Document:

Exhibit

Deal CUSIP Number:  14312CAE7
Revolver CUSIP Number:  14312CAF4

CREDIT AGREEMENT
Dated as of June 7, 2019
among
CARMAX AUTO SUPERSTORES, INC., 
as the Revolving Borrower,
CERTAIN SUBSIDIARIES, 
as Designated Borrowers,
CARMAX, INC.,
and
BANK OF AMERICA, N.A., 
as Administrative Agent,
and
The Other Lenders Party Hereto
JPMORGAN CHASE BANK, N.A. 
and 
WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as Co-Syndication Agents,
TOYOTA MOTOR CREDIT CORPORATION 
and 
U.S. BANK NATIONAL ASSOCIATION, 
as 
Co-Documentation Agents,
BOFA SECURITIES, INC., 
JPMORGAN CHASE BANK, N.A. 
and 
WELLS FARGO SECURITIES, LLC, 
as 
Joint Lead Arrangers and Joint Bookrunners

TABLE OF CONTENTS
Page
	
				
	ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
	1
	

	1.01
	Defined Terms
	1
	

	1.02
	Other Interpretive Provisions
	29
	

	1.03
	Accounting Terms
	30
	

	1.04
	Rounding
	30
	

	1.05
	Times of Day; Rates
	30
	

	1.06
	Letter of Credit Amounts
	30
	

	1.07
	Timing of Performance
	31
	

	1.08
	Pro Forma Calculation
	31
	

	ARTICLE II THE COMMITMENTS AND CREDIT EXTENSIONS
	31
	

	2.01
	Committed Loans
	31
	

	2.02
	Borrowings and Conversions of Committed Loans
	31
	

	2.03
	Letters of Credit
	32
	

	2.04
	Swing Line Loans
	41
	

	2.05
	New Vehicle Swing Line Loans
	45
	

	2.06
	Prepayments
	49
	

	2.07
	Termination or Reduction of Commitments
	50
	

	2.08
	Repayment of Loans
	50
	

	2.09
	Interest
	51
	

	2.10
	Fees
	51
	

	2.11
	Computation of Interest and Fees
	52
	

	2.12
	Evidence of Debt
	52
	

	2.13
	Payments Generally; Administrative Agent’s Clawback
	53
	

	2.14
	Sharing of Payments by Lenders
	54
	

	2.15
	Designated Borrowers
	55
	

	2.16
	Increase in Commitments
	57
	

	2.17
	Cash Collateral
	58
	

	2.18
	Defaulting Lenders
	60
	

	2.19
	Extension Option
	62
	

	ARTICLE III TAXES, YIELD PROTECTION AND ILLEGALITY
	63
	

	3.01
	Taxes
	63
	

	3.02
	Illegality
	67
	

	3.03
	Inability to Determine Rates
	68
	

	3.04
	Increased Costs
	70
	

	3.05
	Mitigation Obligations; Replacement of Lenders
	71
	

	3.06
	Survival
	72
	

	ARTICLE IV CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
	72
	

	4.01
	Conditions of Initial Credit Extension
	72
	

	4.02
	Conditions to all Credit Extensions (other than pursuant to a Payment Commitment)
	73
	

i

	
				
	4.03
	Conditions to all New Vehicle Swing Line Borrowings pursuant to a Payment Commitment
	74
	

	ARTICLE V REPRESENTATIONS AND WARRANTIES
	74
	

	5.01
	Existence, Qualification and Power
	75
	

	5.02
	Authorization; No Contravention
	75
	

	5.03
	Governmental Authorization; Other Consents
	75
	

	5.04
	Binding Effect
	75
	

	5.05
	Financial Statements; No Material Adverse Effect
	75
	

	5.06
	Litigation
	76
	

	5.07
	No Default
	76
	

	5.08
	Ownership of Property
	76
	

	5.09
	[Reserved]
	76
	

	5.10
	[Reserved]
	76
	

	5.11
	[Reserved]
	76
	

	5.12
	ERISA Compliance
	76
	

	5.13
	Subsidiaries; Equity Interests
	77
	

	5.14
	Margin Regulations; Investment Company Act
	77
	

	5.15
	Disclosure
	77
	

	5.16
	Compliance with Laws
	78
	

	5.17
	[Reserved]
	78
	

	5.18
	[Reserved]
	78
	

	5.19
	OFAC
	78
	

	5.20
	Anti-Corruption Laws
	78
	

	ARTICLE VI AFFIRMATIVE COVENANTS
	78
	

	6.01
	Financial Statements
	79
	

	6.02
	Certificates; Other Information
	79
	

	6.03
	Notices
	81
	

	6.04
	Payment of Taxes
	82
	

	6.05
	Preservation of Existence, Etc
	82
	

	6.06
	Maintenance of Properties
	82
	

	6.07
	Maintenance of Insurance
	82
	

	6.08
	Compliance with Laws and Contractual Obligations
	82
	

	6.09
	Books and Records
	82
	

	6.10
	Inspection Rights
	83
	

	6.11
	Use of Proceeds
	83
	

	6.12
	New Subsidiaries
	83
	

	6.13
	Anti-Corruption Laws
	84
	

	ARTICLE VII NEGATIVE COVENANTS
	84
	

	7.01
	Liens
	84
	

	7.02
	Fundamental Changes
	87
	

	7.03
	Change in Nature of Business
	88
	

	7.04
	Transactions with Affiliates
	88
	

	7.05
	Burdensome Agreements
	89
	

ii

	
				
	7.06
	[Reserved]
	89
	

	7.07
	Financial Covenants
	89
	

	7.08
	Indebtedness
	89
	

	7.09
	Sanctions
	89
	

	7.10
	Anti-Corruption Laws
	90
	

	ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES
	90
	

	8.01
	Events of Default
	90
	

	8.02
	Remedies Upon Event of Default
	92
	

	8.03
	Application of Funds
	93
	

	ARTICLE IX ADMINISTRATIVE AGENT
	93
	

	9.01
	Appointment and Authority
	93
	

	9.02
	Rights as a Lender
	94
	

	9.03
	Exculpatory Provisions
	94
	

	9.04
	Reliance by Administrative Agent
	95
	

	9.05
	Delegation of Duties
	95
	

	9.06
	Resignation of Administrative Agent
	95
	

	9.07
	Non‐Reliance on Administrative Agent and Other Lenders
	97
	

	9.08
	No Other Duties, Etc
	97
	

	9.09
	Administrative Agent May File Proofs of Claim
	97
	

	9.10
	Guaranty Matters
	98
	

	ARTICLE X MISCELLANEOUS
	99
	

	10.01
	Amendments, Etc
	99
	

	10.02
	Notices; Effectiveness; Electronic Communication
	101
	

	10.03
	No Waiver; Cumulative Remedies; Enforcement
	103
	

	10.04
	Expenses; Indemnity; Damage Waiver
	104
	

	10.05
	Payments Set Aside
	106
	

	10.06
	Successors and Assigns
	106
	

	10.07
	Treatment of Certain Information; Confidentiality
	111
	

	10.08
	Right of Setoff
	112
	

	10.09
	Interest Rate Limitation
	113
	

	10.10
	Counterparts; Integration; Effectiveness
	113
	

	10.11
	Survival of Representations and Warranties
	113
	

	10.12
	Severability
	113
	

	10.13
	Replacement of Lenders
	113
	

	10.14
	Governing Law; Jurisdiction; Etc
	114
	

	10.15
	Waiver of Jury Trial
	115
	

	10.16
	No Advisory or Fiduciary Responsibility
	116
	

	10.17
	Electronic Execution of Assignments and Certain Other Documents
	116
	

	10.18
	USA PATRIOT Act Notice
	117
	

	10.19
	Acknowledgement and Consent to Bail-In of EEA Financial Institutions
	117
	

	10.20
	Acknowledgement Regarding any Supported QFCs
	117
	

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SCHEDULES
1.01        Term Securitization Programs
2.01        Commitments and Applicable Percentages
2.01A        Letter of Credit and Swing Line Commitments
5.06        Litigation
5.13        Subsidiaries and Other Equity Investments
7.01        Existing Liens
10.02        Administrative Agent’s Office; Certain Addresses for Notices
10.08        Restricted Deposit Accounts
EXHIBITS
Form of
A    Committed Loan Notice
B    Swing Line Loan Notice
C    New Vehicle Swing Line Loan Notice
D    Note
E    Compliance Certificate
F    Assignment and Assumption
G    Company Guaranty Agreement
H    Subsidiary Guaranty Agreement
I    Joinder Agreement
J    Designated Borrower Notice
K    Notice of Loan Prepayment

iv

CREDIT AGREEMENT
This CREDIT AGREEMENT (“Agreement”) is entered into as of June 7, 2019, among CARMAX AUTO SUPERSTORES, INC., a Virginia corporation (the “Revolving Borrower”), certain Subsidiaries of the Company party hereto pursuant to Section 2.15 (each a “Designated Borrower” and, together with the Revolving Borrower, the “Borrowers” and, each a “Borrower”), CARMAX, INC., a Virginia corporation (the “Company”), each lender from time to time party hereto (collectively, the “Lenders” and individually, a “Lender”), BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender, New Vehicle Swing Line Lender and L/C Issuer, and JPMORGAN CHASE BANK, N.A., as L/C Issuer.
The Company has requested that the Lenders provide a revolving credit facility, and the Lenders are willing to do so on the terms and conditions set forth herein.
In consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows:
ARTICLE I
 
DEFINITIONS AND ACCOUNTING TERMS
1.01    Defined Terms.  As used in this Agreement, the following terms shall have the meanings set forth below:
“ABCP Facility” means (a) the private securitization facility governed by the Transfer and Administration Agreement dated as of December 1, 2004 among CarMax Funding II, as transferor, CarMax Business Services, LLC, a Delaware limited liability company, individually and as servicer, Bank of America, as a bank investor, as a class agent and as agent, and the other investors and class agents party thereto, as amended, supplemented or otherwise modified from time to time, (b) the private securitization facility governed by the Transfer and Administration Agreement dated as of May 25, 2010 among CarMax Funding III, as transferor, CarMax Business Services, LLC, a Delaware limited liability company, individually and as servicer, Wells Fargo Securities LLC, a Delaware limited liability company, as a class agent and as agent, and the investors and other class agents party thereto, as amended, supplemented or otherwise modified from time to time, (c) the private securitization facility governed by the Transfer and Administration Agreement dated as of August 1, 2016 among CarMax Funding IV, as transferor, CarMax Business Services, LLC, a Delaware limited liability company, individually and as servicer and Wells Fargo Bank, National Association, as agent, a class agent and a bank investor, as amended, supplemented or otherwise modified from time to time, (d) the private securitization facility governed by the Transfer and Administration Agreement dated as of September 29, 2017 among CarMax Funding V, as transferor, CarMax Business Services, LLC, a Delaware limited liability company, individually and as servicer, Sumitomo Mitsui Banking Corporation, a Japanese banking corporation, as a bank investor, Manhattan Asset Funding Company LLC, a Delaware limited liability company, as a conduit investor, and SMBC Nikko Securities America, Inc., a Delaware corporation, as class agent and as agent, as amended, supplemented or otherwise modified from time to time, and (e) any other asset‐backed commercial paper facility under which retail installment contracts originated by the Company or any other Loan Party are sold, transferred or assigned from time to time to one or more special purpose entities in a transaction that constitutes a “true sale” for bankruptcy purposes (as evidenced by an opinion prepared and delivered in a manner consistent with market standards by reputable independent counsel experienced in securitization transactions) for a price equal to not less than the fair market value of such retail installment contracts and on such other terms and conditions as shall be reasonable and customary for such transactions; provided, however, that, except as may be required by credit risk retention rules under applicable Law, (x) such arrangement does not include (i) provisions under which the Company or any 

Subsidiary (other than an Excluded Special Purpose Finance Subsidiary) directly assumes the credit risk associated with such retail installment contracts, (ii) direct or indirect recourse provisions under which, based on the historical performance of such retail installment contracts, the Company or any Subsidiary (other than an Excluded Special Purpose Finance Subsidiary) could reasonably be expected to suffer economic loss, or (iii) any recourse provisions which are not customary for transactions of such type and (y) such arrangement does not result in the creation of any Lien on the assets of the Company or any Subsidiary (other than Excluded Special Purpose Finance Subsidiaries), other than Liens on such retail installment contracts and the Related Property.
“Acquisition” means any transaction or series of transactions resulting in the acquisition of (i) more than 50.00% of the Equity Interests in another Person, whether by purchase of such Equity Interests or upon the exercise of an option or warrant for, or conversion of securities into, such Equity Interests, (ii) assets of another Person which constitute all or substantially all of the assets of such Person or of a business unit or division of, or a line or lines of business conducted by such Person, or (iii) assets constituting a vehicle dealership.
“Added Lender” has the meaning specified in Section 2.16(a).
“Additional Commitment Lender” has the meaning specified in Section 2.19(d).
“Administrative Agent” means Bank of America in its capacity as administrative agent under any of the Loan Documents, or any successor administrative agent pursuant to the terms hereof.
“Administrative Agent’s Office” means the Administrative Agent’s address and, as appropriate, account as set forth on Schedule 10.02, or such other address or account as the Administrative Agent may from time to time notify to the Company and the Lenders.
“Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent.
“Affiliate” means, with respect to any 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.
“Agent Parties” has the meaning specified in Section 10.02(c).
“Aggregate Commitments” means the Commitments of all the Lenders.  The amount of the Aggregate Commitments in effect on the Closing Date is $1,450,000,000.
“Agreement” means this Credit Agreement.
“Applicable Percentage” means, with respect to any Lender at any time, the percentage (carried out to the ninth decimal place) of the Aggregate Commitments represented by such Lender’s Commitment at such time.  If the commitment of each Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section 8.02 or if the Aggregate Commitments have expired, then the Applicable Percentage of each Lender shall be determined based on the Applicable Percentage of such Lender most recently in effect, giving effect to any subsequent assignments.  The initial Applicable Percentage of each Lender is set forth opposite the name of such Lender on Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable.

2

“Applicable Rate” means the following percentages per annum, based upon the Consolidated Leverage Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 6.02(a):
	
					
	Pricing Tier
	Consolidated Leverage Ratio
	Commitment 
Fee
	Applicable Rate for Eurodollar Rate Loans and Letter of Credit Fees
	Applicable 
Rate 
for Base Rate Loans

	1
	≤0.75:1
	0.090%
	0.950%
	0.000%

	2
	> 0.75:1 but ≤ 1.75:1
	0.110%
	1.100%
	0.100%

	3
	> 1.75:1 but ≤ 2.50:1
	0.125%
	1.200%
	0.200%

	4
	> 2.50:1 but ≤ 3.25:1
	0.175%
	1.300%
	0.300%

	5
	> 3.25:1 but ≤ 3.75:1
	0.225%
	1.400%
	0.400%

	6
	> 3.75:1
	0.275%
	1.600%
	0.600%

Any increase or decrease in the Applicable Rate resulting from a change in the Consolidated Leverage Ratio shall become effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 6.02(a); provided, however, that if a Compliance Certificate is not delivered when due in accordance with such Section, then, upon the request of the Required Lenders, Pricing Tier 6 shall apply as of the first Business Day after the date on which such Compliance Certificate was required to have been delivered and shall remain in effect until the date on which such Compliance Certificate is delivered in accordance with Section 6.02(a), whereupon the Applicable Rate shall be adjusted based upon the calculation of the Consolidated Leverage Ratio contained in such Compliance Certificate.  The Applicable Rate in effect from the Closing Date through the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 6.02(a) for the first fiscal quarter ending after the Closing Date shall be determined based upon Pricing Tier 2.
“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.
“Arrangers” means BAS, JPMorgan and Wells Fargo Securities, LLC, in their capacities as joint lead arrangers and joint bookrunners.
“Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 10.06(b)), and accepted by the Administrative Agent, in substantially the form of Exhibit F or any other form (including electronic documentation generated by use of an electronic platform) approved by the Administrative Agent.
“Attributable Indebtedness” means, on any date, (a) in respect of any capital lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease Obligation, the capitalized amount of the remaining lease payments under the relevant lease that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease were accounted for as a capital lease.

3

“Audited Financial Statements” means the audited consolidated balance sheet of the Company and its Subsidiaries as at February 28, 2019, and the related consolidated statements of earnings, shareholders’ equity and cash flows of the Company and its Subsidiaries for the fiscal year ended on that date, including the notes thereto.
“Auto-Extension Letter of Credit” has the meaning specified in Section 2.03(b)(iii).
“Autoborrow Agreement” means an agreement by and between the Revolving Borrower and the Swing Line Lender, providing for the automatic advance of Swing Line Loans by the Swing Line Lender under the conditions set forth therein.
“Availability Period” means the period from and including the Closing Date to the earliest of (a) the Maturity Date, (b) the date of termination of the Aggregate Commitments pursuant to Section 2.07, and (c) the date of termination of the commitment of each Lender to make Loans and of the obligation of the L/C Issuer to make L/C Credit Extensions pursuant to Section 8.02.
“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable 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.
“Bank of America” means Bank of America, N.A. and its successors.
“BAS” means BofA Securities, Inc.
“Base Rate” means for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 1/2 of 1%, (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate” and (c) the Eurodollar Rate plus 1%; provided that if the Base Rate shall be less than zero, such rate shall be deemed zero for purposes of this Agreement.  The “prime rate” is a rate set by Bank of America based upon various factors including Bank of America’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate.  Any change in such rate announced by Bank of America shall take effect at the opening of business on the day specified in the public announcement of such change.  If the Base Rate is being used as an alternate rate of interest pursuant to Section 3.03 hereof, then the Base Rate shall be the greater of clauses (a) and (b) above and shall be determined without reference to clause (c) above.
“Base Rate Committed Loan” means a Committed Loan that is a Base Rate Loan.
“Base Rate Loan” means a Loan that bears interest at a rate based on the Base Rate.
“Beneficial Ownership Certification” means a certification regarding beneficial ownership that is required by the Beneficial Ownership Regulation.

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

4

“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”.
“Bilateral New Vehicle Swing Line Loan” means the portion of any New Vehicle Swing Line Loan made pursuant to Section 2.05(a) which (i) causes the Outstanding Amount of New Vehicle Swing Line Loans to exceed the New Vehicle Swing Line Sublimit or causes any other Obligations to exceed any applicable limit set forth in Section 2.05(a), or (ii) is made when the conditions in Section 4.02 are not otherwise met.
“Bilateral Swing Line Loan” means the portion of any Swing Line Loan made pursuant to Section 2.04(a) which causes the Outstanding Amount of Swing Line Loans to exceed the Swing Line Sublimit or causes any other Obligations to exceed any applicable limit set forth in Section 2.04(a).
“Borrower” and “Borrowers” each has the meaning specified in the introductory paragraph hereto.
“Borrower Materials” has the meaning specified in Section 6.02.
“Borrowers’ Liabilities” has the meaning specified in Section 2.15(c).
“Borrowing” means a Committed Borrowing, a Swing Line Borrowing or a New Vehicle Swing Line Borrowing, as the context may require.
“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the Laws of, or are in fact closed in, New York State or the state where the Administrative Agent’s Office is located and if such day relates to any Eurodollar Rate Loan, means any such day that is also a day on which dealings in Dollar deposits are conducted by and between banks in the London interbank eurodollar market.
“CarMax Funding II” means CarMax Funding II, LLC, a Delaware limited liability company.
“CarMax Funding III” means CarMax Funding III, LLC, a Delaware limited liability company.
“CarMax Funding IV” means CarMax Funding IV, LLC, a Delaware limited liability company.
“CarMax Funding V” means CarMax Funding V, LLC, a Delaware limited liability company.
“Cash Collateralize” means to pledge and deposit with or deliver to the Administrative Agent, for the benefit of one or more of the L/C Issuer or the Lenders, as collateral for L/C Obligations, or obligations of the Lenders to fund participations in respect of L/C Obligations, cash or deposit account balances or, if the Administrative Agent and the L/C Issuer shall agree in their sole discretion, other credit support, in each case pursuant to documentation in form and substance satisfactory to (a) the Administrative Agent and (b) the L/C Issuer. “Cash Collateral” shall have a meaning correlative to the foregoing and shall include the proceeds of such cash collateral and other credit support.
“Cash Equivalents” means, as at any date, (a) securities issued or directly and fully guaranteed or insured by the United States or any agency or instrumentality thereof (provided that the full faith and credit of the United States is pledged in support thereof) having maturities of not more than twelve months from the date of acquisition, (b) Dollar denominated time deposits and certificates of deposit with (i) any Lender, 

5

(ii) any domestic commercial bank of recognized standing having capital and surplus in excess of $500,000,000 or (iii) any bank whose short term commercial paper rating from S&P is at least A-1 or the equivalent thereof or from Moody’s is at least P-1 or the equivalent thereof (any such bank being an “Approved Bank”), in each case with maturities of not more than 270 days from the date of acquisition, (c) commercial paper and variable or fixed rate notes issued by any Approved Bank (or by the parent company thereof) or any variable rate notes issued by, or guaranteed by, any domestic corporation rated A-1 (or the equivalent thereof) or better by S&P or P-1 (or the equivalent thereof) or better by Moody’s and maturing within six months of the date of acquisition, (d) marketable short-term money market and similar funds (including such funds investing a portion of their assets in municipal securities) having a rating of at least P-1 or A-1 from either S&P or Moody’s, respectively (or, if at any time neither S&P nor Moody’s shall be rating such obligations, an equivalent rating from another nationally recognized statistical rating agency selected by the Borrowers), (e) repurchase agreements entered into by any Person with a bank or trust company (including any of the Lenders) or recognized securities dealer having capital and surplus in excess of $500,000,000 for direct obligations issued by or fully guaranteed or insured by the United States government or any agency or instrumentality of the United States in which such Person shall have a perfected first priority security interest (subject to no other Liens) and having, on the date of purchase thereof, a fair market value of at least 100% of the amount of the repurchase obligations, (f) investments, classified in accordance with GAAP as current assets, in money market investment programs registered under the Investment Company Act of 1940 which are administered by reputable financial institutions having capital of at least $500,000,000, (g) investment funds investing at least 95% of their assets in securities of the types (including as to credit quality and maturity) described in clauses (b) through (f) above and (h) solely with respect to any Foreign Subsidiary, investments of comparable tenor and credit quality to those described in the foregoing clauses (b) through (g) customarily utilized in countries in which such Foreign Subsidiary operates for short term cash management purposes.
“Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation or application thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all regulations, requests, rules, guidelines or directives under or issued in connection therewith and (y) all regulations, requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.
“Change of Control” means an event or series of events by which:
(a)    any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan), becomes the “beneficial owner” (as defined in Rules 13d‐3 and 13d‐5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire (such right, an “option right”)), directly or indirectly, of 35% or more of the equity securities of the Company entitled to vote for members of the board of directors or equivalent governing body of the Company on a fully‐diluted basis (and taking into account all such securities that such person or group has the right to acquire pursuant to any option right); or

6

(b)    during any period of 12 consecutive months, a majority of the members of the board of directors or other equivalent governing body of the Company cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body; or
(c)    the Revolving Borrower ceases to be a direct or indirect, wholly‐owned Subsidiary of the Company; or
(d)    the Revolving Borrower becomes a direct or indirect Subsidiary of any Subsidiary that is not a Loan Party.
“Closing Date” means June 7, 2019.
“Code” means the Internal Revenue Code of 1986.
“Collection Account” means account #XXXXXXXXXXXX maintained in the name of CarMax Business Services, LLC, d/b/a CarMax Auto Finance, at Wells Fargo Bank, National Association.
“Commitment” means, as to each Lender, its obligation to (a) make Committed Loans to the Revolving Borrower pursuant to Section 2.01, (b) purchase participations in L/C Obligations, (c) purchase participations in Swing Line Loans, and (d) purchase participations in New Vehicle Swing Line Loans, in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement.
“Commitment Fee” has the meaning specified in Section 2.10(a).
“Committed Borrowing” means a borrowing consisting of simultaneous Committed Loans of the same Type made by each of the Lenders pursuant to Section 2.01.
“Committed Loan” has the meaning specified in Section 2.01, provided that, for purposes of clarity, Committed Loans shall not include Swing Line Loans or New Vehicle Swing Line Loans, but shall include any Loan made pursuant to Section 2.04(c)(i) or 2.05(e)(i).
“Committed Loan Notice” means a notice of (a) a Committed Borrowing, or (b) a conversion of Committed Loans from one Type to the other pursuant to Section 2.02(a), which shall be substantially in the form of Exhibit A or such other form as may be approved by the Administrative Agent (including any form on an electronic platform or electronic transmission system as shall be approved by the Administrative Agent), appropriately completed and signed by a Responsible Officer of a Borrower.
“Company” has the meaning specified in the introductory paragraph hereto.
“Company Guaranty Agreement” means the Company Guaranty Agreement made by the Company in favor of the Administrative Agent and the Lenders, substantially in the form of Exhibit G.

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“Company Margin Stock” means capital stock issued by the Company that (i) constitutes “margin stock” within the meaning of such term under Regulation U of the FRB and (ii) would, taking into account all other “margin stock” held by the Company and its Subsidiaries, cause the value of all such “margin stock” to exceed 25% of the value of all assets of the Company and its Subsidiaries that directly or indirectly secure (with the meaning of Regulation U of the FRB) the Obligations.
“Compliance Certificate” means a certificate substantially in the form of Exhibit E.
“Consolidated EBITDA” means, for any period, for the Company and its Subsidiaries on a consolidated basis, an amount equal to Consolidated Net Income for such period plus (a) the following to the extent deducted in calculating such Consolidated Net Income: 
(i)     Consolidated Interest Charges for such period; 
(ii)     the provision for Federal, state, local and foreign income taxes based on income, profits or capital payable by the Company and its Subsidiaries for such period; 
(iii)     depreciation and amortization expense; 
(iv)     share-based compensation expense reducing such Consolidated Net Income which does not represent a cash item in such period or any future period; 
(v)     other non-recurring expenses of the Company and its Subsidiaries reducing such Consolidated Net Income which do not represent a cash item in such period or any future period; and
(vi)    the amortization or expense of all premiums, fees and expenses payable to the extent related to Indebtedness;
and minus (b) the following to the extent included in calculating such Consolidated Net Income: (i) Federal, state, local and foreign income tax credits of the Company and its Subsidiaries for such period and (ii) all non-cash items increasing such Consolidated Net Income.
“Consolidated EBITDAR” means, for any period, for the Company and its Subsidiaries on a consolidated basis, an amount equal to Consolidated EBITDA for such period, plus Consolidated Rental Obligations for such period.
“Consolidated Funded Debt” means, with respect to the Company and its Subsidiaries on a consolidated basis, at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:
(a)    all obligations of such Persons for borrowed money and all monetary obligations of such Persons evidenced by bonds, debentures, notes, loan agreements or other similar instruments;
(b)    all unreimbursed obligations of such Persons arising under drawn letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar instruments;
(c)    indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by such Persons (including indebtedness arising under conditional sales 

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or other title retention agreements), whether or not such indebtedness shall have been assumed by such Persons or is limited in recourse;
(d)    capital leases and Synthetic Lease Obligations; and
(e)    all Guarantees of such Person in respect of any of the foregoing.
For all purposes hereof, Consolidated Funded Debt shall include the Indebtedness of the types described above of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company or the foreign equivalent thereof) in which the Company or any of its Subsidiaries is a general partner or a joint venturer, unless such Indebtedness is expressly made non‐recourse to such Person (in which case such Indebtedness shall not be included) or the liability of such Person in respect of such Indebtedness is otherwise limited (in which case such Indebtedness shall only be included to the extent of such liability).  The amount of any Indebtedness secured by a Lien on property owned or being purchased by the Company or any of its Subsidiaries shall be deemed to be the lesser of the outstanding amount of such Indebtedness and the fair market value of such property as determined by such Person in good faith if recourse with respect to such Indebtedness is expressly limited to such property.  The amount of any capital lease or Synthetic Lease Obligation as of any date shall be deemed to be the amount of Attributable Indebtedness in respect thereof as of such date.  Consolidated Funded Debt shall not include the liabilities of any Excluded Special Purpose Finance Subsidiary.
“Consolidated Interest and Rent Coverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated EBITDAR for the four fiscal quarter period ending on such date to (b) Consolidated Interest Charges for such period plus Consolidated Rental Obligations for the four fiscal quarter period ending on such date ((x) excluding such rental obligations with respect to real property leased by the Company and its Subsidiaries at the beginning of such period that was purchased by the Company and its Subsidiaries during such four quarter period, but (y) including, on an annualized basis, such rental obligations with respect to real property owned by the Company and its Subsidiaries at the beginning of such period that was Disposed pursuant to a sale and leaseback transaction consummated during such period).
“Consolidated Interest Charges” means, for any period, for the Company and its Subsidiaries on a consolidated basis, the sum of (a) all gross interest expense (without reducing such amount by, or otherwise netting out, any interest income, floorplan assistance, interest credits or other similar income), premium payments, debt discount, fees, charges and related expenses of the Company and its Subsidiaries in connection with borrowed money or in connection with the deferred purchase price of assets, in each case to the extent treated as interest in accordance with GAAP, but excluding any such interest or expense of (i) an Excluded Special Purpose Finance Subsidiary or (ii) any Person that is neither the Company nor a Subsidiary, which interest or expense (in the case of each of clauses (i) and (ii)) arises pursuant to a Permitted Sale Facility, and (b) the portion of rent expense of the Company and its Subsidiaries with respect to such period under (i) capital leases that is treated as interest in accordance with GAAP and (ii) Synthetic Lease Obligations that would be treated as interest under GAAP were such leases treated as capital leases.
“Consolidated Leverage Ratio” means, as of any date of determination, the ratio of (a) an amount equal to (i) the Consolidated Funded Debt as of such date plus (ii) the product of (A) six (6) times (B) Consolidated Rental Obligations for the four fiscal quarter period ending on such date ((x) excluding such rental obligations with respect to real property leased by the Company and its Subsidiaries at the beginning of such period that was purchased by the Company and its Subsidiaries during such four quarter period, but (y) including, on an annualized basis, such rental obligations with respect to real property owned by the Company and its Subsidiaries at the beginning of such period that was Disposed pursuant to a sale and 

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leaseback transaction consummated during such period) to (b) Consolidated EBITDAR for the four fiscal quarter period ending on such date.
“Consolidated Net Income” means, for any period, for the Company and its Subsidiaries on a consolidated basis, the net income of the Company and its Subsidiaries for such period (excluding any income (or loss) for such period of any Person if such Person is not a Subsidiary, except that the aggregate amount of cash actually distributed by such Person during such period to the Company or a Subsidiary as a dividend or other distribution shall be included in Consolidated Net Income).
“Consolidated Net Leverage Ratio” means, as of any date of determination, the ratio of (a) an amount equal to (i) the Consolidated Funded Debt as of such date minus (ii) the amount of unrestricted cash and Cash Equivalents held by the Borrowers in the United States as of such date in excess of $15,000,000 (which cash is verifiable by the Administrative Agent) plus (iii) the product of (A) six (6) times (B) Consolidated Rental Obligations for the four fiscal quarter period ending on such date ((x) excluding such rental obligations with respect to real property leased by the Company and its Subsidiaries at the beginning of such period that was purchased by the Company and its Subsidiaries during such four quarter period, but (y) including, on an annualized basis, such rental obligations with respect to real property owned by the Company and its Subsidiaries at the beginning of such period that was Disposed pursuant to a sale and leaseback transaction consummated during such period) to (b) Consolidated EBITDAR for the four fiscal quarter period ending on such date.
“Consolidated Rental Obligations” means, for any period, the aggregate amount of all rental obligations accrued during such period for which the Company and its Subsidiaries are directly or indirectly liable (as lessee or as guarantor or other surety but without duplication) under all leases (excluding capital leases) in effect at any time during such period, all as determined on a consolidated basis in accordance with GAAP.
“Consolidated Unencumbered Current Assets” means, as of any date of determination, the book value of current assets of the Company and its Subsidiaries, on a consolidated basis, that are not subject to any Lien securing Indebtedness.
“Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.
“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.
“Credit Extension” means each of the following: (a) a Borrowing and (b) an L/C Credit Extension.
“Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally.
“Default” means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default.

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“Default Rate” means (a) when used with respect to Obligations other than Letter of Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate, if any, applicable to Base Rate Loans plus (iii) 2% per annum; provided, however, that with respect to a Eurodollar Rate Loan, the Default Rate shall be an interest rate equal to the interest rate (including any Applicable Rate) otherwise applicable to such Loan plus 2% per annum, and (b) when used with respect to Letter of Credit Fees, a fee rate equal to the Applicable Rate plus 2% per annum.
“Defaulting Lender” means, subject to Section 2.18(b), any Lender that (a) has failed to (i) fund all or any portion of its Loans within two Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Company in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent, the L/C Issuer, the Swing Line Lender, the New Vehicle Swing Line Lender or any Lender any other amount required to be paid by it hereunder within two Business Days of the date when due, (b) has notified the Company or the Administrative Agent, the L/C Issuer, the Swing Line Lender or the New Vehicle Swing Line Lender in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect with respect to its funding obligations hereunder (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied) or generally under other agreements in which it commits to extend credit, (c) has failed, within three Business Days after written request by the Administrative Agent or the Company, to confirm in writing to the Administrative Agent and the Company that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Company), or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity or (iii) become the subject of a Bail-in Action; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any Equity Interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above, and of the effective date of such status, shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.18(b)) as of the date established therefor by the Administrative Agent in a written notice of such determination, which shall be delivered by the Administrative Agent to the Company, the L/C Issuer, the Swing Line Lender, the New Vehicle Swing Line Lender and each Lender promptly following such determination.
“Designated Borrower” has the meaning specified in the introductory paragraph hereto.
“Designated Borrower Notice” has the meaning specified in Section 2.15(b).
“Delaware LLC” means any limited liability company organized or formed under the laws of the State of Delaware.

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“Delaware Divided LLC” means any Delaware LLC which has been formed upon consummation of a Delaware LLC Division.

“Delaware LLC Division” means the statutory division of any Delaware LLC into two or more Delaware LLCs pursuant to Section 18-217 of the Delaware Limited Liability Company Act.
“Designated Jurisdiction” means any country or territory to the extent that such country or territory itself or whose government is the subject of any territorial Sanction (for purposes of clarification, as of the Closing Date, the foregoing are: Cuba, Iran, North Korea, Syria and the Crimea region of Ukraine).
“Disposition” or “Dispose” means the sale, transfer, license, lease or other disposition (including any sale and leaseback transaction) of any property by any Person, including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith and including any disposition of property to a Delaware Divided LLC pursuant to a Delaware LLC Division, but excluding sales, transfers or other dispositions of Company Margin Stock that is held by the Company as treasury stock.
“Dollar” and “$” mean lawful money of the United States.
“Domestic Subsidiary” means any Subsidiary that is organized under the Laws of any state of the United States or the District of Columbia.
“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a Subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

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

“EEA Resolution Authority” means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.
“Eligible Assignee” means any Person that meets the requirements to be an assignee under Sections 10.06(b)(iii) and (v) (subject to such consents, if any, as may be required under Section 10.06(b)(iii)).
“Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including those related to hazardous substances or wastes, air emissions and discharges to waste or public systems.
“Environmental Liability” means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of the Company, any other Loan Party or any of their respective Subsidiaries directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or 

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disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.
“Equity Interests” means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting.
“ERISA” means the Employee Retirement Income Security Act of 1974.
“ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with the Company within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).
“ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by the Company or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by the Company or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate, the treatment of a Plan amendment as a termination under Sections 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the imposition of any liability upon the Company or any ERISA Affiliate under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, that has not been satisfied in full.
“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.
“Eurodollar Rate” means:
(a)    for any Interest Period with respect to a Eurodollar Rate Loan, the rate per annum equal to the London Interbank Offered Rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate for Dollars for a period equal in length to such Interest Period) (“LIBOR”) as published on the applicable Bloomberg screen page (or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period;
(b)    for any interest calculation with respect to a Base Rate Loan on any date, the rate per annum equal to LIBOR, at approximately 11:00 a.m., London time determined two Business Days prior to such date for Dollar deposits with a term of one month commencing that day; and

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(c)    if the Eurodollar Rate shall be less than zero, such rate shall be deemed zero for purposes of this Agreement.
“Eurodollar Rate Committed Loan” means a Committed Loan that is a Eurodollar Rate Loan.
“Eurodollar Rate Loan” means a Loan that bears interest at a rate based on clause (a) of the definition of “Eurodollar Rate”.
“Event of Default” has the meaning specified in Section 8.01.
“Excluded Special Purpose Finance Subsidiaries” means, collectively, (a) CarMax Funding II, (b) CarMax Auto Funding LLC, a Delaware limited liability company, (c) CarMax Funding III, (d) CarMax Funding IV, (e) CarMax Funding V, (f) CarMax Funding Services, LLC, a Delaware limited liability company, (g) CarMax Funding Services II, LLC, a Delaware limited liability company, and (h) any other special purpose Subsidiary formed to purchase or otherwise acquire retail installment contracts in connection with an existing or proposed Permitted Sale Facility and which does not conduct any business other than in connection with such Permitted Sale Facility.
“Excluded Subsidiaries” means (a) Glen Allen Insurance, Ltd., a Bermuda company and any other captive insurance subsidiary; (b) each Excluded Special Purpose Finance Subsidiary; (c) any Subsidiary of the Company that is (i) a Foreign Subsidiary or a Subsidiary of a Foreign Subsidiary, (ii) a FSHCO or (iii) a Subsidiary that is not wholly‐owned by a Loan Party; (d) any Subsidiary that is prohibited by applicable Law from guaranteeing the Obligations, or which would require governmental (including regulatory) consent, approval, license or authorization to provide a guarantee, in each case, unless such consent, approval, license or authorization has been received; and (e) any not-for-profit subsidiary; provided that in no event shall any borrower or guarantor in respect of the Term Loan Facility be an Excluded Subsidiary.
“Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the L/C Issuer or any other recipient of any payment to be made by or on account of any obligation of the Company or any Borrower hereunder, (a) Taxes imposed on or measured by its overall net income (however denominated), including branch profits Taxes, and franchise Taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under the laws of which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its applicable Lending Office is located, (b) any branch profits Taxes imposed by the United States or any similar tax imposed by any other jurisdiction in which the Company or such Borrower, as the case may be, is located, (c) any U.S. federal withholding Taxes imposed pursuant to FATCA and (d) in the case of a Foreign Lender (other than an assignee pursuant to a request by the Company under Section 10.13), any U.S. federal withholding Tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party hereto (or designates a new Lending Office) or is attributable to such Foreign Lender’s failure or inability (other than as a result of a Change in Law) to comply with Section 3.01(e), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new Lending Office (or assignment), to receive additional amounts from the Company or the applicable Borrower, as the case may be, with respect to such withholding Tax pursuant to Section 3.01(a).
“Existing Credit Agreement” means that certain Credit Agreement dated as of August 24, 2015, as amended, amended and restated, supplemented or otherwise modified prior to the date hereof, among the Company, as guarantor, the Borrowers and Bank of America, as agent, and the lenders party thereto.
“Existing Maturity Date” has the meaning specified in Section 2.19(a).

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“Extending Lender” has the meaning specified in Section 2.19(e).
“FATCA” means Sections 1471 through 1474 of the Code, as of the Closing Date (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code, and any intergovernmental agreements entered into pursuant thereto.
“Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Bank of America on such day on such transactions as determined by the Administrative Agent and (c) if the Federal Funds Rate shall be less than zero, such rate shall be deemed zero for purposes of this Agreement.
“Fee Letters” means (a) the letter agreement, dated May 16, 2019, among the Company, the Administrative Agent and BAS, (b) the letter agreement, dated May 16, 2019, among the Company, and JPMorgan and (c) the letter agreement, dated May 16, 2019, among the Company, Wells Fargo Bank, National Association and Wells Fargo Securities, LLC.
“Foreign Lender” means, with respect to the Company or any Borrower, any Lender that is organized under the laws of a jurisdiction other than that in which the Company or such Borrower is resident for tax purposes.  For purposes of this definition, the United States, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction.
“Foreign Subsidiary” means any direct or indirect Subsidiary of the Company other than a Domestic Subsidiary.
“FRB” means the Board of Governors of the Federal Reserve System of the United States.
“FSHCO” means any Domestic Subsidiary of the Company substantially all of whose assets consists of the Equity Interests of one or more Foreign Subsidiaries.
“Fronting Exposure” means, at any time there is a Defaulting Lender, (a) with respect to the L/C Issuer, such Defaulting Lender’s Applicable Percentage of the outstanding L/C Obligations other than L/C Obligations as to which such Defaulting Lender’s participations or obligation to acquire, refinance or fund participations has been reallocated to other Lenders or Cash Collateralized in accordance with the terms hereof, (b) with respect to the Swing Line Lender, such Defaulting Lender’s Applicable Percentage of the outstanding Swing Line Loans other than Swing Line Loans as to which such Defaulting Lender’s participations or obligation to acquire, refinance or fund participations has been reallocated to other Lenders in accordance with the terms hereof and (c) with respect to the New Vehicle Swing Line Lender, such Defaulting Lender’s Applicable Percentage of the outstanding New Vehicle Swing Line Loans other than New Vehicle Swing Line Loans as to which such Defaulting Lender’s participations or obligation to acquire, refinance or fund participations has been reallocated to other Lenders in accordance with the terms hereof.
“Fund” means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its activities.

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“GAAP” means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied.
“Governmental Authority” means the government of the United States or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra‐national bodies such as the European Union or the European Central Bank).
“Guarantee” means, as to any Person, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other monetary obligation payable or performable by any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other monetary obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other monetary obligation of the payment or performance of such Indebtedness or other monetary obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other monetary obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other monetary obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any assets of such Person securing any Indebtedness or other monetary obligation of any other Person, whether or not such Indebtedness or other monetary obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien); provided, however, that the term “Guarantee” shall not include endorsements of drafts or other negotiable instruments for collection or deposit in the ordinary course of business, or customary and reasonable indemnity obligations in effect on the Closing Date, or entered into in connection with any acquisition or Disposition of assets permitted under this Agreement (other than such obligations with respect to Indebtedness).  The amount of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith; provided, however, that the amount of any Guarantee described in clause (b) above which is expressly non‐recourse to the other assets of such Person shall be deemed to be the lesser of the amount determined as described above and the fair market value of the assets subject to such Lien as determined by the guaranteeing Person in good faith.  The term “Guarantee” as a verb has a corresponding meaning.
“Guaranties” means the Company Guaranty Agreement and the Subsidiary Guaranty Agreement.
“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos‐containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any Environmental Law.
“Honor Date” has the meaning specified in Section 2.03(c)(i).

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“Increase Effective Date” has the meaning specified in Section 2.16(d).
“Increasing Lender” has the meaning specified in Section 2.16(a).
“Indebtedness” means, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:
(a)    all obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;
(b)    all direct or contingent obligations of such Person arising under letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar instruments issued or created for the account of such Person;
(c)    net obligations of such Person under any Swap Contract;
(d)    all obligations of such Person to pay the deferred purchase price of property or services (other than (x) trade accounts payable arising in the ordinary course of business, (y) any earn-out obligation until such obligation becomes a liability on the balance sheet of such Person in accordance with GAAP and (z) current liabilities consisting of expenses accrued in the ordinary course of business);
(e)    indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by such Person (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse;
(f)    capital leases and Synthetic Lease Obligations;
(g)    all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any Equity Interest in such Person or any other Person, valued, in the case of a redeemable preferred interest, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends; and
(h)    all Guarantees of such Person in respect of any of the foregoing.
For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation or limited liability company or the foreign equivalent thereof) in which such Person is a general partner or a joint venturer, unless such Indebtedness is expressly made non‐recourse to such Person (in which case such Indebtedness shall not be included) or the liability of such Person in respect of such Indebtedness is otherwise limited (in which case such Indebtedness shall only be included to the extent of such liability).  The amount of any Indebtedness secured by a Lien on property owned or being purchased by any Person shall be deemed to be the lesser of the outstanding amount of such Indebtedness and the fair market value of such property as determined by such Person in good faith if recourse with respect to such Indebtedness is expressly limited to such property.  The amount of any net obligation under any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such date.  The amount of any capital lease or Synthetic Lease Obligation as of any date shall be deemed to be the amount of Attributable Indebtedness in respect thereof as of such date.

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“Indemnified Taxes” means Taxes other than Excluded Taxes.
“Indemnitees” has the meaning specified in Section 10.04(b).
“Information” has the meaning specified in Section 10.07.
“Interest Payment Date” means (a) in the case of each Committed Loan or New Vehicle Swing Line Loan, the first Business Day of each calendar month, and (b) in the case of each Swing Line Loan, the second Business Day of each calendar month.
“Interest Period” means a period of approximately one month commencing on the first Business Day of each month and ending on the first Business Day of the following month.
“Investment” means, as to any Person, any direct or indirect acquisition or investment by such Person, whether by means of (a) the purchase or other acquisition of capital stock or other securities of another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition of any other debt or equity participation or interest in, another Person, including any partnership or joint venture interest in such other Person and any arrangement pursuant to which the investor Guarantees Indebtedness of such other Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions) of assets of another Person that constitute a business unit; provided however, that investments made by the Company or any of its Subsidiaries at the direction of an employee thereof under any deferred compensation plan or “rabbi trust” formed in connection with such plan shall not constitute “Investments” for purposes of this Agreement.
“IRS” means the United States Internal Revenue Service.
“ISP” means, with respect to any Letter of Credit, the “International Standby Practices 1998” published by the Institute of International Banking Law & Practice, Inc. (or such later version thereof as may be in effect at the time of issuance of such Letter of Credit).
“Issuer Documents” means, with respect to any Letter of Credit, the related Letter of Credit Application, and any other document, agreement or instrument entered into by the L/C Issuer and the Revolving Borrower (or any Subsidiary) or in favor of the L/C Issuer and relating to such Letter of Credit.
“Joinder Agreement” means each Joinder Agreement, substantially in the form of Exhibit I, executed and delivered by a Subsidiary or any other Person to the Administrative Agent, for the benefit of the Lenders, pursuant to Section 6.12.
“Joint Venture” means any Person in whom the Company or any of its Subsidiaries beneficially owns 50.0% or less of the Equity Interests thereof entitled to vote for members of the board of directors or equivalent governing body.
“JPMorgan” means JPMorgan Chase Bank, N.A. and its successors.
“Laws” means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law.

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“L/C Advance” means, with respect to each Lender, such Lender’s funding of its participation in any L/C Borrowing in accordance with its Applicable Percentage.
“L/C Borrowing” means an extension of credit resulting from a drawing under any Letter of Credit which has not been reimbursed on the date when made or refinanced as a Committed Borrowing.
“L/C Commitment” means, with respect to any L/C Issuer, the commitment of such L/C Issuer to issue Letters of Credit hereunder. The initial amount of each L/C Issuer’s L/C Commitment is set forth on Schedule 2.01A. The L/C Commitment of each L/C Issuer may be modified from time to time by agreement between such L/C Issuer and the Company, and notified to the Administrative Agent.
“L/C Credit Extension” means, with respect to any Letter of Credit, the issuance thereof or extension of the expiry date thereof, or the increase of the amount thereof.
“L/C Issuer” means (a) Bank of America in its capacity as issuer of Letters of Credit hereunder, or any successor issuer of Letters of Credit hereunder, (b) JPMorgan in its capacity as issuer of Letters of Credit hereunder, or any successor issuer of Letters of Credit hereunder and (c) any other Lender reasonably acceptable to the Revolving Borrower and the Administrative Agent that agrees to issue Letters of Credit pursuant hereto, in each case in its capacity as an issuer of Letters of Credit hereunder, or any successor issuer of Letters of Credit hereunder.  References herein and in the other Loan Documents to the L/C Issuer shall be deemed to refer to the L/C Issuer in respect of the applicable Letter of Credit or to all L/C Issuers, as the context requires.
“L/C Obligations” means, as of any date of determination, the aggregate amount available to be drawn under all outstanding Letters of Credit as of such date plus the aggregate of all Unreimbursed Amounts, including all L/C Borrowings, as of such date.  For purposes of computing the amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06.  For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn.
“Lender” has the meaning specified in the introductory paragraph hereto and, unless the context requires otherwise, includes the Swing Line Lender and the New Vehicle Swing Line Lender.
“Lending Office” means, as to any Lender, the office or offices of such Lender described as such in such Lender’s Administrative Questionnaire, or such other office or offices as a Lender may from time to time notify the Company and the Administrative Agent, which office may include any Affiliate of such Lender or any domestic or foreign branch of such Lender or such affiliate.  Unless the context otherwise requires each reference to a Lender shall include its applicable Lending Office.
“Letter of Credit” means any standby letter of credit issued hereunder.  Notwithstanding anything to the contrary contained herein, a letter of credit issued by an L/C Issuer other than Bank of America shall not be a “Letter of Credit” for purposes of the Loan Documents until such time as the Administrative Agent has been notified in writing of the issuance thereof by the applicable L/C Issuer and confirmed availability under the Aggregate Commitments.
“Letter of Credit Application” means an application and agreement for the issuance or amendment of a Letter of Credit in the form from time to time in use by the L/C Issuer.

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“Letter of Credit Expiration Date” means the day that is seven days prior to the Maturity Date then in effect (or, if such day is not a Business Day, the next preceding Business Day).
“Letter of Credit Fee” has the meaning specified in Section 2.03(h).
“Letter of Credit Sublimit” means an amount equal to $50,000,000; provided, however, that with respect to (i) Bank of America, in its capacity as an L/C Issuer, unless otherwise agreed by Bank of America, it shall not be obligated to issue Letters of Credit in an aggregate amount in excess of 50% of the Letter of Credit Sublimit and (ii) JPMorgan, in its capacity as an L/C Issuer, unless otherwise agreed by JPMorgan, it shall not be obligated to issue Letters of Credit in an aggregate amount in excess of 50% of the Letter of Credit Sublimit.  The Letter of Credit Sublimit is part of, and not in addition to, the Aggregate Commitments.  As of the Closing Date, the Letter of Credit Sublimit is set forth on Schedule 2.01A.
“Leverage Holiday” has the meaning specified in Section 7.07.

“LIBOR Screen Rate” means the LIBOR quote on the applicable screen page the Administrative Agent designates to determine LIBOR (or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time).

“LIBOR Successor Rate” has the meaning specified in Section 3.03(c).

“LIBOR Successor Rate Conforming Changes” means, with respect to any proposed LIBOR Successor Rate, any conforming changes to the definition of Base Rate, the definition of Interest Period, timing and frequency of determining rates and making payments of interest and other administrative matters as may be appropriate, in the discretion of the Administrative Agent in consultation with the Company, to reflect the adoption of such LIBOR Successor Rate and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent determines that adoption of any portion of such market practice is not administratively feasible or that no market practice for the administration of such LIBOR Successor Rate exists, in such other manner of administration as the Administrative Agent determines is reasonably necessary in connection with the administration of this Agreement).
“Lien” means any mortgage, pledge, hypothecation, collateral assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement in the nature of a security interest of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property, and any financing lease having substantially the same economic effect as any of the foregoing).
“Loan” means an extension of credit by a Lender to a Borrower under Article II in the form of a Committed Loan, a Swing Line Loan or a New Vehicle Swing Line Loan.
“Loan Documents” means, collectively, this Agreement, each Joinder Agreement, each Note, each Issuer Document, each Payment Commitment, each Guaranty, the Fee Letters and any Autoborrow Agreement.
“Loan Parties” means, collectively, the Company, the Revolving Borrower, each Subsidiary Guarantor and each Designated Borrower.
“Material Acquisition” mean any Acquisition that the aggregate consideration therefor (including Indebtedness assumed in connection therewith) equals or exceeds $250,000,000.

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“Material Adverse Effect” means (a) a material adverse change in, or a material adverse effect on, the business, assets, liabilities, results of operations or financial condition of the Company and its Subsidiaries, taken as a whole; (b) a material impairment of the ability of the Loan Parties, taken as a whole, to perform their payment or guaranty obligations under any Loan Document; or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against any Loan Party of any Loan Document to which it is a party.
“Maturity Date” means the later of (a) June 7, 2024 and (b) if maturity is extended pursuant to Section 2.19, such extended maturity date as determined pursuant to Section 2.19.
“Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.
“Multiemployer Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which the Company or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions.
“New Vehicle” means a vehicle which has never been owned except by a manufacturer, distributor or dealer and has never been registered.
“New Vehicle Swing Line” means the revolving credit facility made available by the New Vehicle Swing Line Lender pursuant to Section 2.05.
“New Vehicle Swing Line Borrowing” means a borrowing of a New Vehicle Swing Line Loan pursuant to Section 2.05.
“New Vehicle Swing Line Lender” means Bank of America in its capacity as provider of New Vehicle Swing Line Loans, or any successor new vehicle swing line lender hereunder.
“New Vehicle Swing Line Loan” has the meaning specified in Section 2.05(a).
“New Vehicle Swing Line Loan Notice” means a notice of a New Vehicle Swing Line Borrowing pursuant to Section 2.05(c), which shall be substantially in the form of Exhibit C or such other form as approved by the Administrative Agent (including any form on an electronic platform or electronic transmission system as shall be approved by the Administrative Agent pursuant), appropriately completed and signed by a Responsible Officer of a Borrower.
“New Vehicle Swing Line Sublimit” means an amount equal to the lesser of (a) $10,000,000 and (b) the Aggregate Commitments.  The New Vehicle Swing Line Sublimit is part of, and not in addition to, the Aggregate Commitments.
“Non-Consenting Lender” means any Lender that does not approve (a) any amendment, waiver or consent that (i) requires the approval of all Lenders or all affected Lenders in accordance with the terms of Section 10.01 and (ii) has been approved by the Required Lenders or (b) any designation of a foreign Subsidiary as a Designated Borrower pursuant to Section 2.15, which designation has been approved by the Required Lenders.
“Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at such time. 
“Non-Extending Lender” has the meaning specified in Section 2.19(b).

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“Non-Extension Notice Date” has the meaning specified in Section 2.03(b)(iii).
“Note” means a promissory note made by a Borrower in favor of a Lender evidencing Loans made by such Lender to such Borrower, substantially in the form of Exhibit D.
“Notice Date” has the meaning specified in Section 2.19(b).
“Notice of Loan Prepayment” means a notice of prepayment with respect to a Loan, which shall be substantially in the form of Exhibit K or such other form as may be approved by the Administrative Agent (including any form on an electronic platform or electronic transmission system as shall be approved by the Administrative Agent), appropriately completed and signed by a Responsible Officer of a Borrower.
“Obligations” means all advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan or Letter of Credit, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Loan Party of any proceeding under any Debtor Relief Laws naming such Loan Party as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.
“OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury.
“Organization Documents” means, (a) with respect to any corporation, the certificate or articles of incorporation and bylaws of such corporation (or equivalent or comparable constitutive documents with respect to any non‐U.S. jurisdiction); (b) with respect to any limited liability company, the certificate or articles of formation or organization and operating agreement of such company; and (c) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with the formation or organization of such partnership, joint venture, trust or other entity with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity.
“Other Special Purpose Finance Entities” means those special purpose entities (other than Subsidiaries) formed pursuant to Permitted Sale Facilities to receive and hold Permitted Retail Installment Contracts.
“Other Taxes” means all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies arising from any payment made hereunder or under any other Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any other Loan Document.
“Outstanding Amount” means (i) with respect to Committed Loans, Swing Line Loans and New Vehicle Swing Line Loans, on any date, the aggregate outstanding principal amount thereof after giving effect to any borrowings and prepayments or repayments of Committed Loans, Swing Line Loans and New Vehicle Swing Line Loans, as the case may be, occurring on such date and (ii) with respect to any L/C Obligations on any date, the amount of such L/C Obligations on such date after giving effect to any L/C Credit Extension occurring on such date and any other changes in the aggregate amount of the L/C Obligations as of such date, including as a result of any reimbursements by the Revolving Borrower of Unreimbursed Amounts.

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“Participant” has the meaning specified in Section 10.06(d).
“Participant Register” has the meaning specified in Section 10.06(d).
“Patriot Act” has the meaning specified in Section 10.18.
“Payment Commitment” means a written agreement entered into between the New Vehicle Swing Line Lender and a vehicle manufacturer or distributor (and if required pursuant to the terms of the Payment Commitment, the applicable Borrower), providing for advances of the proceeds of New Vehicle Swing Line Loans directly by the New Vehicle Swing Line Lender to such manufacturer or distributor in payment for the purchase of a New Vehicle by the applicable Borrower.
“PBGC” means the Pension Benefit Guaranty Corporation.
“Pension Plan” means any “employee pension benefit plan” (as such term is defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or maintained by the Company or any ERISA Affiliate or to which the Company or any ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding five plan years.
“Permitted Retail Installment Contract” means a vehicle retail installment contract sold, transferred or assigned by the Company or a Subsidiary to the applicable purchaser, transferee or assignee pursuant to a Permitted Sale Facility.
“Permitted Sale Facilities” means, collectively, (i) each ABCP Facility, (ii) each Term Securitization Program, (iii) each arrangement under which Third‐Party Contracts are sold for fair market value to financial institutions or other lenders and (iv) each other arrangement which provides for the sale, transfer or assignment of retail installment contracts originated by the Company or any other Loan Party to a third party purchaser, transferee or assignee and in a transaction that constitutes a “true sale” for bankruptcy purposes for a price equal to not less than the fair market value of such retail installment contracts and on such other terms and conditions as shall be reasonable and customary for such transactions; provided, however, that, in the case of any arrangement described in clause (iii) or (iv) above, except as may be required by credit risk retention rules under applicable Law, (x) such arrangement does not create Indebtedness (except for income tax or GAAP purposes) of the Company or any Subsidiary (other than an Excluded Special Purpose Finance Subsidiary), (y) such arrangement does not include (1) provisions under which the Company or any Subsidiary (other than an Excluded Special Purpose Finance Subsidiary) directly assumes the credit risk associated with such retail installment contracts, (2) direct or indirect recourse provisions under which, based on the historical performance of such retail installment contracts, the Company or any Subsidiary (other than an Excluded Special Purpose Finance Subsidiary) could reasonably be expected to suffer economic loss, or (3) any recourse provisions which are not customary for transactions of such type and (z) such arrangement does not result in the creation of any Lien on the assets of the Company or any Subsidiary (other than Excluded Special Purpose Finance Subsidiaries), other than Liens on such retail installment contracts and the Related Property.
“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.
“Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA) established by the Company or, with respect to any such plan that is subject to Section 412 of the Code or Title IV of ERISA, any ERISA Affiliate.

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“Platform” has the meaning specified in Section 6.02.
“Pro Forma Basis” “Pro Forma Compliance” and “Pro Forma Effect” means, in respect of a Specified Transaction, that such Specified Transaction and the following transactions in connection therewith (to the extent applicable) shall be deemed to have occurred as of the first day of the applicable period of measurement for the applicable covenant or requirement:  (a)(i) with respect to any Disposition of all or substantially all Equity Interests in any Subsidiary or any division or product line of the Company or any Subsidiary, income statement items (whether positive or negative) attributable to the property or Person, if any, subject to such Disposition shall be excluded and (ii) with respect to any Acquisition, income statement items (whether positive or negative) attributable to the Person or property acquired shall be included to the extent relating to any period applicable in such calculations to the extent such items are not otherwise included in such income statement items for the Company and its Subsidiaries in accordance with GAAP or in accordance with any defined terms set forth in Section 1.01, (b) any retirement of Indebtedness and (c) any incurrence or assumption of Indebtedness by the Company or any Subsidiary (and if such Indebtedness has a floating or formula rate, such Indebtedness shall have an implied rate of interest for the applicable period for purposes of this definition determined by utilizing the rate which is or would be in effect with respect to such Indebtedness as at the relevant date of determination); provided that (A) Pro Forma Basis, Pro Forma Compliance and Pro Forma Effect in respect of any Specified Transaction shall be calculated in a reasonable and factually supportable manner and certified by a Responsible Officer of the Company and (B) any such calculation shall be subject to the applicable limitations set forth in the definition of Consolidated EBITDA.
“PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.
“Public Lender” has the meaning specified in Section 6.02.
“Register” has the meaning specified in Section 10.06(c).
“Related Agreements” has the meaning specified in Section 2.15(d).
“Related Indemnified Party” means, with respect to any Indemnitee, (1) any Controlling or Controlled Affiliate of such Indemnitee, (2) the respective directors, officers, managers or employees of such Indemnitee or any of its Controlling or Controlled Affiliates and (3) the respective agents, advisors and representatives of such Indemnitee or any of its Controlling or Controlled Affiliates, in the case of this clause (3), acting at the instructions of such Indemnitee; provided, that each reference to a Controlled or Controlling Affiliate in this sentence pertains to a Controlled or Controlling Affiliate involved, directly or indirectly, in the negotiation, syndication or administration of the credit facilities provided for herein.
“Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person’s Affiliates.
“Related Property” means, with respect to any retail installment contract, (i) the Lien created by such contract in the vehicle purchased under such contract, (ii) all other Liens, if any, (other than Liens on assets of the Company or any Subsidiary) to secure payment of such contract, (iii) all guaranties, insurance contracts and other agreements or arrangements of whatever character from time to time supporting or securing payment of such contract, (iv) all documents evidencing such contract or the Liens, guaranties, agreements or arrangements described in clauses (i) through (iii) above, (v) all present and future claims, demands, causes of action and choses in action in respect of the foregoing and (vi) all proceeds of the foregoing.

