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exhibit101creditagreeb8b

                                                       EXHIBIT 10.1                                           EXECUTION VERSION                                                                               CREDIT AGREEMENT                    dated as of                   June 21, 2019                      among   HORACE MANN EDUCATORS CORPORATION              The Lenders Party Hereto                       and        PNC BANK, NATIONAL ASSOCIATION,               as Administrative Agent           ___________________________           PNC CAPITAL MARKETS LLC,      as Sole Bookrunner and Joint Lead Arranger                                 JPMORGAN CHASE BANK, N.A.,              as Joint Lead Arranger                         JPMORGAN CHASE BANK, N.A.,               as Syndication Agent                               THE NORTHERN TRUST COMPANY,               as Documentation Agent                                                                  

 

                            TABLE OF CONTENTS                                                                                                                   Page    ARTICLE I     Definitions........................................................................................................ 1        SECTION 1.01.    Defined Terms ............................................................................... 1        SECTION 1.02.    Classification of Loans and Borrowings ...................................... 21        SECTION 1.03.    Terms Generally........................................................................... 21        SECTION 1.04.    Accounting Terms; GAAP ........................................................... 21        SECTION 1.05.    Letter of Credit Amounts ............................................................. 22        SECTION 1.06.    Divisions ...................................................................................... 22  ARTICLE II    The Credits ..................................................................................................... 22        SECTION 2.01.    Commitments ............................................................................... 22        SECTION 2.02.    Loans and Borrowings ................................................................. 22        SECTION 2.03.    Requests for Borrowings.............................................................. 23        SECTION 2.04.    Funding of Borrowings ................................................................ 24        SECTION 2.05.    Interest Elections .......................................................................... 24        SECTION 2.06.    Termination and Reduction of Commitments.............................. 25        SECTION 2.07.    Repayment of Loans; Evidence of Debt ...................................... 26        SECTION 2.08.    Prepayment of Loans ................................................................... 26        SECTION 2.09.    Fees .............................................................................................. 27        SECTION 2.10.    Interest.......................................................................................... 27        SECTION 2.11.    Alternate Rate of Interest ............................................................. 28        SECTION 2.12.    Increased Costs ............................................................................ 30        SECTION 2.13.    Break Funding Payments ............................................................. 31        SECTION 2.14.    Taxes ............................................................................................ 31        SECTION 2.15.    Payments Generally; Pro Rata Treatment; Sharing of Set-                         offs ............................................................................................... 36        SECTION 2.16.    Mitigation Obligations; Replacement of Lenders ........................ 37        SECTION 2.17.    Defaulting Lenders....................................................................... 38        SECTION 2.18.    Increase of Commitments ............................................................ 40        SECTION 2.19.    Letters of Credit ........................................................................... 41  ARTICLE III   Representations and Warranties ..................................................................... 48        SECTION 3.01.    Due Organization, Authorization, Etc ......................................... 48               -i-  

 

                            TABLE OF CONTENTS                                    (continued)                                                                          Page          SECTION 3.02.    Statutory Financial Statements .................................................... 49        SECTION 3.03.    GAAP Financial Statements ........................................................ 50        SECTION 3.04.    Litigation and Contingent Liabilities ........................................... 51        SECTION 3.05.    Investment Company Act ............................................................ 51        SECTION 3.06.    Regulations T, U and X ............................................................... 51        SECTION 3.07.    Proceeds ....................................................................................... 51        SECTION 3.08.    Insurance ...................................................................................... 51        SECTION 3.09.    Accuracy of Information .............................................................. 51        SECTION 3.10.    Subsidiaries .................................................................................. 52        SECTION 3.11.    Insurance Licenses ....................................................................... 52        SECTION 3.12.    Taxes ............................................................................................ 52        SECTION 3.13.    Compliance with Laws ................................................................ 52        SECTION 3.14.    No Default .................................................................................... 52        SECTION 3.15.    Ownership of Property; Liens ...................................................... 53        SECTION 3.16.    Anti-Terrorism Laws and Sanctions ............................................ 53        SECTION 3.17.    EEA Financial Institutions ........................................................... 53        SECTION 3.18.    Certificate of Beneficial Ownership ............................................ 53        SECTION 3.19.    Plan Assets; Prohibited Transactions ........................................... 53  ARTICLE IV    Conditions ...................................................................................................... 53        SECTION 4.01.    Effective Date .............................................................................. 53        SECTION 4.02.    Each Credit Event ........................................................................ 55  ARTICLE V     Affirmative Covenants ................................................................................... 55        SECTION 5.01.    Reports, Certificates and Other Information ................................ 55        SECTION 5.02.    Corporate Existence; Foreign Qualification ................................ 59        SECTION 5.03.    Books, Records and Inspections .................................................. 59        SECTION 5.04.    Insurance ...................................................................................... 59        SECTION 5.05.    Taxes and Liabilities .................................................................... 59        SECTION 5.06.    Compliance with Laws ................................................................ 60        SECTION 5.07.    Conduct of Business .................................................................... 60        SECTION 5.08.    Maintenance of Properties ........................................................... 60               -ii-  

 

                            TABLE OF CONTENTS                                    (continued)                                                                          Page          SECTION 5.09.    Use of Proceeds............................................................................ 60        SECTION 5.10.    Accuracy Of Information ............................................................. 60        SECTION 5.11.    Anti-Terrorism Laws; International Trade Law Compliance ...... 60  ARTICLE VI    Negative Covenants ....................................................................................... 61        SECTION 6.01.    Consolidated Debt to Total Capitalization ................................... 61        SECTION 6.02.    Net Worth..................................................................................... 61        SECTION 6.03.    Minimum Risk Based Capital ...................................................... 61        SECTION 6.04.    Mergers, Consolidations and Sales .............................................. 61        SECTION 6.05.    Regulations T, U and X ............................................................... 61        SECTION 6.06.    Restrictive Agreements ................................................................ 62        SECTION 6.07.    Transactions with Affiliates ......................................................... 62        SECTION 6.08.    Liens ............................................................................................. 62        SECTION 6.09.    Subsidiary Debt ............................................................................ 63        SECTION 6.10.    Securities Lending ....................................................................... 63  ARTICLE VII   Events of Default ........................................................................................... 63  ARTICLE VIII  The Administrative Agent.............................................................................. 67  ARTICLE IX    Miscellaneous ................................................................................................ 69        SECTION 9.01.    Notices; Electronic Communication ............................................ 69        SECTION 9.02.    Waivers; Amendments ................................................................. 70        SECTION 9.03.    Expenses; Indemnity; Damage Waiver ........................................ 71        SECTION 9.04.    Successors and Assigns................................................................ 72        SECTION 9.05.    Survival ........................................................................................ 76        SECTION 9.06.    Counterparts; Integration; Effectiveness ...................................... 76        SECTION 9.07.    Severability .................................................................................. 77        SECTION 9.08.    Right of Setoff.............................................................................. 77        SECTION 9.09.    Governing Law; Jurisdiction; Consent to Service of Process ...... 77        SECTION 9.10.    WAIVER OF JURY TRIAL ........................................................ 78        SECTION 9.11.    Headings ...................................................................................... 78        SECTION 9.12.    Confidentiality ............................................................................. 78        SECTION 9.13.    Interest Rate Limitation ............................................................... 79               -iii-  

 

                      TABLE OF CONTENTS                              (continued)                                                                    Page                 SECTION 9.14.    USA PATRIOT Act ..................................................................... 80  SECTION 9.15.    No Advisory or Fiduciary Responsibility .................................... 80  SECTION 9.16.    Acknowledgment and Consent to Bail-In of EEA Financial                    Institutions.................................................................................... 80  SECTION 9.17.    Acknowledgement Regarding Any Supported QFCs .................. 81  Section 9.18     Certain ERISA Matters ................................................................ 82         -iv-  

 

   SCHEDULES:   Schedule 1.1(B)  Notice Information  Schedule 2.01    Commitments  Schedule 3.01    Jurisdictions  Schedule 3.02(a)   SAP Exceptions  Schedule 3.04    Litigation  Schedule 3.10    Subsidiaries  Schedule 3.11    Insurance Licenses  Schedule 6.06    Restrictive Agreements      EXHIBITS:   Exhibit A        Form of Assignment and Assumption  Exhibit B        Compliance Certificate  Exhibit C-1      U.S. Tax Certificate (For Non-U.S. Lenders that are not Partnerships for                    U.S. Federal Income Tax Purposes)  Exhibit C-2      U.S. Tax Certificate (For Non-U.S. Lenders that are Partnerships for U.S.                    Federal Income Tax Purposes)  Exhibit C-3      U.S. Tax Certificate (For Non-U.S. Participants that are not Partnerships                    for U.S. Federal Income Tax Purposes)  Exhibit C-4      U.S. Tax Certificate (For Non-U.S. Participants  that are Partnerships for                    U.S. Federal Income Tax Purposes)        

 

                               CREDIT AGREEMENT               CREDIT  AGREEMENT,  dated  as  of  June  21,  2019,  among  HORACE  MANN  EDUCATORS  CORPORATION,  a  Delaware  corporation  (the  “Borrower”),  the  LENDERS  party  hereto,  and  PNC  BANK,  NATIONAL  ASSOCIATION,  as  Administrative  Agent  (the  “Administrative Agent”).         The  Borrower  has  requested  the  Lenders  to  provide  a  revolving  credit  facility  to  the  Borrower in an aggregate principal amount not to exceed $225,000,000.  In consideration of their  mutual covenants and agreements hereinafter set forth and intending to be legally bound hereby,  the parties hereto covenant and agree as follows.                                     ARTICLE I                                                                           DEFINITIONS         SECTION 1.01.     Defined  Terms.   As  used  in  this  Agreement,  the  following  terms  have the meanings specified below:               “ABR”, 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 Alternate Base Rate.               “Act” has the meaning assigned to such term in Section 9.14.               “Administrative Agent” has the meaning assigned to such term in the Preamble.               “Administrative  Questionnaire”  means  an  Administrative  Questionnaire  in  a  form supplied by the Administrative Agent.               “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 Person specified.               “Agreement”  means  this  Credit  Agreement  as  from  time  to  time  amended,  modified, supplemented, restated, refunded or renewed and in effect.               “Alternate  Base  Rate”  means,  for  any  day,  a  fluctuating  per  annum  rate  of  interest equal to the highest of (i) the Overnight Bank Funding Rate, plus 0.5%, (ii) the Prime  Rate, and (iii) the Daily LIBOR Rate, plus 1.0%.  Any change in the Alternate Base Rate (or any  component thereof) shall take effect at the opening of business on the day such change occurs.  If  the  Alternate  Base Rate  is  being  used  as  an  alternate  rate of interest  pursuant  to  Section  2.11  hereof, then the Alternate Base Rate shall be the greater of clause (a) and (b) above and shall be  determined without reference to clause (c) above.  For the avoidance of doubt, if the Alternate  Base  Rate  shall  be  less  than  zero,  such  rate  shall  be  deemed  to  be  zero  for  purposes  of  this  Agreement.  

 

               “Annual  Statement”  means  the  annual  statutory  financial  statement  of  any  Insurance Subsidiary required to be filed with the insurance commissioner (or similar authority)  of  its  jurisdiction  of  incorporation,  which  statement  shall  be  in  the  form  required  by  such  Insurance Subsidiary’s jurisdiction of incorporation or, if no specific form is so required, in the  form  of  financial  statements  permitted  by  such  insurance  commissioner  (or  such  similar  authority) to be used for filing annual statutory financial statements and shall contain the type of  information permitted by such insurance commissioner (or such similar authority) to be disclosed  therein, together with all exhibits or schedules filed therewith.               “Anti-Terrorism Laws” shall mean any Laws relating to terrorism, trade sanctions  programs  and  embargoes,  import/export  licensing,  money  laundering  or  bribery,  and  any  regulation,  order,  or  directive  promulgated,  issued  or  enforced  pursuant  to  such  Laws,  all  as  amended, supplemented or replaced from time to time, including those administered or enforced  by  OFAC,  the  U.S.  Department  of  State,  the  United  Nations  Security  Council,  the  European  Union, Her Majesty's Treasury or other relevant sanctions authority.               “Applicable Percentage” means, with respect to any Lender, the percentage of the  total  Commitments  represented  by  such  Lender’s  Commitment.   If  the  Commitments  have  terminated  or  expired,  the  Applicable  Percentages  shall  be  determined  based  upon  the  Commitments most recently in effect, giving effect to any assignments.               “Applicable  Rate”  means,  for  any  day,  with  respect  to  any  ABR  Loan  or  Eurodollar 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  “ABR  Spread”,  “Eurodollar  Spread”  or  “Commitment  Fee  Rate”,  as  the case may  be,  based  upon  the  ratings  by  S&P  and  Moody’s, respectively, applicable on such date to the Index Debt:           Index Debt Ratings ABR          Eurodollar    Commitment Fee          (S&P/Moody’s):     Spread:      Spread:       Rate:               Category 1         0%          0.875%         0.10%             A-/A3 or better                                  Category 2        0.125%       1.000%         0.125%               BBB+/Baa1                                   Category 3        0.250%       1.150%         0.15%               BBB/Baa2                                   Category 4        0.375%       1.250%         0.175%               BBB-/Baa3                                  Category 5        0.50%        1.375%         0.25%           less than BBB-/Baa3               For  purposes  of  the  foregoing,  (i)  if  either  Moody’s  or  S&P  shall  not  have  in  effect a rating for the Index Debt (other than by reason of the circumstances referred to in the last              2    

 

   sentence of this definition), then such rating agency shall be deemed to have established a rating  in Category 5; (ii) if the ratings established or deemed to have been established by Moody’s and  S&P  for  the  Index  Debt  shall  differ  by  one  rating,  the  Applicable  Rate  shall  be  based  on  the  higher of the two credit ratings; (iii) if the ratings established or deemed to have been established  by Moody’s and S&P for the Index Debt shall differ by two or more ratings, the Applicable Rate  shall be one rating level below the higher of such credit ratings; and (iv) if the ratings established  or deemed to have been established by Moody’s and S&P for the Index Debt shall be changed  (other than as a result of a change in the rating system of Moody’s or S&P), such change shall be  effective  as  of  the  date  on  which  it  is  first  announced  by  the  applicable  rating  agency,  irrespective  of  when  notice  of  such  change  shall  have  been  furnished  by  the  Borrower  to  the  Agent and the Lenders  pursuant  to Section 5.01 or otherwise.  Each change in the Applicable  Rate shall apply during the period commencing on the effective date of such change and ending  on  the  date  immediately  preceding  the  effective  date  of  the  next  such  change.   If  the  rating  system of Moody’s or S&P shall change, or if either such rating agency shall cease to be in the  business  of  rating  corporate  debt  obligations,  the Borrower  and  the  Lenders  shall  negotiate  in  good faith to amend this definition to reflect such changed rating system or the unavailability of  ratings  from  such  rating  agency  and,  pending  the  effectiveness  of  any  such  amendment,  the  Applicable Rate shall be determined by reference to the rating most recently in effect from such  rating agency prior to such change or cessation.               “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.               “Arrangers” means PNC Capital Markets LLC and JPMorgan Chase Bank, N.A.  in their capacities as joint lead arrangers.               “Assignment and Assumption” means an assignment and assumption 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 approved by the Administrative Agent.               “Attributable Debt” means, on any date, (a) in respect of any Capitalized Lease of  any Person, the capitalized amount thereof that would appear on a balance sheet of such Person  prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease  Obligation, the capitalized amount of the remaining lease payments under the relevant lease that  would  appear  on  a  balance  sheet  of  such  Person  prepared  as  of  such  date  in  accordance  with  GAAP if such lease were accounted for as a capital lease.                “Augmenting Lender” has the meaning assigned to such term in Section 2.18.               “Availability Period” means the period from and including the Effective Date to  but excluding the earlier of the Maturity Date and the date of termination of the Commitments.               3  

 

               “Bail-In Action” means the exercise of any Write-Down and Conversion Powers  by  the  applicable  EEA  Resolution  Authority  in  respect  of  any  liability  of  an  EEA  Financial  Institution.               “Bail-In  Legislation”  means,  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 for such EEA Member Country from time to time  which is described in the EU Bail-In Legislation Schedule.                “Bankruptcy Event” means, with respect to any Person, such Person becomes the  subject  of  a  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, 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,  provided, further,  that  such  ownership  interest  does  not  result  in  or  provide  such  Person  with  immunity  from  the  jurisdiction  of  courts  within  the  United  States  or  from  the  enforcement  of  judgments  or  writs  of  attachment  on  its  assets  or  permit  such  Person  (or  such  Governmental  Authority  or  instrumentality)  to  reject,  repudiate,  disavow  or  disaffirm  any  contracts  or  agreements made by such Person.               “Beneficial Owner” means, with respect to any U.S. federal withholding Tax, the  beneficial owner, for U.S. federal income tax purposes, to whom such Tax relates.               “Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.               “Benefit  Plan”  means  any  of  (a)  an  “employee  benefit  plan”  (as  defined  in  ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in and subject to Section 4975  of  the  Code  or  (c)  any  Person  whose  assets  include  (for  purposes  of  ERISA  Section  3(42) or  otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such  “employee benefit plan” or “plan”.               “BHC  Act  Affiliate”  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.               “Board”  means  the  Board  of  Governors  of  the  Federal  Reserve  System  of  the  United States of America.               “Borrower” has the meaning assigned to such term in the Preamble.               “Borrowing” means  Loans of the same Type, made,  converted or continued on  the  same  date  and,  in  the  case  of  Eurodollar  Loans,  as  to  which  a single  Interest  Period  is  in  effect.               “Borrowing  Request”  means  a  request  by  the  Borrower  for  a  Borrowing  in  accordance with Section 2.03.              4  

 

               “Business  Day”  means  any  day  that  is  not  a  Saturday,  Sunday  or  other  day  on  which commercial banks in Pittsburgh, Pennsylvania or New York, New York are authorized or  required  by  law  to  remain  closed; provided  that,  when  used  in  connection  with  a  Eurodollar  Loan,  the  term  “Business  Day”  shall  also  exclude  any  day  on  which  banks  are  not  open  for  dealings in dollar deposits in the London interbank market.               “Capitalized Lease” shall mean, as to any Person, any lease which is or should be  capitalized  on  the  balance  sheet  in  accordance  with  GAAP  (subject  to  Section  1.04),  together  with any other lease which is in substance a financing lease, including, without limitation, any  lease under which (a) such Person has or will have an option to purchase the property subject  thereto at a nominal amount or an amount less than a reasonable estimate of the fair market value  of such property as of the date the lease is entered into or (b) the term of the lease approximates  or exceeds the expected useful life of the property leased thereunder.               “Certificate of Beneficial Ownership” means a certification regarding beneficial  ownership as required by the Beneficial Ownership Regulation.                “Change  in  Control”  shall  be  deemed  to  have  occurred  if  (a) there  shall  be  consummated (i) any consolidation or merger of the Borrower in which the Borrower is not the  continuing  or  surviving  corporation,  or  pursuant  to  which  shares  of  the  Borrower’s  common  stock  would  be  converted  into  cash,  securities  or  other  property,  other  than  a  merger  of  the  Borrower in which no Borrower shareholder’s ownership percentage in the surviving corporation  immediately  after  the  merger  is  less  than  such  shareholder’s  ownership  percentage  in  the  Borrower immediately prior to such merger by ten percent (10%) or more, or (ii) any sale, lease,  exchange  or  other  transfer  (in  one  transaction  or  a  series  of  related  transactions)  of  all,  or  substantially all, of the assets of the Borrower; (b) the shareholders of the Borrower approve any  plan or proposal for the liquidation or dissolution of the Borrower; (c) any “person” or “group”  as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the  “Exchange  Act”),  is  or  becomes,  directly  or  indirectly,  the  “beneficial  owner,”  as  defined  in  Rule 13d-3 under the Exchange Act, of securities of the Borrower that represent 51% or more of  the combined voting power of the Borrower’s then outstanding securities; or (d) a majority of the  members of the Borrower’s Board of Directors are persons who are then serving on the Board of  Directors without having been elected by the Board of Directors or having been nominated by  the Borrower for election by its shareholders.               “Change in Law” means the occurrence after the date of this Agreement (or, with  respect to any Lender, such later date on which such Lender becomes a party to this Agreement)  of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty  (including  any  rules  or  regulations  issued  under  or  implementing  any  existing  law),  (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  Issuing  Bank  (or,  for  purposes  of  Section  2.16(b),  by  any  lending  office  of  such  Lender  or  by  such  Lender’s  or  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              5  

 

   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.               “Code” means the Internal Revenue Code of 1986, as amended.               “Commitment”  means,  with  respect  to  each  Lender,  the  commitment  of  such  Lender to make Loans, expressed as an amount representing the maximum aggregate amount of  such Lender’s Revolving Credit Exposure hereunder, as such commitment may be (a) reduced  from time to time pursuant to Section 2.06, (b) increased from time to time pursuant to Section  2.18 and (c) reduced or increased from time to time pursuant to assignments by or to such Lender  pursuant  to  Section  9.04.   The  initial  amount  of  each  Lender’s  Commitment  is  set  forth  on  Schedule 2.01, or in the Assignment and Assumption pursuant to which such Lender shall have  assumed  its  Commitment,  as  applicable.   The  initial  aggregate  amount  of  the  Lenders’  Commitments is $225,000,000.               “Compliance Certificate” means a certificate substantially in the form of Exhibit  B,  but  with  such  changes  as  the  Administrative  Agent  may  from  time  to  time  request  for  purposes of monitoring the Borrower’s compliance herewith.               “Connection Income Taxes” means Other Connection Taxes that are imposed on  or measured by net income (however denominated) or that are franchise Taxes or branch profits  Taxes.               “Consolidated  Debt”  means  the  consolidated  Debt  of  the  Borrower  and  its  consolidated  Subsidiaries,  including  without  limitation  the  principal  amount  of  the  Loans,  but  excluding  FHLB  Operating  Debt  in  an  aggregate  amount  at  any  time  outstanding  up  to  the  Threshold  Amount  applicable  to  the  relevant  Subsidiary less  the  aggregate  market  value  of  securities  subject  to  Securities  Lending  at  such  time; provided  that  any  amount  of  FHLB  Operating Debt of any Subsidiary at any time outstanding in excess of the applicable Threshold  Amount shall not be excluded from Consolidated Debt.               “Contingent  Liability”  means  any  agreement,  undertaking  or  arrangement  by  which any Person (outside the ordinary course of business) guarantees, endorses, acts as surety  for or otherwise becomes or is contingently liable for (by direct or indirect agreement, contingent  or otherwise, to provide funds for payment by, to supply funds to, or otherwise to invest in, a  debtor, or otherwise to assure a creditor against loss) the debt, obligation or other liability of any  other Person (other than by endorsements of instruments in the course of collection), or for the  payment of dividends or other distributions upon the shares of any other Person or undertakes or  agrees  (contingently  or  otherwise)  to  purchase,  repurchase,  or  otherwise  acquire  or  become  responsible for any Debt, obligation or liability or any security therefor, or to provide funds for  the  payment  or  discharge  thereof  (whether  in  the  form  of  loans,  advances,  stock  purchases,  capital  contributions  or  otherwise),  or  to  maintain  solvency,  assets,  level  of  income,  or  other  financial  condition  of any  other  Person,  or to  make payment  or transfer  property  to  any  other  Person  other  than  for  fair  value  received; provided, however,  that  obligations  of  each  of  the               6  

 

   Insurance Subsidiaries under insurance policies, annuities, or surety contracts issued by it or to  which it is a party, reinsurance treaties, certificates or other agreements of each of the Insurance  Subsidiaries which are entered into in the ordinary course of business (including security posted  by each of the Insurance Subsidiaries in the ordinary course of its business to secure obligations  thereunder) shall not be deemed to be Contingent Liabilities of such Insurance Subsidiary or the  Borrower for the purposes of this Agreement.  The amount of any Person’s obligation under any  Contingent  Liability  shall  (subject  to  any  limitation  set  forth  therein)  be  deemed  to  be  the  outstanding  principal  amount  (or  maximum  permitted  principal  amount,  if  larger)  of  the  debt,  obligation or other liability guaranteed or supported thereby.               “Contractual  Obligation”  means,  relative  to  any  Person,  any  obligation,  commitment or undertaking under any agreement or other instrument to which such Person is a  party or by which it or any of its property is bound or subject.               “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.               “Controlled Group” means the Borrower and any corporation, trade or business  that is, along with the Borrower, a member of a controlled group of corporations or a controlled  group  of  trades  or  businesses  as  described  in  sections  414(b)  and  414(c),  respectively,  of  the  Code or in section 4001 of ERISA.               “Covered  Entity”  shall  mean  (a)  the  Borrower  and  each  of  Borrower’s  Subsidiaries, and (b) each Person that, directly or indirectly, is in control of a Person described in  clause (a) above.  For purposes of this definition, control of a Person shall mean the direct or  indirect (x) ownership of, or power to vote, 25% or more of the issued and outstanding equity  interests  having  ordinary  voting  power  for  the  election  of  directors  of  such  Person  or  other  Persons  performing  similar  functions  for  such  Person,  or  (y)  power  to  direct  or  cause  the  direction  of  the  management  and  policies  of  such  Person  whether  by  ownership  of  equity  interests, contract or otherwise.               “Daily LIBOR Rate” shall mean, for any day, the rate per annum determined by  the Administrative Agent by dividing (x) the Published Rate by (y) a number equal to 1.00 minus  the LIBOR Reserve Percentage on such day.  Notwithstanding the foregoing, if the Daily LIBOR  Rate as determined above would be less than zero (0.00), such rate shall be deemed to be zero  (0.00) for purposes of this Agreement.               “Debt” means, with respect to any Person, at any date, without duplication, (a) all  obligations  of  such  Person  for  borrowed  money  or  in  respect  of  loans  or  advances;  (b) all  obligations of such Person evidenced by bonds, debentures, notes or other similar instruments;  (c) all obligations in respect of letters of credit which have been drawn but not reimbursed by the  Person for whose account such letter of credit was issued, and bankers’ acceptances issued for  the  account  of  such  Person;  (d) all  obligations  in  respect  of  Capitalized  Leases  and  Synthetic  Lease Obligations of such Person; (e) all Hedging Obligations of such Person; (f) whether or not  so  included  as  liabilities  in  accordance  with  GAAP,  all  obligations  of  such  Person  to  pay  the              7  

 

   deferred purchase price  of property or services; (g) Debt of such Person secured by a Lien on  property  owned  or  being  purchased  by  such  Person  (including  Debt  arising  under  conditional  sales or other title retention agreements) whether or not such Debt is limited in recourse; (h) any  Debt of another Person secured by a Lien on any assets of such first Person, whether or not such  Debt is assumed by such first Person;  (i) any Debt of a partnership in  which  such Person is a  general  partner;  and  (j) all  Contingent  Liabilities  of such  Person  whether  or  not  in  connection  with the foregoing.  The amount of any net obligation under any Hedging Obligation on any date  shall be deemed to be the Swap Termination Value thereof as of such date.  The amount of any  capital lease or Synthetic Lease Obligation as of any date shall be deemed to be the amount of  Attributable Debt in respect thereof as of such date.  Notwithstanding anything to the contrary,  Debt shall not include any Securities Lending.               “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 the Administrative Agent, the  Issuing Bank or any Lender 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 the Administrative Agent or any Lender 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  the  Administrative  Agent, any Issuing Bank or any Lender, 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 (A) a Bankruptcy Event or (B) a Bail-In Action.                “Department” has the meaning assigned to such term in Section 3.02.               “dollars” or “$” refers to lawful money of the United States of America.               “EEA  Financial  Institution”  means  (a)  any  institution  established  in  any  EEA  Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any              8  

 

   entity established in an EEA Member Country which is a parent of an institution described in  clause (a) of this definition, or (c) any 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).               “ERISA”  means  the  Employee  Retirement  Income  Security  Act  of  1974,  as  amended from time to time and the rules and regulations promulgated thereunder.               “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule  published by the Loan Market Association (or any successor Person), as in effect from time to  time.                “Eurodollar”,  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 LIBO Rate.               “Event of Default” has the meaning assigned to such term in Article VII.               “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 2.16(b)) or (ii) such Lender changes its  lending  office,  except  in  each  case  to  the  extent  that,  pursuant  to  Section  2.16,  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 2.14(f) and  (d) any  U.S. federal withholding Taxes  imposed under FATCA.               9  

 

               “Executive  Officer”  means,  as  to  any  Person,  the  president,  the  chief  financial  officer, the chief executive officer, the  vice president – corporate finance, the general counsel,  the treasurer or the secretary.                “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 pursuant to Section 147(b)(1) of the Code.               “Federal  Funds  Effective  Rate”  means,  for  any  day,  the  rate  per  annum  announced by the Federal Reserve Bank of New York (or any successor) on such day as being  the  weighted  average  of  the  rates  on  overnight  federal  funds  transactions  arranged  by  federal  funds brokers on the previous trading day, as computed and announced by such Federal Reserve  Bank  (or  any  successor)  in  substantially  the  same  manner  as  such  Federal  Reserve  Bank  computes and announces the weighted average it refers to as the “Federal Funds Effective Rate”  as of the date of this Agreement; provided, if such Federal Reserve Bank (or its successor) does  not announce such rate on any day, the “Federal Funds Effective Rate” for such day shall be the  Federal Funds Effective Rate for the last day on which such rate was announced.                “Fee  Letters”  means,  collectively,  the  PNC  Fee  Letter  and  the  JPMCB  Fee  Letter.               “FHLB Liquidity Debt” means any transaction or series of transactions pursuant  to  which  any  Insurance  Subsidiary  makes  a  pledge  or  assignment  of  marketable  securities  as  collateral to the Federal Home Loan Bank in exchange for cash, the proceeds of which are to be  used for anything other than to purchase marketable securities.               “FHLB Operating Debt” means any transaction or series of transactions pursuant  to  which  any  Insurance  Subsidiary  makes  a  pledge  or  assignment  of  marketable  securities  as  collateral to the Federal Home Loan Bank in exchange for cash, the proceeds of which are to be  used to purchase marketable securities.               “Fiscal Quarter” means any quarter of a Fiscal Year.               “Fiscal Year” means any period of twelve consecutive calendar months ending on  the last day of December.                 “GAAP” means generally accepted accounting principles in the United States of  America.               “Governmental  Authority”  means  the  government  of  the  United  States  of  America, 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.               “Hedging  Obligations”  means,  with  respect  to  any  Person,  the  net  liability  of  such Person under Swap Contracts.               10  

 

               “Horace  Mann  Group”  means  the  combined  results  of  the  following  four  property  casualty  insurers  that  entered  into  an  intercompany  reinsurance  pooling  agreement  effective as of January 1, 2012 in which Horace Mann Insurance Company is the lead company:  Horace  Mann  Insurance  Company,  Teachers  Insurance  Company,  Horace  Mann  Property  &  Casualty Insurance Company, and Horace Mann Lloyds.                “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 the Borrower under any  Loan Document and (b) to the extent not otherwise described in subsection (a), Other Taxes.               “Indemnitee” has the meaning assigned to it in Section 9.03(b).               “Index  Debt”  means  senior,  unsecured,  long-term  indebtedness  for  borrowed  money of the Borrower that is not guaranteed by any other Person or subject to any other credit  enhancement.               “Ineligible Institution” has the meaning assigned to it in Section 9.04(b).               “Information” has the meaning assigned to it in Section 9.12.               “Insurance Code” means, with respect to any Insurance Subsidiary, the Insurance  Code of such Insurance Subsidiary’s state of domicile and any successor statute of similar  import, together with the regulations thereunder, as amended or otherwise modified and in effect  from time to time.  References to sections of the Insurance Code shall be construed to also refer  to successor sections.               “Insurance Policies” means policies purchased from insurance companies by any  of the Borrower or its Subsidiaries, for its own account to insure against its own liability and  property  loss  (including,  without  limitation,  casualty,  liability  and  workers’  compensation  insurance), other than Reinsurance Agreements and Surplus Relief Reinsurance Agreements.               “Insurance Subsidiary” means any Life Subsidiary or any P/C Subsidiary.               “Interest  Election  Request”  means  a  request  by  the  Borrower  to  convert  or  continue a Borrowing in accordance with Section 2.05.               “Interest Payment Date” means (a) with respect to any ABR Loan, the last day of  each March, June, September and December and the Maturity Date and (b) with respect to any  Eurodollar Loan, the last  day of the Interest  Period applicable to the Eurodollar Borrowing of  which such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of  more  than  three  months’  duration,  each  day  prior  to  the  last  day  of  such  Interest  Period  that  occurs at intervals of three months’ duration after the first day of such Interest Period and the  Maturity Date.                “Interest  Period”  means  with  respect  to  any  Eurodollar  Borrowing,  the  period  commencing  on  the  date  of  such  Eurodollar  Borrowing  and  ending  on  the  numerically  corresponding day in the calendar month that is one, two, three or six months thereafter, as the  Borrower  may  elect; provided  that  (i)  if  any  Interest  Period  would  end  on  a  day  other  than  a              11  

 

   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  and  (ii)  any  Interest  Period  pertaining  to  a  Eurodollar  Borrowing  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.  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.                “IRS” means the United States Internal Revenue Service.               “Issuing  Bank”  means  PNC  Bank,  National  Association  and  any  other  Lender  that  agrees  to  act  as  an  Issuing  Bank,  each  in  its  capacity  as  the  issuer of  Letters  of  Credit  hereunder, and its successors in such capacity as provided in Section 2.19(i).  Any Issuing Bank  may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of such  Issuing Bank, in which case the term “Issuing Bank” shall include any such Affiliate with respect  to  Letters  of  Credit  issued  by  such  Affiliate.   Each  reference  herein  to  the  “Issuing  Bank”  in  connection  with  a  Letter  of  Credit  or  other  matter  shall  be  deemed  to  be  a  reference  to  the  relevant Issuing Bank with respect thereto.               “JPMCB  Fee  Letter”  means  the  letter  agreement,  dated  as  of  May  21,  2019,  between the Borrower and JPMorgan Chase Bank, N.A..               “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount  of  all  outstanding  Letters  of  Credit  at  such  time,  plus  (b) the  aggregate  amount  of  all  Reimbursement Obligations that have not yet been reimbursed by or on behalf of the Borrower at  such time and (c) the aggregate amount of all all Letter of Credit Borrowings.  The LC Exposure  of any Lender at any time shall be its Applicable Percentage of the LC Exposure 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.               “Lease Obligations”  means,  at  any  date,  the  rental  commitments  of any  person  under  leases  for  real  and/or  personal  property  (including  taxes,  insurance,  maintenance  and  similar expenses which any Person is obligated to pay under the terms of said leases) on such  date,  whether  or  not  such  obligations  are  reflected  as  liabilities  or  commitments  on  a  balance               12  

 

   sheet of such Person or in the notes thereto, excluding, however, obligations under Capitalized  Leases.                “Lenders” means the Persons listed on Schedule 2.01 and any other Person that  shall  have  become  a  party  hereto  pursuant  to  an  Assignment  and  Assumption,  other  than  any  such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.  Unless  the context otherwise requires, the term “Lenders” includes the Issuing Banks.               “Letter of Credit” means any letter of credit issued pursuant to this Agreement.               “Letter of Credit Borrowing” has the meaning assigned to such term in Section  2.19.               “Letter  of  Credit  Sublimit”  has  the  meaning  assigned  to  such  term  in  Section  2.19.               “LIBO Rate” means, with respect to the Loans comprising any Eurodollar  Borrowing for any Interest Period, the interest rate per annum determined by the Administrative  Agent by dividing (the resulting quotient rounded upwards, if necessary, to the nearest 1/100th of  1% per annum) (i) the rate which appears on the Bloomberg Page BBAM1 (or on such other  substitute Bloomberg page that displays rates at which U.S. dollar deposits are offered by leading  banks in the London interbank deposit market), or the rate which is quoted by another source  selected by the Administrative Agent as an authorized information vendor for the purpose of  displaying rates at which U.S. dollar deposits are offered by leading banks in the London  interbank deposit market (for purposes of this definition, an “Alternate Source”), at  approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of  such Interest Period as the London interbank offered rate for U.S. dollars for an amount  comparable to such Borrowing and having a borrowing date and a maturity comparable to such  Interest Period (or if there shall at any time, for any reason, no longer exist a Bloomberg Page  BBAM1 (or any substitute page) or any Alternate Source, a comparable replacement rate  determined by the Administrative Agent at such time (which determination shall be conclusive  absent manifest error)), by (ii) a number equal to 1.00 minus the LIBOR Reserve Percentage.   Notwithstanding the foregoing, if the LIBO Rate as determined under any method above would  be less than zero (0.00), such rate shall be deemed to be zero (0.00) for purposes of this  Agreement.               The  LIBO  Rate  shall  be  adjusted  with  respect  to  any  Eurodollar  Loan  that  is  outstanding  on  the  effective date  of  any  change  in  the  LIBOR  Reserve  Percentage  as  of  such  effective date.  The Administrative Agent shall give prompt notice to the Borrower of the LIBO  Rate as determined or adjusted in accordance herewith, which determination shall be conclusive  absent manifest error.               “LIBOR Reserve Percentage” shall mean as of any day the maximum percentage  in effect on such day, as prescribed by the Board of Governors of the Federal Reserve System (or  any successor) for determining the reserve requirements (including supplemental, marginal and  emergency reserve requirements) with respect to eurocurrency funding (currently referred to as  “Eurocurrency Liabilities”).              13  

 

               “Licenses” has the meaning assigned to it in Section 3.11.               “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, (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 and (c) in the case of securities, any purchase option, call  or similar right of a third party with respect to such securities.               “Life Subsidiary” means any Subsidiary of the  Borrower that is engaged in the  business of providing life insurance and/or annuities, and related services.               “Loan  Document”  means,  collectively,  this  Agreement,  any  Note  and  the  Fee  Letters,  any  letter  of  credit  applications  and  any  agreements  between  the  Borrower  and  an  Issuing Bank regarding the issuance by such Issuing Bank of Letters of Credit hereunder and/or  the respective rights and obligations between the Borrower and such Issuing Bank in connection  thereunder, and any amendments, modification or supplements to any of the foregoing.               “Loans”  means  the  loans  made  by  the  Lenders  to  the  Borrower  pursuant  to  Section 2.03.               “Material Adverse Effect” means, relative to any occurrence of whatever nature  (including any adverse determination in any litigation, arbitration, or governmental investigation  or proceeding), a material adverse effect on:               (a)  the  assets,  business,  financial  condition,  operations  or  prospects  of  the  Borrower or any Subsidiary; or               (b)  the  ability  of  the  Borrower  or  any  Subsidiary  to  perform  any  of  its  payment or other material obligations under any of the Loan Documents.                “Material  Insurance  Subsidiary”  means,  at  any  time,  an  Insurance  Subsidiary  having (on a consolidated basis with its Subsidiaries) at such time either (a) gross revenues for  the most recent four Fiscal Quarter period in excess of 5% of the gross revenues of the Borrower  and its Subsidiaries for such four Fiscal Quarter period or (b) total assets, as of the last day of the  preceding  Fiscal  Quarter,  having  a  net  book  value  in  excess  of  5%  of  the  total  assets  of  the  Borrower  and  its  Subsidiaries  as  of  such  day,  in  each  case,  based  upon  the  Borrower’s  most  recent  annual  or  quarterly  financial  statements  delivered  to  the  Administrative  Agent  under  Section 5.01.   Notwithstanding  the  foregoing,  it  is  agreed  that  Educators  Life  Insurance  Company of America shall not be deemed a Material  Insurance Subsidiary  but  its Subsidiary,  Horace Mann Life Insurance Company, shall be a Material Insurance Subsidiary.  The Material  Insurance Subsidiaries  are  set  forth  on  Schedule  3.10,  as  such  schedule  may  be  updated  from  time to time.               “Maturity Date” means June 21, 2024.               “Minimum Net Worth” has the meaning assigned to such term in Section 6.02.              14  

