and (iii) in the case of a condemnation or similar event, condemnation awards and similar payments, minus (b) the sum of (i) all reasonable fees and out-of-pocket expenses paid to third parties (other than Affiliates) in connection with such event, (ii) in the case of a Disposition of an asset (including pursuant to a sale and leaseback transaction or a casualty or a condemnation or similar proceeding), the amount of all payments required to be made as a result of such event to repay Indebtedness (other than Loans) secured by such asset or otherwise subject to mandatory prepayment as a result of such event (to the extent such Indebtedness and/or payment is permitted under this Agreement) and (iii) the amount of all taxes paid (or reasonably estimated to be payable) and the amount of any reserves established to fund contingent liabilities reasonably estimated to be payable, in each case during the year that such event occurred or the next succeeding year and that are directly attributable to such event (as determined reasonably and in good faith by a Financial Officer).

  “Non-Consenting Lender” has the meaning assigned to such term in Section 9.02(d).

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

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

  “NYFRB’s Website” means the website of the NYFRB at http://www.newyorkfed.org, or any successor source. 

  “Obligated Party” has the meaning assigned to such term in Section 10.02.

  “Obligations” means all unpaid principal of and accrued and unpaid interest on the Loans, all LC Exposure, all accrued and unpaid fees and all expenses, reimbursements, indemnities and other obligations and indebtedness (including interest and fees accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), obligations and liabilities of any of the Loan Parties to any of the Lenders, the Administrative Agent, the Issuing Bank or any indemnified party, individually or collectively, existing on the Effective Date or arising thereafter, direct or indirect, joint or several, absolute or contingent, matured or unmatured, liquidated or unliquidated, secured or unsecured, arising by contract, operation of law or otherwise, arising or incurred under this Agreement or any of the other Loan Documents or in respect of any of the Loans made or reimbursement or other obligations incurred or any of the Letters of Credit or other instruments at any time evidencing any thereof.

  “OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury.

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  “Off-Balance Sheet Liability” of a Person means (a) any repurchase obligation or liability of such Person with respect to accounts or notes receivable sold by such Person, (b) any indebtedness, liability or obligation under any so-called “synthetic lease” transaction entered into by such Person, or (c) any indebtedness, liability or obligation arising with respect to any other transaction which is the functional equivalent of or takes the place of borrowing but which does not constitute a liability on the balance sheet of such Person (other than operating leases).

  “Optellian Earn Out” has the meaning given such term in Schedule 6.01.

  “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 Taxes (other than a connection arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to, or enforced, any Loan Document, or sold or assigned an interest in any Loan, Letter of Credit, or any Loan Document).

  “Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 2.19).

  “Overnight Bank Funding Rate” means, for any day, the rate comprised of both overnight federal funds and overnight eurodollar transactions denominated in Dollars by U.S.-managed banking offices of depository institutions (as such composite rate shall be determined by the NYFRB as set forth on the NYFRB’s Website from time to time) and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate.

  “Paid in Full” or “Payment in Full” means, (i) the payment in full in cash of all outstanding Loans and LC Disbursements, together with accrued and unpaid interest thereon, (ii) the termination, expiration, or cancellation and return of all outstanding Letters of Credit (or alternatively, with respect to each such Letter of Credit, the furnishing to the Administrative Agent of a cash deposit, or a back-up standby letter of credit reasonably satisfactory to the Administrative Agent and the Issuing Bank, in an amount equal to 105% of the LC Exposure for such Letter of Credit as of the date of such payment), (iii) the payment in full in cash of the accrued and unpaid fees, (iv) the payment in full in cash of all reimbursable expenses and other Secured Obligations (other than Unliquidated Obligations for which no claim has been made and other obligations expressly stated to survive such payment and termination of this Agreement), together with accrued and unpaid interest thereon, (v) the termination of all Commitments, and (vi) the termination of the Swap Agreement Obligations and the Banking Services Obligations or entering into other arrangements reasonably satisfactory to the Secured Parties counterparties thereto.

  “Participant” has the meaning assigned to such term in Section 9.04(c).

  “Participant Register” has the meaning assigned to such term in Section 9.04(c).

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

  “Payment” has the meaning assigned to it in Section 8.06(c).

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  “Payment Condition” shall be deemed to be satisfied with respect to a transaction if:

  (a)	no Event of Default has occurred and is continuing or would result immediately after giving effect to such transaction; and

  (b)	immediately after giving effect to and at all times during the 30 consecutive day period immediately prior to such transaction, the Borrower shall have (A) Liquidity (or with respect to such 30 consecutive day period, an average of Liquidity for such 30 days) calculated on a pro forma basis after giving effect to such transaction of not less than $20,000,000 and (B) a Leverage Ratio for the most recently ended four fiscal quarter period for which financial statements have been delivered pursuant to Section 5.01, calculated on a pro forma basis after giving effect to such transaction, of not more than 2.25 to 1.00.

  “Payment Notice” has the meaning assigned to it in Section 8.06(c). 

  “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions.

  “Permitted Acquisition” means the Adaptive Spectrum Acquisition and any other Acquisition by the Borrower or any of its Subsidiaries that satisfies each of the following requirements:

  (a)	such Acquisition is not a hostile or contested acquisition;

  (b)	the business acquired in connection with such Acquisition is not engaged, directly or indirectly, in any line of business other than the businesses in which the Loan Parties are engaged on the Effective Date and any business activities that are substantially similar, related, or incidental thereto;

  (c)	either (i) the business acquired in connection with such Acquisition is located in the U.S. and organized under applicable U.S. and state laws, or (ii) the total consideration for such Acquisition, together with the total consideration for all other Acquisitions of businesses located outside of the U.S. during the term of this Agreement, does not exceed $15,000,000 in the aggregate;

  (d)	both immediately before and immediately after giving effect to such Acquisition and the Loans (if any) requested to be made in connection therewith, each of the representations and warranties in the Loan Documents is true and correct in all material respects (without duplication of any materiality qualifier therein and except any such representation or warranty which relates to a specified prior date) and no Default exists or would result therefrom;

  (e)	as soon as available, but not less than 20 days prior to such Acquisition (or such shorter period prior to such Acquisition as the Administrative Agent may permit in its sole discretion), the Borrower has provided the Administrative Agent (i) notice of such Acquisition and (ii) a copy of all business and financial information reasonably requested by the Administrative Agent including pro forma financial statements, statements of cash flow, and Availability projections;

  (f)	if the Accounts and Inventory acquired in connection with such Acquisition are proposed to be included in the determination of the Borrowing Base, the Administrative Agent shall have conducted an audit and field examination of such Accounts and Inventory, the results of which shall be satisfactory to the Administrative Agent in its Permitted Discretion;

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  (g)	either (i) the total consideration (including maximum potential total amount of all deferred payment obligations (including earn-outs) and Indebtedness assumed or incurred) of such Acquisition does not exceed $10,000,000 and any cash consideration paid (A) in connection with any single Acquisition shall not exceed $10,000,000 and (B) for all Acquisitions made during the term of this Agreement shall not exceed $10,000,000 or (ii) the Payment Condition shall be satisfied on a pro forma basis immediately after giving effect to such Acquisition; 

  (h)	if such Acquisition is an acquisition of the Equity Interests of a Person, such Acquisition is structured so that the acquired Person shall become a wholly-owned Subsidiary of the Borrower and a Loan Party if otherwise required pursuant to the terms of this Agreement;

  (i)	if such Acquisition is an acquisition of assets located in the U.S., such Acquisition is structured so that the Borrower or another Loan Party shall acquire such assets;

  (j)	if such Acquisition is an acquisition of Equity Interests, such Acquisition will not result in any violation of Regulation U;

  (k)	if such Acquisition involves a merger or a consolidation involving the Borrower or any other Loan Party, the Borrower or such Loan Party, as applicable, shall be the surviving entity;

  (l)	no Loan Party shall, as a result of or in connection with any such Acquisition, assume or incur any direct or contingent liabilities (whether relating to environmental, tax, litigation, or other matters) that at the time of such Acquisition could reasonably be expected to have a Material Adverse Effect;

  (m)	in connection with an Acquisition of the Equity Interests of any Person, all Liens on property of such Person (other than any Lien permitted under Section 6.02) shall be terminated unless the Administrative Agent and the Lenders in their sole discretion consent otherwise, and in connection with an Acquisition of the assets of any Person, all Liens on such assets (other than any Lien permitted under Section 6.02) shall be terminated;

  (n)	the Borrower shall certify to the Administrative Agent and the Lenders (and provide the Administrative Agent and the Lenders with a pro forma calculation in form and substance reasonably satisfactory to the Administrative Agent and the Lenders) that, after giving effect to the completion of such Acquisition, on a pro forma basis, the Borrower will be in compliance with the covenants contained in Section 6.12;

  (o)	all actions required to be taken with respect to any newly acquired or formed wholly-owned Subsidiary of the Borrower or a Loan Party, as applicable, required under Section 5.14 shall have been taken; and

  (p)	the Borrower shall have delivered to the Administrative Agent the final executed material documentation relating to such Acquisition within five days following the consummation thereof.

  “Permitted Discretion” means a determination made in good faith and in the exercise of reasonable (from the perspective of a secured asset-based lender) business judgment.

  “Permitted Encumbrances” means:

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  (a)	Liens imposed by law for Taxes that are not yet due or are being contested in compliance with Section 5.04;

  (b)	Landlord’s, carriers’, warehousemen’s, consignor’s, mechanics’, materialmen’s, repairmen’s and other like Liens imposed by law or contract, arising in the ordinary course of business and securing obligations that are not overdue by more than 30 days or are being contested in compliance with Section 5.04;

  (c)	pledges and deposits made in the ordinary course of business in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations;

  (d)	deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case in the ordinary course of business;

  (e)	judgment Liens in respect of judgments that do not constitute an Event of Default under clause (k) of Article VII; and

  (f)	easements, 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 interfere with the ordinary conduct of business of the Borrower or any Subsidiary;

  provided that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness, except with respect to clause (e) above.

  “Permitted Investments” means:

  (a)	direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the U.S., the European Union or any other country whose sovereign debt has a rating of at least A3 from Moody’s and at least A- from S&P (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the U.S., the European Union or such country), in each case maturing within one year from the date of acquisition thereof;

  (b)	investments in commercial paper maturing within 270 days from the date of acquisition thereof and having, at such date of acquisition, the highest credit rating obtainable from S&P or from Moody’s;

  (c)	investments in certificates of deposit, bankers’ acceptances and time deposits maturing within 270 days from the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any Lender or commercial bank that has a combined capital and surplus and undivided profits of not less than $500,000,000 and, in the case of any commercial bank that is not organized under the laws of the U.S. or any state thereof, whose long-term debt is rated no lower than A or the equivalent thereof by S&P;

  (d)	fully collateralized repurchase agreements with a term of not more than 30 days for securities described in clause (a) above and entered into with a financial institution satisfying the criteria described in clause (c) above; 

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  (e)	money market funds that (i) comply with the criteria set forth in Securities and Exchange Commission Rule 2a‐7 under the Investment Company Act of 1940, (ii) are rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio assets of at least $5,000,000,000; and

  (f)	in the case of any Subsidiary of the Borrower organized or having its principal place of business outside the U.S., investments denominated in the currency of the jurisdiction in which such Subsidiary is organized or has its principal place of business which are similar to the items described in clauses (a) through (e) of this definition.

  “Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.

  “Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

  “Plan Asset Regulations” means 29 CFR § 2510.3-101 et seq., as modified by Section 3(42) of ERISA, as amended from time to time.

  “Prepayment Event” means:

  (a)	any Disposition (including pursuant to a sale and leaseback transaction) of any property or asset of any Loan Party or any Subsidiary that is not permitted by Section 6.05 or is of the type described in Section 6.05(d)(ii) or  Section 6.05(m), other than to the extent that the Net Proceeds from such event (i) are not in excess of $300,000 or (ii) when aggregated with the Net Proceeds from all other Prepayment Events of the type described in this clause (a) in any fiscal year of the Borrower, are not in excess of $1,000,000;

  (b)	any casualty or other insured damage to, or any taking under power of eminent domain or by condemnation or similar proceeding of, any property or asset of any Loan Party or any Subsidiary, other than (i) any such event involving property or assets of one or more Foreign Subsidiaries that, individually or in the aggregate, have a fair value of less than $20,000,000 (or the Dollar Equivalent thereof) in any fiscal year of the Borrower or (ii) to the extent that the Net Proceeds from such event (A) are not in excess of $300,000 or (B) when aggregated with the Net Proceeds from all other Prepayment Events of the type described in this clause (b) in any fiscal year of the Borrower, are not in excess of $1,000,000; or

  (c)	the incurrence by any Loan Party or any Subsidiary of any Indebtedness, other than Indebtedness permitted under Section 6.01.

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

  “Proceeding” means any claim, litigation, investigation, action, suit, arbitration or administrative, judicial or regulatory action or proceeding in any jurisdiction.

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  “Projections” has the meaning assigned to such term in Section 5.01(e).

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

  “Public-Sider” means a Lender whose representatives may trade in securities of the Borrower or its Controlling person or any of its Subsidiaries while in possession of the financial statements provided by the Borrower under the terms of this Agreement.

  “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 assigned to it in Section 9.21. 

  “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 Loan Guaranty or grant of the relevant security interest becomes or would become 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.

  “Recipient” means, as applicable, (a) the Administrative Agent, (b) any Lender and (c) any Issuing Bank, or any combination thereof (as the context requires).

  “Reference Time” with respect to any setting of the then-current Benchmark means (1) if such Benchmark is the Term SOFR Rate, 5:00 a.m. (Chicago time) on the day that is two Business Days preceding the date of such setting, (2) if such Benchmark is Daily Simple SOFR, then four Business Days prior to such setting, or (3) if such Benchmark is neither the Term SOFR Rate or Daily Simple SOFR, the time determined by the Administrative Agent in its reasonable discretion. 

  “Refinance Indebtedness” has the meaning assigned to such term in Section 6.01(f).

  “Register” has the meaning assigned to such term in Section 9.04(b).

  “Regulation D” means Regulation D of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

  “Regulation T” means Regulation T of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

  “Regulation U” means Regulation U of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

  “Regulation X” means Regulation X of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.

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

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  “Release” means any releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, migrating, disposing, or dumping of any substance into the environment.

  “Relevant Governmental Body” means the Federal Reserve Board and/or the NYFRB, the CME Term SOFR Administrator, as applicable, or a committee officially endorsed or convened by the Federal Reserve Board and/or the NYFRB, or, in each case, any successor thereto.

  “Relevant Rate” means (i) with respect to any Term Benchmark Borrowing, the Adjusted Term SOFR Rate or (ii) with respect to any RFR Borrowing, the Adjusted Daily Simple SOFR, as applicable.

  “Report” means reports prepared by the Administrative Agent or another Person showing the results of appraisals, field examinations or audits pertaining to the Borrower’s assets from information furnished by or on behalf of the Borrower, after the Administrative Agent has exercised its rights of inspection pursuant to this Agreement, which Reports may be distributed to the Lenders by the Administrative Agent.

  “Required Lenders” means, subject to Section 2.20, (a) at any time prior to the earlier of the Loans becoming due and payable pursuant to Article VII or the Commitments terminating or expiring, Lenders having Credit Exposure and Unfunded Commitments representing more than 50% of the sum of the Aggregate Credit Exposure and Unfunded Commitments at such time; provided that, as long as there are only two Lenders, Required Lenders shall mean both Lenders; provided, further, solely for purposes of declaring the Loans to be due and payable pursuant to Article VII, the Unfunded Commitment of each Lender shall be deemed to be zero in determining the Required Lenders; and (b) for all purposes after the Loans become due and payable pursuant to Article VII or the Commitments expire or terminate, Lenders having Credit Exposure representing more than 50% of the Aggregate Credit Exposure at such time.

  “Requirement of Law” means, with respect to any Person, (a) the charter, articles or certificate of organization or incorporation and bylaws or operating, management or partnership agreement, or other organizational or governing documents of such Person and (b) any statute, law (including common law), treaty, rule, regulation, code, ordinance, order, decree, writ, judgment, injunction or determination of any arbitrator or court or other Governmental Authority (including Environmental Laws), in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

  “Reserves” means any and all reserves which the Administrative Agent deems necessary, in its Permitted Discretion, to maintain with respect to the Collateral or any Loan Party.

  “Resolution Authority” means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

  “Responsible Officer” means the president, vice president, Financial Officer or other executive officer of the Borrower.

  “Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any Equity Interests in the Borrower or any Subsidiary, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests or any option, warrant or other right to acquire any such Equity Interests. 

  “Reuters” means, as applicable, Thomson Reuters Corp, Refinitiv, or any successor thereto.

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  “Revaluation Date” means, with respect to any Letter of Credit denominated in an Alternative Currency, each of the following: (a) the date on which such Letter of Credit is issued, (b) the first Business Day of each calendar month, (c) the date of any amendment of such Letter of Credit that has the effect of increasing the face amount thereof, (d) the date of any payment by the Issuing Bank under such Letter of Credit, and (e) such additional dates as the Administrative Agent or the Issuing Bank shall determine or the Required Lenders shall require.

  “Revolving Borrowing” means Revolving Loans of the same Type, made, converted or continued on the same date and, in the case of Term Benchmark Loans, as to which a single Interest Period is in effect. 

  “Revolving Commitment” means, with respect to each Lender, the amount set forth on the Commitment Schedule opposite such Lender’s name, or in the Assignment and Assumption or other documentation or record (as such term is defined in Section 9-102(a)(70) of the New York Uniform Commercial Code) as provided in Section 9.04(b)(ii)(C), pursuant to which such Lender shall have assumed its Revolving Commitment, as applicable, as such Revolving Commitment may be reduced or increased from time to time pursuant to (a) Section 2.09 and (b) assignments by or to such Lender pursuant to Section 9.04; provided, that at no time shall the Revolving Exposure of any Lender exceed its Revolving Commitment.  The aggregate amount of the Lenders’ Revolving Commitments on the First Amendment Effective Date is $30,000,000.00.

  “Revolving Credit Maturity Date” means May 27, 2025 (if the same is a Business Day, or if not then the immediately next succeeding Business Day), or any earlier date on which the Revolving Commitments are reduced to zero or otherwise terminated pursuant to the terms hereof.

  “Revolving Exposure” means, with respect to any Lender, at any time, the sum of the aggregate outstanding principal amount of such Lender’s Revolving Loans and its LC Exposure at such time.

  “Revolving Lender” means, as of any date of determination, a Lender with a Revolving Commitment or, if the Revolving Commitments have terminated or expired, a Lender with Revolving Exposure.

  “Revolving Loan” means a Loan made pursuant to Section 2.01(a).

  “RFR Borrowing” means, as to any Borrowing, the RFR Loans comprising such Borrowing.

  “RFR Loan” means a Loan that bears interest at a rate based on the Adjusted Daily Simple SOFR. 

  “S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business.

  “Sale and Leaseback Transaction” has the meaning assigned to such term in Section 6.06.

  “Sanctioned Country” means, at any time, a country, region or territory which is itself the subject or target of any Sanctions (at the time of this Agreement, the so-called Donetsk People’s Republic, the so-called Luhansk People’s Republic, the Crimea Region of Ukraine, Cuba, Iran, North Korea and Syria).

  “Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State or by the United Nations Security Council, the European Union, any European Union member state, Her Majesty’s Treasury of the United Kingdom or other relevant sanctions authority, (b) any Person operating, organized or resident in a Sanctioned Country, (c) any Person 

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  owned or controlled by any such Person or Persons described in the foregoing clauses (a) or (b), or (d) any Person otherwise the subject of any Sanctions.

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

  “SEC” means the Securities and Exchange Commission of the U.S.

  “Secured Obligations” means all Obligations, together with all (i) Banking Services Obligations and (ii) Swap Agreement Obligations owing to one or more Lenders or their respective Affiliates; provided, however, that the definition of “Secured Obligations” shall not create any guarantee by any Guarantor of (or grant of security interest by any Guarantor to support, as applicable) any Excluded Swap Obligations of such Guarantor for purposes of determining any obligations of any Guarantor.

  “Secured Parties” means (a) the Lenders, (b) the Administrative Agent, (c) each Issuing Bank, (d) each provider of Banking Services, to the extent the Banking Services Obligations in respect thereof constitute Secured Obligations, (e) each counterparty to any Swap Agreement, to the extent the obligations thereunder constitute Secured Obligations, (f) the beneficiaries of each indemnification obligation undertaken by any Loan Party under any Loan Document, and (g) the successors and assigns of each of the foregoing.

  “Security Agreement” means that certain Pledge and Security Agreement (including any and all supplements thereto), dated as of the date hereof, among the Loan Parties and the Administrative Agent, for the benefit of the Administrative Agent and the other Secured Parties, and any other pledge or security agreement entered into after the date of this Agreement by any other Loan Party (as required by this Agreement or any other Loan Document) to secure the Secured Obligations for the benefit of the Administrative Agent and the other Secured Parties, as the same may be amended, restated, supplemented or otherwise modified from time to time.

  “SOFR” means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.

  “SOFR Administrator” means the NYFRB (or a successor administrator of the secured overnight financing rate).

  “SOFR Administrator’s Website” means the NYFRB’s website, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

  “SOFR Determination Date” has the meaning specified in the definition of “Daily Simple SOFR”.

  “SOFR Rate Day” has the meaning specified in the definition of “Daily Simple SOFR”.

  “Statements” has the meaning assigned to such term in Section 2.18(f).

  “Sterling” or “£” mean the lawful currency of the United Kingdom.

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  “Subordinated Indebtedness” of a Person means any Indebtedness of such Person, the payment of which is subordinated to payment of the Secured Obligations to the written satisfaction of the Administrative Agent in its Permitted Discretion.

  “subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited liability company, partnership, association or other entity, the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent and/or one or more subsidiaries of the parent.

  “Subsidiary” means any direct or indirect subsidiary of the Borrower or a Loan Party, as applicable.

  “Supported QFC” has the meaning assigned to it in Section 9.21. 

  “Swap Agreement” means any agreement with respect to any swap, forward, spot, future, credit default or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Borrower or the Subsidiaries shall be a Swap Agreement.

  “Swap Agreement Obligations” means any and all obligations of the Loan Parties and their Subsidiaries, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and substitutions therefor), under (a) any Swap Agreement permitted hereunder with a Lender or an Affiliate of a Lender, and (b) any cancellations, buy backs, reversals, terminations or assignments of any Swap Agreement transaction permitted hereunder with a Lender or an Affiliate of a Lender.

  “Swap Obligation” means, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act or any rules or regulations promulgated thereunder.

  “Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), value added taxes, or any other goods and services, use or sales taxes, assessments, fees or other charges, in each case, imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

  “Term A Commitment” means, with respect to each Lender, the commitment, if any, of such Lender to make a Term A Loan, expressed as an amount representing the maximum principal amount of the Term A Loans to be made by such Lender, as such commitment may be reduced or increased from time to time pursuant to (a) Section 2.09 and (b) assignments by or to such Lenders pursuant to Section 9.04.  The initial amount of each Lender’s Term A Commitment is set forth on the Commitment Schedule or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Term A Commitment, as applicable.  The aggregate amount of the Lenders’ Term A Commitments on the First Amendment Effective Date is $25,000,000.

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  “Term A Lender” means a Lender having a Term A Commitment or an outstanding Term A Loan.

  “Term A Loan” means a Loan made pursuant to Section 2.01(b).

  “Term A Maturity Date” means May 27, 2027 (if the same is a Business Day, or if not then the immediately next succeeding Business Day).

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

  “Term Loans” means the Term A Loans and any other term loan made pursuant to this Agreement.

  “Term SOFR Determination Day” has the meaning assigned to it under the definition of Term SOFR Reference Rate.

  “Term SOFR Rate” means, with respect to any Term Benchmark Borrowing and for any tenor comparable to the applicable Interest Period, the Term SOFR Reference Rate at approximately 5:00 a.m., Chicago time, two U.S. Government Securities Business Days prior to the commencement of such tenor comparable to the applicable Interest Period, as such rate is published by the CME Term SOFR Administrator.

  “Term SOFR Reference Rate” means, for any day and time (such day, the “Term SOFR Determination Day”), and for any tenor comparable to the applicable Interest Period, the rate per annum determined by the Administrative Agent as the forward-looking term rate based on SOFR.  If by 5:00 pm (New York City time) on such Term SOFR Determination Day, the “Term SOFR Reference Rate” for the applicable tenor has not been published by the CME Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Rate has not occurred, then the Term SOFR Reference Rate for such Term SOFR Determination Day will be the Term SOFR Reference Rate as published in respect of the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate was published by the CME Term SOFR Administrator, so long as such first preceding Business Day is not more than five Business Days prior to such Term SOFR Determination Day.

  “Transactions” means the execution, delivery and performance by the Borrower of this Agreement and the other Loan Documents, the borrowing of Loans and other credit extensions, the use of the proceeds thereof and the issuance of Letters of Credit hereunder.

  “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted Term SOFR Rate, the Adjusted Daily Simple SOFR or the CB Floating Rate.

  “U.S.” means 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 recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities. 

  “U.S. Person” means a “United States person” within the meaning of Section 7701(a)(30) of the Code.

  “U.S. Special Resolution Regime” has the meaning assigned to it in Section 9.21. 

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  “U.S. Tax Compliance Certificate” has the meaning assigned to such term in Section 2.17(f)(ii)(B)(3).

  “UCC” means the Uniform Commercial Code as in effect from time to time in the State of Texas or in any other state, the laws of which are required to be applied in connection with the issue of perfection of security interests.

  “UK Financial Institutions” 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. 

  “Unfinanced Capital Expenditures” means, for any period, Capital Expenditures made during such period which are not financed from the proceeds of any Indebtedness (other than the Revolving Loans; it being understood and agreed that, to the extent any Capital Expenditures are financed with Revolving Loans, such Capital Expenditures shall be deemed Unfinanced Capital Expenditures).

  “Unfunded Commitment” means, with respect to each Lender, the Revolving Commitment of such Lender less its Revolving Exposure.

  “Unliquidated Obligations” means, at any time, any Secured Obligations (or portion thereof) that are contingent in nature or unliquidated at such time, including any Secured Obligation that is: (i) an obligation to reimburse a bank for drawings not yet made under a letter of credit issued by it; (ii) any other obligation (including any guarantee) that is contingent in nature at such time; or (iii) an obligation to provide collateral to secure any of the foregoing types of obligations.

  “Unrestricted Cash” means, at any time, cash on hand of the Borrower and its Subsidiaries that meets each of the following requirements: such cash on hand is (a) not subject to any Lien, except (i) a banker’s or securities intermediary Lien or right of setoff pursuant to customary deposit or securities account arrangements and  (ii) Liens to secure the Secured Obligations  (but not in an LC Collateral Account or otherwise specifically designed as cash collateral hereunder), (b) not (i) subject to any restriction as to its use, or (ii) held for any other specific purpose or use (including, for the avoidance of doubt, without limitation, being held for use for any anticipated investment, any payment of Indebtedness to any other Person (except the Lenders), any other anticipated specific payment or use or any other specific purpose), (c) either (i) located in a deposit account at Chase or any of its Affiliates or (ii) subject to a deposit account control agreement or a securities account control agreement, as applicable, at such time in favor of the Administrative Agent, in each case of clauses (i) and (ii), subject to Section 5.13, and (d) included in “cash” and not “restricted cash” on the consolidated balance sheet of the Borrower. 

  “USA PATRIOT Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001.

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  “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.

  “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.

  SECTION 1.02  Classification of Loans and Borrowings.  For purposes of this Agreement, Loans may be classified and referred to by Class (e.g., a “Revolving Loan”) or by Type (e.g., a “Term Benchmark Loan” or an “RFR Loan”) or by Class and Type (e.g., a “Term Benchmark Revolving Loan” or an “RFR Revolving Loan”).  Borrowings also may be classified and referred to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Term Benchmark Borrowing” or an “RFR Borrowing”) or by Class and Type (e.g., a “Term Benchmark Revolving Borrowing” or an “RFR Revolving Borrowing”).

  SECTION 1.03  Terms Generally.  The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.  The word “law” shall be construed as referring to all statutes, rules, regulations, codes and other laws (including official rulings and interpretations thereunder having the force of law or with which affected Persons customarily comply) and all judgments, orders and decrees of all Governmental Authorities.  The word “will” shall be construed to have the same meaning and effect as the word “shall”.  Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein), (b) except as otherwise provided herein, any definition of or reference to any statute, rule or regulation shall be construed as referring thereto as from time to time amended, supplemented or otherwise modified (including by succession of comparable successor laws), (c) any reference herein to any Person shall be construed to include such Person’s successors and assigns (subject to any restrictions on assignments set forth herein) and, in the case of any Governmental Authority, any other Governmental Authority that shall have succeeded to any or all functions thereof, (d) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (e) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (f) any reference in any definition to the phrase “at any time” or “for any period” shall refer to the same time or period for all calculations or determinations within such definition, and (g) 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.

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  SECTION 1.04  Accounting Terms; GAAP.  

  (a)	Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if after the date hereof there occurs any change in GAAP or in the application thereof on the operation of any provision hereof and the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of such change in GAAP or in the application thereof (or if the Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith.  Notwithstanding any other provision contained herein, all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made (i) without giving effect to any election under Financial Accounting Standards Board Accounting Standards Codification 825‐10‐25 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any Indebtedness or other liabilities of the Borrower or any Subsidiary at “fair value”, as defined therein and (ii) without giving effect to any treatment of Indebtedness under Financial Accounting Standards Board Accounting Standards Codification 470‐20 or 2015-03 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and such Indebtedness shall at all times be valued at the full stated principal amount thereof. 

  (b)	Notwithstanding anything to the contrary contained in Section 1.04(a) or in the definition of “Capital Lease Obligations,” any change in accounting for leases pursuant to GAAP resulting from the adoption of Financial Accounting Standards Board Accounting Standards Update No. 2016-02, Leases (Topic 842) (“FAS 842”), to the extent such adoption would require treating any lease (or similar arrangement conveying the right to use) as a capital lease or finance lease where such lease (or similar arrangement) would not have been required to be so treated under GAAP as in effect on December 31, 2015 (whether such leases were in effect on such date or are entered into thereafter), such lease shall not be considered a capital lease, and all calculations and deliverables under this Agreement or any other Loan Document shall be made or delivered, as applicable, in accordance therewith.

  SECTION 1.05  Interest Rates; Benchmark Notifications.  The interest rate on a Loan denominated in Dollars may be derived from an interest rate benchmark that may be discontinued or is, or may in the future become, the subject of regulatory reform.  Upon the occurrence of a Benchmark Transition Event, Section 2.14(b) provides a mechanism for determining an alternative rate of interest.  The Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, the administration, submission, performance or any other matter related to any interest rate used in this Agreement, or with respect to any alternative or successor rate thereto, or replacement rate thereof, including without limitation, whether the composition or characteristics of any such alternative, successor or replacement reference rate will be similar to, or produce the same value or economic equivalence of, the existing interest rate being replaced or have the same volume or liquidity as did any existing interest rate prior to its discontinuance or unavailability.  The Administrative Agent and its affiliates and/or other related entities may engage in transactions that affect the calculation of any interest rate used in this Agreement or any alternative, successor or alternative rate (including any Benchmark Replacement) and/or any relevant adjustments thereto, in each case, in a manner adverse to the Borrower.  The Administrative Agent may select information sources or services in its reasonable discretion to ascertain any interest rate used in this Agreement, any component thereof, or rates referenced in the definition thereof, in each case pursuant to the terms of this Agreement, and shall have no liability to the Borrower, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential 

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  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.

  SECTION 1.06  Pro Forma Adjustments for Acquisitions and Dispositions.  To the extent the Borrower or any Subsidiary makes any acquisition permitted pursuant to Section 6.04 or Disposition outside the ordinary course of business permitted by Section 6.05 during the period of four fiscal quarters of the Borrower most recently ended, the Leverage Ratio shall be calculated after giving pro forma effect thereto (including pro forma adjustments arising out of events which are directly attributable to the acquisition or the Disposition, are factually supportable and are expected to have a continuing impact, in each case as determined on a basis consistent with Article 11 of Regulation S‐X of the Securities Act of 1933, as amended, as interpreted by the SEC, and as certified by a Financial Officer), as if such acquisition or such Disposition (and any related incurrence, repayment or assumption of Indebtedness) had occurred in the first day of such four-quarter period.

  SECTION 1.07  Status of Obligations.  In the event that the Borrower or any other Loan Party shall at any time issue or have outstanding any Subordinated Indebtedness, the Borrower shall take or cause such other Loan Party to take all such actions as shall be necessary to cause the Secured Obligations to constitute senior indebtedness (however denominated) in respect of such Subordinated Indebtedness and to enable the Administrative Agent and the Lenders to have and exercise any payment blockage or other remedies available or potentially available to holders of senior indebtedness under the terms of such Subordinated Indebtedness.  Without limiting the foregoing, the Secured Obligations are hereby designated as “senior indebtedness” and as “designated senior indebtedness” and words of similar import under and in respect of any indenture or other agreement or instrument under which such Subordinated Indebtedness is outstanding and are further given all such other designations as shall be required under the terms of any such Subordinated Indebtedness in order that the Lenders may have and exercise any payment blockage or other remedies available or potentially available to holders of senior indebtedness under the terms of such Subordinated Indebtedness.

  SECTION 1.08  Letters of Credit.  Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the Dollar Equivalent of the stated amount of such Letter of Credit available to be drawn at such time; provided that with respect to any Letter of Credit that, by its terms or the terms of any Letter of Credit Agreement related thereto, provides for one or more automatic increases in the available amount thereof, the amount of such Letter of Credit shall be deemed to be the Dollar Equivalent of the maximum amount of such Letter of Credit after giving effect to all such increases, whether or not such maximum amount is available to be drawn at such time.  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 Article 29(a) of the Uniform Customs and Practice for Documentary Credits, International Chamber of Commerce Publication No. 600 (or such later version thereof as may be in effect at the applicable time) or Rule 3.13 or Rule 3.14 of the International Standby Practices, International Chamber of Commerce Publication No. 590 (or such later version thereof as may be in effect at the applicable time) or similar terms of the Letter of Credit itself, or if compliant documents have been presented but not yet honored, such Letter of Credit shall be deemed to be “outstanding” and “undrawn” in the amount so remaining available to be paid, and the obligations of the Borrower and each Lender shall remain in full force and effect until the Issuing Bank and the Lenders shall have no further obligations to make any payments or disbursements under any circumstances with respect to any Letter of Credit.

  SECTION 1.09  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 

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  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 and acquired on the first date of its existence by the holders of its Equity Interests at such time.

  SECTION 1.10  Rounding.  Any financial ratios required to be maintained by any Loan Party 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).

  SECTION 1.11  Exchange Rates; Currency Equivalents.

  (a)	The Administrative Agent or the Issuing Bank, as applicable, shall determine the Dollar Equivalent amounts of Letter of Credit extensions denominated in Alternative Currencies.  Such Dollar Equivalent shall become effective as of such Revaluation Date and shall be the Dollar Equivalent of such amounts until the next Revaluation Date to occur.  Except for purposes of financial statements delivered by the Borrower hereunder or calculating financial covenants hereunder or except as otherwise provided herein, the applicable amount of any Agreed Currency (other than Dollars) for purposes of the Loan Documents shall be such Dollar Equivalent amount as so determined by the Administrative Agent or the Issuing Bank, as applicable.

  (b)	Wherever in this Agreement in connection with the issuance, amendment or extension of a Letter of Credit, an amount, such as a required minimum or multiple amount, is expressed in Dollars, but such Letter of Credit is denominated in an Alternative Currency, such amount shall be the Dollar Equivalent of such amount (rounded to the nearest unit of such Alternative Currency, with 0.5 of a unit being rounded upward), as determined by the Administrative Agent or the Issuing Bank, as the case may be.

  ARTICLE II.
The Credits

  SECTION 2.01  Commitments.  

  (a)	Subject to the terms and conditions set forth herein, each Lender severally (and not jointly) agrees to make Revolving Loans in Dollars to the Borrower from time to time during the Availability Period in an aggregate principal amount that will not result in (a) such Lender’s Revolving Exposure exceeding such Lender’s Revolving Commitment or (b) the Aggregate Revolving Exposure exceeding the lesser of (i) the aggregate Revolving Commitments and (ii) the Borrowing Base.  Within the foregoing limits and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and reborrow Revolving Loans. 

  (b)	Subject to the terms and conditions set forth herein, each Term A Lender severally (and not jointly) agrees to make a Term A Loan in Dollars to the Borrower, on the First Amendment Effective Date, in a principal amount not to exceed such Lender’s Term A Commitment.  Amounts prepaid or repaid in respect of Term A Loans may not be reborrowed.  

  SECTION 2.02  Loans and Borrowings.  

  (a)	Each Loan shall be made as part of a Borrowing consisting of Loans of the same Class and Type made by the Lenders ratably in accordance with their respective Commitments of the 

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  applicable Class.  The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder; provided that the Commitments of the Lenders are several and no Lender shall be responsible for any other Lender’s failure to make Loans as required. 

  (b)	Subject to Section 2.14, each Borrowing shall be comprised entirely of CBFR Loans, RFR Loans or Term Benchmark Loans as the Borrower may request in accordance herewith, provided that all Borrowings of Term A Loans made on the First Amendment Effective Date must be made as CBFR Borrowings but may be converted into Term Benchmark Borrowings in accordance with Section 2.08.  Each Lender at its option may make any Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan (and in the case of an Affiliate, the provisions of Sections 2.14, 2.15, 2.16, 2.17 and 2.19, and the requirements of Section 9.04(b)(iv) for recordation in the Register, shall apply to such Affiliate to the same extent as to such Lender); provided that any exercise of such option shall not affect the obligation of the Borrower to repay such Loan in accordance with the terms of this Agreement.

  (c)	At the commencement of each Interest Period for any Term Benchmark Borrowing and at the time that each RFR Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $250,000 and not less than $500,000.  CBFR Borrowings may be in any amount.  Borrowings of more than one Type and Class may be outstanding at the same time; provided that there shall not at any time be more than a total of three Term Benchmark Borrowings or RFR Borrowings outstanding.

  (d)	Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Revolving Credit Maturity Date or the Term A Maturity Date, as applicable.

  SECTION 2.03  Requests for Borrowings.  To request a Borrowing, the Borrower shall notify the Administrative Agent of such request either in writing (delivered by hand or fax) by delivering a Borrowing Request signed by a Responsible Officer of the Borrower or through Electronic System, if arrangements for doing so have been approved by the Administrative Agent, (a) in the case of a Term Benchmark Borrowing, not later than 11:00 a.m., Central time, three Business Days before the date of the proposed Borrowing, (b) in the case of an RFR Borrowing, not later than 11:00 a.m., Central time, five Business Days before the date of the proposed Borrowing, or (c) in the case of a CBFR Borrowing, not later than noon, Central time, on the date of the proposed Borrowing; provided that any such notice of a CBFR Revolving Borrowing to finance the reimbursement of an LC Disbursement as contemplated by Section 2.06(e) may be given not later than 9:00 a.m., Central time, on the date of the proposed Borrowing.  Each such Borrowing Request shall be irrevocable.  Each such Borrowing Request shall specify the following information in compliance with Section 2.01:

  (i)	the Class of Borrowing, the aggregate amount of the requested Borrowing and a breakdown of the separate wires comprising such Borrowing;

  (ii)	the date of such Borrowing, which shall be a Business Day;

  (iii)	whether such Borrowing is to be a CBFR Borrowing, a Term Benchmark Borrowing or an RFR Borrowing; and

  (iv)	in the case of a Term Benchmark Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period.”

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  If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be a CBFR Borrowing.  If no Interest Period is specified with respect to any requested Term Benchmark Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.  Promptly following receipt of a Borrowing Request in accordance with this Section, the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing.

  SECTION 2.04  [Section Intentionally Omitted]

  SECTION 2.05  [Section Intentionally Omitted]

  SECTION 2.06  Letters of Credit.  

  (a)	General.  Subject to the terms and conditions set forth herein, the Borrower may request any Issuing Bank to issue Letters of Credit for its own account or for the account of another Loan Party denominated in Agreed Currencies as the applicant thereof for the support of its or its Subsidiaries’ obligations, in a form reasonably acceptable to such Issuing Bank, at any time and from time to time during the Availability Period, and such Issuing Bank may, but shall have no obligation, to issue such requested Letters of Credit pursuant to this Agreement.

  (b)	Notice of Issuance, Amendment, Extension; Certain Conditions.  To request the issuance of a Letter of Credit (or the amendment or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or fax (or transmit through Electronic System, if arrangements for doing so have been approved by the respective Issuing Bank) to an Issuing Bank selected by it and to the Administrative Agent (reasonably in advance of the requested date of issuance, amendment or extension, but in any event no less than three Business Days (or such shorter period as may be agreed by the applicable Issuing Bank in its discretion)) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended or extended, and specifying the date of issuance, amendment or extension (which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount of such Letter of Credit, the Agreed Currency applicable thereto, the name and address of the beneficiary thereof, and such other information as shall be necessary to prepare, amend or extend such Letter of Credit.  In addition, as a condition to any such Letter of Credit issuance, the Borrower shall have entered into a continuing agreement (or other letter of credit agreement) for the issuance of letters of credit and/or shall submit a letter of credit application, in each case, as required by the respective Issuing Bank and using such Issuing Bank’s standard form (each, a “Letter of Credit Agreement”).  In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any Letter of Credit Agreement, the terms and conditions of this Agreement shall control.  A Letter of Credit shall be issued, amended or extended only if (and upon issuance, amendment or extension of each Letter of Credit the Borrower shall be deemed to represent and warrant that), after giving effect to such issuance, amendment or extension (i) the Dollar Equivalent amount of the aggregate LC Exposure shall not exceed $15,000,000, (ii) no Revolving Lender’s Revolving Exposure shall exceed its Revolving Commitment and (iii) the Aggregate Revolving Exposure shall not exceed the lesser of the aggregate Revolving Commitments and the Borrowing Base.  Notwithstanding the foregoing or anything to the contrary contained herein, no Issuing Bank shall be obligated to issue or modify any Letter of Credit if, immediately after giving effect thereto, the outstanding LC Exposure in respect of all Letters of Credit issued by such Person and its Affiliates would exceed such Issuing Bank’s Issuing Bank Sublimit.  Without limiting the foregoing and without affecting the limitations contained herein, it is understood and agreed that the Borrower may from time to time request that an Issuing Bank issue Letters of Credit in excess of its individual Issuing Bank Sublimit in effect at the time of such request, and each Issuing Bank agrees to consider any such request in good faith.  Any Letter of Credit so issued by an Issuing Bank in excess of its individual Issuing Bank Sublimit then in effect shall nonetheless constitute a Letter of Credit 

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  for all purposes of this Agreement, and shall not affect the Issuing Bank Sublimit of any other Issuing Bank, subject to the limitations on the aggregate LC Exposure set forth in clause (i) of this Section 2.06(b).

  An Issuing Bank shall not be under any obligation to issue any Letter of Credit if:

  (i)	any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain such Issuing Bank from issuing such Letter of Credit, or any Requirement of Law relating to such Issuing Bank or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over such Issuing Bank shall prohibit, or request that such Issuing Bank refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon such Issuing Bank with respect to such Letter of Credit any restriction, reserve or capital requirement (for which such Issuing Bank is not otherwise compensated hereunder) not in effect on the Effective Date, or shall impose upon such Issuing Bank any unreimbursed loss, cost or expense which was not applicable on the Effective Date and which such Issuing Bank in good faith deems material to it, or 

  (ii)	the issuance of such Letter of Credit would violate one or more policies of such Issuing Bank applicable to letters of credit generally. 

  (c)	Expiration Date.  Each Letter of Credit shall expire (or be subject to termination or non-renewal by notice from the applicable Issuing Bank to the beneficiary thereof) at or prior to the close of business on the earlier of (i) the date one year after the date of the issuance of such Letter of Credit (or, in the case of any extension of the expiration thereof, including, without limitation, any automatic renewal provision, one year after such extension) or such longer period of time as may be agreed to by the applicable Issuing Bank in its sole discretion (which shall in no event extend beyond the date set forth in clause (ii) hereof) and (ii) the date that is five Business Days prior to the Revolving Credit Maturity Date unless arrangements satisfactory to the applicable Issuing Bank in its sole discretion have been made for such Letter of Credit to remain outstanding after the termination of this Agreement without the benefit of the participations set forth in the below clause (d).

  (d)	Participations.  By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of the applicable Issuing Bank or the Revolving Lenders, such Issuing Bank hereby grants to each Revolving Lender, and each Revolving Lender hereby acquires from such Issuing Bank, a participation in such Letter of Credit equal to such Lender’s Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit.  In consideration and in furtherance of the foregoing, each Revolving Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the respective Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement made by such Issuing Bank and not reimbursed by the Borrower on the date due as provided in paragraph (e) of this Section, or of any reimbursement payment required to be refunded to the Borrower for any reason, including after the Revolving Credit Maturity Date.  Each such payment shall be made without any offset, abatement, withholding or reduction whatsoever.  Each Revolving Lender acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of the Commitments.

  (e)	Reimbursement.  If an Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the Borrower shall reimburse such LC Disbursement by paying to the Administrative Agent an amount in the currency of such LC Disbursement equal to such LC Disbursement not later than 2:00 p.m., Central time, on (i) the Business Day that the Borrower receives notice of such LC Disbursement, 

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  if such notice is received prior to 9:00 a.m., Central time, on the day of receipt, or (ii) the Business Day immediately following the day that the Borrower receives such notice, if such notice is received after 9:00 a.m., Central time, on the day of receipt; provided that (x) if such LC Disbursement is denominated in Dollars, the Borrower may, subject to the conditions to borrowing set forth herein, request in accordance with Section 2.03 that such payment be financed with a CBFR Revolving Borrowing in an equivalent amount, or (y) if such LC Disbursement is denominated in an Alternative Currency, the Borrower may, subject to the conditions to borrowing set forth herein, request in accordance with Section 2.03 that such payment be converted into an equivalent amount of a CBFR Revolving Borrowing denominated in Dollars in an amount equal to the Dollar Equivalent of such Alternative Currency, and, in each case, and, to the extent so financed, the Borrower’s obligation to make such payment shall be discharged and replaced by the resulting CBFR Revolving Borrowing.  If the Borrower fails to make such payment when due, the Administrative Agent shall notify each Revolving Lender of the applicable LC Disbursement, the payment then due from the Borrower in respect thereof, and such Lender’s Applicable Percentage thereof.  Promptly following receipt of such notice, each Revolving Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then due from the Borrower, in the same manner as provided in Section 2.07 with respect to Loans made by such Lender (and Section 2.07 shall apply, mutatis mutandis, to the payment obligations of the Revolving Lenders), and the Administrative Agent shall promptly pay to the respective Issuing Bank the amounts so received by it from the Revolving Lenders.  Promptly following receipt by the Administrative Agent of any payment from the Borrower pursuant to this paragraph, the Administrative Agent shall distribute such payment to the respective Issuing Bank or, to the extent that Revolving Lenders have made payments pursuant to this paragraph to reimburse such Issuing Bank, then to such Lenders and such Issuing Bank, as their interests may appear.  Any payment made by a Revolving Lender pursuant to this paragraph to reimburse an Issuing Bank for any LC Disbursement (other than the funding of CBFR Revolving Loans as contemplated above) shall not constitute a Loan and shall not relieve the Borrower of its obligation to reimburse such LC Disbursement.

  (f)	Obligations Absolute.  The Borrower’s obligation to reimburse LC Disbursements as provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of Credit, any Letter of Credit Agreement or this Agreement, or any term or provision therein or herein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in any respect, (iii) any payment by the respective Issuing Bank under a Letter of Credit against presentation of a draft or other document that does not comply with the terms of such Letter of Credit, (iv) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a legal or equitable discharge of, or provide a right of setoff against, the Borrower’s obligations hereunder, or (v) any adverse change in the relevant exchange rates or in the availability of the relevant Alternative Currency to the Borrower or any Subsidiary or in the relevant currency markets generally.  Neither the Administrative Agent, the Revolving Lenders nor any Issuing Bank, or any of their respective Related Parties, shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit, or any payment or failure to make any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms, any error in translation or any consequence arising from causes beyond the control of the respective Issuing Bank; provided that the foregoing shall not be construed to excuse an Issuing Bank from liability to the Borrower to the extent of any direct damages (as opposed to special, indirect, consequential or punitive damages, claims in respect of which are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower that are caused by such Issuing Bank’s failure to exercise care when determining whether drafts and other documents presented under a Letter of Credit comply with the 

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  terms thereof.  The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of an Issuing Bank (as finally determined by a court of competent jurisdiction), such Issuing Bank shall be deemed to have exercised care in each such determination.  In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, an Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit.

  (g)	Disbursement Procedures.  The Issuing Bank for any Letter of Credit shall, within the time allowed by applicable law or the specific terms of the Letter of Credit following its receipt thereof, examine all documents purporting to represent a demand for payment under such Letter of Credit.  Such Issuing Bank shall promptly after such examination notify the Administrative Agent and the Borrower by telephone (confirmed by fax or through Electronic System) of such demand for payment if such Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse such Issuing Bank and the Revolving Lenders with respect to any such LC Disbursement.

  (h)	Interim Interest.  If the Issuing Bank for any Letter of Credit shall make any LC Disbursement, then, unless the Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest, for each day from and including the date such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC Disbursement, at the rate per annum then applicable to CBFR Revolving Loans and such interest shall be due and payable on the date when such reimbursement is due; provided that, if the Borrower fails to reimburse such LC Disbursement when due pursuant to paragraph (e) of this Section, then Section 2.13(c) shall apply.  Interest accrued pursuant to this paragraph shall be for the account of such Issuing Bank, except that interest accrued on and after the date of payment by any Revolving Lender pursuant to paragraph (e) of this Section to reimburse such Issuing Bank for such LC Disbursement shall be for the account of such Lender to the extent of such payment.

  (i)	Replacement and Resignation of an Issuing Bank.  

  (i)	An Issuing Bank may be replaced at any time by written agreement among the Borrower, the Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank.  The Administrative Agent shall notify the Revolving Lenders of any such replacement of an Issuing Bank.  At the time any such replacement shall become effective, the Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.12(b).  From and after the effective date of any such replacement, (A) the successor Issuing Bank shall have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit to be issued thereafter and (B) references herein to the term “Issuing Bank” shall be deemed to refer to such successor or to any previous Issuing Bank, or to such successor and all previous Issuing Banks, as the context shall require.  After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit then outstanding and issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit or extend or otherwise amend any existing Letter of Credit.

  (ii)	Subject to the appointment and acceptance of a successor Issuing Bank, any Issuing Bank may resign as an Issuing Bank at any time upon thirty days’ prior written notice to 

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  the Administrative Agent, the Borrower and the Lenders, in which case, such resigning Issuing Bank shall be replaced in accordance with Section 2.06(i)(i) above.

  (j)	Cash Collateralization.  If any Event of Default shall occur and be continuing, on the Business Day that the Borrower receives notice from the Administrative Agent or the Required Lenders (or, if the maturity of the Loans has been accelerated, Revolving Lenders with LC Exposure representing greater than 50% of the aggregate LC Exposure) demanding the deposit of cash collateral pursuant to this paragraph, the Borrower shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Revolving Lenders (the “LC Collateral Account”), an amount in cash equal to 105% of the amount of the LC Exposure in the applicable currencies as of such date plus accrued and unpaid interest thereon; provided that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to the Borrower described in clause (h) or (i) of Article VII.  The Borrower also shall deposit cash collateral in accordance with this paragraph as and to the extent required by Sections 2.11(b) or 2.20.  Each such deposit shall be held by the Administrative Agent as collateral for the payment and performance of the Secured Obligations.  In addition, and without limiting the foregoing or paragraph (c) of this Section, if any LC Exposure remains outstanding after the expiration date specified in said paragraph (c), the Borrower shall immediately deposit in the LC Collateral Account an amount in cash equal to 105% of such LC Exposure as of such date plus any accrued and unpaid interest thereon.  The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over the LC Collateral Account and the Borrower hereby grants the Administrative Agent a security interest in the LC Collateral Account and all moneys or other assets on deposit therein or credited thereto.  Other than any interest earned on the investment of such deposits, which investments shall be made at the option and sole discretion of the Administrative Agent and at the Borrower’s risk and expense, such deposits shall not bear interest.  Interest or profits, if any, on such investments shall accumulate in such account.  Moneys in such account shall be applied by the Administrative Agent to reimburse each Issuing Bank for LC Disbursements for which it has not been reimbursed, together with related fees, costs, and customary processing charges, and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated (but subject to the consent of Revolving Lenders with LC Exposure representing greater than 50% of the aggregate LC Exposure), be applied to satisfy other Secured Obligations.  If the Borrower is required to provide an amount of cash collateral hereunder as a result of the occurrence of an Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to the Borrower within three Business Days after all such Events of Default have been cured or waived.

  (k)	Letters of Credit Issued for Account of Subsidiaries.  Notwithstanding that a Letter of Credit issued or outstanding hereunder supports any obligations of, or is for the account of, a Subsidiary, or states that a Subsidiary is the “account party,” “applicant,” “customer,” “instructing party,” or the like of or for such Letter of Credit, and without derogating from any rights of the applicable Issuing Bank (whether arising by contract, at law, in equity or otherwise) against such Subsidiary in respect of such Letter of Credit, the Borrower (i) shall reimburse, indemnify and compensate the applicable Issuing Bank hereunder for such Letter of Credit (including to reimburse any and all drawings thereunder) as if such Letter of Credit had been issued solely for the account of the Borrower and (ii) irrevocably waives any and all defenses that might otherwise be available to it as a guarantor or surety of any or all of the obligations of such Subsidiary in respect of such Letter of Credit.  The Borrower hereby acknowledges that the issuance of such Letters of Credit for its Subsidiaries inures to the benefit of the Borrower, and that the Borrower’s business derives substantial benefits from the businesses of such Subsidiaries.

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  SECTION 2.07  Funding of Borrowings.  

  (a)	Each Lender shall make each Loan to be made by such Lender hereunder on the proposed date thereof solely by wire transfer of immediately available funds by 2:00 p.m., Central time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders in an amount equal to such Lender’s Applicable Percentage; provided that Term Loans shall be made as provided in Section 2.01(b) and 2.02(b).  The Administrative Agent will make such Loans available to the Borrower by promptly crediting the funds so received in the aforesaid account of the Administrative Agent to the Funding Account(s); provided that CBFR Revolving Loans made to finance the reimbursement of an LC Disbursement as provided in Section 2.06(e) shall be remitted by the Administrative Agent to the Issuing Bank.

  (b)	Unless the Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with paragraph (a) of this Section and may, in reliance upon such assumption, make available to the Borrower a corresponding amount.  In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower each severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest thereon (in the case of the Borrower, in lieu of paying any interest to such Lender pursuant to the terms of this Agreement and not in duplication thereof), for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of the Borrower, the interest rate applicable to CBFR Revolving Loans, or in the case of Alternative Currencies, in accordance with such market practice, in each case, as applicable.  If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing; provided, that any interest received from the Borrower by the Administrative Agent during the period beginning when Administrative Agent funded the Borrowing until such Lender pays such amount shall be solely for the account of the Administrative Agent.

  SECTION 2.08  Interest Elections.  

  (a)	Each Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a Term Benchmark Borrowing, shall have an initial Interest Period as specified in such Borrowing Request.  Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such Borrowing and, in the case of a Term Benchmark Borrowing, may elect Interest Periods therefor, all as provided in this Section.  The Borrower may elect different options with respect to different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate Borrowing.  

  (b)	To make an election pursuant to this Section, the Borrower shall notify the Administrative Agent of such election either in writing (delivered by hand or fax) by delivering an Interest Election Request signed by a Responsible Officer of the Borrower or through Electronic System, if arrangements for doing so have been approved by the Administrative Agent, by the time that a Borrowing Request would be required under Section 2.03 if the Borrower were requesting a Borrowing of the Type resulting from such election to be made on the effective date of such election.  Each such Interest Election Request shall be irrevocable.

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  (c)	Each Interest Election Request (including requests submitted through Electronic System) shall specify the following information in compliance with Section 2.02:

  (i)	the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);

  (ii)	the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day;

  (iii)	whether the resulting Borrowing is to be a CBFR Borrowing, a Term Benchmark Borrowing or an RFR Borrowing; and

  (iv)	if the resulting Borrowing is a Term Benchmark Borrowing, the Interest Period to be applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of the term “Interest Period”.

  If any such Interest Election Request requests a Term Benchmark Borrowing but does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.

  (d)	Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise each Lender of the applicable Class of the details thereof and of such Lender’s portion of each resulting Borrowing.

  (e)	If the Borrower fails to deliver a timely Interest Election Request with respect to a Term Benchmark Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be continued as a Term Benchmark Borrowing with the same Interest Period as the Interest Period then ending.  Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower, then, so long as an Event of Default is continuing (i) no outstanding Borrowing may be converted to or continued as a Term Benchmark Borrowing and (ii) unless repaid, each Term Benchmark Borrowing and each RFR Borrowing shall be converted to a CBFR Borrowing at the end of the Interest Period applicable thereto.

  SECTION 2.09  Termination and Reduction of Commitments; Incremental Commitments.  

  (a)	Unless previously terminated, (i) the Term A Commitments shall terminate at 5:00 p.m., Central time, on the First Amendment Effective Date, and (ii) all the Revolving Commitments shall terminate on the Revolving Credit Maturity Date.

  (b)	The Borrower may at any time terminate the Revolving Commitments upon the Payment in Full of the Secured Obligations.

  (c)	The Borrower may from time to time reduce the Revolving Commitments; provided that (i) each reduction of the Revolving Commitments shall be in an amount that is an integral multiple of $500,000 and not less than $1,000,000 and (ii) the Borrower shall not terminate or reduce the Revolving Commitments if, after giving effect to any concurrent prepayment of the Revolving Loans in accordance with Section 2.11, (A) any Lender’s Revolving Exposure would exceed such Lender’s Revolving Commitment or (B) the Aggregate Revolving Exposure would exceed the aggregate Revolving Commitments.

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  (d)	The Borrower shall notify the Administrative Agent of any election to terminate or reduce the Revolving Commitments under paragraph (b) or (c) of this Section at least three Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof.  Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof.  Each notice delivered by the Borrower pursuant to this Section shall be irrevocable; provided that a notice of termination of the Revolving Commitments delivered by the Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.  Any termination or reduction of the Revolving Commitments shall be permanent.  Each reduction of the Commitments shall be made ratably among the Lenders in accordance with their respective Revolving Commitments.

  (e)	The Borrower shall have the right, subject to the terms and conditions set forth herein, to request (x) to add one or more additional tranches of Term Loans or increase any existing tranche of Term Loans (the “Incremental Term Loans”) pursuant to one or more additional Term Loan commitments (each, an “Incremental Term Commitment”) and/or (y) one or more increases in the aggregate amount of the Revolving Commitments (each such increase, an “Incremental Revolving Commitment” and, together with the Incremental Term Commitments, the “Incremental Commitments”), which Incremental Commitments may be from one or more of the Lenders and/or another lending institution (each, an “Incremental Lender”), provided that (i) any such request for an increase shall be in a minimum amount of $5,000,000, (ii) the Borrower may make a maximum of two such requests, (iii) after giving effect thereto, the sum of the total amount of the Incremental Commitments does not exceed $30,000,000, (iv) the Administrative Agent and, with respect to an Incremental Revolving Commitment, the Issuing Bank have approved the identity of any such new Lender, such approvals not to be unreasonably withheld, conditioned or delayed, (v) any such new Lender assumes all of the rights and obligations of a “Lender” hereunder, and (vi) the procedures described in Sections 2.09(f) and 2.09(g) below have been satisfied.  Nothing contained in this Section 2.09 shall constitute, or otherwise be deemed to be, a commitment on the part of any Lender to provide an Incremental Commitment hereunder at any time.

  (f)	Any amendment hereto for an Incremental Commitment shall be in form and substance reasonably satisfactory to the Administrative Agent and shall only require the written signatures of the Administrative Agent, the Borrower and each Incremental Lender.  As a condition precedent to any Incremental Commitment, the Borrower shall deliver to the Administrative Agent (i) a certificate of each Loan Party signed by an authorized officer of such Loan Party (A) certifying and attaching the resolutions adopted by such Loan Party approving or consenting to such increase, and (B) in the case of the Borrower, certifying that, immediately before and immediately after giving effect to such increase or addition, (1) the representations and warranties contained in Article III and the other Loan Documents are true and correct in all material respects (provided that such representations and warranties shall be true in all respects if they are already qualified by a materiality standard), except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects (provided that such representations and warranties shall be true in all respects if they are already qualified by a materiality standard) as of such earlier date, (2) no Default exists and (3) the Borrower is in compliance (on a pro forma basis) with the covenants contained in Section 6.12, and (ii) legal opinions and documents consistent with those delivered on the Effective Date, to the extent reasonably requested by the Administrative Agent.