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“Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30 day notice period has been waived.
“Request for Credit Extension” means (a) with respect to a Borrowing, conversion or continuation of Committed Loans, a Committed Loan Notice, (b) with respect to an L/C Credit Extension, a Letter of Credit Application, (c) with respect to a Swing Line Loan at any time an Autoborrow Agreement is not in effect, a Swing Line Loan Notice, and (d) with respect to a New Vehicle Swing Line Loan, a New Vehicle Swing Line Loan Notice or a request from a manufacturer or distributor for New Vehicle Swing Line Loans pursuant to a Payment Commitment.
“Required Lenders” means, as of any date of determination, Lenders having more than 50% of the Aggregate Commitments or, if the commitment of each Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have been terminated pursuant to Section 8.02, Lenders holding in the aggregate more than 50% of the Total Outstandings (with the aggregate amount of each Lender’s risk participation and funded participation in L/C Obligations, Swing Line Loans and New Vehicle Swing Line Loans being deemed “held” by such Lender for purposes of this definition); provided that (i) the Commitment of, and the portion of the Total Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders, (ii) in the event that at the time of such determination any Bilateral Swing Line Loans are outstanding and any Default shall have occurred and be continuing, each of (x) the Aggregate Commitments or Total Outstandings, as the case may be, and (y) the Commitment of or Total Outstandings held by the Swing Line Lender (as the case may be), shall be deemed for purposes of this determination to be increased in the amount of such outstanding Bilateral Swing Line Loans, and (iii) in the event that at the time of such determination any Bilateral New Vehicle Swing Line Loans are outstanding and any Default shall have occurred and be continuing, each of (x) the Aggregate Commitments or Total Outstandings, as the case may be, and (y) the Commitment of or Total Outstandings held by the New Vehicle Swing Line Lender (as the case may be), shall be deemed for purposes of this determination to be increased in the amount of such outstanding Bilateral New Vehicle Swing Line Loans.
“Responsible Officer” means the chief executive officer, the president, the chief financial officer, any executive vice president, any senior vice president, any vice president, the treasurer, the secretary or any assistant treasurer of a Loan Party and, solely for purposes of notices given pursuant to Article II, any other officer of the applicable Loan Party so designated by any of the foregoing officers in a notice to the Administrative Agent or any other officer or employee of the applicable Loan Party designated in or pursuant to an agreement between the applicable Loan Party and the Administrative Agent.  Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party.
“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any capital stock or other Equity Interest of the Company or any Subsidiary, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such capital stock or other Equity Interest, or on account of any return of capital to the Company’s stockholders, partners or members (or the equivalent Person thereof).
“Revolving Borrower” has the meaning specified in the introductory paragraph hereto.
“Sanctioned Person” means any Person that is (a) listed in any Sanctions-related list of designated Persons maintained by OFAC or the U.S. Department of State or that is otherwise the target of Sanctions, 

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(b) any Person located, organized or resident in a Designated Jurisdiction, or (c) any Person 50% or more owned or otherwise controlled by any such Person or Persons.
“Sanction(s)” means any economic, financial or trade sanction administered or enforced by the United States Government, including those administered by OFAC, the United Nations Security Council, the European Union, or other applicable sanctions authority recognized by the foregoing.
“S&P” means Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc. and any successor thereto.
“Scheduled Unavailability Date” has the meaning specified in Section 3.03(c).
“SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.
“Specified Subsidiaries” means, collectively, (a) CarMax Auto Superstores Services, Inc., a Virginia corporation, (b) CarMax Properties, LLC, a Virginia limited liability company, and (c) any of CarMax of Laurel, LLC, a Virginia limited liability company, and/or CarMax Auto Mall, LLC, a Virginia limited liability company; provided that, in the case of clause (c), all New Vehicle Swing Line Loans of such Designated Borrower, together with any accrued interest thereon, shall have been repaid in full.
“Specified Transaction” means (a) any Acquisition, (b) any Investment that results in a Person becoming a Subsidiary, (c) any Disposition that results in a Subsidiary ceasing to be a Subsidiary of the Company, (d) any Disposition of a business unit, line of business or division of the Company or any Subsidiary, in each case whether by merger, consolidation, amalgamation or otherwise and (e) any other event that by the express terms of the Loan Documents requires Pro Forma Compliance with a test or covenant, calculation as to Pro Forma Effect with respect to a test or covenant or requires such test or covenant to be calculated on a Pro Forma Basis.
“Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability company or other business entity of which a majority of the shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person.  Unless otherwise specified, (a) all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Company and (b) all references herein to “Subsidiaries” in connection with financial statements or financial ratios (or the components thereof) shall refer to the Subsidiaries of the Company the accounts of which (i) are consolidated with those of the Company in its consolidated financial statements or (ii) would be consolidated with those of the Company in its consolidated financial statements if such statements were prepared in accordance with GAAP.
“Subsidiary Guarantors” means, collectively, all Subsidiaries executing a Subsidiary Guaranty Agreement on the Closing Date and all other Subsidiaries that enter into a Joinder Agreement.
“Subsidiary Guaranty Agreement” means the Subsidiary Guaranty Agreement made by the Subsidiary Guarantors in favor of the Administrative Agent and the Lenders, substantially in the form of Exhibit H.
“Swap Contracts” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, 

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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).
“Swing Line” means the revolving credit facility made available by the Swing Line Lender pursuant to Section 2.04.
“Swing Line Borrowing” means a borrowing of a Swing Line Loan pursuant to Section 2.04, including any Borrowing of such a Loan pursuant to an Autoborrow Agreement.
“Swing Line Lender” means Bank of America in its capacity as provider of Swing Line Loans, or any successor swing line lender hereunder.
“Swing Line Loan” has the meaning specified in Section 2.04(a).
“Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to Section 2.04(b), which shall be substantially in the form of Exhibit B or such other form as approved by the Administrative Agent (including any form on an electronic platform or electronic transmission system as shall be approved by the Administrative Agent pursuant), appropriately completed and signed by a Responsible Officer of a Borrower.
“Swing Line Sublimit” means an amount equal to the lesser of (a) $75,000,000 and (b) the Aggregate Commitments.  The Swing Line Sublimit is part of, and not in addition to, the Aggregate Commitments.  As of the Closing Date, the Swing Line Sublimit is set forth on Schedule 2.01A.
“Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a so‐called synthetic, off‐balance sheet or tax retention lease, or (b) an agreement for the use or possession of property creating obligations that do not appear on the balance sheet of such Person but which, upon the insolvency or bankruptcy of such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment).
“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

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“Term Loan Facility” means that certain term loan credit agreement entered into by the Company and the Revolving Borrower on November 25, 2014, providing for a term loan in the principal amount of $300,000,000, as amended, restated, amended and restated, refinanced, replaced, supplemented or otherwise modified from time to time.
“Term Securitization Programs” means (a) the public securitization programs identified on Schedule 1.01 and (b) any other securitization program under which a pool of retail installment contracts originated by the Company or any other Loan Party is sold, transferred or assigned to one or more special purpose entities in a transaction that constitutes a “true sale” for bankruptcy purposes (as evidenced by an opinion prepared and delivered in a manner consistent with market standards by reputable independent counsel experienced in securitization transactions) for a price equal to not less than the fair market value of such retail installment contracts and on such other terms and conditions as shall be reasonable and customary for such transactions; provided, however, that, except as may be required by credit risk retention rules under applicable Law, (x) such arrangement does not include (i) provisions under which the Company or any Subsidiary (other than an Excluded Special Purpose Finance Subsidiary) directly assumes the credit risk associated with such retail installment contracts, (ii) direct or indirect recourse provisions under which, based on the historical performance of such retail installment contracts, the Company or any Subsidiary (other than an Excluded Special Purpose Finance Subsidiary) could reasonably be expected to suffer economic loss, or (iii) any recourse provisions which are not customary for transactions of such type and (y) such arrangement does not result in the creation of any Lien on the assets of the Company or any Subsidiary (other than Excluded Special Purpose Finance Subsidiaries), other than Liens on such retail installment contracts and the Related Property.
“Third‐Party Contract” means a retail installment contract originated by the Company or any other Loan Party, which contract is assigned to a financial institution or other lender that is not an Affiliate of the Company, promptly after origination.
“Threshold Amount” means $125,000,000.
“Total Outstandings” means the aggregate Outstanding Amount of all Loans and all L/C Obligations.
“Type” means, with respect to a Committed Loan, Swing Line Loan or New Vehicle Swing Line Loan, its character as a Base Rate Loan or a Eurodollar Rate Loan.
“United States” and “U.S.” mean the United States of America.
“Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i).
“U.S. Person” means any Person that is a “United States person” as defined in Section 7701(a)(30) of the Code.
“wholly-owned” means, with respect to a Subsidiary of a Person, a Subsidiary of such Person all of the outstanding Equity Interests of which (other than (x) director’s qualifying shares and (y) shares issued to foreign nationals to the extent required by applicable Law) are owned by such Person and/or by one or more wholly-owned Subsidiaries of such Person.
“Within Line Limitation” means, with respect to any Borrower, any dealer location and any specific vehicle manufacturer or distributor, limitations on the amount of New Vehicle Swing Line Loans that may be advanced to such manufacturer or distributor with respect to New Vehicles purchased or to be purchased 

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by such Borrower for such dealer location, which limitations are agreed to from time to time by the Administrative Agent and such distributor or manufacturer.
“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.
1.02    Other Interpretive Provisions.  With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document:
(a)    The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The word “will” shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document (including any Organization Document) shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (iii) the words “herein,” “hereof” and “hereunder,” and words of similar import when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and not to any particular provision thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, the Loan Document in which such references appear, (v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending, replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (vi) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.
(b)    In the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including;” the words “to” and “until” each mean “to but excluding;” and the word “through” means “to and including.”
(c)    Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document.
(d)    Any reference herein to a merger, transfer, consolidation, amalgamation, consolidation, assignment, sale, disposition or transfer, or similar term, shall be deemed to apply to a division of or by a limited liability company, or an allocation of assets to a series of a limited liability company (or the unwinding of such a division or allocation), as if it were a merger, transfer, consolidation, amalgamation, consolidation, assignment, sale, disposition or transfer, or similar term, as applicable, to, of, or with a separate Person. Any division of a limited liability company shall constitute a separate Person hereunder (and each division of any limited liability company that is a Subsidiary, joint venture or any other like term shall also constitute such a Person or entity).

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1.03    Accounting Terms.
(a)    Generally.  All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to time, applied in a manner consistent with that used in preparing the Audited Financial Statements, except as otherwise specifically prescribed herein.
(b)    Changes in GAAP or Accounting Practices; Lease Accounting.  If at any time any change in GAAP or any change in any accounting practice or financial reporting practice of any Loan Party made in accordance with GAAP would affect the computation of any financial ratio, basket or requirement set forth in any Loan Document, and either the Company or the Required Lenders shall so request, the Administrative Agent, the Lenders and the Company shall negotiate in good faith to amend such ratio, basket or requirement to preserve the original intent thereof in light of such change in GAAP or such change in accounting practice or financial reporting practice (subject to the approval of the Required Lenders not to be unreasonably withheld, conditioned or delayed); provided that, until so amended, (i) such ratio, basket or requirement shall continue to be computed in accordance with GAAP or such accounting practice or financial reporting practice prior to such change therein and (ii) the Company shall provide to the Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio, basket or requirement made before and after giving effect to such change in GAAP or such change in accounting practice or financial reporting practice.  Notwithstanding the forgoing or any provision herein to the contrary, any lease that is characterized as an operating lease in accordance with GAAP after the Company’s adoption of ASC 842 (regardless of the date on which such lease has been entered into) shall not be a capital or finance lease, and any such lease shall be, for all purposes of this Agreement, treated as though it were reflected on the Company’s consolidated financial statements in the same manner as an operating lease would have been reflected prior to the Company’s adoption of ASC 842.
1.04    Rounding.  Any financial ratios required to be maintained by the Company pursuant to this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding‐up if there is no nearest number).
1.05    Times of Day; Rates.  Unless otherwise specified, all references herein to times of day shall be references to Eastern time (daylight or standard, as applicable).  The Administrative Agent does not warrant, nor accept responsibility, nor shall the Administrative Agent have any liability with respect to the administration, submission or any other matter related to the rates in the definition of “Eurodollar Rate” or with respect to any rate that is an alternative or replacement for, or successor to, any such rate (including, without limitation, any LIBOR Successor Rate) or the effect of any of the foregoing, or of any LIBOR Successor Rate Conforming Changes.
1.06    Letter of Credit Amounts.  Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be deemed to be the stated amount of such Letter of Credit in effect at such time; provided, however, that with respect to any Letter of Credit that, by its terms or the terms of any Issuer Document related thereto, provides for one or more automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum stated amount of such Letter of Credit 

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after giving effect to all such increases, whether or not such maximum stated amount is in effect at such time.
1.07    Timing of Performance.  When the performance of any covenant, duty or obligation (other than a payment obligation arising under the Loan Documents) is required to be performed on a day which is not a Business Day, the date of such performance shall extend to the immediately succeeding Business Day.
1.08    Pro Forma Calculation.  Notwithstanding anything to the contrary herein, the Consolidated Interest and Rent Coverage Ratio, the Consolidated Net Leverage Ratio and the Consolidated Leverage Ratio shall be calculated on a Pro Forma Basis with respect to each Specified Transaction occurring during the applicable four quarter period to which such calculation relates, and/or subsequent to the end of such four-quarter period but not later than the date of such calculation; provided that, notwithstanding the foregoing, when calculating the Consolidated Interest and Rent Coverage Ratio, the Consolidated Net Leverage Ratio or the Consolidated Leverage Ratio, as applicable, for purposes of (i) the Applicable Rate and (ii) determining actual compliance (and not Pro Forma Compliance or compliance on a Pro Forma Basis) with the financial covenants set forth in Section 7.07, any Specified Transaction and any related adjustment contemplated in the definition of Pro Forma Basis (and corresponding provisions of the definition of Consolidated EBITDA) that occurred subsequent to the end of the applicable four quarter period shall not be given Pro Forma Effect.  With respect to any provision of this Agreement (other than the provisions of Section 7.07) that requires compliance or Pro Forma Compliance with the financial covenants set forth in Section 7.07, such compliance or Pro Forma Compliance shall be required regardless of whether the Company is otherwise required to comply with such covenant under the terms of Section 7.07 at such time.

ARTICLE II     
 
THE COMMITMENTS AND CREDIT EXTENSIONS
2.01    Committed Loans.  Subject to the terms and conditions set forth herein, each Lender severally agrees to make loans (each such loan, a “Committed Loan”) to the Revolving Borrower, from time to time, on any Business Day during the Availability Period, in an aggregate amount not to exceed at any time outstanding the amount of such Lender’s Commitment; provided, however, that after giving effect to any Committed Borrowing, (i) the Total Outstandings shall not exceed the Aggregate Commitments, and (ii) the Outstanding Amount of the Committed Loans of any Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans, plus such Lender’s Applicable Percentage of the Outstanding Amount of all New Vehicle Swing Line Loans shall not, in the aggregate, exceed such Lender’s Commitment.  Within the limits of each Lender’s Commitment, and subject to the other terms and conditions hereof, the Revolving Borrower may borrow under this Section 2.01, prepay under Section 2.06, and reborrow under this Section 2.01.  Committed Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein.
2.02    Borrowings and Conversions of Committed Loans.
(a)    Each Committed Borrowing and each conversion of Committed Loans from one Type to the other shall be made upon the Revolving Borrower’s irrevocable notice to the Administrative Agent, which may be given by: (A) telephone or (B) a Committed Loan Notice; provided that any telephonic notice must be confirmed immediately by delivery to the Administrative 

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Agent of a Committed Loan Notice.  Each such Committed Loan Notice must be received by the Administrative Agent not later than (i) 1:00 p.m. one Business Day prior to the requested date of any Borrowing of Eurodollar Rate Loans, or of any conversion of Eurodollar Rate Loans to Base Rate Committed Loans or of any conversion of Base Rate Committed Loans to Eurodollar Rate Loans, and (ii) 11:00 a.m. on the requested date of any Borrowing of Base Rate Committed Loans.  Except as provided in Sections 2.03(c), 2.04(c), and 2.05(e), each Borrowing of or conversion of Loans shall be in a principal amount of $1,000,000 or a whole multiple of $100,000 in excess thereof.  Each Committed Loan Notice shall specify (i) whether the Revolving Borrower is requesting a Committed Borrowing, or a conversion of Committed Loans from one Type to the other, (ii) the requested date of the Borrowing or conversion, as the case may be (which shall be a Business Day), (iii) the principal amount of Committed Loans to be borrowed or converted, and (iv) the Type of Committed Loans to be borrowed or to which existing Committed Loans are to be converted.  If the Revolving Borrower fails to provide a timely Committed Loan Notice requesting a conversion of Eurodollar Rate Loans to Base Rate Loans, such Loans shall continue as Eurodollar Rate Loans.  If the Revolving Borrower fails to specify a Type of Committed Loan in a Committed Loan Notice, then the applicable Committed Loans shall be made as Eurodollar Rate Loans.
(b)    Following receipt of a Committed Loan Notice, the Administrative Agent shall promptly notify each Lender of the amount of its Applicable Percentage of the applicable Committed Loans.  Each Lender shall make the amount of its Committed Loan available to the Administrative Agent in immediately available funds at the Administrative Agent’s Office not later than 1:00 p.m., on the Business Day specified in the applicable Committed Loan Notice.  Upon satisfaction of the applicable conditions set forth in Section 4.02 (and, if such Borrowing is the initial Credit Extension, Section 4.01), the Administrative Agent shall make all funds so received available to the Revolving Borrower in like funds as received by the Administrative Agent either by (i) crediting the account of the Revolving Borrower on the books of Bank of America with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to (and reasonably acceptable to) the Administrative Agent by the Revolving Borrower; provided, however, that if, on the date the Committed Loan Notice with respect to such Borrowing is given by the Revolving Borrower, there are L/C Borrowings outstanding, then the proceeds of such Borrowing, first, shall be applied to the payment in full of any such L/C Borrowings, and, second, shall be made available to the Revolving Borrower as provided above.
(c)    The Administrative Agent shall promptly notify the Revolving Borrower and the Lenders of the interest rate applicable to any Eurodollar Rate Loans upon determination of such interest rate.  At any time that Base Rate Loans are outstanding, the Administrative Agent shall notify the Revolving Borrower and the Lenders of any change in Bank of America’s prime rate used in determining the Base Rate promptly following the public announcement of such change.
2.03    Letters of Credit.
(a)    The Letter of Credit Commitment.
(i)    Subject to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in reliance upon the agreements of the Lenders set forth in this Section 2.03, (1) from time to time on any Business Day during the period from the Closing Date until the Letter of Credit Expiration Date, to issue Letters of Credit for the account of the Company or its Subsidiaries, and to amend or extend Letters of Credit previously issued by it, in accordance with subsection (b) below, and (2) to honor drawings under the Letters of Credit; 

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and (B) the Lenders severally agree to participate in Letters of Credit issued for the account of the Revolving Borrower or its Subsidiaries and any drawings thereunder; provided that after giving effect to any L/C Credit Extension with respect to any Letter of Credit, (x) the Total Outstandings shall not exceed the Aggregate Commitments, (y) the aggregate Outstanding Amount of the Committed Loans of any Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans, plus such Lender’s Applicable Percentage of the Outstanding Amount of all New Vehicle Swing Line Loans shall not exceed such Lender’s Commitment, and (z) the Outstanding Amount of the L/C Obligations shall not exceed the Letter of Credit Sublimit.  Each request by the Revolving Borrower for the issuance or amendment of a Letter of Credit shall be deemed to be a representation by the Revolving Borrower that the L/C Credit Extension so requested complies with the conditions set forth in the proviso to the preceding sentence.  Within the foregoing limits, and subject to the terms and conditions hereof, the Revolving Borrower’s ability to obtain Letters of Credit shall be fully revolving, and accordingly the Revolving Borrower may, during the foregoing period, obtain Letters of Credit to replace Letters of Credit that have expired or that have been drawn upon and reimbursed.
(ii)    The L/C Issuer shall not issue any Letter of Credit, if:
(A)    except as provided in Section 2.03(b)(iii), the expiry date of such requested Letter of Credit would occur more than twelve months after the date of issuance or last extension, unless the Required Lenders have approved such expiry date; 
(B)    the expiry date of such requested Letter of Credit would occur after the Letter of Credit Expiration Date, unless (i) the Revolving Borrower has Cash Collateralized the Outstanding Amount of L/C Obligations related to such Letter of Credit, or (ii) all the Lenders have approved such expiry date; or
(C)    the aggregate amount of the outstanding Letters of Credit issued by the L/C Issuer would exceed its L/C Commitment.
(iii)    The L/C Issuer shall not be under any obligation to issue, amend or increase any Letter of Credit if:
(A)    any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the L/C Issuer from issuing such Letter of Credit, or any Law applicable to the L/C Issuer or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over the L/C Issuer shall prohibit, or request that the L/C Issuer refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon the L/C Issuer with respect to such Letter of Credit any restriction, reserve or capital requirement (for which the L/C Issuer is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon the L/C Issuer any unreimbursed loss, cost or expense which was not applicable on the Closing Date and which the L/C Issuer in good faith deems material to it;
(B)    the issuance of such Letter of Credit would violate one or more policies of the L/C Issuer applicable to letters of credit generally;

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(C)    except as otherwise agreed by the Administrative Agent and the L/C Issuer, such Letter of Credit is in an initial stated amount of less than $500,000;
(D)    such Letter of Credit is to be denominated in a currency other than Dollars;
(E)    such Letter of Credit contains any provisions for automatic reinstatement of the stated amount after any drawing thereunder; or
(F)    any Lender is at that time a Defaulting Lender, if after giving effect to Section 2.18(a)(iv), any Fronting Exposure remains outstanding, unless the L/C Issuer has entered into arrangements, including the delivery of Cash Collateral, satisfactory to the L/C Issuer (in its reasonable discretion) with the Revolving Borrower or such Defaulting Lender to eliminate the L/C Issuer’s Fronting Exposure with respect to the Defaulting Lender arising from either the Letter of Credit then proposed to be issued or that Letter of Credit and all other L/C Obligations as to which the L/C Issuer has Fronting Exposure, as it may elect in its sole discretion.
(iv)    The L/C Issuer shall not amend any Letter of Credit if the L/C Issuer would not be permitted at such time to issue such Letter of Credit in its amended form under the terms hereof.
(v)    The L/C Issuer shall be under no obligation to amend any Letter of Credit if (A) the L/C Issuer would have no obligation at such time to issue such Letter of Credit in its amended form under the terms hereof, or (B) the beneficiary of such Letter of Credit does not accept the proposed amendment to such Letter of Credit.
(vi)    The L/C Issuer shall act on behalf of the Lenders with respect to any Letters of Credit issued by it and the documents associated therewith, and the L/C Issuer shall have all of the benefits and immunities (A) provided to the Administrative Agent in Article IX with respect to any acts taken or omissions suffered by the L/C Issuer in connection with Letters of Credit issued by it or proposed to be issued by it and the Issuer Documents pertaining to such Letters of Credit as fully as if the term “Administrative Agent” as used in Article IX included the L/C Issuer with respect to such acts or omissions, and (B) as additionally provided herein with respect to the L/C Issuer.
(b)    Procedures for Issuance and Amendment of Letters of Credit; Auto‐Extension Letters of Credit.
(i)    Each Letter of Credit shall be issued or amended, as the case may be, upon the request of the Revolving Borrower delivered to the L/C Issuer (with a copy to the Administrative Agent) in the form of a Letter of Credit Application, appropriately completed and signed by a Responsible Officer of the Revolving Borrower.  Such Letter of Credit Application may be sent by facsimile, by United States mail, by overnight courier, by electronic transmission using the system provided by the L/C Issuer, by personal delivery or by any other means acceptable to the L/C Issuer. Such Letter of Credit Application must be received by the L/C Issuer and the Administrative Agent not later than 2:00 p.m. at least three Business Days (or such later date and time as the Administrative Agent and the L/C Issuer may agree in a particular instance in their sole discretion) prior to the proposed issuance date or date of amendment, as the case may be.  In the case of a request for an initial issuance 

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of a Letter of Credit, such Letter of Credit Application shall specify in form and detail reasonably satisfactory to the L/C Issuer: (A) the proposed issuance date of the requested Letter of Credit (which shall be a Business Day); (B) the amount thereof; (C) the expiry date thereof; (D) the name and address of the beneficiary thereof; (E) the documents to be presented by such beneficiary in case of any drawing thereunder; (F) the full text of any certificate to be presented by such beneficiary in case of any drawing thereunder; (G) the purpose and nature of the requested Letter of Credit; and (H) such other matters as the L/C Issuer may reasonably require.  In the case of a request for an amendment of any outstanding Letter of Credit, such Letter of Credit Application shall specify in form and detail reasonably satisfactory to the L/C Issuer (A) the Letter of Credit to be amended; (B) the proposed date of amendment thereof (which shall be a Business Day); (C) the nature of the proposed amendment; and (D) such other matters as the L/C Issuer may reasonably require.  Additionally, the Revolving Borrower shall furnish to the L/C Issuer and the Administrative Agent such other documents and information pertaining to such requested Letter of Credit issuance or amendment, including any Issuer Documents, as the L/C Issuer or the Administrative Agent may reasonably require.
(ii)    Promptly after receipt of any Letter of Credit Application, the L/C Issuer will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has received a copy of such Letter of Credit Application from the Revolving Borrower and, if not, the L/C Issuer will provide the Administrative Agent with a copy thereof.  Unless the L/C Issuer has received written notice from any Lender, the Administrative Agent or any Loan Party, at least one Business Day prior to the requested date of issuance or amendment of the applicable Letter of Credit, that one or more applicable conditions contained in Article IV shall not then be satisfied, then, subject to the terms and conditions hereof, the L/C Issuer shall, on the requested date, issue a Letter of Credit for the account of the Revolving Borrower (or the applicable Subsidiary) or enter into the applicable amendment, as the case may be, in each case in accordance with the L/C Issuer’s usual and customary business practices.  Immediately upon the issuance of each Letter of Credit, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the L/C Issuer a risk participation in such Letter of Credit in an amount equal to the product of such Lender’s Applicable Percentage times the amount of such Letter of Credit.
(iii)    If the Revolving Borrower so requests in any applicable Letter of Credit Application, the L/C Issuer may, in its sole and absolute discretion, agree to issue a Letter of Credit that has automatic extension provisions (each, an “Auto‐Extension Letter of Credit”); provided that any such Auto‐Extension Letter of Credit must permit the L/C Issuer to prevent any such extension at least once in each twelve‐month period (commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day (the “Non‐Extension Notice Date”) in each such twelve‐month period to be agreed upon at the time such Letter of Credit is issued.  Unless otherwise directed by the L/C Issuer, the Revolving Borrower shall not be required to make a specific request to the L/C Issuer for any such extension.  Once an Auto‐Extension Letter of Credit has been issued, the Lenders shall be deemed to have authorized (but may not require) the L/C Issuer to permit the extension of such Letter of Credit at any time to an expiry date not later than the Letter of Credit Expiration Date (or to an expiry date later than the Letter of Credit Expiration Date if, at the time of such extension, the Revolving Borrower has Cash Collateralized the Outstanding Amount of L/C Obligations related to such Letter of Credit 

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or the L/C Issuer and all the Lenders have approved such expiry date); provided, however, that the L/C Issuer shall not permit any such extension if (A) the L/C Issuer has determined that it would not be permitted, or would have no obligation, at such time to issue such Letter of Credit in its revised form (as extended) under the terms hereof (by reason of the provisions of clause (ii) or (iii) of Section 2.03(a) or otherwise), or (B) it has received notice (which may be by telephone or in writing) on or before the day that is five Business Days before the Non‐Extension Notice Date (1) from the Administrative Agent that the Required Lenders have elected not to permit such extension or (2) from the Administrative Agent, any Lender or the Revolving Borrower that one or more of the applicable conditions specified in Section 4.02 is not then satisfied, and in each such case directing the L/C Issuer not to permit such extension.
(iv)    Promptly after its delivery of any Letter of Credit or any amendment to a Letter of Credit to an advising bank with respect thereto or to the beneficiary thereof, or any cancelled Letter of Credit accepted by a Letter of Credit beneficiary prior to its expiration, the L/C Issuer will also deliver to the Revolving Borrower (if requested by the Revolving Borrower) and the Administrative Agent a true and complete copy of such Letter of Credit or amendment.  The L/C Issuer will also promptly deliver to the Revolving Borrower (if requested by the Revolving Borrower) and the Administrative Agent copies of any non-renewal notifications sent to beneficiaries of Auto-Extension Letters of Credit.
(c)    Drawings and Reimbursements; Funding of Participations.
(i)    Upon receipt from the beneficiary of any Letter of Credit of any notice of a drawing under such Letter of Credit, the L/C Issuer shall notify the Revolving Borrower and the Administrative Agent of (A) the receipt of such notice, (B) the date on which the L/C Issuer expects to make a payment under such Letter of Credit and (C) the amount of such drawing.  Not later than 2:00 p.m. on the date of any payment by the L/C Issuer under a Letter of Credit (each such date, an “Honor Date”), the Revolving Borrower shall reimburse the L/C Issuer through the Administrative Agent in an amount equal to the amount of such drawing.  If the Revolving Borrower fails to so reimburse the L/C Issuer by such time, the Administrative Agent shall promptly notify each Lender of the Honor Date, the amount of the unreimbursed drawing (the “Unreimbursed Amount”), and the amount of such Lender’s Applicable Percentage thereof.  In such event, the Revolving Borrower shall be deemed to have requested a Committed Borrowing of Base Rate Loans to be disbursed on the Honor Date in an amount equal to the Unreimbursed Amount, without regard to the minimum and multiples specified in Section 2.02 for the principal amount of Base Rate Loans, but subject to the amount of the unutilized portion of the Aggregate Commitments and the conditions set forth in Section 4.02 (other than the delivery of a Committed Loan Notice).  Any notice given by the L/C Issuer or the Administrative Agent pursuant to this Section 2.03(c)(i) may be given by telephone if immediately confirmed in writing; provided that the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice.
(ii)    Each Lender shall upon any notice pursuant to Section 2.03(c)(i) make funds available to the Administrative Agent (and the Administrative Agent may apply Cash Collateral provided for this purpose) for the account of the L/C Issuer, at the Administrative Agent’s Office in an amount equal to its Applicable Percentage of the Unreimbursed Amount not later than 1:00 p.m. on the Business Day specified in such notice by the Administrative 

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Agent (which shall be at least one Business Day after Administrative Agent delivers such notice), whereupon, subject to the provisions of Section 2.03(c)(iii), each Lender that so makes funds available shall be deemed to have made a Base Rate Committed Loan in such amount to the Revolving Borrower.  The Administrative Agent shall remit the funds so received to the L/C Issuer.
(iii)    With respect to any Unreimbursed Amount that is not fully refinanced by a Committed Borrowing of Base Rate Loans because the conditions set forth in Section 4.02 cannot be satisfied or for any other reason, the Revolving Borrower shall be deemed to have incurred from the L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due and payable on demand (together with interest) and shall bear interest at the Default Rate.  In such event, each Lender’s payment to the Administrative Agent for the account of the L/C Issuer pursuant to Section 2.03(c)(ii) shall be deemed payment in respect of its participation in such L/C Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its participation obligation under this Section 2.03.
(iv)    Until each Lender funds its Committed Loan or L/C Advance pursuant to this Section 2.03(c) to reimburse the L/C Issuer for any amount drawn under any Letter of Credit, interest in respect of such Lender’s Applicable Percentage of such amount shall be solely for the account of the L/C Issuer.
(v)    Each Lender’s obligation to make Committed Loans or L/C Advances to reimburse the L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this Section 2.03(c), shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right which such Lender may have against the L/C Issuer, the Company, the Revolving Borrower, or any other Person for any reason whatsoever; (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing; provided, however, that each Lender’s obligation to make Committed Loans pursuant to this Section 2.03(c) is subject to the conditions set forth in Section 4.02 (other than delivery by the Revolving Borrower of a Committed Loan Notice).  No such making of an L/C Advance shall relieve or otherwise impair the obligation of the Revolving Borrower to reimburse the L/C Issuer for the amount of any payment made by the L/C Issuer under any Letter of Credit, together with interest as provided herein.
(vi)    If any Lender fails to make available to the Administrative Agent for the account of the L/C Issuer any amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 2.03(c) by the time specified in Section 2.03(c)(ii), then, without limiting the other provisions of this Agreement, the L/C Issuer shall be entitled to recover from such Lender (acting through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the L/C Issuer at a rate per annum equal to the greater of the Federal Funds Rate and a rate determined by the L/C Issuer in accordance with banking industry rules on interbank compensation plus any reasonable administrative, processing or similar fees customarily charged by the L/C Issuer in connection with the foregoing.  If such Lender pays such amount (with interest and fees as aforesaid), the amount so paid shall constitute such Lender’s Committed Loan included in the relevant Committed Borrowing or L/C Advance in respect of the relevant L/C Borrowing, 

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as the case may be.  A certificate of the L/C Issuer submitted to any Lender (through the Administrative Agent) with respect to any amounts owing under this clause (vi) shall be conclusive absent manifest error.
(d)    Repayment of Participations.
(i)    At any time after the L/C Issuer has made a payment under any Letter of Credit and has received from any Lender such Lender’s L/C Advance in respect of such payment in accordance with Section 2.03(c), if the Administrative Agent receives for the account of the L/C Issuer any payment in respect of the related Unreimbursed Amount or interest thereon (whether directly from the Revolving Borrower or otherwise, including proceeds of Cash Collateral applied thereto by the Administrative Agent), the Administrative Agent will distribute to such Lender its Applicable Percentage thereof in the same funds as those received by the Administrative Agent.
(ii)    If any payment received by the Administrative Agent for the account of the L/C Issuer pursuant to Section 2.03(c)(i) is required to be returned under any of the circumstances described in Section 10.05 (including pursuant to any settlement entered into by the L/C Issuer in its discretion), each Lender shall pay to the Administrative Agent for the account of the L/C Issuer its Applicable Percentage thereof on demand of the Administrative Agent, plus interest thereon from the date one Business Day after such demand to the date such amount is returned by such Lender, at a rate per annum equal to the Federal Funds Rate from time to time in effect.  The obligations of the Lenders under this clause shall survive the payment in full of the Obligations and the termination of this Agreement.
(e)    Obligations Absolute.  The obligation of the Revolving Borrower to reimburse the L/C Issuer for each drawing under each Letter of Credit and to repay each L/C Borrowing shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement under all circumstances, including the following:
(i)    any lack of validity or enforceability of such Letter of Credit, this Agreement, or any other Loan Document;
(ii)    the existence of any claim, counterclaim, setoff, defense or other right that the Company, the Revolving Borrower, any Designated Borrower or any Subsidiary may have at any time against any beneficiary or any transferee of such Letter of Credit (or any Person for whom any such beneficiary or any such transferee may be acting), the L/C Issuer or any other Person, whether in connection with this Agreement, the transactions contemplated hereby or by such Letter of Credit or any agreement or instrument relating thereto, or any unrelated transaction;
(iii)    any draft, demand, certificate or other document presented under such Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or inaccurate in any respect; or any loss or delay in the transmission or otherwise of any document required in order to make a drawing under such Letter of Credit;

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(iv)    waiver by the L/C Issuer of any requirement that exists for the L/C Issuer’s protection and not the protection of the Borrowers or any waiver by the L/C Issuer which does not in fact materially prejudice the Borrowers;
(v)    honor of a demand for payment presented electronically even if such Letter of Credit requires that demand be in the form of a draft;
(vi)    any payment made by the L/C Issuer in respect of an otherwise complying item presented after the date specified as the expiration date of, or the date by which documents must be received under such Letter of Credit if presentation after such date is authorized by the UCC, the ISP or the UCP, as applicable;
(vii)    any payment by the L/C Issuer under such Letter of Credit against presentation of a draft or certificate that does not strictly comply with the terms of such Letter of Credit; or any payment made by the L/C Issuer under such Letter of Credit to any Person purporting to be a trustee in bankruptcy, debtor‐in‐possession, assignee for the benefit of creditors, liquidator, receiver or other representative of or successor to any beneficiary or any transferee of such Letter of Credit, including any arising in connection with any proceeding under any Debtor Relief Law; or
(viii)    any other circumstance or happening whatsoever, whether or not similar to any of the foregoing, including any other circumstance that might otherwise constitute a defense available to, or a discharge of, the Company, the Revolving Borrower, any Designated Borrower or any Subsidiary;
provided that the foregoing shall not excuse the L/C Issuer from liability to the Company or its Subsidiaries to the extent provided in the second proviso to Section 2.03(f).
The Revolving Borrower shall promptly examine a copy of each Letter of Credit and each amendment thereto that is delivered to it and, in the event of any claim of noncompliance with the Revolving Borrower’s instructions or other irregularity, the Revolving Borrower will immediately notify the L/C Issuer.  The Company, the Revolving Borrower and each Designated Borrower shall be conclusively deemed to have waived any such claim against the L/C Issuer and its correspondents unless such notice is given by the Revolving Borrower as aforesaid.
(f)    Role of L/C Issuer.  Each Lender and the Revolving Borrower agree that, in paying any drawing under a Letter of Credit, the L/C Issuer shall not have any responsibility to obtain any document (other than any sight draft, certificates and documents expressly required by the Letter of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the authority of the Person executing or delivering any such document.  None of the L/C Issuer, the Administrative Agent, any of their respective Related Parties nor any correspondent, participant or assignee of the L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in connection herewith at the request or with the approval of the Lenders or the Required Lenders, as applicable; (ii) any action taken or omitted in the absence of gross negligence or willful misconduct; or (iii) the due execution, effectiveness, validity or enforceability of any document or instrument related to any Letter of Credit or Issuer Document.  The Revolving Borrower hereby assumes all risks of the acts or omissions of any beneficiary or transferee with respect to its use of any Letter of Credit; provided, however, that this assumption is not intended to, and shall not, preclude the Revolving Borrower’s pursuing such rights and remedies as it may have against the beneficiary or transferee at law or under any other agreement.  None of the L/C Issuer, the Administrative Agent, any of their respective 

39

Related Parties nor any correspondent, participant or assignee of the L/C Issuer shall be liable or responsible for any of the matters described in clauses (i) through (viii) of Section 2.03(e); provided, however, that anything in such clauses to the contrary notwithstanding, the Revolving Borrower may have a claim against the L/C Issuer, and the L/C Issuer may be liable to the Revolving Borrower, to the extent, but only to the extent, of any direct, as opposed to consequential, special, punitive or exemplary, damages suffered by the Revolving Borrower which the Revolving Borrower proves were caused by the L/C Issuer’s willful misconduct or gross negligence or the L/C Issuer’s willful failure to pay under any Letter of Credit after the presentation to it by the beneficiary of a sight draft and certificate(s) strictly complying with the terms and conditions of a Letter of Credit.  In furtherance and not in limitation of the foregoing, the L/C Issuer may accept documents that appear on their face to be in order, without responsibility for further investigation, regardless of any notice or information to the contrary, and the L/C Issuer shall not be responsible for the validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason.  The L/C Issuer shall provide to the Administrative Agent a list of outstanding Letters of Credit (together with type, amounts, beneficiary, issue date, expiry date and non-renewal notice period(s) for any Auto-Extension Letters of Credit)) issued by it on a monthly basis.  The L/C Issuer may send a Letter of Credit or conduct any communication to or from the beneficiary via the Society for Worldwide Interbank Financial Telecommunication (“SWIFT”) message or overnight courier, or any other commercially reasonable means of communicating with a beneficiary.
(g)    Applicability of ISP.  Unless otherwise expressly agreed by the L/C Issuer and the Revolving Borrower when a Letter of Credit is issued, the rules of the ISP shall apply to each Letter of Credit.  Notwithstanding the foregoing, the L/C Issuer shall not be responsible to the Borrowers for, and the L/C Issuer’s rights and remedies against the Borrowers shall not be impaired by, any action or inaction of the L/C Issuer required or permitted under any Law, order, or practice that is required or permitted to be applied to any Letter of Credit or this Agreement, including the Law or any order of a jurisdiction where the L/C Issuer or the beneficiary is located, the practice stated in the ISP or UCP, as applicable, or in the decisions, opinions, practice statements, or official commentary of the ICC Banking Commission, the Bankers Association for Finance and Trade - International Financial Services Association (BAFT-IFSA), or the Institute of International Banking Law & Practice, whether or not any Letter of Credit chooses such Law or practice.
(h)    Letter of Credit Fees.  The Revolving Borrower shall pay to the Administrative Agent for the account of each Lender in accordance, subject to Section 2.18, with its Applicable Percentage, a Letter of Credit fee (the “Letter of Credit Fee”) for each Letter of Credit equal to the Applicable Rate times the daily amount available to be drawn under such Letter of Credit.  For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06.  Letter of Credit Fees shall be (i) due and payable on the first Business Day after the end of each March, June, September and December, commencing with the first such date to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand and (ii) computed on a quarterly basis in arrears.  If there is any change in the Applicable Rate during any quarter, the daily amount available to be drawn under each Letter of Credit shall be computed and multiplied by the Applicable Rate separately for each period during such quarter that such Applicable Rate was in effect.  Notwithstanding anything to the contrary contained herein, upon the request of the Required Lenders, while any Event of Default exists, all Letter of Credit Fees shall accrue at the Default Rate.

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(i)    Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer.  The Revolving Borrower shall pay directly to the L/C Issuer, for its own account, a fronting fee with respect to each Letter of Credit, at the rate per annum specified in the applicable Fee Letter (or as otherwise agreed to in writing between the Revolving Borrower and the L/C Issuer), computed on the daily amount available to be drawn under such Letter of Credit during the year following the due date of such fronting fee, which daily amount shall be determined on the date of payment of such fee, provided that if the amount available to be drawn in any such year is increased or decreased during such year, the fronting fee previously paid with respect to such year shall be adjusted accordingly.  Such fronting fee shall be computed on an annual basis in advance and shall be due and payable (i) on the date of issuance of such Letter of Credit, (ii) annually thereafter, (iii) on the Letter of Credit Expiration Date and (iv) thereafter on demand.  For purposes of computing the daily amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with Section 1.06.  In addition, the Revolving Borrower shall pay directly to the L/C Issuer, for its own account, the customary issuance, presentation, amendment and other processing fees, and other standard costs and charges, of the L/C Issuer relating to letters of credit as from time to time in effect.  Such customary fees and standard costs and charges are due and payable on demand and are nonrefundable.
(j)    Conflict with Issuer Documents.  In the event of any conflict between the terms hereof and the terms of any Issuer Document, the terms hereof shall control.
(k)    Letters of Credit Issued for Subsidiaries.  Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary, the Revolving Borrower shall be obligated to reimburse the L/C Issuer hereunder for any and all drawings under such Letter of Credit.  The Revolving Borrower hereby acknowledges that the issuance of Letters of Credit for the account of Subsidiaries inures to the benefit of the Revolving Borrower, and that the Revolving Borrower’s business derives substantial benefits from the business of such Subsidiaries.
2.04    Swing Line Loans.
(a)    The Swing Line.  Subject to the terms and conditions set forth herein, the Swing Line Lender, in reliance upon the agreements of the other Lenders set forth in this Section 2.04, shall make loans (each such loan, a “Swing Line Loan”) to the Revolving Borrower from time to time on any Business Day during the Availability Period in an aggregate amount not to exceed at any time outstanding the amount of the Swing Line Sublimit, notwithstanding the fact that such Swing Line Loans, when aggregated with the Applicable Percentage of the Outstanding Amount of Committed Loans and L/C Obligations of the Lender acting as Swing Line Lender, may exceed the amount of such Lender’s Commitment; provided, however, that after giving effect to any Swing Line Loan, (i) the Total Outstandings shall not exceed the Aggregate Commitments, and (ii) the aggregate Outstanding Amount of the Committed Loans of any Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans, plus such Lender’s Applicable Percentage of the Outstanding Amount of all New Vehicle Swing Line Loans shall not exceed such Lender’s Commitment; provided, further, that, the Swing Line Lender shall not be under any obligation to make any Swing Line Loan if it shall determine (which determination shall be conclusive and binding absent manifest error) that it has, or by such Credit Extension may have, Fronting Exposure (after giving effect to Section 2.18(a)(iv)); and provided, further, that the Revolving Borrower shall not use the proceeds of any Swing Line Loan to refinance any outstanding Swing 

41

Line Loan.  Notwithstanding the foregoing sentence, however, in the event a Swing Line Loan is advanced and such Loan causes the Outstanding Amount of Swing Line Loans or other Obligations to exceed the Swing Line Sublimit or any limit set forth in Section 2.04(a), (1) the Swing Line Lender shall be the sole Lender with respect to the portion of any such Loan constituting a Bilateral Swing Line Loan and (2) no other Lender shall be deemed to have purchased or be required to fund a risk participation in such Bilateral Swing Line Loan.  Within the foregoing limits, and subject to the other terms and conditions hereof, the Revolving Borrower may borrow under this Section 2.04, prepay under Section 2.06, and reborrow under this Section 2.04.  Each Swing Line Loan may be a Base Rate Loan or a Eurodollar Rate Loan.  Except as otherwise provided above in this Section 2.04(a) with respect to Bilateral Swing Line Loans, immediately upon the making of a Swing Line Loan, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the Swing Line Lender a risk participation in such Swing Line Loan in an amount equal to the product of such Lender’s Applicable Percentage times the amount of such Swing Line Loan.
(b)    Borrowing Procedures.  At any time an Autoborrow Agreement is not in effect, each Swing Line Borrowing and each conversion of Swing Line Loans from one Type to the other shall be made upon the Revolving Borrower’s irrevocable notice to the Swing Line Lender and the Administrative Agent, which may be given by: (A) telephone or (B) a Swing Line Loan Notice; provided that any telephonic notice must be confirmed immediately by delivery to the Swingline Lender and the Administrative Agent of a Swing Line Loan Notice.  Each such Swing Line Loan Notice must be received by the Swing Line Lender and the Administrative Agent not later than 2:00 p.m. on the requested borrowing date or date of conversion of Eurodollar Rate Loans to Base Rate Loans or of any conversion of Base Rate Loans to Eurodollar Rate Loans, and shall specify (x) the amount to be borrowed, which shall be a minimum of $500,000, (y) the requested borrowing date, which shall be a Business Day, and (z) the Type of Swing Line Loan to be borrowed or to which existing Swing Line Loans are to be converted.  Promptly after receipt by the Swing Line Lender of any telephonic Swing Line Loan Notice, the Swing Line Lender will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has also received such Swing Line Loan Notice and, if not, the Swing Line Lender will notify the Administrative Agent (by telephone or in writing) of the contents thereof.  Unless the Swing Line Lender has received notice (by telephone or in writing) from the Administrative Agent (including at the request of any Lender) prior to 3:00 p.m. on the date of the proposed Swing Line Borrowing (A) directing the Swing Line Lender not to make such Swing Line Loan as a result of the limitations set forth in the first proviso to the first sentence of Section 2.04(a), or (B) that one or more of the applicable conditions specified in Article IV is not then satisfied, then, subject to the terms and conditions hereof, the Swing Line Lender will, not later than 3:00 p.m. on the borrowing date specified in such Swing Line Loan Notice, make the amount of its Swing Line Loan available to the Revolving Borrower at the Swing Line Lender’s office by crediting the account of the Revolving Borrower on the books of the Swing Line Lender in immediately available funds.  If the Revolving Borrower fails to provide a timely Swing Line Loan Notice requesting a conversion of Eurodollar Rate Loans to Base Rate Loans, such Loans shall continue as Eurodollar Rate Loans.  If the Revolving Borrower fails to specify a Type of Swing Line Loan in a Swing Line Loan Notice, then the applicable Swing Line Loan shall be made as a Eurodollar Rate Loan.
(c)    Refinancing of Swing Line Loans.
(i)    The Swing Line Lender at any time in its sole and absolute discretion may request, on behalf of the Revolving Borrower (which hereby irrevocably authorizes the 

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Swing Line Lender to so request on its behalf), that each Lender make a Eurodollar Rate Committed Loan in an amount equal to such Lender’s Applicable Percentage of the amount of Swing Line Loans then outstanding (including, subject to Section 2.04(c)(ii), any Bilateral Swing Line Loans).  Such request shall be made in writing (which written request shall be deemed to be a Committed Loan Notice for purposes hereof) and in accordance with the requirements of Section 2.02, without regard to the minimum and multiples specified therein for the principal amount of Eurodollar Rate Loans, but subject to the unutilized portion of the Aggregate Commitments and the conditions set forth in Section 4.02.  The Swing Line Lender shall furnish the Revolving Borrower with a copy of the applicable Committed Loan Notice promptly after delivering such notice to the Administrative Agent.  Each Lender shall make an amount equal to its Applicable Percentage of the amount specified in such Committed Loan Notice available to the Administrative Agent in immediately available funds (and the Administrative Agent may apply Cash Collateral available with respect to the applicable Swing Line Loans) for the account of the Swing Line Lender at the Administrative Agent’s Office not later than 1:00 p.m. on the day specified in such Committed Loan Notice (which shall be at least one Business Day after any voluntary Committed Loan Notice issued by the Swing Line Lender), whereupon, subject to Section 2.04(c)(ii), each Lender that so makes funds available shall be deemed to have made a Eurodollar Rate Committed Loan to the Revolving Borrower in such amount.  The Administrative Agent shall remit the funds so received to the Swing Line Lender.
(ii)    If for any reason any Swing Line Loan (other than a Bilateral Swing Line Loan) cannot be refinanced by such a Committed Borrowing in accordance with Section 2.04(c)(i), the request for Eurodollar Rate Committed Loans submitted by the Swing Line Lender as set forth herein shall be deemed to be a request by the Swing Line Lender that each of the Lenders fund its risk participation in the relevant Swing Line Loan and each Lender’s payment to the Administrative Agent for the account of the Swing Line Lender pursuant to Section 2.04(c)(i) shall be deemed payment in respect of such participation.
(iii)    If any Lender fails to make available to the Administrative Agent for the account of the Swing Line Lender any amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 2.04(c) by the time specified in Section 2.04(c)(i), the Swing Line Lender shall be entitled to recover from such Lender (acting through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the Swing Line Lender at a rate per annum equal to the greater of the Federal Funds Rate and a rate determined by the Swing Line Lender in accordance with banking industry rules on interbank compensation, plus any administrative, processing or similar fees customarily charged by the Swing Line Lender in connection with the foregoing.  If such Lender pays such amount (with interest and fees as aforesaid), the amount so paid shall constitute such Lender’s Committed Loan included in the relevant Borrowing or funded participation in the relevant Swing Line Loan, as the case may be.  A certificate of the Swing Line Lender submitted to any Lender (through the Administrative Agent) with respect to any amounts owing under this clause (iii) shall be conclusive absent manifest error.
(iv)    Each Lender’s obligation to make Committed Loans or to purchase and fund risk participations in Swing Line Loans pursuant to this Section 2.04(c) shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right which such Lender may have against the 

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Swing Line Lender, any Borrower, the Company or any other Person for any reason whatsoever, (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing; provided, however, that each Lender’s obligation to make Committed Loans pursuant to this Section 2.04(c) is subject to the conditions set forth in Section 4.02.  No such funding of risk participations shall relieve or otherwise impair the obligation of the Revolving Borrower to repay Swing Line Loans, together with interest as provided herein.
(d)    Repayment of Participations.
(i)    At any time after any Lender has purchased and funded a risk participation in a Swing Line Loan, if the Swing Line Lender receives any payment on account of such Swing Line Loan, the Swing Line Lender will distribute to such Lender its Applicable Percentage of such payment (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender’s risk participation was funded) in the same funds as those received by the Swing Line Lender.
(ii)    If any payment received by the Swing Line Lender in respect of principal or interest on any Swing Line Loan (other than a Bilateral Swing Line Loan) is required to be returned by the Swing Line Lender under any of the circumstances described in Section 10.05 (including pursuant to any settlement entered into by the Swing Line Lender in its discretion), then (x) the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made, (y) each Lender shall pay to the Swing Line Lender its Applicable Percentage thereof on demand of the Administrative Agent, plus interest thereon from the date of such demand to the date such amount is returned, at a rate per annum equal to the applicable Federal Funds Rate and (z) such Lender shall hold a participation in such reinstated obligation to the extent of such Lender’s payment.  The Administrative Agent will make such demand upon the request of the Swing Line Lender.  The obligations of the Lenders under this clause shall survive the payment in full of the Obligations and the termination of this Agreement.
(e)    Interest for Account of Swing Line Lender.  The Swing Line Lender shall be responsible for invoicing the Revolving Borrower for interest on the Swing Line Loans.  Until each Lender funds its Eurodollar Rate Committed Loan or risk participation pursuant to this Section 2.04 to refinance such Lender’s Applicable Percentage of any Swing Line Loan, interest in respect of such Applicable Percentage shall be solely for the account of the Swing Line Lender.  Interest in respect of any Bilateral Swing Line Loan shall be solely for the account of the Swing Line Lender.
(f)    Payments Directly to Swing Line Lender.  The Revolving Borrower shall make all payments of principal and interest in respect of the Swing Line Loans directly to the Swing Line Lender.
(g)    Autoborrow Arrangement.  In order to facilitate the borrowing of Swing Line Loans, the Revolving Borrower and the Swing Line Lender may mutually agree to, and are hereby authorized to, in each case with notice to the Administrative Agent, enter into an Autoborrow Agreement providing for the automatic advance by the Swing Line Lender of Swing Line Loans subject to the conditions set forth therein.  At any time an Autoborrow Agreement is in effect, Borrowings of Swing Line Loans under such Autoborrow Agreement shall be made in accordance with the terms of such Autoborrow Agreement.  For purposes of determining the Total Outstandings at any time during 

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which an Autoborrow Agreement is in effect, the Outstanding Amount of all Swing Line Loans shall be deemed to be the sum of the Outstanding Amount of Swing Line Loans at such time plus the maximum amount available to be borrowed under such Autoborrow Agreement at such time.  For purposes of any borrowing of Swing Line Loans pursuant to the Autoborrow Agreement, all references to Bank of America shall be deemed to be a reference to Bank of America, in its capacity as Swing Line Lender hereunder.
2.05    New Vehicle Swing Line Loans.
(a)    The New Vehicle Swing Line.  Subject to the terms and conditions set forth herein, the New Vehicle Swing Line Lender, in reliance upon the agreements of the other Lenders set forth in this Section 2.05, shall make loans (each such loan, a “New Vehicle Swing Line Loan”) to the Borrowers from time to time on any Business Day during the Availability Period in an aggregate amount not to exceed at any time outstanding the amount of the New Vehicle Swing Line Sublimit, notwithstanding the fact that such New Vehicle Swing Line Loans, when aggregated with the Applicable Percentage of the Outstanding Amount of Committed Loans, Swing Line Loans and L/C Obligations of the Lender acting as New Vehicle Swing Line Lender, may exceed the amount of such Lender’s Commitment; provided, however, that after giving effect to any New Vehicle Swing Line Loan, (i) the Total Outstandings shall not exceed the Aggregate Commitments, (ii) the aggregate Outstanding Amount of the Committed Loans of any Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans plus such Lender’s Applicable Percentage of the Outstanding Amount of all New Vehicle Swing Line Loans shall not exceed such Lender’s Commitment, and (iii) such Loan, together with the aggregate Outstanding Amount of all other New Vehicle Swing Line Loans made on or prior to such date shall not exceed any applicable Within Line Limitation; provided, further, that, the New Vehicle Swing Line Lender shall not be under any obligation to make any New Vehicle Swing Line Loan if it shall determine (which determination shall be conclusive and binding absent manifest error) that it has, or by such Credit Extension may have, Fronting Exposure (after giving effect to Section 2.18(a)(iv)); and provided, further, that the proceeds of New Vehicle Swing Line Loans shall only be used (x) to honor New Vehicle drafts presented by the applicable vehicle manufacturer or distributor to the Administrative Agent pursuant to Payment Commitments or (y) otherwise to pay the purchase price of New Vehicles.  Notwithstanding the foregoing sentence, however, in the case of a New Vehicle Swing Line Loan advanced to a manufacturer or distributor pursuant to Section 2.05(b), if the conditions precedent to such Loan (as set forth in the applicable Payment Commitment) have been met, the New Vehicle Swing Line Lender shall be required to make such New Vehicle Swing Line Loan, regardless of (x) whether such Loan would cause the Outstanding Amount of New Vehicle Swing Line Loans or other Obligations to exceed the New Vehicle Swing Line Sublimit or any limit set forth in Section 2.05(a) and (y) whether the conditions in Section 4.02 have otherwise been met; provided that, (1) the New Vehicle Swing Line Lender shall be the sole Lender with respect to the portion of any such Loan constituting a Bilateral New Vehicle Swing Line Loan and (2) no other Lender shall be deemed to have purchased or be required to fund a risk participation in such Bilateral New Vehicle Swing Line Loan.  Within the foregoing limits, and subject to the other terms and conditions hereof, each Borrower may borrow under this Section 2.05, prepay under Section 2.06, and reborrow under this Section 2.05.  Each New Vehicle Swing Line Loan may be a Base Rate Loan or a Eurodollar Rate Loan.  Except as otherwise provided above in this Section 2.05(a) with respect to Bilateral New Vehicle Swing Line Loans, immediately upon the making of a New Vehicle Swing Line Loan, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the New Vehicle Swing Line Lender a risk participation in such New Vehicle Swing Line Loan in 

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an amount equal to the product of such Lender’s Applicable Percentage times the amount of such New Vehicle Swing Line Loan.
(b)    Payment Commitment.  The New Vehicle Swing Line Lender is authorized to make New Vehicle Swing Line Loans for the account of the Borrowers directly to certain individual manufacturers or distributors that provide New Vehicles to the Borrowers, in accordance with the terms and conditions of the respective Payment Commitment agreed to between the New Vehicle Swing Line Lender and each such manufacturer or distributor.  Each New Vehicle Swing Line Loan made pursuant to a Payment Commitment shall be a Eurodollar Rate Loan at the time of such Borrowing, but may be converted to a Base Rate Loan in accordance with the terms of this Agreement.  The Borrowers shall remain jointly and severally liable to the New Vehicle Swing Line Lender for all payments made to a manufacturer or distributor pursuant to a Payment Commitment.
(c)    Borrowing Procedures.  Each New Vehicle Swing Line Borrowing and each conversion of New Vehicle Swing Line Loans from one Type to the other shall be made pursuant to a Payment Commitment or upon the Revolving Borrower’s irrevocable notice to the New Vehicle Swing Line Lender by (A) telephone or (B) a New Vehicle Swingline Loan Notice; provided that any telephonic notice must be confirmed immediately by delivery to the New Vehicle Swingline Lender and the Administrative Agent of a New Vehicle Swingline Loan Notice.  Each such notice from the Revolving Borrower must be received by the New Vehicle Swing Line Lender not later than 3:00 p.m. on the requested borrowing date or date of conversion of Eurodollar Rate Loans to Base Rate Loans or of any conversion of Base Rate Loans to Eurodollar Rate Loans, and shall specify (i) the amount to be borrowed, (ii) the requested borrowing date, which shall be a Business Day, (iii) the Type of New Vehicle Swing Line Loan to be borrowed or to which existing New Vehicle Swing Line Loans are to be converted, and (iv) the applicable Borrower.  The New Vehicle Swing Line Lender will, not later than 6:00 p.m. on the borrowing date specified in such New Vehicle Swing Line Loan Notice, make the amount of its New Vehicle Swing Line Loan available directly to the manufacturer or distributor pursuant to a Payment Commitment or to the applicable Borrower at the New Vehicle Swing Line Lender’s office by crediting the account of such Borrower on the books of the New Vehicle Swing Line Lender in immediately available funds.  If the Revolving Borrower fails to provide a timely New Vehicle Swing Line Loan Notice requesting a conversion of Eurodollar Rate Loans to Base Rate Loans, such Loans shall continue as Eurodollar Rate Loans.  If the Revolving Borrower fails to specify a Type of New Vehicle Swing Line Loan in a New Vehicle Swing Line Loan Notice or if a Payment Commitment fails to specify a Type of New Vehicle Swing Line Loan, then the applicable New Vehicle Swing Line Loan shall be made as a Eurodollar Rate Loan.
(d)    Authorization.  Each Borrower authorizes the New Vehicle Swing Line Lender to enter into, modify or terminate Payment Commitments (in each case, in the New Vehicle Swing Line Lender’s discretion) and to advise each manufacturer or distributor that provides New Vehicles to such Borrower of any change or termination which may occur with respect to the New Vehicle Swing Line.  The New Vehicle Swing Line Lender will promptly notify the Revolving Borrower of any such modification or termination.
(e)    Refinancing of New Vehicle Swing Line Loans.
(i)    The New Vehicle Swing Line Lender at any time in its sole and absolute discretion may request, on behalf of the applicable Borrower (which hereby irrevocably authorizes the New Vehicle Swing Line Lender to so request on its behalf), that each Lender 

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make a Eurodollar Rate Committed Loan in an amount equal to such Lender’s Applicable Percentage of the amount of New Vehicle Swing Line Loans then outstanding (including, subject to Section 2.05(e)(ii), any Bilateral New Vehicle Swing Line Loans).  Such request shall be made in writing (which written request shall be deemed to be a Committed Loan Notice for purposes hereof) and in accordance with the requirements of Section 2.02, without regard to the minimum and multiples specified therein for the principal amount of Eurodollar Rate Loans, but subject to the unutilized portion of the Aggregate Commitments and the conditions set forth in Section 4.02.  The New Vehicle Swing Line Lender shall furnish the Revolving Borrower with a copy of the applicable Committed Loan Notice promptly after delivering such notice to the Administrative Agent.  Each Lender shall make an amount equal to its Applicable Percentage of the amount specified in such Committed Loan Notice available to the Administrative Agent in immediately available funds (and the Administrative Agent may apply Cash Collateral available with respect to the applicable New Vehicle Swing Line Loans) for the account of the New Vehicle Swing Line Lender at the Administrative Agent’s Office not later than 1:00 p.m. on the day specified in such Committed Loan Notice (which shall be at least one Business Day after any voluntary Committed Loan Notice issued by the New Vehicle Swing Line Lender), whereupon, subject to Section 2.05(e)(ii), each Lender that so makes funds available shall be deemed to have made a Eurodollar Rate Committed Loan to the applicable Borrower in such amount.  The Administrative Agent shall remit the funds so received to the New Vehicle Swing Line Lender.
(ii)    If for any reason any New Vehicle Swing Line Loan (other than a Bilateral New Vehicle Swing Line Loan) cannot be refinanced by such a Committed Borrowing in accordance with Section 2.05(e)(i), the request for Eurodollar Rate Committed Loans submitted by the New Vehicle Swing Line Lender as set forth herein shall be deemed to be a request by the New Vehicle Swing Line Lender that each of the Lenders fund its risk participation in the relevant New Vehicle Swing Line Loan and each Lender’s payment to the Administrative Agent for the account of the New Vehicle Swing Line Lender pursuant to Section 2.05(e)(i) shall be deemed payment in respect of such participation.
(iii)    If any Lender fails to make available to the Administrative Agent for the account of the New Vehicle Swing Line Lender any amount required to be paid by such Lender pursuant to the foregoing provisions of this Section 2.05(e) by the time specified in Section 2.05(e)(i), the New Vehicle Swing Line Lender shall be entitled to recover from such Lender (acting through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is required to the date on which such payment is immediately available to the New Vehicle Swing Line Lender at a rate per annum equal to the greater of the Federal Funds Rate and a rate determined by the New Vehicle Swing Line Lender in accordance with banking industry rules on interbank compensation, plus any administrative, processing or similar fees customarily charged by the New Vehicle Swing Line Lender in connection with the foregoing.  If such Lender pays such amount (with interest and fees as aforesaid), the amount so paid shall constitute such Lender’s Committed Loan included in the relevant Borrowing or funded participation in the relevant New Vehicle Swing Line Loan, as the case may be.  A certificate of the New Vehicle Swing Line Lender submitted to any Lender (through the Administrative Agent) with respect to any amounts owing under this clause (iii) shall be conclusive absent manifest error.
(iv)    Each Lender’s obligation to make Committed Loans or to purchase and fund risk participations in New Vehicle Swing Line Loans pursuant to this Section 2.05(e) 

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shall be absolute and unconditional and shall not be affected by any circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right which such Lender may have against the New Vehicle Swing Line Lender, any Borrower, the Company or any other Person for any reason whatsoever, (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or condition, whether or not similar to any of the foregoing; provided, however, that each Lender’s obligation to make Committed Loans pursuant to this Section 2.05(e) is subject to the conditions set forth in Section 4.02.  No such funding of risk participations shall relieve or otherwise impair the obligation of each Borrower (jointly and severally) to repay New Vehicle Swing Line Loans, together with interest as provided herein.
(f)    Repayment of Participations.
(i)    At any time after any Lender has purchased and funded a risk participation in a New Vehicle Swing Line Loan, if the New Vehicle Swing Line Lender receives any payment on account of such New Vehicle Swing Line Loan, the New Vehicle Swing Line Lender will distribute to such Lender its Applicable Percentage of such payment (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender’s risk participation was funded) in the same funds as those received by the New Vehicle Swing Line Lender.
(ii)    If any payment received by the New Vehicle Swing Line Lender in respect of principal or interest on any New Vehicle Swing Line Loan (other than a Bilateral New Vehicle Swing Line Loan) is required to be returned by the New Vehicle Swing Line Lender under any of the circumstances described in Section 10.05 (including pursuant to any settlement entered into by the New Vehicle Swing Line Lender in its discretion), then (x) the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made, (y) each Lender shall pay to the New Vehicle Swing Line Lender its Applicable Percentage thereof on demand of the Administrative Agent, plus interest thereon from the date of such demand to the date such amount is returned, at a rate per annum equal to the applicable Federal Funds Rate and (z) such Lender shall hold a participation in such reinstated obligation to the extent of such Lender’s payment.  The Administrative Agent will make such demand upon the request of the New Vehicle Swing Line Lender.  The obligations of the Lenders under this clause shall survive the payment in full of the Obligations and the termination of this Agreement.
(g)    Interest for Account of New Vehicle Swing Line Lender.  The New Vehicle Swing Line Lender shall be responsible for invoicing the Revolving Borrower (for itself and on behalf of the applicable Borrower) for interest on the New Vehicle Swing Line Loans.  Upon receipt of any such invoice, the Revolving Borrower shall immediately provide copies of such invoice to each Borrower.  Until each Lender funds its Eurodollar Rate Committed Loan or risk participation pursuant to this Section 2.05 to refinance such Lender’s Applicable Percentage of any New Vehicle Swing Line Loan, interest in respect of such Applicable Percentage shall be solely for the account of the New Vehicle Swing Line Lender.  Interest in respect of any Bilateral New Vehicle Swing Line Loan shall be solely for the account of the New Vehicle Swing Line Lender.
(h)    Payments Directly to New Vehicle Swing Line Lender.  Each Borrower shall make all payments of principal and interest in respect of the New Vehicle Swing Line Loans directly to the New Vehicle Swing Line Lender.