 

               “Moody’s” means Moody’s Investors Service, Inc.               “Multiemployer  Plan”  means  a  multiemployer  plan  as  defined  in  Section 4001(a)(3) of ERISA.               “NAIC”  means  the  National  Association  of  Insurance  Commissioners,  or  any  successor thereto.               “Net  Worth”  means  the  consolidated  net  worth,  calculated  in  accordance  with  GAAP, of the Borrower and its consolidated Subsidiaries, excluding unrealized gains and losses  as calculated in accordance with FASB 115.                “Non-U.S. Lender” means a Lender that is not a U.S. Person.               “Note” has the meaning assigned to such term in Section 2.07(e).               “NYFRB” means the Federal Reserve Bank of New York.               “Obligations” means all advances to, and debts, liabilities, obligations, covenants  and duties of, the Borrower arising under any Loan Document or otherwise with respect to any  Loan  or  Letter of  Credit,  whether  direct  or  indirect  (including  those acquired  by  assumption),  absolute  or  contingent,  due or  to  become due,  now  existing  or  hereafter  arising  and  including  interest and fees that accrue after the commencement by or against the Borrower or any Affiliate  thereof of any proceeding under any debtor relief laws naming such Person as the debtor in such  proceeding, regardless of whether such interest and fees are allowed or allowable claims in such  proceeding.   Without  limiting  the  foregoing,  the  Obligations  include  (a) the  obligation  to  pay  principal, interest, Letter of Credit commissions, charges, expenses, fees, indemnities and other  amounts  payable  by  the  Borrower  under  any  Loan  Document  and  (b) the  obligation  of  the  Borrower  to  reimburse  any  amount  in  respect  of  any  of  the  foregoing  that  the  Administrative  Agent or any Lender, in each case in its sole discretion, may elect to pay or advance on behalf of  the Borrower.               “OFAC” means the Office of Foreign Assets Control of the U.S. Department of  the Treasury.               “Ordinary Course Litigation” has the meaning assigned to such term in Section  3.04.               “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,  enforced,  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              15  

 

   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 under Section 2.16(b)).               “Overnight Bank Funding Rate” means, for any day, the rate comprised of both  overnight federal funds and overnight Eurodollar borrowings by U.S.-managed banking offices  of depository institutions, as such composite rate shall be determined by the NYFRB as set forth  on its public website from time to time, and published on the next succeeding Business Day by  the NYFRB as an overnight bank funding rate.               “P/C  Subsidiary”  means  any  Subsidiary  of  the  Borrower that  is  engaged  in  the  business of providing property and casualty insurance and related services.               “Parent” means, with respect to any Lender, any Person as to which such Lender  is, directly or indirectly, a subsidiary.               “Participant” has the meaning assigned to such term in Section 9.04.               “Participant Register” has the meaning assigned to such term in Section 9.04(c).               “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 member of its Controlled Group 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.               “PNC Fee Letter” means the letter agreement, dated as of May 21, 2019, among  the Borrower, PNC Bank, National Association and PNC Capital Markets LLC.               “Prime Rate” means the interest rate per annum announced from time to time by  the Administrative Agent at its Principal Office as its then prime rate, which rate may not be the  lowest  or  most  favorable  rate  then  being  charged  commercial  borrowers  or  others  by  the  Administrative Agent.  Any change in the Prime Rate shall take effect at the opening of business  on the day such change is announced.               “Principal  Office”  shall  mean  the  main  banking  office  of  the  Administrative  Agent in Pittsburgh, Pennsylvania.               “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.               16  

 

               “Published Rate” shall mean the rate of interest published each Business Day in  The  Wall  Street  Journal  “Money  Rates”  listing  under  the  caption  “London  Interbank  Offered  Rates” for a one month period (or, if no such rate is published therein for any reason, then the  Published Rate shall be the rate at which U.S. dollar deposits are offered by leading banks in the  London  interbank  deposit  market  for  a  one  month  period  as  published  in  another  publication  selected by the Administrative Agent).               “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 Covered Entity” means any of the following: (i) a “covered entity” as that  term is defined in, and interpreted in accordance with, 12 C.F.R. 252.82(b), (ii) a “covered bank”  as that term is defined in, and interpreted in accordance with, 12 C.F.R. 47.3(b); or a “covered  FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. 382.2(b).               “QFC Credit Support” has the meaning assigned to it in Section 9.17.               “Quarterly Statement” means the quarterly financial statement of any Insurance  Subsidiary as required to be filed with the insurance commissioner (or similar authority) of such  Insurance Subsidiary’s state of domicile, together with all exhibits or schedules filed therewith,  prepared in conformity with SAP.               “Recipient”  means,  as  applicable,  (a)  the  Administrative  Agent,  (b) any  Lender  and (c) any Issuing Bank.               “Register” has the meaning assigned to such term in Section 9.04.               “Reimbursement Obligation” has the meaning assigned to such term in Section  2.19.               “Reinsurance Agreements” means any agreement, contract, treaty, certificate or  other arrangement (other than a Surplus Relief Reinsurance Agreement) whereby any Insurance  Subsidiary agrees to transfer or cede to another insurer all or part of the liability assumed by such  Insurance  Subsidiary  under  a  policy  or  policies  of  insurance  reinsured  by  such  Insurance  Subsidiary.               “Related  Parties”  means,  with  respect  to  any  specified  Person,  such  Person’s  Affiliates and the respective directors, officers, employees, agents and advisors of such Person  and such Person’s Affiliates.               “Reportable Compliance Event” shall mean that any Covered Entity becomes a  Sanctioned  Person,  or  is  charged  by  indictment,  criminal  complaint  or  similar  charging  instrument, arraigned, or custodially detained in connection with any Anti-Terrorism Law or any  predicate crime to any Anti-Terrorism Law, or has knowledge of facts or circumstances to the  effect that it is reasonably likely that any aspect of its operations is in actual or probable violation  of any Anti-Terrorism Law.               17  

 

               “Required  Lenders”  means,  at  any  time,  Lenders  having  Revolving  Credit  Exposures  and  unused  Commitments  representing  more  than  50%  of  the  sum  of  the  total  Revolving  Credit  Exposures  and  unused  Commitments  at  such  time; provided  that  for  the  purpose of determining the Required Lenders needed for any waiver, amendment, modification  or  consent,  any  Lender  that,  subject  to  Section  2.17(b),  is  a  Defaulting  Lender  shall  be  disregarded; provided further that if there exists fewer than three (3) Lenders, Required Lenders  shall mean all Lenders (other than any Defaulting Lender),               “Requirement of Law” for any Person means the corporate charter and by-laws or  other organizational or governing documents of such Person, and any law, treaty, rule, ordinance  or regulation or determination of an arbitrator or a court or other governmental authority, 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.                “Revolving Credit Exposure” means, with respect to any Lender at any time, the  sum of the outstanding principal amount of such Lender’s Loans and LC Exposure at such time.               “S&P” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial  Services LLC business.               “Sanctioned Country” means a country subject to a sanctions program  maintained under any Anti-Terrorism Law.               “Sanctioned Person” means any individual person, group, regime, entity or thing  listed  or  otherwise  recognized  as  a  specially  designated,  prohibited,  sanctioned  or  debarred  person, group, regime, entity or thing, or subject to any limitations or prohibitions (including but  not limited to the blocking of property or rejection of transactions), under  any Anti-Terrorism  Law.               “SAP” means, as to each Insurance Subsidiary, the statutory accounting practices  prescribed  or  permitted  by  the  insurance  commissioner  (or  other  similar  authority)  in  such  Insurance  Subsidiary’s  state  of  domicile  for  the  preparation  of  Annual  Statements  and  other  financial reports by insurance corporations of the same type as such Insurance Subsidiary.               “Securities Lending” means any transaction or series of transactions pursuant to  which  any  Insurance  Subsidiary  makes  a  pledge  or  assignment  of  marketable  securities  to  another  Person  (including  repurchase  transactions,  reserve  repurchase  transactions,  fee-based  transactions  and  other  similar  securities  lending  arrangements); provided  that  “Securities  Lending” shall not include FHLB Liquidity Debt or FHLB Operating Debt.               “Statutory Financial Statements” has the meaning specified in Section 3.02(a).               “Subsidiary” means, with respect to the  Borrower at  any date, any  corporation,  limited liability company, partnership, association or other entity the accounts of which would be  consolidated with those of the Borrower in the Borrower’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              18  

 

   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 Borrower or one or more subsidiaries of the Borrower or  by the Borrower and one or more Subsidiaries of the Borrower.               “Supported QFC” has the meaning assigned to it in Section 9.17.               “Surplus  Relief  Reinsurance  Agreements”  means  any  agreement  whereby  any  Insurance  Subsidiary  assumes  or  cedes  business  under  a  reinsurance  agreement  that  would  be  considered a “financing-type” reinsurance agreement and (a) with respect to any P/C Subsidiary,  which  is  entered  into  solely  for  the  purpose  of  affecting  the  income  statement  of  such  P/C  Subsidiary  as  the  same  may  be  amended  from  time  to  time,  and  (b)  with  respect  to  any  Life  Subsidiary,  as  determined  in  the  Fourth  Edition  of  the  AICPA  Audit  Guide  for  Stock  Life  Insurance Companies on pp. 91-92 thereof as the same may be amended from time to time.               “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit  derivative  transactions,  forward  rate  transactions,  commodity  swaps,  commodity  options,  forward commodity  contracts,  equity or  equity index swaps or options,  bond or bond price or  bond  index  swaps  or  options  or  forward  bond  or  forward  bond  price  or  forward  bond  index  transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor  transactions,  collar  transactions,  currency  swap  transactions,  cross-currency  rate  swap  transactions,  currency  options,  spot  contracts,  or  any  other  similar  transactions  or  any  combination of any of the foregoing (including any options to enter into any of the foregoing),  whether or not any such transaction is governed by or subject to any master agreement, and (b)  any and all transactions of any kind, and the related confirmations, which are subject to the terms  and conditions of, or governed by, any form of master agreement published by the International  Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement,  or any other master agreement (any such master agreement, together with any related schedules,  a  “Master  Agreement”),  including  any  such  obligations  or  liabilities  under  any  Master  Agreement.               “Swap  Termination  Value”  means,  in  respect  of  any  one  or  more  Swap  Contracts,  after  taking  into  account  the  effect  of  any  legally  enforceable  netting  agreement  relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have  been closed out and termination value(s) determined in accordance therewith, such termination  value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined  as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more  mid-market  or  other  readily  available  quotations  provided  by  any  recognized  dealer  in  such  Swap Contracts (which may include a Lender or any Affiliate of a Lender).               “Synthetic Lease Obligation” means the monetary obligation of a Person under  (a) a so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use  or possession of property  creating obligations that do not appear on the  balance sheet of such  Person but which, upon the insolvency or bankruptcy of such Person, would be characterized as  the indebtedness of such Person (without regard to accounting treatment).                19  

 

               “Taxes”  means  any  and  all  present  or  future  taxes,  levies,  imposts,  duties,  deductions,  withholdings  (including  backup  withholding),  assessments,  fees  or  other  charges  imposed  by  any  Governmental  Authority,  including  any  interest,  additions  to  tax  or  penalties  applicable thereto.               “Threshold  Amount”  means,  (a)  with  respect  to  Horace  Mann  Life  Insurance  Company,  as  of  any  date  of  determination,  ten  percent  (10%)  of  the  net  admitted  assets less  separate accounts assets (as set forth on the financial statements most recently provided pursuant  to  Section  5.01(c))  of  Horace  Mann  Life  Insurance  Company  and  (b)  with  respect  to  Horace  Mann Insurance Company, as of any date of determination, the greater of (i) ten percent (10%)  of the net admitted assets of the Horace Mann Group or (ii) twenty percent (20%) of statutory  surplus of the Horace Mann Group (each as set forth on the financial statements of the Horace  Mann Group most recently provided pursuant to Section 5.01(c)).               “Transactions” means the execution, delivery and performance by the Borrower  of this Agreement, the borrowing of Loans and 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 LIBO Rate or the Alternate Base Rate.               “U.S.” means the United States of America.               “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 9.17.               “U.S.  Tax  Certificate”  has  the  meaning  assigned  to  such  term  in  Section  2.14(f)(ii)(B)(3).               “Withholding Agent” means the Borrower and the Administrative Agent.               “Write-Down  and  Conversion  Powers”  means,  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.               “2017  Annual  Statement”  has  the  meaning  assigned  to  such  term  in  Section 3.02(b).               “2018  Annual  Statement”  has  the  meaning  assigned  to  such  term  in  Section 3.02(b).               “2019  Quarterly  Statement”  has  the  meaning  assigned  to  such  term  in  Section  3.02(b).              20  

 

         SECTION 1.02.     Classification  of  Loans  and  Borrowings.   For  purposes  of  this  Agreement,  Loans  may  be  classified  and  referred  to  by  Type  (e.g.,  a  “Eurodollar  Loan”).   Borrowings also may be classified and referred to by Type (e.g., a “Eurodollar 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 “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) 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, (c) 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, (d) 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,  (e)  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, (f) 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 and (g) any reference to any  law,  rule  or  regulation  herein  shall,  unless  otherwise  specified,  refer  to  such  law,  rule  or  regulation as amended, modified or supplemented from time to time.          SECTION 1.04.     Accounting  Terms;  GAAP.   Unless  otherwise  defined  or  the  context otherwise requires, all financial and accounting terms used herein or in any of the Loan  Documents  or  any  certificate  or  other  document  made  or  delivered  pursuant  hereto  shall  be  defined  in  accordance  with  GAAP  or  SAP,  as  the  context  may  require.   When  used  in  this  Agreement,  the  term  “financial  statements”  shall  include  the  notes  and  schedules  thereto.   In  addition, when used herein, the terms “best knowledge of” or  “to the best knowledge of” any  Person shall mean matters within the actual knowledge of such Person (or an Executive Officer  or  general  partner  of  such  Person)  or  which  should  have  been  known  by  such  Person  after  reasonable inquiry.  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 the Borrower notifies the Administrative Agent that the Borrower requests an  amendment to any provision hereof to eliminate the effect of any change occurring after the date  hereof  in  GAAP  or  in  the  application  thereof  on  the  operation  of  such  provision  (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.  Without limiting the foregoing, all Capitalized Lease obligations of any              21  

 

   Person that would not have been required to be recognized as a liability on such Person’s balance  sheet under GAAP prior to the effectiveness of the Accounting Standards Update (the “ASU”)  issued by the Financial Accounting Standards Board on February 25, 2016 shall continue to be  accounted for as if such obligations were not required to be recognized as a liability for purposes  of all financial definitions and calculations in this Agreement notwithstanding the fact that such  obligations  are  required  in  accordance  with  the  ASU  (on  a  prospective  or  retroactive  basis  or  otherwise) to be recognized as a liability on such Person’s balance sheet.         SECTION 1.05.     Letter of Credit Amounts.  Unless otherwise specified herein, the  amount  of  a  Letter  of  Credit  at  any  time shall  be deemed  to  be  the  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 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.         SECTION 1.06.     Divisions.   For  all  purposes  under  the  Loan  Documents,  in  connection with any division or plan of division under Delaware law (or any comparable event  under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person  becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to  have  been  transferred  from  the  original  Person  to  the  subsequent  Person,  and  (b)  if  any  new  Person  comes  into  existence,  such  new  Person  shall  be  deemed  to  have  been  organized  and  acquired on the first date of its existence by the holders of its equity interests at such time.                                    ARTICLE II                                                                           THE CREDITS         SECTION 2.01.     Commitments.   Subject  to  the  terms  and  conditions  set  forth  herein,  each  Lender  agrees  to  make  Loans  to  the  Borrower  from  time  to  time  during  the  Availability  Period  in  an  aggregate  principal  amount  that  will  not  result  in  such  Lender’s  Revolving Credit Exposure exceeding such Lender’s Commitment.  Within the foregoing limits  and subject to the terms and conditions set forth herein, the Borrower may borrow, prepay and  reborrow Loans.         SECTION 2.02.     Loans and Borrowings.  (a)  Each Loan shall be made as part of a  Borrowing consisting of Loans made by the Lenders ratably in accordance with their respective  Commitments.  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 2.11,  each  Borrowing  shall  be  comprised  entirely  of  ABR  Loans  or  Eurodollar  Loans  as  the  Borrower  may  request  in  accordance  herewith.   Each  Lender at its option may make any Eurodollar Loan by causing any domestic or foreign branch  or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall               22  

 

   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  Eurodollar  Borrowing,  such  Borrowing  shall  be  in  an  aggregate  amount  that  is  an  integral  multiple  of  $1,000,000 and not less than $5,000,000.  At the time that each ABR Borrowing is made, such  Borrowing shall be in an aggregate amount that is an integral multiple of $100,000 and not less  than $500,000; provided that an ABR Borrowing may be in an aggregate amount that is equal to  the entire unused balance of the total Commitments.  Borrowings of more than one Type may be  outstanding at the same time; provided that there shall not at any time be more than a total of 5  Eurodollar 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 Maturity Date.         SECTION 2.03.     Requests for Borrowings.  To request a Borrowing, the Borrower  shall notify the Administrative Agent of such request by telephone (a) in the case of a Eurodollar  Borrowing, not later than 11:00 a.m., New York City time, three Business Days before the date  of the proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 11:00 a.m.,  New York City time, the same Business Day as the date of the proposed Borrowing.  Each such  telephonic  Borrowing  Request  shall  be  irrevocable  and  shall  be  confirmed  promptly  by  hand  delivery  or  facsimile  (or  e-mail  with  a  PDF  copy  attached)  to  the  Administrative  Agent  of  a  written Borrowing Request in a form approved by the Administrative Agent and signed by the  Borrower.   Each  such  telephonic  and  written  Borrowing  Request  shall  specify  the  following  information in compliance with Section 2.02:                     (i)   the aggregate amount of the requested Borrowing;                     (ii)  the date of such Borrowing, which shall be a Business Day;                     (iii) whether  such  Borrowing  is  to  be  an  ABR  Borrowing  or  a              Eurodollar Borrowing;                     (iv)  in the case of a Eurodollar Borrowing, the initial Interest Period to              be applicable thereto, which shall be a period contemplated by the definition of              the term “Interest Period”; and                     (v)   the location and number of the Borrower’s account to which funds              are to be disbursed, which shall comply with the requirements of Section 2.04.   If no election as to the Type of Borrowing is specified, then the requested Revolving Borrowing  shall  be  an  ABR  Borrowing.   If  no  Interest  Period  is  specified  with  respect  to  any  requested  Eurodollar 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.              23  

 

         SECTION 2.04.     Funding of Borrowings.  (a) Each Lender shall make each Loan to  be made by it hereunder on the proposed date thereof by wire transfer of immediately available  funds  by  12:00  noon,  New  York  City  time,  to  the  account  of  the  Administrative  Agent  most  recently designated by it for such purpose by notice to the Lenders.  .  Except in respect of the  provisions  of  this  Agreement  covering  the  reimbursement  of  Letters  of  Credit,  the  Administrative Agent will make such Loans available to the Borrower by promptly crediting the  amounts  so  received,  in  like  funds,  to  an  account  of  the  Borrower  maintained  with  the  Administrative  Agent  and  designated  by  the  Borrower  in  the  applicable  Borrowing  Request;  provided  that  ABR   Loans  made  to  finance  a  Reimbursement  Obligation  as  provided  in  Section 2.19(c) 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  severally  agree  to  pay  to  the  Administrative  Agent  forthwith  on  demand  such  corresponding  amount  with  interest  thereon,  for  each  day  from  and  including  the  date  such  amount  is  made  available  to  the  Borrower  to  but  excluding  the  date  of  payment  to  the  Administrative Agent, at (i) in the case of such Lender, the greater of the Federal Funds Effective  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  ABR Loans.  If such Lender pays such amount to the Administrative Agent, then such amount  shall constitute such Lender’s Loan included in such Borrowing.         SECTION 2.05.     Interest  Elections.   (a)  Each  Borrowing  initially  shall  be  of  the  Type specified in the applicable Borrowing Request and, in the case of a Eurodollar 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  Eurodollar  Revolving  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 by telephone 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  telephonic  Interest  Election  Request  shall  be  irrevocable  and  shall  be  confirmed  promptly  by  hand delivery, telecopy or facsimile (or e-mail with a PDF copy attached) to the Administrative  Agent of a written Interest Election Request in a form approved by the Administrative Agent and  signed by the Borrower.               24  

 

               (c)   Each  telephonic  and  written  Interest  Election  Request  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 an ABR Borrowing or a              Eurodollar Borrowing; and                     (iv)  if the resulting Borrowing is a Eurodollar 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 Eurodollar 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  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 Eurodollar 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 converted to an ABR Borrowing.  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  Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be converted to an  ABR Borrowing at the end of the Interest Period applicable thereto.         SECTION 2.06.     Termination  and  Reduction  of  Commitments.   (a)  Unless  previously terminated, the Commitments shall terminate on the Maturity Date.               (b)   The Borrower may at any time terminate, or from time to time reduce, the  Commitments; provided that (i) each reduction of the Commitments shall be in an amount that is  an integral multiple of $1,000,000 and not less than $5,000,000 and (ii) the Borrower shall not  terminate or reduce the Commitments if, after giving effect to any concurrent prepayment of the  Loans in accordance with Section 2.08, the Revolving Credit Exposures would exceed the total  Commitments.               25  

 

               (c)   The  Borrower  shall  notify  the  Administrative  Agent  of  any  election  to  terminate or reduce the Commitments under paragraph (b) 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  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 Commitments shall be permanent.  Each reduction  of  the  Commitments  shall  be  made  ratably  among  the  Lenders  in  accordance  with  their  respective Commitments.         SECTION 2.07.     Repayment of Loans; Evidence of Debt.  (a) The Borrower hereby  unconditionally promises to pay to the Administrative Agent for the account of each Lender the  then unpaid principal amount of each Loan on the Maturity Date.               (b)   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.               (c)   The Administrative Agent shall maintain accounts in which it shall record  (i) the amount of each Loan made hereunder, the date thereof and the Interest Period applicable  thereto,  (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.               (d)   The  entries  made  in  the  accounts  maintained  pursuant  to  paragraph (b)  or (c)  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.               (e)   Any  Lender  may  request  that  Loans  made  by  it  be  evidenced  by  a  promissory note (each, a “Note”).  In such event, the Borrower shall prepare, execute and deliver  to such Lender a Note payable to the order of such Lender (or, if requested by such Lender, to  such  Lender  and  its  registered  assigns)  in  a  form  approved  by  the  Administrative  Agent.   Thereafter, the Loans evidenced by such Note and interest thereon shall at all times (including  after assignment pursuant to Section 9.04) be represented by one or more Notes payable to the  order of the payee named therein (or, if such Notes is a registered note, to such payee and its  registered assigns).         SECTION 2.08.     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, subject to prior notice in  accordance with paragraph (b) of this Section.              26  

 

               (b)   The  Borrower  shall  notify  the  Administrative  Agent  by  telephone  (confirmed by telecopy or facsimile (or e-mail with a PDF copy attached)) of any prepayment  hereunder  (i) in the case of prepayment of a Eurodollar Borrowing, not later  than 11:00  a.m.,  New York City time, three Business Days before the date of prepayment or (ii) in the case of  prepayment of an ABR Borrowing, not later than 11:00 a.m., New York City 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  Commitments  as  contemplated  by  Section 2.06,  then  such  notice  of  prepayment  may  be  revoked  if  such  notice  of  termination  is  revoked  in  accordance  with  Section 2.06.   Promptly  following  receipt  of  any  such  notice,  the  Administrative  Agent  shall  advise the Lenders of the contents thereof.  Each partial prepayment of any Borrowing 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.  Each prepayment of a Borrowing shall be applied ratably to the Loans  included in the prepaid Borrowing.  Prepayments shall be accompanied by accrued interest to the  extent required by Section 2.10 and any break funding payments pursuant to Section 2.13.         SECTION 2.09.     Fees.  (a) The Borrower agrees to pay to the Administrative Agent  for the account of each Lender a commitment fee, which shall accrue at the Applicable Rate on  the  daily  unused  amount  of  the  Commitment  of  such  Lender  during  the  period  from  and  including the Effective Date to but excluding the date on which such Commitment terminates.   Accrued commitment fees shall be payable in arrears on the last day of March, June, September  and December of each year and on the date on which the 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  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 but excluding the last day).               (b)   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.               (c)   All fees payable hereunder shall be paid on the dates due, 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,  to  the  Lenders.   Fees  paid  shall  not  be  refundable under any circumstances.         SECTION 2.10.     Interest.   (a)  The  Loans  comprising  each  ABR Borrowing  shall  bear interest at the Alternate Base Rate plus the Applicable Rate.               (b)   The Loans comprising each Eurodollar Borrowing shall bear interest at the  LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.               (c)   Notwithstanding the foregoing, if any principal of or interest on any Loan  or any fee or other amount payable by the Borrower hereunder is not paid when due, whether at  stated maturity, upon acceleration or otherwise, upon the request of the Administrative Agent or  the Required Lenders such overdue amount shall bear interest, after as well as before judgment,              27  

 

   at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the rate  applicable to ABR Loans as provided in paragraph (a) of this Section or (ii) in the case of any  other  amount,  2% plus  the  rate applicable to  ABR  Loans  as  provided  in  paragraph  (a)  of  this  Section.   If  any  other  Event  of  Default  hereunder  shall  arise,  then  upon  the  request  of  the  Required Lenders, all principal of and interest on any Loan, and any other fee or other amount  payable  by  the  Borrower  hereunder  shall  bear  interest  at  2%  plus  the  rate  applicable  to  ABR  Loans  as  provided  in  paragraph  (a) of  this  Section,  until  such  Event  of  Default  is  cured  or  is  waived.               (d)   Accrued interest on each Loan shall be payable in arrears on each Interest  Payment Date for such Loan and upon termination of the 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 an ABR 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 Eurodollar 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)   All  interest  hereunder  shall  be  computed  on  the  basis  of  a  year  of  360  days, except that interest computed by reference to the Alternate Base Rate shall be computed on  the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for  the  actual  number  of  days  elapsed  (including  the  first  day  but  excluding  the  last  day).   The  applicable Alternate Base Rate or LIBO Rate shall be determined by the Administrative Agent,  and such determination shall be conclusive absent manifest error.         SECTION 2.11.     Alternate Rate of Interest.                 (a)   If  prior  to  the  commencement  of  any  Interest  Period  for  a  Eurodollar  Borrowing:               (i)  the  Administrative  Agent  determines  (which  determination  shall  be              conclusive absent manifest error) that adequate and reasonable means do not exist              for ascertaining the LIBO Rate for such Interest Period; or               (ii)  the  Administrative  Agent  is  advised  by  the  Required  Lenders  that  the              LIBO 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 its Loan)              included in such Borrowing for such Interest Period;   then  the  Administrative  Agent  shall  give  notice  thereof  to  the  Borrower  and  the  Lenders  by  telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent  notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer  exist,  (A) any  Interest  Election  Request  that  requests  the  conversion  of  any  Borrowing  to,  or  continuation  of  any  Borrowing  as,  a  Eurodollar  Borrowing  shall  be  ineffective  and  (B) if  any  Borrowing  Request  requests  a  Eurodollar  Borrowing,  such  Borrowing  shall  be  made  as  an  ABR Borrowing;  provided  that  if  the  circumstances  giving  rise  to  such  notice affect  only  one  Type of Borrowings, then the other Type of Borrowings shall be permitted.              28  

 

               (b)   (i)  If the Administrative Agent determines (which determination shall be  final  and  conclusive,  absent  manifest  error)  that  either  (a)  (i)  the  circumstances  set  forth  in  Section 2.11(a) have arisen and are unlikely to be temporary, or (ii) the circumstances set forth in  Section  2.11(a)  have  not  arisen  but  the  applicable  supervisor  or  administrator  (if  any)  of  the  LIBO Rate or a Governmental Authority having jurisdiction over the Administrative Agent has  made a public statement identifying the specific date after which the LIBO Rate shall no longer  be used for determining interest rates for loans (either such date, a “LIBOR Termination Date”),  or (b) a rate other than the LIBO Rate has become a widely recognized benchmark rate for newly  originated  loans  in  Dollars  in  the  U.S.  market,  then  the  Administrative  Agent  may  (in  consultation  with  the  Borrower)  choose  a  replacement  index  for  the  LIBO  Rate  and  make  adjustments  to  applicable  margins  and  related  amendments  to  this  Agreement  as  referred  to  below such that, to the extent practicable, the all-in interest rate based on the replacement index  will be substantially equivalent to the all-in LIBO Rate-based interest rate in effect prior to its  replacement.     (ii)  The Administrative Agent and the Borrower shall enter into an amendment to this  Agreement to reflect the replacement index, the adjusted margins and such other related  amendments as may be appropriate, in the discretion of the Administrative Agent, for the  implementation and administration of the replacement index-based rate.  Notwithstanding  anything to the contrary in this Agreement or the other Loan Documents (including, without  limitation, Section 9.02), such amendment shall become effective without any further action or  consent of any other party to this Agreement at 5:00 p.m. New York City time on the tenth (10th)  Business Day after the date a draft of the amendment is provided to the Lenders, unless the  Administrative Agent receives, on or before such tenth (10th) Business Day, a written notice  from the Required Lenders stating that such Lenders object to such amendment.   (iii)  Selection of the replacement index, adjustments to the applicable margins, and  amendments to this Agreement (i) will be determined with due consideration to the then-current  market practices for determining and implementing a rate of interest for newly originated loans  in the United States and loans converted from a LIBO Rate-based rate to a replacement index- based rate, and (ii) may also reflect adjustments to account for (x) the effects of the transition  from the LIBO Rate to the replacement index and (y) yield- or risk-based differences between  the LIBO Rate and the replacement index.   (iv)  Until an amendment reflecting a new replacement index in accordance with this Section  2.11(b) is effective, each advance, conversion and renewal of a Eurodollar Loan will continue to  bear interest with reference to the LIBO Rate; provided however, that if the Administrative  Agent determines (which determination shall be final and conclusive, absent manifest error) that  a LIBOR Termination Date has occurred, then following the LIBOR Termination Date, all  Eurodollar Loans shall automatically be converted to the ABR Loans until such time as an  amendment reflecting a replacement index and related matters as described above is  implemented.     (v)  Notwithstanding anything to the contrary contained herein, if at any time the replacement  index is less than zero, at such times, such index shall be deemed to be zero for purposes of this  Agreement.              29  

 

         SECTION 2.12.     Increased Costs.  (a) If any Change in Law shall:                     (i)   impose, modify or deem applicable any reserve, special deposit 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  or  Issuing  Bank  (except  any  such  reserve              requirement reflected in the LIBO Rate);                      (ii)  impose  on  any  Lender  or  Issuing  Bank  or  the  London  interbank              market  any  other  condition,  cost  or  expense  affecting  this  Agreement  or              Eurodollar  Loans  made  by  such  Lenders  or  Letters  of  Credit  or  participations              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  or  maintaining  any              Loan (or of maintaining its obligation to make any such Loan) or to increase the              cost to such Lender, such 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, such Issuing Bank or such other Recipient              hereunder (whether of principal, interest or otherwise), then the Borrower will pay              to such Lender, such Issuing Bank or such other Recipient, as the case may be,              such additional amount or amounts as will compensate such Lender, such Issuing              Bank  or  such  other  Recipient,  as  the  case  may  be,  for  such  additional  costs              incurred or reduction suffered.               (b)   If  any  Lender  or  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  Issuing Bank’s holding company, if any, as a consequence of this Agreement or the Loans made  by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by  such Issuing Bank, to a level below that which such Lender or Issuing Bank or such Lender’s or  Issuing Bank’s holding company could have achieved but for such Change in Law (taking into  consideration  such  Lender’s  or  Issuing  Bank’s  policies  and  the  policies  of  such  Lender’s  or  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  Issuing  Bank,  as  the  case  may  be,  such  additional amount or amounts as will compensate such Lender or Issuing Bank or such Lender’s  or Issuing Bank’s holding company for any such reduction suffered.               (c)   A  certificate  of  a  Lender  or  Issuing  Bank  setting  forth  the  amount  or  amounts necessary to compensate such Lender or 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              30  

 

   Borrower and shall be conclusive absent manifest error.  The Borrower shall pay such Lender or  Issuing Bank, as the case may be, the amount shown as due on any such certificate within 10  days after receipt thereof.               (d)   Failure  or  delay  on  the  part  of  any  Lender  or  Issuing  Bank  to  demand  compensation pursuant to this Section shall not constitute a waiver of such Lender’s or Issuing  Bank’s right to demand such compensation; provided that the Borrower shall not be required to  compensate  a  Lender  or  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 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  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 2.13.     Break Funding Payments.  In the event of (a) the payment of any  principal  of  any  Eurodollar  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 2.08), (b) the conversion of any Eurodollar Loan other than on the last day of the Interest  Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Eurodollar  Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such  notice may be revoked under Section 2.08(b) and is revoked in accordance therewith), or (d) the  assignment of any Eurodollar 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 2.16, then, in any such event,  the Borrower shall compensate each Lender for the loss, cost and expense attributable to such  event.   In  the  case  of  a  Eurodollar  Loan,  such  loss,  cost  or  expense  to  any  Lender  shall  be  deemed  to  include  an  amount  determined  by  such  Lender  to  be  the  excess,  if  any,  of  (i)  the  amount of interest which would have accrued on the principal amount of such Eurodollar Loan  had  such  event  not  occurred,  at  the  LIBO  Rate  that  would  have  been  applicable  to  such  Eurodollar Loan, for the period from the date of such event to the last day of the then current  Interest Period therefor (or, in the case of a failure to borrow, convert or continue, for the period  that  would  have  been  the  Interest  Period  for  such  Eurodollar  Loan),  over  (ii)  the  amount  of  interest which would accrue on such principal amount for such period at the interest rate which  such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of  a comparable amount and period from other banks in the eurodollar market.  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 10  days after receipt thereof.         SECTION 2.14.     Taxes.               (a)   Withholding Taxes; Gross-Up.  Any and all payments by or on account of  any obligation of the Borrower 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 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              31  

 

   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 Borrower  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  2.14),  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 Borrower.  The Borrower shall timely pay  to the relevant Governmental Authority in accordance with applicable law, or at the option of the  Administrative Agent timely reimburse it for, Other Taxes.               (c)   Evidence of Payment.  As soon as practicable after any payment of Taxes  by the Borrower to a Governmental Authority pursuant to this Section 2.14, the Borrower 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  Borrower.   The  Borrower  shall  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 2.14(d)) 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.  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,  shall  be  conclusive  absent  manifest error.               (e)   Indemnification  by  the  Lenders.   Each  Lender  shall  severally  indemnify  the  Administrative Agent,  within  ten  (10) days  after demand  therefor,  for  (i)  any  Indemnified  Taxes  attributable  to  such  Lender  (but  only  to  the  extent  that  the  Borrower  has  not  already  indemnified  the  Administrative  Agent  for  such  Indemnified  Taxes  and  without  limiting  the  obligation of the Borrower to do so) and (ii) 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 set off and apply any and all amounts at any time owing  to such Lender under any Loan Document or otherwise payable by the 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.                 32  

 

                       (i)   Any Lender that is entitled to an exemption from or reduction of   withholding Tax with respect to payments made under any Loan Document shall   deliver  to  the  Borrower  and  the  Administrative  Agent,  at  the  time  or  times   reasonably requested by the Borrower or the Administrative Agent, such properly   completed and executed documentation 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 2.14(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, if 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),  executed  originals  of  IRS  Form  W-9  certifying         that such Lender is exempt from U.S. federal backup withholding tax;                (B)   any  Non-U.S.  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  Non-U.S.  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  Non-U.S.  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,               executed originals 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, IRS Form W-8BEN or IRS               Form W-8BEN-E,  as applicable, establishing an exemption from,   33  

 

                             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  Non-U.S.  Lender  claiming  that  its               extension  of  credit  will  generate  U.S.  effectively  connected               income, executed originals of IRS Form W-8ECI;                       (3)  in  the  case  of  a  Non-U.S.  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 Non-U.S. Lender is not a “bank”               within  the  meaning  of  Section  881(c)(3)(A)  of  the  Code,  a               “10 percent  shareholder”  of  the  Borrower  within  the  meaning  of               Section  881(c)(3)(B)  of  the  Code,  or  a  “controlled  foreign               corporation”  described  in  Section  881(c)(3)(C)  of  the  Code  (a               “U.S. Tax Compliance Certificate”) and (y) executed originals of               IRS Form W-8BEN; or                      (4)  to  the  extent  a  Non-U.S.  Lender  is  not  the               Beneficial  Owner,  executed  originals  of  IRS  Form  W-8IMY,               accompanied  by  IRS  Form  W-8ECI,  IRS  Form  W-8BEN  or  IRS               Form  W-8BEN-E,  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  Non-U.S.               Lender is a partnership and one or more direct or indirect partners               of  such  Non-U.S.  Lender  are  claiming  the  portfolio  interest               exemption,  such  Non-U.S.  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  Non-U.S.  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  Non-U.S.  Lender  becomes  a  Lender  under  this         Agreement (and from time to time thereafter upon the reasonable request         of the Borrower or the  Administrative Agent), executed originals of  any         other form prescribed by applicable law as a basis for claiming exemption         from  or  a  reduction  in  U.S.  federal  withholding  Tax,  duly  completed,         together with such supplementary documentation as may be prescribed by         applicable  law  to  permit  the  Borrower  or  the  Administrative  Agent  to         determine the withholding or deduction required to be made; and                (D)   if a payment made to a Lender under any Loan Document         would be subject to U.S. federal withholding Tax imposed by FATCA if         such  Lender  were  to  fail  to  comply  with  the  applicable  reporting         requirements of FATCA (including those contained in Section 1471(b) or   34  

 

