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uctt-ex42_370.htm

Exhibit 4.2

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES

EXCHANGE ACT OF 1934

 

The following summary of the terms of our capital stock is not meant to be complete and is qualified by reference to the relevant provisions of the Delaware General Corporation Law (the “DGCL”) and our amended and restated certificate of incorporation (our “certificate of incorporation”) and our amended and restated bylaws (our “bylaws”). We have summarized certain portions of the Certificate of Incorporation and Bylaws below. This information does not purport to be complete and is subject in all respects to the applicable provisions of our certificate of incorporation and bylaws, which are incorporated by reference herein.

Authorized Capital Stock

Our Certificate of Incorporation authorizes us to issue 90,000,000 shares of common stock, par value $0.001 per share, and 10,000,000 shares of preferred stock, par value $0.001 per share.

Common Stock

As of December 27, 2019, there were 39,881,505 shares of common stock outstanding and three stockholders of record. The holders of common stock are entitled to one vote per share on all matters to be voted upon by the stockholders. Subject to preferences that may be applicable to any outstanding preferred stock, the holders of common stock are entitled to receive ratably such dividends, if any, as may be declared from time to time by our board of directors out of funds legally available therefor. In the event of the liquidation, dissolution or winding up of Ultra Clean, the holders of common stock are entitled to share ratably in all assets remaining after payment of liabilities, subject to prior distribution rights of preferred stock, if any, then outstanding. The common stock has no preemptive or conversion rights or other subscription rights. There are no redemption or sinking fund provisions applicable to the common stock. All outstanding shares of common stock are fully paid and non-assessable.

Preferred Stock

Our board of directors is authorized, subject to any limitations imposed by law, without stockholder approval, from time to time to issue up to 10,000,000 shares of preferred stock in one or more series, each series to have rights and preferences, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences, as our board of directors may determine. The issuance of preferred stock, while providing desirable flexibility in connection with possible acquisitions and other corporate purposes, could have the effect of making it more difficult for a third party to acquire, or of discouraging a third party from attempting to acquire, a majority of our voting stock outstanding. We have no shares of preferred stock outstanding, and we have no present plans to issue any shares of preferred stock.

Certain Provisions of Our Certificate of Incorporation and Bylaws

Our Bylaws vest the power to call special meetings of stockholders in our chairman of the board and our board of directors. Stockholders are permitted under our Certificate of Incorporation to act by written consent in lieu of a meeting.

To be properly brought before an annual meeting of stockholders, any stockholder proposal or nomination for the board of directors must be delivered to our secretary not less than 90 days nor more than 120 days prior to the first anniversary of the prior year’s annual meeting; provided, however, that in the event that the date of the annual meeting is advanced more than 30 days prior to such anniversary date or delayed more than 70 days after such anniversary date, then to be timely such notice must be received by us no earlier than 120 days prior to such annual meeting and no later than the later of 70 days prior to the day of 

the meeting or the 10th day following the day on which public announcement of the date of the meeting was first made by us. Such notice must contain information specified in the Bylaws as to the director nominee or proposal of other business, information about the stockholder making the nomination or proposal and the beneficial owner, if any, on behalf of whom the nomination or proposal is made, including name and address, class and number of shares owned, and representations regarding the intention to make such a proposal or nomination and to solicit proxies in support of it.

Certain Anti-Takeover Effects of Delaware Law

We are subject to Section 203 of the Delaware General Corporation Law (“Section 203”). In general, Section 203 prohibits a publicly held Delaware corporation from engaging in various “business combination” transactions with any interested stockholder for a period of three years following the date of the transactions in which the person became an interested stockholder, unless:

	
 
	
•
	
the transaction is approved by the board of directors prior to the date the interested stockholder obtained such status;

	
 
	
•
	
upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced; or

	
 
	
•
	
on or subsequent to such date, the business combination is approved by the board and authorized at an annual or special meeting of stockholders by the affirmative vote of at least 66 2/3% of the outstanding voting stock which is not owned by the interested stockholder.

 

A “business combination” is defined to include mergers, asset sales, and other transactions resulting in financial benefit to a stockholder. In general, an “interested stockholder” is a person who, together with affiliates and associates, owns (or within three years, did own) 15% or more of a corporation’s voting stock.

 

The statute could prohibit or delay mergers or other takeover or change in control attempts with respect to us and, accordingly, may discourage attempts to acquire us even though such a transaction may offer our stockholders the opportunity to sell their stock at a price above the prevailing market price.

Listing

Our common stock is listed on the NASDAQ Global Select Market under the symbol “UCTT.”

Transfer Agent and Registrar

The transfer agent and registrar for the shares of our common stock is Equiniti Trust Company.

 

2farmerbros2020amendmentn

                                                                EXECUTION VERSION                                           AMENDMENT NO. 2                                   Dated as of March 5, 2020                                             to                       AMENDED AND RESTATED CREDIT AGREEMENT                                  Dated as of November 6, 2018                THIS AMENDMENT NO. 2 (this “Amendment”) is made as  of March 5, 2020 by and  among Farmer Bros. Co., a Delaware corporation (the “Borrower”), the financial institutions listed on the  signature pages hereof and JPMorgan Chase Bank, N.A., as Administrative Agent (the “Administrative  Agent’), under that certain Amended and Restated Credit Agreement dated as of November 6, 2018 by  and among the Borrower, the other Loan Parties from time to time party thereto, the Lenders and the  Administrative Agent (as further amended, restated, supplemented or otherwise modified from time to  time, the “Credit Agreement”).  Capitalized terms used herein and not otherwise defined herein shall have  the respective meanings given to them in the Credit Agreement.                WHEREAS, the Borrower, the Loan Parties party thereto and the Administrative Agent  are party to that certain Amended and Restated Pledge and Security Agreement, dated as of November 6,  2018 (the “Security Agreement”);                WHEREAS,  the  Borrower  has  requested  that  the  requisite  Lenders  and  the  Administrative  Agent  agree  to  make  certain  amendments  to  the  Credit  Agreement  and  the  Security  Agreement; and                WHEREAS, the Borrower, the Lenders party hereto and the Administrative Agent have  so agreed on the terms and conditions set forth herein;                NOW,  THEREFORE,  in  consideration  of  the  premises  set  forth  above,  the  terms  and  conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of  which are hereby acknowledged, the Borrower, the Lenders party hereto and the Administrative Agent  hereby agree to enter into this Amendment.                1.     Amendments to the Credit Agreement.  Effective as of the date of satisfaction of  the conditions precedent set forth in Section 3 below, the parties hereto agree that the Credit Agreement  and Schedule 2.01A thereto are hereby amended to delete the stricken text (indicated in the same manner  as the following example: stricken  text )  and to add the double-underlined text (indicated in  the  same  manner as the following example:  double-underlined text ) as set forth on Exhibit A hereto.                2.     Amendment to the Security Agreement.  Effective as of the date of satisfaction of  the  conditions  precedent  set  forth  in  Section  3  below,  the  parties  hereto  agree  that  clause  (e)  of  the  definition of “Excluded Collateral” set forth in Section 1.3 of the Security Agreement is hereby amended  to  replace  the  phrase  “any  interest  in  any  real  property  held  by  any  Grantor”  with  “[intentionally  omitted]”.                3.     Conditions of Effectiveness.  The effectiveness of this Amendment is subject to  the satisfaction of the following conditions precedent: 

 

                                                                                                       (a)    The Administrative Agent shall have received counterparts of this Amendment  duly executed by the Borrower, the Required Lenders and the Administrative Agent.                (b)    The  Administrative  Agent  shall  have  received  (i) for  the  account  of  each  applicable Lender party hereto that delivers its executed signature page to this Amendment by no later  than the date and time specified by the Administrative Agent, an amendment fee pursuant to that certain  Amendment No. 2 Fee Letter, dated as of the date hereof, between the Borrower and the Administrative  Agent,  in  an  amount  disclosed  therein,  (ii) payment  of  its  reasonable  and  documented  out-of-pocket  expenses  (including  reasonable  and  documented  out-of-pocket  fees  and  expenses  of  counsel  for  the  Administrative Agent) in connection with this Amendment, and (iii) all other fees then due and payable to  the Administrative Agent in connection with this Amendment, in each case that have been invoiced at  least two Business Days prior to the date hereof (except as otherwise reasonably agreed by the Borrower).                4.     Representations  and  Warranties  of  the  Borrower.   The  Borrower  hereby  represents and warrants as follows:                (a)    This  Amendment  and  the  Credit  Agreement  (as  amended  hereby)  constitute  legal, valid and binding obligations of the Borrower, enforceable in accordance with their terms, subject  to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights  generally and subject to general principles of equity, regardless of whether considered in a proceeding in  equity or at law.                (b)    As of the date hereof and after giving effect to the terms of this Amendment, (i)  no Default or Event of Default has occurred and is continuing and (ii) the representations and warranties  of the Loan Parties set forth in the Loan Documents are true and correct in all material respects with the  same  effect  as  though  made  on  and  as  of  the  date  hereof  (it  being  understood  and  agreed  that  any  representation  or  warranty  which  by  its  terms  is  made as of a specified date is true and correct in all  material respects only as of such specified date, and that any representation or warranty which is subject  to any materiality qualifier shall be required to be true and correct in all respects).                5.     Reference to and Effect on the Credit Agreement and the Security Agreement.                (a)    Upon  the  effectiveness  hereof,  each  reference  to  the  Credit  Agreement  or  Security Agreement in the Credit Agreement or any other Loan Document shall mean and be a reference  to the Credit Agreement or the Security Agreement, each as amended hereby, as applicable.                (b)    The  Credit  Agreement,  the  Security  Agreement  and  all  other  documents,  instruments and agreements executed and/or delivered in connection therewith shall remain in full force  and effect and are hereby ratified and confirmed.                (c)    The execution, delivery and effectiveness of this Amendment shall not operate as  a waiver of any right, power or remedy of the Administrative  Agent  or  the  Lenders,  nor  constitute  a  waiver of any provision of the Credit Agreement or the  Security  Agreement  or  any  other  documents,  instruments and agreements executed and/or delivered in connection therewith.                (d)    This Amendment is a Loan Document.                 6.     Governing Law.  This Amendment shall be construed in  accordance  with  and  governed by the law of the State of New York.                7.     Headings.   Section  headings  in  this  Amendment  are  included  herein  for                                                                                           2 

 

                                                                                          convenience of reference only and shall not constitute a part of this Amendment for any other purpose.                8.     Counterparts.  This Amendment may be executed by one or more of the parties  hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed  to constitute one and the same instrument.  Signatures delivered by facsimile or other electronic means  shall have the same force and effect as manual signatures delivered in person.                                    [Signature Pages Follow]                                                                                            3 

 

 

 

 

                                                                                                  PNC BANK, NATIONAL ASSOCIATION,                          as a Lender                                                                              By:_______________________________________                          Name:                          Title:                 Signature Page to Amendment No. 2 to  Amended and Restated Credit Agreement dated as of November 6, 2018                       Farmer Bros. Co.  

 

 

 

 

                                                 Exhibit A   Amendments to Credit Agreement                            [Attached]                                   

 

                                                                            EXHIBIT A                                                                     CONFORMED COPY                                    Incorporating Amendment No. 1, dated September 6, 2019 ; and                                                       Amendment No. 2, dated March 5, 2020                       AMENDED AND RESTATED CREDIT AGREEMENT                                         dated as of                                      November 6, 2018                                          among                                    FARMER BROS. CO.,                              The other Loan Parties Party Hereto,                                   The Lenders Party Hereto                  CITIBANK, N.A. and PNC BANK, NATIONAL ASSOCIATION,                                 as Co-Syndication Agents,                      BANK OF AMERICA, N.A., REGIONS BANK, and                                    SUNTRUST BANK,                                as Co-Documentation Agents                                            and                              JPMORGAN CHASE BANK, N.A.,                                  as Administrative Agent                               ___________________________                              JPMORGAN CHASE BANK, N.A.,                          as Sole Bookrunner and Sole Lead Arranger   253754568v.2253754568v.10

 

                                    TABLE OF CONTENTS                                                                                     Page  ARTICLE I DEFINITIONS                                                                1        SECTION 1.01    Defined Terms                                                 1        SECTION 1.02    Classification of Loans and Borrowings                     35 31        SECTION 1.03    Terms Generally                                            35 31        SECTION 1.04    Accounting Terms; GAAP                                     36 32        SECTION 1.05    Status of Obligations                                      36 32        SECTION 1.06    Pro Forma Basis                                            37 32        SECTION 1.07    Limited Condition Acquisitions                             37 33        SECTION 1.08    Interest Rates; LIBOR Notification                         38 33        SECTION 1.09    Amendment and Restatement of the Existing Credit Agreement 38 34 ARTICLE II THE CREDITS                                                            39 34        SECTION 2.01    Revolving Commitments                                      39 34        SECTION 2.02    Loans and Borrowings                                       39 34        SECTION 2.03    Requests for Revolving Borrowings                          40 35        SECTION 2.04    Intentionally Omitted                                      40 35        SECTION 2.05    Swingline Loans                                            40 35        SECTION 2.06    Letters of Credit                                          42 37        SECTION 2.07    Funding of Borrowings                                      47 41        SECTION 2.08    Interest Elections                                         48 42        SECTION 2.09    Termination and Reduction of Revolving Commitments ; Increase in                        Revolving Commitments; Incremental Term Loans  49            43        SECTION 2.10    Repayment of Loans; Evidence of Debt                       52 44        SECTION 2.11    Prepayment of Loans                                        52 45        SECTION 2.12    Fees                                                       53 45        SECTION 2.13    Interest                                                   54 46        SECTION 2.14    Alternate Rate of Interest                                 55 47        SECTION 2.15    Increased Costs                                            56 48        SECTION 2.16    Break Funding Payments                                     58 49        SECTION 2.17    Withholding of Taxes; Gross-Up                             58 50        SECTION 2.18    Payments Generally; Allocation of Proceeds; Sharing of Set-offs 62 53        SECTION 2.19    Mitigation Obligations; Replacement of Lenders             65 55        SECTION 2.20    Defaulting Lenders                                         66 56        SECTION 2.21    Returned Payments                                          68 58        SECTION 2.22    Intentionally Omitted                                      69 58        SECTION 2.23    Extension of Maturity Date; Removal of Lenders  69 [Reserved] 58        SECTION 2.24    Swap Agreement Obligations                                 71 58 ARTICLE III REPRESENTATIONS AND WARRANTIES.                                       71 59        SECTION 3.01    Organization; Powers                                       71 59        SECTION 3.02    Authorization; Enforceability                              71 59        SECTION 3.03    Governmental Approvals; No Conflicts                       72 59        SECTION 3.04    Financial Condition; No Material Adverse Change            72 59        SECTION 3.05    Properties                                                 72 59        SECTION 3.06    Litigation and Environmental Matters                       72 60        SECTION 3.07    Compliance with Laws and Agreements; No Default            73 60                                            -i-

 

       SECTION 3.08    Investment Company Status                                  73 60        SECTION 3.09    Taxes                                                      73 60        SECTION 3.10    ERISA; Plan Assets                                         73 60        SECTION 3.11    Disclosure                                                 73 61        SECTION 3.12    Intentionally Omitted                                      74 61        SECTION 3.13    Solvency                                                   74 61        SECTION 3.14    Insurance                                                  74 61        SECTION 3.15    Capitalization and Subsidiaries                            74 61        SECTION 3.16    Security Interest in Collateral                            75 62        SECTION 3.17    Employment Matters                                         75 62        SECTION 3.18    Reserve Regulations                                        75 62        SECTION 3.19    Use of Proceeds                                            75 62        SECTION 3.20    Burdensome Restrictions                                    75 62        SECTION 3.21    Anti-Corruption Laws and Sanctions                         75 62        SECTION 3.22    EEA Financial Institutions                                 76 63 ARTICLE IV CONDITIONS.                                                            76 63        SECTION 4.01    Effective Date                                             76 63        SECTION 4.02    Each Credit Event                                          79 65 ARTICLE V AFFIRMATIVE COVENANTS.                                                  80 66        SECTION 5.01    Financial Statements and Other Information                 80 66        SECTION 5.02    Notices of Material Events                                 82 68        SECTION 5.03    Existence; Conduct of Business                             82 68        SECTION 5.04    Payment of Obligations                                     82 68        SECTION 5.05    Maintenance of Properties                                  83 68        SECTION 5.06    Books and Records; Inspection Rights                       83 69        SECTION 5.07    Compliance with Laws and Material Contractual Obligations  83 69        SECTION 5.08    Use of Proceeds                                            83 69        SECTION 5.09    Accuracy of Information                                    84 69        SECTION 5.10    Insurance                                                  84 70        SECTION 5.11    Additional Collateral; Further Assurances                  84 70        SECTION 5.12    Post-Closing Covenants                                     85 71 ARTICLE VI NEGATIVE COVENANTS.                                                    86 72        SECTION 6.01    Indebtedness                                               86 72        SECTION 6.02    Liens                                                      88 74        SECTION 6.03    Fundamental Changes                                        90 75        SECTION 6.04    Investments, Loans, Advances, Guarantees and Acquisitions  91 76        SECTION 6.05    Asset Sales                                                93 78        SECTION 6.06    Sale and Leaseback Transactions                            95 79        SECTION 6.07    Swap Agreements                                            95 79        SECTION 6.08    Restricted Payments; Certain Payments of Indebtedness      95 80        SECTION 6.09    Transactions with Affiliates                               96 81        SECTION 6.10    Restrictive Agreements                                     96 81        SECTION 6.11    Amendment of Material Documents                            97 81        SECTION 6.12    Financial Covenants                                        97 81        SECTION 6.13    Farmer Trademark                                           98 83 ARTICLE VII EVENTS OF DEFAULT.                                                    98 83        SECTION 7.01    Events of Default                                          98 83                                            -ii-

 

       SECTION 7.02    Application of Payments                                   102 86 ARTICLE VIII THE ADMINISTRATIVE AGENT.                                           103 87        SECTION 8.01    Authorization and Action                                  103 87        SECTION 8.02    Administrative Agent’s Reliance, Indemnification, Etc.    106 89        SECTION 8.03    Intentionally Omitted                                     107 90        SECTION 8.04    The Administrative Agent Individually                     107 90        SECTION 8.05    Successor Administrative Agent                            107 91        SECTION 8.06    Acknowledgments of Lenders and Issuing Bank               108 92        SECTION 8.07    Collateral Matters                                        109 92        SECTION 8.08    Credit Bidding                                            110 93        SECTION 8.09    Flood Laws                                                111 94 ARTICLE IX MISCELLANEOUS.                                                        111 94        SECTION 9.01    Notices                                                   111 94        SECTION 9.02    Waivers; Amendments                                       114 96        SECTION 9.03    Expenses; Indemnity; Damage Waiver                        117 99        SECTION 9.04    Successors and Assigns                                   120 101        SECTION 9.05    Survival                                                 124 104        SECTION 9.06    Counterparts; Integration; Effectiveness; Electronic Execution 124 104        SECTION 9.07    Severability                                             125 105        SECTION 9.08    Right of Setoff                                          125 105        SECTION 9.09    Governing Law; Jurisdiction; Consent to Service of Process 125 106        SECTION 9.10    Headings                                                 126 107        SECTION 9.11    Confidentiality                                          126 107        SECTION 9.12    Several Obligations; Nonreliance; Violation of Law       128 108        SECTION 9.13    USA PATRIOT Act                                          128 108        SECTION 9.14    Disclosure                                               128 108        SECTION 9.15    Appointment for Perfection                               128 108        SECTION 9.16    Interest Rate Limitation                                 128 108        SECTION 9.17    Authorization to Distribute Certain Materials to Public-Siders 129 108        SECTION 9.18    Acknowledgment and Consent to Bail-In of EEA Affected  Financial                        Institutions                                             129 109        SECTION 9.19    Certain ERISA Matters                                    129 109        SECTION 9.20    No Fiduciary Duty, etc.                                  131 110        SECTION 9.21    Prepayment of Loans under the Existing Credit Agreement  132 111        SECTION 9.22    Acknowledgment Regarding Any Supported QFCs                 111 ARTICLE X LOAN GUARANTY.                                                        132 112        SECTION 10.01   Guaranty                                                 132 112        SECTION 10.02   Guaranty of Payment                                      132 112        SECTION 10.03   No Discharge or Diminishment of Loan Guaranty            132 112        SECTION 10.04   Defenses Waived                                          133 113        SECTION 10.05   Rights of Subrogation                                    133 114        SECTION 10.06   Reinstatement; Stay of Acceleration                      134 114        SECTION 10.07   Information                                              134 114        SECTION 10.08   Release of Loan Guarantors                               134 114        SECTION 10.09   Taxes                                                    135 115        SECTION 10.10   Maximum Liability                                        135 115        SECTION 10.11   Contribution                                             135 115        SECTION 10.12   Liability Cumulative                                     136 116                                           -iii-