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2.06    Prepayments.
(a)    The Revolving Borrower may, upon notice to the Administrative Agent, at any time or from time to time voluntarily prepay Committed Loans in whole or in part without premium or penalty; provided that (i) such notice must be received by the Administrative Agent not later than 2:00 p.m. on the date of prepayment of such Committed Loans; and (ii) any prepayment of Committed Loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof or, in each case, if less, the entire principal amount thereof then outstanding.  Each such notice must be in the form of a Notice of Loan Prepayment and shall specify the date and amount of such prepayment and the Type(s) of Committed Loans to be prepaid.  The Administrative Agent will promptly notify each Lender of its receipt of each such notice, and of the amount of such Lender’s Applicable Percentage of such prepayment.  If such notice is given by the Revolving Borrower, the Revolving Borrower shall make such prepayment of principal and interest accrued thereon and the payment amount specified in such notice shall be due and payable on the date specified therein.  Subject to Section 2.18, each such principal prepayment shall be applied to the Committed Loans of the Lenders in accordance with their respective Applicable Percentages.  Notwithstanding the foregoing, the Revolving Borrower may rescind any notice of prepayment, if such prepayment would have resulted from a refinancing of all or a portion of the Committed Loans hereunder, which refinancing shall not be consummated or shall otherwise be delayed.
(b)    At any time an Autoborrow Agreement is not in effect, the Revolving Borrower may, upon notice to the Swing Line Lender (with a copy to the Administrative Agent), at any time or from time to time, voluntarily prepay Swing Line Loans in whole or in part without premium or penalty; provided that (i) such notice must be received by the Swing Line Lender and the Administrative Agent not later than 2:00 p.m. on the date of the prepayment, and (ii) any such prepayment shall be in a minimum principal amount of $100,000.  Each such notice shall specify the date and amount of such prepayment.  If such notice is given by the Revolving Borrower, the Revolving Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein.  If an Autoborrow Agreement is in effect, prepayments of Swing Line Loans advanced thereunder shall be made pursuant to the terms of such Autoborrow Agreement.  Notwithstanding the foregoing, the Revolving Borrower may rescind any notice of prepayment, if such prepayment would have resulted from a refinancing of all or a portion of the Swing Line Loans hereunder, which refinancing shall not be consummated or shall otherwise be delayed.
(c)    The Revolving Borrower may, upon notice to the New Vehicle Swing Line Lender, at any time or from time to time, voluntarily prepay New Vehicle Swing Line Loans in whole or in part without premium or penalty; provided that such notice must be received by the New Vehicle Swing Line Lender not later than 4:00 p.m. on the date of the prepayment.  Each such notice shall specify the date and amount of such prepayment.  If such notice is given by the Revolving Borrower, the Revolving Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the dated specified therein. Notwithstanding the foregoing, the Revolving Borrower may rescind any notice of prepayment, if such prepayment would have resulted from a refinancing of all or a portion of the New Vehicle Swing Line Loans hereunder, which refinancing shall not be consummated or shall otherwise be delayed.
(d)    If for any reason the Total Outstandings at any time exceed the Aggregate Commitments then in effect, the Revolving Borrower shall, upon demand by the Administrative Agent, immediately prepay Loans and/or Cash Collateralize the L/C Obligations in an aggregate 

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amount at least equal to such excess; provided, however, that, the Revolving Borrower shall not be required to Cash Collateralize the L/C Obligations pursuant to this Section 2.06(d) unless after the prepayment in full of the Loans the Total Outstandings exceed the Aggregate Commitments then in effect.
(e)    If for any reason the aggregate Outstanding Amount of Swing Line Loans exceeds the Swing Line Sublimit, the Revolving Borrower shall, upon demand by the Administrative Agent, immediately prepay Swing Line Loans in an aggregate amount at least equal to such excess
(f)    If for any reason the Outstanding Amount of any New Vehicle Swing Line Loans exceeds any applicable Within Line Limitation, the Borrowers (jointly and severally) shall, upon demand by the Administrative Agent, immediately prepay such New Vehicle Swing Line Loans in an aggregate amount at least equal to such excess.
(g)    If for any reason the aggregate Outstanding Amount of New Vehicle Swing Line Loans exceeds the New Vehicle Swing Line Sublimit, the Borrowers (jointly and severally) shall, upon demand by the Administrative Agent, immediately prepay New Vehicle Swing Line Loans in an aggregate amount at least equal to such excess.
2.07    Termination or Reduction of Commitments.  The Revolving Borrower may, upon notice to the Administrative Agent, terminate the Aggregate Commitments, or from time to time permanently reduce the Aggregate Commitments; provided that (i) any such notice shall be received by the Administrative Agent not later than 11:00 a.m. five Business Days prior to the date of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of $5,000,000 or any whole multiple of $1,000,000 in excess thereof, (iii) the Revolving Borrower shall not terminate or reduce the Aggregate Commitments if, after giving effect thereto and to any concurrent prepayments hereunder, the Total Outstandings would exceed the Aggregate Commitments, and (iv) if, after giving effect to any reduction of the Aggregate Commitments, the Letter of Credit Sublimit, the Swing Line Sublimit, the New Vehicle Swing Line Sublimit or any Within Line Limitation exceeds the amount of the Aggregate Commitments, such sublimit or Within Line Limitation shall be automatically reduced by the amount of such excess.  The Administrative Agent will promptly notify the Lenders of any such notice of termination or reduction of the Aggregate Commitments.  Any reduction of the Aggregate Commitments shall be applied to the Commitment of each Lender according to its Applicable Percentage.  All fees accrued until the effective date of any termination of the Aggregate Commitments shall be paid on the effective date of such termination.  Notwithstanding the foregoing, the Revolving Borrower may rescind or postpone any notice of termination of any Commitments if such termination would have resulted from a refinancing of all or a portion of the Commitments hereunder, which refinancing shall not be consummated or shall otherwise be delayed.
2.08    Repayment of Loans.
(a)    The Revolving Borrower shall repay to the Lenders on the Maturity Date the aggregate principal amount of Committed Loans outstanding on such date.
(b)    At any time an Autoborrow Agreement is in effect, the Swing Line Loans shall be repaid in accordance with the terms of the Autoborrow Agreement.  At any time an Autoborrow Agreement is not in effect, the Revolving Borrower shall repay each Swing Line Loan (i) at any time on demand by the Swing Line Lender and (ii) on the Maturity Date.

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(c)    The Borrowers (jointly and severally) shall repay each New Vehicle Swing Line Loan (i) at any time on demand by the New Vehicle Swing Line Lender and (ii) on the Maturity Date.
2.09    Interest.
(a)    Subject to the provisions of subsection (b) below, (i) each Eurodollar Rate Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Eurodollar Rate plus the Applicable Rate; and (ii) each Base Rate Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate.  For purposes of clarification, the Eurodollar Rate in effect for each month during which a Eurodollar Rate Loan is outstanding is the Eurodollar Rate determined to be effective as of the first Business Day of such month and is reset on the first Business Day of each month thereafter.
(b)    (i)    If any amount of principal of any Loan is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, such overdue amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws.
(i)    If any amount (other than principal of any Loan) payable by any Borrower under any Loan Document is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by acceleration or otherwise, then upon the request of the Required Lenders, such overdue amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws.
(ii)    Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable upon demand.
(c)    Interest on each Loan shall be due and payable in arrears (i) on each Interest Payment Date applicable thereto and (ii) at such other times as may be specified herein; provided, however, that, in the case of clause (i) above, if the Administrative Agent fails to provide the Revolving Borrower with a statement of interest with respect to such Loan on or prior to such Interest Payment Date, interest on such Loan shall be due and payable upon the Revolving Borrower’s receipt of such statement.  Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law.
2.10    Fees.  In addition to certain fees described in subsections (h) and (i) of Section 2.03:
(a)    Commitment Fee.  The Borrowers (jointly and severally) shall pay to the Administrative Agent for the account of each Lender in accordance with its Applicable Percentage, a commitment fee (the “Commitment Fee”) equal to the Applicable Rate times the actual daily amount by which the Aggregate Commitments exceed the sum of (i) the Outstanding Amount of Committed Loans and (ii) the Outstanding Amount of L/C Obligations, subject to adjustment as provided in Section 2.18.  The Commitment Fee shall accrue at all times during the Availability Period, including at any time during which one or more of the conditions in Article IV is not met, and shall be due and payable quarterly in arrears on the first Business Day after the end of each March, June, September and December, commencing with the first such date to occur after the 

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Closing Date, and on the Maturity Date.  The Commitment Fee shall be calculated quarterly in arrears, and if there is any change in the Applicable Rate during any quarter, the actual daily amount shall be computed and multiplied by the Applicable Rate separately for each period during such quarter that such Applicable Rate was in effect.  Such fees shall be fully earned when due and payable and shall not be refundable for any reason whatsoever.
(b)    Other Fees.
(i)    The Company shall pay to the Arrangers and the Administrative Agent, for their own respective accounts, fees in the amounts and at the times specified in the applicable Fee Letter.  Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.
(ii)    The Company and the Revolving Borrower, as applicable, shall pay to the Lenders such other fees, if any, with respect to the Loan Documents, the Loans or the Commitments, as shall have been separately agreed upon in writing in the amounts and at the times so specified.  Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.
2.11    Computation of Interest and Fees.
All computations of interest for Base Rate Loans shall be made on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed.  All other computations of fees and interest shall be made on the basis of a 360‐day year and actual days elapsed (which results in more fees or interest, as applicable, being paid than if computed on the basis of a 365‐day year).  Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid, provided that any Loan that is repaid on the same day on which it is made shall, subject to Section 2.13(a), bear interest for one day.  Each determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error.
2.12    Evidence of Debt.
(a)    The Credit Extensions made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and by the Administrative Agent in the ordinary course of business.  The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Credit Extensions made by the Lenders to the Borrowers and the interest and payments thereon.  Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrowers hereunder to pay any amount owing with respect to the Obligations.  In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.  Upon the request of any Lender to a Borrower made through the Administrative Agent, such Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Note, which shall evidence such Lender’s Loans in addition to such accounts or records.  Each Lender may attach schedules to any of its Notes and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and payments with respect thereto.
(b)    In addition to the accounts and records referred to in subsection (a), each Lender and the Administrative Agent shall maintain in accordance with its usual practice accounts or records 

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evidencing the purchases and sales by such Lender of participations in Letters of Credit, Swing Line Loans and New Vehicle Swing Line Loans.  In the event of any conflict between the accounts and records maintained by the Administrative Agent and the accounts and records of any Lender in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.
2.13    Payments Generally; Administrative Agent’s Clawback.
(a)    General.  All payments to be made by any Borrower shall be made free and clear of and without condition or deduction for any counterclaim, defense, recoupment or setoff.  Except as otherwise expressly provided herein, all payments by any Borrower hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the Administrative Agent’s Office in Dollars and in immediately available funds not later than 2:00 p.m. on the date specified herein.  The Administrative Agent will promptly distribute to each Lender its Applicable Percentage (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative Agent after 2:00 p.m. shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue.  If any payment to be made by any Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension of time shall be reflected in computing interest or fees, as the case may be.
(b)    (i)    Funding by Lenders; Presumption by Administrative Agent.  Unless the Administrative Agent shall have received notice from a Lender prior to 12:00 noon on the date of any Committed Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of such Committed Borrowing, the Administrative Agent may assume that such Lender has made such share available on such date and at the time required in accordance with Section 2.02 and may, in reliance upon such assumption, make available to the Revolving Borrower a corresponding amount.  In such event, if a Lender has not in fact made its share of the applicable Committed Borrowing available to the Administrative Agent, then the applicable Lender and the Revolving Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount in immediately available funds with interest thereon, for each day from and including the date such amount is made available to the Revolving Borrower to but excluding the date of payment to the Administrative Agent, at (A) in the case of a payment to be made by such Lender, the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation, plus any reasonable administrative, processing or similar fees customarily charged by the Administrative Agent in connection with the foregoing, and (B) in the case of a payment to be made by the Revolving Borrower, the interest rate applicable to Eurodollar Rate Loans; provided, however, that the Administrative Agent shall demand such payment from the Revolving Borrower only if such Lender has failed to make such payment forthwith on demand or if the Administrative Agent is prohibited by Law or otherwise from making such demand on such Lender.  If the Revolving Borrower and such Lender shall pay such interest to the Administrative Agent for the same or an overlapping period, the Administrative Agent shall promptly remit to the Revolving Borrower the amount of such interest paid by the Revolving Borrower for such period.  If such Lender pays its share of the applicable Committed Borrowing to the Administrative Agent, then the amount so paid shall constitute such Lender’s Committed Loan included in such Committed Borrowing.  Any payment by the Revolving Borrower shall be without prejudice to any claim the Revolving Borrower may have against a Lender that shall have failed to make such payment to the Administrative Agent.

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(i)    Payments by Borrowers; Presumptions by Administrative Agent.  Unless the Administrative Agent shall have received notice from the Revolving Borrower (on its own behalf or on behalf of another Borrower) prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the L/C Issuer hereunder that such Borrower will not make such payment, the Administrative Agent may assume that such Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the L/C Issuer, as the case may be, the amount due.  In such event, if such Borrower has not in fact made such payment, then each of the Lenders or the L/C Issuer, as the case may be, severally agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender or the L/C Issuer, in immediately available funds with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation.
A notice of the Administrative Agent to any Lender or Borrower with respect to any amount owing under this subsection (b) shall be conclusive, absent manifest error.
(c)    Failure to Satisfy Conditions Precedent.  If any Lender makes available to the Administrative Agent funds for any Loan to be made by such Lender to any Borrower as provided in the foregoing provisions of this Article II, and such funds are not made available to such Borrower by the Administrative Agent because the conditions to the applicable Credit Extension set forth in Article IV are not satisfied or waived in accordance with the terms hereof, the Administrative Agent shall promptly return such funds (in like funds as received from such Lender) to such Lender, without interest.
(d)    Obligations of Lenders Several.  The obligations of the Lenders hereunder to make Committed Loans, to fund participations in Letters of Credit, Swing Line Loans and New Vehicle Swing Line Loans and to make payments pursuant to Section 10.04(c) are several and not joint.  The failure of any Lender to make any Committed Loan, to fund any such participation or to make any payment under Section 10.04(c) on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for the failure of any other Lender to so make its Committed Loan, to purchase its participation or to make its payment under Section 10.04(c).
(e)    Funding Source.  Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner or to constitute a representation by any Lender that it has obtained or will obtain the funds for any Loan in any particular place or manner.
2.14    Sharing of Payments by Lenders.  If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of the Committed Loans made by it, or the participations in L/C Obligations, Swing Line Loans or New Vehicle Swing Line Loans held by it, resulting in such Lender’s receiving payment of a proportion of the aggregate amount of such Committed Loans or participations and accrued interest thereon greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Committed Loans and subparticipations in L/C Obligations, Swing Line Loans and New Vehicle Swing Line Loans of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall 

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be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Committed Loans and other amounts owing them, provided that:
(i)    if any such participations or subparticipations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations or subparticipations shall be rescinded and the purchase price restored to the extent of such recovery, without interest; and
(ii)    the provisions of this Section shall not be construed to apply to (A) any payment made by or on behalf of any Borrower pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender), (B) the application of Cash Collateral provided for in Section 2.17, or (C) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Committed Loans or subparticipations in L/C Obligations, Swing Line Loans or New Vehicle Swing Line Loans to any assignee or participant, other than an assignment to the Revolving Borrower or any Subsidiary thereof (as to which the provisions of this Section shall apply)
Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against such Loan Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Loan Party in the amount of such participation.
2.15    Designated Borrowers.
(a)    Effective as of the date hereof, each Subsidiary that has executed this Agreement shall be a “Designated Borrower” hereunder and may receive New Vehicle Swing Line Loans for its account on the terms and conditions set forth in this Agreement.
(b)    If any wholly-owned Domestic Subsidiary (other than an Excluded Special Purpose Finance Subsidiary) engages in the sale or leasing of new motor vehicles, the Company shall designate such Subsidiary as a Designated Borrower in the applicable Joinder Agreement, as a Designated Borrower to receive New Vehicle Swing Line Loans hereunder, and shall deliver to the Administrative Agent pursuant to Section 6.12, a Joinder Agreement executed by such Subsidiary; provided that a Designated Borrower shall not be required to execute a Joinder Agreement if such Designated Borrower has executed and delivered this Agreement on the Closing Date.  The parties hereto acknowledge and agree that prior to any such Subsidiary becoming entitled to utilize the credit facilities provided for in Section 2.05, the Administrative Agent and the Lenders shall have received the documents required by Section 6.12 and any documents requested pursuant to Section 10.18.  Promptly following receipt of all such documents required by Section 6.12, the Administrative Agent shall send a notice in substantially the form of Exhibit J (a “Designated Borrower Notice”) to the Company and the Lenders specifying the effective date upon which such Subsidiary shall constitute a Designated Borrower for purposes hereof, whereupon each of the Lenders agrees to permit such Designated Borrower to receive New Vehicle Swing Line Loans hereunder, on the terms and conditions set forth herein, and each of the parties agrees that such Designated Borrower otherwise shall be a Borrower for all purposes of this Agreement; provided that no New Vehicle Swing Line Loan Notice (nor any Borrowing request by any vehicle manufacturer or distributor) may be submitted by or on behalf of such Designated Borrower until the date five Business Days after such effective date.

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(c)    Notwithstanding any other provision of this Agreement, each Borrower shall be jointly and severally liable as a primary obligor, and not merely as surety, for any and all Obligations now or hereafter owed to the Administrative Agent, the L/C Issuer and the Lenders, whether voluntary or involuntary and however arising, whether direct or acquired by any Lender by assignment or succession, whether due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined (such Obligations, the “Borrowers’ Liabilities”).
(d)    Each Borrower expressly waives any and all defenses now or hereafter arising or asserted by reason of (i) any lack of legality, validity or enforceability of this Agreement, of any of the Notes, of any other Loan Document, or of any other agreement or instrument creating, providing security for, or otherwise relating to any of the Obligations or any guaranty of any of the Borrowers’ Liabilities (the Loan Documents and all such other agreements and instruments being collectively referred to as the “Related Agreements”); (ii) any action taken under any of the Related Agreements, any exercise of any right or power therein conferred, any failure or omission to enforce any right conferred thereby, or any waiver of any covenant or condition therein provided; (iii) any acceleration of the maturity of any of the Borrowers’ Liabilities or of any other obligations or liabilities of any Person under any of the Related Agreements; (iv) any release, exchange, non‐perfection, lapse in perfection, disposal, deterioration in value, or impairment of any security for any of the Borrowers’ Liabilities, or for any other obligations or liabilities of any Person under any of the Related Agreements; (v) any dissolution of any Borrower, any Loan Party or any other party to a Related Agreement, or the combination or consolidation of any Borrower, any Loan Party or any other party to a Related Agreement into or with another entity or any transfer or disposition of any assets of any Borrower, any Loan Party or any other party to a Related Agreement; (vi) any extension (including without limitation extensions of time for payment), renewal, amendment, restructuring or restatement of, any acceptance of late or partial payments under, or any change in the amount of any borrowings or any credit facilities available under, this Agreement, any of the Notes or any other Loan Document or any other Related Agreement, in whole or in part; (vii) the existence, addition, modification, termination, reduction or impairment of value, or release of any other guaranty (or security therefor) of the Borrowers’ Liabilities; (viii) any waiver of, forbearance or indulgence under, or other consent to any change in or departure from any term or provision contained in this Agreement, any other Loan Document or any other Related Agreement, including without limitation any term pertaining to the payment or performance of any of the Borrowers’ Liabilities, or any of the obligations or liabilities of any party to any other Related Agreement; and (ix) any other circumstance whatsoever (with or without notice to or knowledge of such Borrower) which may or might in any manner or to any extent vary the risks of such Borrower, or might otherwise constitute a legal or equitable defense available to, or discharge of, a surety or a guarantor, including without limitation any right to require or claim that resort be had to any Borrower or any other Loan Party or to any collateral in respect of the Borrowers’ Liabilities.  It is the express purpose and intent of the parties hereto that the joint and several liability of each Borrower for the Borrowers’ Liabilities shall be absolute and unconditional under any and all circumstances and shall not be discharged except by payment as herein provided.  Notwithstanding the foregoing, the liability of each Borrower with respect to its Borrowers’ Liabilities shall be limited to an aggregate amount equal to the largest amount that would not render its obligations hereunder subject to avoidance under Section 548 of the United States Bankruptcy Code or any comparable provisions of any applicable state law.
(e)    Each Subsidiary that is or becomes a “Designated Borrower” pursuant to this Section 2.15 hereby irrevocably appoints the Revolving Borrower as its agent for all purposes relevant to this Agreement and each of the other Loan Documents, including (i) the giving and receipt of notices, (ii) the execution and delivery of all documents, instruments and certificates contemplated 

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herein and all modifications hereto, and (iii) the receipt of the proceeds of any New Vehicle Swing Line Loans made by the Lenders to any such Designated Borrower hereunder.  Any acknowledgment, consent, direction, certification or other action which might otherwise be valid or effective only if given or taken by all Borrowers, or by any Borrower acting singly, shall be valid and effective if given or taken only by the Revolving Borrower, whether or not any such other Borrower joins therein.  Any notice, demand, consent, acknowledgement, direction, certification or other communication delivered to the Revolving Borrower in accordance with the terms of this Agreement shall be deemed to have been delivered to each Designated Borrower.
(f)    Notwithstanding anything to the contrary contained in this Agreement, a Subsidiary that is not organized under the laws of the United States, any State thereof or the District of Columbia may not become a Designated Borrower unless approved by each Lender.  If the Required Lenders have approved such designation, any Non-Consenting Lender may be replaced in accordance with Section 10.13.
2.16    Increase in Commitments.
(a)    Request for Increase.  Provided there exists no Default and there has been no prior voluntary reduction of the Aggregate Commitments (other than any reduction pursuant to Section 10.13), upon notice to the Administrative Agent (which shall promptly notify the Lenders), the Company may, from time to time, effectuate an increase in the Aggregate Commitments by adding to this Agreement one or more Persons acceptable to the Company and subject to the approval of the Administrative Agent, the L/C Issuer, the Swing Line Lender and the New Vehicle Swing Line Lender (which approvals shall not be unreasonably withheld), who shall, upon completion of the requirements of this Section 2.16, constitute a “Lender” or “Lenders” hereunder (each an “Added Lender”), or by allowing one or more Lenders in their sole discretion to increase their respective Commitments hereunder (each an “Increasing Lender”) in an amount (for all such increases) not exceeding $550,000,000; provided that (i) any such request for an increase shall be in a minimum amount of $25,000,000, and (ii) no such increase shall result in any increase in the Letter of Credit Sublimit, Swing Line Sublimit or the New Vehicle Swing Line Sublimit.  At the time of sending such notice, the Company (in consultation with the Administrative Agent) shall specify the time period within which each Added Lender and Increasing Lender is requested to respond (which shall in no event be less than five Business Days from the date of delivery of such notice to the Lenders).
(b)    Lender Elections to Increase.  Each Added Lender and Increasing Lender shall notify the Administrative Agent within such time period whether or not it agrees to participate in such increase of the Aggregate Commitment and, if so, by what amount of such requested increase.  Any Lender not responding within such time period shall be deemed to have declined to participate in such increase of the Aggregate Commitment.  No Lender shall be obligated to increase its Commitment upon the Company’s request pursuant to this Section 2.16.
(c)    Notification by Administrative Agent; Additional Lenders.  The Administrative Agent shall notify the Company and each Lender of the Added Lenders’ and Increasing Lenders’ responses to each request made hereunder.  Any such increase shall be allocated among the Added Lenders and Increasing Lenders in the Company’s sole discretion.   In order to become a Lender, each Added Lender shall execute and deliver to the Administrative Agent a joinder agreement in form and substance reasonably satisfactory to the Administrative Agent. Upon delivery by an Added Lender to the Administrative Agent of such joinder agreement and the occurrence of the Increase Effective Date referred to below, such Added Lender shall constitute a “Lender” for all purposes 

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under this Agreement and related documents and without any acknowledgment by or consent of the other Lenders.  Each Increasing Lender shall execute and deliver to the Administrative Agent a commitment increase agreement in form and substance reasonably satisfactory to the Administrative Agent. Upon delivery by an Increasing Lender to the Administrative Agent of such commitment increase agreement and the occurrence of the Increase Effective Date referred to below, such Increasing Lender’s Commitment shall be increased as described therein for all purposes under this Agreement and related documents and without any acknowledgment by or consent of the other Lenders.  In connection with the foregoing, Schedule 2.01 shall be deemed amended as of the Increase Effective Date to reflect any changes therein resulting from such increases.
(d)    Effective Date and Allocations.  If the Aggregate Commitments are increased in accordance with this Section, the Administrative Agent and the Company shall determine the effective date (the “Increase Effective Date”) and the final allocation of such increase.  The Administrative Agent shall promptly notify the Company and the Lenders of the final allocation of such increase and the Increase Effective Date.
(e)    Conditions to Effectiveness of Increase.  As a condition precedent to such increase, the Company shall deliver to the Administrative Agent a certificate of each Loan Party dated as of the Increase Effective Date (in sufficient copies for each Lender) signed by a Responsible Officer of such Loan Party (i) certifying and attaching the resolutions adopted by such Loan Party approving or consenting to such increase (it being understood and agreed that, as to any Loan Party as of the Closing Date, the resolutions adopted by such Loan Party and delivered pursuant to Section 4.01(a)(ii) of this Agreement shall satisfy this condition), and (ii) in the case of the Company and the Borrowers, certifying that, before and after giving effect to such increase, (A) the representations and warranties of the Company and the Borrowers contained in Article V and the representations and warranties of each Loan Party contained in each other Loan Document are true and correct in all material respects (or, in the case of representations and warranties already qualified by materiality, in all respects) on and as of the Increase Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that for purposes of this Section 2.16, the representations and warranties contained in subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01, and (B) no Default exists.  On each Increase Effective Date, (i) each relevant Added Lender and Increasing Lender that is participating in the increase of the Aggregate Commitment shall make available to the Administrative Agent such amounts in immediately available funds as the Administrative Agent shall determine, for the benefit of the other relevant Lenders, as being required in order to cause, after giving effect to such increase and the application of such amounts to make payments to such other relevant Lenders, the outstanding Committed Loans (and risk participations in outstanding Swing Line Loans, New Vehicle Swing Line Loans and L/C Obligations) to be held ratably by all Lenders in accordance with the revised Applicable Percentages, and (ii) the Revolving Borrower shall be deemed to have prepaid and reborrowed the outstanding Committed Loans as of such Increase Effective Date to the extent necessary to keep the outstanding Committed Loans ratable with any revised Applicable Percentages arising from any Commitment of Added Lenders and any increase in the Commitments of the Increasing Lenders under this Section.
(f)    Conflicting Provisions.  This Section shall supersede any provisions in Sections 2.14 or 10.01 to the contrary.
2.17    Cash Collateral.

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(a)    Certain Credit Support Events.  Upon the request of the Administrative Agent or the L/C Issuer (i) if the L/C Issuer has honored any full or partial drawing request under any Letter of Credit and such drawing has resulted in an L/C Borrowing, or (ii) if, as of the Letter of Credit Expiration Date, any L/C Obligation for any reason remains outstanding, the Revolving Borrower shall, in each case, immediately Cash Collateralize the then Outstanding Amount of all L/C Obligations.  At any time that there shall exist a Defaulting Lender, within three Business Days’ following the written request of the Administrative Agent or the L/C Issuer, the Revolving Borrower shall deliver to the Administrative Agent Cash Collateral in an amount sufficient to cover all Fronting Exposure with respect to such Defaulting Lender (after giving effect to Section 2.18(a)(iv) and any Cash Collateral provided by such Defaulting Lender (it being understood that the Administrative Agent shall first request that such Defaulting Lender deliver Cash Collateral in an amount sufficient to cover such Fronting Exposure)).  If the Borrowers shall be required to provide Cash Collateral pursuant to Section 8.02(c), the Revolving Borrower shall immediately Cash Collateralize the Outstanding Amount of all L/C Obligations.
(b)    Grant of Security Interest.  All Cash Collateral (other than credit support not constituting funds subject to deposit) shall be maintained in blocked, deposit accounts at Bank of America.  The Revolving Borrower, and to the extent provided by any Defaulting Lender, such Defaulting Lender, hereby grants to (and subjects to the control of) the Administrative Agent, for the benefit of the Administrative Agent, the L/C Issuer and the Lenders, and agrees to maintain, a first priority security interest in all Cash Collateral provided as collateral pursuant hereto, and in all proceeds thereof, all as security for the obligations to which such Cash Collateral may be applied pursuant to Section 2.17(c).  If at any time the Administrative Agent determines that Cash Collateral is subject to any right or claim of any Person other than the Administrative Agent or the L/C Issuer as herein provided, or that the total amount of such Cash Collateral is less than the applicable Fronting Exposure and other obligations secured thereby, the Revolving Borrower or the relevant Defaulting Lender will, promptly upon demand by the Administrative Agent, pay or provide to the Administrative Agent additional Cash Collateral in an amount sufficient to eliminate such deficiency (it being understood that the Administrative Agent shall first request that such Defaulting Lender deliver such additional Cash Collateral).
(c)    Application.  Notwithstanding anything to the contrary contained in this Agreement, Cash Collateral provided under any of this Section 2.17 or Sections 2.03, 2.06, 2.18 or 8.02 in respect of Letters of Credit shall be held and applied to the satisfaction of the specific L/C Obligations, obligations to fund participations therein (including, as to Cash Collateral provided by a Defaulting Lender, any interest accrued on such obligation) and other obligations for which the Cash Collateral was so provided, prior to any other application of such property as may be provided for herein.
(d)    Release.  Cash Collateral (or the appropriate portion thereof) provided to reduce Fronting Exposure or to secure other obligations shall be released promptly following (i) the elimination of the applicable Fronting Exposure or other obligations giving rise thereto (including through the assignment of the rights and obligations of a Defaulting Lender or by the termination of the Defaulting Lender status of a Defaulting Lender) or (ii) the Administrative Agent’s and L/C Issuer’s good faith determination that there exists excess Cash Collateral; provided, however, (x) that Cash Collateral furnished by or on behalf of a Loan Party shall not be released during the continuance of a Default or Event of Default (and following application as provided in this Section 2.17 may be otherwise applied in accordance with Section 8.03), and (y) the Person providing Cash Collateral and the L/C Issuer may agree that Cash Collateral shall not be released but instead held to support future anticipated Fronting Exposure or other obligations.

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2.18    Defaulting Lenders.
(a)    Adjustments.  Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as that Lender is no longer a Defaulting Lender, to the extent permitted by applicable Law:
(i)    Waivers and Amendments.  Such Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of “Required Lenders” and Section 10.01.
(ii)    Defaulting Lender Waterfall.  Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article VIII or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 10.08, shall be applied at such time or times as may be determined by the Administrative Agent as follows: first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by such Defaulting Lender to the L/C Issuer, Swing Line Lender or New Vehicle Swing Line Lender hereunder; third, to Cash Collateralize the L/C Issuer’s Fronting Exposure with respect to such Defaulting Lender in accordance with Section 2.17; fourth, as the Revolving Borrower may request (so long as no Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; fifth, if so determined by the Administrative Agent and the Revolving Borrower, to be held in a deposit account and released pro rata in order to (x) satisfy such Defaulting Lender’s potential future funding obligations with respect to Loans under this Agreement and (y) Cash Collateralize the L/C Issuer’s Fronting Exposure with respect to such Defaulting Lender with respect to future Letters of Credit issued under this Agreement in accordance with Section 2.17; sixth, to the payment of any amounts owing to the Lenders, the L/C Issuer, Swing Line Lender or New Vehicle Swing Line Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender, the L/C Issuer, Swing Line Lender or New Vehicle Swing Line Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; seventh, so long as no Default exists, to the payment of any amounts owing to the Borrowers as a result of any judgment of a court of competent jurisdiction obtained by the Borrowers against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; and eighth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of the principal amount of any Loans or L/C Borrowings in respect of which such Defaulting Lender has not fully funded its appropriate share and (y) such Loans were made or the related Letters of Credit were issued at a time when the conditions set forth in Section 4.02 or 4.03, as applicable, were satisfied or waived, such payment shall be applied solely to pay the Loans of, and L/C Obligations owed to, all Non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of, or L/C Obligations owed to, such Defaulting Lender until such time as all Loans and funded and unfunded participations in L/C Obligations, Swing Line Loans and New Vehicle Swing Line Loans are held by the Lenders pro rata in accordance with the Commitments hereunder without giving effect to Section 2.18(a)(iv).  Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post Cash Collateral pursuant to 

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this Section 2.18(a)(ii) shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.
(iii)    Certain Fees.
(A)    No Defaulting Lender shall be entitled to receive any Commitment Fee pursuant to Section 2.10(a) for any period during which that Lender is a Defaulting Lender (and the Borrowers shall not be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender).
(B)    Each Defaulting Lender shall be entitled to receive Letter of Credit Fees for any period during which that Lender is a Defaulting Lender only to the extent allocable to its Applicable Percentage of the stated amount of Letters of Credit for which it has provided Cash Collateral pursuant to Section 2.14.
(C)    With respect to any Letter of Credit Fee not required to be paid to any Defaulting Lender pursuant to clause (B) above, the Borrowers shall (x) pay to each Non-Defaulting Lender that portion of any such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender’s participation in L/C Obligations that has been reallocated to such Non-Defaulting Lender pursuant to clause (iv) below, (y) pay to the L/C Issuer  the amount of any such fee otherwise payable to such Defaulting Lender to the extent allocable to such L/C Issuer’s Fronting Exposure to such Defaulting Lender, and (z) not be required to pay the remaining amount of any such fee.
(iv)    Reallocation of Applicable Percentages to Reduce Fronting Exposure.  All or any part of such Defaulting Lender’s participation in L/C Obligations, Swing Line Loans and New Vehicle Swing Line Loans shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Applicable Percentages (calculated without regard to such Defaulting Lender’s Commitment) but only to the extent that such reallocation does not cause such Non-Defaulting Lender’s Applicable Percentage of the Total Outstandings to exceed such Non-Defaulting Lender’s Commitment.  Subject to Section 10.19, no reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender’s increased exposure following such reallocation. 
(v)    Cash Collateral, Repayment of Swing Line Loans.  If the reallocation described in clause (iv) above cannot, or can only partially, be effected, the Borrowers shall, without prejudice to any right or remedy available to it hereunder or under applicable Law, (x) first, prepay Swing Line Loans and New Vehicle Swing Line Loans in an amount equal to the Swing Line Lenders’ Fronting Exposure and (y) second, Cash Collateralize the L/C Issuers’ Fronting Exposure in accordance with the procedures set forth in Section 2.14.
(b)    Defaulting Lender Cure.  If the Company, the Administrative Agent, the Swing Line Lender, the New Vehicle Swing Line Lender and the L/C Issuer agree in writing in their sole discretion that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any Cash Collateral), that Lender will, to the extent applicable, purchase at par that portion of outstanding Loans of the other Lenders 

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or take such other actions as the Administrative Agent may determine to be necessary to cause the Loans and funded and unfunded participations in Letters of Credit, Swing Line Loans and New Vehicle Swing Line Loans to be held on a pro rata basis by the Lenders in accordance with their Applicable Percentages (without giving effect to Section 2.18(a)(iv)), whereupon such Lender will cease to be a Defaulting Lender; provided, however, that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrowers while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.
2.19    Extension Option.

(a)    Requests for Extension.  The Company may, no more than two times during the term of this Agreement, by notice to the Administrative Agent (who shall promptly notify the Lenders) not earlier than 90 days and not later than 30 days prior to any anniversary of the Closing Date, request that each Lender extend such Lender’s Maturity Date for an additional year from the Maturity Date then in effect hereunder (the “Existing Maturity Date”).
(b)    Lender Elections to Extend.  Each Lender, acting in its sole and individual discretion, shall, by notice to the Administrative Agent given not later than the date (the “Notice Date”) that is 20 days prior to such anniversary of the Closing Date, advise the Administrative Agent whether or not such Lender agrees to such extension (and each Lender that determines not to so extend its Maturity Date (a “Non‐Extending Lender”) shall notify the Administrative Agent of such fact promptly after such determination (but in any event no later than the Notice Date)) and any Lender that does not so advise the Administrative Agent on or before the Notice Date shall be deemed to be a Non‐Extending Lender.  The election of any Lender to agree to such extension shall not obligate any other Lender to so agree.
(c)    Notification by Administrative Agent.  The Administrative Agent shall notify the Company of each Lender’s determination under this Section 2.19 no later than the date 15 days prior to such anniversary of the Closing Date (or, if such date is not a Business Day, on the next preceding Business Day).
(d)    Additional Commitment Lenders.  The Company shall have the right, at any time prior to the existing Maturity Date applicable to a Non-Extending Lender, to replace such Non‐Extending Lender with, and add as “Lenders” under this Agreement in place thereof, one or more Eligible Assignees (each, an “Additional Commitment Lender”) as provided in Section 10.13; provided that such Additional Commitment Lenders shall enter into an Assignment and Assumption pursuant to which such Additional Commitment Lender shall undertake a Commitment (and, if any such Additional Commitment Lender is already a Lender, its Commitment shall be in addition to such Lender’s Commitment hereunder on such date).
(e)    Minimum Extension Requirement.  If (and only if) the total of the Commitments of the Lenders that have agreed to extend their Maturity Date (each, an “Extending Lender”) and the additional Commitments of the Additional Commitment Lenders shall be more than 50% of the aggregate amount of the Commitments in effect immediately prior to such anniversary of the Closing Date, then, effective as of such anniversary of the Closing Date, the Maturity Date of each Extending Lender and of each Additional Commitment Lender shall be extended to the date falling one year 

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after the Existing Maturity Date (except that, if such date is not a Business Day, such Maturity Date as so extended shall be the next preceding Business Day) and each Additional Commitment Lender shall thereupon become a “Lender” for all purposes of this Agreement.
(f)    Conditions to Effectiveness of Extensions.  As a condition precedent to such extension, the Company shall deliver to the Administrative Agent a certificate of each Loan Party dated as of the effective date for such extension (in sufficient copies for each Extending Lender and each Additional Commitment Lender) signed by a Responsible Officer of such Loan Party (i) certifying and attaching the resolutions adopted by such Loan Party approving or consenting to such extension and (ii) in the case of the Company, certifying that, before and after giving effect to such extension, (A) the representations and warranties contained in Article V and the other Loan Documents are true and correct in all material respects (or, in the case of representations and warranties already qualified by materiality, in all respects) on and as of the date of such extension, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects (or, in the case of representations and warranties already qualified by materiality, in all respects) as of such earlier date, and except that for purposes of this Section 2.19, the representations and warranties contained in clauses (a) and (b) of Section 5.05 shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01, and (B) no Default exists or would result therefrom.  In addition, on the Maturity Date of each Non-Extending Lender, the Company shall prepay any Loans outstanding on such date (and pay any additional amounts required pursuant to Section 3.05) to the extent necessary to keep outstanding Loans ratable with any revised Applicable Percentages of the respective Lenders effective as of such date.
(g)    Amendment; Sharing of Payments.  In connection with any extension of the Maturity Date, the Company, the Administrative Agent and each extending Lender may make such amendments to this Agreement as the Administrative Agent determines to be reasonably necessary to evidence the extension. This Section 2.19 shall supersede any provisions in Section 2.14 or Section 10.01 to the contrary.
ARTICLE III     
 
TAXES, YIELD PROTECTION AND ILLEGALITY
3.01    Taxes.
(a)    Payments Free of Taxes.
(i)    Any and all payments by or on account of any obligation of the Company or any Borrower hereunder or under any other Loan Document shall be made free and clear of and without reduction or withholding for any Indemnified Taxes or Other Taxes, provided that if applicable law requires the deduction or withholding of  any Taxes from such payments, then the Administrative Agent, the Company or any Borrower, as applicable, shall be entitled to make such deduction or withholding.
(ii)    If any Borrower, the Company or the Administrative Agent shall be required by the Code to withhold or deduct any Taxes from any payment, then (A) the Administrative Agent shall withhold or make such deductions as are determined by the Administrative Agent to be required, (B) the Administrative Agent  shall timely pay the full amount withheld or deducted to the relevant Governmental Authority in accordance with the Code, and (C) 

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to the extent that the withholding or deduction is made on account of Indemnified Taxes or Other Taxes, the sum payable by such Borrower or the Company shall be increased as necessary so that after any required withholding or the making of all required deductions (including deductions applicable to additional sums payable under this Section) the applicable recipient receives an amount equal to the sum it would have received had no such withholding or deduction for Indemnified Taxes or Other Taxes been made.
(iii)    If any Borrower, the Company or the Administrative Agent shall be required by any applicable laws other than the Code to withhold or deduct any Taxes from any payment, then (A) such Borrower, the Company or the Administrative Agent, as required by such laws, shall withhold or make such deductions as are determined by it to be required, (B) such Borrower, the Company or the Administrative Agent, to the extent required by such laws, shall timely pay the full amount withheld or deducted to the relevant Governmental Authority in accordance with such laws, and (C) to the extent that the withholding or deduction is made on account of Indemnified Taxes or Other Taxes, the sum payable by such  Borrower or the Company shall be increased as necessary so that after any required withholding or the making of all required deductions (including deductions applicable to additional sums payable under this Section) the applicable recipient receives an amount equal to the sum it would have received had no such withholding or deduction for Indemnified Taxes or Other Taxes been made.
(b)    Payment of Other Taxes by the Company and the Borrowers.  Without limiting the provisions of subsection (a) above, the Company and each Borrower shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law.
(c)    (i)    Indemnification by the Company and the Borrowers.  The Company and each Borrower (jointly and severally) shall indemnify the Administrative Agent, each Lender and the L/C Issuer, within 10 days after demand therefor, for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) paid by the Administrative Agent, such Lender or the L/C Issuer, as the case may be, and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability, setting forth in reasonable detail the calculation of such amount, delivered to the Company or any Borrower by a Lender or the L/C Issuer (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender or the L/C Issuer, shall be conclusive absent manifest error.  The Borrowers and the Company (jointly and severally) shall indemnify the Administrative Agent and shall make payment in respect thereof within 10 days after demand therefor, for any amount which a Lender or the L/C Issuer for any reason fails to pay indefeasibly to the Administrative Agent as required pursuant to Section 3.01(c)(ii) below.  Upon making such payment to the Administrative Agent, such Borrower or the Company, as applicable, shall be subrogated to the rights of the Administrative Agent pursuant to Section 3.01(c)(ii)(y) and (z) below against the applicable Lender or the L/C Issuer, other than the right of set-off pursuant to the last sentence of Section 3.01(c)(ii).
(ii)    Indemnification by the Lenders.  Each Lender and the L/C Issuer shall, and does hereby severally indemnify and shall make payment in respect thereof within 10 days after demand therefor, (x) the Administrative Agent, for any Indemnified Taxes or Other Taxes attributable to such Lender and the L/C Issuer (but only to the extent that the Company 

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or any Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes or Other Taxes and without limiting the obligation of the Company and the Borrowers to do so), (y) the Administrative Agent, the Borrowers and the Company for any Taxes attributable to such Lender’s failure to comply with the provisions of Section 10.06(d) relating to the maintenance of a Participant Register and (z) the Administrative Agent, the Borrowers and the Company for any Excluded Taxes attributable to such Lender or the L/C Issuer, in each case, that are payable or paid by the Administrative Agent, such Borrower or the Company in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to any Lender or the L/C Issuer by the Administrative Agent shall be conclusive absent manifest error.  Each Lender and the L/C Issuer hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender or the L/C Issuer under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this clause (ii).
(d)    Evidence of Payments.  As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the Company or any Borrower to a Governmental Authority, the Company or such 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.
(e)    Status of Lenders.
(i)    Any Lender that is entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in which the Company or any Borrower is resident for tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments hereunder or under any other Loan Document shall deliver to the Company (with a copy to the Administrative Agent), at the time or times prescribed by applicable law or reasonably requested by the Company or the Administrative Agent, such properly completed and executed documentation prescribed by applicable law as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Lender, if requested by the Company or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Company or the Administrative Agent as will enable the Company 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 3.01(e)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.
(ii)    Without limiting the generality of the foregoing, in the event that the Company or any Borrower is resident for tax purposes in the United States:
(A)    any Lender that is a U.S. Person shall deliver to the Company and the Administrative Agent on or prior to the date on which such Lender becomes a 

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Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Company or the Administrative Agent), executed originals of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding Tax;
(B)    any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Company 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 Lender becomes a Lender under this Agreement (and from time to time thereafter upon the request of the Company or the Administrative Agent), whichever of the following is applicable:
(I)    duly completed copies of Internal Revenue Service Form W‐8BEN or W-8BEN-E, as applicable claiming eligibility for benefits of an income tax treaty to which the United States is a party,
(II)    duly completed copies of Internal Revenue Service Form W‐8ECI,
(III)    in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under section 881(c) of the Code, (x) a certificate to the effect that such Foreign Lender is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Company or the applicable Borrower within the meaning of section 881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in section 881(c)(3)(C) of the Code and (y) duly completed copies of Internal Revenue Service Form W‐8BEN or W-8BEN-E, as applicable, or
(IV)    to the extent a Foreign Lender is not the beneficial owner IRS Form W-8IMY, accompanied by a Form W-8ECI, W-8BEN, W-8BEN-E, W-9 or any other required information from each beneficial owner, as applicable;
(C)    any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Company 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 Lender becomes a Lender under this Agreement (and from time to time thereafter upon the request of the Company or the Administrative Agent), any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in United States Federal withholding tax duly completed together with such supplementary documentation as may be prescribed by applicable law to permit the Company or the Administrative Agent to determine the withholding or deduction required to be made; and
(D)    if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Company and the Administrative Agent at the time or 

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times prescribed by law and at such time or times reasonably requested by the Company 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 Company or the Administrative Agent as may be necessary for the Company 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 Credit Agreement.
(iii)    Each Lender agrees that if any form or certification it previously delivered pursuant to this Section 3.01(e) expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Company and the Administrative Agent in writing of its legal inability to do so.
(f)    Treatment of Certain Refunds.  Unless required by applicable Laws, at no time shall the Administrative Agent have any obligation to file for or otherwise pursue on behalf of a Lender or the L/C Issuer, or have any obligation to pay to any Lender or the L/C Issuer, any refund of Taxes withheld or deducted from funds paid for the account of such Lender or the L/C Issuer, as the case may be.  If the Administrative Agent, any Lender or the L/C Issuer determines, in its sole discretion, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Company or any Borrower or with respect to which the Company or any Borrower has paid additional amounts pursuant to this Section, it shall pay to such Borrower, as applicable, an amount equal to such refund (but only to the extent of indemnity payments made, or additional amounts paid, by the Company or such Borrower under this Section with respect to the Taxes or Other Taxes giving rise to such refund), net of all out‐of‐pocket expenses of the Administrative Agent, such Lender or the L/C Issuer, as the case may be, and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund), provided that the Company and each Borrower, upon the request of the Administrative Agent, such Lender or the L/C Issuer, agrees to repay the amount paid over to the Company or such Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent, such Lender or the L/C Issuer in the event the Administrative Agent, such Lender or the L/C Issuer is required to repay such refund to such Governmental Authority.  This subsection shall not be construed to require the Administrative Agent, any Lender or the L/C Issuer to make available its tax returns (or any other information relating to its taxes that it deems confidential) to the Company or any Borrower or any other Person.
(g)    Survival.  Each party’s obligations under this Section 3.01 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender or the L/C Issuer, the termination of the Commitments and the repayment, satisfaction or discharge of all other Obligations.
3.02    Illegality.  If any Lender determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending Office to make, maintain or fund Loans whose interest is determined by reference to the Eurodollar Rate, or to determine or charge interest rates based upon the Eurodollar Rate, or any Governmental Authority has imposed material restrictions on the authority of such Lender to purchase or sell, or to take deposits of, Dollars in the London interbank market, then, on notice thereof by such Lender to the Company through the Administrative Agent, 

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(i) any obligation of such Lender to make or continue Eurodollar Rate Loans or to convert Base Rate Committed Loans to Eurodollar Rate Loans, shall be suspended and (ii) if such notice asserts the illegality of such Lender making or maintaining Base Rate Loans the interest rate on which is determined by reference to the Eurodollar Rate component of the Base Rate, the interest rate on such Base Rate Loans of such Lender shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to the Eurodollar Rate component of the Base Rate, in each case until such Lender notifies the Administrative Agent and the Company that the circumstances giving rise to such determination no longer exist.  Upon receipt of such notice, (x) the Company and the Borrowers (jointly and severally) shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all such Eurodollar Rate Loans of such Lender to Base Rate Loans (the interest rate on which Base Rate Loans of such Lender shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to the Eurodollar Rate component of the Base Rate), immediately and (y) if such notice asserts the illegality of such Lender determining or charging interest rates based upon the Eurodollar Rate, the Administrative Agent shall during the period of such suspension compute the Base Rate applicable to such Lender without reference to the Eurodollar Rate component thereof until the Administrative Agent is advised in writing by such Lender that it is no longer illegal for such Lender to determine or charge interest rates based upon the Eurodollar Rate.  Upon any such prepayment or conversion, the Company and the Borrowers (jointly and severally) shall also pay accrued interest on the amount so prepaid or converted.
3.03    Inability to Determine Rates.
(a)    If in connection with any request for a Eurodollar Rate Loan or a conversion thereto (i) the Administrative Agent determines that (A) Dollar deposits are not being offered to banks in the London interbank eurodollar market for the applicable amount and Interest Period of such Eurodollar Rate Loan, or (B)(x) adequate and reasonable means do not exist for determining the Eurodollar Rate for any requested Interest Period with respect to a proposed Eurodollar Rate Loan or in connection with an existing or proposed Base Rate Loan and (y) the circumstances described in Section 3.03(c)(i) do not apply (in each case with respect to clause (i), “Impacted Loans”), or (ii) the Administrative Agent or the Required Lenders determine that for any reason the Eurodollar Rate for the Interest Period with respect to a proposed Eurodollar Rate Loan does not adequately and fairly reflect the cost to such Lenders of funding such Eurodollar Rate Loan, the Administrative Agent will promptly so notify the Company and each Lender.  Thereafter, (x) the obligation of the Lenders to make or maintain Eurodollar Rate Loans shall be suspended (to the extent of the affected Eurodollar Rate Loans or Interest Periods), and (y) in the event of a determination described in the preceding sentence with respect to the Eurodollar Rate component of the Base Rate, the utilization of the Eurodollar Rate component in determining the Base Rate shall be suspended, in each case until the Administrative Agent (or, in the case of a determination by the Required Lenders described in clause (ii) of Section 3.03(a), until the Administrative Agent upon instruction of the Required Lenders) revokes such notice.  Upon receipt of such notice, the applicable Borrower may revoke any pending request for a Borrowing of or conversion to Eurodollar Rate Loans (to the extent of the affected Eurodollar Rate Loans or Interest Periods) or, failing that, will be deemed to have converted such request into (x) in the case of a Committed Loan, a request for a Committed Borrowing of Base Rate Loans (y) in the case of a Swing Line Loan, a request for a Swing Line Borrowing of Base Rate Loans and (z) in the case of a New Vehicle Swing Line Loan, a request for a New Vehicle Swing Line Borrowing of Base Rate Loans, in each case, in the amount specified therein.
(b)    If the Administrative Agent has made the determination described in clause (i) of Section 3.03(a), the Administrative Agent, in consultation with the Company, may establish an alternative interest rate option for the Impacted Loans, in which case, such alternative interest rate 

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option shall be available with respect to the Impacted Loans until (1) the Administrative Agent revokes the notice delivered with respect to the Impacted Loans under clause (a)(i) of this Section, (2) the Administrative Agent or the Required Lenders notify the Administrative Agent and the Company that such alternative interest rate does not adequately and fairly reflect the cost to such Lenders of funding the Impacted Loans, or (3) any Lender determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for such Lender or its applicable Lending Office to make, maintain or fund Loans whose interest is determined by reference to such alternative rate of interest or to determine or charge interest rates based upon such rate or any Governmental Authority has imposed material restrictions on the authority of such Lender to do any of the foregoing and provides the Administrative Agent and the Company written notice thereof.
(c)    Notwithstanding anything to the contrary in this Agreement or any other Loan Documents, if the Administrative Agent determines (which determination shall be conclusive absent manifest error), or the Company or Required Lenders notify the Administrative Agent (with, in the case of the Required Lenders, a copy to the Company) that the Company or Required Lenders (as applicable) have determined, that:
(i)    adequate and reasonable means do not exist for ascertaining LIBOR for any requested Interest Period, including, without limitation, because the LIBOR Screen Rate is not available or published on a current basis and such circumstances are unlikely to be temporary; or 
(ii)    the administrator of the LIBOR Screen Rate or a Governmental Authority having jurisdiction over the Administrative Agent has made a public statement identifying a specific date after which LIBOR or the LIBOR Screen Rate shall no longer be made available, or used for determining the interest rate of loans (such specific date, the “Scheduled Unavailability Date”), or
(iii)    syndicated loans currently being executed, or that include language similar to that contained in this Section 3.03, are being executed or amended (as applicable) to incorporate or adopt a new benchmark interest rate to replace LIBOR,
then, reasonably promptly after such determination by the Administrative Agent or receipt by the Administrative Agent of such notice, as applicable, the Administrative Agent and the Company shall endeavor to establish an alternate benchmark rate (including any mathematical or other adjustments to the benchmark (if any) incorporated therein), giving due consideration to any evolving or then existing convention for similar U.S. dollar denominated syndicated credit facilities for such alternative benchmarks (any such proposed rate, a “LIBOR Successor Rate”), and shall enter into an amendment to this Agreement to reflect such alternative benchmark rate together with the applicable LIBOR Successor Rate Conforming Changes and any such amendment shall become effective at 5:00 p.m. on the fifth Business Day after the Administrative Agent shall have posted such proposed amendment to all Lenders and the Company unless, prior to such time, Lenders comprising the Required Lenders have delivered to the Administrative Agent written notice that such Required Lenders do not accept such amendment. Such LIBOR Successor Rate shall be applied in a manner consistent with market practice; provided that to the extent such market practice is not administratively feasible for the Administrative Agent, such LIBOR Successor Rate shall be applied in a manner as otherwise reasonably determined by the Administrative Agent.