                     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 2.14 (including by the payment of additional amounts  pursuant to this Section 2.14), it shall pay to the indemnifying party  an  amount equal to such  refund (but only to the extent of indemnity payments made under this Section 2.14 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  2.14  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.               35  

 

               (i)   Defined Terms.  For purposes of this Section, the term “Lender” includes  any Issuing Bank and the term “applicable law” includes FATCA.         SECTION 2.15.     Payments Generally; Pro Rata Treatment; Sharing of Set-offs.  (a)  The  Borrower  shall  make  each  payment  required  to  be  made  by  it  hereunder  (whether  of  principal,  interest,  fees, Reimbursement  Obligations  or  of  amounts  payable  under  Section  2.12,  2.13 or 2.14, or otherwise) prior to 2:00 p.m., New York City  time, on the date when due, in  immediately available funds, without set-off 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 its Principal Office,  except that payments to be made directly to Issuing Banks and payments pursuant to Sections  2.12,  2.13,  2.14  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.   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)   If  at  any  time  insufficient  funds  are  received  by  and  available  to  the  Administrative  Agent  to  pay  fully  all  amounts  of  principal,  interest,  fees  and  Reimbursement  Obligations  then due hereunder, such funds shall be applied (i) first, towards payment of interest  and fees then due hereunder, ratably among the parties entitled thereto in accordance with the  amounts  of  interest  and  fees  then  due  to  such  parties,  and  (ii)  second,  towards  payment  of  principal and unreimbursed Reimbursement Obligations then due hereunder, ratably among the  parties  entitled  thereto  in  accordance  with  the  amounts  of  principal  and  unreimbursed  Reimbursement Obligations then due to such parties.               (c)   If any  Lender shall, by  exercising  any right of setoff or counterclaim or  otherwise,  obtain  payment  in  respect  of  any  principal  of  or  interest  on  any  of  its  Loans  or  participations  in  Reimbursement  Obligations  resulting  in  such  Lender  receiving  payment  of  a  greater  proportion  of  the  aggregate  amount  of  its  Loans  and  participations  in  Reimbursement  Obligations and accrued interest thereon than the proportion received by any other Lender, then  the Lender receiving such greater proportion shall purchase (for cash at face value) participations  in  the  Loans  and  participations  in  Reimbursement  Obligations  of  other  Lenders  to  the  extent  necessary  so  that  the  benefit  of  all  such  payments  shall  be  shared  by  the  Lenders  ratably  in  accordance  with  the  aggregate  amount  of  principal  of  and  accrued  interest  on  their  respective  Loans  and  participations  in  Reimbursement  Obligations;  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 Reimbursement  Obligations  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              36  

 

   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.               (d)   Unless  the  Administrative  Agent  shall  have  received  notice  from  the  Borrower  prior  to  the  date  on  which  any  payment  is  due  to  the  Administrative  Agent  for  the  account  of  the  Lenders  or  Issuing  Banks  hereunder  that  the  Borrower  will  not  make  such  payment, the Administrative Agent may assume that the Borrower has made such payment on  such date in accordance herewith and may, in reliance upon such assumption, distribute to the  Lenders  or  the  Issuing  Banks  the amount  due.   In  such  event,  if  the Borrower  has  not  in  fact  made such payment, then each of the Lenders and Issuing Banks 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  greater  of  the  Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance  with banking industry rules on interbank compensation.               (e)   If any Lender or Issuing Bank shall fail to make any payment required to  be  made  by  it  pursuant  to  Section  2.04(b),  2.15(d)  or  9.03(c),  then  the  Administrative  Agent  may,  in  its  discretion  and  notwithstanding  any  contrary  provision  hereof,  apply  any  amounts  thereafter received by the Administrative Agent for the account of such Lender or Issuing Bank   to  satisfy  such  Lender’s  or  Issuing  Bank’s  obligations  under  such  Sections  until  all  such  unsatisfied  obligations  are  fully  paid,  and/or  hold  such  amounts  in  a  segregated  account  over  which  the  Administrative  Agent  shall  have  exclusive  control  as  cash  collateral  for,  and  application  to,  any  future  funding  obligations  of such  Lender  or  Issuing  Bank  under any  such  Section, in each case, in any order as determined by the Administrative Agent in its discretion.         SECTION 2.16.     Mitigation Obligations; Replacement of Lenders.  (a) If any Lender  requests compensation under Section 2.12, or if the Borrower is required to pay any additional  amount to any Lender or any Governmental Authority for the account of any Lender pursuant to  Section 2.14, then such Lender shall use reasonable efforts to designate a different lending office  for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to  another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation  or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.12 or 2.14, 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.               (b)   If  any  Lender  requests  compensation  under  Section 2.12,  or  if  the  Borrower is required to pay any additional amount to any Lender or any Governmental Authority  for the account of any Lender pursuant to Section 2.14, or if any Lender becomes a Defaulting  Lender,  or  if  any  Lender  does  not  consent  to  any  proposed  amendment,  supplement,  modification, consent or waiver of any provision of this Agreement or any other Loan Document  that requires the consent of each of the Lenders or each of the Lenders affected thereby (so long  as the consent of the Required has been obtained), then the Borrower may, at its sole expense              37  

 

   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  and  obligations  under  this  Agreement  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 (and if a Commitment is being assigned, the Issuing Banks),  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, participations in Reimbursement  Obligations, 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 2.12  or  payments  required  to  be  made  pursuant  to  Section 2.14,  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.         SECTION 2.17.     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 Commitment of  such Defaulting Lender pursuant to Section 2.09;               (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 Article VII 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  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              38  

 

   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, Reimbursement Obligations or  Letter of Credit  Borrowings  in respect of which  such Defaulting Lender has not fully funded its appropriate share, and (y) such Loans were made  or the related Letters of Credit were issued at a time when the conditions set forth in Section 4.02  were  satisfied  or  waived,  such  payment  shall  be  applied  solely  to  pay  the  Loans  of,  Reimbursement  Obligations  and  Letter  of  Credit  Borrowings  owed  to,  all  non-Defaulting  Lenders  on  a  pro  rata  basis  prior  to  being  applied  to  the  payment  of  any  Loans  of,  or  Reimbursement Obligations and Letter of Credit Borrowings 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)   the  Commitment  and  Revolving  Credit  Exposure  of  such  Defaulting  Lender shall not be included in determining whether the Required Lenders have taken or may  take  any  action  hereunder  (including  any  consent  to  any  amendment,  waiver  or  other  modification pursuant to Section 9.02); provided that 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 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              Credit Exposure to exceed its 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              Banks only 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 2.19 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 2.19 with               39  

 

               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 Section 2.09              and  Section  2.19  shall  be  adjusted  in  accordance  with  such  non-Defaulting              Lenders’ Applicable Percentages; and               (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  any  Issuing  Bank  or  any  other              Lender hereunder, all letter of credit fees payable under Section 2.19 with respect              to such Defaulting Lender’s LC Exposure shall be payable to the Issuing Banks              until  and  to  the  extent  that  such  LC  Exposure  is  reallocated  and/or  cash              collateralized; and               (vi)   so long as such Lender is a Defaulting Lender, no Issuing Bank shall be              required to issue, amend or increase any Letter of Credit, unless it is satisfied that              the related exposure and the 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              2.17(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 2.17(d)(i) (and such Defaulting Lender shall not participate therein).               (e)   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)  any 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, no Issuing  Bank shall be required to issue, amend or increase any Letter of Credit, unless the Issuing Banks  shall  have  entered  into  arrangements  with  the  Borrower  or  such  Lender,  satisfactory  to  such  Issuing Bank to defease any risk to it in respect of such Lender hereunder.               (f)   In the event that each of the Administrative Agent, the Borrower, each and  each  Issuing  Bank  agrees  that  a  Defaulting  Lender  has  adequately  remedied  all  matters  that  caused such  Lender to be a Defaulting  Lender, then the LC  Exposure of the Lenders shall be  readjusted to reflect the inclusion of such Lender’s Commitment and on such date 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.         SECTION 2.18.     Increase of Commitments.                (a)   The  Borrower  may,  from  time  to  time,  by  notice  to  the  Administrative  Agent, request that the aggregate Commitments be increased by an amount that will not result in  the aggregate Commitments exceeding $325,000,000; provided that each increase in aggregate  Commitments  under  this  Section  shall  be  in  a  minimum  amount  of  $25,000,000.   Each  such              40  

 

   notice shall set forth the requested amount of the increase in the Commitments and the date on  which  such  increase  is  to  become  effective.   The  Borrower  shall  have  the  right,  but  not  the  obligation, to arrange for one or more commercial banks or other financial institutions (any such  bank or other  financial  institution being called an “Augmenting Lender”), which  may include  any  Lender,  to  extend  Commitments  or  increase  their  existing  Commitments  in  an  aggregate  amount  up  to,  but  not  greater  than,  the  requested  increase, provided  that  each  Augmenting  Lender, if not already a Lender hereunder (i) shall extend a new Commitment of not less than  $5,000,000,  (ii)  shall  execute  all  such  documentation  as  the  Administrative  Agent  shall  reasonably specify to evidence its status as a Lender hereunder and (iii) shall be consented to by  the Administrative Agent (which consent shall not be unreasonably withheld or delayed).  Such  increases  and  such  new  Commitments  shall  become  effective  on  the  date  agreed  to  by  the  Borrower,  the  Augmenting  Lenders  and  the  Administrative  Agent.   Notwithstanding  the  foregoing,  no  increase  in  the  aggregate  Commitments  (or  in  the  Commitment  of  any  Lender)  shall become effective under this paragraph unless, on the date of such increase, the conditions  set forth in Section 4.02 shall be satisfied (with all references in such paragraphs to a Loan being  deemed to be references to such increase) and the Administrative Agent shall  have received  a  certificate to that effect dated such date and executed by an Executive Officer of the Borrower.   Notwithstanding anything else in the foregoing, no Lender shall become an Augmenting Lender  without such Lender’s consent.               (b)   Upon the effectiveness of any increase pursuant to this Section 2.18 of the  aggregate Commitments and any resulting adjustment in the Applicable Percentages, the Lenders  and the Augmenting Lenders will purchase from each other and sell to each other outstanding  Loans sufficient to cause the outstanding Loans of each Lender and Augmenting Lender to equal  its Applicable Percentage (as so adjusted) of the aggregate outstanding Revolving Loans.  Such  purchase and sale shall be made pursuant to Section 9.04 except that no minimum amount shall  be required, no processing fee shall be charged and, if any Lender shall suffer a loss or incur an  expense as a result of the effectiveness of such purchase or sale being during an Interest Period,  the  Borrower  shall  reimburse  such  Lender  the  amount  of  such  loss  or  expense.   Each  such  Lender shall furnish the Borrower with a certificate setting forth, in reasonable detail, the basis  for determining the amount to be paid to it hereunder.         SECTION 2.19.     Letters of Credit.                (a)   Issuance of Letters of Credit.  The Borrower may at any time prior to the  Maturity Date request the issuance of a Letter of Credit for its own account or any Subsidiary, or  the  amendment  or  extension  of  an  existing  Letter  of  Credit,  by  delivering  or  transmitting  electronically  to  the  Issuing  Bank  (with  a  copy  to  the  Administrative  Agent)  a  completed  application for letter of credit, or request for such amendment or extension, as applicable, in such  form as the Issuing Bank may specify from time to time by no later than 10:00 a.m. at least five  (5) Business Days, or such shorter period as may be agreed to by the Issuing Bank, in advance of  the proposed date of issuance.  The Borrower shall authorize and direct the Issuing Bank to name  the Borrower or any Subsidiary as the “Applicant” or “Account Party” of each Letter of Credit.   Promptly after receipt of any letter of credit application, the Issuing Bank shall confirm with the  Administrative Agent (by telephone or in writing) that the Administrative Agent has received a  copy  of  such  Letter  of  Credit  application  and  if  not,  such  Issuing  Bank  will  provide  the  Administrative Agent with a copy thereof.              41  

 

                     (i)   Unless  the  Issuing  Bank  has  received  notice  from  any  Lender  or              the Administrative Agent, at least one day prior to the requested date of issuance,              amendment  or  extension  of  the  applicable  Letter  of  Credit,  that  one  or  more              applicable conditions in Article IV is not satisfied, then, subject to the terms and              conditions hereof and in reliance on the agreements of the other Lenders set forth              in this Section 2.19, the Issuing Bank or any of the Issuing Bank’s Affiliates will              issue  the  proposed  Letter  of  Credit  or  agree  to  such  amendment  or  extension,              provided that each Letter of Credit shall (A) have a maximum maturity of twelve              (12) months from the date of issuance, and (B) in no event expire later than the              Maturity Date and provided further that in no event shall (i) the Letter of Credit              Obligations  exceed,  at  any  one  time,  $50,000,000  (the  “Letter  of  Credit              Sublimit”)  or  (ii) the  Revolving  Credit  Exposure  exceed,  at  any  one  time,  the              Commitments.   Each  request  by  the  Borrower  for  the  issuance,  amendment  or              extension  of  a  Letter  of  Credit  shall  be  deemed  to  be  a  representation  by  the              Borrower  that  it  shall  be  in  compliance  with  the  preceding  sentence  and  with              Article IV after giving effect to the requested issuance, amendment or extension              of such Letter of Credit.  Promptly after its delivery of any Letter of Credit or any              amendment to a Letter of Credit to the beneficiary thereof, the applicable Issuing              Bank will also deliver to the Borrower and the Administrative Agent a true and              complete copy of such Letter of Credit or amendment.                     (ii)  Notwithstanding Section 2.19(a)(i), the  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 the Issuing Bank from issuing the Letter of Credit, or any law              applicable to the Issuing Bank or any request or directive (whether or not having              the  force  of  law)  from  any  Governmental  Authority  with  jurisdiction  over  the              Issuing  Bank  shall  prohibit,  or  request  that  the  Issuing  Bank  refrain  from,  the              issuance of letters of credit generally or the Letter of Credit in particular or shall              impose upon the Issuing Bank with respect to the Letter of Credit any restriction,              reserve  or  capital  requirement  (for  which  the  Issuing  Bank  is  not  otherwise              compensated hereunder) not in effect on the Effective Date, or shall impose upon              the  Issuing  Bank  any  unreimbursed  loss,  cost  or  expense  which  was  not              applicable on the Effective Date and which the Issuing Bank in good faith deems              material to it, or (ii) the issuance of the Letter of Credit would violate one or more              policies of the Issuing Bank applicable to letters of credit generally.               (b)   Letter of Credit Fees.   The Borrower shall pay  (i)  to the Administrative  Agent for the account of each Lender a participation fee with respect to its participations in each  outstanding Letter of Credit, which shall accrue on the daily maximum amount then available to  be drawn under such Letter of Credit at the same Applicable Rate used to determine the interest  rate applicable to Eurodollar Loans, during the period from and including the Effective Date to  but excluding the later of the date on which such Lender’s Commitment terminates and the date  on which such Lender ceases to have any LC Exposure and (ii) to the Issuing Bank for its own  account  a fronting fee equal to 0.125% per annum on the daily  amount  available to be drawn  under each Letter of Credit.  All Letter of Credit Fees and fronting fees shall be computed on the  basis of a year of 360 days and actual days elapsed and shall be payable quarterly in arrears on              42  

 

   each Interest Payment Date following issuance of each Letter of Credit.  The Borrower shall also  pay  to  the  Issuing  Bank  for the  Issuing  Bank’s  sole  account  the  Issuing  Bank’s  then  in  effect  customary fees and administrative expenses payable with respect to the Letters of Credit as the  Issuing Bank may generally charge or incur from time to time in connection with the issuance,  maintenance,  amendment  (if  any),  assignment  or  transfer  (if  any), negotiation,  and  administration of Letters of Credit.               (c)   Disbursements, Reimbursement.  Immediately upon the issuance of each  Letter  of  Credit,  each  Lender  shall  be  deemed  to,  and  hereby  irrevocably  and  unconditionally  agrees  to,  purchase  from  the  Issuing  Bank  a  participation  in  such  Letter  of  Credit  and  each  drawing thereunder in an amount equal to such Lender’s Applicable Percentage of the maximum  amount  available  to  be  drawn  under  such  Letter  of  Credit  and  the  amount  of  such  drawing,  respectively.                     (i)   In the event of any request for a drawing under a Letter of Credit              by the beneficiary or transferee thereof, the Issuing Bank will promptly notify the              Borrower  and  the  Administrative  Agent  thereof.   Provided  that  it  shall  have              received such notice, the Borrower shall reimburse (such obligation to reimburse              the  Issuing  Bank  shall  sometimes  be  referred  to  as  a  “Reimbursement              Obligation”) the Issuing Bank prior to 12:00 noon on each date that an amount is              paid by the Issuing Bank under any Letter of Credit (each such date, a “Drawing              Date”) by paying to the Administrative Agent for the account of the Issuing Bank              an  amount  equal  to  the  amount  so  paid  by  the  Issuing  Bank.   In  the  event  the              Borrower fails to reimburse the Issuing Bank (through the Administrative Agent)              for the full amount of any drawing under any Letter of Credit by 12:00 noon on              the  Drawing  Date,  the  Administrative  Agent  will  promptly  notify  each  Lender              thereof,  and  the  Borrower  shall  be  deemed  to  have  requested  that  Revolving              Credit Loans be made by the Lenders under the Base Rate Option to be disbursed              on  the  Drawing  Date  under  such  Letter  of  Credit,  subject  to  the  amount  of  the              unutilized  portion  of  the  Revolving  Credit  Commitment  and  subject  to  the              conditions  set  forth  in  Section 4.02  other  than  any  notice  requirements.   Any              notice  given  by  the  Administrative  Agent  or  Issuing  Bank  pursuant  to  this              Section 2.19(c)(i) may be oral if immediately confirmed in writing; provided that              the lack of such an immediate confirmation shall not affect the conclusiveness or              binding effect of such notice.                     (ii)  Each  Lender  shall  upon  any  notice  pursuant  to  Section 2.19(c)(i)              make available to the Administrative Agent for the account of the Issuing Bank an              amount in immediately available funds equal to its Applicable Percentage of the              amount  of  the  drawing,  whereupon  the  participating  Lenders  shall  (subject  to              Section 2.19(c)) each be deemed to have made an ABR Loan to the Borrower in              that  amount.   If  any  Lender  so  notified  fails  to  make  available  to  the              Administrative  Agent  for  the  account  of  the  Issuing  Bank  the  amount  of  such              Lender’s Applicable Percentage of such amount by no later than 2:00 p.m. on the              Drawing  Date,  then  interest  shall  accrue  on  such  Lender’s  obligation  to  make              such payment, from the Drawing Date to the date on which such Lender makes              such payment (i) at a rate per annum equal to the Federal Funds Effective Rate              43  

 

                 during the first three (3) days following the Drawing Date and (ii) at a rate per   annum equal to the Alternate Base Rate on and after the fourth day following the   Drawing  Date.   The  Administrative  Agent  and  the  Issuing  Bank  will  promptly   give  notice  (as  described  in  Section  2.19(c)(i)  above)  of  the  occurrence  of  the   Drawing Date, but failure of the Administrative Agent or the Issuing Bank to give   any such notice on the Drawing Date or in sufficient time to enable any Lender to   effect such payment on such date shall not relieve such Lender from its obligation   under this Section 2.19(c)(ii).          (iii) With  respect  to  any  unreimbursed  drawing  that  is  not  converted   into  ABR  Loans  to  the  Borrower  in  whole  or  in  part  as  contemplated  by   Section 2.19(c)(i), because of the Borrower’s failure to satisfy the conditions set   forth in Section 4.02 other than any notice requirements, or for any other reason,   the  Borrower  shall  be  deemed  to  have  incurred  from  the  Issuing  Bank  a   borrowing  (each  a  “Letter  of  Credit  Borrowing”)  in  the  amount  of  such   drawing.  Such Letter of Credit Borrowing shall be due and payable on demand   (together with interest) and shall bear interest at the rate per annum applicable to   the  ABR  Loans.   Each  Lender’s  payment  to  the  Administrative  Agent  for  the   account of the Issuing Bank pursuant to Section 2.19(c)  shall be deemed to be a   payment in respect of its participation in such Letter of Credit Borrowing (each a   “Participation  Advance”)  from  such  Lender  in  satisfaction  of  its  participation   obligation under this Section 2.19(c).    (d)   Repayment of Participation Advances.          (i)   Upon (and only upon) receipt by the Administrative Agent for the   account  of the  Issuing  Bank  of  immediately  available  funds  from  the  Borrower   (i) in reimbursement of any payment made by the Issuing Bank under the Letter   of Credit with respect to which any Lender has made a Participation Advance to   the Administrative Agent, or (ii) in payment of interest on such a payment made   by the Issuing Bank under such a Letter of Credit, the Administrative Agent on   behalf of the  Issuing  Bank will pay to each  Lender, in the same funds as those   received  by  the  Administrative  Agent,  the  amount  of  such  Lender’s  Applicable   Percentage  of  such  funds,  except  the  Administrative  Agent  shall  retain  for  the   account  of  the  Issuing  Bank  the  amount  of  the  Applicable  Percentage  of  such   funds of any Lender that did not make a Participation Advance in respect of such   payment by the Issuing Bank.          (ii)  If the Administrative Agent is required at any time to return to the   Borrower,  or  to  a  trustee,  receiver,  liquidator,  custodian,  or  any  official  in   connection  with  a  Bankruptcy  Event,  any  portion  of  any  payment  made  by  the   Borrower  to  the  Administrative  Agent  for  the  account  of  the  Issuing  Bank   pursuant to this Section in reimbursement of a payment made under any Letter of   Credit  or  interest  or  fees  thereon,  each  Lender  shall,  on  demand  of  the   Administrative  Agent,  forthwith  return  to  the  Administrative  Agent  for  the   account  of  the  Issuing  Bank  the  amount  of  its  Applicable  Percentage  of  any   amounts so returned by the Administrative Agent plus interest thereon from the   44  

 

               date such demand is made to the date such amounts are returned by such Lender              to  the  Administrative  Agent,  at  a  rate  per  annum  equal  to  the  Federal  Funds              Effective Rate in effect from time to time.               (e)   Documentation.   The  Borrower  agrees  to  be  bound  by  the  terms  of  the  Issuing  Bank’s  application  and  agreement  for  letters  of  credit  and  the  Issuing  Bank’s  written  regulations and customary practices relating to letters of credit, though such interpretation may  be different  from the Borrower’s  own.   In the event of a conflict between such  application or  agreement and this Agreement, this Agreement shall govern.  It is understood and agreed that,  except in the case of gross negligence or willful misconduct, the Issuing Bank shall not be liable  for any error, negligence and/or mistakes, whether of omission or commission, in following the  Borrower’s  instructions  or  those  contained  in  the  Letters  of  Credit  or  any  modifications,  amendments or supplements thereto.               (f)   Determinations  to  Honor  Drawing  Requests.   In  determining  whether  to  honor any request for drawing under any Letter of Credit by the beneficiary thereof, the Issuing  Bank shall be responsible only to determine that the documents and certificates required to be  delivered under such Letter of Credit have been delivered and that they comply on their face with  the requirements of such Letter of Credit.               (g)   Nature  of  Participation  and  Reimbursement  Obligations.   Each  Lender’s  obligation in accordance with this Agreement to make the Loans or Participation Advances, as  contemplated  by  Section 2.19(c),  as  a  result  of  a  drawing  under  a  Letter  of  Credit,  and  the  Obligations of the Borrower to reimburse the Issuing Bank upon a draw under a Letter of Credit,  shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance  with  the  terms  of  this  Section 2.19  under  all  circumstances,  including  the  following  circumstances:                     (i)   any  set-off,  counterclaim,  recoupment,  defense  or  other  right              which such Lender may have against the Issuing Bank or any of its Affiliates, the              Borrower or any other Person for any reason whatsoever, or which the Borrower              may  have  against  the  Issuing  Bank  or  any  of  its  Affiliates,  any  Lender  or  any              other Person for any reason whatsoever;                     (ii)  the  failure  of  the  Borrower  or  any  other  Person  to  comply,  in              connection  with  a  Letter  of  Credit  Borrowing,  with  the  conditions  set  forth  in              Sections 2.01, 2.02, 2.03, 2.04, 4.02 or as otherwise set forth in this Agreement              for  the  making  of  a  Loan,  it  being  acknowledged  that  such  conditions  are  not              required for the making of a Letter of Credit Borrowing and the obligation of the              Lenders to make Participation Advances under Section 2.19(c);                     (iii) any lack of validity or enforceability of any Letter of Credit;                     (iv)  any  claim  of  breach  of  warranty  that  might  be  made  by  the              Borrower  or  any  Lender  against  any  beneficiary  of  a  Letter  of  Credit,  or  the              existence of any claim, set-off, recoupment, counterclaim, crossclaim, defense or              other  right  which  the  Borrower  or  any  Lender  may  have  at  any  time  against  a              45  

 

                 beneficiary,  successor  beneficiary  any  transferee  or  assignee  of  any  Letter  of   Credit or the proceeds thereof (or any Persons for whom any such transferee may   be acting), the Issuing Bank or its Affiliates or any Lender or any other Person,   whether in connection with this Agreement, the transactions contemplated herein   or  any  unrelated  transaction  (including  any  underlying  transaction  between  the   Borrower  or  Subsidiaries  of  the  Borrower  and  the  beneficiary  for  which  any   Letter of Credit was procured);          (v)   the lack of power or authority of any signer of (or any defect in or   forgery  of  any  signature  or  endorsement  on)  or  the  form  of  or  lack  of  validity,   sufficiency,  accuracy,  enforceability  or  genuineness  of  any  draft,  demand,   instrument,  certificate or  other document  presented  under  or  in  connection  with   any Letter of Credit, or any fraud or alleged fraud in connection with any Letter of   Credit, or the transport of any property or provision of services relating to a Letter   of Credit, in each case even if the Issuing Bank or any of its Affiliates has been   notified thereof;          (vi)  payment  by  the  Issuing  Bank  or  any  of  its  Affiliates  under  any   Letter  of  Credit  against  presentation  of  a  demand,  draft  or  certificate  or  other   document which does not comply with the terms of such Letter of Credit;          (vii) the solvency of, or any acts or omissions by, any beneficiary of any   Letter of Credit, or any other Person having a role in any transaction or obligation   relating to a Letter of Credit, or the existence, nature, quality, quantity, condition,   value  or  other  characteristic  of  any  property  or  services  relating  to  a  Letter  of   Credit;          (viii) any failure by the Issuing Bank or any of its Affiliates to issue any   Letter of Credit in the form requested by the Borrower, unless the Issuing Bank   has  received  written  notice  from  the  Borrower  of  such  failure  within  three   Business Days after the Issuing Bank shall have furnished the Borrower and the   Administrative Agent a copy of such Letter of Credit and such error is material   and no drawing has been made thereon prior to receipt of such notice;          (ix)  any adverse change in the business, operations, properties, assets,   condition (financial or otherwise) or prospects of the Borrower or Subsidiaries of   the Borrower;          (x)   any breach of this Agreement or any other Loan Document by any   party thereto;          (xi)  the occurrence or continuance of a Bankruptcy Event with respect   to the Borrower;          (xii) the fact that an Event of Default or a Default shall have occurred   and be continuing;    46  

 

                     (xiii) the fact that the Maturity Date shall have passed or this Agreement              or the Commitments hereunder shall have been terminated; and                     (xiv) any  other  circumstance  or  happening  whatsoever,  whether  or  not              similar to any of the foregoing.               (h)   Indemnity.   The  Borrower  hereby  agrees  to  protect,  indemnify,  pay  and  save harmless the Issuing Bank and any of its Affiliates that has issued a Letter of Credit from  and  against  any  and  all  claims,  demands,  liabilities,  damages,  taxes,  penalties,  interest,  judgments,  losses,  costs,  charges  and  expenses  (including  reasonable  fees,  expenses  and  disbursements of counsel and allocated costs of internal counsel) which the Issuing Bank or any  of its Affiliates may incur or be subject to as a consequence, direct or indirect, of the issuance of  any Letter of Credit, other than as a result of the gross negligence or willful misconduct of the  Issuing  Bank  as  determined  by  a  final  non-appealable  judgment  of  a  court  of  competent  jurisdiction.               (i)   Liability  for  Acts  and  Omissions.   As  between  the  Borrower  and  the  Issuing  Bank,  or the  Issuing  Bank’s Affiliates, the  Borrower assumes  all  risks of the  acts  and  omissions of, or misuse of the Letters of Credit by, the respective beneficiaries of such Letters of  Credit.   In  furtherance  and  not  in  limitation  of  the  foregoing,  the  Issuing  Bank  shall  not  be  responsible for any of the following, including any losses or damages to the Borrower or other  Person or property relating therefrom:  (i) the form, validity, sufficiency, accuracy, genuineness  or legal effect of any document submitted by any party in connection with the application for an  issuance of any such Letter of Credit, even if it should in fact prove to be in any or all respects  invalid, insufficient, inaccurate, fraudulent or forged (even if the Issuing Bank or its Affiliates  shall have been notified thereof); (ii) the validity or sufficiency of any instrument transferring or  assigning or purporting to transfer or assign any such Letter of Credit or the rights or benefits  thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective  for any reason; (iii) the failure of the beneficiary of any such Letter of Credit, or any other party  to which such Letter of Credit may be transferred, to comply fully with any conditions required  in order to draw upon such Letter of Credit or any other claim of the Borrower or any Subsidiary  against any beneficiary of such Letter of Credit, or any such transferee, or any dispute between  or among the Borrower or any Subsidiary and any beneficiary of any Letter of Credit or any such  transferee;  (iv) errors,  omissions,  interruptions  or  delays  in  transmission  or  delivery  of  any  messages,  by  mail,  cable,  telegraph,  telex  or  otherwise,  whether  or  not  they  be  in  cipher;  (v) errors  in  interpretation  of  technical  terms;  (vi) any  loss  or  delay  in  the  transmission  or  otherwise of any document required in order to make a drawing under any such Letter of Credit  or of the proceeds thereof; (vii) the misapplication by the beneficiary of any such Letter of Credit  of the proceeds of any drawing under such Letter of Credit; or (viii) any consequences arising  from causes beyond the control of the Issuing Bank or its Affiliates, as applicable, including any  act or omission of any Governmental Authority, and none of the above shall affect or impair, or  prevent  the  vesting  of,  any  of  the  Issuing  Bank’s  or  its  Affiliates  rights  or  powers  hereunder.   Nothing in the preceding sentence shall relieve  the  Issuing  Bank from  liability  for the  Issuing  Bank’s gross negligence or willful misconduct in connection with actions or omissions described  in  such  clauses  (i)  through  (viii)  of  such  sentence.   In  no  event  shall  the  Issuing  Bank  or  its  Affiliates  be  liable  to  the  Borrower  for  any  indirect,  consequential,  incidental,  punitive,              47  

 

   exemplary  or  special  damages  or  expenses  (including  attorneys’  fees),  or  for  any  damages  resulting from any change in the value of any property relating to a Letter of Credit.               Without limiting the generality of the foregoing, the Issuing Bank and each of its  Affiliates (i) may rely on any oral or other communication believed in good faith by the Issuing  Bank or such Affiliate to have been authorized or given by or on behalf of the applicant for a  Letter of Credit, (ii) may honor any presentation if the documents presented appear on their face  substantially to comply with the terms and conditions of the relevant Letter of Credit; (iii) may  honor a previously dishonored presentation under a Letter of Credit, whether such dishonor was  pursuant to a court order, to settle or compromise any claim of wrongful dishonor, or otherwise,  and  shall  be  entitled  to  reimbursement  to  the same extent  as  if  such  presentation  had  initially  been honored, together with any interest paid by the Issuing Bank or its Affiliate; (iv) may honor  any drawing that is payable upon presentation of a statement advising negotiation or payment,  upon receipt of such statement (even if such statement indicates that a draft or other document is  being  delivered  separately),  and  shall  not  be  liable  for  any  failure  of  any  such  draft  or  other  document to arrive, or to conform in any way with the relevant Letter of Credit; (v) may pay any  paying or negotiating bank claiming that it rightfully honored under the laws or practices of the  place where such bank is located; and (vi) may settle or adjust any claim or demand made on the  Issuing Bank or its Affiliate in any way related to any order issued at the applicant’s request to  an air carrier, a letter of guarantee or of indemnity issued to a carrier or any similar document  (each  an  “Order”)  and  honor any  drawing  in  connection  with  any  Letter of Credit  that  is the  subject  of  such  Order,  notwithstanding  that  any  drafts  or  other  documents  presented  in  connection with such Letter of Credit fail to conform in any way with such Letter of Credit.               In  furtherance  and  extension  and not in  limitation  of  the  specific  provisions  set  forth  above,  any  action  taken  or  omitted  by  the  Issuing  Bank  or  its  Affiliates  under  or  in  connection  with  the  Letters  of Credit  issued  by  it  or any  documents  and  certificates  delivered  thereunder, if taken or omitted in good faith, shall not put the Issuing Bank or its Affiliates under  any resulting liability to the Borrower or any Lender.               (j)  Issuing  Bank  Reporting  Requirements.   Each  Issuing  Bank  shall,  on  the  first Business Day of each month, provide to Administrative Agent and Borrower a schedule of  the  Letters  of Credit issued by it, in  form  and substance satisfactory to  Administrative Agent,  showing the date of issuance of each Letter of Credit, the account party, the original face amount  (if  any),  and  the  expiration  date  of  any  Letter  of  Credit  outstanding  at  any  time  during  the  preceding  month,  and  any  other  information  relating  to  such  Letter  of  Credit  that  the  Administrative Agent may request.                                    ARTICLE III                                                              REPRESENTATIONS AND WARRANTIES               The Borrower represents and warrants to the Lenders that:         SECTION 3.01.     Due  Organization,  Authorization,  Etc.   The  Borrower  and  each  Subsidiary (a) is a corporation duly organized, validly existing and in good standing under the  laws of its state of incorporation, (b) is duly qualified to do business and in good standing in each              48  

 

   jurisdiction  where,  because  of  the  nature  of  its  activities  or  properties,  such  qualification  is  required, which jurisdictions are set forth with respect to the Borrower and each Subsidiary on  Schedule  3.01,  (c)  has  the  requisite  corporate  power  and  authority  and  the  right  to  own  and  operate its properties, to lease the property it operates under lease, and to conduct its business as  now and proposed to be conducted, and (d) has obtained all material licenses, permits, consents  or approvals from or by, and has made all filings with, and given all notices to, all Governmental  Authorities having jurisdiction, to the extent required for such ownership, operation and conduct  (including,  without  limitation,  the  consummation  of  the  transactions  contemplated  by  this  Agreement)  as  to  each  of  the  foregoing  except  where  the  failure  to  do  so  would  not  have  a  Material  Adverse  Effect  on  the  Borrower,  or  on  the  Borrower  and  its  Subsidiaries  taken  as  a  whole.   The  execution,  delivery  and  performance  by  the  Borrower  of  this  Agreement  and  the  consummation  of  the  transactions  contemplated  hereby  and  thereby  are  within  its  corporate  powers,  have  been  duly  authorized  by  all  necessary  corporate  action  (including,  without  limitation,  shareholder  approval,  if  required)  and  do  not  contravene  or  conflict  with  the  Borrower’s articles of incorporation or bylaws.  Each of the Borrower and its Subsidiaries has  received all material governmental and other consents and approvals (if any shall be required)  necessary  for  such  execution,  delivery  and  performance,  and  such  execution,  delivery  and  performance  do  not  and  will  not  contravene  or  conflict  with,  or  create  a  Lien  or  right  of  termination  or  acceleration  under,  any  Requirement  of  Law or  Contractual  Obligation  binding  upon the Borrower or such Subsidiaries.  This Agreement and each of the Loan Documents is (or  when  executed and delivered will be) the legal,  valid, and binding obligation of the Borrower  enforceable  against  the  Borrower  in  accordance  with  its  respective  terms; provided  that  the  Borrower  assumes  for  purposes  of  this  Section  3.01  that  this  Agreement  and  the  other  Loan  Documents have been validly executed and delivered by each of the parties thereto other than the  Borrower.         SECTION 3.02.     Statutory Financial Statements.  (a)  The Annual Statement of each  of the Insurance Subsidiaries as filed with the appropriate Governmental Authority of its state of  domicile (the “Department”) and delivered to each Lender prior to the execution and delivery of  this Agreement, as of and for the 2017 and 2018 Fiscal Years and as of and for the Fiscal Quarter  ended March 31, 2019 (collectively, the “Statutory Financial Statements”), have been prepared  in  accordance  with  SAP  applied  on  a  consistent  basis  (except  as  noted  therein).   Each  such  Statutory Financial Statement was in material compliance with applicable law when filed.  The  Statutory  Financial  Statements  fairly  present  the  financial  position,  the  results  of  operations,  changes in equity and changes in financial position of each such Insurance Subsidiary as of and  for  the  respective  dates  and  periods  indicated  therein  in  accordance  with  SAP  applied  on  a  consistent basis, except as set forth in the notes thereto or on Schedule  3.02(a).  All books of  account  of  each  of  the  Insurance  Subsidiaries  fully  and  fairly  disclose  all  of  the  transactions,  properties, assets, investments, liabilities and obligations of such Insurance Subsidiary and all of  such  books  of  account  are  in  the  possession  of  each  such  Insurance  Subsidiary  and  are  true,  correct and complete in all material respects.               (b)   The investments of Insurance Subsidiaries reflected in the Annual        Statements filed with the respective Departments with respect to the 2017 Fiscal        Year  (the  “2017  Annual  Statement”),  the 2018 Fiscal  Year  (the  “2018  Annual        Statement”) and  the  March  31,  2019  Quarterly  Statement  (the  “2019  Quarterly        Statement”)  comply  in  all  material  respects  with  all  applicable  requirements  of              49  