 

       SECTION 10.13   Keepwell                                                 136 116                                       SCHEDULES   : Schedule 1.01F – Farmer Trademark Schedule 1.01P – Permitted Holders Schedule 2.01A – Revolving Commitments Schedule 2.01B – Letter of Credit Commitments Schedule 2.06       – Existing Letters of Credit Schedule 3.06       – Disclosed Matters Schedule 3.15       – Capitalization and Subsidiaries Schedule 5.12       – Post-Closing Covenants Schedule 6.01       – Existing Indebtedness Schedule 6.02       – Existing Liens Schedule 6.04       – Existing Investments Schedule 6.10       – Existing Restrictions                                        EXHIBITS  :  Exhibit A        – Form of Assignment and Assumption Exhibit B        – Form of Compliance Certificate Exhibit C        – Joinder Agreement Exhibit D    – Form of Increasing Lender Supplement [Reserved] Exhibit E    – Form of Augmenting Lender Supplement [Reserved] Exhibit F-1  – Form of U.S. Tax Certificate (Foreign Lenders That Are Not Partnerships) Exhibit F-2  – Form of U.S. Tax Certificate (Foreign Participants That Are Not Partnerships) Exhibit F-3  – Form of U.S. Tax Certificate (Foreign Participants That Are Partnerships) Exhibit F-4  – Form of U.S. Tax Certificate (Foreign Lenders That Are Partnerships) Exhibit G-1  – Form of Borrowing Request Exhibit G-2  – Form of Interest Election Request                                             -iv-

 

       “Account Debtor ” means any Person obligated on an Account.         “Acquisition ” means any transaction, or any series of related transactions, consummated on or after the Effective Date, by which any Loan Party or any Subsidiary (a) acquires any going business or all or substantially all of the assets of any Person, whether through purchase of assets, merger or otherwise or (b)  directly  or  indirectly  acquires  (in  one  transaction  or  as  the  most  recent  transaction  in  a  series of transactions)  at  least  a  majority  (in  number  of  votes)  of  the  Equity  Interests  of  a  Person  which  has ordinary voting power for the election of directors of a Person (other than Equity Interests having such power only by reason of the happening of a contingency).        “Adjusted  LIBO  Rate ” means, with respect to any Eurodollar Borrowing for any Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.         “Administrative   Agent ”  means  JPMorgan  Chase  Bank,  N.A.  (including  its  branches  and affiliates), in its capacity as administrative agent for the Lenders hereunder and its successors in such capacity.        “Administrative Questionnaire ” means an Administrative Questionnaire in a form supplied by the Administrative Agent.         “Affected  Financial  Institution”  means  (a)  any  EEA  Financial  Institution  or  (b)  any  UK  Financial Institution .         “Affiliate ” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the specified Person.        “Aggregate  Revolving  Exposure ” means, at any time, the aggregate Revolving Exposure of all the Lenders at such time.        “Agreement   Value ”  means,  for  each  Swap  Agreement,  on  any  date  of  determination,  the maximum  aggregate  amount  (giving  effect  to  any  netting  agreements)  that  the  Borrower  or  any Subsidiary would be required to pay if such Swap Agreement were terminated on such date.         “ALTA” means the American Land Title Association.         “Alternate  Base  Rate ” means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the NYFRB Rate in effect on such day plus 1⁄2 of 1% and (c) the Adjusted LIBO Rate for a one month Interest Period in dollars on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1%, provided  that for the purpose of this definition, the Adjusted LIBO Rate for any day shall be based on the LIBO Screen Rate (or if the LIBO Screen Rate is not  available  for  such  one  month  Interest  Period,  the  Interpolated  Rate)  at  approximately  11:00 a.m. London time on such day.  Any change in the Alternate Base Rate due to a change in the Prime Rate, the NYFRB Rate or the Adjusted LIBO Rate shall be effective from and including the effective date of such change in the Prime Rate, the NYFRB Rate or the Adjusted LIBO Rate, respectively.  If the Alternate Base Rate is being used as an alternate rate of interest pursuant to Section 2.14 hereof, then the Alternate Base Rate shall be the greater of clauses (a) and (b) above and shall be determined without reference to clause (c) above.  For the avoidance of doubt, if the Alternate Base Rate as determined pursuant to the                                             -2-

 

foregoing  would  be  less  than  1.00%,  such  rate  shall  be  deemed  to  be  1.00%  for  purposes  of  this Agreement.         “Anti-Corruption  Laws ” means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or any of its Subsidiaries from time to time concerning or relating to bribery or corruption.        “APA ” has the meaning assigned to it in the definition of “Specified Acquisition”.         “Applicable Parties ” has the meaning assigned to it in Section 9.01(d)(iii).         “Applicable   Percentage ”  means,  with  respect  to  any  Lender,  the  percentage  of  the  aggregate Revolving  Commitments  represented  by  such  Lender’s Revolving  Commitment;  provided   that,  in  the case  of  Section 2.20  when  a  Defaulting  Lender  shall  exist,  “Applicable  Percentage”  shall  mean  the percentage of the aggregate Revolving Commitments (disregarding any Defaulting Lender’s Revolving Commitment)  represented  by such Lender’s Revolving Commitment.   If  the  Revolving  Commitments have terminated or expired, the Applicable Percentages shall be determined based upon the Revolving Commitments most recently in effect, giving effect to any assignments and to any Lender’s status as a Defaulting Lender at the time of determination.        “Applicable  Rate ” means, for any day, with respect to any Eurodollar Loan or any ABR Loan or with respect to the commitment fees payable hereunder, as the case may be, the applicable rate per annum set forth below under the caption “Eurodollar Spread”, “ABR Spread” or “Commitment Fee Rate”, as the case may be, based upon the Total Net Leverage Ratio applicable on such date:                           Total Net     Commitment     Eurodollar      ABR                       Leverage Ratio:    Fee Rate      Spread        Spread          Category 1 :   < 1.50 to 1.00                                           0.20%       1.25 1.50 %   0.25 0.50 %         Category 2 :  > 1.50 to 1.00 but                                           0.25%       1.50 1.75 %   0.50 0.75 %                        < 2.00 to 1.00         Category 3 :  > 2.00 to 1.00 but                                           0.30%      1.625 2.00 %  0.625 1.00 %                        < 2.50 to 1.00         Category 4 :  > 2.50 to 1.00 but                                           0.35%       1.75 2.25 %   0.75 1.25 %                        < 3.00 to 1.00         Category 5 :  > 3.00 to 1.00  but                                           0.40%      1.875 2.50 %  0.875 1.50 %                        < 3.50 to 1.00         Category 6:   > 3.50 to 1.00 but                                           0.45%        2.75%         1.75%                        < 4.00 to 1.00         Category 7:   > 4.00 to 1.00 but  0.50%        3.00%         2.00%                        < 4.50 to 1.00         Category 8:    > 4.50 to 1.00     0.50%        3.50%         2.50%         For purposes of the foregoing,         (i)  if at any time the Borrower fails to deliver the Financials on or before the date the applicable Financials  are  due  pursuant  to  Section 5.01,  Category 58  shall  be  deemed  applicable  for  the  period commencing three (3) Business Days after the required date of delivery and ending on the date which is                                             -3-

 

three  (3) Business  Days  after  the  Financials  are  actually  delivered,  after  which  the  Category  shall  be determined in accordance with the table above as applicable;         (ii)  adjustments, if any, to the Category then in effect shall be effective three (3) Business Days after the Administrative Agent has received the applicable Financials (it being understood and agreed that each change in Category shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change); and         (iii)   notwithstanding  the  foregoing,  Category 28  shall  be  deemed  to  be  applicable  until  the Administrative Agent’s receipt of the applicable Financials for the Borrower’s first  fiscal quarter ending after  the  Effective  Date  (unless  such  Financials  demonstrate  that  Category  3,  4  or  5  should  have  been applicable  during  such  period,  in  which  case  such  other  Category  shall  be  deemed  to  be  applicable  during such  period) March  31,  2021,  and adjustments to the Category then in effect shall thereafter be effected in accordance with the preceding paragraphs.         “Approved Electronic Platform ” has the meaning assigned to it in Section 9.01(d).         “Approved Fund ” has the meaning assigned to such term in Section 9.04.         “Arranger ” means JPMorgan Chase Bank, N.A. in its capacity as  sole  lead  arranger  and  sole bookrunner for the credit facility evidenced by this Agreement.        “Assignment  and  Assumption ” means an assignment and assumption entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 9.04), and accepted by the Administrative Agent, in the form of Exhibit A  or any other form (including electronic records generated by the use of an electronic platform) approved by the Administrative Agent.         “Augmenting Lender ” has the meaning assigned to such term in Section 2.09.          “Availability  Period ” means the period from and including the Effective Date to but excluding the earlier of the Maturity Date and the date of termination of all of the Revolving Commitments.         “Available   Revolving   Commitment ”  means,  at  any  time  with  respect  to  any  Lender,  the Revolving Commitment of such Lender then in effect minus the Revolving Exposure of such Lender at such time; it being understood and agreed that any Lender’s Swingline Exposure shall not be deemed to be a component of the Revolving Exposure for purposes of calculating the commitment fee under Section 2.12(a).         “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 Affected  Financial Institution.         “Bail-In  Legislation ” means , (a)  with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing  law ,  regulation,   rule   or   requirement   for  such  EEA  Member  Country  from  time  to  time which is described in the EU Bail-In Legislation Schedule . and  (b)  with  respect  to  the  United  Kingdom, Part   I   of   the   United   Kingdom   Banking   Act   2009   (as   amended   from   time   to   time)   and   any   other   law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment   firms   or   other   financial   institutions   or   their   affiliates  (other   than  through   liquidation, administration or other insolvency proceedings).                                             -4-

 

       “Change in Control ” means (a) the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the meaning of the Securities Exchange Act of 1934 and the rules  of  the  SEC  thereunder),  other  than  one  or  more  of  the  Permitted  Holders,  of  Equity  Interests representing more than the greater of (i) 35% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Company and (ii) the percentage thereof then held by the Permitted Holders; or (b)  the acquisition of direct or indirect Control of the Company by any Person or group (other than any of the Permitted Holders).         “Change  in  Law ” means the occurrence after the date of this Agreement (or, with respect to any Lender, such later date on which such Lender becomes a party to this Agreement) of any of the following: (a) the adoption of or taking effect of any law, rule, regulation or treaty; (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental  Authority;  or  (c)  compliance  by  any  Lender  or  the  Issuing  Bank  (or,  for  purposes  of Section 2.15(b), by any lending office of such Lender or by such Lender’s or the Issuing Bank’s holding company, if any) with any request, rules, guideline, requirement or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement; provided that  notwithstanding  anything  herein  to  the  contrary,  (x)  the  Dodd-Frank  Wall  Street  Reform  and Consumer  Protection  Act  and  all  requests,  rules,  guidelines,  requirements  or  directives  thereunder  or issued in connection therewith or in the implementation thereof, and (y) all requests, rules, guidelines, requirements or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted, issued or implemented.         “Charges ” has the meaning assigned to such term in Section 9.17.         “Class ”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans or Swingline Loans.         “Co-Documentation  Agent ” means each of Bank of America, N.A., Regions Bank and SunTrust Bank in its capacity as a co-documentation agent for the credit facility evidenced by this Agreement.         “Co-Syndication  Agent ” means each of Citibank, N.A. and PNC Bank, National Association in its capacity as a co-syndication agent for the credit facility evidenced by this Agreement.        “Code ” means the Internal Revenue Code of 1986, as amended from time to time.        “Collateral ” means any and all property of a Person in which a Lien is granted or purported to be granted pursuant to the Collateral Documents.  For the avoidance of doubt, the Collateral shall exclude the Excluded Collateral.        “Collateral   Documents ”  means,  collectively,  the  Security  Agreement ,  the   Mortgages   and Mortgage  Instruments  and any other agreements, instruments and documents executed in connection with this Agreement that are intended to create, perfect or evidence Liens to secure the Secured Obligations, including, without limitation, all other security agreements, pledge agreements, mortgages,  deeds  of  trust, loan  agreements,  notes,  guarantees,  subordination  agreements,  pledges,  powers  of  attorney,  consents, assignments,  contracts,  fee  letters,  notices,  leases,  financing  statements  and  all  other  written  matter whether heretofore, now or hereafter executed by any Loan Party and delivered to the Administrative Agent.                                             -7-

 

       “Co-Manufacturing  Agreement ” means that certain co-manufacturing agreement substantially in the  form  attached  as  Exhibit E to the APA, as the same  may  be  amended,  amended  and  restated  or modified  from  time  to  time;  provided ,  that,  no  amendment  or  modification  of  the  Co-Manufacturing Agreement (or to the form thereof attached to the APA) which is materially adverse to the interests of the Lenders shall be effected without the prior written consent of the Required Lenders.         “Commodity   Exchange   Act ” means the Commodity Exchange Act (7 U.S.C. § 1 et  seq.),  as amended from time to time, and any successor statute.         “Communications ” has the meaning assigned to such term in Section 9.01(d).         “Company ” means the Borrower.         “Compliance Certificate ” has the meaning assigned to such term in Section 5.01(d).         “Connection  Income  Taxes ” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.         “Consenting Lenders ” has the meaning specified in Section 2.23(c).         “Consolidated   Interest   Expense ”  means,  with  respect  to  any  Person  for  any  period,  without duplication, the sum of cash interest expense (including that attributable to Capital Lease Obligations), net of cash interest income, with respect to Indebtedness of such Person and its Subsidiaries for such period, including commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing and net cash costs under Swap Agreements (other than in connection with the early termination thereof), but excluding any non-cash interest expense in connection with or related to any pension plan of the Borrower and/or any of its Subsidiaries.        “Consolidated Total Assets ” means, as of the date of any determination thereof, total assets of the Borrower and its Subsidiaries calculated in accordance with GAAP on a consolidated basis and reflected on the balance sheet of the most recently delivered Financials as of such date (or, if prior to the date of the delivery of the first financial statements to be delivered pursuant to Section 5.01(a) or (b), the most recent financial statements referred to in Section 3.04(a)).         “Consolidated   Total   Indebtedness ”  means,  at  any  date,  the  sum,  without  duplication,  the aggregate funded principal amount of Indebtedness of the Borrower and its Subsidiaries consisting solely of (i) debt for borrowed money, (ii) debt obligations evidenced by promissory notes, bonds and similar instruments to the extent reflected as a long-term liability on the balance sheet of the Borrower, (iii) the principal portion of Capital Lease Obligations and purchase money debt and (iv) drawn and unreimbursed standby  letters of credit.  For the avoidance of doubt,  Consolidated  Total  Indebtedness  shall  exclude hedging obligations.         “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.         “Covered Party” has the meaning assigned to it in Section 9.22.         “Credit  Party ” means the Administrative Agent, the Issuing Bank, the Swingline Lender or any other Lender.                                             -8-

 

divestitures,  other  specified  transactions,  restructurings,  cost  savings  initiatives  and  other  initiatives occurring after the Effective Date  and  (xiii) solely  in  the  case  of  any  Test  Period  ending  on  or  prior  to September  30,  2020,  the amount of “run rate” cost savings, operating enhancements, operating expense reductions  and  synergies  (collectively,  the  “Cost   Savings ”)  related  to  Permitted  Acquisitions, restructurings, cost savings initiatives and other initiatives occurring after the Effective Date, in each case, projected by the Borrower in good faith to result from actions which have been taken or with respect to which substantial steps have been taken or are expected to be taken (in the good faith determination of the Borrower) within twelve (12) months after such transaction or initiative is consummated (which Cost Savings shall be calculated on a pro forma basis as though such Cost Savings had been realized on the first day of the applicable Test Period), net of the amount of actual benefits realized during such Test Period from such actions; provided  that a Financial Officer of the Borrower shall have certified to the Administrative Agent that, in the good faith determination of the Borrower, such Cost Savings are (x) reasonably identifiable and factually supportable and (y) reasonably anticipated to result from actions which have been taken or with respect to which substantial steps have been taken or are expected to be taken within twelve (12) months after such transaction or initiative is consummated; provided , further , that such Cost Savings added back to EBITDA pursuant to this clause (xiii) in for  any Test Period ending March  31,  2020,  June  30,  2020  or  September  30,  2020  shall not exceed an aggregate amount equal to the least of (x)  15% of EBITDA, calculated prior to giving effect to this clause (xiii), for such Test Period, (y) an  amount  equal  to  the  amount  of  Cost  Savings  actually  realized  by  the  Borrower  and  its  Subsidiaries during  such  Test  Period  and  (z)  (A)  for  the  Test  Period  ending  March  31,  2020,  $2,000,000,  (B)  for  the Test   Period   ending   June   30,   2020,   $600,000   and   (C)   for   the   Test   Period   ending   September   30,   2020, $50,000,  as  applicable  (it  being  understood  and  agreed  that  no  amounts  may  be  added  back  to  EBITDA pursuant  to  this  clause  (xiii)  for  any  Test  Period  ending  after  September  30,  2020);  minus  (b) without duplication and to the extent included in Net Income, (i) any cash payments made during such period in respect of non-cash charges described in clause (a)(v) taken in a prior period, (ii) any unusual or non- recurring cash gains and any non-cash items of income for such period and (iii) exchange, translation, or performance gains relating to any hedging transactions or foreign currency fluctuations, all calculated for the Company and its Subsidiaries on a consolidated basis in accordance with GAAP.         “ECP ” means an “eligible contract participant” as defined in Section 1(a)(18) of the Commodity Exchange  Act  or  any  regulations  promulgated  thereunder  and  the  applicable  rules  issued  by  the Commodity Futures Trading Commission and/or the SEC.        “EEA  Financial  Institution ” means (a) any institution 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 institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.        “EEA   Member   Country ”  means  any  of  the  member  states  of  the  European  Union,  Iceland, Liechtenstein and Norway.         “EEA  Resolution  Authority ” means any public administrative authority or any Person entrusted with  public  administrative  authority  of  any  EEA  Member  Country  (including  any  delegee)  having responsibility for the resolution of any EEA Financial Institution.         “Effective  Date ” means the date on which the conditions specified in Section 4.01 are satisfied (or waived in accordance with Section 9.02).                                            -11-

 

such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guarantee or security interest is or becomes illegal.         “Excluded Taxes ” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient:  (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes; (b) in the case of a Lender, U.S. Federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan, Letter of Credit or Revolving Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan, Letter of Credit or Revolving Commitment (other than pursuant to an assignment request by the Borrower under Section 2.19(b)) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.17, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender acquired the applicable interest in a Loan, Letter of Credit or Revolving Commitment or to such Lender immediately before it changed its lending office; (c) Taxes attributable to such Recipient’s failure to comply with Section 2.17(f); and (d) any Taxes imposed under FATCA.         “Existing Credit Agreement ” has the meaning assigned to such term in the recitals hereto.         “Existing Letters of Credit ” means the Letters of Credit heretofore issued pursuant to the Existing Credit Agreement and described on Schedule 2.06.         “Extended Maturity Date ” has the meaning specified in Section 2.23(c).         “Farmer   Trademark ”  means,  collectively,  the  trademarks  owned  by  the Company  set  forth  on Schedule 1.01F.         “FATCA ” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted  pursuant  to  any  intergovernmental  agreement,  treaty  or  convention  among  Governmental Authorities and implementing such Sections of the Code.         “Federal  Funds  Effective  Rate ” means, for any day, the rate calculated by the NYFRB based on such  day’s  federal  funds  transactions  by  depositary  institutions,  as  determined  in  such  manner  as  the NYFRB shall set forth on its public website from time to time, and published on the next succeeding Business  Day  by  the  NYFRB  as  the  effective  federal funds  rate,  provided   that,  if  the  Federal  Funds Effective Rate as so determined would be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.         “Financial Covenants ” means the financial covenants set forth in Section 6.12.        “Financial   Officer ”  means  the  chief  financial  officer,  principal  accounting officer, treasurer or controller of the Borrower.                                            -14-

 