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If no LIBOR Successor Rate has been established and the circumstances under clause (c)(i) above exist or the Scheduled Unavailability Date has occurred (as applicable), the Administrative Agent will promptly so notify the Company and each Lender.  Thereafter, (x) the obligation of the Lenders to make or maintain Eurodollar Rate Loans shall be suspended (to the extent of the affected Eurodollar Rate Loans or Interest Periods), and (y) the Eurodollar Rate component shall no longer be utilized in determining the Base Rate, in each case until such time as the LIBOR Successor Rate is established as provided above.  Upon receipt of such notice, the Borrowers may revoke any pending request for a Borrowing of, conversion to or continuation of Eurodollar Rate Loans (to the extent of the affected Eurodollar Rate Loans or Interest Periods) or, failing that, will be deemed to have converted such request into a request for a Borrowing of Base Rate Loans (subject to the foregoing clause (y)) in the amount specified therein.  Notwithstanding anything else herein, any definition of LIBOR Successor Rate shall provide that in no event shall such LIBOR Successor Rate be less than zero for purposes of this Agreement.

3.04    Increased Costs.
(a)    Increased Costs Generally.  If any Change in Law shall:
(i)    impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender (except any reserve requirement contemplated by Section 3.04(e)) or the L/C Issuer;
(ii)    subject any Lender or the L/C Issuer to any tax of any kind whatsoever with respect to this Agreement, any Letter of Credit, any participation in a Letter of Credit or any Eurodollar Rate Loan made or participated in by it, or change the basis of taxation of payments to such Lender or the L/C Issuer in respect thereof (except, in each case, for Indemnified Taxes or Other Taxes covered by Section 3.01 and the imposition of, or any change in the rate of, any Excluded Tax payable by such Lender or the L/C Issuer); or
(iii)    impose on any Lender or the L/C Issuer or the London interbank market any other condition, cost or expense affecting this Agreement or Eurodollar Rate Loans made or participated in by such Lender or any Letter of Credit or participation therein;
and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Loan the interest on which is determined by reference to the Eurodollar Rate (or of maintaining its obligation to make or participate in any such Loan), or to increase the cost to such Lender or the L/C Issuer of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender or the L/C Issuer hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or the L/C Issuer, the Company and the Borrowers (jointly and severally) will pay to such Lender or the L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or the L/C Issuer, as the case may be, for such additional costs incurred or reduction suffered.
(b)    Capital Requirements.  If any Lender or the L/C Issuer determines that any Change in Law affecting such Lender or the L/C Issuer or any Lending Office of such Lender or such Lender’s or the L/C Issuer’s holding company, if any, regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s or the L/C Issuer’s capital or on the capital of such Lender’s or the L/C Issuer’s holding company, if any, as a consequence of this 

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Agreement, the Commitment of such Lender or the Loans made by, or participations in Loans or Letters of Credit held by, such Lender, or the Letters of Credit issued by the L/C Issuer, to a level below that which such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s or the L/C Issuer’s policies and the policies of such Lender’s or the L/C Issuer’s holding company with respect to capital adequacy and liquidity), then from time to time the Company and the Borrowers (jointly and severally) will pay to such Lender or the L/C Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or the L/C Issuer or such Lender’s or the L/C Issuer’s holding company for any such reduction suffered.
(c)    Certificates for Reimbursement.  A certificate of a Lender or the L/C Issuer setting forth in reasonable detail the calculation of the amount or amounts necessary to compensate such Lender or the L/C Issuer or its holding company, as the case may be, as specified in subsection (a) or (b) of this Section and delivered to the Company shall be conclusive absent demonstrable error.  The Company and the Borrowers (jointly and severally) shall pay such Lender or the L/C Issuer, as the case may be, the amount shown as due on any such certificate within 10 days after receipt thereof.
(d)    Delay in Requests.  Failure or delay on the part of any Lender or the L/C Issuer to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a waiver of such Lender’s or the L/C Issuer’s right to demand such compensation, provided that neither the Company nor any Borrower shall be required to compensate a Lender or the L/C Issuer pursuant to the foregoing provisions of this Section for any increased costs incurred or reductions suffered more than six months prior to the date that such Lender or the L/C Issuer, as the case may be, notifies the Company of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or the L/C Issuer’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six‐month period referred to above shall be extended to include the period of retroactive effect thereof).
(e)    Reserves on Eurodollar Rate Loans.  The Company and each Borrower, jointly and severally, shall pay to each Lender, as long as such Lender shall be required to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency funds or deposits (currently known as “Eurocurrency liabilities”), additional interest on the unpaid principal amount of each Eurodollar Rate Loan equal to the actual costs of such reserves allocated to such Loan by such Lender (as determined by such Lender in good faith, which determination shall be conclusive absent manifest error), which shall be due and payable on each date on which interest is payable on such Loan, provided the Company shall have received at least 10 days’ prior notice (with a copy to the Administrative Agent) of such additional interest from such Lender.  If a Lender fails to give notice 10 days prior to the relevant Interest Payment Date, such additional interest shall be due and payable 10 days from receipt of such notice.
3.05    Mitigation Obligations; Replacement of Lenders.
(a)    Designation of a Different Lending Office.  If any Lender requests compensation under Section 3.04, or any Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, then such Lender shall use reasonable efforts to designate a different Lending Office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to 

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Section 3.01 or 3.04, as the case may be, in the future, or eliminate the need for the notice pursuant to Section 3.02, as applicable, and (ii) in each case, would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.  The Borrowers (jointly and severally) hereby agree to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.
(b)    Notwithstanding anything contained herein to the contrary, a Lender shall not be entitled to any compensation pursuant to Section 3.04 or to exercise the rights under Section 3.02 to the extent such Lender is not generally imposing such charges or requesting such compensation from, or is not exercising such rights against, as applicable, other similarly situated borrowers under similar circumstances.
(c)    Replacement of Lenders.  If any Lender requests compensation under Section 3.04, or if the Company or any Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender ceases to make Eurodollar Rate Loans as a result of any condition described in Section 3.02 or 3.03, or if any Lender becomes a Non-Consenting Lender, the Company may, at its expense, replace such Lender in accordance with Section 10.13.  If any Lender is a Defaulting Lender, the Company may, at its expense, replace such Defaulting Lender or terminate the applicable Commitment of such Defaulting Lender in accordance with Section 10.13.
3.06    Survival.  All of the Company’s and the Borrowers’ obligations under this Article III shall survive termination of the Aggregate Commitments and repayment of all other Obligations hereunder, and resignation of the Administrative Agent.
ARTICLE IV     
 
CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
4.01    Conditions of Initial Credit Extension.  The obligation of the L/C Issuer and each Lender to make its initial Credit Extension hereunder is subject to satisfaction (or waiver) of the following conditions precedent:
(a)    The Administrative Agent’s receipt of the following, each of which shall be originals, telecopies or “pdf” files (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Loan Party, each dated as of  the Closing Date (or, in the case of certificates of governmental officials, as of a recent date acceptable to the Administrative Agent) and each in form and substance reasonably satisfactory to the Administrative Agent and each of the Lenders:
(i)    executed counterparts of (A) this Agreement and (B) the Guaranties;
(ii)    a Note executed by the Borrowers in favor of each Lender requesting a Note;
(iii)    such customary certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as the Administrative Agent may reasonably require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents to which such Loan Party is a party;

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(iv)    such documents and certifications as the Administrative Agent may reasonably require to evidence that each Loan Party is duly organized or formed, and that each Loan Party is validly existing and (if available) in good standing in the jurisdiction of its incorporation or organization;
(v)    a customary opinion of Troutman Sanders LLP, counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, as to such matters concerning the Loan Parties and the Loan Documents as the Required Lenders may reasonably request;
(vi)    a certificate of a Responsible Officer of each Loan Party either (A) attaching copies of all consents, licenses and approvals required by any Governmental Authority or any other Person in connection with the execution, delivery and performance by such Loan Party and the validity against such Loan Party of the Loan Documents to which it is a party, and such consents, licenses and approvals shall be in full force and effect, or (B) stating that no such consents, licenses or approvals are so required;
(vii)    a certificate signed by a Responsible Officer of the Company certifying (A) that the conditions specified in Sections 4.02(a) and (b) have been satisfied and (B) that there has not occurred since February 28, 2019 any event or condition that has had or could be reasonably expected, either individually or in the aggregate, to have a Material Adverse Effect; and
(viii)    evidence that the Existing Credit Agreement has been or concurrently with the Closing Date is being terminated.
(b)    (i) Upon the reasonable request of any Lender made at least ten days prior to the Closing Date, the Company shall have provided to such Lender the documentation and other information so requested in connection with applicable “know your customer” and anti-money-laundering rules and regulations, including the PATRIOT Act, in each case at least five days prior to the Closing Date; and (ii) at least five days prior to the Closing Date, if any Borrower qualifies as a “legal entity customer” under the Beneficial Ownership Regulation, it shall deliver a Beneficial Ownership Certification in relation to such Borrower.
(c)    Any fees required to be paid on or before the Closing Date pursuant to the Fee Letters shall have been paid.
(d)    Unless waived by the Administrative Agent, the Company shall have paid all reasonable fees, charges and disbursements of counsel to the Administrative Agent required to be paid hereunder to the extent invoiced in reasonable detail at least one (1) Business Day prior to the Closing Date (or such later date as the Company may reasonably agree).
Without limiting the generality of the provisions of the last paragraph of Section 9.03, for purposes of determining compliance with the conditions specified in this Section 4.01, each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required hereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto.
4.02    Conditions to all Credit Extensions (other than pursuant to a Payment Commitment).  The obligation of each Lender to honor any Request for Credit Extension (other than pursuant to a Payment 

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Commitment or a Committed Loan Notice requesting only a conversion of Committed Loans to the other Type) is subject to the following conditions precedent:
(a)    The representations and warranties of (i) the Company and the Borrowers contained in Article V and (ii) each Loan Party contained in each other Loan Document or in any document furnished at any time under or in connection herewith or therewith, shall be true and correct in all material respects (or, in the case of representations and warranties already qualified by materiality, in all respects) on and as of the date of such Credit Extension, except (A) to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects (or, in the case of representations and warranties already qualified by materiality, in all respects) as of such earlier date, (B) that for purposes of this Section 4.02, the representations and warranties contained in subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 and (C) if the proceeds of such Loan are to be used to support a Loan Party’s commercial paper program, the representation set forth in Section 5.05(c) need not be made.
(b)    No Default shall exist or would result from such proposed Credit Extension or the application of the proceeds thereof.
(c)    The Administrative Agent and, if applicable, the L/C Issuer, the Swing Line Lender or the New Vehicle Swing Line Lender shall have received a Request for Credit Extension in accordance with the requirements hereof.
(d)    If the applicable Borrower is a Designated Borrower, then the conditions of Section 2.15 to the designation of such Borrower as a Designated Borrower shall have been met.
Each Request for Credit Extension (other than a Committed Loan Notice requesting only a conversion of Committed Loans to the other Type) submitted by the Company shall be deemed to be a representation and warranty that the conditions specified in Sections 4.02(a) and (b) have been satisfied on and as of the date of the applicable Credit Extension.
4.03    Conditions to all New Vehicle Swing Line Borrowings pursuant to a Payment Commitment.  The obligation of the New Vehicle Swing Line Lender to honor any request for a New Vehicle Swing Line Borrowing pursuant to a Payment Commitment is subject to the following conditions precedent:
(a)    To the extent required pursuant to the terms of such Payment Commitment, the Administrative Agent shall have received a manufacturer/distributor invoice, cash draft, electronic record, depository transfer check, sight draft, or such other documentation as may be specified in such Payment Commitment, identifying the vehicles delivered or to be delivered to the applicable Borrower; and
(b)    any other conditions precedent set forth in such Payment Commitment.
ARTICLE V     
 
REPRESENTATIONS AND WARRANTIES
Each of the Company, the Revolving Borrower and each other Borrower represents and warrants to the Administrative Agent and the Lenders that:

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

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(b)    The unaudited consolidated balance sheet of the Company and its Subsidiaries as at November 30, 2018, and the related consolidated statements of earnings and cash flows for the fiscal quarter ended on that date (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, (ii) fairly present in all material respects the financial condition of the Company and its Subsidiaries (on a consolidated basis) as of the date thereof and their results of operations for the period covered thereby, subject, in the case of clauses (i) and (ii), to the absence of footnotes and to normal year‐end audit adjustments, and (iii) show, in each case to the extent required by GAAP, all material indebtedness and other material liabilities, direct or contingent, of the Company and its Subsidiaries as of the date of such financial statements, including liabilities for taxes, material commitments and Indebtedness.
(c)    Since the later of (i) the date of the Audited Financial Statements and (ii) the date of the most recent financial statements delivered pursuant to in Section 6.01(a), there has been no event or circumstance, either individually or in the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect.
5.06    Litigation.  There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of the Company, threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority, by or against the Company or any of its Subsidiaries or against any of their properties or revenues that (a) purport to affect or pertain to this Agreement or any other Loan Document or any of the transactions contemplated hereby or (b) either individually or in the aggregate could reasonably be expected to have a Material Adverse Effect (in each case (except as described in the proviso to this sentence) other than such actions, suits, proceedings, claims or disputes (i) set forth on Schedule 5.06 or (ii) that have been disclosed in writing to the Administrative Agent and the Lenders pursuant to Section 6.03(b)).
5.07    No Default.  Neither the Company 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.
5.08    Ownership of Property.  Each of the Company and each Subsidiary has good record and marketable title in fee simple to, or valid leasehold interests in or other contractual rights to use, all real property necessary or used in the ordinary conduct of its business, except where the failure to have such title, interest or other right could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  
5.09    [Reserved].  
5.10    [Reserved].  
5.11    [Reserved].  
5.12    ERISA Compliance.
(a)    Except as would not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect (i) each Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other Federal or state Laws and (ii) each Plan that is intended to qualify under Section 401(a) of the Code has received a favorable determination letter from the IRS or an application for such a letter is currently being processed by the IRS with respect thereto and, to the best knowledge of the Company, nothing has occurred which would prevent, or cause the loss of, such qualification.  The Company and each ERISA Affiliate have made all required 

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contributions to each Plan subject to Section 412 of the Code, and no application for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has been made with respect to any Plan.
(b)    There are no pending or, to the knowledge of the Company, threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that could reasonably be expected to have a Material Adverse Effect.  There has been no non‐exempt prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan that has had or could reasonably be expected to have a Material Adverse Effect.
(c)    (i)  No ERISA Event has occurred or is reasonably expected to occur that could reasonably be expected to have a Material Adverse Effect; and (ii) as of the most recent certification date for any Pension Plan, the certified adjusted funding target attainment percentage (as defined in Section 436(j)(2) of the Code) for such Pension Plan is 60% or higher and neither the Company nor any ERISA Affiliate knows of any  facts or circumstances that could reasonably be expected to cause the adjusted funding target attainment percentage for any Pension Plan to drop below 60% as of the most recent valuation date for such Pension Plan; (iii) neither the Company nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iv) neither the Company nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in such liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v) neither the Company nor any ERISA Affiliate has engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA.
(d)    As of the Closing Date, the Borrowers are not and will not be using “plan assets” (within the meaning of 29 CFR § 2510.3-101, as modified by Section 3(42) of ERISA) of one or more Benefit Plans in connection with the Loans, the Letters of Credit or the Commitments.
5.13    Subsidiaries; Equity Interests.  As of the Closing Date, the Company has no Subsidiaries other than those specifically disclosed in Part (a) of Schedule 5.13, and all of the outstanding Equity Interests in such Subsidiaries that are owned by the Company or any Subsidiary have been validly issued, are fully paid and nonassessable and are owned by such Person in the amounts specified on Part (a) of Schedule 5.13 free and clear of all Liens except Liens permitted by Section 7.01.  As of the Closing Date, the Company has no equity investments in any other corporation or entity other than those specifically disclosed in Part (b) of Schedule 5.13.  All of the outstanding Equity Interests in the Company have been validly issued and are fully paid and nonassessable.
5.14    Margin Regulations; Investment Company Act.
(a)    Neither the Company nor any Borrower is engaged or will engage, principally or as one of its important activities, in the business of purchasing or carrying margin stock (within the meaning of Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying margin stock.
(b)    None of the Company, any Person Controlling the Company, or any Subsidiary is or is required to be registered as an “investment company” under the Investment Company Act of 1940.
5.15    Disclosure. 

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No report, financial statement, certificate or other written information furnished by or on behalf of any Loan Party (other than projected financial information, pro forma financial information and information of a general economic or industry nature) to the Administrative Agent or any Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder or under any other Loan Document (in each case, as modified or supplemented by other written information so furnished), when taken as a whole, contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein (when taken as a whole), in the light of the circumstances under which they were made, not materially misleading; provided that, with respect to projected and pro forma financial information, the Company represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time of preparation and delivery; it being understood that such projections may vary from actual results and that such variances may be material.  As of the Closing Date, the information included in the Beneficial Ownership Certification, if applicable, is true and correct in all respects.

5.16    Compliance with Laws.  Each of the Company and each Subsidiary is in compliance in all material respects with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted or (b) the failure to comply therewith, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.
5.17    [Reserved]  
5.18    [Reserved].  
5.19    OFAC.
None of the Loan Parties, nor any of their Subsidiaries, nor, to the knowledge of the Company or any Borrower, any director, officer, employee, or agent of the Company or any Subsidiary, is an individual or entity that is a Sanctioned Person.
5.20    Anti-Corruption Laws.
The Loan Parties and their Subsidiaries have conducted their businesses in compliance in all material respects with the United States Foreign Corrupt Practices Act of 1977 and other similar anti-corruption Laws in other jurisdictions that may be applicable to the Loan Parties and their Subsidiaries from time to time and have instituted and maintained policies and procedures reasonably designed to promote and achieve compliance with the United States Foreign Corrupt Practices Act of 1977 and, in the case of any business from time to time conducted outside of the United States, such other similar anti-corruption laws.
5.21    No EEA Financial Institutions.
No Loan Party is an EEA Financial Institution.
ARTICLE VI     
 
AFFIRMATIVE COVENANTS
So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation (other than contingent indemnification obligations as to which no claim has been asserted) hereunder shall remain 

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unpaid or unsatisfied, or any Letter of Credit (other than Letters of Credit which have been Cash Collateralized) shall remain outstanding, the Company shall, and shall (except in the case of the covenants set forth in Sections 6.01, 6.02, 6.03 and 6.12) cause the Revolving Borrower and each other Subsidiary to:
6.01    Financial Statements.  Deliver to the Administrative Agent (for further distribution to each Lender):
(a)    as soon as available, but in any event within 90 days after the end of each fiscal year of the Company (or if earlier, 15 days after the date required to be filed with the SEC) (commencing with the fiscal year ended February 28, 2020), a consolidated balance sheet of the Company and its Subsidiaries as at the end of such fiscal year, and the related consolidated statements of earnings, shareholders’ equity and cash flows for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail and prepared in accordance with GAAP, audited and accompanied by a report and opinion of “Big 4” accounting firm (or another independent certified public accountant of nationally recognized standing reasonably acceptable to the Administrative Agent), which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any “going concern” or like qualification or exception (other than a “going concern” statement, explanatory note or like qualification or exception resulting solely from an upcoming maturity date under this Agreement or any other Indebtedness occurring within one year from the time such opinion is delivered) or any qualification or exception as to the scope of such audit; and
(b)    as soon as available, but in any event within 45 days after the end of each of the first three fiscal quarters of each fiscal year of the Company (or if earlier, five days after the date required to be filed with the SEC) (commencing with the fiscal quarter ended May 31, 2019), a consolidated balance sheet of the Company and its Subsidiaries as at the end of such fiscal quarter, and the related consolidated statements of earnings and cash flows for such fiscal quarter and for the portion of the Company’s fiscal year then ended, setting forth in each case in comparative form the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, all in reasonable detail, certified by a Responsible Officer of the Company as fairly presenting the financial condition, results of operations and cash flows of the Company and its Subsidiaries in accordance with GAAP, subject only to normal year‐end audit adjustments and the absence of footnotes.
As to any information contained in materials furnished pursuant to Section 6.02(c), the Company shall not be separately required to furnish such information under clause (a) or (b) above, but the foregoing shall not be in derogation of the obligation of the Company to furnish the information and materials described in clauses (a) and (b) above at the times specified therein.
6.02    Certificates; Other Information.  Deliver to the Administrative Agent and each Lender (or, if requested by the Company in a notice to the Administrative Agent with respect to any specific item, deliver such item to the Administrative Agent (for distribution to each Lender)), in form and detail satisfactory to the Administrative Agent and the Required Lenders:
(a)    concurrently with the delivery of the financial statements referred to in Sections 6.01(a) and (b), a duly completed Compliance Certificate signed by a Responsible Officer of the Company which shall also contain a calculation of the Consolidated Leverage Ratio as of the last day of the applicable period (which delivery may, unless the Administrative Agent or a Lender 

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requests executed originals, be by electronic communication including fax or email and shall be deemed to be an original authentic counterpart thereof for all purposes);
(b)    promptly after any request by the Administrative Agent or any Lender, copies of any detailed audit reports or recommendations submitted in writing to the board of directors (or the audit committee of the board of directors) of the Company by independent accountants in connection with the accounts or books of the Company or any Subsidiary, or any audit of any of them;
(c)    promptly after the same are sent or filed, as applicable, copies of each annual report, proxy or financial statement or other report or communication sent by or on behalf of the Company to the stockholders of the Company, and notification (by facsimile or electronic mail) of the filing of each annual report on Form 10‐K, quarterly report on Form 10‐Q, current report on Form 8‐K, or registration statement by the Company with the SEC under Section 13 or 15(d) of the Securities Exchange Act of 1934, in each case to the extent not otherwise required to be delivered to the Administrative Agent pursuant hereto;
(d)    promptly, and in any event within five Business Days, after receipt thereof by the Company or any Subsidiary, copies of each notice or other correspondence received from the SEC (or comparable agency in any applicable non‐U.S. jurisdiction) concerning any formal investigation by such agency regarding financial or other operational results of the Company or any Subsidiary thereof; 
(e)    promptly following any request therefor, information and documentation reasonably requested by the Administrative Agent or any Lender for purposes of compliance with applicable “know your customer” requirements under the PATRIOT Act, the Beneficial Ownership Regulation or other applicable anti-money laundering laws; and
(f)    within a reasonable period of time after any request by the Administrative Agent, such additional information regarding the business, financial or corporate affairs of the Company or any Subsidiary, or compliance with the terms of the Loan Documents, as the Administrative Agent or the Required Lenders may from time to time reasonably request.
Documents required to be delivered pursuant to Section 6.01(a) or (b) or Section 6.02(c) (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Company posts such documents, or provides a link thereto on the Company’s website on the Internet at the website address listed on Schedule 10.02; or (ii) on which such documents (A) are available on the website of the SEC at http://www.sec.gov or (B) are posted on the Company’s behalf on another Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third‐party website or whether sponsored by the Administrative Agent); provided that in the case of documents that are not available on http://www.sec.gov, (i) the Company shall deliver paper copies of such documents to the Administrative Agent or any Lender that requests in writing the Company to deliver such paper copies until a written request to cease delivering paper copies is given by the Administrative Agent or such Lender and (ii) the Company shall notify the Administrative Agent and each Lender (or if requested by the Company in writing to the Administrative Agent with respect to any specific items, the Company shall notify the Administrative Agent of such posting and the Administrative Agent shall thereafter notify the Lenders of such posting) (by facsimile or electronic mail) of the posting of any such documents and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft 

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copies) of such documents.  The Administrative Agent shall have no obligation to request the delivery of or to maintain paper copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Company with any such request by a Lender for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such documents.
The Company and each Borrower hereby acknowledge that (a) the Administrative Agent and/or the Arrangers may, but shall not be obligated to, make available to the Lenders and the L/C Issuer materials and/or information provided by or on behalf of the Company and the Borrowers hereunder (collectively, “Borrower Materials”) by posting the Borrower Materials on SyndTrak or another similar electronic system (the “Platform”) and (b) certain of the Lenders (each a “Public Lender”) may have personnel who do not wish to receive material non-public information with respect to the Company and the Borrowers or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such Persons’ securities.  The Company and each Borrower hereby agree that (w) all Borrower Materials that are to be made available to Public Lenders shall be clearly and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC”, the Company and each Borrower shall be deemed to have authorized the Administrative Agent, the Arrangers, the L/C Issuer and the Lenders to treat such Borrower Materials as not containing any material non‐public information with respect to the Company or such Borrower or its securities for purposes of United States Federal and state securities laws (provided, however, that to the extent such Borrower Materials constitute Information, they shall be treated as set forth in Section 10.07); (y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Side Information”; and (z) the Administrative Agent and the Arrangers shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Side Information”.
6.03    Notices.  Promptly after a Responsible Officer has obtained knowledge thereof, notify the Administrative Agent (and the Administrative Agent shall thereafter notify the Lenders of such notice):
(a)    of the occurrence and continuation of any Default;
(b)    of (i) any breach or non performance of, or any default under, any Contractual Obligation of the Company or any Subsidiary that could reasonably be expected to have a Material Adverse Effect, (ii) any non-frivolous action, suit, proceeding, claim or dispute pending or, to the knowledge of the Company, threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority, by or against the Company or any of its Subsidiaries or against any of their properties or revenues that could reasonably be expected to have a Material Adverse Effect; (iii) any material development in any such action, suit, proceeding, claim or dispute; and (iv) any other matter that has resulted or could reasonably be expected to result in a Material Adverse Effect;
(c)    of the occurrence of any ERISA Event that could reasonably be expected to result in liability of the Company or any Subsidiary under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in the aggregate amount in excess of the Threshold Amount; and
(d)    of any material change in accounting policies or financial reporting practices by the Company that is not described in the financial statements referred to in Sections 6.01(a) and (b), other than any such change required by GAAP.

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Each notice pursuant to this Section shall be accompanied by a statement of a Responsible Officer of the Company setting forth details of the occurrence referred to therein and stating what action the Company has taken and proposes to take with respect thereto.  Each notice pursuant to Section 6.03(a) shall describe with particularity any and all provisions of this Agreement and any other Loan Document that have been breached.
6.04    Payment of Taxes.  Pay, discharge or otherwise satisfy as the same shall become due and payable, all its tax liabilities, assessments and governmental charges or levies upon it or its properties or assets, including vehicles, unless the same are being contested in good faith by appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP are being maintained by the Company or such Subsidiary, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.
6.05    Preservation of Existence, Etc.  (a) Preserve, renew and maintain in full force and effect its legal existence under the Laws of the jurisdiction of its organization except in a transaction permitted by Section 7.02 or if otherwise Disposed of in a transaction not prohibited hereunder; (b) take all reasonable action to maintain its good standing (if applicable) and all rights, privileges, permits, licenses and franchises, necessary or desirable in the normal conduct of its business, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect; (c) preserve or renew all of its registered patents, trademarks, trade names and service marks, the non‐preservation or non‐renewal of which could reasonably be expected to have a Material Adverse Effect; and (d) if applicable, take all reasonable action to preserve and maintain, in accordance with its standard policies and procedures, all manufacturer statements of origin, certificates of origin, certificates of title or ownership and other customary vehicle title documentation necessary or desirable in the normal conduct of its business except as otherwise permitted hereunder.
6.06    Maintenance of Properties.  Except where the failure to do so could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, (a) maintain, preserve and protect all of its properties and equipment necessary in the operation of its business in good working order and condition, ordinary wear and tear excepted and casualty or condemnation excepted; (b) make all necessary repairs thereto and renewals and replacements thereof; and (c) use the standard of care typical in the industry in the operation and maintenance of its facilities.
6.07    Maintenance of Insurance.  Maintain with financially sound and reputable insurance companies (including self-insurance) insurance with respect to its properties and business against such casualties and contingencies as are customarily insured against by businesses engaged in similar activities in similar geographic areas and in amounts, containing such terms, in such forms and for such periods as are customary for similar businesses in all material respects.
6.08    Compliance with Laws and Contractual Obligations.  Comply in all material respects with the requirements of all Laws and all orders, writs, injunctions and decrees of any Governmental Authority and all Contractual Obligations applicable to it or to its business or property, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree or Contractual Obligation (other than the Loan Documents) is being contested in good faith by appropriate proceedings diligently conducted; or (b) the failure to comply therewith could not reasonably be expected to have a Material Adverse Effect.
6.09    Books and Records.  Maintain proper books of record and account, in which full, true and correct entries shall be made, in a manner to allow financial statements to be prepared in conformity with GAAP (or, in the case of Foreign Subsidiaries, in conformity with generally accepted accounting principles 

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that are applicable in their respective jurisdictions of organization) consistently applied in respect of all financial transactions and matters involving the assets and business of the Company or such Subsidiary, as the case may be, including, if applicable and in accordance with the standard policies and procedures of the Company or such Subsidiary, as the case may be, books and records specifying the year, make, model, cost, price, location and vehicle identification number of each vehicle owned by the Company or such Subsidiary.
6.10    Inspection Rights.  Permit representatives and independent contractors of the Administrative Agent and each Lender, in each case at the expense of the Administrative Agent or such Lender, to visit and inspect any of its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants (subject to such accountants’ customary policies and procedures), all at such reasonable times during normal business hours as may be reasonably requested upon reasonable advance notice to the Company and (unless an Event of Default exists) no more than once during any period of 12 consecutive months; provided, however, that (i) unless an Event of Default exists, only the Administrative Agent on behalf of the Lenders may exercise rights under this Section 6.10, (ii) when an Event of Default exists the Administrative Agent or any Lender (or any of their respective representatives or independent contractors) may do any of the foregoing at the expense of the Company at any time during normal business hours and without advance notice and (iii) this Section 6.10 shall not apply to any Excluded Special Purpose Finance Subsidiary.  The Administrative Agent and the Lenders shall give the Company the opportunity to participate in any discussion with the Company’s accountants. Notwithstanding anything else set forth herein to the contrary, in no event shall the Company or any of the Subsidiaries be required to allow any such Person to inspect or examine, or be required to discuss, any records, documents or other information (x) with respect to which the Company or any of the Subsidiaries has obligations of confidentiality (whether pursuant to law, contract or otherwise) (it being understood that the Company or any of the Subsidiaries shall inform the Administrative Agent of the existence and nature of the confidential records, documents or other information not being provided and, following a reasonable request from the Administrative Agent, use commercially reasonable efforts to request consent from an applicable contractual counterparty to disclose such information (but shall not be required to incur any cost or expense or pay any consideration of any type to such party in order to obtain such consent)) or (y) that is subject to attorney-client privilege).
6.11    Use of Proceeds.  Use the proceeds of the Credit Extensions to refinance the Existing Credit Agreement, to fund the Borrowers’ acquisition of new and used vehicles, to provide for working capital, to finance capital expenditures and for other general corporate purposes, including, without limitation, for Acquisitions and for the repurchase of shares of the Company’s capital stock, in each case not in contravention of any Law or of any Loan Document or in any manner that would violate Regulation U of the FRB.
6.12    New Subsidiaries.  As soon as practicable but in any event within 30 days (or such longer period as the Administrative Agent may agree in its reasonable discretion) following the acquisition or creation of any Subsidiary (other than an Excluded Subsidiary) by a Loan Party (including by way of division) cause to be delivered to the Administrative Agent each of the following:
(i)    a Joinder Agreement duly executed by such Subsidiary (with all schedules thereto appropriately completed), which Joinder Agreement will, if such Subsidiary will engage in the business of selling or leasing new motor vehicles, designate such Subsidiary as a Designated Borrower;
(ii)    if reasonably requested by the Administrative Agent, an opinion or opinions of counsel to such Subsidiary dated as of the date of delivery of such Joinder Agreements (and other Loan Documents) provided for in this Section 6.12 and addressed to the 

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Administrative Agent, in form and substance reasonably acceptable to the Administrative Agent; and
(iii)    current copies of the Organization Documents of such Subsidiary, minutes of duly called and conducted meetings (or duly effected consent actions) of the Board of Directors, partners, or appropriate committees (and, if required by such Organization Documents or applicable law, of the shareholders, members or partners) of such Subsidiary authorizing the actions and the execution and delivery of documents described in this Section 6.12, all certified by the applicable Governmental Authority (in the case of certificates of incorporation, certificates of formation or equivalent organizational documents) or appropriate officer as the Administrative Agent may reasonably request.
6.13    Anti-Corruption Laws.
Conduct its businesses in compliance in all material respects with the United States Foreign Corrupt Practices Act of 1977 and other similar anti-corruption Laws in other jurisdictions that may be applicable to the Loan Parties and their Subsidiaries from time to time and maintain policies and procedures reasonably designed to promote and achieve compliance with the United States Foreign Corrupt Practices Act of 1977 and, in the case of any business from time to time conducted outside of the United States, such other similar anti-corruption laws.
ARTICLE VII     
 
NEGATIVE COVENANTS
So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation (other than contingent indemnification obligations as to which no claim has been asserted) hereunder shall remain unpaid or unsatisfied, or any Letter of Credit (other than Letters of Credit which have been Cash Collateralized) shall remain outstanding, the Company shall not, nor shall it permit the Revolving Borrower or any other Subsidiary to, directly or indirectly:
7.01    Liens.  Create, incur, assume or suffer to exist any Lien upon any of its current assets, whether now owned or hereafter acquired, other than the following:
(a)    Liens pursuant to any Loan Document;
(b)    Liens existing on the date hereof and listed on Schedule 7.01 and any renewals, refinancings or extensions thereof, provided that in the case of any such renewal, refinancing or extension (i) the property covered thereby is not changed (other than (A) after-acquired property that is affixed or incorporated into the property encumbered by such Lien on the Closing Date to the extent that the Liens being renewed, refinanced or extended included after-acquired property and (B) proceeds and products thereof), (ii) the amount secured or benefited thereby is not increased, and (iii) the direct or any contingent obligor with respect thereto is not changed;
(c)    Liens for Taxes and assessments which are not yet delinquent for a period of more than thirty (30) days or which are delinquent for a period of more than thirty (30) days and are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP (or, for Foreign Subsidiaries, in conformity with generally accepted accounting principles that are applicable in their respective jurisdiction of organization);

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(d)    landlords’, carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course of business which secure amounts not overdue for a period of more than 60 days or if more than 60 days overdue, are unfiled (or if filed, have been discharged or are stayed) and no other action has been taken to enforce such Lien or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance with GAAP;
(e)    pledges or deposits in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other social security legislation and securing liability for reimbursement or indemnification obligations of insurance carriers providing property, casualty or liability insurance, and deposits in the ordinary course of business securing liability to insurance carriers under insurance or self‐insurance arrangements, and Liens on insurance policies and the proceeds thereof securing the financing of the premiums with respect thereto;
(f)    pledges or deposits to secure the performance of bids, trade contracts, governmental contracts, and leases (other than Indebtedness for borrowed money), statutory obligations, surety, stay, customs and appeal bonds, performance bonds and other obligations of a like nature  incurred in the ordinary course of business;
(g)    easements, rights‐of‐way, restrictions and other similar encumbrances and minor title defects affecting real property which do not in any case materially and adversely interfere with the ordinary conduct of the business of the applicable Person;
(h)    other Liens on real property securing Indebtedness; provided that in each case (i) the principal amount of the Indebtedness does not exceed 95% of the appraised fair market value of the real property securing such Indebtedness as of the date such Liens are granted on such real property and (ii) such real property is used for purposes that would not be prohibited by Section 7.03;
(i)    Liens securing judgments for the payment of money not constituting an Event of Default under Section 8.01(h);
(j)    Liens securing Indebtedness (or any extension, renewal or refinancing thereof) in respect of capital leases, Synthetic Lease Obligations and purchase money obligations for fixed or capital assets or for vehicles acquired at auction; provided that (i) such Liens do not at any time encumber any property (except for replacements, additions and accessions to such property) other than the property financed by such Indebtedness, and (ii) the Indebtedness secured thereby does not exceed the cost or fair market value, whichever is lower, of the property being acquired on the date of acquisition (or in the case of any extension, renewal or refinancing, the outstanding amount of Indebtedness is not increased);
(k)    Liens on Permitted Retail Installment Contracts, the Related Property and assets of Excluded Special Purpose Finance Subsidiaries arising in connection with Permitted Sale Facilities;
(l)    Liens (i) arising in connection with leases or subleases (each not constituting Indebtedness), licenses or sublicenses (including software and other technology licenses) in each case entered into in the ordinary course of business, (ii) deemed to exist in connection with software escrow arrangements with third parties in the ordinary course of business, and (iii) in connection with leases, licenses, subleases or sublicenses granted to others in the ordinary course of business and not interfering in any material respect with the business of the Company and its Subsidiaries;

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(m)    Liens (i) of a collection bank arising under Section 4-210 of the Uniform Commercial Code on items in the course of collection, (ii) encumbering reasonable customary initial deposits and margin deposits and similar Liens attaching to commodity trading accounts or other brokerage accounts incurred in the ordinary course of business and not for speculative purposes, or (iii) arising as a matter of Law or under customary general terms and conditions encumbering deposits (including the right of setoff or similar rights and remedies as to deposit accounts or other funds maintained with depository institutions) and which are within the general parameters customary in the banking industry;
(n)    Liens on vehicles purchased in the ordinary course of business, provided that such Liens were in existence at the time of such purchase;
(o)    Liens on specific property existing at the time such property was acquired or existing on the property of any Person that becomes a Subsidiary after the date hereof, provided that (i) such Liens were in existence at the time of such acquisition or such Person becoming a Subsidiary and not created in contemplation thereof, (ii) no such Lien extends to any property other than the property acquired or property of such Person becoming a Subsidiary, and the proceeds and products thereof, and (iii) the Loan Parties shall be in Pro Forma Compliance (as determined as of the most recent date for which financial statements have been furnished pursuant to Section 6.01(a) or (b)) with Section 7.07 at the time of such acquisition;
(p)    (A) Liens not otherwise permitted under this Section 7.01; provided that (i) at the time of the creation or incurrence of such Lien, no Default shall exist or would result from such Lien, and (ii) the aggregate principal amount of Indebtedness secured by all Liens created or incurred in reliance on this clause (p) shall not exceed 15% of Consolidated Unencumbered Current Assets (determined at the time of incurrence and calculated using Consolidated Unencumbered Current Assets as of the most recently ended fiscal quarter for which financial statements have been furnished) and (B) Liens that extend, renew, substitute or replace (including successive extensions, renewals, substitutions or replacements), in whole or in part, any Lien permitted pursuant to clause (p)(A) of this Section 7.01; provided that (i) the Indebtedness secured by any such Lien is in an aggregate outstanding principal amount not greater than the aggregate principal amount of the Indebtedness secured by the Lien which is being extended, renewed, substituted or replaced, plus any accreted amount, unpaid accrued interest, premium, underwriting discount, and any other fees, commissions and expenses incurred in connection therewith and (ii) the assets encumbered by such Lien are not increased;
(q)    Liens on Company Margin Stock that is held by the Company as treasury stock;
(r)    Liens (i) in favor of customs and revenue authorities arising as a matter of Law to secure payment of customs duties in connection with the importation of goods in the ordinary course of business or (ii) on specific items of inventory or other goods and proceeds of any Person securing such Person’s obligations in respect of bankers’ acceptances or letters of credit issued or created for the account of such Person to facilitate the purchase, shipment or storage of such inventory or other goods in the ordinary course of business;
(s)    Liens (i) on cash earnest money deposits in favor of the seller of any property to be acquired in an Acquisition or Investment which is to be applied against the purchase price for such Acquisition or Investment or (ii) consisting of an agreement to Dispose of any property in a Disposition not prohibited hereunder, in each case solely to the extent such Acquisition, Investment 

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or Disposition, as the case may be, would have been permitted on the date of the creation of such Lien;
(t)    Liens arising out of conditional sale, title retention, consignment or similar arrangements for sale of goods entered into by the Company or any Subsidiary in the ordinary course of business;
(u)    Liens on Equity Interests of Joint Ventures securing obligations of such Joint Venture, and options, put and call arrangements, rights of first refusal and other similar rights relating to Investments in Joint Ventures, partnerships and the Company’s Equity Interests;
(v)    Liens consisting of cash deposits securing any Swap Contract permitted hereunder in the ordinary course of business and consistent with past practices (so long as (i) no Event of Default has occurred and is continuing at the time of granting such Lien and (ii) such Liens are required by regulatory requirements applicable to the relevant counterparties);
(w)    netting arrangements in respect of Swap Contracts (but only to the extent the amounts netted arise under Swap Contracts with the same counterparties); 
(x)    Liens on cash or Cash Equivalents (and the related escrow accounts) in connection with the issuance into (and pending the release from) escrow of any Indebtedness to the extent permitted under Section 7.08; and
(y)    Liens arising from precautionary UCC financing statement (or similar filings under applicable law) filings regarding operating leases entered into by the Company or any Subsidiary.
7.02    Fundamental Changes.  Dissolve, liquidate, merge or consolidate with or into another Person or consummate any Delaware LLC Division, or Dispose of (whether in one transaction or in a series of transactions) all or substantially all of the assets (whether now owned or hereafter acquired) of the Company and its Subsidiaries (taken as a whole) to or in favor of any Person, except that:
(a)    the Company or the Revolving Borrower may merge or consolidate with or into any Person as part of an Acquisition or Investment not prohibited hereunder, provided that (i) the Company or the Revolving Borrower, as applicable, shall be the continuing or surviving Person and (ii) no Event of Default exists or would result therefrom;
(b)    (i) any Subsidiary (other than the Revolving Borrower) may merge or consolidate with or into (x) the Company, provided that the Company shall be the continuing or surviving Person, (y) the Revolving Borrower, provided that the Revolving Borrower shall be the continuing or surviving Person, or (z) any one or more other Subsidiaries, provided that when any Subsidiary Guarantor is merging or consolidating with another Subsidiary that is not a Guarantor, such Subsidiary Guarantor shall be the continuing or surviving Person, (ii) any Subsidiary (other than the Revolving Borrower) may liquidate or dissolve, or the Revolving Borrower or any Subsidiary may change its legal form if the Company determines in good faith that such action is in the best interest of the Company and its Subsidiaries and is not disadvantageous to the Lenders in any material respect (it being understood that in the case of any dissolution of a Subsidiary that is a Guarantor, such Subsidiary shall, at or before the time of such dissolution, transfer its assets to the Company or another Subsidiary unless such Disposition of assets is permitted hereunder; and in the case of any change in legal form, a Subsidiary that is a Guarantor will remain a Guarantor, unless such Guarantor is otherwise permitted to cease being a Guarantor hereunder) and (iii) the Company may merge or 

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consolidate with or into the Revolving Borrower; provided that the Revolving Borrower is the surviving Person;
(c)    any Subsidiary (other than the Revolving Borrower) may (i) Dispose of all or substantially all of its assets (upon voluntary liquidation or otherwise) to the Company or to another Subsidiary; provided that if the transferor in such a transaction is a Subsidiary Guarantor, then the transferee must either be the Company, the Revolving Borrower or a Subsidiary Guarantor and (ii) merge or consolidate with, or Dispose of all or substantially all of its assets (upon voluntary liquidation or otherwise) to any other Person (that is not a Subsidiary) so long as such merger, consolidation or Disposition does not constitute a Disposition of all or substantially all of the assets of the Company and its Subsidiaries (taken as a whole) to such other Person; and
(d)    any Subsidiary may sell all or substantially all of its Permitted Retail Installment Contracts and Related Property pursuant to Permitted Sale Facilities;
provided, however, that (i) any Excluded Subsidiary may dissolve, liquidate, or merge or consolidate with or into another Person, or Dispose of (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person and (ii) any Specified Subsidiary may dissolve or liquidate if, in connection with such dissolution or liquidation, all assets of such Specified Subsidiary are distributed to its parent company.
7.03    Change in Nature of Business.  Engage in any material line of business substantially different from those lines of business conducted by the Company and its Subsidiaries on the date hereof or any business substantially related, incidental or complementary thereto or extensions thereof if, after giving effect thereto, the business conducted by the Company and its Subsidiaries, taken as a whole, would be substantially different from the business conducted by the Company and its Subsidiaries on the date hereof.
7.04    Transactions with Affiliates.  Enter into any transaction of any kind with any Affiliate of the Company, whether or not in the ordinary course of business, other than on fair and reasonable terms substantially as favorable to the Company or such Subsidiary as would be obtainable by the Company or such Subsidiary at the time in a comparable arm’s length transaction with a Person not an Affiliate of the Company, provided that the foregoing restriction shall not apply to (i) transactions between or among the Company and its Subsidiaries not involving any other Affiliate, (ii) the payment of reasonable and customary fees and expenses, and the provision of customary indemnification to directors, officers, employees, members of management and consultants of the Company and its Subsidiaries, (iii) the issuance of Equity Interests to any director, officer, employee or consultant of the Company or its Subsidiaries, (iv) employment and severance arrangements (including options to purchase Equity Interests of the Company, restricted stock plans, long-term incentive plans, stock appreciation rights, participation plans or similar employee benefits plan) between the Company or any Subsidiary and their directors, officers, employees, members of management and consultants in the ordinary course of business, (v) payments to or from, and transactions with, joint ventures (to the extent such joint venture is only an Affiliate as a result of Investments by the Company and the Subsidiaries in such joint venture) in the ordinary course of business, (vi) transactions between the Company or any Subsidiary and any Person that is an Affiliate solely due to the fact that an officer or a director of such Person is also a director of the Company or such Subsidiary; provided, however, that such director abstains from voting as a director of the Company or such Subsidiary, as the case may be, on any matter involving such other Person, (vii) share repurchases of the Company’s common stock, (viii) any transaction in which the aggregate amount involved in each single or related series of transactions does not exceed $10,000,000 and (ix) any other transaction with an Affiliate, which is approved by a majority of disinterested members of the board of directors of the Company in good faith.

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7.05    Burdensome Agreements.  Enter into any Contractual Obligation (other than this Agreement or any other Loan Document) that limits the ability of any Subsidiary to make Restricted Payments to the Company or any Subsidiary Guarantor or to otherwise transfer property to the Company or any Subsidiary Guarantor; provided, however, that this section shall not prohibit any limitation (i) imposed on an Excluded Subsidiary; (ii) imposed in connection with a Disposition of property or assets not prohibited hereunder pending the consummation of such Disposition; (iii) imposed by law or any Loan Document; (iv) in the documentation governing the Term Loan Facility; (v) contained in any agreement of (A) an entity or related to assets acquired by or merged into or consolidated with the Company or any Subsidiary or (B) a Person that becomes a Subsidiary, in each case in existence at the time of such acquisition, merger, consolidation or such Person becoming a Subsidiary and so long as such limitation was not incurred in connection with, or in contemplation of, such acquisition, merger, consolidation or such Person becoming a Subsidiary and in any extension, renewal, refinancing or replacement of any such agreement; provided that any agreement effecting such extension, renewal, refinancing or replacement does not contain any restriction or limitation on the payment of dividends or distributions that is more restrictive than the restrictions and limitations contained in the agreement being extended, renewed, refinanced or replaced; and (vi) in any one or more agreements governing Indebtedness entered into after the Closing Date that contain encumbrances and other restrictions that are, taken as a whole, in the reasonable and good faith judgment of the Company, no more restrictive in any material respect with respect to the Company or any Subsidiary than those encumbrances and other restrictions that are in effect on the Closing Date pursuant to agreements and instruments in effect on the Closing Date (including this Agreement and the Term Loan Facility) and that do not materially impair the ability of the Loan Parties to repay the Obligations.
7.06    [Reserved]. 
7.07    Financial Covenants.
(a)    Consolidated Net Leverage Ratio.  Permit the Consolidated Net Leverage Ratio as of the end of any fiscal quarter of the Company to be greater than 3.75 to 1.00; provided, that, upon the consummation of any Material Acquisition and the written election of the Company to the Administrative Agent no later than ten Business Days following the consummation of such Material Acquisition, the maximum permitted Consolidated Net Leverage Ratio for each of the four (4) fiscal quarters of the Company immediately following such Material Acquisition (including the fiscal quarter of the Company in which such Material Acquisition was consummated) (such period of increase, the “Leverage Holiday”) shall be increased to 4.25 to 1.00; provided, further, that, there shall be at least four consecutive fiscal quarters between such elections during which time no Leverage Holiday shall be in effect.
(b)    Consolidated Interest and Rent Coverage Ratio.  Permit the Consolidated Interest and Rent Coverage Ratio as of the end of any fiscal quarter of the Company to be less than 2.00 to 1.00.
7.08    Indebtedness.  Incur any Indebtedness after the Closing Date unless the Loan Parties shall be in compliance with Section 7.07 on a Pro Forma Basis as of the most recent date for which financial statements have been furnished pursuant to Section 6.01(a) or (b) giving effect to such incurrence.
7.09    Sanctions.
Directly or indirectly, use any Credit Extension or the proceeds of any Credit Extension, or lend, contribute or otherwise make available such Credit Extension or the proceeds of any Credit Extension to any Person, to fund any activities of or business with any Sanctioned Person or in any Designated Jurisdiction.