 

         the Department with respect to each such Insurance Subsidiary as well as those of        any other applicable jurisdiction relating to investments in respect of which it may        invest its funds.               (c)   Marketable  securities  and  short  term  investments  reflected  in  the        2017  Annual  Statement,  the  2018  Annual  Statement  and  in  the  2019  Quarterly        Statement  of  each  Insurance  Subsidiary  are  valued  at  cost,  amortized  cost  or        market value, as required by applicable law.               (d)   There  has  been  no  event  or  occurrence  which  has  had  or  could        reasonably be expected to have a Material Adverse Effect on the Borrower, or on        the Borrower and its Subsidiaries taken as a whole, since March 31, 2019.         SECTION 3.03.     GAAP  Financial  Statements.   (a)  The  Borrower  has  furnished  to  the  Administrative  Agent  and  each  of  the  Lenders  (i)  a  copy  of  the  unaudited  consolidated  balance sheets of the Borrower and its Subsidiaries, and the balance sheet of the Borrower on an  unconsolidated basis as of March 31, 2019 and the related consolidated statements of income and  cash flows for that portion of the Fiscal Year ending as of the close of March 31, 2019 and (ii) a  copy of the unaudited consolidated statement of income of the Borrower and its Subsidiaries, and  the  statement  of  income  of  the  Borrower  on  an  unconsolidated  basis,  for  March 31,  2019,  all  prepared  in  accordance  with  GAAP  (subject  to  normal  year-end  adjustments  and  except  that  footnote and schedule disclosures are abbreviated) which financial statements are complete and  correct  and  present  fairly  in  accordance  with  GAAP  (subject  to  normal  year-end  adjustments)  consolidated or unconsolidated, as the case may be results of operations and cash flows of the  Borrower as of March 31, 2019 and the period then ended.               (b)   The Borrower has provided to the Administrative Agent and each        Lender  a  copy  of  the  annual  audited  consolidated  financial  statements  of  the        Borrower  and  its  Subsidiaries,  consisting  of  consolidated  balance  sheets  and        consolidated statements of income and retained earnings and cash flows, setting        forth  in  comparative  form  in  each  case  the  consolidated  figures  for  the  years        ended  December  31,  2017  and  December  31,  2018,  which  financial  statements        have  been  prepared  in  accordance  with  GAAP  and  certified  without  material        qualification by KPMG LLP.  Such financial statements are complete and correct        and present  fairly  in accordance with GAAP  the consolidated financial  position        and the consolidated results of operations and cash flows of the Borrower and its        Subsidiaries as at the end of such year and for the period then ended.               (c)   With respect to any representation and warranty which is deemed        to be made after the date hereof by the Borrower, the balance sheet and statements        of  operations,  of  shareholders’  equity  and  of  cash  flow,  which  as  of  such  date        shall most recently have been furnished by or on behalf of the Borrower to each        Lender  for  the  purposes  of  or  in  connection  with  this  Agreement  or  any        transaction  contemplated  hereby,  shall  have  been  prepared  in  accordance  with        GAAP consistently applied (except as disclosed therein), and shall present fairly        the consolidated financial condition of the corporations covered thereby as at the               50  

 

         dates thereof for the periods then ended, subject, in the case of quarterly financial        statements, to normal year-end audit adjustments.         SECTION 3.04.     Litigation  and  Contingent  Liabilities.   Except  as  set  forth  (including  estimates  of  the  dollar  amounts  involved)  in  Schedule  3.04  hereto  and  except  for  claims  which  are  covered  by  Insurance  Policies,  coverage  for  which  has  not  been  denied  in  writing, or which  relate to insurance policies or  surety  contracts issued by  the Borrower or to  which  it  is  a party,  reinsurance  treaties,  reinsurance certificates,  or any  other  such  agreements  entered into by the Borrower in the ordinary course of business (referred to herein as “Ordinary  Course  Litigation”),  no  claim,  litigation  (including,  without  limitation,  derivative  actions),  arbitration, governmental investigation or proceeding or inquiry is pending or threatened against  the Borrower or any of its Subsidiaries (i) which would, if adversely determined, have a Material  Adverse Effect on the Borrower, or on the Borrower and its Subsidiaries taken as a whole or (ii)  which relates to any of the transactions contemplated hereby, and there is no basis known to the  Borrower for any of the foregoing.  Other than any liability incident to such claims, litigation or  proceedings, the Borrower has no material Contingent Liabilities not provided for or referred to  in the financial statements delivered pursuant to Section 3.03.         SECTION 3.05.     Investment  Company  Act.   Other  than  Horace  Mann  Investors,  Inc., neither the Borrower nor any of its Subsidiaries is an “investment company” or a company  “controlled by an investment company,” within the meaning of the Investment Company Act of  1940, as amended.         SECTION 3.06.     Regulations  T,  U  and  X.   Neither  the  Borrower  nor  any  of  its  Subsidiaries  is  engaged  principally,  or  as  one  of  its  important  activities,  in  the  business  of  extending credit for the purpose of purchasing or carrying margin stock.  None of the Borrower,  any of its Subsidiaries or any Person acting on their behalf has taken or will take action to cause  the execution, delivery or performance of this Agreement or the Notes, the making or existence  of the Loans or the use of proceeds of the Loans or any Letter of Credit to violate Regulations T,  U or X of the Board.         SECTION 3.07.     Proceeds.  The proceeds of the Loans will be used to fund ongoing  working capital, capital expenditures, and for general corporate purposes (including acquisitions  permitted by this Agreement).  None of such proceeds or any  Letter of Credit will be used in  violation of applicable law, and none of such proceeds will be used, directly or indirectly, for the  purpose, whether immediate, incidental or ultimate, of buying or carrying any margin stock as  defined in Regulation U of the Board.         SECTION 3.08.     Insurance.  The Borrower and its Subsidiaries maintain Insurance  Policies  to  such  extent  and  against  such  hazards  and  liabilities  as  is  required  by  law  or  customarily maintained by prudent companies similarly situated.         SECTION 3.09.     Accuracy  of  Information.   All  factual  written  information  furnished heretofore or contemporaneously herewith by or on behalf of the Borrower or any of  its Subsidiaries to the Administrative Agent or the Lenders for purposes of or in connection with  this  Agreement  or  any  of  the  transactions  contemplated  hereby,  as  supplemented  to  the  date  hereof, is and all other such factual written information hereafter furnished by or on behalf of the              51  

 

   Borrower or any of its Subsidiaries to the Administrative Agent or the Lenders will be, true and  accurate in every material respect on the date as of which such information is dated or certified  and not incomplete by omitting to state any material fact necessary to make such information not  misleading.         SECTION 3.10.     Subsidiaries.  As of the  Effective  Date, Schedule 3.10 contains a  complete  list  of  the  Borrower’s  Subsidiaries  and  indicates  which  Subsidiaries  are  Material  Insurance Subsidiaries.         SECTION 3.11.     Insurance Licenses.  Except as set forth on Schedule 3.11, to the  best  of  the  Borrower’s  knowledge,  no  license  (including,  without  limitation,  licenses  or  certificates  of  authority  from  applicable  insurance  departments),  permits  or  authorizations  to  transact  insurance  and  reinsurance  business  (collectively,  the  “Licenses”)  is  the  subject  of  a  proceeding for suspension or revocation or any similar proceedings, there is no sustainable basis  for such a suspension or revocation, and no such suspension or revocation is threatened by any  state insurance department.         SECTION 3.12.     Taxes.   The  Borrower  and  each  of  its  Subsidiaries  has  filed  all  material  Tax  returns  and  reports  that  are  required  to  be  filed  by  it,  and  has  paid  or  provided  adequate  reserves  for  the  payment  of  all  material  Taxes  payable  by  it  that  have  become  due,  other than those that are not yet delinquent and are being contested in good faith by appropriate  proceedings and with respect to which reserves have been established, and are being maintained,  in accordance with GAAP.          SECTION 3.13.     Compliance  with  Laws.   Neither  the  Borrower  nor  any  of  its  Subsidiaries  is  in  violation  of  any  law,  ordinance,  rule,  regulation,  order,  policy,  guideline  or  other requirement of any Governmental Authority (including, without limitation, ERISA, margin  regulations, Anti-Terrorism Laws, the Act or environmental laws), if the effect of such violation  could  reasonably  be  expected  to  have  a  Material  Adverse  Effect  on  the  Borrower,  or  on  the  Borrower and its Subsidiaries taken as a whole and, to the best of the Borrower’s knowledge, no  such violation has been alleged and each of the Borrower and its Subsidiaries (a) has filed in a  timely  manner  all  reports,  documents  and  other  materials  required  to  be  filed  by  it  with  any  Governmental  Authority,  if  such  failure  to  so  file  could  reasonably  be  expected  to  have  a  Material  Adverse  Effect  on  the  Borrower,  or  on  the  Borrower  and  its  Subsidiaries  taken  as  a  whole; and the information contained in each of such filings is true, correct and complete in all  material  respects  and  (b)  has  retained  all  records  and  documents  required  to  be  retained  by  it  pursuant to any law, ordinance, rule, regulation, order, policy, guideline or other requirement of  any  Governmental  Authority,  if  the  failure  to  so  retain  such  records  and  documents  could  reasonably be expected to have a Material Adverse Effect on the Borrower, or on the Borrower  and its Subsidiaries taken as a whole.         SECTION 3.14.     No Default.  Neither the Borrower nor any Subsidiary is in default  under  or  with  respect  to  any  Contractual  Obligation  that  could,  either  individually  or  in  the  aggregate, reasonably be expected to have a Material Adverse Effect.  No Default has occurred  and is continuing or would result from the consummation of the transactions contemplated by  this Agreement or any other Loan Document.               52  

 

         SECTION 3.15.     Ownership  of  Property;  Liens.   Each  of  the  Borrower  and  each  Subsidiary has good record and marketable title in fee simple to, or valid leasehold interests in,  all property necessary or used in the ordinary conduct of its business, except for such defects in  title as  could  not,  individually  or  in  the  aggregate,  reasonably  be  expected  to  have  a Material  Adverse Effect.  The property of the Borrower and its Subsidiaries is subject to no Liens, other  than Liens permitted by Section 6.08.         SECTION 3.16.     Anti-Terrorism  Laws  and  Sanctions.   No  Covered  Entity  is  a  Sanctioned Person, and (ii) no Covered Entity, either in its own right or through any third party,  (a) has  any of its assets in a Sanctioned Country or in the possession, custody or control  of a  Sanctioned  Person  in  violation  of  any  Anti-Terrorism  Law,  (b)  does  business  in  or  with,  or  derives any of its income from investments in or transactions with, any Sanctioned Country or  Sanctioned  Person  in  violation  of  any  Anti-Terrorism  Law;  or  (c)  engages  in  any  dealings  or  transactions prohibited by any Anti-Terrorism Law.         SECTION 3.17.     EEA Financial Institutions.  The Borrower is not an EEA Financial  Institution.         SECTION 3.18.     Certificate of Beneficial Ownership.  The Certificate of Beneficial  Ownership executed and delivered to the Administrative Agent and Lenders for the Borrower on  or  prior  to  the  date  of  this  Agreement,  as  updated  from  time  to  time  in  accordance  with  this  Agreement, is accurate, complete and correct as of the date hereof and as of the date any such  update is delivered.          SECTION 3.19.     Plan Assets; Prohibited Transactions. Neither the Borrower or any  of  its  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 Banks 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)   The Administrative Agent (or its counsel) shall have received from each  party  hereto  either  (i) a  counterpart  of  this  Agreement  signed  on  behalf  of  such  party  or  (ii)  written  evidence  satisfactory  to  the  Administrative  Agent  (which  may  include  telecopy  transmission or email of a PDF (or similar file) of a signed signature page of this Agreement)  that such party has signed a counterpart of this Agreement.              53  

 

               (b)   The Administrative Agent shall have received a favorable written opinion  (addressed to the Administrative Agent and the Lenders and dated the Effective Date) of counsel  for the Borrower, covering such other matters relating to the Borrower, this Agreement or the  Transactions  as  the  Administrative  Agent  shall  reasonably  request.   The  Borrower  hereby  requests such counsel to deliver such opinion.               (c)   The  Administrative  Agent  shall  have  received  such  documents  and  certificates  as  the  Administrative  Agent  or  its  counsel  may  reasonably  request  relating  to  the  organization, existence and good standing of the Borrower, the authorization of the Transactions,  incumbency  and  any  other  legal  matters  relating  to  the  Borrower,  this  Agreement  or  the  Transactions, all in form and substance satisfactory to the Administrative Agent and its counsel.               (d)   The  Administrative  Agent  shall  have  received  a  certificate,  dated  the  Effective  Date  and  signed  by  the  President,  a  Vice  President  or  an  Executive  Officer  of  the  Borrower,  confirming  compliance  with  the  conditions  set  forth  in  paragraphs (a)  and  (b)  of  Section 4.02 and certifying that there has not been a Material Adverse Change since December  31, 2018.               (e)   The Administrative Agent shall have received all fees and other amounts  due  and  payable  on  or  prior  to  the  Effective  Date,  including,  to  the  extent  invoiced,  reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the  Borrower hereunder.               (f)   The  Administrative  Agent  and  each  Lender  shall  have  received,  in  form  and substance acceptable to the Administrative Agent and each Lender an executed Certificate of  Beneficial  Ownership  and  such  other  documentation  and  other  information  requested  in  connection  with  applicable  “know  your  customer”  and  anti-money  laundering  rules  and  regulations, including the USA Patriot Act.               (g)   All consents and regulatory approvals and licenses required to effectuate  the transactions contemplated hereby shall have been obtained and there shall not be any legal or  regulatory prohibitions or restrictions on the transactions contemplated hereby.               (h)   The Credit Agreement dated as of July 30, 2014 among the Borrower, the  lenders party thereto, and JPMorgan Chase Bank, N.A., as administrative agent, shall have been  terminated and repaid in full.                (i)   A duly completed Compliance Certificate as of the last day of the fiscal  quarter  of  Borrower  most  recently  ended  prior  to  the  Closing  Date,  signed  by  an  Executive  Officer  of  Borrower  and  demonstrating  pro  forma  compliance  with  the  covenants  set  forth  in  Sections 6.01, 6.02 and 6.03.               (j)   The Borrower shall have delivered the financial statements referred to in  Section 3.02 and Section 3.03.   The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and  such notice shall be conclusive and binding.              54  

 

         SECTION 4.02.     Each Credit Event.  The obligation of each Lender to make a Loan  on the occasion of any Borrowing and of each 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  Borrower  set  forth  in  this  Agreement  shall  be  true  and  correct  on  and  as  of  the  date  of  such  Borrowing  or  issuance,  amendment or extension of a Letter of Credit before and after giving effect to such Borrowing,  issuance, amendment or extension, and after giving effect to the use of proceeds thereof, except  to  the  extent  that  such  representations  and  warranties  specifically  refer  to  an  earlier  date,  in  which case they shall be true and correct as of the date of such earlier date.               (b)   At  the  time  of  and  immediately  after  giving  effect  to  such  Borrowing,  issuance, amendment or extension, no Default shall have occurred and be continuing.               (c)  Delivery of a Borrowing Request or request for a Letter of Credit in              accordance with Section 2.03 or 2.19, as applicable.   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) and (b) of this Section.                                    ARTICLE V                                                                    AFFIRMATIVE COVENANTS               Until the Commitments have expired or been terminated and the principal of and  interest on each Loan and all fees payable hereunder shall have been paid in full and all Letters  of  Credit  shall  have  expired  or  terminated,  in  each  case,  without  any  pending  draw,  and  all  Reimbursement  Obligations  and  Letter  of  Credit  Borrowings  shall  have  been  reimbursed,  the  Borrower covenants and agrees with the Lenders that:         SECTION 5.01.     Reports,  Certificates  and  Other  Information.   Furnish  or cause to  be furnished to the Administrative Agent and the Lenders:               (a)   GAAP Financial Statements:                     (i)   Within  50  days  after  the  close  of  each  of  the  first  three  Fiscal              Quarters of each Fiscal Year of the Borrower, a copy of its Form 10-Q filed with              the Securities and Exchange Commission and accompanied by the certification of              the chief executive officer, chief financial officer or treasurer of the Borrower that              the  financial  statements  set  forth  therein  are  complete  and  correct  and  present              fairly  in  accordance  with  GAAP  (subject  to  normal  year-end  adjustments)  the              consolidated, or unconsolidated, as the case may be, results of operations and cash              flows of the Borrower as at the end of such Fiscal Quarter and for the period then              ended.                     (ii)  Within 95 days after the close of each Fiscal Year, a copy of the              annual  audited  consolidated  financial  statements  of  the  Borrower  and  its              55  

 

               Subsidiaries,  consisting  of  consolidated  balance  sheets  and  consolidated              statements  of  income  and  retained  earnings  and  cash  flows,  setting  forth  in              comparative  form  in  each  case  the  consolidated  figures  for  the  previous  Fiscal              Year,  which  financial  statements  shall  be  prepared  in  accordance  with  GAAP,              certified  without  material  qualification  by  the  independent  certified  public              accountants regularly retained by the Borrower, or any other firm of independent              certified  public  accountants  of  recognized  national  standing  selected  by  the              Borrower  and  reasonably  acceptable  to  the  Required  Lenders  that  all  such              financial  statements  are  complete  and  correct  and  present  fairly  in  accordance              with  GAAP  the  consolidated  financial  position  and  the  consolidated  results  of              operations and cash flows of the Borrower and its Subsidiaries  as at the end of              such year and for the period then ended.               (b)   Tax  Returns.   If  requested  by  the  Administrative  Agent,  copies  of  all  federal, state, local and foreign Tax returns and reports in respect of income, franchise or other  Taxes on or measured by income (excluding sales, use or like Taxes) filed by the Borrower or  any of its Subsidiaries.               (c)   SAP Financial Statements:                     (i)   Within 5 days after the applicable regulatory filing date for each of              its Fiscal Quarters, but in any event within 50 days after the end of each of the              first three Fiscal Quarters of each Fiscal Year of each Insurance Subsidiary and of              the  Horace  Mann  Group  a  copy  of  the  Quarterly  Statement  of  each  Insurance              Subsidiary and of the Horace Mann Group for such Fiscal Quarter, all prepared in              accordance with SAP and accompanied by the certification of the chief financial              officer or chief executive officer of each Insurance Subsidiary (and with respect to              the  Horace  Mann  Group,  of  Horace  Mann  Insurance  Company)  that  all  such              financial  statements  are  complete  and  correct  and  present  fairly  in  accordance              with SAP the financial position of such Insurance Subsidiary or the Horace Mann              Group, as applicable, for the periods then ended.                     (ii)  Within 5 days after the applicable regulatory filing date for each of              its Fiscal Years, but in any event within 60 days after the end of each Fiscal Year              of each Insurance Subsidiary and of the Horace Mann Group a copy of the Annual              Statement of each Insurance Subsidiary and of the Horace Mann Group for such              Fiscal  Year  prepared  in  accordance  with  SAP  and  accompanied  by  the              certification  of  the  chief  financial  officer  or  chief  executive  officer  of  each              Insurance  Subsidiary  (and  with  respect  to  the  Horace  Mann  Group,  of  Horace              Mann Insurance Company) that such financial statement is complete and correct              and  presents  fairly  in  accordance  with  SAP  the  financial  position  of  such              Insurance  Subsidiary  or  the  Horace  Mann  Group,  as  applicable,  for  the  period              then ended.                     (iii) Within 5 days after the applicable regulatory filing date for each of              its  Fiscal  Years,  but  in  any  event  within  95  days  after  the  close  of  each  Fiscal              Year of each Insurance Subsidiary and the Horace Mann Group a copy  of each              56  

 

               Insurance  Subsidiary’s  and  the  Horace  Mann  Group’s  “Statement  of  Actuarial              Opinion”  which  is  provided  to  the  applicable  Department  (or  equivalent              information should the Department no longer require such a statement) as to the              adequacy  of  loss  reserves  of  such  Insurance  Subsidiary  or  the  Horace  Mann              Group,  as  applicable.   Such  opinion  shall  be  in  the  format  prescribed  by  the              applicable Insurance Code.               (d)   Notice  of  Default,  etc.   Immediately  after  an  Executive  Officer  of  the  Borrower knows or has reason to know of the existence of any Default, or any development or  other  information  which  would  have  a  Material  Adverse  Effect  on  the  Borrower,  or  on  the  Borrower and its Subsidiaries taken as a whole, telephonic notice specifying the nature of such  Default  or  development  or  information,  including  the  anticipated  effect  thereof,  which  notice  shall be promptly confirmed in writing within two (2) Business Days.               (e)   Other  Information.   The  following  certificates  and  other  information  related to the Borrower:                     (i)   Within five (5) Business Days of receipt, a copy of any financial              examination reports by  a Governmental Authority with  respect to the  Insurance              Subsidiaries  relating  to  the  insurance  business  of  the  Insurance  Subsidiaries              (when, and if, prepared); provided the Borrower shall only be required to deliver              any interim report hereunder at such time as Borrower has knowledge that a final              report will not be issued and delivered to the Administrative Agent within 90 days              of any such interim report.                     (ii)  Copies of all Insurance Holding Company System Regulatory Act              filings  with  Governmental  Authorities  in  the  applicable  state  of  domicile,  with              respect to any occurrence which might reasonably be expected to have a Material              Adverse Effect, by the Borrower or any Subsidiary not later than five (5) Business              Days after such filings are made, including, without limitation, filings which seek              approval  of  Governmental  Authorities  with  respect  to  transactions  between  the              Borrower or such Subsidiary and its Affiliates.                     (iii) Within  five  (5)  Business  Days  of  such  notice,  notice  of  actual              suspension,  termination  or  revocation  of  any  material  License  of  the  Insurance              Subsidiaries  by  any  Governmental  Authority  or  of  receipt  of  notice  from  any              Governmental  Authority  notifying  the  Borrower  of  a  hearing  (which  is  not              withdrawn  within  ten  (10)  days)  relating  to  such  a  suspension,  termination  or              revocation,  including  any  request  by  a  Governmental  Authority  which  commits              the  Borrower  to  take,  or  refrain  from  taking,  any  action  or  which  otherwise              materially  and  adversely  affects  the  authority  of  the  Borrower  to  conduct  its              business.                     (iv)  Within  five  (5)  Business  Days  of  such  notice,  notice  of  any              pending or threatened investigation or regulatory proceeding (other  than  routine              periodic  investigations  or  reviews)  by  any  Governmental  Authority  concerning               57  

 

               the  business,  practices  or  operations  of  the  Borrower,  including  any  agent  or              managing general agent thereof.                     (v)   Promptly  upon  any  change  in  the  rating  for  Index  Debt  of  the              Borrower, notice of such change.                     (vi)  Promptly,  such  additional  financial  and  other  information  as  the              Administrative Agent or any Lender may from time to time reasonably request.                     (vii) Promptly,  such  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 Act and the Beneficial Ownership Regulation.               (f)   Compliance Certificates.  Concurrently with the later to occur of delivery  to the Administrative Agent of the GAAP financial statements and delivery to the Administrative  Agent  of  the  SAP  financial  statements  under  Sections  5.01(a)  and  5.01(c),  for  each  Fiscal  Quarter and Fiscal Year of the Borrower, and at any other time no later than thirty (30) Business  Days  following  a  written  request  of  the  Administrative  Agent,  a  duly  completed  Compliance  Certificate, signed by an Executive Officer of the Borrower, containing, among other things, a  computation  of,  and  showing  compliance  with,  each  of  the  applicable  financial  ratios  and  restrictions  contained  in  Sections 6.01  through  6.03,  and  to  the  effect  that,  to  the  best  of such  officer’s knowledge, as of such date no Default has occurred and is continuing.               (g)   Reports to SEC and to Shareholders.  Promptly upon the filing or making  thereof (i) copies of each filing and report made by the Borrower or any of its Subsidiaries with  or  to  any  securities  exchange  or  the  Securities  and  Exchange  Commission  and  (ii) of  each  communication  from  the  Borrower  to  shareholders  generally; provided  that  only  those  items  described in clauses (i) and (ii) of this Section 5.01(g) which are material to the interest of the  Lenders hereunder shall be provided to the Administrative Agent and the Lenders hereunder.               (h)   Notice of Litigation, License and ERISA Matters.  Upon learning of the  occurrence  of  any  of  the  following,  written  notice  thereof,  describing  the  same  and  the  steps  being  taken  by  the  Borrower  with  respect  thereto:  (i)  the  institution  of,  or  any  adverse  determination  in,  any  litigation,  arbitration  proceeding  or  governmental  proceeding  (including  any IRS, Department of Labor, or Pension Benefit Guaranty Corporation proceeding with respect  to any Plan) which could, if adversely determined, be reasonably  expected to have  a Material  Adverse Effect on the Borrower, or on the Borrower and its Subsidiaries taken as a whole and  which is not Ordinary Course Litigation, (ii) the failure of any Person in the Controlled Group to  make  a required  contribution  to  any  Plan in  an  amount  sufficient  to  give  rise  to  a  Lien  under  section 303(k) of ERISA or 430(k) of the Code, (iii) the institution of any steps by any entity in  the  Controlled  Group  to  withdraw  from  a  Plan  subject  to  section  4063  of  ERISA  or  from  a  Multiemployer Plan, or the institution of any steps by any entity in the Controlled Group or any  other Person to terminate any Plan (other than in a standard termination within the meaning of  section 4041(b) of ERISA), or the taking of any action with respect to a Plan which could result  in the requirement that the Borrower or any of its Subsidiaries furnish a bond or other security to  such  Plan,  or  the  occurrence  of  any  event  with  respect  to  any  Plan  which  could  result  in  the              58  

 

   incurrence  by  the  Borrower  or  any  of  its  Subsidiaries  of  any  material  liability  (other  than  a  liability for contributions or premiums), fine or penalty, (iv) the commencement of any dispute  which  might  lead  to  the  modification,  transfer,  revocation,  suspension  or  termination  of  this  Agreement or any Loan Document or (v) any event which could be reasonably expected to have  a Material Adverse Effect on the Borrower, or on the Borrower and its Subsidiaries taken as a  whole.               (i)   Beneficial  Ownership  Certification.   Promptly,  (i)  upon  request  by  the  Administrative  Agent,  confirmation  of  the  accuracy  of  the  information  set  forth  in  the  most  recent Certificate of Beneficial Ownership provided to the Administrative Agent and  Lenders;  (ii)  a  new  Certificate  of  Beneficial  Ownership,  in  form  and  substance  acceptable  to  the  Administrative  Agent  and  each  Lender,  when  the  individual(s)  identified  in  the  Certificate  of  Beneficial Ownership have changed; and (iii) such other information and documentation as may  reasonably be requested by Agent or any Lender from time to time for purposes of compliance  by Agent or such Lender with applicable laws (including without limitation the USA Patriot Act  and  other  “know  your  customer”  and  anti-money  laundering  rules  and  regulations),  and  any  policy  or  procedure  implemented  by  the  Administrative  Agent  or  such  Lender  to  comply  therewith.               (j)   Other Information.  From time to time such other information concerning  the  Borrower  or  any  Subsidiary  as  the  Administrative  Agent  or  any  Lender  may  reasonably  request.         SECTION 5.02.     Corporate  Existence;  Foreign  Qualification.   Do  and  cause  to  be  done at all times all things necessary to (a) maintain and preserve the corporate existence of the  Borrower,  (b)  be,  and  ensure  that  each  Subsidiary  of  the  Borrower  is,  duly  qualified  to  do  business and be in good standing as a foreign corporation in each jurisdiction where the nature of  its  business  makes  such  qualification  necessary,  and  (c)  do  or  cause  to  be  done  all  things  necessary to preserve and keep in full force and effect the Borrower’s corporate existence.         SECTION 5.03.     Books, Records and Inspections.  (a) Maintain, and cause each of  its Subsidiaries to maintain, materially complete and accurate books and records, (b) permit, and  cause each of its Subsidiaries to permit, access at reasonable times by the Administrative Agent  and the Lenders to its books and records, (c) permit, and cause each of its Subsidiaries to permit,  the Administrative Agent, the Lenders or their respective designated representatives to inspect at  reasonable times its properties and operations, and (d) permit, and cause each of its Subsidiaries  to  permit,  the  Administrative  Agent  and  the  Lenders  to  discuss  its  business,  operations  and  financial condition with its officers.         SECTION 5.04.     Insurance.   Maintain,  and  cause  each  of  its  Subsidiaries  to  maintain, Insurance Policies to such extent and against such hazards and liabilities as is required  by  law  (including  any  flood  insurance  required  to  be  maintained  by  applicable  law)  or  customarily maintained by prudent companies similarly situated.         SECTION 5.05.     Taxes  and  Liabilities.   Pay,  and  cause  each  of its  Subsidiaries  to  pay, when due all material Taxes, assessments and other material liabilities except as contested  in  good  faith  and  by  appropriate  proceedings  with  respect  to  which  reserves  have  been              59  

 

   established, and are being maintained, in accordance with GAAP if and so long as such contest  could not reasonably be expected to have a Material Adverse Effect on the Borrower, or on the  Borrower and its Subsidiaries taken as a whole.         SECTION 5.06.     Compliance  with  Laws.   Comply,  and  cause  each  of  its  Subsidiaries to comply, (a) with all federal, state and local laws, rules and regulations related to  its businesses (including, without limitation, the establishment of all insurance reserves required  to be established under  SAP  and applicable laws restricting the investments of the Borrower),  and  (b)  with  all  Contractual  Obligations  binding  upon  such  entity,  except  where  failure  so  to  comply would not in the aggregate have a Material Adverse Effect on the Borrower, or on the  Borrower and its Subsidiaries taken as a whole.         SECTION 5.07.     Conduct  of  Business.   Engage  on  a  consolidated  basis  with  its  Subsidiaries  primarily  in  the  same  business  in  which  the  Borrower  and  its  Subsidiaries  are  engaged on the date hereof.         SECTION 5.08.     Maintenance  of  Properties.   Maintain,  preserve  and  protect  and  cause each of its Subsidiaries to maintain, preserve and protect, all of its material properties and  equipment  necessary  in  the  operation  of  its  business  in  good  working  order  and  condition,  ordinary wear and tear excepted.         SECTION 5.09.     Use of Proceeds.  Use proceeds of the Loans only to fund working  capital, capital expenditures and for general corporate purposes (including acquisitions permitted  by  this  Agreement).   No  part  of  the  proceeds  of  any  Loan  or  Letters  of  Credit  will  be  used,  whether directly or indirectly, for any purpose that entails a violation of any Regulations of the  Board (including Regulations T, U and X), Anti-Terrorism Laws.         SECTION 5.10.     Accuracy Of Information.  Ensure that any information, including  financial statements or other documents, furnished to the Administrative Agent or the Lenders in  connection with this Agreement or any amendment or modification hereof or waiver hereunder  contains 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,  and  the  furnishing  of  such  information  shall  be  deemed  to  be  representation  and  warranty by the Borrower on the date thereof as to the matters specified in this Section 5.10.         SECTION 5.11.     Anti-Terrorism  Laws;  International  Trade  Law  Compliance.   (a)  No Covered Entity will become a Sanctioned Person, (b) no Covered Entity, either in its own  right or through any third party, will (A) have any of its assets in a Sanctioned Country or in the  possession, custody or control of a Sanctioned Person in violation of any Anti-Terrorism Law;  (B) do business in or with, or derive any of its income from investments in or transactions with,  any  Sanctioned  Country  or  Sanctioned  Person  in  violation  of  any  Anti-Terrorism  Law;  (C)  engage  in  any  dealings  or  transactions  prohibited  by  any  Anti-Terrorism  Law  or  (D)  use  the  Loans or Letters of Credit to fund any operations in, finance any investments or activities in, or,  make  any  payments  to,  a  Sanctioned  Country  or  Sanctioned  Person  in  violation  of  any  Anti- Terrorism  Law,  (c)  the  funds  used  to  repay  the  Obligations  will  not  be  derived  from  any  unlawful activity, (d) each Covered Entity shall comply with  all Anti-Terrorism Laws, and (e)               60  

 

   the  Borrower  shall  promptly  notify  the  Agent  in  writing  upon  the  occurrence  of  a  Reportable  Compliance Event.                                    ARTICLE VI                                                                      NEGATIVE COVENANTS               Until the Commitments have expired or been terminated and the principal of and  interest on each Loan and all fees payable hereunder shall have been paid in full and all Letters  of  Credit  shall  have  expired  or  terminated,  in  each  case,  without  any  pending  draw,  and  all  Reimbursement  Obligations  and  Letter  of  Credit  Borrowings  shall  have  been  reimbursed,  the  Borrower covenants and agrees with the Lenders that:         SECTION 6.01.     Consolidated Debt to Total Capitalization.  Not permit the ratio of  (a)  the  principal  amount  of  Consolidated  Debt  to  (b)  the  sum  of  (i)  Net  Worth  plus  (ii)  Consolidated Debt to exceed 0.35 to 1.0 at any time.         SECTION 6.02.     Net Worth. Not permit its Net Worth at any time to be less than the  Minimum  Net  Worth.   “Minimum  Net  Worth”  means  $970,300,0001  plus  50%  of  equity  contributions after March 31, 2019, excluding unrealized gains and losses; provided that on each  March 31, commencing March 31, 2020, if 80% of the consolidated net worth of the Borrower  and  its  Subsidiaries,  calculated  in  accordance  with  GAAP,  is  greater  than  the  Minimum  Net  Worth, the Minimum Net Worth shall be increased to such greater amount.         SECTION 6.03.     Minimum  Risk  Based  Capital.   The  Borrower  shall  not  permit  Horace Mann Life Insurance Company or the P/C Subsidiaries (taken as a whole) to maintain, as  of the end of any Fiscal Year, a ratio (expressed as a percentage) of (a) Total Adjusted Capital  (as defined in the Risk-Based Capital (RBC) for Insurers Act in the applicable state of domicile  or in the rules and procedures prescribed from time to time by the NAIC with respect thereto) to  (b) the Company Action Level RBC (as defined in the Risk-Based Capital Act or in the rules and  procedures prescribed from time to time by the NAIC with respect thereto) of less than 300%.         SECTION 6.04.     Mergers, Consolidations and Sales.  Not, and not permit any of its  Subsidiaries to, (a) merge or consolidate, or purchase or otherwise acquire all or substantially all  of the assets or stock of any  class of, or any partnership or joint venture interest in, any other  Person, other than mergers or acquisitions where the corporate existence of the Borrower is not  affected  by  such  merger  or  acquisition  and,  subsequent  to  such  merger  or  acquisition,  the  Borrower is in compliance with all the provisions of this Agreement and no Default shall exist,  or (b) sell, transfer, convey or lease all or any substantial part of its assets or sell or assign with  or  without  recourse  any  receivables,  other  than  any  sale,  transfer,  conveyance  or  lease  in  the  ordinary course of business.         SECTION 6.05.     Regulations  T,  U  and  X.   Not,  and  not  permit  any  of  its  Subsidiaries to, use or permit any proceeds of the Loans to be used, either directly or indirectly,  for  the  purpose,  whether  immediate,  incidental  or  ultimate,  of  purchasing  or  carrying  margin  stock, as defined in Regulation U of the Board.                                                    1 80% of Net Worth as of March 31, 2019.              61  

 

         SECTION 6.06.     Restrictive  Agreements.   Not,  and  not  permit  any  of  its  Subsidiaries to, directly or indirectly, enter into, incur or permit to exist any agreement or other  arrangement  that  prohibits,  restricts  or  imposes  any  condition  upon  (a)  the  ability  of  the  Borrower or any Subsidiary to create, incur or permit to exist any Lien upon any of its property  or assets, or (b) the ability of any Subsidiary to pay dividends or other distributions with respect  to any shares of its capital stock or to make or repay loans or advances to the Borrower or any  other Subsidiary or to guarantee Debt of the Borrower or any other Subsidiary; provided that (i)  the foregoing shall not apply to restrictions and conditions imposed by law or by this Agreement,  (ii)  the  foregoing  shall  not  apply  to  restrictions  and  conditions  existing  on  the  date  hereof  identified on Schedule 6.06 (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) clause (a) of the foregoing  shall not apply to restrictions or conditions imposed by any agreement relating to secured Debt  permitted by this Agreement if such restrictions or conditions apply only to the property or assets  securing  such  Indebtedness  and  (v)  clause  (a)  of  the  foregoing  shall  not  apply  to  customary  provisions in leases and other contracts restricting the assignment thereof.           SECTION 6.07.     Transactions with Affiliates.   Not, and not permit any Subsidiary  to,  enter  into,  or  cause,  suffer  or  permit  to  exist,  directly  or  indirectly,  any  arrangement,  transaction or contract with any of its Affiliates unless such arrangement, transaction or contract  is  in  the  ordinary  course  of  business,  reasonably  intended  to  satisfy  the  reasonable  business  requirements  of  the  Borrower  or  such  Subsidiary,  and  on  terms  and  conditions  at  least  as  favorable to the Borrower or such Subsidiary as the terms and conditions which would apply in a  similar arrangement, transaction or contract with a Person or entity not an Affiliate; provided that  transactions  between  the  Borrower  and  any  wholly-owned  Subsidiary  of  the  Borrower  or  between any wholly-owned Subsidiaries of the Borrower shall be excluded from the restrictions  set forth in this Section 6.07.         SECTION 6.08.     Liens.   Not,  and  not  permit  any  of  its  Subsidiaries  to,  create  or  permit to exist any Lien with respect to any assets now or hereafter existing or acquired, except  the following: (a) Liens for current taxes not delinquent or for taxes being contested in good faith  and  by  appropriate  proceedings  and  with  respect  to  which  adequate  reserves  have  been  established,  and  are  being  maintained,  in  accordance  with  GAAP,  (b)  Liens  arising  in  the  ordinary course of business or by operation of law for sums being contested in good faith and by  appropriate proceedings and with respect to which adequate reserves have been established, and  are  being  maintained,  in  accordance  with  GAAP,  or  for  sums  not  due,  and  in  either  case  not  involving  any  deposits  or  advances  for  borrowed  money  or  the  deferred  purchase  price  of  property or services, (c)  Liens in connection with the acquisition of fixed assets after the date  hereof  and  attaching  only  to  the  property  being  acquired,  (d)  Liens  incurred  in  the  ordinary  course of business in connection with workers’ compensation, unemployment insurance or other  forms of governmental insurance or benefits, (e) mechanics’, workers’, materialmen’s and other  like  Liens  arising  in  the  ordinary  course  of  business  in  respect  of  obligations  which  are  not  delinquent or which are being contested in good faith and by appropriate proceedings and with  respect  to  which  adequate  reserves  have  been  established,  and  are  being  maintained,  in  accordance  with  GAAP,  (f)  Liens  securing  FHLB  Operating  Debt,  FHLB  Liquidity  Debt  and              62  

 