  (g)	On the effective date of any Incremental Commitment, (i) any Incremental Lender with an Incremental Revolving Commitment shall make available to the Administrative Agent such amounts in immediately available funds as the Administrative Agent shall determine, for the benefit of the other Lenders, as being required in order to cause, after giving effect to such increase or addition and the use of such amounts to make payments to such other Lenders, each Lender’s portion of the outstanding 

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  Revolving Loans of all the Lenders to equal its revised Applicable Percentage of such outstanding Revolving Loans, and the Administrative Agent shall make such other adjustments among the Lenders with respect to the Revolving Loans then outstanding and amounts of principal, interest, commitment fees and other amounts paid or payable with respect thereto as shall be necessary, in the opinion of the Administrative Agent, in order to effect such reallocation and (ii) the Borrower shall be deemed to have repaid and reborrowed all outstanding Revolving Loans as of the effective date of any Incremental Revolving Commitments (with such reborrowing to consist of the Types of Revolving Loans, with related Interest Periods if applicable, specified in a notice delivered by the Borrower, in accordance with the requirements of Section 2.03).  The deemed payments made pursuant to clause (ii) of the immediately preceding sentence shall be accompanied by payment of all accrued interest on the amount prepaid and, in respect of each Term Benchmark Loan, shall be subject to indemnification by the Borrower pursuant to the provisions of Section 2.16 if the deemed payment occurs other than on the last day of the related Interest Periods.  Within a reasonable time after the effective date of any Incremental Commitments, the Administrative Agent shall, and is hereby authorized and directed to, revise the Commitment Schedule to reflect such Incremental Commitments (or the Incremental Term Loans made pursuant thereto, as applicable) and shall distribute such revised Commitment Schedule to each of the Lenders and the Borrower, whereupon such revised Commitment Schedule shall replace the old Commitment Schedule and become part of this Agreement.

  SECTION 2.10  Repayment and Amortization of Loans; Evidence of Debt. 

  (a)	The Borrower hereby unconditionally promises to pay to the Administrative Agent for the account of each Revolving Lender the then unpaid principal amount of each Revolving Loan on the Revolving Credit Maturity Date.

  (b)	The Borrower hereby unconditionally promises to pay to the Administrative Agent for the account of each Term A Lender on each date set forth below the aggregate principal amount set forth opposite such date (as adjusted from time to time pursuant to Section 2.11(d), 2.11(e) or 2.18(b)).

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	Date
	Amount

	September 30, 2022
	$312,500.00

	December 31, 2022
	$312,500.00

	March 31, 2023
	$312,500.00

	June 30, 2023
	$312,500.00

	September 30, 2023
	$312,500.00

	December 31, 2023
	$312,500.00

	March 31, 2024
	$312,500.00

	June 30, 2024
	$312,500.00

	September 30, 2024
	 $468,750.00

	December 31, 2024
	 $468,750.00

	March 31, 2025
	 $468,750.00

	June 30, 2025
	 $468,750.00

	September 30, 2025
	 $468,750.00

	December 31, 2025
	 $468,750.00

	March 31, 2026
	 $468,750.00

	June 30, 2026
	 $468,750.00

	September 30, 2026
	 $625,000.00 

	December 31, 2026
	 $625,000.00 

	March 31, 2027
	 $625,000.00 

	Term A Maturity Date
	The entire unpaid principal amount of all Term A Loans

   

  ; provided if any date set forth above is not a Business Day, then payment shall be due and payable on the Business Day immediately preceding such date.  To the extent not previously paid, all unpaid Term A Loans shall be paid in full in cash by the Borrower on the Term A Maturity Date.

  (c)	Prior to any repayment of any Borrowings of Term Loans of any Class under this Section, the Borrower shall select the Borrowing or Borrowings of the applicable Class to be repaid and shall notify the Administrative Agent by telephone (confirmed by fax or through Electronic System), of such selection not later than 11:00 a.m., Central time, three Business Days before the scheduled date of such repayment.  Each repayment of a Borrowing of Term Loans shall be applied ratably to the Loans included in the repaid Borrowing.  Repayments of Term Loans shall be accompanied by accrued interest on the amounts repaid.

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

  (e)	The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Class and Type thereof and the Interest Period applicable thereto, if any, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.

  (f)	The entries made in the accounts maintained pursuant to paragraph (d) or (e) of this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Loans in accordance with the terms of this Agreement.

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  (g)	Any Lender may request that Loans made by it be evidenced by a promissory note.  In such event, the Borrower shall prepare, execute and deliver to such Lender a promissory note payable to such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a form approved by the Administrative Agent.  Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be represented by one or more promissory notes in such form.

  (h)	If the Administrative Agent notifies the Borrower in writing at any time that the aggregate Dollar Equivalent amount of all LC Exposure at such time exceeds $15,000,000, then, within two Business Days after receipt of such notice, the Borrower shall cash collateralize Letters of Credit in accordance with Section 2.06(j), in an aggregate amount sufficient to reduce such amount as of such date of payment to an amount not to exceed $15,000,000.

  SECTION 2.11  Prepayment of Loans.  

  (a)	The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part, without penalty or premium, subject to prior notice in accordance with paragraph (e) of this Section and, if applicable, payment of any break funding expenses under Section 2.16.

  (b)	In the event and on such occasion that the Aggregate Revolving Exposure exceeds the lesser of (i) the aggregate Revolving Commitments and (ii) the Borrowing Base, the Borrower shall prepay, on demand, the Revolving Loans and/or LC Exposure (or, if no such Borrowings are outstanding, deposit cash collateral in the LC Collateral Account in accordance with Section 2.06(j)) in an aggregate amount equal to such excess.

  (c)	In the event and on each occasion that any Net Proceeds are received by or on behalf of any Loan Party or any Subsidiary in respect of any Prepayment Event, the Borrower shall, within two Business Days after such Net Proceeds are received by any Loan Party or Subsidiary, prepay the Obligations and cash collateralize the LC Exposure as set forth in Section 2.11(e) below in an aggregate amount equal to 100% of such Net Proceeds; provided, in the case of any event described in clause (a) or (b) of the definition of the term “Prepayment Event”, if the Borrower shall deliver to the Administrative Agent a certificate of a Financial Officer to the effect that the Loan Parties intend to apply the Net Proceeds from such event (or a portion thereof specified in such certificate), within 180 days after receipt of such Net Proceeds, to make a Permitted Acquisition or to acquire (or replace or rebuild) real property, equipment or other tangible assets (excluding inventory) to be used in the business of the Loan Parties, and certifying that no Default has occurred and is continuing, then no prepayment shall be required pursuant to this paragraph in respect of the Net Proceeds specified in such certificate, provided that to the extent of any such Net Proceeds that have not been so applied by the end of such 180-day period, a prepayment shall be required at such time in an amount equal to such Net Proceeds that have not been so applied.

  (d)	All prepayments made pursuant to Section 2.11(a) shall be applied as directed by the Borrower.

  (e)	All prepayments required to be made pursuant to Section 2.11(c) shall be applied, first to prepay the Term Loans (and in the event Term Loans of more than one Class shall be outstanding at the time, shall be allocated among the Term Loans pro rata based on the aggregate principal amounts of outstanding Term Loans of each such Class) and shall be applied to reduce the subsequent scheduled repayments of Term Loans of each Class to be made pursuant to Section 2.10 ratably based on the amount of such scheduled repayments, second to prepay the Revolving Loans without a corresponding reduction in the Revolving Commitments, and third to cash collateralize outstanding LC Exposure.

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  (f)	The Borrower shall notify the Administrative Agent by telephone (confirmed by fax) or through Electronic System, if arrangements for doing so have been approved by the Administrative Agent, of any prepayment under this Section:  (i) in the case of prepayment of a Term Benchmark Borrowing, not later than 11:00 a.m., Central time, three Business Days before the date of prepayment, (ii) in the case of prepayment of an RFR Revolving Borrowing, not later than five Business Days before the date of prepayment, or (iii) in the case of prepayment of a CBFR Borrowing, not later than 11:00 a.m., Central time, one Business Day before the date of prepayment.  Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; provided that if a notice of prepayment is given in connection with a conditional notice of termination of the Revolving Commitments as contemplated by Section 2.09, then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.09.  Promptly following receipt of any such notice, the Administrative Agent shall advise the Lenders of the contents thereof.  Each partial prepayment of any Revolving Borrowing or Term Loan shall be in an amount that would be permitted in the case of an advance of a Borrowing of the same Type as provided in Section 2.02, except as necessary to apply fully the required amount of a mandatory prepayment.  Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing.  Prepayments shall be accompanied by (i) accrued interest to the extent required by Section 2.13 and (ii) break funding payments pursuant to Section 2.16.

  SECTION 2.12  Fees.  

  (a)	The Borrower agrees to pay to the Administrative Agent a commitment fee for the account of each Revolving Lender, which shall accrue at the Applicable Rate on the daily amount of the undrawn portion of the Revolving Commitment of such Lender during the period from and including the Effective Date to but excluding the date on which the Lenders’ Revolving Commitments terminate; it being understood that the LC Exposure of a Lender shall be included in the drawn portion of the Revolving Commitment of such Lender for purposes of calculating the commitment fee.  Commitment fees accrued through and including the last day of March, June, September and December of each year shall be payable in arrears on the 15th day following such last day and on the date on which the Revolving Commitments terminate, commencing on the first such date to occur after the date hereof; provided that any commitment fees accruing after the date on which the Revolving Commitments terminate shall be payable on demand.  All commitment fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day and the last day of each period but excluding the date on which the Revolving Commitments terminate).

  (b)	The Borrower agrees to pay (i) to the Administrative Agent for the account of each Revolving Lender a participation fee with respect to its participations in each outstanding Letter of Credit, which shall accrue on Dollar Equivalent of the daily maximum stated amount then available to be drawn under such Letter of Credit at the same Applicable Rate used to determine the interest rate applicable to Term Benchmark Revolving Loans, during the period from and including the Effective Date to but excluding the later of the date on which such Lender’s Revolving Commitment terminates and the date on which such Lender ceases to have any LC Exposure, and (ii) to each Issuing Bank for its own account a fronting fee with respect to each Letter of Credit issued by such Issuing Bank, which shall accrue at the rate of 0.125% per annum on the Dollar Equivalent of the daily maximum stated amount then available to be drawn under such Letter of Credit, during the period from and including the Effective Date to but excluding the later of the date of termination of the Commitments and the date on which there ceases to be any LC Exposure with respect to Letters of Credit issued by such Issuing Bank, as well as such Issuing Bank’s standard fees and commissions with respect to the issuance, amendment or extension of any Letter of Credit and other processing fees, and other standard costs and charges, of such Issuing Bank relating to Letters of Credit as from time to time in effect.  Participation fees and fronting fees accrued through and including the last day of March, June, September and December of each year shall be payable on the 15th day 

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  following such last day, commencing on the first such date to occur after the Effective Date; provided that all such fees shall be payable on the date on which the Revolving Commitments terminate and any such fees accruing after the date on which the Revolving Commitments terminate shall be payable on demand.  Any other fees payable to an Issuing Bank pursuant to this paragraph shall be payable within 10 days after demand.  All participation fees and fronting fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day).

  (c)	The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately agreed upon between the Borrower and the Administrative Agent.

  (d)	All fees payable hereunder shall be paid on the dates due, in Dollars in immediately available funds, to the Administrative Agent (or to an Issuing Bank, in the case of fees payable to it) for distribution, in the case of commitment fees and participation fees, to the Lenders entitled thereto.  Fees paid shall not be refundable under any circumstances.

  SECTION 2.13  Interest.  

  (a)	The Loans comprising each CBFR Borrowing shall bear interest at the CB Floating Rate plus the Applicable Rate. 

  (b)	The Loans comprising each Term Benchmark Borrowing shall bear interest at the Adjusted Term SOFR Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.  Each RFR Loan shall bear interest at a rate per annum equal to the Adjusted Daily Simple SOFR plus the Applicable Rate.

  (c)	Notwithstanding the foregoing, during the occurrence and continuance of an Event of Default, the Administrative Agent or the Required Lenders may, at their option, by notice to the Borrower (which notice may be revoked at the option of the Required Lenders notwithstanding any provision of Section 9.02 requiring the consent of “each Lender affected thereby” for reductions in interest rates), declare that (i) all Loans shall bear interest at 2% plus the rate otherwise applicable to such Loans as provided in the preceding paragraphs of this Section or (ii) in the case of any other amount outstanding hereunder, such amount shall accrue at 2% plus the rate applicable to such fee or other obligation as provided hereunder.

  (d)	Accrued interest on each Loan (for CBFR Loans, accrued through the last day of the prior calendar month) shall be payable in arrears on each Interest Payment Date for such Loan and, in the case of Revolving Loans, upon termination of the Revolving Commitments; provided that (i) interest accrued pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a prepayment of a CBFR Revolving Loan prior to the end of the Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any conversion of any Term Benchmark Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion.

  (e)	Interest computed by reference to the Term SOFR Rate or Daily Simple SOFR hereunder shall be computed on the basis of a year of 360 days.  Interest computed by reference to the CB Floating Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year).  In each case, interest shall be payable for the actual number of days elapsed (including the first day but excluding the last day).  All interest hereunder on any Loan shall be computed on a daily basis based upon the outstanding principal amount of such Loan as of the applicable date of determination.  The applicable CB Floating Rate, Adjusted Daily Simple SOFR, Daily Simple SOFR, Adjusted Term SOFR Rate or Term 

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  SOFR Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error.

  SECTION 2.14  Alternate Rate of Interest; Illegality.  

  (a)	Subject to clauses (b), (c), (d), (e) and (f) of this Section 2.14, if:

  (i)	the Administrative Agent determines (which determination shall be conclusive and binding absent manifest error) (A) prior to commencement of any Interest Period for a Term Benchmark Borrowing, that adequate and reasonable means do not exist for ascertaining the Adjusted Term SOFR Rate or the Term SOFR Rate, as applicable (including, because the Term SOFR Reference Rate is not available or published on a current basis) for such Interest Period or (B) at any time, that adequate and reasonable means do not exist for ascertaining the applicable Adjusted Daily Simple SOFR or Daily Simple SOFR; or

  (ii)	the Administrative Agent is advised by the Required Lenders that (A) prior to the commencement of any Interest Period for a Term Benchmark Borrowing, the Adjusted Term SOFR Rate for such Interest Period will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or Loan) included in such Borrowing for such Interest Period or (B) at any time, the Adjusted Daily Simple SOFR will not adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or Loan) included in such Borrowing;

  then the Administrative Agent shall give notice thereof to the Borrower and the Lenders through Electronic System as provided in Section 9.01 as promptly as practicable thereafter and, until (x) the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist with respect to the relevant Benchmark and (y) the Borrower delivers a new Interest Election Request in accordance with the terms of Section 2.08 or a new Borrowing Request in accordance with the terms of Section 2.03, (1) any Interest Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Term Benchmark Borrowing and any Borrowing Request that requests a Term Benchmark Borrowing shall instead be deemed to be an Interest Election Request or a Borrowing Request, as applicable, for (x) an RFR Borrowing so long as the Adjusted Daily Simple SOFR is not also the subject of Section 2.14(a)(i) or Section 2.14(a)(ii) above or (y) be repaid or converted into a CBFR Borrowing if the Adjusted Daily Simple SOFR also is the subject of Section 2.14(a)(i) or Section 2.14(a)(ii) above, and (2) any Borrowing Request that requests an RFR Borrowing shall instead be deemed to be a Borrowing Request, as applicable, for a CBFR Borrowing; provided that if the circumstances giving rise to such notice affect only one Type of Borrowings, then all other Types of Borrowings shall be permitted.  Furthermore, if any Term Benchmark Loan or RFR Loan is outstanding on the date of the Borrower’s receipt of the notice from the Administrative Agent referred to in this ‎Section 2.14(a) with respect to a Relevant Rate applicable to such Term Benchmark Loan or RFR Loan, then until (x) the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist with respect to the relevant Benchmark and (y) the Borrower delivers a new Interest Election Request in accordance with the terms of Section 2.08 or a new Borrowing Request in accordance with the terms of Section 2.03, (1) any Term Benchmark Loan shall on the last day of the Interest Period applicable to such Loan (or the next succeeding Business Day if such day is not a Business Day), be converted by the Administrative Agent to, and shall constitute, (x) an RFR Borrowing so long as the Adjusted Daily Simple SOFR is not also the subject of Section 2.14(a)(i) or Section 2.14(a)(ii) above or (y) a CBFR Loan if the Adjusted Daily Simple SOFR also is the subject of Section 2.14(a)(i) or Section 2.14(a)(ii) above, on such day, and (2) any RFR Loan shall on and from such day be converted by the Administrative Agent to, and shall constitute a CBFR Loan. 

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  (b)	Notwithstanding anything to the contrary herein or in any other Loan Document (and any Swap Agreement shall be deemed not to be a “Loan Document” for purposes of this Section 2.14), if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then (x) if a Benchmark Replacement is determined in accordance with clause (1) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document and (y) if a Benchmark Replacement is determined in accordance with clause (2) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on the fifth Business Day after the date notice of such Benchmark Replacement is provided to the Lenders without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document so long as the Administrative Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders.

  (c)	Notwithstanding anything to the contrary herein or in any other Loan Document, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.

  (d)	The Administrative Agent will promptly notify the Borrower and the Lenders of (i) any occurrence of a Benchmark Transition Event, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes, (iv) the removal or reinstatement of any tenor of a Benchmark pursuant to clause (e) below, and (v) the commencement or conclusion of any Benchmark Unavailability Period.  Any determination, decision or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this Section 2.14, 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 2.14.

  (e)	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), (i) if the then-current Benchmark is a term rate (including the Term SOFR Rate) and either (A) 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 Administrative Agent in its reasonable discretion or (B) 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 or will be no longer representative, then the Administrative Agent may modify the definition of “Interest Period” for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is or will no longer be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition of “Interest Period” for all Benchmark settings at or after such time to reinstate such previously removed tenor. 

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  (f)	Upon the Borrower’s receipt of written notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any request for a Term Benchmark Borrowing or RFR Borrowing or conversion to or continuation of Term Benchmark Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted (i) any request for a Term Benchmark Borrowing into a request for a Borrowing of or conversion to (A) an RFR Borrowing so long as the Adjusted Daily Simple SOFR is not the subject of a Benchmark Transition Event or (B) a CBFR Borrowing if the Adjusted Daily Simple SOFR is the subject of a Benchmark Transition Event or (ii) any such request for an RFR Borrowing into a request for a CBFR Borrowing.  Furthermore, if any Term Benchmark Loan or RFR Loan is outstanding on the date of the Borrower’s receipt of written notice of the commencement of a Benchmark Unavailability Period with respect to a Relevant Rate applicable to such Term Benchmark Loan or RFR Loan, then until such time as a Benchmark Replacement is implemented pursuant to this ‎Section 2.14, (1) any Term Benchmark Loan shall on the last day of the Interest Period applicable to such Loan (or the next succeeding Business Day if such day is not a Business Day), be converted by the Administrative Agent to, and shall constitute, (x) an RFR Loan so long as the Adjusted Daily Simple SOFR is not the subject of a Benchmark Transition Event or (y) a CBFR Loan if the Adjusted Daily Simple SOFR is the subject of a Benchmark Transition Event, on such day, and (2) any RFR Loan shall on and from such day be converted by the Administrative Agent to, and shall constitute, a CBFR Loan.

  SECTION 2.15  Increased Costs.  

  (a)	If any Change in Law shall:

  (i)	impose, modify or deem applicable any reserve, special deposit, liquidity or similar requirement (including any compulsory loan requirement, insurance charge or other assessment) against assets of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted Term SOFR Rate) or the Issuing Bank; or

  (ii)	impose on any Lender or the Issuing Bank or the applicable offshore interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or Loans made by such Lender or any Letter of Credit or participation therein; or

  (iii)	subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto;

  and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, continuing, converting into or maintaining any Loan (or of maintaining its obligation to make any such Loan) or to increase the cost to such Lender, the Issuing Bank or such other Recipient of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender, the Issuing Bank or such other Recipient hereunder (whether of principal, interest or otherwise), then the Borrower will pay to such Lender, the Issuing Bank or such other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender, the Issuing Bank or such other Recipient, as the case may be, for such additional costs incurred or reduction suffered.

  (b)	If any Lender or the Issuing Bank determines that any Change in Law regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s or the Issuing Bank’s capital or on the capital of such Lender’s or the Issuing Bank’s holding company, if any, as a consequence of this Agreement, the Commitments of or the Loans made by, or participations in 

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  Letters of Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that which such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or the Issuing Bank’s policies and the policies of such Lender’s or the Issuing Bank’s holding company with respect to capital adequacy and liquidity), then from time to time the Borrower will pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company for any such reduction suffered.

  (c)	A certificate of a Lender or the Issuing Bank setting forth the amount or amounts necessary to compensate such Lender or the Issuing Bank or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section shall be delivered to the Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender or the Issuing Bank, as the case may be, the amount shown as due on any such certificate within ten days after receipt thereof.

  (d)	Failure or delay on the part of any Lender or the Issuing Bank to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing Bank’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender or the Issuing Bank pursuant to this Section for any increased costs or reductions incurred more than 270 days prior to the date that such Lender or the Issuing Bank, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or the Issuing Bank’s intention to claim compensation therefor; provided, further, that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the 270-day period referred to above shall be extended to include the period of retroactive effect thereof.

  SECTION 2.16  Break Funding Payments.  

  (a)	With respect to Loans that are not RFR Loans, in the event of (i) the payment of any principal of any Term Benchmark Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default or as a result of any prepayment pursuant to Section 2.11), (ii) the conversion of any Term Benchmark Loan other than on the last day of the Interest Period applicable thereto, (iii) the failure to borrow, convert, continue or prepay any Term Benchmark Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked under Section 2.09(d) and is revoked in accordance therewith), or (iv) the assignment of any Term Benchmark Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.19 or 9.02(d), then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event.  A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount shown as due on any such certificate within ten days after receipt thereof.

  (b)	With respect to RFR Loans, in the event of (i) the payment of any principal of any RFR Loan other than on the Interest Payment Date applicable thereto (including as a result of an Event of Default or an optional or mandatory prepayment of Loans), (ii) the failure to borrow or prepay any RFR Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked under ‎Section 2.11 and is revoked in accordance therewith) or (iii) the assignment of any RFR Loan other than on the Interest Payment Date applicable thereto as a result of a request by the Borrower pursuant to Section 2.19, then, in any such event, the Borrower shall compensate each Lender for the loss, cost and expense attributable to such event.  A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount shown as due on any such certificate within ten days after receipt thereof.

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  SECTION 2.17  Withholding of Taxes; Gross-Up.  

  (a)	Payments Free of Taxes.  Any and all payments by or on account of any obligation of any Loan Party under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable law.  If any applicable law (as determined in the good faith discretion of an applicable withholding agent) requires the deduction or withholding of any Tax from any such payment by a withholding agent, then the applicable withholding agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the applicable Loan Party shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section 2.17), the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.

  (b)	Payment of Other Taxes by the Loan Parties.  The Loan Parties shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for, Other Taxes.

  (c)	Evidence of Payment.  As soon as practicable after any payment of Taxes by any Loan Party to a Governmental Authority pursuant to this Section 2.17, such Loan Party shall deliver to the Administrative 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 Administrative Agent.

  (d)	Indemnification by the Loan Parties.  The Loan Parties shall jointly and severally indemnify each Recipient, within 10 days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority; provided that no indemnification payment shall be due under this Section 2.17(d) to the extent such payment is duplicative of any payment made by any Loan Party under any other provision of this Agreement (including Section 2.17(a) or (b)) or under any other Loan Document.  A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender together with supporting documentation with respect to the amount of such payment or liability, shall be conclusive absent manifest error.

  (e)	Indemnification by the Lenders.  Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that any Loan Party has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Loan Parties to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 9.04(c) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative Agent to setoff and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the 

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  Administrative Agent to such Lender from any other source against any amount due to the Administrative Agent under this paragraph (e).

  (f)	Status of Lenders.

  (i)	Any Lender (which, solely for purposes of this Section 2.17(f), shall include the Administrative Agent) that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.  Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 2.17(f)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

  (ii)	Without limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person,

  (A)	any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), an executed copy of IRS Form W‐9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

  (B)	any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:

  (1)	in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the U.S. is a party (x) with respect to payments of interest under any Loan Document, an executed copy of IRS Form W-8BEN or IRS Form W‐8BEN‐E, as applicable, establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, an executed copy of IRS Form W‐8BEN or IRS Form W‐8BEN‐E, as applicable, establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;

  (2)	in the case of a Foreign Lender claiming that its extension of credit will generate U.S. effectively connected income, an executed copy of IRS Form W‐8ECI;

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  (3)	in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit C‐1 to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) an executed copy of IRS Form W-8BEN or IRS Form W‐8BEN‐E, as applicable; or

  (4)	to the extent a Foreign Lender is not the beneficial owner, an executed copy of IRS Form W‐8IMY, accompanied by IRS Form W‐8ECI, IRS Form W‐8BEN or IRS Form W‐8BEN‐E, as applicable, a U.S. Tax Compliance Certificate substantially in the form of Exhibit C‐2 or Exhibit C‐3, IRS Form W‐9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit C‐4 on behalf of each such direct and indirect partner;

  (C)	any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

  (D)	if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

  Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

  (g)	Treatment of Certain Refunds.  If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.17 (including by the payment of additional amounts pursuant to this Section 2.17), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity 

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  payments made under this Section 2.17 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund).  Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (g) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this paragraph (g), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (g) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts giving rise to such refund had never been paid.  This paragraph (g) shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

  (h)	Survival.  Each party’s obligations under this Section 2.17 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document (including the Payment in Full of the Secured Obligations).

  (i)	Defined Terms.  For purposes of this Section 2.17, the term “applicable law” includes FATCA and the term “Lender” includes any Issuing Bank.

  Notwithstanding anything to the contrary in this Agreement, the Loan Parties shall not be required to pay additional amounts pursuant to Section 2.15 or this Section 2.17, or otherwise indemnify any Person pursuant to this Agreement, for any Taxes or Other Taxes with respect to a Swap Agreement, Swap Agreement Obligations, Banking Services, or Banking Services Obligations.

  SECTION 2.18  Payments Generally; Allocation of Proceeds; Sharing of Setoffs.  

  (a)	The Borrower shall make each payment or prepayment required to be made by it hereunder (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Sections 2.15, 2.16 or 2.17, or otherwise) prior to 3:00 p.m., Central time, on the date when due or the date fixed for any prepayment hereunder, in immediately available funds, without setoff, recoupment or counterclaim.  Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon.  All such payments shall be made to the Administrative Agent at its offices at Middle Market Servicing, 10 South Dearborn, Floor L2, Suite IL1-0480, Chicago, IL, 60603-2300, except payments to be made directly to the Issuing Bank as expressly provided herein and except that payments pursuant to Sections 2.15, 2.16, 2.17 and 9.03 shall be made directly to the Persons entitled thereto.  The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof.  Unless otherwise provided for herein, if any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension.  All payments hereunder shall be made in Dollars.

  (b)	All payments and any proceeds of Collateral received by the Administrative Agent (i) not constituting either (A) a specific payment of principal, interest, fees or other sum payable under the Loan Documents (which shall be applied as specified by the Borrower), or (B) a mandatory prepayment (which shall be applied in accordance with Section 2.11) or (ii) after an Event of Default has occurred and 

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  is continuing and the Administrative Agent so elects or the Required Lenders so direct, shall be applied ratably first, to pay any fees, indemnities, or expense reimbursements then due to the Administrative Agent and the Issuing Bank from the Borrower (other than in connection with Banking Services Obligations or Swap Agreement Obligations), second, to pay any fees, indemnities, or expense reimbursements then due to the Lenders from the Borrower (other than in connection with Banking Services Obligations or Swap Agreement Obligations), third, to pay interest then due and payable on the Loans ratably, fourth, to prepay principal on the Loans and unreimbursed LC Disbursements, to pay an amount to the Administrative Agent equal to 105% of the aggregate LC Exposure, to be held as cash collateral for such Obligations, and to pay any amounts owing in respect of Swap Agreement Obligations and Banking Services Obligations up to and including the amount most recently provided to the Administrative Agent pursuant to Section 2.22, ratably (with amounts allocated to the Term Loans of any Class applied to reduce the subsequent scheduled repayments of the Term Loans of such Class to be made pursuant to Section 2.10 ratably based on the amount of such scheduled repayments), fifth, to the payment of any other Secured Obligation due to the Administrative Agent or any Lender from the Borrower or any other Loan Party and sixth, to the Borrower.  Notwithstanding anything to the contrary contained in this Agreement, unless so directed by the Borrower, or unless an Event of Default is in existence, neither the Administrative Agent nor any Lender shall apply any payment which it receives to any Term Benchmark Loan of a Class, except (i) on the expiration date of the Interest Period applicable thereto, or (ii) in the event, and only to the extent, that there are no outstanding CBFR Loans of the same Class and, in any such event, the Borrower shall pay the break funding payment required in accordance with Section 2.16.  The Administrative Agent and the Lenders shall have the continuing and exclusive right to apply and reverse and reapply any and all such proceeds and payments to any portion of the Secured Obligations in the order set forth above in this clause (b).  Notwithstanding the foregoing, Secured Obligations arising under Banking Services Obligations or Swap Agreement Obligations shall be excluded from the application described above and paid in clause fifth if the Administrative Agent has not received written notice thereof, together with such supporting documentation as the Administrative Agent may have reasonably requested from the applicable provider of such Banking Services or Swap Agreements.

  (c)	At the election of the Administrative Agent, all payments of principal, interest, LC Disbursements, fees, premiums, reimbursable expenses (including, without limitation, all reimbursement for fees, costs and expenses pursuant to Section 9.03), and other sums payable under the Loan Documents, may be paid from the proceeds of Borrowings made hereunder, whether made following a request by the Borrower pursuant to Section 2.03 or a deemed request as provided in this Section or may be deducted from any deposit account of the Borrower (other than any Excluded Account pursuant to clauses (a), (b) or (c) of the definition thereof) maintained with the Administrative Agent.  The Borrower hereby irrevocably authorizes (i) the Administrative Agent to make a Borrowing for the purpose of paying each payment of principal, interest and fees as it becomes due hereunder or any other amount due under the Loan Documents and agrees that all such amounts charged shall constitute Loans and that all such Borrowings shall be deemed to have been requested pursuant to Section 2.03, and (ii) the Administrative Agent to charge any deposit account of the Borrower (other than any Excluded Account pursuant to clauses (a), (b) or (c) of the definition thereof) maintained with the Administrative Agent for each payment of principal, interest and fees as it becomes due hereunder or any other amount due under the Loan Documents.

  (d)	If, except as otherwise expressly provided herein, any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or participations in LC Disbursements resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and participations in LC Disbursements and accrued interest thereon than the proportion received by any other similarly situated Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans and participations in LC Disbursements of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by all such Lenders ratably in accordance with the aggregate amount of principal 

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  of and accrued interest on their respective Loans and participations in LC Disbursements; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in LC Disbursements to any assignee or participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply).  The Borrower 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 the Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

  (e)	Unless the Administrative Agent shall have received, prior to any date on which any payment is due to the Administrative Agent for the account of the Lenders or the Issuing Bank pursuant to the terms hereof or any other Loan Document (including any date that is fixed for prepayment by notice from the Borrower to the Administrative Agent pursuant to Section 2.11(f)), notice from the Borrower that the Borrower will not make such payment or prepayment, the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be, the amount due.  In such event, if the Borrower has not in fact made such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the NYFRB Rate.

  (f)	The Administrative Agent may from time to time provide the Borrower with account statements or invoices with respect to any of the Secured Obligations (the “Statements”).  The Administrative Agent is under no duty or obligation to provide Statements, which, if provided, will be solely for the Borrower’s convenience.  Statements may contain estimates of the amounts owed during the relevant billing period, whether of principal, interest, fees or other Secured Obligations.  If the Borrower pays the full amount indicated on a Statement on or before the due date indicated on such Statement, the Borrower shall not be in default of payment with respect to the billing period indicated on such Statement; provided that acceptance by the Administrative Agent, on behalf of the Lenders, of any payment that is less than the total amount actually due at that time (including but not limited to any past due amounts) shall not constitute a waiver of the Administrative Agent’s or the Lenders’ right to receive payment in full at another time.

  SECTION 2.19  Mitigation Obligations; Replacement of Lenders.  

  (a)	If any Lender requests compensation under Section 2.15, or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, 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 Sections 2.15 or 2.17, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

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  (b)	If any Lender requests compensation under Section 2.15, or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, or if any Lender becomes a Defaulting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 9.04), all its interests, rights (other than its existing rights to payments pursuant to Sections 2.15 or 2.17) and obligations under this Agreement and other Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that (i) the Borrower shall have received the prior written consent of the Administrative Agent to the extent required under Section 9.04 (and in circumstances where its consent would be required under Section 9.04, the Issuing Bank), which consent shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and funded participations in LC Disbursements, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under Section 2.15 or payments required to be made pursuant to Section 2.17, such assignment will result in a reduction in such compensation or payments.  A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.  Each party hereto agrees that (A) an assignment required pursuant to this paragraph may be effected pursuant to an Assignment and Assumption executed by the Borrower, the Administrative Agent and the assignee (or, to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and such parties are participants), and (B) the Lender required to make such assignment need not be a party thereto in order for such assignment to be effective and shall be deemed to have consented to and be bound by the terms thereof; provided that, following the effectiveness of any such assignment, the other parties to such assignment agree to execute and deliver such documents necessary to evidence such assignment as reasonably requested by the applicable Lender, provided that any such documents shall be without recourse to or warranty by the parties thereto.

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

  (a)	fees shall cease to accrue on the unfunded portion of the Revolving Commitment of such Defaulting Lender pursuant to Section 2.12(a);

  (b)	any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Section 2.18(b) or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 9.08 shall be applied at such time or times as may be determined by the Administrative Agent as follows:  first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to any Issuing Bank hereunder; third, to cash collateralize LC Exposure with respect to such Defaulting Lender in accordance with this Section; fourth, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; fifth, if so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to (x) satisfy such Defaulting Lender’s potential future funding obligations with respect to Loans under this Agreement and (y) cash collateralize future LC Exposure with respect to such Defaulting Lender with respect to future Letters of Credit issued under this 

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  Agreement, in accordance with this Section; sixth, to the payment of any amounts owing to the Lenders or the Issuing Banks as a result of any judgment of a court of competent jurisdiction obtained by any Lender or the Issuing Banks against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement or under any other Loan Document; seventh, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement or under any other Loan Document; and eighth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Loans or LC Disbursements in respect of which such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made or the related Letters of Credit were issued at a time when the conditions set forth in Section 4.02 were satisfied or waived, such payment shall be applied solely to pay the Loans of, and LC Disbursements owed to, all non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or LC Disbursements owed to, such Defaulting Lender until such time as all Loans and funded and unfunded participations in the Borrower’s obligations corresponding to such Defaulting Lender’s LC Exposure are held by the Lenders pro rata in accordance with the Commitments without giving effect to clause (d) below.  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post cash collateral pursuant to this Section shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto;

  (c)	such Defaulting Lender shall not have the right to vote on any issue on which voting is required (other than to the extent expressly provided in Section 9.02(b)) and the Commitment, Revolving Exposure and Term Loans of such Defaulting Lender shall not be included in determining whether the Required Lenders have taken or may take any action hereunder or under any other Loan Document; provided that, except as otherwise provided in Section 9.02, this clause (c) shall not apply to the vote of a Defaulting Lender in the case of an amendment, waiver or other modification requiring the consent of such Lender or each Lender directly affected thereby;

  (d)	if any LC Exposure exists at the time such Lender becomes a Defaulting Lender then:

  (i)	all or any part of the LC Exposure of such Defaulting Lender shall be reallocated among the non-Defaulting Lenders in accordance with their respective Applicable Percentages but only to the extent that such reallocation does not, as to any non-Defaulting Lender, cause such non-Defaulting Lender’s Revolving Exposure to exceed its Revolving Commitment;

  (ii)	if the reallocation described in clause (i) above cannot, or can only partially, be effected, the Borrower shall within one Business Day following notice by the Administrative Agent cash collateralize, for the benefit of the Issuing Bank, the Borrower’s obligations corresponding to such Defaulting Lender’s LC Exposure (after giving effect to any partial reallocation pursuant to clause (i) above) in accordance with the procedures set forth in Section 2.06(j) for so long as such LC Exposure is outstanding;

  (iii)	if the Borrower cash collateralizes any portion of such Defaulting Lender’s LC Exposure pursuant to clause (ii) above, the Borrower shall not be required to pay any fees to such Defaulting Lender pursuant to Section 2.12(b) with respect to such Defaulting Lender’s LC Exposure during the period such Defaulting Lender’s LC Exposure is cash collateralized;

  (iv)	if the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to clause (i) above, then the fees payable to the Lenders pursuant to Sections 2.12(a) and 2.12(b) shall be adjusted in accordance with such non-Defaulting Lenders’ Applicable Percentages; and

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  (v)	if all or any portion of such Defaulting Lender’s LC Exposure is neither reallocated nor cash collateralized pursuant to clause (i) or (ii) above, then, without prejudice to any rights or remedies of the Issuing Bank or any other Lender hereunder, all letter of credit fees payable under Section 2.12(b) with respect to such Defaulting Lender’s LC Exposure shall be payable to the Issuing Bank until and to the extent that such LC Exposure is reallocated and/or cash collateralized; and

  (e)	so long as such Lender is a Defaulting Lender, the Issuing Bank shall not be required to issue, amend, renew, extend or increase any Letter of Credit, unless it is satisfied that the related exposure and such Defaulting Lender’s then outstanding LC Exposure will be 100% covered by the Commitments of the non-Defaulting Lenders and/or cash collateral will be provided by the Borrower in accordance with Section 2.20(d), and LC Exposure related to any newly issued or increased Letter of Credit shall be allocated among non-Defaulting Lenders in a manner consistent with Section 2.20(d)(i) (and such Defaulting Lender shall not participate therein).

  If (i) a Bankruptcy Event or a Bail-In Action with respect to a Lender Parent shall occur following the date hereof and for so long as such event shall continue or (ii) the Issuing Bank has a good faith belief that any Lender has defaulted in fulfilling its obligations under one or more other agreements in which such Lender commits to extend credit, the Issuing Bank shall not be required to issue, amend or increase any Letter of Credit, unless the Issuing Bank shall have entered into arrangements with the Borrower or such Lender, satisfactory to the Issuing Bank to defease any risk to it in respect of such Lender hereunder.

  In the event that each of the Administrative Agent, the Borrower and the Issuing Bank agrees in writing that a Defaulting Lender has adequately remedied all matters that caused such Lender to be a Defaulting Lender, then LC Exposure of the Lenders shall be readjusted to reflect the inclusion of such Lender’s Revolving Commitment and on the date of such readjustment such Lender shall purchase at par such of the Loans of the other Lenders as the Administrative Agent shall determine may be necessary in order for such Lender to hold such Loans in accordance with its Applicable Percentage, but no fees that ceased to accrue, or that the Borrower was not required to pay, to such Lender during the time such Lender was a Defaulting Lender in accordance with this Section 2.20 shall be required to be paid to such Lender after it ceases to be a Defaulting Lender.

  SECTION 2.21  Returned Payments.  If, after receipt of any payment which is applied to the payment of all or any part of the Obligations (including a payment effected through exercise of a right of setoff), the Administrative Agent or any Lender is for any reason compelled to surrender such payment or proceeds to any Person because such payment or application of proceeds is invalidated, declared fraudulent, set aside, determined to be void or voidable as a preference, impermissible setoff, or a diversion of trust funds, or for any other reason (including pursuant to any settlement entered into by the Administrative Agent or such Lender in its discretion), then the Obligations or part thereof intended to be satisfied shall be revived and continued and this Agreement shall continue in full force as if such payment or proceeds had not been received by the Administrative Agent or such Lender.  The provisions of this Section 2.21 shall be and remain effective notwithstanding any contrary action which may have been taken by the Administrative Agent or any Lender in reliance upon such payment or application of proceeds.  The provisions of this Section 2.21 shall survive the termination of this Agreement.

  SECTION 2.22  Banking Services and Swap Agreements.  Each Lender or Affiliate thereof providing Banking Services for, or having Swap Agreements with, any Loan Party or any Subsidiary or Affiliate of a Loan Party shall deliver to the Administrative Agent, promptly after entering into such Banking Services or Swap Agreements, written notice setting forth the aggregate amount of all Banking Services Obligations and Swap Agreement Obligations of such Loan Party or Subsidiary or Affiliate thereof to such Lender or Affiliate (whether matured or unmatured, absolute or contingent).  In furtherance of that requirement, each such Lender or Affiliate thereof shall furnish the Administrative Agent, from time to 

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  time after a significant change therein or upon the Administrative Agent’s request therefor, a summary of the amounts due or to become due in respect of such Banking Services Obligations and Swap Agreement Obligations.  The most recent information provided to the Administrative Agent shall be used in determining which tier of the waterfall, contained in Section 2.18(b), such Banking Services Obligations and/or Swap Agreement Obligations will be placed.  For the avoidance of doubt, so long as Chase or its Affiliate is the Administrative Agent, neither Chase nor any of its Affiliates providing Banking Services for, or having Swap Agreements with, any Loan Party or any Subsidiary or Affiliate of a Loan Party shall be required to provide any notice described in this Section 2.22 in respect of such Banking Services or Swap Agreements.

  ARTICLE III.
Representations and Warranties

  Each Loan Party represents and warrants to the Lenders that (and where applicable, agrees):

  SECTION 3.01  Organization; Powers.  Each Loan Party is duly organized or formed, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority to carry on its business as now conducted and, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required.

  SECTION 3.02  Authorization; Enforceability.  The Transactions are within each Loan Party’s corporate or other organizational powers and have been duly authorized by all necessary corporate or other organizational actions and, if required, actions by equity holders.  Each Loan Document to which each Loan Party is a party has been duly executed and delivered by such Loan Party and constitutes a legal, valid and binding obligation of such Loan Party, enforceable 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.

  SECTION 3.03  Governmental Approvals; No Conflicts.  The Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect and except for filings necessary to perfect Liens created pursuant to the Loan Documents and routine Tax filings, (b) will not violate any Requirement of Law applicable to any Loan Party or any Subsidiary, (c) will not violate or result in a default under any material indenture, agreement or other instrument binding upon any Loan Party or any Subsidiary or the assets of any Loan Party or any Subsidiary, or give rise to a right thereunder to require any payment to be made by any Loan Party or any Subsidiary, and (d) will not result in the creation or imposition of, or other requirement to create, any Lien on any asset of any Loan Party or any Subsidiary, except Liens created pursuant to the Loan Documents.

  SECTION 3.04  Financial Condition; No Material Adverse Change.  

  (a)	The Borrower has heretofore furnished to the Lenders its consolidated balance sheet and statements of income, stockholders equity and cash flows (i) as of and for the fiscal year ended December 31, 2020, reported on by Grant Thornton LLP, independent public accountants, and (ii) as of and for the fiscal quarter and the portion of the fiscal year ended September 30, 2021, certified by a Financial Officer.  Such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of the Borrower and its consolidated Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to normal year-end audit adjustments all of which, when taken as a whole, would not be materially adverse and the absence of footnotes in the case of the statements referred to in clause (ii) above.

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  (b)	No event, change or condition has occurred that has had, or could reasonably be expected to have, a Material Adverse Effect, since December 31, 2020.

  SECTION 3.05  Properties.  

  (a)	As of the date of this Agreement, Schedule 3.05 sets forth the address of each parcel of real property that is owned or leased by any Loan Party.  Each of such leases and subleases is valid and enforceable in accordance with its terms and is in full force and effect, and, to the knowledge of the applicable Loan Party, no default by any party to any such lease or sublease exists that could reasonably be expected to result in termination thereof by a Person that is not a Loan Party or any of its Subsidiaries.  Each of the Loan Parties and each Subsidiary has good and indefeasible title to, or valid leasehold interests in, all of its material real and personal property, (i) free of all Liens other than those permitted by Section 6.02 and (ii) except for minor irregularities or deficiencies in title that, individually or in the aggregate, do not materially interfere with any Loan Party’s ability to conduct its business as currently conducted or to utilize such property for its intended purpose.

  (b)	Each Loan Party owns, or is licensed to use, all material trademarks, tradenames, copyrights, patents and other intellectual property necessary to its business as currently conducted, a correct and complete list of which, as of the First Amendment Effective Date, is set forth on Schedule 3.05, and the use thereof by each Loan Party does not infringe in any material respect upon the rights of any other Person, and each Loan Party’s rights thereto are not subject to any licensing agreement or similar arrangement.

  SECTION 3.06  Litigation and Environmental Matters.  

  (a)	There are no actions, suits or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of any Loan Party, threatened against or affecting any Loan Party or any Subsidiary (i) as to which there is a reasonable possibility of an adverse determination and that, if adversely determined, could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect (other than the Disclosed Matters set forth on Schedule 3.06) or (ii) that involve any Loan Document or the Transactions.

  (b)	Except for the Disclosed Matters, (i) no Loan Party or any Subsidiary has received notice of any claim with respect to any Environmental Liability or knows of any basis for any Environmental Liability that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect, and (ii) except with respect to any other matters that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, no Loan Party or any Subsidiary (A) 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, (B) has become subject to any Environmental Liability, (C) has received notice of any claim with respect to any Environmental Liability or (D) knows of any basis for any Environmental Liability.

  (c)	Since the date of this Agreement, there has been no change in the status of the Disclosed Matters that, individually or in the aggregate, has resulted in, or materially increased the likelihood of, a Material Adverse Effect.

  SECTION 3.07  Compliance with Laws and Agreements; No Default.  Except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect, each Loan Party and each Subsidiary is in compliance with (i) all Requirements of Law applicable to it or its property and (ii) all indentures, agreements and other instruments binding upon it or its property.  No Default has occurred and is continuing.

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  SECTION 3.08  Investment Company Status.  No Loan Party or any Subsidiary is an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940.

  SECTION 3.09  Taxes.  Each Loan Party and each Subsidiary has timely filed or caused to be filed all material Tax returns and reports required to have been filed by it and has paid or caused to be paid all material Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate proceedings and for which such Loan Party or such Subsidiary, as applicable, has set aside on its books adequate reserves or (b) to the extent that the failure to do so could not reasonably be expected to result in a Material Adverse Effect.  No Tax liens (other than Permitted Encumbrances) have been filed and, to the knowledge of the Loan Parties, no claims are being asserted with respect to any such Taxes.

  SECTION 3.10  ERISA.  No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect.  The present value of all accumulated benefit obligations under each Plan (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87 or subsequent recodification thereof, as applicable) did not, as of the date of the most recent financial statements reflecting such amounts, exceed the fair market value of the assets of such Plan.

  SECTION 3.11  Disclosure.  

  (a)	The Loan Parties have disclosed to the Lenders all agreements, instruments and corporate or other restrictions to which any Loan Party or any Subsidiary is subject, and all other matters known to them that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.  None of the reports, financial statements, certificates or other information furnished by or on behalf of any Loan Party or any Subsidiary to the Administrative Agent or any Lender in connection with the negotiation of this Agreement or any other Loan Document (as modified or supplemented by other information so furnished), when taken as a whole with all such information, 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 and other forward looking information, the Loan Parties represent only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time delivered and, if such projected financial information was delivered prior to the Effective Date, as of the Effective Date.

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

  SECTION 3.12  Material Agreements.  No Loan Party or any Subsidiary is in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in (i) any agreement to which it is a party or (ii) any agreement or instrument evidencing or governing Indebtedness, in each case, that could reasonably be expected to result in a Material Adverse Effect.

  SECTION 3.13  Solvency.  

  (a)	Immediately after the consummation of the Transactions to occur on the Effective Date, (i) the fair value of the assets of each Loan Party, at a fair valuation, will exceed its debts and liabilities, subordinated, contingent or otherwise; (ii) the present fair saleable value of the property of each Loan Party will be greater than the amount that will be required to pay the probable liability of its debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute 

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  and matured; (iii) each Loan Party will be able to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (iv) no Loan Party will have unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted after the Effective Date. The amount of contingent liabilities at any time shall be computed as the amount that, in light of all facts and circumstances existing at such time, represents the amount that would reasonably be expected to become an actual or matured liability.

  (b)	No Loan Party intends to, nor will permit any Subsidiary to, and no Loan Party believes that it or any Subsidiary will, incur debts beyond its ability to pay such debts as they mature, taking into account the primary obligor with respect to any Guarantee, the timing of and amounts of cash to be received by it or any such Subsidiary and the timing of the amounts of cash to be payable on or in respect of its Indebtedness or the Indebtedness of any such Subsidiary.

  SECTION 3.14  Insurance.  Schedule 3.14 sets forth a description (which may be attachments of certificates of insurance) of all insurance maintained by or on behalf of the Loan Parties and their Subsidiaries as of the Effective Date.  As of the Effective Date, all premiums in respect of such insurance have been paid or paid up through the financed premium date.  The Loan Parties believe that the insurance maintained by or on behalf of the Loan Parties and their Subsidiaries is adequate and is customary for companies engaged in the same or similar businesses operating in the same or similar locations.

  SECTION 3.15  Capitalization and Subsidiaries.  Schedule 3.15 sets forth (a) a correct and complete list of the name and relationship to the Borrower of each Subsidiary, (b) a true and complete listing of each class of each of the Borrower’s authorized Equity Interests, of which all of such issued Equity Interests are validly issued, outstanding, fully paid and non-assessable, and owned beneficially and of record by the Persons identified on Schedule 3.15, (c) the type of entity of the Borrower and each Subsidiary, and (d) with respect to each Subsidiary, whether such Subsidiary is an Immaterial Subsidiary.  All of the issued and outstanding Equity Interests of each Subsidiary owned by any Loan Party have been (to the extent such concepts are relevant with respect to such ownership interests) duly authorized and issued and are fully paid and non-assessable.

  SECTION 3.16  Security Interest in Collateral.  The provisions of this Agreement and the other Loan Documents create legal and valid Liens on all the Collateral in favor of the Administrative Agent, for the benefit of the Secured Parties, and such Liens constitute perfected (upon the taking of all perfection measures required pursuant to the terms of the Loan Documents) and continuing Liens on the Collateral, securing the Secured Obligations, enforceable against the applicable Loan Party and all third parties, and having priority over all other Liens on the Collateral except in the case of (a) Permitted Encumbrances, to the extent any such Permitted Encumbrances would have priority over the Liens in favor of the Administrative Agent pursuant to any applicable law or agreement and (b) Liens perfected only by possession (including possession of any certificate of title), to the extent the Administrative Agent has not obtained or does not maintain possession of such Collateral.

  SECTION 3.17  Employment Matters.  Except as could not reasonably be expected to result in a Material Adverse Effect, individually or in the aggregate, (a) as of the Effective Date, there are no strikes, lockouts or slowdowns against any Loan Party or any Subsidiary pending or, to the knowledge of any Loan Party, threatened, (b) the hours worked by and payments made to employees of the Loan Parties and their Subsidiaries have not been in violation of the Fair Labor Standards Act or any other applicable federal, state, local or foreign law dealing with such matters and (c) all payments due from any Loan Party or any Subsidiary, or for which any claim may be made against any Loan Party or any Subsidiary, on account of wages and employee health and welfare insurance and other benefits, have been paid or accrued as a liability on the books of such Loan Party or such Subsidiary.

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  SECTION 3.18  Margin Regulations.  No Loan Party is engaged and will not engage, principally or as one of its important activities, in the business of purchasing or carrying Margin Stock, or extending credit for the purpose of purchasing or carrying Margin Stock, and no part of the proceeds of any Borrowing or Letter of Credit hereunder will be used to buy or carry any Margin Stock.  Following the application of the proceeds of each Borrowing or drawing under each Letter of Credit, not more than 25% of the value of the assets (either of any Loan Party only or of the Loan Parties and their Subsidiaries on a consolidated basis) will be Margin Stock.

  SECTION 3.19  Use of Proceeds.  The proceeds of the Loans have been used and will be used, whether directly or indirectly as set forth in Section 5.08.

  SECTION 3.20  No Burdensome Restrictions.  No Loan Party is subject to any Burdensome Restrictions except Burdensome Restrictions permitted under Section 6.10.

  SECTION 3.21  Anti-Corruption Laws and Sanctions.  Each Loan Party has implemented and maintains in effect policies and procedures designed to ensure compliance by such Loan Party, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and such Loan Party, its Subsidiaries and their respective officers and directors and, to the knowledge of such Loan Party, its employees and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects and are not knowingly engaged in any activity that would reasonably be expected to result in any Loan Party being designated as a Sanctioned Person.  None of (a) any Loan Party, any Subsidiary, any of their respective directors or officers or, to the knowledge of any Loan Party or any Subsidiary, any of their respective employees, or (b) to the knowledge of any such Loan Party or Subsidiary, any agent of such Loan Party or any Subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person.  No Borrowing or Letter of Credit, use of proceeds, Transaction or other transaction contemplated by this Agreement or the other Loan Documents will violate Anti-Corruption Laws or applicable Sanctions.  

  SECTION 3.22  Affected Financial Institutions.  No Loan Party is an Affected Financial Institution.

  SECTION 3.23  Plan Assets; Prohibited Transactions.  None of the Loan Parties or any of their Subsidiaries is an entity deemed to hold “plan assets” (within the meaning of the Plan Asset Regulations), and neither the execution, delivery nor performance of the transactions contemplated under this Agreement, including the making of any Loan and the issuance of any Letter of Credit hereunder, will give rise to a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code.

  ARTICLE IV.
Conditions

  SECTION 4.01  Effective Date.  The obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.02):

  (a)	Credit Agreement and Loan Documents.  The Administrative Agent (or its counsel) shall have received (i) from each party hereto a counterpart of this Agreement signed on behalf of such party (which, subject to Section 9.06(b), may include any Electronic Signatures transmitted by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page) and (ii) duly executed copies of the other Loan Documents and any promissory notes requested by a Lender pursuant to Section 2.10 payable to each such requesting Lender or its registered assigns and a written opinion of the Loan Parties’ counsel, addressed to the Administrative Agent, the Issuing Bank and the Lenders, all in form and substance reasonably satisfactory to the Administrative Agent.

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  (b)	Financial Statements and Projections.  The Lenders shall have received (i) audited consolidated financial statements of the Borrower and its Subsidiaries for the 2018, 2019 and 2020 fiscal years, (ii) unaudited interim consolidated financial statements of the Borrower and its Subsidiaries for each fiscal quarter ended after December 31, 2020, and such financial statements shall not, in the reasonable judgment of the Administrative Agent, reflect any material adverse change in the consolidated financial condition of the Borrower and its Subsidiaries, as reflected in the audited, consolidated financial statements described in clause (i) of this paragraph, and (iii) satisfactory Projections through 2025.

  (c)	Closing Certificates; Certified Certificate of Incorporation; Good Standing Certificates.  The Administrative Agent shall have received (i) a certificate of each Loan Party, dated the Effective Date and executed by its secretary or assistant secretary (or other officer of such Loan Party reasonably satisfactory to the Administrative Agent), which shall (A) certify the resolutions of its board of directors, members or other body authorizing the execution, delivery and performance of the Loan Documents to which it is a party, (B) identify by name and title and bear the signatures of the officers of such Loan Party authorized to sign the Loan Documents to which it is a party and, in the case of the Borrower, at least one of its Financial Officers, and (C) contain appropriate attachments, including the charter, articles or certificate of organization or incorporation of each Loan Party certified by the relevant authority of the jurisdiction of organization of such Loan Party and a true and correct copy of its bylaws or operating, management or partnership agreement, or other organizational or governing documents, and (ii) a long form good standing certificate, as of a recent date, for each Loan Party from its jurisdiction of organization or the substantive equivalent available in the jurisdiction of organization for such Loan Party from the appropriate governmental officer in such jurisdiction.

  (d)	No Default Certificate.  The Administrative Agent shall have received a certificate, signed by a Financial Officer of the Borrower, dated as of the Effective Date (i) stating that no Default has occurred and is continuing, (ii) stating that the representations and warranties contained in the Loan Documents are true and correct in all material respects (except with respect to any representation and warranty qualified as to materiality, in which case such representation and warranty is true and correct) as of such date (except to the extent that such representation and warranty relates to an earlier date, in which case such representation and warranty is true and correct in all material respects (except with respect to any representation and warranty qualified as to materiality, in which case such representation and warranty is true and correct) as of such earlier date), and (iii) certifying as to any other factual matters as may be reasonably requested by the Administrative Agent.

  (e)	Fees.  The Lenders and the Administrative Agent shall have received all fees required to be paid, and all expenses to the extent they would be required to be reimbursed pursuant to Section 9.03 if this Agreement were then effective, in each case for which invoices have been presented (including the reasonable and documented out-of-pocket fees and expenses of legal counsel), on or before the Effective Date.  All such amounts may be paid with proceeds of Loans made on the Effective Date, in which case they will be reflected in the funding instructions given by the Borrower to the Administrative Agent on or before the Effective Date.

  (f)	Lien Searches.  The Administrative Agent shall have received the results of a recent Lien search in the jurisdiction of organization of each Loan Party and each jurisdiction where assets constituting a material portion of the Collateral of the Loan Parties are located, and such search shall reveal no Liens on any of the assets of the Loan Parties except for liens permitted by Section 6.02 or discharged on or prior to the Effective Date pursuant to a pay-off letter or other documentation reasonably satisfactory to the Administrative Agent.

  (g)	Pay-Off Letter.  The Administrative Agent shall have received satisfactory pay-off letters for all existing Indebtedness required to be repaid and which confirms that all Liens upon any of the 

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  property of the Loan Parties constituting Collateral will be terminated concurrently with such payment and all letters of credit issued or guaranteed as part of such Indebtedness shall have been cash collateralized or supported by a Letter of Credit.

  (h)	Funding Account.  The Administrative Agent shall have received a notice setting forth the deposit account of the Borrower (the “Funding Account”) to which the Administrative Agent is authorized by the Borrower to transfer the proceeds of any Borrowings requested or authorized pursuant to this Agreement.

  (i)	[Reserved.]

  (j)	Solvency.  The Administrative Agent shall have received a solvency certificate of the Borrower signed by a Financial Officer dated the Effective Date, in form and substance reasonably satisfactory to the Administrative Agent.

  (k)	[Reserved.]

  (l)	Pledged Equity Interests; Stock Powers; Pledged Notes.  The Administrative Agent shall have received (i) the certificates (if any) representing the Equity Interests pledged pursuant to the Security Agreement, together with an undated stock power for each such certificate executed in blank by a duly authorized officer of the pledgor thereof and (ii) to the extent required pursuant to the Security Agreement, each promissory note (if any) pledged to the Administrative Agent pursuant to the Security Agreement endorsed (without recourse) in blank (or accompanied by an executed transfer form in blank) by the pledgor thereof.

  (m)	Filings, Registrations and Recordings.  Each document (including any Uniform Commercial Code financing statement) required by the Collateral Documents to be filed, registered or recorded in order to create in favor of the Administrative Agent, for the benefit of the Secured Parties, a perfected Lien on the Collateral described therein, prior and superior in right to any other Person (other than with respect to Liens expressly permitted by Section 6.02), shall be in proper form for filing, registration or recordation.

  (n)	Insurance.  The Administrative Agent shall have received evidence of insurance coverage in form, scope, and substance reasonably satisfactory to the Administrative Agent and otherwise in compliance with the terms of Section 5.10 of this Agreement and the Security Agreement.

  (o)	Letter of Credit Application.  The Administrative Agent shall have received a properly completed letter of credit application (whether standalone or pursuant to a master agreement, as applicable) if the issuance of a Letter of Credit will be required on the Effective Date.   

  (p)	Legal Due Diligence.  The Administrative Agent and its counsel shall have completed all legal due diligence, the results of which shall be reasonably satisfactory to Administrative Agent in its sole discretion.