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7.10    Anti-Corruption Laws.
Directly or, to the knowledge of the Company or the Borrowers, indirectly use the proceeds of any Credit Extension for any purpose which would violate the United States Foreign Corrupt Practices Act of 1977 or other similar anti-corruption Laws in other jurisdictions that may be applicable to the Loan Parties or their Subsidiaries from time to time.
ARTICLE VIII     
 
EVENTS OF DEFAULT AND REMEDIES
8.01    Events of Default.  Any of the following shall constitute an Event of Default:
(a)    Non‐Payment.  The Company or any other Loan Party fails to pay (i) when due and as required to be paid herein, any amount of principal of any Loan or any L/C Obligation, or (ii) within five Business Days after the same becomes due and payable, any interest on any Loan or on any L/C Obligation, or any fee due hereunder, or (iii) within seven Business Days after the same becomes due, any other amount payable hereunder or under any other Loan Document; or
(b)    Specific Covenants.  The Company or any other Loan Party fails to perform or observe any term, covenant or agreement contained in any of Section 6.03(a), 6.05(a) (solely with respect to any Borrower or the Company), 6.11 or Article VII; or
(c)    Other Defaults.  The Company, the Revolving Borrower, any other Borrower or any other Loan Party fails to perform or observe any other covenant or agreement (not specified in subsection (a) or (b) above) contained in any Loan Document on its part to be performed or observed and such failure continues for 30 days after the Company receives notice thereof from the Administrative Agent; or
(d)    Representations and Warranties.  Any representation, warranty, certification or statement of fact made or deemed made by or on behalf of the Company or any other Loan Party herein, in any other Loan Document, or in any document delivered in connection herewith or therewith shall be incorrect or misleading in any material respect when made or deemed made; or
(e)    Cross‐Default.  (i) A default shall occur, which is not cured or waived, (A) in the payment of any principal, interest, premium or other amounts with respect to any Indebtedness (other than the Indebtedness hereunder) of the Company or of any Subsidiary in an outstanding aggregate amount not less than the Threshold Amount, or (B) in the performance, observance or fulfillment of any term or covenant contained in any agreement or instrument under or pursuant to which any such Indebtedness described in clause (A) above may have been issued, created, assumed, guaranteed or secured by the Company or any Subsidiary, and in the case of each of clauses (A) and (B) such default shall continue for more than the period of grace, if any, therein specified, and if such default shall permit the holder of any such Indebtedness to accelerate the maturity thereof or (ii) any other event occurs with respect to any Indebtedness described in clause (i)(A) above, the effect of which other event is to cause, or to permit the holder or holders of such Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause, with the giving of notice if required, such Indebtedness to be demanded or to become due or to be prepaid, defeased or redeemed (automatically or otherwise) prior to its stated maturity and such Indebtedness shall not be repaid when due; unless, in the case of clauses (i)(B) and (ii) above, (1) such default or other event is capable of being cured, (2) the Company or such Subsidiary, as applicable, is diligently pursuing such cure and (3) the holders of 

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such Indebtedness have not caused such Indebtedness to be accelerated (or otherwise prepaid, defeased or redeemed) or terminated the commitments with respect to such Indebtedness; provided, however, (y) this Section 8.01(e) shall not apply to secured Indebtedness that becomes due as a result of the voluntary Disposition of the property or assets securing such Indebtedness and (z) notwithstanding the foregoing and solely with respect to any agreement or instrument between the Company or any Subsidiary, on one hand, and any Lender or any Affiliate of any Lender, on the other hand, that is within the scope of this Section 8.01(e), an Event of Default shall not be deemed to have occurred under this Section 8.01(e) solely as a result of the Company’s or such Subsidiary’s sale, pledge, or other Disposition of Company Margin Stock in violation of any restriction on the sale, pledge, or other Disposition of Company Margin Stock that is contained in any such instrument or agreement; provided, further, that, with respect to any Permitted Sale Facility, this Section 8.01(e) shall not apply with respect to any event the effect of which is to cause the early termination, acceleration or early amortization of such Permitted Sale Facility so long as (A) such early termination, acceleration or early amortization of such Permitted Sale Facility could not reasonably be expected to have a Material Adverse Effect and (B) such event could not reasonably be expected to result in any recourse against the Company or any Subsidiary (other than an Excluded Special Purpose Finance Subsidiary) in an aggregate amount of more than the Threshold Amount;
(f)    Insolvency Proceedings, Etc.  The Company or any Subsidiary institutes or consents to the institution of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any substantial portion of its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of such Person and the appointment continues undischarged or unstayed for 60 calendar days; or any proceeding under any Debtor Relief Law relating to any such Person or to all or any material part of its property is instituted without the consent of such Person and continues undismissed or unstayed for 60 calendar days, or an order for relief is entered in any such proceeding; or
(g)    Inability to Pay Debts; Attachment.  (i) The Company or any Subsidiary becomes unable or admits in writing its inability or fails generally to pay its debts as they become due, or (ii) any writ or warrant of attachment or execution or similar process is issued or levied against all or any material part of the property of any such Person and is not released, vacated or fully bonded within 60 days after its issue or levy; or
(h)    Judgments.  There is entered against the Company or any Subsidiary (i) one or more final judgments or orders for the payment of money in an aggregate amount (as to all such judgments and orders) exceeding the Threshold Amount (to the extent not paid or covered by independent third‐party insurance as to which the insurer does not dispute coverage), or (ii) any one or more non‐monetary final judgments that have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and, in either case, such judgment is not vacated, discharged or stayed or bonded pending appeal within 30 days from the entry thereof, or if longer, within the applicable appeal period (but in no event for more than 60 days from the entry thereof); or
(i)    ERISA.  (i) An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to result in liability of the Company under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC or (ii) the Company or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any 

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installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan, and in each case in clauses (i) and (ii) above, such event or condition, together with all other such events or conditions, if any, could reasonably be expected to have a Material Adverse Effect; or
(j)    Invalidity of Loan Documents.  Any material provision of any Loan Document, at any time after its execution and delivery and for any reason other than (i) as expressly permitted hereunder or thereunder, (ii) with respect to a Subsidiary Guarantor, the release thereof from the Subsidiary Guaranty Agreement upon the Disposition of such Guarantor in a transaction not prohibited hereunder or (iii) satisfaction in full of all the Obligations (other than contingent indemnification obligations as to which no claim has been asserted), ceases to be in full force and effect; or the Company or any Subsidiary contests in writing the validity or enforceability of any provision of any Loan Document; or any Loan Party denies in writing that it has any or further liability or obligation under any Loan Document (other than as a result of repayment in full of Obligations (other than contingent indemnification obligations as to which no claim has been asserted), or purports in writing to revoke, terminate or rescind any Loan Document; or
(k)    Change of Control.  There occurs any Change of Control.
8.02    Remedies Upon Event of Default.  If any Event of Default occurs and is continuing, the Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders, take any or all of the following actions:
(a)    declare the commitment of each Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit Extensions to be terminated, whereupon such commitments and obligation shall be terminated; provided that, to the extent permitted by applicable law, the Administrative Agent shall use good faith efforts to provide notice to the Revolving Borrower of such declaration, provided further, however, that the failure to provide such notice will not impair the effectiveness of such declaration or give rise to any liability of the Administrative Agent, any Lender or the L/C Issuer with respect thereto;
(b)    upon notice to the Revolving Borrower, declare the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or under any other Loan Document to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Company and the Borrowers;
(c)    require that any Borrower or Borrowers Cash Collateralize the L/C Obligations (in an amount equal to the then Outstanding Amount thereof);
(d)    exercise on behalf of itself and the Lenders all rights and remedies available to it and the Lenders under the Loan Documents or Law or equity; and
(e)    to the extent permitted pursuant to such Payment Commitment, revise, terminate or suspend Payment Commitments with any manufacturer or distributor;
provided, however, that upon the occurrence of an actual or deemed entry of an order for relief with respect to the Company or any Borrower under the Bankruptcy Code of the United States, the obligation of each Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit Extensions shall automatically terminate, the unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid 

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shall automatically become due and payable, and the obligation of the Borrowers (jointly or severally) to Cash Collateralize the L/C Obligations as aforesaid shall automatically become effective, in each case without further act of the Administrative Agent or any Lender.
8.03    Application of Funds.  After the exercise of remedies provided for in Section 8.02 (or after the Loans have automatically become immediately due and payable and the L/C Obligations have automatically been required to be Cash Collateralized as set forth in the proviso to Section 8.02), any amounts received on account of the Obligations shall, subject to Sections 2.17 and 2.18, be applied by the Administrative Agent in the following order:
First, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including fees, charges and disbursements of counsel payable under Sections 10.04 and 10.05 to the Administrative Agent and amounts payable under Article III) payable to the Administrative Agent in its capacity as such;
Second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal, interest and Letter of Credit Fees) payable to the Lenders and the L/C Issuer (including fees, charges and disbursements of counsel payable under Sections 10.04 and 10.05 to the respective Lenders and the L/C Issuer and amounts payable under Article III), ratably among them in proportion to the respective amounts described in this clause Second payable to them;
Third, to payment of that portion of the Obligations constituting accrued and unpaid Letter of Credit Fees and interest on the Loans and L/C Borrowings, ratably among the Lenders and the L/C Issuer in proportion to the respective amounts described in this clause Third payable to them;
Fourth, to payment of that portion of the Obligations constituting unpaid principal of the Loans and L/C Borrowings, ratably among the Lenders and the L/C Issuer in proportion to the respective amounts described in this clause Fourth held by them;
Fifth, to the Administrative Agent for the account of the L/C Issuer, to Cash Collateralize that portion of L/C Obligations comprised of the aggregate undrawn amount of Letters of Credit to the extent not otherwise Cash Collateralized by the Borrowers pursuant to Sections 2.03 and 2.17; and
Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the Company or as otherwise required by Law.
Subject to Sections 2.03(c) and 2.17, amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to clause Fifth above shall be applied to satisfy drawings under such Letters of Credit as they occur.  If any amount remains on deposit as Cash Collateral after all Letters of Credit have either been fully drawn or expired, such remaining amount shall be applied to the other Obligations, if any, in the order set forth above.
ARTICLE IX     
 
ADMINISTRATIVE AGENT
9.01    Appointment and Authority.  Each of the Lenders and the L/C Issuer hereby irrevocably appoints Bank of America to act on its behalf as the Administrative Agent hereunder and under the other 

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Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.  The provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and the L/C Issuer, and neither the Company nor any Borrower shall have rights as a third party beneficiary of any of such provisions.  It is understood and agreed that the use of the term “agent” herein or in any other Loan Documents (or any other similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable Law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.
9.02    Rights as a Lender.  The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Company or any Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.
9.03    Exculpatory Provisions.  The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents, and its duties hereunder shall be administrative in nature.  Without limiting the generality of the foregoing, the Administrative Agent:
(a)    shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;
(b)    shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents), provided that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable law,  including for the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and
(c)    shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Company or any of the Borrowers or any of their respective Affiliates that is communicated to or obtained by the Person serving as the 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 (i) with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Sections 10.01 and 8.02) or (ii) in the absence of its own gross negligence or 

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willful misconduct as determined by a court of competent jurisdiction by final and nonappealable judgment.  The Administrative Agent shall be deemed not to have knowledge of any Default unless and until notice describing such Default is given in writing to the Administrative Agent by the Company, a Lender or the L/C Issuer.
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 or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.
9.04    Reliance by Administrative Agent.  The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person.  The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon.  In determining compliance with any condition hereunder to the making of a Loan, or the issuance, extension, renewal or increase of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the L/C Issuer, the Administrative Agent may presume that such condition is satisfactory to such Lender or the L/C Issuer unless the Administrative Agent shall have received notice to the contrary from such Lender or the L/C Issuer prior to the making of such Loan or the issuance of such Letter of Credit.  The Administrative Agent may consult with legal counsel (who may be counsel for the Company), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.
9.05    Delegation of Duties.  The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub agents appointed by the Administrative Agent.  The Administrative Agent and any such sub agent may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties.  The exculpatory provisions of this Article shall apply to any such sub agent and to the Related Parties of the Administrative Agent and any such sub agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent.  The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and non appealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agents.
9.06    Resignation of Administrative Agent.
(a)    The Administrative Agent may at any time give notice of its resignation to the Lenders, the L/C Issuer and the Company.  Upon receipt of any such notice of resignation, the Required Lenders shall have the right, with the consent of the Company unless an Event of Default has occurred and is continuing (such consent not to be unreasonably withheld), to appoint a successor, which shall be a bank with an office in the United States, or an Affiliate of any such bank with an 

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office in the United States.  If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the “Resignation Effective Date”), then the retiring Administrative Agent may on behalf of the Lenders and the L/C Issuer, appoint a successor Administrative Agent meeting the qualifications set forth above.  Whether or not a successor has been appointed,  such resignation shall become effective in accordance with such notice on the Resignation Effective Date.
(b)    If the Person serving as Administrative Agent is a Defaulting Lender pursuant to clause (d) of the definition thereof, the Required Lenders may, to the extent permitted by applicable Law, by notice in writing to the Company and such Person remove such Person as Administrative Agent and, with the consent of the Company unless an Event of Default has occurred and is continuing (such consent not to be unreasonably withheld), appoint a successor. If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within thirty days (or such earlier day as shall be agreed by the Required Lenders) (the “Removal Effective Date”), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.
(c)    With effect from the Resignation Effective Date or the Removal Effective Date (as applicable) (i) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any collateral security held by the Administrative Agent on behalf of the Lenders or the L/C Issuer under any of the Loan Documents, the retiring or removed Administrative Agent shall continue to hold such collateral security until such time as a successor Administrative Agent is appointed) and (ii) except for any indemnity payments or other amounts then owed to the retiring or removed Administrative Agent all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and the L/C Issuer directly, until such time as the Required Lenders appoint a successor Administrative Agent as provided for above in this Section.  Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring (or removed) Administrative Agent (other than as provided in Section 3.06 and other than any rights to indemnity payments or other amounts owed to the retiring or removed Administrative Agent as of the Resignation Effective Date or the Removal Effective Date, as applicable), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as provided above in this Section).  The foregoing notwithstanding, upon the discharge of the retiring or removed Administrative Agent’s duties hereunder, neither the retiring or removed Administrative Agent nor the successor Administrative Agent or any New Vehicle Swing Line Lender shall be required to honor any request by a vehicle manufacturer or distributor for advance of a New Vehicle Swing Line Loan, unless and until (A) such successor Administrative Agent and such manufacturer or distributor (and if required pursuant to the terms of such Payment Commitment, the applicable Borrower) have entered into a new Payment Commitment, and (B) any existing Payment Commitment between such manufacturer or distributor and the retiring or removed Administrative Agent has been terminated.  The fees payable by the Company to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Company and such successor.  After the retiring or removed Administrative Agent’s resignation or removal hereunder and under the other Loan Documents, the provisions of this Article and Section 10.04 shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub agents and their respective Related Parties in respect of any actions 

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taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting as Administrative Agent.
(d)    Any resignation by Bank of America as Administrative Agent pursuant to this Section shall also constitute its resignation as L/C Issuer, Swing Line Lender and New Vehicle Swing Line Lender.  If any L/C Issuer resigns as an L/C Issuer, it shall retain all the rights, powers, privileges and duties of an L/C Issuer hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as L/C Issuer and all L/C Obligations with respect thereto, including the right to require the Lenders to make Base Rate Loans or fund risk participations in Unreimbursed Amounts pursuant to Section 2.03(c).  If Bank of America resigns as Swing Line Lender or New Vehicle Swing Line Lender, it shall retain all the rights of the Swing Line Lender or New Vehicle Swing Line Lender provided for hereunder with respect to Swing Line Loans and New Vehicle Swing Line Loans made by it and outstanding as of the effective date of such resignation, including the right to require the Lenders to make Base Rate Loans or fund risk participations in outstanding Swing Line Loans or New Vehicle Swings Line Loans pursuant to Section 2.04(c) or Section 2.05(e).  Upon the appointment by the Borrowers of a successor L/C Issuer, Swing Line Lender or New Vehicle Swing Line Lender hereunder (which successor shall in all cases be a Lender other than a Defaulting Lender), (i) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer, Swing Line Lender or New Vehicle Swing Line Lender, as applicable, (ii) the retiring L/C Issuer, Swing Line Lender and New Vehicle Swing Line Lender shall be discharged from all of their respective duties and obligations hereunder or under the other Loan Documents and (iii) the successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangements reasonably satisfactory to the retiring L/C Issuer to effectively assume the obligations of retiring L/C Issuer  with respect to such Letters of Credit.
9.07    Non‐Reliance on Administrative Agent and Other Lenders‐.  Each Lender and the L/C Issuer acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each Lender and the L/C Issuer also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.
9.08    No Other Duties, Etc.  Anything herein to the contrary notwithstanding, none of the arrangers, book runners, syndication agents or documentation agents, if any, listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or the L/C Issuer hereunder.
9.09    Administrative Agent May File Proofs of Claim.  In case of the pendency of any proceeding under any Debtor Relief Law or other judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether the principal of any Loan or L/C Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Company or any Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise

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(a)    to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, L/C Obligations and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders, the L/C Issuer and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders, the L/C Issuer and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders, the L/C Issuer and the Administrative Agent under Sections 2.03(h) and (i), 2.10 and 10.04) allowed in such judicial proceeding; and
(b)    to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender and the L/C Issuer to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders and the L/C Issuer, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 2.10 and 10.04.
Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender or the L/C Issuer any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or the L/C Issuer or to authorize the Administrative Agent to vote in respect of the claim of any Lender or the L/C Issuer in any such proceeding.
9.10    Guaranty Matters.  The Lenders and the L/C Issuer irrevocably authorize the Administrative Agent, at its option and in its discretion, to release any Subsidiary Guarantor from its obligations under the Subsidiary Guaranty Agreement if such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder.  Upon request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s authority to release any Subsidiary Guarantor from its obligations under the Subsidiary Guaranty Agreement pursuant to this Section 9.10. Upon release of a Subsidiary Guarantor from its obligations under the Subsidiary Guaranty Agreement, the Administrative Agent (and each Lender irrevocably authorizes the Administrative Agent to), at the Company’s expense, execute and deliver to the applicable Loan Party such documents as such Loan Party may reasonably request to evidence the release of such Subsidiary Guarantor from its obligations under the Subsidiary Guaranty Agreement, in accordance with the terms thereof and this Section 9.10.
9.11    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 each Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Company or any other Loan Party, that at least one of the following is and will be true: 
(i)    such Lender is not using “plan assets” (within the meaning of 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,

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(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) subclause (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 subclause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and each Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Company or any other Loan Party, that  none of the Administrative Agent or any Arranger or any of their respective Affiliates is a fiduciary with respect to the assets of such Lender involved in such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related to hereto or thereto).
ARTICLE X     
 
MISCELLANEOUS
10.01    Amendments, Etc.  Except as expressly provided below, no amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by the Company or any other Loan Party therefrom, shall be effective unless in writing and signed by the Required Lenders and the Company or the applicable Loan Party, as the case may be, and the Administrative Agent’s receipt of such writing is acknowledged by the Administrative Agent, and each such waiver or consent shall be 

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effective only in the specific instance and for the specific purpose for which given; provided, however, that no such amendment, waiver or consent shall:
(a)    waive any condition set forth in Section 4.01(a) without the written consent of each Lender;
(b)    extend or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 8.02) without the written consent of such Lender;
(c)    postpone any date fixed by this Agreement or any other Loan Document for any payment or mandatory prepayment of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document without the written consent of each Lender entitled to receive such payment;
(d)    reduce the principal of, or the rate of interest specified herein on, any Loan or L/C Borrowing, or (subject to clause (b) of the last paragraph of this Section 10.01) any fees or other amounts payable hereunder or under any other Loan Document without the written consent of each Lender entitled to receive such amount, it being understood that any change to the definition of Consolidated Leverage Ratio or, in each case, in the component definitions thereof shall not constitute a reduction in any rate of interest or any fees based thereon; provided, however, that only the consent of the Required Lenders shall be necessary to amend the definition of “Default Rate” or to waive any obligation of any Borrower to pay interest or Letter of Credit Fees at the Default Rate;
(e)    change Section 8.03 in a manner that would alter the pro rata sharing of payments required thereby without the written consent of each Lender;
(f)    change any provision of this Section or the definition of “Required Lenders” without the written consent of each Lender; or
(g)    release the Company from the Company Guaranty Agreement or, other than as a result of a Disposition or otherwise expressly permitted hereunder or thereunder, release all or substantially all of the value of the Subsidiary Guaranty Agreement without the written consent of each Lender;
and, provided further, that (i) no amendment, waiver or consent shall, unless in writing and signed by the L/C Issuer in addition to the Lenders required above, affect the rights or duties of the L/C Issuer under this Agreement, (ii) any Issuer Document relating to any Letter of Credit issued or to be issued by the applicable L/C Issuer may be amended, or rights or privileges waived, in a writing executed only by the parties thereto; (ii) no amendment, waiver or consent shall, unless in writing and signed by the Swing Line Lender in addition to the Lenders required above, affect the rights or duties of the Swing Line Lender under this Agreement; (iii) no amendment, waiver or consent shall, unless in writing and signed by the New Vehicle Swing Line Lender in addition to the Lenders required above, affect the rights or duties of the New Vehicle Swing Line Lender under this Agreement; and (iv) no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect the rights or duties of the Administrative Agent under this Agreement or any other Loan Document.  
Notwithstanding anything to the contrary contained herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent which by its terms requires the consent of all Lenders or each affected Lender may be effected with the consent of the applicable Lenders other than Defaulting Lenders), except that (x) the Commitment of such 

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Defaulting Lender may not be increased or extended without the consent of such Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms affects such Defaulting Lender disproportionately adversely relative to other affected Lenders shall require the consent of such Defaulting Lender.
Notwithstanding any provision herein to the contrary:  (a) the Administrative Agent and the Company may amend, modify or supplement this Agreement or any other Loan Document to cure or correct administrative errors or omissions, any ambiguity, omission, defect or inconsistency or to effect administrative changes, and such amendment shall become effective without any further consent of any other party to such Loan Document so long as (i) such amendment, modification or supplement does not adversely affect the rights of any Lender or other holder of Obligations in any material respect and (ii) the Lenders shall have received at least five Business Days’ prior written notice thereof and the Administrative Agent shall not have received, within five Business Days of the date of such notice to the Lenders, a written notice from the Required Lenders stating that the Required Lenders object to such amendment, (b) the Fee Letters may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto, (c) any Autoborrow Agreement may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto, (d) the Administrative Agent and the Company may make amendments to this Agreement contemplated by Section 3.03(c), (e) this Agreement may be amended by the Borrowers, the Administrative Agent, the Added Lenders and the Increasing Lenders solely to effectuate increases in the Aggregate Commitments pursuant to Section 2.16 and (f) the Company, the Administrative Agent and each extending Lender may make such amendments to this Agreement solely to effectuate extensions of the Maturity Date pursuant to Section 2.19.
10.02    Notices; Effectiveness; Electronic Communication.
(a)    Notices Generally.  Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in subsection (b) below), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile as follows, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number, as follows, provided, that any notice under Section 2.06(c) shall be accomplished through automatic electronic payment procedures established from time to time between the Revolving Borrower and the New Vehicle Swing Line Lender:
(i)    if to the Company, a Borrower, the Administrative Agent, the L/C Issuer, the Swing Line Lender or the New Vehicle Swing Line Lender, to the address, facsimile number, electronic mail address or telephone number specified for such Person on Schedule 10.02; and
(ii)    if to any other Lender, to the address, facsimile number, electronic mail address or telephone number specified in its Administrative Questionnaire (including, as appropriate, notices delivered solely to the Person designated by a Lender on its Administrative Questionnaire then in effect for the delivery of notices that may contain material non-public information relating to the Company or the Borrowers).
Notices and other communications sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices and other communications sent by facsimile shall be deemed to have been given when sent (except that, if not 

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given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient).  Notices and other communications delivered through electronic communications to the extent provided in subsection (b) below, shall be effective as provided in such subsection (b).
(b)    Electronic Communications.  Notices and other communications to the Lenders and the L/C Issuer hereunder may be delivered or furnished by electronic communication (including e‐mail, FpML messaging and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, provided that the foregoing shall not apply to notices to any Lender or the L/C Issuer pursuant to Article II, Section 6.03 or Section 10.14(d) if such Lender or the L/C Issuer, as applicable, has notified the Administrative Agent that it is incapable of receiving notices under such Article or Section by electronic communication.  The Administrative Agent, the L/C Issuer, the Swing Line Lender, the New Vehicle Swing Line Lender or the Company 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), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e‐mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor; provided that for both clauses (i) and (ii) above, 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.
(c)    The Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.”  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON‐INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM.  In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to the Company, any Borrower, any Lender, the L/C Issuer or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Company’s, any Borrower’s or the Administrative Agent’s transmission of Borrower Materials or notices through the Platform, any other electronic platform or electronic messaging service, or through the Internet, except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent jurisdiction by a final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Agent Party; provided, however, that in no event shall any Agent Party have any liability to the Company, any Borrower, any Lender, the L/C Issuer or any other Person for indirect, special, incidental, consequential or punitive damages (as opposed to direct or actual damages).

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(d)    Change of Address, Etc.  Each of the Company (for itself and on behalf of the other Borrowers), the Administrative Agent, the L/C Issuer, the Swing Line Lender and the New Vehicle Swing Line Lender may change its address, facsimile or telephone number and electronic mail addresses for notices and other communications hereunder by notice to the other parties hereto.  Each other Lender may change its address, facsimile or telephone number and electronic mail addresses for notices and other communications hereunder by notice to the Company, the Administrative Agent, the L/C Issuer, the Swing Line Lender and the New Vehicle Swing Line Lender.  In addition, each Lender agrees to notify the Administrative Agent from time to time to ensure that the Administrative Agent has on record (i) an effective address, contact name, telephone number, facsimile number and electronic mail address to which notices and other communications may be sent and (ii) accurate wire instructions for such Lender.  Furthermore, each Public Lender agrees to cause at least one individual at or on behalf of such Public Lender to at all times have selected the “Private Side Information” or similar designation on the content declaration screen of the Platform in order to enable such Public Lender or its delegate, in accordance with such Public Lender’s compliance procedures and applicable Law, including United States Federal and state securities Laws, to make reference to Borrower Materials that are not made available through the “Public Side Information” portion of the Platform and that may contain material non-public information with respect to the Borrowers or their securities for purposes of United States Federal or state securities Laws.
(e)    Reliance by Administrative Agent, L/C Issuer and Lenders.  The Administrative Agent, the L/C Issuer and the Lenders shall be entitled to rely and act upon any notices (including telephonic Committed Loan Notices, Letter of Credit Applications, Swing Line Loan Notices and New Vehicle Swing Line Loan Notices) purportedly given by or on behalf of any Borrower even if (i) such notices were not made in a manner specified herein, were incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof.  The Company and each Borrower (jointly and severally) shall indemnify the Administrative Agent, the L/C Issuer, each Lender and the Related Parties of each of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on behalf of the Company or any Borrower.  All telephonic notices to and other telephonic communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to such recording.
10.03    No Waiver; Cumulative Remedies; Enforcement.  No failure by any Lender, the L/C Issuer or the Administrative Agent to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder or under any other Loan Document (including the imposition of the Default Rate) shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.
Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents against the Loan Parties or any of them shall be vested exclusively in, and all actions and proceedings at law in connection with such enforcement shall be instituted and maintained exclusively by, the Administrative Agent in accordance with Section 8.02 for the benefit of all the Lenders and the L/C Issuer; provided, however, that the foregoing shall not prohibit (a) the Administrative Agent from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its capacity as Administrative Agent) hereunder and under the other Loan Documents, (b) the L/C Issuer, the Swing Line Lender or the New Vehicle Swing Line Lender 

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from exercising the rights and remedies that inure to its benefit (solely in its capacity as L/C Issuer, Swing Line Lender or New Vehicle Swing Lender, as the case may be) hereunder and under the other Loan Documents, (c) any Lender from exercising setoff rights in accordance with Section 10.08 (subject to the terms of Section 2.14), or (d) any Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to any Loan Party under any Debtor Relief Law; and provided, further, that if at any time there is no Person acting as Administrative Agent hereunder and under the other Loan Documents, then (i) the Required Lenders shall have the rights otherwise ascribed to the Administrative Agent pursuant to Section 8.02 and (ii) in addition to the matters set forth in clauses (b), (c) and (d) of the preceding proviso and subject to Section 2.14, any Lender may, with the consent of the Required Lenders, enforce any rights and remedies available to it and as authorized by the Required Lenders.
10.04    Expenses; Indemnity; Damage Waiver.
(a)    Costs and Expenses.  The Company and each Borrower (jointly and severally) shall pay (i) all reasonable and documented out of pocket expenses incurred by the Administrative Agent and its Affiliates (including the reasonable fees, charges and disbursements of one primary counsel for the Administrative Agent), in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable out of pocket expenses incurred by the L/C Issuer (including the reasonable fees, charges and disbursements of one primary counsel for the L/C Issuer), in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all reasonable and documented out of pocket expenses incurred by the Administrative Agent, any Lender or the L/C Issuer (including the reasonable fees, charges and disbursements of one primary counsel for the Administrative Agent, any Lender or the L/C Issuer, taken as a whole, and if necessary, one local counsel in any relevant jurisdiction, to the Administrative Agent, any Lender or the L/C Issuer, taken as a whole, unless the representation of one or more such Person by such counsel would be inappropriate due to the existence of an actual conflict of interest, in which case, upon prior written notice to the Company, the Company and the Borrowers shall also be required to reimburse the reasonable out of pocket fees, charges and disbursements of one additional counsel to such affected Persons in each relevant jurisdiction), in connection with the enforcement or protection of its rights, including any audit fees incurred when conducting any audit of any Loan Party during the continuance of an Event of Default (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section, or (B) in connection with the Loans made or Letters of Credit issued hereunder, including all such out of pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit.
(b)    Indemnification by the Company and the Borrowers.  The Company and each Borrower (jointly and severally) shall indemnify the Administrative Agent (and any sub agent thereof), each Lender and the L/C Issuer, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the reasonable and documented out-of-pocket fees, charges and disbursements of one primary counsel to the Indemnitees, taken as a whole, and if necessary, one local counsel in any relevant jurisdiction, to the Indemnitees, taken as a whole, unless the representation of one or more Indemnitees by such counsel would be inappropriate due to the existence of an actual conflict of interest, in which case, upon prior written notice to the Company, the Company and the Borrowers shall also be required 

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to reimburse the reasonable out of pocket fees, charges and disbursements of one additional counsel to such affected Indemnitees in each relevant jurisdiction), incurred by any Indemnitee or asserted against any Indemnitee by any Person (including any third party, the Company, any Borrower or any other Loan Party), other than such Indemnitee and its Related Parties, arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder, the consummation of the transactions contemplated hereby or thereby, or, in the case of the Administrative Agent (and any sub agent thereof) and its Related Parties only, the administration of this Agreement and the other Loan Documents, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by the L/C Issuer to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by the Company, any Borrower or any of its Subsidiaries, or any Environmental Liability, or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Company or any other Loan Party, and regardless of whether any Indemnitee is a party thereto, in all cases, whether or not caused by or arising, in whole or in part, out of the comparative, contributory or sole negligence of the Indemnitee; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that losses, claims, damages, liabilities or related expenses (i) are determined by a court of competent jurisdiction by final order to have resulted from (A) the willful misconduct, bad faith or gross negligence of such Indemnitee or any Related Indemnified Party thereof or (B) a material breach by such Indemnitee of its obligations hereunder, or (ii) arise solely from a proceeding brought by an Indemnitee against any other Indemnitee (other than any claims against any Indemnitee in its capacity or in fulfilling its role as an arranger, L/C Issuer or agent or any similar role hereunder) and do not involve an act or omission by any Loan Party or Affiliate thereof.
(c)    Reimbursement by Lenders.  To the extent that the Company or any Borrower for any reason fails to indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid by it to the Administrative Agent (or any sub‐agent thereof), the L/C Issuer, the Swing Line Lender, the New Vehicle Swing Line Lender or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub‐agent), the L/C Issuer, the Swing Line Lender, the New Vehicle Swing Line Lender or such Related Party, as the case may be, such Lender’s Applicable Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount, provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub‐agent), the L/C Issuer, the Swing Line Lender or the New Vehicle Swing Line Lender in its capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub‐agent), L/C Issuer, the Swing Line Lender, or the New Vehicle Swing Line Lender in connection with such capacity.  The obligations of the Lenders under this subsection (c) are subject to the provisions of Section 2.13(d).
(d)    Waiver of Consequential Damages, Etc.  Without limiting the Loan Parties’ indemnification obligations above, to the fullest extent permitted by applicable law, no party hereto shall assert, and each other party hereto hereby waives, any claim against any other party hereto (or any Indemnitee or any Loan Party), 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 

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a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof (other than in respect of any such damages incurred or paid by an Indemnitee to a third party and to which such Indemnitee is otherwise entitled to indemnification as provided above).  No Indemnitee referred to in subsection (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.
(e)    Payments.  All amounts due under this Section shall be payable not later than ten Business Days after demand therefor.
(f)    Survival.  The agreements in this Section shall survive the resignation of the Administrative Agent and the L/C Issuer, the replacement of any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations.
10.05    Payments Set Aside.  To the extent that any payment by or on behalf of the Company or any Borrower is made to the Administrative Agent, the L/C Issuer, the Swing Line Lender, the New Vehicle Swing Line Lender or any other Lender, or the Administrative Agent, the L/C Issuer, the Swing Line Lender, the New Vehicle Swing Line Lender or any other Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent, the L/C Issuer or such Lender in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred, and (b) each Lender and the L/C Issuer severally agrees to pay to the Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by the Administrative Agent (other than (1) any amount consisting of the Administrative Agent’s fees under Section 2.10(b)(i) or (2) principal or interest on any Bilateral Swing Line Loan or Bilateral New Vehicle Swing Line Loan), plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from time to time in effect.  The obligations of the Lenders and the L/C Issuer under clause (b) of the preceding sentence shall survive the payment in full of the Obligations and the termination of this Agreement.
10.06    Successors and Assigns.
(a)    Successors and Assigns Generally.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that neither the Company nor any Borrower may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of subsection (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (f) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated 

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hereby, the Related Parties of each of the Administrative Agent, the L/C Issuer and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.
(b)    Assignments by Lenders.  Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans (including for purposes of this subsection (b), participations in L/C Obligations, in Swing Line Loans and in New Vehicle Swing Line Loans) at the time owing to it); provided that any such assignment shall be subject to the following conditions:
(i)    Minimum Amounts.
(A)    in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and the related Loans at the time owing to it or contemporaneous assignments to related Approved Funds (determined after giving effect to such Assignments) that equal at least the amount specified in subsection (b)(i)(B) of this Section in the aggregate or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and
(B)    in any case not described in subsection (b)(i)(A) of this Section, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the Commitment is not then in effect, the principal outstanding balance of the Loans of the assigning Lender subject to each such assignment, determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date, shall not be less than $5,000,000 unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Company otherwise consents (each such consent not to be unreasonably withheld or delayed);
(ii)    Proportionate Amounts.  Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loans or the Commitment assigned, except that this clause (ii) shall not apply to rights in respect of Swing Line Loans and New Vehicle Swing Line Loans;
(iii)    Required Consents.  No consent shall be required for any assignment except to the extent required by subsection (b)(i)(B) of this Section and, in addition:
(A)    the consent of the Company (such consent not to be unreasonably withheld or delayed) shall be required unless (1) an Event of Default pursuant to Section 8.01(a), 8.01(f) or 8.01(g) has occurred and is continuing at the time of such assignment or (2) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund;
(B)    the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required if such assignment is to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender;

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(C)    the consent of the L/C Issuer (such consent not to be unreasonably withheld or delayed) shall be required for any assignment that increases the obligation of the assignee to participate in exposure under one or more Letters of Credit (whether or not then outstanding); and
(D)    the consent of the Swing Line Lender and the New Vehicle Swing Line Lender (such consents not to be unreasonably withheld or delayed) shall be required for any assignment to a Person that is not a Lender.
(iv)    Assignment and Assumption.  The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee in the amount of $3,500; provided, however, that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment.  The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.
(v)    No Assignment to Certain Persons.  No such assignment shall be made to (A) the Company or any of the Company’s Affiliates or Subsidiaries, (B) any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (B), or (C) a natural person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of a natural person).
(vi)    Certain Additional Payments.  In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Company and the Administrative Agent, the applicable pro rata share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent, the L/C Issuer or any Lender hereunder (and interest accrued thereon) and (y) acquire (and fund as appropriate) its full pro rata share of all Loans and participations in Letters of Credit, Swing Line Loans and New Vehicle Swing Line Loans in accordance with its Applicable Percentage.  Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable Law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.
Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the 

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assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 3.01, 3.04, and 10.04 with respect to facts and circumstances occurring prior to the effective date of such assignment; provided, that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.  Upon request, each Borrower (at its expense) shall execute and deliver a Note to the assignee Lender.  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with subsection (d) of this Section.
(c)    Register.  The Administrative Agent, acting solely for this purpose as an agent of the Borrowers (and such agency being solely for tax purposes), shall maintain at the Administrative Agent’s Office a copy of each Assignment and Assumption delivered to it (or the equivalent thereof in electronic form) and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Loans and L/C Obligations owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive, and the Borrowers, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for inspection by the Borrowers and any Lender at any reasonable time and from time to time upon reasonable prior notice.
(d)    Participations.  Any Lender may at any time, without the consent of, or notice to, the Company, any Borrower, the Swing Line Lender, the New Vehicle Swing Line Lender, the L/C Issuer or the Administrative Agent, sell participations to any Person (other than a natural person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of a natural person), a Defaulting Lender or the Company or any of the Company’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans (including such Lender’s participations in L/C Obligations, Swing Line Loans and/or New Vehicle Swing Line Loans) owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Company, the Borrowers, the Administrative Agent, the Lenders and the L/C Issuer shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 10.04(c) without regard to the existence of any participation.
Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any  provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in the first proviso to Section 10.01 that affects such Participant.  Subject to subsection (e) of this Section, each of the Company and each Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.01 and 3.04 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to subsection (b) of this Section, provided that such Participant agrees to be subject to the provisions of Section 3.05 and Section 10.13 as if it were an assignee under paragraph (b) of this Section.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 10.08 

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as though it were a Lender, provided that such Participant agrees to be subject to Section 2.14 as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as an agent of the Company, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.
(e)    Limitation upon Participant Rights.  A Participant shall not be entitled to receive any greater payment under Section 3.01 or 3.04 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Company’s prior written consent.  A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 3.01 unless the Company is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrowers, to comply with Section 3.01(e) as though it were a Lender.
(f)    Certain Pledges.  Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including under any of its Notes, if any) to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.
(g)    Resignation as L/C Issuer, Swing Line Lender or New Vehicle Swing Line Lender after Assignment.  Notwithstanding anything to the contrary contained herein, if at any time Bank of America (or, as applicable, any other L/C Issuer) assigns all of its Commitment and Loans pursuant to subsection (b) above, Bank of America (or, as applicable, such other L/C Issuer) may, (i) upon 30 days’ notice to the Company and the Lenders, resign as L/C Issuer and/or (ii) upon 30 days’ notice to the Company, resign as Swing Line Lender and/or (iii) upon 30 days’ notice to the Company, resign as New Vehicle Swing Line Lender.  In the event of any such resignation as L/C Issuer, Swing Line Lender or New Vehicle Swing Line Lender, the Company shall be entitled to appoint from among the Lenders a successor L/C Issuer, Swing Line Lender or New Vehicle Swing Line Lender hereunder; provided, however, that no failure by the Company to appoint any such successor shall affect the resignation of Bank of America (or, as applicable, such other resigning L/C Issuer) as L/C Issuer, Swing Line Lender or New Vehicle Swing Line Lender, as the case may be.  If an L/C Issuer resigns as L/C Issuer, it shall retain all the rights, powers, privileges and duties of the L/C Issuer hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as L/C Issuer and all L/C Obligations with respect thereto (including the right to require the Lenders to make Base Rate Committed Loans or fund risk participations in Unreimbursed Amounts pursuant to Section 2.03(c)).  If Bank of America resigns as Swing Line Lender, it shall retain all the rights of the Swing Line Lender provided for hereunder with respect to Swing Line 

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Loans made by it and outstanding as of the effective date of such resignation, including the right to require the Lenders to make Eurodollar Rate Committed Loans or fund risk participations in outstanding Swing Line Loans pursuant to Section 2.04(c).  If Bank of America resigns as New Vehicle Swing Line Lender, it shall retain all the rights of the New Vehicle Swing Line Lender provided for hereunder with respect to New Vehicle Swing Line Loans made by it and outstanding as of the effective date of such resignation, including the right to require the Lenders to make Eurodollar Rate Committed Loans or fund risk participations in outstanding New Vehicle Swing Line Loans pursuant to Section 2.05(e).  Upon the appointment of a successor L/C Issuer, Swing Line Lender and/or New Vehicle Swing Line Lender, (a) such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring L/C Issuer, Swing Line Lender or New Vehicle Swing Line Lender, as the case may be, and (b) the successor L/C Issuer shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangements reasonably satisfactory to the resigning L/C Issuer to effectively assume the obligations of the resigning L/C Issuer with respect to such Letters of Credit.
10.07    Treatment of Certain Information; Confidentiality.  Each of the Administrative Agent, the Lenders and the L/C Issuer agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Related Parties who need to know such Information in connection with the transactions hereunder (it being understood and agreed that (i) 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 and (ii) the Administrative Agent, the Lenders and the L/C Issuer, as applicable, shall be responsible for their respective Controlled or Controlling Affiliates’ failure to maintain the confidentiality of such Information), (b) to the extent required or requested by any regulatory authority purporting to have jurisdiction over it or its Related Parties (including any self‐regulatory authority, such as the National Association of Insurance Commissioners); provided that (i) the Administrative Agent, such Lender or the L/C Issuer, as applicable, agrees to the extent practicable and not prohibited by applicable Law to inform the Company promptly thereof prior to such disclosure and (ii) notwithstanding anything to the contrary contained herein, the Administrative Agent, the Lenders or the L/C Issuer, and their Affiliates may disclose Information, without notice to the Company, to any Governmental Authority or self-regulatory authority (including bank and securities examiners) having or claiming to have authority to regulate or oversee any aspect of such Person’s or its Affiliate’s business in connection with the exercise of such authority or claimed authority, (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or any Eligible Assignee invited to become a Lender pursuant to Section 2.16(c) or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to a Borrower and its obligations, (g) with the written consent (including by electronic mail) of the Company or (h) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to the Administrative Agent, any Lender or the L/C Issuer from a source other than the Company or any Subsidiary that is not, to the knowledge of the Administrative Agent, such Lender or such L/C Issuer, as applicable, subject to a confidentiality obligation owing to the Company or any Subsidiaries prohibiting disclosure with respect to such Information.
For purposes of this Section, “Information” means all information received from the Company or any Subsidiary relating to the Company or any Subsidiary or any of their respective businesses, other than any such information that is available to the Administrative Agent, any Lender or the L/C Issuer on a 

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nonconfidential basis prior to disclosure by the Company or any Subsidiary, provided that, in the case of written information received from the Company or any Subsidiary 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.
Each of the Administrative Agent, the Lenders and the L/C Issuer acknowledges that (a) the Information may include material non‐public information concerning the Company or a Subsidiary, as the case may be, (b) it has developed compliance procedures regarding the use of material non‐public information and (c) it will handle such material non‐public information in accordance with applicable Law, including Federal and state securities Laws.
10.08    Right of Setoff.  Subject to Section 2.14, if an Event of Default shall have occurred and be continuing, each Lender, the L/C Issuer and each of their respective Affiliates is hereby authorized at any time and from time to time, after obtaining the written consent of the Administrative Agent, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender, the L/C Issuer or any such Affiliate to or for the credit or the account of the Company or any Borrower against any and all of the Obligations of the Company or such Borrower, as applicable, now or hereafter existing under this Agreement or any other Loan Document to such Lender or the L/C Issuer, irrespective of whether or not such Lender or the L/C Issuer shall have made any demand under this Agreement or any other Loan Document and although such Obligations of the Company or such Borrower may be contingent or unmatured or are owed to a branch or office of such Lender or the L/C Issuer different from the branch or office holding such deposit or obligated on such indebtedness; provided, however, that the Lenders, the L/C Issuer and their respective Affiliates shall not set off or apply (A) any such deposits in deposit accounts owned by or in the name of the Company or any Borrower with respect to which the Company or any Borrower is acting on behalf of another person who is not a Loan Party or a Subsidiary in connection with any engagement, and the Company or any Borrower does not own such deposit account for its own benefit, and (B) any such deposits in any deposit account containing only the assets of Persons (other than the Company or Affiliates of the Company) for whom the Company or any Subsidiary is serving as a fiduciary or on a contractual basis or (C) in each case except pursuant to the terms of any Permitted Sale Facility, (i) any such deposits at any time held in or credited to the Collection Account or (ii) any such deposits at any time held in or credited to any deposit account identified on Schedule 10.08 to the extent that, in the case of this clause (ii), such deposits are required by the terms of a Permitted Sale Facility to be paid to a Person other than a Loan Party; provided, further, that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 2.18 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 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.  Each Lender and the L/C Issuer acknowledge that certain deposits held in or credited to the deposit accounts identified on Schedule 10.08 are required by the terms of a Permitted Sale Facility to be paid to a Person other than a Loan Party.  The rights of each Lender, the L/C Issuer and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, the L/C Issuer or their respective Affiliates may have.  Each Lender and the L/C Issuer agree to notify the Company and the Administrative Agent promptly after any such setoff and application, provided, however, that the failure to give such notice shall not affect the validity of such setoff and application.

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10.09    Interest Rate Limitation.  Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non‐usurious interest permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such unpaid principal, refunded to the Company.  In determining whether the interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Obligations hereunder.
10.10    Counterparts; Integration; Effectiveness.  This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement, the other Loan Documents and any separate fee letter agreements with respect to fees payable to the Administrative Agent or the L/C Issuer constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other electronic imaging means (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Agreement.
10.11    Survival of Representations and Warranties.  All representations and warranties made hereunder and in any other Loan Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof.  Such representations and warranties have been or will be relied upon by the Administrative Agent and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or on their behalf and notwithstanding that the Administrative Agent or any Lender may have had notice or knowledge of any Default at the time of any Credit Extension, and shall continue in full force and effect as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit shall remain outstanding.
10.12    Severability.  If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  Without limiting the foregoing provisions of this Section 10.12, if and to the extent that the enforceability of any provisions in this Agreement relating to Defaulting Lenders shall be limited by Debtor Relief Laws, as determined in good faith by the Administrative Agent, the L/C Issuer, the Swing Line Lender or the New Vehicle Swing Line Lender, as applicable, then such provisions shall be deemed to be in effect only to the extent not so limited.
10.13    Replacement of Lenders.  If any Lender requests compensation under Section 3.04, or if the Company or any Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.01, if any Lender ceases to make Eurodollar Rate Loans as a result of any condition described in Section 3.02 or 3.03, or if any Lender is a Defaulting 

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Lender or a Non-Consenting Lender or if any other circumstance exists hereunder that gives the Company the right to replace a Lender as a party hereto, then the Company may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 10.06), all of its interests, rights (other than its existing rights to payments pursuant to Sections 3.01 and 3.04 and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), provided that:
(a)    the Company shall have paid to the Administrative Agent the assignment fee specified in Section 10.06(b);
(b)    such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and L/C Advances, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Company (in the case of all other amounts);
(c)    in the case of any such assignment resulting from a claim for compensation under Section 3.04 or payments required to be made pursuant to Section 3.01, such assignment will result in a reduction in such compensation or payments thereafter;
(d)    such assignment does not conflict with applicable Laws; and
(e)    in the case of any assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.
A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Company to require such assignment and delegation cease to apply.
Any Lender being replaced pursuant to this Section 10.13 shall (i) execute and deliver an Assignment and Assumption with respect to such Lender’s outstanding Loans and (ii) deliver any Notes evidencing such Loans to the Company or the Administrative Agent.  In connection with any such replacement, if any such Lender being replaced does not execute and deliver to the Administrative Agent a duly executed Assignment and Assumption reflecting such replacement within five Business Days of the date on which the assignee Lender executes and delivers such Assignment and Assumption to such Lender being replaced, then such Lender being replaced shall be deemed to have executed and delivered such Assignment and Assumption without any action on the part of such Lender being replaced.
Notwithstanding the foregoing, upon not less than three Business Days prior notice to any Defaulting Lender and the Administrative Agent (which the Administrative Agent shall promptly provide to the Lenders and L/C Issuers), the Company (with the consent of the Administrative Agent) shall have the right to terminate the then unutilized Commitment of such Defaulting Lender, after taking into account the portion of such Commitment, if any, which theretofore has been or substantially contemporaneously therewith is being, assigned pursuant to the foregoing provisions of this Section 10.13.  In the event of any such termination, future Credit Extensions shall be allocated to the Non-Defaulting Lenders in accordance with Section 2.18(a)(iv).
10.14    Governing Law; Jurisdiction; Etc.

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(a)    GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
(b)    SUBMISSION TO JURISDICTION.  EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST ANY OTHER PARTY OR ANY RELATED PARTY OF SUCH OTHER PARTY IN ANY WAY RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS  AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION, LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.  EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION, LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.
(c)    WAIVER OF VENUE.  EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (b) OF THIS SECTION.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.
(d)    SERVICE OF PROCESS.  EACH PARTY HERETO HEREBY IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02.  NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.
10.15    Waiver of Jury Trial.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT 

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NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
10.16    No Advisory or Fiduciary Responsibility.
In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), each of the Loan Parties acknowledges and agrees, and acknowledges its Affiliates’ understanding, that: (i) (A) the arranging and other services regarding this Agreement provided by the Administrative Agent, BAS, and the other Arrangers are arm’s-length commercial transactions between the Loan Parties and their respective Affiliates, on the one hand, and the Administrative Agent, BAS, and the other Arrangers, on the other hand, (B) each of the Loan Parties has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) each of the Loan Parties is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; (ii) (A) the Administrative Agent, BAS, and the other Arrangers each is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Loan Parties or any of their respective Affiliates, or any other Person and (B) neither the Administrative Agent, BAS nor the other Arrangers has any obligation to the Loan Parties or any of their respective Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Administrative Agent, BAS and the other Arrangers and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Loan Parties and their respective Affiliates, and neither the Administrative Agent, BAS nor the other Arrangers has any obligation to disclose any of such interests to the Loan Parties and their respective Affiliates.  To the fullest extent permitted by Law, each of the Loan Parties hereby waives and releases any claims that it may have against the Administrative Agent, BAS and the other Arrangers with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.
10.17    Electronic Execution of Assignments and Certain Other Documents.
The words “execute,” “execution,” “signed,” “signature,” and words of like import in or related to any document to be signed in connection with this Agreement, any other document executed in connection herewith and the transactions contemplated hereby (including without limitation Assignment and Assumptions, amendments or other modifications, Committed Loan Notices, Swing Line Loan Notices, New Vehicle Swing Line Loan Notices, waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; provided that notwithstanding anything contained herein to the contrary the Administrative Agent is under no obligation to agree to accept electronic signatures in any form or in any format unless expressly agreed to by the Administrative Agent pursuant to procedures approved by it; provided further 

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without limiting the foregoing, upon the request of any party, any electronic signature shall be promptly followed by such manually executed counterpart.
10.18    USA PATRIOT Act Notice.  Each Lender that is subject to the Patriot Act (as hereinafter defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Company and the Borrowers that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107‐56 (signed into law October 26, 2001)) (the “Patriot Act”), it is required to obtain, verify and record information that identifies the Company and the Borrowers, which information includes the name and address of the Company and each Borrower and other information that will allow such Lender or the Administrative Agent, as applicable, to identify the Company and such Borrower in accordance with the Patriot Act.  The Company and the Borrowers shall, to the extent commercially reasonable, promptly following a request by the Administrative Agent or any Lender, provide all documentation and other information that the Administrative Agent or such Lender reasonably requests in order to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations, including the Patriot Act.
10.19    Acknowledgement and Consent to Bail-In of EEA Financial Institutions.  

Solely to the extent any Lender or L/C Issuer that is an EEA Financial Institution is a party to this Agreement and notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Lender or L/C Issuer that is an EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:
(a)    the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any Lender or L/C Issuer 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.
10.20    Acknowledgement Regarding any Supported QFCs.
To the extent that the Loan Documents provide support, through a guarantee or otherwise, for any Swap Contract or any other agreement or instrument that is a QFC (such support, “QFC Credit Support”, and each such QFC, a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and 

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any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

(a)    In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.  

(b)    As used in this Section 10.20, the following terms have the following meanings:

“BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

“Covered Entity” means any of the following:  (i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

“QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

[signature page follows]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written.
CARMAX, INC., 
a Virginia corporation
By: /s/ Thomas W. Reedy    
Name: Thomas W. Reedy
Title:   Executive Vice President and Chief Financial 
Officer
    

CARMAX AUTO SUPERSTORES, INC., 
a Virginia corporation
By: /s/ Thomas W. Reedy    
Name: Thomas W. Reedy
Title:   Executive Vice President and Chief Financial 
Officer

CARMAX OF LAUREL, LLC, 
a Virginia limited liability company
By: /s/ Thomas W. Reedy    
Name: Thomas W. Reedy
Title:   Executive Vice President and Chief Financial 
Officer

CARMAX AUTO MALL, LLC, 
a Virginia limited liability company

By: /s/ Thomas W. Reedy    
Name: Thomas W. Reedy
Title:   Executive Vice President and Chief Financial 
Officer
    

CARMAX, INC.
CREDIT AGREEMENT

BANK OF AMERICA, N.A., as Administrative Agent
By: /s/ Linda Lov    
Name: Linda Lov
Title:   Assistant Vice President

CARMAX, INC.
CREDIT AGREEMENT

BANK OF AMERICA, N.A., as a Lender, L/C Issuer, 
Swing Line Lender and New Vehicle Swing Line Lender
By: /s/ A. Steven Greene    
Name: A. Steven Greene
Title:   Senior Vice President

CARMAX, INC.
CREDIT AGREEMENT

JPMORGAN CHASE BANK, N.A., as a Lender and 
L/C Issuer
By: /s/ Joon Hur    
Name: Joon Hur
Title:   Executive Director

CARMAX, INC.
CREDIT AGREEMENT

WELLS FARGO BANK, NATIONAL  
ASSOCIATION, as a Lender
By: /s/ Jeffrey R. Bullard, Sr.    
Name: Jeffrey R. Bullard, Sr.
Title:   Senior Vice President

CARMAX, INC.
CREDIT AGREEMENT

TOYOTA MOTOR CREDIT CORPORATION, as a Lender
By: /s/ Gerald Jules    
Name: Gerald Jules
Title:   National Accounts Manager

CARMAX, INC.
CREDIT AGREEMENT

U.S. BANK NATIONAL ASSOCIATION, as a Lender
By: /s/ Suzanne L. Bayer    
Name: Suzanne L. Bayer
Title:   Vice President

CARMAX, INC.
CREDIT AGREEMENT

BARCLAYS BANK PLC, as a Lender
By: /s/ Christopher Aitkin    
Name: Christopher Aitkin
Title:   Vice President

CARMAX, INC.
CREDIT AGREEMENT

ROYAL BANK OF CANADA, as a Lender
By: /s/ Benjamin Lennon    
Name: Benjamin Lennon
Title:   Authorized Signatory

CARMAX, INC.
CREDIT AGREEMENT

MUFG BANK, LTD., as a Lender
By: /s/ John Margetanski    
Name: John Margetanski
Title:   Director

CARMAX, INC.
CREDIT AGREEMENT

CAPITAL ONE, NATIONAL ASSOCIATION, as a Lender
By: /s/ Timothy Miller    
Name: Timothy Miller
Title:   Director

CARMAX, INC.
CREDIT AGREEMENT

MIZUHO BANK, LTD., as a Lender
By: /s/ Donna DeMagistris    
Name: Donna DeMagistris
Title:   Authorized Signatory

CARMAX, INC.
CREDIT AGREEMENT

THE BANK OF NOVA SCOTIA, as a Lender
By: /s/ Bradley Walker    
Name: Bradley Walker
Title:   Director

CARMAX, INC.
CREDIT AGREEMENT

TORONTO-DOMINION BANK, NEW YORK BRANCH, as a Lender
By: /s/ Maria Macchiaroli    
Name: Maria Macchiaroli
Title:   Authorized Signatory

CARMAX, INC.
CREDIT AGREEMENT

SUMITOMO MITSUI BANKING CORPORATION, as a Lender
By: /s/ Michael Maguire    
Name: Michael Maguire
Title:   Executive Director

CARMAX, INC.
CREDIT AGREEMENT

BRANCH BANKING & TRUST COMPANY, as a Lender
By: /s/ Michael R. Burkitt    
Name: Michael R. Burkitt
Title:   SVP

CARMAX, INC.
CREDIT AGREEMENT

BNP PARIBAS, as a Lender
By: /s/ Monica Tilani    
Name: Monica Tilani
Title:   Vice President

By: /s/ Richard Pace    
Name: Richard Pace
Title:   Managing Director

CARMAX, INC.
CREDIT AGREEMENT

PNC BANK, NATIONAL ASSOCIATION, as a Lender
By: /s/ David Notaro    
Name: David Notaro
Title:   Senior Vice President

CARMAX, INC.
CREDIT AGREEMENT

SCHEDULE 2.01

COMMITMENTS AND APPLICABLE PERCENTAGES

	
						
	Lender
	Commitment
	Applicable Percentage

	Bank of America, N.A.
	

	$180,000,000.00
	

	12.413793100
	%

	JPMorgan Chase Bank, N.A.
	

	$175,000,000.00
	

	12.068965520
	%

	Wells Fargo Bank, National Association
	

	$175,000,000.00
	

	12.068965520
	%

	Toyota Motor Credit Corporation
	

	$145,000,000.00
	

	10.000000000
	%

	U.S. Bank National Association
	

	$145,000,000.00
	

	10.000000000
	%

	Barclays Bank PLC
	

	$95,000,000.00
	

	6.551724138
	%

	Royal Bank of Canada
	

	$95,000,000.00
	

	6.551724138
	%

	MUFG Bank, Ltd.
	

	$95,000,000.00
	

	6.551724138
	%

	Capital One, National Association
	

	$48,000,000.00
	

	3.310344828
	%

	Mizuho Bank, Ltd.
	

	$48,000,000.00
	

	3.310344828
	%

	The Bank of Nova Scotia
	

	$48,000,000.00
	

	3.310344828
	%

	Toronto-Dominion Bank, New York Branch
	

	$48,000,000.00
	

	3.310344828
	%

	Sumitomo Mitsui Banking Corporation
	

	$48,000,000.00
	

	3.310344828
	%

	Branch Banking & Trust Company
	

	$35,000,000.00
	

	2.413793103
	%

	BNP Paribas
	

	$35,000,000.00
	

	2.413793103
	%

	PNC Bank, National Association
	

	$35,000,000.00
	

	2.413793103
	%

	TOTAL
	

	$1,450,000,000.00
	

	100.000000000
	%

SCHEDULE 2.01A

LETTER OF CREDIT AND SWING LINE COMMITMENTS

	
				
	L/C Issuer
	L/C Commitment

	Bank of America, N.A.
	

	$25,000,000.00
	

	JPMorgan Chase Bank, N.A.
	

	$25,000,000.00
	

	Total
	

	$50,000,000.00
	

	
				
	Swing Line Lender
	Swing Line Commitment

	Bank of America, N.A.
	

	$75,000,000.00
	

	Total
	

	$75,000,000.00Exhibit 10.1

 

Execution Version

 

PRIVATE
& CONFIDENTIAL

 

		To:	

 

Gaming
Acquisitions Limited

3
The Maltings,

Wetmore
Road,

Burton-On-Trent,

Staffordshire,
DE14 1SE

 

(the
“Company” or “you”)

 

	Attention:	Daniel
Silvers, Stewart Baker and Carys Damon

 

11
June 2019

 

Dear
Sirs

 

Project
Chaucer – Commitment Letter

 

We
are pleased to set out in this letter and in the Term Sheet (as defined below) appended to this letter the terms and conditions
on which we are willing to arrange and underwrite a £240,000,000 senior facilities comprising of a £140 million senior
term loan facility (“Facility B1”), a €90 million senior term loan facility (“Facility B2”)
(Facility B1 and Facility B2 together, “Facility B”), and a £20 million multicurrency senior revolving
credit facility (the “Revolving Facility”, and together with Facility B, the “Senior Facilities”)
in such amounts and proportions as are specified in paragraph 2 (Appointment) below or, in each case, such lesser amounts
as may be required as a consequence of the operation of paragraph 2 (Appointment) below.

 

The
Senior Facilities are to be provided in connection with the refinancing or otherwise discharging of the Inspired Group’s
existing debt with HG Vora (the “Refinancing”) and the direct acquisition (the “Acquisition”)
of each of the following:

 

		(a)	the
                                         entire issued share capital of Astra Games Ltd., a private limited liability company
                                         incorporated under the laws of England and Wales having its registered office at Astra
                                         House, 1 Kingsway, CF31 3RY Bridgend, United Kingdom, registered with company number
                                         09280224;

 

		(b)	the
                                         entire issued share capital of Bell-Fruit Group Limited, a private limited liability
                                         company incorporated under the laws of England and Wales having its registered office
                                         at Astra House, 1 Kingsway, CF31 3RY Bridgend, United Kingdom, registered with company
                                         number 05015596;

 

		(c)	the
                                         entire issued share capital of Gamestec Leisure Limited, a private limited liability
                                         company incorporated under the laws of England and Wales having its registered office
                                         at Astra House, 1 Kingsway, CF31 3RY Bridgend, United Kingdom, registered with company
                                         number 05348584;

 

		(d)	the
                                         entire issued share capital of Harlequin Gaming Limited, a private limited liability
                                         company incorporated under the laws of England and Wales having its registered office
                                         at Astra House, 1 Kingsway, CF31 3RY Bridgend, United Kingdom, registered with company
                                         number 09292082;

 

     

     

    

 

		(e)	60
                                         A ordinary shares of GBP 1.00 each, being sixty per cent. (60%) of the issued shares
                                         in the capital of Innov8 Gaming Limited, a private limited liability company incorporated
                                         under the laws of England and Wales having its registered office at Astra House, 1 Kingsway,
                                         CF31 3RY Bridgend, United Kingdom, registered with company number 10717040; and

 

		(f)	the
                                         entire issued share capital of Playnation Limited, a private limited liability company
                                         incorporated under the laws of England and Wales having its registered office at Unit
                                         17 Berkeley Court, Manor Park, Runcorn, Cheshire, WA7 1TQ, registered with company number
                                         08258418,

 

(collectively,
the “Target” and together with their subsidiaries, the “Target Group”) by Inspired Gaming (UK)
Limited.

 

Our
commitments are provided on the basis of, and are subject to, the terms and conditions set out in:

 

		(a)	this
                                         letter;

 

		(b)	the
                                         term sheet in respect of the Senior Facilities attached to this letter as Appendix A
                                         (Term Sheet) (the “Term Sheet”);

 

		(c)	the
                                         fee letter between the parties to this letter dated on or around the date of this letter
                                         relating to the Senior Facilities (the “Fee Letter”); and

 

		(d)	the
                                         syndication strategy letter relating to the Senior Facilities between the parties to
                                         this letter dated on or around the date of this letter (the “Syndication Strategy
                                         Letter”),

 

paragraphs
(a) to (d) above, together, as such documents may be amended, amended and restated, supplemented, modified or replaced from time
to time, the “Commitment Documents”.

 

In
the Commitment Documents, references to:

 

“Acquisition
Agreement” shall mean the share purchase agreement between Novomatic UK Ltd. as seller and Inspired Gaming (UK) Limited
as purchaser governing the Acquisition.

 

“Acquisition
Closing Date” shall mean the date on which the Acquisition is completed in accordance with the terms of the Acquisition
Agreement.

 

“Business
Day” shall mean a day (other than Saturday or Sunday) on which banks are open for general business in New York and London.

 

“Closing
Date” shall mean the earlier of the Acquisition Closing Date and the date of the Refinancing.

 

“Group”
shall mean Inspired Entertainment Inc. and its subsidiaries from time to time.

 

    2

     

    

 

“Transaction”
means the Acquisition and the Refinancing.

 

Words
and expressions defined in the Term Sheet, the Fee Letter or the Syndication Strategy Letter (as applicable) have the same meanings
when used in this letter unless otherwise provided or the context otherwise requires. In addition, in this letter and the other
Commitment Documents, unless otherwise provided or if the context requires, a reference to “we”, “us”, “our”
or the like shall be construed as a reference to the Arrangers and/or the Underwriters named on the signature pages of this letter
acting individually or, subject to paragraph 2.3 below, together as the context requires.

 

		1.	FINANCING
                                         AND COMMITMENT

 

		1.1	It
                                         is acknowledged and agreed by the parties to this letter that:

 

		(a)	counsel
                                         to the Company will provide a first draft of the Senior Facilities Agreement (as defined
                                         below) to counsel to the Physical Bookrunner on or prior to 17 June 2019;

 

		(b)	counsel
                                         to the Company will provide a copy of the Senior Facilities Agreement (as defined below)
                                         in the agreed form that can be distributed to potential lenders to counsel to the Physical
                                         Bookrunner on or prior to 24 June 2019;

 

		(c)	counsel
                                         to the Physical Bookrunner will provide a first draft of the Intercreditor Agreement
                                         (as defined below) to counsel to the Company on or prior to 17 June 2019;

 

		(d)	counsel
                                         to the Physical Bookrunner will provide a copy of the Intercreditor Agreement (as defined
                                         below) in the agreed form that can be distributed to potential lenders to counsel to
                                         the Company on or prior to 24 June 2019; and

 

		(e)	it
                                         is the parties’ intention that they will negotiate the facilities agreement relating
                                         to the Senior Facilities (the “Senior Facilities Agreement”) and related
                                         intercreditor agreement (the “Intercreditor Agreement”) and other Finance
                                         Documents (under and as defined in the Senior Facilities Agreement) in good faith to
                                         reflect the provisions set out in the Commitment Documents and use all reasonable endeavours
                                         to execute the Senior Facilities Agreement, the Intercreditor Agreement and the other
                                         Finance Documents within one month (or such longer date as may be mutually agreed) from
                                         the date of this letter (the “Proposed Signing Date”).

 

		1.2	If,
                                         despite negotiation in good faith and the use of all reasonable endeavours, the Senior
                                         Facilities Agreement, the Intercreditor Agreement and the other Finance Documents have
                                         not been agreed by the parties prior to the Proposed Signing Date, then on the date falling
                                         5 Business Days thereafter the parties each undertake to sign a Senior Facilities Agreement
                                         and an Intercreditor Agreement which will contain:

 

		(a)	provisions
                                         which reflect the provisions of the Commitment Documents; and

 

		(b)	with
                                         respect to:

 

		(i)	the
                                         Senior Facilities Agreement, in relation to any matter which is not (or which is only
                                         partially) dealt with in the Commitment Documents, but which is dealt with under a senior
                                         facilities agreement which will be based on and consistent with the agreed recent European
                                         “covenant-loose” facilities agreement, a redacted copy of which has been
                                         provided by counsel to the Physical Bookrunner to counsel to the Company (the “SFA
                                         Precedent”), amended to reflect the terms set out in the Term Sheet, the legal,
                                         capital structure and jurisdiction of the Transaction, the Target Group and the provisions
                                         of the Commitment Documents); and

 

    3

     

    

 

		(ii)	the
                                         Intercreditor Agreement, in relation to any matter which is not (or which is only partially)
                                         dealt with in the Commitment Documents, but which is dealt with in an intercreditor agreement,
                                         which will be based on and consistent with an intercreditor agreement entered into in
                                         connection with the agreed recent European “covenant-loose” facilities agreement,
                                         a redacted copy of which intercreditor agreement has been provided by counsel to the
                                         Physical Bookrunner to counsel to the Company (“ICA Precedent”) (amended
                                         to reflect the terms set out in the Term Sheet, the legal, capital structure and jurisdiction
                                         of the Transaction, the Target Group and the provisions of the Commitment Documents);

 

in
each case, on the basis that:

 

		(A)	the
                                         thresholds and basket levels applicable to the representations, undertakings and events
                                         of default in the Senior Facilities Agreement and the Intercreditor Agreement (as the
                                         case may be) will be based on the SFA Precedent and the ICA Precedent (together, the
                                         “Precedent Agreements”) respectively and sized taking into account input
                                         from the management of the Target Group as to the anticipated operational requirements
                                         and flexibility of the Target Group following completion of the Transaction; and

 

		(B)	to
                                         the extent such thresholds and basket levels cannot be agreed between the parties, the
                                         baskets and thresholds will be based on the corresponding baskets and thresholds in the
                                         relevant Precedent Agreements proportionately increased or decreased to reflect the difference
                                         in the EBITDA and gross assets of the target group to which the Precedent Agreements
                                         relate at the time of their acquisition to the EBITDA and gross assets of the Target
                                         Group (ascertained by reference to the latest available audited or unaudited financial
                                         statements of the Target Group) as amended as necessary to reflect the legal, capital
                                         structure and jurisdiction of the Transaction and provided that no such thresholds or
                                         basket levels in the Senior Facilities Agreement shall be more onerous for the Group
                                         than those set out in the SFA Precedent; and

 

		(c)	in
                                         relation to any other matter in respect of the Senior Facilities Agreement or the Intercreditor
                                         Agreement which is not dealt with (or which is only partially) dealt with as provided
                                         in paragraphs (i) to (ii) above, the relevant language shall be such option or language
                                         as is reasonably requested by you, or if you do not specify any option or language within
                                         5 Business Days of the date of a written request by us, such option or language reasonably
                                         requested by us.