       “Financials ” means the annual or quarterly financial statements, and accompanying certificates and other documents, of the Borrower and its Subsidiaries required to be delivered pursuant to Section 5.01(a) or 5.01(b), as applicable.         “FIRREA” means the Financial Institutions Reform, Recovery and Enforcement Act of 1989.          “Flood Laws ” has the meaning assigned to such term in Section 8.09.         “Foreign   Lender ”  means  (a)  if  the  Borrower  is  a  U.S.  Person,  a  Lender,  with  respect  to  the Borrower, that is not a U.S. Person, and (b) if the Borrower is not a U.S. Person, a Lender, with respect to the Borrower, that is resident or organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes.        “Foreign Subsidiary ” means any Subsidiary which is not a Domestic Subsidiary.        “Funding Account ” has the meaning assigned to such term in Section 4.01(h).         “GAAP ” means generally accepted accounting principles in the U.S.        “Governmental  Authority ” means the government of the U.S., any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court,  central  bank  or  other  entity  exercising  executive,  legislative,  judicial,  taxing,  regulatory  or administrative powers or functions of or pertaining to government.         “Guarantee ” of or by any Person (the “guarantor ”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary  obligor ”) in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or  supply  funds  for  the  purchase  of)  any  security  for  the  payment  thereof,  (b) to  purchase  or  lease property,  securities  or  services  for  the  purpose  of  assuring  the  owner  of  such  Indebtedness  or  other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation; provided , that the term Guarantee shall not include  (i)  warranties  or  indemnities  made  in  trade  contracts,  asset  sale  agreements,  acquisition agreements, commitment letters, engagement letters and brokerage and deposit agreements in the ordinary course of business and not otherwise prohibited hereunder, and warranties and indemnities to lenders in any documents evidencing Indebtedness permitted pursuant to Section 6.01 with respect to the guarantor, (ii) any indemnities made in connection with liability of a Person’s directors, officers and employees in their capacities as such as permitted by applicable law so long as the same is in the ordinary course of business and consistent with such Person’s past practices, (iii) any contingent liability arising from the endorsement  of  negotiable  or  other  instruments  for deposit  or  collection  in  the  ordinary  course  of business, and (iv) any continuing liability of the Company or its Subsidiaries as a lessee under a real property or equipment lease after such lease has been assigned or subleased by such Person.        “Guaranteed   Obligations ”  means  (i) with  respect  to  the  Borrower,  the  Specified  Ancillary Obligations and (ii) with respect to any Subsidiary Guarantor, the Secured Obligations, and, in each case, all  costs  and  expenses  including,  without  limitation,  all  court  costs  and  reasonable  attorneys’  and paralegals’  fees  (including  allocated  costs  of  in-house  counsel  and  paralegals)  and  expenses  paid  or incurred by the Administrative Agent, the Issuing Bank and the Lenders in endeavoring to collect all or                                           -15-

 

any part of the Secured Obligations from, or in prosecuting any action against, the Borrower, any Loan Guarantor or any other guarantor of all or any part of the Secured Obligations; provided  that, in each case, the definition of “Guaranteed Obligations” shall not create any guarantee by any Loan Guarantor of (or grant  of  security  interest  by  any  Loan  Guarantor  to  support,  as  applicable)  any  Excluded  Swap Obligations of such Loan Guarantor for purposes of determining any obligations of any Loan Guarantor.        “Hazardous  Materials ” means:  (a) any substance, material, or waste that is included within the definitions  of  “hazardous  substances,”  “hazardous  materials,”  “hazardous  waste,”  “toxic  substances,” “toxic  materials,”  “toxic  waste,”  or  words  of  similar  import  in  any  Environmental  Law;  (b)  those substances  listed  as  hazardous  substances  by  the  United  States  Department  of  Transportation  (or  any successor  agency)  (49  C.F.R.  172.101  and  amendments  thereto)  or  by  the  Environmental  Protection Agency (or any successor agency) (40 C.F.R. Part 302 and amendments thereto); and (c) any substance, material, or waste that is petroleum, petroleum-related, or a petroleum by-product, asbestos or asbestos- containing material, polychlorinated biphenyls, flammable, explosive, radioactive, freon gas, radon, or a pesticide, herbicide, or any other agricultural chemical .         “Impacted   Interest   Period ”  has  the  meaning  assigned  to  such  term  in  the  definition  of  “LIBO Rate”.         “Increasing Lender ” has the meaning assigned to such term in Section 2.09.         “Incremental Term Loan ” has the meaning assigned to such term in Section 2.09.         “Incremental Term Loan Amendment ” has the meaning assigned to such term in Section 2.09.         “Incremental  Term  Loan  Maturity  Date ” means  the  final  maturity  date  of  any  Incremental  Term Loan,  as  set  forth  in  the  applicable  Incremental  Term  Loan  Amendment  (as  such  date  may  be  extended pursuant to Section 2.23).          “Indebtedness ” of any Person means, without duplication, (a) all obligations of such Person for borrowed  money,  (b) all  obligations  of  such  Person evidenced  by  bonds,  debentures,  notes  or  similar instruments, (c) all obligations of such Person upon which interest charges are customarily paid, (d) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by such Person, (e) all obligations of such Person in respect of the deferred purchase price of property  or  services,  (f) all  Indebtedness  of  others  secured  by  (or  for  which  the  holder  of  such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, provided, in the case of any such obligations that are non-recourse to such Person, that the amount of obligations counted as Indebtedness shall be no greater than the fair market value of the assets subject to such Lien, (g) obligations under any Earn-Out that is due and payable, (h) all Capital Lease Obligations of such Person, (i) all reimbursement obligations of such Person as an account party in respect of letters of credit, bankers’ acceptances and letters of guaranty (the amount of such obligations being equal at any time to the aggregate then undrawn and unexpired amount of such letters of credit, bankers’ acceptances or letters of guaranty plus the aggregate amount of drawings thereunder that have not been reimbursed), (j) net obligations  under  any  and  all  Swap  Agreements  valued  at  the  Agreement  Value  thereof  and  (k)  all Guarantees  by  such  Person  of  Indebtedness  described  in  the  foregoing  clauses  of  others;  provided , however , that the term “Indebtedness” shall not include (i) trade accounts or accounts payable, accrued expenses and liabilities incurred and customer deposits received in each instance, in the ordinary course of  business  and  not  constituting  indebtedness  for  borrowed  money  or  evidenced  by  notes  or  other instruments, (ii) payments owed by Buyer (or any of its affiliates), and any Guarantee thereof by the Company, pursuant to Sections 1.9 and 8.10 of the APA, Sections 2 and 6.14 of the Transition Services                                           -16-

 

Borrowing, thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.         “Interpolated  Rate ” means, at any time, for any Interest Period, the rate per annum (rounded to the same number of decimal places as the LIBO Screen Rate) determined by the Administrative Agent (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that results from interpolating on a linear basis between: (a) the LIBO Screen Rate (for the longest period for which the LIBO Screen Rate is available) that is shorter than the Impacted Interest Period; and (b) the LIBO Screen Rate for the shortest period (for which the LIBO Screen Rate is available) that exceeds the Impacted Interest Period, in each case, at such time.         “Inventory ” has the meaning assigned to such term in the Security Agreement.         “Investment ” has the meaning provided in Section 6.04.         “IRS ” means the United States Internal Revenue Service.         “Issuing  Bank ” means JPMorgan Chase Bank, N.A. and any other Lender that agrees to act as an Issuing Bank, each in its capacity as the issuer of Letters of Credit hereunder, and its successors in such capacity as provided in Section 2.06(i).  Any Issuing Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of such Issuing Bank, in which case the term “Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate. Each reference herein to the “Issuing Bank” in connection with a Letter of Credit or other matter shall be deemed to be a reference to the relevant Issuing Bank with respect thereto.        “Joinder Agreement ” means a Joinder Agreement in substantially the form of Exhibit C .         “LCA   Election ”  means  the Borrower’s election to treat a specified Permitted Acquisition as a Limited Condition Acquisition.        “LCA Test Date ” shall have the meaning set forth in Section 1.07.         “LC Collateral Account ” has the meaning assigned to such term in Section 2.06(j).         “LC Disbursement ” means any payment made by an Issuing Bank pursuant to a Letter of Credit.         “LC   Exposure ”  means,  at  any  time,  the  sum  of  (a) the  aggregate undrawn  amount  of  all outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements that have not yet been reimbursed by or on behalf of the Borrower at such time.  The LC Exposure of any Lender at any time shall be its Applicable Percentage of the aggregate LC Exposure at such time.         “Lenders ”  means  the  Persons  listed  on  Schedule  2.01A  and  any  other  Person  that  shall  have become a Lender hereunder pursuant to Section  2.09  or  an Assignment and Assumption, other than any such Person that ceases to be a Lender hereunder pursuant to an Assignment and Assumption.  Unless the context otherwise requires, the term “Lenders” includes the Swingline Lender and the Issuing Bank.         “Letter of Credit Agreement ” has the meaning assigned to such term in Section 2.06(b).         “Letter  of  Credit  Commitment ” means, with respect to each Issuing Bank, the commitment of such Issuing Bank to issue Letters of Credit hereunder.  The initial amount of each Issuing Bank’s Letter of  Credit  Commitment  is  set  forth  on  Schedule  2.01B,  or  if  an  Issuing  Bank  has  entered  into  an                                           -18-

 

       “Material  Real  Property”  means  any  fee  owned  real  property  having  a  fair  market  value  greater than $5,000,000.         “Maturity  Date ” means November 6, 2023 , as  may  be  extended  pursuant  to  Section  2.23  with respect  to  the  Consenting  Lenders  only,  or any earlier date on which the Revolving Commitments are reduced to zero or otherwise terminated pursuant to the terms hereof.        “Maximum Rate ” has the meaning assigned to such term in Section 9.17.         “MIRE  Event”  means,  at  any  time , to  the  extent  any  Mortgaged  Properties  exist  at  such  time,  any increase,   extension   or   renewal   of   any   of   the   Revolving   Commitments   or   Loans   (excluding   (i)   any continuation  or  conversion  of  any  Borrowing,  (ii)  the  making  of  any  Loan  after  the  Effective  Date  or  (iii) the issuance, renewal or extension of any Letter of Credit).         “Moody’s ” means Moody’s Investors Service, Inc.         “Mortgage” means each mortgage, deed of trust or other agreement which conveys or evidences a Lien  in  favor  of  the  Administrative  Agent,  for  the  benefit  of  the  Administrative  Agent  and  the  Secured Parties,   on   real   property   of   a   Loan   Party,  including   any  amendment,   restatement,   modification   or supplement thereto.         “Mortgage   Instruments”   means   such   title   reports,   ALTA   title   insurance   policies   (with endorsements),   evidence   of   zoning   compliance,   property   insurance,   flood   certifications   and   flood insurance  (and,  if  applicable  FEMA  form  acknowledgements  of  insurance),  opinions  of  counsel,  ALTA surveys,  appraisals,  environmental  assessments  and  reports,  mortgage  tax  affidavits  and  declarations  and other   similar   information   and   related   certifications   as   are   requested   by,   and   in   form   and   substance reasonably acceptable to, the Administrative Agent from time to time.         “Mortgaged Property” means any parcel of real property subject to a Mortgage.         “Multiemployer  Plan ” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA to which the Borrower or any ERISA Affiliate makes or is obligated to make contributions or with respect to which the Borrower or any ERISA Affiliate has incurred or could reasonably be expected to incur any liability with respect to a complete withdrawal or partial withdrawal therefrom (within the meaning of Sections 4203 or 4205 of ERISA, respectively).        “Net  Income ” means, for any period, the consolidated net income (or loss) of the Company and its Subsidiaries, determined on a consolidated basis in accordance with GAAP; provided  that there shall be excluded (a) the income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary or is merged into or consolidated with the Company or any of its Subsidiaries, (b) the income (or deficit) of any Person (other than a Subsidiary) in which the Company or any of its Subsidiaries has an ownership interest, except to the extent that any such income is actually received by the Company or such Subsidiary in the form of dividends or similar distributions and (c) the undistributed earnings of any Subsidiary (other than the Borrower or Loan Guarantor) to the extent that the declaration or payment of dividends or similar  distributions  by  such  Subsidiary  is  not  at the  time  permitted  by  the  terms  of  any  contractual obligation (other than under any Loan Document) or Requirement of Law applicable to such Subsidiary.         “Non-Consenting Lender ” has the meaning assigned to such term in Section 9.02(d).         “Non-Extending Lender ” has the meaning assigned to such term in Section 2.23.                                            -21-

 

time, and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate.         “Parent ” means, with respect to any Lender, any Person as to which such Lender is, directly or indirectly, a subsidiary.        “Participant ” has the meaning assigned to such term in Section 9.04(c).         “Participant Register ” has the meaning assigned to such term in Section 9.04(c).         “PBGC ” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions.         “Permitted Acquisition ” means any Acquisition by any Subsidiary or a Loan Party in a transaction that satisfies each of the following requirements:               (a)    such Acquisition is not a hostile acquisition;               (b)    the business acquired in connection with such Acquisition is (i) located in the U.S., (ii) organized under applicable U.S. and state laws, and (iii) not engaged, directly or indirectly, in any line of business other than the businesses in which the Loan Parties are permitted to be engaged on the  Effective  Date  and  any  business  activities  that  are  reasonably  similar,  related,  complementary, ancillary or incidental thereto;               (c)    both before and after giving effect (including giving effect on a pro forma basis) to such Acquisition and the Loans (if any) requested to be made in connection therewith, no Event of Default has occurred and is continuing or would result therefrom;               (d)    both before and after giving effect (including giving effect on a pro forma basis) to such Acquisition and the Loans (if any) requested to be made in connection therewith, the Borrower and the Subsidiaries are in compliance with the Financial Covenants then in effect for the most recently ended Test Period;               (e)    if  the  aggregate  consideration  paid  in  respect  of  such acquisition Acquisition exceeds $20,000,000, the Borrower shall have delivered to the Administrative Agent (i) a certificate of a Financial Officer or other executive officer of the Borrower certifying that the conditions set forth in this definition  of  “Permitted  Acquisition”  will  have  been  met  as  of  the  date  of  consummation  of  such Acquisition and (ii) solely to the extent available in connection with the relevant acquisition Acquisition and  not  in  breach  of  any  confidentiality  or  similar  restriction  in  the  applicable  acquisition documents, copies  of  the  relevant  acquisition  documents  and  all  business  and  financial  information related  to  such  Acquisition  reasonably  requested  by  the  Administrative  Agent  including  pro forma financial statements and statements of cash flow (unless waived by the Administrative Agent in its sole discretion);               (f)    in the case of a merger or consolidation involving (I) the Borrower, the Borrower is the surviving entity of such merger and/or consolidation and (II) any Loan Party, such Loan Party is the surviving entity of such merger and/or consolidation; and                                            -23-

 

             (g)    all actions required to be taken with respect to any  newly  acquired  or  formed Subsidiary of the Borrower or a Loan Party  or  any  other  newly  acquired  assets  of  the  Borrower  or  a  Loan Party , as applicable, required under Section 5.11 shall be taken by the timeframes specified therein .; and               (h)    for   any  Acquisition   consummated   prior   to   March   31,   2022,   the   aggregate consideration   paid   or   payable   in   respect   of   such   Acquisition,   when   taken   together   with   the   aggregate consideration  paid  in  respect  of  all  other  Permitted  Acquisitions  consummated  during  the  fiscal  year  in which  such  Acquisition  was  consummated,  does  not  exceed  $2,500,000  during  any  such  fiscal  year  of  the Borrower.         “Permitted Encumbrances ” means:               (a)    Liens imposed by law for Taxes that are not yet due or are being contested in compliance with Section 5.04 (excluding ERISA Liens for the avoidance of doubt);               (b)    carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, landlords’, customs  brokers,  custom  and  forwarding  agents  and  other  like  Liens  imposed  by  law,  arising  in  the ordinary course of business and securing obligations that are not overdue by more than thirty (30) days or are being contested in compliance with Section 5.04;               (c)    pledges and deposits made in the ordinary course of business in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations;               (d)    deposits  to  secure  the  performance  of  bids,  tenders,  trade  contracts,  leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case in the ordinary course of business;               (e)    judgment and other similar Liens in respect of judgments, orders for the payment of money or other court proceedings that do not constitute an Event of Default under Section 7.01(k);               (f)    (i) easements, zoning restrictions, licenses, rights-of-way, site plan agreements, development  agreements,  cross  easement  or  reciprocal  agreements,  and  other  non-monetary encumbrances on real property that do not materially detract from the value of the affected property or interfere with the ordinary conduct of business of the Borrower or any Subsidiary (taken as a whole) or the ordinary operation of such real property or (ii) title defects or irregularities with respect to any real property which are of a minor nature and which in the aggregate do not materially detract from the value of  the  affected  property  or  interfere  with  the  ordinary  conduct  of  business  of  the  Borrower  or  any Subsidiary or the ordinary operation of such real property;               (g)    Liens arising from precautionary UCC financing statement  filings  (or  similar filings under applicable law) regarding operating leases;               (h)    the interests of lessors or sublessors under operating  leases  and  non-exclusive licensors or sublicensors under license agreements;               (i)    Liens  or  rights  of  setoff  against  credit  balances  of  the  Company  or  any Subsidiary with credit card issuers or credit card processors to secure obligations of the Company or such Subsidiary, as the case may be, to any such credit card issuer or credit card processor incurred in the ordinary course of business as a result of fees and chargebacks;                                            -24-

 

       “Plan  Asset  Regulations ” means 29 CFR § 2510.3-101 et seq. , as modified by Section 3(42) of ERISA.         “Platform ”  means  Debt  Domain,  Intralinks,  Syndtrak  or  a  substantially  similar  electronic transmission system.          “Prime  Rate ” means the rate of interest last quoted by The Wall Street Journal as the “Prime Rate” in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined  by  the  Administrative  Agent)  or  any  similar  release  by  the  Board  (as  determined  by  the Administrative Agent). Each change in the Prime Rate shall be effective from and including the date such change is publicly announced or quoted as being effective.         “Project   Evolution ”  means  the  strategic  initiative,  business  optimization  and  restructuring  of Company’s business as identified to the Administrative Agent prior to the Effective Date.         “Projections ” has the meaning assigned to such term in Section 5.01( fe).         “PTE ” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.        “Public-Sider ” means a Lender or any representative of such Lender that does not want to receive material non-public information within the meaning of federal and state securities laws.         “Purchase   Price ”  means,  with  respect  to  any  Acquisition,  an  amount  equal  to  the  aggregate consideration, whether cash, property or securities (including the fair market value of any Equity Interests of the Company issued in connection with such Acquisition and including the maximum amount of Earn- Outs), paid or delivered by the Company or one of its Subsidiaries in connection with such Acquisition (whether paid at the closing thereof or payable thereafter and whether fixed or contingent), but excluding therefrom (a) any cash of the seller and its Affiliates used to fund any portion of such consideration and (b) any cash acquired in connection with such Acquisition.         “Qualified  ECP  Guarantor ” means, in respect of any Swap Obligation, each Loan Party that has total assets exceeding $10,000,000 at the time the relevant Loan Guaranty or grant of the relevant security interest becomes or would become effective with respect to such Swap Obligation or such other person as constitutes  an  “eligible  contract  participant”  under  the  Commodity  Exchange  Act  or  any  regulations promulgated thereunder and can cause another person to qualify as an “eligible contract participant” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.         “QFC Credit Support” has the meaning assigned to it in Section 9.22.         “Recipient ”  means,  as  applicable,  (a)  the  Administrative  Agent,  (b)  any  Lender  and  (c)  any Issuing Bank, or any combination thereof (as the context requires).         “Refinance Indebtedness ” has the meaning assigned to such term in Section 6.01(f).         “Register ” has the meaning assigned to such term in Section 9.04(b).                                            -26-

 