  (q)	USA PATRIOT Act, Etc.  (i) The Administrative Agent shall have received, (x) at least five days prior to the Effective Date, all documentation and other information regarding the Borrower requested in connection with applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act, to the extent requested in writing of the Borrower at least ten days prior to the Effective Date, and (y) a properly completed and signed IRS Form W‐8 or W‐9, as applicable, for each Loan Party, and (ii) to the extent the Borrower qualifies as a “legal entity customer” under the Beneficial Ownership Regulation, at least five days prior to the Effective Date, any Lender that 

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  has requested, in a written notice to the Borrower at least ten days prior to the Effective Date, a Beneficial Ownership Certification in relation to the Borrower shall have received such Beneficial Ownership Certification (provided that, upon the execution and delivery by such Lender of its signature page to this Agreement, the condition set forth in this clause (ii) shall be deemed to be satisfied).

  (r)	Other Documents.  The Administrative Agent shall have received such other documents as the Administrative Agent, the Issuing Bank, any Lender or their respective counsel may have reasonably requested at least two Business Days prior to the Effective Date.

  The Administrative Agent shall notify the Borrower, the Lenders and the Issuing Bank of the Effective Date, and such notice shall be conclusive and binding.  

  SECTION 4.02  Each Credit Event.  The obligation of each Lender to make a Loan on the occasion of any Borrowing, and of the Issuing Bank to issue, amend or extend any Letter of Credit, is subject to the satisfaction of the following conditions:

  (a)	The representations and warranties of the Loan Parties set forth in the Loan Documents shall be true and correct in all material respects with the same effect as though made on and as of the date of such Borrowing or the date of issuance, amendment or extension of such Letter of Credit, as applicable (it being understood and agreed that any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct in all material respects only as of such specified date, and that any representation or warranty which is subject to any materiality qualifier shall be required to be true and correct in all respects).

  (b)	At the time of and immediately after giving effect to such Borrowing or the issuance, amendment or extension of such Letter of Credit, as applicable, no Default shall have occurred and be continuing.

  (c)	Immediately after giving effect to any Borrowing or the issuance, amendment or extension of any Letter of Credit, Availability shall not be less than zero (and, in the case of the first Borrowing or issuance of a Letter of Credit under this Agreement, the Borrower shall have delivered a Borrowing Base Certificate which calculates the Borrowing Base as of the end of the calendar month most recently ended and confirms such Availability).

  (d)	No event shall have occurred since December 31, 2020 and no condition shall exist which has or could be reasonably expected to have a Material Adverse Effect.

  Each Borrowing and each issuance, amendment or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in paragraphs (a), (b) and (d) of this Section.

  Notwithstanding the failure to satisfy the conditions precedent set forth in paragraphs (a), (b) or (d) of this Section, unless otherwise directed by the Required Lenders, the Administrative Agent may, but shall have no obligation to, continue to make Loans and an Issuing Bank may, but shall have no obligation to, issue, amend or extend, or cause to be issued, amended or extended, any Letter of Credit for the ratable account and risk of Lenders from time to time if the Administrative Agent believes that making such Loans or issuing, amending or extending, or causing the issuance, amendment or extension of, any such Letter of Credit is in the best interests of the Lenders.

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  ARTICLE V.
Affirmative Covenants

  Until all of the Secured Obligations shall have been Paid in Full, each Loan Party executing this Agreement covenants and agrees, jointly and severally with all of the other Loan Parties, with the Lenders that:

  SECTION 5.01  Financial Statements; Borrowing Base and Other Information.  The Borrower will furnish to the Administrative Agent and each Lender:

  (a)	within 90 days after the end of each fiscal year of the Borrower, its audited consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by Ernst & Young LLP or other independent public accountants of recognized national standing (without a “going concern” or like qualification or exception (other than solely with respect to, or resulting solely from, (1) an upcoming maturity date for any Secured Obligations occurring within one year from the time such opinion is delivered or (2) any potential inability to satisfy any financial covenant in this Agreement on a future date), and without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied;

  (b)	within 45 days after the end of each of the first three fiscal quarters of the Borrower, its consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as of the end of and for such fiscal quarter and the then elapsed portion of such fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by a Financial Officer as presenting fairly in all material respects the financial condition and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes;

  (c)	concurrently with any delivery of financial statements under clause (a) or (b) above, a Compliance Certificate (i) certifying, in the case of the financial statements delivered under clause (b) above, as presenting fairly in all material respects the financial condition and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes, (ii) certifying as to whether a Default has occurred and is continuing and, if a Default has occurred and is continuing, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (iii) setting forth reasonably detailed calculations demonstrating compliance with Section 6.12, (iv) stating whether any change in GAAP or in the application thereof has occurred since the date of the audited financial statements most recently delivered pursuant to clause (a) above and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate, and (v) stating whether any change in the Immaterial Subsidiaries of the Borrower has occurred since the date of the last certificate delivered pursuant to this clause (c) (or, in the case of the first such certificate delivered after the Effective Date, since the Effective Date);

  (d)	[reserved];

  (e)	as soon as available, but in any event no later than 60 days after the end of, and no earlier than 30 days prior to the end of, each fiscal year of the Borrower, commencing with the fiscal year ending December 31, 2021, a copy of the plan and forecast (including a projected consolidated balance sheet, income statement and cash flow statement) of the Borrower for each fiscal quarter of the upcoming fiscal year (the “Projections”) in form reasonably satisfactory to the Administrative Agent;

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  (f)	as soon as available but in any event within 30 days of the end of each calendar month during which any Revolving Loans are outstanding, and at such other times as may be necessary to re-determine Availability hereunder or as may be requested by the Administrative Agent, as of the period then ended, a Borrowing Base Certificate, together with the following, all delivered electronically in a text formatted file acceptable to the Administrative Agent;

  (i)	a detailed aging of the Borrower’s and its Domestic Subsidiaries’ Accounts, including all invoices aged by invoice date and due date, prepared in a manner reasonably acceptable to the Administrative Agent, together with a summary specifying the name, address, and balance due for each Account Debtor; 

  (ii)	a schedule detailing the Borrower’s and its Domestic Subsidiaries’ Inventory, in form reasonably satisfactory to the Administrative Agent, by location (showing Inventory in transit, any Inventory located with a third party under any consignment, bailee arrangement, or warehouse agreement), by class (raw material, work-in-process and finished goods), by product type, and by volume on hand, which Inventory shall be valued at the lower of cost (determined on a first-in, first-out basis) or market and adjusted for Reserves as the Administrative Agent has previously indicated to the Borrower are deemed by the Administrative Agent to be appropriate;

  (iii)	a worksheet of calculations prepared by the Borrower to determine Eligible Accounts and Eligible Inventory, such worksheets detailing the Accounts and Inventory excluded from Eligible Accounts and Eligible Inventory and the reason for such exclusion; and

  (iv)	any additional reports with respect to the Borrowing Base as the Administrative Agent may reasonably request in its Permitted Discretion;

  (g)	promptly after the same become publicly available, copies of all periodic and other reports, proxy statements and other materials filed by any Loan Party or any Subsidiary with the SEC, or any Governmental Authority succeeding to any or all of the functions of the SEC, or with any national securities exchange, or distributed by the Borrower to its shareholders generally, as the case may be;

  (h)	promptly after receipt thereof by the Borrower or any Subsidiary, copies of each notice or other correspondence received from the SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or possible investigation or other inquiry by the SEC or such other agency regarding financial or other operational results of the Borrower or any Subsidiary thereof; 

  (i)	promptly following any request therefor, (x) such other information regarding the operations, material changes in ownership of Equity Interests, business affairs and financial condition of any Loan Party or any Subsidiary, or compliance with the terms of this Agreement, as the Administrative Agent or any Lender (through Administrative Agent) may reasonably request and (y) information and documentation reasonably requested by the Administrative Agent or any Lender for purposes of compliance with applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act and the Beneficial Ownership Regulation; and

  (j)	promptly after any request therefor by the Administrative Agent or any Lender, copies of (i) any documents described in Section 101(k)(1) of ERISA that the Borrower or any ERISA Affiliate may request with respect to any Multiemployer Plan and (ii) any notices described in Section 101(l)(1) of ERISA that the Borrower or any ERISA Affiliate may request with respect to any Multiemployer Plan; provided that if the Borrower or any ERISA Affiliate has not requested such documents or notices from the administrator or sponsor of the applicable Multiemployer Plan, the Borrower or the applicable ERISA Affiliate shall promptly make a request for such documents and notices from such 

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  administrator or sponsor and shall provide copies of such documents and notices promptly after receipt thereof.

  Documents required to be delivered pursuant to Section 5.01(a), (b) or (i) (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 such materials are publicly available as posted on the Electronic Data Gathering, Analysis and Retrieval system (EDGAR); or (ii) on which such documents are posted on the Borrower’s behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether made available by the Administrative Agent); provided, upon written request by the Administrative Agent (or any Lender through the Administrative Agent) to the Borrower, the Borrower shall deliver paper copies of such documents to the Administrative Agent or such Lender until a written request to cease delivering paper copies is given by the Administrative Agent or such Lender.  The Administrative Agent shall have no obligation to request the delivery of or to maintain paper copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Borrower with any such request by a Lender for delivery, and each Lender shall be solely responsible for timely accessing posted documents or requesting delivery of paper copies of such document to it and maintaining its copies of such documents.

  The Borrower represents and warrants that it either (1) has no SEC registered or unregistered, publicly traded securities outstanding, or (2) files its financial statements with the SEC and/or makes its financial statements available to potential holders of its securities, and, accordingly, the Borrower hereby (x) authorizes the Administrative Agent to make the financial statements to be provided under Sections 5.01(a) and (b) above, along with the Loan Documents, available to Public-Siders and (y) agrees that at the time such financial statements are provided hereunder, they shall already have been made available to holders of any such securities.  The Borrower will not request that any other material be posted to Public-Siders without expressly representing and warranting to the Administrative Agent in writing that such materials do not constitute material non-public information within the meaning of the federal securities laws or that it has no outstanding SEC registered or unregistered, publicly traded securities.  Notwithstanding anything herein to the contrary, in no event shall the Borrower request that the Administrative Agent make available to Public-Siders budgets or any certificates, reports or calculations with respect to the Borrower’s compliance with the covenants contained herein or with respect to the Borrowing Base.

  SECTION 5.02  Notices of Material Events.  The Borrower will furnish to the Administrative Agent prompt (but in any event within any time period that may be specified below) written notice of the following:

  (a)	the occurrence of any Default;

  (b)	receipt of any written notice of any investigation by a Governmental Authority or any litigation or proceeding commenced or threatened against any Loan Party or any Subsidiary that (i) seeks damages in excess of $10,000,000, (ii) seeks injunctive relief, (iii) is asserted or instituted against any Plan, its fiduciaries or its assets, (iv) alleges criminal misconduct by any Loan Party or any Subsidiary, (v) alleges the violation of, or seeks to impose remedies under, any Environmental Law or related Requirement of Law, or seeks to impose Environmental Liability, (vi) asserts liability on the part of any Loan Party or any Subsidiary in excess of $10,000,000 in respect of any tax, fee, assessment, or other governmental charge, or (vii) involves any material product recall of a product sold by a Loan Party;

  (c)	any material change in accounting or financial reporting practices by the Borrower or any Subsidiary;

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  (d)	the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected to result in liability of the Loan Parties and their Subsidiaries in an aggregate amount exceeding $10,000,000; 

  (e)	any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect; and

  (f)	any change in the information provided in the Beneficial Ownership Certification delivered to any Lender that would result in a change to the list of beneficial owners identified in such certification.

  Each notice delivered under this Section: (i) shall be in writing, (ii) shall contain a heading or a reference line that reads “Notice under Section 5.02 of Credit Agreement dated February 9, 2022,” and (iii) shall be accompanied by a statement of a Financial Officer or other executive officer of the Borrower setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

  SECTION 5.03  Existence; Conduct of Business.  Each Loan Party will (a) do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, qualifications, licenses, permits, franchises, governmental authorizations, intellectual property rights, licenses and permits material to the conduct of its business, and maintain all requisite authority to conduct its business in each jurisdiction in which its business is conducted; provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under Section 6.03, and (b) carry on and conduct its business in substantially the same manner and in substantially the same fields of enterprise as it is presently conducted.

  SECTION 5.04  Payment of Obligations.  Each Loan Party will, and will cause each Subsidiary to, pay or discharge all Material Indebtedness and all other material liabilities and obligations, including material Taxes, before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by appropriate proceedings, (b) such Loan Party or Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP and (c) the failure to make payment pending such contest could not reasonably be expected to result in a Material Adverse Effect; provided, however, that each Loan Party will, and will cause each Subsidiary to, remit withholding taxes and other payroll taxes to appropriate Governmental Authorities as and when claimed to be due, notwithstanding the foregoing exceptions.

  SECTION 5.05  Maintenance of Properties.  Each Loan Party will, and will cause each Subsidiary to, keep and maintain all property material to the conduct of its business in good working order and condition, ordinary wear and tear excepted.

  SECTION 5.06  Books and Records; Inspection Rights.  Each Loan Party will, and will cause each Subsidiary to, (a) keep proper books of record and account in which full, true and correct entries in all material respects are made of all dealings and transactions in relation to its business and activities and (b) permit any representatives designated by the Administrative Agent or any Lender (including employees of the Administrative Agent, any Lender or any consultants, accountants, lawyers, agents and appraisers retained by the Administrative Agent), upon reasonable prior notice, to visit and inspect its properties, conduct at such Loan Party’s premises field examinations of such Loan Party’s assets, liabilities, books and records, including examining and making extracts from their books and records, environmental assessment reports and Phase I or Phase II studies, and to discuss its affairs, finances and condition with its officers and independent accountants (and hereby authorizes the Administrative Agent and each Lender to contact its independent accountants directly) and to provide contact information for each bank where each Loan Party 

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  has a depository and/or securities account, and each Loan Party hereby authorizes the Administrative Agent and each Lender to contact the bank(s) in order to request bank statements and/or balances, all at such reasonable times and as often as reasonably requested.  The Loan Parties acknowledge that the Administrative Agent, after exercising its rights of inspection, may prepare and distribute to the Lenders certain Reports pertaining to the Loan Parties’ assets for internal use by the Administrative Agent and the Lenders.  Notwithstanding anything herein to the contrary, if no Event of Default has occurred and is continuing, (i) all such visitations and inspections shall be conducted by the Administrative Agent on behalf of the Lenders, and (ii) the applicable Loan Party shall have the right to accompany any such representative designated by the Administrative Agent during any such inspection.  If no Event of Default has occurred and is continuing, the Administrative Agent may only conduct, and the Loan Parties shall be responsible for the costs and expenses of, one inspection and field examination during any 12-month period; provided, that there shall be no limitation on the number or frequency of inspections and field examinations conducted while an Event of Default has occurred and is continuing and the Loan Parties shall be responsible for the costs and expenses of any field examinations conducted while an Event of Default has occurred and is continuing.

  SECTION 5.07  Compliance with Laws and Material Contractual Obligations.  Each Loan Party will, and will cause each Subsidiary to, (i) comply with each Requirement of Law applicable to it or its property (including without limitation Environmental Laws) and (ii) perform its obligations under agreements to which it is a party, except, in each case of clauses (i) and (ii), where the failure to do so, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.  Each Loan Party will maintain in effect and enforce policies and procedures designed to ensure compliance by such Loan Party, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions.

  SECTION 5.08  Use of Proceeds.  

  (a)	The proceeds of the Loans and the Letters of Credit will be used only (i) to finance the Adaptive Spectrum Acquisition and (ii) for working capital and general corporate purposes.  No part of the proceeds of any Loan and no Letter of Credit will be used, whether directly or indirectly, for any purpose that entails a violation of any of the regulations of the Federal Reserve Board, including Regulations T, U and X.  

  (b)	The Borrower will not request any Borrowing or Letter of Credit, and the Borrower shall not use, and shall procure that its Subsidiaries and its or their respective directors, officers, employees and agents shall not use, the proceeds of any Borrowing or Letter of Credit (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, except to the extent permitted for a Person required to comply with Sanctions, or (iii) in any manner that would result in the violation of any Sanctions applicable to any party hereto. 

  SECTION 5.09  Accuracy of Information.  The Loan Parties will ensure that any written information, including financial statements or other documents, furnished by the Loan Parties or any Subsidiary to the Administrative Agent or the Lenders in connection with this Agreement or any other Loan Document or any amendment or modification hereof or thereof or waiver hereunder or thereunder contains, when taken as a whole and as modified or supplemented by other information so furnished, no 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 and other forward looking information, the Loan Parties will only ensure that such 

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  information was prepared in good faith based upon assumptions believed by the Loan Parties to be reasonable at the time delivered.

  SECTION 5.10  Insurance.  Each Loan Party will, and will cause each Subsidiary to, maintain with financially sound and reputable carriers having a financial strength rating of at least A- by A.M. Best Company (a) insurance in such amounts (with no greater risk retention) and against such risks (including loss or damage by fire and loss in transit; theft, burglary, pilferage, larceny, embezzlement, and other criminal activities; business interruption; and general liability) and such other hazards, as is customarily maintained by companies of established repute engaged in the same or similar businesses operating in the same or similar locations and (b) all insurance required pursuant to the Collateral Documents.  The Borrower will furnish to the Lenders, upon request of the Administrative Agent, information in reasonable detail as to the insurance so maintained.

  SECTION 5.11  [Section Intentionally Omitted].

  SECTION 5.12  Casualty and Condemnation.  The Borrower (a) will furnish to the Administrative Agent prompt written notice of 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 material portion of the Collateral or interest therein under power of eminent domain or by condemnation or similar proceeding and (b) will ensure that the net proceeds of any such event (whether in the form of insurance proceeds, condemnation awards or otherwise) are collected and applied in a manner not prohibited by this Agreement and the Collateral Documents.

  SECTION 5.13  Depository Banks.  The Borrower and each Subsidiary will, on or before the date that is (i) with respect to Loan Parties, 60 days after the Effective Date (or such later date as the Administrative Agent may agree) and (ii) with respect to any Subsidiary that is not a Loan Party, 180 days after the Effective Date (or such later date as the Administrative Agent may agree), transition their deposit accounts to Chase and any affiliate thereof as necessary for Chase and its affiliates to be, and thereafter maintain Chase and its affiliates as, the principal depository banks of the Borrower and each Subsidiary, including for the maintenance of operating, administrative, cash management, collection activity, and other deposit accounts for the conduct of its business; provided, that (a) nothing herein shall prohibit the Borrower or any Subsidiary from maintaining any Excluded Account with a depository bank other than Chase or an affiliate thereof and (b) operating, administrative, cash management, collection activity, depository activities and other treasury management operations and functions not available from Chase or any of its affiliates in a relevant jurisdiction may be provided by another bank or financial institution in such jurisdiction.

  SECTION 5.14  Additional Collateral; Further Assurances.  

  (a)	Subject to applicable Requirements of Law, each Loan Party will cause each Domestic Subsidiary (other than any Immaterial Subsidiary) formed or acquired after the date of this Agreement to become a Loan Party by executing a Joinder Agreement within 30 days after the date such Subsidiary is formed or acquired or, with respect to any Subsidiary that is no longer an Immaterial Subsidiary, within 30 days after the date that the Compliance Certificate indicating such Subsidiary is no longer an Immaterial Subsidiary is required to be delivered pursuant to Section 5.01(c), or, in each case, such longer period of time as the Administrative Agent may permit in its sole discretion, or other documentation reasonably satisfactory to the Administrative Agent.  In connection therewith, the Administrative Agent shall have received all documentation and other information regarding such newly formed or acquired Subsidiaries as may be required and requested in writing to the Borrower to comply with the applicable “know your customer” rules and regulations, including the USA Patriot Act.  Upon execution and delivery thereof, each such Person (i) shall automatically become a Loan Guarantor 

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  hereunder and thereupon shall have all of the rights, benefits, duties, and obligations in such capacity under the Loan Documents and (ii) will grant Liens to the Administrative Agent, for the benefit of the Administrative Agent and the other Secured Parties, in any property of such Loan Party which constitutes Collateral, provided that, notwithstanding anything to the contrary contained herein or in any other Loan Document, except as otherwise provided in the last sentence of clause (b) of this Section 5.14, no Loan Party shall be required to take any action, and no Loan Party shall be required to cause any of its Subsidiaries to take any action, in any non-U.S. jurisdiction to create, perfect or enforce any Lien pursuant to any Loan Document.

  (b)	Without limiting the foregoing, each Loan Party will, and will cause each Subsidiary to, execute and deliver, or cause to be executed and delivered, to the Administrative Agent such documents, agreements and instruments governed by the laws of the U.S. or any political subdivision thereof, and will take or cause to be taken such further actions in the U.S. or any political subdivision thereof (including the filing and recording of financing statements and other documents and such other actions or deliveries of the type required by Section 4.01, as applicable, but excluding the filing and recording of any fixture filings, mortgages, and deeds of trust), which may be required by any Requirement of Law or which the Administrative Agent may, from time to time, reasonably request to carry out the terms and conditions of this Agreement and the other Loan Documents and to ensure perfection and priority of the Liens created or intended to be created by the Collateral Documents, all in form and substance reasonably satisfactory to the Administrative Agent and all at the expense of the Loan Parties.  Notwithstanding the foregoing, at any time while an Event of Default continues, each Loan Party will, as soon as possible after receipt of written request from the Administrative Agent, cause each Foreign Subsidiary so requested by the Administrative Agent to become a Loan Party and a Loan Guarantor and to grant Liens to the Administrative Agent on its assets and have the pledge of its Equity Interests pledged under appropriate law, provided that (1) no such Foreign Subsidiary shall be required to take any action that (x) is prohibited by any Governmental Authority with authority over such Foreign Subsidiary, or (y) is prohibited by applicable law or regulation, or that could reasonably be expected to result in a risk to the officers or directors of such Foreign Subsidiary of a civil or criminal liability, and (2) no such action shall be required under circumstances where the Administrative Agent determines in its Permitted Discretion that the cost, burden, difficulty or consequence of providing such Guarantee or grant of collateral at such time is excessive in relation to the value afforded thereby.

  (c)	If any material assets (other than any assets constituting Excluded Assets) are acquired by any Loan Party after the Effective Date (other than assets constituting Collateral under the Security Agreement that become subject to the Lien under the Security Agreement upon acquisition thereof), the Borrower will (i) notify the Administrative Agent thereof, and, if requested by the Administrative Agent or the Required Lenders, cause such assets to be subjected to a Lien securing the Secured Obligations and (ii)  take, and cause each applicable Loan Party to take, such actions as shall be necessary or reasonably requested by the Administrative Agent to grant and perfect such Liens, including actions described in paragraph (b) of this Section, all at the expense of the Loan Parties.

  SECTION 5.15  Post-Closing Covenants.  Each Loan Party shall deliver, or cause to be delivered, (a) within 60 days of the First Amendment Effective Date (or such later date as the Administrative Agent shall agree in its sole discretion), each Collateral Access Agreement and each control agreement required to be provided pursuant to the Security Agreement, and (b) within 30 days of the First Amendment Effective Date (or such later date as the Administrative Agent shall agree in its sole discretion), evidence of insurance coverage in form, scope, and substance reasonably satisfactory to the Administrative Agent and otherwise in compliance with the terms of Section 5.10 of this Agreement and the Security Agreement.

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  ARTICLE VI.
Negative Covenants

  Until all of the Secured Obligations shall have been Paid in Full, each Loan Party executing this Agreement covenants and agrees, jointly and severally with all of the other Loan Parties, with the Lenders that:

  SECTION 6.01  Indebtedness.  No Loan Party will, nor will it permit any Subsidiary to, create, incur, assume or suffer to exist any Indebtedness, except:

  (a)	the Secured Obligations;

  (b)	Indebtedness existing on the date hereof and set forth in Schedule 6.01 and any extensions, renewals, refinancings and replacements of any such Indebtedness in accordance with clause (f) hereof;

  (c)	Indebtedness of the Borrower to any Subsidiary and of any Subsidiary to the Borrower or any other Subsidiary, provided that (i) Indebtedness of any Subsidiary that is not a Loan Party to the Borrower or any other Loan Party shall be subject to Section 6.04 and (ii) Indebtedness of any Loan Party to any Subsidiary that is not a Loan Party shall be subordinated to the Secured Obligations on terms reasonably satisfactory to the Administrative Agent;

  (d)	Guarantees by the Borrower of Indebtedness of any Subsidiary and by any Subsidiary of Indebtedness of the Borrower or any other Subsidiary, provided that (i) the Indebtedness so Guaranteed is permitted by this Section 6.01, (ii) Guarantees by the Borrower or any other Loan Party of Indebtedness of any Subsidiary that is not a Loan Party shall be subject to Section 6.04 and (iii) Guarantees permitted under this clause (d) shall be subordinated to the Secured Obligations on the same terms as the Indebtedness so Guaranteed is subordinated to the Secured Obligations;

  (e)	Indebtedness of the Borrower or any Subsidiary incurred to finance the acquisition (whether or not such acquisition was before or after the incurrence of such relevant Indebtedness), construction or improvement of any fixed or capital assets (whether or not constituting purchase money Indebtedness), 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 extensions, renewals and replacements of any such Indebtedness in accordance with clause (f) below; provided that (i) such Indebtedness is incurred prior to or within 120 days after such acquisition or the completion of such construction or improvement and (ii) the aggregate principal amount of Indebtedness permitted by this clause (e) together with any Refinance Indebtedness in respect thereof permitted by clause (f) below, shall not exceed $5,000,000 at any time outstanding;

  (f)	Indebtedness which represents extensions, renewals, refinancing or replacements (such Indebtedness being so extended, renewed, refinanced or replaced being referred to herein as the “Refinance Indebtedness”) of any of the Indebtedness described in clauses (b), (e), (i), (j) and (l) hereof (such Indebtedness being referred to herein as the “Original Indebtedness”); provided that (i) such Refinance Indebtedness does not increase the principal amount of the Original Indebtedness (except in an amount equal to any prepayment premiums, fees, expenses or any other similar amounts payable in respect of the Original Indebtedness), (ii) such Refinance Indebtedness does not increase the interest rate of the Original Indebtedness, except as necessary to reflect market terms and conditions at the time of the incurrence or issuance of such Refinance Indebtedness, (iii) any Liens securing such Refinance Indebtedness are not extended to any additional property (or, in the case of any Original Indebtedness being refinanced is secured by a class of assets, such Liens shall not be extended to an additional class of assets) of any Loan Party or any Subsidiary, (iv) no Loan Party or any Subsidiary that is not originally obligated with respect to repayment of such Original Indebtedness is required to become obligated with respect to 

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  such Refinance Indebtedness, (v) such Refinance Indebtedness does not result in a shortening of the average weighted maturity of such Original Indebtedness, (vi) the terms of such Refinance Indebtedness other than fees and interests are not less favorable, when taken as a whole, to the obligor thereunder than the original terms of such Original Indebtedness and (vii) if such Original Indebtedness was subordinated in right of payment to the Secured Obligations, then the terms and conditions of such Refinance Indebtedness must include subordination terms and conditions that are at least as favorable to the Administrative Agent and the Lenders as those that were applicable to such Original Indebtedness;

  (g)	Indebtedness owed to any Person providing workers’ compensation, health, disability or other employee benefits or property, casualty or liability insurance, pursuant to reimbursement or indemnification obligations to such Person, in each case incurred in the ordinary course of business;

  (h)	Indebtedness of any Loan Party in respect of performance bonds, bid bonds, appeal bonds, surety bonds and similar obligations, in each case provided in the ordinary course of business;

  (i)	Subordinated Indebtedness in an aggregate principal amount not exceeding $5,000,000 at any time outstanding;

  (j)	Indebtedness of any Person that becomes a Subsidiary after the date hereof; provided that (i) such Indebtedness exists at the time such Person becomes a Subsidiary and is not created in contemplation of or in connection with such Person becoming a Subsidiary and (ii) the aggregate principal amount of Indebtedness permitted by this clause (j) together with any Refinance Indebtedness in respect thereof permitted by clause (f) above, shall not exceed $10,000,000 at any time outstanding; and

  (k)	(i) Swap Agreement Obligations permitted by Section 6.07 and (ii) Indebtedness in an aggregate outstanding amount not to exceed $1,000,000 consisting of letters of credit or bank guarantees to the extent cash collateralized; 

  (l)	Indebtedness of Foreign Subsidiaries in an aggregate principal amount not exceeding $5,000,000 at any time outstanding; and

  (m)	unsecured Indebtedness in an aggregate principal amount not exceeding $5,000,000 at any time outstanding.

  SECTION 6.02  Liens.  No Loan Party will, nor will it permit any Subsidiary to, create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including Accounts) or rights in respect of any thereof, except:

  (a)	Liens created pursuant to any Loan Document;

  (b)	Permitted Encumbrances;

  (c)	any Lien on any property or asset of the Borrower or any Subsidiary existing on the date hereof and set forth in Schedule 6.02; provided that (i) such Lien shall not apply to any other property or asset of the Borrower or any Subsidiary, (ii) such Lien shall secure only those obligations which it secures on the date hereof and Refinance Indebtedness permitted under Section 6.01(f), and (iii) with respect to any Lien on a cash collateral account to secure outstanding letters of credit, the amount on deposit to secure such letters of credit shall not exceed an amount equal to 105% of the amount of such letters of credit;

  (d)	Liens on fixed or capital assets acquired, constructed or improved by the Borrower or any Subsidiary; provided that (i) such Liens secure Indebtedness permitted by Section 6.01(e), (ii) such 

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  Liens and the Indebtedness secured thereby are incurred prior to or within 120 days after such acquisition or the completion of such construction or improvement, (iii) the Indebtedness secured thereby does not exceed 100% of the cost of acquiring, constructing or improving such fixed or capital assets and (iv) such Liens shall not apply to any other property or assets of the Borrower or any Subsidiary;

  (e)	any Lien existing on any property or asset (other than Accounts and Inventory) prior to the acquisition thereof by the Borrower or any Subsidiary or existing on any property or asset (other than Accounts and Inventory) of any Person that becomes a Loan Party after the date hereof prior to the time such Person becomes a Loan Party; provided that (i) such Lien secures Indebtedness permitted by Section 6.01, (ii) such Lien is not created in contemplation of or in connection with such acquisition or such Person becoming a Loan Party, as the case may be, (iii) such Lien shall not apply to any other property or assets of the Loan Party and (iv) such Lien shall secure only those obligations which it secures on the date of such acquisition or the date such Person becomes a Loan Party, as the case may be, and Refinance Indebtedness permitted under Section 6.01(f);

  (f)	(i) Liens of a collecting bank arising in the ordinary course of business under Section 4‐210 of the UCC in effect in the relevant jurisdiction covering only the items being collected upon and (ii) banker’s Liens and customary contractual rights of setoff arising in the ordinary course of business with respect to funds and securities in accounts maintained by the Borrower or any Subsidiary with banks or other financial institutions and not given in connection with the incurrence of Indebtedness;

  (g)	Liens arising out of Sale and Leaseback Transactions permitted by Section 6.06; 

  (h)	Liens securing a judgment for the payment of money not constituting an Event of Default under paragraph (k) of Article VII;

  (i)	Liens on cash and deposit accounts securing letters of credit and bank guarantees permitted pursuant to Section 6.01(k)(ii); provided, the amount of cash on deposit to secure any letter of credit shall not exceed 105% of the amount of such letter of credit; 

  (j)	Liens granted by a Subsidiary that is not a Loan Party in favor of the Borrower or another Loan Party; 

  (k)	licenses of intellectual property granted in the ordinary course of business and not interfering in any material respect with the ordinary course of business of the Borrower and its Subsidiaries, taken as a whole; 

  (l)	Liens on the assets of a Foreign Subsidiary securing Indebtedness of such Foreign Subsidiary permitted pursuant to Section 6.01(l); and

  (m)	Liens securing obligations that do not constitute Funded Indebtedness and are not in excess of $1,000,000.

  Notwithstanding the foregoing, none of the Liens permitted pursuant to this Section 6.02 may at any time attach to any Loan Party’s (i) Accounts, other than those permitted under clause (a) of the definition of Permitted Encumbrances and clause (a) above and (ii) Inventory, other than those permitted under clauses (a) and (b) of the definition of Permitted Encumbrances and clause (a) above.

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  SECTION 6.03  Fundamental Changes. 

  (a)	No Loan Party will, nor will it permit any Subsidiary to, merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or otherwise Dispose of all any substantial part of its assets, or all or substantially all of the Equity Interests in any of its Subsidiaries (in each case, whether now owned or hereafter acquired), or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect thereto no Event of Default shall have occurred and be continuing, (i) Dispositions are permitted to the extent also permitted pursuant to Section 6.05, (ii) any Subsidiary of the Borrower may merge into a Loan Party in a transaction in which a Loan Party is the surviving entity (or if the Borrower is a party to such merger, then the Borrower shall be the surviving entity), (iii) any Loan Party may merge into any other Person in a transaction in which the surviving entity is a Loan Party (or if the Borrower is a party to such merger, then the Borrower shall be the surviving entity), and (iv) any Subsidiary may liquidate or dissolve if the Borrower determines in good faith that such liquidation or dissolution is in the best interests of the Borrower and is not materially disadvantageous to the Lenders (it being understood that in the case of any liquidation or dissolution of a Subsidiary that is a Loan Party, such Subsidiary shall at or before the time of such liquidation or dissolution transfer all its assets to another Subsidiary that is a Loan Party); provided that any such merger involving a Person that is not a wholly owned Subsidiary immediately prior to such merger shall not be permitted unless also permitted by Section 6.04.

  (b)	No Loan Party will, nor will it permit any Subsidiary to, consummate a Division as the Dividing Person, without the prior written consent of Administrative Agent.  Without limiting the foregoing, if any Loan Party that is a limited liability company consummates a Division (with or without the prior consent of Administrative Agent as required above), each Division Successor shall be required to comply with the obligations set forth in Section 5.14 and the other further assurances obligations set forth in the Loan Documents and become a Loan Party under this Agreement and the other Loan Documents.

  (c)	No Loan Party will, nor will it permit any Subsidiary to, engage in any business other than businesses of the type conducted by the Borrower and its Subsidiaries on the date hereof and businesses reasonably related, complementary or ancillary thereto.

  (d)	No Loan Party will, nor will it permit any Subsidiary to change its fiscal year or any fiscal quarter from the basis in effect on the Effective Date.

  (e)	No Loan Party will change the accounting basis upon which its financial statements are prepared, except as required by any applicable laws or Governmental Authority.

  (f)	No Loan Party will change the tax filing elections it has made under the Code.

  SECTION 6.04  Investments, Loans, Advances, Guarantees and Acquisitions.  No Loan Party will, nor will it permit any Subsidiary to purchase, hold or acquire (including pursuant to any merger with any Person that was not a Loan Party and a wholly owned Subsidiary prior to such merger) any Equity Interests, evidences of indebtedness or other securities (including any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, Guarantee any obligations of, or make or permit to exist any investment or any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a series of transactions) any assets of any other Person constituting a business unit (whether through purchase of assets, merger or otherwise) (in each case, an “Investment”), except:

  (a)	Permitted Investments, subject to, to the extent required by Section 5.13 or by the Security Agreement, control agreements in favor of the Administrative Agent for the benefit of the Secured 

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  Parties or otherwise subject to a perfected security interest in favor of the Administrative Agent for the benefit of the Secured Parties;

  (b)	Investments in existence on the date hereof and described in Schedule 6.04;

  (c)	so long as no Event of Default exists immediately at the time of such Investment or immediately after giving effect thereto, Investments by the Borrower and the Subsidiaries in Equity Interests in their respective Subsidiaries, provided that (i) any such Equity Interests held by a Loan Party shall be pledged pursuant to the Security Agreement (subject to the limitations applicable to Equity Interests of a Foreign Subsidiary referred to in Section 5.14) and (ii) the aggregate amount of Investments by Loan Parties in Subsidiaries that are not Loan Parties (together with outstanding Guarantees permitted under Section 6.04(e)) shall not exceed $5,000,000 at any time outstanding (in each case determined at the time of making each such Investment and without regard to any write-downs or write-offs);

  (d)	so long as no Event of Default exists immediately at the time of such Investment or immediately after giving effect thereto, loans or advances made by any Loan Party to any Subsidiary and made by any Subsidiary to a Loan Party or any other Subsidiary, provided that (i) any such loans and advances made by a Loan Party shall be evidenced by a promissory note pledged pursuant to the Security Agreement and (ii) with respect to any such loans and advances made by Loan Parties to Subsidiaries that are not Loan Parties, either (A) the aggregate amount of such loans and advances at any time outstanding does not exceed the lesser of (1) $15,000,000 at any time outstanding and (2) the amount necessary to cover (I) operating expenses, (II) funding of inventory, (III) payroll expenses and (IV) to the extent approved by the Administrative Agent, other expenses of such Subsidiaries or (B) the Payment Condition shall be satisfied on a pro forma basis immediately after giving effect to such Investment; provided that the aggregate amount of such loans and advances made pursuant to this clause (d)(ii)(B) shall not exceed $10,000,000 at any time outstanding; 

  (e)	so long as no Event of Default exists immediately at the time of such Investment or immediately after giving effect thereto, Guarantees constituting Indebtedness permitted by Section 6.01, provided that the aggregate principal amount of Indebtedness of Subsidiaries that are not Loan Parties that is Guaranteed by any Loan Party (together with outstanding Investments permitted under clause (ii) to the proviso to Section 6.04(c)) shall not exceed $5,000,000 at any time outstanding (in each case determined without regard to any write-downs or write-offs);

  (f)	so long as no Event of Default exists immediately at the time of such Investment or immediately after giving effect thereto, loans or advances made by a Loan Party to its employees on an arms-length basis in the ordinary course of business consistent with past practices for travel and entertainment expenses, relocation costs and similar purposes up to a maximum of $2,500,000 in the aggregate at any one time outstanding;

  (g)	notes payable, or stock or other securities issued by Account Debtors to a Loan Party pursuant to negotiated agreements with respect to settlement of such Account Debtor’s Accounts in the ordinary course of business, consistent with past practices;

  (h)	Investments in the form of Swap Agreements permitted by Section 6.07;

  (i)	Investments of any Person existing at the time such Person becomes a Subsidiary of the Borrower or consolidates or merges with the Borrower or any Subsidiary (including in connection with a permitted acquisition), so long as such investments were not made in contemplation of such Person becoming a Subsidiary or of such merger;

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  (j)	Investments received in connection with the disposition of assets permitted by Section 6.05; 

  (k)	Investments constituting deposits described in clauses (c) and (d) of the definition of Permitted Encumbrances; 

  (l)	Permitted Acquisitions; 

  (m)	Investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with or judgments against, customers and suppliers, in each case in the ordinary course of business;

  (n)	so long as no Event of Default exists immediately at the time of such Investment or immediately after giving effect thereto, Investments in an aggregate amount not to exceed $1,000,000 at any time outstanding; and

  (o)	Investments in an aggregate amount outstanding at any time not to exceed $10,000,000 so long as the Payment Condition is satisfied on a pro forma basis immediately after giving effect to such Investment.

  SECTION 6.05  Asset Sales.  No Loan Party will, nor will it permit any Subsidiary to, Dispose of any asset, including any Equity Interest owned by it, nor will the Borrower permit any Subsidiary to issue any additional Equity Interest in such Subsidiary (other than to the Borrower or another Subsidiary in compliance with Section 6.04), except:

  (a)	Dispositions of (i) Inventory in the ordinary course of business and (ii) used, obsolete, worn out or surplus Equipment or property in the ordinary course of business;

  (b)	Dispositions of assets to the Borrower or any Subsidiary, provided that (i) any such Dispositions involving a Subsidiary that is not a Loan Party shall be made in compliance with Section 6.09, and (ii) with respect to any Disposition by a Loan Party that is a Foreign Subsidiary, such Disposition shall be made to a Loan Party in the same country or to a Loan Party organized in the United States;

  (c)	Dispositions of Accounts (excluding sales or dispositions in a factoring arrangement) in connection with the compromise, settlement or collection thereof;

  (d)	Dispositions of (i) Permitted Investments and (ii) other Investments permitted by clauses (i) and (j) of Section 6.04;

  (e)	Sale and Leaseback Transactions permitted by Section 6.06;

  (f)	Dispositions resulting from any casualty or other insured damage to, or any taking under power of eminent domain or by condemnation or similar proceeding of, any property or asset of the Borrower or any Subsidiary; 

  (g)	licenses, sublicenses, leases and subleases, in each case, in the ordinary course of business and that do not materially interfere with the business of the Borrower and the Subsidiaries, taken as a whole;

  (h)	sales of Equity Interests of the Borrower so long as no Change in Control results therefrom; 

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  (i)	the abandonment, cancellation or Disposition of any immaterial intellectual property of any Loan Party in the ordinary course of business;

  (j)	the granting of Liens permitted by Section 6.02;

  (k)	Investments permitted pursuant to Section 6.06;

  (l)	Restricted Payments permitted pursuant to Section 6.08; and 

  (m)	Dispositions of assets (other than Equity Interests in a Subsidiary unless all Equity Interests in such Subsidiary are sold), provided that the aggregate fair market value of all assets Disposed of in reliance upon this paragraph (m) shall not exceed $7,500,000 during any fiscal year of the Borrower;

  provided that all Dispositions permitted under this Section 6.05 (other than those permitted by paragraphs (b), (d), (f), (h), (j), (k) and (l) above) shall be made for fair value and for at least 75% cash consideration.

  SECTION 6.06  Sale and Leaseback Transactions.  No Loan Party will, nor will it permit any Subsidiary to, enter into any arrangement, directly or indirectly, whereby it shall sell or transfer any property, real or personal, used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such property or other property that it intends to use for substantially the same purpose or purposes as the property sold or transferred (a “Sale and Leaseback Transaction”), except for any such sale of any fixed or capital assets by the Borrower or any Subsidiary that is made for cash consideration in an amount not less than the fair value of such fixed or capital asset and is consummated within 90 days after the Borrower or such Subsidiary acquires or completes the construction of such fixed or capital asset.

  SECTION 6.07  Swap Agreements.  No Loan Party will, nor will it permit any Subsidiary to, enter into any Swap Agreement, except (a) Swap Agreements entered into to hedge or mitigate risks to which the Borrower or any Subsidiary has actual exposure (other than those in respect of Equity Interests of the Borrower or any Subsidiary), and (b) Swap Agreements entered into in order to effectively cap, collar or exchange interest rates (from floating to fixed rates, from one floating rate to another floating rate or otherwise) with respect to any interest-bearing liability or investment of the Borrower or any Subsidiary.

  SECTION 6.08  Restricted Payments; Certain Payments of Indebtedness.  

  (a)	No Loan Party will, nor will it permit any Subsidiary to, declare or make, or agree to declare or make, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except (i) the Borrower may declare and pay dividends with respect to its common Equity Interests payable solely in additional shares of its common Equity Interests, and, with respect to its preferred Equity Interests, payable solely in additional shares of such preferred Equity Interests or in shares of its common Equity Interests, (ii) Subsidiaries may declare and pay dividends ratably with respect to their Equity Interests, (iii) the Borrower may make Restricted Payments, not exceeding $5,000,000 during any fiscal year, pursuant to and in accordance with stock option plans or other incentive or benefit plans for management, directors or employees of the Borrower and its Subsidiaries, (iv) so long as no Event of Default has occurred and is continuing or would result after giving effect to such payment, the Borrower and its Subsidiaries may make repurchases of Equity Interests deemed to occur upon exercise of stock options or warrants if such repurchased Equity Interests represents a portion of the exercise price of such options or warrants, (v) so long as no Event of Default has occurred and is continuing or would result after giving effect to such payment, repurchases of Equity Interests deemed to occur upon the withholding of a portion of the Equity Interests granted or awarded to a current or former officer, director, employee or consultant to pay for the taxes payable by such Person upon such grant or award (or upon vesting thereof), and (vi) so long as either 

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  (x)(A) no Event of Default has occurred and is continuing or would result immediately after giving effect to such payment and (B) at the time of such payment and after giving pro forma effect thereto the Borrower is in compliance with the financial covenants set forth in Section 6.12 or (y) the payment of any dividend or distribution or the consummation of any irrevocable redemption within 60 days after the date of its declaration or the giving of notice, as the case may be, if at the date of declaration or notice the payment or redemption would have complied with the immediately foregoing clause (x), the Borrower may make Restricted Payments not exceeding $7,500,000 in any fiscal year.

  (b)	No Loan Party will, nor will it permit any Subsidiary to, make or agree to pay or make, directly or indirectly, any payment or other distribution (whether in cash, securities or other property) of or in respect of principal of or interest on any Indebtedness, or any payment or other distribution (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any Funded Indebtedness, except:

  (i)	payment of Indebtedness created under the Loan Documents;

  (ii)	payment of regularly scheduled interest and principal payments as and when due in respect of any Indebtedness permitted under Section 6.01, other than (A) the Optellian Earn Out, and (B) payments in respect of the Subordinated Indebtedness prohibited by the subordination provisions thereof;

  (iii)	regularly schedule payments in respect of the Optellian Earn Out so long as (A) no Event of Default has occurred and is continuing or would result immediately after giving effect to such payment, and (B) at the time of such payment and after giving pro forma effect thereto the Borrower is in compliance with the financial covenants set forth in Section 6.12;

  (iv)	refinancings of Indebtedness to the extent permitted by Section 6.01; 

  (v)	payment of secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness to the extent such sale or transfer is permitted by the terms of Section 6.05; and

  (vi)	other payments of Indebtedness permitted to be outstanding pursuant to Sections 6.01(b) (to the extent related to intercompany Indebtedness, earn-out and similar obligations related to Investments, Capital Lease Obligations or purchase money Indebtedness), (c), (e), (f) (to the extent the Refinance Indebtedness relates to another clause referenced in this clause (vi)), (j), (k), (l) or (m) (to the extent related to intercompany indebtedness, earn-out and similar obligations related to Investments, Capital Lease Obligations or purchase money Indebtedness), so long as, in each case with respect to this Section 6.08(b)(vi), (A) no Event of Default has occurred and is continuing or would result immediately after giving effect to such payment, and (B) at the time of such payment and after giving pro forma effect thereto the Borrower is in compliance with the financial covenants set forth in Section 6.12.

  SECTION 6.09  Transactions with Affiliates.  No Loan Party will, nor will it permit any Subsidiary to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other transactions with, in any case with any of its Affiliates, except (a) transactions that (i) are in the ordinary course of business or are immaterial and (ii) are at prices and on terms and conditions not less favorable to such Loan Party or such Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties, (b) transactions between or among the Loan Parties not involving any other Affiliate, (c) any Investment permitted by Sections 6.04(c), 

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  6.04(d), or 6.04(e), (d) any Indebtedness permitted under Section 6.01(c), (e) any Disposition permitted pursuant to Section 6.05 (other than Section 6.05(b)(i)), (f) any Restricted Payment permitted by Section 6.08, (g) loans or advances to employees permitted under Section 6.04(f), (h) the payment of reasonable fees to directors of the Borrower or any Subsidiary who are not employees of the Borrower or any Subsidiary, and compensation and employee benefit arrangements paid to, and indemnities provided for the benefit of, directors, officers or employees of the Borrower or its Subsidiaries in the ordinary course of business, (i) any issuances of securities or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment agreements, stock options and stock ownership plans approved by the Borrower’s board of directors, and (j) any transactions pursuant to any agreement listed on Schedule 6.09.

  SECTION 6.10  Restrictive Agreements.  No Loan Party will, nor will it permit any Subsidiary to, enter into, incur or permit to exist any agreement or other arrangement that prohibits, restricts or imposes any condition upon (a) the ability of such Loan Party or any Subsidiary to create, incur or permit to exist any Lien upon any of its property or assets constituting Collateral, or (b) the ability of any Subsidiary to pay dividends or other distributions with respect to any Equity Interests or to make or repay loans or advances to the Borrower or any other Subsidiary or to Guarantee any Indebtedness of the Borrower or any other Subsidiary; provided that (i) the foregoing shall not apply to restrictions and conditions imposed by any Requirement of Law, the charter, articles or certificate of organization and bylaws or other organizational or governing documents of such Loan Party or Subsidiary or by any Loan Document, (ii) the foregoing shall not apply to restrictions and conditions existing on the date hereof identified on Schedule 6.10 (but shall apply to any extension or renewal of, or any amendment or modification expanding the scope of, any such restriction or condition), (iii) the foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending such sale, provided such restrictions and conditions apply only to the Subsidiary that is to be sold and such sale is permitted hereunder, (iv) the foregoing shall not apply to any agreement in effect at the time any Subsidiary becomes a Subsidiary, so long such agreement was not entered into solely in contemplation of such Person becoming a Subsidiary (but shall apply to any extension or renewal of, or any amendment or modification expanding the scope of, any such restriction or condition), (v) clause (a) of the foregoing shall not apply to restrictions or conditions imposed by any agreement relating to secured Indebtedness permitted by this Agreement if such restrictions or conditions apply only to the property or assets securing such Indebtedness and (vi) clause (a) of the foregoing shall not apply to customary provisions in leases restricting the assignment thereof.

  SECTION 6.11  Amendment of Material Documents.  No Loan Party will, nor will it permit any Subsidiary to, amend, modify or waive any of its rights under (a) any agreement relating to any Subordinated Indebtedness, or (b) its charter, articles or certificate of organization or incorporation and bylaws or operating, management or partnership agreement, or other organizational or governing documents, to the extent any such amendment, modification or waiver would be materially adverse to the Lenders.

  SECTION 6.12  Financial Covenants.  

  (a)	Leverage Ratio.  The Borrower will not permit the Leverage Ratio, on the last day of any fiscal quarter of the Borrower during the term of this Agreement, to be greater than the ratio set forth below opposite such period below:

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	Fiscal Quarters Ending
	Leverage Ratio

	June 30, 2022 and September 30, 2022
	3.00 to 1.00

	December 31, 2022 through September 30, 2023
	2.50 to 1.00

	December 31, 2023 and thereafter
	2.00 to 1.00

  (b)	Fixed Charge Coverage Ratio.  The Borrower will not permit the Fixed Charge Coverage Ratio, on the last day of any fiscal quarter of the Borrower during the term of this Agreement and calculated for the period of the four consecutive fiscal quarters ending on such date, to be less than 1.25 to 1.00.

  ARTICLE VII.
Events of Default

  If any of the following events (“Events of Default”) shall occur:

  (a)	the Borrower shall fail to pay any principal of any Loan or any reimbursement obligation in respect of any LC Disbursement when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise;

  (b)	the Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in clause (a) of this Article) payable under this Agreement or any other Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three Business Days;

  (c)	any representation or warranty made or deemed made by or on behalf of any Loan Party or any Subsidiary in, or in connection with, this Agreement or any other Loan Document or any amendment or modification hereof or thereof or waiver hereunder or thereunder, or in any report, certificate, financial statement or other document furnished to the Administrative Agent or any Lender by any Loan Party or any Subsidiary pursuant to or in connection with this Agreement or any other Loan Document or any amendment or modification hereof or thereof or waiver hereunder or thereunder, shall prove to have been materially incorrect when made or deemed made;

  (d)	any Loan Party shall fail to observe or perform any covenant, condition or agreement contained in Section 5.02(a), 5.03 (with respect to the Borrower’s existence) or 5.08 or in Article VI;

  (e)	any Loan Party shall fail to observe or perform any covenant, condition or agreement contained in this Agreement (other than those which constitute a default under another clause of this Article), and such failure shall continue unremedied for a period of (i) 5 Business Days after the earlier of any Loan Party’s knowledge of such breach or notice thereof from the Administrative Agent (which notice will be given at the request of any Lender) if such breach relates to terms or provisions of Section 5.01, 5.02 (other than Section 5.02(a)), 5.03, 5.04, 5.06(b), 5.07, 5.10, or 5.13 of this Agreement or (ii) 30 days after the earlier of any Loan Party’s knowledge of such breach or notice thereof from the Administrative Agent (which notice will be given at the request of any Lender) if such breach relates to terms or provisions of any other Section of this Agreement;

  (f)	any Loan Party or any Subsidiary shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Indebtedness, when and as the same shall become due and payable beyond any period of grace provided with respect thereto;

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  (g)	(i) any event or condition occurs that results in any Material Indebtedness becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf to cause any Material Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided that this clause (g) shall not apply to (I) Material Indebtedness that becomes due upon the delivery of a voluntary notice of prepayment (to the extent that such prepayment is permitted under this Agreement) or (II) secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness to the extent such sale or transfer is permitted by Section 6.05, or (ii) there occurs under any Swap Agreement an Early Termination Date (or similar term, as defined in such Swap Agreement) resulting from (A) an event of default under such Swap Agreement as to which a Loan Party or a Subsidiary is the Defaulting Party (or similar term, as defined in such Swap Agreement) or (B) any Termination Event (or similar term, as defined in such Swap Agreement) under such Swap Agreement (with or without the giving of notice, the lapse of time or both), and, in either event, the maximum aggregate payment owed by the applicable Loan Party or Subsidiary thereunder (giving effect to any netting agreements) exceeds $10,000,000;

  (h)	an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization or other relief in respect of a Loan Party or Subsidiary or its debts, or of a substantial part of its assets, under any federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for any Loan Party or any Subsidiary or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing shall be entered;

  (i)	any Loan Party or any Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (h) of this Article, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for such Loan Party or Subsidiary of any Loan Party or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing;

  (j)	any Loan Party or any Subsidiary shall become unable, admit in writing its inability, or publicly declare its intention not to, or fail generally, to pay its debts as they become due;

  (k)	one or more judgments for the payment of money in an aggregate amount in excess of $10,000,000 shall be rendered against any Loan Party, any Subsidiary or any combination thereof and the same shall remain undischarged for a period of 30 consecutive days during which execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy upon any assets of any Loan Party or any Subsidiary to enforce any such judgment or any Loan Party or any Subsidiary shall fail within 30 days to discharge one or more non-monetary judgments or orders which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, which judgments or orders, in any such case, are not stayed on appeal or otherwise being appropriately contested in good faith by proper proceedings diligently pursued;

  (l)	an ERISA Event shall have occurred that, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in liability of the Loan Parties and their Subsidiaries in an aggregate amount exceeding $10,000,000;

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  (m)	a Change in Control shall occur;

  (n)	the occurrence of any “default”, as defined in any Loan Document (other than this Agreement), or the breach of any of the terms or provisions of any Loan Document (other than this Agreement), which default or breach continues beyond any period of grace therein provided;

  (o)	the Loan Guaranty shall fail to remain in full force or effect or any action shall be taken to discontinue or to assert the invalidity or unenforceability of the Loan Guaranty, or any Guarantor shall fail to comply with any of the terms or provisions of the Loan Guaranty to which it is a party, or any Guarantor shall deny that it has any further liability under the Loan Guaranty to which it is a party, or shall give notice to such effect, including, but not limited to notice of termination delivered pursuant to Section 10.08;

  (p)	except as permitted by the terms of any Collateral Document, (i) any Collateral Document shall for any reason fail to create a valid security interest in any material portion of the Collateral purported to be covered thereby or (ii) any Lien on any material portion of the Collateral securing any Secured Obligation shall cease to be a perfected, first priority Lien, except to the extent (x) any such loss of perfection or priority results from the failure of the Administrative Agent to maintain possession of certificates actually delivered to it representing securities pledged under the Security Agreement or (y) such loss of perfected security interest may be remedied by the filing of appropriate documentation without the loss of priority and such loss is promptly remedied by such filing;

  (q)	any Collateral Document shall fail to remain in full force or effect or any action shall be taken by any Loan Party or any Affiliate of any Loan Party to discontinue or to assert the invalidity or unenforceability of any Collateral Document; or

  (r)	any material provision of any Loan Document for any reason ceases to be valid, binding and enforceable in accordance with its terms (other than solely as a result of acts or omissions on the part of the Administrative Agent, any Lender or their respective counsel) or any Loan Party shall challenge the enforceability of any Loan Document or shall assert in writing, or engage in any action or inaction that evidences its assertion, that any material provision of any of the Loan Documents has ceased to be or otherwise is not valid, binding and enforceable in accordance with its terms;

  then, and in every such event (other than an event with respect to the Borrower described in clause (h) or (i) of this Article), and at any time thereafter during the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to the Borrower, take either or both of the following actions, at the same or different times:  (i) terminate the Commitments, whereupon the Commitments shall terminate immediately, (ii) declare the Loans then outstanding to be due and payable in whole (or in part, but ratably as among the Classes of Loans and the Loans of each Class at the time outstanding, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), whereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees (including, for the avoidance of doubt, any break funding payment) and other obligations of the Borrower accrued hereunder and under any other Loan Document, shall become due and payable immediately, in each case without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Borrower, and (iii) require cash collateral for the LC Exposure in accordance with Section 2.06(j) hereof; and in the case of any event with respect to the Borrower described in clause (h) or (i) of this Article, the Commitments shall automatically terminate and the principal of the Loans then outstanding, and cash collateral for the LC Exposure, together with accrued interest thereon and all fees (including, for the avoidance of doubt, any break funding payments) and other obligations of the Borrower accrued hereunder and under any other Loan Documents, shall automatically become due and payable, in each case without presentment, demand, protest or other notice of any kind, all 

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  of which are hereby waived by the Borrower.  Upon the occurrence and during the continuance of an Event of Default, the Administrative Agent may, and at the request of the Required Lenders shall, increase the rate of interest applicable to the Loans and other Obligations as set forth in this Agreement and exercise any rights and remedies provided to the Administrative Agent under the Loan Documents or at law or equity, including all remedies provided under the UCC.

  ARTICLE VIII.
The Administrative Agent

  SECTION 8.01  Authorization and Action.  

  (a)	Each Lender, on behalf of itself and any of its Affiliates that are Secured Parties, and each Issuing Bank hereby irrevocably appoints the entity named as Administrative Agent in the heading of this Agreement and its successors and assigns to serve as the administrative agent and collateral agent under the Loan Documents and each Lender and each Issuing Bank authorizes the Administrative Agent to take such actions as agent on its behalf and to exercise such powers under this Agreement and the other Loan Documents as are delegated to the Administrative Agent under such agreements and to exercise such powers as are reasonably incidental thereto.  In addition, to the extent required under the laws of any jurisdiction other than within the United States, each Lender and each Issuing Bank hereby grants to the Administrative Agent any required powers of attorney to execute and enforce any Collateral Document governed by the laws of such jurisdiction on such Lender’s or such Issuing Bank’s behalf.  Without limiting the foregoing, each Lender and each Issuing Bank hereby authorizes the Administrative Agent to execute and deliver, and to perform its obligations under, each of the Loan Documents to which the Administrative Agent is a party, and to exercise all rights, powers and remedies that the Administrative Agent may have under such Loan Documents.

  (b)	As to any matters not expressly provided for herein and in the other Loan Documents (including enforcement or collection), the Administrative Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the written instructions of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, pursuant to the terms in the Loan Documents), and, unless and until revoked in writing, such instructions shall be binding upon each Lender and each Issuing Bank; provided, however, that the Administrative Agent shall not be required to take any action that (i) the Administrative Agent in good faith believes exposes it to liability unless the Administrative Agent receives an indemnification and is exculpated in a manner satisfactory to it from the Lenders and the Issuing Banks with respect to such action or (ii) is contrary to this Agreement or any other Loan Document or applicable law, including any action that may be in violation of the automatic stay under any requirement of law relating to bankruptcy, insolvency or reorganization or relief of debtors or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any requirement of law relating to bankruptcy, insolvency or reorganization or relief of debtors; provided, further, that the Administrative Agent may seek clarification or direction from the Required Lenders prior to the exercise of any such instructed action and may refrain from acting until such clarification or direction has been provided.  Except as expressly set forth in the Loan Documents, the Administrative Agent shall not have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower, any other Loan Party, any Subsidiary or any Affiliate of any of the foregoing that is communicated to or obtained by the Person serving as Administrative Agent or any of its Affiliates in any capacity.  Nothing in this Agreement shall require the Administrative Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

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  (c)	In performing its functions and duties hereunder and under the other Loan Documents, the Administrative Agent is acting solely on behalf of the Lenders and the Issuing Banks (except in limited circumstances expressly provided for herein relating to the maintenance of the Register), and its duties are entirely mechanical and administrative in nature.  Without limiting the generality of the foregoing:

  (i)	the Administrative Agent does not assume and shall not be deemed to have assumed any obligation or duty or any other relationship as the agent, fiduciary or trustee of or for any Lender, Issuing Bank, any other Secured Party or holder of any other obligation other than as expressly set forth herein and in the other Loan Documents, regardless of whether a Default or an Event of Default has occurred and is continuing (and it is understood and agreed that the use of the term “agent” (or any similar term) herein or in any other Loan Document with reference to the Administrative Agent is not intended to connote any fiduciary duty or other implied (or express) obligations arising under agency doctrine of any applicable law, and that such term is used as a matter of market custom and is intended to create or reflect only an administrative relationship between contracting parties); additionally, each Lender agrees that it will not assert any claim against the Administrative Agent based on an alleged breach of fiduciary duty by the Administrative Agent in connection with this Agreement and/or the transactions contemplated hereby; and

  (ii)	nothing in this Agreement or any Loan Document shall require the Administrative Agent to account to any Lender for any sum or the profit element of any sum received by the Administrative Agent for its own account.