 

    4

     

    

 

		1.3	The
                                         first draft of the Senior Facilities Agreement will, unless otherwise agreed, be prepared
                                         by the Company’s lawyers on a basis that is consistent with the approach described in
                                         paragraphs 1.1 and 1.2 above.

 

		1.4	The
                                         first draft of the Intercreditor Agreement will, unless otherwise agreed, be prepared
                                         by the Arrangers’ lawyers on a basis that is consistent with the approach described
                                         in paragraphs 1.1 and 1.2 above.

 

		2.	APPOINTMENT

 

		2.1	On
                                         acceptance of the offer set out in this letter and subject to the terms of this letter
                                         (including paragraph 13.3 below) and except as otherwise provided in the Commitment Documents,
                                         the Company:

 

		(a)	appoints
                                         us and we agree to act as (subject to paragraph 2.3 below) the exclusive arrangers, underwriters
                                         and bookrunners of the Senior Facilities (in such capacities, the “Arrangers”,
                                         “Underwriters” and “Bookrunners”, as applicable);

 

		(b)	appoints
                                         Nomura International plc in its capacity as Bookrunner to act as the exclusive physical
                                         bookrunner of the Senior Facilities (the “Physical Bookrunner”); and

 

		(c)	subject
                                         to paragraph 13.2 below, agrees that it will not (and it shall procure that no other
                                         member of the Group will) appoint additional arrangers, underwriters, bookrunners or
                                         original lenders of the Senior Facilities and will not award other titles or pay compensation
                                         (other than that set out in the Fee Letters) to any person in connection with the Senior
                                         Facilities or the financing of the Transaction with the Senior Facilities without our
                                         prior written consent, it being understood that any breach of this paragraph (c) by a
                                         shareholder of the Company will be deemed to constitute a breach of this paragraph (c)
                                         by the Company for all purposes under the Commitment Documents.

 

		2.2	The
                                         Underwriters shall underwrite the Senior Facilities in the proportions detailed next
                                         to their names in the table below (the “Commitments”):

 

	Entity	 	Facility B1	 	 	Facility B2	 	 	Revolving Facility	 
	Nomura International plc	 	£	126,000,000	 	 	€	81,000,000	 	 	£	18,000,000	 
	Macquarie Corporate Holdings Pty Limited (UK Branch)	 	£	14,000,000	 	 	€	9,000,000	 	 	£	2,000,000	 
	Total	 	£	140,000,000	 	 	€	90,000,000	 	 	£	20,000,000	 

 

    5

     

    

 

		2.3	Our
                                         obligations under the Commitment Documents are several. No Arranger is responsible for
                                         the obligations of any other Arranger. No Underwriter is responsible for the obligations
                                         of any other Underwriter. No Bookrunner is responsible for the obligations of any other
                                         Bookrunner.

 

		3.	CONDITIONS

 

		3.1	Our
                                         commitment to arrange and manage and to act as Arrangers, Underwriters and Bookrunners
                                         in connection with the primary syndication of the Senior Facilities and to underwrite
                                         the relevant proportion of the Senior Facilities to be arranged and/or underwritten by
                                         us, on the terms and subject to the conditions set out in the Commitment Documents, is
                                         subject only to satisfaction of the following conditions:

 

		(a)	negotiation,
                                         execution and delivery of the Senior Facilities Agreement and the Intercreditor Agreement
                                         (in form and substance satisfactory to you and us (each acting reasonably)) in accordance
                                         with paragraphs 1.1 and 1.2 above;

 

		(b)	there
                                         being no event or circumstance in relation to the provision of the Senior Facilities
                                         which would result in us acting contrary to any applicable law, regulation, treaty or
                                         official directive applicable to us; and

 

		(c)	compliance
                                         by the Company and its affiliates with the terms and conditions of the Commitment Documents
                                         in all material respects.

 

		3.2	We
                                         confirm that:

 

		(a)	we
                                         have completed and are satisfied with the results of:

 

		(i)	all
                                         client identification procedures in respect of the addressee of this letter that we are
                                         required to carry out in connection with making the Senior Facilities available in connection
                                         with the Transaction in compliance with all applicable laws, regulations and internal
                                         requirements (including, without limitation, all applicable money laundering rules and
                                         know your customer requirements); and

 

		(ii)	all
                                         due diligence which has been carried out by us, or on our behalf, in respect of making
                                         the Senior Facilities available in connection with the Transaction and other agreed purposes
                                         and that we have no further due diligence requirements;

 

		(b)	we
                                         have obtained all necessary approvals (including final credit committee approvals and
                                         all other relevant internal approvals) to allow us to arrange and underwrite the Senior
                                         Facilities to be arranged and/or underwritten by us in the amounts specified in this
                                         letter and do not require any further internal credit sanctions or other approvals in
                                         order to arrange and underwrite the Senior Facilities in such amounts; and

 

		(c)	we
                                         have waived or have received, reviewed and are satisfied with the form of (A) each of
                                         the Reports (as defined in Schedule 3 of the Term Sheet), (B) the Acquisition Agreement
                                         and (C) the financial statements of Inspired Entertainment Inc. for the first quarter
                                         2019 and the financial information relating to the Target Group in the Reports, in each
                                         case, in such form provided to us on or prior to the date of this letter and that we
                                         will accept in satisfaction of any condition precedent to availability of the Senior
                                         Facilities requiring delivery of that document a final version of the document which
                                         is not different in respects which are materially adverse to our interests under the
                                         Senior Facilities (as applicable) compared to the version of the document accepted by
                                         us pursuant to this paragraph.

 

    6

     

    

 

		3.3	Notwithstanding
                                         that the Company may not be able to procure an act or matter by an affiliate of it which
                                         is expressly stated in the Commitment Documents as an act or matter which the Company
                                         is required to procure, failure to procure such act or matter will be deemed to be a
                                         breach of the terms of the Commitment Documents by the Company if such act or matter
                                         is not satisfied, effected or complied with as contemplated in the Commitment Documents.

 

		4.	FEES,
                                         COSTS AND EXPENSES

 

		4.1	All
                                         of our fees, costs and expenses and the fees, costs and expenses of the Agent and the
                                         Security Agent shall be paid in accordance with the provisions of a Fee Letter or as
                                         set out in the Term Sheet.

 

		4.2	Subject
                                         to paragraph 4.3 below and save as otherwise provided in the Fee Letter, no fees (including,
                                         for the avoidance of doubt, arrangement, underwriting, market participation, ticking
                                         and commitment fees), costs or expenses will be payable if the Closing Date does not
                                         occur.

 

		4.3	Reasonable
                                         and properly incurred legal costs, expenses and disbursements in connection with the
                                         drafting and the negotiating and execution of the Commitment Documents and the Finance
                                         Documents and syndication any other pre-agreed costs or expenses, in each case, up to
                                         an amount agreed between us will be payable by the Company even if the Closing Date does
                                         not occur.

 

		5.	PAYMENTS

 

		5.1	All
                                         payments to be made under the Commitment Documents:

 

		(a)	shall
                                         be paid in the currency of invoice and in immediately available, freely transferable
                                         cleared funds to such account with such bank(s) that we notify to the Company with at
                                         least five (5) Business Days’ prior written notice;

 

		(b)	shall
                                         be paid without set off or counterclaim and free and clear from any deduction or withholding
                                         for or on account of tax (a “Tax Deduction”) unless a Tax Deduction
                                         is required by law; and

 

		(c)	are
                                         exclusive of any value added tax or similar charge (“VAT”).

 

		5.2	If
                                         a Tax Deduction is required to be made by law, the amount of the payment due shall be
                                         increased to an amount which (after making any Tax Deduction) leaves an amount equal
                                         to the payment which would have been due if no Tax Deduction had been required. You agree
                                         to indemnify us for the full amount of any Tax Deduction and any liability (including
                                         penalties, interest and expenses) arising therefrom or with respect thereto, whether
                                         or not such Tax Deduction was correctly or legally asserted.

 

    7

     

    

 

		5.3	If
                                         VAT is chargeable, the Company shall also and at the same time pay to the recipient of
                                         the relevant payment an amount equal to the amount of the VAT against delivery of invoices
                                         and receipts as the Company may reasonably require in order to duly account for such
                                         VAT in accordance with applicable laws.

 

		6.	INFORMATION

 

		6.1	At
                                         the times set out in paragraph 6.2 below, the Company represents and warrants to us that,
                                         to its knowledge:

 

		(a)	any
                                         material written factual information (taken as a whole including any written factual
                                         information (taken as a whole) contained in the Information Memorandum (as such term
                                         is defined in the Syndication Strategy Letter)) provided to us by, or on behalf of it,
                                         any member of the Group, or any member of the Target Group in connection with the Transaction
                                         (the “Information”) is true and accurate in all material respects on
                                         the date the Information is dated (where applicable) and/or as at the date (if any) at
                                         which the Information therein is provided and/or stated to be given;

 

		(b)	nothing
                                         has occurred or been omitted and no information has been given or withheld that results
                                         in the Information being untrue or misleading in any material respect in light of the
                                         circumstances under which such statements were or are made; and

 

		(c)	any
                                         financial projections contained in the Information have been prepared in good faith on
                                         the basis of recent historical information and on the basis of reasonable assumptions
                                         (it being understood that such projections may be subject to significant uncertainties
                                         and contingencies, many of which are beyond the control of the Company, and that no assurance
                                         can be given that the projections will be realised).

 

		6.2	The
                                         representations and warranties set out in paragraph 6.1 above are deemed to be made by
                                         the Company on the date of this letter and by reference to the facts and circumstances
                                         then existing on the date thereof (or otherwise, on which or for the period for which,
                                         the relevant Information or projections are expressed to relate to).

 

		6.3	The
                                         Company shall promptly notify us in writing upon it becoming aware that any representation
                                         or warranty set out in this paragraph 6 (Information) would be incorrect or misleading
                                         in any material respect if repeated after the date of this letter and agrees to supplement
                                         the information promptly from time to time to ensure that each such representation and
                                         warranty would be so correct if so repeated.

 

		6.4	The
                                         Company acknowledges that we will be relying on the Information without carrying out
                                         independent verification.

 

		6.5	The
                                         representations and warranties in paragraph 6.1 above will be superseded by those in
                                         the Senior Facilities Agreement once signed by the parties thereto.

 

    8

     

    

 

		7.	INDEMNITY

 

		7.1	Whether
                                         or not the Senior Facilities Agreement is signed, the Company shall within 10 Business
                                         Days of demand indemnify and hold harmless us and any of our respective affiliates and
                                         any of our (or their respective affiliates’) directors, officers, agents, advisers and
                                         employees (as applicable) in each case in our capacity as an Arranger, Underwriter, Bookrunner,
                                         Physical Bookrunner and/or Original Lender (each an “Indemnified Person”)
                                         against any cost, expense, loss, liability (including, except as specified below without
                                         limitation, legal fees and limited, in the case of legal fees and expenses, to one counsel
                                         to such Indemnified Persons taken as a whole and in the case of a conflict of interest,
                                         one additional counsel to the affected Indemnified Persons similarly situated, taken
                                         as a whole (and, if reasonably necessary one local counsel in any relevant jurisdiction))
                                         incurred by or awarded against such Indemnified Person in each case arising out of or
                                         in connection with any action, claim, investigation or proceeding (including, without
                                         limitation, any action, claim, investigation or proceeding to preserve or enforce rights),
                                         commenced or threatened, relating to this letter, the Commitment Documents, the Finance
                                         Documents, the Senior Facilities or the Transaction or the use or proposed use of proceeds
                                         of the Senior Facilities or the arranging or underwriting of the Senior Facilities or
                                         syndication of the Senior Facilities, except to the extent such cost, expense, loss or
                                         liability resulted:

 

		(a)	directly
                                         from the fraud, gross negligence or wilful misconduct of such Indemnified Person or results
                                         from such Indemnified Person breaching a term of any of its obligations under the Commitment
                                         Documents, the Senior Facilities Agreement and/or any other Finance Document or any confidentiality
                                         undertaking given by that Indemnified Person; or

 

		(b)	from
                                         or relates to any disputes solely among Indemnified Persons and not arising out of any
                                         act or omission of the Company).

 

		7.2	The
                                         Contracts (Rights of Third Parties) Act 1999 shall apply to this paragraph 7 so that
                                         each Indemnified Person may rely on it, subject always to the terms of paragraphs 8 (Third
                                         Party Rights) and 19 (Governing Law And Jurisdiction).

 

		7.3	We
                                         shall not have any duty or obligation, whether as fiduciary for any Indemnified Person
                                         or otherwise, to recover any payment made or required to be made under paragraph 7.1.

 

		7.4	No
                                         Indemnified Person shall be responsible or have any liability to the Company or any of
                                         its affiliates or anyone else for consequential losses or damages.

 

		8.	THIRD
                                         PARTY RIGHTS

 

		8.1	Except
                                         as otherwise expressly provided in the Commitment Documents, the terms of the Commitment
                                         Documents may be enforced only by a party to such Commitment Documents and the operation
                                         of the Contracts (Rights of Third Parties) Act 1999 is excluded.

 

		8.2	Notwithstanding
                                         any term of the Commitment Documents, no consent of a third party is required for any
                                         termination or amendment of the relevant Commitment Documents.

 

    9

     

    

 

		9.	CONFIDENTIALITY

 

		9.1	Each
                                         of the parties to this letter acknowledges that the Commitment Documents and all Confidential
                                         Information (as defined below) are confidential and no party to this letter shall (and
                                         each party shall ensure that none of its affiliates shall), without the prior written
                                         consent of each of the other parties to this letter, disclose the Commitment Documents
                                         or their contents or any Confidential Information to any other person except:

 

		(a)	as
                                         required by law or as requested by any applicable governmental or other regulatory authority
                                         or by any applicable stock exchange or if required in connection with any legal, administrative
                                         or arbitration proceedings provided the person to whom the Commitment Documents or Confidential
                                         Information is to be given is informed of its confidential nature and that some or all
                                         of such Confidential Information may be price-sensitive information except that there
                                         shall be no requirement to so inform if, in the opinion of that disclosing party (acting
                                         reasonably and in good faith), it is not practicable so to do in the circumstances;

 

		(b)	to
                                         its affiliates and each of their (or their respective affiliates) respective directors,
                                         officers, advisers, employees, agents and professional advisers and representatives of
                                         each of the foregoing and their respective employees on a confidential and need-to-know
                                         basis for the purposes of the Senior Facilities provided that the person to who the Confidential
                                         Information is to be given has been made aware of and agreed to be bound by the obligations
                                         under this paragraph or are in any event subject to confidentiality obligations as a
                                         matter of law or professional practice;

 

		(c)	that
                                         the parties to this letter may disclose any Commitment Document or any Confidential Information
                                         to any of its affiliates or to any bank, financial institution or other person and any
                                         of their respective affiliates and advisers with whom it is discussing the transfer,
                                         assignment or participation of any commitment or obligation under any Commitment Document
                                         provided that:

 

		(i)	if
                                         such person is not listed on the Approved List or is not a person to whom a transfer,
                                         assignment or participation may be made as contemplated in section 5.50 (Assignment
                                         / Transfers and Sub-Participation by Lenders) of Part 5 (Other Terms) of the
                                         Term Sheet, it must obtain the prior written consent of the Company prior to providing
                                         the Confidential Information to such person; and

 

		(ii)	the
                                         person to whom the Confidential Information is to be given has entered into a confidentiality
                                         undertaking (as defined below) except that there shall be no requirement for a confidentiality
                                         undertaking if the recipient is a professional adviser and is subject to professional
                                         obligations to maintain the confidentiality of the Confidential Information;

 

		(d)	that
                                         the Company may make the Commitment Documents (other than the Fee Letter or the Syndication
                                         Strategy Letter) available to the management of the Target Group, each vendor or seller
                                         (howsoever described) under the Acquisition Agreement (the “Vendors”)
                                         and each of their professional advisers in connection with the Acquisition, provided
                                         that they have been made aware of and agree to be bound by the obligations under this
                                         paragraph or are in any event subject to confidentiality obligations as a matter of law
                                         or professional practice;

 

    10

     

    

 

		(e)	that
                                         the Company may make the Commitment Documents available to any person who may join as
                                         an Arranger, Underwriter, Bookrunner or Original Lender of the Senior Facilities pursuant
                                         to paragraph 13.2 of this letter and each of their professional advisers in connection
                                         with the Transaction, provided that they have been made aware of and agree to be bound
                                         by the obligations under this paragraph or are in any event subject to confidentiality
                                         obligations as a matter of law or professional practice;

 

		(f)	to
                                         rating agencies who have been made aware of, and agree to be bound by, the obligations
                                         under this paragraph or are in any event subject to confidentiality obligations as a
                                         matter of law or professional practice; and

 

		(g)	as
                                         part of any “due diligence” defence where the recipients have been made aware
                                         of, and agree to be bound by, the obligations under this paragraph or are in any event
                                         subject to confidentiality obligations as a matter of law or professional practice.

 

		9.2	In
                                         this letter:

 

		(a)	“affiliate”
                                         means in relation to a person a holding company or subsidiary of that person or any other
                                         subsidiary of that holding company and in the case of any limited partnership, any entity
                                         (including any other limited partnership) which owns or controls or is owned or controlled
                                         by the first limited partnership or is under common ownership or control with the first
                                         limited partnership; and

 

		(b)	“Confidential
                                         Information” means:

 

		(i)	the
                                         Commitment Documents and all of their terms; and

 

		(ii)	all
                                         information relating to the Company, the Target Group, the Transaction, the Finance Documents
                                         and/or the Senior Facilities which is provided to us (the “Receiving Party”)
                                         in relation to the Transaction, the Finance Documents, the Senior Facilities, the Company,
                                         the Target Group or any of their affiliates or advisers (the “Providing Party”),
                                         in whatever form, and includes information given orally and any document, electronic
                                         file or any other way of representing or recording information which contains or is derived
                                         or copied from such information but excludes information that:

 

		(A)	is
                                         or becomes public information other than as a direct or indirect result of any breach
                                         by the Receiving Party of a confidentiality agreement to which that Receiving Party is
                                         party; or

 

		(B)	is
                                         identified in writing at the time of delivery as non-confidential by the Providing Party;
                                         or

 

    11

     

    

 

		(C)	is
                                         known by the Receiving Party before the date the information is disclosed to the Receiving
                                         Party by the Providing Party or is lawfully obtained by the Receiving Party after that
                                         date, from a source which is, as far as the Receiving Party is aware, unconnected with
                                         the Providing Party or the Target Group and which, in either case, as far as the Receiving
                                         Party is aware, has not been obtained in breach of, and is not otherwise subject to,
                                         any obligation of confidentiality;

 

		(c)	“confidentiality
                                         undertaking” means a confidentiality undertaking substantially in a recommended
                                         form of the Loan Market Association or in any other form agreed between us; and

 

		(d)	“subsidiary”
                                         means an entity of which a person has direct or indirect control or owns directly or
                                         indirectly more than 50% of the share capital or similar right of ownership and control
                                         for this purpose means the power to direct the management and policies of the entity
                                         whether through the ownership of share capital, contract or otherwise.

 

		10.	PUBLICITY/ANNOUNCEMENTS

 

		10.1	All
                                         publicity in connection with the Senior Facilities shall be managed jointly by the Arrangers
                                         and the Company.

 

		10.2	No
                                         announcements regarding the Senior Facilities or any of our roles as Arranger, Underwriter,
                                         Bookrunner or Original Lender (as the case may be) shall be made without our prior written
                                         consent and each of the other Arrangers and Underwriters arranging or underwriting the
                                         relevant Senior Facility and the Company.

 

		11.	CONFLICTS

 

		11.1	The
                                         provisions of this paragraph 11 (Conflicts) are without prejudice to and subject
                                         to the obligations of the parties under paragraph 9 (Confidentiality).

 

		11.2	We
                                         agree that we will use the Confidential Information supplied by the Company (or any other
                                         person on the Company’s behalf) in connection with the Transaction for the sole purpose
                                         of providing advice and/or financing in our capacity as one of the Arrangers, Underwriters
                                         and Bookrunner of the Senior Facilities to the Company and its affiliates.

 

		11.3	We
                                         and the Company acknowledge that we and our affiliates may not act in more than one capacity
                                         in relation to this transaction and may not provide debt financing, equity capital or
                                         other services to other persons with whom the Company or their affiliates may have conflicting
                                         interests in respect of the Transaction and the Senior Facilities provided that this
                                         prohibition shall not apply to us or our affiliates to the extent that the exclusivity
                                         arrangements entered into with you and/or your affiliates related to the performance
                                         of other advisory roles in connection with your participation in the Transaction have
                                         terminated.

 

		11.4	Neither
                                         the relationship described in this letter nor the services provided by us or any of our
                                         respective affiliates to you or any other matter will, subject at all times to the provisions
                                         of paragraph 11.3 above, give rise to any fiduciary, equitable or contractual duties
                                         (including, without limitation, any duty of confidence) which could prevent or hinder
                                         us or our respective affiliates providing similar services to other customers, or otherwise
                                         acting on behalf of other customers or for their own account. However, we shall not use
                                         any Confidential Information in connection with providing services to other persons or
                                         furnish such information to such other persons. We shall not, nor shall any of our respective
                                         affiliates, be required to account to you for any payment, remuneration, profit or benefit
                                         it obtains as a result of acting in the ways referred to above or as a result of entering
                                         into any transaction with you or providing services to you.

 

    12

     

    

 

		11.5	We
                                         agree that we shall not use any Confidential Information in connection with providing
                                         services to other persons or furnish such information to such other persons.

 

		11.6	The
                                         Company acknowledges that we have no obligation to use any information obtained from
                                         another source for the purposes of the Senior Facilities or to furnish such information
                                         to the Company or its affiliates.

 

		11.7	We
                                         reserve the right to employ the services of certain of our respective affiliates (the
                                         “Arranger Affiliates”) in providing services incidental to the provision
                                         of the Senior Facilities and to the extent we employ the services of such an Arranger
                                         Affiliate, we will procure that our Arranger Affiliate performs its obligations as if
                                         such Arranger Affiliate was a party to this letter in the relevant capacity. The Company
                                         agrees that (notwithstanding paragraph 9 (Confidentiality)) in connection with
                                         the provision of such services, we and our Arranger Affiliates may share with each other
                                         any Confidential Information or other information relating to the Company and the Target
                                         Group, subject to the Arranger Affiliates agreeing to keep confidential any such Confidential
                                         Information or other information to the extent it is confidential.

 

		12.	NO
                                         ASSIGNMENTS

 

		12.1	Subject
                                         to the other provisions of this paragraph 12 (No Assignments) we shall not assign
                                         any of our rights or transfer any of our rights or obligations under the Commitment Documents
                                         other than to any of our respective affiliates without the prior written consent of the
                                         other parties (and any attempted assignment or transfer without such consent shall be
                                         null and void).

 

		12.2	The
                                         Company shall not assign any of its rights or transfer any of its rights or obligations
                                         under the Commitment Documents.

 

		12.3	We
                                         may delegate any or all of our rights and obligations under the Commitment Documents
                                         to any of our affiliates (each a “Delegate”) and may designate any Delegate
                                         as responsible for the performance of its appointed functions under the Commitment Documents,
                                         but we shall remain responsible for the performance by each Delegate of any such functions
                                         under the Commitment Documents and for any loss or liability suffered by you or a result
                                         of such Delegate’s failure to perform such obligations.

 

    13

     

    

 

		13.	TERMINATION

 

		13.1	Our
                                         commitments and other obligations set out in this letter shall become effective only
                                         if the offer contained in this letter is accepted in writing by the Company in the manner
                                         set out in paragraph 13.3 below, and such commitment and obligations shall otherwise
                                         expire and terminate on the earliest of:

 

		(a)	11.59
                                         p.m. on the date which falls 5 Business Days after the Acquisition Closing Date;

 

		(b)	11.59
                                         p.m. on the date falling nine months from the date of this letter (as such time and date
                                         may be extended from time to time with our consent (acting reasonably));

 

		(c)	the
                                         date on which the Senior Facilities Agreement and the Intercreditor Agreement are signed
                                         by all the relevant parties thereto;

 

		(d)	the
                                         date on which the Company (or any affiliate) determines and notifies us in writing (which
                                         notification shall be provided as soon as reasonably practicable after making such determination)
                                         that:

 

		(i)	the
                                         Company has conclusively withdrawn or terminated its bid for the Target Group;

 

		(ii)	the
                                         Company’s offer for the Target Group has been conclusively rejected;

 

		(iii)	the
                                         Company is conclusively excluded or rejected from the sale process by the Vendors for
                                         any reason or the Vendors terminate definitively such sale process or enter into a sale
                                         and purchase agreement in respect of the Target Group with a bidder other than the Company
                                         or any of its affiliates; or

 

		(iv)	the
                                         Acquisition Agreement is terminated prior to the Acquisition Closing Date by either party
                                         thereto in accordance with its terms; and

 

		(e)	with
                                         respect to the commitments and obligations of all or any parties to this letter as the
                                         Company may elect at its sole discretion, from the date on which the Company terminates
                                         its obligations under this letter with respect to any such parties, which the Company
                                         shall have the right to do upon at least 3 Business Days prior written notice if Nomura
                                         International plc in its capacities as Arranger, Underwriter, Bookrunner and/or Original
                                         Lender is in breach of any material provision of the Commitment Documents; and

 

		(f)	only
                                         with respect to the commitments and obligations of Macquarie Corporate Holdings Pty Limited
                                         (UK Branch), the date on which the Company terminates its obligations with respect to
                                         Macquarie Corporate Holdings Pty Limited (UK Branch) under this letter, which the Company
                                         shall have the right to do upon at least 3 Business Days prior written notice if Macquarie
                                         Corporate Holdings Pty Limited (UK Branch) is in breach of any material provision of
                                         the Commitment Documents,

 

or,
in each case, such later date as agreed by us.

 

    14

     

    

 

		13.2	Notwithstanding
                                         paragraph 13.1, if the Company exercises its termination rights pursuant to paragraphs
                                         (e) or (f) of paragraph 13.1 above in respect of an Arranger, Underwriter, Bookrunner
                                         or Original Lender (the “Defaulting Finance Party”), the Company’s rights
                                         against and obligations to any other Arrangers, Underwriters, Bookrunner and Original
                                         Lenders (other than the Defaulting Finance Party) under the Commitment Documents shall
                                         remain in full force and effect, provided that, within fifteen (15) Business Days of
                                         such termination, you shall have the right, following consultation with the Arrangers
                                         (other than the Defaulting Finance Party), to appoint additional Arrangers, Bookrunners,
                                         Original Lenders and Underwriters in respect of the respective commitments of the Defaulting
                                         Finance Party, on the same terms contained within the Commitment Documents and on the
                                         same economics as the Defaulting Finance Party.

 

		13.3	If
                                         the Company does not accept the offer made by us in this letter by signing and scanning
                                         counter-signed copies of:

 

		(a)	this
                                         letter;

 

		(b)	the
                                         Fee Letter; and

 

		(c)	the
                                         Syndication Strategy Letter,

 

to
the contacts identified on the signature pages below before 11.59 pm (in London) on the date of this letter, such offer shall
terminate on that date.

 

		14.	SURVIVAL

 

The
rights and obligation of the parties hereto under this paragraph and paragraphs 4 (Fees, Costs And Expenses), 5 (Payments),
6 (Information), 7 (Indemnity), 8 (Third Party Rights), 9 (Confidentiality), 10 (Publicity/Announcements),
11 (Conflicts), 12 (No Assignments), 15 (Remedies and Waivers) to 19 (Governing Law And Jurisdiction)
inclusive shall survive and continue after any expiry or termination of our obligations (including any of our permitted successors
and assigns) under the Commitment Documents but shall:

 

		(a)	in
                                         the case of paragraphs 6 (Information), 7 (Indemnity) and 9 (Confidentiality),
                                         terminate on the execution of the Senior Facilities Agreement to the extent that substantially
                                         equivalent provisions are contained therein (but without prejudice to the accrued rights
                                         and obligations at the time of termination); and

 

		(b)	to
                                         the extent the Senior Facilities Agreement is not signed, in the case of paragraph 9
                                         (Confidentiality), terminate on the second anniversary of the date of this letter.

 

		15.	REMEDIES
                                         AND WAIVERS

 

The
failure to exercise or delay in exercising a right or remedy under the Commitment Documents will not constitute a waiver of that
right or remedy or a waiver of any other right or remedy and no single or partial exercise of any right or remedy will preclude
any further exercise of that right or remedy, or the exercise of any other right or remedy. Except as expressly provided in the
Commitment Documents, the rights and remedies contained in the Commitment Documents are cumulative and not exclusive of any rights
or remedies provided by law.

 

    15

     

    

 

		16.	PARTIAL
                                         INVALIDITY

 

If,
at any time, any provision of the Commitment Documents is or becomes illegal, invalid or unenforceable in any respect under any
law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity
or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.

 

		17.	ENTIRE
                                         AGREEMENT

 

		17.1	The
                                         Commitment Documents set out the entire agreement between us with regards to the arranging
                                         and underwriting of the Senior Facilities and the managing of primary syndication of
                                         the Senior Facilities and supersede any prior oral and/or written understandings or arrangements
                                         relating to the Senior Facilities.

 

		17.2	Any
                                         provision of the Commitment Documents may only be amended or waived by way of a written
                                         amendment or waiver signed by the Company and us (or, if applicable, the Agent acting
                                         at our direction).

 

		18.	COUNTERPARTS

 

The
Commitment Documents may be executed in any number of counterparts and all those counterparts taken together shall be deemed to
constitute one and the same Commitment Document. Delivery of a counterpart of a Commitment Document by email attachment shall
be an effective mode of delivery.

 

		19.	GOVERNING
                                         LAW AND JURISDICTION

 

		19.1	Each
                                         Commitment Document and any non-contractual obligations arising out of or in connection
                                         with it shall be governed by and construed in accordance with English law.

 

		19.2	For
                                         our benefit only, you agree that the courts of England have exclusive jurisdiction to
                                         settle any disputes in connection with the Commitment Documents and any non-contractual
                                         obligation arising out of or in connection with it and you accordingly submit to the
                                         jurisdiction of the English courts.

 

		19.3	Each
                                         of the parties to this letter further agrees:

 

		(a)	to
                                         waive any objection to the English courts on grounds of inconvenient forum or otherwise
                                         as regards proceedings in connection with the Commitment Documents and any non-contractual
                                         obligation arising out of or in connection with the Commitment Documents;

 

		(b)	that
                                         a judgment or order of an English court in connection with the Commitment Documents and
                                         any non-contractual obligation arising out of or in connection with it is conclusive
                                         and binding on it and may be enforced against it in the courts of any other jurisdiction;
                                         and

 

		(c)	that
                                         nothing in this paragraph 19 (Governing Law and Jurisdiction) limits our right
                                         to bring proceedings against the Company in connection with the Commitment Documents
                                         and any non-contractual obligation arising out of or in connection with the Commitment
                                         Documents:

 

		(i)	in
                                         any other court of competent jurisdiction; or

 

		(ii)	concurrently
                                         in more than one jurisdiction.

 

		19.4	We
                                         acknowledge that the Company may seek specific performance by us and any other finance
                                         parties (howsoever described) in respect of our commitments and of our agreement to enter
                                         into and to make advances under the Finance Documents for the funding of the Transaction
                                         in addition to any other available remedies and that damages are not an adequate remedy
                                         with respect to these matters.

 

(The
rest of this page is intentionally left blank)

 

    16

     

    

 

Yours
faithfully,

 

	/s/
        Patrice Maffre
	 
	For
    and on behalf of 

    Nomura International plc 

    as Arranger	 
	 	 
	Name:         Patrice
    Maffre	 
	Title:           Managing
    Director	 
	Address:    1
    Angel Lane, London, EC4R 3AB,                      United Kingdom	 
	Email:          patrice.maffre@nomura.com	 
	 	 
	/s/
        Patrice Maffre
	 
	For
    and on behalf of 

    Nomura International plc

    as Underwriter	 
	 	 
	Name:       Patrice
    Maffre	 
	Title:         Managing
    Director	 
	Address:  1
    Angel Lane, London, EC4R 3AB,                    United Kingdom	 
	Email:        patrice.maffre@nomura.com	 
	 	 
	/s/
        Patrice Maffre
	 
	for
    and on behalf of	 
	Nomura
    International plc	 
	as
    Bookrunner	 
	 	 
	Name:      Patrice
    Maffre	 
	Title:        Managing
    Director	 

 

(Project Chaucer - Signature Page to the Commitment Letter)

 

     

     

    

 

	/s/
                                         Camelia Robu

	 	/s/
                                         Timothy Tan
	for
    and on behalf of	 	 
	Macquarie
    Corporate Holdings Pty Limited (UK Branch)	 	 
	as
    Arranger	 	 
	 	 	 
	Name:
    Camelia Robu	 	Timothy
                                         Tan

	Title:
    Managing Director	 	Associate
	 	 	 
	/s/
                                         Camelia Robu

	 	/s/
                                         Timothy Tan

	for
    and on behalf of	 	 
	Macquarie
    Corporate Holdings Pty Limited (UK Branch)
	as
    Underwriter	 	 
	 	 	 
	Name:
    Camelia Robu	 	Timothy
    Tan
	Title:
    Managing Director	 	Associate

	 	 	 
	/s/
                                         Camelia Robu

	 	/s/
                                         Timothy Tan

	for
    and on behalf of	 	 
	Macquarie
    Corporate Holdings Pty Limited (UK Branch)	 	 
	as
    Bookrunner	 	 
	 	 	 
	Name:
    Camelia Robu	 	Timothy
    Tan
	Title:
    Managing Director	 	Associate

 

(Project Chaucer - Signature Page to the Commitment Letter)

 

     

     

    

 

We
acknowledge and agree to the above.

 

	/s/ Carys Damon
	 
	For
    and on behalf of	 
	Gaming
    Acquisitions Limited

    as the Company by:	 
		 
	Name: Carys Damon

        
	 
	Title: Director	 
	Date: June 11, 2019	 

 

(Project Chaucer - Signature Page to the Commitment Letter)

 

     

     

    

 

Execution
Version

 

APPENDIX
A

 

TERM
SHEET FOR PROJECT CHAUCER

 

This
is the “Term Sheet” referred to in the commitment letter dated 11 June 2019 between the Arrangers and Underwriters
named therein and Gaming Acquisitions Limited as it may be amended, amended and restated, supplemented, modified or replaced from
time to time (the “Commitment Letter”) and to which this term sheet is attached. Unless otherwise defined in
this term sheet, capitalised terms used in this term sheet and not defined herein have the meanings given to them in the Commitment
Letter, the Precedent ICA or the Precedent SFA (as applicable).

 

	Part
    1:      £140 MILLION FACILITY B1
	 
	1.1      Facility:	Term
    loan facility B1 (Facility B1).
	 	 
	1.2      Amount:	£140
    million.
	 	 
	1.3      Currency:	GBP.
	 	 
	1.4      Borrower:	Gaming
    Acquisitions Limited.
	 	 
	1.5      Ranking:	Guaranteed
    and secured as set out in Part 5 (Other Terms) and ranking pari passu with (i) each other facility under the
    Senior Facilities Agreement (as defined below) and (ii) any existing or future first secured unsubordinated Financial Indebtedness
    of the Obligors, and ahead of any other Financial Indebtedness of the Obligors (as defined below).
	 	 
	1.6      Maturity
    Date:	The
    date falling eighty-four (84) months after the date of the first utilisation under the Senior Facilities Agreement (the Closing
    Date).  
	 	 
	1.7      Purpose:	To
        be applied directly or indirectly, in or towards,:

         

        (a)       satisfaction
        of the consideration payable for the Acquisition;

         

        (b)       the
        payment of Acquisition Costs;

         

        (c)       refinancing
        or otherwise discharging existing Inspired Group debt (the “Existing
        Facilities”) and paying any breakage costs, redemption premium, make-whole costs and other fees, costs and expenses
        payable in connection with such refinancing and/or acquisition; and

         

        (d)       financing
        other related amounts, including fees, costs and expenses,

         

        in
each case, as set out in the Funds Flow Memorandum.

	 	 
	1.8      Availability
    Period:	On
    and from the date the Senior Facilities Agreement is signed to the end of the Certain Funds Period.
	 	 
	1.9      Maximum
    Number of Loans:	Facility
        B1: One

         

        Facility
B2: One

	 	 
	1.10    Repayment:	Bullet
    repayment on the Maturity Date.
	 	 
	1.11   Call
    Protection:	The
    Senior Facilities Agreement shall include a soft call provision at 101% which applies for the first 6 months from the Closing
    Date only to voluntary prepayments of Facility B. No prepayment fee shall be due with respect to any participations being
    refinanced directly or indirectly from the proceeds of any indebtedness in respect of which the relevant Facility B Lender
    is an arranger, underwriter or a lender, as the case may be.
	 	 
	1.12    LIBOR
    Floor:	Zero.

 

    Page 1

     

    

 

	Part
    2:      €90 Million FACILITY B2
	 
	2.1      Facility:	Term
    loan facility B2 (Facility B2 and together with Facility B1, Facility B).
	 	 
	2.2      Amount:	€90
    million.
	 	 
	2.3      Currency:	EUR.
	 	 
	2.4      EURIBOR
    Floor:	Zero.
	 	 
	2.5      Other
    Terms:	All
    other terms to reflect the terms in paragraphs 1.4 to 1.12 (inclusive) under  Part 1 (£140 million Facility
    B1).

 

    Page 2

     

    

 

	Part 3:      £20 MILLION MULTICURRENCY REVOLVING FACILITY

 

	3.1      Facility:	Revolving credit facility (the Revolving Facility or RCF) which may be utilised by way of:
	 	 
	 	
        (a)       loans;

         

        (b)       letters
        of credit; and

         

        (c)       Ancillary
Facilities (as defined below).

	 	 
	3.2      Amount:	£20 million or its equivalent in any Optional Currency.
	 	 
	3.3      Optional Currencies:	EUR, USD and others agreed with all the Lenders.
	 	 
	3.4      Borrower:	Gaming Acquisitions Limited and Inspired Gaming (UK) Limited
	 	 
	3.5      Issuing Bank:	A bank capable of issuing letters of credit and bank guarantees to be appointed.1
	 	 
	3.6      Ranking:	Guaranteed and secured as set out in Part 5 (Other Terms) and ranking pari passu with (i) each other facility under the Senior Facilities Agreement (as defined below) and (ii) any existing or future first secured unsubordinated Financial Indebtedness of the Obligors, and ahead of any other Financial Indebtedness of the Obligors (as defined below).
	 	 
	3.7      Maturity Date:	The date falling sixty-six (66) months after the Closing Date.
	 	 
	3.8      Purpose:	Cash drawings under the Revolving Facility to be applied to directly or indirectly finance or refinance the general corporate purposes and/or working capital requirements of the Group (including, without limitation, the financing or refinancing of capital expenditure, any permitted acquisitions, investments and joint ventures, operational restructurings and reorganisation requirements of the Group, any additional OID or other fees and any related fees, costs and expenses).
	 	 
	3.9      Conditions to Utilisation:	The Revolving Facility may not be utilised unless Facility B has been utilised or will be utilised on the same date.
	 	 
	3.10   Availability Period:	From the first utilisation of Facility B to the date falling one month prior to the Maturity Date for the RCF set out above.
	 	 
	3.11    Maximum Number of Utilisations:	No more than 10 utilisations may be outstanding.

 

 

 

 

1 Macquarie will not act as Issuing Bank.

 

    Page 3

     

    

 

	3.12    Repayment:	Each loan shall be repaid on the last day of its Interest Period, subject to standard rollover mechanics if no Facility incurred under the Senior Facilities Agreement has been accelerated following an Event of Default and no Event of Default with respect to non-payment or insolvency is continuing.
	 	 
	3.13    Ancillary Facilities:	An Ancillary Facility may be made available on a bilateral basis and on normal commercial terms by a consenting Lender or an affiliate of a Lender to a Borrower or a Subsidiary of a Borrower which is a member of the Group (and not, for the avoidance of doubt, an Unrestricted Subsidiary) in place of all or part of that Lender’s participation in the Revolving Facility.
	 	 
	 	Ancillary Facilities may consist of overdraft, guarantee, letter of credit, short term loan, derivatives or foreign exchange facilities or any other facility or accommodation agreed between the Company and the relevant Lender.  
	3.14    EURIBOR/LIBOR Floor:	Zero.
	 	 
	3.15    Cleandown	None.

 

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	Part 4:      PRICING
	 
	4.1      Agency Fee:	To be separately agreed with the Agent and set out in a fee letter.
	 	 
	4.2      Security Agent Fee:	To be separately agreed with the Security Agent and set out in a fee letter.
	 	 
	4.3      Other Fees:	As set out in the Fee Letters.
	 	 
	4.4      Commitment Fee:	Revolving Facility: 30% of the applicable Margin per annum on the unused and uncancelled amount of the Revolving Facility for the applicable Availability Period. Accrued commitment fee is payable quarterly in arrear during the relevant Availability Period, on the last day of the relevant Availability Period and on the cancelled amount of the Revolving Facility at the time a full cancellation is effective.
	 	 
	4.5      Margin:	Subject to the Margin Ratchet (as defined below):

                                                 

                                                Facility
B1: 5.50% per annum.

                                                 

                                                Facility
B2: 5.00% per annum. 

	 	 
	 	RCF: 5.50% per annum.
	 	 
	4.6      Margin
    Ratchet:	Provided
                                         that:  

                                                                      

                                                                     (a)       no
                                         Event of Default is continuing;

                                                                      

                                                                     (b)       the
                                         third full Quarter since the Closing Date has expired; and

                                                                      

                                                                     (c)       Total
                                         Net Leverage Ratio is within a range set out below, the Margin in respect of Facility
                                         B and the RCF shall vary as set out below (it being understood that the Margin may reduce
                                         by more than one level at any one time):  

 

	 	Total
    Net Leverage Ratio 	 	Facility
B1 Margin

(% per annum)
	 	Facility
    B2Margin

 (% per annum)	 	RCF
Margin

(% per annum)

	 	Greater
than or equal to [●]:12
	 	5.50	 	5.00	 	5.50
	 	 	 	 	 	 	 	 
	 	Less
    than [●]:13 but greater than or equal to [●]:14	 	5.25	 	4.75	 	5.25
	 	 	 	 	 	 	 	 
	 	Less
    than [●]:15	 	 5.00	 	4.50	 	5.00

 

 

 

 

		2	To be set at 0.5x below opening leverage.

		3	To be set at 0.5x
below opening leverage.

		4	To be set at 1.0x below opening leverage.

		5	To be set at 1.0x below opening leverage.

 

    Page 5

     

    

 

	 	The
        Margin ratchet shall be tested by reference to the annual audited consolidated financial statements and the consolidated
        quarterly financial statements and the related compliance certificates, and each Margin adjustment will be effective on
        the Business Day on which the Agent receives the compliance certificate in relation to the relevant annual audited consolidated
        financial statements and/or consolidated quarterly financial statements.

         

        If
        the compliance certificate relating to the relevant annual audited consolidated financial statements shows that a higher
        rate of Margin should have applied during a certain period, then the Company shall (or shall ensure the relevant Borrower
        shall) pay to the Agent the amount necessary to put the Agent and the Lenders in the position they would have been in
        had the appropriate rate applied during such period.

         

        If
        the compliance certificate relating to the relevant annual audited consolidated financial statements shows that a lower
        rate of Margin should have applied during a certain period, then the amount equal to the difference between (i) the amount
        of the interest that the relevant Borrower would have paid in relation to such period had the correct Margin been applied
        and (ii) the amount of the interest that the relevant Borrower actually paid in relation to such period shall be netted
        off against the next interest payment in respect of each applicable loan but only to the extent that the proportionate
        adjustment is made against participations in the applicable loans which are held by Lenders which held such participations
        during the relevant period.

         

        Any
        decrease or increase in the Margin for a loan shall take effect on the date which is five Business Days after receipt
        by the Agent of the relevant compliance certificate.

         

        While
an Event of Default is continuing, the Margin for each loan under Facility B and the RCF shall be the highest rate set out above
for a loan under the relevant facility. Once the relevant Event of Default is no longer continuing, the Margin will be recalculated
on the basis of the most recently delivered compliance certificate provided with the annual audited consolidated financial statements
or consolidated quarterly financial statements and any applicable decrease in the Margin will (provided that no other Event of
Default is then continuing) apply with effect from the first Business Day on which the relevant Event of Default is no longer
continuing.

 

    Page 6

     

    

 

	4.7      Interest
    Periods for Loans:	Facility
        B:Two, three or six months or one month if selected by the Company at its discretion to the extent necessary or desirable
        to implement hedging or any other period agreed between the Company and the Agent (acting on the instructions of all Lenders
        in relation to the relevant Loan).

         

        RCF:
        One, two, three or six months or any other period agreed between the Company and the Agent (acting on the instructions
        of all Lenders in relation to the relevant Loan).

         

	4.8      Interest
    on Loans:	The
    aggregate of the applicable:
	 	 
	 	(a)      Margin;
    and
	 	 
	 	(b)      LIBOR
    or, in relation to any loan in euro, EURIBOR.
	 	 
	4.9      Payment
    of Interest on LCs:	Computed
    at the rate equal to the applicable Margin payable quarterly in arrear (or such shorter period ending on the relevant Expiry
    Date). Accrued LC interest is also payable on the amount of any reduction in the outstanding amount of a Letter of Credit
    at the time that reduction becomes effective.
	 	 
	4.10    Payment
    of Interest on Loans:	Computed
    at the rate equal to the applicable Margin payable at the end of each Interest Period in arrears.
	 	 
	4.11    Issuing
    Bank Fee:	As
    agreed with the Issuing Bank (if any).
	 	 
	4.12    Issuance/
    Administration Fee:	As
    set out in a fee letter agreed with the Issuing Bank (if any).

 

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	Part
    5:      other terms
	 
	5.1      Documentation:	The
        Facilities will be made available under a senior facilities agreement which will be based on and consistent with the agreed
        recent European “covenant-loose” facilities agreement, a redacted copy of which has been provided by counsel
        to the Arrangers to counsel to the Company (the SFA Precedent) amended to reflect the terms set out in this
        term sheet and otherwise in form and substance satisfactory to the parties thereto (each acting reasonably) (the Senior
        Facilities Agreement).

         

        An
        intercreditor agreement (the Intercreditor Agreement) will be entered into between (among others) the Obligors,
        the Lenders, the Agent and the Security Agent and will include, among other things, bail-in provisions. The Intercreditor
        Agreement will be based on an intercreditor agreement entered into in connection with the agreed recent European “covenant-loose”
        facilities agreement, a redacted copy of which intercreditor agreement has been provided by counsel to the Arrangers to
        counsel to the Company (the ICA Precedent), as amended to reflect the terms set out in this term sheet (including
        Schedule 4 (Intercreditor Principles)) and otherwise in form and substance satisfactory to the parties thereto
        (each acting reasonably).

         

        Other
        documentation will include the Transaction Security Documents, fee letters and other ancillary documents (together with
        the Senior Facilities Agreement and the Intercreditor Agreement, the Finance Documents).

         

        The
first draft of the Senior Facilities Agreement shall be prepared by counsel to the Borrower and the first draft of the Intercreditor
Agreement shall be prepared by counsel for the Lender.

	 	 
	5.2      Mandated
    Lead Arrangers:	Nomura
    International plc and Macquarie Corporate Holdings Pty Limited (UK Branch).
	 	 
	5.3      Lenders:	As
    selected by the Bookrunner.
	 	 
	5.4      Agent:	Lucid
    Agency Services Limited.
	 	 
	5.5      Security
    Agent:	Lucid
    Trustee Services Limited.
	 	 
	5.6      Reference
    Banks:	Appointment
    thereof subject, in each case, to the consent of the relevant entity.
	 	 
	5.7      Group:	The
    Company and its subsidiaries from time to time.
	 	 
	5.8      Company:	Inspired
    Entertainment Inc.
	 	 
	5.9      Original
    Borrowers:	Gaming
    Acquisitions Limited and Inspired Gaming (UK) Limited.

 

    Page 8

     

    

 

	5.10    Original
    Guarantor:	a)       Inspired
        Entertainment Inc.

         

        b)       Inspired
        Gaming USA Inc.

         

        c)       DMWSL
        633 Limited

         

        d)       DMWSL
        632 Limited

         

        e)       DMWSL
        631 Limited

         

        f)        Gaming
        Acquisitions Limited

         

        g)       Inspired
        Gaming Group Limited

         

        h)       Inspired
        Gaming (Holdings) Limited

         

        i)        Inspired
        Gaming (International) Limited

         

        j)        Inspired
        Gaming (UK) Limited

         

        k)       Inspired
Gaming (Greece) Limited.

	 	 
	5.11    Original
    Obligors:	The
    Original Borrowers and the Original Guarantors.
	 	 
	5.12    Guarantors:	The
    Original Guarantors and, subject to the security principles set out in Schedule 1 (Agreed Security Principles) hereto
    (the Agreed Security Principles), each Material Company (as defined below) from time to time and such other
    members of the Group as are required to ensure that there are guarantees from members of the Group (excluding any Guarantor
    that generates negative EBITDA) who have an aggregate of earnings before interest, tax, depreciation and amortisation (calculated
    on the same basis as Consolidated EBITDA but on an unconsolidated basis and excluding goodwill, all intra-group items and
    investments in subsidiaries of any member of the Group) representing at least 80 % of Consolidated EBITDA of the Group (for
    this purpose excluding (i) any members of the Group which are prevented from becoming a Guarantor due to legal prohibitions
    or would not be required to become a Guarantor in accordance with the Agreed Security Principles, (ii) any on-balance sheet
    joint ventures and (iii) any Guarantor that generates negative EBITDA) (the Guarantor Coverage) determined annually
    based on the audited financial statements of the Group.
	 	 
	5.13    Material
    Company:	At
        any time:

         

        (a)       an
        Obligor;

         

        (b)       a
        member of the Group that holds shares in an Obligor; and

         

        (c)       any
member of the Group which has earnings before interest, tax, depreciation and amortisation (calculated on the same basis as Consolidated
EBITDA) on an unconsolidated basis representing 5.0% or more of the Consolidated EBITDA of the Group.

	 	 
	5.14    Obligors:	The
    Borrowers and the Guarantors.

 

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	5.15    Changes
    to Obligors:	A
    customary mechanism will be included in the Senior Facilities Agreement to enable any subsidiary of the Company which is either
    (i) is incorporated in the same jurisdiction as an existing Borrower, (ii) is incorporated in England and Wales or the United
    States of America6 or (iii) has been approved by all the Lenders of the relevant facility to accede as borrower.
    A customary mechanism will also be included to enable Borrowers and Guarantors to resign.
	 	 
	5.16   Transaction
    Security:	Subject
        to the Agreed Security Principles, the guarantee and security package shall comprise substantially all assets and stock
        of the Obligors (the documents in respect of such security together being, the Transaction Security Documents).

         

        The
backstop date for post-closing guarantees and security to be 90 days following the Closing Date for members of the Target Group
and thereafter 120 days following delivery of the relevant Annual Financial Statements or, as the case may be, with respect to
any newly acquired Material Subsidiaries, following completion of the relevant acquisitions, provided in each case that a deadline
of 150 days will apply in respect of any new jurisdiction (i.e. a jurisdiction in which no existing Obligor is located).

	 	 
	5.17   Initial
    Conditions Precedent:	Conditions
    precedent to initial utilisation of Facility B and the RCF during the Certain Funds Period shall be strictly limited to those
    set out in Schedule 3 (Conditions Precedent to initial Utilisation).
	 	 
	5.18   Further
    conditions precedent:	Subject
    to the initial conditions precedent, the Lenders will only be obliged to comply with a utilisation request other than one
    to which the Certain Funds provisions set out below apply, if on the proposed utilisation date for that loan (A) in the case
    of a RCF rollover loan, (a) no Facility incurred under the Senior Facilities Agreement has been accelerated following an Event
    of Default and (b) no  Event of Default with respect to non-payment or insolvency is continuing and (B) in the case of
    any other loan, no Default has occurred and is continuing.
	 	 
	5.19   Certain
    Funds:	(a)       Subject
        to the initial conditions precedent and notwithstanding the further conditions precedent, during the Certain Funds Period
        the Lenders will only be obliged to comply with a utilisation request in respect of a Loan, if on the date of the utilisation
        request and on the proposed utilisation date for the Loan:

         

        (i)       no
        Change of Control has occurred;

         

        (ii)       no
        Major Default is continuing or would result from the proposed Loan;

         

        (iii)     all
        the Major Representations are true in all material respects (or, to the extent the underlying representation is already
        subject to materiality, in all respects); and

         

        (iv)     performance
        by the relevant Lender of its obligations under the Senior Facilities Agreement would not result in a mandatory prepayment
        event as described in section 5.26(a) (Prepayment and Cancellation) below occurring.

 

 

 

 

		6	Macquarie will lend to any US borrower via an affiliate
of its European entity. SFA will include ability to designate the appropriate lender.

 

    Page 10

     

    

 

	 	        (b)       During
        the Certain Funds Period (save in circumstances where, pursuant to paragraph (a) above, a Lender is not obliged to comply
        with a utilisation request), none of the finance parties shall be entitled to:

         

        (i)       cancel
        any of its Commitments to the extent to do so would prevent or limit the making of a Loan;

         

        (ii)       rescind,
        terminate or cancel the Senior Facilities Agreement or any of Facility B or the RCF or exercise any similar right or remedy
        or make or enforce any claim under or in respect of any finance documents it may have to the extent to do so would prevent
        or limit the making of a Loan;

         

        (iii)      refuse
        to participate in the making of a Loan;

         

        (iv)     exercise
        any right of set-off or counterclaim in respect of a Loan to the extent to do so would prevent or limit the making of
        a Loan; or

         

        (v)      cancel,
        accelerate or cause repayment or prepayment of any amounts owing hereunder or under any other finance document to the
        extent to do so would prevent or limit the making of a Loan,

         

        provided
        that immediately on expiry of the Certain Funds Period, all rights, remedies and entitlements shall be available to
        the finance parties notwithstanding that they may not have been used or been available for use during the Certain Funds
        Period.

	 	 
	5.20   Certain
    Funds Period:	The
        period beginning on the date of the Senior Facilities Agreement and ending on (and including) the earliest of:

         

        (a)       11.59
        p.m. on the date which falls five Business Days after the acquisition closing date;

         

        (b)       11.59
        p.m. on the long-stop date under the Acquisition Agreement (as such time and date may be extended from time to time with
        the consent of the Mandated Lead Arrangers (acting reasonably));

         

        (c)       11.59
p.m. on the date falling 9 months from the date of the Commitment Letter (as such time and date may be extended from time to time
with the consent of the Mandated Lead Arrangers (acting reasonably)); and

 

    Page 11

     

    

 

	 	        (d)       the
        date on which the Company (or any of its Affiliates) determines and notifies the Agent in writing (which notification
        shall be provided as soon as reasonably practicable after making such determination) that:

         

        (i)       the
        Company has conclusively withdrawn or terminated its bid for the Target;

         

        (ii)      the
        Company’s offer for the target has been conclusively rejected; or

         

        (iii)     the
        Company is conclusively excluded or rejected from the sale process by the vendors for any reason or the vendors terminate
        definitively such sale process or enter into a sale and purchase agreement in respect of the Target Group with a bidder
        other than the Company or any of its Affiliates; or

         

        (iv)     the
        Acquisition Agreement is validly terminated prior to the acquisition closing date by either party thereto in accordance
        with its terms.

	 	 
	5.21    Major
    Defaults, Undertakings and Representations:	Major
        Default shall be defined to mean, with respect to the Original Obligors only (and excluding any procurement obligations
        on the part of the Original Obligors with respect to any other member of the Group or the Target Group) any event or circumstance
        constituting a Default that is continuing under any of paragraph (a) (Payment Default), paragraph (c) (Other
        obligations) insofar as it relates to a breach of any Major Undertaking, paragraph (d) (Misrepresentation)
        insofar as it relates to a breach of any Major Representation in any material respect, paragraph (i) (Unlawfulness
        and Invalidity) and paragraphs f (Insolvency) to (h) (Creditors’ process) (each inclusive)
        in each case of Section 5.39 (Events of Default) to this term sheet.

         

        Major
        Representation shall be defined to mean a representation or warranty with respect to the Original Obligors only (and excluding
        any procurement obligations on the part of the Original Obligors with respect to any other member of the Group or the
        Target Group) under any of paragraphs (a) (Status) to (e) (Validity and admissibility in evidence) (inclusive)
        and paragraph (p) (Anti-Corruption Law and Sanctions) in each case of Section 5.30 (Representations) to
        this term sheet.

         

        Major
Undertaking shall be defined to mean an undertaking with respect to the Original Obligors only (and excluding any procurement
obligations on the part of the Original Obligors with respect to any member of the Group or the Target Group) in each case under
any of paragraphs (e) (Anti Corruption and sanctions), (g) (Restriction on Merger), (h) (No Change of Business),
(i) (Restriction on Acquisitions), (j) (Restrictions on joint ventures), (k) (Holding Company), (n) (Pari
Passu Ranking), (o) (Negative Pledge), (p) (Restriction on Disposals), (r) (Restriction on Loans and Credit),
(s) (Restriction on Dividends and Share Redemption), (t) (Restriction on Payments under Intra-Group Loans and any other
Subordinated Debt), (w) (Restriction on Financial Indebtedness), (x) (Restriction on Guarantees and Indemnities)
and (y) (Restriction on Issuance of Share Capital) in each case of Section 5.35 (General Undertakings) to this term
sheet.

 

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	5.22    Incremental
    Facilities:	A
    mechanism will be included in the Senior Facilities Agreement to enable the Company to establish additional term and revolving
    facilities up to an amount equal to the spare capacity in the “Credit Facilities Basket” (as set out below)
    (each incremental term facility being, an Incremental Term Facility, each revolving incremental facility being,
    an Incremental Revolving Facility and such facilities together being, the Incremental Facilities)
    made available by consenting institutions which, if established, will be made available under the Senior Facilities Agreement,
    will rank pari passu with the other facilities thereunder. Guarantors of an Incremental Facility ranking pari passu
    with Facility B and the RCF in relation to the Transaction Security under the terms of the Intercreditor Agreement shall
    also be Guarantors of Facility B and the RCF and the obligations under Facility B and the RCF shall be secured by the same
    Transaction Security granted in favour of any such pari passu Incremental Facility (subject in all cases to the Agreed
    Security Principles). The ability to establish Incremental Facilities will be subject to compliance with the conditions set
    out in Section 5.24 (Conditions to incurrence of Incremental Facility / Permitted Alternative Debt) below.
	 	 