       “Regulation  D ” means Regulation D of the Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.         “Related  Parties ” means, with respect to any specified Person, such Person’s Affiliates and the respective directors, officers, partners, members, trustees, employees, agents, administrators, managers, representatives and advisors of such Person and such Person’s Affiliates.         “Release ”  means  any  releasing,  spilling,  leaking,  pumping, pouring,  emitting,  emptying, discharging, injecting, escaping, leaching, migrating, disposing or dumping of any Hazardous Material into the environment.         “Required   Lenders ”  means,  at  any  time,  Lenders  (other  than  Defaulting  Lenders)  having Revolving Exposures and unused Revolving Commitments representing more than 50% of the sum of the Aggregate Revolving Exposure and unused Revolving Commitments at such time; provided  that, as long as there are only two Lenders, Required Lenders shall  mean  both  Lenders;  provided ,  further   that,  for purposes of calculating Revolving Exposure in the determination of “Required Lenders”, the Swingline Exposure  of  any  Lender  shall  be  its  Applicable  Percentage  of  the  aggregate  principal  amount  of  all Swingline  Loans  outstanding  at  such  time  unless  such  Lender  has  not  funded  its  participations  in Swingline Loans within one Business Day of such Lender’s receipt of notice from the Administrative Agent pursuant to Section 2.05(c) (such amount, the “Swingline Unfunded Amount” of such Lender), in which case (i) the unfunded Revolving Commitment of such Lender shall be deemed to be reduced by such Swingline Unfunded Amount and (ii) the unfunded Revolving Commitment of the Swingline Lender shall be deemed to be increased by such Swingline Unfunded Amount.        “Requirement  of  Law ” means, with respect to any Person, (a) the charter, articles or certificate of organization or incorporation and bylaws or other organizational or governing documents of such Person and (b) any statute, law (including common law), treaty, rule, regulation, code, ordinance, order, decree, writ, judgment, injunction or determination of any arbitrator or court or other Governmental Authority (including Environmental Laws), in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.         “Resolution Authority” means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.         “Restricted   Payment ” means any dividend or other distribution (whether  in  cash,  securities  or other property) with respect to any Equity Interests in 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  Equity Interests in the Company or any Subsidiary or any option, warrant or other right to acquire any such Equity Interests in the Company or any Subsidiary.         “Revolving   Commitment ”  means,  with  respect  to  each  Lender,  the  amount  set  forth  on Schedule 2.01A  opposite  such  Lender’s  name,  or  in  the  Assignment  and  Assumption  or  other documentation or record (as such term is defined in Section 9-102(a)(70) of the UCC) as provided in Section 9.04(b)(ii)(C), pursuant to which such Lender shall have assumed its Revolving Commitment, as applicable,  and  giving  effect  to  (a) any  reduction in  such  amount  from  time  to  time  pursuant  to Section 2.09 and (b) any reduction or increase in such amount from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04; provided , that  at no time shall the Revolving Exposure of any  Lender  exceed  its  Revolving  Commitment.   The  aggregate  amount  of  the  Lenders’  Revolving Commitments as of the Second Amendment  Effective Date is $ 150,000,000 125,000,000 .                                            -27-

 

       “Revolving  Exposure ” means, with respect to any Lender at any time, the sum of the outstanding principal amount of such Lender’s Revolving Loans, LC Exposure and Swingline Exposure at such time.        “Revolving   Lender ”  means,  as  of  any  date  of  determination,  a  Lender with  a  Revolving Commitment or, if the Revolving Commitments have terminated or expired, a Lender with Revolving Exposure.         “Revolving Loan ” means a Loan made pursuant to Section 2.01.         “S&P ” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business.         “Sale and Leaseback Transaction ” has the meaning assigned to such term in Section 6.06.         “Sanctioned  Country ” means, at any time, a country, region or territory which is itself the subject or target of any Sanctions (at the time of this Agreement, Crimea, Cuba, Iran, North Korea and Syria).        “Sanctioned   Person ” means, at any time, (a) any Person listed in any Sanctions-related  list  of designated  Persons  maintained  by  OFAC,  the  U.S.  Department  of  State,  the  United  Nations  Security Council,  the  European  Union,  any  European  Union  member  state,  or  Her  Majesty’s  Treasury  of  the United Kingdom (b) any Person operating, organized or resident in a Sanctioned Country, (c) any Person owned or controlled by any such Person or Persons described in the foregoing clauses (a) or (b), or (d) any Person otherwise the subject of any Sanctions.        “Sanctions ” means all economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by OFAC or the U.S. Department of State or (b) the United Nations Security Council, the European Union, any European Union member state, or Her Majesty’s Treasury of the United Kingdom.         “SEC ” means the Securities and Exchange Commission of the U.S.         “Second Amendment Effective Date” means March 5, 2020.         “Secured  Obligations ” means all Obligations, together with all (i) Banking Services Obligations and (ii) Swap Agreement Obligations owing to one or more Lenders or their respective Affiliates to the extent notification of such Swap Agreement Obligations has been provided to the Administrative Agent in accordance with Section 2.24; provided, however, that the definition of “Secured Obligations” shall not create any guarantee by any Loan Guarantor of (or grant of security interest by any Loan Guarantor to support,  as  applicable)  any  Excluded  Swap  Obligations  of  such  Loan  Guarantor  for  purposes  of determining any obligations of any Loan Guarantor.         “Secured   Parties ”  means  the  holders  of  the  Secured  Obligations  from  time  to  time  and  shall include (a) the Administrative Agent in respect of all present and future obligations and liabilities of the Borrower and each Subsidiary of every type and description  arising  under  or  in  connection  with  this Agreement or any other Loan Document, (b) the Lenders in respect of their respective Loans and LC Exposure and all other present and future obligations and liabilities of the Borrower and each Subsidiary of  every  type and description arising under or in connection  with  this  Agreement  or  any  other  Loan Document, (c) the Issuing Bank in respect of its LC Exposure and all other present and future obligations and liabilities of the Borrower and each Subsidiary of every type and description arising under or in connection with this Agreement or any other Loan Document,  (d)  each  Lender  and  Affiliate  of  such Lender that is a provider of Banking Services, to the extent the Banking Services Obligations in respect                                           -28-

 

       “Subordinated  Indebtedness ” of a Person means any Indebtedness of such Person the payment of which is subordinated in right of payment of the Secured Obligations on then customary terms reasonably satisfactory to the Administrative Agent.         “subsidiary ”  means,  with  respect  to  any  Person  (the  “parent ”)  at  any  date,  any  corporation, limited  liability  company,  partnership,  association  or  other  entity  the  accounts  of  which  would  be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited  liability  company,  partnership,  association  or  other  entity  (a) of  which  securities  or  other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.        “Subsidiary ”  means  any  direct  or  indirect  subsidiary  of  the  Company  or  a  Loan  Party,  as applicable.         “Subsidiary   Guarantor ”  means  each  Material  Domestic  Subsidiary  that  is  a  party  to  the  Loan Guaranty.   The  Subsidiary  Guarantors  on  the  Effective  Date  are  identified  as  such  in  Schedule 3.15 hereto.         “Supported QFC”  has the meaning assigned to it in Section 9.22.         “Swap  Agreement ” means any agreement with respect to any swap, forward, spot, future, credit default or derivative transaction or option or similar agreement involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any  combination  of  these  transactions;  provided   that  no  phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Borrower or the Subsidiaries shall be a Swap Agreement.         “Swap   Agreement   Obligations ”  means  any  and  all  obligations  of  the  Loan  Parties  and  their Subsidiaries, whether absolute or contingent and howsoever and whensoever created, arising, evidenced or  acquired  (including  all  renewals,  extensions  and  modifications  thereof  and  substitutions  therefor), under (a) any and all Swap Agreements permitted hereunder with a Lender or an Affiliate of a Lender and designated  by  the  Borrower  as  “Secured  Obligations”  at  the  time  of  entering  into  any  such  Swap Agreement, and (b) any and all cancellations, buy backs, reversals, terminations or assignments of any such Swap Agreement transaction.        “Swap  Obligation ” means, with respect to any Loan Guarantor, any obligation to pay or perform under  any  agreement,  contract  or  transaction  that  constitutes  a  “swap”  within  the  meaning  of  section 1a(47) of the Commodity Exchange Act or any rules or regulations promulgated thereunder.        “Swingline  Exposure ” means, at any time, the aggregate principal amount of all Swingline Loans outstanding at such time.  The Swingline Exposure of any Lender at any time shall be the sum of (a) its Applicable  Percentage  of  the  total  Swingline  Exposure  at  such  time  other  than  with  respect  to  any Swingline  Loans  made  by  such  Lender  in  its  capacity  as  a  Swingline  Lender  and  (b) the  aggregate principal amount of all Swingline Loans made by such Lender as a Swingline Lender outstanding at such time (less the amount of participations funded by the other Lenders in such Swingline Loans).                                            -30-

 

       “Swingline  Lender ” means JPMorgan Chase Bank, N.A., in its capacity as lender of Swingline Loans hereunder.         “Swingline Loan ” has the meaning assigned to such term in Section 2.05(a).         “Taxes ”  means  any  and  all  present  or  future  taxes,  levies,  imposts,  duties,  deductions, withholdings,  (including  backup  withholding),  assessments,  fees  or  other  charges  imposed  by  any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.         “Test  Period ” means the period of four (4) consecutive fiscal quarters ended on such date (or, if such date is not the last day of a fiscal quarter, ended on the last day of the fiscal quarter most recently ended prior to such date for which financial statements have been delivered pursuant to Section 5.01(a) or (b) (or, if prior to the date of the delivery of the first financial statements to be delivered pursuant to Section 5.01(a) or (b), the most recent financial statements referred to in Section 3.04(a))).         “Torrance   Facility ”  means  the  Company’s  facility  located  at  20333  Normandie  Avenue, Torrance, California.         “Total   Net   Leverage   Ratio ”  means,  at  any  date,  the  ratio  of  (a)  an  amount  equal  to  (i) Consolidated Total Indebtedness as of such date minus (ii) Unrestricted Cash on such date in an aggregate amount not to exceed $7,500,000 to (b) EBITDA for the most recently ended Test Period, all calculated for the Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP.        “Transactions ”  means  the  execution,  delivery  and  performance  by the  Borrower  of  this Agreement and the other Loan Documents, the borrowing of Loans and other credit extensions, the use of the proceeds thereof and the issuance of Letters of Credit hereunder.        “Transition Services Agreement ” means that certain transition services agreement substantially in the form attached as Exhibit K to the APA, as the same  may  be  amended,  amended  and  restated  or modified from time to time, in each case with the prior written consent of the Administrative Agent; provided ,  that,  no  amendment  or  modification  of  the  Transition  Services  Agreement  (or  to  the  form thereof attached to the APA) which is materially adverse to the interests of the Lenders shall be effected without the prior written consent of the Required Lenders.         “Type ”, when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted LIBO Rate or the Alternate Base Rate.         “UCC ” means the Uniform Commercial Code as in effect from time to time in the State of New York or in any other state the laws of which are required to be applied in connection with the issue of perfection of security interests.         “UK   Financial   Institution”   means   any   BRRD   Undertaking   (as   such   term   is   defined   under   the PRA   Rulebook   (as   amended   form   time   to   time)   promulgated   by   the   United   Kingdom   Prudential Regulation  Authority)  or  any  person  falling  within  IFPRU  11.6  of  the  FCA  Handbook  (as  amended  from time  to  time)  promulgated  by  the  United  Kingdom  Financial  Conduct  Authority,  which  includes  certain credit   institutions   and   investment   firms,   and   certain   affiliates   of   such   credit   institutions   or   investment firms.                                            -31-

 

       “UK   Resolution   Authority ”  means   the  Bank   of   England   or   any   other   public   administrative authority having responsibility for the resolution of any UK Financial Institution.         “Unliquidated  Obligations ” means, at any time, any Secured Obligations (or portion thereof) that are contingent in nature or unliquidated at such time, including any Secured Obligation that is:  (i) an obligation to reimburse a bank for drawings not yet made under a letter of credit issued by it; (ii) any other obligation (including any guarantee) that is contingent in nature at such time; or (iii) an obligation to provide collateral to secure any of the foregoing types of obligations.         “Unrestricted  Cash ” means, at any date, 100% of the unrestricted cash maintained by the Loan Parties in accounts located in the United States at such time and that are not subject to any Liens at such time  other  than  Liens  created  under  the  Loan  Documents  and  Permitted  Encumbrances  of  the  type described in clause (j) of the definition thereof.        “U.S. ” means the United States of America.         “U.S.  Person ” means a “United States person” within the meaning of Section 7701(a)(30) of the Code.         “U.S. Special Resolution Regime ” has the meaning assigned to it  in Section 9.22.         “U.S. Tax   Compliance   Certificate ”  has  the  meaning  assigned  to  such  term  in Section 2.17(f)(ii)(B)(3).         “USA  PATRIOT  Act ” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub. L. 107-56 (signed into law October 26, 2001)).         “Withdrawal   Liability ”  means  liability  to  a  Multiemployer  Plan  as  a  result  of  a  complete  or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.         “Withholding Agent ” means any Loan Party and the Administrative Agent.         “Write-Down and Conversion Powers ” means, (a)  with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule ., and  (b ) with  respect  to  the  United  Kingdom,  any powers  of  the  applicable  Resolution  Authority  under  the  Bail-In  Legislation  to  cancel,  reduce,  modify  or change  the  form  of  a  liability  of  any  UK  Financial  Institution  or  any  contract  or  instrument  under  which that   liability   arises,   to   convert   all   or   part   of   that   liability   into   shares,   securities   or   obligations   of   that person  or  any  other  person,  to  provide  that  any  such  contract  or  instrument  is  to  have  effect  as  if  a  right had  been  exercised  under  it  or  to  suspend  any  obligation  in  respect  of  that  liability  or  any  of  the  powers under that Bail-In Legislation that are related to or ancillary to any of those powers.         SECTION 1.02    Classification  of  Loans  and  Borrowings .  For purposes of this Agreement, Loans  may  be  classified  and  referred  to  by  Class  (e.g .,  a  “Revolving  Loan”)  or  by  Type  (e.g .,  a “Eurodollar Loan”) or by Class and Type (e.g ., a “Eurodollar Revolving Loan”).  Borrowings also may be classified  and  referred  to  by  Class  (e.g .,  a  “Revolving  Borrowing”)  or  by  Type  (e.g .,  a  “Eurodollar Borrowing”) or by Class and Type (e.g ., a “Eurodollar Revolving Borrowing”).                                            -32-

 

Standards  Board  on  August  17,  2010,  or  any  other  proposals  issued  by  the  Financial  Accounting Standards Board in connection therewith, in each case if such change would require treating any lease (or similar  arrangement  conveying  the  right  to  use)  as a  capital  lease  where  such  lease  (or  similar arrangement) was not required to be so treated under GAAP as in effect on the Effective Date.         SECTION 1.05    Status   of   Obligations .   In the event that the Borrower or any other Loan Party shall at any time issue or have outstanding any Subordinated Indebtedness, the Borrower shall take or  cause  such  other  Loan  Party  to  take  all  such  actions  as  shall  be  necessary  to  cause  the  Secured Obligations  to  constitute  senior  indebtedness  (however  denominated)  in  respect  of  such  Subordinated Indebtedness and to enable the Administrative Agent and the Lenders to have and exercise any payment blockage or other remedies available or potentially available to holders of senior indebtedness under the terms of such Subordinated Indebtedness.  Without limiting the foregoing, the Secured Obligations are hereby designated as “senior indebtedness” and as “designated senior indebtedness” and words of similar import  under  and  in  respect  of  any  indenture  or  other  agreement  or  instrument  under  which  such Subordinated Indebtedness is outstanding and are further given all such other designations as shall be required under the terms of any such Subordinated Indebtedness in order that the Lenders may have and exercise any payment blockage or other remedies available or potentially available to holders of senior indebtedness under the terms of such Subordinated Indebtedness.         SECTION 1.06    Pro Forma Basis .  All pro forma computations required to be made hereunder giving effect to any acquisition or disposition, or issuance, incurrence or assumption of Indebtedness, or other transaction shall in each case be calculated giving pro forma effect thereto (and, in the case of any pro forma computation made hereunder to determine whether such acquisition or disposition, or issuance, incurrence or assumption of Indebtedness, or other transaction is permitted to be consummated hereunder, to any other such transaction consummated since the first day of the period covered by any component of such pro forma computation and on or prior to the date of such computation) as if such transaction had occurred on the first day of the period of four consecutive fiscal quarters ending with the most recent fiscal  quarter  for  which  financial  statements  shall have been delivered pursuant to Section 5.01(a) or 5.01(b) (or, prior to the delivery of any such financial  statements,  ending  with  the  last  fiscal  quarter included in the financial statements referred to in Section 3.04(a)), and, to the extent applicable, to the historical earnings and cash flows associated with the assets acquired or disposed of (but without giving effect  to  any  synergies  or  cost  savings,  except  for  the  Cost  Savings  (as  defined  in  the  definition  of “EBITDA”)) and any related incurrence or reduction of Indebtedness, all in accordance with Article 11 of Regulation S-X under the United States Securities Act of 1933. If any Indebtedness bears a floating rate of interest and is being given pro forma effect, the interest on such Indebtedness shall be calculated as if the rate in effect on the date of determination had been the applicable rate for the entire period (taking into account any Swap Agreement applicable to such Indebtedness).         SECTION 1.07    Limited Condition Acquisitions .  Notwithstanding anything to the contrary in this  Agreement,  solely  for  the  purpose  of  (A) measuring  the  relevant  financial  ratios  and  basket availability with respect to the incurrence of any Indebtedness (including any Incremental Term Loans) or Liens or the making of any Investments, Restricted Payments, prepayments of Subordinated Indebtedness or Dispositions or (B) determining compliance with representations and warranties or the occurrence of any Default or Event of Default, in each case, in connection with a Limited Condition Acquisition, if the Borrower has made an LCA Election with respect to such Limited Condition Acquisition, the date of determination of whether any such action is permitted hereunder shall be deemed to be, at the election of the  Borrower,  either  (x) the  date  on  which  the  definitive  agreements  for  such  Limited  Condition Acquisition are entered into or (y) the date on which such Limited Condition Acquisition is consummated (the “LCA  Test  Date ”), and if, after giving pro forma effect to the Limited Condition Acquisition and the other transactions to be entered into in connection therewith as if they had occurred at the beginning of the most recent Test Period ending prior to the LCA Test Date, the Borrower could have taken such                                           -34-

 

Borrowing  is  repaid  as  provided  herein,  at  the  end of  such  Interest  Period  such  Borrowing  shall  be converted to an ABR Borrowing.  Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of the Required Lenders, so notifies the Borrower, then, so long as such Event of Default is continuing (i) no outstanding Borrowing may be  converted  to  or  continued  as  a  Eurodollar  Borrowing  and  (ii)  unless  repaid,  each  Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto.         SECTION 2.09    Termination   and   Reduction   of   Revolving   Commitments ;  Increase   in Revolving   Commitments;   Incremental   Term   Loans .   (a) Unless  previously  terminated,  the  Revolving Commitments shall terminate on the Maturity Date.               (b)    The Borrower may at any time terminate the Revolving Commitments upon (i) the payment in full of all outstanding Revolving Loans, together with accrued and unpaid interest thereon and  on  any  LC  Exposure,  (ii)  the  cancellation  and  return  of  all  outstanding  Letters  of  Credit  (or alternatively, with respect to each such Letter of Credit, the furnishing to the Administrative Agent of a cash  deposit  (or  at  the  discretion  of  the  Administrative  Agent  a  back-up  standby  letter  of  credit satisfactory to the Administrative Agent and the Issuing Bank) in an amount equal to 105% of the LC Exposure as of such date), (iii) the payment in full of the accrued and unpaid fees, and (iv) the payment in full of all reimbursable expenses and other Obligations, together with accrued and unpaid interest thereon.               (c)    The  Borrower  may  from  time  to  time  reduce  the  Revolving  Commitments; provided  that (i) each reduction of the Revolving Commitments shall be in an amount that is an integral multiple of $5,000,000 and not less than $5,000,000 and (ii) the Borrower shall not terminate or reduce the Revolving Commitments if, after giving effect to any concurrent prepayment of the Revolving Loans in  accordance  with  Section  2.11,  the  Aggregate  Revolving  Exposure  would  exceed  the  aggregate Revolving Commitments.               (d)    The Borrower shall notify the Administrative Agent of any election to terminate or  reduce  the  Revolving  Commitments  under  paragraph (b)  or  (c)  of  this  Section  at  least  three  (3) Business Days prior to the effective date of such termination or reduction, specifying such election and the  effective  date  thereof.   Promptly  following  receipt  of  any  notice,  the  Administrative  Agent  shall advise  the  Lenders  of  the  contents  thereof.   Each  notice  delivered  by  the  Borrower  pursuant  to  this Section  shall  be  irrevocable;  provided   that  a  notice  of  termination  of  the  Revolving  Commitments delivered  by  the  Borrower  may  state  that  such  notice  is  conditioned  upon  the  effectiveness  of  other indebtedness or any other event, in which case such notice may be revoked or delayed by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied.   Any  termination  or  reduction  of  the  Revolving  Commitments  shall  be  permanent.   Each reduction of the Revolving Commitments shall be made ratably among the Lenders in accordance with their respective Revolving Commitments.               (e)  The  Borrower  may  from  time  to  time  after  the  Effective  Date  elect  to  increase  the Revolving  Commitments  or  enter  into  one  or  more  tranches  of  term  loans  (each  an  “ Incremental  Term Loan ”),  in  each  case  in  minimum  increments  of  $10,000,000;  so  long  as,  after  giving  effect  thereto,  the aggregate   amount   of   all   such   increases   and   all   such   Incremental   Term   Loans   shall   not   exceed $75,000,000.    The   Borrower   may   arrange   for   any   such   increase   or   Incremental   Term   Loans   to   be provided  by  one  or  more  Lenders  (each  Lender  so  agreeing  to  an  increase  in  its  Revolving  Commitment, or  to  participate  in  such  Incremental  Term  Loans,  an  “ Increasing  Lender ”),  or  by  one  or  more  new  banks, financial   institutions   or   other   entities   (each   such   new   bank,   financial   institution   or   other   entity,   an “Augmenting   Lender ”;  provided   that   no   Ineligible   Institution   may   be   an   Augmenting   Lender),   which agree  to  increase  their  existing  Revolving  Commitments,  or  to  participate  in  or  provide  such  Incremental Term   Loans,   or   provide   new   Revolving   Commitments,   as   the   case   may   be;  provided   that   (i)   each                                           -45-