  (d)	The Administrative Agent may perform any of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such sub-agent may perform any of their respective duties and exercise their respective rights and powers through their respective Related Parties.  The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities pursuant to this Agreement.  The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agent except to the extent that a court of competent jurisdiction determines in a final and non-appealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agent.

  (e)	In case of the pendency of any proceeding with respect to any Loan Party under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, the Administrative Agent (irrespective of whether the principal of any Loan or any reimbursement obligation in respect of any LC Disbursement shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:

  (i)	to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, LC Disbursements 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 Issuing Banks and the Administrative Agent (including any claim under Sections 2.12, 2.13, 2.15, 2.17 and 9.03) allowed in such judicial proceeding; and

  (ii)	to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

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  and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such proceeding is hereby authorized by each Lender, each Issuing Bank and each other Secured Party to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, the Issuing Banks or the other Secured Parties, to pay to the Administrative Agent any amount due to it, in its capacity as the Administrative Agent, under the Loan Documents (including under Section 9.03).  Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender or Issuing Bank any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or Issuing Bank or to authorize the Administrative Agent to vote in respect of the claim of any Lender or Issuing Bank in any such proceeding.

  (f)	The provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and the Issuing Banks, and, except solely to the extent of the Borrower’s rights to consent pursuant to and subject to the conditions set forth in this Article, none of the Borrower or any Subsidiary, or any of their respective Affiliates, shall have any rights as a third party beneficiary under any such provisions.  Each Secured Party, whether or not a party hereto, will be deemed, by its acceptance of the benefits of the Collateral and of the Guarantees of the Secured Obligations provided under the Loan Documents, to have agreed to the provisions of this Article.

  SECTION 8.02  Administrative Agent’s Reliance, Limitation of Liability, Etc.  

  (a)	Neither the Administrative Agent nor any of its Related Parties shall be (i) liable for any action taken or omitted to be taken by such party, the Administrative Agent or any of its Related Parties under or in connection with this Agreement or the other Loan Documents (x) with the consent of or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith to be necessary, under the circumstances as provided in the Loan Documents) or (y) in the absence of its own gross negligence or willful misconduct (such absence to be presumed unless otherwise determined by a court of competent jurisdiction by a final and non-appealable judgment) or (ii) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by any Loan Party or any officer thereof contained in this Agreement or any other Loan Document or in any certificate, report, statement or other document referred to or provided for in, or received by the Administrative Agent under or in connection with, this Agreement or any other Loan Document or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document (including, for the avoidance of doubt, in connection with the Administrative Agent’s reliance on any Electronic Signature transmitted by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page) or for any failure of any Loan Party to perform its obligations hereunder or thereunder.

  (b)	The Administrative Agent shall be deemed not to have knowledge of any (x) notice of any of the events or circumstances set forth or described in Section 5.02 unless and until written notice thereof stating that it is a “notice under Section 5.02” in respect of this Agreement and identifying the specific clause under said Section is given to the Administrative Agent by the Borrower, or (y) notice of any Default or Event of Default unless and until written notice thereof (stating that it is a “notice of Default” or a “notice of an Event of Default”) is given to the Administrative Agent by the Borrower, a Lender or an Issuing Bank.  Further, the Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with any Loan Document, (ii) the contents of any certificate, report or other document delivered thereunder or in connection therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth in any Loan Document or the occurrence of any Default or Event of Default, (iv) the sufficiency, validity, enforceability, effectiveness or genuineness of any Loan Document or any other agreement, instrument or document, (v) the satisfaction of any condition set forth in Article IV or 

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  elsewhere in any Loan Document, other than to confirm receipt of items (which on their face purport to be such items) expressly required to be delivered to the Administrative Agent or satisfaction of any condition that expressly refers to the matters described therein being acceptable or satisfactory to the Administrative Agent, or (vi) the creation, perfection or priority of Liens on the Collateral.  Notwithstanding anything herein to the contrary, the Administrative Agent shall not be liable for, or be responsible for any Liabilities, costs or expenses suffered by the Borrower, any Subsidiary, any Lender or any Issuing Bank as a result of, any determination of the Revolving Exposure, any of the component amounts thereof or any portion thereof attributable to each Lender or Issuing Bank, or any Dollar Equivalent.

  (c)	Without limiting the foregoing, the Administrative Agent (i) may treat the payee of any promissory note as its holder until such promissory note has been assigned in accordance with Section 9.04, (ii) may rely on the Register to the extent set forth in Section 9.04(b), (iii) may consult with legal counsel (including counsel to the Borrower), independent public accountants and other experts selected by it, and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts, (iv) makes no warranty or representation to any Lender or Issuing Bank and shall not be responsible to any Lender or Issuing Bank for any statements, warranties or representations made by or on behalf of any Loan Party in connection with this Agreement or any other Loan Document, (v) 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 an Issuing Bank, may presume that such condition is satisfactory to such Lender or Issuing Bank unless the Administrative Agent shall have received notice to the contrary from such Lender or Issuing Bank sufficiently in advance of the making of such Loan or the issuance of such Letter of Credit and (vi) shall be entitled to rely on, and shall incur no liability under or in respect of this Agreement or any other Loan Document by acting upon, any notice, consent, certificate or other instrument or writing (which writing may be a fax, any electronic message, Internet or intranet website posting or other distribution) or any statement made to it orally or by telephone and believed by it to be genuine and signed or sent or otherwise authenticated by the proper party or parties (whether or not such Person in fact meets the requirements set forth in the Loan Documents for being the maker thereof).

  SECTION 8.03  Posting of Communications.  

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

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

  (c)	THE APPROVED ELECTRONIC PLATFORM AND THE COMMUNICATIONS ARE PROVIDED “AS IS” AND “AS AVAILABLE”.  THE APPLICABLE PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE 

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  COMMUNICATIONS, OR THE ADEQUACY OF THE APPROVED ELECTRONIC PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE APPROVED ELECTRONIC PLATFORM AND THE COMMUNICATIONS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE APPLICABLE PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE APPROVED ELECTRONIC PLATFORM.  IN NO EVENT SHALL THE ADMINISTRATIVE AGENT, ANY ARRANGER, OR ANY OF THEIR RESPECTIVE RELATED PARTIES (COLLECTIVELY, “APPLICABLE PARTIES”) HAVE ANY LIABILITY TO ANY LOAN PARTY, ANY LENDER, ANY ISSUING BANK OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF ANY LOAN PARTY’S OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET OR THE APPROVED ELECTRONIC PLATFORM.

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

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

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

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

  SECTION 8.04  The Administrative Agent Individually.  With respect to its Commitment, Loans and Letters of Credit, the Person serving as the Administrative Agent shall have and may exercise the same rights and powers hereunder and is subject to the same obligations and liabilities as and to the extent set forth herein for any other Lender or Issuing Bank, as the case may be.  The terms “Issuing Banks”, “Lenders”, “Required Lenders” and any similar terms shall, unless the context clearly otherwise indicates, include the Administrative Agent in its individual capacity as a Lender, Issuing Bank or as one of the Required Lenders, as applicable.  The Person serving as the Administrative Agent and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of banking, trust or other business with, any Loan Party, any Subsidiary or any Affiliate of any of the foregoing as if such Person was not acting as the Administrative Agent and without any duty to account therefor to the Lenders or the Issuing Banks.

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  SECTION 8.05  Successor Administrative Agent.  

  (a)	The Administrative Agent may resign at any time by giving 30 days’ prior written notice thereof to the Lenders, the Issuing Banks and the Borrower, whether or not a successor Administrative Agent has been appointed.  Upon any such resignation, the Required Lenders shall have the right to appoint a successor Administrative Agent.  If no successor Administrative Agent shall have been so appointed by the Required Lenders, and shall have accepted such appointment, within 30 days after the retiring Administrative Agent’s giving of notice of resignation, then the retiring Administrative Agent may, on behalf of the Lenders and the Issuing Banks, appoint a successor Administrative Agent, which shall be a bank.  In either case, such appointment shall be subject to the prior written approval of the Borrower (which approval may not be unreasonably withheld and shall not be required while an Event of Default has occurred and is continuing).  Upon the acceptance of any appointment as Administrative Agent by a successor Administrative Agent, such successor Administrative Agent shall succeed to, and become vested with, all the rights, powers, privileges and duties of the retiring Administrative Agent.  Upon the acceptance of appointment as Administrative Agent by a successor Administrative Agent, the retiring Administrative Agent shall be discharged from its duties and obligations under this Agreement and the other Loan Documents.  Prior to any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the retiring Administrative Agent shall take such action as may be reasonably necessary to assign to the successor Administrative Agent its rights as Administrative Agent under the Loan Documents.

  (b)	Notwithstanding paragraph (a) of this Section, in the event no successor Administrative Agent shall have been so appointed and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its intent to resign, the retiring Administrative Agent may give notice of the effectiveness of its resignation to the Lenders, the Issuing Banks and the Borrower, whereupon, on the date of effectiveness of such resignation stated in such notice, (i) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents; provided that, solely for purposes of maintaining any security interest granted to the Administrative Agent under any Collateral Document for the benefit of the Secured Parties, the retiring Administrative Agent shall continue to be vested with such security interest as collateral agent for the benefit of the Secured Parties, and continue to be entitled to the rights set forth in such Collateral Document and Loan Document, and, in the case of any Collateral in the possession of the Administrative Agent, shall continue to hold such Collateral, in each case until such time as a successor Administrative Agent is appointed and accepts such appointment in accordance with this Section (it being understood and agreed that the retiring Administrative Agent shall have no duty or obligation to take any further action under any Collateral Document, including any action required to maintain the perfection of any such security interest), and (ii) the Required Lenders shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent; provided that (A) all payments required to be made hereunder or under any other Loan Document to the Administrative Agent for the account of any Person other than the Administrative Agent shall be made directly to such Person and (B) all notices and other communications required or contemplated to be given or made to the Administrative Agent shall directly be given or made to each Lender and each Issuing Bank.  Following the effectiveness of the Administrative Agent’s resignation from its capacity as such, the provisions of this Article, Section 2.17(d) and Section 9.03, as well as any exculpatory, reimbursement and indemnification provisions set forth in any other Loan Document, shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Administrative Agent was acting as Administrative Agent and in respect of the matters referred to in the proviso under clause (a) above.

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  SECTION 8.06  Acknowledgements of Lenders and Issuing Banks.  

  (a)	Each Lender and each Issuing Bank represents and warrants that (i) the Loan Documents set forth the terms of a commercial lending facility, (ii) it is engaged in making, acquiring or holding commercial loans and in providing other facilities set forth herein as may be applicable to such Lender or Issuing Bank, in each case in the ordinary course of business, and not for the purpose of purchasing, acquiring or holding any other type of financial instrument (and each Lender and each Issuing Bank agrees not to assert a claim in contravention of the foregoing),(iii) it has, independently and without reliance upon the Administrative Agent or any other Lender or Issuing Bank, or any of the Related Parties of any of the foregoing, and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement as a Lender, and to make, acquire or hold Loans hereunder and (iv) it is sophisticated with respect to decisions to make, acquire and/or hold commercial loans and to provide other facilities set forth herein, as may be applicable to such Lender or such Issuing Bank, and either it, or the Person exercising discretion in making its decision to make, acquire and/or hold such commercial loans or to provide such other facilities, is experienced in making, acquiring or holding such commercial loans or providing such other facilities.  Each Lender and each Issuing Bank also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or Issuing Bank, or any of the Related Parties of any of the foregoing, and based on such documents and information (which may contain material, non-public information within the meaning of the United States securities laws concerning the Borrower and its Affiliates) as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.

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

  (i)	Each Lender hereby agrees that (x) if the Administrative Agent notifies such Lender that the Administrative Agent has determined in its sole discretion that any funds received by such Lender from the Administrative Agent or any of its Affiliates (whether as a payment, prepayment or repayment of principal, interest, fees or otherwise; individually and collectively, a “Payment”) were erroneously transmitted to such Lender (whether or not known to such Lender), and demands the return of such Payment (or a portion thereof), such Lender shall promptly, but in no event later than one Business Day thereafter, return to the Administrative Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds, together with interest thereon in respect of each day from and including the date such Payment (or portion thereof) was received by such Lender to the date such amount is repaid to the Administrative Agent at the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect, and (y) to the extent permitted by applicable law, such Lender shall not assert, and hereby waives, as to the Administrative Agent, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Payments received, including without limitation any defense based on “discharge for value” or any similar doctrine.  A notice of the Administrative Agent to any Lender under this Section 8.06(c) shall be conclusive, absent manifest error.

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  (ii)	Each Lender hereby further agrees that if it receives a Payment from the Administrative 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 sent by the Administrative Agent (or any of its Affiliates) with respect to such Payment (a “Payment Notice”) or (y) that was not preceded or accompanied by a Payment Notice, it shall be on notice, in each such case, that an error has been made with respect to such Payment.  Each Lender agrees that, in each such case, or if it otherwise becomes aware a Payment (or portion thereof) may have been sent in error, such Lender shall promptly notify the Administrative Agent of such occurrence and, upon demand from the Administrative Agent, it shall promptly, but in no event later than one Business Day thereafter, return to the Administrative Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds, together with interest thereon in respect of each day from and including the date such Payment (or portion thereof) was received by such Lender to the date such amount is repaid to the Administrative Agent at the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect.

  (iii)	The Borrower and each other Loan Party hereby agrees that (x) in the event an erroneous Payment (or portion thereof) is not recovered from any Lender that has received such Payment (or portion thereof) for any reason, the Administrative Agent shall be subrogated to all the rights of such Lender with respect to such amount and (y) an erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Borrower or any other Loan Party.

  (iv)	Each party’s obligations under this Section 8.06(c) shall survive the resignation or replacement of the Administrative Agent or any transfer of rights or obligations by, or the replacement of, a Lender, the termination of the Commitments or the repayment, satisfaction or discharge of all Obligations under any Loan Document.

  (c)	Each Lender hereby agrees that (i) it has requested a copy of each Report prepared by or on behalf of the Administrative Agent; (ii) the Administrative Agent (A) makes no representation or warranty, express or implied, as to the completeness or accuracy of any Report or any of the information contained therein or any inaccuracy or omission contained in or relating to a Report and (B) shall not be liable for any information contained in any Report; (iii) the Reports are not comprehensive audits or examinations, and that any Person performing any field 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 and that the Administrative Agent undertakes no obligation to update, correct or supplement the Reports; (iv) it will keep all Reports confidential and strictly for its internal use, not share the Report with any Loan Party or any other Person except as otherwise permitted pursuant to this Agreement; and (v) without limiting the generality of any other indemnification provision contained in this Agreement, (A) it will hold the Administrative Agent and any such other Person 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 extension of credit that the indemnifying Lender has made or may make to the Borrower, or the indemnifying Lender’s participation in, or the indemnifying Lender’s purchase of, a Loan or Loans; and (B) it will pay and protect, and indemnify, defend, and hold the Administrative Agent and any such other Person preparing a Report harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts (including reasonable attorneys’ fees) incurred by the Administrative Agent or any such other Person as the direct or indirect result of any third parties who might obtain all or part of any Report through the indemnifying Lender.

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  SECTION 8.07  Collateral Matters.  

  (a)	Except with respect to the exercise of setoff rights in accordance with Section 9.08 or with respect to a Secured Party’s right to file a proof of claim in an insolvency proceeding, no Secured Party shall have any right individually to realize upon any of the Collateral or to enforce any Guarantee of the Secured Obligations, it being understood and agreed that all powers, rights and remedies under the Loan Documents may be exercised solely by the Administrative Agent on behalf of the Secured Parties in accordance with the terms thereof.  In its capacity, the Administrative Agent is a “representative” of the Secured Parties within the meaning of the term “secured party” as defined in the UCC.  In the event that any Collateral is hereafter pledged by any Person as collateral security for the Secured Obligations, the Administrative Agent is hereby authorized, and hereby granted a power of attorney, to execute and deliver on behalf of the Secured Parties any Loan Documents necessary or appropriate to grant and perfect a Lien on such Collateral in favor of the Administrative Agent on behalf of the Secured Parties.

  (b)	In furtherance of the foregoing and not in limitation thereof, no arrangements in respect of Banking Services the obligations under which constitute Secured Obligations and no Swap Agreement the obligations under which constitute Secured Obligations, will create (or be deemed to create) in favor of any Secured Party that is a party thereto any rights in connection with the management or release of any Collateral or of the obligations of any Loan Party under any Loan Document.  By accepting the benefits of the Collateral, each Secured Party that is a party to any such arrangement in respect of Banking Services or Swap Agreement, as applicable, shall be deemed to have appointed the Administrative Agent to serve as administrative agent and collateral agent under the Loan Documents and agreed to be bound by the Loan Documents as a Secured Party thereunder, subject to the limitations set forth in this paragraph.

  (c)	The Secured Parties irrevocably authorize the Administrative Agent, at its option and in its discretion, to subordinate any Lien on any property granted to or held by the Administrative Agent under any Loan Document to the holder of any Lien on such property that is permitted by Section 6.02(b).  The Administrative Agent shall not be responsible for or have a duty to ascertain or inquire into any representation or warranty regarding the existence, value or collectability of the Collateral, the existence, priority or perfection of the Administrative Agent’s Lien thereon or any certificate prepared by any Loan Party in connection therewith, nor shall the Administrative Agent be responsible or liable to the Lenders or any other Secured Party for any failure to monitor or maintain any portion of the Collateral.

  SECTION 8.08  Credit Bidding.  The Secured Parties hereby irrevocably authorize the Administrative Agent, at the direction of the Required Lenders, to credit bid all or any portion of the Obligations (including by accepting some or all of the Collateral in satisfaction of some or all of the Obligations pursuant to a deed in lieu of foreclosure or otherwise) and in such manner purchase (either directly or through one or more acquisition vehicles) all or any portion of the Collateral (a) at any sale thereof conducted under the provisions of the Bankruptcy Code, including under Sections 363, 1123 or 1129 of the Bankruptcy Code, or any similar laws in any other jurisdictions to which a Loan Party is subject, or (b) at any other sale, foreclosure or acceptance of collateral in lieu of debt conducted by (or with the consent or at the direction of) the Administrative Agent (whether by judicial action or otherwise) in accordance with any applicable law.  In connection with any such credit bid and purchase, the Obligations owed to the Secured Parties shall be credit bid by the Administrative Agent at the direction of the Required Lenders on a ratable basis (with Obligations with respect to contingent or unliquidated claims receiving contingent interests in the acquired assets on a ratable basis that shall vest upon the liquidation of such claims in an amount proportional to the liquidated portion of the contingent claim amount used in allocating the contingent interests) for the asset or assets so purchased (or for the equity interests or debt instruments of the acquisition vehicle or vehicles that are issued in connection with such purchase).  In connection with any such bid (i) the Administrative Agent shall be authorized to form one or more acquisition vehicles and to assign any successful credit bid to such acquisition vehicle or vehicles, (ii) each of the Secured Parties’ 

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  ratable interests in the Obligations which were credit bid shall be deemed without any further action under this Agreement to be assigned to such vehicle or vehicles for the purpose of closing such sale, (iii) the Administrative Agent shall be authorized to adopt documents providing for the governance of the acquisition vehicle or vehicles (provided that any actions by the Administrative Agent with respect to such acquisition vehicle or vehicles, including any disposition of the assets or equity interests thereof, shall be governed, directly or indirectly, by, and the governing documents shall provide for, control by the vote of the Required Lenders or their permitted assignees under the terms of this Agreement or the governing documents of the applicable acquisition vehicle or vehicles, as the case may be, irrespective of the termination of this Agreement and without giving effect to the limitations on actions by the Required Lenders contained in Section 9.02 of this Agreement), (iv) the Administrative Agent on behalf of such acquisition vehicle or vehicles shall be authorized to issue to each of the Secured Parties, ratably on account of the relevant Obligations which were credit bid, interests, whether as equity, partnership interests, limited partnership interests or membership interests, in any such acquisition vehicle and/or debt instruments issued by such acquisition vehicle, all without the need for any Secured Party or acquisition vehicle to take any further action, and (v) to the extent that Obligations that are assigned to an acquisition vehicle are not used to acquire Collateral for any reason, such Obligations shall automatically be reassigned to the Secured Parties pro rata with their original interest in such Obligations and the equity interests and/or debt instruments issued by any acquisition vehicle on account of such Obligations shall automatically be cancelled, without the need for any Secured Party or any acquisition vehicle to take any further action.  Notwithstanding that the ratable portion of the Obligations of each Secured Party are deemed assigned to the acquisition vehicle or vehicles as set forth in clause (ii) above, each Secured Party shall execute such documents and provide such information regarding the Secured Party (and/or any designee of the Secured Party which will receive interests in or debt instruments issued by such acquisition vehicle) as the Administrative Agent may reasonably request in connection with the formation of any acquisition vehicle, the formulation or submission of any credit bid or the consummation of the transactions contemplated by such credit bid.

  SECTION 8.09  Certain ERISA Matters.  

  (a)	Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and its Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that at least one of the following is and will be true:

  (i)	such Lender is not using “plan assets” (within the meaning of the Plan Asset Regulations) of one or more Benefit Plans in connection with the Loans, the Letters of Credit or the Commitments,

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

  (iii)	(A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84‐14), (B) such Qualified 

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  Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Loans, the Letters of Credit, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84‐14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84‐14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement, or

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

  (b)	In addition, unless sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or such Lender has provided another representation, warranty and covenant as provided in sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of the Administrative Agent and its Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that none of the Administrative Agent or any of its Affiliates is a fiduciary with respect to the Collateral or the assets of such Lender (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related to hereto or thereto).

  (c)	The Administrative Agent hereby informs the Lenders that each such Person is not undertaking to provide investment advice or to give advice in a fiduciary capacity, in connection with the transactions contemplated hereby, and that such Person has a financial interest in the transactions contemplated hereby in that such Person or an Affiliate thereof (i) may receive interest or other payments with respect to the Loans, the Letters of Credit, the Commitments, this Agreement and any other Loan Documents, (ii) may recognize a gain if it extended the Loans, the Letters of Credit or the Commitments for an amount less than the amount being paid for an interest in the Loans, the Letters of Credit or the Commitments by such Lender or (iii) may receive fees or other payments in connection with the transactions contemplated hereby, the Loan Documents or otherwise, including structuring fees, commitment fees, arrangement fees, facility fees, upfront fees, underwriting fees, ticking fees, agency fees, administrative agent or collateral agent fees, utilization fees, minimum usage fees, letter of credit fees, fronting fees, deal-away or alternate transaction fees, amendment fees, processing fees, term out premiums, banker’s acceptance fees, breakage or other early termination fees or fees similar to the foregoing.

  SECTION 8.10  Flood Laws.  Chase has adopted internal policies and procedures that address requirements placed on federally regulated lenders under the National Flood Insurance Reform Act of 1994 and related legislation (the “Flood Laws”).  Chase, as administrative agent or collateral agent on a syndicated facility, will post on the applicable electronic platform (or otherwise distribute to each Lender in the syndicate) documents that it receives in connection with the Flood Laws.  However, Chase reminds each Lender and Participant in the facility that, pursuant to the Flood Laws, each federally regulated Lender (whether acting as a Lender or Participant in the facility) is responsible for assuring its own compliance with the flood insurance requirements.

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  ARTICLE IX.
Miscellaneous

  SECTION 9.01  Notices.  

  (a)	Except in the case of notices and other communications expressly permitted to be given by telephone or Electronic Systems (and subject in each case to paragraph (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 fax, as follows:

  (i)	if to any Loan Party, to it in care of the Borrower at:

  DZS Inc.
5700 Tennyson Parkway, Suite 400

  Plano, TX 75024
Attention: Misty Kawecki

  (ii)	if to the Administrative Agent, to JPMorgan Chase Bank, N.A. at:

  JPMorgan Chase Bank, N.A.
Middle Market Servicing
10 South Dearborn, Floor L2
Suite IL1-1145
Chicago, IL 60603-2300
Attention: John Marino

  Email: John.marino@chase.com 

  Facsimile: (844) 490-5663

  Telephone: (312) 732-6688

    

  With copies to:

  Shared Mailbox

  Client Processing Specialist

  JPM.Agency.Servicing.1@jpmorgan.com 

  and:

JPMorgan Chase Bank, N.A.
383 Madison Ave., Floor 22

  New York, NY 10017
Attention: Shiv Kariwala
Email: shiv.kariwala@jpmorgan.com 

  (iii)	if to Chase in its capacity as an Issuing Bank, to JPMorgan Chase Bank, N.A. at: 

  JPMorgan Chase Bank, N.A.

  LC Team

  10 S Dearborn St.

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  Chicago, IL 60603	 

  855-609-0059	 

  214-307-6874	 

  Chicago.LC.Agency.Activity.Team@JPMChase.com 

  With a copy to:

  JPMorgan Chase Bank, N.A.

  Attention: John Marino

  Email: John.marino@chase.com 

  Facsimile: (844) 490-5663

  Telephone: (312) 732-6688

  (iv)	if to any other Lender or Issuing Bank, to it at its address or fax number set forth in its Administrative Questionnaire.

  All such notices and other communications (A) sent by hand or overnight courier service, or mailed by certified or registered mail shall be deemed to have been given when received, (B) sent by fax shall be deemed to have been given when sent, provided that if not given during normal business hours for the recipient, such notice or communication shall be deemed to have been given at the opening of business on the next Business Day of the recipient, or (C) delivered through Electronic Systems or Approved Electronic Platforms, as applicable, to the extent provided in paragraph (b) below shall be effective as provided in such paragraph.

  (b)	Notices and other communications to the Borrower, any Loan Party, the Lenders and the Issuing Banks hereunder may be delivered or furnished by using Electronic Systems or Approved Electronic Platforms, as applicable, or pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to Article II or to compliance and no Default certificates delivered pursuant to Section 5.01 unless otherwise agreed by the Administrative Agent and the applicable Lender.  Each of the Administrative Agent and the Borrower (on behalf of the Loan Parties) may, in its discretion, agree to accept notices and other communications to it hereunder by using Electronic Systems or Approved Electronic Platforms, as applicable, pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.  Unless the Administrative Agent otherwise proscribes, all such notices and other communications (i) 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 not given during the normal business hours of the recipient, such notice or communication shall be deemed to have been given at the opening of business on the next Business Day for the recipient, and (ii) posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, e-mail 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 of the recipient.

  (c)	Any party hereto may change its address, facsimile number or e-mail address for notices and other communications hereunder by notice to the other parties hereto.

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  SECTION 9.02  Waivers; Amendments.  

  (a)	No failure or delay by the Administrative Agent, the Issuing Bank or any Lender in exercising any right or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The rights and remedies of the Administrative Agent, the Issuing Bank and the Lenders hereunder and under any other Loan Document are cumulative and are not exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of any Loan Document or consent to any departure by any Loan Party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  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, regardless of whether the Administrative Agent, any Lender or the Issuing Bank may have had notice or knowledge of such Default at the time.

  (b)	Subject to Sections 2.14(c), (d) and (e), Section 2.09(f) and Section 9.02(e) below, neither this Agreement nor any other Loan Document nor any provision hereof or thereof may be waived, amended or modified except: (i) in the case of this Agreement, pursuant to an agreement or agreements in writing entered into by the Borrower and the Required Lenders or (ii) in the case of any other Loan Document, pursuant to an agreement or agreements in writing entered into by the Administrative Agent and the Loan Party or Loan Parties that are parties thereto, with the consent of the Required Lenders; provided that no such agreement shall (A) increase the Commitment of any Lender without the written consent of such Lender (including any such Lender that is a Defaulting Lender), (B) reduce or forgive the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or reduce or forgive any interest or fees payable hereunder, without the written consent of each Lender (including any such Lender that is a Defaulting Lender) directly affected thereby (except that any amendment or modification of the financial covenants in this Agreement (or defined terms used in the financial covenants in this Agreement) shall not constitute a reduction in the rate of interest or fees for purposes of this clause (B)), (C) postpone any scheduled date of payment of the principal amount of any Loan or LC Disbursement, or any date for the payment of any interest, fees or other Obligations payable hereunder, or reduce the amount of, waive or excuse any such payment (other than, in each case, any prepayment required to be made pursuant to Section 2.11(c)), or postpone the scheduled date of expiration of any Commitment, without the written consent of each Lender (including any such Lender that is a Defaulting Lender) directly affected thereby, (D) change Section 2.09(c), Section 2.18(b) or Section 2.18(d) in a manner that would alter the ratable reduction of Commitments or the manner in which payments are shared, without the written consent of each Lender (other than any Defaulting Lender), (E) increase the advance rates set forth in the definition of Borrowing Base or add new categories of eligible assets, without the written consent of each Revolving Lender (other than any Defaulting Lender), (F) change any of the provisions of this Section or the definition of “Required Lenders” or any other provision of any Loan Document specifying the number or percentage of Lenders (or Lenders of any Class) required to waive, amend or modify any rights thereunder or make any determination or grant any consent thereunder, without the written consent of each Lender (other than any Defaulting Lender) directly affected thereby, (G) change Section 2.20, without the consent of each Lender (other than any Defaulting Lender), (H) release any Guarantor from its obligation under its Loan Guaranty (except as otherwise permitted herein or in the other Loan Documents), without the written consent of each Lender (other than any Defaulting Lender), (I) except as provided in clause (c) of this Section or in any Collateral Document, release all or substantially all of the Collateral without the written consent of each Lender (other than any Defaulting Lender), or (J) contractually subordinate any Obligations in right of payment to any other Indebtedness of the Loan Parties or contractually subordinate the Liens securing the Secured Obligations on all or substantially all of the Collateral to Liens on all or substantially all of the Collateral securing other Indebtedness or other obligations, in each case, without the written 

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  consent of each Lender; provided, further, that no such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative Agent or the Issuing Bank hereunder without the prior written consent of the Administrative Agent or the Issuing Bank, as the case may be (it being understood that any amendment to Section 2.20 shall require the consent of the Administrative Agent and the Issuing Bank); provided, further, that no such agreement shall amend or modify the provisions of Section 2.06 without the prior written consent of the Administrative Agent and the Issuing Banks.  The Administrative Agent may also amend the Commitment Schedule to reflect assignments entered into pursuant to Section 9.04.  Any amendment, waiver or other modification of this Agreement or any other Loan Document that by its terms affects the rights or duties under this Agreement of the Lenders of one or more Classes (but not the Lenders of any other Class), may be effected by an agreement or agreements in writing entered into by the Borrower and the requisite number or percentage in interest of each affected Class of Lenders that would be required to consent thereto under this Section if such Class of Lenders were the only Class of Lenders hereunder at the time.

  (c)	The Lenders and the Issuing Bank hereby irrevocably authorize the Administrative Agent, at its option and in its sole discretion, to release any Liens granted to the Administrative Agent by the Loan Parties on any Collateral (i) upon the Payment in Full of all Secured Obligations, (ii) constituting property being sold or disposed of if the Loan Party disposing of such property certifies to the Administrative Agent that the sale or disposition is made in compliance with the terms of this Agreement (and the Administrative Agent may rely conclusively on any such certificate, without further inquiry), and to the extent that the property being sold or disposed of constitutes 100% of the Equity Interests of a Subsidiary, the Administrative Agent is authorized to release any Loan Guaranty provided by such Subsidiary, (iii) constituting property leased to a Loan Party under a lease which has expired or been terminated in a transaction permitted under this Agreement, or (iv) as required to effect any sale or other disposition of such Collateral in connection with any exercise of remedies of the Administrative Agent and the Lenders pursuant to Article VII.  Except as provided in the preceding sentence, the Administrative Agent will not release any Liens on Collateral without the prior written authorization of the Required Lenders; provided that the Administrative Agent may, in its discretion, release its Liens on Collateral valued in the aggregate not in excess of $1,000,000 during any calendar year without the prior written authorization of the Required Lenders (it being agreed that the Administrative Agent may rely conclusively on one or more certificates of the Borrower as to the value of any Collateral to be so released, without further inquiry).  Any such release shall not in any manner discharge, affect, or impair the Obligations or any Liens (other than those expressly being released) upon (or obligations of the Loan Parties in respect of) all interests retained by the Loan Parties, including the proceeds of any sale, all of which shall continue to constitute part of the Collateral.  Any execution and delivery by the Administrative Agent of documents in connection with any such release shall be without recourse to or warranty by the Administrative Agent.

  (d)	If, in connection with any proposed amendment, waiver or consent requiring the consent of “each Lender” or “each Lender affected thereby,” the consent of the Required Lenders is obtained, but the consent of other necessary Lenders is not obtained (any such Lender whose consent is necessary but has not been obtained being referred to herein as a “Non-Consenting Lender”), then the Borrower may elect to replace a Non-Consenting Lender as a Lender party to this Agreement, provided that, concurrently with such replacement, (i) another bank or other entity which is reasonably satisfactory to the Borrower, the Administrative Agent and the Issuing Bank shall agree, as of such date, to purchase for cash the Loans and other Obligations due to the Non-Consenting Lender pursuant to an Assignment and Assumption and to become a Lender for all purposes under this Agreement and to assume all obligations of the Non-Consenting Lender to be terminated as of such date and to comply with the requirements of clause (b) of Section 9.04, and (ii) the Borrower shall pay to such Non-Consenting Lender in same day funds on the day of such replacement (1) all interest, fees and other amounts then accrued but unpaid to such Non-Consenting Lender by the Borrower hereunder to and including the date of termination, including without limitation payments due to such Non-Consenting Lender under Sections 2.15 and 2.17, and (2) an 

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  amount, if any, equal to the payment which would have been due to such Lender on the day of such replacement under Section 2.16 had the Loans of such Non-Consenting Lender been prepaid on such date rather than sold to the replacement Lender.  Each party hereto agrees that an assignment required pursuant to this paragraph may be effected pursuant to an Assignment and Assumption executed by the Borrower, the Administrative Agent and the assignee (or, to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and such parties are participants), and the Lender required to make such assignment need not be a party thereto in order for such assignment to be effective and shall be deemed to have consented to an be bound by the terms thereof; provided that, following the effectiveness of any such assignment, the other parties to such assignment agree to execute and deliver such documents necessary to evidence such assignment as reasonably requested by the applicable Lender, provided that any such documents shall be without recourse to or warranty by the parties thereto.

  (e)	Notwithstanding anything to the contrary herein the Administrative Agent may, with the consent of the Borrower only, amend, modify or supplement this Agreement or any of the other Loan Documents to cure any ambiguity, omission, mistake, defect or inconsistency.

  SECTION 9.03  Expenses; Limitation of Liability; Indemnity; Etc.  

  (a)	Expenses.  The Loan Parties, jointly and severally, shall pay all (i) reasonable out-of-pocket expenses incurred by the Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent, in connection with the syndication and distribution (including, without limitation, via the internet or through an Electronic System or Approved Electronic Platform) of the credit facilities provided for herein, the preparation and administration of the Loan Documents and any amendments, modifications or waivers of the provisions of the Loan Documents (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) reasonable out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) out-of-pocket expenses incurred by the Administrative Agent, the Issuing Bank or any Lender, including the fees, charges and disbursements of any counsel for the Administrative Agent, the Issuing Bank or any Lender, in connection with the enforcement, collection or protection of its rights in connection with the Loan Documents, including its rights under this Section, or in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.  Expenses being reimbursed by the Loan Parties under this Section include, without limiting the generality of the foregoing, fees, costs and expenses incurred in connection with:

  (A)	appraisals and insurance reviews conducted by or on behalf of the Administrative Agent (to the extent expressly permitted pursuant to the terms of this Agreement or any other Loan Document, other than this Section 9.03; provided that the Administrative Agent shall pay all expenses related to any appraisal of inventory unless an Event of Default exists and is continuing);

  (B)	subject to Section 5.06, field examinations and the preparation of Reports based on the fees charged by a third party retained by the Administrative Agent or the internally allocated fees for each Person employed by the Administrative Agent with respect to each field examination;

  (C)	background checks regarding senior management and/or key investors, as deemed necessary or appropriate in the sole discretion of the Administrative Agent;

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  (D)	without duplication of Section 2.17, Taxes, fees and other charges for (i) lien and title searches and title insurance and (ii) filing financing statements and continuations, and other actions to perfect, protect, and continue the Administrative Agent’s Liens;

  (E)	sums paid or incurred (to the extent expressly permitted pursuant to the terms of this Agreement or any other Loan Document, other than this Section 9.03) to take any action required of any Loan Party under the Loan Documents that such Loan Party fails to pay or take; and

  (F)	forwarding loan proceeds, collecting checks and other items of payment, and establishing and maintaining the accounts and lock boxes, and costs and expenses of preserving and protecting the Collateral.

  All of the foregoing fees, costs and expenses may be charged to the Borrower as Revolving Loans or to another deposit account, all as described in Section 2.18(c).

  (b)	Limitation of Liability.  To the extent permitted by applicable law (i) neither the Borrower nor any Loan Party shall assert, and the Borrower and each Loan Party hereby waives, any claim against the Administrative Agent, any Issuing Bank and any Lender, and any Related Party of any of the foregoing Persons (each such Person being called a “Lender-Related Person”) for any Liabilities arising from the use by others of information or other materials (including, without limitation, any personal data) obtained through telecommunications, electronic or other information transmission systems (including the Internet), and (ii) no party hereto shall assert, and each such party hereby waives, any Liabilities against any other party hereto, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document, or any agreement or instrument contemplated hereby or thereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof; provided that, nothing in this Section 9.03(b) shall relieve the Borrower or any Loan Party of any obligation it may have to indemnify an Indemnitee, as provided in Section 9.03(c), against any special, indirect, consequential or punitive damages asserted against such Indemnitee by a third party.  

  (c)	Indemnity.  The Loan Parties, jointly and severally, shall indemnify the Administrative Agent, each Issuing Bank and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all Liabilities and related expenses, including the fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of the Loan Documents or any agreement or instrument contemplated thereby, (ii) the performance by the parties hereto of their respective obligations thereunder or the consummation of the Transactions or any other transactions contemplated hereby, (iii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by an Issuing Bank 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), (iv) any actual or alleged presence or Release of Hazardous Materials on or from any property owned or operated by a Loan Party or a Subsidiary, or any Environmental Liability related in any way to a Loan Party or a Subsidiary, (v) the failure of a Loan Party to deliver to the Administrative Agent the required receipts or other required documentary evidence with respect to a payment made by such Loan Party for Taxes pursuant to Section 2.17, or (vi) any actual or prospective Proceeding relating to any of the foregoing, whether or not such Proceeding is brought by any Loan Party or their respective equity holders, Affiliates, creditors or any other third Person and whether based on contract, tort or any other theory and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such Liabilities or related expenses (A) arise out of any dispute solely among Indemnitees which do not arise out of any act 

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  or omission of any Loan Party or any of its Subsidiaries (other than any proceeding against the Administrative Agent solely in its capacity or in fulfilling its role as the administrative agent hereunder) or (B) are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted primarily from the gross negligence or willful misconduct of such Indemnitee.  IT IS THE EXPRESS INTENTION OF THE PARTIES HERETO THAT EACH PERSON TO BE INDEMNIFIED UNDER THIS SECTION SHALL BE INDEMNIFIED FROM AND HELD HARMLESS AGAINST ANY AND ALL LOSSES, LIABILITIES, CLAIMS, DAMAGES, PENALTIES, JUDGMENTS, DISBURSEMENTS, COSTS, AND EXPENSES (INCLUDING ATTORNEYS’ FEES) ARISING OUT OF OR RESULTING FROM THE SOLE, CONTRIBUTORY, COMPARATIVE, CONCURRENT OR ORDINARY NEGLIGENCE OF SUCH PERSON (OR THE REPRESENTATIVES OF SUCH PERSON).  This Section 9.03(c) shall not apply with respect to Taxes other than any Taxes that represent losses or damages arising from any non-Tax claim.

  (d)	Lender Reimbursement.  Each Lender severally agrees to pay any amount required to be paid by any Loan Party under paragraphs (a), (b) or (c) of this Section 9.03 to the Administrative Agent and each Issuing Bank, and each Related Party of any of the foregoing Persons (each, an “Agent-Related Person”) (to the extent not reimbursed by the Loan Parties and without limiting the obligation of any Loan Party to do so), ratably according to their respective Applicable Percentage in effect on the date on which such payment is sought under this Section (or, if such payment is sought after the date upon which the Commitments shall have terminated and the Loans shall have been paid in full, ratably in accordance with such Applicable Percentage immediately prior to such date), and agrees to indemnify and hold each Agent-Related Person harmless from and against any and all Liabilities and related expenses, including the fees, charges and disbursements of any kind whatsoever that may at any time (whether before or after the payment of the Loans) be imposed on, incurred by or asserted against such Agent-Related Person in any way relating to or arising out of the Commitments, this Agreement, any of the other Loan Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by such Agent-Related Person under or in connection with any of the foregoing; provided that the unreimbursed expense or Liability or related expense, as the case may be, was incurred by or asserted against such Agent-Related Person in its capacity as such; provided, further, that no Lender shall be liable for the payment of any portion of such Liabilities, costs, expenses or disbursements that are found by a final and non-appealable decision of a court of competent jurisdiction to have resulted primarily from such Agent-Related Person’s gross negligence or willful misconduct.  The agreements in this Section shall survive the termination of this Agreement and Payment in Full of the Secured Obligations.

  (e)	Payments.  All amounts due under this Section 9.03 shall be payable not later than 10 days after written demand therefor.

  SECTION 9.04  Successors and Assigns.  

  (a)	The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit), except that (i) the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights or obligations hereunder except in accordance with this Section.  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 (including any Affiliate of the Issuing Bank that issues any Letter of Credit), Participants (to the extent provided in paragraph (c) of this Section) and, to the extent expressly contemplated hereby, the Related Parties of each 

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  of the Administrative Agent, the Issuing Bank and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

  (b)	(i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more Persons (other than an Ineligible Institution, it being understood that any Disqualified Institution is subject to Section 9.04(e)) all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment, participations in Letters of Credit and the Loans at the time owing to it) with the prior written consent (such consent not to be unreasonably withheld) of:

  (A)	the Borrower, provided that, (x) the Borrower shall be deemed to have consented to an assignment of all or a portion of the Term Loans unless it shall object thereto by written notice to the Administrative Agent within five Business Days after having received notice thereof and (y) the Borrower shall be deemed to have consented to an assignment of all or a portion of the Revolving Loans and Commitments unless it shall object thereto by written notice to the Administrative Agent within ten Business Days after having received written notice thereof from the Administrative Agent or any applicable Lender, and provided, further, that no consent of the Borrower shall be required for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if an Event of Default has occurred and is continuing, any other assignee;

  (B)	the Administrative Agent, provided that no consent of the Administrative Agent shall be required for an assignment of all or any portion of a Term Loan to a Lender, an Affiliate of a Lender or an Approved Fund; and

  (C)	the Issuing Bank, provided that no consent of the Issuing Bank shall be required for an assignment of all or any portion of a Term Loan.

  Notwithstanding anything set forth to the contrary in this Agreement or any other Loan Document, to the extent Chase is the only Lender party to this Agreement immediately prior to an assignment, Chase may assign, without Borrower’s consent as set forth in clause (b)(i)(A) of this Section 9.04, all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it) to one or more assignees, that are not Ineligible Institutions, whether or not related to Chase, so long as each such assignee is a bank or other financial institution that is engaged in the holding of bank loans similar to the Loans in the ordinary course of its business and that is capable, to the knowledge of Chase, to fund any undrawn Commitment.

  (ii)	Assignments shall be subject to the following additional conditions:

  (A)	except in the case of an assignment to a Lender, an Affiliate of a Lender, or an Approved Fund, or an assignment of the entire remaining amount of the assigning Lender’s Commitment or Loans of any Class, the amount of the Commitment or Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000 or, in the case of a Term Loan, $1,000,000 unless each of the Borrower and the Administrative Agent otherwise consent, provided that no such consent of the Borrower shall be required if an Event of Default has occurred and is continuing;

  (B)	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; provided that this clause shall not be construed to prohibit the assignment of a proportionate part 

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  of all the assigning Lender’s rights and obligations in respect of one Class of Commitments or Loans;

  (C)	the parties to each assignment shall execute and deliver to the Administrative Agent (x) an Assignment and Assumption or (y) to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and the parties to the Assignment and Assumption are participants, together with a processing and recordation fee of $3,500; and

  (D)	the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire in which the assignee designates one or more credit contacts to whom all syndicate-level information (which may contain material non-public information about the Borrower, the other Loan Parties and their Related Parties or their respective securities) will be made available and who may receive such information in accordance with the assignee’s compliance procedures and applicable laws, including federal and state securities laws.

  For the purposes of this Section 9.04(b), the terms “Approved Fund” and “Ineligible Institution” have the following meanings:

  “Approved Fund” means any Person (other than a natural person) that is engaged in making, purchasing, holding or investing in bank 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 or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

  “Ineligible Institution” means a (a) natural person, (b) a Defaulting Lender or its Lender Parent, (c) company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person or relative(s) thereof; provided that, with respect to clause (c), such company, investment vehicle or trust shall not constitute an Ineligible Institution if it (x) has not been established for the primary purpose of acquiring any Loans or Commitments, (y) is managed by a professional advisor, who is not such natural person or a relative thereof, having significant experience in the business of making or purchasing commercial loans, and (z) has assets greater than $25,000,000 and a significant part of its activities consist of making or purchasing commercial loans and similar extensions of credit in the ordinary course of its business, (d) Loan Party or a Subsidiary or other Affiliate of a Loan Party, or (e) a Disqualified Institution.

  (iii)	Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party hereto 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 2.15, 2.16, 2.17 and 9.03).  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 9.04 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 paragraph (c) of this Section.

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

  (v)	Upon its receipt of (x) a duly completed Assignment and Assumption executed by an assigning Lender and an assignee or (y) to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and the parties to the Assignment and Assumption are participants, the assignee’s completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this Section and any written consent to such assignment required by paragraph (b) of this Section, the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register; provided that if either the assigning Lender or the assignee shall have failed to make any payment required to be made by it pursuant to Section 2.05, 2.06(d), 2.06(e), 2.07(b), 2.18(d) or 9.03(d), the Administrative Agent shall have no obligation to accept such Assignment and Assumption and record the information therein in the Register unless and until such payment shall have been made in full, together with all accrued interest thereon.  No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph.

  (c)	Any Lender may, without the consent of, or notice to, the Borrower, the Administrative Agent or the Issuing Bank, sell participations to one or more banks or other entities (a “Participant”), other than an Ineligible Institution, in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged; (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations; and (iii) the Borrower, the Administrative Agent, the Issuing Bank and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and/or obligations under this Agreement.  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, modification or waiver described in the first proviso to Section 9.02(b) that affects such Participant.  The Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.15, 2.16 and 2.17 (subject to the requirements and limitations therein, including the requirements under Sections 2.17(f) and 2.17(g) (it being understood that the documentation required under Section 2.17(f) shall be delivered to the participating Lender and the information and documentation required under Section 2.17(g) will be delivered to the Borrower and the Administrative Agent)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of Sections 2.18 and 2.19 as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Sections 2.15 or 2.17 with respect to any participation than its participating Lender would have been entitled 

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  to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation.

  Each Lender that sells a participation agrees, at the Borrower’s request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 2.19(b) with respect to any Participant.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though it were a Lender, provided such Participant agrees to be subject to Section 2.18(d) as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under this Agreement or any other Loan Document (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 this Agreement or any other Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such Commitment, Loan, Letter of Credit or other obligation is in registered form under Section 5f.103‐1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

  (d)	Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

  (e)	

  (i)	No assignment or participation shall be made to any Person that was a Disqualified Institution as of the date (the “Trade Date”) on which the assigning Lender entered into a binding agreement to sell and assign or participate all or a portion of its rights and obligations under this Agreement to such Person (unless the Borrower has consented to such assignment or participation in writing in its sole and absolute discretion, in which case such Person will not be considered a Disqualified Institution for the purpose of such assignment or participation).  For the avoidance of doubt, with respect to any assignee that becomes a Disqualified Institution after the applicable Trade Date, (x) such assignee shall not retroactively be disqualified from becoming a Lender and (y) the execution by the Borrower of an Assignment and Assumption with respect to such assignee will not by itself result in such assignee no longer being considered a Disqualified Institution.  Any assignment in violation of this clause (e)(i) shall not be void, but the other provisions of this clause (e) shall apply.

  (ii)	If any assignment or participation is made to any Disqualified Institution without the Borrower’s prior written consent in violation of clause (e)(i) above, the Borrower may, at its sole expense and effort, upon notice to the applicable Disqualified Institution and the Administrative Agent, require such Disqualified Institution to assign, without recourse (in accordance with and subject to the restrictions contained in this Section 9.04), all of its interest, rights and obligations under this Agreement to one or more Persons that meet the requirements to be an assignee under Section 9.04(b) (subject to such consents, if any, as may be required 

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  thereunder) at the lesser of (x) the principal amount thereof and (y) the amount that such Disqualified Institution paid to acquire such interests, rights and obligations, in each case plus accrued interest, accrued fees and all other amounts (other than principal amounts) payable to it hereunder.

  (iii)	Notwithstanding anything to the contrary contained in this Agreement, (A) Disqualified Institutions will not (x) have the right to receive information, reports or other materials provided to the Lenders or the Issuing Bank by the Borrower, the Administrative Agent or any other Lender, (y) attend or participate in meetings attended by the Lenders, the Issuing Bank and the Administrative Agent or (z) access any electronic site established for the Lenders or the Issuing Bank or confidential communications from counsel to or financial advisors of the Administrative Agent, the Issuing Bank or the Lenders; it being understood and agreed that the foregoing provisions shall only apply to a Disqualified Institution and not to any assignee of such Disqualified Institution that becomes a Lender so long as such assignee is not a Disqualified Institution and (B) (x) for purposes of any consent to any amendment, waiver or modification of, or any action under, and for the purpose of any direction to the Administrative Agent, the Issuing Bank or any Lender to undertake any action (or refrain from taking any action) under this Agreement or any other Loan Document, each Disqualified Institution will be deemed to have consented in the same proportion as the Lenders that are not Disqualified Institutions consented to such matter and (y) for purposes of voting on any plan of reorganization or plan of liquidation pursuant to any debtor relief laws (a “Bankruptcy Plan”), each Disqualified Institution party hereto hereby agrees (1) not to vote on such Bankruptcy Plan, (2) if such Disqualified Institution does vote on such Bankruptcy Plan notwithstanding the restriction in the foregoing clause (1), such vote will be deemed not to be in good faith and shall be “designated” pursuant to Section 1126(e) of the Bankruptcy Code (or any similar provision in any other debtor relief laws), and such vote shall not be counted in determining whether the applicable class has accepted or rejected such Bankruptcy Plan in accordance with Section 1126(c) of the Bankruptcy Code (or any similar provision in any other debtor relief laws) and (3) not to contest any request by any party for a determination by any applicable court of competent jurisdiction effectuating the foregoing clause (2).

  (iv)	The Administrative Agent shall have the right, and the Borrower hereby expressly authorizes the Administrative Agent, to (A) post the list of Disqualified Institutions agreed to by the Borrower and the Administrative Agent and any updates thereto from time to time (collectively, the “DQ List”) on the Approved Electronic Platform, including that portion of the Approved Electronic Platform that is designated for “public side” Lenders or (B) provide the DQ List to each Lender requesting the same.

  SECTION 9.05  Survival.  All covenants, agreements, representations and warranties made by the Loan Parties in the Loan Documents and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of the Loan Documents and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, the Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated.  The provisions of Sections 2.15, 2.16, 2.17 and 9.03 and Article VIII shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments or the termination of this Agreement or any other Loan Document or any provision hereof or thereof.

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  SECTION 9.06  Counterparts; Integration; Effectiveness; Electronic Execution.  

  (a)	This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement, the other Loan Documents and any separate letter agreements with respect to (i) fees payable to the Administrative Agent and (ii) increases or reductions of the Issuing Bank Sublimit of the Issuing Bank constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

  (b)	Delivery of an executed counterpart of a signature page of (x) this Agreement, (y) any other Loan Document and/or (z) any document, amendment, approval, consent, information, notice (including, for the avoidance of doubt, any notice delivered pursuant to Section 9.01), certificate, request, statement, disclosure or authorization related to this Agreement, any other Loan Document and/or the transactions contemplated hereby and/or thereby (each an “Ancillary Document”) that is an Electronic Signature transmitted by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page shall be effective as delivery of a manually executed counterpart of this Agreement, such other Loan Document or such Ancillary Document, as applicable.  The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to this Agreement, any other Loan Document and/or any Ancillary Document shall be deemed to include Electronic Signatures, deliveries or the keeping of records in any electronic form (including deliveries by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page), each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be; provided that nothing herein shall require the Administrative Agent to accept Electronic Signatures in any form or format without its prior written consent and pursuant to procedures approved by it; provided, further, without limiting the foregoing, (i) to the extent the Administrative Agent has agreed to accept any Electronic Signature, the Administrative Agent and each of the Lenders shall be entitled to rely on such Electronic Signature purportedly given by or on behalf of the Borrower or any other Loan Party without further verification thereof and without any obligation to review the appearance or form of any such Electronic Signature and (ii) upon the request of the Administrative Agent or any Lender, any Electronic Signature shall be promptly followed by a manually executed counterpart.  Without limiting the generality of the foregoing, the Borrower and each Loan Party hereby (A) agrees that, for all purposes, including without limitation, in connection with any workout, restructuring, enforcement of remedies, bankruptcy proceedings or litigation among the Administrative Agent, the Lenders, the Borrower and the Loan Parties, Electronic Signatures transmitted by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page and/or any electronic images of this Agreement, any other Loan Document and/or any Ancillary Document shall have the same legal effect, validity and enforceability as any paper original, (B) the Administrative Agent and each of the Lenders may, at its option, create one or more copies of this Agreement, any other Loan Document and/or any Ancillary Document in the form of an imaged electronic record in any format, which shall be deemed created in the ordinary course of such Person’s business, and destroy the original paper document (and all such electronic records shall be considered an original for all purposes and shall have the same legal effect, validity and enforceability as a paper record), (C) waives any argument, defense or right to contest the legal effect, validity or enforceability of this Agreement, any other Loan Document and/or any Ancillary Document based solely on the lack of paper original copies of this Agreement, such other Loan Document and/or such Ancillary Document, respectively, including with respect to any signature pages thereto and (D) waives any claim against any Lender-Related Person for any Liabilities 

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  arising solely from the Administrative Agent’s and/or any Lender’s reliance on or use of Electronic Signatures and/or transmissions by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page, including any Liabilities arising as a result of the failure of the Borrower and/or any Loan Party to use any available security measures in connection with the execution, delivery or transmission of any Electronic Signature.

  (c)	THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

  SECTION 9.07  Severability.  Any provision of any Loan Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

  SECTION 9.08  Right of Setoff.  If an Event of Default shall have occurred and be continuing, each Lender, each Issuing Bank, and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held, and other obligations at any time owing, by such Lender, such Issuing Bank or any such Affiliate, to or for the credit or the account of any Loan Party against any and all of the Secured Obligations owing to such Lender or such Issuing Bank or their respective Affiliates, irrespective of whether or not such Lender, Issuing Bank or Affiliate shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Loan Parties may be contingent or unmatured or are owed to a branch office or Affiliate of such Lender or such Issuing Bank different from the branch office or Affiliate holding such deposit or obligated on such indebtedness; provided that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 2.20 and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent, the Issuing Banks, and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Secured Obligations owing to such Defaulting Lender as to which it exercised such right of setoff.  The applicable Lender, the Issuing Bank or such Affiliate shall notify the Borrower and the Administrative Agent of such setoff or application; provided that the failure to give such notice shall not affect the validity of such setoff or application under this Section.  The rights of each Lender, each Issuing Bank and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, such Issuing Bank or their respective Affiliates may have.

  SECTION 9.09  Governing Law; Jurisdiction; Consent to Service of Process.  

  (a)	The Loan Documents (other than those containing a contrary express choice of law provision) shall be governed by and construed in accordance with the internal laws of the State of Texas, but giving effect to federal laws applicable to national banks.

  (b)	Each of the Lenders and the Administrative Agent hereby irrevocably and unconditionally agrees that, notwithstanding the governing law provisions of any applicable Loan Document, any claims brought against the Administrative Agent by any Secured Party relating to this Agreement, any other Loan Document, the Collateral or the consummation or administration of the 

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  transactions contemplated hereby or thereby shall be construed in accordance with and governed by the law of the State of Texas.

  (c)	Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of any U.S. federal or Texas state court sitting in Dallas, Texas, and any appellate court from any thereof, in any action or proceeding arising out of or relating to any Loan Documents, the transactions relating hereto or thereto, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may (and any such claims, cross-claims or third party claims brought against the Administrative Agent or any of its Related Parties may only) be heard and determined in such state court or, to the extent permitted by law, in such federal court.  Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Agreement or any other Loan Document shall affect any right that the Administrative Agent, the Issuing Bank or any Lender 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.

  (d)	Each Loan Party hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in paragraph (b) of this Section.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

  (e)	Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 9.01.  Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any other manner permitted by law.

  SECTION 9.10  WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY 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, 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 OR OTHER AGENT (INCLUDING ANY ATTORNEY) OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY 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 BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

  SECTION 9.11  Headings.  Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement.

  SECTION 9.12  Confidentiality.  Each of the Administrative Agent, the Issuing Bank and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors that need to know such Information (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 

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  Governmental Authority (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by any Requirement of Law or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any suit, 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 (x) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (y) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Loan Parties and their obligations, (g) with the consent of the Borrower, (h) on a confidential basis to (1) any rating agency in connection with rating the Borrower or its Subsidiaries or the credit facilities provided for herein or (2) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of identification numbers with respect to the credit facilities provided for herein, or (i) 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 the Administrative Agent, the Issuing Bank or any Lender on a non-confidential basis from a source other than the Borrower or any of its Subsidiaries.  For the purposes of this Section, “Information” means all information (including any Projections) received from the Borrower or any of its Subsidiaries relating to the Borrower or any of its Subsidiaries or their business, other than any such information that is available to the Administrative Agent, the Issuing Bank or any Lender on a non-confidential basis prior to disclosure by the Borrower or any of its Subsidiaries and other than information pertaining to this Agreement provided by arrangers to data service providers, including league table providers, that serve the lending industry; provided that, in the case of information received from the Borrower or any of its Subsidiaries after the date hereof, such information (other than Projections which shall be deemed confidential whether or not so identified) is clearly identified at the time of delivery as confidential.  Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

  EACH LENDER ACKNOWLEDGES THAT INFORMATION AS DEFINED IN SECTION 9.12 FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE BORROWER, THE OTHER LOAN PARTIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.

  ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE BORROWER OR THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE BORROWER, THE LOAN PARTIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES.  ACCORDINGLY, EACH LENDER REPRESENTS TO THE BORROWER AND THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.

  SECTION 9.13  Several Obligations; Nonreliance; Violation of Law.  The respective obligations of the Lenders hereunder are several and not joint and the failure of any Lender to make any Loan or perform any of its obligations hereunder shall not relieve any other Lender from any of its obligations 

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  hereunder.  Each Lender hereby represents that it is not relying on or looking to any margin stock (as defined in Regulation U of the Federal Reserve Board) for the repayment of the Borrowings provided for herein.  Anything contained in this Agreement to the contrary notwithstanding, neither the Issuing Bank nor any Lender shall be obligated to extend credit to the Borrower in violation of any Requirement of Law.

  SECTION 9.14  USA PATRIOT Act.  Each Lender that is subject to the requirements of the USA PATRIOT Act hereby notifies each Loan Party that pursuant to the requirements of the USA PATRIOT Act, it is required to obtain, verify and record information that identifies such Loan Party, which information includes the name and address of such Loan Party and other information that will allow such Lender to identify such Loan Party in accordance with the USA PATRIOT Act.

  SECTION 9.15  Disclosure.  Each Loan Party, each Lender and the Issuing Bank hereby acknowledges and agrees that the Administrative Agent and/or its Affiliates from time to time may hold investments in, make other loans to or have other relationships with, any of the Loan Parties and their respective Affiliates. 