	5.23    Permitted
    Alternative Debt:	In
    addition to the Incremental Facilities but subject to Section 5.24 (Conditions to incurrence of Incremental Facility /
    Permitted Alternative Debt) below, permission to incur additional debt as loans, bonds or other debt instruments (including
    assumed debt, acquired debt, acquisition debt and refinancing debt) outside of the Senior Facilities Agreement ranking pari
    passu with or subordinated to Facility B (the Permitted Alternative Debt). Guarantors of debt ranking pari
    passu with or subordinate to Facility B and the RCF in relation to the Transaction Security under the terms of the Intercreditor
    Agreement shall also be Guarantors of Facility B and the RCF and the obligations under Facility B and the RCF shall be secured
    by the same Transaction Security granted in favour of any such pari passu debt (subject in all cases to the Agreed
    Security Principles). No creditor of Permitted Alternative Debt shall be entitled to share in any of the Transaction Security
    which is shared with the creditors of Facility B and the RCF or in the benefit of any provisions of the Intercreditor Agreement
    unless such creditor (or its representative) has acceded to the Intercreditor Agreement.7

 

 

 

 

		7	SA Note: All unsecured creditors of Financial Indebtedness
that constitutes Permitted Alternative Debt (subject to a £10m individual de minimis carve out) (and the debtors
thereof) and all secured creditors of Financial Indebtedness that constitutes Incremental Facilities or Permitted Alternative
Debt (and the debtors thereof) will be required to sign/accede to the Intercreditor Agreement.

 

    Page 13

     

    

 

	5.24   Conditions
    to incurrence of Incremental Facility / Permitted Alternative Debt:	(a)       Any
        person selected by the Company (in its sole discretion) may participate in the Incremental Facilities or may provide the
        Permitted Alternative Debt. There shall be no requirement to approach the existing Lender group before the Incremental
        Facilities and/or Permitted Alternative Debt can be established with other third parties. Provided that the conditions
        described in Sections 5.22 (Incremental Facilities) to 5.25 (Credit Facilities Basket) of this term sheet
        have been met, all other terms relating to the relevant Incremental Facility and Permitted Alternative Debt shall be as
        agreed with the relevant lenders providing such Incremental Facility or Permitted Alternative Debt.

         

        (b)       An
        Incremental Facility and Permitted Alternative Debt may only be established if no Event of Default is continuing.

         

        (c)       No
        consent will be required from the existing Lenders (other than a Lender making available the relevant Incremental Facility
        / Permitted Alternative Debt) in order to establish an Incremental Facility and/or incur any other Permitted Alternative
        Debt.

         

        (d)       If
        incurred within 12 months of the Closing Date, there shall be a most favoured nation provision for the all in yield (to
        be defined) applicable to a term Incremental Facility/Permitted Alternative Debt denominated in Sterling or Euro ranking
        pari passu with Facility B and, subject to the Intercreditor Agreement, secured on the Transaction Security with
        headroom set at 1.0% above the all in yield applicable to the existing Facility B1 (in the case of such Incremental Facilities/Permitted
        Alternative Debt denominated in Sterling) or Facility B2 (in the case of such Incremental Facilities/Permitted Alternative
        Debt denominated in Euro) (the MFN Rate) unless the all in yield on Facility B is increased (if applicable,
        at each level of the applicable margin ratchet) by an amount equal to the amount by which the all in yield for such Incremental
        Facility/Permitted Alternative Debt exceeds the MFN Rate.

         

        (e)       An
Incremental Facility or any Permitted Alternative Debt may be amortising on terms and in amounts agreed with the relevant lenders,
provided that, with respect to any Incremental Facility or any Permitted Alternative Debt subject to the Intercreditor Agreement,
the scheduled repayment instalments falling prior to the initial Maturity Date for Facility B as at the date of the Senior Facilities
Agreement do not exceed 1.00% of the principal amount of the relevant Incremental Facility or Permitted Alternative Debt in any
Financial Year or the Facility B Lenders are offered the same amortisation percentage per annum as the proposed Incremental Facility
or Permitted Alternative Debt (irrespective of whether they accept such offer).

 

    Page 14

     

    

 

	 	        (f)       The
        maturity date of an Incremental Facility or any Permitted Alternative Debt shall be as agreed with the relevant lenders,
        provided that, with respect to any Incremental Facility or any Permitted Alternative Debt subject to the Intercreditor
        Agreement the relevant maturity date shall not fall earlier than the initial Maturity Date of Facility B as at the date
        of the Senior Facilities Agreement.

         

        (g)      Each
        Incremental Facility/Permitted Alternative Debt shall rank pari passu or junior to Facility B, the RCF and the other Incremental
        Facilities and may (unless unsecured), subject to the Agreed Security Principles, be guaranteed and secured by the same
        entities and security (unless otherwise agreed).

         

        (h)      Any
        member of the Group which is or, upon the occurrence of such Incremental Facility/Permitted Alternative Debt will become,
        a Guarantor may be a Borrower under the Incremental Facilities and/or the Permitted Alternative Debt, provided that, with
        respect to any Incremental Facilities and/or the Permitted Alternative Debt that does not rank paari passu with the Senior
        Facilities such member of the Group must also be DMWSL 632 Limited or a holding company of DMWSL 632 Limited.

         

        (i)       Providers
        of Incremental Facilities and, subject to footnote 7 above, Permitted Alternative Debt shall accede to the Intercreditor
        Agreement.

         

        (j)       Any
        mandatory prepayment of an Incremental Facility and/or Permitted Alternative Debt that is subject to the Intercreditor
        Agreement must be shared rateably with Facility B.

	 	 
	5.25   Credit
    Facilities Basket	At
        any time:

         

        (a)      an
        amount equal to the aggregate of:

         

        (i)       the
        aggregate principal amount of all prepayments of Facility B, the RCF, any Incremental Facility or any Permitted Alternative
        Debt, any Debt Purchase Transactions entered into by the Group made on or prior to the date of the incurrence of the relevant
        Financial Indebtedness (or to be made in connection with the incurrence of the relevant Financial Indebtedness, including
        pro forma application of the net proceeds therefrom with full pro forma effect consistent with the definition of Consolidated
        Pro Forma EBTIDA); plus

 

    Page 15

     

    

 

	 	

(ii)      an
        amount equal to all accrued and unpaid interest, issue discounts and other customary fees and expenses (including any
        premiums, break costs, repayment protection or defeasance costs) and costs, expenses, taxes and fees incurred in connection
        with such Financial Indebtedness; plus

         

        (iii)     an
        amount equal to the greater of £16m and 25% of Consolidated Pro Forma EBITDA; and

         

        (b)       an
        unlimited amount so long as on a pro forma basis with respect to the utilisation of the principal or equivalent amount
        of the proposed Incremental Facility or Permitted Alternative Debt in full and the proposed use of proceeds thereof (including,
        without limitation, any refinancing of Financial Indebtedness and any acquired Consolidated Pro Forma EBITDA and assuming,
        for the avoidance of doubt, that all the proceeds thereof have been paid away with full pro forma effect consistent with
        the definition of Consolidated Pro Forma EBTIDA) the Total Net Leverage Ratio as at the most recent date for which, at
        Company’s election, annual, quarterly or monthly financial statements are available (or if none are available, the
        Closing Date) does not exceed the Total Net Leverage Ratio as at then prevailing financial covenant level (unless
        any applicable excess is being incurred under paragraph (a) above and it being understood that any Financial Indebtedness
        may be incurred under this paragraph (b) prior to incurring any amount under paragraph (a) above).

         

	5.26   Prepayment
    and Cancellation:	(a)       Illegality

         

        If,
        in any applicable jurisdiction, it becomes unlawful for a Lender to fund, issue or maintain its participation or to perform
        any of its obligations under the Senior Facilities Agreement (or it becomes unlawful for any affiliate of a Lender for
        that Lender to do so), its commitments shall be cancelled immediately and its share of the utilisations shall be repaid.

         

        The
        Senior Facilities Agreement will include customary Issuing Bank illegality provisions.

         

	 	(b)       Voluntary
        Cancellation

         

        The
        Company may, on not less than 3 Business Days’ prior notice, cancel the whole or any part (being a minimum amount
        of, with respect to Facility B, £1,000,000 and, with respect to the RCF, £500,000) of an Available Facility.

         

 

    Page 16

     

    

 

	 	(c)       Voluntary
        Prepayment – Facility B 

         

        Utilisations
        may be prepaid after the last day of the relevant Availability Period in whole or in part on 3 Business Days’ prior
        notice (but, if in part, by a minimum amount of £1,000,000).

         

	 	(d)       Voluntary
        Prepayment - Revolving Facility 

         

        Utilisations
        may be prepaid in whole or in part on 3 Business Days’ prior notice (but, if in part, by a minimum amount of £500,000).

         

	 	(e)       Increased
        Costs, Tax Gross-Up and Tax Indemnity

         

        The
        Company may cancel the commitment of and prepay any Lender that makes a claim under these provisions (or require such
        a Lender to transfer its commitments).

         

	 	(f)       Change
        of Control/Exit

         

        The
        Company shall, promptly upon becoming aware, provide a written notice to the Agent of any Change of Control, flotation
        of any member of the group or holding company of any member of the Group or a sale of all or substantially all of the
        assets of the Group. Each Lender shall have 15 Business Days after the occurrence of a Change of Control to exercise an
        individual right, on 30 Business Days’ written notice to the Company, to cancel all its commitments and require
        that all its outstanding participations in utilisations are repaid with accrued interest and all other amounts accrued
        under the Finance Documents, whereupon such commitments will be cancelled and all such amounts will be immediately due
        and payable.

         

        “Change
        of Control” means:

         

        (i)       Inspired
        Entertainment Inc. ceasing to control directly DMWSL 633 Limited;

         

        (ii)      DMWSL
        633 Limited ceasing to control directly DMWSL 632 Limited;

         

        (iii)     DMWSL
        632 Limited ceasing to control directly DMWSL 631 Limited;

         

        (iv)     DMWSL
        631 Limited ceasing to control directly Gaming Acquisitions Limited;

         

        (v)     Gaming
        Acquisitions Limited ceasing to control directly Inspired Gaming Group Limited;

         

        (vi)     Inspired
        Gaming Group Limited ceasing to control directly Inspired Gaming (Holdings) Limited;

         

        (vii)    Inspired
Entertainment Inc. ceasing to control directly or indirectly Target; and/or

 

    Page 17

     

    

 

	 	(viii)   any
        person or group of persons acting in concert gaining direct or indirect control of Inspired Entertainment Inc.

         

        “control”
        of any entity other than Inspired Entertainment Inc. means:

         

        (a)       the
        power (whether by way of ownership of shares, proxy, contract, agency or otherwise to:

         

        (i)       cast,
        or control the casting of, 100% of the maximum number of votes that might be cast at a general meeting of that entity;
        or

         

        (ii)      appoint
        or remove all, or the majority, of the directors or other equivalent officers of that entity; or

         

        (b)       the
        holding legally and beneficially of 100% of the issued share capital of that entity.

         

        “control”
        of Inspired Entertainment Inc. means:

         

        (a)       the
        power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to:

         

        (i)       appoint
        or remove all, or the majority, of the directors or other equivalent officers of Inspired Entertainment Inc.; or

         

        (ii)      cast,
        or control the casting of, more than 35% of the maximum number of votes that might be cast at a general meeting of Inspired
        Entertainment Inc.; or

         

        (b)       the
        holding beneficially of more than 35% of the issued share capital of Inspired Entertainment Inc..

         

        For
        the avoidance of doubt, a listing which does not result in the Change of Control shall not trigger a prepayment obligation.

	 	 
	 	(g)       Mandatory
        Prepayment - Disposals

         

        The
        proceeds of all disposals (less reasonable expenses and taxes incurred) shall be applied in prepayment of the Facilities
        promptly on receipt as set out below, other than proceeds which:

         

        (i)       do
        not exceed individual and aggregate de minimis amounts of £1,000,000 respectively £3,000,000;

 

    Page 18

     

    

 

	 	        (ii)      are
        applied towards investment in the business of the Group as soon as possible but in any event within 12 months of receipt
        (or are committed to be applied by the relevant Group member within such 12-month period and those proceeds are in fact
        reinvested within 6 months after the end of such 12-month period); or

         

        (iii)     arise
as a result of certain specified categories of permitted disposals to be agreed.

	 	 
	 	(h)       Mandatory
        Prepayment - Excess Cashflow

         

        An
amount equal to the Applicable Percentage (as set out in the table below) of Excess Cashflow for any Financial Year (commencing
in respect of the first full Financial Year commencing after the Closing Date) of the Company shall be applied in prepayment of
the Facilities as set out below:

 

	 	Total
    Net Leverage Ratio	 	Applicable
    Percentage (%)
	 	 	 	 
	 	Greater
    than or equal to [●]:18	 	50
	 	 	 	 
	 	Less
    than [●]:19 but greater

 than or equal to [●]:110	 	25
	 	 	 	 
	 	Less
    than [●]:111	 	zero

  

	 	A
        de minimis amount of the higher of £3,000,000 and 5.0% of Consolidated Pro Forma EBTIDA, together with any
        amounts applied in voluntary prepayment or towards debt buy backs shall be deducted prior to any such prepayment but after
        the applicable percentage set out above is calculated.

         

        (i)       Mandatory
        Prepayment – Acquisition Proceeds

         

        The
        proceeds of any claim against the Vendor or any Report provider in relation to the Acquisition (less reasonable expenses
        and taxes incurred) shall be applied in prepayment of the Facilities promptly on receipt as set out below, other than
        proceeds which:

         

        (i)       are
applied to satisfy a liability of a member of the Group arising as a result of the relevant claim;

 

 

 

 

		8	To be set at 0.5x below opening leverage.

		9	To be set at 0.5x below opening leverage.

		10	To be set at 1.0x below opening leverage.

		11	To be set at 1.0x below opening leverage.

 

    Page 19

     

    

 

	 	        (ii)      are
        applied to satisfy (or reimburse a member of the Group which has discharged) a liability of a member of the Group in compensation
        for a loss or in rectifying the deficiency (including, without limitation, tax liability, environmental liability, litigation
        and working capital deficiency) giving rise to the relevant claim within 12 months of receipt (or are committed to be
        applied by the relevant Group member within such 12-month period and those proceeds are in fact reinvested within 6 months
        after the end of such 12-month period); or

         

        (iii)     do
        not exceed individual and aggregate de minimis amounts of £1,000,000 respectively £3,000,000.

         

        (j)       Mandatory
        Prepayment – Insurance Proceeds

         

        The
        proceeds of any insurance claim (less reasonable expenses and taxes incurred) shall be applied in prepayment of the Facilities
        promptly on receipt as set out below, other than proceeds which:

         

        (i)       applied
        to meet a third party claim or, in the case of business interruption insurance only, to cover certain operating losses
        or in reinstatement of the relevant asset or otherwise in amelioration of the loss;

         

        (ii)      are
        applied in replacement, reinstatement or repair of the relevant asset of the Group as soon as possible but in any event
        within 12 months of receipt (or are committed to be applied by the relevant Group member within such 12-month period and
        those proceeds are in fact reinvested within 6 months after the end of such 12-month period); or

         

        (iii)     do
        not exceed individual and aggregate de minimis amounts of £1,000,000 respectively £3,000,000.

         

        (k)       General

         

        In
        the case of a loan under Facility B or any Incremental Term Facility, any amount prepaid may not be redrawn.

         

        Any
        prepayment shall be made with accrued interest on the amount prepaid and, subject to breakage costs and the Call Protection,
        without premium or penalty.

         

        Any
        prepayment of a Utilisation (other than pursuant to paragraphs (a), (e) or (f) above) shall be applied on a pro rata
        basis among the relevant Lenders.

 

    Page 20

     

    

 

	5.27   Application
    of Mandatory Prepayment Proceeds:	Mandatory
    prepayment proceeds will, subject to the Intercreditor Agreement, be applied in the following order (for the avoidance of
    doubt, irrespective of the currency in which any such indebtedness has been incurred):
	 	 
	 	(a)      pro
        rata against outstandings under Facility B and each Incremental Term Facility ranking pari passu with Facility
        B and secured on the Transaction Security;

         

        (b)      then
        in cancellation of available commitments under the Revolving Facility and any Incremental Revolving Facility ranking pari
        passu with Facility B and secured on the Transaction Security;

         

        (c)      then
        in prepayment of outstandings under the Revolving Facility and any Incremental Revolving Facility ranking pari passu
        with Facility B and secured on the Transaction Security; and

         

        (d)      then
        in repayment and cancellation of outstandings and commitments under any Ancillary Facilities.

         

	5.28   Facility
    B and Incremental Term Facility Prepayment Election:	Lenders
    participating in Facility B shall be entitled by giving the Agent not less than 3  Business Days’ prior notice to
    decline all or part of its share of mandatory prepayments of Facility B they are otherwise entitled to. The amount in respect
    of which that non accepting lender has waived its right to prepayment (the Waived Amount) may, at the election of the
    relevant non accepting lender, be allocated to any of its affiliates which are also Lenders at the relevant time, and otherwise
    shall be (i) offered to the other Facility B Lenders (pro rata to their respective Facility B Commitments) (with the balance
    of the Waived Amount which those Facility B Lenders elect not to receive being permitted to be applied as follows: (i) prepaid
    to the relevant non accepting lender, or (ii) retained by the Group and shall be permitted to be applied towards any purpose
    not prohibited by this Agreement.
	 	 
	5.29    Tax	Obligors
    will be required to gross up or to indemnify for or on account of tax on payments to lenders under the finance documents,
    except that a Borrower will not be obliged to gross-up or indemnify for or on account of tax on any payments to Lenders arising
    as a result of tax imposed by (i) that Lender’s jurisdiction of tax residence (or if different that Lender’s facility
    office) or (ii) that Borrower’s jurisdiction of tax residence unless, in each case, such withholding is a result of a change
    in law, tax treaty or published practice of the relevant tax authorities occurring after the date on which the relevant Lender
    becomes party to the SFA. It is intended that this will be reflected through the use of customary “Qualifying Lender”
    language. It is acknowledged that the Obligors will not be required to indemnify a Lender in respect of any cost or tax relating
    to FATCA, bank levy or bank profit surcharge.

 

    Page 21

     

    

 

	5.30   Representations:	The
    Senior Facilities Agreement will contain representations with respect to the Obligors and the other members of the Group that
    are usual for transactions of this nature and shall include customary qualifications and carve outs (to be agreed), including,
    without limitation, the following:
	 	 
	 	(a)      status;*
	 	 
	 	(b)      binding
    obligations;*
	 	 
	 	(c)      non-conflict
    with other obligations;*
	 	 
	 	(d)      power
    and authority;*
	 	 
	 	(e)      validity
    and admissibility in evidence;*
	 	 
	 	(f)       governing
    law and enforcement;*
	 	 
	 	(g)      no
        filing or stamp taxes;

         

        (h)      no
        deduction of tax;

         

	 	(i)        no
        default;*

         

        (j)       no
        misleading information;*

         

	 	(k)       financial
    statements;*
	 	 
	 	(l)        no
        proceedings;

         

        (m)      no
        breach of laws;

         

        (n)      environmental
        laws;

         

	 	(o)      taxation;

         

        (p)      anti-corruption
        law and sanctions;*

         

	 	(q)      ranking*;
	 	 
	 	(r)       good
    title to assets;*
	 	 
	 	(s)      legal
        and beneficial ownership,*

         

        (t)       shares;*

         

	 	(u)      intellectual
    property;
	 	 
	 	(v)      group
    structure chart;
	 	 
	 	(w)     centre
    of main interests and establishments*
	 	 
	 	(x)      security
        and Financial Indebtedness;

         

        (y)      Guarantor
        Threshold Test;

         

        (z)      Accounting
        reference date;

 

    Page 22

     

    

 

	 	

(aa)     Acquisition
        documents, disclosures and other documents;

         

        (bb)    Pensions;

         

        (cc)    ERISA*
        (subject to MAE);

         

        (dd)    Margin
        stock*;

         

        (ee)    Investment
        Company Act*;

         

        (ff)     US
        solvency* (but repeating only on utilisation dates and only to the extent the relevant Borrower is incorporated in the
        USA); and

         

        (gg)    Holding
        and dormant companies.

         

	 	Representations
    marked with a “*” shall be repeating representations.
	 	 
	5.31    Information
    Undertakings:	The
    Company shall supply each of the following:
	 	 
	 	(a)       as
        soon as they become available, but in any event within 120 days of the end of its Financial Years, its audited consolidated
        financial statements for that Financial Year and, if requested by the Agent, those of any Obligor;

         

        (b)       as
        soon as they become available, but in any event within 60 days of the end of its Financial Quarter years, its consolidated
        financial statements for that Financial Quarter;

         

        (c)       as
        soon as they become available, but in any event within 45 days of the end of each month, its consolidated financial statements
        for that month (including cumulative management accounts for the Financial Year to date) together with a statement from
        the directors of the Company commenting on that month’s performance and any material developments;

         

        (d)      with
        each set of audited consolidated financial statements and each set of its consolidated quarterly financial statements,
        a compliance certificate signed by one director of the Company and, in the case of the audited consolidated financial
        statements, reported on by the Company’s auditors, in the form agreed by the Company and the Majority Lenders:

         

        (i)       in
        each case certifying compliance with the financial covenant and, in the case of the Company’s audited consolidated
        annual financial statements, reported on by the Company’s auditors on the proper extraction of the numbers used
        in the financial covenant calculations;

         

        (ii)      in
the case of the annual compliance certificate only, confirming which members of the Group are Material Companies and that the
Guarantor Coverage has been met; and

 

    Page 23

     

    

 

	 	        (iii)     in
each case setting out the calculation of Total Net Leverage Ratio for the purposes of the Margin Ratchet;

	 	 
	 	(e)       all
        documents dispatched by the Company to its shareholders generally (or any class of them) or by the Company or any other
        Obligor to its creditors generally (or any class of them);

         

        (f)       details
        of any claim under the Acquisitions Documents in an amount exceeding £2m and of any disposal which will result in
        a mandatory prepayment of the Facilities;

         

        (g)      details
        of any material litigation, arbitration or administrative proceedings or any material judgment; and

         

        (h)      such
        other information as the Agent (acting on the instructions of the Majority Lenders) may reasonably request regarding the
        financial condition, assets and operations of the Group and/or any member of the Group.

         

	 	Each
    Obligor shall notify the Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware
    of its occurrence.
	 	 
	 	If
    the Agent so requests, the Company shall promptly deliver a certificate certifying that no Default is continuing (or if a
    Default is continuing, specifying the steps being taken to remedy it).
	 	 
	 	At
        least two members of the senior management of the Company will give a presentation to the Finance Parties in each Financial
        Year (or, upon request by the Majority Lenders (acting reasonably), more often if an Event of Default has occurred) about
        the on-going business and financial performance of the Group and any applicable budget related matters. Such presentation
        may, at the Company’s election, take place in a physical location or over the telephone.

         

        Customary
        undertakings relating to the provision by the Obligors of information for any “know your customer” checks required
        to be carried out by the Agent and the Lenders shall be included in the Senior Facilities Agreement.

         

        The
        Company may satisfy its obligations to deliver information to those Lenders who agree by posting such information onto
        an electronic website.

         

        The
Company must label all information delivered as either public side or private side information.

 

    Page 24

     

    

 

	5.32   Key
    Financial Definitions and Calculation Methodology:	Financial
    definitions (including, without limitation, definitions of Consolidated EBITDA and those required in connection with the financial
    covenant (as described below)) and calculation methodology with respect to the financial definitions and the financial covenant
    to be as set out in Schedule 2 (Financial Definitions and Calculation Methodology) hereto.
	 	 
	5.33   Financial
    Covenant:	Total
    Net Leverage Ratio (as at any quarter date on which this covenant is required to be tested) shall not exceed the ratio specified
    next to such quarter date in the table below.

 

	 	Quarter
    date	 	Total
    Net Leverage Ratio12
	 	30
    June 2019	 	5.1:1
	 	31
    September 2019	 	5.1:1
	 	31
    December 2019	 	5.1:1
	 	30
    March 2020	 	5.1:1
	 	30
    June 2020	 	4.1:1
	 	31
    September 2020	 	4.1:1
	 	31
    December 2020	 	4.1:1
	 	30
    March 2021	 	4.1:1
	 	30
    June 2021	 	3.0:1
	 	31
    September 2021	 	3.0:1
	 	31
    December 2021 and thereafter	 	3.0:1

 

	 	The
        first testing date for the financial covenant shall be in respect of the Relevant Period ending on the last day of the
        third complete Financial Quarter following the Closing Date.

         

        There
shall be no other financial covenants.

 

 

 

 

		12	Assuming closing in 3Q19 the first testing date would be
2Q20 – as per this Term Sheet, the first testing date for the financial covenant shall be in respect of the Relevant Period
ending on the last day of the third complete Financial Quarter following the Closing Date and inclusion of any ratios preceding
such first test date is for informational purposes only without prejudice to the remainder of this Term Sheet.

 

    Page 25

     

    

 

	5.34   Equity
    Cure:	The
        Company will have the right to cure breaches of the financial covenant (an Equity Cure) by the contribution
        from its shareholders of additional equity and/or subordinated loans in an amount equal to or (except in relation to any
        Cure Amount applied as a deemed increase of Consolidated Pro Forma EBITDA) in excess of the amount required to cure such
        breach (a Cure Amount).

         

        The
        Cure Amount shall be applied in deemed reduction of debt or (at the option of the Company) as a deemed increase of Consolidated
        Pro Forma EBITDA.

         

        Any
        Equity Cure may be made at any time on or prior the date falling 20 Business Days after the due date for delivery of the
        financial statements evidencing such breach. There shall be no more than 3 Equity Cures in aggregate over the lifetime
        of the facilities and Equity Cures may not be applied in consecutive Financial Quarters.

         

        There
        will be no requirement to apply the proceeds from any Cure Amount in prepayment of the Senior Facilities.

         

        An
automatic cure shall apply if, on the next applicable testing date, the financial covenant is complied with and neither Facility
B nor the RCF have been accelerated.

	 	 
	5.35   General
    Undertakings:	The
    Senior Facilities Agreement will contain general undertakings with respect to the Obligors and the other members of the Group
    usual for transaction of this nature (subject to such qualifications and exceptions as may be agreed and including restrictions
    on transactions between Obligors and non-Obligors), including, without limitation, the following:
	 	 
	 	Authorisations
    and compliance with laws
	 	 
	 	(a)      authorisations;
	 	 
	 	(b)      compliance
        with laws;

         

        (c)      environmental
        compliance;

         

        (d)      environmental
        claims;

         

        (e)      anti-corruption
law and sanctions;

	 	 
	 	(f)       taxation;
	 	 
	 	Restrictions
    on business focus
	 	 
	 	(g)      restriction
    on merger;
	 	 
	 	(h)      no
    change of business;
	 	 
	 	(i)        restriction
    on acquisitions;

 

    Page 26

     

    

 

	 	(j)       restriction
    on joint ventures;
	 	 
	 	(k)      holding
    company;
	 	 
	 	(l)       centre
    of main interests and establishments;
	 	 
	 	Restrictions
    on dealing with assets and Security
	 	 
	 	(m)      preservation
    of assets;
	 	 
	 	(n)      pari
    passu ranking;
	 	 
	 	(o)      negative
    pledge;
	 	 
	 	(p)      restriction
    on disposals;
	 	 
	 	(q)      arm’s
    length basis;
	 	 
	 	Restrictions
    on movements of cash - cash out
	 	 
	 	(r)       restriction
        on loans and credit;

         

        (s)       restriction
        on dividends and share redemption;

         

        (t)       restriction
on payments under intra-group loans and any other subordinated debt;

	 	 
	 	Restrictions
    on movements of cash - cash in
	 	 
	 	(w)     restriction
    on financial indebtedness;
	 	 
	 	(x)       restriction
        on guarantees and indemnities;

         

        (y)      restriction
        on issuance of share capital;

         

	 	Miscellaneous
	 	 
	 	(x)      insurance;
	 	 
	 	(y)      pensions;
	 	 
	 	(z)       access;
	 	 
	 	(aa)     intellectual
    property;
	 	 
	 	(bb)   treasury
        transactions;

         

        (cc)    Guarantor
        Coverage and Material Companies;

         

        (dd)    further
        assurance;

         

        (ee)    People
with Significant Control Regime;

 

    Page 27

     

    

 

	 	(ff)      Financial
        assistance;

         

        (gg)    Acquisition
        Documents (including prohibiting any amendments to the Acquisition Documents which would be materially adverse to the
        interests of the Finance Parties in their capacities as Lenders (taken as a whole));

         

        (hh)   compliance
        with hedging letter; and

         

        (ii)      maintenance
        of rating.

	 	 
	5.36   Certain
    Permitteds	The
    general undertakings shall in any event permit the transactions described in Schedule 5 (Baskets, Events of Default and
    Certain Other Items) as well as the following:
	 	 
	 	Payments

         

        (a)       payments
        pursuant to a general basket equal to the greater of £16 million or, if higher, 25% of Consolidated Pro Forma EBITDA;

         

        (b)      unlimited
payments (as set out in the table below) subject to the Total Net Leverage Ratio (pro forma for such payment) as set out below: 

 

	 	Total
    Net Leverage Ratio	 	Funding
    Source
	 	 	 	 
	 	Greater
    than or equal to [●]:113	 	No
    payments permitted
	 	 	 	 
	 	Less
    than [●]:114 but greater than

 or equal to [●]:115	 	Unused
    Retained Excess Cash since date of SPA
	 	 	 	 
	 	Less
    than [●]:116	 	Any
    funding source (pro forma for that funding source)

 

	 	Indebtedness
	 	 
	 	(c)       any
        and all assumed debt, acquired debt or acquisition debt provided:

         

        (i)       it
does not result in the Credit Facilities Basket (as set out above) being exceeded;

 

 

 

 

		13	To be set at 1.0x below opening leverage

		14	To be set at 1.0x below opening leverage

		15	To be set at 1.25x below opening leverage

		16	To be set at 1.25x below opening leverage

 

    Page 28

     

    

 

	 	        (ii)      it
        is repaid or otherwise discharged within 6 months from assumption/acquisition; or

         

        (iii)     the
Total Net Leverage Ratio (pro forma for such assumption/acquisition with full pro forma effect consistent with the definition
of Consolidated Pro Forma EBTIDA) does not exceed the the prevailing financial covenant level;

	 	 
	 	Acquisitions,
    JVs, Investments
	 	 
	 	(d)       any
        and all acquisitions, joint ventures or investments (whether in an unrestricted subsidiary, a non-guarantor or otherwise)
        shall be permitted subject only to no payment or insolvency Event of Default continuing at the time of legal commitment
        and compliance with sanctions, provided that:

         

        (i)       any
        investments in a joint venture or an unrestricted subsidiary shall not exceed 25% of Consolidated Pro Forma EBITDA in
        any Financial Year (net of amounts received from such investments, investments funded from Acceptable Funding Sources
        and disregarding investments made in unrestricted subsidiaries that are subsequently designated subsidiaries);

         

        (ii)      any
        acquisition of a company or a business may only be made if the relevant target has positive EBITDA or negative EBITDA
        that does not exceed GBP1m; and

         

        (iii)     with
        respect to any investments in a joint venture or an unrestricted subsidiary and any acquisition of a company or a business,
        the member of the Group that is legally committing to and/or making such investment or acquisition must not be a holding
        company of DMWSL 631 Limited,

         

        and,
for the avoidance of doubt, there shall be no other ratio tests, baskets or other caps that would limited the Group’s ability
to make any such acquisitions, joint ventures or investments.

	 	 
	 	Permitted
    Disposals
	 	 
	 	(e)      disposals
of fixed (including gaming terminals) or long term assets where the net proceeds are designated, within 6 months prior to, or
12 months following (and actually applied within 18 months following), such disposal to purchase any assets useful to the Group,
make acquisitions or other investments (in each case, for the avoidance of doubt, to the extent such acquisitions or other investments
are not otherwise prohibited under the Senior Facilities Agreement), for capex or applied in prepayment of any Financial Indebtedness;

 

    Page 29

     

    

 

	 	(f)       any
disposal provided that no payment or insolvency Event of Default is continuing at the time of legal commitment and at least 75%
of the consideration receivable is cash, provided that cash shall be deemed to include (i) any shares received in connection with
such disposal and converted into cash within 180 days of receipt and (ii), subject (other than with respect to disposals of gaming
machines) to a cap of £2mm per single asset, £5mm per Financial Year and £10mm over the life of the Agreement,
the fair market value of any other non-cash consideration received (net of any cash received by the Group at any time following
the conversion of such consideration into cash), provided that 100% of the proceeds of such conversion shall be applied as required
under paragraph (g) of Section 5.26 (Prepayment and Cancellation) below).

	 	 
	5.37    Growth
    baskets:	Growth
    baskets to be included pursuant to which certain baskets, permissions or thresholds (including, for the avoidance of doubt,
    those expressly stated in this Term Sheet as benefitting from a grower) will be expressed as the greater of a fixed GBP number
    and a percentage of Consolidated Pro Forma EBITDA. All baskets, permissions and thresholds set by reference to a fixed period
    of time shall be subject to an ability to carry forward and/or carry back 100% of any unused amount.
	 	 
	5.38   Unrestricted
    subsidiaries:	Company
    shall be able to, at its discretion, designate by written notice to the agent any member of the Group which is not an Obligor
    and any newly incorporated person or other special purpose vehicle (including its subsidiaries, whether acquired as a result
    of a permitted acquisition, permitted joint venture or otherwise) as an unrestricted subsidiary. No unrestricted subsidiary
    shall be a member of the Group and consequently it shall not be subject to the obligations, restrictions or other provisions
    of the Senior Facilities Agreement other than certain specified provisions such as sanctions undertakings and others to be
    agreed. Unrestricted subsidiaries may be designated restricted subsidiaries at the Company’s discretion (but once so
    redesignated may not subsequently be designated as unrestricted again).
	 	 
	5.39    Events
    of Default:	The
    Senior Facilities Agreement will contain events of default usual for transactions of this nature (subject to such qualifications
    and remedy periods as may be agreed including without limitation as set out in Schedule 5 (Baskets, Events of Default and
    Certain Other Items)) and as may be agreed in respect  of each Obligor and, if appropriate, member of the Group
    including, without limitation, the following:
	 	 
	 	(a)       non-payment
        unless:

         

        (i)       in
        the case of principal and interest, failure to pay is caused by administrative or technical error or a Disruption Event
        and payment is made within 3 Business Days of its due date; and

         

        (ii)       with
respect to any other amounts, payment is made within 5 Business Days of the due date;

 

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	 	(b)      breach
    of the financial covenant (subject to the cure rights specified in paragraph 5.34 (Equity Cure)) and any breach of
    the requirement to deliver financial statements, the annual budget and/or related compliance certificates;
	 	 
	 	(c)      failure
    to comply with any other provision of the Finance Documents unless such failure is capable of remedy and is remedied within
    20 Business Days of the earlier of (i) the Agent giving notice and (ii) the Obligor becoming aware;
	 	 
	 	(d)      misrepresentation;
	 	 
	 	(e)      cross
    default, subject to an agreed minimum amount;
	 	 
	 	(f)       insolvency;
	 	 
	 	(g)      insolvency
    proceedings;
	 	 
	 	(h)      creditors’
    process (subject to an agreed minimum amount);
	 	 
	 	(i)       unlawfulness
    and invalidity;
	 	 
	 	(j)       Intercreditor
        Agreement;

         

        (k)       cessation
        of business;

         

	 	(l)       audit
    qualification in respect of an Obligor continuing as a going concern or by reason of failure to disclose financial information
    or being materially adverse to the Finance Parties (taken as a whole);
	 	 
	 	(m)     expropriation;

         

        (n)       repudiation
        and rescission;

         

	 	(o)       litigation;

         

        (p)      ERISA
        events;

         

        (q)      US
        insolvency; and

         

        (r)       material
        adverse change.

         

        Standard
        US automatic acceleration provisions shall also apply with respect to Borrowers incorporated in the United States of America.

         

	5.40   Clean
    Up Period:	120
    days for the Acquisition and any permitted acquisition / investment.
	 	 
	5.41   Minimum
    Hedging Requirement:	Interest
        rate hedging to be implemented in respect of not less than 50% of the amounts outstanding under Facility B for a minimum
        period of 3 years within 120 days of the Closing Date.

         

        All
        Hedging Agreements will rank pari passu with the Facilities.

         

        No
ROFR, ROFO or similar rights in favour of the Finance Parties.

 

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	5.42    Material
    Adverse Effect:	“Material
        Adverse Effect” means any event or circumstance which in each case after taking into account all mitigating
        factors or circumstances including, any warranty, indemnity or other resources available to the Group or right of recourse
        against any third party with respect to the relevant event or circumstance and any obligation of any person in force to
        provide any additional equity investment:

         

        (a)      has
        a material adverse effect on:

         

        (i)       the
        consolidated business, assets or financial condition of the Group (taken as a whole); or

         

        (ii)      the
        ability of the Group (taken as whole) to perform its payment obligations under the Finance Documents; or

         

        (b)      subject
        to the Legal Reservations and any Perfection Requirements, affects the validity or the enforceability of any of the Finance
        Documents to an extent which is materially adverse to the interests of the Finance Parties under the Finance Documents
        taken as a whole and, if capable of remedy, is not remedied within 20 Business Days of the earlier of (i) the Company
        becoming aware of the issue and (ii) the giving of written notice of the issue by the Agent.

         

	5.43      Majority
    Lenders:	662/3%
    of Total Commitments.
	 	 
	5.44      Super
    Majority Lenders:	80%
    of Total Commitments.
	 	 
	5.45      Amendments:	Any
        amendment or waiver may be made with the consent of the Majority Lenders and the Company unless that amendment or waiver
        is specified as requiring the consent of a higher proportion of Lenders and/or any other Finance Party and the Company.

         

        In
addition, if any amendment, waiver or consent is a structural adjustment (allowing for such amendments and waivers effecting changes
in the structure and size of Facility B or (as applicable) the RCF) that amendment, waiver or consent shall only require the prior
consent of the Company and each Lender that is participating in that structural adjustment and shall not require the consent of
any other Lender unless such structural adjustment is to increase the Commitments or reduce the tenor of any of the Facilities
in which case the consent of the Majority Lenders shall also be required.

 

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	5.46    Super
    Majority Lender Decisions:	Subject
        to the structural adjustment clause, any amendment, waiver or consent of, or in relation to, any term of any Finance Document
        that has the effect of changing or which relates to certain clauses to be agreed, including (without limitation):

         

        (a)       any
        provision which expressly requires the consent of the Super Majority Lenders;

         

        (b)       the
        nature or scope of the guarantee and indemnity granted under the Senior Facilities Agreement or the Charged Property;
        and

         

        (c)       the
        release of any guarantee and indemnity granted under the Senior Facilities Agreement.

         

	5.47   All
    Lender Decisions:	Subject
        to the structural adjustment clause, any amendment, waiver or consent of, or in relation to, any term of any Finance Document
        that has the effect of changing or which relates to certain clauses to be agreed, including (without limitation):

         

        (a)       the
        definition of “Change of Control”, “Majority Lenders” and “Super Majority Lenders”;

         

        (b)       an
        extension to the date of payment of any amount under the Finance Documents;

         

        (c)       a
        reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees or commission payable;

         

        (d)       a
        change in currency of payment of any amount under the Finance Documents;

         

        (e)       an
        increase in any commitment or the Total Commitments, an extension of any Availability Period or any requirement to a cancellation
        of commitments reduces the commitments of the Lenders rateably under the relevant facility;

         

        (f)       the
        equivalent of the following clauses in the Senior Facilities Agreement:

         

        Clause
        2.4 (Finance Parties’ rights and obligations), Clause 5.1 (Delivery of a Utilisation Request), Clause 12.1
        (Illegality), Clause 14.10 (Application of prepayments), Clause 42 (Amendments and Waivers), Clause
        47 (Governing law) or Clause 48.1 (Jurisdiction of English courts);

         

        (g)       a
        change to the Borrowers or Guarantors other than in accordance with the Senior Facilities Agreement;

         

        (h)       any
provision which expressly requires the consent of all the Lenders and the structural adjustment clause; and

	 	 
	 	
    (i)       any
    amendment to the order of priority or subordination under the Intercreditor Agreement or the manner in which the proceeds
    of enforcement of the Transaction Security are distributed.

 

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	5.48    Yank
    the Bank:	If
    any Lender becomes  a Non-Consenting Lender, then, within 45 days of such Lender becoming a Non-Consenting Lender,
    the Company may, on 5 Business Days’ prior written notice cause that Lender’s position to be transferred at par
    to a person (that is not a member of the Group) nominated by the Company for a purchase price in cash equal to that Lender’s
    participations in the utilisations then outstanding.
	 	 
	5.49    Snooze
    You Lose:	Ten
(10) Business Days.
	 	 
	5.50    Assignments
    / Transfers and Sub-Participations by Lenders:	A
                                         Lender may assign any of its rights to, transfer by novation any of its rights and obligations
                                         to or enter into a voting sub-participation with another bank or financial institution
                                         or to a trust, fund or other entity which is regularly engaged in or established for
                                         the purpose of making, purchasing or investing in loans, securities or other financial
                                         assets.

         

        Anti-circumvention
        language shall be included to avoid prohibited transfers described above from being effected by way of structured solutions
        where the commercial effect of such solutions is to achieve transfer of debt to a person that would not otherwise have
        been able to become a Lender without Borrower consent.

         

	 	The
                                         Company’s consent (not to be unreasonably withheld or delayed and deemed given
                                         if not expressly refused within 10 Business Days) will be required for any transfer,
                                         assignment or voting sub-participation (or conversion of non-voting into voting sub-participation)
                                         unless such transfer, assignment or voting sub-participation (or conversion of non-voting
                                         into voting sub-participation) is:

         

        (a)       to
        an entity identified on a list to be agreed by the Company and the Mandated Lead Arrangers;

         

        (b)       to
        another Lender or an affiliate of any Lender;

         

        (c)       to
        a fund which is a Related Fund of the assigning or transferring Lender; or

         

        (d)       made
        while a financial covenant, payment or insolvency Event of Default is continuing.

         

        There
        shall be no restrictions or consent requirements in respect of any non-voting sub-participation provided that the transferring
        Lender warrants and represents to the Company that it retains exclusive control over all rights and obligations in relation
        to the participations and Commitments that are the subject of the relevant agreement or arrangement, including all voting
        rights (for the avoidance of doubt, free of any agreement or understanding pursuant to which it is required to or will
        consult with any other person in relation to the exercise of any such rights and/or obligations). Breach of such representation
        shall render the relevant Lender a Defaulting Lender.

        

 

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	 	Voting
        Sub-participations and conversions of non-voting into voting sub-participations shall be subject to the same restrictions
        as transfers and assignments.

         

        Notwithstanding
        anything to the contrary in this term sheet, absolute prohibition at all times prior to (other than with respect to paragraph
        (c) below) a financial covenant, payment or insolvency Event of Default which is continuing on transfers, assignments
        or sub-participations of any kind to any of the following persons unless the prior written consent of the Company (in
        its sole discretion) is obtained:

         

        (a)       an
        Industry Competitor (to be defined as any person or entity (or any of its affiliates) which is a trade competitor of a
        member of the Group and any controlling shareholder of a trade competitor of a member of the Group, provided that, for
        the avoidance of doubt, this shall not include any person or entity (or any of its affiliates) which is a bank, financial
        institution or trust, fund or other entity whose principal business or a material activity of whom is arranging, underwriting
        or investing in debt); or

         

        (b)      Loan
        to Own Investors; or

         

        (c)      any
        person that is (or would, upon becoming a Lender, be) a Defaulting Lender.

         

        “Loan-to-Own
        Investor” means any person (including an affiliate of a Finance Party) which is engaged in investment strategies
        that include the purchase of loans or other debt securities with a view to owning the equity or gaining control of a business
        (directly or indirectly) or which utilizes any other similar “loan to own” strategies.

         

        With
        respect to any transfers, assignments or sub-participations of the Revolving Facility (i) the Company shall also be informed
        on or prior to the date of the relevant assignment, transfer or sub-participation and (ii) the transferee shall be a deposit
        taking financial institution authorised by a financial services regulator which holds a minimum rating equal to or better
        than BBB- or Baa3 (as applicable).

	 	

 
	5.51   Miscellaneous
    Provisions:	The
    Senior Facilities Agreement will contain provisions relating to, among other things, default interest, market disruption,
    replacement screen rate, debt purchase transactions (and disenfranchisement of group purchasers), breakage costs, increased
    costs, indemnities, set-off and administration.  

 

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	5.52   Costs
    and Expenses:	All
    costs and expenses (including legal fees) reasonably incurred by the Agent, the Mandated Lead Arrangers, the Bookrunner, the
    Security Agent and any other Finance Party in connection with the negotiation, preparation, printing, execution, syndication
    and perfection of the Senior Facilities Agreement, any document referred to in the Senior Facilities Agreement, the Transaction
    Security and/or any other Finance Documents shall be paid by the Company promptly after receipt of the corresponding invoice
    on demand. Such costs and expenses shall in any event not be payable before the date falling five Business Days after receipt
    of the corresponding invoice.
	 	 
	5.53    No
    Deal, no Fees	No
    fees, commissions, costs or expenses (other than the agreed legal fees subject to the agreed cap) will be payable unless the
    Closing Date occurs.
	 	 
	5.54   Governing
    Law:	English
    law, save where inappropriate for Transaction Security Documents.
	 	 
	5.55   Jurisdiction:	Courts
    of England, save where inappropriate for Transaction Security Documents.
	 	 
	5.56   Counsel
    to the Company:	Sidley
    Austin LLP.
	 	 
	5.57   Counsel
    to Bookrunner:	White
    & Case LLP.

 

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SCHEDULE 1

Agreed Security Principles

 

		1.	Security Principles

 

		(a)	The guarantees and security to be provided under the Finance Documents will be given in accordance
with the agreed security principles set out in this Schedule. This Schedule addresses the manner in which the agreed security principles
will impact on the guarantees and security proposed to be taken in relation to this transaction.

 

		(b)	The Agreed Security Principles embody recognition by all parties that there may be certain legal
and practical difficulties in obtaining guarantees and security from each Obligor in every jurisdiction in which the Obligors are
located. In particular:

 

		(i)	general legal and statutory limitations (including, with respect to the relevant jurisdictions
for which guarantee limitation language is set out in Senior Facilities Agreement), such limitations as set out therein), regulatory
restrictions financial assistance, corporate benefit, fraudulent preference, equitable subordination, “transfer pricing”,
“thin capitalisation”, “earnings stripping”, “controlled foreign corporation” “exchange
control restrictions” and “capital maintenance” rules, tax restrictions retention of title claims, employee consultation
or approval requirements and similar principles may limit the ability of a member of the Group to provide a guarantee or security
or may require that the guarantee or security be limited as to its amount or otherwise and, if so, the guarantee or security will
be limited accordingly;

 

		(ii)	the security (including, for the avoidance of doubt, the maximum amount secured thereunder) and
extent of its perfection will be agreed taking into account the cost to the Group of providing security (including, but not limited
to, any notarial costs or increase to the tax cost of the Group, stamp duty and registration taxes and all applicable legal fees)
so as to ensure that it is proportionate to the benefit accruing to the Finance Parties and such cost shall not exceed any amount
which may be agreed between the Company and the Security Agent;

 

		(iii)	any assets subject a legal requirement or third party contract, lease, licence, instrument or other
third party arrangements which are not prohibited by the Senior Facilities Agreement and which prevent or condition those assets
from being charged, secured or otherwise subject to the applicable security document (including requiring a consent of any third
party, supervisory board or works council (or equivalent)) will be excluded from any relevant security document whilst such third
party arrangements remain in place provided that reasonable endeavours to obtain consent to charging any such assets shall be used
by the Obligors if the relevant asset is material if the Company reasonably determines that such endeavours will not involve placing
material commercial relationships with third parties in jeopardy;

 

		(iv)	members of the Group will not be required to give guarantees or enter into security documents it
is not within the legal capacity of the relevant member of the Group or if it would conflict with the fiduciary or statutory duties
of their directors or contravene any applicable legal, regulatory or contractual prohibition or restriction or have the potential
to result in a risk of personal or criminal liability on the part of any director or officer; provided that the relevant Group
member shall use reasonable endeavours to overcome any such obstacle;

 

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		(v)	it is expressly acknowledged that it may be either impossible or impractical to create security
over certain categories of assets in which event security will not be taken over such assets

 

		(vi)	any asset which, if subject to the applicable security document, would give a third party the right
to terminate or otherwise amend any rights, benefits and/or obligations with respect to any member of the Group in respect of the
asset or require the relevant Obligor to take any action materially adverse to the interests of the Group or any member thereof,
in each case will be excluded from a guarantee or security document;

 

		(vii)	the granting of guarantees or security, or the perfection of security, when required, and other
legal formalities will be completed as soon as practicable and, in any event, within the time periods specified in the Finance
Documents therefore or (if earlier or to the extent no such time periods are specified in the Finance Documents) within the time
periods specified by applicable law in order to ensure due perfection. Unless otherwise specified in the Finance Documents, the
granting or perfection of security will not be required if it would have a material adverse effect on the ability of the relevant
Obligor or any other member of the Group to conduct its operations and business in the ordinary course or as otherwise permitted
by the Finance Documents (including, without limitation, notification of receivables security to third party debtors until a Declared
Default has occurred provided that, for the avoidance of doubt, if it is only the perfection of security which would give rise
to such a material adverse effect then the security will still be granted but not perfected). The registration of security interests
in intellectual property will only be in respect of material intellectual property in the UK, the EU and the USA subject to the
general principles set out in these Agreed Security Principles;

 

		(viii)	no guarantee from, or security will be required to be given by, persons or over (and no consent
shall be required to be sought with respect to) assets which are required (by contracts entered into prior to (and not in contemplation
of) the acquisition of such acquired indebtedness) to support acquired indebtedness to the extent such acquired indebtedness is
permitted by this Agreement to remain outstanding after an acquisition unless such guarantees or security are permitted or not
otherwise prohibited under the terms of such acquired indebtedness. No member of a target group acquired pursuant to an acquisition
not prohibited by this Agreement shall be required to become a Guarantor or grant security with respect to the Facilities if prevented
by the terms of the documentation governing that acquired indebtedness to the extent entered into prior to (and in contemplation
of) such acquisition;

 

		(ix)	no title investigations or other diligence on assets will be required an no title insurance will
be required;

 

		(x)	guarantees and security will not be required from or over the assets of, any joint venture or similar
arrangement, any minority interest or any member of the Group that is not wholly-owned by another member of the Group to the extent
the constituent documents of such joint venture or similar arrangement, minority interest or member of the Group that is not wholly-owned
by another member of the Group prohibit granting guarantees and security provided that reasonable endeavours to obtain consent
to charging any such assets (where otherwise prohibited) shall be used by the Group for a specified period of time, provided that
no Obligor shall be required to take any action to obtain the consent, if in the view of the Company, such action would be materially
adverse to the interests of the Group or any member thereof;

 

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		(xi)	Other than share security over an Obligor’s subsidiaries that are Guarantors, all security
shall be governed by (subject to the final sentence of this paragraph) the law of and secure assets located in the jurisdiction
of incorporation of that Obligor. Share security over any subsidiary will be governed by the law of the place of incorporation
of that subsidiary. With respect to any Obligor with material assets outside its jurisdiction of incorporation such security (if
any) over such assets shall be governed by the laws of the jurisdiction in which such material assets are located (subject always
to the other provisions of these Agreed Security Principles);

 

		(xii)	no perfection action will be required in jurisdictions where or Obligors are not incorporated (other
than in respect of security over intercompany receivables, notification of intra-group companies located in other jurisdictions
than the pledgor(s)) but perfection action may be required in the jurisdiction of incorporation of one Obligor in relation to security
granted by another Obligor incorporated in a different jurisdiction;

 

		(xiii)	other than a general security agreement and related filing, no perfection action will be required
with respect to assets of a type not owned by members of the Group; and

 

		(xiv)	Chargors incorporated in England & Wales shall enter into a floating charge which enables the
Security Agent to fulfil the criteria of a qualifying floating charge holder.

 

		2.	Guarantors and Security

 

		(a)	Subject to the guarantee limitations set out in Senior Facilities Agreement relating to guarantee
limitations, or, in the case of an Additional Obligor, the guarantee limitations set out in the relevant Accession Deed, each guarantee
will be an upstream, cross-stream and downstream guarantee, and each guarantee and security will be for all liabilities of the
Obligors under the Finance Documents in accordance with, and subject to, the requirements of the Agreed Security Principles in
each relevant jurisdiction. The Transaction Security Documents will secure all liabilities of the Obligors under the Finance Documents,
in each case in accordance with, and subject to, the requirements of the Agreed Security Principles in each relevant jurisdiction.

 

		(b)	Where an Obligor pledges shares, the security document will be governed by the laws of the company
whose shares are being pledged and not by the law of the country of the pledgor. Subject to these principles, the shares in each
Guarantor shall be secured. The shares held by a Guarantor in a Subsidiary that is not a Guarantor shall not be required to be
the subject of Security.

 

		(c)	To the extent legally effective, all security shall be given in favour of the Security Agent and
not the Finance Parties individually. “Parallel debt” provisions will be used where necessary; such provisions will
be contained in the Intercreditor Agreement and not the individual security documents unless required under local laws. To the
extent legally possible, there should be no action required to be taken in relation to the guarantees or security when any Bank
assigns or transfers any of its participation in the Facilities to a New Lender.

 

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		(d)	Unless otherwise expressly agreed in any Finance Documents, the Guarantors will not be required
to pay or be liable for any costs of any re-execution, notarisation, re-registration, amendment or other perfection requirement
for any security on any assignment or transfer by the Mandated Lead Arrangers or any Existing Lender to a New Lender and the relevant
costs or fees shall be for the account of the New Lender.

 

		(e)	Any security document shall only be required to be notarised or notarially certified if required
by law in order for the relevant security to become effective, enforceable or admissible in evidence.

 

		3.	Terms of Security Documents

 

The following principles will
be reflected in the terms of any security taken as part of this transaction:

 

		(a)	the security will be first ranking, to the extent possible;

 

		(b)	security will not be enforceable until a Declared Default has occurred;

 

		(c)	the Security Agent, Lenders and Hedging Counterparties shall only be able to exercise a power of
attorney following the occurrence of a Declared Default or failure by the relevant Obligor to perform a perfection obligation under
or relating to a Finance Document within 10 Business Days of notice by the Security Agent;

 

		(d)	subject to the legal requirements in the relevant jurisdictions, the Transaction Security Documents
should only operate to create and perfect security rather than to impose new commercial obligations, interfere unreasonably with
the operation of its business or repeat clauses contained in other Finance Documents, accordingly (i) they should not contain
additional representations, undertakings or indemnities (including, without limitation, in respect of insurance, information maintenance
or protection of assets or the payment of fees, costs and expenses) unless these are the same as or consistent with those contained
in this Agreement and/or are required for the creation and perfection of security or are given in a “third party” security
document and (ii) nothing in any Transaction Security Document shall (or be construed to) prohibit any transaction, matter or other
step or dealing whatsoever in relation to any asset the subject of any Transaction Security Document if not prohibited by the terms
of the other Finance Documents;

 

		(e)	no security will be granted over parts, stock, moveable plant or equipment or receivables if it
would require labelling, segregation or periodic listing or specification of such parts, stock, moveable plant, equipment or receivables;

 

		(f)	other than filing security documents at Companies House or other similar or equivalent general
filings in any relevant jurisdictions other than England and Wales) perfection will not be required in respect of (i) vehicles
and other assets subject to certificates of title or (ii) letter of credit rights and tort claims (or applicable law equivalent);

 

		(g)	in no event shall control agreements (or perfection by control or similar arrangements) be required
with respect to any assets (including deposits or securities accounts) unless the Finance Documents expressly provide for any asset
to be subject to specific restrictions on use;

 

    Page 40

     

    

 

		(h)	information, such as lists of assets, will be provided if, and only to the extent required by local
law to be provided to perfect or register the security and, when required, shall be provided no more frequently than annually (unless
required more frequently under local law) or, following an Event of Default which is outstanding, on the Security Agent’s
reasonable request;

 

		(i)	Security will, where legally possible and practicable, automatically create security over future
assets of the same type as those already secured; where local law requires supplemental pledges or notices to be delivered in respect
of future acquired assets in order for effective security to be created over that class of asset, such supplemental pledges or
notices shall be provided at intervals no more frequent than twelve Months (unless required more frequently under local law) or
following an Event of Default which is continuing on the request from the Security Agent (acting reasonably); and

 

		(j)	each Transaction Security Document must contain a clause which records that if there is a
conflict between the Transaction Security Document and this Agreement, or the Intercreditor Agreement then (to the fullest extent
permitted by law) the provisions of this Agreement or of the Intercreditor Agreement, as applicable, will take priority over the
provisions of the Transaction Security Document.

 

		4.	Bank Accounts

 

If an Obligor grants Security
over its bank accounts it shall be free to deal with, operate, open and close and transact business in relation to those accounts
(other than any accounts which are specifically blocked) in the course of its business until the occurrence of a Declared Default.

 

Where “fixed” Security
is required, if required by applicable law to create or perfect the Security and without disrupting the operation of the account,
notice of the Security or a form of account control agreement will be served on the account bank within 10 Business Days of the
Security being granted and the Obligor shall use its reasonable endeavours to obtain an acknowledgement of that notice or acceptance
of such account control agreement within 20 Business Days of service If the Obligor has used its reasonable endeavours but has
not been able to obtain acknowledgement or acceptance its obligation to obtain acknowledgement or acceptance shall cease on the
expiry of that 20 Business Day period. Irrespective of whether notice of the security is required for perfection, if the service
of notice would prevent the Obligor from using a bank account in the course of its business no notice of security shall be served
until the occurrence of a Declared Default.

 

Any security over bank accounts
shall be subject to any prior security interests in favour of the account bank which are created either by law or in the standard
terms and conditions of the account bank, to the extent that these have not been waived by the account bank in its acknowledgement.
The notice of security shall request these are waived by the account bank but the Obligor shall not be required to change its banking
arrangements if these security interests are not waived or only partially waived. The pledgors shall be required to request and
obtain the consent of the account bank for the creation of the security over its bank accounts, in case of any relevant negative
pledge covenants of the account bank.

 

If required under applicable
law security over bank accounts will be registered subject to the general principles set out in these Agreed Security Principles.

 

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Any security over bank accounts
shall provide for the release of such security if the relevant account holder decides to close such bank account provided that,
at the time of the closure, (i) there is no Declared Default and (ii) the positive balance of such bank account is transferred
to a pledged account.

 

		5.	Fixed Assets

 

If an Obligor grants security
over its material fixed assets it shall be free to deal with those assets in the course of its business as not otherwise prohibited
by the terms of the Finance Documents until the occurrence of a Declared Default.

 

No notice (other than security
registrations), whether to third parties or by attaching a notice to the fixed assets, shall be prepared or given until the occurrence
of a Declared Default.

 

If required or necessary to create,
protect, preserve or enforce under applicable law Security over fixed assets will be registered subject to the general principles
set out in these Agreed Security Principles.

 

		6.	Insurance Policies

 

An Obligor may grant Security
over its insurance policies in respect of which claims thereunder may be mandatorily prepaid, provided that such insurance policy
does not prohibit such Security to be so granted.

 

If required by local law to perfect
the security or customary under agreed local market practice, notice of the Security will be served on the insurance provider within
five Business Days of the security being granted and the Obligor shall use its reasonable endeavours to obtain an acknowledgement
of that notice within 20 Business Days of service. If the Obligor has used its reasonable endeavours but has not been able to obtain
acknowledgement its obligation to obtain acknowledgement shall cease on the expiry of that 20 Business Day period.

 

Other than in jurisdictions where
customary to do so (including, for the avoidance of doubt, the State of New York but excluding England and Wales), no loss payee
or other endorsement shall be made on the insurance policy and no Secured Party will be named as co-insured.

 

		7.	Intellectual Property

 

If an Obligor grants Security
over its material intellectual property it shall be free to deal with those assets in the course of its business (including, without
limitation, allowing its intellectual property to lapse if no longer material to its business) until the occurrence of a Declared
Default.