 

Augmenting  Lender  shall  be  subject  to  the  approval  of  the  Borrower  and,  in  the  case  of  an  increase  in  the Revolving  Commitments  and  solely  to  the  extent  that  the  consent  of  each  such  Person  would  be  required to   effect   an   assignment   under   Section   9.04(b),   the   Administrative   Agent,   the   Issuing   Bank   and   the Swingline  Lender  (each  such  approval  not  to  be  unreasonably  withheld,  delayed  or  conditioned)  and  (ii) (x)  in  the  case  of  an  Increasing  Lender,  the  Borrower  and  such  Increasing  Lender  execute  an  agreement substantially  in  the  form  of  Exhibit  D  hereto,  and  (y)  in  the  case  of  an  Augmenting  Lender,  the  Borrower and  such  Augmenting  Lender  execute  an  agreement  substantially  in  the  form  of  Exhibit  E  hereto.   No consent of any Lender (other than the Lenders participating in the increase or any Incremental Term Loan and  as  set  forth  in  the  immediately  preceding  clause  (i))  shall  be  required  for  any  increase  in  Revolving Commitments  or  Incremental  Term  Loans  pursuant  to  this  Section  2.09(e).   Increases  and  new  Revolving Commitments   and   Incremental   Term   Loans   created   pursuant   to   this   Section   2.09(e)   shall   become effective   on   the   date   agreed   by   the   Borrower,   the   Administrative   Agent   and   the   relevant   Increasing Lenders   or   Augmenting   Lenders,   and   the   Administrative   Agent   shall   notify   each   Lender   thereof. Notwithstanding   the   foregoing,   no   increase   in   the   Revolving   Commitments   (or   in   the   Revolving Commitment   of   any   Lender)   or   tranche   of   Incremental   Term   Loans   shall   become   effective   under   this paragraph   unless,   (i)   on   the   proposed   date   of   the   effectiveness   of   such   increase   or   Incremental   Term Loans,  (A)  the  conditions  set  forth  in  paragraphs  (a)  and  (b)  of  Section  4.02  shall  be  satisfied  or  waived by the Required Lenders and the Administrative Agent shall have received a certificate to that effect dated such   date   and   executed   by   a   Financial   Officer   or   other   executive   officer   of   the   Borrower   and   (B)  the Borrower  shall  be  in  compliance  (immediately  before  and  after  giving  effect  (including  giving  effect  on  a pro  forma  basis  after  giving  effect  to  the  application  on  such  date  of  the  proceeds  of  any  Loans  funded  on such  date)  to  such  increase  or  Incremental  Term  Loans,  as  applicable)  with  the  covenants  contained  in Section  6.12  and  (ii)  the  Administrative  Agent  shall  have  received  documents  and  opinions  consistent with  those  delivered  on  the  Effective  Date  as  to  the  organizational  power  and  authority  of  the  Borrower (including,  without  limitation,  resolutions  with  respect  to  borrowing  such  increase  or  Incremental  Term Loans).   On  the  effective  date  of  any  increase  in  the  Revolving  Commitments  or  any  Incremental  Term Loans  being  made,  (i)  each  relevant  Increasing  Lender  and  Augmenting  Lender  shall  make  available  to the  Administrative  Agent  such  amounts  in  immediately  available  funds  as  the  Administrative  Agent  shall determine,  for  the  benefit  of  the  other  Lenders,  as  being  required  in  order  to  cause,  after  giving  effect  to such  increase  or  such  Incremental  Term  Loans  and  the  use  of  such  amounts  to  make  payments  to  such other  Lenders,  each  Lender’s  portion  of  the  outstanding  Revolving  Loans  of  all  the  Lenders  to  equal  its Applicable   Percentage   of   such   outstanding   Revolving   Loans,   and   (ii)   except   in   the   case   of   any Incremental  Term  Loans,  the  Borrower  shall  be  deemed  to  have  repaid  and  reborrowed  all  outstanding Revolving  Loans  as  of  the  date  of  any  increase  in  the  Revolving  Commitments  (with  such  reborrowing  to consist  of  the  Types  of  Revolving  Loans,  with  related  Interest  Periods  if  applicable,  specified  in  a  notice delivered  by  the  Borrower,  in  accordance  with  the  requirements  of  Section  2.03).   The  deemed  payments made  pursuant  to  clause  (ii)  of  the  immediately  preceding  sentence  shall  be  accompanied  by  payment  of all  accrued  interest  on  the  amount  prepaid  and,  in  respect  of  each  Eurodollar  Loan,  shall  be  subject  to indemnification by the Borrower pursuant to the provisions of Section 2.16 if the deemed payment occurs other  than  on  the  last  day  of  the  related  Interest  Periods.   The  Incremental  Term  Loans  (a)  shall  rank  pari passu  in  right  of  payment  with  the  Revolving  Loans,  (b)  shall  not  mature  earlier  than  the  Maturity  Date (but  may  have  amortization  prior  to  such  date)  and  (c)  shall  be  treated  substantially  the  same  as  (and  in any   event   no   more   favorably   than)   the   Revolving   Loans;  provided   that   (i)   the   terms   and   conditions applicable  to  any  tranche  of  Incremental  Term  Loans  maturing  after  the  Maturity  Date  may  provide  for material  additional  or  different  financial  or  other  covenants  or  prepayment  requirements  applicable  only during periods after the Maturity Date and (ii) the Incremental Term Loans may be priced differently than the  Revolving  Loans.   Incremental  Term  Loans  may  be  made  hereunder  pursuant  to  an  amendment  or restatement  (an  “ Incremental  Term  Loan  Amendment ”)  of  this  Agreement  and,  as  appropriate,  the  other Loan  Documents,  executed  by  the  Borrower,  each  Increasing  Lender  participating  in  such  tranche,  each Augmenting  Lender  participating  in  such  tranche,  if  any,  and  the  Administrative  Agent.   The  Incremental Term  Loan  Amendment  may,  without  the  consent  of  any  other  Lenders,  effect  such  amendments  to  this                                           -46-

 

Agreement  and  the  other  Loan  Documents  as  may  be  necessary  or  appropriate,  in  the  reasonable  opinion of  the  Administrative  Agent,  to  effect  the  provisions  of  this  Section  2.09(e).   Nothing  contained  in  this Section  2.09(e)  shall  constitute,  or  otherwise  be  deemed  to  be,  a  commitment  on  the  part  of  any  Lender  to increase   its   Revolving   Commitment   hereunder,   or   provide   Incremental   Term   Loans,   at   any   time.   In connection  with  any  increase  of  the  Revolving  Commitments  or  Incremental  Term  Loans  pursuant  to  this Section  2.09(e),  any  Augmenting  Lender  becoming  a  party  hereto  shall  (1)  execute  such  documents  and agreements  as  the  Administrative  Agent  may  reasonably  request  and  (2)  in  the  case  of  any  Augmenting Lender  that  is  organized  under  the  laws  of  a  jurisdiction  outside  of  the  United  States  of  America,  provide to the Administrative Agent, its name, address, tax identification number and/or such other information as shall  be  necessary  for  the  Administrative  Agent  to  comply  with  “know  your  customer”  and  anti-money laundering rules and regulations, including without limitation, the USA PATRIOT Act.               (e)    If  at  any  time  the  aggregate  outstanding  principal  amount  of  Indebtedness  of  the Borrower  and   its   Subsidiaries   which   is   incurred   or   exists   in   reliance   on   Section   6.01(e)   exceeds $10,000,000 (any such amount in excess of $10,000,000 being referred to as the “Excess Purchase Money Amount”),  the  aggregate  Revolving  Commitments  shall  automatically  and  irrevocably  be  reduced  by  an amount   equal   to   the   applicable   Excess   Purchase   Money   Amount.    Any   reduction   of   the   Revolving Commitments  pursuant  to  this  Section  2.09(e)  shall  be  permanent  and  shall  be  made  ratably  among  the Lenders in accordance with their respective Revolving Commitments at such time.               (f)    If  at  any  time  the  Borrower  or  any  of  its  Subsidiaries  receives  net  cash  proceeds in  excess  of  $5,000,000  from  any  individual  Disposition  (other  than  Dispositions  permitted  pursuant  to Sections 6.05(a),  (b),  (c),  (d),  (h),  (i),  (j),  (l),  and  (m),  or  Dispositions  among  Loan  Parties)  (any  such amount  in  excess  of  $5,000,000  being  referred  to  as  the  “Excess  Disposition  Amount”),  the  aggregate Revolving   Commitments  shall   automatically   and   irrevocably   be   reduced   by   an   amount   equal   to   the applicable  Excess  Disposition  Amount.   Any  reduction  of  the  Revolving  Commitments  pursuant  to  this Section  2.09(f)  shall  be  permanent  and  shall  be  made  ratably  among  the  Lenders  in  accordance  with  their respective Revolving Commitments at such time.         SECTION 2.10    Repayment of   Loans;   Evidence   of   Debt .   (a) The  Borrower  hereby unconditionally promises to pay (i) to the Administrative Agent for the account of each Revolving Lender the  then  unpaid  principal  amount  of  each  Revolving Loan  on  the  Maturity  Date  and  (ii)  to  the Administrative Agent for the account of the Swingline Lender the then unpaid principal amount of each Swingline Loan on the earlier of the Maturity Date and the fifth Business Day after such Swingline Loan is  made;  provided   that  on  each  date  that  a  Revolving  Loan  is  made,  the  Borrower  shall  repay  all Swingline Loans then outstanding and the proceeds of any such Revolving Loan shall be applied by the Administrative Agent to repay any Swingline Loans outstanding.               (b)    Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the Indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.               (c)    The Administrative Agent shall maintain accounts in which it shall record (i) the amount  of  each  Loan  made  hereunder,  the  Class  and  Type  thereof  and  the  Interest  Period  applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.               (d)    The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this  Section  shall  be  prima   facie   evidence  of  the  existence  and  amounts  of  the  obligations  recorded                                           -47-

 

therein; provided  that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Loans in accordance with the terms of this Agreement.               (e)    Any Lender may request that Loans made by it be evidenced by a promissory note.  In such event, the Borrower shall prepare, execute and deliver to such Lender a promissory note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a form reasonably acceptable to the Administrative Agent and the Borrower.  Thereafter, the  Loans  evidenced  by  such  promissory  note  and  interest  thereon  shall  at  all  times  (including  after assignment  pursuant  to  Section  9.04)  be  represented  by  one  or  more  promissory  notes  in  such  form payable to the order of the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns).         SECTION 2.11    Prepayment  of  Loans .  (a) The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part and without premium or penalty, subject to prior notice in accordance with paragraph (b) of this Section and, if applicable, payment of any break funding expenses under Section 2.16.               (b)    In  the  event  and  on  such  occasion  that  the  Aggregate  Revolving  Exposure exceeds the aggregate Revolving Commitments  ( including,  for  the  avoidance  of  doubt,  as  a  result  of  any reduction of the Revolving Commitments made pursuant  to Section 2.09(e) or 2.09(f)) , the Borrower shall prepay the Revolving Loans, LC Exposure and/or Swingline Loans or cash collateralize LC Exposure in an  account  with  the  Administrative  Agent  pursuant  to  Section  2.06(j),  as  applicable,  in  an  aggregate amount equal to such excess.               (c)    The  Borrower  shall  notify  the  Administrative  Agent (and,  in  the  case  of prepayment of a Swingline Loan, the Swingline Lender) by telephone (confirmed by facsimile) of any prepayment  hereunder  not  later  than  12:00  p.m.,  Chicago  time,  (A)  in  the  case  of  prepayment  of  a Eurodollar Revolving Borrowing, three (3) Business Days before the date of prepayment and (B) in the case of prepayment of an ABR Loan (including any Swingline Loan), on the date of prepayment.  Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing  or  portion  thereof  to  be  prepaid;  provided   that,  if  a  notice  of  prepayment  is  given  in connection with a conditional notice of termination of the Revolving Commitments as contemplated by Section 2.09, then such notice of prepayment may be revoked or delayed if such notice of termination is revoked  or  delayed  in  accordance  with  Section 2.09.   Promptly  following  receipt  of  any  such  notice relating to a Revolving Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof.   Each  partial  prepayment  of  any  Revolving Borrowing  shall  be  in  an  amount  that  would  be permitted in the case of an advance of a Revolving Borrowing of the same Type as provided in Section 2.02.   Each  prepayment  of  a  Revolving  Borrowing  shall  be  applied  ratably  to  the  Revolving  Loans included in the prepaid Borrowing.  Prepayments shall be  accompanied by  (i)  accrued  interest  to  the extent required by Section 2.13 and (ii) break funding payments (if any) pursuant to Section 2.16 .         SECTION 2.12    Fees .  (a) The Borrower agrees to pay to the Administrative Agent for the account of each Lender a commitment fee, which shall accrue at the Applicable Rate on the average daily Available Revolving Commitment of such Lender during the period from and including the Effective Date to but excluding the date on which such Revolving  Commitment  terminates.   Commitment  fees accrued through and including the last day of March, June, September and December of each year shall be payable in arrears on the fifteenth day following such last day and on the date on which the Revolving Commitments  terminate,  commencing  on  the  first  such  date  to  occur  after  the  date  hereof.   All                                            -48-

 

Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.               (b)    If (i) any Lender requests compensation under Section 2.15, (ii) the Borrower is required  to  pay  any  Indemnified  Taxes  or  additional  amounts  to  any  Lender  or  any  Governmental Authority for the account of any Lender pursuant to Section 2.17 , or  (iii) any Lender  is  a  Non-Extending Lender   for   the   purposes   of   Section   2.23   or   (iv)   any  Lender  becomes  a  Defaulting  Lender,  then  the Borrower may, at their sole expense and effort, upon notice to such Lender and the Administrative Agent, require  such  Lender  to  assign  and  delegate,  without  recourse  (in  accordance  with  and  subject  to  the restrictions contained in Section 9.04), all its interests, rights (other than its existing rights to payments pursuant to Section 2.15 or 2.17) and obligations under this Agreement and other Loan Documents to an assignee (other than an Ineligible Institution) that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided  that (x) the Borrower shall have received the prior written consent of the Administrative Agent (and in circumstances where its consent would be required  under  Section  9.04,  the  Issuing  Bank  and  the  Swingline  Lender),  which  consent  shall  not unreasonably be withheld or delayed, (y) such Lender shall have received payment of an amount equal to the  outstanding  principal  of  its  Loans  and  funded  participations  in  LC  Disbursements  and  Swingline Loans,  accrued  interest  thereon,  accrued  fees  and  all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case  of  all  other  amounts)  and  (z) in  the  case  of  any  such  assignment  resulting  from  a  claim  for compensation  under  Section 2.15  or  payments  required  to  be  made  pursuant  to  Section 2.17,  such assignment will result in a reduction in such compensation or payments.  A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.   Each  party  hereto  agrees  that  (a) an  assignment  required  pursuant  to  this  paragraph  may  be effected pursuant to an Assignment and Assumption executed by the Borrower, the Administrative Agent and the assignee (or, to the extent applicable, an agreement incorporating an Assignment and Assumption by reference pursuant to an Approved Electronic Platform as to which the Administrative Agent and such parties are participants), and (b) the Lender required to make such assignment need not be a party thereto in order for such assignment to be effective and shall be deemed to have consented to an be bound by the terms thereof; provided  that, following the effectiveness of any such assignment, the other parties to such assignment  agree  to  execute  and  deliver  such  documents  necessary  to  evidence  such  assignment  as reasonably  requested  by  the  applicable  Lender,  provided  that  any  such  documents  shall  be  without recourse to or warranty by the parties thereto.         SECTION 2.20    Defaulting Lenders .  Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions shall apply for so long as such Lender is a Defaulting Lender:               (a)    fees shall cease to accrue on the unfunded portion of the Revolving Commitment of such Defaulting Lender pursuant to Section 2.12(a);               (b)    any  payment  of  principal,  interest,  fees  or  other  amounts  received  by  the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article VII or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 9.08 shall be applied at  such  time  or  times  as  may  be  determined  by  the Administrative Agent as follows:  first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; second, to the payment on a pro rata basis of any amounts owing by  such  Defaulting  Lender  to  any  Issuing  Bank  or  the  Swingline  Lender  hereunder;  third,  to  cash collateralize the Issuing Banks’ LC Exposure with respect to such Defaulting Lender in accordance with this Section; fourth, as the Borrower may request (so long as no Default or Event of Default exists and                                           -59-

 

surrender such payment or proceeds to any Person because such payment or application of proceeds is invalidated,  declared  fraudulent,  set  aside,  determined  to  be  void  or  voidable  as  a  preference, impermissible setoff, or a diversion of trust funds, or for any other reason (including pursuant to any settlement entered into by the Administrative Agent or such Lender in its discretion), then the Obligations or part thereof intended to be satisfied shall be revived and continued and this Agreement shall continue in full force as if such payment or proceeds had not been received by the Administrative Agent or such Lender.  The provisions of this Section 2.21 shall be and remain effective notwithstanding any contrary action which may have been taken by the Administrative Agent or any Lender in reliance upon such payment or application of proceeds.  The provisions of this Section 2.21 shall survive the termination of this Agreement.         SECTION 2.22    Intentionally Omitted .         SECTION 2.23    Extension of Maturity Date; Removal of Lenders [Reserved] .               (a) Subject to the remaining terms and provisions of this Section 2.23 , the Borrower shall have   the   option,   exercisable   not   more   than   two   (2)   times  pursuant   to   this   Section  2.23,   to   extend   the Maturity  Date  or  an  Incremental  Term  Loan  Maturity  Date  for  a  period  of  one  year  (each  such  option shall  be  referred  to  herein  as  an  “ Extension  Option ”).   In  connection  with  each  Extension  Option,  the Borrower   may,   by   written   notice   to   the   Administrative   Agent   (a   “ Notice   of   Extension ”)   (who   shall promptly  deliver  a  copy  to  each  of  the  Lenders ),  not  later  than  30  days  prior  to  the  applicable  Maturity Date  (each  such  then  effective  Maturity  Date  or  Incremental  Term  Loan  Maturity  Date,  as  the  case  may be,  being  the  “ Existing  Maturity  Date ”)  and  not  earlier  than  60  days  prior  to  the  Existing  Maturity  Date, advise the Lenders that it requests an extension of the Existing Maturity Date by one year, effective on the Existing Maturity Date.               (b)  Each  Notice  of  Extension  shall  (i)  be  irrevocable  and  (ii)  constitute  a  representation by   the   Borrower   that   (A)   no  Event   of   Default  or   Default   has   occurred  and   is   continuing,   and   (B)  the representations  and  warranties  contained  in  Article  III  are  true  and  correct  in  all  material  respects  (except to  the  extent  that  any  such  representation  or  warranty  is  qualified  by  materiality,  Material  Adverse  Effect or  similar  language  in  which  case  such  representations  and  warranties  are  true  and  correct  in  all  respects) on  and  as  of  the  date  the  Borrower  provides  any  Notice  of  Extension,  as  though  made  on  and  as  of  such date   (unless   any   representation   and   warranty   expressly   relates   to   an   earlier   date,   in   which   case   such representation and warranty shall be correct as of such earlier date).               (c)  In   the   event   a  Notice   of   Extension   is   given   to   the   Administrative   Agent  and   the Administrative  Agent  promptly  notifies  the  Lenders  as  provided  in  Section  2.23(a),  each  Lender  shall , on or  before  the  date  that  is  15  days  following  the  date  of  the  Administrative  Agent’s  receipt  of  said  Notice of  Extension  (or  if  such  date  is  not  a  Business  Day,  the  immediately  following  Business  Day)  advise  the Administrative  Agent  in  writing  whether  or  not  such  Lender  consents  to  the  extension  requested  thereby and  if  any  Lender  fails  so  to  advise  the  Administrative  Agent,  such  Lender  shall  be  deemed  to  have  not consented  to  such  extension.   If  any  Lender  so  consents  (each  such  consenting  Lender,  a  “ Consenting Lender ” and,  collectively,  the  “ Consenting  Lenders ”)  to  such  extension,  which  consent  may  be  withheld in  their  sole  and  absolute  discretion,  the  applicable  Existing  Maturity  Date  and  the  applicable  Revolving Commitments  of  the  Consenting  Lenders  shall  be  automatically  extended  to  the  proposed  new  maturity date  (the  “ Extended  Maturity  Date ”)  and  the  applicable  Existing  Maturity  Date  as  to  any  and  all  Lenders who   have   not   consented   (the   “ Non-Extending   Lenders ”)   shall   remain   as   the   Existing   Maturity   Date, subject  to  Section  2.23(d).   The  Administrative  Agent  shall  promptly  notify  the  Borrower  and  all  of  the Lenders  of  each  written  notice  of  consent  given  pursuant  to  this  Section  2.23(c).   The  election  of  any Lender to agree to such an extension shall not obligate any other Lender to so agree.                                            -62-