  SECTION 9.16  Appointment for Perfection.  Each Lender hereby appoints each other Lender as its agent for the purpose of perfecting Liens, for the benefit of the Administrative Agent and the Secured Parties, in assets which, in accordance with Article 9 of the UCC or any other applicable law can be perfected only by possession or control.  Should any Lender (other than the Administrative Agent) obtain possession or control of any such Collateral, such Lender shall notify the Administrative Agent thereof, and, promptly upon the Administrative Agent’s request therefor shall deliver such Collateral to the Administrative Agent or otherwise deal with such Collateral in accordance with the Administrative Agent’s instructions.

  SECTION 9.17  Interest Rate Limitation.  Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the NYFRB Rate to the date of repayment, shall have been received by such Lender.

  SECTION 9.18  No Fiduciary Duty, Etc.  

  (a)	The Borrower acknowledges and agrees, and acknowledges its Subsidiaries’ understanding, that no Credit Party will have any obligations except those obligations expressly set forth herein and in the other Loan Documents and each Credit Party is acting solely in the capacity of an arm’s length contractual counterparty to the Borrower with respect to the Loan Documents and the transactions contemplated herein and therein and not as a financial advisor or a fiduciary to, or an agent of, the Borrower or any other person.  The Borrower agrees that it will not assert any claim against any Credit Party based on an alleged breach of fiduciary duty by such Credit Party in connection with this Agreement and the transactions contemplated hereby.  Additionally, the Borrower acknowledges and agrees that no Credit Party is advising the Borrower as to any legal, tax, investment, accounting, regulatory or any other matters in any jurisdiction.  The Borrower shall consult with its own advisors concerning such matters and shall be responsible for making its own independent investigation and appraisal of the transactions contemplated 

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  herein or in the other Loan Documents, and the Credit Parties shall have no responsibility or liability to the Borrower with respect thereto.

  (b)	The Borrower further acknowledges and agrees, and acknowledges its Subsidiaries’ understanding, that each Credit Party, together with its Affiliates, is a full service securities or banking firm engaged in securities trading and brokerage activities as well as providing investment banking and other financial services.  In the ordinary course of business, any Credit Party may provide investment banking and other financial services to, and/or acquire, hold or sell, for its own accounts and the accounts of customers, equity, debt and other securities and financial instruments (including bank loans and other obligations) of, the Borrower and other companies with which the Borrower may have commercial or other relationships.  With respect to any securities and/or financial instruments so held by any Credit Party or any of its customers, all rights in respect of such securities and financial instruments, including any voting rights, will be exercised by the holder of the rights, in its sole discretion.

  (c)	In addition, the Borrower acknowledges and agrees, and acknowledges its Subsidiaries’ understanding, that each Credit Party and its affiliates may be providing debt financing, equity capital or other services (including financial advisory services) to other companies in respect of which the Borrower may have conflicting interests regarding the transactions described herein and otherwise.  No Credit Party will use confidential information obtained from the Borrower by virtue of the transactions contemplated by the Loan Documents or its other relationships with the Borrower in connection with the performance by such Credit Party of services for other companies, and no Credit Party will furnish any such information to other companies.  The Borrower also acknowledges that no Credit Party has any obligation to use in connection with the transactions contemplated by the Loan Documents, or to furnish to the Borrower, confidential information obtained from other companies.

  SECTION 9.19  Marketing Consent.  The Borrower hereby authorizes Chase and its affiliates (collectively, the “Chase Parties”), at their respective sole expense, and without any prior approval by the Borrower, to include the Borrower’s name and logo in advertising, marketing, tombstones, case studies and training materials, and to give such other publicity to this Agreement as Chase Parties may from time to time determine in their sole discretion.  The foregoing authorization shall remain in effect unless the Borrower notifies Chase in writing that such authorization is revoked.

  SECTION 9.20  Acknowledgement and Consent to Bail-In of Affected Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Loan Document 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 entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of 

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  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.

  SECTION 9.21  Acknowledgement Regarding Any Supported QFCs.  

  (a)	To the extent that the Loan Documents provide support, through a guarantee or otherwise, for Swap Agreements 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 Texas and/or of the United States or any other state of the United States): 

  (b)	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.

  ARTICLE X.
Loan Guaranty

  SECTION 10.01  Guaranty.  Each Loan Guarantor (other than those that have delivered a separate Guarantee) hereby agrees that it is jointly and severally liable for, and, as a primary obligor and not merely as surety, absolutely, unconditionally and irrevocably guarantees to the Secured Parties, the prompt payment when due, whether at stated maturity, upon acceleration or otherwise, and at all times thereafter, of the Secured Obligations (collectively the “Guaranteed Obligations”); provided, however, that the definition of “Guaranteed Obligations” shall not create any guarantee by any Loan Guarantor of (or grant of security interest by any Loan Guarantor to support, as applicable) any Excluded Swap Obligations of such Loan Guarantor for purposes of determining any obligations of any Loan Guarantor.  Each Loan Guarantor further agrees that the Guaranteed Obligations may be extended or renewed in whole or in part without notice to or further assent from it, and that it remains bound upon its guarantee notwithstanding any such extension or renewal.  All terms of this Loan Guaranty apply to and may be enforced by or on behalf of any domestic or foreign branch or Affiliate of any Lender that extended any portion of the Guaranteed Obligations.

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  SECTION 10.02  Guaranty of Payment.  This Loan Guaranty is a guaranty of payment and not of collection.  Each Loan Guarantor waives any right to require the Administrative Agent, the Issuing Bank or any Lender to sue the Borrower, any Loan Guarantor, any other guarantor of, or any other Person obligated for all or any part of the Guaranteed Obligations (each, an “Obligated Party”), or otherwise to enforce its payment against any collateral securing all or any part of the Guaranteed Obligations.

  SECTION 10.03  No Discharge or Diminishment of Loan Guaranty.  

  (a)	Except as otherwise provided for herein, the obligations of each Loan Guarantor hereunder are unconditional and absolute and not subject to any reduction, limitation, impairment or termination for any reason (other than the Payment in Full of the Guaranteed Obligations), including:  (i) any claim of waiver, release, extension, renewal, settlement, surrender, alteration, or compromise of any of the Guaranteed Obligations, by operation of law or otherwise; (ii) any change in the corporate existence, structure or ownership of the Borrower or any other Obligated Party liable for any of the Guaranteed Obligations; (iii) any insolvency, bankruptcy, reorganization or other similar proceeding affecting any Obligated Party, or their assets or any resulting release or discharge of any obligation of any Obligated Party; or (iv) the existence of any claim, setoff or other rights which any Loan Guarantor may have at any time against any Obligated Party, the Administrative Agent, the Issuing Bank, any Lender, or any other Person, whether in connection herewith or in any unrelated transactions.

  (b)	The obligations of each Loan Guarantor hereunder are not subject to any defense or setoff, counterclaim, recoupment, or termination whatsoever by reason of the invalidity, illegality, or unenforceability of any of the Guaranteed Obligations or otherwise, or any provision of applicable law or regulation purporting to prohibit payment by any Obligated Party, of the Guaranteed Obligations or any part thereof.

  (c)	Further, the obligations of any Loan Guarantor hereunder are not discharged or impaired or otherwise affected by: (i) the failure of the Administrative Agent, the Issuing Bank or any Lender to assert any claim or demand or to enforce any remedy with respect to all or any part of the Guaranteed Obligations; (ii) any waiver or modification of or supplement to any provision of any agreement relating to the Guaranteed Obligations; (iii) any release, non-perfection, or invalidity of any indirect or direct security for the obligations of the Borrower for all or any part of the Guaranteed Obligations or any obligations of any other Obligated Party liable for any of the Guaranteed Obligations; (iv) any action or failure to act by the Administrative Agent, the Issuing Bank or any Lender with respect to any collateral securing any part of the Guaranteed Obligations; or (v) any default, failure or delay, willful or otherwise, in the payment or performance of any of the Guaranteed Obligations, or any other circumstance, act, omission or delay that might in any manner or to any extent vary the risk of such Loan Guarantor or that would otherwise operate as a discharge of any Loan Guarantor as a matter of law or equity (other than the Payment in Full of the Guaranteed Obligations).

  SECTION 10.04  Defenses Waived.  To the fullest extent permitted by applicable law, each Loan Guarantor hereby waives any defense based on or arising out of any defense of the Borrower or any Loan Guarantor or the unenforceability of all or any part of the Guaranteed Obligations from any cause, or the cessation from any cause of the liability of the Borrower, any Loan Guarantor or any other Obligated Party, other than the Payment in Full of the Guaranteed Obligations.  Without limiting the generality of the foregoing, each Loan Guarantor irrevocably waives acceptance hereof, presentment, demand, protest and, to the fullest extent permitted by law, any notice not provided for herein, as well as any requirement that at any time any action be taken by any Person against any Obligated Party, or any other Person.  Each Loan Guarantor confirms that it is not a surety under any state law and shall not raise any such law as a defense to its obligations hereunder.  The Administrative Agent may, at its election, foreclose on any Collateral held by it by one or more judicial or nonjudicial sales, accept an assignment of any such Collateral in lieu 

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  of foreclosure or otherwise act or fail to act with respect to any collateral securing all or a part of the Guaranteed Obligations, compromise or adjust any part of the Guaranteed Obligations, make any other accommodation with any Obligated Party or exercise any other right or remedy available to it against any Obligated Party, without affecting or impairing in any way the liability of such Loan Guarantor under this Loan Guaranty, except to the extent the Guaranteed Obligations have been Paid in Full.  To the fullest extent permitted by applicable law, each Loan Guarantor waives any defense arising out of any such election even though that election may operate, pursuant to applicable law, to impair or extinguish any right of reimbursement or subrogation or other right or remedy of any Loan Guarantor against any Obligated Party or any security.

  SECTION 10.05  Rights of Subrogation.  No Loan Guarantor will assert any right, claim or cause of action, including, without limitation, a claim of subrogation, contribution or indemnification that it has against any Obligated Party, or any collateral, until the Loan Parties and the Loan Guarantors have fully performed all their obligations to the Administrative Agent, the Issuing Bank and the Lenders.

  SECTION 10.06  Reinstatement; Stay of Acceleration.  If at any time any payment of any portion of the Guaranteed Obligations (including a payment effected through exercise of a right of setoff) is rescinded, or must otherwise be restored or returned upon the insolvency, bankruptcy or reorganization of the Borrower or otherwise (including pursuant to any settlement entered into by a Secured Party in its discretion), each Loan Guarantor’s obligations under this Loan Guaranty with respect to that payment shall be reinstated at such time as though the payment had not been made and whether or not the Administrative Agent, the Issuing Bank and the Lenders are in possession of this Loan Guaranty.  If acceleration of the time for payment of any of the Guaranteed Obligations is stayed upon the insolvency, bankruptcy or reorganization of the Borrower, all such amounts otherwise subject to acceleration under the terms of any agreement relating to the Guaranteed Obligations shall nonetheless be payable by the Loan Guarantors forthwith on demand by the Administrative Agent.

  SECTION 10.07  Information.  Each Loan Guarantor assumes all responsibility for being and keeping itself informed of the Borrower’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations and the nature, scope and extent of the risks that each Loan Guarantor assumes and incurs under this Loan Guaranty, and agrees that none of the Administrative Agent, the Issuing Bank or any Lender shall have any duty to advise any Loan Guarantor of information known to it regarding those circumstances or risks.

  SECTION 10.08  Termination.  Each of the Lenders and the Issuing Bank may continue to make loans or extend credit to the Borrower based on this Loan Guaranty until five (5) days after it receives written notice of termination from any Loan Guarantor.  Notwithstanding receipt of any such notice, each Loan Guarantor will continue to be liable to the Lenders for any Guaranteed Obligations created, assumed or committed to prior to the fifth day after receipt of the notice, and all subsequent renewals, extensions, modifications and amendments with respect to, or substitutions for, all or any part of such Guaranteed Obligations.  Nothing in this Section 10.08 shall be deemed to constitute a waiver of, or eliminate, limit, reduce or otherwise impair any rights or remedies the Administrative Agent or any Lender may have in respect of, any Default or Event of Default that shall exist under Article VII hereof as a result of any such notice of termination.

  SECTION 10.09  [Reserved].  

  SECTION 10.10  Maximum Liability.  Notwithstanding any other provision of this Loan Guaranty, the amount guaranteed by each Loan Guarantor hereunder shall be limited to the extent, if any, required so that its obligations hereunder shall not be subject to avoidance under Section 548 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act, 

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  Uniform Voidable Transactions Act or similar statute or common law.  In determining the limitations, if any, on the amount of any Loan Guarantor’s obligations hereunder pursuant to the preceding sentence, it is the intention of the parties hereto that any rights of subrogation, indemnification or contribution which such Loan Guarantor may have under this Loan Guaranty, any other agreement or applicable law shall be taken into account.

  SECTION 10.11  Contribution.  

  (a)	To the extent that any Loan Guarantor shall make a payment under this Loan Guaranty (a “Guarantor Payment”) which, taking into account all other Guarantor Payments then previously or concurrently made by any other Loan Guarantor, exceeds the amount which otherwise would have been paid by or attributable to such Loan Guarantor if each Loan Guarantor had paid the aggregate Guaranteed Obligations satisfied by such Guarantor Payment in the same proportion as such Loan Guarantor’s “Allocable Amount” (as defined below) (as determined immediately prior to such Guarantor Payment) bore to the aggregate Allocable Amounts of each of the Loan Guarantors as determined immediately prior to the making of such Guarantor Payment, then, following indefeasible payment in full in cash of the Guarantor Payment, the Payment in Full of the Guaranteed Obligations and the termination of this Agreement, such Loan Guarantor shall be entitled to receive contribution and indemnification payments from, and be reimbursed by, each other Loan Guarantor for the amount of such excess, pro rata based upon their respective Allocable Amounts in effect immediately prior to such Guarantor Payment.

  (b)	As of any date of determination, the “Allocable Amount” of any Loan Guarantor shall be equal to the excess of the fair saleable value of the property of such Loan Guarantor over the total liabilities of such Loan Guarantor (including the maximum amount reasonably expected to become due in respect of contingent liabilities, calculated, without duplication, assuming each other Loan Guarantor that is also liable for such contingent liability pays its ratable share thereof), giving effect to all payments made by other Loan Guarantors as of such date in a manner to maximize the amount of such contributions.

  (c)	This Section 10.11 is intended only to define the relative rights of the Loan Guarantors, and nothing set forth in this Section 10.11 is intended to or shall impair the obligations of the Loan Guarantors, jointly and severally, to pay any amounts as and when the same shall become due and payable in accordance with the terms of this Loan Guaranty.

  (d)	The parties hereto acknowledge that the rights of contribution and indemnification hereunder shall constitute assets of the Loan Guarantor or Loan Guarantors to which such contribution and indemnification is owing.

  (e)	The rights of the indemnifying Loan Guarantors against other Loan Guarantors under this Section 10.11 shall be exercisable upon the Payment in Full of the Guaranteed Obligations and the termination of this Agreement.

  SECTION 10.12  Liability Cumulative.  The liability of each Loan Party as a Loan Guarantor under this Article X is in addition to and shall be cumulative with all liabilities of each Loan Party to the Administrative Agent, the Issuing Bank and the Lenders under this Agreement and the other Loan Documents to which such Loan Party is a party or in respect of any obligations or liabilities of the other Loan Parties, without any limitation as to amount, unless the instrument or agreement evidencing or creating such other liability specifically provides to the contrary.

  SECTION 10.13  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 this Guarantee in 

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  respect of a Swap Obligation (provided, however, that each Qualified ECP Guarantor shall only be liable under this Section 10.13 for the maximum amount of such liability that can be hereby incurred without rendering its obligations under this Section 10.13 or otherwise under this Loan Guaranty voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount).  Except as otherwise provided herein, the obligations of each Qualified ECP Guarantor under this Section 10.13 shall remain in full force and effect until the termination of all Swap Obligations.  Each Qualified ECP Guarantor intends that this Section 10.13 constitute, and this Section 10.13 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.

  [Signature Page Follows]

   

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

   

  				
	 
	DZS INC.

	 
	By:
	 
	 

	 
	 
	 
	Justin Ferguson

	 
	 
	 
	Chief Legal Officer and Secretary

	 
	DZS CALIFORNIA INC.

	 
	By:
	 
	 

	 
	 
	 
	Justin Ferguson

	 
	 
	 
	Chief Legal Officer and Secretary

	 
	DZS INTERNATIONAL INC.

	 
	By:
	 
	 

	 
	 
	 
	Justin Ferguson

	 
	 
	 
	Chief Legal Officer and Secretary

	 
	DZS SERVICES INC.

	 
	By:
	 
	 

	 
	 
	 
	Justin Ferguson

	 
	 
	 
	Chief Legal Officer and Secretary

   

  Signature Page to Credit Agreement

  

   

   

  				
	 
	JPMORGAN CHASE BANK, N.A., individually, and as Administrative Agent and Issuing Bank

	 
	By:
	 
	 

	 
	 
	 
	Shiv Kariwala

	 
	 
	 
	Authorized Signatory

   

  Signature Page to Credit AgreementExhibit 4.1

 

 

SALE AND SERVICING
AGREEMENT

 

among

 

WORLD OMNI AUTO RECEIVABLES TRUST 2022-B

Issuing Entity,

 

WORLD OMNI AUTO RECEIVABLES LLC,

Depositor,

 

WORLD OMNI FINANCIAL CORP.,

Servicer

 

and

 

U.S. BANK NATIONAL ASSOCIATION,

Account Bank

 

Series 2022-B

 

Dated
as of June 1, 2022

 

 

     

     

    

 

TABLE OF CONTENTS

 

Page

 

	Article I DEFINITIONS	1
	 	 
	Section 1.01	Definitions	1
	 	 	 
	Article II CONVEYANCE OF RECEIVABLES	1
	 	 
	Section 2.01	Conveyance of Receivables	1
	Section 2.02	Intention of Parties	2
	 	 	 
	Article III THE RECEIVABLES	3
	 	 
	Section 3.01	Representations and Warranties of World Omni with Respect to Each Receivable and the Pool of Receivables	3
	Section 3.02	Repurchase upon Breach; Dispute Resolution	6
	Section 3.03	Custody of Receivable Files	10
	Section 3.04	Duties of Servicer as Custodian	11
	Section 3.05	Instructions; Authority to Act	12
	Section 3.06	Custodian’s Indemnification	12
	Section 3.07	Effective Period and Termination	13
	 	 	 
	Article IV ADMINISTRATION AND SERVICING OF RECEIVABLES	13
	 	 
	Section 4.01	Duties of Servicer	13
	Section 4.02	Collection and Allocation of Receivable Payments	14
	Section 4.03	Realization upon Receivables	14
	Section 4.04	Physical Damage Insurance	14
	Section 4.05	Maintenance of Security Interests in Financed Vehicles	15
	Section 4.06	Covenants of Servicer	15
	Section 4.07	Purchase of Receivables Upon Breach or Extension Beyond Final Scheduled Payment Date	15
	Section 4.08	Servicing Fee	15
	Section 4.09	Servicer’s Certificate	16
	Section 4.10	Annual Statement as to Compliance; Item 1122 Servicing Criteria Assessment; Notice of Default	16
	Section 4.11	Annual Independent Certified Public Accountants’ Report	17
	Section 4.12	Access to Certain Documentation and Information Regarding Receivables	17
	Section 4.13	Servicer Expenses	17
	Section 4.14	Appointment of Subservicer	17
	Section 4.15	Communications Between Noteholders	18
	Section 4.16	Exchange Act Certifications	18

 

    	 	 	 

     

    

 

	Article V TRUST ACCOUNTS; DISTRIBUTIONS; STATEMENTS TO CERTIFICATEHOLDERS AND NOTEHOLDERS	18
	 	 
	Section 5.01	Establishment of Trust Accounts	18
	Section 5.02	Collections	21
	Section 5.03	Application of Collections	22
	Section 5.04	[Reserved]	22
	Section 5.05	Additional Deposits	22
	Section 5.06	Distributions	22
	Section 5.07	Reserve Account	24
	Section 5.08	Statements to Noteholders and Certificateholders	25
	Section 5.09	Net Deposits	27
	Section 5.10	Transfer of Certificates	27
	 	 	 
	Article VI THE DEPOSITOR	27
	 	 
	Section 6.01	Representations of Depositor	27
	Section 6.02	Limited Liability Company Existence	29
	Section 6.03	Liability of Depositor; Indemnities	29
	Section 6.04	Merger or Consolidation of, or Assumption of Obligations of Depositor	31
	Section 6.05	Limitation on Liability of Depositor and Others	31
	Section 6.06	Depositor May Own Notes	31
	Section 6.07	Security Interest	31
	 	 	 
	Article VII THE SERVICER	32
	 	 
	Section 7.01	Representations of Servicer	32
	Section 7.02	Indemnities of Servicer	33
	Section 7.03	Merger or Consolidation of, or Assumption of Obligations of, Servicer	34
	Section 7.04	Limitation on Liability of Servicer and Others	34
	Section 7.05	World Omni Not to Resign as Servicer	35
	 	 	 
	Article VIII DEFAULT	35
	 	 
	Section 8.01	Servicer Default	35
	Section 8.02	Appointment of Successor	37
	Section 8.03	Notification to Noteholders and Certificateholders	37
	Section 8.04	Waiver of Past Defaults	38
	Section 8.05	Payment of Servicing Fees	38
	 	 	 
	Article IX TERMINATION	38
	 	 
	Section 9.01	Optional Purchase of All Receivables	38

 

    	 	ii	 

     

    

 

	Article X MISCELLANEOUS	39
	 	 
	Section 10.01	Amendment	39
	Section 10.02	Protection of Title to Trust	40
	Section 10.03	Notices	42
	Section 10.04	Assignment by the Depositor or the Servicer	42
	Section 10.05	Limitations on Rights of Others	42
	Section 10.06	Severability	42
	Section 10.07	Separate Counterparts; Electronic Signatures	43
	Section 10.08	Headings	43
	Section 10.09	Governing Law	43
	Section 10.10	Assignment by Issuing Entity	43
	Section 10.11	Nonpetition Covenants	43
	Section 10.12	Limitation of Liability of Owner Trustee and Indenture Trustee	44
	Section 10.13	Regulation AB	45
	Section 10.14	Notices to the Rating Agencies	45

 

	SCHEDULE A	Schedule of Receivables
	SCHEDULE B	Location of Receivable Files
	EXHIBIT A	Form of Distribution Statement to Noteholders
	EXHIBIT B	Form of Servicer’s Certificate
	EXHIBIT C	Form of SSA Assignment
	APPENDIX A	Definitions and Rules of Construction
	APPENDIX B	Additional Representations and Warranties

 

    	 	iii	 

     

    

 

SALE AND SERVICING AGREEMENT

 

This SALE AND SERVICING AGREEMENT
is dated as of June 1, 2022, among WORLD OMNI AUTO RECEIVABLES TRUST 2022-B, a Delaware statutory trust (the “Issuing Entity”),
WORLD OMNI AUTO RECEIVABLES LLC, a Delaware limited liability company (the “Depositor”), as depositor, WORLD OMNI FINANCIAL
CORP., a Florida corporation (“World Omni” or the “Servicer”), and U.S. BANK NATIONAL ASSOCIATION,
a national banking association, as account bank (the “Account Bank”).

 

WHEREAS, World Omni has sold
the Receivables to the Depositor pursuant to the Receivables Purchase Agreement;

 

WHEREAS, World Omni Auto Receivables
LLC, as depositor, desires to sell the Receivables to the Issuing Entity and the Issuing Entity desires to purchase such receivables;
and

 

WHEREAS, the Servicer is willing
to service, to make representations and warranties and to make certain repurchase representations with respect to such Receivables;

 

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

 

Article I

DEFINITIONS

 

Section 1.01            Definitions.
Certain capitalized terms used in the above recitals and in this Agreement are defined in and shall have the respective meanings assigned
them in Part I of Appendix A to this Agreement. All references herein to “the Agreement” or “this
Agreement” are to this Sale and Servicing Agreement as it may be amended, supplemented or modified from time to time, the exhibits
hereto and the capitalized terms used herein which are defined in such Appendix A, and all references herein to Articles, Sections
and subsections are to Articles, Sections or subsections of this Agreement unless otherwise specified. The rules of construction
set forth in Part II of such Appendix A shall be applicable to this Agreement.

 

Article II

CONVEYANCE OF RECEIVABLES

 

Section 2.01            Conveyance
of Receivables. In consideration of the Issuing Entity’s delivery to or upon the order of the Depositor of the Notes and the
Certificates, on the Closing Date the Depositor does hereby sell, transfer, assign, set over and otherwise convey to the Issuing Entity,
without recourse (subject to the obligations of the Depositor set forth herein), pursuant to an assignment in the form attached hereto
as Exhibit C (the “SSA Assignment”) all right, title and interest of the Depositor, whether now or hereafter acquired,
and wherever located, in and to the following:

 

(a)             the
Receivables identified in the Schedule of Receivables to the SSA Assignment delivered to the Issuing Entity (all of which are identified
in World Omni’s computer files by a code indicating the Receivables are owned by the Trust and pledged to the Indenture Trustee)
and all monies received thereon and in respect thereof after the Cutoff Date;

 

     

     

    

 

(b)            the
security interests in, and the liens on, the Financed Vehicles granted by Obligors in connection with the Receivables and any other interest
of the Depositor in such Financed Vehicles;

 

(c)            any
proceeds with respect to the Receivables from claims on any physical damage, credit life or disability insurance policies covering such
Financed Vehicles or Obligors;

 

(d)            any
Financed Vehicle that shall have secured a Receivable and shall have been acquired by or on behalf of the Depositor, the Servicer or the
Trust;

 

(e)            all
funds on deposit in, and “financial assets” (as such term is defined in the Uniform Commercial Code as from time to time in
effect) credited to, the Trust Accounts, including the Reserve Account, from time to time, including the Reserve Account Initial Deposit,
and in all investments and proceeds thereof (including all income thereon);

 

(f)            the
Receivables Purchase Agreement;

 

(g)            all
 “accounts,” “chattel paper,” “general intangibles” and “promissory notes” (as such terms
are defined in the Uniform Commercial Code as from time to time in effect) constituting or relating to the foregoing; and

 

(h)            the
proceeds of any and all of the foregoing; provided, however, that the foregoing items (a) through (h) shall
not include the Notes and Certificates.

 

Section 2.02           Intention
of Parties. It is the intention of the Depositor and the Issuing Entity that the assignment and transfer contemplated herein constitute
(and shall be construed and treated for all purposes, other than for tax purposes, as) a true and complete sale of the Receivables and
the other property of the Depositor specified in Section 2.01 hereof, conveying good title thereto free and clear of any liens and
encumbrances, from the Depositor to the Issuing Entity. However, in the event that such conveyance is deemed to be a pledge to secure
a loan (in spite of the express intent of the parties hereto that this conveyance constitutes, and shall be construed and treated for
all purposes, other than for tax purposes, as a true and complete sale), the Depositor hereby grants to the Issuing Entity, for the benefit
of the Noteholders, a first priority perfected security interest in all of the Depositor’s right, title and interest in, to and
under the Receivables and the other property of the Depositor specified in Section 2.01 hereof whether now existing or hereafter
created and all proceeds of the foregoing to secure the loan deemed to be made in connection with such pledge and, in such event, this
Agreement shall constitute a security agreement under applicable law.

 

    2

    

    

 

Article III

THE RECEIVABLES

 

Section 3.01            Representations
and Warranties of World Omni with Respect to Each Receivable and the Pool of Receivables.

 

(a)             Representations
and Warranties with Respect to Each Receivable. On the Closing Date, World Omni, which sold the Receivables specified in the SSA Assignment
on such date, hereby represents and warrants to the other parties hereto, with respect to such Receivables as of the Cutoff Date:

 

(i)            Characteristics
of Receivables. Each Receivable (1) (A) was originated in the United States of America by a Dealer for the retail sale of
a Financed Vehicle in the ordinary course of such Dealer’s business, was fully and properly executed or electronically authenticated
by the parties thereto, and was purchased by World Omni from such Dealer under an existing dealer agreement, (B) was originated by
World Omni, or (C) was originated by an independent third party and acquired by World Omni, (2) contains customary and enforceable
provisions such that the rights and remedies of the holder thereof are adequate for realization against the collateral of the benefits
of the security, and (3) provides for level monthly payments after the Cutoff Date (provided, that the payment in the first
or last month in the life of the Receivable may vary from the level monthly payments) that fully amortize the Amount Financed by maturity
and yield interest at the Annual Percentage Rate or Contract Rate, as applicable.

 

(ii)           Compliance
with Law. To the best of World Omni’s knowledge, each Receivable and the sale of the Financed Vehicle complied at the time it
was originated or made and, at the execution of this Agreement, complies in all material respects with all requirements of applicable
federal, state and local laws and regulations thereunder, including usury laws, the federal Truth-in-Lending Act, the Equal Credit Opportunity
Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Federal Trade Commission Act, the Gramm Leach Bliley Act,
the Magnuson-Moss Warranty Act, the Consumer Financial Protection Bureau’s Regulations B and Z, and State adaptations of the National
Consumer Act and of the Uniform Consumer Credit Code, and other consumer credit laws and equal credit opportunity and disclosure laws.

 

(iii)          Binding
Obligation. Each Receivable represents the genuine, legal, valid and binding payment obligation in writing of the Obligor, enforceable
by the holder thereof in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws, now or hereafter in effect, affecting the enforcement of creditors’ rights in
general, and except as such enforceability may be limited by general principles of equity (whether considered in a suit at law or in equity).

 

(iv)          No
Government Obligor. No Receivable is due from the United States of America or any State or from any agency, department or instrumentality
of the United States of America or any State.

 

(v)           Security
Interest in Financed Vehicle. Immediately prior to the sale, assignment and transfer thereof, each Receivable shall be secured by
a validly perfected first priority security interest in the related Financed Vehicle in favor of World Omni as secured party or all necessary
and appropriate actions have been commenced that would result in the valid perfection of a first priority security interest in the Financed
Vehicle in favor of the Depositor as secured party and is assignable by World Omni to the Depositor, by the Depositor to the Issuing Entity
and by the Issuing Entity to the Indenture Trustee.

 

    3

    

    

 

(vi)         Receivables
in Force. No Receivable has been satisfied, subordinated or rescinded, nor has any Financed Vehicle been released from the Lien granted
by the related Receivable in whole or in part.

 

(vii)        No
Amendments. The Servicer’s computer system does not reflect that any Receivable has been amended such that the amount of the
Obligor’s scheduled payments has been increased.

 

(viii)        No
Waiver. No provision of a Receivable has been waived, other than a discretionary waiver of a late payment charge or any other fees
that may be collected in the ordinary course of servicing a Receivable or in connection with any extension which is reflected in the Servicer’s
computer system.

 

(ix)          No
Defenses. The Servicer’s computer system does not reflect that any right of rescission, setoff, counterclaim or defense has
been asserted or threatened with respect to any Receivable.

 

(x)           No
Liens. The Servicer’s computer system does not reflect that any liens or claims have been filed for work, labor or materials
relating to a Financed Vehicle that are liens prior or equal to the security interest in the Financed Vehicle granted by any Receivable.

 

(xi)          No
Default. No Receivable has a Scheduled Payment for which more than $40 is more than 30 days past due as of the Cutoff Date, and, except
as permitted in this paragraph, the Servicer’s computer system does not reflect that any default, breach, violation or event permitting
acceleration under the terms of any Receivable has occurred and is continuing nor that a continuing condition that with notice or the
lapse of time would constitute a default, breach, violation or event permitting acceleration under the terms of any Receivable has arisen;
and World Omni has not waived and, except as permitted hereby, shall not waive any of the foregoing.

 

(xii)         Insurance.
Under the terms of each Receivable, the related Obligor is required to maintain physical damage insurance covering the Financed Vehicle
and to have World Omni named as the loss payee.

 

(xiii)        Title.
No Receivable has been sold, transferred, assigned or pledged (x) by World Omni to any Person other than the Depositor or (y) by
the Depositor to any Person other than the Issuing Entity.

 

(xiv)       Lawful
Assignment. No Receivable has been originated in, or is subject to the laws of, any jurisdiction under which the sale, transfer and
assignment of such Receivable under this Agreement or the Indenture is unlawful, void or voidable.

 

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(xv)         One
Authoritative Copy or Original. There is only one “authoritative copy” of any Receivable constituting “electronic
chattel paper” as defined in the UCC. There is only one executed original of any Receivable constituting “tangible chattel
paper” as defined in the UCC.

 

(xvi)        Maturity
of Receivables. Each Receivable has a scheduled maturity date not later than July 27, 2028.

 

(xvii)       Scheduled
Payments. As of the Cutoff Date, each Receivable had a first scheduled due date on or prior to the end of the third month immediately
following the Cutoff Date.

 

(xviii)      Outstanding
Principal Balance. Each Receivable has an outstanding principal balance of at least $500.

 

(xix)         No
Bankruptcies. No Obligor on any Receivable was noted in the Servicer’s computer system as having filed for bankruptcy.

 

(xx)          No
Repossessions. No Receivable was secured by a Financed Vehicle that had been repossessed without reinstatement of the related contract.

 

(xxi)         Chattel
Paper. Each Receivable constitutes “electronic chattel paper” or “tangible chattel paper” as defined in the
UCC.

 

(xxii)        Prepayment.
Each Receivable provides that a prepayment by the related Obligor will fully pay the principal balance and accrued interest through the
date of prepayment based on such Receivable’s Annual Percentage Rate or Contract Rate, as applicable.

 

(b)            Representations
and Warranties With Respect to the Pool of Receivables. On the Closing Date, World Omni, which sold the Receivables specified in the
SSA Assignment on such date, hereby makes the representations and warranties set forth in Appendix B hereto, and hereby represents
and warrants to the other parties hereto, with respect to such pool of Receivables as of the Cutoff Date:

 

(i)            Schedule
of Receivables. The information set forth in the Schedule of Receivables is true and correct in all material respects as of the close
of business on the Cutoff Date, and no selection procedures believed by World Omni to be adverse to the Noteholders were utilized in selecting
the Receivables. The computer tape or other listing regarding the Receivables made available to the Issuing Entity and its assigns (which
computer tape or other listing is required to be delivered as specified herein) is true and correct in all material respects.

 

(ii)           Title.
Immediately prior to the transfer and assignment contemplated in the Receivables Purchase Agreement, World Omni had good and marketable
title to the Receivables free and clear of all Liens, encumbrances, security interests and rights of others and, immediately upon the
transfer thereof, the Depositor shall have good and marketable title to the Receivables, free and clear of all Liens, encumbrances, security
interests and rights of others; and the transfer has been perfected under the UCC (to the extent a security interest in such property
may be perfected by filing under the applicable UCC) except, in each case, for liens and encumbrances that will be released concurrent
with the transfer of Receivables pursuant to the Receivables Purchase Agreement. Immediately prior to the transfer and assignment herein
contemplated, the Depositor had good and marketable title to the property conveyed to the Issuing Entity pursuant to Section 2.01
or 2.02 of this Agreement, as applicable, free and clear of all Liens, encumbrances, security interests and rights of others and,
immediately upon the transfer thereof, the Issuing Entity shall have good and marketable title to the Receivables, free and clear of all
Liens, encumbrances, security interests and rights of others; and the transfer has been perfected under the UCC (to the extent a security
interest in such property may be perfected by filing under the applicable UCC).

 

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(iii)          All
Filings Made. All filings (including UCC filings) necessary in any jurisdiction to give the Issuing Entity a first perfected ownership
interest in the Receivables, and to give the Indenture Trustee a first perfected security interest therein, shall have been made.

 

(iv)          Location
of Receivable Files. The Receivable Files are, and will be, kept at the locations listed in Schedule B or at such other office
or location as shall be specified to the Issuing Entity and the Indenture Trustee by written notice prior to any change in location together
with the Opinion of Counsel required by Section 10.02(j).

 

(v)           Computer
Records. World Omni and the Depositor will cause their accounting and computer records to be marked to indicate the sale and assignment
of the Receivables from World Omni to the Depositor and from the Depositor to the Trust.

 

(vi)          Computer
Code. Each of the Receivables is identified on World Omni’s computer files by a code indicating the Receivables are owned by
the Trust and pledged to the Indenture Trustee. The Receivables are the only Contracts listed on the Schedule of Receivables, are the
only Contracts identified on World Omni’s computer files by such code, and are not identified on World Omni’s computer files
by any other code.

 

Section 3.02            Repurchase
upon Breach; Dispute Resolution.

 

(a)            Investigation
of Breach. If World Omni (i) has knowledge of a breach of a representation or warranty made in Section 3.01(a), (ii) receives
notice from the Depositor, the Issuing Entity, the Owner Trustee or the Indenture Trustee of a breach of a representation or warranty
made in Section 3.01(a), (iii) receives a Repurchase Request from the Owner Trustee or the Indenture Trustee for a Receivable
or (iv) receives a Review Report that indicates a Test Fail for a Receivable, then, in each case, World Omni will investigate the
Receivable to confirm the breach and determine if the breach has a material adverse effect on the Receivable. None of the Servicer, the
Issuing Entity, the Owner Trustee, the Indenture Trustee, the Asset Representations Reviewer or the Administrator will have an obligation
to investigate whether a breach of any representation or warranty has occurred or whether any Receivable is required to be repurchased
under Section 3.02(b). The Depositor, the Servicer or the Trust, as the case may be, shall inform the other parties to this
Agreement and the Indenture Trustee promptly, in writing, upon the discovery of any breach of World Omni’s representations and warranties
made pursuant to Section 3.01(a).

 

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(b)            Repurchase.
Unless any such breach shall have been cured by the last day of the second Collection Period following the discovery thereof or receipt
of notice thereof by World Omni as described in Section 3.02(a), World Omni shall be obligated to repurchase any Receivable
materially and adversely affected by any such breach as of such last day (or, at World Omni’s option, the last day of the first
Collection Period following the discovery) and World Omni shall deliver a revised Schedule of Receivables to the Depositor and the Trust
which shall reflect the repurchase of such Receivables. In consideration of the repurchase of any such Receivable, World Omni shall remit
the Purchase Amount, in the manner specified in Section 5.05. Upon such repurchase, the Issuing Entity will, without further
action, be deemed to have sold and assigned to World Omni all of the Issuing Entity’s right, title and interest in the Receivable
repurchased by World Omni under this Section 3.02(b) and all security and documents relating to the Receivable. The
sale will not require any action by the Issuing Entity and will be without recourse, representation or warranty by the Issuing Entity
except the representation that the Issuing Entity owns the Receivable free and clear of any Lien, other than a Lien pursuant to the Basic
Documents. On the sale, the Servicer will mark its receivables systems to indicate that the receivable is no longer a Receivable and
may take any action necessary or advisable to evidence the sale of the receivable, free from any Lien of the Issuing Entity or the Indenture
Trustee. Subject to the provisions of Section 6.03, the sole remedy of the Issuing Entity, the Owner Trustee, the Indenture
Trustee, the Noteholders or the Certificateholders with respect to a breach of representations and warranties pursuant to Section 3.01(a) and
the agreement contained in this section shall be to require World Omni to repurchase Receivables pursuant to this section, subject to
the conditions contained herein.

 

(c)            Dispute
Resolution.

 

(i)            Referral
to Dispute Resolution. If the Issuing Entity, the Owner Trustee, the Indenture Trustee, a Noteholder or a Note Owner (the “Requesting
Party”) requests that World Omni repurchase a Receivable due to an alleged breach of a representation and warranty in Section 3.01(a) (which
repurchase request shall provide sufficient detail so as to allow World Omni to reasonably investigate the alleged breach of the representations
and warranties in Section 3.01(a); provided that with respect to a repurchase request from a Noteholder or a Note
Owner, such repurchase request shall initially be provided to the Indenture Trustee) (each, a “Repurchase Request”),
and the Repurchase Request has not been resolved, the alleged breach has not otherwise been cured or the related Receivable has not otherwise
been repurchased, paid-off or otherwise satisfied, within 180 days of the receipt of notice of the Repurchase Request by World Omni,
the Requesting Party may refer the matter, in its discretion, to either mediation (including non-binding arbitration) or binding third-party
arbitration by filing in accordance with ADR Rules and providing a notice to World Omni. The Requesting Party must start the mediation
(including non-binding arbitration) or arbitration proceeding according to the ADR Rules of the ADR Organization within 90 days
after the end of the 180-day period. World Omni agrees to participate in the dispute resolution method selected by the Requesting Party.
However, if the Receivable subject to a Repurchase Request was part of a Review and the Review Report states no Test Fails for the Receivable,
the Repurchase Request for the Receivable will be deemed to have been resolved.

 

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(ii)            Mediation.
If the Requesting Party selects mediation for dispute resolution:

 

(A)            The
mediation will be administered by the ADR Organization using its ADR Rules. However, if any ADR Rules are inconsistent with the
procedures for mediation stated in this Section 3.02(c), the procedures in this Section 3.02(c) will control.

 

(B)            A
single mediator will be selected by the ADR Organization from a list of neutral mediators maintained by it according to the ADR Rules.
The mediator must be impartial, an attorney admitted to practice in the State of New York and have at least 15 years of experience in
commercial litigation and, if possible, consumer finance or asset-backed securitization matters.

 

(C)            The
mediation will start within 15 days after the selection of the mediator and conclude within 30 days after the start of the mediation.

 

(D)            Expenses
of the mediation will be allocated among the parties as mutually agreed by them as part of the mediation.

 

(E)            If
the parties fail to agree at the completion of the mediation, the Requesting Party may refer the Repurchase Request to binding arbitration
under this Section 3.02(c) or may seek adjudication of the Repurchase Request in court.

 

(iii)            Binding
Arbitration. If the Requesting Party selects arbitration for dispute resolution:

 

(A)            The
arbitration will be administered by the ADR Organization using its ADR Rules. However, if any ADR Rules are inconsistent with the
procedures for arbitration stated in this Section 3.02(c), the procedures in this Section 3.02(c) will control.

 

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(B)            A
single arbitrator will be selected by the ADR Organization from a list of neutral arbitrators maintained by it according to the ADR Rules.
The arbitrator must be impartial, an attorney admitted to practice in the State of New York and have at least 15 years of experience
in commercial litigation and, if possible, consumer finance or asset-backed securitization matters. The arbitrator will be independent
and impartial and will comply with the Code of Ethics for Arbitrators in Commercial Disputes in effect at the time of the arbitration.
Before accepting an appointment, the arbitrator must promptly disclose any circumstances likely to create a reasonable inference of bias
or conflict of interest or likely to preclude completion of the proceedings within the stated time schedule. The arbitrator may be removed
by the ADR Organization for cause consisting of actual bias, conflict of interest or other serious potential for conflict.

 

(C)            The
arbitrator will have the authority to schedule, hear and determine any motions, including dispositive and discovery motions, according
to New York law, and will do so at the motion of any party. Discovery will be completed within 30 days of selection of the arbitrator
and will be limited for each party to two witness depositions not to exceed five hours, two interrogatories, one document request and
one request for admissions. However, the arbitrator may grant additional discovery on a showing of good cause that the additional discovery
is reasonable and necessary. Briefs will be limited to no more than ten pages each, and will be limited to initial statements of
the case, motions and a pre-hearing brief. The evidentiary hearing on the merits will start no later than 60 days after selection of
the arbitrator and will proceed for no more than six consecutive Business Days with equal time allocated to each party for the presentation
of evidence and cross examination. The arbitrator may allow additional time for discovery and hearings on a showing of good cause or
due to unavoidable delays.

 

(D)            The
arbitrator will make its final determination no later than 90 days after its selection. The arbitrator will resolve the dispute according
to the terms of this Agreement and the other Basic Documents, and may not modify or change this Agreement or the other Basic Documents
in any way or award remedies not consistent with the Basic Documents. The arbitrator will not have the power to award punitive damages
or consequential damages in any arbitration conducted by it. In its final determination, the arbitrator will determine and award the
expenses of the arbitration (including filing fees, the fees of the arbitrator, expense of any record or transcript of the arbitration
and administrative fees) to the parties in its reasonable discretion. The determination of the arbitrator will be in writing and counterpart
copies will be promptly delivered to the parties. The determination will be final and non-appealable, except for actions to confirm or
vacate the determination permitted under federal or State law, and may be entered and enforced in any court of competent jurisdiction
over the parties and the matter.

 

(E)            By
selecting binding arbitration, the Requesting Party is giving up the right to sue in court, including the right to a trial by jury.

 

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(F)            The
Requesting Party may not bring a putative or certificated class action to arbitration. If this waiver of class action rights is found
to be unenforceable for any reason, the Requesting Party agrees that it will bring its claims in a court of competent jurisdiction.

 

(iv)            Additional
Conditions. For each mediation or arbitration:

 

(A)            Any
mediation or arbitration will be held in New York, New York at the offices of the mediator or arbitrator or at another location selected
by World Omni. Any party or witness may participate by teleconference or video conference.

 

(B)            World
Omni and the Requesting Party will have the right to seek provisional relief from a competent court of law, including a temporary restraining
order, preliminary injunction or attachment order, if such relief is available by law.

 

(C)            Under
no circumstances will the Owner Trustee or the Indenture Trustee, respectively, in its individual capacity be liable for any costs, expenses
or liabilities that could be allocated to the Requesting Party in any mediation or arbitration.

 

(v)            World
Omni will not be required to produce Personally Identifiable Information for purposes of any mediation or arbitration. The existence
and details of any unresolved Repurchase Request, any informal meetings, mediations or arbitration proceedings, the nature and amount
of any relief sought or granted, any offers or statements made and any discovery taken in the proceeding will be confidential, privileged
and inadmissible for any purpose in any other mediation, arbitration, litigation or other proceeding. The parties will keep this information
confidential and will not disclose or discuss it with any third party (other than a party’s attorneys, experts, accountants and
other advisors, as reasonably required in connection with the mediation or arbitration proceeding under this Section 3.02(c)),
except as required by law, regulatory requirement or court order. If a party to a mediation or arbitration proceeding receives a subpoena
or other request for information from a third party (other than a governmental regulatory body) for confidential information of the other
party to the mediation or arbitration proceeding, the recipient will promptly notify the other party and will provide the other party
with the opportunity to object to the production of its confidential information.

 

Section 3.03           Custody
of Receivable Files. To assure uniform quality in servicing the Receivables and to reduce administrative costs, the Issuing Entity
hereby revocably appoints the Servicer, and the Servicer hereby accepts such appointment, to act for the benefit of the Issuing Entity
and the Indenture Trustee as custodian of the following documents or instruments which are hereby or will hereby be constructively delivered
to the Indenture Trustee, as pledgee of the Issuing Entity, as of the Closing Date with respect to each Receivable:

 

(a)            in
the case of each Receivable constituting “tangible chattel paper”, the fully executed original Contract of such Receivable
or, in the case of each Receivable constituting “electronic chattel paper”, the “authoritative copy” (as such
term is used in Section 9-105 of the UCC) of the electronic Contract of such Receivable;

 

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(b)            the
credit application fully executed by the Obligor or such other information as the Servicer may keep on file in accordance with its customary
servicing procedures;

 

(c)            the
original certificate of title or such documents that the Servicer or the Depositor shall keep on file, in accordance with its customary
procedures, evidencing the security interest of World Omni in the Financed Vehicle; and

 

(d)            any
and all other documents that the Servicer or the Depositor shall keep on file, in accordance with its customary procedures, relating
to a Receivable, an Obligor or a Financed Vehicle;

 

provided,
that the Servicer may appoint one or more agents to act as subcustodians of certain items in the Receivables Files so long as the Servicer
remains primarily responsible for their safekeeping, provided, further, that the Servicer shall not transmit or transfer
the authoritative copy of a Receivable that is in the form of electronic chattel paper to another person.

 

Section 3.04           Duties
of Servicer as Custodian.

 

(a)            Safekeeping.
The Servicer shall hold the Receivable Files as custodian for the benefit of the Issuing Entity and maintain such accurate and complete
accounts, records and computer systems pertaining to each Receivable File as shall enable the Issuing Entity to comply with this Agreement.
In performing its duties as custodian the Servicer shall act with reasonable care, using that degree of skill and attention that the
Servicer exercises with respect to the receivable files relating to all comparable automotive receivables that the Servicer services
for itself or others. The Servicer covenants and agrees that it shall hold the Receivable Files in such a manner as to prevent any other
Person from obtaining “control” of any “electronic chattel paper” included therein (as such terms are used in
section 9-105 of the UCC). The Servicer shall promptly report to the Issuing Entity and the Indenture Trustee any failure on its part
to hold the Receivable Files and maintain its accounts, records and computer systems as herein provided and shall promptly take appropriate
action to remedy any such failure. Nothing herein shall be deemed to require an initial review or any periodic review by the Issuing
Entity or the Indenture Trustee of the Receivable Files.

 

(b)            Maintenance
of and Access to Records. The Servicer shall maintain each Receivable File at one of its offices, or at such other location, in each
case as specified in Schedule B or at such other office or location of the Servicer or a third-party agent retained by the Servicer
as shall be specified to the Issuing Entity and the Indenture Trustee by written notice prior to any change in location together with
the Opinion of Counsel required by Section 10.02(j).

 

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The Servicer shall provide
to the Indenture Trustee and, following the receipt of a Review Notice, the Asset Representation Reviewer, access to any and all documentation
regarding the Receivables in such cases where the Indenture Trustee is required in connection with the enforcement of the rights of the
Noteholders, or by applicable statutes or regulations to review such documentation or the Asset Representations Reviewer is obligated
to conduct a Review, as applicable, such access being afforded without charge but only (a) upon reasonable request, (b) during
normal business hours, (c) subject to the Servicer’s normal security and confidentiality procedures and (d) at offices
designated by the Servicer. Nothing in this Section 3.04(b) shall derogate from the obligation of the Servicer, the
Indenture Trustee or the Asset Representation Reviewer to observe any applicable law prohibiting disclosure of information regarding
the Obligors and the failure of the Servicer to provide access as provided in this Section 3.04(b) as a result of such
obligation shall not constitute a breach of this Section 3.04(b).

 

(c)            Release
of Documents. Upon instruction from the Indenture Trustee, the Servicer shall release any Receivable File to the Indenture Trustee,
the Indenture Trustee’s agent or the Indenture Trustee’s designee, as the case may be, at such place or places as the Indenture
Trustee may designate, as soon as practicable, after receipt of such instruction.

 

Section 3.05           Instructions;
Authority to Act. The Servicer shall be deemed to have received proper instructions with respect to the Receivable Files upon its
receipt of written instructions signed by a Trust Officer of the Indenture Trustee.

 

Section 3.06           Custodian’s
Indemnification. The Servicer as custodian shall indemnify the Trust, the Owner Trustee, and the Indenture Trustee and each of their
respective officers, directors, employees and agents for any and all liabilities, obligations, losses, compensatory damages, payments,
costs or expenses of any kind whatsoever that may be imposed on, incurred by or asserted against the Trust, the Owner Trustee, or the
Indenture Trustee or any of their respective officers, directors, employees and agents as the result of any improper act or omission
in any way relating to the maintenance and custody by the Servicer as custodian of the Receivable Files, including, but not limited to,
the cost of defending any claim or bringing any claim to enforce such indemnification or other obligations of the Servicer; provided,
however, that the Servicer shall not be liable to the Owner Trustee for any portion of any such amount resulting from the willful misconduct,
bad faith or negligence of the Owner Trustee, and the Servicer shall not be liable to the Indenture Trustee for any portion of any such
amount resulting from the willful misconduct, bad faith or negligence of the Indenture Trustee.

 

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Section 3.07           Effective
Period and Termination. The Servicer’s appointment as custodian shall become effective as of the Cutoff Date and shall continue
in full force and effect until terminated pursuant to this Section. If World Omni shall resign as Servicer in accordance with the provisions
of this Agreement or if all of the rights and obligations of any Servicer shall have been terminated under Section 8.01, the appointment
of such Servicer as custodian may be terminated by the Indenture Trustee or by the Holders of the Controlling Securities evidencing not
less than 25% of the Outstanding Amount of the Controlling Securities or, with the consent of Holders of the Controlling Securities evidencing
not less than 25% of the Outstanding Amount of the Controlling Securities, by the Owner Trustee, in the same manner as the Indenture
Trustee or such Holders may terminate the rights and obligations of the Servicer under Section 8.01. As soon as practicable after
any termination of such appointment, the Servicer shall deliver the Receivable Files to the Indenture Trustee or the Indenture Trustee’s
agent at such place or places as the Indenture Trustee may reasonably designate; provided, however, that with respect to “authoritative
copies” of the Receivables constituting “electronic chattel paper,” (a) if the Servicer’s appointment as
custodian has been terminated in connection with the resignation or termination of the Servicer as servicer, the custodian shall transfer
such “authoritative copies” to the successor Servicer or (b) otherwise, unless otherwise instructed by the Indenture
Trustee, such “authoritative copies” shall be transferred to the Indenture Trustee or the Indenture Trustee’s designee.
In each case, if necessary, an authorized representative of World Omni shall use commercially reasonable efforts to convert an authoritative
copy into tangible form by permanently removing such electronic authoritative copy from World Omni’s electronic vaulting system
and causing a contract in tangible form to be printed as the tangible authoritative copy that constitutes original tangible chattel paper
for purposes of the UCC, and shall deliver such tangible authoritative copy to the successor Servicer or to the Indenture Trustee or
the Indenture Trustee’s designee at the place or places as the Indenture Trustee may reasonably designate.

 

Article IV

ADMINISTRATION AND SERVICING OF RECEIVABLES

 

Section 4.01           Duties
of Servicer. The Servicer, for the benefit of the Issuing Entity (to the extent provided herein), shall manage, service, administer
and receive collections on the Receivables (other than Purchased Receivables) with reasonable care, using that degree of skill and attention
that the Servicer exercises with respect to all comparable automotive receivables that it services for itself or others. The Servicer’s
duties shall include collection and posting of all payments, responding to inquiries of Obligors on such Receivables, investigating delinquencies,
sending invoices to Obligors, reporting tax information to Obligors, accounting for collections, paying the fee of the Administrator
out of its own funds pursuant to Section 1.03 of the Administration Agreement and furnishing a Servicer’s Certificate to the
Indenture Trustee. Subject to the provisions of Section 4.02, the Servicer shall follow its customary standards, policies and procedures
in performing its duties as Servicer. Without limiting the generality of the foregoing, the Servicer is authorized and empowered to execute
and deliver, on behalf of itself, the Issuing Entity, the Owner Trustee, the Indenture Trustee, the Certificateholders and the Noteholders
or any of them, any and all instruments of satisfaction or cancellation, or partial or full release or discharge, and all other comparable
instruments, with respect to such Receivables or to the Financed Vehicles securing such Receivables. If the Servicer shall commence a
legal proceeding to enforce a Receivable, the Issuing Entity (in the case of a Receivable other than a Purchased Receivable) shall thereupon
be deemed to have automatically assigned, solely for the purpose of collection, such Receivable to the Servicer. If in any enforcement
suit or legal proceeding it shall be held that the Servicer may not enforce a Receivable on the ground that it shall not be a real party
in interest or a holder entitled to enforce such Receivable, the Owner Trustee shall on behalf of the Issuing Entity, at the Servicer’s
expense and direction, take steps to enforce such Receivable, including bringing suit in its name or the name of the Owner Trustee, the
Indenture Trustee, the Certificateholders or the Noteholders. The Owner Trustee shall upon the written request of the Servicer furnish
the Servicer with any powers of attorney and other documents, in forms provided to it, reasonably necessary or appropriate to enable
the Servicer to carry out its servicing and administrative duties hereunder.

 

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Section 4.02           Collection
and Allocation of Receivable Payments. The Servicer shall make reasonable efforts to collect all payments called for under the terms
and provisions of the Receivables as and when the same shall become due and shall follow such collection procedures as it follows with
respect to all comparable automotive receivables that it services for itself or others. The Servicer shall allocate collections as set
forth in Section 5.03. The Servicer may grant extensions, rebates or adjustments on a Receivable, which shall not, for the purposes
of this Agreement, modify the day of the month on which payment is due (except in connection with a limited number of accommodations
for Obligors of occasional requests in accordance with the Servicer’s customary servicing procedures) or change the method under
which scheduled payments of interest are computed on such Receivable; provided, however, that if the Servicer extends the date for final
payment by the Obligor of any Receivable beyond the month immediately preceding the month in which the Final Scheduled Payment Date for
the Class C Notes occurs, the Servicer shall purchase any such Receivable as of the earlier of (a) the last day of the second
Collection Period following the date of such extension (or, at the Servicer’s election, the last day of the first following Collection
Period) and (b) the last day of the month immediately preceding the month in which the Final Scheduled Payment Date for the Class C
Notes occurs, in each case in accordance with the terms of Section 4.07(b). The Servicer shall not retain any fees in connection
with any extension of a Receivable but shall instead deposit such fees into the Collection Account within two Business Days of receipt
(including receipt of proper instructions regarding where to allocate such payment) unless the Servicer is making deposits on a monthly
basis as permitted under Section 5.02. The Servicer may in its discretion waive any late payment charge or any other fees that may
be collected in the ordinary course of servicing a Receivable. The Servicer shall not agree to any alteration of the interest rate or
the originally scheduled payments on any Receivable, other than as provided herein or as required by law.

 

Section 4.03           Realization
upon Receivables. On behalf of the Issuing Entity, the Servicer shall use commercially reasonable efforts, consistent with its customary
servicing procedures, to repossess or otherwise convert the ownership of the Financed Vehicle securing any Receivable as to which the
Servicer shall have determined eventual payment in full is unlikely. The Servicer shall follow such customary and usual practices and
procedures as it shall deem necessary or advisable in its servicing of automotive receivables, which may include selling the Financed
Vehicle at public or private sale. The Servicer is hereby authorized to exercise its discretion, consistent with its customary servicing
procedures and the terms of this Agreement, in servicing Defaulted Receivables so as to maximize the realization of those Defaulted Receivables,
including the discretion to choose to sell or not to sell any of the Defaulted Receivables. The Servicer shall not be liable for any
such exercise of its discretion made in good faith.

 

Section 4.04           Physical
Damage Insurance. To the extent applicable, the Servicer shall not take any action that would result in noncoverage under such physical
damage insurance policy which, but for the actions of the Servicer, would have been covered thereunder. Any amounts collected by the
Servicer under any physical damage insurance policy shall be deposited in the Collection Account pursuant to Section 5.02. The parties
hereto acknowledge that the Servicer shall not force place any insurance coverage.

 

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Section 4.05           Maintenance
of Security Interests in Financed Vehicles. The Servicer shall, in accordance with its customary servicing procedures, take such
steps as are necessary to maintain perfection of the security interest created by each Receivable in the related Financed Vehicle. The
Servicer is hereby authorized to take such steps as are necessary to re-perfect such security interest on behalf of the Issuing Entity
and the Indenture Trustee in the event of the relocation of a Financed Vehicle or for any other reason.

 

Section 4.06           Covenants
of Servicer. The Servicer shall not release the Financed Vehicle securing any Receivable from the security interest granted by such
Receivable in whole or in part except in the event of (i) payment by the Obligor (a) in full or (b) in part with a remaining
total payment shortage amount which, according to the Servicer’s customary procedures, does not exceed the amount of total payment
shortage that would permit the Servicer to release the related Financed Vehicle from the security interest or (ii) repossession,
nor shall the Servicer impair the rights of the Issuing Entity, the Indenture Trustee, the Certificateholders or the Noteholders in such
Receivable.

 

Section 4.07           Purchase
of Receivables Upon Breach or Extension Beyond Final Scheduled Payment Date.

 

(a)            The
Servicer or the Trust shall inform the other party and a Responsible Officer of the Indenture Trustee and the Depositor promptly, in
writing, upon the discovery of any breach pursuant to Section 4.02, 4.05, 4.06 or 7.01. Unless the breach
shall have been cured by the last day of the second Collection Period following such discovery or written notice (or, at the Servicer’s
election, the last day of the first following Collection Period), the Servicer shall purchase any Receivable materially and adversely
affected by such breach as of such last day.

 

(b)            In
consideration of the purchase of any Receivable pursuant to Section 4.02 or Section 4.07(a), the Servicer shall
remit the Purchase Amount in the manner specified in Section 5.05, and the Servicer shall deliver a revised Schedule of Receivables
to the Depositor and the Trust, which shall reflect the repurchase of such Receivables. Subject to Section 7.02, the sole
remedy of the Issuing Entity, the Owner Trustee, the Indenture Trustee, the Certificateholders or the Noteholders with respect to a breach
pursuant to Section 4.02, 4.05, 4.06 or 7.01 or the extension of a Receivable beyond the month immediately
preceding the month in which the Final Scheduled Payment Date for the Class C Notes occurs under Section 4.02 shall
be to require the Servicer to purchase such Receivables. None of the Servicer, the Issuing Entity, the Owner Trustee, the Indenture Trustee,
the Asset Representations Reviewer, the Seller, the Depositor or the Administrator will have an obligation to investigate whether a breach,
extension or other event has occurred that would require the purchase of any Receivable under Section 4.02 or Section 4.07(a) or
whether any Receivable is required to be purchased under Section 4.02 or Section 4.07(a).