   Securities  Lending  and  (g)  other  Liens  securing  Debt  which  Debt  does  not  in  the  aggregate  exceed $5,000,000; provided, however, that, no Lien shall be permitted to exist on the shares of  stock of any of its Subsidiaries.         SECTION 6.09.     Subsidiary Debt.  Not permit the aggregate amount of Debt of its  Subsidiaries  at  any  time  outstanding  to  exceed  $20,000,000, plus,  solely  with  respect  to  any  Insurance Subsidiary, FHLB Operating Debt.         SECTION 6.10.     Securities  Lending.   Not  permit  the  aggregate  market  value  of  securities subject to Securities  Lending for any  Insurance Subsidiary to exceed at any time an  amount  equal  to  the  Threshold  Amount  applicable  to  such  Insurance  Subsidiary less  the  aggregate  amount  of  FHLB  Operating  Debt  outstanding  at  such  time  for  such  Insurance  Subsidiary; provided that  for  purposes  of  this  Section  6.10,  the  market  value  of  any  security  subject to Securities Lending shall be measured as of the time the applicable Securities Lending  transaction was entered into.                                   ARTICLE VII                                                                       EVENTS OF DEFAULT               If any of the following events (“Events of Default”) shall occur:               (a)   Non-Payment of Loan.  Default in the payment when due of any principal  on the Loans or any reimbursement obligation in respect of any Reimbursement Obligations and  Letter of Credit Borrowings;               (b)   Non-Payment of Interest, Fees, Etc.  Default, and continuance thereof for  3  Business  Days,  in  the  payment  when  due  of  interest  on  the  Loans  or  of  any  other  amount  payable hereunder or under the Loan Documents;               (c)   Non-Payment of Other Debt. (i) Default in the payment when due (subject  to any applicable grace period), whether by acceleration or otherwise, of any other Debt of, or  guaranteed by, the Borrower or any of its Subsidiaries if the aggregate amount of Debt of the  Borrower and/or any of its Subsidiaries which is accelerated or due and payable, or which may  be  accelerated  or  otherwise  become  due  and  payable,  by  reason  of  such  default  or  defaults  is  $20,000,000  or  more,  or  (ii)  default  in  the  performance  or  observance  of  any  obligation  or  condition with respect to any such other Debt of, or guaranteed by, the Borrower and/or any of  its Subsidiaries if the effect of such default or defaults is to accelerate the maturity of any such  Debt of $20,000,000 or more in the aggregate or to permit the holder or holders of such Debt of  $20,000,000  or  more in the  aggregate,  or  any  trustee  or agent  for such  holders,  to  cause  such  Debt to become due and payable prior to its expressed maturity;               (d)   Other  Material  Obligations.   Except  for  obligations  covered  under  other  provisions  of  this  Article VII,  default  in  the  payment  when  due,  or  in  the  performance  or  observance of, any material obligation of, or material condition agreed to by, the Borrower or  any of its Subsidiaries with respect to any material purchase or Lease Obligation (except only to  the extent that the existence of any such default is being contested by the Borrower in good faith              63  

 

   and by appropriate proceedings and the Borrower has established, and is maintaining, adequate  reserves therefor in accordance with GAAP) which default continues for a period of 30 days;               (e)   Bankruptcy, Insolvency, Etc.  (i) (A) The Borrower becomes insolvent or  generally fails to pay, or admits in writing its inability to pay, debts as they become due; or (B)  the Borrower applies for, consents to, or acquiesces in the appointment of, a trustee, receiver or  other custodian or similar Person for the Borrower or any property of any thereof, or makes a  general assignment for the benefit of creditors; or (C) in the absence of such application, consent  or  acquiescence,  a  trustee,  receiver  or  other  custodian  or  similar  Person  is  appointed  for  the  Borrower  or  for  a  substantial  part  of  the  property  of  any  thereof,  unless  (1)  the  Borrower  institutes appropriate proceedings to contest or discharge such appointment within 30 days and  thereafter continuously and diligently prosecutes such proceedings and (2) such appointment is  in fact  discharged  within 60 days of such  appointment; or (D) any  bankruptcy, reorganization,  debt arrangement, or other case or proceeding under any bankruptcy or insolvency law, or any  dissolution or liquidation proceeding is commenced in respect of the Borrower, unless (1) such  case  or  proceeding  is  not  commenced  by  the  Borrower,  (2)  such  case  or  proceeding  is  not  consented  to  or  acquiesced  in  by  the  Borrower,  (3)  the  Borrower  institutes  appropriate  proceedings to dismiss such case or proceeding within 30 days and thereafter continuously and  diligently  prosecutes  such  proceedings,  and  (4) such  case  or  proceeding  is  in  fact  dismissed  within  60  days  after  the  commencement  thereof;  or  (E) the  Borrower  takes  any  action  to  authorize, or in furtherance of, any of the foregoing; or (ii) (A) there shall be commenced against  any Insurance Subsidiary any case, proceeding or other action (1) under any existing or future  law  of  any  jurisdiction,  domestic  or  foreign,  relating  to  bankruptcy,  insolvency,  supervision,  conservatorship,  liquidation,  reorganization  or  relief  of  debtors,  seeking  to  have  an  order  for  relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking  reorganization,  rehabilitation,  conservation,  supervision,  arrangement,  adjustment,  winding-up,  liquidation, dissolution, composition or other relief with respect to it or its debts, obligations or  liabilities, or (2) seeking appointment of a receiver, trustee, custodian, rehabilitator, conservator,  supervisor, liquidator or other similar official for it or for all or any substantial part of its assets,  in  each  case  which  (x) results  in  the  entry  of  an  order  for  relief  or  any  such  adjudication  or  appointment or (y) remains undismissed, undischarged or unbonded for a period of 60 days; or  (B)  there  shall  be  commenced  against  any  of  such  Subsidiaries  any  case,  proceeding  or  other  action seeking issuance of a warrant of attachment, execution, distraint or similar process against  all or any substantial part of its assets which results in the entry of an order for any such relief  which shall  not have been vacated, discharged,  or stayed or bonded  pending appeal  within 60  days from the entry thereof; or (C) any of such Subsidiaries shall take any action in furtherance  of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause  (ii)(A) or (B) above; or (D) any Governmental Authority shall issue any order of conservation,  supervision or any other order of like effect relating to any of such Subsidiaries;               (f)   Non-compliance  with  Certain  Provisions.   Failure  of  the  Borrower  to  comply with the provisions of each of Sections 5.01(d), 5.01(h), 5.02(a), 6.01, 6.02, 6.03, 6.04,  6.07, 6.08 or 6.09;               (g)   Non-compliance  With  Other  Provisions.   Failure  by  the  Borrower  to  comply with or to perform any provision of this Agreement or the other Loan Documents (and  not constituting an Event of Default under any of the other provisions of this Article VII) and              64  

 

   continuance of such failure for 30 days after notice thereof from the Administrative Agent to the  Borrower;               (h)   Warranties and Representations.  Any warranty or representation made by  or on behalf of the Borrower or any Subsidiary herein is inaccurate or incorrect or is breached or  false or misleading in any material respect as of the date such warranty or representation is made;  or any schedule, certificate, financial statement, report, notice, or other instrument furnished by  or on behalf of Borrower or any Subsidiary to the Administrative Agent or the Lenders is false or  misleading in any material respect on the date as of which the facts therein set forth are stated or  certified;               (i)   Employee Benefit Plans.  Any of the following occurs: (i) a contribution  failure occurs with respect to any Plan sufficient to give rise to a Lien against the Borrower or  any  of its Subsidiaries  under section 303(k)  of ERISA or 430(k) of the  Code or a  Lien  arises  against the Borrower or any of its Subsidiaries under section 4068 of ERISA, (ii) a withdrawal  by one or more entities in the Controlled Group from one or more Plans subject to section 4063  of ERISA or from one or more Multiemployer Plans to which it or they have an obligation to  contribute  and  the  withdrawal  liability  (without  unaccrued  interest)  to  such  Plans  or  Multiemployer Plans as a result of such withdrawal or withdrawals (including any outstanding  withdrawal  liability  that  any  entity  in  the  Controlled  Group  has  incurred  on  the  date  of  such  withdrawal)  is  in  excess  of  $20,000,000,  (iii)  the  termination  of  one  or  more  Plans  and  the  liability of the entities in the Controlled Group with respect to such terminated Plan or Plans is in  excess of $20,000,000;               (j)   Change in Control.  A Change in Control occurs;               (k)   Litigation.  (i) There shall  be entered  against  the Borrower or any of its  Subsidiaries one or more judgments, awards or decrees, or orders of attachment, garnishment or  any other writ, which exceed $50,000,000, individually or in the aggregate, excluding judgments,  awards, decrees, orders or writs (A) for which there is insurance, but only to the extent there is  actual  insurance  coverage,  (B)  for  which  there  is  indemnification  (upon  terms  and  from  creditworthy indemnitors which are satisfactory to Administrative Agent), but only to the extent  there is actual indemnification, (C) which have been in force for less than the applicable period  for  filing  an  appeal  so  long  as  execution  is  not  levied  thereunder  (or  in  respect  of  which  the  Borrower or its appropriate Subsidiary shall at the time in good faith be prosecuting an appeal or  proceeding  for review  and in respect  of which  a stay of execution or  appropriate appeal bond  shall have been obtained pending such appeal or review), (D) which constitute Ordinary Course  Litigation, or (E) which are reserved for, to the actual extent of reserves or (ii) there has been a  final  judgment  or  final  judgments  for  the  payment  of  money  exceeding,  in  the  aggregate,  $50,000,000 rendered against  the Borrower or any  of its Subsidiaries by  a court of competent  jurisdiction  and  such  judgment(s)  remain  undischarged  for  a  period  (during  which  execution  shall  not  be  effectively  stayed)  of  60  days  after  such  judgment(s)  become  final  and  nonappealable;               (l)   Change in Law.  Any change is made in the Insurance Code which affects  the  dividend  practices  of  any  Insurance  Subsidiary  and  which  is  reasonably  likely  to  have  a               65  

 

   Material  Adverse  Effect  on  the  ability  of  the  Borrower  to  perform  its  obligations  under  the  Agreement and such circumstances shall continue for 120 days; or               (m)   Invalidity of Loan Documents.  Any Loan Document, at any time after its  execution  and  delivery  and  for  any  reason  other  than  as  expressly  permitted  hereunder  or  thereunder or satisfaction in full of all principal of and interest on each Loan and all fees payable  hereunder, ceases to be in full force and effect; or the Borrower or any other Person contests in  any manner the validity or enforceability of any Loan Document; or the Borrower denies that it  has  any  or  further  liability  or  obligation  under  any  Loan  Document,  or  purports  to  revoke,  terminate or rescind any Loan Document;   then,  and  in  every  such  event  (other  than  an  event  with  respect  to  the  Borrower  described  in  clause (e) 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,  and  thereupon  the  Commitments  shall  terminate  immediately, (ii) declare the Loans then outstanding to be due and payable in whole (or in part,  in which case any principal not so declared to be due and payable may thereafter be declared to  be due and payable), and thereupon the principal of the Loans so declared to be due and payable,  together with accrued interest thereon and all fees and other obligations of the Borrower accrued  hereunder, shall become due and payable immediately, without presentment, demand, protest or  other notice of any kind, all of which are hereby waived by the Borrower; and in case of any  event with respect to the Borrower described in clause (e) of this Article, the Commitments shall  automatically terminate and the principal of the Loans then outstanding, together with accrued  interest  thereon  and  all  fees  and  other  obligations  of  the  Borrower  accrued  hereunder,  shall  automatically become due and payable and the obligation to cash collateralize any LC Exposure  shall  automatically  become  effective,  without  presentment,  demand,  protest  or  other  notice  of  any kind, all of which are hereby waived by the Borrower, (iii) require that the Borrower provide  cash collateral as required in Section 2.19(j), and (iv) exercise on behalf of itself,  the Lenders  and the Issuing Banks all rights and remedies available to it, the Lenders and the Issuing Banks  under the Loan Documents and applicable law.   Notwithstanding  anything  herein  to  the  contrary,  following  the  occurrence  and  during  the  continuance  of  an  Event  of  Default,  and  notice  thereof  to  the  Administrative  Agent  by  the  Borrower or the Required Lenders:   (a)  all  payments  received  on  account  of  the  Obligations  shall,  subject  to  Section  2.17,  be  applied by the Administrative Agent as follows:         (i)  first, to payment of that portion of the Obligations constituting fees, indemnities,  expenses  and  other  amounts  payable  to  the  Administrative  Agent  (including  fees  and  disbursements and other charges of counsel to the Administrative Agent payable under Section  9.03 and amounts pursuant to Section 2.09(b) payable to the Administrative Agent in its capacity  as such);         (ii)  second, to payment of that portion of the Obligations constituting fees, expenses,  indemnities  and  other  amounts  (other  than  principal,  reimbursement  obligations  in  respect  of              66  

 

   Reimbursement  Obligations,  Letter  of  Credit  Borrowings  interest  and  Letter  of  Credit  fees)  payable  to  the  Lenders  and  the  Issuing  Banks  (including  fees  and  disbursements  and  other  charges  of  counsel  to  the  Lenders  and  the  Issuing  Banks  payable  under  Section  9.03)  arising  under  the  Loan  Documents,  ratably  among  them  in  proportion  to  the  respective  amounts  described in this clause (ii) payable to them;         (iii)  third,  to  payment  of  that  portion  of  the  Obligations  constituting  accrued  and  unpaid  Letter  of  Credit  fees  and  charges  and  interest  on  the  Loans  and  unreimbursed  Reimbursement Obligations and Letter of Credit Borrowings, ratably among the Lenders and the  Issuing  Banks in proportion to the respective amounts described in this clause (iii) payable to  them;         (iv)  fourth,  (A)  to  payment  of  that  portion  of  the  Obligations  constituting  unpaid  principal  of  the  Loans  and  unreimbursed  Reimbursement  Obligations  and  Letter  of  Credit  Borrowings and (B) to cash collateralize that portion of LC Exposure comprising the undrawn  amount  of  Letters  of  Credit  to  the  extent  not  otherwise  cash  collateralized  by  the  Borrower  pursuant to Section 2.17 or 2.19, ratably among the Lenders and the Issuing Banks in proportion  to  the respective amounts  described  in  this  clause  (iv)  payable  to  them;  provided  that  (x) any  such amounts applied pursuant to subclause (B) above shall be paid to the Administrative Agent  for the ratable account of the applicable Issuing Banks to cash collateralize Obligations in respect  of Letters of Credit, (y) subject to Section 2.17 or 2.19, amounts used to cash collateralize the  aggregate  amount  of  Letters  of  Credit  pursuant  to  this  clause  (iv)  shall  be  used  to  satisfy  drawings under such Letters of Credit as they occur and (z) upon the expiration of any Letter of  Credit (without any pending drawings), the pro rata share of cash collateral shall be distributed to  the other Obligations, if any, in the order set forth in this Article VII;          (v)  fifth, to the payment in full of all other Obligations, in each case ratably among  the  Administrative  Agent,  the  Lenders  and  the  Issuing  Banks  based  upon  the  respective  aggregate  amounts  of  all  such  Obligations  owing  to  them  in  accordance  with  the  respective  amounts thereof then due and payable; and         (vi)  finally,  the  balance,  if  any,  after  all  Obligations  have  been  indefeasibly  paid  in  full, to the Borrower or as otherwise required by law; and    (b)   if any amount remains on deposit as cash collateral after all Letters of Credit have either  been  fully  drawn or expired (without  any pending drawings), such remaining  amount shall be  applied to the other Obligations, if any, in the order set forth above.                                   ARTICLE VIII                                                                  THE ADMINISTRATIVE AGENT               Each  of  the  Lenders  and  the  Issuing  Banks  hereby  irrevocably  appoints  the  Administrative Agent as its agent and authorizes the Administrative Agent to take such actions  on its behalf and to exercise such powers as are delegated to the Administrative Agent by the  terms hereof, together with such actions and powers as are reasonably incidental thereto.               67  

 

               The  bank  serving  as  the  Administrative  Agent  hereunder  shall  have  the  same  rights and powers in its capacity as a Lender as any other Lender and may exercise the same as  though  it  were  not  the  Administrative  Agent,  and  such  bank  and  its  Affiliates  may  accept  deposits from, lend money to and generally engage in any kind of business with the Borrower or  any Subsidiary or other Affiliate thereof as if it were not the Administrative Agent hereunder.               The Administrative  Agent shall  not have any  duties or obligations except those  expressly  set  forth  herein.   Without  limiting  the  generality  of  the  foregoing,  (a) the  Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of  whether a Default has occurred and is continuing, (b) the Administrative Agent shall not have  any  duty  to  take  any  discretionary  action  or  exercise  any  discretionary  powers,  except  discretionary rights and powers expressly contemplated hereby that the Administrative Agent is  required  to  exercise  in  writing  as  directed  by  the  Required  Lenders  (or  such  other  number  or  percentage of the Lenders as shall be necessary under the circumstances as provided in Section  9.02), and (c) except as expressly set forth herein, 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 or any of its Subsidiaries that is communicated to or obtained by the bank serving as  Administrative Agent or any of its Affiliates in any capacity.  The Administrative Agent shall not  be liable for any action taken or not taken by it with the consent or at the request of the Required  Lenders  (or  such  other  number  or  percentage  of  the  Lenders  as  shall  be  necessary  under  the  circumstances  as  provided  in  Section 9.02)  or  in  the  absence  of  its  own  gross  negligence  or  willful misconduct.  The Administrative Agent shall be deemed not to have knowledge of any  Default  unless  and  until  written  notice  thereof  is  given  to  the  Administrative  Agent  by  the  Borrower, a Lender or an Issuing Bank, and 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 this Agreement, (ii) the contents of any certificate, report or other  document delivered hereunder or in connection herewith, (iii) the performance or observance of  any of the covenants, agreements or other terms or conditions set forth herein, (iv) the validity,  enforceability,  effectiveness  or  genuineness  of  this  Agreement  or  any  other  agreement,  instrument  or  document,  or  (v) the  satisfaction  of  any  condition  set  forth  in  Article IV  or  elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the  Administrative Agent.               The Administrative Agent shall be entitled to rely upon, and shall not incur any  liability  for  relying  upon,  any  notice,  request,  certificate,  consent,  statement,  instrument,  document or other writing believed by it to be genuine and to have been signed or sent by the  proper Person.  The Administrative Agent also may rely upon any statement made to it orally or  by telephone and believed by it to be made by the proper Person, and shall not incur any liability  for  relying  thereon.   The  Administrative  Agent  may  consult  with  legal  counsel  (who  may  be  counsel for the Borrower), independent accountants and other experts selected by it, and shall not  be  liable  for  any  action  taken  or  not  taken  by  it  in  accordance  with  the  advice  of  any  such  counsel, accountants or experts.               The  Administrative  Agent  may  perform  any  and  all  its  duties  and  exercise  its  rights  and powers by or through any  one or more sub-agents  appointed  by the Administrative  Agent.  The Administrative Agent and any such sub-agent may perform any and all its duties and  exercise  its  rights  and  powers  through  their  respective  Related  Parties.   The  exculpatory              68  

 

   provisions  of  the  preceding  paragraphs  shall  apply  to  any  such  sub-agent  and  to  the  Related  Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective  activities in connection with the syndication of the credit facilities provided for herein as well as  activities as Administrative Agent.               Subject to the appointment and acceptance of a successor Administrative Agent as  provided in this paragraph, the Administrative Agent may resign at any time upon 10 Business  Days’ notice to the Lenders, the Issuing Banks and the Borrower.  Upon any such resignation,  the  Required  Lenders  shall  have  the  right,  in  consultation  with  the  Borrower,  to  appoint  a  successor.  If no successor shall have been so appointed by the Required Lenders and shall have  accepted such appointment within 30 days after the retiring Administrative Agent gives notice of  its  resignation,  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 with an office in  New York, New York, or an Affiliate of any such bank.  Upon the acceptance of its appointment  as Administrative Agent hereunder by a successor, such successor shall succeed to and become  vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and  the retiring Administrative Agent shall be discharged from its duties and obligations hereunder.   The fees payable by the Borrower to a successor Administrative Agent shall be the same as those  payable  to  its  predecessor  unless  otherwise  agreed  between  the  Borrower  and  such  successor.   After  the  Administrative  Agent’s  resignation  hereunder,  the  provisions  of  this  Article  and  Section 9.03  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 it was acting as Administrative Agent.               Each  Lender  and  Issuing  Bank  acknowledges  that  it  has,  independently  and  without  reliance  upon  the  Administrative  Agent  or  any  other  Lender  and  based  on  such  documents  and  information  as  it  has  deemed  appropriate,  made  its  own  credit  analysis  and  decision to enter into this Agreement.  Each Lender and Issuing Bank also acknowledges that it  will, independently and without reliance upon the Administrative Agent or any other Lender or  Issuing Bank and based on such documents and information as it shall from time to time deem  appropriate,  continue  to  make  its  own  decisions  in  taking  or  not  taking  action  under  or based  upon this Agreement, any related agreement or any document furnished hereunder or thereunder.                                    ARTICLE IX                                                                         MISCELLANEOUS         SECTION 9.01.     Notices; Electronic Communication.                 (a)   Notices  Generally.   Except  in  the  case  of  notices  and  other  communications expressly permitted to be given by telephone (and except as provided in Section  9.01(c)), all notices and other communications provided for herein shall be in writing and shall  be delivered by hand or overnight courier service, mailed by certified or registered mail or sent  by telecopier (i) if to a Lender, to it at its address set forth in its Administrative Questionnaire, or  (ii) if to any other Person, to it at its address set forth on Schedule 1.1(B).  Notices sent by hand  or overnight courier service, or mailed by certified or registered mail, shall be deemed to have  been given when received; notices sent by telecopier shall be deemed to have been given when              69  

 

   sent (except that, if not given during normal business hours for the recipient, shall be deemed to  have been given at the opening of business on the next Business Day for the recipient).  Notices  delivered through electronic communications to the extent provided in Section 9.01(b), shall be  effective as provided in such Section.               (b)   Electronic  Communications.   Notices  and  other  communications  to  the  Lenders  and  the  Issuing  Banks  hereunder  may  be  delivered  or  furnished  by  electronic  communication  (including  e  mail  and  Internet  or  intranet  websites)  pursuant  to  procedures  approved by the Administrative Agent; provided that the foregoing shall not apply to notices to  any Lender or the Issuing Bank if such Lender or the Issuing Bank, as applicable, has notified  the Administrative Agent that it is incapable of receiving notices under such Article by electronic  communication.   The  Administrative  Agent  or  the  Borrower  may,  in  its  discretion,  agree  to  accept notices and other communications to it hereunder by electronic communications pursuant  to  procedures  approved  by  it;  provided  that  approval  of  such  procedures  may  be  limited  to  particular notices or communications.  Unless the Administrative Agent otherwise prescribes, (i)  notices and other communications sent to an e-mail address shall be deemed received upon the  sender’s  receipt  of  an  acknowledgement  from  the  intended  recipient  (such  as  by  the  “return  receipt  requested”  function,  as  available,  return  e-mail  or  other  written  acknowledgement);  provided that if such notice or other communication is not sent during the normal business hours  of the recipient, such notice or communication shall be deemed to have been sent at the opening  of business on the next Business Day for the recipient, and (ii) notices or communications posted  to  an  Internet  or  intranet  website  shall  be  deemed  received  upon  the  deemed  receipt  by  the  intended recipient at its e-mail address as described in the foregoing clause (i) of notification that  such notice or communication is available and identifying the website address therefor.               (c)   Change of Address, Etc.  Any party hereto may change its address, e mail  address or telecopier number for notices and other communications hereunder by notice to the  other parties hereto.         SECTION 9.02.     Waivers;  Amendments.   (a)   No  failure  or  delay  by  the  Administrative  Agent,  any  Issuing  Bank  or  any  Lender  in  exercising  any  right  or  power  hereunder 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 Banks and the Lenders hereunder  are cumulative and are not exclusive of any rights or remedies that they would otherwise have.   No  waiver  of  any  provision  of  this  Agreement  or  consent  to  any  departure  by  the  Borrower  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 Issuing Bank or any Lender may have had  notice or knowledge of such Default at the time.               (b)   Subject  to  Section  2.11(b),  neither  this  Agreement  nor  any  provision  hereof may be waived, amended or modified except pursuant to an agreement or agreements in  writing  entered  into  by  the  Borrower  and  the  Required  Lenders  or  by  the  Borrower  and  the              70  

 

   Administrative  Agent  with  the  consent  of  the  Required  Lenders; provided  that  no  such  agreement shall (i) increase the Commitment of any Lender without the written consent of such  Lender, (ii) reduce the principal amount of any Loan, Reimbursement Obligations or Letter of  Credit Borrowings or reduce the rate of interest thereon, or reduce any fees payable hereunder,  without the written consent of each Lender affected thereby, (iii) postpone the scheduled date of  payment  of  the  principal  amount  of  any  Loan,  Reimbursement  Obligation  or  Letter  of  Credit  Borrowings,  or  any  interest  thereon,  or  any  fees  payable  hereunder,  or  reduce  the  amount  of,  waive  or  excuse  any  such  payment,  or  postpone  the  scheduled  date  of  expiration  of  any  Commitment, without the written consent of each Lender affected thereby, (iv) change Section  2.15(b) or (c) in a manner  that would alter the pro rata sharing of payments required thereby,  without the written consent of each Lender, or (v) change any of the provisions of this Section or  the  definition  of  “Required  Lenders”  or  any  other  provision  hereof  specifying  the  number  or  percentage  of  Lenders  required  to  waive,  amend  or  modify  any  rights  hereunder  or make  any  determination  or  grant  any  consent  hereunder,  without  the  written  consent  of  each  Lender;  provided, further, that no such agreement shall amend, modify or otherwise affect the rights or  duties  of  the  Administrative  Agent  hereunder  without  the  prior  written  consent  of  the  Administrative Agent and no such agreement shall amend, modify or otherwise affect the rights  or duties of the Issuing Bank hereunder without the prior written consent of the Issuing Bank.         SECTION 9.03.     Expenses;  Indemnity;  Damage  Waiver.   (a)   The  Borrower  shall  pay (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent, the Issuing  Bank, the Arrangers and any of their respective Affiliates, including the reasonable fees, charges  and disbursements of counsel for the Administrative Agent, in connection with the syndication of  the credit facility provided for herein, the preparation and administration of this Agreement or  any  amendments,  modifications  or  waivers  of  the  provisions  hereof  (whether  or  not  the  transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of- pocket  expenses  incurred  by  any  Issuing  Bank  in  connection  with  the  issuance,  amendment,  renewal or extension of any Letter of Credit or any demand for payment thereunder, and (iii) all  out-of-pocket expenses incurred by the Administrative Agent, the Issuing Banks or any Lender,  including the fees, charges and disbursements of any counsel for the Administrative Agent, the  Issuing Banks or any Lender, in connection with the enforcement or protection of its rights in  connection with this Agreement and the other Loan Documents, including its rights under this  Section,  or  in  connection  with  the  Loans  made  and  the  Letters  of  Credit  issued  hereunder,  including  all  such  out-of-pocket  expenses  incurred  during  any  workout,  restructuring  or  negotiations in respect of such Loans and Letters of Credit.               (b)   The  Borrower  shall  indemnify  the  Administrative  Agent,  the  Arrangers,  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  losses,  claims,  damages,  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  this  Agreement  or  any  agreement  or  instrument  contemplated  hereby,  the  performance  by  the  parties hereto of their respective obligations hereunder or the consummation of the Transactions  or any other transactions contemplated hereby, (ii) 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              71  

 

   strictly comply with the terms of such Letter of Credit), or (iii) any actual or prospective claim,  litigation, investigation or proceeding relating to any of the foregoing, 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 losses,  claims,  damages,  liabilities  or  related  expenses  are  determined  by  a  court  of  competent  jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or  willful  misconduct  of  such  Indemnitee.   This  Section  9.03(b)  shall  not  apply  with  respect  to  Taxes other than any Taxes that represent losses or damages arising from any non-Tax claim.               (c)   To the extent that the Borrower fails to pay any amount required to be paid  by  it  to  the  Administrative  Agent  under  paragraph  (a)  or  (b)  of  this  Section,  each  Lender  severally  agrees  to  pay  to  the  Administrative  Agent  and  each  Issuing  Bank  and  each  Related  Party of the foregoing Persons such Lender’s Applicable Percentage (determined as of the time  that  the  applicable  unreimbursed  expense  or  indemnity  payment  is  sought)  of  such  unpaid  amount; provided that the unreimbursed expense or indemnified loss, claim, damage, liability or  related  expense,  as  the  case  may  be,  was  incurred  by  or  asserted  against  the  Administrative  Agent or the Issuing Bank or such Related Party in its capacity as such.               (d)   To the extent permitted by applicable law (i) the Borrower shall not assert,  and the Borrower hereby waives, any claim against any Indemnitee for any damages arising from  the  use  by  others  of  information  or  other  materials  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 claim 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  clause  (d)(ii)  shall  relieve  the  Borrower  of  any  obligation  it  may  have  to  indemnify  an  Indemnitee  against  special,  indirect,  consequential  or  punitive  damages  asserted  against such Indemnitee by a third party.               (e)   All  amounts  due  under  this  Section  shall  be  payable  not  later  than  10  Business 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 an 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, Participants (to the extent provided in paragraph (c) of this Section) and, to the extent  expressly contemplated hereby (including any Affiliate of an Issuing Bank that issues any Letter  of Credit), the Related Parties of each of the Administrative Agent, the  Issuing Banks and the  Lenders any legal or equitable right, remedy or claim under or by reason of this Agreement.              72  

 

               (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) all or a portion of  its rights and obligations under this Agreement (including all or a portion of its Commitment and  the Loans and participations in Letters of Credit at the time owing to it) with the prior written  consent (such consent not to be unreasonably withheld) of:                           (A)   the Borrower, provided that, the Borrower shall be deemed                    to have consented to an assignment unless it shall have objected thereto by                    written notice to the Administrative Agent within five (5) Business Days                    after having received notice thereof; 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)   each Issuing Bank; and                           (C)   the Administrative Agent, provided that no consent of the                    Administrative  Agent  shall  be  required  for  an  assignment  of  any                    Commitment  to  an  assignee  that  is  a  Lender  with  a  Commitment                    immediately prior to giving effect to such assignment.   As used herein, “Ineligible Institution” means a (a) natural person, (b) Defaulting Lender or its  Parent,  (c)  holding  company,  investment  vehicle  or  trust  for,  or  owned  and  operated  for  the  primary  benefit  of,  a  natural  person  or  relative(s)  thereof  or  (d)  the  Borrower  or  any  of  its  Affiliates; provided that, with respect to clause (c), such holding 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.                     (ii)  Assignments  shall  be  subject  to  the  following  additional              conditions:                           (A)   except  in  the  case  of  an  assignment  to  a  Lender  or  an                    Affiliate of a Lender or an assignment of the entire remaining amount of                    the  assigning  Lender’s  Commitment  or  Loans,  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  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;               73  

 

                             (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;                (C)   the parties to each assignment shall execute and deliver to         the Administrative Agent an Assignment and Assumption, 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 and  its related parties or its 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.          (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 2.12, 2.13, 2.14 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.          (iv)  The  Administrative  Agent,  acting  for this  purpose as  an  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  of  the   Loans,  Reimbursement  Obligations  and  Letter  of  Credit  Borrowings  owing  to,   each Lender pursuant to the terms hereof from time to time (the “Register”).  The   entries in the Register shall be conclusive, and the Borrower, the Administrative   Agent, the Issuing Banks 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  Banks  and  any   Lender,  at  any  reasonable  time  and  from  time  to  time  upon  reasonable  prior   notice.   74  

 

                     (v)   Upon its receipt of a duly completed Assignment and Assumption              executed  by  an  assigning  Lender  and  an  assignee,  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 2.04(b), 2.15(d)              or  9.03(c),  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 the Borrower, the Issuing Banks  or  the  Administrative  Agent,  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  obligations under this Agreement (including all or a portion of its Commitment and the Loans  owing  to  it); provided  that  (A) such  Lender’s  obligations  under  this  Agreement  shall  remain  unchanged,  (B) such  Lender  shall  remain  solely  responsible to  the  other  parties  hereto  for  the  performance  of  such  obligations  and  (C) the  Borrower,  the  Issuing  Banks,  the  Administrative  Agent  and  the  other  Lenders  shall  continue  to  deal  solely  and  directly  with  such  Lender  in  connection with such Lender’s rights and 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 2.12, 2.13 and 2.14 (subject to the requirements and limitations therein, including the  requirements under Section 2.14(f) (it being understood that the documentation required under  Section 2.14(f) shall be delivered to the participating Lender)) 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 2.15  and  2.16 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 2.12 or 2.14, with respect to any participation, than  its participating Lender would have been entitled to receive, except to the extent such entitlement  to  receive  a  greater  payment  results  from  a  Change  in  Law  that  occurs  after  the  Participant  acquired the applicable participation.  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  that  such  Participant agrees to be subject to Section 2.15(c) as though it were a Lender.  Each Lender that  sells a participation shall, acting solely for this purpose as an 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  (the  “Participant  Register”); provided  that  no  Lender shall  have  any  obligation  to              75  

 

   disclose all or any portion of the Participant Register to any Person (including the identity of any  Participant or any information relating to a Participant’s interest in any Commitments, Loans or  its  other  obligations  under  any  Loan  Document)  except  to  the  extent  that  such  disclosure  is  necessary  to  establish  that  such  Commitment,  Loan  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.               (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  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.         SECTION 9.05.     Survival.   All  covenants,  agreements,  representations  and  warranties made by the Borrower herein and in the certificates or other instruments delivered in  connection with or pursuant to this Agreement shall be considered to have been relied upon by  the other parties hereto and shall survive the execution and delivery of this Agreement 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  Banks  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, any  Letter of Credit is  outstanding and so long as the Commitments have not expired or terminated.  The provisions of  Sections  2.12,  2.13,  2.14  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, the expiration or termination of  the Commitments or the termination of this Agreement or any provision hereof.         SECTION 9.06.     Counterparts; Integration; Effectiveness.  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  agreement  with  respect  to  fees  payable  to  the  Administrative  Agent  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.   Delivery  of  an  executed  counterpart  of  a  signature  page  of  this  Agreement  by  telecopy  or  any  other  electronic  means  that  reproduces  an  image  of  the  actual  executed signature page shall be effective as delivery of a manually executed counterpart of this  Agreement.              76  

 

         SECTION 9.07.     Severability.  Any provision of this Agreement 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 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 setoff 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 the Borrower against any and all of the obligations  of the Borrower now or hereafter existing under this Agreement or any other Loan Document 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  Borrower  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 setoff shall be paid over immediately to the Administrative Agent  for  further  application  in  accordance  with  the  provisions  of  Section 2.17  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 Obligations owing to such Defaulting Lender as to which it exercised such  right  of  setoff.   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.  Each Lender and  Issuing  Bank  agrees  to  notify  the  Borrower  and  the  Administrative  Agent  promptly  after  any  such  setoff  and  application;  provided  that  the  failure  to  give  such  notice  shall  not  affect  the  validity of such setoff and application.         SECTION 9.09.     Governing  Law;  Jurisdiction;  Consent  to  Service of  Process.   (a)   This Agreement shall be construed in accordance with and governed by the law of the State of  Illinois.               (b)   The  Borrower  hereby  irrevocably  and  unconditionally  submits,  for  itself  and its property, to the exclusive jurisdiction of the Circuit Court of the State of Illinois sitting in  Cook County, Illinois and of the United States District Court for the Northern District of Illinois,  and any appellate court from any thereof, in any action or proceeding arising out of or relating to  this  Agreement,  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 be heard and determined in such Illinois State 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 shall affect any  right that the Administrative Agent, any Issuing Bank or any Lender may otherwise have to bring              77  

 

   any action or proceeding relating to this Agreement against the Borrower or its properties in the  courts of any jurisdiction.               (c)   The  Borrower  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 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.               (d)   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 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  OR  THE  TRANSACTIONS  CONTEMPLATED  HEREBY  (WHETHER  BASED  ON  CONTRACT,  TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO  REPRESENTATIVE,  AGENT  OR  ATTORNEY  OF  ANY  OTHER  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.  (a)  Each of the Administrative Agent, the Issuing  Banks  and  the  Lenders  agrees  to  maintain  the  confidentiality  of  the  Information  (as  defined  below), except that Information may be disclosed (i) to its and its Affiliates’ directors, officers,  employees  and  agents,  including  accountants,  legal  counsel  and  other  advisors  (it  being  understood  that  the  Persons  to  whom  such  disclosure  is  made  will  be  informed  of  the  confidential  nature  of  such  Information  and  instructed  to  keep  such  Information  confidential),  (ii) to the extent requested by any regulatory authority, (iii) to the extent required by applicable  laws or regulations or by any subpoena or similar legal process, (iv) to any other party to this  Agreement, (v) in connection with the exercise of any remedies hereunder or any suit, action or  proceeding relating to this Agreement or the enforcement of rights hereunder, (vi) subject to an  agreement  containing  provisions  substantially  the  same  as  those  of  this  Section,  to  (A)  any  assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or  obligations under this Agreement or (B) any actual or prospective counterparty (or its advisors)  to any swap or derivative transaction relating to the Borrower and its obligations, (vii) with the  consent of the Borrower or (viii) to the extent such Information (A) becomes publicly available  other than as a result of a breach of this Section or (B) becomes available to the Administrative              78  

 

   Agent, any Issuing Bank or any Lender on a nonconfidential basis from a source other than the  Borrower.  For the purposes of this Section, “Information” means all information received from  the  Borrower  relating  to  the Borrower  or  its  business,  other than  any  such  information  that  is  available  to  the  Administrative  Agent,  any  Issuing  Bank  or  any  Lender  on  a  nonconfidential  basis prior to disclosure by the Borrower; provided that, in the case of information received from  the Borrower after the date hereof, such information 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.               (b)   EACH  LENDER  ACKNOWLEDGES  THAT  INFORMATION  AS  DEFINED  IN  SECTION  9.12(a)  FURNISHED  TO  IT  PURSUANT  TO  THIS  AGREEMENT      MAY    INCLUDE     MATERIAL     NON-PUBLIC      INFORMATION  CONCERNING  THE  BORROWER  AND  ITS  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.               (c)   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  AND ITS  RELATED  PARTIES  OR  ITS  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.         SECTION 9.13.     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  Federal  Funds  Effective Rate  to  the date  of  repayment,  shall  have  been received by such Lender.              79  

 