 

             (d)  The  Borrower  may  replace  any  Non- Extend ing  Lender  at  any  time  on  or  before  the Existing   Maturity   Date   with   an   assignee   (other   than   an   Ineligible   Institution,   but  including,   for   the avoidance   of   doubt,  with   a   Consenting   Lender)  in   accordance   with  and   subject  to   Section  2.19   and Section  9.04,  including  consents  required  under  Section  9.04,  provided  that  such  assignee  has  consented to  the  extension  of  the  Existing  Maturity  Date  to  the  Extended  Maturity  Date  then  in  effect,  and  upon such   replacement,   the   applicable   Maturity   Date   with   respect   to   the   loans   and   commitments   of   such replacement  Lender  shall  be  the  Extended  Maturity  Date;  provided  that  (i)  such  assignment  shall  become effective  as  of  a  date  specified  by  the  Borrower  (which  shall  not  be  later  than  the  Existing  Maturity  Date in effect for such Non- Extend ing Lender prior to the effective date of the requested extension) and (ii) the replacement   Lender   shall   pay   to   such   Non- Extend ing   Lender   in   immediately   available   funds   on   the effective   date   of   such   assignment   the   principal   of   and   interest   accrued   to   the   date   of   payment   on   the outstanding  principal  amount  Loans  made  by  it  hereunder  and  all  other  amounts  accrued  and  unpaid  for its account or otherwise owed to it hereunder on such date.               (e)  If  all  of  the  applicable  Revolving  Commitments  of  the  Non-Extending  Lenders  are not replaced on or before the Existing Maturity Date, then the applicable Revolving Commitments of each Non-Extending  Lender  not  so  replaced  shall  terminate  on  the  Existing  Maturity  Date,  and  the  Borrower shall  fully  repay  on  the  Existing  Maturity  Date  the  Loans  (including,  without  limitation,  all  accrued  and unpaid  interest  and  unpaid  fees),  if  any,  of  such  Non-Extending  Lenders  and  all  other  Obligations  owing thereto,   which   shall   reduce   the   aggregate   applicable   Revolving   Commitments   and   outstanding   Loans accordingly.   Following  the  Existing  Maturity  Date,  the  Non-Extending  Lenders  shall  have  no  further obligations  under  this  Agreement,  including,  without  limitation,  that  such  Non-Extending  Lenders  shall have no obligation to purchase participations in Letters of Credit.               (f)  As   a   condition   precedent   to   each   such   extension   of   the   Existing   Maturity   Date pursuant to this Section 2.23, the Borrower shall (i) deliver to the Administrative Agent a certificate of the Borrower  dated  as  of  the  Existing  Maturity  Date  signed  by  a  Financial  Officer  of  the  Borrower  certifying that,  as   of  such   date,   both   before   and   immediately   after   giving   effect   to   such   extension,   (A)   the representations  and  warranties  of  the  Borrower  set  forth  in  this  Agreement  shall  be  true  and  correct  in  all material   respects  on   and   as  of   the  date   of   extension  (it   being   understood   and   agreed   that  (x)   any representation  or  warranty  which  by  its  terms  is  made  as  of  a  specified  date  shall  be  required  to  be  true and  correct  in  all  material  respects  only  as  of  such  specified  date,  and  (y)  any  representation  or  warranty which is subject to any materiality qualifier shall be required to be true and correct in all respects) and (B) no  Default  shall  have  occurred  and  be  continuing  and  (ii)  first  make  such  prepayments  of  the  outstanding Loans   and   second   provide   such   cash   collateral   (or   make   such   other   arrangements   satisfactory   to   the applicable  Issuing  Bank ) with  respect  to  the  outstanding  Letters  of  Credit  as  shall  be  required  such  that, after  giving  effect  to  the  termination  of  the  Revolving  Commitments  of  the  Non-Extending  Lenders  and any assignment pursuant thereto, the Aggregate Revolving Exposure less the face amount of any Letter of Credit  supported  by  any  such  cash  collateral  (or  other  satisfactory  arrangements)  so  provided  does  not exceed the aggregate amount of Revolving Commitments being extended.               (g) For the avoidance of doubt, no consent of any Lender (other than the existing Lenders participating  in  the  extension  of  the  Existing  Maturity  Date)  shall  be  required  for  any  extension  of  the Maturity  Date  or  any  Incremental  Term  Loan  Maturity  Date,  as  the  case  may  be,  pursuant  to  this  Section 2.23  and  the  operation  of  this  Section  2.23  in  accordance  with  its  terms  is  not  an  amendment  subject  to Section 9.02.         SECTION 2.24    Swap  Agreement  Obligations .  Each Lender or Affiliate thereof having any Swap Agreement with any Loan Party or any Subsidiary the obligations in respect of which the Borrower has designated as “Secured Obligations” pursuant to the definition of Swap Agreement Obligations, in each case, shall deliver to the Administrative Agent, promptly after entering into such Swap Agreement,                                           -63-

 

equity and cash flows as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by independent public accountants of recognized national standing (without a “going concern” or like qualification, commentary or exception and without any qualification or exception as to the scope of such audit except to the extent resulting solely from (i) an upcoming maturity date under the credit facilities provided for herein occurring within one year from the time such opinion is delivered or (ii) an anticipated breach of any Financial Covenant) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results  of  operations  of  the  Company  and  its  consolidated  Subsidiaries  on  a  consolidated  basis  in accordance with GAAP consistently applied, accompanied by any management letter prepared by said accountants provided , that the requirements of this clause (a) shall be deemed to have been satisfied if the Administrative  Agent  has  been  furnished  with  a  consolidated  annual  report  for  the  Company  and  its Subsidiaries containing the foregoing information on form 10-K in the time period specified above in this clause (a);               (b)    within forty-five (45) days after the end of each of the first three fiscal quarters of each  fiscal  year  of the Company, its consolidated balance  sheet  and  related  statements  of  operations, stockholders’ equity and cash flows as of the end of and for such fiscal quarter and the then elapsed portion  of  such  fiscal  year,  setting  forth  in  each case  in  comparative  form  the  figures  for  the corresponding period or periods of (or, in the case of the balance sheet, as of the end of) the previous fiscal year, all certified by a Financial Officer of the Borrower as presenting fairly in all material respects the financial condition and results of operations of the Company and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end and audit adjustments  and  the  absence  of  footnotes,  provided ,  that  the  requirements  of  this  clause  (b)  shall  be deemed to have been satisfied if the Administrative Agent has been furnished with a quarterly report for the Company and its Subsidiaries containing the foregoing information on form 10-Q in the time period specified above in this clause (b);               (c)    concurrently  with  any  delivery  of  financial  statements  under  clause  (a)  or  (b) above,  a  certificate  of  a  Financial  Officer  of  the Borrower  in  substantially  the  form  of  Exhibit   B   (a “Compliance  Certificate ”) (i) certifying, in the case of the financial statements delivered under clause (b), as  presenting  fairly  in  all  material  respects  the  financial  condition  and  results  of  operations  of  the Company and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end and audit adjustments and the absence of footnotes, (ii) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, and (iii) in the case of the financial statements delivered  under  clauses  (a)  or  (b)  above,  setting  forth  reasonably  detailed  calculations  demonstrating compliance with Section 6.12 for such period;               (d)    Intentionally   Omitted; within   thirty   (30) days   after   the   end   of   each   calendar month,  as  of  the  period  then  ended,  the  Company’s  consolidated  balance  sheet  and  related  statements  of operations  and  cash  flows  as  of  the  end  of  and  for  such  calendar  month  and  the  then  elapsed  portion  of such  fiscal  year,  all  certified  by  a  Financial  Officer  of  the  Borrower  as  presenting  fairly  in  all  material respects  the   financial   condition   and   results   of   operations  of   the  Company   and   its   consolidated Subsidiaries  on  a  consolidated  basis  in  accordance  with  GAAP  consistently  applied,  subject  to  normal year-end and audit adjustments and the absence of footnotes;               (e)    no later than the  earlier  of  (i) forty-five  (45)  days  after  the end start  of each fiscal year of the Company, and  (ii)  three  (3)  Business  Days  after  the  date  such  Projections  are  approved  by  the board   of   directors   of   the   Company,  a  copy  of  the draft final   plan  and  forecast  (including  a  monthly projected consolidated income statement) of the Company for each month of the  upcoming such  fiscal year (the “Projections ”) in form reasonably satisfactory to the Administrative Agent (it being understood                                           -72-

 

that the Company’s customary format consistent with the format delivered to the Administrative Agent in connection with the Effective Date will be satisfactory) , and (ii) the earlier of (A) 90 days after the start of such  upcoming  fiscal  year,  and  (B)  the  date  such  draft  Projections  are  approved  by  the  board  of  directors of the Company, a copy of the final Projections ;               (f)    promptly following any request therefor, (x) such other information regarding the operations, changes in ownership of Equity Interests, business affairs and financial condition of any Loan Party or any Subsidiary, or compliance with the terms of this Agreement, as the Administrative Agent or any Lender may reasonably request and (y) information and documentation reasonably requested by the Administrative Agent or any Lender for purposes of compliance with applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act and the Beneficial Ownership Regulation; and               (g)    promptly  after  the  same  become  publicly  available, copies  of  all  periodic  and other reports, proxy statements and other materials filed by any Loan Party or any Subsidiary with the SEC, or any Governmental Authority succeeding to any or all of the functions of the SEC, or with any national securities exchange, or distributed by the Company to its shareholders generally, as the case may be.        Documents required to be delivered pursuant to clauses (a), (b) and (g) of this Section 5.01 may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which  such  documents  are  filed  for  public  availability  on  the  SEC’s  Electronic  Data  Gathering  and Retrieval system (EDGAR) or (ii) on which such documents are posted on the Company’s behalf on an Internet  or  intranet  website,  if  any,  to  which  each  Lender  and  the  Administrative  Agent  have  access (whether a commercial, third-party website or whether made available by the Administrative Agent). Notwithstanding anything contained herein, in every instance the Company shall be required to provide paper  copies  of  the  compliance  certificates  required  by  clause (c)  of  this  Section 5.01  to  the Administrative Agent.         SECTION 5.02    Notices  of  Material  Events .  The Borrower will furnish to the Administrative Agent  (which the Administrative Agent shall promptly  distribute  to  each  Lender)  prompt  (but  in  any event within any time period that may be specified below) written notice of the following:               (a)    the occurrence of any Default;               (b)    receipt of any notice of any investigation by a Governmental Authority or any litigation or proceeding commenced or threatened against any Loan Party or any Subsidiary that is non- frivolous (as reasonably determined by the Borrower) and, if adversely determined, could reasonably be expected to have a Material Adverse Effect;               (c)    the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, could reasonably be expected to have a Material Adverse Effect;               (d)    any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect; and               (e)    any change in the information provided in the Beneficial Ownership Certification delivered to such Lender that would result in a change to the list of beneficial owners identified in such certification.                                            -73-

 

the date on which any Person becomes a Subsidiary or any Subsidiary qualifies independently as, or is designated by the Borrower (or the Administrative Agent as contemplated by the definition of “Material Domestic  Subsidiary”)  as,  a  Material  Domestic  Subsidiary,  pursuant  to  the  definition  of  “Material Domestic Subsidiary,” the Borrower shall provide the Administrative Agent with written notice thereof setting forth information in reasonable detail describing the material assets of such Person and shall cause each such Subsidiary (x) to become a Loan Party by executing a Joinder Agreement and (y) to deliver to the  Administrative  Agent  a  joinder  to  the  Security Agreement  (in  the  form  contemplated  thereby) pursuant  to  which  such  Subsidiary  agrees  to  be  bound  by  the  terms  and  provisions  thereof,  to  be accompanied by appropriate corporate resolutions, other corporate documentation and legal opinions in form  and  substance  reasonably  satisfactory  to  the  Administrative  Agent  and  its  counsel;  provided , however, that no Domestic Subsidiary of a Foreign Subsidiary and no Domestic Subsidiary HoldCo shall be required to become a Loan Party hereunder.  Upon execution and delivery thereof, each such Person (i) shall automatically become a Loan Guarantor hereunder and a “Grantor” under the Security Agreement (pursuant to the terms thereof) and thereupon shall have all of the rights, benefits, duties and obligations in such capacities under the Loan Documents and (ii) will grant Liens to the Administrative Agent, for the benefit of the Administrative Agent and the other Secured Parties, in any property of such Loan Party which constitutes Collateral.               (b)    The Borrower will cause, and will cause each other Loan Party to cause, all of its owned property (whether personal, tangible, intangible, or mixed, but other than any Excluded Collateral) to be subject at all times to first priority, perfected Liens in favor of the Administrative Agent for the benefit  of  the  Secured  Parties  to  secure  the  Secured  Obligations  in  accordance  with  the  terms  and conditions of the Collateral Documents, subject in any case to Liens permitted by Section 6.02.  Each Loan Party will cause  (i) cause  100% of the issued and outstanding Equity Interests of each of its directly owned Domestic Subsidiaries (other than Domestic Subsidiary HoldCos), and (ii) cause  65% of the issued and  outstanding  Equity  Interests  entitled  to  vote  (within  the  meaning  of  Treas.  Reg.  Section  1.956- 2(c)(2)) in each directly owned Subsidiary that is a CFC or Domestic Subsidiary Holdco to, in each case, be subject at all times to a first priority, perfected Lien (subject to Liens permitted under Section 6.02) in favor of the Administrative Agent, for the benefit of the Administrative Agent and the other Secured Parties, pursuant to the terms and conditions of the Loan Documents or other security documents as the Administrative  Agent  shall  reasonably  request .   Notwithstanding   the   foregoing,  and   (iii)   deliver Mortgages  and  all  related  Mortgage  Instruments  with  respect  to  (x)  the  Northlake  Property  no  later  than the   date   that   is   sixty   (60)   days   after   the   Second   Amendment   Effective  Date  (or  such  later  date  as  the Administrative  Agent  may  agree  in  the  exercise  of  its  reasonable  discretion  with  respect  thereto)  (it  being understood  and  agreed  that  the  Loan  Parties  shall  not  be  required  to  deliver  a  title  insurance  policy  in connection therewith),  (y) any Material Real Property to the extent requested by the Administrative Agent and  (z)  at  any  time  an  Event  of  Default  exists  and  is  continuing,  any  Material  Real  Property  or  other  real property  owned  by  any  Loan  Party  to  the  extent  requested  by  the  Administrative  Agent  or  the  Required Lenders;  provided  that  the  Administrative  Agent  shall  promptly  notify  the  Lenders  of  any  request  for  a Mortgage  pursuant   to  the   foregoing   Section   5.11(b)(iii)(y)   or   (z)   (the   date  of   any  such   notice   to   the Lenders,   a   “Mortgage   Notice   Date”).    Notwithstanding   the   foregoing,   (i) no   such   Mortgages   and Mortgage  Instruments  requested  pursuant  to  the  foregoing  Section  5.11(b)(iii)(y)  or  (z)  are  required  to  be delivered hereunder until the date that is the later of (A) sixty (60) days after a request therefor is made by the  Administrative  Agent  and  (B)  thirty  (30)  days  after  the  applicable  Mortgage  Notice  Date,  and  (ii)  no such pledge agreement in respect of the Equity Interests of a CFC shall be required hereunder to the extent the Administrative Agent or its counsel determines that such pledge would not provide material credit support for the benefit of the Secured Parties pursuant to legally valid, binding and enforceable pledge agreements.               (c)    Without  limiting  the  foregoing,  each  Loan  Party  will,  and  will  cause  each Subsidiary to, execute and deliver, or cause to be executed and delivered, to the Administrative Agent                                           -76-

 

such  documents,  agreements  and  instruments,  and  will take or cause to be taken such further actions (including  the  filing  and  recording  of  financing  statements ,  fixture   filings,   Mortgages,   Mortgage Instruments,  deeds  of  trust  and other documents and such other actions or deliveries of the type required by  Section  4.01,  as  applicable),  which  may  be  required  by  any  Requirement  of  Law  or  which  the Administrative Agent may, from time to time, reasonably request to carry out the terms and conditions of this Agreement and the other Loan Documents and to ensure perfection and priority of the Liens created or intended to be created by the Collateral Documents, all in form and substance reasonably satisfactory to the Administrative Agent and all at the expense of  the  Loan  Parties.    If   the   Administrative   Agent reasonably  determines  that  it  is  required  by  applicable  law  to  have  appraisals  prepared  in  respect  of  the Mortgaged  Property  of  any  Loan  Party,  Loan  Parties  shall  cooperate  with  the  Administrative  Agent  to obtain   appraisals   that   satisfy   the   applicable   requirements   of   the   Real   Estate   Appraisal   Reform Amendments of FIRREA.               (d)    Notwithstanding  anything  to  the  contrary  set  forth  herein,  no  MIRE  Event  may be  closed  until  the  date  that  is  (i)  if  there  are  no  Mortgaged  Properties  in  a  “special  flood  hazard  area”  in any   Flood   Insurance   Rate   Map   published   by   the   Federal   Emergency   Management   Agency   (or   any successor agency), ten (10) Business Days or (ii) if there are any Mortgaged Properties in a “special flood hazard  area”,  thirty  (30)  days,  in  each  case,  after  the  Administrative  Agent  has  delivered  to  the  Lenders the   following   documents   in   respect  of   such  Mortgaged   Property:   (x)   a   completed   flood   hazard determination  from  a  third  party  vendor;  (y)  if  such  Mortgaged  Property  is  located  in  a  “special  flood hazard  area”,  (A)  a  notification  to  the  applicable  Loan  Party  of  that  fact  and  (if  applicable)  notification  to the applicable Loan Party that flood insurance coverage is not available  and (B) evidence of the receipt by the   applicable   Loan   Party   of   such   notice;   and   (z)   if   required   by   applicable   Flood   Laws,   evidence   of required  flood  insurance  with  respect  to  which  flood  insurance  has  been  made  available  under  applicable Flood   Laws;   provided   that   any   such   MIRE   Event   may   be   closed   prior   to   such   period   expiring   if   the Administrative  Agent  shall  have  received  confirmation  from  each  Lender  that  such  Lender  has  completed any necessary flood insurance due diligence to its reasonable satisfaction.         SECTION 5.12    Post-Closing  Covenants .  The Borrower shall comply with the covenants set forth on Schedule 5.12 .                                       ARTICLE VI                                     Negative Covenants .         On and after the Effective Date and until the Revolving Commitments shall have expired or been terminated  and  the  principal  of  and  interest  on  each  Loan  and  all  fees,  expenses  and  other  amounts payable under any Loan Document (other than contingent or indemnity obligations for which no claim has been made) shall have been paid in full and all Letters of Credit shall have expired or terminated (or have been cash collateralized pursuant to the terms hereof), in each case without any pending draw, and all  LC  Disbursements  shall  have  been  reimbursed,  each Loan Party covenants and agrees, jointly and severally with all of the other Loan Parties, with the Lenders that:         SECTION 6.01    Indebtedness .   No  Loan  Party  will,  nor  will  it  permit  any  Subsidiary  to, create, incur, assume or suffer to exist any Indebtedness, except:               (a)    the Secured Obligations;               (b)    Indebtedness  existing  on  the  date  hereof  and  set  forth  in  Schedule 6.01   and extensions, renewals, refinancings and replacements of any such Indebtedness that does not increase the                                            -77-