 

Section 4.08           Servicing
Fee. The Servicing Fee for a Payment Date shall equal the product of (a) one-twelfth, (b) the Servicing Fee Rate and (c) the
aggregate Principal Balance of the Receivables as of the first day of the related Collection Period; provided, however, that the Servicing
Fee on the initial Payment Date shall be prorated to compensate for the length of the initial Collection Period being longer than one
month. The Servicer shall also be entitled to all Supplemental Servicing Fees collected (from whatever source) on the Receivables, the
amount of any Servicing Fee due but not distributed to the Servicer on a prior Payment Date (including any amounts previously deferred
by the Servicer as provided in this Section 4.08) plus any reimbursement pursuant to the last paragraph of Section 7.02. The
Servicer may, as long as it believes that sufficient collections will be available from interest collections on one or more future Payment
Dates to pay the Servicing Fee, by notice to the Indenture Trustee on or before a Payment Date, elect to defer all or a portion of the
Servicing Fee with respect to the related Collection Period, without interest. If the Servicer defers all of the Servicing Fee, the Servicing
Fee for such related Collection Period will be deemed to equal zero.

 

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Section 4.09           Servicer’s
Certificate. On or prior to the close of business on each Payment Determination Date, the Servicer shall deliver a Servicer’s
Certificate pursuant to Section 5.08. Receivables to be purchased by the Servicer or to be repurchased by World Omni or the Depositor
shall be identified by the Servicer by asset number with respect to such Receivable (as specified in the Schedule of Receivables). For
the avoidance of doubt, such information shall include any Benchmark related information required pursuant to Section 8.03 of the
Indenture.

 

Section 4.10           Annual
Statement as to Compliance; Item 1122 Servicing Criteria Assessment; Notice of Default.

 

(a)            To
the extent required by Regulation AB, the Servicer shall deliver (and shall cause each of its Reporting Subcontractors, if any, to deliver)
to the Owner Trustee and the Indenture Trustee on or before the date that is 90 days after the end of each calendar year, commencing
with the calendar year ended December 31, 2022, an Officer’s Certificate as required under Item 1123 of Regulation AB, dated
as of December 31 of the preceding year, stating that (i) a review of the activities of the Servicer during the preceding calendar
year (or such shorter period as shall have elapsed since the Closing Date) and of its performance under this Agreement has been made
under such officer’s supervision and (ii) to the best of such officer’s knowledge, based on such review, the Servicer
has fulfilled all its obligations under this Agreement in all material respects throughout such reporting period, or, if there has been
a failure to fulfill any such obligation in any material respect, specifying each such failure known to such officer and the nature and
status thereof. The Servicer shall send a copy of such certificate and the report referred to in Section 4.11 to the Rating
Agencies. A copy of such certificate and the report referred to in Section 4.11 may be obtained by any Certificateholder
or Noteholder by a request in writing to the Indenture Trustee addressed to the Corporate Trust Office. Upon the request of the Owner
Trustee, the Indenture Trustee will promptly furnish the Owner Trustee a list of Noteholders as of the date specified by the Owner Trustee.

 

(b)            The
Servicer shall deliver to the Owner Trustee and the Indenture Trustee, on or before the date that is 90 days after the end of each calendar
year, commencing with the calendar year ended December 31, 2022, a report, dated as of December 31 (or other applicable date)
of the preceding year, regarding the Servicer’s assessment of compliance with the Servicing Criteria during the immediately preceding
calendar year, including disclosure of any material instance of non-compliance identified by the Servicer, as described in Rule 13a-18
and 15d-18 of the Exchange Act and Item 1122 of Regulation AB. Deliveries pursuant to this Section 4.10(b) may be delivered
by electronic mail.

 

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(c)            The
Servicer shall deliver to the Owner Trustee, the Indenture Trustee and the Rating Agencies, promptly after having obtained knowledge
thereof, but in no event later than five (5) Business Days thereafter, unless such default shall have been cured prior to such date,
written notice in an Officer’s Certificate of any event which with the giving of notice or lapse of time, or both, would become
a Servicer Default under Section 8.01(a) or (b).

 

Section 4.11           Annual
Independent Certified Public Accountants’ Report. The Servicer shall cause a firm of independent certified public accountants,
who may also render other services to the Servicer or to its Affiliates, to deliver to the Servicer (who shall promptly provide the assessment
described in this Section 4.11 to the Rating Agencies), the Indenture Trustee and the Owner Trustee and, on or before the date that
is 90 days after the end of the Servicer’s fiscal year, commencing with the fiscal year ended December 31, 2022, a report,
dated as of December 31 of the preceding fiscal year, addressed to the board of directors of the Servicer, providing its assessment
of compliance with the Servicing Criteria during the preceding fiscal year, including disclosure of any material instance of non-compliance,
as described in Rule 13a-18 or Rule 15d-18 under the Exchange Act and Item 1122(b) of Regulation AB. Such attestation
shall be in accordance with Rule 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and the Exchange Act.
Deliveries pursuant to this Section 4.11 may be delivered by electronic mail.

 

Section 4.12           Access
to Certain Documentation and Information Regarding Receivables. The Servicer shall provide to the Certificateholders and Noteholders
access to the Receivable Files in such cases where the Certificateholders or Noteholders shall be required by applicable statutes or
regulations to review such documentation. Access shall be afforded without charge, but only upon reasonable request and during the normal
business hours at the offices of the Servicer. Nothing in this Section shall affect the obligation of the Servicer to observe any
applicable law prohibiting disclosure of information regarding the Obligors and the failure of the Servicer to provide access to information
as a result of such obligation shall not constitute a breach of this section.

 

Section 4.13           Servicer
Expenses. The Servicer shall be required to pay all expenses incurred by it in connection with its activities hereunder, including
fees and disbursements of independent accountants, taxes imposed on the Servicer and expenses incurred in connection with distributions
and reports to Certificateholders and Noteholders.

 

Section 4.14           Appointment
of Subservicer. The Servicer may at any time appoint a subservicer to perform all or any portion of its obligations as Servicer hereunder;
provided, however, that the Servicer shall remain obligated and be liable to the Issuing Entity, the Owner Trustee, the Indenture Trustee,
the Certificateholders and the Noteholders for the servicing and administering of the Receivables in accordance with the provisions hereof
without diminution of such obligation and liability by virtue of the appointment of such subservicer and to the same extent and under
the same terms and conditions as if the Servicer alone were servicing and administering the Receivables. The fees and expenses of the
subservicer shall be as agreed between the Servicer and its subservicer from time to time, and none of the Issuing Entity, the Owner
Trustee, the Indenture Trustee, the Certificateholders or the Noteholders shall have any responsibility therefor. The Servicer shall
give the Indenture Trustee written notice of any subservicer appointed hereunder.

 

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Section 4.15           Communications
Between Noteholders. The Servicer will comply with its obligations under Section 7.02(e) of the Indenture to include in
the Form 10-D filed by the Issuing Entity with the Commission for the Collection Period the information described in such Section.
The Servicer will bear any costs associated with including any such communication in such Form 10-D.

 

Section 4.16           Exchange
Act Certifications. To the extent permitted by Exchange Act Rules, the Servicer shall prepare, execute, file and deliver on behalf
of the Issuing Entity any certification or other instrument as required by Exchange Act Rules 13a-14 and 15d-14.

 

Article V

TRUST ACCOUNTS; DISTRIBUTIONS; STATEMENTS TO CERTIFICATEHOLDERS AND NOTEHOLDERS

 

Section 5.01           Establishment
of Trust Accounts.

 

(a)            (i) The
Servicer, for the benefit of the Noteholders and the Certificateholders, shall cause to be established and maintained with the Account
Bank and in the name of the Indenture Trustee, an Eligible Deposit Account (the “Collection Account”), bearing a designation
clearly indicating that the funds deposited therein are held for the benefit of the Noteholders and the Certificateholders.

 

(ii)            The
Servicer, for the benefit of the Noteholders, shall cause to be established and maintained with the Account Bank and in the name of the
Indenture Trustee, an Eligible Deposit Account (the “Note Distribution Account”), bearing a designation clearly indicating
that the funds deposited therein are held for the benefit of the Noteholders.

 

(iii)            The
Servicer, for the benefit of the Issuing Entity, shall cause to be established and maintained with the Account Bank and in the name of
the Issuing Entity, an Eligible Deposit Account (the “Reserve Account”), bearing a designation clearly indicating
that the funds deposited therein are held for the benefit of the Issuing Entity.

 

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(b)            Funds
on deposit in the Collection Account, the Note Distribution Account and the Reserve Account (collectively the “Trust Accounts”)
shall be invested by the Account Bank on behalf of the Indenture Trustee in Eligible Investments, selected by the Servicer; provided,
that, funds on deposit in the Reserve Account shall be invested only in Eligible Investments meeting the requirements of §246.4(b)(2) of
Regulation RR, as determined solely by the Servicer. In the absence of written direction from the Servicer, such funds shall be invested
or remain uninvested, in accordance with Section 8.04 of the Indenture. All such Eligible Investments shall be held by the Account
Bank on behalf of the Indenture Trustee for the benefit of the Noteholders, the Certificateholders and the Issuing Entity, as applicable;
provided, that on each Payment Determination Date all interest and other Investment Earnings on funds on deposit in the
Trust Accounts shall be deposited into the Collection Account and shall be deemed to constitute a portion of Available Funds for the
related Payment Date. Other than as permitted by the Rating Agencies, funds on deposit in the Collection Account, the Reserve Account
and the Note Distribution Account shall be invested in Eligible Investments that will mature (A) not later than the Business Day
immediately preceding the next Payment Date or (B) on or before 10:00 a.m. on such next Payment Date if such investment is
held in the corporate trust department of the institution with which the Collection Account, the Reserve Account and the Note Distribution
Account, as applicable, is then maintained and is invested either (i) in a time deposit of the Indenture Trustee rated at least
A-1 by S&P Global Ratings and F1 or A by Fitch (such account being maintained within the corporate trust department of the Indenture
Trustee), (ii) in the Indenture Trustee’s common trust fund so long as such fund is rated in the highest applicable rating
category by S&P Global Ratings and Fitch or (iii) in Eligible Investments specified in clauses (b), (g) or
(i) of the definition thereof; and provided that all such Eligible Investments shall be held to maturity (to the extent such
Eligible Investment has an applicable maturity date) and be available for redemption and use by the Indenture Trustee on or prior to
the relevant Payment Date. Moreover, the Servicer shall not direct the Indenture Trustee to invest funds in the Trust Accounts in any
Eligible Investment that would not mature or be capable of being liquidated on or prior to the relevant Payment Date. In no event shall
the Indenture Trustee be held liable for investment losses in Eligible Investments pursuant to this Section 5.01, except
in its capacity as obligor thereunder. Except as otherwise provided hereunder or agreed in writing among the parties hereto, the Servicer
shall retain the authority to institute, participate and join in any plan of reorganization, readjustment, merger or consolidation with
respect to the issuer of any Eligible Investments held hereunder, and, in general, to exercise each and every other power or right with
respect to each such asset or investment as individuals generally have and enjoy with respect to their own assets and investment, including
power to vote upon any securities.

 

(c)            (i) The
Indenture Trustee shall possess all right, title and interest in all funds on deposit from time to time in the Trust Accounts and in
all proceeds thereof (including all income thereon) and all such funds, investments, proceeds and income shall be part of the Trust Estate.
The Account Bank hereby agrees that the Trust Accounts (other than the Reserve Account) shall be under the sole dominion and control
of the Indenture Trustee for the benefit of the Noteholders and the Certificateholders, as the case may be. The Account Bank further
agrees that Reserve Account shall be under the sole dominion and control of the Indenture Trustee in the name of and for the benefit
of the Issuing Entity which such Reserve Account has been pledged by the Issuing Entity to the Indenture Trustee for the benefit of the
Noteholders. All of the Depositor’s right, title and interest to the Reserve Account has been conveyed by the Depositor to the
Issuing Entity pursuant to Section 2.01(e) hereof, including, all funds on deposit from time to time, and all investments,
proceeds and income thereof. The Depositor hereby grants to the Indenture Trustee on the Closing Date, as Indenture Trustee for the benefit
of the Noteholders, all of the Depositor’s right, title and interest in, to and under, whether now owned or existing or hereafter
acquired or arising, the Reserve Account and all proceeds thereof. If, at any time, any of the Trust Accounts ceases to be an Eligible
Deposit Account, the Servicer (upon written notice from the Indenture Trustee or the Account Bank that such account no longer qualifies)
shall within 10 Business Days (or such longer period, not to exceed 30 calendar days, as to which each Rating Agency may consent) establish
a new Trust Account as an Eligible Deposit Account and shall cause the Indenture Trustee, who shall instruct the Account Bank, to transfer
any cash and/or any investments to such new Trust Account. The Account Bank or the other Person holding the Trust Accounts as provided
in this Section 5.01(c)(i) shall be the “Securities Intermediary.” If the Securities Intermediary
shall be a Person other than the Indenture Trustee, the Servicer shall obtain the express agreement of such Person to the obligations
of the Securities Intermediary set forth in this Section 5.01.

 

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(ii)            With
respect to the Trust Account Property, the Securities Intermediary agrees, by its acceptance hereof, that:

 

(A)            The
Trust Accounts are accounts to which Financial Assets will be credited.

 

(B)            All
securities or other property underlying any Financial Assets credited to the Trust Accounts shall be registered in the name of the Securities
Intermediary, indorsed to the Securities Intermediary or in blank or credited to another securities account maintained in the name of
the Securities Intermediary and in no case will any Financial Asset credited to any of the Trust Accounts be registered in the name of
the Trust, the Servicer or the Depositor, payable to the order of the Trust, the Servicer or the Depositor or specially indorsed to the
Owner Trustee, the Servicer or the Depositor except to the extent the foregoing have been specially indorsed to the Securities Intermediary
or in blank.

 

(C)            All
property delivered to the Securities Intermediary pursuant to this Agreement will be promptly credited to the appropriate Trust Account.

 

(D)            Each
item of property (whether investment property, Financial Asset, security, instrument or cash) credited to a Trust Account shall be treated
as a “financial asset” within the meaning of Section 8-102(a)(9) of the New York UCC.

 

(E)            If
at any time the Securities Intermediary shall receive any order from the Indenture Trustee directing transfer or redemption of any Financial
Asset relating to the Trust Accounts, the Securities Intermediary shall comply with such entitlement order without further consent by
the Trust, the Servicer, the Depositor or any other Person.

 

(F)            The
Trust Accounts shall be governed by the laws of the State of New York, regardless of any provision in any other agreement. For purposes
of the UCC, New York shall be deemed to be the Securities Intermediary’s jurisdiction and the Trust Accounts (as well as the securities
entitlements (as defined in Section 8-102(a)(17) of the UCC) related thereto) shall be governed by the laws of the State of New
York.

 

(G)            The
Securities Intermediary has not entered into, and until the termination of this Agreement will not enter into, any agreement with any
other person relating to the Trust Accounts and/or any Financial Assets credited thereto pursuant to which it has agreed to comply with
entitlement orders (as defined in Section 8-102(a)(8) of the New York UCC) of such other person and the Securities Intermediary
has not entered into, and until the termination of this Agreement will not enter into, any agreement with the Trust, the Depositor, the
Servicer or the Indenture Trustee purporting to limit or condition the obligation of the Securities Intermediary to comply with entitlement
orders as set forth in Section 5.01(c)(ii)(E) hereof.

 

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(H)            Except
for the claims and interest of the Indenture Trustee and of the Trust in the Trust Accounts, the Securities Intermediary knows of no
claim to, or interest in, the Trust Accounts or in any Financial Asset credited thereto. If any other person asserts any lien, encumbrance
or adverse claim (including any writ, garnishment, judgment, warrant of attachment, execution or similar process) against the Trust Accounts
or in any Financial Asset carried therein, the Securities Intermediary will promptly notify the Indenture Trustee, the Servicer and the
Trust thereof.

 

(I)            The
Securities Intermediary will promptly send copies of all statements, confirmations and other correspondence concerning the Trust Accounts
and/or any Trust Account Property simultaneously to each of the Servicer and the Indenture Trustee.

 

(J)            The
Servicer shall have the power, revocable by the Indenture Trustee or by the Owner Trustee with the consent of the Indenture Trustee,
to instruct the Indenture Trustee to make withdrawals and payments from the Trust Accounts for the purpose of permitting the Servicer
or the Owner Trustee to carry out its respective duties hereunder or permitting the Indenture Trustee to carry out its duties under the
Indenture.

 

Section 5.02           Collections.
The Servicer shall remit to the Collection Account (and post such amounts to its records) within two Business Days of receipt and identification
of payment (including receipt of proper instructions regarding where to allocate such payment) all payments by or on behalf of the Obligors
with respect to the Receivables (other than Purchased Receivables) and all Recoveries, both as collected during the Collection Period.
Notwithstanding the foregoing, for so long as the Monthly Remittance Condition is satisfied, the Servicer shall not be required to remit
such collections on a daily basis, but may retain such collections without segregation and remit such collections with respect to the
preceding calendar month to the Collection Account on the Payment Determination Date immediately preceding the related Payment Date.
In the event that the Servicer is remitting collections on a monthly basis and the Monthly Remittance Condition shall no longer be satisfied,
within 14 Business Days after such event (the Servicer shall be permitted to continue monthly remittances during such 14-Business Day
period), the Servicer shall resume remitting such collections to the Collection Account within two Business Days after receipt and identification
of payment (including proper instructions regarding where to allocate such payment), unless the Servicer shall satisfy the Rating Agency
Condition with respect to continuing monthly remittances. For purposes of this Article V the phrase “payments by or on behalf
of Obligors” shall mean payments made with respect to the Receivables by Persons other than the Servicer or the Depositor.

 

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Section 5.03           Application
of Collections. With respect to each Receivable (other than a Purchased Receivable), payments by or on behalf of the Obligor shall
be applied to interest and principal in accordance with the Simple Interest Method.

 

Section 5.04           [Reserved].

 

Section 5.05           Additional
Deposits. The Servicer and the Depositor shall deposit or cause to be deposited in the Collection Account the aggregate Purchase
Amount with respect to Purchased Receivables and the Servicer shall deposit therein all amounts to be paid under Section 9.01. The
Servicer will deposit the aggregate Purchase Amount with respect to Purchased Receivables when such obligations are due. All such deposits
shall be made on the Payment Determination Date for the related Collection Period.

 

Section 5.06           Distributions.

 

(i)            On
or prior to the close of business on each Payment Determination Date, the Servicer shall calculate (A) all amounts required to be
deposited in the Note Distribution Account, and (B) all amounts required to be distributed to the Certificateholders.

 

(ii)            Except
as otherwise provided in clause (iii) below, on each Payment Date, the Servicer, based on the information contained in the
Servicer’s Certificate delivered on the related Payment Determination Date pursuant to Section 4.09 hereof, shall instruct
the Indenture Trustee to make the following deposits and distributions in the following order of priority, in each case, to the extent
of Available Funds, if any, remaining after application thereof pursuant to prior clauses:

 

(A)           to
the Asset Representations Reviewer, all fees, expenses and indemnities due to the Asset Representations Reviewer under the Asset Representations
Review Agreement and not previously paid by the Servicer, up to a maximum of $150,000 per calendar year;

 

(B)            to
the Note Distribution Account, the Class A Noteholders’ Interest Distributable Amount;

 

(C)            to
the Note Distribution Account, the Noteholders’ First Priority Principal Distributable Amount;

 

(D)            to
the Note Distribution Account, the Class B Noteholders’ Interest Distributable Amount;

 

(E)             to
the Note Distribution Account, the Noteholders’ Second Priority Principal Distributable Amount;

 

(F)             to
the Note Distribution Account, the Class C Noteholders’ Interest Distributable Amount;

 

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(G)            to
the Note Distribution Account, the Noteholders’ Third Priority Principal Distributable Amount;

 

(H)            to
the Reserve Account, the amount necessary to reinstate the balance in the Reserve Account up to the Required Reserve Amount;

 

(I)              to
the Note Distribution Account, an amount equal to the Noteholders’ Principal Distributable Amount minus any amounts allocated to
the Note Distribution Account pursuant to clauses (C), (E) and (G) above;

 

(J)              to
the Asset Representations Reviewer, all fees, expenses and indemnities due to the Asset Representations Reviewer under the Asset Representations
Review Agreement but not paid pursuant to clause (A) above; and

 

(K)             to
the Certificateholders, any remaining amounts; provided the Indenture Trustee has not received written instruction from the Certificateholders
of 100% percentage interest in the Certificates to redeposit all or a portion of such Available Funds due such Certificateholders into
the Collection Account.

 

The Holders of 100% Percentage Interest of the
Certificates will have the right, but not the obligation, in their sole discretion, to instruct the Indenture Trustee in writing on or
prior to the close of business on the related Payment Determination Date to retain in the Collection Account all or a portion of distributions
otherwise payable to them pursuant to clause (K) above. If the Certificateholders make this election, these amounts will
be treated as collections during the then current Collection Period and the Certificateholders will have no claim to such amounts (unless
distributed on a subsequent Payment Date pursuant to clause (K) above).

 

(iii)            In
the event Notes are declared to be due and payable following the occurrence of an Event of Default under the Indenture, Available Funds
will be distributed in the following order of priority:

 

(A)            to
the Owner Trustee, the Indenture Trustee and the Asset Representations Reviewer, all fees, expenses and indemnities due to each such
party in accordance with the terms of the Basic Documents and not previously paid by the Servicer or the Administrator, as applicable,
on a pro rata basis based on amounts due and payable to each party;

 

(B)            to
the Holders of the Class A Notes, pro rata, the aggregate accrued and unpaid interest on each Class of the Class A Notes;

 

(C)            to
the Holders of the Class A-1 Notes, the aggregate Outstanding Amount of such Notes, and then to the Holders of the Class A-2
Notes, the Class A-3 Notes and the Class A-4 Notes, pro rata, the aggregate Outstanding Amount of such Notes;

 

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(D)            to
the Holders of the Class B Notes, the accrued and unpaid interest on the Class B Notes;

 

(E)             to
the Holders of the Class B Notes, the aggregate Outstanding Amount of the Class B Notes;

 

(F)             to
the Holders of the Class C Notes, the accrued and unpaid interest on the Class C Notes;

 

(G)            to
the Holders of the Class C Notes, the aggregate Outstanding Amount of the Class C Notes; and

 

(H)            to
the Certificateholders, any remaining amounts.

 

Section 5.07            Reserve
Account.

 

(a)            On
the Closing Date, the Indenture Trustee will deposit, on behalf of the Depositor, the Reserve Account Initial Deposit into the Reserve
Account.

 

(b)            If
the amount on deposit in the Reserve Account on any Payment Date (after giving effect to all deposits thereto or withdrawals therefrom
on such Payment Date) is greater than the Required Reserve Amount for such Payment Date, the Servicer, based on the information contained
in the Servicer’s Certificate delivered on the related Payment Determination Date pursuant to Section 4.09 hereof,
shall instruct the Indenture Trustee in writing to withdraw such amount from the Reserve Account and apply it as Available Funds for
such Payment Date; provided that, amounts withdrawn from the Reserve Account shall only be used in the manner permitted under
 §246.4(b)(3) of Regulation RR, as determined solely by the Servicer.

 

(c)            In
the event that the Total Available Funds for a Payment Date are not sufficient to make the full amount of the payments and deposits required
pursuant to Sections 5.06(ii)(A), (B), (C), (D), (E), (F) and (G) on such
Payment Date, the Servicer, based on the information contained in the Servicer’s Certificate delivered on the related Payment Determination
Date pursuant to Section 4.09 hereof, shall instruct the Indenture Trustee to withdraw from the Reserve Account on such Payment
Date an amount equal to such shortfall, to the extent of funds available therein, and pay or deposit such amount according to the priorities
set forth in Section 5.06(ii). In addition, amounts will be withdrawn from the Reserve Account as provided in Section 8.02(c) and
(d) of the Indenture. Amounts withdrawn from the Reserve Account shall only be used in the manner permitted under §246.4(b)(3) of
Regulation RR, as determined solely by the Servicer.

 

(d)            Subject
to Section 9.01, amounts will continue to be applied pursuant to Section 5.06 following payment in full of the
Outstanding Amount of the Notes until the Pool Balance is reduced to zero. Following the payment in full of the aggregate Outstanding
Amount of the Notes and of all other amounts owing or to be distributed hereunder or under the Indenture or the Trust Agreement to Noteholders,
and the final distribution to the Certificateholders, in accordance with the instructions of the Servicer (based on the information contained
in the Servicer’s Certificate delivered on the related Payment Determination Date pursuant to Section 4.09 hereof),
the Indenture Trustee shall distribute any remaining funds in the Reserve Account to the Depositor.

 

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Section 5.08     Statements
to Noteholders and Certificateholders. On or prior to the close of business on each Payment Determination Date, the Servicer shall
provide to the Indenture Trustee (with a copy to the Rating Agencies) for the Indenture Trustee to post on its internet website pursuant
to Section 6.06 of the Indenture, the Servicer’s Certificate substantially in the form of Exhibit B, setting forth at
least the following information as to the Notes, to the extent applicable:

 

(a)            the
amount of such distribution allocable to principal allocable to each Class of Notes;

 

(b)            the
amount of such distribution allocable to interest allocable to each Class of Notes;

 

(c)            the
Outstanding Amount of each Class of Notes and the Note Pool Factor for each such Class as of the close of business on the last
day of the preceding Collection Period;

 

(d)            the
amount of the Servicing Fee paid to the Servicer with respect to the related Collection Period, the amount of any unpaid Servicing Fee
and the change in such amount from the prior Payment Date;

 

(e)            the
balance of the Reserve Account on such Payment Determination Date before and after giving effect to deposits and withdrawals to be made
on the immediate following Payment Date, if any;

 

(f)            the
amount, if any, distributed to Noteholders and Certificateholders from amounts on deposit in the Reserve Account or from other forms
of credit enhancement;

 

(g)            the
Pool Balance as of the close of business on the last day of the related Collection Period, before and after giving effect to payments
allocated to principal reported under clause (a) above;

 

(h)            the
Class A Noteholders’ Interest Carryover Shortfall;

 

(i)             the
Class B Noteholders’ Interest Carryover Shortfall;

 

(j)             the
Class C Noteholders’ Interest Carryover Shortfall;

 

(k)            the
number of Receivables purchased by, and the aggregate Purchase Amount paid by, World Omni or the Servicer with respect to the related
Collection Period;

 

(l)             delinquency
information relating to the Receivables which has a payment of more than $40 that is more than 30, 60, 90 or 120 days delinquent;

 

(m)            the
aggregate amount of Receivables which have become Defaulted Receivables during the preceding Collection Period;

 

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(n)            the
amount, if any, distributed to the Certificateholders;

 

(o)            the
Noteholders’ First Priority Principal Distributable Amount;

 

(p)            the
Noteholders’ Second Priority Principal Distributable Amount;

 

(q)            the
Noteholders’ Third Priority Principal Distributable Amount;

 

(r)             the
Noteholders’ Principal Distributable Amount;

 

(s)            the
Overcollateralization Target Amount for the immediately following Payment Date;

 

(t)             the
number and dollar amount of Receivables at the beginning and end of the applicable Collection Period, and the weighted average Contract
Rate and weighted average remaining term of the Receivables held by the Trust;

 

(u)            delinquency
and loss information for the applicable Collection Period and any material changes in determining or defining delinquencies, charge-offs
and uncollectible accounts;

 

(v)            material
breaches of pool asset representations and warranties or transaction covenants;

 

(w)           any
material modifications, extensions or waivers relating to the terms of or fees, penalties or payments on, pool assets during the distribution
period or that, cumulatively, have become material over time;

 

(x)            the
Yield Supplement Overcollateralization Amount for the related Payment Date;

 

(y)            a
material change in World Omni or the Depositor’s retained interest in the Notes or Certificates;

 

(z)            the
Interest Rate (including the the SOFR Rate or the then-current Benchmark, as applicable) for each Class of Notes for the related
Payment Date; and

 

(aa)          any
SOFR Adjustment Conforming Changes or Benchmark Conforming Changes.

 

Each amount set forth on the Servicer’s
Certificate under clauses (a), (b), (h), (i), (j), (o), (p), (q) and (r) above
shall be expressed as a dollar amount per $1,000 of original principal amount of a Note. Deliveries pursuant to this Section 5.08
may be delivered by electronic mail.

 

Upon determination by the Administrator (on behalf
of the Issuing Entity) of a Benchmark Replacement or the making of any Benchmark Replacement Conforming Changes, the Administrator shall
also cause the Servicer to include any information regarding the Unadjusted Benchmark Replacement, the Benchmark Replacement Adjustment
and such Benchmark Replacement Conforming Changes, or SOFR Adjustment Conforming Changes provided by the Administrator (on behalf of
the Issuing Entity).

 

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Section 5.09           Net
Deposits. As an administrative convenience, the Servicer will be permitted to make the deposit of collections on the Receivables
and Purchase Amounts for or with respect to the Collection Period net of distributions (including without limitation the Servicing Fee)
to be made to the Servicer with respect to the Collection Period. The Servicer, however, will account to the Owner Trustee, the Indenture
Trustee, the Noteholders and the Certificateholders as if all deposits, distributions and transfers were made individually.

 

Section 5.10           Transfer
of Certificates. In the event any Certificateholder shall wish to transfer such Certificate, the Depositor shall provide to such
Certificateholder and any prospective transferee designated by such Certificateholder information regarding the Certificates and the
Receivables and such other information as shall be necessary to satisfy the condition to eligibility set forth in Rule 144A(d)(4) for
transfer of any such Certificate without registration thereof under the Securities Act, pursuant to the exemption from registration provided
by Rule 144A.

 

Article VI

THE DEPOSITOR

 

Section 6.01           Representations
of Depositor. The Depositor makes the following representations on which the Issuing Entity is deemed to have relied in acquiring
the Receivables. The representations speak as of the Closing Date, and shall survive the sale of the Receivables to the Issuing Entity
and the pledge thereof to the Indenture Trustee pursuant to the Indenture.

 

(a)            Organization
and Good Standing. The Depositor is duly organized and validly existing as a limited liability company in good standing under the
laws of the State of Delaware, with the requisite power and authority to own its properties and to conduct its business as such properties
are currently owned and such business is presently conducted, and had at all relevant times, and has, the requisite power, authority
and legal right to acquire and own the Receivables.

 

(b)            Due
Qualification. The Depositor is duly qualified to do business as a foreign limited liability company in good standing, and has obtained
all necessary material licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its
business shall require such qualifications, except where the failure to be so qualified or to have obtained such licenses or approvals
would not have a material adverse effect on the Depositor’s earnings, business affairs or business prospects.

 

(c)            Power
and Authority. The Depositor has the requisite power and authority to execute and deliver this Agreement and to carry out its terms;
the Depositor has full power and authority to sell and assign the property to be sold and assigned to and deposited with the Issuing
Entity, and the Depositor shall have duly authorized such sale and assignment to the Issuing Entity by all necessary action; and the
execution, delivery and performance of this Agreement has been duly authorized by the Depositor by all necessary action.

 

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(d)            Binding
Obligation. This Agreement constitutes a legal, valid and binding obligation of the Depositor enforceable against the Depositor in
accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
or other similar laws, now or hereafter in effect, affecting the enforcement of creditors’ rights in general, and except as such
enforceability may be limited by general principles of equity (whether considered in a suit at law or in equity).

 

(e)            No
Violation. The consummation of the transactions contemplated by this Agreement and the fulfillment of the terms hereof do not (i) conflict
with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under,
the limited liability company agreement or bylaws of the Depositor; (ii) breach, conflict with or violate any of the material terms
or provisions of, or constitute (with or without notice or lapse of time) a default under, any indenture, agreement or other instrument
to which the Depositor is a party or by which it is bound; (iii) result in the creation or imposition of any Lien upon any of its
properties pursuant to the terms of any such indenture, agreement or other instrument (other than pursuant to this Agreement and the
Basic Documents); or, (iv) to the best of the Depositor’s knowledge, violate any order, rule or regulation applicable
to the Depositor of any court or of any federal or state regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over the Depositor or its properties except, in the case of clauses (ii), (iii) and (iv),
for such breaches, defaults, conflicts, liens or violations that would not have a material adverse effect on the Depositor’s earnings,
business affairs or business prospects.

 

(f)            No
Proceedings. To the Depositor’s best knowledge, there are no proceedings or investigations pending or threatened before any
court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Depositor or its properties:
(i) asserting the invalidity of this Agreement, the Indenture or any of the other Basic Documents, the Notes or the Certificates,
(ii) seeking to prevent the issuance of the Notes or the Certificates or the consummation of any of the transactions contemplated
by this Agreement, the Indenture or any of the other Basic Documents, (iii) seeking any determination or ruling that could reasonably
be expected to materially and adversely affect the performance by the Depositor of its obligations under, or the validity or enforceability
of, this Agreement, the Indenture, any of the other Basic Documents, the Notes or the Certificates or (iv) which could reasonably
be expected to adversely affect the U.S. federal or state income tax attributes of the Notes or the Certificates.

 

(g)            All
Consents. All authorizations, licenses, consents, orders or approvals of, or registrations or declarations with, any court, regulatory
body, administrative agency or other government instrumentality required to be obtained, effected or given by the Depositor in connection
with the execution and delivery by the Depositor of this Agreement or any of the Basic Documents to which it is a party and the performance
by the Depositor of the transactions contemplated by this Agreement or any of the Basic Documents to which it is a party, have been duly
obtained, effected or given and are in full force and effect, except where failure to obtain the same would not have a material adverse
effect upon the rights of the Trust, the Noteholders or the Certificateholders.

 

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Section 6.02           Limited
Liability Company Existence.

 

(a)            During
the term of this Agreement, the Depositor will keep in full force and effect its existence, rights and franchises as a limited liability
company under the laws of the jurisdiction of its formation and will obtain and preserve its qualification to do business in each jurisdiction
in which such qualification is or shall be necessary to protect the validity and enforceability of this Agreement, the Basic Documents
and each other instrument or agreement necessary or appropriate to the proper administration of this Agreement and the transactions contemplated
hereby. In addition, all transactions and dealings between the Depositor and its Affiliates will be conducted on an arm’s-length
basis.

 

(b)            During
the term of this Agreement, the Depositor shall observe the applicable legal requirements for the recognition of the Depositor as a legal
entity separate and apart from its affiliates, including the following:

 

(i)             the
Depositor shall maintain limited liability company records and books of account separate from those of its affiliates;

 

(ii)            except
as otherwise provided in this Agreement, the Depositor shall not commingle its assets and funds with those of its affiliates;

 

(iii)           the
Depositor shall hold such appropriate meetings of its Board of Directors as are necessary to authorize all the Depositor’s limited
liability company actions required by law to be authorized by the Board of Directors, shall keep minutes of such meetings and observe
all other customary limited liability company formalities (and any successor Depositor not a limited liability company shall observe
similar procedures in accordance with its governing documents and applicable law); and

 

(iv)            the
Depositor shall at all times hold itself out to the public under the Depositor’s own name as a legal entity separate and distinct
from its affiliates.

 

Section 6.03           Liability
of Depositor; Indemnities. The Depositor shall be liable in accordance herewith only to the extent of the obligations specifically
undertaken by the Depositor under this Agreement:

 

(a)            The
Depositor shall indemnify, defend and hold harmless the Issuing Entity, the Owner Trustee, the Indenture Trustee and the Servicer and
any of the officers, directors, employees and agents of the Issuing Entity, the Owner Trustee and the Indenture Trustee from and against
any taxes that may at any time be asserted against any such Person with respect to the transactions contemplated herein and in the Basic
Documents, including any sales, gross receipts, general corporation, tangible personal property, privilege or license taxes (but, in
the case of the Issuing Entity, not including any taxes asserted with respect to, and as of the date of, the sale of the Receivables
to the Issuing Entity or the issuance and original sale of the Certificates and the Notes, or asserted with respect to ownership of the
Receivables, or federal or other income taxes arising out of distributions on the Certificates or the Notes) and costs and expenses in
defending against the same.

 

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(b)            The
Depositor shall indemnify, defend and hold harmless the Issuing Entity, the Owner Trustee, the Indenture Trustee, the Certificateholders
and the Noteholders and any of the officers, directors, employees and agents of the Issuing Entity, the Owner Trustee and the Indenture
Trustee from and against any loss, liability or reasonable and documented expense incurred by reason of the Depositor’s willful
misconduct, bad faith or negligence (except for errors in judgment) in the performance of its duties under this Agreement, or by reason
of reckless disregard of its obligations and duties under this Agreement.

 

(c)            The
Depositor shall indemnify, defend and hold harmless the Owner Trustee and the Indenture Trustee and their respective officers, directors,
employees and agents from and against all reasonable and documented cost and expense, and all other losses, claims, damages and liabilities
arising out of or incurred in connection with the acceptance or performance of the trusts and duties herein and in the Trust Agreement,
in the case of the Owner Trustee, and in the Indenture, in the case of the Indenture Trustee, except to the extent that such cost, expense,
loss, claim, damage or liability: (i) in the case of the Owner Trustee, shall be due to the willful misconduct, bad faith or negligence
(except for errors in judgment) of the Owner Trustee or, in the case of the Indenture Trustee, shall be due to the willful misconduct,
bad faith or negligence (except for errors in judgment) of the Indenture Trustee or (ii) in the case of the Owner Trustee, shall
arise from the breach by the Owner Trustee of any of its representations or warranties set forth in Section 7.03 of the Trust Agreement.

 

(d)           The
Depositor shall pay any and all taxes levied or assessed upon all or any part of the Owner Trust Estate.

 

Indemnification under this
section shall survive the resignation or removal of the Owner Trustee or the Indenture Trustee and the termination or assignment of this
Agreement and the Trust Agreement and shall include reasonable and documented fees and expenses of counsel and expenses of litigation
(including without limitation, any legal fees, costs and expenses incurred in connection with any enforcement (including any action,
claim, or suit brought) by an indemnified party of any indemnification or other obligation of the Depositor). If the Depositor shall
have made any indemnity payments pursuant to this Section and the Person to or on behalf of whom such payments are made thereafter
shall collect any of such amounts from others, such Person shall promptly repay such amounts to the Depositor, without interest.

 

Notwithstanding anything to
the contrary contained in this Agreement or any other document, the obligations of the Depositor under this Section 6.03
and Section 7.5 of the Depositor’s Limited Liability Company Agreement are solely the company obligations of the Depositor
and shall be payable by it (x) solely from funds distributed to it in its capacity as Certificateholder available pursuant to, and
in accordance with, the payment priorities set forth in Section 5.06 of this Agreement and (y) only to the extent that
it receives additional funds designated for such purposes or to the extent it has additional funds available (other than funds described
in preceding clause (x)). In addition, no amount owing by the Depositor hereunder or under Section 7.5 of its Limited Liability
Company Agreement in excess of the liabilities that it is required to pay in accordance with the preceding sentence shall constitute
a “claim” (as defined in Section 101(5) of the Bankruptcy Code) against it. No recourse shall be had for the payment
of any amount owing hereunder or under Section 7.5 of the Depositor’s Limited Liability Company Agreement or any other obligation
of, or claim against, the Depositor, arising out of or based upon this Section 6.03 or under Section 7.5 of its Limited
Liability Company Agreement against any employee, officer, agent, directed or authorized person of the Depositor; provided, however,
that the foregoing shall not relieve any such person or entity of any liability they might otherwise have as a result of fraudulent actions
or omissions taken by them.

 

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Section 6.04           Merger
or Consolidation of, or Assumption of Obligations of Depositor. Any Person (a) into which the Depositor may be merged or consolidated,
(b) which may result from any merger or consolidation to which the Depositor shall be a party or (c) which may succeed to the
properties and assets of the Depositor substantially as a whole, which Person in any of the foregoing cases executes an agreement of
assumption to perform every obligation of the Depositor under this Agreement, shall be the successor to the Depositor hereunder without
the execution or filing of any document or any further act by any of the parties to this Agreement; provided, however, that (i) immediately
after giving effect to such transaction, no representation or warranty made pursuant to Section 3.01(a) or (b) shall have
been breached and no Servicer Default in respect of the Depositor under Section 8.01(b) or (c) shall have occurred and
be continuing, and no event that, after notice or lapse of time, or both, would become a Servicer Default in respect of the Depositor
under Section 8.01(b) or (c) shall have occurred and be continuing, (ii) the Depositor shall have delivered to the
Owner Trustee and the Indenture Trustee an Officers’ Certificate stating that such consolidation, merger or succession and such
agreement of assumption comply with this Section and that all conditions precedent, if any, provided for in this Agreement relating
to such transaction have been complied with, (iii) the Rating Agency Condition shall have been satisfied with respect to such transaction
and (iv) the Depositor shall have delivered to the Owner Trustee and the Indenture Trustee an Opinion of Counsel either (A) stating
that, in the opinion of such counsel, all financing statements and continuation statements and amendments thereto have been filed that
are necessary fully to preserve and protect the interest of the Owner Trustee and Indenture Trustee, respectively, in the Receivables
and reciting the details of such filings, or (B) stating that, in the opinion of such counsel, no such action shall be necessary
to preserve and protect such interests. Notwithstanding anything herein to the contrary, (a) the execution of the foregoing agreement
of assumption and compliance with clauses (i), (ii), (iii) and (iv) above shall be conditions to the consummation of the transactions
referred to in clause (a), (b) or (c) above and (b) the Depositor may transfer its rights under this Agreement in accordance
with Section 10.04 hereof.

 

Section 6.05           Limitation
on Liability of Depositor and Others. The Depositor and any director, officer, employee or agent of the Depositor may rely in good
faith on the advice of counsel or on any document of any kind, prima facie properly executed and submitted by any Person respecting any
matters arising hereunder. The Depositor shall not be under any obligation to appear in, prosecute or defend any legal action that shall
not be incidental to its obligations under this Agreement, and that in its opinion may involve it in any expense or liability.

 

Section 6.06           Depositor
May Own Notes. The Depositor and any Affiliate thereof may in its individual or any other capacity become the owner or pledgee
of Notes with the same rights as it would have if it were not the Depositor or an Affiliate thereof, except as expressly provided herein
or in any Basic Document.

 

Section 6.07           Security
Interest. During the term of this Agreement, the Depositor will not take any action to assign the security interest in any Financed
Vehicle other than pursuant to the Basic Documents.

 

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Article VII

THE SERVICER

 

Section 7.01           Representations
of Servicer. The Servicer makes the following representations on which the Issuing Entity is deemed to have relied in acquiring the
Receivables. The representations speak as of the Closing Date, and shall survive the sale of the Receivables from time to time to the
Issuing Entity and the pledge thereof to the Indenture Trustee pursuant to the Indenture.

 

(a)            Organization
and Good Standing. The Servicer is duly organized and validly existing as a corporation in good standing under the laws of the state
of its incorporation, with the corporate power and authority to own its properties and to conduct its business as such properties are
currently owned and such business is presently conducted, and had at all relevant times, and has, the corporate power, authority and
legal right to acquire, own, sell and service the Receivables and to hold the Receivable Files as custodian.

 

(b)            Due
Qualification. The Servicer is duly qualified to do business as a foreign corporation in good standing, and has obtained all necessary
material licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its business (including
the servicing of the Receivables as required by this Agreement) shall require such qualifications, except where the failure to be so
qualified or to have obtained such licenses or approvals would not have a material adverse effect on the Servicer’s earnings, business
affairs or business prospects.

 

(c)            Power
and Authority. The Servicer has the corporate power and authority to execute and deliver this Agreement and to carry out its terms;
and the execution, delivery and performance of this Agreement have been duly authorized by the Servicer by all necessary corporate action.

 

(d)            Binding
Obligation. This Agreement constitutes a legal, valid and binding obligation of the Servicer enforceable against the Servicer in
accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
or other similar laws, now or hereafter in effect, affecting the enforcement of creditors’ rights in general, and except as such
enforceability may be limited by general principles of equity (whether considered in a suit at law or in equity).

 

(e)            No
Violation. The consummation of the transactions contemplated by this Agreement and the fulfillment of the terms hereof do not (i) conflict
with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under,
the articles of incorporation or bylaws of the Servicer; (ii) breach, conflict with or violate any of the material terms or provisions
of, or constitute (with or without notice or lapse of time) a default under, any indenture, agreement or other instrument to which the
Servicer is a party or by which it is bound; (iii) result in the creation or imposition of any Lien upon any of its properties pursuant
to the terms of any such indenture, agreement or other instrument (other than pursuant to this Agreement and the Basic Documents); or,
(iv) to the best of the Servicer’s knowledge, violate any order, rule or regulation applicable to the Servicer of any
court or of any federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction over
the Servicer or its properties except, in the case of clauses (ii), (iii) and (iv), for such breaches, defaults,
conflicts, liens or violations that would not have a material adverse effect on the Servicer’s earnings, business affairs or business
prospects.

 

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(f)            No
Proceedings. To the Servicer’s best knowledge, there are no proceedings or investigations pending or threatened before any
court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Servicer or its properties:
(i) asserting the invalidity of this Agreement, the Indenture, any of the other Basic Documents, the Notes or the Certificates,
(ii) seeking to prevent the issuance of the Notes or the Certificates or the consummation of any of the transactions contemplated
by this Agreement, the Indenture or any of the other Basic Documents, (iii) seeking any determination or ruling that could reasonably
be expected to materially and adversely affect the performance by the Servicer of its obligations under, or the validity or enforceability
of, this Agreement, the Indenture, any of the other Basic Documents, the Notes or the Certificates or (iv) relating to the Servicer
and which could reasonably be expected to adversely affect the U.S. federal or state income tax attributes of the Notes or the Certificates.

 

(g)            Approvals.
All approvals, licenses, authorizations, consents, orders or other actions of any person, corporation or other organization, or of any
court, governmental agency or body or official, required in connection with the execution and delivery of this Agreement have been or
will be taken or obtained on or prior to the Closing Date, except where failure to obtain the same would not have a material adverse
effect upon the rights of the Depositor, the Trust, the Noteholders or the Certificateholders.

 

Section 7.02           Indemnities
of Servicer. The Servicer shall be liable in accordance herewith only to the extent of the obligations specifically undertaken by
the Servicer under this Agreement:

 

(a)            The
Servicer shall indemnify, defend and hold harmless the Issuing Entity, the Owner Trustee, the Indenture Trustee, the Noteholders, the
Certificateholders and the Depositor and any of the officers, directors, employees and agents of the Issuing Entity, the Owner Trustee
and the Indenture Trustee from and against any and all reasonable and documented costs and expenses, and all other losses, damages, claims
and liabilities arising out of or resulting from the use, ownership or operation by the Servicer or any Affiliate thereof of a Financed
Vehicle.

 

(b)            The
Servicer shall indemnify, defend and hold harmless the Issuing Entity, the Owner Trustee, the Indenture Trustee, the Depositor, the Certificateholders
and the Noteholders and any of the officers, directors, employees and agents of the Issuing Entity, the Owner Trustee and the Indenture
Trustee from and against any and all costs, expenses, losses, claims, damages and liabilities to the extent that such cost, expense,
loss, claim, damage or liability arose out of, or was imposed upon any such Person through, the willful misconduct, bad faith or negligence
(except for errors in judgment) of the Servicer in the performance of its duties under this Agreement or by reason of reckless disregard
of its obligations and duties under this Agreement.

 

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For purposes of this Section,
in the event of the termination of the rights and obligations of World Omni (or any successor thereto pursuant to Section 7.03)
as Servicer pursuant to Section 8.01, or a resignation by such Servicer pursuant to this Agreement, such Servicer shall be
deemed to be the Servicer pending appointment of a successor Servicer (other than the Indenture Trustee) pursuant to Section 8.02.

 

Indemnification under this
section shall survive the resignation or removal of the Owner Trustee or the Indenture Trustee or the termination or assignment of this
Agreement and the Trust Agreement and shall include reasonable fees and expenses of counsel and expenses of litigation (including without
limitation any legal fees, costs and expenses incurred in connection with any enforcement (including any action, claim, or suit brought)
by an indemnified party of any indemnification or other obligation of the Servicer). If the Servicer shall have made any indemnity payments
pursuant to this Section and the Person to or on behalf of whom such payments are made thereafter collects any of such amounts from
others, such Person shall promptly repay such amounts to the Servicer, without interest.

 

Section 7.03           Merger
or Consolidation of, or Assumption of Obligations of, Servicer. The Servicer shall not consolidate with or merge into any other corporation
or convey or transfer its properties and assets substantially as an entirety to any Person, unless:

 

(a)            the
entity formed by such consolidation or into which the Servicer is merged or the Person which acquires by conveyance or transfer the properties
and assets of the Servicer substantially as an entirety shall be an entity organized and existing under the laws of the United States
of America or the District of Columbia and, if the Servicer is not the surviving entity, such entity shall assume, without the execution
or filing of any paper or further act on the part of any of the parties hereto, the performance of every covenant and obligation of the
Servicer hereunder; and

 

(b)            the
Servicer has delivered to the Owner Trustee and the Indenture Trustee and Officer’s Certificate and an Opinion of Counsel each
stating that such consolidation, merger, conveyance or transfer will comply with this Section 7.03 and that all conditions
precedent herein provided for relating to such transaction have been complied with.

 

The Servicer shall provide
notice of any merger, consolidation or succession pursuant to this Section 7.03 to the Rating Agencies, the Owner Trustee,
the Depositor and the Indenture Trustee.

 

Section 7.04           Limitation
on Liability of Servicer and Others. Neither the Servicer nor any of the directors, officers, employees or agents of the Servicer
shall be under any liability to the Issuing Entity, the Noteholders or the Certificateholders, except as provided under this Agreement,
for any action taken or for refraining from the taking of any action pursuant to this Agreement or for errors in judgment; provided,
however, that this provision shall not protect the Servicer or any such person against any liability that would otherwise be imposed
by reason of willful misconduct, bad faith or negligence in the performance of duties or by reason of reckless disregard of obligations
and duties under this Agreement. The Servicer and any director, officer, employee or agent of the Servicer may rely in good faith on
any document of any kind prima facie properly executed and submitted by any Person respecting any matters arising under this Agreement.

 

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Except as provided in this
Agreement, the Servicer shall not be under any obligation to appear in, prosecute or defend any legal action that shall not be incidental
to its duties to service the Receivables in accordance with this Agreement and that in its opinion may involve it in any expense or liability;
provided, however, that the Servicer may undertake any reasonable action that it may deem necessary or desirable
in respect of this Agreement and the Basic Documents and the rights and duties of the parties to this Agreement and the Basic Documents
and the interests of the Certificateholders under this Agreement and the Noteholders under the Indenture.

 

Section 7.05           World
Omni Not to Resign as Servicer. Subject to the provisions of Section 7.03, World Omni shall not resign from the obligations
and duties hereby imposed on it as Servicer under this Agreement except upon a determination that the performance of its duties under
this Agreement shall no longer be permissible under applicable law and cannot be cured. Notice of any such determination permitting the
resignation of World Omni shall be communicated to the Owner Trustee and the Indenture Trustee at the earliest practicable time (and,
if such communication is not in writing, shall be confirmed in writing at the earliest practicable time) and any such determination shall
be evidenced by an Opinion of Counsel to such effect delivered to the Owner Trustee and the Indenture Trustee concurrently with or promptly
after such notice. No such resignation shall become effective until the Indenture Trustee or a successor Servicer shall have assumed
the responsibilities and obligations of World Omni in accordance with Section 8.02.

 

Article VIII

DEFAULT

 

Section 8.01           Servicer
Default. Any one of the following events shall constitute a default by the Servicer (a “Servicer Default”):

 

(a)            any
failure by the Servicer to deliver to the Indenture Trustee for deposit in any of the Trust Accounts or distribution to the Certificateholders
any required payment or to direct the Indenture Trustee to make any required distributions therefrom, which failure continues unremedied
for a period of five Business Days after written notice of such failure is received by the Servicer from the Owner Trustee or the Indenture
Trustee or after discovery of such failure by an officer of the Servicer; or

 

(b)            failure
by the Servicer or, if the Servicer is an affiliate of the Depositor, the Depositor, as the case may be, duly to observe or to perform
in any material respect any other covenants or agreements of the Servicer or the Depositor (as the case may be) set forth in this Agreement
or any other Basic Document, which failure shall (i) materially and adversely affect the rights of Certificateholders or Noteholders
and (ii) continue unremedied for a period of 90 days after the date on which written notice of such failure, requiring the same
to be remedied, shall have been given (A) to the Servicer or the Depositor (as the case may be) by the Owner Trustee or the Indenture
Trustee or (B) to the Servicer or the Depositor (as the case may be), and to the Owner Trustee and the Indenture Trustee by the
Holders of the Notes evidencing at least a majority of the Outstanding Amount of the Controlling Securities and the Holders (as defined
in the Trust Agreement) of Certificates evidencing at least a majority of the percentage interest of the Certificates; or

 

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(c)            the
occurrence of an Insolvency Event with respect to the Servicer or, if the Servicer is an affiliate of the Depositor, the Depositor.

 

Notwithstanding the foregoing,
  (i) if any delay in or failure of performance referred to in clause (a) above shall have been caused by Force
Majeure, the five Business Day grace period referred to in such clause (a) shall be extended for an additional 60 days and
(ii) if any delay or failure of performance referred to in clause (b) above shall have been caused by Force Majeure,
the 90 day grace period referred to in such clause (b) shall be extended for an additional 60 days. Upon the occurrence of
any such event, the Servicer shall not be relieved from using its best efforts to perform its obligations in a timely manner in accordance
with the terms of this Agreement and the Servicer shall provide the Indenture Trustee, the Owner Trustee, the Noteholders and the Certificateholders
prompt notice of such failure or delay by it, together with a description of its efforts to so perform its obligations.

 

So long as the Servicer Default
shall not have been remedied or stayed by the application of the above paragraph, either the Indenture Trustee or the Holders of the
Notes evidencing at least a majority of the Outstanding Amount of the Controlling Securities, by notice then given in writing to the
Servicer (and to the Indenture Trustee and the Owner Trustee if given by the Noteholders) may terminate all the rights and obligations
(other than the obligations set forth in Section 7.02 hereof) of the Servicer under this Agreement. On or after the receipt
by the Servicer of such written notice, all authority and power of the Servicer under this Agreement, whether with respect to the Notes,
the Certificates or the Receivables or otherwise, shall, without further action, pass to and be vested in the Indenture Trustee or such
successor Servicer as may be appointed under Section 8.02; and, without limitation, the Indenture Trustee and the Owner Trustee
are hereby authorized and empowered to execute and deliver, for the benefit of the predecessor Servicer, as attorney-in-fact or otherwise,
any and all documents and other instruments, and to do or accomplish all other acts or things necessary or appropriate to effect the
purposes of such notice of termination, whether to complete the transfer and endorsement of the Receivables and related documents, or
otherwise. The predecessor Servicer shall cooperate with the successor Servicer, the Indenture Trustee and the Owner Trustee in effecting
the termination of the responsibilities and rights of the predecessor Servicer under this Agreement, including the transfer to the successor
Servicer for administration by it of all cash amounts that shall at the time be held by the predecessor Servicer for deposit, or shall
thereafter be received by it with respect to any Receivable. Further, in such event, the Servicer shall use commercially reasonable efforts
to effect the orderly and efficient transfer of the servicing of the Receivables to the successor Servicer, and as promptly as practicable,
the Servicer shall provide to the successor Servicer a current computer tape containing all information from the Receivables Files required
for the proper servicing of the Receivables, together with the documentation containing any and all information necessary for the use
of the tape. All reasonable and documented costs and expenses (including attorneys’ fees) incurred in connection with transferring
the Receivable Files to the successor Servicer and amending this Agreement to reflect such succession as Servicer pursuant to this section
shall be paid by the predecessor Servicer upon presentation of reasonable documentation of such costs and expenses. Upon receipt of notice
of the occurrence of a Servicer Default, the Owner Trustee shall give notice thereof to the Depositor who promptly shall provide such
notice to the Rating Agencies.

 

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Section 8.02           Appointment
of Successor.

 

(a)            Upon
the Servicer’s receipt of notice of termination pursuant to Section 8.01 or the Servicer’s resignation in accordance
with the terms of this Agreement, the predecessor Servicer shall continue to perform its functions as Servicer under this Agreement,
in the case of termination, only until the date specified in such termination notice or, if no such date is specified in a notice of
termination, until receipt of such notice and, in the case of resignation, until the later of (i) the date 45 days from the delivery
to the Owner Trustee and the Indenture Trustee of written notice of such resignation (or written confirmation of such notice) in accordance
with the terms of this Agreement and (ii) the date upon which the predecessor Servicer shall become unable to act as Servicer, as
specified in the notice of resignation and accompanying Opinion of Counsel. In the event of the Servicer’s termination hereunder,
the Indenture Trustee shall appoint a successor Servicer, and the successor Servicer shall accept its appointment by a written assumption
in form acceptable to the Owner Trustee and the Indenture Trustee. In the event that a successor Servicer has not been appointed at the
time when the predecessor Servicer has ceased to act as Servicer in accordance with this Section, the Indenture Trustee without further
action shall automatically be appointed the successor Servicer and the Indenture Trustee shall be entitled to the Servicing Fee. Notwithstanding
the above, the Indenture Trustee shall, if it shall be unwilling or legally unable so to act, appoint or petition a court of competent
jurisdiction to appoint any established institution, having a net worth of not less than $100,000,000 and whose regular business shall
include the servicing of automotive receivables, as the successor to the Servicer under this Agreement.

 

(b)            Upon
appointment, the successor Servicer (including the Indenture Trustee acting as successor Servicer) shall be the successor in all respects
to the predecessor Servicer and shall be subject to all the responsibilities, duties and liabilities arising thereafter relating thereto
placed on the predecessor Servicer and shall be entitled to the Servicing Fee and all the rights granted to the predecessor Servicer
by the terms and provisions of this Agreement. The successor Servicer shall not be liable for any actions or inactions of the predecessor
Servicer. Notwithstanding anything to the contrary contained herein or in the Basic Documents, if the Indenture Trustee shall act as
Successor Servicer, it shall not, in any event have obligations (i) with respect to the repurchase of the Receivables, (ii) to
pay any fees, expenses and other amounts owing to the Administrator, or (iii) to pay any indemnities owed by the Servicer to another
party under the Basic Documents (other than those resulting from the actions or inactions of the Indenture Trustee as successor Servicer).

 

(c)            The
successor Servicer may not resign unless it is prohibited from serving as such by law.

 

Section 8.03           Notification
to Noteholders and Certificateholders. Upon any termination of, or appointment of a successor to, the Servicer pursuant to this Article VIII,
the Indenture Trustee shall give prompt written notice thereof to Noteholders, the Certificateholders and the Depositor who promptly
shall provide such notice to the Rating Agencies.

 

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Section 8.04           Waiver
of Past Defaults. The Holders of Notes evidencing at least a majority of the Outstanding Amount of the Controlling Securities may,
on behalf of all Noteholders, waive in writing any default by the Servicer in the performance of its obligations hereunder and its consequences,
except a default in making any required deposits to or payments from any of the Trust Accounts or to the Certificateholders in accordance
with this Agreement. Upon any such waiver of a past default, such default shall cease to exist, and any Servicer Default arising therefrom
shall be deemed to have been remedied for every purpose of this Agreement. No such waiver shall extend to any subsequent or other default
or impair any right consequent thereto.

 

Section 8.05           Payment
of Servicing Fees. If the Servicer shall change, the predecessor Servicer shall be entitled to receive any accrued and unpaid Servicing
Fees through the date of such Successor Servicer’s acceptance hereunder in accordance with Section 4.08.

 

Article IX

TERMINATION

 

Section 9.01           Optional
Purchase of All Receivables.

 

(a)            On
the Payment Date immediately following (and on each Payment Date thereafter) the last day of any Collection Period as of which the then
outstanding aggregate Principal Balance of the Receivables is 10% or less of the Aggregate Starting Principal Balance, the Servicer shall
have the option to purchase the Owner Trust Estate, other than the Trust Accounts. To exercise such option, the Servicer shall deposit
pursuant to Section 5.05 in the Collection Account an amount equal to the aggregate Purchase Amount for the Receivables (including
Defaulted Receivables), and shall succeed to all interests in and to the Trust. Notwithstanding the foregoing, the Servicer shall not
be permitted to exercise such option unless the amount to be deposited in the Collection Account pursuant to the preceding sentence is
greater than or equal to the sum of the Outstanding Amount of the Notes, all accrued but unpaid interest (including any overdue interest
and premium) thereon and all amounts owing by the Issuing Entity to the Asset Representations Reviewer.