         SECTION 9.14.     USA  PATRIOT  Act.   Each  Lender  that  is  subject  to  the  requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26,  2001)) (the “Act”) hereby notifies the Borrower that pursuant to the requirements of the Act, it is  required to obtain, verify and record information that identifies the Borrower, which information  includes the name and address of the Borrower and other information that will allow such Lender  to identify the Borrower in accordance with the Act.         SECTION 9.15.     No Advisory or  Fiduciary  Responsibility.   In connection with all  aspects of each transaction contemplated hereby, the Borrower acknowledges and agrees that: (i)  the  credit  facility  provided  for  hereunder  and  any  related  arranging  or  other  services  in  connection  therewith  (including  in  connection  with  any  amendment,  waiver  or  other  modification hereof or of any other Loan Document) are an arm’s-length commercial transaction  between the Borrower, on the one hand, and the Administrative Agent and the Arrangers, on the  other hand, and the Borrower is capable of evaluating and understanding  and understands and  accepts the terms, risks and conditions of the transactions contemplated hereby and by the other  Loan Documents (including any amendment, waiver or other modification hereof or thereof); (ii)  in  connection  with  the  process  leading  to  such  transaction,  the  Administrative  Agent  and  the  Arrangers each is and has been acting solely as a principal and is not the financial advisor, agent  or fiduciary, for the Borrower or any of its Affiliates, stockholders, creditors or employees or any  other Person; (iii) neither the Administrative Agent nor any Arranger has assumed or will assume  an advisory, agency or fiduciary responsibility in favor of the Borrower with respect to any of  the transactions contemplated hereby or the process leading thereto, including with respect to any  amendment, waiver or other modification hereof or of any other Loan Document (irrespective of  whether  the  Administrative  Agent  or  any  Arranger  has  advised  or  is  currently  advising  the  Borrower  or  its  Affiliates  on  other  matters)  and  neither  the  Administrative  Agent  nor  any  Arranger  has  any  obligation  to  the  Borrower  or  its  Affiliates  with  respect  to  the  transactions  contemplated hereby  except those obligations expressly set  forth herein and in the other  Loan  Documents; (iv) the Administrative Agent and each Arranger and its respective Affiliates may be  engaged  in  a  broad  range  of  transactions  that  involve  interests  that  differ  from  those  of  the  Borrower  and  its  Affiliates,  and  neither  the  Administrative  Agent  nor  any  Arranger  has  any  obligation  to  disclose  any  of  such  interests  by  virtue  of  any  advisory,  agency  or  fiduciary  relationship; and (v) neither the Administrative Agent nor any Arranger has provided and will  not provide any legal, accounting, regulatory or tax advice with respect to any of the transactions  contemplated hereby (including any amendment, waiver or other modification hereof or of any  other Loan Document) and the Borrower has consulted its own legal, accounting, regulatory and  tax advisors to the extent it has deemed appropriate.  The Borrower hereby waives and releases,  to  the fullest  extent  permitted  by  law,  any  claims  that  it  may  have  against  the  Administrative  Agent  and  the  Arrangers  with  respect  to  any  breach  or  alleged  breach  of  agency  or  fiduciary  duty.         SECTION 9.16.     Acknowledgment  and  Consent  to  Bail-In  of  EEA  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  EEA  Financial  Institution  arising  under  any  Loan  Document  may  be  subject  to  the  write-down  and  conversion  powers  of  an  EEA  Resolution  Authority and agrees and consents to, and acknowledges and agrees to be bound by:              80  

 

               (a)   the  application  of  any  Write-Down  and  Conversion  Powers  by  an  EEA  Resolution Authority to any such liabilities arising hereunder which may be payable to it by any  party hereto that is an EEA 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  EEA  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 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  any  EEA  Resolution              Authority.         SECTION 9.17.     Acknowledgement Regarding Any Supported QFCs.  To the extent  that  the  Loan  Documents  provide  support,  through  a  guarantee  or  otherwise,  for  Hedging  Obligations  or  any  other  agreement  or  instrument  that  is  a  QFC  (such  support  “QFC  Credit  Support”  and  each  such  QFC  a  “Supported  QFC”),  the  parties  acknowledge  and  agree  as  follows with respect to the resolution power of the Federal Deposit Insurance Corporation under  the  Federal  Deposit  Insurance  Act  and  Title  II  of  the  Dodd-Frank  Wall  Street  Reform  and  Consumer  Protection  Act  (together  with  the  regulations  promulgated  thereunder,  the  “U.S.  Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with  the  provisions  below  applicable  notwithstanding  that  the  Loan  Documents  and  any  Supported  QFC may in fact be stated to be governed by the laws of the State of New York and/or of the  United States or any other state of the United States):         In the event a QFC 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              81  

 

         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.         Section 9.18  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  the  Arrangers  and  not,  for  the  avoidance  of  doubt, to or for the benefit of the Borrower, that at least one of the following is and will be true:               (i) such Lender is not using “plan assets” (within the meaning of Section 3(42) of        ERISA or otherwise) of one or more Benefit Plans with respect to such Lender’s entrance        into,  participation  in,  administration  of  and  performance  of  the  Loans,  the  Letters  of        Credit, the Commitments or this Agreement,                             (ii) the transaction exemption set forth in one or more PTEs, such as PTE 84-14        (a  class  exemption  for  certain  transactions  determined  by  independent  qualified        professional  asset  managers),  PTE  95-60  (a  class  exemption  for  certain  transactions        involving insurance company general accounts), PTE 90-1 (a class exemption for certain        transactions involving insurance company pooled separate accounts), PTE 91-38 (a class        exemption for certain transactions involving bank collective investment funds) or PTE        96-23  (a  class  exemption  for  certain  transactions  determined  by  in-house  asset        managers),  is  applicable  with  respect  to  such  Lender’s  entrance  into,  participation  in,        administration of and performance of the Loans, the Letters of Credit, the Commitments        and this Agreement,                 (iii) (A) such Lender is an investment fund managed by a “Qualified Professional        Asset  Manager”  (within  the  meaning  of  Part  VI  of  PTE  84-14),  (B)  such  Qualified        Professional  Asset Manager made the investment  decision on behalf of such  Lender to        enter  into,  participate  in,  administer  and  perform  the  Loans,  the  Letters  of  Credit,  the        Commitments and this Agreement, (C) the entrance into, participation in, administration        of  and  performance  of  the  Loans,  the  Letters  of  Credit,  the  Commitments  and  this        Agreement  satisfies  the  requirements  of  sub-sections  (b)  through  (g)  of  Part  I  of  PTE        84¬14 and (D) to the best knowledge of such Lender, the requirements of subsection (a)        of  Part  I  of  PTE  84-14  are  satisfied  with  respect  to  such  Lender’s  entrance  into,        participation in, administration of and performance of the Loans, the Letters of Credit, the        Commitments and this Agreement, or                         (iv) such other representation, warranty and covenant as may be agreed in writing        between the Administrative Agent, in its sole discretion, and such Lender.                      (b) In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is  true with respect to a Lender or (2) a Lender has provided another representation, warranty and  covenant  in  accordance  with  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              82  

 

   date  such  Person  ceases  being  a  Lender  party  hereto,  for  the  benefit  of,  the  Administrative  Agent  and  not,  for  the  avoidance  of  doubt,  to  or  for  the  benefit  of  the  Borrower,  that  the  Administrative Agent is not a fiduciary with respect to the assets of such  Lender involved in  such Lender’s entrance into, participation in, administration of and performance of the Loans,  the Letters of Credit, the Commitments and this Agreement (including in connection with the  reservation  or  exercise  of  any  rights  by  the  Administrative  Agent  under  this  Agreement,  any  Loan Document or any documents related hereto or thereto).                                               [Signature pages follow.]              83  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                                                                                     Schedule 1.1(B)                                                                              Notices                                             If to the Borrower:    Horace Mann Educators Corporation  One Horace Mann Plaza  Springfield, IL 62715-001  Attn: Troy Gayle  Telephone: 217.788.5328  Facsimile: 217.788.5796  Email: troy.gayle@horacemann.com  Website: www.horacemann.com      If to the Administrative Agent:    Name: PNC Bank, National Association  Address: One North Franklin   Chicago, IL 60606  Attention: Nicole Limberg  Telephone: (312) 384-4650  Telecopy: (312) 338-8149                           With a Copy To:    Name: Agency Services, PNC Bank, National Association  Mail Stop: P7-PFSC-05-W  Address: 500 First Avenue  Pittsburgh, PA 15219  Attention: Agency Services  Telephone: 412-762-4799  Fax number 412-768-2296             

 

                                                                            Schedule 2.01                                                              Commitments                                    Lender                             Commitment     PNC Bank, National Association     $65,000,000  JPMorgan Chase Bank, N.A.          $50,000,000  The Northern Trust Company         $35,000,000  U.S. Bank National Association     $25,000,000  Keybank National Association       $20,000,000  Comerica Bank                      $15,000,000  Illinois National Bank             $15,000,000     TOTAL:                             $225,000,000                                  

 

                                              Schedule 3.01                                                                      Jurisdictions                                             CERTIFICATES OF AUTHORITY BY STATE AND DATE ISSUED                                                                                                     STATE       HMIC       TIC     HMP&C     HMLIC      ELICA     HMSC                                       IC                                                                    Alabama       12-19-66  04-18-73  08-20-03  12-15-58               X                                                                    Alaska        01-31-64  03-26-73  12-22-87  02-02-62               X                                                                    Arizona       05-27-59  11-12-74  06-09-80  07-15-59  08-21-57     X                                                                    Arkansas      01-31-64  10-06-77  11-19-75  05-06-50               X                                                                    California    01-31-64            03-25-65  08-18-67               X                                                                    Colorado      06-05-64  09-05-73  11-13-81  11-02-56  12-31-84     X                                                                    Connecticut   06-28-74  11-18-99  11-18-99  11-20-78               X                                                                    Delaware      06-02-59  03-02-71  09-25-98  12-08-55               X                                                                    Dist. of Col. 08-20-59  01-30-73  05-01-97  12-03-65               X                                                                    Florida       09-23-63  08-19-76  04-02-10  07-16-62  08-15-66     X                                                                    Georgia       01-31-64  02-09-78  07-02-07  04-05-61               X                                                                    Hawaii                                      08-25-87  02-01-85                                                                          Idaho         12-16-68  04-16-73  05-26-88  05-09-60               X                                                                    Illinois       01-31-    03-09-   04-25-75*  08-09-   12-31-84*  08-13-                 64*       77*                 49*                 73*                                                                    Indiana       05-01-68  12-01-77  01-15-98  05-01-57               X                                                                    Iowa          12-29-64  05-04-73  11-26-74  08-01-52               X                                                                    Kansas        01-31-64  09-13-96  12/21/99  11-12-61               X                                                                    Kentucky      01-31-64  08-02-64  11-01-99  02-21-69               X                                                                    Louisiana     12-23-58  11-14-73  09-30-99  05-16-61               X                                                                    Maine         06-01-70  05-04-88  12-30-98  09-02-60               X                                                                    Maryland      01-10-68  10-29-91  03-31-98  06-26-56               X                   

 

                                                                                     STATE       HMIC       TIC     HMP&C     HMLIC      ELICA     HMSC                                       IC                                                                    Massachusett  10-25-68  02-12-81            09-09-68               X  s                                                                    Michigan      03-19-59  12-14-77  02-23-99  10-27-59               X                                                                    Minnesota     02-11-64  06-01-74  08-19-98  10-08-56               X                                                                    Mississippi   06-01-58  07-19-74  06-01-97   10-  -61              X                                                                    Missouri      03-01-64  07-19-88  11-25-74  06-27-60               X                                                                    Montana       01-31-64  06-01-73  02-26-88  01-02-54               X                                                                    Nebraska      08-30-60  12-15-76  06-24-97  10-29-59  09-28-61     X                                                                    Nevada        02-12-68  06-14-99  06-17-99  05-10-60  02-04-83     X                                                                    New           04-09-69  11-15-76  03-19-01  07-13-61               X  Hampshire                                                                    New Jersey    Cancelle                      05/31/19               X                   d                05-30-96                                                                    New Mexico    03-01-64  08-15-73  01-03-03  05-21-56               X                                                                    New York      01-31-64  06-17-02  03-27-00                         X                                                                    North         10-18-68  07-01-74  03-05-98  07-10-59               X  Carolina                                                                    North Dakota  05-08-62  03-22-73  06-21-88  05-29-62               X                                                                    Ohio          02-07-64  12-03-84  12-31-96  12-02-59  10-09-84     X                                                                    Oklahoma      03-01-68  11-25-74  11-07-74  12-07-60  08-02-66     X                                                                    Oregon        07-15-70  09-01-73  11-15-74  11-01-53  06-05-57     X                                                                    Pennsylvania  12-29-63  04-16-81  12-20-99  09-01-49               X                                                                    Rhode Island  01-23-70  12-13-73  01-12-98  09-05-61            09-10-                                                                 73                                                                    South         10-02-58  02-08-74  05-04-82  08-14-61               X  Carolina                                                                    South Dakota  05-01-62  01-22-74  09-14-88  08-03-53               X                                                                                     

 

                                                                              STATE       HMIC       TIC     HMP&C     HMLIC      ELICA     HMSC                                          IC     Tennessee     01-31-64  09-07-77  11-19-97  03-28-56               X                                                                          Texas         01-31-64  12-29-78  05-29-75  07-14-60  06-26-68   09-10-                                                                       73                                                                          Utah          03-01-64  06-14-73  04-05-88  11-22-55               X                                                                          Vermont       10-01-68  08-25-99  08-25-97  04-18-56               X                                                                          Virginia      02-03-64  03-19-91  03-30-99  04-18-56               X                                                                          Washington    02-10-64  12-28-73  12-31-98  11-13-58  09-20-57     X                                                                          West Virginia 01-23-64  10-23-89  03-29-99  12-28-60               X                                                                          Wisconsin     01-31-64  09-14-73  06-27-74  11-22-68               X                                                                          Wyoming       12-24-58  07-23-87  01-18-88  03-24-53               X                                                                          Puerto Rico   Cancelle                                                                 d 12-17-                     12    HMIC:      Horace Mann Insurance Company  TIC:       Teachers Insurance Company  HMP&CIC:  Horace Mann Property & Casualty Insurance Company  HMLIC:     Horace Mann Life Insurance Company  HMSC:      Horace Mann Service Corporation  ELICA:     Educators Life Insurance Company of America      

 

                Schedule 3.02(a)           SAP Exceptions               None.                            

 

                Schedule 3.04            Litigation                    None.                           

 

              Schedule 3.10          Subsidiaries                                                                                        

 

                  Schedule 3.11            Insurance Licenses                           None.                   

 

                                    Schedule 6.06                                 Restrictive Agreements                                                       1.   Restrictions pursuant to First Supplemental Indenture, dated as of June 9,  2005, by and between Borrower and The Bank of New York Mellon Trust Company, N.A., as  trustee (formerly JPMorgan Chase Bank, N.A. was trustee)               The Borrower cannot, and it cannot permit any Subsidiary, create, assume, incur  or permit to exist any indebtedness secured by a pledge, lien or other encumbrance on the voting  securities  of  any  “Significant  Subsidiary”  (as  defined  in  paragraph  (w)  of  Rule  1-02  of  Regulation S-X (17 CFR § 210.1-01, et seq.)), or the voting securities of a Subsidiary that owns,  directly  or  indirectly,  the  voting  securities  of  any  “Significant  Subsidiary”  without  making  effective  provision  whereby  the  outstanding  6.05%  Senior  Notes  due  June  15,  2015  shall  be  equally and ratably secured with such secured indebtedness so long as such other indebtedness  shall be secured.               2.   Restrictions pursuant to Second Supplemental Indenture, dated as of April  21, 2006, by and between Borrower and The Bank of New York Mellon Trust Company, N.A.,  as trustee (formerly JPMorgan Chase Bank, N.A. was trustee)               The Borrower cannot, and it cannot permit any Subsidiary, create, assume, incur  or permit to exist any indebtedness secured by a pledge, lien or other encumbrance on the voting  securities  of  any  “Significant  Subsidiary”  (as  defined  in  paragraph  (w)  of  Rule  1-02  of  Regulation S-X (17 CFR § 210.1-01, et seq.)), or the voting securities of a Subsidiary that owns,  directly  or  indirectly,  the  voting  securities  of  any  “Significant  Subsidiary”  without  making  effective  provision  whereby  the  outstanding  6.85%  Senior  Notes  due  April  15,  2016  shall  be  equally and ratably secured with such secured indebtedness so long as such other indebtedness  shall be secured.                                                  

 

                                                                       EXHIBIT A                          ASSIGNMENT AND ASSUMPTION               This Assignment  and Assumption (the “Assignment and Assumption”) is dated  as  of  the  Effective  Date  set  forth  below  and  is  entered  into  by  and  between  [Insert  name  of  Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”).  Capitalized terms  used  but  not  defined  herein  shall  have  the  meanings  given  to  them  in  the  Credit  Agreement  identified  below  (as  amended,  the  “Credit  Agreement”), receipt of a copy of which is hereby  acknowledged  by  the  Assignee.   The  Standard  Terms  and  Conditions  set  forth  in  Annex  1  attached hereto are hereby agreed to and incorporated herein by reference and made a part of this  Assignment and Assumption as if set forth herein in full.               For an agreed consideration, the Assignor hereby irrevocably sells and assigns to  the  Assignee,  and  the Assignee hereby  irrevocably  purchases  and assumes  from  the  Assignor,  subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement,  as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of the  Assignor’s rights and obligations in its capacity as a Lender under the Credit Agreement and any  other documents or instruments delivered pursuant thereto to the extent related to the amount and  percentage  interest  identified  below  of  all  of  such  outstanding  rights  and  obligations  of  the  Assignor under the facility identified below and (ii) to the extent permitted to be assigned under  applicable  law,  all  claims,  suits,  causes  of  action  and  any  other  right  of  the  Assignor  (in  its  capacity  as  a  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 or in any way based on or related to any of the  foregoing,  including  contract  claims,  tort  claims,  malpractice  claims,  statutory  claims  and  all  other claims at law or in equity related to the rights and obligations sold and assigned pursuant to  clause  (i)  above  (the  rights  and  obligations  sold  and  assigned  pursuant  to  clauses  (i)  and  (ii)  above  being  referred  to  herein  collectively  as  the  “Assigned  Interest”).   Such  sale  and  assignment  is  without  recourse  to  the  Assignor  and,  except  as  expressly  provided  in  this  Assignment and Assumption, without representation or warranty by the Assignor.   1.   Assignor:         ______________________________   2.   Assignee:         ______________________________                          [and is an Affiliate/Approved Fund of [identify Lender]]   3.   Borrower(s):      HORACE MANN EDUCATORS CORPORATION   4.   Administrative Agent:  PNC BANK, NATIONAL ASSOCIATION., as the                                administrative agent under the Credit Agreement   5.   Credit Agreement:  The Credit Agreement, dated as of June 21, 2019, among Horace                          Mann  Educators  Corporation,  the  Lenders  parties  thereto,  PNC                          Bank,  National  Association,  as  Administrative  Agent,  and  the                          other agents parties thereto               A-1  

 

   6.   Assigned Interest:       Aggregate Amount of             Amount of            Percentage Assigned of   Commitment/Loans for all  Commitment/Loans Assigned     Commitment/Loans2           Lenders  $                         $                                      %  $                         $                                      %  $                         $                                      %    Effective  Date:   _____________  ___,  20___  [TO  BE  INSERTED  BY  ADMINISTRATIVE  AGENT  AND  WHICH  SHALL  BE  THE  EFFECTIVE  DATE  OF  RECORDATION  OF  TRANSFER IN THE REGISTER THEREFOR.]   The  Assignee  agrees  to  deliver  to  the  Administrative  Agent  a  completed  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 and its 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.   The terms set forth in this Assignment and Assumption are hereby agreed to:                                       ASSIGNOR                                       [NAME OF ASSIGNOR]                                       By:______________________________                                      Title:                                       ASSIGNEE                                       [NAME OF ASSIGNEE]                                       By:______________________________                                      Title:                                                      2 Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.               A-2  

 

   [Consented to and]3 Accepted:   PNC BANK, NATIONAL ASSOCIATION, as  Administrative Agent   By_________________________________  Title:   [Consented to:]4   HORACE MANN EDUCATORS CORPORATION   By________________________________  Title:                                                         3 To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement.  4 To be added only if the consent of the Borrower is required by the terms of the Credit Agreement.               A-3  

 

                                                                        ANNEX 1                                                                STANDARD TERMS AND CONDITIONS FOR                         ASSIGNMENT AND ASSUMPTION               1.  Representations and Warranties.               1.1  Assignor.  The Assignor (a) represents and warrants that (i) it is the legal and  beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien,  encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all  action necessary, to execute and deliver this Assignment and Assumption and to consummate the  transactions  contemplated  hereby;  and  (b)  assumes  no  responsibility  with  respect  to  (i)  any  statements, warranties or representations made in or in connection with the Credit Agreement or  any  other  Loan  Document,  (ii)  the  execution,  legality,  validity,  enforceability,  genuineness,  sufficiency  or  value  of  the  Loan  Documents  or  any  collateral  thereunder,  (iii)  the  financial  condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in  respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its  Subsidiaries  or  Affiliates  or  any  other  Person  of  any  of  their respective  obligations  under  any  Loan Document.               1.2.  Assignee.  The Assignee (a) represents and warrants that (i) it has full power  and  authority,  and  has  taken  all  action  necessary,  to  execute  and  deliver  this  Assignment  and  Assumption and to consummate the transactions contemplated hereby and to become a Lender  under  the  Credit  Agreement,  (ii)  it  satisfies  the  requirements,  if  any,  specified  in  the  Credit  Agreement that are required to be satisfied by it in order to acquire the Assigned  Interest  and  become a Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of  the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall  have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement,  together with copies of the most recent financial statements delivered pursuant to Section 5.01  thereof, as applicable, and such other documents and information as it has deemed appropriate to  make its own credit analysis and decision to enter into this Assignment and Assumption and to  purchase  the  Assigned  Interest  on  the  basis  of  which  it  has  made  such  analysis  and  decision  independently and without reliance on the Administrative Agent or any other Lender, and (v) if it  is  a  Non-U.S.  Lender,  attached  to  the  Assignment  and  Assumption  is  any  documentation  required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and  executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on  the Administrative Agent, the Assignor or any other Lender, and based on such documents and  information as it shall deem appropriate at the time, continue to make its own credit decisions in  taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with  their terms all of the obligations which by the terms of the Loan Documents are required to be  performed by it as a Lender.               2.  Payments.  From and after the Effective Date, the Administrative Agent shall  make all payments in respect of the Assigned Interest (including payments of principal, interest,  fees and other amounts) to the Assignor for amounts which have accrued to but excluding the               A-4  

 

   Effective Date and to the Assignee for amounts which have accrued from and after the Effective  Date.               3.  General Provisions. This Assignment and Assumption shall be binding upon,  and inure to the benefit of, the parties hereto and their respective successors and assigns.  This  Assignment  and  Assumption  may  be  executed  in  any  number  of  counterparts,  which  together  shall constitute one instrument.  Delivery of an executed counterpart of a signature page of this  Assignment and Assumption by telecopy shall be effective as delivery of a manually executed  counterpart  of  this  Assignment  and  Assumption.   This  Assignment  and  Assumption  shall  be  governed by, and construed in accordance with, the law of the State of Illinois.               A-5  

 

                                                                       EXHIBIT B                                     [FORM OF]                                                                    COMPLIANCE CERTIFICATE                                             To:  The Lenders parties to the        Credit Agreement Described Below                  For the period ended         ,  20__,  this  Compliance  Certificate  is  furnished  pursuant  to  that  certain  Credit  Agreement,  dated  as  of  June  21,  2019  (as  amended,  modified,  renewed  or  extended  from  time  to  time,  the  “Agreement”),  among  Horace  Mann  Educators  Corporation  (the  “Borrower”),  the  lenders  party  thereto,  and  PNC  Bank,  National  Association, as Administrative Agent.  Unless otherwise defined herein, capitalized terms used  in this Compliance Certificate have the meanings ascribed thereto in the Agreement.   THE UNDERSIGNED HEREBY CERTIFIES THAT:               1.    I am a duly elected Executive Officer of the Borrower;               2.    I  have  reviewed  the  terms  of  the  Agreement  and  I  have  made,  or  have  caused to be made under my supervision, a detailed review of the transactions and conditions of  the Borrower and its Subsidiaries during the accounting period covered by the attached financial  statements;               3.    The examinations described in paragraph 2 did not disclose, and I have no  knowledge of, the existence of any condition or event which constitutes a Default or Event of  Default  during  or  at  the  time  of  the  accounting  period  covered  by  the  attached  financial  statements or as of the date of this Certificate, except as set forth below; and               4.    To the extent that there are any changes from the most recently delivered  Schedule 3.10, Schedule I attached hereto sets forth a current Schedule 3.10, setting forth each of  the  Borrower’s  Subsidiaries  and  indicating  which  Subsidiaries  are  Material  Insurance  Subsidiaries, accurate as of the date hereof.               5.    Schedule  II  attached  hereto  sets  forth  financial  data  and  computations  calculating each of FHLB Liquidity Debt, FHLB Operating Debt and Securities Lending, all of  which data and computations are true, complete and correct.               6.    Schedule  III  attached  hereto  sets  forth  financial  data  and  computations  evidencing  the  Borrower’s  compliance  with  certain  covenants  of  the  Agreement,  all  of  which  data and computations are true, complete and correct.               B-1  

 

                                                                                                                                                                                                          

 

   The foregoing certifications, together with the computations set forth in Schedule II hereto and  the financial statements delivered with this Certificate in support hereof, are made and delivered  this ___ day of ______, ____.                                             HORACE MANN EDUCATORS                                            CORPORATION                                                                                           Name:                                            Title:               B-3  

 

                       SCHEDULE I TO COMPLIANCE CERTIFICATE            Updated Schedule 3.10 as of _________, ____                                   B-4  

 

                      SCHEDULE II TO COMPLIANCE CERTIFICATE                Calculation of FHLB Liquidity Debt,           FHLB Operating Debt and Securities Lending    B-5  

 

                    SCHEDULE III TO COMPLIANCE CERTIFICATE                         Compliance as of _________, ____ with                    Provisions of Sections 6.01, 6.02, 6.03 and 6.10 of                                   the Agreement     Section 6.01 – Consolidated Debt to Total Capitalization         Required                                                    0.35:1.0          Actual                                    (a)     Consolidated Debt of the Borrower and its Consolidated $__________               Subsidiaries on date of determination:                                   (b)     Net Worth on date of determination:                 $__________                                   (c)     (a) plus (b):                                       $__________                                   (d)     Ratio of (a) to (c):                                     :1.0                                Section 6.02 – Net Worth                                     Required Minimum Net Worth:                                 $__________                                   Actual Net Worth:                                    Net Worth (excluding the effect of unrealized gain or loss under FASB       115):                                                       $__________       Section 6.03 – Minimum Risk-Based Capital (as of the end of any Fiscal Year)         Required:                                                   300%                                   Actual:           (a)  Horace Mann Life Insurance Company                                    (1)     Total Adjusted Capital on date of determination:    $__________                                   (2)     Company Action Level RBC on date of determination:  $__________               B-1  

 

                                    (3)     Ratio of (1) to (2) (expressed as a percentage):    ______%                                   (b)  The P/C Subsidiaries (taken as a whole)                                    (1)     Total Adjusted Capital on date of determination:    $__________                                   (2)     Company Action Level RBC on date of determination:  $__________                                   (3)     Ratio of (1) to (2) (expressed as a percentage):    ______%                                Section 6.10 – Securities Lending                                     Maximum market value of securities subject to Securities Lending:   $                   5                                   Actual market value of securities subject to Securities Lending $__________       (provided that the market value of any security subject to Securities       Lending shall be measured as of the time the applicable Securities       Lending transaction was entered into):                                                                                   5 Maximum Worth to be set at the Threshold Amount less the aggregate amount of FHLB Operating Debt  outstanding at time of reporting.               B-2  

 

                                                                     EXHIBIT C-1                                     [FORM OF]                                                                       U.S. TAX CERTIFICATE                                             (For Non-U.S. Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)               Reference is hereby made to the Credit Agreement, dated as of June 21, 2019 (as  amended,  supplemented  or  otherwise  modified  from  time  to  time,  the  “Credit  Agreement”),  among  Horace  Mann  Educators  Corporation,  PNC  Bank,  National  Association,  as  Administrative Agent, and each lender from time to time party thereto.               Pursuant  to  the  provisions  of  Section 2.14  of  the  Credit  Agreement,  the  undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as  well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate,  (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten  percent  shareholder  of  the  Borrower  within  the meaning  of  Section 871(h)(3)(B)  of  the  Code,  (iv) it  is  not  a  controlled  foreign  corporation  related  to  the  Borrower  as  described  in  Section 881(c)(3)(C)  of  the  Code  and  (v) the  interest  payments  in  question  are  not  effectively  connected with the undersigned’s conduct of a U.S. trade or business.               The undersigned has furnished the Administrative Agent and the Borrower with a  certificate of its non-U.S. person status on IRS Form W-8BEN.  By executing this certificate, the  undersigned  agrees  that  (1) if  the  information  provided  on  this  certificate  changes,  the  undersigned  shall  promptly  so  inform  the  Borrower  and  the  Administrative  Agent  and  (2) the  undersigned shall have at all times furnished the Borrower and the Administrative Agent with a  properly completed and currently effective certificate in either the calendar year in which each  payment is to be made to the undersigned, or in either of the two calendar years preceding such  payments.               Unless otherwise defined herein, terms defined in the Credit Agreement and used  herein shall have the meanings given to them in the Credit Agreement.   [NAME OF LENDER]   By:______________________________________     Name:     Title:   Date: ________ __, 20[  ]                 C-1-1  

 

                                                                     EXHIBIT C-2                                     [FORM OF]                                                                       U.S. TAX CERTIFICATE       (For Non-U.S. Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)               Reference is hereby made to the Credit Agreement, dated as of June 21, 2019 (as  amended,  supplemented  or  otherwise  modified  from  time  to  time,  the  “Credit  Agreement”),  among  Horace  Mann  Educators  Corporation,  PNC  Bank,  National  Association,  as  Administrative Agent, and each lender from time to time party thereto.               Pursuant  to  the  provisions  of  Section 2.14  of  the  Credit  Agreement,  the  undersigned  hereby  certifies  that  (i) it  is  the  sole  record  owner  of the  Loan(s)  (as  well  as  any  Note(s)  evidencing  such  Loan(s))  in  respect  of  which  it  is  providing  this  certificate,  (ii) its  partners/members  are  the  sole  beneficial  owners  of  such  Loan(s)  (as  well  as  any  Note(s)  evidencing  such  Loan(s)),  (iii) with  respect  to  the  extension  of  credit  pursuant  to  this  Credit  Agreement, neither the undersigned nor any of its partners/members is a bank extending credit  pursuant to a loan agreement entered into in the ordinary course of its trade or business within  the  meaning  of  Section 881(c)(3)(A)  of  the  Code,  (iv) none  of  its  partners/members  is  a  ten  percent  shareholder  of  the  Borrower  within  the meaning  of  Section 871(h)(3)(B)  of  the  Code,  (v) none of its partners/members is a controlled foreign corporation related to the Borrower as  described in Section 881(c)(3)(C) of the Code, and (vi) the interest payments in question are not  effectively connected with the undersigned’s or its partners/members’ conduct of a U.S. trade or  business.               The undersigned has furnished the Administrative Agent and the Borrower with  IRS Form W-8IMY accompanied by an IRS Form W-8BEN from each of its partners/members  claiming the portfolio interest exemption.  By executing this certificate, the undersigned agrees  that (1) if the information provided on this certificate changes, the undersigned shall promptly so  inform  the  Borrower  and  the  Administrative  Agent  and  (2) the  undersigned  shall  have  at  all  times  furnished  the  Borrower  and  the  Administrative  Agent  with  a  properly  completed  and  currently effective certificate in either the calendar year in which each payment is to be made to  the undersigned, or in either of the two calendar years preceding such payments.               Unless otherwise defined herein, terms defined in the Credit Agreement and used  herein shall have the meanings given to them in the Credit Agreement.   [NAME OF LENDER]   By:______________________________________     Name:     Title:               C-2-1  

 

   Date: ________ __, 20[  ]               C-2-2  

 

                                                                     EXHIBIT C-3                                     [FORM OF]                               U.S. TAX CERTIFICATE    (For Non-U.S. Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)               Reference is hereby made to the Credit Agreement, dated as of June 21, 2019 (as  amended,  supplemented  or  otherwise  modified  from  time  to  time,  the  “Credit  Agreement”),  among  Horace  Mann  Educators  Corporation,  PNC  Bank,  National  Association,  as  Administrative Agent, and each lender from time to time party thereto.               Pursuant  to  the  provisions  of  Section 2.14  of  the  Credit  Agreement,  the  undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation  in  respect  of  which  it  is  providing  this  certificate,  (ii) it  is  not  a  bank  within  the  meaning  of  Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within  the meaning of Section 871(h)(3)(B) of the Code, (iv) it is not a controlled foreign corporation  related  to  the  Borrower  as  described  in  Section 881(c)(3)(C)  of  the  Code,  and  (v) the  interest  payments  in  question  are  not  effectively  connected  with  the  undersigned’s  conduct  of  a  U.S. trade or business.               The  undersigned  has  furnished  its  participating  Lender  with  a  certificate  of  its  non-U.S. person  status  on  IRS Form  W-8BEN.   By  executing  this  certificate,  the  undersigned  agrees  that  (1) if  the  information  provided  on  this  certificate  changes,  the  undersigned  shall  promptly  so  inform  such  Lender  in  writing  and  (2) the  undersigned  shall  have  at  all  times  furnished such Lender with a properly completed and currently effective certificate in either the  calendar year in which each payment is to be made to the undersigned, or in either of the two  calendar years preceding such payments.               Unless otherwise defined herein, terms defined in the Credit Agreement and used  herein shall have the meanings given to them in the Credit Agreement.   [NAME OF LENDER]   By:______________________________________     Name:     Title:   Date: ________ __, 20[  ]                 C-3-1  

 

                                                                     EXHIBIT C-4                                     [FORM OF]                               U.S. TAX CERTIFICATE      (For Non-U.S. Participants That Are Partnerships For U.S. Federal Income Tax Purposes)               Reference is hereby made to the Credit Agreement, dated as of June 21, 2019 (as  amended,  supplemented  or  otherwise  modified  from  time  to  time,  the  “Credit  Agreement”),  among  Horace  Mann  Educators  Corporation,  PNC  Bank,  National  Association,  as  Administrative Agent, and each lender from time to time party thereto.               Pursuant  to  the  provisions  of  Section 2.14  of  the  Credit  Agreement,  the  undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of  which it is providing this certificate, (ii) its partners/members are the sole beneficial owners of  such  participation,  (iii) with  respect  such  participation,  neither  the  undersigned  nor  any  of  its  partners/members  is  a  bank  extending  credit  pursuant  to  a  loan  agreement  entered  into  in  the  ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code,  (iv) none  of  its  partners/members  is  a  ten  percent  shareholder  of  the  Borrower  within  the  meaning of Section 871(h)(3)(B) of the Code,  (v) none of its partners/members  is a controlled  foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code, and  (vi) the interest payments in question are not effectively connected with the undersigned’s or its  partners/members’ conduct of a U.S. trade or business.               The undersigned has furnished its participating Lender with IRS Form W-8IMY  accompanied by an IRS Form W-8BEN from each of its partners/members claiming the portfolio  interest  exemption.   By  executing  this  certificate,  the  undersigned  agrees  that  (1) if  the  information provided on this certificate changes, the undersigned shall promptly so inform such  Lender  and  (2) the  undersigned  shall  have  at  all  times  furnished  such  Lender  with  a  properly  completed and currently effective certificate in either the calendar year in which each payment is  to be made to the undersigned, or in either of the two calendar years preceding such payments.               Unless otherwise defined herein, terms defined in the Credit Agreement and used  herein shall have the meanings given to them in the Credit Agreement.   [NAME OF PARTICIPANT]   By:______________________________________     Name:     Title:   Date: ________ __, 20[  ]               C-4-1EX-4.1

 Exhibit 4.1 

SIXTEENTH SUPPLEMENTAL INDENTURE 

Dated as of June 24, 2019 

Supplementing that Certain 

INDENTURE 
 Dated as of
November 20, 2007 
 Between 

FISERV, INC. 
 and 

U.S. BANK NATIONAL ASSOCIATION, 

as Trustee 
 2.750% SENIOR NOTES
DUE 2024 

 TABLE OF CONTENTS 

 

							
	Article I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	  	 	1	 
		
	Article II ISSUANCE OF SECURITIES	  	 	10	 
			
	 Section 2.1
	 	 Issuance of Notes; Principal Amount; Maturity
	  	 	10	 
	 Section 2.2
	 	 Interest
	  	 	11	 
	 Section 2.3
	 	 Relationship with Indenture
	  	 	11	 
		
	Article III SECURITY FORMS	  	 	12	 
			
	 Section 3.1
	 	 Form Generally
	  	 	12	 
	 Section 3.2
	 	 Form of Note
	  	 	12	 
	 Section 3.3
	 	 Form of Purchase Notice
	  	 	20	 
	 Section 3.4
	 	 Form of Certificate of Authentication
	  	 	21	 
		
	Article IV REMEDIES	  	 	21	 
			
	 Section 4.1
	 	 Events of Default
	  	 	21	 
	 Section 4.2
	 	 Acceleration of Maturity; Rescission and Annulment
	  	 	23	 
		
	Article V REDEMPTION OF SECURITIES	  	 	23	 
			
	 Section 5.1
	 	 Optional Redemption
	  	 	23	 
	 Section 5.2
	 	 Optional Tax Redemption
	  	 	24	 
	 Section 5.3
	 	 Optional Redemption Procedures
	  	 	24	 
	 Section 5.4
	 	 Special Mandatory Redemption
	  	 	26	 
		
	Article VI PARTICULAR COVENANTS	  	 	27	 
			
	 Section 6.1
	 	 Liens
	  	 	27	 
	 Section 6.2
	 	 Sale and Lease-Back Transactions
	  	 	29	 
	 Section 6.3
	 	 Right to Require Repurchase Upon a Change of Control Triggering Event
	  	 	30	 
	 Section 6.4
	 	 Additional Amounts
	  	 	31	 
		
	Article VII SUPPLEMENTAL INDENTURES	  	 	33	 
			
	 Section 7.1
	 	 Supplemental Indentures without Consent of Holders of Notes
	  	 	33	 
	 Section 7.2
	 	 Supplemental Indentures with Consent of Holders of Notes
	  	 	35	 
		
	Article VIII CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE	  	 	36	 
			
	 Section 8.1
	 	 Company May Consolidate, Etc. on Certain Terms
	  	 	36	 
	 Section 8.2
	 	 Successor Corporation Substituted
	  	 	37	 

  
 i 

							
		
	Article IX NO GUARANTORS	  	 	37	 
		
	Article X DEFEASANCE	  	 	37	 
			
	 Section 10.1
	 	 Covenant Defeasance
	  	 	37	 
		
	Article XI MISCELLANEOUS	  	 	37	 
			
	 Section 11.1
	 	 Survivability, Governing Law, etc
	  	 	37	 

  
 ii 

 This Sixteenth Supplemental Indenture, dated as of June 24, 2019 (the
“Supplemental Indenture”), between Fiserv, Inc., a corporation duly organized and existing under the laws of the State of Wisconsin, having its principal office at 255 Fiserv Drive, Brookfield, Wisconsin (herein called the
“Company”), and U.S. Bank National Association, a national banking association, as trustee hereunder (herein called the “Trustee”), supplements that certain Indenture, dated as of November 20, 2007, among the
Company, certain subsidiaries of the Company and the Trustee (the “Indenture”). 
 RECITALS OF THE COMPANY 

A.    The Company has duly authorized the execution and delivery of the Indenture to provide for the issuance from time to
time of its unsecured debentures, notes, or other evidences of indebtedness to be issued in one or more series as provided for in the Indenture. 