 

outstanding principal amount thereof (except to the extent of prepayment premiums and fees owing in connection with such refinancing, extension, renewal or replacement);               (c)    Indebtedness of the Borrower to any Subsidiary and of  any  Subsidiary  to  the Borrower or any other Subsidiary, provided that (i) such Indebtedness is subject to Section 6.04(d) and (ii)  Indebtedness  owing  by  any  Loan  Party  to  any  Subsidiary  that  is  not  a  Loan  Party  shall  be subordinated  in  right  of  payment  to  the  Secured  Obligations  on  terms  reasonably  satisfactory  to  the Administrative Agent (it being agreed and acknowledged that the subordination terms set forth in the Security Agreement are satisfactory to the Administrative Agent);               (d)    Guarantees  by  the  Borrower  of  Indebtedness  of  any  Subsidiary  and  by  any Subsidiary of Indebtedness of the Borrower or any other Subsidiary, provided that (i) the Indebtedness so Guaranteed is permitted by this Section 6.01, (ii) Guarantees by the Borrower or Subsidiary that is a Loan Party of Indebtedness of any Subsidiary that is not a Loan Party shall be subject to Section 6.04 and (iii) if the Indebtedness so guaranteed is subordinated in right of payment to the Secured Obligations, then the Guarantees  permitted  under  this  clause  (d)  shall  be  subordinated  in  right  of  payment  to  the  Secured Obligations  of  the  applicable  Subsidiary  on  the  same  terms  as  the  Indebtedness  so  Guaranteed  is subordinated to the Secured Obligations;               (e)    Indebtedness  of  the  Borrower  or  any  Subsidiary  incurred  to  finance  the acquisition,  construction  or  improvement  of  any  fixed  or  capital  assets,  including  Capital  Lease Obligations  and  any  Indebtedness  assumed  in  connection  with  the  acquisition  of  any  such  assets  or secured  by  a  Lien  on  any  such  assets  prior  to  the  acquisition  thereof,  and  refinancings,  extensions, renewals  and  replacements  of  any  such  Indebtedness that  do  not  increase  the  outstanding  principal amount thereof (except to the extent of prepayment premiums and fees owing in connection with such refinancing, extension, renewal or replacement); provided  that (i) such Indebtedness is incurred prior to or within ninety two   hundred   seventy   ( 90 270 )  days  after  such  acquisition  or  the  completion  of such construction or improvement  and , (ii) the aggregate principal amount of Indebtedness permitted by this clause (e) shall not exceed $ 20,000,000 40,000,000  at any time outstanding , and  (iii)  at  the  time  of  and immediately  after  giving  effect  (including  giving  effect  on  a  pro  forma  basis ) to  the  incurrence  of  such Indebtedness the Borrower is in compliance with Section 2.11(b) ;               (f)    Indebtedness which represents extensions, renewals, refinancing or replacements (such Indebtedness being so extended, renewed, refinanced or replaced being referred to herein as the “Refinance  Indebtedness ”) of any of the Indebtedness described in clauses (e), (m) and (n) hereof (such Indebtedness being referred to herein as the “Original  Indebtedness ”); provided that (i) such Refinance Indebtedness does not increase the principal amount of the Original Indebtedness (except to the extent of prepayment  premiums  and  fees  owing  in  connection  with  such  refinancing,  extension,  renewal  or replacement), (ii) any Liens securing such Refinance Indebtedness are not extended to any additional property of any Loan Party or any Subsidiary, (iii) no Loan Party or any Subsidiary that is not originally obligated with respect to repayment of such Original Indebtedness is required to become obligated with respect to such Refinance Indebtedness, (iv) to the extent that such Original Indebtedness was incurred pursuant to a clause in this Section 6.01 which required a specified average weighted life-to-maturity, such Refinance Indebtedness does not result in a shortening of the average weighted life-to-maturity of such Original Indebtedness and (v) if such Original Indebtedness was subordinated in right of payment to the  Secured  Obligations,  then  the  terms  and  conditions  of  such  Refinance  Indebtedness  must  include subordination terms and conditions that are at least  as  favorable  to  the  Administrative  Agent  and  the Lenders as those that were applicable to such Original Indebtedness;               (g)    Indebtedness  owed  to  any  Person  providing  workers’ compensation,  health, disability  or  other  employee  benefits  or  property, casualty  or  liability  insurance,  pursuant  to                                           -78-

 

             (b)    Permitted Encumbrances;               (c)    any Lien on any property or asset of the Borrower or any Subsidiary existing on the date hereof and set forth in Schedule 6.02 ; provided  that (i) such Lien shall not apply to any other property or asset of the Borrower or any Subsidiary and (ii) such Lien shall secure only those obligations which it secures on the date hereof, and refinancings, extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof (except to the extent of prepayment premiums and fees owing in connection with any such refinancing, extension, renewal and replacement);               (d)    Intentionally Omitted;               (e)    any Lien existing on any property or asset prior to the acquisition thereof by the Borrower or any Subsidiary or existing on any property or asset of any Person that becomes a Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary; provided  that (i) such Lien is not created in contemplation of or in connection with such acquisition or such Person becoming a Subsidiary, as the case may be, (ii) such Lien shall not apply to any other property or assets of such Subsidiary and (iii) such Lien shall secure only those obligations which it secures on the date of such acquisition or the date such Person becomes a Subsidiary, as the case may be, and refinancings, extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof (except to the extent of prepayment premiums and fees owing in connection with any such refinancing, extension, renewal and replacement);               (f)    Liens  of  a  collecting  bank  arising  in  the  ordinary course  of  business  under Section 4-208 of the UCC in effect in the relevant jurisdiction covering only the items being collected upon;               (g)    Liens arising out of Sale and Leaseback Transactions permitted by Section 6.06;               (h)    Liens  on  fixed  or  capital  assets  acquired,  constructed  or  improved  by  the Borrower  or  any  Subsidiary;  provided  that  (i)  such Liens  secure  Indebtedness  permitted  by  Section 6.01(e), (ii) such Liens and the Indebtedness secured thereby are incurred prior to or within ninety two hundred   seventy   ( 90 270 )  days  after  such  acquisition  or  the  completion  of such  construction  or improvement, (iii) the Indebtedness secured thereby does not exceed the cost of acquiring, constructing or improving such fixed or capital assets and (iv) such Liens shall not apply to any other property or assets of the Borrower or any Subsidiary;               (i)    (1)  Liens  on  deposits  made  to  secure  obligations  under  coffee-related  Swap Agreements with Persons (“Counterparties ”) that are not Secured Parties, and (2) Liens on deposits made to secure obligations under Swap Agreements permitted under Section 6.07 that are not coffee-related so long as the aggregate amount of such deposits does not exceed $10,000,000 at any time outstanding;               (j)    Liens granted by a Subsidiary that is not a Loan Party in favor of the Borrower or another Loan Party in respect of Indebtedness owed by such Subsidiary;               (k)    (1) Liens solely on any cash earnest money deposits,  escrow  arrangements  or similar arrangements made by the Company or any Subsidiary in connection with any letter of intent or purchase  agreement  for  a  Permitted  Acquisition  and (2)  solely  in  connection  with  the  Specified Acquisition  and  solely  to  the  extent  contemplated  by  Section  2.02(c)  of  the  Transition  Services Agreement (and only for so long as the Transition Services Agreement is in force and effect), any Lien on the “working capital” deposit account of the Company or any of its Subsidiaries arising solely as a result of the withdrawal rights and/or co-signatory rights of the Seller (and/or any affiliates of the Seller party to                                           -80-

 

the Transition Services Agreement) with respect to such  deposit  account;  provided   that  the  aggregate credit balance in such deposit account shall not exceed $3,000,000 at any one time;               (l)    Liens  granted  in  the  ordinary  course  of  business  on  the  unearned  portion  of insurance premiums securing the financing of insurance premiums to the extent the financing is permitted under Section 6.01;               (m)    Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of custom duties in connection with the importation of goods so long as such liens attach only to the imported goods;               (n)    leases, licenses, subleases or sublicenses of real property or equipment granted to others  in  the  ordinary  course  of  business  which  do not  (i)  interfere  in  any  material  respect  with  the business of the Borrower and its Subsidiaries, taken as a whole, or (ii) secure any Indebtedness;               (o)    non-exclusive  licenses  or  sublicenses  of  intellectual  property  granted  by  any Loan Party in the ordinary course of business; and               (p)    Liens  securing  obligations  as  to  which  the  aggregate  outstanding  principal amount of the obligations secured thereby does not exceed $ 12,500,000 6,000,000  at any time.         SECTION 6.03    Fundamental   Changes .   (a) No  Loan  Party  will,  nor  will  it  permit  any Subsidiary to, merge into or consolidate with any other Person, or permit any other Person to merge into or  consolidate  with  it,  consummate  a  Division  as  the  Dividing  Person,  otherwise  Dispose  of  all  or substantially all of its assets, or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect thereto no Event of Default shall have occurred and be continuing (i) any Subsidiary of the Borrower may merge into the Borrower in a transaction in which the Borrower is the surviving entity, (ii) any Loan Party (other than the Borrower) may merge into any other Loan Party in a transaction in which the surviving entity is a Loan Party, (iii) any Subsidiary that is not a Loan Party may liquidate or dissolve if the Borrower which owns such Subsidiary determines in good faith that such liquidation or dissolution is in the best interests of the Borrower and is not materially disadvantageous to the Lenders; provided  that any such merger involving a Person that is not a wholly owned Subsidiary immediately prior to such merger shall not be permitted unless also permitted by Section 6.04, (iv) the Borrower or any Subsidiary may change its legal form following 30 days’ prior written notice to the Administrative Agent and the Administrative Agent shall have acknowledged in writing that either (1) such change will not adversely affect the validity, perfection or priority of the Administrative Agent’s security interest in the Collateral, or (2) any reasonable action requested by the Administrative Agent in connection therewith has been completed or taken (including any action to continue the perfection of any Liens in favor of the Administrative Agent, on behalf of the Secured Parties, in any Collateral) or will be taken within any time period  reasonably  specified  by  the  Administrative  Agent  or  (v)  the  Borrower  or  any  Subsidiary  may consummate  a  merger,  consolidation  or  liquidation  if  the  purpose  thereof  is  to  effect  an  Investment permitted pursuant to Section 6.04 or a Disposition permitted pursuant to Section 6.05; provided  that (x) any such transaction to which the Borrower is a party shall result in the Borrower as the surviving entity and (y) any such transaction to which any Loan Party (other than the Borrower) is a party shall result in a Loan Party as the surviving entity.               (b)    No Loan Party will, nor will it permit any Subsidiary to, engage to any material extent in any business other than businesses of the type conducted by the Borrower and its Subsidiaries on  the  date  hereof  and  businesses  reasonably  similar,  related,  complementary,  ancillary  or  incidental thereto.                                            -81-

 

             (c)    No Loan Party will, nor will it permit any Subsidiary to, change its fiscal year from the basis in effect on the Effective Date unless it has given the Administrative Agent not less than thirty (30) days’ prior written notice thereof; provided, that any Subsidiary acquired in an Acquisition may change its fiscal year so it corresponds to that of the Borrower.         SECTION 6.04    Investments, Loans, Advances, Guarantees and Acquisitions .  No Loan Party will, nor will it permit any Subsidiary to, purchase, hold or acquire (including pursuant to any merger with, or as a Division Successor pursuant to the Division of, any Person that was not a Loan Party and a wholly  owned  Subsidiary  prior  to  such  merger  or  Division)  any  evidence  of  Indebtedness  or  Equity Interests  or  other  securities   of,  make  or  permit  to  exist  any  loans  or  advances  to,  Guarantee  any obligations  of,  or  permit  to  exist  any  Equity  Interest  in,  any  other  Person,  or  purchase  or  otherwise acquire  (in  one  transaction  or  a  series  of  transactions)  any  assets  of  any  other  Person  constituting  a business  unit  (whether  through  purchase  of  assets, merger  or  otherwise)  (each  of  the  foregoing,  an “Investment ”) except:               (a)    Permitted Investments;               (b)    Investments in existence on the date hereof and described in Schedule 6.04 ;               (c)    investments  by  the  Borrower  and  its  Subsidiaries  in  Equity  Interests  in  their respective Subsidiaries, provided that (A) any such Equity Interests held by a Loan Party shall be pledged pursuant to the Security Agreement (subject to the limitations applicable to Equity Interests of a Foreign Subsidiary referred to in Section 5.11), and (B) the aggregate amount of investments by Loan Parties in Subsidiaries  that  are  not  Loan  Parties  (together,  in  each  case,  with  outstanding  intercompany  loans permitted under clause (B) to the proviso to Section 6.04(d) and outstanding Guarantees permitted under the  proviso  to  Section  6.04(e))  shall  not  exceed  $ 10,000,000 5,000,000   in  the  aggregate  at  any  time outstanding (in each case determined without regard to any write-downs or write-offs);               (d)    loans or advances made by the Borrower to any Subsidiary  and  made  by  any Subsidiary to the Borrower or any other Subsidiary, provided that (A) any such loans and advances made by a Loan Party shall be evidenced by a promissory note pledged to the extent required by the Security Agreement, and (B) the amount of such loans and advances made by Loan Parties to Subsidiaries that are not Loan Parties (together, in each case, with outstanding investments permitted under clause (B) to the proviso to Section 6.04(c) and outstanding Guarantees permitted under the proviso to Section 6.04(e)) shall not exceed $ 10,000,000 5,000,000  in the aggregate at any time outstanding (in each case determined without regard to any write-downs or write-offs);               (e)    Guarantees constituting Indebtedness permitted by Section  6.01,  provided  that the  aggregate  principal  amount  of  Indebtedness  of :  Subsidiaries  that  are  not  Loan  Parties  that  is Guaranteed by any Loan Party (together, in each case,  with  outstanding  investments  permitted  under clause (B) to the proviso to Section 6.04(c) and outstanding intercompany loans permitted under clause (B) to the proviso to Section 6.04(d)) shall not exceed $ 10,000,000 5,000,000  in the aggregate at any time outstanding (in each case determined without regard to any write-downs or write-offs);               (f)    loans  or  advances  made  to  employees,  officers  or  directors  on  an  arms-length basis in the ordinary course of business for (i) reasonable travel and entertainment expenses, relocation costs and similar purposes and (ii) for any other purpose up to a maximum of $500,000 to any employee, officer or director and up to a maximum of $3,000,000 in the aggregate at any one time outstanding;               (g)    Investments  consisting  of  extensions  of  credit  in  the  nature  of  accounts receivable or notes receivable arising from the grant of trade credit in the ordinary course of business, and                                           -82-

 

accounts receivable, notes payable, or stock or other securities issued by Account Debtors pursuant to negotiated agreements with respect to settlement of such Account Debtor’s Accounts obligations in the ordinary course of business, and Investments received in satisfaction or partial satisfaction thereof from financially troubled Account Debtors to the extent reasonably necessary in order to prevent or limit loss or received in connection with the bankruptcy or reorganization of customers or suppliers, or settlement of disputes with suppliers, in each case in the ordinary course of business;               (h)    Investments in the form of Swap Agreements permitted by Section 6.07;               (i)    Investments of any Person existing at the time such Person becomes a Subsidiary of the Borrower or consolidates or merges with the Borrower or any of the Subsidiaries (including in connection with a permitted acquisition) so long as such Investments were not made in contemplation of such Person becoming a Subsidiary or of such merger;               (j)    Investments received in connection with the disposition of assets permitted by Section 6.05;               (k)    Investments  constituting  deposits  described  in  clauses (c)  and  (d)  of  the definition of the term “Permitted Encumbrances”;               (l)    Permitted Acquisitions;               (m)    any other Investments so long as:  (i) both before and after giving effect to such Investment, no Event of Default exists, will exist, or would result therefrom, and (ii) at the time of and after  giving  effect  to  the  consummation  of  such  Investment,  the  aggregate  outstanding  amount  of Investments pursuant to this clause (m) does not exceed the  greater  of  (1)  $30,000,000  and  (2)  5.0%  of Consolidated   Total   Assets  determined   as   of   the  date   of   the   most   recent   financial   statements   delivered pursuant  to  Section  5.01(a)  (or,  if  prior  to  the  date  of  the  delivery  of  the  first  financial  statements  to  be delivered pursuant to Section 5.01(a), the Borrower Audited Financial Statements); $15,000,000;               (n)    deposits,  prepayments,  advances  and  other  credits  to  suppliers,  vendors, customers, lessors and landlords or in connection with marketing promotions, such as sweepstakes, in each instance, made in the ordinary course of business;               (o)    advances of payroll payments to employees in the ordinary course of business;               (p)    Investments  in  the  ordinary  course  of  business  consisting  of  UCC  Article  3 endorsements for collection or deposit;               (q)    solely  in  connection  with  the  Specified  Acquisition  and  solely  to  the  extent contemplated by Sections 2.01 and 2.02 of the Transition Services Agreement (but only for so long as the Transition Services Agreement is in force and effect), advances made by Buyer to Seller and/or any of its affiliates in an aggregate amount not to exceed $5,000,000 per fiscal month; and               (r)    the BFA Lease Guaranty.         SECTION 6.05    Asset Sales .  No Loan Party will, nor will it permit any Subsidiary to Dispose of any asset, including any Equity Interest owned by it, nor will the Borrower permit any Subsidiary to issue any additional Equity Interest in such Subsidiary (other than to the Borrower or another Subsidiary                                            -83-

 

warehouse or facility, the equipment and fixtures located  at  such  premises  and  the  books  and  records relating exclusively and directly to the operations of such warehouse or facility; provided  that (i) written notice thereof shall be provided to the Administrative Agent at least ten (10) days in advance thereof, (ii) such sale shall be on commercially reasonable prices and terms in a bona fide arm’s length transaction, and (iii) no Event of Default shall have then occurred and be continuing or would result therefrom;               (o)    [reserved];               (p)    any  Disposition  of  real  property  owned  in  fee  (other  than  the  Northlake Property); provided  that (i) written notice thereof shall be provided to the Administrative Agent at least ten (10) days in advance thereof, (ii) such sale shall be on commercially reasonable prices and terms in a bona fide arm’s length transaction, (iii) no Event of Default shall have then occurred and be continuing or would result therefrom, and (iv) the aggregate fair market value of all real property sold after the Second Amendment  Effective Date pursuant to this clause (p) shall not exceed $ 70,000,000 20,000,000 ; and               (q)    any Disposition of fixed or capital assets; provided that (i) no Event of Default shall have then occurred and be continuing or would result therefrom, and (ii) the aggregate fair market value of all fixed or capital assets sold after the Second Amendment  Effective Date pursuant to this clause (q) shall not exceed $ 30,000,000 10,000,000 ;  provided , that any Disposition of any property pursuant to this Section 6.05 (except pursuant to Sections 6.05(a), (b), (f), (i), (k), (l) and (m) and except for Dispositions amongst Loan Parties), shall be for no less than the fair market value of such property at the time of such Disposition as determined by the Company in good faith.         SECTION 6.06    Sale  and  Leaseback  Transactions .  No Loan Party will, nor will it permit any Subsidiary  to,  enter  into  any  arrangement,  directly or indirectly, whereby it shall sell or transfer any property, real or personal, used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such property or other property that it intends to use for substantially the same purpose or purposes as the property sold or transferred (a “Sale  and  Leaseback  Transaction ”), except for any such sale of any fixed or capital assets by the Borrower or any Subsidiary that is made for cash consideration in an amount not less than the fair value of such fixed or capital asset and is consummated within 180 days after the Borrower or such Subsidiary acquires or completes the construction of such fixed  or  capital  asset;  provided  that, notwithstanding the foregoing, nothing in this Section 6.06 shall prohibit any Disposition otherwise permitted under Section 6.05.         SECTION 6.07    Swap  Agreements .  No Loan Party will, nor will it permit any Subsidiary to, enter into any Swap Agreement, except Swap Agreements that are not speculative.         SECTION 6.08    Restricted Payments; Certain Payments of Indebtedness .               (a)    No Loan Party will, nor will it permit any Subsidiary to, declare or make, or agree  to  declare  or  make,  directly  or  indirectly,  any  Restricted  Payment,  or  incur  any  obligation (contingent or otherwise) to do so, except (i) the Borrower  and  its  Subsidiaries  may  declare  and  pay dividends with respect to its common stock payable solely in additional shares of its common stock, and, with respect to its preferred stock, payable solely in additional shares of such preferred stock or in shares of its common stock, (ii) any Subsidiary may declare or make a Restricted Payment to the Borrower and any  Subsidiary  which  is  not  a  Loan  Party  may  declare  or  make  a  Restricted  Payment  to  another Subsidiary, (iii) each of the Loan Parties may declare or make other Restricted Payments so long as:  (A) both  before  and  after  giving  effect  to  such  Restricted  Payment,  no  Default  exists  or  would  result therefrom, and (B) the Total Net Leverage Ratio is less than 2.50 to 1.00 immediately before and after                                           -85-