 

No Security shall be granted
over any intellectual property which cannot be secured under the terms of the relevant licensing agreement. No notice shall be
prepared or given to any third party from whom intellectual property is licensed until a Declared Default has occurred.

 

Security over material intellectual
property will be registered under the law of that security document, the law under which the Obligor is regulated or at any relevant
supra-national registry (such as the European Union), in each case subject to the general principles set out in these Agreed Security
Principles.

 

Security over intellectual property
rights will be taken on an “as is, where is” basis and no Obligor will be required to procure any changes to, or corrections
of filings on any registers.

 

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		8.	Hedging

 

Security over hedging receivables
will be granted subject to the same provisions as for trade receivables and subject to the Intercreditor Agreement.

 

		9.	Intercompany Receivables

 

Subject to the final paragraph
below, if an Obligor grants Security over its intercompany receivables it shall, subject to the terms of this Agreement and the
Intercreditor Agreement, be free to deal with those receivables in the course of its business until the occurrence of a Declared
Default.

 

If required by local law to perfect
the Security, notice of the Security will be served on the relevant debtor within five Business Days of the Security being granted
and in the case of a relevant debtor that is wholly owned by a member of the Group, such debtor shall
acknowledge such notice within 5 Business Days of receipt or, in the case of any other debtor, the Obligor shall use its
reasonable endeavours to obtain an acknowledgement of that notice within 20 Business Days of service. If the Obligor has used its
reasonable endeavours but has not been able to obtain acknowledgement its obligation to obtain acknowledgement shall cease on the
expiry of that 20 Business Day period. Subject to the paragraph below, irrespective of whether notice of the security is required
for perfection, if the service of notice would prevent the Obligor from dealing with an intercompany receivable in the course of
its business no notice of security shall be served until the occurrence of a Declared Default.

 

If required under local law security
over intercompany receivables will be registered subject to the general principles set out in these Agreed Security Principles.

 

		10.	Trade Receivables

 

If an Obligor grants Security
over its trade receivables it shall be free to deal with those receivables in the course of its business until the occurrence of
a Declared Default.

 

No notice of Security may be
prepared or shall be served until the occurrence of a Declared Default.

 

No Security will be granted over
any trade receivables which cannot be secured under the terms of the relevant contract.

 

If required under local law security
over trade receivables will be registered subject to the general principles set out in these Agreed Security Principles.

 

Any list of trade receivables
required shall not include details of the underlying contracts.

 

		11.	Shares

 

Until a Declared Default has
occurred, the charging Obligor will be permitted to retain and to exercise voting rights appertaining to any shares charged by
it, provided that such voting rights are not exercised in a manner which is reasonably likely to adversely affect the validity
or enforceability of the security or is reasonably likely to cause an Event of Default to occur, and the company whose shares have
been charged will be permitted to pay dividends upstream on pledged shares to the extent permitted under the Finance Documents
with the proceeds to be available to the Group.

 

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Where customary and/or required
by applicable law, on or as soon as reasonably practicable following execution of the share charge or pledge (i) the share certificate
and a stock transfer form executed in blank will be provided to the Security Agent and (ii) the share certificate or shareholders’
register, shareholders’ individual accounts or companies’ registers will be endorsed or written up or updated and the
endorsed share certificate or a copy of the written up or updated register provided to the Security Agent.

 

Unless the restriction is required
by law or regulation or cannot be removed without consent from a third party (provided that the relevant Obligor shall use its
reasonable endeavours to obtain such consent for a period of 20 Business Days from request by the Security Agent (acting reasonably)
if it reasonably determines that such endeavours will not involve placing material commercial relationships with third parties
in jeopardy, it being understood that if the Obligor has used its reasonable endeavours but has not been able to obtain such consent
its obligation to obtain such consent shall cease on the expiry of that 20 Business Day period), the constitutional documents of
the company whose shares have been charged will be amended to remove any restriction on the transfer or the registration of the
transfer of the shares on the taking or enforcement of the security granted over them.

 

		12.	Real Estate

 

An Obligor shall not be required
to grant security over its real estate, unless otherwise agreed.

 

There will be no obligation to
investigate title, provide surveys or other insurance or environmental due diligence.

 

		13.	Release of Security

 

Unless required by local law
the circumstances in which the security shall be released should not be dealt with in individual security documents but, if so
required, shall, except to the extent required by local law, be the same as those set out in this Agreement and the Intercreditor
Agreement.

 

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SCHEDULE
2

Key Financial Definitions

 

“Acceptable
Funding Sources” means:

 

		(a)	new shareholder injections into the Group from the sponsor or any
other investors (whether by way of subscription for shares, capital contribution or otherwise);

 

		(b)	permitted financial indebtedness;

 

		(c)	Consolidated Net Income; and 

 

		(d)	cash and cash equivalent investments held by members of the Group
provided that such cash and cash equivalent investments would otherwise have been able to be used at that time to make a permitted
payment,

 

in each case
to the extent Not Otherwise Applied.

 

“Acquisition Costs”
means all fees, commissions, costs and expenses, stamp, registration and other Taxes incurred by the Company or any other member
of the Group in connection with the integration of the Target Group with the Group, the Acquisition or the negotiation, preparation,
execution, notarisation and registration of the transaction documents together with all fees, commissions, costs and expenses incurred
by the Target Group in connection with the integration of the Target Group with the Group, the transaction documents or the Acquisition
(including for the avoidance of doubt Hedging Costs and all payments made to any hedge counterparty, and all fees, costs and expenses
incurred, by any member of the Target Group in connection with the close-out or termination on or about the Closing Date of any
hedging arrangements in respect of which any member of the Target Group was a party (including without limitation in respect of
interest rate, exchange rate and commodity price risk hedging)).

 

“Borrowings” means,
at any time, the aggregate outstanding principal, capital or nominal amount of the Financial Indebtedness of members of the Group
(on a consolidated basis) other than, without double counting:

 

		(a)	any indebtedness referred to in paragraph (g) of the definition
of Financial Indebtedness;

 

		(b)	the amount of any liability of pension obligations of the Group

 

		(c)	any indebtedness under any operating lease;

 

		(d)	in relation to the minority interests line in the balance sheet
of any member of the Group;

 

		(e)	any Financial Indebtedness represented by shares (except for
shares redeemable mandatorily or at the option of the holder prior to the Maturity Date of Facility B); 

 

		(f)	all contingent liabilities under a guarantee, indemnity, bond,
standby or documentary letter of credit to the extent such contingent liabilities do not guarantee or support Financial Indebtedness
of a member of the Group and are not treated as Financial Indebtedness in accordance with the applicable accounting principles
unless the underlying liability covered by such instrument has become due and payable and remains unpaid; 

 

		(g)	any liability to a financial institution in respect of any credit
for goods and services raised in the ordinary course and outstanding for more than 120 days after its customary date of payment;
and

 

		(h)	any intra-Group liabilities.

 

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“Business Acquisition”
means the acquisition of or investment in a company or any shares (or equivalent ownership interests), or securities or a business,
real estate, or undertaking (or, in each case, any interest in any of them) or the incorporation of a company (including a permitted
acquisition or permitted joint venture).

 

“Capital Expenditure”
means any cash expenditure (other than expenditure in respect of Business Acquisitions or Restructuring Cost) which, in accordance
with the applicable accounting principles, is treated as capital expenditure (including the capital element only of any expenditure
incurred in connection with a Capitalised Lease Obligation (other than for purposes of Consolidated Cash Flow)), and only taking
into account the actual cash payment made where assets are replaced and part of the purchase price is paid by way of part exchange.

 

“Capitalised Lease Obligations”
means, with respect to any person, any rental obligation (including any hire purchase payment obligation) which, under the applicable
accounting principles, would be required to be treated as a finance lease or otherwise capitalised in the audited financial statements
of that person, but only to the extent of that treatment.

 

“Cash”
means, at any time (without double counting), cash at bank or in hand (including money market deposits, cash in tills and safes)
or in transit, or payments made by cheques or debit cards which are yet to be received in cleared funds, or any credit balance
on an account to which a member of the Group (or together with other members of the Group) is beneficially entitled (together,
when used in this definition “moneys”) and for so long as:

 

		(a)	repayment of those moneys is not contingent on the prior discharge of any other indebtedness of
any Group member other than any indebtedness included in the calculation of Consolidated Total Net Debt;

 

		(b)	there is no Security over those moneys except for Permitted Security (to the extent it relates
to indebtedness that is included in the calculation of Consolidated Total Net Debt) or standard rights of set-off normally required
by banks; and

 

		(c)	such moneys (save for and in such circumstances, moneys securing the indebtedness referred to in
parentheses in paragraphs (a) and (b) above) are capable of being applied in repayment or prepayment of indebtedness included in
the calculation of Consolidated Total Net Debt within 90 days without any condition other than the lapse of time and notice (together
with any ordinary course administrative clearances if any) being given having to be fulfilled.

 

“Cash Equivalent
Investments” means at any time:

 

		(a)	certificates of deposit maturing within one year after the relevant date of calculation and issued
by an acceptable bank;

 

		(b)	any investment in marketable debt obligations issued or guaranteed by any government of a country
which has a rating for its short-term unsecured and non credit-enhanced debt obligations of A-1 or higher by Standard & Poor’s
Rating Services or F1 or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s Investor Services Limited or by an instrumentality
or agency of any such government having an equivalent credit rating, maturing within one year after the relevant date of calculation
and not convertible or exchangeable to any other security;

 

		(c)	commercial paper not convertible or exchangeable to any other security:

 

		(i)	for which a recognised trading market exists;

 

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		(ii)	issued by an issuer incorporated in a country, the government of which has a rating for its short-term
unsecured and non credit-enhanced debt obligations of A-1 or higher by Standard & Poor’s Rating Services or P-1 or higher
by Moody’s Investor Services Limited or F1 or higher by Fitch Ratings Ltd or by an instrumentality or agency of any such
government having an equivalent credit rating;

 

		(iii)	which matures within one year after the relevant date of calculation; and

 

		(iv)	which has a credit rating of either A-1 or higher by Standard & Poor’s Rating Services
or F1 or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s Investor Services Limited, or, if no rating is available
in respect of the commercial paper, the issuer of which has, in respect of its short-term unsecured and non-credit enhanced debt
obligations, an equivalent rating;

 

		(d)	Sterling bills of exchange eligible for rediscount at the Bank of England and accepted by an acceptable
bank (or their dematerialised equivalent);

 

		(e)	any investment in money market funds which (i) have a credit rating of either A-1 or higher
by Standard & Poor’s Rating Services or F1 or higher by Fitch Ratings Ltd or P-1 or higher by Moody’s Investor
Services Limited, (ii) which invest substantially all their assets in securities of the types described in paragraphs (a)
to (d) above and (iii) can be turned into cash on not more than 30 days’ notice; or

 

		(f)	any other debt security approved by the Majority Lenders,

 

in each case, to which any member of the
Group is alone (or together with other members of the Group) beneficially entitled at that time and which is not issued or guaranteed
by any member of the Group or subject to any Security (other than Permitted Security (to the extent it relates to indebtedness
that is included in the calculation of Consolidated Total Net Debt)).

 

“Consolidated Cash Flow”
means, in respect of the Group and any Relevant Period, Consolidated EBITDA:

 

		(a)	less any increase in Working Capital;

 

		(b)	plus any decrease in Working Capital;

 

		(c)	less all amounts actually paid in cash by members of the Group
during the Relevant Period in respect of Capital Expenditure;

 

		(d)	less all amounts actually paid in cash by members of the Group
during the Relevant Period in respect of Business Acquisitions other than the Acquisition;

 

		(e)	less Pension Items paid in cash to the extent not included in
Consolidated EBITDA;

 

		(f)	less amounts paid in cash or falling due for payment during such
period in respect of income tax, corporation tax, withholding tax, trade tax or any other equivalent;

 

		(g)	plus the amount of any tax credit or rebate received in cash;

 

		(h)	plus exceptional, one-off and non-recurring items received in
cash (to the extent not included in Consolidated EBITDA);

 

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		(i)	without double counting, less exceptional, one-off and non-recurring
items and restructuring costs and reorganisation costs paid in cash (to the extent not taken into account in calculating Consolidated
EBITDA);

 

		(j)	plus (to the extent not included in Consolidated EBITDA) the
amount of any dividends or other profit distributions or loan repayments or prepayments or other cash payments (including royalties)
received in cash (and grossed up for any withholding tax) by any member of the Group during such period from any entity or investment
(including joint ventures and associates) which is not itself a member of the Group;

 

		(k)	less (to the extent not included in Consolidated EBITDA) amounts
invested in cash in permitted joint ventures or unrestricted subsidiaries;

 

		(l)	(to the extent not taken into account in or excluded by any other
paragraph of this definition) less all non-cash credits and plus all non-cash debits and other non-cash charges included in establishing
Consolidated EBITDA;

 

		(m)	(to the extent included in Consolidated EBITDA or in any other
paragraph of this definition) excluding the effect of all cash movements associated with the Acquisition and excluding any related
Acquisition Costs;

 

		(n)	less any fees, costs or charges of a non-recurring nature related
to any equity offering, investments, acquisitions or Financial Indebtedness permitted under the finance documents (whether or not
successful) and paid in cash;

 

		(o)	plus to the extent not already taken into account as exceptional
items under the paragraphs above or applied to exclude items as contemplated under the paragraphs above and to the extent not already
included in calculating Consolidated EBITDA, net cash proceeds for any Asset Sale or other disposal received by the Group which
it is permitted to retain and which are not required to be reinvested or applied in mandatory prepayment;

 

		(p)	less any amounts paid outside the Group to minority shareholders
or partners of members of the Group or pursuant to a permitted payment to the extent not already taken into account in calculating
Consolidated EBITDA; 

 

		(q)	without double counting, for any Quarter Date falling at the
end of a Financial Year, less any amounts that constitute Trapped Cash at the last day of the applicable Relevant Period and plus
any amounts that were deducted under this paragraph for the calculation of this definition for the Quarter Date ending on the immediately
previous Financial Year but no longer constitute Trapped Cash;

 

		(r)	less any amounts claimed under loss of profit, business interruption
or equivalent insurance in respect of such period to the extent not received in cash during that Financial Year; and

 

		(s)	(to the extent not included in calculating Consolidated Total
Net Cash Interest Expenses) plus the amount of any cash receipts and less the amount of any cash payments paid, under any Treasury
Transaction by a member of the Group during the Relevant Period (including any one-off cash payments, premia fees, costs or expenses
in connection with the purchase of a Treasury Transaction or which arise upon maturity, close-out or termination of any Treasury
Transaction),

 

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and so that no amount shall be added (or
deducted) more than once, and excluding amounts already taken into account in calculating Consolidated EBITDA, and there shall
also be excluded:

 

		(i)	the effect of all cash movements (including purchase price adjustments or one off consolidation
effects) associated with permitted acquisitions, permitted joint venture investments or investments in unrestricted subsidiaries
and transaction costs, debt purchase transactions and any share options relating to a member of the Group existing at the Closing
Date; and

 

		(ii)	any item expressed to be deducted to the extent at any time allocated by the Company as funded
directly or indirectly from Acceptable Funding Sources (other than under paragraph (b) thereof).

 

“Consolidated Debt Service” for any period
and in relation to the Group, means Consolidated Total Net Cash Interest Expenses of the Group for such period, plus all scheduled
repayments (as reduced by any prior repayments) of Borrowings on a consolidated basis which fell due for repayment or prepayment
(excluding, for the avoidance of doubt, any voluntary or mandatory prepayment) during such period, but excluding any principal
amount which fell due under any overdraft or revolving credit facility and which was available for simultaneous redrawing according
to the terms of such facility or under the RCF and any Ancillary Facility or which would have been available for simultaneous redrawing
but for a cancellation or termination of the available facility by a member of the Group and excluding any repayment of Financial
Indebtedness existing on the Closing Date which is required to be repaid under the finance documents and excluding any repayment
of amounts under the finance documents which are refinanced by a replacement facility or notes permitted under the finance documents.

 

“Consolidated EBIT” for any period (and without
double counting), means the consolidated profits of the Group (including the results from discontinued operations) from ordinary
activities before taxation:

 

		(a)	before taking into account any accrued interest (including capitalised
interest and amortisation of arrangement, underwriting and participation fees and similar issue costs), commission, fees (including
agency fees), discounts and other finance charges and losses (including repayment and prepayment premiums) incurred or payable
or owed to any member of the Group in respect of Borrowings (but calculated to disregard the carve outs in paragraphs (a), (d),
(e), (f) and (h) of that definition);

 

		(b)	after including the amount of profit and deducting the amount
of any loss of any member of the Group which is attributable to any third party (not being a member of the Group) which is a shareholder
(or holder of a similar interest) in such member of the Group;

 

		(c)	before taking into account any (w) unrealised gains or losses
on hedging or other derivatives or (x) realised gains or losses on hedges or other derivatives entered in relation to the Facilities,
an Additional Facility or any other Permitted Alternative Debt or any acquisition indebtedness or any acquired indebtedness or
any refinancing indebtedness or otherwise in connection with any purpose other than in the ordinary course of trading (including
for the avoidance of doubt before taking into account mark-to-market adjustments on currency swaps) or (y) exchange rate gains
or losses arising due to the re-translation of the balance sheet items but (z) after taking into account any realised gains on
hedges or other derivatives entered into in the ordinary course of trading (but before taking into account realised losses on such
hedges or derivatives);

 

		(d)	before taking into account any gain or loss arising from an upward
or downward revaluation of any asset or liability or on the disposal or write down of an asset or liability or any non-cash charges,
expenses or negative adjustments (or minus non-cash gains or positive adjustments) relating to any adjustments arising by reason
of the application of certain accounting principles with respect to ASC 805 (relating to changes in accounting for earn-out obligations);

 

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		(e)	before taking into account any items (positive or negative) of
a one-off, non-recurring, extraordinary or exceptional nature;

 

		(f)	plus any amounts claimed under loss of profit, business interruption
or equivalent insurance;

 

		(g)	before deducting Restructuring Costs and Hedging Costs;

 

		(h)	before deducting any Acquisition Costs and Permitted Acquisition
Costs;

 

		(i)	before deducting Pension Items and any expenses relating to pensions
including service costs and pension interest costs;

 

		(j)	plus the amount received in cash by members of the Group through
dividends, profit distributions, returns on investments, royalties or similar payments by any entity (which is not a member of
the Group) in which any member of the Group has an ownership interest (grossed up in respect of any applicable withholding tax
and including any repayment to the Group of loans to, or other investments, in associates or joint ventures);

 

		(k)	before deducting any fees, costs or charges related to any actual
or attempted equity offering or equity transaction or sale, investments, acquisitions or Financial Indebtedness permitted under
the finance documents (whether or not successful) and before deducting agency and trustee fees under permitted financial indebtedness;

 

		(l)	before deducting any amount referred to in the definition of
permitted payment;

 

		(m)	before taking into account any expense referable to equity settled
share based compensation of employees or management or profit sharing schemes or compensation or payments to departing management;

 

		(n)	before taking into account any gains or losses arising on litigation
settlements or with respect to indemnification provisions or similar agreement or insurance;

 

		(o)	before taking into account (i) any costs or expenses relating
to plant and/or business relocation, (ii) any research, development or other similar costs, and (iii) any costs that are costs
of the type that are capitalised in the base case model;

 

		(p)	before deducting the impact of any non-cash provisions; and

 

		(q)	plus any amount of tax that would be accounted for below Consolidated
EBIT in accordance with the applicable accounting principles,

 

provided that any profit
or loss on any Notifiable Debt Purchase Transaction shall not be taken into account in calculating Consolidated EBIT.

 

“Consolidated EBITDA” for any period and
without double counting means the Consolidated EBIT of the Group plus the consolidated depreciation and amortisation (including,
for the avoidance of doubt and without double counting, lease depreciation charges and amortisation of acquisition goodwill) and
any impairment costs of the Group (each as defined by reference to the consolidated financial statements of the Group).

 

“Consolidated Pro Forma EBITDA” for any Relevant
Period, means Consolidated EBITDA as adjusted in accordance with this Schedule 2.

 

“Consolidated Senior Secured Net Debt” means
the principal amount of all Borrowings of the Group under Facility B, the RCF, any Incremental Facility, any acquisition indebtedness,
any acquired indebtedness, any refinancing indebtedness and under any Permitted Alternative Debt solely to the extent such Borrowings
rank in right of payment and security at least pari passu with the Facility B and are guaranteed by (and have the right
to receive guarantees from) at least the same guarantors as under Facility B and benefits from at least the same security which
secures the Facility B (ignoring, where relevant for the purposes of assessing such equivalency, any hardening periods or guarantee
limitations) or otherwise is designated as “senior secured liabilities” (or any equivalent term) under the Intercreditor
Agreement, less the aggregate amount at that time of Cash and Cash Equivalent Investments held by members of the Group.

 

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“Consolidated Total Net Cash Interest Expenses”
for any period and in relation to the Group, means:

 

		(a)	the aggregate of interest, commitment or non-utilisation fees,
annual agency fees and other recurring fees (other than as excluded in paragraph (g) below) relating to the Facility B, the RCF,
any Incremental Facility, any acquisition indebtedness, any acquired indebtedness, any refinancing indebtedness and any Permitted
Alternative Debt accruing (whether or not paid) during a period plus or minus net amounts receivable or payable or accrued by the
Group under the hedging agreements or other Treasury Transactions in respect of interest but excluding any one-off cash payments,
premia fees, costs or expenses in connection with the purchase of a Treasury Transaction or which arise upon maturity, close-out
or termination of any Treasury Transaction and any unrealised gains or losses on any Treasury Transactions;

 

		(b)	plus interest, commitment fees and other fees on any other Borrowings
(including the interest element of any finance leases) accruing (whether or not paid) during a period;

 

		(c)	plus discount and acceptance fees payable by the Group in connection
with any acceptance credit, bill discounting debt factoring or other like arrangement;

 

		(d)	less interest income accrued (whether or not paid) for the account
of a member of the Group;

 

		(e)	excluding the non-cash element of interest on any Financial Indebtedness
during that period;

 

		(f)	excluding any amortisation of Acquisition Costs or Permitted
Acquisition Costs; and

 

		(g)	excluding all one-off agency, arrangement, underwriting, amendment,
consent or other front end, one-off or similar non-recurring fees (and any amortisation thereof); repayment and prepayment premiums,
fees or costs; any deemed finance charges or notional interest in relation to pension liabilities and any withholding tax (or gross
up obligation) on interest receivable, received, payable or paid.

 

“Consolidated Total Net Debt” means the principal
amount of all Borrowings of the Group less the aggregate amount at that time of Cash and Cash Equivalent Investments held by members
of the Group.

 

“Excess Cash Flow” means in relation to any
Financial Year of the Group, the result (if positive) of Consolidated Cash Flow for such period less (to the extent otherwise included)
the aggregate of:

 

		(a)	Consolidated Debt Service for such Financial Year;

 

		(b)	to the extent included in Consolidated Cash Flow, any mandatory
prepayments of Financial Indebtedness made during such period but only to the extent that any Financial Indebtedness so prepaid
is not available for immediate redrawing and disregarding any such prepayments to the extent funded from the proceeds of Permitted
Financial Indebtedness;

 

		(c)	to the extent included in Consolidated Cash Flow, any voluntary
prepayments of Financial Indebtedness made during such period but only to the extent that any Financial Indebtedness so prepaid
is not available for immediate redrawing and disregarding any such prepayments to the extent funded from the proceeds of Permitted
Financial Indebtedness;

 

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		(d)	to the extent included in Consolidated Cash Flow, the cash proceeds
of any subscription (to the extent paid in cash) for common and/or preference shares of the Group by way of any capital contribution
to the Group or any raising of funds by way of private placement of ordinary or preference share capital;

 

		(e)	to the extent included in Consolidated Cash Flow, the cash proceeds
of new shareholder injections;

 

		(f)	any net cash proceeds referred to in paragraph (o) of Consolidated
Cash Flow;

 

		(g)	any amount which is not deducted from the definition of Consolidated
Cash Flow as a result of the operation of paragraph (ii) of the proviso to that definition;

 

		(h)	any Pending Acquisition Amount (except to the extent that the
Pending Acquisition Amount is funded or refinanced from the proceeds of an Incremental Facility or Permitted Alternative Debt)
and any Pending Restructuring Amount (except to the extent that the Pending Restructuring Amount is funded or refunded to the extent
funded from the proceeds of an Incremental Facility or Permitted Alternative Debt); 

 

		(i)	amounts claimed under loss of profit, business interruption or
equivalent insurance in respect of such period to the extent not received in cash during that Financial Year;

 

		(j)	the amount of any committed Capital Expenditure contracted for
during that Financial Year but unspent during such Financial Year (“Pending Capital Expenditure Amount”);

 

		(k)	tax accrued and/or payable during or in respect of such Financial
Year but not overdue (save if under dispute) and not paid (“Pending Tax Amount”); and

 

		(l)	any cash amounts attributable to a person, property, business
or material fixed asset that a member of the Group has committed to transfer or otherwise dispose of during such Financial Year
and that is to be transferred or otherwise disposed of in the immediately following Financial Year (“Pending Disposal Cash”),

 

plus any Pending Acquisition Amount, Pending Capital Expenditure
Amount Pending Restructuring Amount, Pending Tax Amount or Pending Disposal Cash already subtracted from Excess Cash Flow in respect
of the previous Financial Year and which is not actually spent in the current Financial Year or, in relation to Pending Disposal
Cash, in respect of which a disposal has not occurred.

 

“Financial Indebtedness”
means any indebtedness for or in respect of (without double counting):

 

		(a)	moneys borrowed;

 

		(b)	any amount raised by acceptance under any acceptance credit or bill discounting facility or dematerialised
equivalent;

 

		(c)	any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures,
loan stock or any similar instrument (but not trade instruments);

 

		(d)	the amount of any liability in respect of finance leases;

 

		(e)	receivables sold or discounted (other than any receivables to the extent they are sold or discounted
on a non-recourse basis or where any recourse in respect of such receivables otherwise sold on a non-recourse basis is limited
to customary indemnities, warranties and/or security);

 

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		(f)	any amount raised under any other transaction (including any forward sale or purchase agreement)
required to be accounted for as a borrowing in accordance with the applicable accounting principles;

 

		(g)	any Treasury Transaction (and, when calculating the value of any Treasury Transaction, only the
marked to market net value (or, if any actual amount is due as a result of the termination or close-out of that Treasury Transaction,
that amount) shall be taken into account);

 

		(h)	amounts raised by any issue of shares which are expressed to be redeemable mandatorily or at the
option of the holder prior to the Maturity Date for Facility B;

 

		(i)	any counter-indemnity obligation in respect of a guarantee, indemnity bond, standby or documentary
letter of credit or any other instrument issued by a bank or financial institution in respect of an underlying liability (excluding
any Trade Instruments) of an entity which is not a member of the Group which liability would fall within one of the other paragraphs of
this definition;

 

		(j)	the amount of any liability in respect of any credit for goods and services raised in the ordinary
course and outstanding for more than 120 days after its customary date of payment; and

 

		(k)	the amount of any liability in relation to any earn out arrangements, contingent consideration
arrangements, post-closing payment adjustments or other adjustments of purchase price, indemnification or similar obligations in
connection with any acquisition in each case to the extent required to be account for as a borrowing in accordance with the applicable
accounting principles;

 

		(l)	the amount of any liability in respect of any guarantee for any of the items referred to in paragraphs (a)
to (j) above,

 

but excluding, in all
cases, for the avoidance of doubt all pension-related or post-employment liabilities; intra-day exposures; indebtedness in respect
of any lease, concession or licence treated as an operating lease under the applicable accounting principles (as in force at the
date of the Senior Facilities Agreement); Financial Indebtedness arising under Treasury Transactions except to the extent included
in paragraph (g) above; obligations in respect of any licence, permit or other approval arising in the ordinary course of business;
or in respect of trade instruments; and so that, where the amount of Financial Indebtedness falls to be calculated or where the
existence (or otherwise) of any Financial Indebtedness is to be established Financial Indebtedness in respect of uncashed cheques
issued by a member of the Group in the ordinary course of trading shall not be taken into account.

 

“Financial Quarter” means the period commencing
on the day after one Quarter Date and ending on the next Quarter Date.

 

“Financial Year” means each annual accounting
period of the Group or the Group, as relevant, ending on 31 December in each year.

 

“Hedging Costs”
means any costs incurred by a member of the Group in connection with the putting in place of any hedging agreements entered into
from time to time.

 

“Not Otherwise Applied” means, in relation
to any amount which is proposed to be applied or included, that such amount has not been (and is not simultaneously being), included,
applied, designated or taken into account in respect of, any other calculation, use, event, transaction or permission.

 

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“Pending Acquisition Amount” means, in respect
of any Financial Year (the “Relevant Financial Year”), the aggregate cash amounts to be paid in respect of the
consideration for permitted acquisitions for which a member of the Group has entered into a commitment before the end of the Relevant
Financial Year.

 

“Pending Restructuring Amount” means, in
respect of any Financial Year, the aggregate cash amounts to be paid in respect of any Restructuring Costs for which a member of
the Group has entered into a commitment before the end of the Financial Year.

 

“Pension Items” means the current cash service
costs attributable to any income or charge attributable to a post-employment benefit scheme.

 

“Permitted Acquisition Costs” means all fees,
commissions, costs and expenses, stamp, registration and other Taxes incurred by the Company or any other member of the Group in
connection with any permitted acquisition or permitted joint venture or investment in an unrestricted subsidiary and the negotiation,
preparation, execution, notarisation and registration of related documentation together with all fees, commissions, costs and expenses
incurred by the target entity in connection with such acquisition or related documentation (including for the avoidance of doubt
any costs relating to the hedging arrangements of the target entity).

 

“Pro Forma Acquisition
Synergies and Cost Savings” means synergies and cost savings reasonably anticipated by the CEO or CFO or any other authorised
signatory of the Company’s board of directors to be achievable within 12 months of the later of the relevant testing date
and the date of a relevant acquisition as a result of that acquisition.

 

“Pro Forma Disposal
Synergies and Cost Savings” means synergies and cost savings reasonably anticipated by the CEO or CFO or any other authorised
signatory of the Company’s board of directors to be achievable within 12 months of the later of the relevant testing date
and the date of a disposal as a result of that disposal.

 

“Pro Forma Group
Initiative Synergies and Cost Savings” means synergies and cost savings reasonably anticipated by the CEO or CFO or any
other authorised signatory of the Company’s board of directors to be achievable within 12 months of the later of the relevant
testing date and the date of a Group Initiative as a result of that Group Initiative.

 

“Quarter Date” means each of 31 March, 30
June, 30 September and 31 December or such other dates which correspond to the quarter end dates within each Financial Year.

 

“Relevant Period” means each period of four
consecutive Financial Quarters ending on a Quarter Date (which for the avoidance of doubt may include periods prior to the Closing
Date).

 

“Restructuring Costs” means costs or expenses
relating to cost savings initiatives, operating expense reductions, transition, business optimisation, inventory optimisation programmes,
software development costs, costs related to the closure, relocation or consolidation of facilities, retail, administrative or
production locations and other similar items and curtailments (including the cessation of the Mexican server-based gaming division),
consulting fees, signing costs, retention and completion bonuses, relocation expenses and modifications to pension and post-retirement
employee benefit plans, retraining, severance and termination, new system designs and implementation costs, business interruption,
reorganisation and other restructuring or cost-cutting measures, carve-outs, separations, the rationalisation, re-branding, start-up,
reduction or elimination of product lines, assets or businesses (for the avoidance of doubt, excluding any related Capital Expenditure).

 

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“Retained Cash” means, at any time and from
time to time to the extent allocated as such at the option of the Company and to the extent not previously applied or allocated
for a particular purpose, Retained Excess Cash; net cash proceeds which any member of the Group is permitted to retain and which
are not required to be applied in mandatory prepayment; any prepayments waived (and not taken up by another lender) or deemed waived
by a lender, any amounts received or receivable from any person which is not a member of the Group for the purpose of, or with
the intention that such amounts are available to be used for, the relevant expenditure (including under the Acquisition Documents
or any agreements governing any permitted acquisitions (by way of indemnity, compensation or otherwise)); prepayments under any
relevant contractual arrangements; investment grants; and capital contributions received from landlords in relation to real property).

 

“Retained Cash Flow” means Excess Cash Flow
not required to be applied in prepayment of Facility B, the RCF or any Incremental Facility or any Permitted Alternative Debt including
for the avoidance of doubt all Excess Cash Flow generated in the Financial Year ended 31 December [2019]17
and (without double counting and to the extent deducted from positive Excess Cash Flow in determining the amount of Excess Cash
Flow required to be prepaid (if any) under the Senior Facilities Agreement) the excess cash flow de minimis amount.

 

“Retained Excess Cash” means accumulated
unspent Retained Cash Flow from any Financial Year of the Group to the extent not utilised or applied in accordance with the terms
of the finance documents and shall for the avoidance of doubt include all Excess Cash Flow generated in any Financial Year which
ends after the Closing Date but which is not required to be prepaid.

 

“Total Net Leverage Ratio” means the ratio
of Consolidated Total Net Debt as at the last day of a Relevant Period to Consolidated Pro Forma EBITDA (each as shown in the relevant
compliance certificate).

 

“Trapped Cash” means any cash, cash equivalents
or other amounts that would, if it constituted an applicable mandatory prepayment proceed, be exempt from being required to be
applied in a mandatory prepayment of the Facilities pursuant to the Senior Facilities Agreement, for reasons of unlawfulness, inability
to upstream to applicable Borrowers and otherwise.

 

“Treasury Transactions” means any derivative
transaction entered into in connection with protection against or benefit from fluctuation in any rate or price.

 

“Working Capital” means trade and other debtors
in relation to operating items of any member of the Group plus prepayment in relation to operating items, inventory and stock,
less trade and other creditors in relation to operating items (but not including sums payable in respect of any Borrowings) of
any member of the Group and less accrued expenses and accrued costs of any member of the Group.

 

 Calculation Methodology

 

		(a)	The financial covenant will be tested by reference to each set
of financial statements delivered to the Agent for the Relevant Period or any part thereof and/or each Compliance Certificate.

 

		(b)	The components of each financial definition will be calculated
in accordance with the finance documents and as applicable with the relevant accounting principles.

 

		(c)	For a Relevant Period ending less than 12 Months after the Closing
Date the financial covenant ratio (and any other relevant ratio or financial definition calculated for the purposes of the Senior
Facilities Agreement) shall be calculated using:

 

		(i)	Consolidated Total Net Debt and Consolidated Senior Secured Net
Debt as at the end of that Relevant Period;

 

 

		17	To refer to 31 December of the Financial Year during which
the Closing Date occurs.

 

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		(ii)	Consolidated EBIT, Consolidated EBITDA, Consolidated Pro Forma
EBITDA and Consolidated Cash Flow calculated on an actual basis over the Relevant Period; and

 

		(iii)	Consolidated Debt Service and Consolidated Total Net Cash Interest
Expenses calculated on a cumulative basis by reference to the amount thereof for the period from the Closing Date.

 

		(d)	For the purpose of the financial definitions, the financial covenants
and the calculation of the Total Net Leverage Ratio no item shall be included or excluded more than once in any calculation.

 

		(e)	For the purposes of the financial definitions, the financial
covenants and the calculation of the Total Net Leverage Ratio in respect of any Relevant Period and to the extent the Total Net
Leverage Ratio or any financial definition is used as the basis (in whole or in part) for permitting any transaction or making
any determination under the Senior Facilities Agreement (including on a pro forma basis), the exchange rates (including for the
purposes of determining any interest rate) and interest rates used for determination of Consolidated Total Net Debt, Consolidated
Senior Secured Net Debt and Consolidated Total Net Cash Interest Expenses for that Relevant Period shall be (i) with respect to
Financial Indebtedness for which the Group has entered into interest rate and/or cross currency derivatives, the rate or level
at which such derivative has been entered into and (ii) with respect to all other Financial Indebtedness, the interest rate and/or
exchange rate calculated in accordance with paragraph (f) below.

 

		(f)	Subject to paragraph (d) above, for the purposes of the financial
definitions, the financial covenants and the calculation of the Total Net Leverage Ratio in respect of any Relevant Period, the
exchange rates (including for the purposes of determining any interest rate) used in the calculation of Consolidated EBIT, Consolidated
EBITDA, Consolidated Pro Forma EBITDA and Consolidated Total Net Cash Interest Expenses shall be the weighted average exchange
rates for the Relevant Period or otherwise consistent with the exchange rate methodology applied in the financial statements delivered
pursuant to the Senior Facilities Agreement, in each case as selected and determined by the Company.

 

		(g)	

 

		(i)	The financial covenants and financial definitions for all purposes
in the Senior Facilities Agreement (other than to the extent such definitions are used for the purposes of calculating Consolidated
Pro Forma EBITDA and Consolidated Cash Flow, in each case for the purposes of calculating Excess Cash Flow) shall be calculated
to give pro forma effect to any synergies and cost savings arising from steps taken or committed to be taken in any Relevant
Period (including the portion thereof occurring prior to the relevant event) in connection with acquisitions, dispositions or restructurings,
reorganisations, synergies or cost saving or other similar initiatives (such initiatives being “Group Initiatives”)
and taking into account throughout (without double counting any synergies and cost savings actually achieved) Pro Forma Acquisition
Synergies and Cost Savings, Pro Forma Disposal Synergies and Cost Savings and/or Pro Forma Group Initiative Synergies and Cost
Savings and to give pro forma effect to any related incurrence, assumption or repayments of Financial Indebtedness.

 

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		(ii)	For the purposes of the calculation of Consolidated Pro Forma
EBITDA (other than to the extent such definitions are used for the purposes of calculating Excess Cash Flow), the aggregate earnings
before interest, tax, depreciation and amortisation (calculated on the same basis as Consolidated EBITDA but on an unconsolidated
bases (except to the extent that the entity, business or material fixed asset acquired itself has Subsidiaries) (“EBITDA”)
of any entity, business or material fixed asset that is acquired during a Relevant Period shall be included for the full Relevant
Period (as adjusted by any Pro Forma Acquisition Synergies and Cost Savings, Pro Forma Disposal Synergies and Cost Savings and/or
Pro Forma Group Initiative Synergies and Cost Savings) and shall exclude any non-recurring costs and other expenses related to
such acquisitions or investments or Group Initiatives.

 

		(iii)	For the purposes of calculation of Consolidated Pro Forma EBITDA
and (for the purposes of calculating Excess Cash Flow) Consolidated Cashflow, the EBITDA and cashflow (calculated on the same basis
as Consolidated Cashflow but on an unconsolidated basis (except to the extent that the entity or business sold itself has Subsidiaries)
(“Cashflow”) of any entity, business or material fixed asset that is sold
(in the case of Consolidated Pro Forma EBITDA) during the Relevant Period or (in the case of Consolidated Cashflow) at any time
shall be excluded, in the case of EBITDA (as defined in paragraph (ii) above), for the full Relevant Period and in the case of
Cashflow, from the date on which it is agreed that the Cashflow of the relevant entity, business or material fixed asset is transferred
to or held for the benefit of the buyer (including without limitation under any lock-box arrangements involving an economic transfer
occurring prior to a legal transfer of the relevant entity, business or assets) (in the case of Consolidated Pro Forma EBITDA,
as adjusted by any Pro Forma Acquisition Synergies and Cost Savings, Pro Forma Disposal Synergies and Cost Savings and/or Pro Forma
Group Initiative Synergies and Cost Savings) and shall exclude any non-recurring costs and other expenses related to such sales,
transfers, dispositions or Group Initiatives.

 

		(iv)	Consolidated Senior Secured Net Debt, Consolidated Total Net
Debt and Consolidated Total Net Cash Interest Expenses shall be adjusted to give pro forma effect to any incurrence, assumption
or repayment of Financial Indebtedness (including any reduction in Consolidated Senior Secured Net Debt or, as applicable, Consolidated
Total Net Debt from the proceeds of any asset sales) arising from any acquisitions, investments, dispositions or Group Initiatives
if a related adjustment has been made to Consolidated Pro Forma EBITDA.

 

		(v)	To the extent the Total Net Leverage Ratio or any financial definition
is used as the basis (in whole or part) for permitting any transaction or making any determination under this Agreement (including
on a pro-forma basis) at any time after a Quarter Date, Consolidated Senior Secured Net Debt and Consolidated Total Net Debt shall
be reduced to take into account any repayment of Financial Indebtedness made on or before the relevant date and shall be increased
to take into account any incurrence or assumption of Financial Indebtedness made on or before the relevant date.

 

		(vi)	If the aggregate amount of Pro Forma Acquisition Synergies and
Cost Savings, Pro Forma Disposal Synergies and Cost Savings or Pro Forma Group Initiative Synergies and Cost Savings taken into
account in any applicable calculation are greater than 15 per cent. of Consolidated Pro Forma EBITDA (after taking into account
such acquisition, disposal or Group Initiative), those Pro Forma Acquisition Synergies and Cost Savings, Pro Forma Disposal Synergies
and Cost Savings or Pro Forma Group Initiative Synergies and Cost Savings (as the case may be) shall be commented on as not being
unreasonable by any independent reputable accountancy firm or industry specialist (or such other firm approved by the Majority
Lenders) (which commentary may be provided in any accompanying accountants’ or industry specialist due diligence report).

 

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		(vii)	The aggregate amount of Pro Forma Acquisition Synergies and Cost
Savings, Pro Forma Disposal Synergies and Cost Savings and Pro Forma Group Initiative Synergies and Cost Savings taken into account
in any Relevant Period shall not be greater than 20 per cent. of Consolidated Pro Forma EBITDA (after taking into account such
acquisition, disposal or Group Initiative) for that Relevant Period.

 

		(h)	Notwithstanding anything to the contrary (including anything
in the financial definitions), when calculating any financial definition or ratio under the Finance Documents (excluding for the
avoidance of doubt, Excess Cash Flow), the Company shall be permitted to exclude all or any part of any expenditure or other negative
item (and/or the impact thereof) directly or indirectly relating to or resulting from: 

 

		(i)	the Acquisition;

 

		(ii)	start-up costs for new businesses and branding or re-branding
of existing businesses; and

 

		(iii)	Restructuring Costs and/or Acquisition Costs.

 

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SCHEDULE 3

 

Conditions Precedent to initial Utilisation

 

		1.	The Original Obligors

 

		(a)	In respect of each Original Obligor, a copy of the constitutional documents (or equivalent).

 

		(b)	A copy of a resolution of the board of directors or equivalent body of each Original Obligor:

 

		(i)	approving the terms of, and the transactions contemplated by, the Transaction Documents to which
it is a party and resolving that it execute the Transaction Documents to which it is a party;

 

		(ii)	authorising a specified person or persons to execute the Transaction Documents to which it is a
party on its behalf;

 

		(iii)	authorising a specified person or persons, on its behalf, to sign and/or despatch all documents
and notices (including, if relevant, any Utilisation Request) to be signed and/or despatched by it under or in connection with
the Transaction Documents to which it is a party; and

 

		(iv)	other than in the case of the Company, authorising the Company to act as its agent in connection
with the Finance Documents.

 

		(c)	A specimen of the signature of each person authorised by the resolution referred to in (b) above.

 

		(d)	Other than with respect to the Company, if required under applicable law or practice or by its
constitutional documents, a copy of a resolution signed by all the holders of all the issued shares of each Original Obligor, approving
the terms of, and the transactions contemplated by, the Transaction Documents to which each Original Obligor is a party and resolving
that it execute the Transaction Documents to which it is a party.

 

		(e)	Other than with respect to the Company, if required under applicable law or practice or by its
constitutional documents, a copy of a resolution of the board of directors of each corporate shareholder of each Original Obligor,
approving the terms of the resolutions referred to in paragraph (d) above.

 

		(f)	A certificate of each Original Obligor (signed by a director, a manager or an authorised signatory,
as the case may be) confirming that subject to the guarantee limitations as set out in this Agreement borrowing or guaranteeing
or securing, as appropriate, the Total Commitments would not cause any borrowing, guarantee, security or similar limit binding
on it to be exceeded.

 

		(g)	A certificate of each Original Obligor (signed by a director, a manager or an authorised signatory,
as the case may be) dated as at the Closing Date and certifying that each copy document relating to it specified in this Part 1
of Schedule 3 is correct, complete and (to the extent executed) in full force and effect and has not been amended or superseded
as at a date no earlier than the Closing Date.

 

		(h)	Evidence that the Company has cash on balance sheet as required in the sources & uses.

 

		(i)	Evidence satisfactory to the Agent that each Lender has carried out and is satisfied with the results
of all “know your client”, anti-money laundering and other similar checks required by each Lender in relation to each
Original Obligor and, in each case, notified by each Lender to the Company at least 5 Business Days prior to the date of this Agreement.

 

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		(j)	In respect of each member of the Group incorporated in England & Wales whose shares are the
subject of a Transaction Security Document governed by the laws of England & Wales (a “Charged Company”), either:

 

		(i)	a certificate of an authorised signatory of the Company certifying that (A) each member of the
Group has complied within the relevant timeframe with any notice it has received pursuant to Part 21A of the Companies Act 2006
from the Charged Company; and (B) no “warning notice” or “restrictions notice” (in each case as defined
in Schedule 1B of the Companies Act 2006) has been issued in respect of those shares, together with a copy of the “PSC register”
(within the meaning of section 790C(10) of the Companies Act 2006) of the Charged Company, which, in the case of a Charged Company
that is a subsidiary of the Company, is certified by an authorised signatory of the Company to be correct, complete and not amended
or superseded as at a date no earlier that the date of the Senior Facilities Agreement; or

 

		(ii)	a certificate of an authorised signatory of the Company certifying that such Charged Company is
not required to comply with Part 21A of the Companies Act 2006.

 

		2.	Finance Documents

 

A copy of each
of the following documents in the agreed form, each duly executed and delivered by each of the Obligors, in each case to the extent
party thereto:

 

		(a)	the Senior Facilities Agreement;

 

		(b)	any fee letters and syndication letters;

 

		(c)	the hedging letter;

 

		(d)	the Intercreditor Agreement; and

 

		(e)	a Utilisation Request in relation to any Utilisation to be made on the Closing Date.

 

		3.	Transaction Security Documents

 

		(a)	A copy of each of the following Transaction Security Documents in the agreed form, each duly executed
and delivered by each Obligor, in each case to the extent party thereto:

 

	 	
        

        Name of Obligor/Security
        provider
	 	Transaction Security Document	 	Governing law of
    documents
	 	
        Inspired Entertainment Inc

        DMWSL 633 Limited

        DMWSL 632 Limited

        DMWSL 631 Limited

        Gaming Acquisitions Limited

        Inspired Gaming Group Limited

        Inspired Gaming (Holdings) Limited

        Inspired Gaming (International) Limited

        Inspired Gaming (UK) Limited

        Inspired Gaming (Greece) Limited
	 	English Debenture (in the case of Inspired Entertainment Inc., solely for the purposes of charging the shares of DMWSL 633 Limited held by it and any bank accounts maintained by it in England and Wales)	 	England and Wales
	 	 	 	 	 	 
	 	Inspired Entertainment Inc.

Inspired Gaming USA Inc.

DMWSL 631 Limited	 	US Security Agreement	 	New York law

 

		(b)	Subject, in each case, to any grace period set out in the relevant Transaction Security Document
and subject to the Agreed Security Principles, a copy of all notices required to be sent under the relevant Transaction Security
Document as of the Closing Date executed by the relevant Obligor together with all share certificates and stock transfer forms
required to be provided on the Closing Date under the Transaction Security Documents.

 

		4.	Legal Opinions

 

		(a)	An enforceability and capacity legal opinion of White & Case LLP, legal advisers to the Agent
and the Arrangers as to English law, addressed to the Agent, the Security Agent and the Original Lenders and capable of being relied
upon by any persons who become Lenders pursuant to the primary syndication of the Facilities, substantially in the form distributed
to the Agent prior to signing this Agreement.

 

		(b)	A legal opinion of Sidley Austin LLP, legal advisers to the Company with respect to capacity and
validity in connection with the Original Obligors organized under the laws of the state of Delaware and the enforceability of the
Finance Documents governed by the laws of the state of New York executed by such Original Obligors, addressed to the Agent, the
Security Agent and the Original Lenders (as defined therein) and capable of being relied upon by any persons who become Lenders
pursuant to the primary syndication of the Facilities, substantially in the form distributed to the Agent prior to signing this
Agreement..

 

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		5.	Reports

 

		(a)	A copy of the draft or final form approved by the Arrangers on or prior to the date of the Senior
Facilities Agreement of the following reports (the “Reports”), provided that this condition precedent shall be
satisfied if the final form of each Report is not different in any manner which is materially adverse to the interests of the Lenders
(taken as whole) compared to the draft of that Report received by the Arrangers on or prior to the date of the Senior Facilities
Agreement, except for any changes or additions approved by the Arrangers (acting reasonably):

 

		(i)	a tax structure memorandum prepared by PricewaterhouseCoopers LLP;

 

		(ii)	the buyside red flag financial and tax due diligence report prepared by KPMG LLP;

 

		(iii)	synergies review report prepared by KPMG LLP;

 

		(iv)	Q1-19 due diligence report prepared by KPMG; and

 

		(v)	trading update to fourth Quarter 2018 prepared by KPMG LLP.

 

		(b)	Reliance letters in respect of the Reports whose providers have not adopted a general policy of
not providing reliance in favour of Finance Parties and only to the extent that the Arrangers agree the terms of such reliance
letters with the relevatn Report providers prior to entering into the Senior Facilities Agreement.

 

		6.	Financial Information

 

		(a)	The Original Financial Statements.

 

		(b)	The Base Case Model in the form agreed with the Mandated Lead Arrangers, provided that this condition
precedent shall be satisfied if the final form of the Base Case Model is not different in any manner which is materially adverse
to the interests of the Lenders compared to the form of the Base Case Model agreed with the Mandated Lead Arrangers on or prior
to the date of this Agreement, except for any changes or additions approved by the Mandated Lead Arrangers.

 

		7.	Acquisition Documents

 

		(a)	Copies of the executed Acquisition Documents in the form approved by the Mandated Lead Arrangers
on or prior to the date of the Senior Facilities Agreement (save for any amendments or waivers which are not materially adverse
to the interests of the Finance Parties (taken as a whole) and any other changes or additions approved by the Lenders (acting reasonably)).

 

		(b)	A certificate of the Company (signed by a director or an authorised signatory) dated the Closing
Date certifying and confirming that:

 

		(i)	other than payment of the purchase price under the Acquisition Agreement, which will be satisfied
immediately following utilisation of Facility B, the Acquisition Documents are unconditional in all respects and that no terms
and conditions of the Acquisition Documents have been amended, waived or terminated without the consent of the Arrangers (acting
reasonably) other than an amendment, waiver or consent which is not materially adverse to the interests of the Finance Parties;
and

 

		(ii)	so far as it is aware there has been no material breach of warranty or otherwise under the Acquisition
Documents which would entitle the Company to rescind the Acquisition Documents and which would be materially adverse to the interests
of the Finance Parties.

 

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		8.	Other Documents and Evidence

 

		(a)	Evidence that Existing Facilities will be fully discharged on the Closing Date.

 

		(b)	The Group Structure Chart.

 

		(c)	Evidence that all existing Security with respect to the Existing Facilities will be released on
the Closing Date, subject to any local law formalities which cannot be completed on or prior to the Closing Date but shall be completed
as soon as reasonably practicable thereafter.

 

		(d)	Evidence that all existing Security which is not Permitted Security will be released on the Closing
Date, subject to any local law formalities which cannot be completed on or prior to the Closing Date but shall be completed as
soon as reasonably practicable thereafter.

 

		(e)	Evidence that all existing Financial Indebtedness (including the Existing Debt) of the Target Group
which is not Permitted Financial Indebtedness will be refinanced or discharged on the Closing Date.

 

		(f)	Evidence that any process agent appointed in respect of a Finance Document has accepted its appointment.

 

		(g)	Confirmation that the fees, costs and expenses then due and payable under the Senior Facilities
Agreement and any Fee Letter have been paid or will be paid on or by the first Utilisation Date (which such fees shall be deducted
from first Utilisation in accordance with the Utilisation Request delivered in accordance with paragraph 2 above).

 

		(h)	A copy of the Funds Flow Statement, provided that this condition precedent shall be satisfied if
the final form of the Funds Flow Statement is not different in any manner which is materially adverse to the interests of the Lenders
(taken as a whole) compared to the most recent draft of the Funds Flow Statement that was signed-off by the Arrangers, except for
any changes or additions approved by the Arrangers.

 

		(i)	Copies of any structural inter-company loans resulting from the on-lending of Facility B proceeds
by Gaming Acquisitions Limited to Inspired Gaming (UK) Limited.

 

		(j)	The Approved List.

 

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SCHEDULE 4

 

ICA
Principles

 

	Ranking: 	
        1.   
Senior Facilities, Agent Liabilities and Hedging Liabilities to rank pari passu between themselves; in priority
to

         

        2.    
        Second Lien Liabilities; in priority to

         

        3.    
        Subordinated Secured Liabilities; in priority to

         

        4.    
        Subordinated Unsecured Liabilities; in priority to

         

        5.         intra-group liabilities of a member of the Group (without preference between them) and, in each case, subject to the application
        of enforcement proceeds.

          

	No Hedging Cap:	
        There shall be no cap
        with respect to:

         

        (a)   any interest rate and foreign exchange hedging entered into with respect to the Senior Facilities; and

          

        (b)  
        all other hedging entered into in the ordinary course of trade and not for speculative reasons,

          

        which shall, in the case
        of hedge providers which accede to the ICA in that capacity, be permitted to rank pari passu with, and share in the Transaction
        Security on the same basis as, the Senior Facilities.

        

 

	Application of Proceeds:	
        All amounts received
        by the Security Agent from enforcement of the Transaction Security will be applied in the following order: (a) first, sums
        owing to the Security Agent, any Receiver or Delegate; (b) second, security enforcement costs and expenses incurred Senior
        Lenders and hedge counterparties in connection with the Senior Facilities and the Hedging Liabilities respectively; (c) third,
        the Senior Facilities and Hedging Liabilities, pro rata; (d) fourth, to any person to whom payment is required to
        be made by law; and (e) fifth, debtors.

         

	Majority Senior Creditors:	662/3% of the Senior Facilities and Hedging Liabilities.
	 	 
	Investor Liabilities:	No shareholder of Inspired Entertainment Inc. shall be party to the Intercreditor Agreement in any capacity. 
	 	 
	Intra-Group Liabilities:	
        Intra-Group Liabilities
        to be fully subordinated to the Senior Facilities in all respects. Prior to a Declared Default, members of the Group may make payments
        with respect to Intra-Group Liabilities from time to time when due. Following the occurrence of a Declared Default, such payments
        may only be made to the extent made to facilitate payment of the Senior Facilities or with the consent of the Majority Senior Creditors.

         

        Members of the Group
        which are intra-Group creditors (above a threshold to be agreed) shall be required to accede to the Intercreditor Agreement as
        an intra-group lender.

        

 

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	Incremental/ Side Car Debt:	
        The Intercreditor Agreement
        shall be pre-wired with respect to the incurrence of any pari passu or junior secured or unsecured incremental and side car debt
        permitted to be incurred under the terms of the Senior Facilities Agreement (the “Additional Debt”) such that
        the Additional Debt can be incurred, and the relevant creditors (the “Additional Debt Creditors”) accede to
        the Intercreditor Agreement and share in the Transaction Security in accordance with their ranking, without the need to effect
        any amendments with respect to the Intercreditor Agreement.

          

        No consent, sanction,
        authority or further confirmation from any creditor or other secured party or finance party shall be required with respect to the
        establishment of the Additional Debt or the accession of the Additional Debt Creditors to the Intercreditor Agreement.

          

        Each creditor and other
        secured party or finance party, by signing the Intercreditor Agreement, shall expressly pre-authorise the Agent and the Security
        Agent to do all such things or acts and execute all documents as may be necessary or desirable in connection with the establishment
        of any Additional Debt and the accession to the Intercreditor Agreement of the Additional Debt Creditors, including without limitation
        in order to:

         

        (a)   maintain the effectiveness of the Transaction Security, guarantees, indemnities and other assurance against loss provided
to the Senior Creditors; and

         

        (b)          provide the Additional Debt Creditors with the benefit of security, guarantees, indemnities and other assurance against
        loss that corresponds to their ranking.

         

	Non-Distressed Disposals:	
        If a disposal of an asset
        is a Non-Distressed Disposal, the Security Agent shall be authorised (without any consent, sanction, authority or further confirmation
        from any creditor or other secured party or finance party):

         

        (a)          to release the Transaction Security and any other claim over that asset;

          

        (b)          where that asset consists of shares in the capital of a member of the Group or a third party chargor, to release the Transaction
        Security and any other claim over that member of the Group or third party chargor or its assets and (if any) the subsidiaries of
        that member of the Group or third party chargor and their respective assets; and

          

        (c)  
        to execute and deliver or enter into any release of the Transaction Security or any claim described in paragraphs (a) and
        (b) above and issue any certificates of non-crystallisation of any floating charge or any consent to dealing that may be reasonably
        requested by the Company.

          

        “Non
        Distressed Disposal” shall be defined to mean (i) a disposal of an asset by a member of the Group18;
        (ii) a disposal of an asset which is subject to the Transaction Security19;
        or (iii) any merger, reorganisation or transaction that is, in each case, not prohibited under the Senior Facilities Agreement20.

         

	Snooze You Loose:	Ten (10) Business Days

  

 

 

 

		18	Ability to release for intragroup transactions TBD.

		19	Ability to release for intragroup transactions TBD.

		20	Ability
to release for intragroup transactions TBD.

 

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SCHEDULE 5

 

Baskets,
Events of Default and Certain Other Items21

 

	#	 	Item	 	Agreed Position
	 	 	Debt Incurrence	 	 
	1.	 	Finance Leases (to include Sale and Leasebacks)	 	Greater of £10,000,000 and 16% of Consolidated Pro Forma EBITDA at any time.
	 	 	 	 	 
	2.	 	
        General debt basket (to include Receivables Financing / Factoring)

         
	 	Greater of £10,000,000 and 16% of Consolidated Pro Forma EBITDA at any time.
	 	 	Permitted Payments	 	 
	 	 	Management equity plans & repurchase of related shares	 	
        Deferred compensation indebtedness to employees, directors or
        consultants not exceeding the greater of £2,000,000 and 3.2 per cent of Consolidated Pro Forma EBITDA per Financial Year
        and the greater of £3,000,000 and 4.7 per cent of Consolidated Pro Forma EBITDA at any time.

         

	 	 	
        Repurchase of Subordinated Debt / other payments to shareholders
        which can be used for subordinated debt

         
	 	
        To be payable in line with ratio baskets for payment of dividends
        as set out in paragraph (b) of Section 5.36 under the heading “Certain Permitteds” in Part 5 (Other Terms) of
        this Term Sheet.

         

        No grower.

         

	 	 	Permitted Investments	 	 
	 	 	Loans to management and employees	 	
        Greater of £1,000,000 and 1.6% of Consolidated Pro Forma
        EBITDA at any time.

          

	 	 	Deferred consideration with respect to Permitted Disposals	 	
        25% of the total consideration received in respect of the relevant
        disposal (general loans basket may be used in addition).

         

        No grower.

         

	 	 	General Baskets	 	 
	 	 	
        ●       
        Loans

        ●       
        Guarantees

        ●       
        Security
	 	Greater of £10,000,000 and 16% of Consolidated Pro Forma at any time for each item specified.
	 	 	 	 	 
	 	 	
        Cross Default / Judgment Default / Compulsory acquisitions
        Events of Default de minimis amounts

         
	 	 
	 	 	Default de minimis amounts	 	
        £10,000,000 for each of the Events of Default specified.

         

        No grower.

         

	 	 	Other / Technical Thresholds	 	 
	 	 	Minimum  Facility B and Revolving Facility transfer amounts	 	
        £1,000,000.

         

        No grower.

         

	 	 	Revolving Facility minimum amount for utilisation	 	
        £200,000.

         

        No grower.

        

 

 

 

 

		21	Unless expressly otherwise indicated, all baskets, thresholds
and other numerical amounts included in this table shall be expressed as grower baskets in the Senior Facilities Agreement.

 

 

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