B.    The Indenture provides that the Securities of each series shall be in substantially the form set forth in the
Indenture, or in such other form as may be established by or pursuant to a Board Resolution or in one or more supplemental indentures thereto, in each case with such appropriate insertions, omissions, substitutions, and other variations as are
required or permitted by the Indenture, and may have such letters, numbers, or other marks of identification and such legends or endorsements placed thereon as may be required to comply with the rules of any securities exchange or Depositary
therefor, the Code, or any applicable securities laws, or as may, consistently herewith, be determined by the officers executing such Securities, as evidenced by their execution thereof. 

C.    The Company and the Trustee have agreed that the Company shall issue and deliver, and the Trustee shall
authenticate, Securities denominated as its “2.750% Senior Notes due 2024” pursuant to the terms of this Supplemental Indenture and substantially in the form set forth in Section 3.2 below, in each case with such appropriate
insertions, omissions, substitutions, and other variations as are required or permitted by the Indenture and this Supplemental Indenture, and with such letters, numbers, or other marks of identification and such legends or endorsements placed
thereon as may be required to comply with the rules of any securities exchange or Depositary therefor, the Code, or any applicable securities laws, or as may, consistently herewith, be determined by the officers executing such Notes, as evidenced by
their execution of such Notes. 
 ARTICLE I 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 

Section 1.1    Definitions. 

The terms defined in this Section 1.1 have the respective meanings specified in this Section 1.1 for all purposes of this
Supplemental Indenture and of any indenture supplemental hereto (except as herein or therein otherwise expressly provided or unless the context of this Supplemental Indenture or such indenture supplemental hereto otherwise requires): 

“Additional Amounts” has the meaning specified in Section 6.4. 

  
 1 

 “Additional Notes” means any Notes (other than the Initial Notes) issued
pursuant to this Supplemental Indenture in accordance with Section 2.1(2) as part of the same series and with the same CUSIP number as the Initial Notes; provided that if any Additional Notes are issued at a price that causes such
Additional Notes to have “original issue discount” within the meaning of the Code, such Additional Notes shall not have the same CUSIP number as the Initial Notes. 

“Affiliate” means, with respect to any specified Person. any other Person directly or indirectly controlling or controlled by
or under direct or indirect common control with such specified Person. For the purposes of this definition, “control,” when used with respect to any specified 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. 

“Applicable Procedures” means, with respect to any transfer or transaction involving a Global Security or beneficial interest
therein, the rules and procedures of DTC, Euroclear, Clearstream or any other Depositary, in each case to the extent applicable to such transaction and as in effect from time to time. 

“Applicable Threshold” has the meaning specified in the definition of “Permitted Sale-Leaseback Transaction.” 

“Applied Amounts” has the meaning specified in the definition of “Permitted Sale-Leaseback Transaction.” 

“Attributable Value” means, in respect of any sale-leaseback transaction, as of the time of determination, the lesser of
(a) the sale price of the Principal Property involved in such transaction multiplied by a fraction the numerator of which is the remaining portion of the base term of the lease included in such sale-leaseback transaction and the denominator of
which is the base term of such lease and (b) the present value (discounted at the rate of interest implicit in such transaction) of the total obligations of the lessee for rental payments during the remaining term of the lease involved in such
transaction (including any period for which the lease has been extended). 
 “Below Investment Grade Rating Event” means
that the rating of the Notes is lowered by each of the Rating Agencies and the Notes are rated below an Investment Grade Rating by each of the Rating Agencies, and such lowering occurs on any date from the date of the public notice of the
Company’s intention to effect a Change of Control until the end of the 60-day period following public notice of the occurrence of a Change of Control (which 60-day period shall be extended so long as the rating of the Notes is under publicly
announced consideration for possible downgrade by either of the Rating Agencies as a result of the Change of Control); provided that a Below Investment Grade Rating Event otherwise arising by virtue of a particular reduction in rating shall
not be deemed to have occurred in respect to a particular Change of Control (and thus shall not be deemed a Below Investment Grade Rating Event for purposes of the definition of Change of Control Triggering Event hereunder) if the Rating

  
 2 

 
Agency or Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform the Trustee and the Company in writing at its
or the Company’s request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of
Control shall have occurred at the time of the Below Investment Grade Rating Event). 
 “Business Day” means any day other
than a Saturday, Sunday or other day on which banking institutions in The City of New York are authorized or obligated by law, regulation or executive order to close. 

“Capital Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents
(however designated) of capital stock of such Person and all warrants or options to acquire such capital stock. 
 “Change of
Control” means the occurrence of any of the following: (1) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all
or substantially all of the properties and assets of the Company and its Subsidiaries taken as a whole to any “person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act) other than the Company or
one of its Subsidiaries; (2) the approval by the holders of the Common Stock of any plan or proposal for the liquidation or dissolution of the Company (whether or not otherwise in compliance with the provisions of this Supplemental Indenture);
(3) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act)
becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the then outstanding
number of shares of the Company’s Voting Stock; or (4) the Company consolidates or merges with or into any entity, pursuant to a transaction in which any of the outstanding Voting Stock of the Company or such other entity is converted into
or exchanged for cash, securities or other Property (except when Voting Stock of the Company is converted into, or exchanged for, at least a majority of the Voting Stock of the surviving Person). 

“Change of Control Offer” has the meaning specified in Section 6.3(1). 

“Change of Control Payment” has the meaning specified in Section 6.3(1). 

“Change of Control Purchase Date” has the meaning specified in Section 6.3(3)(iii). 

“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Below Investment Grade Rating
Event. 
 “Clearstream” means Clearstream Banking, S.A. 

“Code” has the meaning specified in Section 2.1(2). 

  
 3 

 “Common Stock” means shares of the Company’s Common Stock, par value
$0.01 per share, as they exist on the date of this Supplemental Indenture or any other shares of Capital Stock of the Company into which the Common Stock shall be reclassified or changed. 

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

“Comparable Treasury Price” means, with respect to any Redemption Date occurring prior to the Par Call Date: (i) the
average of the Reference Treasury Dealer Quotations for the Redemption Date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Independent Investment Banker obtains fewer than four Reference
Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations for the Redemption Date so obtained. 

“Covenant Defeasance” has the meaning set forth in the Indenture except that the covenants included in such definition
(including for purposes of determining whether an Event of Default under Section 501(4) of the Indenture shall have occurred) shall include those specified in, or added pursuant to, as the case may be, Sections 6.1, 6.2, 6.4, 7.1(2) and Article
VIII of this Supplemental Indenture. 
 “Default” means any event that is, or after notice or passage of time, or both,
would be, an Event of Default. 
 “DTC” means The Depository Trust Company, a New York corporation. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time. 

“Euroclear” means Euroclear Bank S.A./N.V., as operator of the Euroclear system. 

“Event of Default” has the meaning specified in Section 4.1. 

“FIN 46 Entity” means any Person, the financial condition and results of which, solely due to Accounting Standards
Codification 810 or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect (as amended, restated, supplemented, replaced or otherwise modified from time to time), such Person is required
to consolidate in its financial statements. For purposes of this definition, “controlled” 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. 
 “First Data” means First Data Corporation, a
Delaware corporation. 

  
 4 

 “GAAP” means generally accepted accounting principles in the United States.

 “Indebtedness” means, with respect to any Person, (a) all indebtedness for borrowed money of such Person,
(b) all obligations of such Person evidenced by notes, bonds, debentures or similar instruments and (c) all indebtedness of any other Person of the foregoing types to the extent guaranteed by such Person, but only, for each of clauses
(a) through (c), if and to the extent any of the foregoing indebtedness would appear as a liability upon an unconsolidated balance sheet of such Person prepared in accordance with GAAP (but not including contingent liabilities which appear only
in a footnote to a balance sheet); provided, however, that, notwithstanding anything to the contrary contained herein, for purposes of this definition, “Indebtedness” shall not include (1) any intercompany indebtedness
between or among the Company and its Subsidiaries, (2) any indebtedness that has been defeased and/or discharged if funds in an amount equal to all such indebtedness (including interest and any other amounts required to be paid to the holders
thereof in order to give effect to such defeasance) have been irrevocably deposited with a trustee, paying agent or other similar Person for the benefit of the relevant holders of such indebtedness or (3) interest, fees, make-whole amounts,
premium, charges or expenses, if any, relating to the principal amount of indebtedness. 
 “Independent Investment Banker”
means one of the Reference Treasury Dealers appointed by the Company. 
 “Initial Notes” means Notes in an aggregate
principal amount of up to $2,000,000,000 initially issued under this Supplemental Indenture in accordance with Section 2.1(2). 

“Interest Payment Date” has the meaning specified in Section 2.2(2). 

“Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent under any successor rating category)
by Moody’s, BBB- (or the equivalent under any successor rating category) by S&P and the equivalent investment grade rating by any other Rating Agency, respectively. 

“Lien” means any mortgage, pledge, lien or encumbrance. 

“Margin Stock” means any “margin stock” (as said term is defined in Regulation U of the Board of Governors of the
Federal Reserve System of the United States of America, as the same may be amended or supplemented from time to time). 
 “Maturity
Date” means July 1, 2024. 
 “Merger” means the acquisition by the Company of First Data by means of the
merger of 300 Holdings, Inc., a Delaware corporation and Wholly-Owned Subsidiary of the Company, with and into First Data pursuant to the Merger Agreement (or as otherwise may be agreed by the parties to the Merger Agreement). 

“Merger Agreement” means the Agreement and Plan of Merger, dated as of January 16, 2019, by and among the Company, 300
Holdings, Inc. and First Data, as amended, supplemented or otherwise modified from time to time. 

  
 5 

 “Moody’s” means Moody’s Investors Service, Inc., or its
successor. 
 “Net Worth” means, at any date, the sum of all amounts that would be included under shareholders’ equity
on a consolidated balance sheet of the Company and its Subsidiaries determined in accordance with GAAP on such date or, in the event such date is not a fiscal quarter end, as of the immediately preceding fiscal quarter end; provided that, for
purposes of calculating shareholders’ equity, any accumulated other comprehensive income or loss, in each case as reflected on such consolidated balance sheet of the Company and its Subsidiaries determined in accordance with GAAP, shall be
excluded; provided, further, that “Net Worth” shall be adjusted to give effect to each acquisition and disposition of assets other than in the ordinary course of business (including by way of merger) that has occurred on or
prior to the date on which Net Worth is being calculated but after the immediately preceding quarter end as if such acquisition or disposition had occurred on the date of such immediately preceding quarter end. 

“Notes” means the 2.750% Senior Notes due 2024 or any of them (each, a “Note”), as amended or supplemented
from time to time, that are issued under this Supplemental Indenture, including both the Initial Notes and the Additional Notes, if any. 

“Notice of Default” means a written notice of the kind specified in Section 4.1(3) or (4). 

“Outside Date” means April 16, 2020 or such later date to which the Termination Date (as such term is defined in the
Merger Agreement) is extended by agreement of the parties to the Merger Agreement. 
 “Par Call Date” means June 1,
2024. 
 “Permitted Sale-Leaseback Transactions” means any sale or transfer by the Company or any of its Restricted
Subsidiaries of any Principal Property owned by the Company or any of its Restricted Subsidiaries with the intention of taking back a lease thereof; provided, however, that “Permitted Sale-Leaseback Transactions” shall not
include any such transaction involving machinery and/or equipment (excluding any lease for a temporary period of not more than thirty-six months with the intent that the use of the subject machinery and/or
equipment will be discontinued at or before the expiration of such period) relating to facilities (a) in full operation for more than 180 days as of the date of this Supplemental Indenture and (b) that are material to the business of the
Company and its Subsidiaries, taken as a whole, to the extent that the aggregate Attributable Value of the machinery and/or equipment from time to time involved in such transactions (giving effect to payment in full under any such transaction and
excluding the Applied Amounts, as defined in the following sentence), plus the amount of obligations and Indebtedness from time to time secured by Liens incurred under Section 6.1(18), exceeds the greater of (i) $1,000 million and
(ii) 15.0% of Net Worth as determined at the time of, and immediately after giving effect to, the incurrence of such transactions based on the balance sheet for the end of the most recent quarter for which financial statements are available
(such greater amount, the “Applicable Threshold”). For purposes of this definition, “Applied Amounts” means an amount (which may be conclusively determined by the Board of Directors of the Company) equal to the
greater of (i) capitalized rent with respect to the applicable machinery and/or 

  
 6 

 
equipment and (ii) the fair value of the applicable machinery and/or equipment, that is applied within 180 days of the applicable transaction or transactions to repayment of the Notes
or to the repayment of any indebtedness for borrowed money which, in accordance with GAAP, is classified as long-term debt and that is on parity with the Notes. 

“Primary Treasury Dealer” means a primary U.S. government securities dealer in The City of New York. 

“Principal Property” means the real property, fixtures, machinery and equipment relating to any facility owned by the Company
or any Restricted Subsidiary, except for any facility that, in the opinion of the Company’s Board of Directors, is not of material importance to the business conducted by the Company and its Subsidiaries, taken as a whole. 

“Property” means, with respect to any Person, all types of real, personal or mixed property and all types of tangible or
intangible property owned or leased by such Person. 
 “Purchase Notice” means a notice delivered by a Holder in accordance
with Section 6.3 in the form set forth in Section 3.3. 
 “Rating Agency” means (1) each of Moody’s and
S&P; and (2) if any of Moody’s or S&P ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating
organization” within the meaning of Rule 3(a)(62) under the Exchange Act selected by the Company (as certified by an officer of the Company to the Trustee) as a replacement agency for Moody’s or S&P, or both of them, as the case may
be. 
 “Redemption Date” means, when used with respect to any Note to be redeemed, the date fixed for such redemption by or
pursuant to this Supplemental Indenture. 
 “Redemption Price” means, when used with respect to any Note to be redeemed,
the price at which it is to be redeemed pursuant to this Supplemental Indenture. 
 “Reference Treasury Dealer Quotations”
means, with respect to each Reference Treasury Dealer and any Redemption Date occurring prior to the Par Call Date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue,
expressed in each case as a percentage of its principal amount, quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer at approximately 3:30 p.m. New York City time, on the third Business Day preceding such
Redemption Date. 
 “Reference Treasury Dealer” means each of (i) J.P. Morgan Securities LLC, Citigroup Global Markets
Inc. and Wells Fargo Securities, LLC; provided that, if any of the foregoing or their Affiliates shall cease to be a Primary Treasury Dealer, the Company will substitute therefor another Primary Treasury Dealer, and (ii) any other
Primary Treasury Dealers selected by the Company. 

  
 7 

 “Registrar” means the Security Registrar for the Notes, which shall
initially be U.S. Bank National Association, or any successor entity thereof, subject to replacement as set forth in the Indenture. 

“Regular Record Date” means, for interest payable in respect of any Note on any Interest Payment Date, the day (whether or
not a Business Day) that is 15 days prior to the relevant Interest Payment Date. 
 “Restricted Subsidiary” means any
Subsidiary of the Company that constitutes a “significant subsidiary” (as such term is defined in Regulation S-X, promulgated pursuant to the Securities Act), excluding: (i) Bastogne, Inc. and
any bankruptcy-remote, special-purpose entity created in connection with the financing of settlement float with respect to customer funds or otherwise, (ii) any Subsidiary which is not organized under the laws of any state of the United States
of America; (iii) any Subsidiary which conducts the major portion of its business outside the United States of America; and (iv) any Subsidiary of any of the foregoing. 

“S&P” means S&P Global Ratings, a division of S&P Global Inc., or its successor. 

“Second Change of Control Purchase Date” has the meaning specified in Section 6.3(6). 

“Securities Act” means the Securities Act of 1933, as amended. 

“Securitized Indebtedness” means, with respect to any Person as of any date, the reasonably expected liability of such Person
for the repayment of, or otherwise relating to, all accounts receivable, general intangibles, chattel paper or other financial assets and related rights and assets sold or otherwise transferred by such Person, or any Subsidiary or Affiliate thereof,
on or prior to such date. 
 “Special Mandatory Redemption” has the meaning specified in Section 5.4. 

“Special Mandatory Redemption Date” means the date specified in the notice of special mandatory redemption described in
Section 5.4 hereof, which date shall be a Business Day that is no earlier than three days and no later than 30 days from the date of such notice. 

“Special Mandatory Redemption Price” means an amount equal to 101% of the aggregate principal amount of the Notes plus
accrued and unpaid interest, if any, to, but not including, the Special Mandatory Redemption Date. 
 “Stated Maturity”
means, when used with respect to the Notes or any installment of principal thereof or interest, if any, thereon, the date specified in such Note as the fixed date on which the principal of the Note or such installment of principal or interest, if
any, is due and payable. 
 “Subsidiary” means, with respect to any Person (the “parent”), 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

  
 8 

 
financial statements were prepared in accordance with GAAP (excluding any FIN 46 Entity, but only to the extent that the owners of such FIN 46 Entity’s Indebtedness have no recourse,
directly or indirectly, to such Person or any of its Subsidiaries for the principal, premium, if any, and interest on such Indebtedness) as of such date, as well as any other corporation, limited liability company, partnership, association or other
entity 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 by such Person. 
 “Surviving Person” has the meaning specified in Section 8.1. 

“Taxes” means any present or future tax, duty, levy, impost, assessment or other governmental charge (including penalties,
interest and other liabilities related thereto). 
 “Taxing Jurisdiction” has the meaning specified in Section 6.4.

 “Treasury Rate” means, with respect to any Redemption Date occurring prior to the Par Call Date, the rate per year equal
to the semi-annual equivalent yield to maturity (on a day count basis) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price
for such Redemption Date. 
 “Voting Stock” means, with respect to any Person, all classes of Capital Stock entitled
(without regard to the occurrence of any contingency) to vote generally in the election of directors, managers or trustees of such Person. 

“Wholly-Owned Subsidiary” means, with respect to any Person, (i) any corporation, association or other business entity
of which 100% of the Voting Stock thereof is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of such Person (or a combination thereof) and (ii) any partnership, limited liability
company or similar pass-through entity of which the sole partners, members or other similar persons in corresponding roles, however designated, are such Person or one or more Subsidiaries of such Person (or any combination thereof). 

Section 1.2    Provisions of General Application. 

For all purposes of this Supplemental Indenture and of any indenture supplemental hereto (except as herein or therein otherwise expressly
provided or unless the context of this Supplemental Indenture or such indenture supplemental hereto otherwise requires): 

(1)    the terms defined in this Article include the plural as well as the singular; 

(2)    other terms used in this Supplemental Indenture that are defined in the Indenture or the Trust Indenture Act, either
directly or by reference therein, have the respective meanings assigned to such terms in the Indenture or the Trust Indenture Act, as the case may be, as in force at the date of this Supplemental Indenture as originally executed; 

  
 9 

 (3)    all accounting terms not otherwise defined in the Indenture or
this Supplemental Indenture have the meanings assigned to them in accordance with GAAP as in effect on the date of this Supplemental Indenture, but (i) without giving effect to any election under 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 Company or any Subsidiary of the Company at “fair value,” as defined therein and (ii) without giving effect to any treatment of Indebtedness in respect of convertible debt instruments under Accounting Standards Codification 470-20 (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. 
 (4)    unless the context
otherwise requires, any reference to an “Article” or a “Section” refers to an Article or a Section, as the case may be, of this Supplemental Indenture; and 

(5)    the words “herein,” “hereof,” “hereunder” and other words of similar import refer to
this Supplemental Indenture as a whole and not to any particular Article, Section or other subdivision. 
 ARTICLE II 

ISSUANCE OF SECURITIES 

Section 2.1    Issuance of Notes; Principal Amount; Maturity. 

(1)    On June 24, 2019, the Company shall issue and deliver to the Trustee, and the Trustee shall authenticate, the
Initial Notes substantially in the form set forth in Section 3.2 below, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by the Indenture and this Supplemental Indenture,
and with such letters, numbers, or other marks of identification and such legends or endorsements placed thereon as may be required to comply with the rules of any securities exchange or Depositary therefor, the Code, or any applicable securities
laws, or as may, consistently herewith, be determined by the officers executing such Notes, as evidenced by their execution of such Notes. 

(2)    The Initial Notes to be issued pursuant to this Supplemental Indenture shall be issued in the aggregate principal
amount of $2,000,000,000 and shall mature on July 1, 2024 unless the Notes are redeemed or repurchased prior to that date in accordance with the provisions set forth in Sections 5.1, 5.2, 5.4 or 6.3 hereof. The Initial Notes will be
offered by the Company at a price of 99.832% of the aggregate principal amount of such series. The aggregate principal amount of Initial Notes Outstanding at any time may not exceed $2,000,000,000, except for Notes issued, authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes of the series pursuant to Sections 304, 305, 306, 906 or 1107 of the Indenture and except for any Notes which, pursuant to Section 303 of the
Indenture, are deemed never to have been authenticated and delivered. The Company may without the 

  
 10 

 
consent of the Holders, issue Additional Notes hereunder on the same terms and conditions (except for the issue date, public offering price and, if applicable, the payment of interest accruing
prior to the issue date and the initial Interest Payment Date) and with the same CUSIP numbers as the Initial Notes; provided that, if any Additional Notes are issued at a price that causes such Additional Notes to have “original issue
discount” within the meaning of Section 1273 of the United States Internal Revenue Code of 1986, as amended, and regulations of the United States Department of Treasury thereunder (the “Code”), such Additional Notes shall
not have the same CUSIP number as the Initial Notes. 
 (3)    The Notes shall be issued only in fully registered form
without coupons in minimum denominations of $2,000 and any integral multiple of $1,000 in excess thereof. 

Section 2.2    Interest. 

(1)    Interest on the Notes will accrue at the per annum rate of 2.750% and will be paid on the basis of a 360-day year
of twelve 30-day months. 
 (2)    The Company shall pay interest on the Notes semi-annually in arrears on
January 1 and July 1 of each year (each, an “Interest Payment Date”), commencing January 1, 2020. 

(3)    Interest shall be paid on each Interest Payment Date to the registered Holders of the Notes on the Regular Record
Date in respect of such Interest Payment Date. 
 (4)    Neither the Company nor the Trustee shall impose any service
charge for any transfer or exchange of a Note. However, the Company may ask Holders of the Notes to pay any taxes or other governmental charges in connection with a transfer or exchange of Notes. 

(5)    If any Interest Payment Date, Maturity Date, Redemption Date, Special Mandatory Redemption Date or Change of
Control Purchase Date falls on a day that is not a Business Day, the Company will make the required payment of principal, premium, if any, and/or interest on the next such Business Day as if it were made on the date payment was due, and no interest
will accrue on the amount so payable for the period from and after that Interest Payment Date, the Maturity Date or earlier Redemption Date, Special Mandatory Redemption Date or Change of Control Purchase Date, as the case may be, to the next such
Business Day. 
 Section 2.3    Relationship with Indenture. 

The terms and provisions contained in the Indenture will constitute, and are hereby expressly made, a part of this Supplemental Indenture.
However, to the extent any provision of the Indenture conflicts with the express provisions of this Supplemental Indenture, the provisions of this Supplemental Indenture will govern and be controlling. 

  
 11 

 ARTICLE III 

SECURITY FORMS 

Section 3.1    Form Generally. 

(1)    The Notes shall be in substantially the form set forth in Section 3.2 of this Article, with such appropriate
insertions, omissions, substitutions and other variations as are required or permitted by this Supplemental Indenture and the Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed
thereon as may be required to comply with the rules of any securities exchange or Depositary therefor, the Code, or any applicable securities laws, or as may, consistently herewith, be determined by the officers executing such Notes, as evidenced by
their execution of such Notes. All Notes shall be in fully registered form. 
 (2)    Purchase Notices shall be in
substantially the form set forth in Section 3.3. 
 (3)    The Trustee’s certificates of authentication shall
be in substantially the form set forth in Section 3.4. 
 (4)    The Notes shall be printed, lithographed,
typewritten or engraved or produced by any combination of these methods or may be produced in any other manner permitted by the rules of any automated quotation system or securities exchange (including on steel engraved borders if so required by any
securities exchange upon which the Notes may be listed) on which the Notes may be quoted or listed, as the case may be, all as determined by the officers executing such Notes, as evidenced by their execution thereof. 

(5)    Upon their original issuance, the Notes shall be issued in the form of one or more Global Securities (each, a
“Global Note”) in definitive, fully registered form without interest coupons. Each such Global Note shall be registered in the name of DTC, as Depositary, or its nominee, and deposited with the Trustee, as custodian for DTC.
Beneficial interests in the Global Notes will be shown on, and transfers will only be made through, the records maintained by DTC and its participants, including Clearstream and the Euroclear System. 

Section 3.2    Form of Note. 

[FORM OF FACE] 
 [THE
FOLLOWING LEGEND SHALL APPEAR ON THE FACE OF EACH GLOBAL SECURITY: 
 THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A NOTE REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN
THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.] 

  
 12 

 [THE FOLLOWING LEGEND SHALL APPEAR ON THE FACE OF EACH GLOBAL SECURITY FOR WHICH DTC IS
TO BE THE DEPOSITARY: 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW
YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 
 FISERV, INC. 

2.750% SENIOR NOTE DUE 2024 
  

			
	No. _____________	  	$_____________
		
	CUSIP NO. 337738 AS7	  	

 Fiserv, Inc., a corporation duly organized and existing under the laws of the State of Wisconsin (herein
called the “Company”, which term includes any successor Person under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of
United States Dollars _____________ (U.S.$_____________) on July 1, 2024 and to pay interest thereon, from June 24, 2019, or from the most recent Interest Payment Date to which interest has been paid or duly provided for to but excluding
the next Interest Payment Date, which shall be January 1 and July 1 of each year, commencing January 1, 2020, at the per annum rate of 2.750%, until the principal hereof is paid or made available for payment. 

The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to
the Person in whose name this Note is registered at the close of business on the Regular Record Date for such interest, which shall be the day that is 15 days prior to the relevant Interest Payment Date (whether or not a Business Day). Except as
otherwise provided in the Indenture, any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Note is
registered at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Company, notice of which shall be given to Holders of Notes not less than 10 days prior to the Special Record Date, or be paid
at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture.
Interest will be computed on the basis of a 360-day year composed of twelve 30-day months. 

  
 13 

 Payments of principal (and premium, if any) and interest on this Note will be made at the
corporate trust office of the Trustee at 60 Livingston Avenue, Mail Code EP-MN W2ZW, St. Paul, Minnesota 55107-2292 or the office maintained from time to time by the Trustee in The City of New York, in
such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts. With respect to Global Notes, the Company will make such payments by wire transfer of immediately
available funds to DTC, or its nominee, as registered owner of the Global Notes. With respect to certificated Notes, the Company will make such payments by wire transfer of immediately available funds to a United States Dollar account maintained in
The City of St. Paul, Minnesota or The City of New York to each Holder of an aggregate principal amount of Notes in excess of U.S. $5,000,000 that has furnished wire instructions in writing to the Trustee no later than 15 days prior to the relevant
payment date. If a Holder of a certificated Note (i) does not furnish such wire instructions as provided in the preceding sentence or (ii) holds $5,000,000 or less aggregate principal amount of Notes, the Company will make such payments by
mailing a check to such Holder’s registered address. 
 Reference is hereby made to the further provisions of this Note set forth on
the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the
certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

 

			
	 FISERV, INC.

		
	By:	 	 
		 	 Name:

		 	 Title:

  

			
	 Attest:

		
	By:	 	 
		 	 Name:

		 	 Title:

  
 14 

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

			
	 Dated:

	
	 U.S. BANK NATIONAL ASSOCIATION,

as Trustee

		
	By:	 	 
		 	 Authorized Signatory

  
 15 

 [FORM OF REVERSE OF NOTE] 

 

	1.	 Indenture. This Note is one of a duly authorized issue of Securities of the Company designated as its
“2.750% Senior Notes due 2024” (herein called the “Notes”), issued under an Indenture, dated as of November 20, 2007 (the “Base Indenture”), as supplemented by that certain Sixteenth Supplemental
Indenture, dated as of June 24, 2019 (the “Supplemental Indenture” and herein with the Base Indenture, collectively, the “Indenture”), between the Company and U.S. Bank National Association, as Trustee (herein
called the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of
rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Notes and of the terms upon which the Notes are, and are to be, authenticated and delivered. The aggregate principal amount of Initial Notes Outstanding at
any time may not exceed $2,000,000,000 in aggregate principal amount, except for Notes issued, authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes pursuant to Sections 304, 305, 306, 906 or
1107 of the Base Indenture and except for any Notes which, pursuant to Section 303 of the Base Indenture, are deemed never to have been authenticated and delivered. Additional Notes may be issued in accordance with the provisions of
Section 2.1(2) of the Supplemental Indenture. 

 All terms used in this Note which are defined in the Indenture shall
have the meanings assigned to them in the Indenture. In the event of a conflict between this Note and the Indenture, the provisions of the Indenture shall govern. 
  

	2.	 Optional Redemption. At any time and from time to time prior to the Par Call Date, the Company may at
its option redeem all or a part of the Notes pursuant to Section 5.1 of the Supplemental Indenture upon not more than 60 nor less than 10 days prior notice, except that notice may be given more than 60 days prior to the date fixed for
redemption if the notice is issued in connection with a Defeasance, Covenant Defeasance or satisfaction and discharge, at a redemption price equal to the greater of: (i) 100% of the aggregate principal amount of any Notes being redeemed; or
(ii) the sum of the present values of the remaining scheduled payments of principal of and interest on the Notes to be redeemed (exclusive of unpaid interest accrued thereon to the Redemption Date) that would have been due if the Notes matured
on the Par Call Date, discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year of twelve 30 day months) at the Treasury Rate plus 15 basis points, plus, in each case, accrued and unpaid interest on the Notes being
redeemed to, but not including, the Redemption Date. At any time and from time to time on or after the Par Call Date, the Company may at its option redeem all or a part of the Notes upon not more than 60 nor less than 10 days prior notice, at a
redemption price equal to 100% of the aggregate principal amount of the Notes being redeemed, plus accrued and unpaid interest on the Notes being redeemed to, but not including, the Redemption Date. 

 

	3.	 Optional Tax Redemption. The Notes may be redeemed pursuant to Section 5.2 of the Supplemental
Indenture, at the Surviving Person’s option, in whole but not in part, upon not less than 10 nor more than 60 days’ prior notice, at a redemption price equal to 100% 

  
 16 

	 	
of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest on the principal amount being redeemed (and any Additional Amounts) to, but not including, the Redemption
Date, if (i) at any time following a transaction to which the provisions of Section 801 of the Indenture applies, the Surviving Person is required to pay Additional Amounts pursuant to Section 6.4 of the Supplemental Indenture and
(ii) such obligation cannot be avoided by the Surviving Person taking reasonable measures available to it. Prior to the giving of any notice of redemption in respect of the foregoing, the Surviving Person will deliver to the Trustee an opinion
of independent tax counsel of recognized standing to the effect that the Surviving Person is or would be obligated to pay such Additional Amounts. No notice of redemption in respect of the foregoing may be given earlier than 90 days prior to the
earliest date on which the Surviving Person would be obligated to pay Additional Amounts if a payment in respect of the relevant Notes were then due. 

  

	4.	 Mandatory Redemption. Except as provided in Sections 5 and 6 below, the Company is not required to make
mandatory redemption or sinking fund payments with respect to the Notes. 

  

	5.	 Special Mandatory Redemption. If (i) the Merger has not been consummated pursuant to the Merger
Agreement on or prior to the Outside Date, (ii) on or prior to the Outside Date, the Merger Agreement is terminated in accordance with its terms or by agreement of the parties thereto, and the Merger has not been consummated, or (iii) on
or prior to the Outside Date, the Company notifies the Trustee in writing that in the Company’s reasonable judgment the Merger will not be consummated on or prior to the Outside Date, then the Company shall redeem (the “Special
Mandatory Redemption”) all Outstanding Notes on the Special Mandatory Redemption Date at the Special Mandatory Redemption Price pursuant to the provisions of Section 5.4 of the Supplemental Indenture. 

Notwithstanding the foregoing, installments of interest on the Notes that are due and payable on Interest Payment Dates falling on or prior to
the Special Mandatory Redemption Date will be payable on such Interest Payment Dates to the registered Holders as of the close of business on the relevant Regular Record Dates in accordance with the terms of the Notes and the Indenture. 

The Company shall cause the notice of Special Mandatory Redemption to be transmitted, with a copy to the Trustee, within five Business Days
after the occurrence of the event triggering the Special Mandatory Redemption to each Holder at its registered address (or in accordance with the Applicable Procedures). If funds sufficient to pay the Special Mandatory Redemption Price of the
Outstanding Notes to be redeemed on the Special Mandatory Redemption Date (plus accrued and unpaid interest, if any, to, but excluding, such date) are deposited with the Trustee or a Paying Agent on or before such Special Mandatory Redemption Date,
on and after such Special Mandatory Redemption Date, the Outstanding Notes will cease to bear interest. 
 Upon the consummation of the
Merger, the foregoing provisions regarding the Special Mandatory Redemption will cease to apply. 

  
 17 

	6.	 Change of Control Triggering Event. In the event of a Change of Control Triggering Event, the Holders
may require the Company to purchase for cash all or a portion of their Notes at a purchase price equal to 101% of the principal amount of the Notes, plus accrued and unpaid interest, if any, pursuant to the provisions of Section 6.3 of the
Supplemental Indenture, upon providing to the Company or any Paying Agent the completed Purchase Notice in the form on the reverse hereof or otherwise in accordance with the Applicable Procedures of the Depositary. 

If Holders of not less than 90% in aggregate principal amount of the Outstanding Notes validly tender and do not withdraw such Notes in a
Change of Control Offer and the Company, or any third party making such an offer in lieu of the Company as described in Section 6.3(5) of the Supplemental Indenture, purchase all of such Notes properly tendered and not withdrawn by such
Holders, the Company or such third party have the right, upon not less than 10 days’ nor more than 60 days’ prior notice (provided that such notice is given not more than 60 days following such repurchase pursuant to the applicable
Change of Control Offer) to redeem all Notes that remain Outstanding following such purchase on a date specified in such notice (the “Second Change of Control Purchase Date”) and at a price in cash equal to 101% of the aggregate
principal amount of the Notes repurchased plus accrued and unpaid interest, if any, on the Notes repurchased to, but excluding, the Second Change of Control Purchase Date. 
  

	7.	 Global Security. If this Note is a Global Security, then, in the event of a deposit or withdrawal of an
interest in this Note, including an exchange, transfer, redemption, repurchase or conversion of this Note in part only, the Trustee, as custodian of the Depositary, shall make an adjustment on its records to reflect such deposit or withdrawal in
accordance with the Applicable Procedures. 

  

	8.	 Defaults and Remedies. If an Event of Default shall occur and be continuing, the principal of all the
Notes, together with accrued interest to the date of declaration, may be declared due and payable, or in certain circumstances, shall automatically become due and payable, in the manner and with the effect provided in the Supplemental Indenture.

 As provided in and subject to the provisions of the Indenture, the Holder of this Note shall not have the right to
institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default,
and, among other things, the Holders of not less than 25% in aggregate principal amount of the Outstanding Notes shall have made written request to the Trustee to institute proceedings in respect of such Event of Default as Trustee. The foregoing
shall not apply to any suit instituted by the Holder of this Note for the enforcement of any payment of principal hereof or premium, if any, or interest hereon, on or after the respective due dates expressed herein. 

 

	9.	 Amendment, Supplement and Waiver. The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Notes under the Indenture at any time by the Company and the Trustee with the written consent of the

  
 18 

	 	
Holders of at least a majority in aggregate principal amount of the Outstanding Notes. The Indenture also contains provisions permitting the Holders of at least a majority in aggregate principal
amount of the Outstanding Notes, on behalf of the Holders of all the Notes, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver
by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof whether or not notation of
such consent or waiver is made upon this Note or such other Note. Certain modifications or amendments to the Indenture require the consent of the Holder of each Outstanding Note affected. 

Notwithstanding any other provision in this note or in the Indenture, the Holder of this Note shall have the right, which is absolute and
unconditional, to receive payment of the principal of and any premium and (subject to Section 307 of the Indenture) interest on this Note on the respective Stated Maturities therefor (or, in the case of redemption, on the Redemption Date), and
to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder. 
  

	10.	 Registration and Transfer. As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Note is registrable on the Security Register upon surrender of this Note for registration of transfer at such office or agency of the Company as may be designated by it for such purpose in The City of St. Paul, Minnesota,
or at such other offices or agencies as the Company may designate, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Registrar duly executed by, the Holder thereof or his attorney duly
authorized in writing, and thereupon one or more new Notes, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees by the Registrar. As provided in the Indenture and
subject to certain limitations therein set forth, Notes are exchangeable for a like aggregate principal amount of Notes of any authorized denominations as requested by the Holder surrendering the same upon surrender of the Note or Notes to be
exchanged, at such office or agency of the Company. The Trustee upon such surrender by the Holder will issue the new Notes in the requested denominations. No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

  

	11.	 Prior to due presentment of this Note for registration of transfer, the Company, the Trustee, any Paying Agent
and any agent of the Company, the Trustee or any Paying Agent may treat the Person in whose name such Note is registered as the owner thereof for all purposes, whether or not such Note be overdue, and neither the Company, the Trustee nor any Paying
Agent or other such agent shall be affected by notice to the contrary. 

  

	12.	 Governing Law. THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

  
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 ABBREVIATIONS 

The following abbreviations, when used in the inscription of the face of this Note, shall be construed as though they were written out in full
according to applicable laws or regulations: 
  

									
	TEN COM	 	as tenant in common	 	UNIF GIFT
MIN ACT	 	___ Custodian ___
					
	TEN ENT	 	as tenants by the 
entireties (Cust)	 		 	(Cust)	 	(Minor)
				
	JT TEN	 	as joint tenants with 
right of survivorship and 
not as tenants in common	 		 	under Uniform Gifts
 to Minors Act ___

				
		 		 		 	(State)

 Additional abbreviations may also be used though not in the above list. 

Section 3.3    Form of Purchase Notice. 

PURCHASE NOTICE 

(1)    Pursuant to Section 6.3 of the Supplemental Indenture, the undersigned hereby elects to have this Note
repurchased by the Company. 
 (2)    The undersigned hereby directs the Trustee or the Company to pay it an amount in
cash equal to 101% of the aggregate principal amount to be repurchased (as set forth below), plus interest accrued to, but excluding, the Change of Control Purchase Date, as applicable, as provided in the Supplemental Indenture. 

Dated: 
  

	
	
	   

	
	   

	Signature(s)

 Signature(s) must be guaranteed by an Eligible Guarantor Institution with membership in an approved signature guarantee
program pursuant to Rule 17Ad 15 under the Securities Exchange Act of 1934. 
  

	
	
	   

	Signature Guaranteed

  
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	 Principal amount to be repurchased:

	
	   

 Remaining aggregate principal amount 

following such repurchase (which must 
 be U.S.$2,000 or an
integral multiple of 
 $1,000 in excess thereof): 

	
	
	   

  

	NOTICE:	 The signature to the foregoing election must correspond to the name as written upon the face of this Note in
every particular, without alteration or any change whatsoever. 