 

giving effect (including giving effect on a pro forma basis) to such Restricted Payment (based on the most recently delivered financials under Section 5.01(a) or (b), as applicable (or, if prior to the date of the delivery of the first financial statements to be delivered pursuant to Section 5.01(a) or (b), the most recent financial  statements  referred  to  in  Section  3.04(a))),  (iv)  the  Company  may  declare  or  make  noncash repurchases  of  Equity  Interests  deemed  to  occur upon  the  exercise  of  stock  options  or  similar  equity incentive  awards  if  such  Equity  Interests  represent a portion of the exercise price of such options or similar equity incentive awards, (v) the Company may make cash payments in lieu of the issuance of fractional shares representing insignificant interests in the Company in connection with the exercise of warrants, options or other securities convertible into or exchangeable for shares of common stock in the Company, (vi) the Company may pay for the repurchase, retirement or other acquisition or retirement for value  of  Equity  Interests  of  the  Company  held  by  any  future,  present  or  former  employee,  director, consultant or distributor (or any spouses, former spouses,  successors,  executors,  administrators,  heirs, legatees or distributees of any of the foregoing) of the Company or any of its Subsidiaries upon the death, disability,  retirement  or  termination  of  employment  of  any  such  Person  or  otherwise  pursuant  to  any employee  or  director  equity  plan,  employee  or  director  stock  option  plan  or  any  other  employee  or director benefit plan or any agreement (including but not limited to the ESOP and including any stock subscription  or  shareholder  agreement)  with  any  employee,  director,  consultant  or  distributor  of  the Company or any of its Subsidiaries in an aggregate amount not to exceed $1,000,000 in any calendar year, (vii) the Company may make distributions or pay dividends to the ESOT in the amounts of regularly scheduled payments to be made on the ESOP Indebtedness in accordance with the terms of the ESOP Loan Documents in effect on the date hereof; provided , that, as to any such distribution or dividend, all proceeds received by the ESOT are used by the ESOT to repay the ESOP Indebtedness and (viii) unless an Event of Default has occurred and is continuing or would result therefrom, the Company may make Restricted Payments in an aggregate amount not to exceed $10,000,000 during any fiscal year of the Borrower.               (b)    No  Loan  Party  will,  nor  will  it  permit  any  Subsidiary  to,  make,  directly  or indirectly, any payment or other distribution (whether in cash, securities or other property) of or in respect of  principal  of  or  interest  on  any  Subordinated  Indebtedness,  or  any  payment  or  other  distribution (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of  the  purchase,  redemption,  retirement,  acquisition,  cancellation  or  termination  of  any  Subordinated Indebtedness, except:                      (i)   payment of regularly scheduled interest and principal payments as and when due in accordance with the subordination provisions thereof;                      (ii)   refinancings of Subordinated Indebtedness to the extent not prohibited by Section 6.01;  and                      (iii)  the conversion of any Subordinated Indebtedness into common Equity Interests of the Company ; and .                      (iv)  unless  an  Event  of  Default  has  occurred  and  is  continuing  or  would  result therefrom,   the  purchase,  redemption,  retirement,  acquisition,  cancellation  or  termination  of  Subordinated Indebtedness   in   an   aggregate   principal   amount   not   to   exceed   $10,000,000   during   the   term   of   this Agreement.         SECTION 6.09    Transactions   with   Affiliates .   No  Loan  Party  will,  nor  will  it  permit  any Subsidiary to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire  any  property  or  assets  from,  or  otherwise  engage  in  any  other  transactions  with,  any  of  its Affiliates,  except  (a)  transactions  that  are  at  prices  and  on  terms  and  conditions  not  materially  less                                           -86-

 

favorable to such Loan Party or such Subsidiary than could be obtained on an arm’s-length basis from unrelated  third  parties,  (b) transactions  between  or  among  the  Loan  Parties  not  involving  any  other Affiliate,  (c) any  Investment  permitted  by  Sections 6.04(c),  6.04(d)  or  6.04(f),  (d)  any  Indebtedness permitted  under  Section  6.01(c),  (e) any  Restricted  Payment  permitted  by  Section 6.08,  (f) loans  or advances to employees permitted under Section 6.04, (g) the payment of reasonable fees to directors of the Borrower or any Subsidiary who are not employees of the Borrower or Subsidiary, and compensation and employee benefit arrangements paid to, and indemnities provided for the benefit of, directors, officers or employees of the Borrower or its Subsidiaries in the ordinary course of business and (h) any issuances of  securities  or  other  payments,  awards  or  grants  in  cash,  securities  or  otherwise  pursuant  to,  or  the funding  of,  employment  agreements,  stock  options  and  stock  ownership  plans  approved  by  the Borrower’s board of directors.         SECTION 6.10    Restrictive   Agreements .   No  Loan  Party  will,  nor  will  it  permit  any Subsidiary  to,  directly  or  indirectly,  enter  into, incur  or  permit  to  exist  any  agreement  or  other arrangement that prohibits, restricts or imposes any condition upon (a) the ability of such Loan Party or any Subsidiary to create, incur or permit to exist any Lien upon any of its property or assets (including, for the avoidance of doubt, any real property), or (b) the ability of any Subsidiary to pay dividends or other distributions with respect to any of its Equity Interests or to make or repay loans or advances to the Borrower or any other Subsidiary or to Guarantee Indebtedness of the Borrower or any other Subsidiary; provided  that (i) the foregoing shall not apply to restrictions and conditions imposed by any Requirement of Law or by any Loan Document, (ii) the foregoing shall not apply to restrictions and conditions existing on the date hereof identified on Schedule  6.10  (but shall apply to any extension or renewal of, or any amendment or modification expanding the scope of, any such restriction or condition), (iii) the foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary, or any assets of a Subsidiary, pending such sale, provided that such restrictions and conditions apply only to the Subsidiary that is to be sold and such sale is permitted hereunder, (iv) clause (a) of the foregoing  shall  not  apply  to  restrictions  or  conditions  imposed  by  any  agreement  relating  to  secured Indebtedness permitted by this Agreement if such restrictions or conditions apply only to the property or assets securing such Indebtedness, (v) clause (a) of the foregoing shall not apply to customary provisions in  leases  and  other  contracts  restricting  the  assignment  thereof,  (vi)  the  foregoing  shall  not  apply  to restrictions requiring minimum reserves of cash or other deposits or minimum net worth requirements imposed by customers under contracts entered into in the ordinary course of business and (vii) clause (b) of the foregoing shall not apply to any restrictions imposed by any agreement relating to Indebtedness incurred pursuant to Section  6.01  entered into after the Effective Date so long as such restrictions are not materially more burdensome on the Company’s Subsidiaries than the restrictions contained herein.         SECTION 6.11    Amendment  of  Material  Documents .  No Loan Party will, nor will it permit any Subsidiary to, amend, modify or waive any of its  rights  under  (a) any  agreement  relating  to  any Subordinated  Indebtedness  unless  expressly  permitted  under  the  subordination  terms  relative  to  such Indebtedness, or (b) its charter, articles or certificate of incorporation or organization, by-laws, operating, management or partnership agreement or other organizational or governing documents, except in the case of each of this clause (b), such amendments, modifications, or waivers, which would not be materially adverse to the Lenders (taken as a whole).         SECTION 6.12    Financial Covenants .               (a)    Maximum  Total  Net  Leverage  Ratio . The Borrower will not permit the Total Net Leverage Ratio, determined as of the end of each of its fiscal quarters  (other  than  a  Trigger  Quarter  and the   following   three   (3)   succeeding   fiscal   quarters   as   provided   below)   ending   on   or   after   the   Effective                                            -87-

 

Date , to be greater than 3.50  to  1.00  for  any the  maximum  Total  Net  Leverage  Ratio  set  forth  opposite each  such fiscal quarter . as follows:             Fiscal Quarter Ending                Maximum Total Net Leverage Ratio                March 31, 2020                               3.50 to 1.00                 June 30, 2020                               4.00 to 1.00              September 30, 2020                             4.75 to 1.00              December 31, 2020                              5.25 to 1.00                March 31, 2021                               5.75 to 1.00                 June 30, 2021                               5.25 to 1.00              September 30, 2021                             4.75 to 1.00              December 31, 2021                              4.25 to 1.00              March 31, 2022 and                             3.50 to 1.00       each fiscal quarter ending thereafter  Notwithstanding  anything  to  the  contrary  contained  herein,  at  the  Borrower’s  election  (which  shall  be evidenced  by  delivery  of  a  written  notice  by  the  Borrower  to  the  Administrative  Agent),  if  in  any  fiscal quarter   ending   after   the   Effective   Date   the   Borrower   consummates   a   Permitted   Acquisition   with   total consideration   (including   any   Indebtedness   assumed   in   connection  therewith)  in  excess  of  $20,000,000 (the   fiscal   quarter   in   which   such   Permitted   Acquisition   is   consummated,   a   “ Trigger   Quarter ”),   the Borrower will not permit the Total Net Leverage Ratio for any Test Period to exceed 3.75 to 1.00 for such Trigger  Quarter  and  for  the  next  three  (3)  succeeding  fiscal  quarters;  provided , further,  that  (i)  following the  occurrence  of  a  Trigger  Quarter,  no  subsequent  Trigger  Quarter  shall  be  deemed  to  have  occurred  or to  exist  for  any  reason  unless  the  Total  Net  Leverage  Ratio  is  less  than  or  equal  to  3.50  to  1.00  as  of  the end  of  two  consecutive  fiscal  quarters  following  the  occurrence  of  such  initial  Trigger  Quarter,  (ii)  the Borrower  may  not  make  an  election  pursuant  to  this  paragraph  unless  at  the  time  of  such  election  the Total  Net  Leverage  Ratio  is  equal  to  or  less  than  3.50  to  1.00  and  (iii)  the  Borrower  may  not  make  more than two (2) such elections pursuant to this paragraph during the term of this Agreement.               (b)    Minimum   Interest   Coverage   Ratio.   The Borrower will not permit the Interest Coverage Ratio, determined as of the end of each of its fiscal quarters ending on or after the Effective Date, to be less than 3.00 to 1.00 for any such fiscal quarter.               (c)    Minimum  EBITDA.   The  Borrower  will  not  permit  EBITDA  for  any  Test  Period ending  as  of  the  end  of  any  fiscal  quarter  of  the  Borrower  set  forth  below,  determined  as  of  the  end  of each  such  fiscal  quarter  and  calculated  for  the  Borrower  and  its  Subsidiaries  on  a  consolidated  basis  in accordance with GAAP, to be less than the minimum EBITDA set forth opposite each such Test Period as follows :              Test Period Ending                         Minimum EBITDA                                            -88-

 

               June 30, 2020                               $18,700,000              September 30, 2020                             $19,000,000              December 31, 2020                              $18,800,000                March 31, 2021                               $18,500,000                 June 30, 2021                               $19,600,000              September 30, 2021                             $21,700,000              December 31, 2021                              $24,700,000  For the avoidance of doubt, the Borrower shall not  be required to comply with  this Section 6.12(c) for any Test Period ending after December 31, 2021.         SECTION 6.13    Farmer Trademark .  The Loan Parties shall maintain, defend and preserve the Farmer  Trademark  and  its  value,  usefulness,  merchantability and marketability in a manner consistent with past practices, and shall not sell, assign, transfer, encumber or license the Farmer Trademark to any Person (other than Liens created pursuant to the Loan Documents) without the prior written consent of the Required Lenders.                                       ARTICLE VII                                      Events of Default .         SECTION 7.01    Events  of  Default .  If any of the following events (“Events  of  Default ”) shall occur:               (a)    the Borrower shall fail to pay any principal of any Loan or any reimbursement obligation  in  respect  of  any  LC  Disbursement when and  as  the  same  shall  become  due  and  payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise;               (b)    the Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in Section 7.01(a)) payable under this Agreement or any other Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of five (5) Business Days;               (c)    any  representation  or  warranty  made  or  deemed  made by  or  on  behalf  of any Loan Party or any Subsidiary in, or in connection with, this Agreement or any other Loan Document or any amendment or modification hereof or thereof or waiver hereunder or thereunder, or in any report, certificate,  financial  statement  or  other  document furnished  pursuant  to  or  in  connection  with  this Agreement or any other Loan Document or any amendment or modification hereof or thereof or waiver hereunder or thereunder, shall prove to have been materially incorrect when made or deemed made;               (d)    the  Borrower  shall  fail  to  observe  or  perform  any  covenant,  condition  or agreement  contained  in  Section 5.02(a),  5.03  (with respect  to  a  Loan  Party’s  existence)  or  5.08 or in Article VI of this Agreement;                                            -89-

 

material non-public information within the meaning of the federal and state securities laws after the date hereof,  the  Borrower  agrees  that  it  will  promptly  make  such  information  publicly  available  by  press release or public filing with the SEC.         SECTION 9.18    Acknowledgment   and   Consent   to   Bail-In   of  EEA Affected   Financial Institutions .  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Affected  Financial Institution arising under any Loan Document may be subject to the Write- Down and Conversion Powers of an  EEA the  applicable  Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:               (a)    the  application  of  any  Write-Down  and  Conversion  Powers  by an   EEA the applicable  Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Affected  Financial Institution; and               (b)    the effects of any Bail-In Action on any such liability, including, if applicable:                      (i)    a reduction in full or in part or cancellation of any such liability;                      (ii)   a conversion of all, or a portion of, such liability into shares or other instruments  of  ownership  in  such EEA Affected   Financial  Institution,  its  parent  entity,  or  a  bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of 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 the applicable  Resolution Authority.         SECTION 9.19    Certain ERISA Matters .               (a)    Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and the Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower or any other Loan Party, that at least one of the following is and will be true:                      (i)    such  Lender  is  not  using  “plan  assets”  (within  the meaning  of 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 Revolving Commitments or this Agreement,                      (ii)   the transaction exemption set forth in one or more PTEs, such as PTE 84- 14  (a  class  exemption  for  certain  transactions  determined  by  independent  qualified  professional  asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts),  PTE  90-1  (a  class  exemption  for  certain transactions  involving  insurance  company  pooled separate  accounts),  PTE  91-38  (a  class  exemption  for  certain  transactions  involving  bank  collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Commitments and this Agreement,                                            -116-

 

relationships.  With respect to any securities and/or financial instruments so held by any Credit Party or any of its customers, all rights in respect of such securities and financial instruments, including any voting rights, will be exercised by the holder of the rights, in its sole discretion.               In addition, the Borrower acknowledges and agrees, and acknowledges its Subsidiaries’ understanding, that each Credit Party and its affiliates may be providing debt financing, equity capital or other services (including financial advisory services) to other companies in respect of which the Borrower or  its  Subsidiaries  may  have  conflicting  interests regarding  the  transactions  described  herein  and otherwise.  No Credit Party will use confidential information obtained from the Borrower by virtue of the transactions  contemplated  by  the  Loan  Documents  or its  other  relationships  with  the  Borrower  in connection with the performance by such Credit Party of services for other companies, and no Credit Party will furnish any such information to other companies.  The Borrower also acknowledges that no Credit Party has any obligation to use in connection  with  the  transactions  contemplated  by  the  Loan Documents, or to furnish to the Borrower, confidential information obtained from other companies.         SECTION 9.21    Prepayment   of   Loans   under   the   Existing   Credit   Agreement .   Each  of  the signatories hereto that is also a party to the Existing Credit Agreement hereby agrees that any and all required notice periods under the Existing Credit Agreement in connection with the prepayment (if any) on the Effective Date of any “Loans” under the Existing Credit Agreement are hereby waived and of no force and effect.         SECTION 9.22    Acknowledgment  Regarding  Any  Supported  QFCs .  To  the  extent  that  the Loan  Documents  provide  support,  through  a  guarantee  or  otherwise,  for  Swap  Agreements  or  any  other agreement   or   instrument   that  is   a  QFC   (such   support   “QFC   Credit   Support”   and   each   such   QFC   a “Supported  QFC”),  the  parties  acknowledge  and  agree  as  follows  with  respect  to  the  resolution  power  of the  Federal  Deposit  Insurance  Corporation  under  the  Federal  Deposit  Insurance  Act  and  Title II  of  the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder,  the  “U.S.  Special  Resolution  Regimes”)  in  respect  of  such  Supported  QFC  and  QFC  Credit Support   (with   the   provisions   below   applicable   notwithstanding   that   the   Loan   Documents   and   any Supported  QFC  may  in  fact  be  stated  to  be  governed  by  the  laws  of  the  State  of  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 9.22, the following terms have the following meanings:                                            -118-

 

                    “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).                                       ARTICLE X                                       Loan Guaranty.         SECTION 10.01   Guaranty .   Each  Loan  Guarantor  (other  than  those  that  have delivered  a separate Guaranty) hereby agrees that it is jointly and severally liable for, and, as a primary obligor and not merely as surety, absolutely, unconditionally and irrevocably guarantees to the Secured Parties, the prompt payment when due, whether at stated maturity, upon acceleration or otherwise, and at all times thereafter, of the Guaranteed Obligations of such Loan Guarantor.  Each Loan Guarantor further agrees that the Guaranteed Obligations may be extended or renewed in whole or in part without notice to or further assent from it, and that it remains bound upon its guarantee notwithstanding any such extension or renewal.  All terms of this Loan Guaranty apply to and may be enforced by or on behalf of any domestic or foreign branch or Affiliate of any Lender that extended any portion of the Guaranteed Obligations.         SECTION 10.02   Guaranty  of  Payment .  This Loan Guaranty is a guaranty of payment and not of collection.  Each Loan Guarantor waives any right to require the Administrative Agent, the Issuing Bank or any Lender to sue the Borrower, any Loan Guarantor, any other guarantor of, or any other Person obligated for, all or any part of the Guaranteed Obligations (each, an “Obligated  Party ”), or otherwise to enforce its payment against any collateral securing all or any part of the Guaranteed Obligations.         SECTION 10.03   No  Discharge  or  Diminishment  of  Loan  Guaranty .  (a) Except as otherwise provided for herein, the obligations of each Loan Guarantor hereunder are unconditional and absolute and not  subject  to  any  reduction,  limitation,  impairment  or  termination  for  any  reason  (other  than  the indefeasible payment in full in cash of the Guaranteed Obligations as provided under Section 10.08(c)), including:   (i)  any  claim  of  waiver,  release,  extension,  renewal,  settlement,  surrender,  alteration  or compromise of any of the Guaranteed Obligations, by operation of law or otherwise; (ii) any change in the corporate existence, structure or ownership of the Borrower or any other Obligated Party liable for any  of  the  Guaranteed  Obligations;  (iii)  any  insolvency,  bankruptcy,  reorganization  or  other  similar proceeding  affecting  any  Obligated  Party  or  their  assets  or  any  resulting  release  or  discharge  of  any obligation of any Obligated Party; or (iv) the existence of any claim, setoff or other rights which any                                            -119-

 

                                SCHEDULE 2.01A                            REVOLVING COMMITMENTS  LENDER                                                        REVOLVING                                                              COMMITMENT  JPMORGAN CHASE BANK, N.A.                                $35,000,000 29,166,666.68 CITIBANK, N.A.                                           $25,000,000 20,833,333.33 PNC BANK, NATIONAL ASSOCIATION                           $25,000,000 20,833,333.33 BANK OF AMERICA, N.A.                                    $25,000,000 20,833,333.33 REGIONS BANK                                             $25,000,000 20,833,333.33 SUNTRUST BANK                                            $15,000,000 12,500,000.00  AGGREGATE REVOLVING COMMITMENTS                         $150,000,000 125,000,000.00

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