 

(b)            As
described in Article IX of the Trust Agreement, notice of any termination of the Trust shall be given by the Servicer to the Owner
Trustee and the Indenture Trustee as soon as practicable after the Servicer has received notice thereof.

 

(c)            Following
the satisfaction and discharge of the Indenture and the payment in full of the principal of and interest on the Notes, the Certificateholders
will succeed to the rights of the Noteholders hereunder other than Section 5.07(b) and the Owner Trustee will succeed
to the rights of, but not the obligations of, the Indenture Trustee pursuant to this Agreement.

 

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Article X

MISCELLANEOUS

 

Section 10.01         Amendment.

 

(a)            This
Agreement may be amended by the Depositor, the Servicer and the Issuing Entity, with the consent of the Indenture Trustee, but without
the consent of any of the Noteholders or the Certificateholders, to cure any ambiguity or to correct or supplement any provisions in
this Agreement (including to further prevent or help avoid the application to the Notes or Certificates of the Treasury Regulations (or
other interpretive guidance) issued under Section 385 of the Code) or for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the Noteholders or the
Certificateholders; provided that such amendments require: (i) satisfaction of the Rating Agency Condition or (ii) an
Officer’s Certificate of the Servicer delivered to the Issuing Entity, the Owner Trustee and the Indenture Trustee stating that
the amendment will not materially and adversely affect the interest of any Noteholder or Certificateholder.

 

(b)            This
Agreement may also be amended from time to time by the Depositor, the Servicer and the Issuing Entity, with the consent of the Indenture
Trustee, the consent of Holders of Notes evidencing at least a majority of the Outstanding Amount of the Controlling Securities (unless
(i) the interests of the Noteholders are not affected materially and adversely, as evidenced by an Officer’s Certificate of
the Servicer to that effect delivered to the Indenture Trustee by the Depositor or (ii) satisfaction of the Rating Agency Condition)
and the consent of the Holders (as defined in the Trust Agreement) of Certificates evidencing at least a majority of the percentage interest
of the Certificates (unless (i) the interests of the Certificateholders are not affected materially and adversely and (ii) an
Officer’s Certificate of the Servicer to that effect is delivered to the Owner Trustee by the Depositor) for the purpose of adding
any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the
rights of the Noteholders or the Certificateholders; provided, however, that no such amendment shall (a) change
the date of payment of any installment of principal of or interest on any Note, or reduce the principal amount thereof, (b) change
the provisions of this Sale and Servicing Agreement relating to the application of collections on, or the proceeds of the sale of, the
Trust Estate to payment of principal of or interest on the Notes or (c) reduce the consent percentages in this sentence, without
the consent of the Holders of all outstanding Notes and the Holders (as defined in the Trust Agreement) of all the outstanding Certificates
affected thereby.

 

(c)            Promptly
after the execution of any such amendment or consent, the Servicer shall furnish written notification of the substance of such amendment
or consent to each Certificateholder, the Indenture Trustee, the Owner Trustee and each of the Rating Agencies.

 

(d)            It
shall not be necessary for the consent of Certificateholders or Noteholders pursuant to this Section to approve the particular form
of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof.

 

(e)            Prior
to the execution of any amendment to this Agreement, the Owner Trustee, on behalf of the Issuing Entity, and the Indenture Trustee shall
be entitled to receive and conclusively rely upon an Opinion of Counsel stating that the execution of such amendment is authorized or
permitted by this Agreement and that all conditions precedent thereto have been satisfied, and the Opinion of Counsel referred to in
Section 10.02(h)(A). The Owner Trustee and the Indenture Trustee may, but shall not be obligated to, enter into any such
amendment which affects the Owner Trustee’s or the Indenture Trustee’s, as applicable, own rights, duties or immunities under
this Agreement or otherwise.

 

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Section 10.02         Protection
of Title to Trust.

 

(a)            The
Depositor shall file such financing statements and cause to be filed such continuation statements, all in such manner and in such places
as may be required by law fully to preserve, maintain and protect the interest of the Issuing Entity and of the Indenture Trustee, on
behalf of the Holders, in the Receivables and in the proceeds thereof. The Depositor hereby authorizes the filing of such financing statements
and hereby ratifies any such financing statements filed prior to the date hereof. The Depositor shall deliver (or cause to be delivered)
to the Owner Trustee and the Indenture Trustee file-stamped copies of, or filing receipts for, any document filed as provided above,
as soon as available following such filing.

 

(b)            Neither
the Depositor nor the Servicer shall change its name, identity or corporate structure in any manner that could reasonably be expected
to make any financing statement or continuation statement filed in accordance with paragraph (a) above seriously misleading
within the meaning of Section 9-506 of the UCC, unless it shall have given the Owner Trustee and the Indenture Trustee at least
five days’ prior written notice thereof and shall have promptly filed appropriate amendments to all previously filed financing
statements or continuation statements.

 

(c)            Each
of the Depositor and the Servicer shall have an obligation to give the Owner Trustee and the Indenture Trustee at least 15 days’
prior written notice of any relocation of its principal executive office or a change in its jurisdiction of organization if, as a result
of such relocation or change in its jurisdiction of organization, the applicable provisions of the UCC would require the filing of any
amendment of any previously filed financing or continuation statement or of any new financing statement and shall promptly file any such
amendment or new financing statement. The Servicer shall at all times maintain each office from which it shall service Receivables, and
its principal executive office, within the United States of America.

 

(d)            The
Servicer shall maintain accounts and records as to each Receivable accurately and in sufficient detail to permit (i) the reader
thereof to know at any time the status of such Receivable, including payments and recoveries made and payments owing (and the nature
of each) and (ii) reconciliation between payments or recoveries on (or with respect to) each Receivable and the amounts from time
to time deposited in the Collection Account in respect of such Receivable.

 

(e)            The
Servicer shall maintain its computer systems so that, within five (5) Business Days from and after the time of sale under this Agreement
of the Receivables, the Servicer’s master computer records (including any backup archives) that refer to a Receivable shall indicate
clearly that such Receivable has been sold to the Issuing Entity.

 

(f)            If
at any time the Depositor or the Servicer shall propose to sell, grant a security interest in, or otherwise transfer any interest in
automotive receivables to any prospective purchaser, lender or other transferee, the Servicer shall give to such prospective purchaser,
lender or other transferee computer tapes, records or printouts (including any restored from backup archives) that, if they shall refer
in any manner whatsoever to any Receivable, shall indicate clearly that such Receivable has been sold and is owned by the Issuing Entity
and has been pledged to the Indenture Trustee.

 

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(g)            Upon
request, the Servicer shall furnish to the Owner Trustee or to the Indenture Trustee, within five Business Days, a list of all Receivables
(by contract number and name of Obligor) then held as part of the Trust.

 

(h)            The
Servicer shall deliver to the Owner Trustee and the Indenture Trustee:

 

(A)            promptly
after the execution and delivery of this Agreement, an Opinion of Counsel stating that, in the opinion of such counsel, either (1) all
financing statements and continuation statements have been filed that are necessary fully to preserve and protect the interest of the
Trust and the Indenture Trustee in the Receivables, and reciting the details of such filings or referring to prior Opinions of Counsel
in which such details are given, or (2) no such action shall be necessary to preserve and protect such interest other than any action
necessary (as of the date of such opinion) to be taken in the following year to preserve and protect such interest; and

 

(B)            on
or before March 31, in each calendar year, beginning in 2023, an Opinion of Counsel, dated as of a date during such 90-day period,
stating that, in the opinion of such counsel, either (1) all financing statements and continuation statements have been filed that
are necessary fully to preserve and protect the interest of the Trust and the Indenture Trustee in the Receivables, and reciting the
details of such filings or referring to prior Opinions of Counsel in which such details are given, or (2) no such action shall be
necessary to preserve and protect such interest other than any action necessary (as of the date of such opinion) to be taken in the following
year to preserve and protect such interest.

 

Each Opinion of Counsel referred
to in clause (A)(2) or (B)(2) above shall specify any action necessary (as of the date of such opinion) to be
taken in the following year to preserve and protect such interest.

 

(i)            The
Depositor shall, to the extent required by applicable law, cause the Notes to be registered with the Commission pursuant to Section 12(b) or
Section 12(g) of the Exchange Act within the time periods specified in such sections.

 

(j)            The
Servicer shall deliver to the Owner Trustee and the Indenture Trustee, prior to any change in the location of the Receivable Files, an
Opinion of Counsel stating that, in the opinion of such counsel, either (i) all financing statements and continuation statements
have been filed that are necessary fully to preserve and protect the interest of the Trust and the Indenture Trustee, on behalf of the
Holders, in the Receivables, and reciting the details of such filings or referring to prior Opinions of Counsel in which such details
are given, or (ii) no such action shall be necessary to preserve and protect such interest.

 

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Section 10.03         Notices.
All demands, deliveries, notices, communications and instructions upon or to the Depositor, the Servicer, the Owner Trustee,
the Indenture Trustee or the Rating Agencies under this Agreement shall be by facsimile, in writing, personally delivered or mailed by
certified mail, return receipt requested, and shall be deemed to have been duly given upon receipt or by electronic mail (if designated
by such party to the other parties) (a) in the case of the Depositor, to World Omni Auto Receivables LLC, 250 Jim Moran Boulevard,
Deerfield Beach, Florida 33442, Telecopy: (954) 429-2685, Attention: Treasurer, (b) in the case of the Servicer, World Omni Financial
Corp., 250 Jim Moran Boulevard, Deerfield Beach, Florida 33442, Telecopy: (954) 429-2685, Attention: Treasurer, (c) in the case
of the Issuing Entity or the Owner Trustee, at its Corporate Trust Office, Email: jlinian@wilmingtontrust.com, (d) in the case of
the Indenture Trustee, at its Corporate Trust Office, Telecopy: (866) 807-8670, Email: christopher.nuxoll@usbank.com, and (e) in
the case of the Rating Agencies, to the Depositor who promptly shall post such notice to the website maintained by the Depositor for
notifications to nationally recognized statistical rating organizations; or, as to each of the foregoing, at such other address or electronic
mail address as shall be designated by written notice to the other parties; provided, that, so long as World Omni is the Servicer, the
Servicer’s obligation to deliver or provide any demand, delivery, notice, communication or instruction (including the Servicer’s
Certificate) to any Person other than a Noteholder shall be satisfied by the Servicer making such demand, delivery, notice, communication
or instruction available at https://via.intralinks.com/, or such other website or distribution service or provider as the Servicer shall
designate by written notice to the other parties.

 

Section 10.04         Assignment
by the Depositor or the Servicer. Notwithstanding anything to the contrary contained herein, except as provided in the remainder
of this Section, as provided in Sections 6.04 and 7.03 herein and as provided in the provisions of this Agreement concerning the resignation
of the Servicer, this Agreement may not be assigned by the Depositor or the Servicer.

 

Section 10.05         Limitations
on Rights of Others. The provisions of this Agreement are solely for the benefit of the Depositor, the Servicer, the Issuing Entity,
the Owner Trustee, the Certificateholders, the Indenture Trustee and the Noteholders, and nothing in this Agreement, whether express
or implied, shall be construed to give to any other Person any legal or equitable right, remedy or claim in the Owner Trust Estate or
under or in respect of this Agreement or any covenants, conditions or provisions contained herein.

 

Section 10.06         Severability.
Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

 

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Section 10.07         Separate
Counterparts; Electronic Signatures. This Agreement may be executed by the parties hereto in separate counterparts, each of which
when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.
Each of the parties agree that this Agreement and any other documents to be delivered in connection herewith may be electronically signed,
that any digital or electronic signatures (including pdf, facsimile or electronically imaged signatures provided by DocuSign or any other
digital signature provider) appearing on this Agreement or such other documents are the same as handwritten signatures for the purposes
of validity, enforceability and admissibility, and that delivery of any such electronic signature to, or a signed copy of, this Agreement
and such other documents may be made by facsimile, email or other electronic transmission; provided, however, that upon the request of
the Indenture Trustee, any electronic signature delivered pursuant to this Section 10.07 shall be followed with a manually executed,
original counterpart within a reasonable period of time following such request, to the extent such manually executed, original counterpart
shall be required by applicable law or a regulatory body having supervisory authority over the Indenture Trustee. The Indenture Trustee
and Owner Trustee shall not be liable for, and shall be indemnified and held harmless under the applicable Basic Document against any
loss, liability or expense arising out of the use of electronic or digital signatures and electronic methods of submission with respect
to this Agreement, the Basic Documents and any documents or notices delivered to the Indenture Trustee or Owner Trustee pursuant to this
Agreement or the related documents, including the risk of the Indenture Trustee or Owner Trustee acting on any unauthorized instructions
and the risk of interception and misuse by third parties.

 

Section 10.08         Headings.
The headings of the various Articles and Sections herein are for convenience of reference only and shall not define or limit any of the
terms or provisions hereof.

 

Section 10.09         Governing
Law. This Agreement shall be construed in accordance with the laws of the State of New York, without regard to any otherwise applicable
conflict of law provisions, and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with
such laws.

 

Section 10.10         Assignment
by Issuing Entity. Each of World Omni and the Depositor hereby acknowledges and consents to any mortgage, pledge, assignment and
grant of a security interest by the Issuing Entity to the Indenture Trustee pursuant to the Indenture for the benefit of the Noteholders
of all right, title and interest of the Issuing Entity in, to and under the Receivables and/or the assignment of any or all of the Issuing
Entity’s rights and obligations hereunder to the Indenture Trustee.

 

Section 10.11        Nonpetition
Covenants.

 

(a)            Notwithstanding
any prior termination of this Agreement, the Servicer and the Depositor shall not, prior to the date which is one year and one day after
the termination of this Agreement with respect to the Issuing Entity, acquiesce, petition or otherwise invoke or cause the Issuing Entity
to invoke the process of any court or government authority for the purpose of commencing or sustaining a case against the Issuing Entity
under any federal or state bankruptcy, insolvency or similar law, or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of the Issuing Entity or any substantial part of their property, or ordering the winding up or
liquidation of the affairs of the Issuing Entity.

 

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(b)            Notwithstanding
any prior termination of this Agreement, the Servicer, solely in its capacity as a creditor of the Depositor, shall not, prior to the
date which is one year and one day after the termination of this Agreement with respect to the Depositor, acquiesce, petition or otherwise
invoke the process of any court or government authority for the purpose of commencing or sustaining an involuntary case against the Depositor
under any federal or state bankruptcy, insolvency or similar law, or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of the Depositor or any substantial part of its property, or ordering the winding up or liquidation
of the affairs of the Depositor.

 

(c)            In
the event that any Person (other than the Depositor) is deemed, under applicable law by any court or other authority of competent jurisdiction,
to have an interest in any assets of the Depositor or any Affiliate of the Depositor other than the beneficial interest in the Trust
(“other assets”), the parties to this Agreement acknowledge and agree that: (i) such Person’s claim is
against the assets of the Trust and the Trust Estate only, (ii) such Person’s claim against any other assets shall be, and
hereby is, subject and subordinate in all respects to the rights of other Persons to whom rights in the other assets have been expressly
granted (“entitled Persons”), including to the payment in full of all amounts owing to such entitled Persons, and
(iii) the covenant set forth in the preceding clause (ii) constitutes a “subordination agreement” within
the meaning of, and subject to, Section 510(a) of the Bankruptcy Code.

 

Section 10.12        Limitation
of Liability of Owner Trustee and Indenture Trustee.

 

(a)            It
is expressly understood and agreed by the parties hereto that (i) this Agreement is executed and delivered by the Trustee Bank,
not individually or personally but solely as Owner Trustee, in the exercise of the powers and authority conferred and vested in it under
the Trust Agreement, (ii) each of the representations, undertakings and agreements herein made on the part of the Issuing Entity
is made and intended not as personal representations, undertakings and agreements by the Trustee Bank, but is made and intended for the
purpose of binding only the Issuing Entity, (iii) nothing herein contained shall be construed as creating any liability on the Trustee
Bank, individually or personally, to perform any covenant of the Issuing Entity, either expressed or implied, contained herein, all such
liability of the Trustee Bank in its individual or personal capacity, if any, being expressly waived by the parties hereto and by any
person claiming by, through or under the parties hereto, (iv) the Trustee Bank has made no investigation into the accuracy or completeness
of any representations or warranties made by the Issuing Entity in this Agreement, and (v) under no circumstances shall the Trustee
Bank be personally liable for the payment of any indebtedness or expenses of the Issuing Entity under this Agreement or any other related
documents.

 

(b)            Notwithstanding
anything contained herein to the contrary, this Agreement has been accepted by U.S. Bank Trust Company, National Association, not in
its individual capacity but solely as Indenture Trustee and in no event shall U.S. Bank Trust Company, National Association have any
liability for the representations, warranties, covenants, agreements or other obligations of the Issuing Entity hereunder or in any of
the certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the
Issuing Entity. For all purposes of this Agreement, the Indenture Trustee shall be entitled to all rights, privileges, benefits, protections,
immunities, and indemnities provided to it under the Indenture.

 

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Section 10.13         Regulation
AB. The Depositor and the Servicer acknowledge and agree that the purpose of this Section 10.13 is to facilitate compliance
by the Depositor with the provisions of Regulation AB and the related rules and regulations of the Commission. The Depositor shall
not exercise its right to request delivery of information or other performance under these provisions other than in good faith, or for
purposes other than compliance with the Securities Act, the Exchange Act and the rules and regulations of the Commission under the
Securities Act and the Exchange Act. The Servicer acknowledges that interpretations of the requirements of Regulation AB may change over
time, whether due to interpretive guidance provided by the Commission or its staff, consensus among participants in the asset-backed
securities markets, advice of counsel, or otherwise, and the Servicer agrees to comply with all reasonable requests made by the Depositor
in good faith for delivery of information and shall deliver (and shall cause each of its Reporting Subcontractors to deliver) to the
Depositor all information and certifications reasonably required by the Depositor to comply with its Exchange Act reporting obligations,
including with respect to any of its predecessors or successors. The obligations of a servicer to provide such information shall survive
the removal or termination of such servicer as Servicer hereunder.

 

Section 10.14         Notices
to the Rating Agencies. If World Omni is no longer the Servicer, the successor Servicer shall provide any required Rating Agency
notices under this Agreement to the Depositor, who promptly shall provide such notices to the Rating Agencies.

 

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

 

	 	WORLD OMNI AUTO RECEIVABLES
	 	TRUST 2022-B
	 	 
	 	By: WILMINGTON TRUST, NATIONAL ASSOCIATION, not in its individual
    capacity but solely as Owner Trustee
	 	 
	 	By:	/s/ Julia Linian            
	 	Name: Julia Linian
	 	Title: Vice President
	 	 
	 	WORLD OMNI AUTO RECEIVABLES LLC,
	 	as Depositor
	 	 
	 	By:	/s/ Ronald J. Virtue
	 	Name: Ronald J. Virtue
	 	Title: Assistant Treasurer
	 	 
	 	WORLD OMNI FINANCIAL CORP., as Servicer, and, with respect to Sections
    3.01 and 3.02, individually
	 	 
	 	By:	/s/ Ronald J. Virtue
	 	Name: Ronald J. Virtue
	 	Title: Assistant Treasurer
	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,
	 	not in its individual capacity but solely as Account Bank
	 	 
	 	 
	 	By:	/s/ Christopher J. Nuxoll
	 	Name: Christopher J. Nuxoll
	 	Title: Vice President

 

    

     

    

 

 

	Acknowledged and agreed to as of the day and year first above
written:	 
	 	 
	U.S. BANK
TRUST COMPANY, NATIONAL ASSOCIATION, not in its individual capacity but solely as Indenture Trustee	
	 	 
	By:	/s/ Christopher J. Nuxoll          	 
	Name: Christopher J. Nuxoll	 
	Title: Vice President	 

 

    	 	 	 

     

    

 

SCHEDULE A

Schedule of Receivables

 

Documents on file at:

 

Kirkland & Ellis LLP

300 North LaSalle Street

Chicago, IL 60654

 

    	 	Sch. A	 

     

    

  

SCHEDULE B

 

Location of Receivable Files

 

World Omni Financial Corp.

6150 Omni Park Drive

Mobile, AL 36609

 

RecordMax LLC

2051 West I-65 Service Rd. N.

Mobile, AL 36618

 

HP Enterprise Services LLC

5400 Legacy Dr

Plano, TX 75024

 

RouteOne LLC

31500 Northwestern Hwy Ste 200

Farmington Hills, MI 48334

  

    	 	Sch. B	 

     

    

  

EXHIBIT A

 

Form of Distribution Statement to Noteholders

 

World Omni Financial Corp.

 

World Omni Auto Receivables Trust 2022-B Payment Date Statement to
Noteholders

 

Total Available Funds

 

	Class A-1 Notes: 	($_______ per $1,000 original principal amount)
	Class A-2a Notes: 	($_______ per $1,000 original principal amount)
	Class A-2b Notes: 	($_______ per $1,000 original principal amount)
	Class A-3 Notes: 	($_______ per $1,000 original principal amount)
	Class A-4 Notes: 	($_______ per $1,000 original principal amount)
	Class B Notes: 	($_______ per $1,000 original principal amount)
	Class C Notes: 	($_______ per $1,000 original principal amount)

 

Outstanding Amount

Class A-1 Notes

Class A-2a Notes

Class A-2b Notes

Class A-3 Notes

Class A-4 Notes

Class B Notes

Class C Notes

 

Note Pool Factor

Class A-1 Notes

Class A-2a Notes

Class A-2b Notes

Class A-3 Notes

Class A-4 Notes

Class B Notes

Class C Notes

 

Servicing Fee

Servicing Fee Per $1,000 Note

 

Reserve Account Balance

 

    	 	Ex. A	 

     

    

  

EXHIBIT B

 

Form of Servicer’s Certificate

 

World Omni Financial Corp.

World Omni Auto Receivables Trust 2022-B Monthly Servicer’s
Certificate

 

	World Omni Auto Receivables Trust 2022-B	 	 
	Monthly Servicer Certificate	 	 
	mm/dd/yyyy	 	 

 

	Dates Covered	 	 	 	 	 	 	 
	Collections Period	 	 	 	 	 	 	 
	Interest Accrual Period	 	 	 	 	 	 	 
	30/360 Days	 	 	 	 	 	 	 
	Actual/360 Days	 	 	 	 	 	 	 
	Distribution Date	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Collateral
    Pool Balance Data	 	 	$
                                            Amount	 	 	#
                                            of Accounts	 
	Pool Balance at mm/dd/yy	 	 	 	 	 	 	 
	Yield Supplement Overcollateralization
    Amount at mm/dd/yy	 	 	 	 	 	 	 
	Receivables Balance at mm/dd/yy	 	 	 	 	 	 	 
	Principal Payments	 	 	 	 	 	 	 
	Defaulted Receivables	 	 	 	 	 	 	 
	Repurchased Accounts	 	 	 	 	 	 	 
	Yield Supplement
    Overcollateralization Amount at mm/dd/yy	 	 	 	 	 	 	 
	Pool Balance
    at mm/dd/yy	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Pool Statistics	 	 	$
                                            Amount	 	 	#
                                            of Accounts	 
	Pool Factor	 	 	 	 	 	 	 
	Prepayment ABS Speed	 	 	 	 	 	 	 
	Aggregate Starting Principal Balance	 	 	 	 	 	 	 
	Pre-Funding Contracts added mm/dd/yy	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Delinquent Receivables:	 	 	 	 	 	 	 
	Past Due 31-60 days	 	 	 	 	 	 	 
	Past Due 61-90 days	 	 	 	 	 	 	 
	Past Due 91-120 days	 	 	 	 	 	 	 
	Past Due 121 +
    days	 	 	 	 	 	 	 
	Total	 	 	 	 	 	 	 

 

    Ex. B-1

     

    

  

	Total 31+ Delinquent as % Ending Pool
    Balance	 	 	 	 	 	 	 
	Total 61+ Delinquent as % Ending Pool
    Balance	 	 	 	 	 	 	 
	Delinquency Trigger Occurred	 	 	 	 	 	[Yes/No]	 
	 	 	 	 	 	 	 	 
	Recoveries	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Aggregate Net Losses/(Gains) - mm/yyyy	 	 	 	 	 	 	 
	Ratio of Net Loss to the Receivables
    Balance as of beginning of Collection period (Annualized)	 	 	 	 	 	 	 
	Current Net Loss Ratio	 	 	 	 	 	 	 
	Prior Period Net Loss Ratio	 	 	 	 	 	 	 
	Second Prior Period Net Loss Ratio	 	 	 	 	 	 	 
	Third Prior Period Net Loss Ratio	 	 	 	 	 	 	 
	Four Month Average	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Cumulative Net
    Loss as a % of Aggregate Starting Principal Balance	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Overcollateralization Target Amount	 	 	 	 	 	 	 
	Actual Overcollateralization	 	 	 	 	 	 	 
	Weighted Average Contract Rate	 	 	 	 	 	 	 
	Weighted Average Contract Rate, Yield
    Adjusted	 	 	 	 	 	 	 
	Weighted Average Remaining Term	 	 	 	 	 	 	 

 

	Flow of Funds	 	 	$
                                            Amount	 
	Collections	 	 	 	 
	Investment Earnings on Cash Accounts	 	 	 	 
	Servicing Fee	 	 	 	 
	Transfer to Collection
    Account	 	 	 	 
	Available Funds	 	 	 	 
	 	 	 	 	 
	Distributions of Available Funds	 	 	 	 
	  (1)  Asset Representation
    Reviewer Amounts (up to $150,000 per calendar year)	 	 	 	 
	  (2)  Class A
    Interest	 	 	 	 
	  (3)  Noteholders’
    First Priority Principal Distributable Amount	 	 	 	 
	  (4)  Class B
    Interest	 	 	 	 
	  (5)  Noteholders’
    Second Priority Principal Distributable Amount	 	 	 	 
	  (6)  Class C
    Interest	 	 	 	 
	  (7)  Noteholders’
    Third Priority Principal Distributable Amount	 	 	 	 
	  (8)  Required Reserve
    Amount	 	 	 	 

 

    Ex. B-2

     

    

 

	  (9)  Noteholders’
    Principal Distributable Amount	 	 	 	 
	  (10) Asset Representation
    Reviewer Amounts (in excess of 1)	 	 	 	 
	  (11) Distribution to Certificateholders	 	 	 	 
	 	 	 	 	 
	Total Distributions of Available Funds	 	 	 	 
	 	 	 	 	 
	Servicing Fee	 	 	 	 
	Unpaid Servicing Fee	 	 	 	 
	Change in amount of Unpaid Servicing
    Fee from the prior period	 	 	 	 
	 	 	 	 	 
	Note Balances &
    Note Factors	 	 	$
                                            Amount	 
	Original Class A	 	 	 	 
	Original Class B	 	 	 	 
	Original Class C	 	 	 	 
	 	 	 	 	 
	Total Class A, B &
    C	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 
	Principal Paid	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 
	 	 	 	 	 
	Class A-1	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 
	Principal Paid	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 
	Note Factor @ mm/dd/yy	 	 	 	 
	 	 	 	 	 
	Class A-2a	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 
	Principal Paid	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 
	Note Factor @ mm/dd/yy	 	 	 	 
	 	 	 	 	 
	Class A-2b	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 
	Principal Paid	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 
	Note Factor @ mm/dd/yy	 	 	 	 

 

    Ex. B-3

     

    

 

	Class A-3	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 
	Principal Paid	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 
	Note Factor @ mm/dd/yy	 	 	 	 
	 	 	 	 	 
	Class A-4	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 
	Principal Paid	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 
	Note Factor @ mm/dd/yy	 	 	 	 
	 	 	 	 	 
	Class B	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 
	Principal Paid	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 
	Note Factor @ mm/dd/yy	 	 	 	 
	 	 	 	 	 
	Class C	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 
	Principal Paid	 	 	 	 
	Note Balance @ mm/dd/yy	 	 	 	 
	Note Factor @ mm/dd/yy	 	 	 	 
	 	 	 	 	 
	Interest &
    Principal Payments	 	 	$
                                            Amount	 
	Total Interest Paid	 	 	 	 
	Total Principal
    Paid	 	 	 	 
	Total Paid	 	 	 	 
	 	 	 	 	 
	Class A-1	 	 	 	 
	Coupon	 	 	 	 
	Interest Paid	 	 	 	 
	Principal Paid	 	 	 	 
	Total Paid to
    A-1 Holders	 	 	 	 
	 	 	 	 	 
	Class A-2a	 	 	 	 
	Coupon	 	 	 	 
	Interest Paid	 	 	 	 
	Principal Paid	 	 	 	 
	Total Paid to
    Class A-2 Holders	 	 	 	 

 

    Ex. B-4

     

    

  

	Class A-2b	 	 	 	 
	Coupon	 	 	 	 
	Interest Paid	 	 	 	 
	Principal Paid	 	 	 	 
	Total Paid to
    Class A-2 Holders	 	 	 	 
	 	 	 	 	 
	Class A-3	 	 	 	 
	Coupon	 	 	 	 
	Interest Paid	 	 	 	 
	Principal Paid	 	 	 	 
	Total Paid to
    A-3 Holders	 	 	 	 
	 	 	 	 	 
	Class A-4	 	 	 	 
	Coupon	 	 	 	 
	Interest Paid	 	 	 	 
	Principal Paid	 	 	 	 
	Total Paid to
    A-4 Holders	 	 	 	 
	 	 	 	 	 
	Class B	 	 	 	 
	Coupon	 	 	 	 
	Interest Paid	 	 	 	 
	Principal Paid	 	 	 	 
	Total Paid to
    B Holders	 	 	 	 
	 	 	 	 	 
	Class C	 	 	 	 
	Coupon	 	 	 	 
	Interest Paid	 	 	 	 
	Principal Paid	 	 	 	 
	Total Paid to
    C Holders	 	 	 	 
	 	 	 	 	 
	Distribution per $1,000 of Notes	 	 	 	 
	Total Interest Distribution Amount	 	 	 	 
	Total Interest
    Carryover Shortfall	 	 	 	 
	Total Principal
    Distribution Amount	 	 	 	 
	Total Distribution Amount	 	 	 	 

 

    Ex. B-5

     

    

 

	 	 	 	Total	 
	A-1 Interest Distribution Amount	 	 	 	 
	A-1 Interest Carryover Shortfall	 	 	 	 
	A-1 Principal Distribution Amount	 	 	 	 
	Total A-1 Distribution
    Amount	 	 	 	 
	 	 	 	 	 
	A-2a Interest Distribution Amount	 	 	 	 
	A-2a Interest Carryover Shortfall	 	 	 	 
	A-2a Principal
    Distribution Amount	 	 	 	 
	Total A-2a Distribution
    Amount	 	 	 	 
	 	 	 	 	 
	A-2b Interest Distribution Amount	 	 	 	 
	A-2b Interest Carryover Shortfall	 	 	 	 
	A-2b Principal
    Distribution Amount	 	 	 	 
	Total A-2b Distribution
    Amount	 	 	 	 
	 	 	 	 	 
	A-3 Interest Distribution Amount	 	 	 	 
	A-3 Interest Carryover Shortfall	 	 	 	 
	A-3 Principal Distribution
    Amount	 	 	 	 
	Total A-3 Distribution
    Amount	 	 	 	 
	 	 	 	 	 
	A-4 Interest Distribution Amount	 	 	 	 
	A-4 Interest Carryover Shortfall	 	 	 	 
	A-4 Principal Distribution
    Amount	 	 	 	 
	Total A-4 Distribution
    Amount	 	 	 	 
	 	 	 	 	 
	B Interest Distribution Amount	 	 	 	 
	B Interest Carryover Shortfall	 	 	 	 
	B Principal Distribution
    Amount	 	 	 	 
	Total B Distribution
    Amount	 	 	 	 
	 	 	 	 	 
	C Interest Distribution Amount	 	 	 	 
	C Interest Carryover Shortfall	 	 	 	 
	C Principal Distribution
    Amount	 	 	 	 
	Total C Distribution
    Amount	 	 	 	 
	 	 	 	 	 
	Noteholders’ First Priority Principal
    Distributable Amount	 	 	 	 
	Noteholders’ Second Priority Principal
    Distributable Amount	 	 	 	 
	Noteholders’ Third Priority Principal
    Distributable Amount	 	 	 	 
	Noteholders’
    Principal Distributable Amount	 	 	 	 

 

    Ex. B-6

     

    

 

	Account Balances	 	 	$ Amount	 
	Reserve Account	 	 	 	 
	Balance as of mm/dd/yy	 	 	 	 
	Investment Earnings	 	 	 	 
	Investment Earnings paid	 	 	 	 
	Deposit (Withdrawal)	 	 	 	 
	Balance as of mm/dd/yy	 	 	 	 
	Change	 	 	 	 
	Required Reserve Amount	 	 	 	 

 

    Ex. B-7

     

    

  

EXHIBIT C

 

Form of SSA Assignment

 

As of June 1, 2022, for
value received, in accordance with the Sale and Servicing Agreement, dated as of the date hereof (the “Sale and Servicing Agreement”),
among World Omni Auto Receivables LLC, a Delaware limited liability company (the “Depositor”), World Omni Auto Receivables
Trust 2022-B (the “Issuing Entity”), World Omni Financial Corp., a Florida corporation (the “Servicer”)
and U.S. Bank National Association, as Account Bank, as acknowledged and accepted by U.S. Bank Trust Company, National Association, as
Indenture Trustee, the Depositor does hereby sell, assign, transfer and otherwise convey unto the Issuing Entity, without recourse,
all right, title and interest of the Depositor in, to and under (a) the Receivables identified on the Schedule of Receivables attached
hereto having an Aggregate Starting Principal Balance of $1,083,969,917.66 and all monies received thereon and in respect thereof after
the Cutoff Date; (b) the security interests in, and the liens on, the Financed Vehicles granted by Obligors in connection with the
Receivables and any other interest of the Depositor in such Financed Vehicles; (c) any proceeds with respect to the Receivables from
claims on any physical damage, credit life or disability insurance policies covering such Financed Vehicles or Obligors; (d) any
Financed Vehicle that shall have secured an Receivable and shall have been acquired by or on behalf of the Depositor, the Servicer or
the Issuing Entity; (e) all funds on deposit in, and “financial assets” (as such term is defined in the Uniform Commercial
Code as from time to time in effect) credited to, the Trust Accounts, including the Reserve Account, from time to time, including the
Reserve Account Initial Deposit, and in all investments and proceeds thereof (including all income thereon); (f) the Receivables
Purchase Agreement; (g) all “accounts,” “chattel paper,” “general intangibles” and “promissory
notes” (as such terms are defined in the Uniform Commercial Code as from time to time in effect) constituting or relating to the
foregoing; and (h) the proceeds of any and all of the foregoing; provided, however, that the foregoing items
(a) through (h) shall not include the Notes and Certificates.

 

The foregoing sale does not
constitute and is not intended to result in any assumption by the Issuing Entity of any obligation of the undersigned to the Obligors,
Dealers, insurers or any other Person in connection with the Receivables, the agreements with Dealers, any insurance policies or any agreement
or instrument relating to any of them.

 

This SSA Assignment is made
pursuant to and upon the representations, warranties and agreements on the part of the undersigned contained in the Sale and Servicing
Agreement and is to be governed by the Sale and Servicing Agreement.

 

Capitalized terms used herein
and not otherwise defined shall have the meaning assigned to them in the Sale and Servicing Agreement.

 

* * * * *

 

    Ex. C-1

     

    

  

IN WITNESS WHEREOF, the undersigned
has caused this SSA Assignment to be duly executed as of the day and year first above written.

 

	 	WORLD OMNI AUTO RECEIVABLES LLC

 

	 	By:	
	 	Name:	 
	 	Title:	 

  

    Ex. C-2

     

    

  

APPENDIX A

  

PART I - DEFINITIONS

 

All terms used in this Appendix shall have the
defined meanings set forth in this Part I when used in the Basic Documents, unless otherwise defined therein.

 

“Account Bank”
means U.S. Bank National Association, a national banking association.

 

“Accredited Investor”
has the meaning assigned in Section 2.04(e) of the Indenture.

 

“Act of the Noteholders”
has the meaning specified in Section 11.03(a) of the Indenture.

 

“Administration Agreement”
means the Administration Agreement, dated as of the Closing Date, among the Administrator, the Issuing Entity, the Depositor and the Indenture
Trustee, as amended from time to time.

 

“Administrator”
means World Omni, or any successor Administrator under the Administration Agreement.

 

“ADR Organization”
means The American Arbitration Association or, if The
American Arbitration Association no longer exists or if its ADR Rules would no longer permit mediation or arbitration, as
applicable, of the dispute, another nationally recognized mediation or arbitration organization selected by World Omni.

 

“ADR Rules”
means the relevant rules of the ADR Organization for mediation (including non-binding arbitration) or binding arbitration, as applicable,
of commercial disputes in effect at the time of the mediation or arbitration.

 

“Affiliate”
means, with respect to any specified Person, any other Person controlling or controlled by or under common control with such specified
Person. For the purposes of this definition, “control” when used with respect to any Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise;
and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

 

“Aggregate Starting
Principal Balance” means as of any date of determination, the aggregate of the Starting Principal Balances of the Receivables
as of the Cutoff Date, which is equal to the Initial Aggregate Starting Principal Balance.

 

“Amount Financed”
means, with respect to a Receivable, the amount advanced under the Receivable toward the purchase price of the Financed Vehicle, warranty
or insurance premium and any related costs.

 

“Annual Percentage
Rate” or “APR” means, with respect to a Receivable, the annual rate of finance charges stated in the related
Contract or then applicable to such Receivable.

 

“Applicable Anti-Money
Laundering Law” means, laws, rules, regulations and executive orders in effect from time to time applicable to banking institutions,
including those relating to the funding of terrorist activities and money laundering, including the Customer Identification Program requirements
established under the USA PATRIOT ACT and the Financial Crimes Enforcement Network’s (FinCEN) customer due diligence requirements.

 

    App. A-1

     

    

  

“Asset Representations
Review Agreement” shall mean the Asset Representations Review Agreement, dated as of the Closing Date, among World Omni, as
servicer and administrator, the Issuing Entity and the Asset Representations Reviewer, as amended from time to time.

 

“Asset Representations
Reviewer” means Clayton Fixed Income Services LLC, as asset representations reviewer under the Asset Representations Review
Agreement, or any successor Asset Representations Reviewer under the Asset Representations Review Agreement.

 

“Assignment”
shall mean any RPA Assignment or SSA Assignment.

 

“Authorized Officer”
means, with respect to the Owner Trustee, any officer of the Owner Trustee or other Person who is authorized to act for the Owner Trustee
in matters relating to the Issuing Entity (including any agent of the Owner Trustee acting under a power of attorney) and, with respect
to the Issuing Entity, any Authorized Officer of the Owner Trustee or, so long as the Administration Agreement is in effect, the president,
any vice president, treasurer, assistant treasurer, secretary or assistant secretary of the Administrator who is authorized to act for
the Administrator in matters relating to the Issuing Entity and to be acted upon by the Administrator pursuant to the Administration Agreement
and who is identified on the list of Authorized Officers delivered by the Administrator to the Indenture Trustee on the Closing Date (as
such list may be modified or supplemented from time to time thereafter).

 

“Available Funds”
means, with respect to any Payment Date, (1) the sum of the following amounts, without duplication, with respect to the Receivables
in respect of the Collection Period preceding such Payment Date: (a) all collections on Receivables, (b) all Recoveries, (c) the
Purchase Amount of each Receivable that became a Purchased Receivable as of the last day of the related Collection Period, (d) partial
prepayments relating to refunds of warranty or insurance financed by the respective Obligor thereon as part of the original contract and
only to the extent not included under clause (a) above, (e) Investment Earnings for such Payment Date, (f) any Collection
Account Redeposits for such Payment Date, (g) all amounts received from the Indenture Trustee pursuant to Section 5.04
of the Indenture minus (2) the Servicing Fee and other amounts payable to the Servicer pursuant to Section 4.08
of the Sale and Servicing Agreement for such Payment Date (unless the Servicer elects to defer part or all of such fee); provided,
however, that in calculating Available Funds all payments and proceeds of any Purchased Receivables the Purchase Amount
of which has been included in Available Funds in a prior Collection Period shall be excluded. Available Funds for each Payment Date will
not include, and the amount of Available Funds will not be reduced by, the amount of any Supplemental Servicing Fees. Amounts withdrawn
from the Reserve Account may not be used to pay the Servicing Fee or any other fees and expenses of the Servicer for so long as World
Omni or an Affiliate of World Omni is the Servicer.

 

    App. A-2

     

    

 

“Basic Documents”
means the Indenture, the Certificate of Trust, the Trust Agreement, the Sale and Servicing Agreement, the Receivables Purchase Agreement,
the Administration Agreement, the Note Depository Agreement, the Asset Representations Review Agreement and other documents and certificates
delivered in connection therewith.

  

“Benchmark”
means, initially, the SOFR Rate; provided that if the Administrator (on behalf of the Issuing Entity) determines prior to the relevant
Reference Time that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to the SOFR Rate
or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement.

 

“Benchmark Replacement”
means the first alternative set forth in the order below that can be determined by the Administrator (on behalf of the Issuing Entity)
as of the Benchmark Replacement Date;

 

(1) the sum of: (a) the
alternate rate of interest that has been selected or recommended by the Relevant Governmental Body as the replacement for the then-current
Benchmark and (b) the Benchmark Replacement Adjustment;

 

(2) the sum of: (a) the
ISDA Fallback Rate and (b) the Benchmark Replacement Adjustment; or

 

(3) the sum of: (a) the
alternate rate of interest that has been selected by the Administrator (on behalf of the Issuing Entity) as the replacement for the then-current
Benchmark giving due consideration to any industry-accepted rate of interest as a replacement for the then-current Benchmark for U.S.
dollar-denominated floating rate securities at such time and (b) the Benchmark Replacement Adjustment.

 

“Benchmark Replacement
Adjustment” means the first alternative set forth in the order below that can be determined by the Administrator (on behalf
of the Issuing Entity) as of the Benchmark Replacement Date:

 

(1) the spread adjustment
(which may be a positive or negative value or zero), or method for calculating or determining such spread adjustment, that has been selected
or recommended by the Relevant Governmental Body for the applicable Unadjusted Benchmark Replacement;

 

(2) if the applicable
Unadjusted Benchmark Replacement is equivalent to the ISDA Fallback Rate, the ISDA Fallback Adjustment; or

 

(3) the spread adjustment
(which may be a positive or negative value or zero) that has been selected by the Administrator (on behalf of the Issuing Entity) giving
due consideration to any industry-accepted spread adjustment, or method for calculating or determining such spread adjustment, for the
replacement of the then-current Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated floating rate
securities at such time.

 

    App. A-3

     

    

  

“Benchmark
Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational
changes (including changes to the Interest Accrual Period, timing and frequency of determining rates and making payments of interest,
rounding of amounts or tenors, and other administrative matters) that the Administrator (on behalf of the Issuing Entity) decides may
be appropriate to reflect the adoption of such Benchmark Replacement in a manner substantially consistent with market practice (or, if
the administrator (on behalf of the Issuing Entity) decides that adoption of any portion of such market practice is not administratively
feasible or if the Administrator (on behalf of the Issuing Entity) determines that no market practice for use of the Benchmark Replacement
exists, in such other manner as the Administrator (on behalf of the Issuing Entity) determines is reasonably necessary).

  

“Benchmark Replacement
Date” means the earliest to occur of the following events with respect to the then-current Benchmark (including the daily published
component used in the calculation thereof):

 

(1) in the case of clause
(1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement
or publication of information referenced therein and (b) the date on which the administrator of the Benchmark permanently or indefinitely
ceases to provide the Benchmark (or such component); or

 

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

 

For the avoidance of doubt,
if the event that gives rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect
of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination.

 

“Benchmark Transition
Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark (including the
daily published component used in the calculation thereof):

 

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

 

(2) a public statement
or publication of information by the regulatory supervisor for the administrator of the Benchmark (or such component), the central bank
for the currency of the Benchmark (or such component), an insolvency official with jurisdiction over the administrator for the Benchmark
(or such component), a resolution authority with jurisdiction over the administrator for the Benchmark (or such component) or a court
or an entity with similar insolvency or resolution authority over the administrator for the Benchmark, which states that the administrator
of the Benchmark (or such component) has ceased or will cease to provide the Benchmark (or such component) permanently or indefinitely,
provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the Benchmark
(or such component); or

 

    App. A-4

     

    

 

(3) a public statement
or publication of information by the regulatory supervisor for the administrator of the Benchmark announcing that the Benchmark is no
longer representative.

  

“Book-Entry Notes”
means, to the extent they are not Definitive Notes, a beneficial interest in the Class A-1 Notes, Class A-2 Notes, Class A-3
Notes, Class A-4 Notes, Class B Notes and Class C Notes, ownership and transfers of which shall be made through book entries
by a Clearing Agency as described in Section 2.11 of the Indenture.

 

“Business Day”
means any day other than (i) a Saturday or a Sunday or (ii) a day on which banking institutions or trust companies in the State
of Florida, the State of New York, the State of Delaware, the states in which the servicing offices of the Servicer are located or the
states in which the Corporate Trust Offices are located are required or authorized by law, regulation or executive order to be closed.

 

“Certificate of Trust”
shall mean the Certificate of Trust in the form of Exhibit B to the Trust Agreement filed for the Trust pursuant to Section 3810(a) of
the Delaware Statutory Trust Act.

 

“Certificateholder”
shall mean a Person in whose name a Trust Certificate is registered in the Certificate Register.

 

“Certificate Register”
and “Certificate Registrar” shall mean the register mentioned in and the registrar appointed pursuant to Section 3.04
of the Trust Agreement.

 

“Certificates”
means the Trust Certificates issued by the Issuing Entity pursuant to the Trust Agreement in form and substance attached as Exhibit A
thereto.

 

“Class”
means any one of the Class A-1 Notes, the Class A-2a Notes, the Class A-2b Notes, the Class A-3 Notes, the Class A-4
Notes, the Class B Notes or the Class C Notes.

 

“Class A Noteholders’
Interest Carryover Shortfall” means, with respect to any Payment Date, the excess of the Class A Noteholders’ Interest
Distributable Amount for the preceding Payment Date, over the amount in respect of interest that was actually paid on the Class A
Notes on such preceding Payment Date, plus interest on the amount of interest due but not paid to holders of the Class A Notes on
the preceding Payment Date, to the extent permitted by law, at the respective interest rates borne by each Class of the Class A
Notes for the related Interest Accrual Period.

 

“Class A Noteholders’
Interest Distributable Amount” means, with respect to any Payment Date, the sum of the Class A Noteholders’ Monthly
Interest Distributable Amount for such Payment Date and the Class A Noteholders’ Interest Carryover Shortfall for such Payment
Date.

 

    App. A-5

     

    

 

“Class A Noteholders’
Monthly Interest Distributable Amount” means, with respect to any Payment Date, interest accrued for the related Interest Accrual
Period on each Class of Class A Notes at the respective interest rate for such Class on the Outstanding Amount of the Notes
of such Class on the immediately preceding Payment Date (or, in the case of the initial Payment Date, on the Closing Date), after
giving effect to all payments of principal to the Noteholders of such Class on or prior to such preceding Payment Date. For all purposes
of this Agreement and the Basic Documents, interest with respect to the Class A-2a Notes, the Class A-3 Notes and the Class A-4
Notes shall be computed on the basis of a 360-day year consisting of twelve 30-day months. The interest due on these Classes of notes
on each Payment Date will be the product of:

  

		•	the Outstanding Principal Balance of the related Class of Notes;

 

		•	the related Interest Rate; and

 

		•	30 (or, in the case of the initial Payment Date, 44) divided by 360.

 

Interest with respect to the
Class A-1 Notes and the Class A-2b Notes shall be computed on the basis of the actual number of days in the related Interest
Accrual Period and a 360-day year. The interest due on the Class A-1 Notes and the Class A-2b Notes on each Payment Date will
be the product of:

 

		•	the Outstanding Principal Balance of the related Class of Notes;

 

		•	the related Interest Rate; and

 

		•	the actual number of days from and including the previous Payment Date (or, in the case of the initial
Payment Date, since the Closing Date) to but excluding the current Payment Date divided by 360.

 

“Class A Notes”
means the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes.

 

“Class A-1 Final
Scheduled Payment Date” means the June 2023 Payment Date.

 

“Class A-1 Interest
Rate” means 1.548% per annum computed on the basis of the actual number of days elapsed and on a 360 day year.

 

“Class A-1 Noteholder”
means the Person in whose name a Class A-1 Note is registered in the Note Register.

 

“Class A-1 Notes”
means the Class A-1 1.548% Asset-Backed Notes, substantially in the form of Exhibit A-1 to the Indenture.

 

“Class A-2 Final
Scheduled Payment Date” means the October 2025 Payment Date.

 

“Class A-2 Noteholder”
means the Person in whose name a Class A-2 Note is registered in the Note Register.

 

“Class A-2 Notes”
means the Class A-2a Notes and the Class A-2b Notes.

 

“Class A-2a
Interest Rate” means 2.77% per annum computed on the basis of a 360 day year of twelve 30 day months.

 

    App. A-6

     

    

  

“Class A-2a
Noteholder” means the Person in whose name a Class A-2a Note is registered in the Note Register.

  

“Class A-2a
Notes” means the Class A-2a 2.77% Asset-Backed Notes, substantially in the form of Exhibit A-2a to the Indenture.

 

“Class A-2b
Interest Rate” means with respect to any Payment Date, the SOFR Rate for the related Payment Date plus 0.57% per annum (computed
on the basis of the actual number of days elapsed and on a 360 day year); provided, that for any Interest Accrual Period for which the
sum of the SOFR Rate plus 0.57% is less than 0.00%, the Class A-2b Interest Rate shall be deemed to be 0.00%. Upon the occurrence
of a Benchmark Transition Event and its related Benchmark Replacement Date, the Class A-2b Interest Rate shall be as determined by
the Administrator (on behalf of the Issuing Entity) in accordance with the terms of the Indenture.

 

“Class A-2b
Noteholder” means the Person in whose name a Class A-2b Note is registered in the Note Register.

 

“Class A-2b
Notes” means the Class A-2b Floating Rate Asset-Backed Notes, substantially in the form of Exhibit A-2b to the Indenture.

 

“Class A-3 Final
Scheduled Payment Date” means the July 2027 Payment Date.

 

“Class A-3 Interest
Rate” means 3.25% per annum computed on the basis of a 360 day year of twelve 30 day months.

 

“Class A-3 Noteholder”
means the Person in whose name a Class A-3 Note is registered in the Note Register.

 

“Class A-3 Notes”
means the Class A-3 3.25% Asset-Backed Notes, substantially in the form of Exhibit A-3 to the Indenture.

 

“Class A-4 Final
Scheduled Payment Date” means the March 2028 Payment Date.

 

“Class A-4 Interest
Rate” means 3.44% per annum computed on the basis of a 360 day year of twelve 30 day months.

 

“Class A-4 Noteholder”
means the Person in whose name a Class A-4 Note is registered in the Note Register.

 

“Class A-4 Notes”
means the Class A-4 3.44% Asset-Backed Notes, substantially in the form of Exhibit A-4 to the Indenture.

 

“Class B Final
Scheduled Payment Date” means the June 2028 Payment Date.

 

“Class B Interest
Rate” means 3.56% per annum computed on the basis of a 360 day year of twelve 30 day months.

 

    App. A-7

     

    

 

 

“Class B Noteholder”
means the Person in whose name a Class B Note is registered in the Note Register.

 

“Class B Noteholders’
Interest Carryover Shortfall” means, with respect to any Payment Date, the excess of the Class B Noteholders’ Interest
Distributable Amount for the preceding Payment Date, over the amount in respect of interest that was actually paid on the Class B
Notes on such preceding Payment Date, plus interest on the amount of interest due but not paid to holders of the Class B Notes on
the preceding Payment Date, to the extent permitted by law, at the interest rate borne by the Class B Notes for the related Interest
Accrual Period.

 

“Class B Noteholders’
Interest Distributable Amount” means, with respect to any Payment Date, the sum of the Class B Noteholders’ Monthly
Interest Distributable Amount for such Payment Date and the Class B Noteholders’ Interest Carryover Shortfall for such Payment
Date.

 

“Class B Noteholders’
Monthly Interest Distributable Amount” means, with respect to any Payment Date, interest accrued for the related Interest Accrual
Period on the Class B Notes at the interest rate for such Class on the Outstanding Amount of the Notes of such Class on
the immediately preceding Payment Date (or, in the case of the initial Payment Date, on the Closing Date), after giving effect to all
payments of principal to the Noteholders of such Class on or prior to such preceding Payment Date. For all purposes of this Agreement
and the Basic Documents, interest with respect to all Class B Notes shall be computed on the basis of a 360-day year consisting of
twelve 30-day months. The interest due on these Classes of notes on each Payment Date will be the product of:

 

		·	the Outstanding Principal Balance of the Class B Notes;

 

		·	the Class B Interest Rate; and

 

		·	30 (or, in the case of the initial Payment Date, 44) divided by 360.

 

“Class B Notes”
means the Class B 3.56% Asset-Backed Notes substantially in the form of Exhibit B to the Indenture.

 

“Class C Final
Scheduled Payment Date” means the February 2029 Payment Date.

 

“Class C Interest
Rate” means 3.66% per annum computed on the basis of a 360 day year of twelve 30 day months.

 

“Class C Noteholder”
means the Person in whose name a Class C Note is registered in the Note Register.

 

“Class C Noteholders’
Interest Carryover Shortfall” means, with respect to any Payment Date, the excess of the Class C Noteholders’ Interest
Distributable Amount for the preceding Payment Date, over the amount in respect of interest that was actually paid on the Class C
Notes on such preceding Payment Date, plus interest on the amount of interest due but not paid to holders of the Class C Notes on
the preceding Payment Date, to the extent permitted by law, at the interest rate borne by the Class C Notes for the related Interest
Accrual Period.

 

    App. A-8

    

    

 

“Class C Noteholders’
Interest Distributable Amount” means, with respect to any Payment Date, the sum of the Class C Noteholders’ Monthly
Interest Distributable Amount for such Payment Date and the Class C Noteholders’ Interest Carryover Shortfall for such Payment
Date.

 

“Class C Noteholders’
Monthly Interest Distributable Amount” means, with respect to any Payment Date, interest accrued for the related Interest Accrual
Period on the Class C Notes at the interest rate for such Class on the Outstanding Amount of the Notes of such Class on
the immediately preceding Payment Date (or, in the case of the initial Payment Date, on the Closing Date), after giving effect to all
payments of principal to the Noteholders of such Class on or prior to such preceding Payment Date. For all purposes of this Agreement
and the Basic Documents, interest with respect to all Class C Notes shall be computed on the basis of a 360-day year consisting of
twelve 30-day months. The interest due on these Classes of notes on each Payment Date will be the product of:

 

		·	the Outstanding Principal Balance of the Class C Notes;

 

		·	the Class C Interest Rate; and

 

		·	30 (or, in the case of the initial Payment Date, 44) divided by 360.

 

“Class C Notes”
means the Class C 3.66% Asset-Backed Notes substantially in the form of Exhibit C to the Indenture.

 

“Clearing Agency”
means an organization registered as a “clearing agency” pursuant to Section 17A of the Exchange Act.

 

“Clearing Agency
Participant” means a broker, dealer, bank, other financial institution or other Person for whom from time to time a Clearing
Agency effects book-entry transfers and pledges of securities deposited with the Clearing Agency.

 

“Closing Date”
shall mean June 1, 2022.

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time, and Treasury Regulations promulgated thereunder.

 

“Code of Ethics for
Arbitrators in Commercial Disputes” means the The Code of Ethics for Arbitrators in Commercial Disputes of 1977, as revised
in 2003, and otherwise revised, modified, amended or supplemented from time to time.

 

“Collateral”
has the meaning specified in the Granting Clause of the Indenture.

 

“Collection Account”
means the account designated as such, established and maintained pursuant to Section 5.01(a)(i) of the Sale and Servicing
Agreement.

 

“Collection Account
Redeposits” means, with respect to any Payment Date, amounts that would have been distributed to the Certificateholders on the
immediately preceding Payment Date but for the direction of the Certificateholders causing such amounts to remain on deposit in the Collection
Account.

 

    App. A-9

    

    

 

“Collection Period”
means, with respect to any Payment Date, the period from and including the first day of the calendar month immediately preceding the calendar
month in which such Payment Date occurs (or with respect to the initial Payment Date, from but excluding the Cutoff Date) to and including
the last day of the calendar month immediately preceding the calendar month in which such Payment Date occurs. Any amount stated as of
the last day of a Collection Period shall give effect to the following applications as determined as of the close of business on such
last day: (1) all applications of collections and (2) all distributions to be made on the related Payment Date.

 

“Collections”
shall mean all amounts collected by the Servicer (from whatever source) on or with respect to the Receivables.

 

“Commission”
means the U.S. Securities and Exchange Commission.

 

“Compounded SOFR”
with respect to any U.S. Government Securities Business Day, shall mean:

 

(1) the applicable compounded
average of SOFR for the Corresponding Tenor of 30 days as published on such U.S. Government Securities Business Day at the SOFR Determination
Time; or

 

(2) if the rate specified
in (1) above does not so appear, the applicable compounded average of SOFR for the Corresponding Tenor as published in respect of
the first preceding U.S. Government Securities Business Day for which such rate appeared on the FRBNY’s Website.

 

The specific Compounded SOFR
rate is referred to by its tenor. For example, “30-day Average SOFR” refers to the compounded average SOFR over a rolling
30-calendar day period as published on the FRBNY’s Website.

 

“Contract”
means a motor vehicle retail installment sale contract.

 

“Contract Rate”
means, with respect to a Receivable, the rate of interest stated in the related Contract or then applicable to such Receivable.

 

“Controlling Securities”
means (i) the Class A Notes so long as the Class A Notes are outstanding, (ii) after the Class A Notes are no
longer outstanding, the Class B Notes so long as the Class B Notes are outstanding and (iii) after the Class B Notes
are no longer outstanding, the Class C Notes so long as the Class C Notes are outstanding.

 

“Corporate Trust
Office” means:

 

(a)            with
respect to the Indenture Trustee, (i) solely for purposes of registration, transfer or exchange of the Notes, 111 East Fillmore Avenue,
EP-MN-WS2N, St. Paul, Minnesota 55107, Attention: Bondholder Services and (ii) for all other purposes, the principal office of the
Indenture Trustee at which at any particular time its corporate trust business shall be administered which office at date of the execution
of the Indenture is located at 190 South LaSalle Street, 7th Floor, Chicago, IL 60603, Attention: Corporate Trust Services, WOART
2022-B, or at such other address or electronic mail address as the Indenture Trustee may designate from time to time by notice to the
Noteholders and the Issuing Entity, or the principal corporate trust office of any successor Indenture Trustee at the address or electronic
mail address designated by such successor Indenture Trustee by notice to the Noteholders and the Issuing Entity; and

 

    App. A-10

    

    

 

(b)            with
respect to the Owner Trustee, the corporate trust office of the Owner Trustee located at Wilmington Trust, National Association, Rodney
Square North, 1100 North Market Street, Wilmington, Delaware 19890-0001, Attention: Corporate Trust Administration – WOART 2022-B,
jlinian@wilmingtontrust.com, or at such other address or electronic mail address as the Owner Trustee may designate by notice to the Certificateholders
and the Depositor, or the principal corporate trust office of any successor Owner Trustee at the address or electronic mail address designated
by such successor Owner Trustee by notice to the Certificateholders and the Depositor.

 

“Corresponding Tenor”
means, with respect to a Benchmark Replacement, a tenor (including overnight) having approximately the same length (disregarding any business
day adjustment) as the applicable tenor for the then-current Benchmark.

 

“Cutoff Date”
means the close of business on April 15, 2022.

 

“Dealer”
means the dealer who sold a Financed Vehicle and who originated and assigned the related Receivable to World Omni under an existing agreement
between such dealer and World Omni.

 

“Debt Opinion”
has the meaning specified in Section 2.04(b) of the Indenture.

 

“Default”
means any occurrence that is, or with notice or the lapse of time or both would become, an Event of Default.

 

“Defaulted Receivable”
means a Receivable as to which (a) more than $40 of a scheduled payment is 120 or more days past due in accordance with its terms,
(b) the Servicer has either repossessed and liquidated the related Financed Vehicle or repossessed and held the related Financed
Vehicle in its repossession inventory for 45 days, whichever occurs first, or (c) the Servicer has, in accordance with its customary
servicing procedures, determined that eventual payment in full is unlikely and has charged off the remaining Principal Balance. The Principal
Balance of any Receivable that becomes a Defaulted Receivable will be deemed to be zero as of the date it becomes a Defaulted Receivable.