 Section 3.4    Form of
Certificate of Authentication. 
 The Trustee’s certificate of authentication shall be in substantially the following form: 

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

Dated: 
  

			
	 U.S. BANK NATIONAL ASSOCIATION,

as Trustee

		
	By:	 	 
		 	Authorized Signatory

 ARTICLE IV 

REMEDIES 

Section 4.1    Events of Default. 

Section 501 of the Indenture shall, with respect to the Notes, be replaced in its entirety by the following: 

“Event of Default,” wherever used herein with respect to the Notes, means any one of the following events (whatever the
reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental
body): 
 (1)    default in the payment of any interest upon any Note when it becomes due and payable, and continuance of
such default for a period of 30 consecutive days; 

  
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 (2)    default in the payment of the principal of or premium, if any, on
any Note at its Stated Maturity or when otherwise due; 
 (3)    default (which shall not have been cured or
waived) (A) in the payment of any principal of or interest on any Indebtedness for borrowed money of the Company, aggregating more than $300 million in principal amount, after giving effect to any applicable grace period or (B) in the
performance of any other term or provision of any such Indebtedness of the Company, aggregating more than $300 million in principal amount, that results in such Indebtedness becoming or being declared due and payable prior to the date on which
it would otherwise become due and payable, and such acceleration shall not have been rescinded or annulled, or such Indebtedness shall not have been discharged, within a period of 15 consecutive days after there has been given, by registered or
certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Notes, a written notice specifying such default and stating that such notice is a “Notice
of Default” hereunder; 
 (4)    default in the performance, or breach, of any covenant, agreement or warranty
of the Company applicable to the Notes in this Supplemental Indenture, the Indenture as supplemented or amended or the Notes, and continuance of such default for a period of 60 consecutive days after there has been given, by registered or certified
mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Notes, a written notice specifying such default and requiring it to be remedied and stating that such notice
is a “Notice of Default” hereunder; 
 (5)    the entry by a court having jurisdiction in the premises
of (A) a decree or order for relief in respect of the Company or any Restricted Subsidiary of the Company in an involuntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or
(B) a decree or order (I) adjudging the Company or any Restricted Subsidiary of the Company a bankrupt or insolvent, (II) that approves as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or
in respect of the Company or any Restricted Subsidiary of the Company under any applicable Federal or State law, (III) appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official in respect of the
Company or any Restricted Subsidiary of the Company or in respect of any substantial part of the Property of the Company or any Restricted Subsidiary of the Company, or (IV) ordering the winding up or liquidation of the affairs of the Company
or any Restricted Subsidiary of the Company, and, in each case, the continuance of any such decree or order for relief or any such other decree or order unstayed and in effect for a period of 60 consecutive days; or 

(6)    (A) the commencement by the Company or any Restricted Subsidiary of the Company of a voluntary case or proceeding
under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, (B) the consent by the Company or a Restricted Subsidiary of the
Company to the entry of a decree or order for relief in respect of the Company 

  
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or any Restricted Subsidiary of the Company in an involuntary case or proceeding under any applicable Federal or State bankruptcy, insolvency, reorganization or other similar law or to the
commencement of any bankruptcy or insolvency case or proceeding against the Company or any Restricted Subsidiary of the Company, (C) the filing by the Company or a Restricted Subsidiary of the Company of a petition or answer or consent seeking
reorganization or similar relief under any applicable Federal or State law, or the consent by the Company or a Restricted Subsidiary of the Company to the filing of such petition, (D) the consent by the Company or any Restricted Subsidiary of
the Company to the appointment of a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official in respect of the Company or a Restricted Subsidiary of the Company or of any substantial part of the Property of the
Company or any Restricted Subsidiary of the Company or to any such custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official taking possession thereof, (E) the making by the Company or any Restricted Subsidiary
of the Company of a general assignment for the benefit of creditors, (F) the admission by the Company or a Restricted Subsidiary of the Company in writing of its inability to pay its debts generally as they become due, or (G) the taking of
corporate action by the Company or any Restricted Subsidiary of the Company in furtherance of any such action.” 

Section 4.2    Acceleration of Maturity; Rescission and Annulment. 

The second paragraph of Section 502 of the Indenture shall not be applicable to the Notes. 

(1)    The first paragraph of Section 502 of the Indenture shall, with respect to the Notes, be replaced in its
entirety with the following: 
 “If an Event of Default, other than an Event of Default specified in Section 4.1(5) or
Section 4.1(6) of this Supplemental Indenture, occurs with respect to the Outstanding Notes and is continuing, then either the Trustee, by notice to the Company, or the Holders of not less than 25% in principal amount of the Outstanding Notes,
by notice to the Trustee and the Company, may declare the principal of, and premium, if any, and accrued and unpaid interest on, all of the Notes to be due and payable immediately. If an Event of Default specified in Section 4.1(5) or
Section 4.1(6) of this Supplemental Indenture occurs, the principal amount of, and premium, if any, and accrued and unpaid interest on, all the Notes shall automatically become immediately due and payable without any declaration or act by the
Trustee, the Holders of the Notes or any other party.” 
 ARTICLE V 

REDEMPTION OF SECURITIES 

The provisions of Article Eleven of the Indenture shall, with respect to the Notes, be replaced in their entirety with the provisions of this
Article V. 
 Section 5.1    Optional Redemption. 

(1)    The Company may, at its option, redeem the Notes, in whole or from time to time in part, at any time prior to the
Par Call Date, at a Redemption Price equal to the greater 

  
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of (i) 100% of the aggregate principal amount of Notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal of and interest on the Notes
to be redeemed (exclusive of unpaid interest accrued thereon to the Redemption Date) that would have been due if the Notes matured on the Par Call Date discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year of twelve
30-day months) at the Treasury Rate plus 15 basis points, plus, in each case, accrued and unpaid interest on the Notes being redeemed to, but not including, the Redemption Date. The Company will calculate the Redemption Price, and the Trustee shall
have no duty to verify such calculation. 
 (2)    The Company may, at its option, redeem the Notes, in whole or from
time to time in part, at any time on or after the Par Call Date, at a Redemption Price equal to 100% of the aggregate principal amount of the Notes being redeemed, plus accrued and unpaid interest on the Notes being redeemed to, but not including,
the Redemption Date. 
 Section 5.2    Optional Tax Redemption. 

(1)    The Surviving Person may, at its option, redeem the Notes, in whole but not in part, at a redemption price equal to
100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest on the Notes being redeemed (and any Additional Amounts) to, but not including the Redemption Date, if (i) at any time following a transaction to which
the provisions of Section 801 of the Indenture (as amended by this Supplemental Indenture) applies, the Surviving Person is required to pay Additional Amounts pursuant to Section 6.4 of this Supplemental Indenture and (ii) such
obligation cannot be avoided by the Surviving Person taking reasonable measures available to it. 
 (2)    Prior to the
giving of any notice of redemption in respect of the foregoing, the Surviving Person will deliver to the Trustee an opinion of independent tax counsel of recognized standing to the effect that the Surviving Person is or would be obligated to pay
such Additional Amounts. 
 (3)    No notice of redemption pursuant to this Section 5.2 may be given earlier than
90 days prior to the earliest date on which the Surviving Person would be obligated to pay Additional Amounts if a payment in respect of the relevant Notes were then due. 

Section 5.3    Optional Redemption Procedures. 

(1)    The election of the Company to redeem any Notes pursuant to Section 5.1 or Section 5.2 shall be evidenced
by a Board Resolution or an Officers’ Certificate issued pursuant to a Board Resolution. 
 (2)    If less than all
the Notes are to be redeemed pursuant to Section 5.1, the Company shall, at least five days prior to date on which notice of redemption is to be given pursuant to clause (3) below (unless a shorter notice shall be acceptable to the
Trustee), notify the Trustee of the proposed Redemption Date and the principal amount of the Notes to be redeemed, and the particular Notes to be redeemed shall be selected, not more than 90 days prior to the Redemption Date, by the Trustee
from among the Outstanding Notes not previously called for redemption, by such method as the Trustee shall deem fair and appropriate and which may provide for the selection for redemption of portions (equal to the minimum authorized denomination for
the Notes or any integral multiple thereof) of the principal amount of the Notes of a denomination larger than the minimum authorized denomination for the Notes. 

  
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 The Trustee shall promptly notify the Company in writing of the Notes selected for
redemption and, in the case of any Notes selected for partial redemption, the principal amount thereof to be redeemed. 
 For all purposes
of this Supplemental Indenture, unless the context otherwise requires, all provisions relating to the redemption of Notes shall relate, in the case of any Notes redeemed or to be redeemed only in part, to the portion of the principal amount of such
Notes which has been or is to be redeemed. 
 (3)    Notice of redemption pursuant to Section 5.1 and
Section 5.2 shall be given to each Holder of Notes to be redeemed in accordance with the Applicable Procedures, or by first-class mail, postage prepaid, mailed to each applicable Holder’s address as shown in the Security Register for the
affected Notes, not less than 10 nor more than 60 days prior to the Redemption Date, except that notice may be given more than 60 days prior to the date fixed for redemption if the notice is issued in connection with a Defeasance, Covenant
Defeasance or satisfaction and discharge. Failure to give notice in the manner herein provided to the Holder of any Notes designated for redemption as a whole or in part, or any defect in the notice to any such Holder, shall not affect the validity
of the proceedings for the redemption of any other Notes or portion thereof, and any given in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the applicable Holder receives the notice. 

All notices of redemption shall state: 

(i)    the Redemption Date; 

(ii)    the Redemption Price or the manner of calculating the Redemption Price (in which case no Redemption
Price need be specified); 
 (iii)    the aggregate principal amount of the Notes to be redeemed; 

(iv)    if less than all of the Outstanding Notes are to be redeemed, the identification (and, in the case
of partial redemption, the portions of the principal amounts) of the particular Notes to be redeemed; 

(v)    that on the Redemption Date the Redemption Price will become due and payable upon each such Note to
be redeemed and that interest thereon will cease to accrue on and after said date; 
 (vi)    the place
or places where such Notes are to be surrendered for payment of the Redemption Price; 
 (vii)    the
CUSIP numbers of such Notes, if any (or any other numbers used by the Depositary to identify such Notes); and 

  
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 (viii)    that, unless the Company defaults in paying
the Redemption Price, interest will cease to accrue on the Notes called for redemption on the Redemption Date. 
 Notice of redemption of
Notes to be redeemed shall be given by the Company or, on Company Request, by the Trustee at the expense of the Company. Any notice of redemption may provide that payment of the Redemption Price and the performance of the Company’s obligations
with respect to such redemption may be performed by another Person. 
 (4)    At or before 11:00 a.m., New York time, on
any Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 1003 of the Indenture) an amount of money
sufficient to pay the Redemption Price of all the Notes which are to be redeemed on that date. 
 (5)    Notice of
redemption having been given as aforesaid, the Notes so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified, and from and after such date (unless the Company shall default in the payment of
the Redemption Price) such Notes shall cease to bear interest. Upon surrender of any such Note for redemption in accordance with said notice, such Note shall be paid by the Company at the Redemption Price; provided, however, that
installments of interest whose Stated Maturity is prior to the Redemption Date shall be payable to the Holders of such Notes registered as such at the close of business on the relevant Regular Record Dates according to their terms. 

If any Note called for redemption shall not be so paid upon surrender thereof for redemption, the principal thereof shall, until paid, bear
interest from the Redemption Date at the rate borne by the Note. 
 (6)    Any Note which is to be redeemed only in part
shall be surrendered at an office or agency in accordance with the notice of redemption (with, if the Company or the Trustee shall so require, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or its attorney duly authorized in writing), and the Company shall execute, and the Trustee shall authenticate and deliver to the Holder of such Note, without service charge, a new Note or Notes of any
authorized denominations as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Note so surrendered. 

Section 5.4    Special Mandatory Redemption 

If (i) the Merger has not been consummated pursuant to the Merger Agreement on or prior to the Outside Date, (ii) on or prior to the
Outside Date, the Merger Agreement is terminated in accordance with its terms or by agreement of the parties thereto, and the Merger has not been consummated, or (iii) on or prior to the Outside Date, the Company notifies the Trustee in writing
that in the Company’s reasonable judgment the Merger will not be consummated on or prior to the Outside Date, then the Company shall redeem all Outstanding Notes on the Special Mandatory Redemption Date at the Special Mandatory Redemption Price
(the “Special Mandatory Redemption”). 

  
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 Notwithstanding the foregoing, installments of interest on the Notes that are due and
payable on Interest Payment Dates falling on or prior to the Special Mandatory Redemption Date will be payable on such Interest Payment Dates to the registered Holders as of the close of business on the relevant Regular Record Dates in accordance
with the terms of the Notes and the Indenture. 
 The Company shall cause the notice of Special Mandatory Redemption to be transmitted, with
a copy to the Trustee, within five Business Days after the occurrence of the event triggering the Special Mandatory Redemption to each Holder at its registered address (or in accordance with the Applicable Procedures). If funds sufficient to pay the
Special Mandatory Redemption Price of the Outstanding Notes to be redeemed on the Special Mandatory Redemption Date (plus accrued and unpaid interest, if any, to, but excluding, such date) are deposited with the Trustee or a Paying Agent on or
before such Special Mandatory Redemption Date, on and after such Special Mandatory Redemption Date, the Outstanding Notes will cease to bear interest. 

Upon the consummation of the Merger, the foregoing provisions regarding the Special Mandatory Redemption will cease to apply. 

ARTICLE VI 
 PARTICULAR
COVENANTS 
 Section 6.1    Liens. 

The Company will not, and will not permit any of its Restricted Subsidiaries to, create or assume, except in the Company’s favor or in
favor of one or more of its Wholly-Owned Subsidiaries, any Lien on any Principal Property, or upon any Capital Stock or Indebtedness of any of the Company’s Restricted Subsidiaries, that secures any Indebtedness of the Company or such
Restricted Subsidiary unless the Outstanding Notes are secured equally and ratably with (or prior to) the obligations so secured by such Lien, except that the foregoing restriction does not apply to any one or more of the following types of Liens:

 (1)    Liens in connection with workers’ compensation, unemployment insurance or other social security
obligations (which phrase shall not be construed to refer to ERISA or the minimum funding obligations under Section 412 of the Code); 

(2)    Liens to secure the performance of bids, tenders, letters of credit, contracts (other than contracts for the payment
of Indebtedness), leases, statutory obligations, surety, customs, appeal, performance and payment bonds and other obligations of a similar nature, in each such case arising in the ordinary course of business; 

(3)    mechanics’, workmen’s, carriers’, warehousemen’s, materialmen’s, landlords’, or other
similar Liens arising in the ordinary course of business with respect to obligations (i) which are not more than 30 days’ past due or are being contested in good faith and by appropriate action or (ii) the nonpayment of which in the
aggregate would not reasonably be expected to have a material adverse effect on the Company and its Subsidiaries, taken as a whole; 

  
 27 

 (4)    Liens for taxes, assessments, fees or governmental charges or
levies which (i) are not delinquent, (ii) are payable without material penalty, (iii) are being contested in good faith and by appropriate action or (iv) the nonpayment of which in the aggregate would not reasonably be expected
to have a material adverse effect on the Company and its Subsidiaries, taken as a whole; 
 (5)    Liens consisting of
attachments, judgments or awards against the Company or any of its Subsidiaries with respect to which an appeal or proceeding for review shall be pending or a stay of execution shall have been obtained, or which are otherwise being contested in good
faith and by appropriate action, and in respect of which adequate reserves shall have been established in accordance with GAAP on the books of the Company or any of its Subsidiaries; 

(6)    easements, rights of way, restrictions, leases of Property to others, easements for installations of public
utilities, title imperfections and restrictions, zoning ordinances and other similar encumbrances affecting Property which in the aggregate do not materially impair the operation of the business of the Company and its Subsidiaries taken as a whole;

 (7)    Liens existing on the date of the Supplemental Indenture and securing Indebtedness or other obligations of the
Company or any of its Subsidiaries; 
 (8)    statutory Liens in favor of lessors arising in connection with Property
leased to the Company or any of its Subsidiaries; 
 (9)    Liens on Margin Stock to the extent that a prohibition on
such Liens pursuant to this Section 6.1 would violate Regulation U of the Board of Governors of the Federal Reserve System of the United States of America, as the same may be amended or supplemented from time to time; 

(10)    Liens on Property hereafter acquired by the Company or any of its Subsidiaries created within 270 days of such
acquisition (or in the case of real property, completion of construction including any improvements or the commencement of operation of the Property, whichever occurs later) to secure or provide for the payment or financing of all or any part of the
purchase price or construction thereof; provided that the Lien secured thereby shall attach only to the Property so acquired or constructed and related assets (except that individual financings by one Person (or an Affiliate thereof) may be
cross-collateralized to other financings provided by such Person and its Affiliates that are permitted by this clause (10)); 

(11)    Liens in respect of financing leases and Permitted Sale-Leaseback Transactions; 

(12)    (i) Liens on the Property of a Person that becomes a Subsidiary of the Company after the date hereof;
provided that (A) such Liens existed at the time such Person becomes a Subsidiary of the Company and were not created in anticipation thereof, (B) any such Liens are not extended to any Property of the Company or of any Subsidiary
of the Company, other than the Property or assets of such Subsidiary and (ii) Liens on the proceeds of Indebtedness incurred to finance an acquisition, investment or refinancing pursuant to customary escrow or similar arrangements to the extent
such proceeds (A) secure such Indebtedness or are otherwise restricted in favor of the holders of such Indebtedness and (B) will be required to repay such Indebtedness if such acquisition, investment or refinancing is not consummated; 

  
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 (13)    Liens on Property existing at the time of acquisition thereof
and not created in contemplation thereof; 
 (14)    Liens (i) of a collecting bank arising under Section 4-208
of the Uniform Commercial Code on the items in the course of collection, (ii) in favor of a banking institution arising as a matter of law encumbering deposits (including the right of set off) and which are within the general parameters
customary in the banking industry, and (iii) Liens on assets in order to secure defeased and/or discharged Indebtedness; 

(15)    Liens securing Securitized Indebtedness and receivables factoring, discounting, facilities or securitizations; 

(16)    any extension, renewal, refinancing, substitution or replacement (or successive extensions, renewals, refinancings,
substitutions or replacements), as a whole or in part, of any of the Liens referred to in paragraphs (7), (10), (12), (13), and (18) of this Section 6.1 to the extent that the principal amount secured by such Lien at such time is not
increased (other than increases related to required premiums, accrued interest and reasonable fees and expenses in connection with such extensions, renewals, refinancings, substitutions or replacements); provided that such extension, renewal,
refinancing, substitution or replacement Lien shall be limited to all or any part of substantially the same Property or assets that secured the Lien extended, renewed, refinanced, substituted or replaced (plus improvements on such Property and
proceeds thereof); 
 (17)    Liens on proceeds of any of the assets permitted to be the subject of any Lien or
assignment permitted by this Section 6.1; and 
 (18)    other Liens; provided that, without duplication, the
aggregate sum of all obligations and Indebtedness secured by Liens incurred pursuant to this paragraph (18), together with the aggregate principal amount secured by Liens incurred pursuant to paragraph (16) of this Section 6.1 that extend,
renew, refinance, substitute for or replace Liens incurred under this paragraph (18) and the aggregate Attributable Value of any Property involved in a sale-leaseback transaction that is permitted to be incurred solely because it falls under
the Applicable Threshold described in the proviso contained in the definition of “Permitted Sale-Leaseback Transactions,” would not exceed the greater of (i) $1,000 million and (ii) 15.0% of Net Worth as determined at the
time of, and immediately after giving effect to, the incurrence of such Lien based on the balance sheet for the end of the most recent quarter for which financial statements are available. 

Section 6.2    Sale and Lease-Back Transactions. 

Neither the Company nor any of its Restricted Subsidiaries may sell or transfer to any Person other than the Company or any of its
Subsidiaries any Principal Property owned by the Company or any of its Restricted Subsidiaries with the intention of taking back a lease thereof, other than Permitted Sale-Leaseback Transactions. 

  
 29 

 Section 6.3    Right to Require Repurchase Upon a Change of
Control Triggering Event. 
 (1)    Upon the occurrence of any Change of Control Triggering Event, each Holder of
Notes shall have the right to require the Company to repurchase all or any part of such Holder’s Notes pursuant to the offer described below (the “Change of Control Offer”) on the terms set forth herein (provided that
with respect to the Notes submitted for repurchase in part, the remaining portion of such Notes is in a principal amount of $2,000 or an integral multiple of $1,000 in excess thereof) at a purchase price in cash equal to 101% of the aggregate
principal amount of the Notes repurchased plus accrued and unpaid interest, if any, on the Notes repurchased, to, but not including, the date of purchase (the “Change of Control Payment”). 

(2)    Within 30 days following any Change of Control Triggering Event, the Company shall mail (or otherwise deliver in
accordance with the Applicable Procedures) a notice to Holders of Notes, with a written copy to the Trustee, which notice shall govern the terms of the Change of Control Offer. Such notice shall state: 

(i)    a description of the transaction or transactions that constitute the Change of Control Triggering
Event; 
 (ii)    that the Change of Control Offer is being made pursuant to this Section 6.3 and
that all Notes validly tendered will be accepted for payment; 
 (iii)    the Change of Control Payment
and the “Change of Control Purchase Date,” which date shall be a Business Day that is no earlier than 10 days and no later than 60 days from the date such notice is given, other than as may be required by law; and 

(iv)    if the notice is mailed prior to the date of the consummation of the Change of Control, the notice
will state that the Change of Control Offer is conditioned on the Change of Control Triggering Event occurring on or prior to the Change of Control Purchase Date; provided that if the Change of Control Triggering Event occurs after such
Change of Control Purchase Date, the Company shall be required to offer to purchase the Notes as otherwise set forth in this Section 6.3. 

(3)    On the Change of Control Purchase Date, the Company shall be required, to the extent lawful, to: 

(i)    accept for payment all Notes or portions of Notes properly tendered pursuant to the Change of
Control Offer; 
 (ii)    deposit with the Paying Agent an amount equal to the Change of Control Payment
in respect of all Notes or portions of Notes properly tendered; and 
 (iii)    deliver or cause to be
delivered to the Trustee the Notes properly accepted together with an Officers’ Certificate stating the aggregate principal amount of Notes or portions of Notes being purchased. 

  
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 The Paying Agent will promptly mail or otherwise deliver to each Holder of Notes properly
tendered the Change of Control Payment for such Notes (or with respect to Global Notes otherwise make such payment in accordance with the Applicable Procedures of the Depositary), and the Trustee will promptly authenticate and mail (or cause to be
transferred by book-entry) to each Holder of Notes properly tendered a new Note equal in principal amount to any unpurchased portion of any Notes surrendered; provided that each new Note will be in a principal amount of $2,000 or an integral
multiple of $1,000 in excess thereof. 
 (4)    The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of Notes as a result of a Change of
Control Triggering Event. To the extent that the provisions of any securities laws or regulations conflict with this Section 6.3, the Company will comply with the applicable securities laws and regulations and will not be deemed to have
breached its obligations under this Section 6.3 by virtue of such conflicts. 
 (5)    Notwithstanding the
foregoing, the Company will not be required to make a Change of Control Offer for the Notes upon a Change of Control Triggering Event if (i) a third party makes such an offer in the manner, at the times and otherwise in compliance with the
requirements for an offer made by the Company and such third party purchases all the Notes properly tendered and not withdrawn under its offer or (ii) prior to the occurrence of the related Change of Control Triggering Event, the Company has
given written notice of a redemption as provided under Section 5.1 unless the Company has failed to pay the Redemption Price on the Redemption Date. 

(6)    If Holders of not less than 90% in aggregate principal amount of the Outstanding Notes validly tender and do not
withdraw such Notes in a Change of Control Offer and the Company, or any third party making such an offer in lieu of the Company as described in Section 6.3(5) of this Supplemental Indenture, purchase all of such Notes properly tendered and not
withdrawn by such Holders, the Company or such third party have the right, upon not less than 10 days’ nor more than 60 days’ prior notice (provided that such notice is given not more than 60 days following such
repurchase pursuant to the applicable Change of Control Offer) to redeem all Notes that remain Outstanding following such purchase on a date specified in such notice (the “Second Change of Control Purchase Date”) and at a price in
cash equal to 101% of the aggregate principal amount of the Notes repurchased plus accrued and unpaid interest, if any, on the Notes repurchased to, but excluding, the Second Change of Control Purchase Date. 

Section 6.4    Additional Amounts. 

If, following any transaction permitted by Section 801 of the Indenture (as amended by this Supplemental Indenture), the Surviving Person
is organized under the laws of a jurisdiction other than the United States, any state or territory thereof or the District of Columbia, all payments made by the Surviving Person under, or with respect to, the Notes will be made free and clear of,
and without withholding or deduction for or on account of, any Taxes imposed or levied by or on behalf of the jurisdiction of organization of the Surviving Person or any political subdivision thereof or taxing authority therein (the “Taxing
Jurisdiction”), unless the Surviving Person is required to withhold or deduct Taxes by law or by the official interpretation or administration thereof. 

  
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 If the Surviving Person is so required to withhold or deduct any amount for, or on account
of, such Taxes from any payment made under or with respect to the Notes, the Surviving Person will pay such additional amounts (the “Additional Amounts”) as may be necessary so that the net amount received by each Holder or
beneficial owner (including Additional Amounts) after such withholding or deduction will not be less than the amount such Holder or beneficial owner would have received if such Taxes had not been required to be withheld or deducted; provided,
however, that the foregoing obligation to pay Additional Amounts does not apply to: 
 (i)    any
Taxes imposed by the United States, including any Taxes withheld or deducted pursuant to Sections 1471 through 1474 of the Internal Revenue Code of 1986, as amended (or any amended or successor version of such Sections), any U.S. Treasury
regulations promulgated thereunder, any official interpretations thereof or any agreements (including any law implementing any such agreement) entered into in connection with the implementation thereof; 

(ii)    any Taxes that would not have been so imposed but for the existence of any present or former
connection between the relevant Holder or any beneficial owner (or between a fiduciary, settlor, beneficiary, member or shareholder of, or possessor of power over the relevant holder or beneficial owner, if the relevant Holder or beneficial owner is
an estate, nominee, trust or entity) and a Taxing Jurisdiction (other than the mere receipt of such payment or the ownership or holding of such Note outside of the Surviving Person’s country of organization); 

(iii)    any Taxes that are imposed or withheld by reason of the failure by the relevant Holder or any
beneficial owner of the Notes to comply on a timely basis with a written request of the Surviving Person addressed to such Holder or any beneficial owner to provide certification, information, documents or other evidence concerning the nationality,
residence or identity of such Holder or beneficial owner or to make any declaration or similar claim or satisfy any other reporting requirement relating to such matters, which is required by a statute, treaty, regulation or administrative practice
of the applicable Taxing Jurisdiction as a precondition to exemption from, or reduction in the rate of withholding or deduction of, all or part of such Taxes; 

(iv)    any estate, inheritance, gift, sales, excise, transfer, personal property tax or similar tax, duty,
assessment or governmental charge; 
 (v)    any Taxes that are payable other than by deduction or
withholding from a payment on or in respect of the Notes; 
 (vi)    any Taxes that are withheld or
deducted by a Paying Agent from a payment if the payment could have been made by another Paying Agent without such withholding or deduction; 

(vii)    any Taxes that are payable by any Person acting as custodian bank or collecting agent on behalf of
a Holder, or otherwise in any manner which does not constitute a withholding or deduction by the Surviving Person, its Paying Agent, or any successor thereof from payments made by it; 

  
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 (viii)    any Taxes that are payable by reason of a
change in law that becomes effective more than 15 days after the relevant payment becomes due and is made available for payment to the Holders, unless such Taxes would have been applicable had payment been made within such 15 day period; 

(ix)    any Taxes that are deducted or withheld pursuant to (a) any European Union directive or
regulation concerning the taxation of interest income; (b) any international treaty or understanding relating to such taxation and to which the Taxing Jurisdiction or the European Union is a party or (c) any provision of law implementing,
or complying with, or introduced to conform with, such directive, regulation, treaty or understanding; or 

(x)    any combination of the Taxes described above. 

In addition, the Surviving Person shall not be required to pay Additional Amounts to a Holder that is a fiduciary or partnership or any Person
other than the sole beneficial owner of such payment, to the extent that a beneficiary or settlor with respect to such fiduciary, a member of such a partnership or the beneficial owner of such payment would not have been entitled to the Additional
Amounts had such beneficiary, settlor, member or beneficial owner been the actual Holder of such note. 
 Whenever in this Supplemental
Indenture, the Indenture, a Board Resolution, an Officers’ Certificate, or any Note, reference is made in any context to the principal of, and any interest on, any Note, such mention shall be deemed to include any relevant Additional Amounts to
the extent that, in such context, Additional Amounts are, were or would be payable in respect of such Note. 
 The obligations described
under this Section 6.4 shall survive any termination or discharge of the Indenture or this Supplemental Indenture, any Defeasance of the Notes and shall apply mutatis mutandis to any jurisdiction in which any successor Person to the
Company or any Surviving Person is organized or any political subdivision or taxing authority or agency thereof or therein. 
 ARTICLE VII

 SUPPLEMENTAL INDENTURES 

Section 7.1    Supplemental Indentures without Consent of Holders of Notes. 

Section 901 of the Indenture shall, with respect to the Notes, be replaced in its entirety with the following: 

“Without the consent of any Holders of the Notes, the Company, when authorized by a Board Resolution, together with the Trustee, at any
time and from time to time, may modify or amend the Indenture, this Supplemental Indenture and the terms of the Notes to: 

(1)    allow the successor (or successive successors) to the Company to assume the Company’s obligations under the
Indenture, this Supplemental Indenture and the Notes pursuant to the provisions under Article VIII; 

  
 33 

 (2)    add to the covenants of the Company for the benefit of the
Holders of the Notes or the Trustee, Paying Agent, Registrar or other agent or similar Person or surrender any right or power conferred upon the Company under this Supplemental Indenture, the Indenture or the Notes; 

(3)    add any additional Events of Default; 

(4)    add to or change any provisions of this Supplemental Indenture, the Indenture or the Notes to the extent necessary
to permit or facilitate the issuance of Notes in bearer form or in uncertificated form; 
 (5)    secure the Notes and
provide for the terms of the release of such security; 
 (6)    add guarantees with respect to the obligations of the
Company under the Notes and provide for the terms of the release of such guarantees; 
 (7)    provide for a successor
Trustee with respect to the Notes or otherwise change any of the provisions of this Supplemental Indenture or the Indenture as shall be necessary to provide for or facilitate the administration of the trusts thereunder by more than one Trustee; 

(8)    provide for the issuance of Additional Notes to the extent permitted under the Indenture; 

(9)    provide for a co-issuer with respect to the Notes; 

(10)    cure any ambiguity, omission, defect or inconsistency, as determined in good faith by the Company; 

(11)    conform this Supplemental Indenture, the Indenture or the Notes to the Description of the Notes and Description of
Debt Securities contained in the Company’s prospectus supplement dated June 10, 2019 and prospectus dated September 20, 2018 relating to the Notes; 

(12)    comply with the rules and regulations of DTC or any other clearing system or Depositary and the rules and
regulations of any securities exchange or automated quotation system on which the Notes may be listed or traded; or 

(13)    make any other amendment or supplement to this Supplemental Indenture, the Indenture or the Notes, as long as that
amendment or supplement does not adversely affect the rights of the Holders of any Notes in any material respect, as determined in good faith by the Company. 

  
 34 

 No amendment to this Supplemental Indenture, the Indenture or the Notes made solely to
conform this Supplemental Indenture, the Indenture or the Notes to the Description of the Notes and Description of Debt Securities contained in the Company’s prospectus supplement dated June 10, 2019 and prospectus dated September 20,
2018 relating to the Notes, shall be deemed to adversely affect the interests of the Holders of the Notes. 
 Upon the request of the
Company, when authorized by a Board Resolution, the Trustee shall join with the Company in the execution of any amended Supplemental Indenture authorized or permitted by the terms of the Indenture or this Supplemental Indenture and to make any
further appropriate agreements and stipulations which may be contained therein.” 

Section 7.2    Supplemental Indentures with Consent of Holders of Notes. 

The first paragraph, including clauses (1) through (5) thereof, of Section 902 of the Indenture shall, with respect to the Notes, be
replaced with the following: 
 “With the consent of the Holders of a majority in principal amount of the Outstanding Notes affected by
such supplemental indenture, by Act of said Holders delivered to the Company and the Trustee, the Company, when authorized by a Board Resolution, and the Trustee may enter into an indenture or indentures supplemental hereto for purpose adding any
provisions to or changing an any manner or eliminating any of the provisions of the Indenture, the Supplemental Indenture or the Notes or of modifying in any manner the rights of the Holders of the Notes; provided, however, that no
such supplemental indenture shall, without the consent of the Holder of each Outstanding Note affected thereby: 

(1)    change the Stated Maturity of the principal of, or any installment of interest on, any Note; 

(2)    reduce the principal of, or rate of interest on, any Note; 

(3)    reduce any amount payable upon the redemption or purchase at the option of the Holder of any Note; 

(4)    change any place of payment where, or the currency in which, any principal of, or premium, if any, or interest on,
any Note is payable; 
 (5)    impair the right to institute suit for the enforcement of any payment on, or with respect
to, any Note on or after the Stated Maturity or Redemption Date; or 
 (6)    reduce the percentage in principal amount
of Outstanding Notes the consent of whose Holders is required for modification or amendment of the Indenture or this Supplemental Indenture or for waiver of compliance with provisions of the Indenture or this Supplemental Indenture or waiver of
defaults, in each case, with respect to or in respect of provisions hereof and thereof that cannot be modified or waived without the consent of the Holder of each Outstanding Note affected thereby.” 

  
 35 

 The second paragraph of Section 902 of the Indenture shall, with respect to the Notes,
add the following as the last sentence thereto: 
 “In addition, the Holders of at least a majority in aggregate principal amount of the
Outstanding Notes may, on behalf of the Holders of all Notes waive compliance with the Company’s covenants described under Section 6.1 and 6.2 of this Supplemental Indenture.” 

ARTICLE VIII 

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE 

Section 8.1    Company May Consolidate, Etc. on Certain Terms. 

Section 801 of the Indenture shall, with respect to the Notes, be replaced with the following: 

“The Company shall not in a single transaction or a series of related transactions, consolidate or merge with or into any other Person,
permit any other Person to consolidate with or merge into the Company or convey, transfer or lease all or substantially all of the Properties and assets of the Company and its Subsidiaries, taken as a whole, to any other Person, unless: 

(1)    the Company is the surviving entity, or the Person formed by such consolidation or merger (if other than the
Company) or the Person to which all or substantially all of the Properties and assets of the Company and its Subsidiaries, taken as a whole, are conveyed, transferred or leased, as the case may be (the “Surviving Person”), shall be
an entity organized and existing under the laws of the United States of America (or any state or territory thereof or the District of Columbia), the United Kingdom (or any constituent country thereof), Germany, France, Luxembourg, the Netherlands,
Ireland or Canada (or any province or territory thereof) and shall expressly assume, by a supplemental indenture executed and delivered to the Trustee, in form reasonably satisfactory to the Trustee, the due and punctual payment of the principal of
and any premium and interest on the Outstanding Notes and the performance and observance of every covenant of this Supplemental Indenture and the Indenture on the part of the Company to be performed or observed; 

(2)    immediately after giving effect to any such transaction and treating any Indebtedness that becomes an obligation of
the Company or any Subsidiary of the Company as a result of such transaction as having been incurred by the Company or any Subsidiary of the Company at the time of such transaction, there shall not be any Default or Event of Default; 

(3)    if, as a result of any such transaction, the Properties or assets of the Company would become subject to a Lien
which would not be permitted under Section 6.1 of this Supplemental Indenture, the Company or such successor Person, as the case may be, shall take those steps that are necessary to secure all the Outstanding Notes equally and ratably with
Indebtedness secured by that Lien; and 
 (4)    the Company shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that all conditions precedent to the consummation of the particular consolidation, merger, conveyance, transfer or lease under this Supplemental Indenture and the Indenture have been complied
with.” 

  
 36 

 Section 8.2    Successor Corporation Substituted. 

Section 802 of the Indenture shall, with respect to the Notes, be replaced with the following: 

“Upon any consolidation or merger by the Company with or into any other Person or any sale, transfer, lease or conveyance of all or
substantially all of the Properties and assets of the Company and its Subsidiaries, taken as a whole, to any other Person in accordance with Section 8.1, the successor Person formed by such consolidation or merger or to which such conveyance,
transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Supplemental Indenture and the Indenture with the same effect as if such successor Person has been named as the
Company herein, and thereafter, except in the case of a lease to another Person, the predecessor Person shall be relieved of all obligations and covenants under the Indenture, this Supplemental Indenture and the Notes (to the extent the Company was
the predecessor Person).” 
 ARTICLE IX 

NO GUARANTORS 
 Article 15
of the Indenture shall not be applicable to the Notes. 
 ARTICLE X 

DEFEASANCE 

Section 10.1    Covenant Defeasance. 

The provisions of Article Thirteen of the Indenture shall be applicable to the Notes. For purposes of the foregoing, the phrase “and any
covenants provided pursuant to Section 301(19)” appearing in the first sentence of Section 1303 of the Indenture, and words of like import appearing throughout the Indenture in furtherance of the application of the provisions of
Article Thirteen of the Indenture to the Notes, shall be deemed to refer explicitly to the provisions of Articles VI (exclusive of Section 6.3 thereof to which the provisions of Article Thirteen of the Indenture shall not apply) and VIII
of this Supplemental Indenture. 
 ARTICLE XI 

MISCELLANEOUS 

Section 11.1    Survivability, Governing Law, etc. 

(1)    The Indenture, as supplemented and amended by this Supplemental Indenture, is in all respects adopted, ratified and
confirmed, and all of the terms, provisions and conditions thereof shall be and remain in full force and effect, and this Supplemental Indenture and all its provisions shall be deemed a part thereof. 

  
 37 

 (2)    In case any provision in this Supplemental Indenture shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

(3)    THIS SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICTS OF LAWS AND RULES THEREOF. 
 (4)    The parties may sign any number of
copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. 

  
 38 

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

									
	 COMPANY
	 		 	
			
		 		 	 FISERV, INC.

				
		 		 	By:	 	/s/ Robert W. Hau
		 		 		 	Name:	 	Robert W. Hau
		 		 		 	Title:	 	Chief Financial Officer and Treasurer
			
	 TRUSTEE
	 		 	
			
		 		 	U.S. BANK NATIONAL ASSOCIATION, as Trustee
				
		 		 	By:	 	/s/ Gene E. Ploeger
		 		 		 	Name:	 	Gene E. Ploeger
		 		 		 	Title:	 	Vice President

  
 [Signature Page to
Sixteenth Supplemental Indenture]

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