 

“Definitive Notes”
has the meaning specified in Section 2.11 of the Indenture.

 

“Delinquency Percentage”
means, for each Payment Date and the related Collection Period, the ratio (expressed as a percentage) of (i) the aggregate Principal
Balance of all Delinquent Receivables held by the Issuing Entity that are more than 60 days delinquent to (ii) the aggregate Principal
Balance of the Receivables, in each case, as of the last day of the related Collection Period, after giving effect to all payments of
principal received from obligors and Purchase Amounts to be remitted by the Servicer or the Depositor, as the case may be, and after reduction
to zero of the aggregate outstanding Principal Balance of any Receivable that became a Defaulted Receivable during the related Collection
Period.

 

    App. A-11

    

    

 

“Delinquency Trigger”
means 4.70%.

 

“Delinquent Receivable”
means a Receivable as to which more than $40 of a scheduled payment is past due, including a Receivable with a bankrupt Obligor but excluding
a Defaulted Receivable.

 

“Delivery”
when used with respect to Trust Account Property means:

 

(a)            with
respect to bankers’ acceptances, commercial paper, negotiable certificates of deposit and other obligations that constitute “instruments”
within the meaning of Section 9-102(a)(47) of the UCC and are susceptible of physical delivery, transfer thereof to the Indenture
Trustee or its nominee or custodian by physical delivery to the Indenture Trustee or its nominee or custodian endorsed to, or registered
in the name of, the Indenture Trustee or its nominee or custodian or endorsed in blank, and, with respect to a certificated security (as
defined in Section 8-102 of the UCC) transfer thereof (i) by delivery of such certificated security endorsed to, or registered
in the name of, the Indenture Trustee or its nominee or custodian or endorsed in blank to a financial intermediary (as defined in Section 8-313
of the UCC) and the making by such financial intermediary of entries on its books and records identifying such certificated securities
as belonging to the Indenture Trustee or its nominee or custodian and the sending by such financial intermediary of a confirmation of
the purchase of such certificated security by the Indenture Trustee or its nominee or custodian, or (ii) by delivery thereof to a
 “clearing corporation” (as defined in Section 8-102(3) of the UCC) and the making by such clearing corporation of
appropriate entries on its books reducing the appropriate securities account of the transferor and increasing the appropriate securities
account of a financial intermediary by the amount of such certificated security, the identification by the clearing corporation of the
certificated securities for the sole and exclusive account of the financial intermediary, the maintenance of such certificated securities
by such clearing corporation or a “custodian bank” (as defined in Section 8-102(4) of the UCC) or the nominee of
either subject to the clearing corporation’s exclusive control, the sending of a confirmation by the financial intermediary of the
purchase by the Indenture Trustee or its nominee or custodian of such securities and the making by such financial intermediary of entries
on its books and records identifying such certificated securities as belonging to the Indenture Trustee or its nominee or custodian (all
of the foregoing, “Physical Property”), and, in any event, any such Physical Property in registered form shall be in
the name of the Indenture Trustee or its nominee or custodian; and such additional or alternative procedures as may hereafter become appropriate
to effect the complete transfer of ownership of any such Trust Account Property (as defined herein) to the Indenture Trustee or its nominee
or custodian, consistent with changes in applicable law or regulations or the interpretation thereof;

 

    App. A-12

    

    

 

(b)            with
respect to any securities issued by the U.S. Treasury, the Federal Home Loan Mortgage Corporation or by the Federal National Mortgage
Association that are book-entry securities held through the Federal Reserve System pursuant to Federal book-entry regulations, the following
procedures, all in accordance with applicable law, including applicable Federal regulations and Articles 8 and 9 of the UCC: book-entry
registration of such Trust Account Property to an appropriate book-entry account maintained with a Federal Reserve Bank by a financial
intermediary which is also a “depository” pursuant to applicable Federal regulations and issuance by such financial intermediary
of a deposit advice or other written confirmation of such book-entry registration to the Indenture Trustee or its nominee or custodian
of the purchase by the Indenture Trustee or its nominee or custodian of such book-entry securities; the identification by the Federal
Reserve Bank of such book-entry securities on its record being credited to the financial intermediary’s Participant’s securities
account; the making by such financial intermediary of entries in its books and records identifying such book-entry security held through
the Federal Reserve System pursuant to Federal book-entry regulations as being credited to the Indenture Trustee’s securities account
or custodian’s securities account and indicating that such custodian holds such Trust Account Property solely as agent for the Indenture
Trustee or its nominee or custodian; and such additional or alternative procedures as may hereafter become appropriate to effect complete
transfer of ownership of any such Trust Account Property to the Indenture Trustee or its nominee or custodian, consistent with changes
in applicable law or regulations or the interpretation thereof; and

 

(c)            with
respect to any item of Trust Account Property that is an uncertificated security under Article 8 of the UCC and that is not governed
by clause (b) above, registration on the books and records of the issuer thereof in the name of the financial intermediary, the sending
of a confirmation by the financial intermediary of the purchase by the Indenture Trustee or its nominee or custodian of such uncertificated
security, the making by such financial intermediary of entries on its books and records identifying such uncertificated certificates as
belonging to the Indenture Trustee or its nominee or custodian.

 

“Depositor”
means World Omni Auto Receivables LLC, a Delaware limited liability company, or its successors, in its capacity as Depositor under certain
of the Basic Documents.

 

“Eligible Deposit
Account” means either (a) a segregated account with an Eligible Institution or (b) a segregated trust account with
an Eligible Trust Account Institution.

 

“Eligible Institution”
means a depository institution or trust company (which may be the Owner Trustee, the Indenture Trustee or any of their respective affiliates)
organized under the laws of the United States of America or any one of the states thereof or the District of Columbia (or any domestic
branch of a foreign bank), (i) which has either (A) a long-term unsecured debt rating of “A” or better by Fitch
and “AA” or better by S&P Global Ratings, (B) a short-term unsecured debt rating or certificate of deposit rating
of “F1” or better by Fitch and “A-1+” or better by S&P Global Ratings or (C) such other rating that is
acceptable to each Rating Agency and (ii) whose deposits are insured by the FDIC.

 

    App. A-13

    

    

 

“Eligible Investments”
shall mean any of the following in each case with a required maturity date as set forth in Section 5.01(b) of the Sale
and Servicing Agreement:

 

(a)            (i) direct
obligations of, and obligations guaranteed as to full and timely payment of principal and interest by, the United States or any agency
or instrumentality of the United States the obligations of which are backed by the full faith and credit of the United States (other than
the Government National Mortgage Association), and (ii) direct obligations of, or obligations fully guaranteed by, Fannie Mae or
any State then rated with the highest available credit rating of Fitch (if rated by Fitch) and S&P Global Ratings, or such obligations,
which obligations are, at the time of investment, otherwise acceptable to each Rating Agency for securities having a rating at least equivalent
to the rating of the Notes;

 

(b)            money
market deposit accounts, deposit accounts, certificates of deposit, demand or time deposits, savings deposits, bankers acceptances, or
federal funds, in each case as defined in Regulation D of the Board of Governors of the Federal Reserve System and issued by or sold by
or offered by, any domestic office of any commercial bank or any depository institution or trust company (including the Indenture Trustee,
the Account Bank or the Owner Trustee or their successors) incorporated or organized under the laws of the United States or any State
thereof which has a combined capital and surplus and undivided profits of not less than $250,000,000 and the deposits of which are insured
by the FDIC to the full extent legally permitted, so long as at the time of such investment or contractual commitment providing for such
investment either such depository institution or trust company is an Eligible Institution (or has a rating on commercial paper or other
short term unsecured debt obligations of F1 or A by Fitch so long as Fitch is a Rating Agency) or as to which the Rating Agency Condition
is satisfied;

 

(c)            repurchase
obligations held by the Indenture Trustee or Account Bank with respect to (i) any security described in clause (a) above or
(e) below, or (ii) any other security issued or guaranteed by any agency or instrumentality of the United States, in either
case entered into with a federal agency or depository institution or trust company (including the Indenture Trustee or Account Bank) acting
as principal, whose obligations having the same maturity as that of the repurchase agreement would be Eligible Investments under clause
(b) above; provided, however, that repurchase obligations entered into with any particular depository institution
or trust company (including the Indenture Trustee, Account Bank or Owner Trustee) will not be Eligible Investments to the extent that
the aggregate principal amount of such repurchase obligations with such depository institution or trust company held by the Indenture
Trustee on behalf of the Trust shall exceed 10% of either the Pool Balance or the aggregate unpaid balance or face amount, as the case
may be, of all Eligible Investments held by the Indenture Trustee (or the Account Bank on its behalf) on behalf of the Trust;

 

(d)            securities
bearing interest or sold at a discount issued by any corporation incorporated under the laws of the United States or any State so long
as at the time of such investment or contractual commitment providing for such investment, either the long-term, unsecured debt of such
corporation has the highest available credit rating from Fitch and S&P Global Ratings, or the Rating Agency Condition has been satisfied,
or commercial paper or other short-term debt having the Required Rating; provided, however, that any such commercial paper
or other short-term debt may have a remaining term to maturity of no longer than 30 days after the date of such investment or contractual
commitment providing for such investment, and that the securities issued by any particular corporation will not be Eligible Investments
to the extent that investment therein will cause the then outstanding principal amount or face amount, as the case may be, of securities
issued by such corporation and held by the Indenture Trustee on behalf of the Trust to exceed 10% of either the Pool Balance or the aggregate
unpaid principal balance or face amount, as the case may be, of all Eligible Investments held by the Indenture Trustee (or the Account
Bank on its behalf) on behalf of the Trust;

 

    App. A-14

    

    

 

(e)            interest
in any open-end or closed-end management type investment company or investment trust (i) registered under the Investment Company
Act of 1940, as amended, the portfolio of which is limited to the obligations of, or guaranteed by, the United States and to agreements
to repurchase such obligations, which agreements, with respect to principal and interest, are at least 100% collateralized by such obligations
marked to market on a daily basis and the investment company or investment trust shall take delivery of such obligations either directly
or through an independent custodian designated in accordance with the Investment Company Act and (ii) acceptable to each Rating Agency
(for which the Rating Agency Condition has been satisfied) as collateral for securities having ratings equivalent to the ratings of the
Notes;

 

(f)             guaranteed
reinvestment agreements issued by any bank, insurance company or other corporation, so long as at the time of such investment or contractual
commitment providing for such investment either such bank, insurance company or other corporation is an Eligible Institution (or has a
rating on commercial paper or other short term unsecured debt obligations of F1 or A by Fitch so long as Fitch is a Rating Agency) or
as to which the Rating Agency Condition is satisfied;

 

(g)            investments
in Eligible Investments maintained in “sweep accounts,” short-term asset management accounts and the like utilized for the
investment, on an overnight basis, of residual balances in investment accounts maintained at the Indenture Trustee or any other depository
institution or trust company organized under the laws of the United States or any state that is a member of the FDIC, the short-term debt
of which has the highest available credit rating of Fitch and S&P Global Ratings;

 

(h)            guaranteed
investment contracts entered into with any financial institution having a final maturity of not more than one month from the date of acquisition,
the short-term debt securities of which institution have the Required Rating;

 

(i)             funds
classified as money market funds; provided, however, that the fund shall be rated with the highest available credit
rating of Fitch (if rated by Fitch or, if not rated by Fitch, an equivalent rating by Moody’s Investors Service, Inc.) and
S&P Global Ratings, and redemptions shall be permitted on a daily or next business day basis;

 

(j)             auction
rate securities issued with a rate reset mechanism and a maximum term of 30 days; provided that investment will be limited to those
issuers having the AAA credit rating of Fitch and S&P Global Ratings;

 

    App. A-15

    

    

 

(k)            such
other investments for which the Rating Agency Condition has been satisfied; and

 

(l)             for
the purposes of funds held in the Reserve Account only, in addition to the above requirements, such funds may only be invested in Eligible
Investments meeting the requirements of §246.4(b)(2) of Regulation RR, as determined solely by the Servicer.

 

Notwithstanding anything to
the contrary contained in the foregoing definition:

 

(a)            no
Eligible Investment may be repurchased at a premium;

 

(b)            any
of the foregoing which constitutes a certificated security shall not be considered an Eligible Investment unless:

 

(i)            in
the case of a certificated security that is in bearer form, (A) the Indenture Trustee acquires physical possession of such certificated
security, or (B) a person, other than a securities intermediary, acquires possession of such certificated security on behalf of the
Indenture Trustee; and

 

(ii)           in
the case of a certificated security that is in registered form (A)(1) the Indenture Trustee acquires physical possession of such
certificated security, (2) a person, other than a securities intermediary, acquires possession of such certificated security on behalf
of the Indenture Trustee, or (3) a securities intermediary acting on behalf of the Indenture Trustee acquires possession of such
certificated security and such certificated security has been specially endorsed to the Indenture Trustee, and (B) (1) such
certificated security is endorsed to the Indenture Trustee or in blank by an effective endorsement, or (2) such certificated security
is registered in the name of the Indenture Trustee;

 

(c)            any
of the foregoing that constitutes an uncertificated security shall not be considered an Eligible Investment unless (A) the Indenture
Trustee is registered by the issuer as the owner thereof, (B) a person, other than a securities intermediary, becomes the registered
owner of such uncertificated security on behalf of the Indenture Trustee, or (C) the issuer of such uncertificated security agrees
that it will comply with the instructions originated by the Indenture Trustee without further consent by any registered owner of such
uncertificated security;

 

(d)            any
of the foregoing that constitutes a security entitlement shall not be considered an Eligible Investment unless (A) the Indenture
Trustee becomes the entitlement holder thereof, or (B) the securities intermediary has agreed to comply with the entitlement orders
originated by the Indenture Trustee without further consent by the entitlement holder;

 

(e)            any
of the foregoing shall not constitute an Eligible Investment unless the Indenture Trustee (A) has given value, and (B) does
not have notice of an adverse claim; and

 

    App. A-16

    

    

 

(f)             for
the purposes of funds held in the Collection Account only, investments which would otherwise qualify as Eligible Investments but for the
fact that such investments are rated A-1 by S&P Global Ratings shall be Eligible Investments, so long as the aggregate amount of such
investments does not exceed 10% of the Outstanding Amount of the Notes.

 

“Eligible Trust Account
Institution” means the corporate trust department of a depository institution organized under the laws of the United States
of America or any one of the states thereof or the District of Columbia (or any domestic branch of a foreign bank), having corporate trust
powers and acting as trustee for funds deposited in such account, so long as such depository institution has either (A) a long-term
unsecured debt rating of “A” or better by Fitch and “AA” or better by S&P Global Ratings, (B) a short-term
unsecured debt rating or certificate of deposit rating of “F1” by Fitch and “A-1+” by S&P Global Ratings or
(C) such other rating that is acceptable to each Rating Agency.

 

“ERISA”
shall have the meaning assigned thereto in Section 3.04 of the Trust Agreement.

 

“Event of Default”
has the meaning specified in Section 5.01 of the Indenture.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

“Executive Officer”
means, with respect to any company, the Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, President, any Executive
Vice President, Vice President, Secretary, Assistant Secretary, Treasurer or Assistant Treasurer of such company; and with respect to
any partnership, any general partner thereof.

 

“Expenses”
shall have the meaning assigned to such term in Section 8.02 of the Trust Agreement.

 

“FATCA”
means Sections 1471 through 1474 of the Code.

 

“FATCA Withholding
Tax” means any withholding or deduction pursuant to an agreement described in Section 1471(b) of the Code or otherwise
imposed pursuant to Sections 1471 through 1474 of the Code and any regulations or agreements (including any intergovernmental agreements)
thereunder or official interpretations thereof.

 

“FDIC”
means the Federal Deposit Insurance Corporation.

 

“Final Prospectus”
shall mean the prospectus dated May 24, 2022, relating to the Notes.

 

“Final Scheduled
Payment Date” means (i) with respect to the Class A-1 Notes, the Class A-1 Final Scheduled Payment Date, (ii) with
respect to the Class A-2 Notes, the Class A-2 Final Scheduled Payment Date, (iii) with respect to the Class A-3 Notes,
the Class A-3 Final Scheduled Payment Date, (iv) with respect to the Class A-4 Notes, the Class A-4 Final Scheduled
Payment Date, (v) with respect to the Class B Notes, the Class B Final Scheduled Payment Date and (vi) with respect
to the Class C Notes, the Class C Final Scheduled Payment Date.

 

    App. A-17

    

    

 

“Financed Vehicle”
means an automobile or light-duty truck, together with all accessions thereto, securing an Obligor’s indebtedness under the respective
Receivable.

 

“Financial Asset”
has the meaning given such term in Revised Article 8. As used herein, the Financial Asset “related to” a security entitlement
is the Financial Asset in which the entitlement holder (as defined in the New York UCC) holding such Security Entitlement has the rights
and property interest specified in the New York UCC.

 

“Fitch”
means Fitch Ratings, Inc. or its successor.

 

“Force Majeure”
means any delay or failure in performance caused by acts beyond the Servicer’s, the Indenture Trustee’s or the Issuing Entity’s,
as applicable, control, including acts of God, terrorism, war, vandalism, sabotage, ransomware, accidents, fires, floods, hurricanes,
tornados, civil unrest, strikes, labor disputes, mechanical or electronic breakdown, shortages or delays in obtaining suitable parts or
equipment, material, labor, or transportation, acts of subcontractors, interruption of utility services, epidemics or pandemics, acts
of any unit of government or governmental agency, or any similar or dissimilar cause.

 

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

 

“FRBNY’s Website”
shall mean the website of the FRBNY, currently at https://apps.newyorkfed.org/markets/autorates/sofr-avg-ind or at such other page as
may replace such page on the FRBNY’s website.

 

“Grant”
means mortgage, pledge, bargain, warrant, alienate, remise, release, convey, assign, transfer, create, and grant a lien upon and a security
interest in and a right of set-off against, deposit, set over and confirm pursuant to the Indenture. A Grant of the Collateral or of any
other agreement or instrument shall include all rights, powers and options (but none of the obligations) of the granting party thereunder,
including the immediate and continuing right to claim for, collect, receive and give receipt for principal and interest payments in respect
of the Collateral and all other monies payable thereunder, to give and receive notices and other communications, to make waivers or other
agreements, to exercise all rights and options, to bring Proceedings in the name of the granting party or otherwise, and generally to
do and receive anything that the granting party is or may be entitled to do or receive thereunder or with respect thereto.

 

“Holder”
or “Noteholder” means the Person in whose name a Note is registered on the Note Register.

 

“Indemnified Parties”
shall have the meaning assigned to such term in Section 8.02 of the Trust Agreement.

 

“Indenture”
shall mean the Indenture, dated as of the Closing Date, among the Trust, the Indenture Trustee and the Account Bank, as the same may be
amended and supplemented from time to time.

 

    App. A-18

    

    

 

“Indenture Trustee”
means U.S. Bank Trust Company, National Association, not in its individual capacity but solely as Indenture Trustee under the Indenture,
or any successor Indenture Trustee under the Indenture.

 

“Independent”
means, when used with respect to any specified Person, that the Person (a) is in fact independent of the Issuing Entity, any other
obligor on the Notes, the Depositor and any Affiliate of any of the foregoing Persons, (b) does not have any direct financial interest
or any material indirect financial interest in the Issuing Entity, any such other obligor, the Depositor or any Affiliate of any of the
foregoing Persons and (c) is not connected with the Issuing Entity, any such other obligor, the Depositor or any Affiliate of any
of the foregoing Persons as an officer, employee, promoter, underwriter, trustee, partner, director or person performing similar functions.

 

“Independent Certificate”
means a certificate or opinion to be delivered to the Indenture Trustee under the circumstances described in, and otherwise complying
with, the applicable requirements of Section 11.01 of the Indenture, made by an Independent appraiser or other expert appointed
by an Issuing Entity Order and approved by the Indenture Trustee in the exercise of reasonable care, and such opinion or certificate shall
state that the signer has read the definition of “Independent” in the Indenture and that the signer is Independent within
the meaning thereof.

 

“Initial Aggregate
Starting Principal Balance” means $1,083,969,917.66.

 

“Initial Trust Agreement”
shall have the meaning assigned to such term in Section 2.12 of the Trust Agreement.

 

“Insolvency Event”
means, with respect to a specified Person, (a) the filing of a decree or order for relief by a court having jurisdiction in the premises
in respect of such Person or any substantial part of its property in an involuntary case under any applicable federal or state bankruptcy,
insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator
or similar official for such Person or for any substantial part of its property, or ordering the winding-up or liquidation of such Person’s
affairs, and such decree or order shall remain unstayed and in effect for a period of 60 consecutive days; or (b) the commencement
by such Person of a voluntary case under any applicable federal or state bankruptcy, insolvency or other similar law now or hereafter
in effect, or the consent by such Person to the entry of an order for relief in an involuntary case under any such law, or the consent
by such Person to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official for such Person or for any substantial part of its property, or the making by such Person of any general assignment for the benefit
of creditors, or the failure by such Person generally to pay its debts as such debts become due, or the taking of action by such Person
in furtherance of any of the foregoing.

 

“Interest Accrual
Period” means, with respect to any Payment Date, (i) for the Class A-1 Notes and the Class A-2b Notes, the period
from and including the previous Payment Date (or, in the case of the initial Payment Date, the Closing Date) to, but excluding, the current
Payment Date and (ii) for the Class A-2a Notes, the Class A-3 Notes, the Class A-4 Notes, the Class B Notes and
the Class C Notes, the period from and including the 15th day of the preceding calendar month (or, in the case of the initial Payment
Date, the Closing Date) to, but excluding, the 15th day of the current calendar month.

 

    App. A-19

    

    

 

“Interest Rate”
means the Class A-1 Interest Rate, the Class A-2a Interest Rate, the Class A-2b Interest Rate, the Class A-3 Interest
Rate, the Class A-4 Interest Rate, the Class B Interest Rate or the Class C Interest Rate, as applicable.

 

“Investment Earnings”
means, with respect to any Payment Date, the investment earnings (net of losses and investment expenses) on amounts on deposit in the
Trust Accounts to be deposited into the Collection Account on such Payment Date pursuant to Section 5.01(b) of the Sale
and Servicing Agreement.

 

“Investment Letter”
has the meaning assigned in Section 2.04(a) of the Indenture.

 

“ISDA Definitions”
means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto,
as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time
to time.

 

“ISDA Fallback Adjustment”
means the spread adjustment (which may be a positive or negative value or zero) that would apply for derivatives transactions referencing
the ISDA Definitions to be determined upon the occurrence of an index cessation event with respect to the Benchmark.

 

“ISDA Fallback Rate”
shall mean the rate that would apply for derivatives transactions referencing the ISDA Definitions to be effective upon the occurrence
of an index cessation date with respect to the Benchmark for the applicable tenor excluding the applicable ISDA Fallback Adjustment.

 

“Issuing Entity”
means World Omni Auto Receivables Trust 2022-B until a successor replaces it and, thereafter, means the successor and, for purposes of
any provision contained in the Indenture and required by the TIA, each other obligor on the Notes.

 

“Issuing Entity Order”
or “Issuing Entity Request” means a written order or request signed in the name of the Issuing Entity by any one of
its Authorized Officers and delivered to the Indenture Trustee.

 

“Lien”
means a security interest, lien, charge, pledge, equity or encumbrance of any kind, other than tax liens, mechanics’ liens and any
liens that attach to the respective Receivable by operation of law as a result of any act or omission by the related Obligor.

 

“Monthly Remittance
Condition” means each of the following conditions has been satisfied: (i) World Omni is the Servicer, (ii) no Servicer
Default shall have occurred and is continuing, and (iii) (a) World Omni’s long-term unsecured debt obligations rating
by S&P is BBB or better and (b) World Omni’s unsecured debt obligations rating by any other Rating Agency is acceptable
to such other Rating Agency.

 

    App. A-20

    

    

 

“Note Depository
Agreement” means the letter of representations, dated as of the Closing Date, between the Issuing Entity and The Depository
Trust Company, as the initial Clearing Agency.

 

“Note Distribution
Account” means the account designated as such, established and maintained pursuant to Section 5.01(a)(ii) of
the Sale and Servicing Agreement.

 

“Note Owner”
means, with respect to a Book-Entry Note, the Person who is the beneficial owner of such Book-Entry Note, as reflected on the books of
the Clearing Agency or on the books of a Person maintaining an account with such Clearing Agency (directly as a Clearing Agency Participant
or as an indirect participant, in each case in accordance with the rules of such Clearing Agency).

 

“Note Pool Factor”
means, with respect to each Class of Notes as of the close of business on the last day of a Collection Period, a seven-digit decimal
figure equal to the Outstanding Amount of such Class of Notes (after giving effect to any reductions thereof to be made on the immediately
following Payment Date) divided by the original Outstanding Amount of such Class of Notes. The Note Pool Factor will be 1.0000000
as of the Closing Date; thereafter, the Note Pool Factor will decline to reflect reductions in the Outstanding Amount of such Class of
Notes.

 

“Note Register”
and “Note Registrar” have the respective meanings specified in Section 2.05 of the Indenture.

 

“Noteholder FATCA
Information” means, with respect to any Noteholder or Note Owner, information sufficient to eliminate the imposition of, or
determine the amount of, U.S. withholding tax under FATCA.

 

“Noteholder Tax Identification
Information” means, with respect to any Noteholder or Note Owner, properly completed and signed tax certifications (generally,
in the case of U.S. federal income tax, IRS Form W-9 (or applicable successor form) in the case of a person that is a “United
States person” within the meaning of Section 7701(a)(30) of the Code or the appropriate IRS Form W-8 (or applicable successor
form) in the case of a person that is not a “United States person” within the meaning of Section 7701(a)(30) of the Code).

 

“Noteholders”
shall mean the holders of the Notes.

 

“Noteholders’
First Priority Principal Distributable Amount” means, with respect to any Payment Date, an amount equal to the excess, if any,
of (a) the Outstanding Amount of the Class A Notes as of the day immediately preceding such Payment Date over (b) the Pool
Balance for that Payment Date.

 

“Noteholders’
Interest Distributable Amount” means, with respect to any Payment Date, the sum of the Class A Noteholders’ Interest
Distributable Amount for such Payment Date, the Class B Noteholders’ Interest Distributable Amount for such Payment Date and
the Class C Noteholders’ Interest Distributable Amount for such Payment Date.

 

“Noteholders’
Principal Distributable Amount” means, with respect to any Payment Date, the excess, if any, of (a) the sum of the Outstanding
Amount of the Notes as of the day immediately preceding that Payment Date over (b) the Pool Balance for that Payment Date minus the
Overcollateralization Target Amount for that Payment Date, provided that on the Final Scheduled Payment Date of any Class of
Notes, the Noteholders’ Principal Distributable Amount shall not be less than the amount necessary to reduce the aggregate Principal
Balance of such Class of Notes to zero.

 

    App. A-21

    

    

 

“Noteholders’
Second Priority Principal Distributable Amount” means, with respect to any Payment Date, an amount equal to the excess, if any,
of (a) the Outstanding Amount of the Class A Notes and the Class B Notes as of the day immediately preceding such Payment
Date over (b) the Pool Balance for that Payment Date less (c) any amounts allocated to the Noteholders’ First Priority
Principal Distributable Amount.

 

“Noteholders’
Third Priority Principal Distributable Amount” means, with respect to any Payment Date, an amount equal to the excess, if any,
of (a) the Outstanding Amount of the Class A Notes, the Class B Notes and the Class C Notes as of the day immediately
preceding such Payment Date over (b) the Pool Balance for that Payment Date less (c) any amounts allocated to the sum of the
Noteholders’ First Priority Principal Distributable Amount and the Noteholders’ Second Priority Principal Distributable Amount.

 

“Notes”
means Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes, Class B Notes and the Class C
Notes.

 

“Obligor”
on a Receivable means the purchaser or co-purchasers of the Financed Vehicle and any other Person who owes payments under the Receivable.

 

“Officer’s
Certificate” means in the case of (i) the Issuing Entity, a certificate signed by any Authorized Officer of the Issuing
Entity, under the circumstances described in, and otherwise complying with, the applicable requirements of Section 11.01 of
the Indenture, and delivered to the Indenture Trustee (unless otherwise specified, any reference in the Indenture to an Officer’s
Certificate shall be to an Officer’s Certificate of any Authorized Officer of the Issuing Entity), and (ii) World Omni, the
Depositor or the Servicer, a certificate signed by the president, a vice president, a treasurer, assistant treasurer, secretary or assistant
secretary of World Omni, the Depositor or the Servicer, as appropriate.

 

“Opinion of Counsel”
means one or more written opinions of counsel who may, except as otherwise expressly provided in the Indenture, be an employee of or counsel
to the Issuing Entity and who shall be satisfactory to the addressees of such opinion, and which opinion or opinions if addressed to the
Indenture Trustee, shall comply with any applicable requirements of Section 11.01 of the Indenture and shall be in form and
substance satisfactory to the Indenture Trustee.

 

“Outstanding”
means, as of the date of determination, all Notes theretofore authenticated and delivered under the Indenture except:

 

(a)            Notes
theretofore cancelled by the Note Registrar or delivered to the Note Registrar for cancellation;

 

    App. A-22

    

    

 

(b)            Notes
or portions thereof the payment for which money in the necessary amount has been theretofore deposited with the Indenture Trustee or any
Paying Agent in trust for the Holders of such Notes (provided, however, that if such Notes are to be redeemed, notice of
such redemption has been duly given or waived pursuant to the Indenture or provision for such notice or waiver has been made which is
satisfactory to the Indenture Trustee); and

 

(c)            Notes
in exchange for or in lieu of which other Notes have been authenticated and delivered pursuant to the Indenture unless proof satisfactory
to the Indenture Trustee is presented that any such Notes are held by a protected purchaser;

 

provided,
that in determining whether the Holders of the requisite Outstanding Amount of the Controlling Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or under any Basic Document, Notes owned by the Issuing Entity, any other
obligor upon the Notes, the Depositor or any Affiliate of any of the foregoing Persons shall be disregarded and deemed not to be Outstanding,
except that, in determining whether the Indenture Trustee shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Notes that a Responsible Officer of the Indenture Trustee has actual knowledge are so owned
shall be so disregarded. Notes so owned that have been pledged in good faith may be regarded as Outstanding if the pledgee establishes
to the satisfaction of the Indenture Trustee the pledgee’s right so to act with respect to such Notes and that the pledgee is not
the Issuing Entity, any other obligor upon the Notes, the Depositor or any Affiliate of any of the foregoing Persons.

 

“Outstanding Amount”
means the aggregate principal amount of all Notes, or Class of Notes, as applicable, Outstanding at the date of determination.

 

“Overcollateralization
Target Amount” means, with respect to any Payment Date, an amount equal to 0.90% of the aggregate Principal Balance of the Receivables
as of the end of the related Collection Period less the Yield Supplement Overcollateralization Amount of those Receivables as of the last
day of the related Collection Period, but not less than the result of 0.50% of the Aggregate Starting Principal Balance of the Receivables
minus the Yield Supplement Overcollateralization Amount as of the Closing Date.

 

“Owner Trust Estate”
shall mean all right, title and interest of the Trust in and to the property and rights assigned to the Trust pursuant to Article II
of the Sale and Servicing Agreement, all funds on deposit from time to time in the Trust Accounts and all other property of the Trust
from time to time, including any rights of the Trust pursuant to the Sale and Servicing Agreement and the Administration Agreement.

 

“Owner Trustee”
shall mean Wilmington Trust, National Association, not in its individual capacity but solely as owner trustee under the Trust Agreement,
and any successor Owner Trustee thereunder.

 

“Paying Agent”
means the Indenture Trustee or any other Person that meets the eligibility standards for the Indenture Trustee specified in Section 6.11
of the Indenture and is authorized by the Issuing Entity to make payments to and distributions from the Collection Account and the Note
Distribution Account, including payments of principal of or interest on the Notes on behalf of the Issuing Entity.

 

    App. A-23

    

    

 

“Payment Date”
means, with respect to each Collection Period, the fifteenth day of the following month or, if such day is not a Business Day, the immediately
following Business Day. The initial Payment Date will be July 15, 2022.

 

“Payment Determination
Date” means, with respect to any Payment Date, one (1) Business Day immediately preceding such Payment Date.

 

“Percentage Interest”
shall mean, with respect to each Trust Certificate, the percentage beneficial interest in the Trust represented by such Trust Certificate.

 

“Person”
means any individual, corporation, limited liability company, estate, partnership, joint venture, association, joint stock company, trust
(including any beneficiary thereof), unincorporated organization or government or any agency or political subdivision thereof.

 

“Personally Identifiable
Information” means information in any format about an identifiable individual, including name, address, phone number, e-mail
address, account number(s), identification number(s), any other actual or assigned attribute associated with or identifiable to an individual
and any information that when used separately or in combination with other information could identify an individual.

 

“Physical Property”
has the meaning assigned to such term in the definition of “Delivery” above.

 

“Plan”
shall have the meaning assigned to such term in Section 3.04 of the Trust Agreement.

 

“Pool Balance”
means, as of any Payment Date, the aggregate Principal Balance of the Receivables as of the last day of the related Collection Period
less the Yield Supplement Overcollateralization Amount as of such day of the related Collection Period after giving effect to all payments
of principal received from obligors and Purchase Amounts to be remitted by the Servicer or the Depositor, as the case may be, and after
reduction to zero of the aggregate outstanding Principal Balance of any Receivable that became a Defaulted Receivable during the related
Collection Period.

 

“Predecessor Note”
means, with respect to any particular Note, every previous Note evidencing all or a portion of the same debt as that evidenced by such
particular Note; and, for the purpose of this definition, any Note authenticated and delivered under Section 2.06 of the Indenture
in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the mutilated, lost, destroyed or
stolen Note.

 

“Principal Balance”
of a Receivable, as of the close of business on the last day of a Collection Period, means the Amount Financed minus the sum of (i) the
portion of all payments made by or on behalf of the related Obligor on or prior to such day and allocable to principal using the Simple
Interest Method; (ii) refunds of any warranty or insurance financed on the original Contract; and (iii) any payment of the Purchase
Amount with respect to the Receivable allocable to principal.

 

    App. A-24

    

    

 

“Proceeding”
means any suit in equity, action at law or other judicial or administrative proceeding.

 

“Purchase Amount”
means, with respect to a Receivable, the amount, as of the close of business on the last day of the Collection Period as of which that
Receivable is purchased, required to prepay in full that Receivable under the terms thereof including accrued and unpaid interest to such
last day.

 

“Purchase Date”
has the meaning assigned to such term in Section 2.01 of the Receivables Purchase Agreement.

 

“Purchase Price”
has the meaning assigned to such term in Section 2.02 of the Receivables Purchase Agreement.

 

“Purchased Receivable”
means a Receivable purchased as of the close of business on the last day of a Collection Period by the Servicer pursuant to Section 4.02
or Section 4.07 of the Sale and Servicing Agreement or by World Omni pursuant to Section 3.02(b) of the Sale
and Servicing Agreement.

 

“Rating Agencies”
means, for so long as such organization is rating a Class of Notes, Fitch and S&P Global Ratings or, if none of such organizations
or successors is any longer in existence, a nationally recognized statistical rating organization or other comparable Person designated
by the Depositor, notice of which designation shall be given to the Indenture Trustee, the Owner Trustee and the Servicer.

 

“Rating Agency Condition”
means, with respect to any action, that each Rating Agency then rating a Class of Notes shall have received 5 Business Days’
(or such shorter period as shall be acceptable to each Rating Agency) prior written notice and shall not have notified the Depositor that
such action will result in a downgrade of the then current rating on any Notes.

 

“Receivable”
means any Contract listed on the Schedule of Receivables attached to an Assignment (which Schedule may be in the form of microfiche),
as such Schedule may be amended from time to time.

 

“Receivable Files”
means the documents specified in Section 3.03 of the Sale and Servicing Agreement.

 

“Receivables Purchase
Agreement” shall mean the Receivables Purchase Agreement, dated as of the Closing Date, between World Omni, as seller and World
Omni Auto Receivables LLC, as purchaser, as amended from time to time.

 

“Record Date”
means, with respect to a Payment Date or Redemption Date, and (i) any Book-Entry Notes, the close of business on the Business Day
immediately preceding such Payment Date or Redemption Date or (ii) any Definitive Notes, the Payment Date in the preceding month.

 

    App. A-25

    

    

 

“Recoveries”
means, with respect to any Defaulted Receivable and any Collection Period, monies collected in respect thereof, from whatever source,
net of any expenses of the Servicer in connection with such Receivable for which the Servicer has not been previously reimbursed and any
amounts required by law to be remitted to the Obligor.

 

“Redemption Date”
means, in the case of a redemption of the Notes pursuant to Section 10.01 of the Indenture, the Payment Date specified by
the Depositor or the Issuing Entity pursuant to Section 10.01 of the Indenture.

 

“Redemption Price”
means, in connection with a redemption of the Notes pursuant to Section 10.01 of the Indenture, with respect to any Note,
an amount equal to the unpaid principal amount of such Note plus accrued and unpaid interest thereon to but excluding the Redemption Date.

 

“Reference Time”
shall mean, if the Benchmark is not SOFR, the time determined by the Administrator after giving effect to the Benchmark Replacement Conforming
Changes.

 

“Registered Holder”
means the Person in whose name a Note is registered on the Note Register on the applicable Record Date.

 

“Regulation AB”
means Subpart 229.1100 – Asset Backed Securities (Regulation AB), 17 C.F.R. §§229.1100-229.1125, as such may be amended
from time to time and subject to such clarification and interpretation as have been provided by the Commission in the adopting releases
(Asset-Backed Securities, Securities Act Release No. 33-8518. 70 Fed. Reg. 1,506, 1,531 (January 7, 2005) and Asset-Backed Securities
Disclosure and Registration, Securities Act Release No. 33-9638, 79 Fed. Reg. 57, 184 (September 24, 2014)) or by the staff
of the Commission, or as may be provided by the Commission or its staff from time to time.

 

“Regulation RR or
Credit Risk Retention Rules” means risk retention regulations in 17 C.F.R. Part 246 as such regulation may be amended from
time to time and subject to such clarification and interpretation as have been provided by the Commission in an adopting release or by
the staff of the Commission, or as may be provided in writing by the Commission or its staff from time to time.

 

“Relevant Governmental
Body” shall mean the Federal Reserve Board and/or the FRBNY, or a committee officially endorsed or convened by the Federal Reserve
Board and/or the FRBNY or any successor thereto.

 

“Reporting Officer”
means, with respect to the Owner Trustee, any officer, employee or other person within the Corporate Trust Office of the Owner Trustee
having direct responsibility for the administration of the Trust Agreement.

 

“Reporting Subcontractor”
shall mean with respect to any Person, any Subcontractor for such Person that is “participating in the servicing function”
within the meaning of Item 1122 of Regulation AB. References to a Reporting Subcontractor shall refer only to the Subcontractor of such
Person and shall not refer to Subcontractors generally.

 

    App. A-26

    

    

 

“Repurchase Event”
shall have the meaning specified in Section 6.02 of the Receivables Purchase Agreement.

 

“Repurchase Request”
has the meaning specified in Section 3.02(c)(i) of the Sale and Servicing Agreement.

 

“Repurchase Rules and
Regulations” shall have the meaning specified in Section 6.14 of the Indenture.

 

“Requesting Party”
has the meaning specified in Section 3.02(c)(i) of the Sale and Servicing Agreement.

 

“Required
Rate” means, (i) with respect to the Cutoff Date and any Payment Date on or prior to the date on which the Outstanding
Amount of the Class A-2 Notes is paid in full, 8.50% per annum, and (ii) with respect to any Payment Date after the date on
which the Outstanding Amount of the Class A-2 Notes is paid in full, 8.25% per annum, or, in each case, such other percentage approved
by the Rating Agencies.

 

“Required Rating”
means a rating on commercial paper or other short term unsecured debt obligations of F1 or A by Fitch so long as Fitch is a Rating Agency
and A-1+ by S&P Global Ratings so long as S&P Global Ratings is a Rating Agency; and any requirement that deposits or debt obligations
have the “Required Rating” shall mean that such deposits or debt obligations have the foregoing required ratings from Fitch
and S&P Global Ratings.

 

“Required Reserve
Amount” means, with respect to any Payment Date, 0.50% (or such other higher percentage as may be determined by the Depositor,
in its sole discretion, on or prior to the Closing Date) of the difference of the Aggregate Starting Principal Balance less the Yield
Supplement Overcollateralization Amount as of the Cutoff Date of all Receivables transferred to the Trust.

 

“Reserve Account”
means the account designated as such, established and maintained pursuant to Section 5.01(a)(iii) and Section 5.07
of the Sale and Servicing Agreement.

 

“Reserve Account
Initial Deposit” means cash or Eligible Investments having a value of $4,915,858.40.

 

“Responsible Officer”
means, with respect to the Indenture Trustee, any officer within the Corporate Trust Office of the Indenture Trustee, including any vice
president, assistant vice president, assistant secretary, senior associate, associate, trust officer or any other officer, employee or
other person of the Indenture Trustee customarily performing functions similar to those performed by any of the above designated officers
and, with respect to each, having direct responsibility for the administration of the Indenture and also, with respect to a particular
matter, any other officer to whom such matter is referred because of such officer’s knowledge of and familiarity with the particular
subject.

 

“Retained Notes”
means the Class B Notes and the Class C Notes, until such time as such Notes are the subject of a Debt Opinion, which Debt Opinion
shall have been received by the Depositor and the Indenture Trustee.

 

    App. A-27

    

    

 

 

“Review”
means a review by the Asset Representations Reviewer as specified in the Asset Representations Review Agreement of all Delinquent Receivables
that have been Delinquent Receivables for 60 days or more as of the last day of the preceding Collection Period to determine whether such
Delinquent Receivables satisfy the representations and warranties set forth in Section 3.01(a) of the Sale and Servicing
Agreement, each as of the date as specified in Section 3.01(a) of the Sale and Servicing Agreement.

 

“Review Notice”
means the notice from the Indenture Trustee to the Asset Representations Reviewer, the Issuing Entity and the Servicer pursuant to Section 7.05(c) of
the Indenture notifying the Asset Representations Reviewer that the Noteholders have requested a Review.

 

“Review Receivable”
has the meaning designated in Section 1.02 of the Asset Representations Review Agreement.

 

“Review Report”
has the meaning designated in Section 3.04 of the Asset Representations Review Agreement.

 

“RPA Assignment”
has the meaning designated in Section 2.01 of the Receivables Purchase Agreement.

 

“Sale and Servicing
Agreement” means the Sale and Servicing Agreement, dated as of the Closing Date, among the Issuing Entity, the Depositor, World
Omni, as Servicer, and the Account Bank, as amended from time to time.

 

“Schedule of Receivables”
shall mean the schedule attached to the RPA Assignment or the SSA Assignment specifying the Receivables being transferred, as such Schedule
may be amended from time to time.

 

“Secretary of State”
shall mean the Secretary of State of the State of Delaware.

 

“Securities Act”
means the Securities Act of 1933, as amended.

 

“Securitization Transaction”
means any transaction effected after the Closing Date involving an issuance of notes pursuant to the Indenture, whether publicly offered
or privately placed, rated or unrated.

 

“Servicer”
means World Omni, in its capacity as servicer under the Sale and Servicing Agreement, and any Successor Servicer thereunder.

 

“Servicer Default”
means an event specified in Section 8.01 of the Sale and Servicing Agreement.

 

“Servicer’s
Certificate” means a certificate of the Servicer delivered pursuant to Section 4.09 of the Sale and Servicing Agreement.

 

“Servicing Criteria”
means the “servicing criteria” set forth in Item 1122(d) of Regulation AB, as such may be amended from time to time.

 

    App. A-28

    

    

 

“Servicing Fee”
means the fee payable to the Servicer for services rendered during each Collection Period, determined pursuant to Section 4.08
of the Sale and Servicing Agreement.

 

“Servicing Fee Rate”
means 1.00% per annum.

 

“Similar Law”
has the meaning assigned to such term in Section 3.04 of the Trust Agreement.

 

“Simple Interest
Method” means the method of allocating a fixed level payment to principal and interest, pursuant to which the portion of such
payment that is allocated to interest is equal to the product of the fixed rate of interest multiplied by the unpaid principal balance
multiplied by the period of time elapsed since the preceding payment of interest was made and the remainder of such payment is allocable
to principal.

 

“Simple Interest
Receivable” means any Receivable under which the portion of a payment allocable to interest and the portion allocable to principal
is determined in accordance with the Simple Interest Method.

 

“SOFR”
means, with respect to any day, the secured overnight financing rate published for such day by the Federal Reserve Bank of New York, as
the administrator of the benchmark, (or a successor administrator) on the Federal Reserve Bank of New York’s website.

 

“SOFR Adjustment
Conforming Changes” shall mean, with respect to any SOFR Rate, any technical, administrative or operational changes (including
changes to the Interest Accrual Period, timing and frequency of determining rates and making payments of interest, rounding of amounts
or tenors, and other administrative matters) that the Administrator (on behalf of the Issuing Entity) decides, from time to time, may
be appropriate to adjust such SOFR Rate in a manner substantially consistent with or conforming to market practice (or, if the Administrator
(on behalf of the Issuing Entity) decides that adoption of any portion of such market practice is not administratively feasible or if
the Administrator (on behalf of the Issuing Entity) determines that no market practice exists, in such other manner as the Administrator
(on behalf of the Issuing Entity) determines is reasonably necessary).

 

“SOFR Adjustment
Date” shall mean the second U.S. Government Securities Business Day before the first day of such Interest Accrual Period.

 

“SOFR Determination
Time” means 3:00 p.m. (New York time) on the U.S. Government Securities Business Day, at which time Compounded SOFR is
published on the FRBNY’s Website.

 

“SOFR Rate”
shall mean the rate that will be determined by the Administrator for each Interest Accrual Period on the SOFR Adjustment Date as of the
SOFR Determination Time (or, if the Benchmark is not SOFR, the Reference Time) and, except as provided in the Indenture following a determination
by the Administrator (on behalf of the Issuing Entity) that a Benchmark Transition Event and its related Benchmark Replacement Date have
occurred, shall mean, with respect to the Class A-2b Notes as of any SOFR Adjustment Date, a rate equal to Compounded SOFR; provided, that,
the Administrator (on behalf of the Issuing Entity) will have the right, in its sole discretion, to make applicable SOFR Adjustment Conforming
Changes.

 

    App. A-29

    

    

 

“Sponsor”
means World Omni Financial Corp., a Florida corporation, or its successors.

 

“SSA Assignment”
has the meaning assigned in Section 2.01 of the Sale and Servicing Agreement.

 

“S&P Global Ratings”
means S&P Global Ratings, a division of S&P Global, or its successor.

 

“Starting Principal
Balance” means with respect to a Receivable, the aggregate principal amount advanced under such Receivable toward the purchase
price of the Financed Vehicle or Financed Vehicles, including insurance premiums, service and warranty contracts, federal excise and sales
taxes and other items customarily financed as part of a Receivable and related costs, less payments received from the Obligor prior to
the Cutoff Date with respect to such Receivable allocable to principal.

 

“State”
means any one of the 50 States of the United States of America or the District of Columbia.

 

“Statutory Trust
Act” shall mean Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code § 3801 et
seq., as the same may be amended from time to time.

 

“Subcontractor”
shall mean any vendor, subcontractor or other Person that is not responsible for the overall servicing (as “servicing” is
commonly understood by participants in the mortgage-backed securities market) of Receivables but performs one or more discrete functions
identified in Item 1122(d) of Regulation AB with respect to the Receivables under the direction or authority of the Servicer or the
Indenture Trustee.

 

“Successor Servicer”
has the meaning specified in Section 3.07(e) of the Indenture.

 

“Supplemental Servicing
Fees” means late fees, any prepayment charges and other administrative fees or similar charges allowed by applicable law with
respect to the Receivables collected from Obligors during the related Collection Period.

 

“Test Fail”
has the meaning assigned in Section 3.03(a) of the Asset Representations Review Agreement.

 

“Transferor Certificate”
has the meaning assigned in Section 2.04(a) of the Indenture.

 

“Treasury Regulations”
shall mean regulations, including proposed or temporary Regulations, promulgated under the Code. References herein to specific provisions
of proposed or temporary regulations shall include analogous provisions of final Treasury Regulations or other successor Treasury Regulations.

 

“Trust”
means World Omni Auto Receivables Trust 2022-B, a Delaware statutory trust.

 

    App. A-30

    

    

 

“Trust Account Property”
means the Trust Accounts, all amounts and investments held from time to time in any Trust Account (whether in the form of deposit accounts,
Physical Property, book-entry securities, uncertificated securities or otherwise), including the Reserve Account, and all proceeds of
the foregoing.

 

“Trust Accounts”
has the meaning assigned thereto in Section 5.01 of the Sale and Servicing Agreement.

 

“Trust Agreement”
means the Trust Agreement, dated as of the Closing Date, between the Depositor and the Owner Trustee, as the same may be amended and supplemented
from time to time; such agreement being the amended and restated Trust Agreement contemplated by the Initial Trust Agreement.

 

“Trust Certificate”
shall mean a certificate evidencing the beneficial interest of a Person in the trust established by the Trust Agreement and substantially
in the form attached as Exhibit A to such Trust Agreement.

 

“Trust Estate”
means all money, instruments, rights and other property that are subject or intended to be subject to the lien and security interest of
the Indenture for the benefit of the Noteholders (including, without limitation, all property and interests Granted to the Indenture Trustee),
including all proceeds thereof.

 

“Trust Indenture
Act” or “TIA” means the Trust Indenture Act of 1939 as in force as of the Closing Date, unless otherwise
specifically provided.

 

“Trust Officer”
means, with respect to the Indenture Trustee, any Officer within the Corporate Trust Office of the Indenture Trustee, including any vice
president, assistant vice president, assistant secretary, senior associate, associate, trust officer or any other officer of the Indenture
Trustee customarily performing functions similar to those performed by any of the above designated officers and also, with respect to
a particular matter, any other officer to whom such matter is referred because of such officer’s knowledge of and familiarity with
the particular subject and, in each case, having direct responsibility for the administration of the Indenture and any other Basic Document
to which the Indenture Trustee is a party and, with respect to the Owner Trustee, any officer within the Corporate Trust Office of the
Owner Trustee with direct responsibility for the administration of the Trust Agreement and the Basic Documents on behalf of the Owner
Trustee.

 

“Trustee Bank”
means Wilmington Trust, National Association, in its individual capacity, each bank appointed as successor Owner Trustee under the Trust
Agreement in its individual capacity and each bank appointed as co-trustee under and to the extent provided in the Trust Agreement in
its individual capacity.

 

“UCC” means,
unless the context otherwise requires, the Uniform Commercial Code, as in effect in the relevant jurisdiction, as amended from time to
time.

 

“Unadjusted Benchmark
Replacement” shall mean the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

 

    App. A-31

    

    

 

“USA Patriot Act”
means, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001,
Title III of Pub. L. 107-56 (signed into law October 26, 2001) and its implementing regulations.

 

“U.S. Government
Securities Business Day” shall mean any day except for a Saturday, a Sunday or a day on which the Securities Industry and Financial
Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in
U.S. government securities.

 

“U.S. Person”
means:

 

(a)            a
citizen or resident of the United States for U.S. federal income tax purposes;

 

(b)            an
entity treated as a corporation or partnership for U.S. federal income tax purposes, except to the extent provided in applicable U.S.
Department of Treasury regulations, created or organized in or under the laws of the United States, any state or the District of Columbia;

 

(c)            an
estate the income of which is subject to U.S. federal income taxation regardless of its source;

 

(d)            an
entity treated as a trust for U.S. federal income tax purposes if a court within the United States is able to exercise primary supervision
over the administration of such trust, and one or more such U.S. Persons have the authority to control all substantial decisions of such
trust; or

 

(e)            to
the extent provided in applicable U.S. Department of Treasury regulations, certain trusts in existence on August 20, 1996, which
are eligible to elect, and have so elected, to be treated as U.S. Persons.

 

“WOAR”
means World Omni Auto Receivables LLC, a Delaware limited liability company, or its successors.

 

“World Omni”
means World Omni Financial Corp., a Florida corporation, or its successors.

 

“Yield Supplement
Overcollateralization Amount” means, with respect to any Collection Period and the related Payment Date, or with respect to
the Cutoff Date, the aggregate amount by which the Principal Balance as of the last day of such Collection Period or the Cutoff Date of
each of the related Receivables with a Contract Rate of less than the Required Rate, other than a Defaulted Receivable, exceeds the present
value, calculated by using a discount rate equal to the Required Rate, of each scheduled payment of each such Receivables assuming such
scheduled payment is made on the last day of each month and each month has 30 days.

 

    App. A-32

    

    

 

APPENDIX A

 

PART II - RULES OF CONSTRUCTION

 

(A)            Accounting
Terms. As used in this Appendix or the Basic Documents, accounting terms which are not defined, and accounting terms partly defined,
herein or therein shall have the respective meanings given to them under generally accepted accounting principles. To the extent that
the definitions of accounting terms in this Appendix or the Basic Documents are inconsistent with the meanings of such terms under generally
accepted accounting principles, the definitions contained in this Appendix or the Basic Documents will control.

 

(B)            “Hereof,”
etc.: The words “hereof,” “herein” and “hereunder” and words of similar import when used in this
Appendix or any Basic Document will refer to this Appendix or such Basic Document as a whole and not to any particular provision of this
Appendix or such Basic Document; and Section, Schedule and Exhibit references contained in this Appendix or any Basic Document are
references to Sections, Schedules and Exhibits in or to this Appendix or such Basic Document unless otherwise specified. The word “or”
is not exclusive.

 

(C)            Use
of “related” as used in this Appendix and the Basic Documents, with respect to any Payment Date, the “related Payment
Determination Date,” the “related Collection Period,” and the “related Record Date” will mean the Payment
Determination Date, the Collection Period, and the Record Date, respectively, immediately preceding such Payment Date. With respect to
any Purchase Date, the “related Cutoff Date” will mean the Cutoff Date established for the closing of the purchase of Receivables
on that Purchase Date.

 

(D)            Use
of “outstanding” etc. Whenever the term “outstanding Notes,” “outstanding principal amount” and
words of similar import are used in this Appendix or any Basic Document for purposes of determining whether the Noteholders of the requisite
outstanding principal amount of the Notes have given any request, demand, authorization, direction, notice, consent or waiver hereunder
or under any Basic Document, Notes owned by the Issuing Entity, any other obligor upon the Notes, the Depositor or any Affiliate of any
of the foregoing Persons (it being understood that the Owner Trustee in its individual capacity shall not be considered an Affiliate of
any of the foregoing) shall be disregarded and deemed not to be outstanding, except that, in determining whether the Indenture Trustee
shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Notes that the
Indenture Trustee knows to be so owned shall be so disregarded. Notes so owned that have been pledged in good faith may be regarded as
 “outstanding” if the pledgee establishes to the satisfaction of the Indenture Trustee the pledgor’s right so to act
with respect to such Notes and that the pledgee is not the Issuing Entity, any other obligor upon the Notes, the Depositor or any Affiliate
of any of the foregoing Persons.

 

(E)            Number
and Gender. Each defined term used in this Appendix or the Basic Documents has a comparable meaning when used in its plural or singular
form. Each gender-specific term used in this Appendix or the Basic Documents has a comparable meaning whether used in a masculine, feminine
or gender-neutral form.

 

    App. A-33

    

    

 

(F)            Including.
Whenever the term “including” (whether or not that term is followed by the phrase “but not limited to” or “without
limitation” or words of similar effect) is used in this Appendix or the Basic Documents in connection with a listing of items within
a particular classification, that listing will be interpreted to be illustrative only and will not be interpreted as a limitation on,
or exclusive listing of, the items within that classification.

 

(G)            UCC
References. References to sections or provisions of Article 9 of the UCC in any of the Basic Documents shall be deemed to be
automatically updated to reflect the successor, replacement or functionally equivalent sections or provisions of Revised Article 9,
Secured Transactions (2000) at any time in any jurisdiction which has made such revised article effective.

 

    App. A-34

    

    

 

APPENDIX B

 

Additional Representations and Warranties

 

		1.	This Agreement, the Receivables Purchase Agreement and the Indenture create a valid and continuing security
interest (as defined in the applicable UCC) in the Receivables in favor of the Indenture Trustee, which security interest is prior to
all other Liens, and is enforceable as such as against creditors of and purchasers from World Omni, the Depositor and the Trust, respectively.

 

		2.	World Omni has taken all steps necessary to perfect its security interest against each Obligor in the
property securing the Receivables.

 

		3.	The Receivables constitute “tangible chattel paper” or “electronic chattel paper”
within the meaning of the applicable UCC.

 

		4.	World Omni owns and has good and marketable title to the Receivables and will transfer the Receivables
free and clear of any Lien, claim or encumbrance of any Person.

 

		5.	World Omni has caused or will have caused, within ten days, the filing of all appropriate financing statements
in the proper filing office in the appropriate jurisdictions under applicable law in order to perfect the security interest in the Receivables
granted to the Depositor under the Receivables Purchase Agreement, to the Issuing Entity hereunder and to the Indenture Trustee under
the Indenture.

 

		6.	With respect to Receivables that constitute tangible chattel paper, all original executed copies of each
Contract that constitute or evidence the Receivable have been delivered to the Servicer for the benefit of the Depositor, the Issuing
Entity and the Indenture Trustee.

 

		7.	With respect to Receivables that constitute electronic chattel paper, only one authoritative copy of each
Contract that constitutes or evidences the Receivable exists. Each such authoritative copy (a) is unique, identifiable, and unalterable
(other than with the participation of the Depositor, the Issuing Entity and the Indenture Trustee pursuant to the Basic Documents in the
case of an addition or change of an identified assignee and other than a revision that is readily identifiable as an authorized or unauthorized
revision), and (b) has been communicated to and is maintained by the Servicer or a third-party provider acting on behalf of the Servicer.
The authoritative copy of the related Contract identifies only World Omni Financial Corp. as the assignee thereof. Each copy of the authoritative
copy of the related Contract and any copy of a copy are readily identifiable as copies that are not the authoritative copy. Each Receivable
has been established in a manner such that (a) all copies or revisions that add or change an identified assignee of the authoritative
copy of each Contract that constitutes or evidences the Receivable must be made with the participation of the Depositor, the Issuing Entity
and the Indenture Trustee pursuant to the Basic Documents, and (b) all revisions of the authoritative copy of each contract that
constitute or evidence the Receivable must be readily identifiable as an authorized or unauthorized revision. The Servicer is maintaining
the authoritative copy of each Contract that constitutes or evidences the Receivables solely on behalf and for the benefit of the Depositor,
the Issuing Entity and the Indenture Trustee under the Basic Documents.

 

    App. B-1

    

    

 

		8.	Other than (a) any security interests which have been released prior to or in connection with the
execution of the Basic Documents and (b) the security interests granted to the Depositor, the Issuing Entity, and the Indenture Trustee
pursuant to the Basic Documents, none of World Omni, the Depositor or the Issuing Entity has pledged, assigned, sold, granted a security
interest in, or otherwise conveyed any of the Receivables. None of World Omni, the Depositor or the Issuing Entity has authorized the
filing of, and is not aware of, any financing statements against World Omni, the Depositor or the Issuing Entity that include a description
of collateral covering the Receivables other than any financing statement relating to the security interests granted to the Depositor,
the Issuing Entity, and the Indenture Trustee under the Basic Documents or a financing statement that has been terminated with respect
to the Receivables. None of World Omni, the Depositor or the Issuing Entity is aware of any judgment or tax lien filings against World
Omni, the Depositor or the Issuing Entity.

 

		9.	None of the Seller, the Depositor or the Issuing Entity or any vaulting agent thereof has communicated
an authoritative copy of any Contract that constitutes or evidences the Receivables to any Person other than the Servicer.

 

		10.	World Omni, as Servicer (in its capacity as custodian), has in its possession all original copies of the
Contracts that constitute or evidence the Receivables. The Receivables Files that constitute or evidence the Receivables do not have any
marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than the Depositor, the
Issuing Entity or the Indenture Trustee. All financing statements filed or to be filed against World Omni, the Depositor or the Issuing
Entity in favor of the Depositor, the Issuing Entity or the Indenture Trustee, respectively, in connection herewith describing the Receivables
contain a statement to the following effect: “A purchase of or security interest in any collateral described in this financing statement
will violate the rights of the Noteholders.”

 

    App. B-2

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